SEC Document

RPM INTERNATIONAL INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)

 

In addition to our three reportable segments, there is a category of certain business activities and expenses, referred to as corporate/other, that does not constitute an operating segment. This category includes our corporate headquarters and related administrative expenses, results of our captive insurance companies, gains or losses on the sales of certain assets and other expenses not directly associated with any reportable segment. Assets related to the corporate/other category consist primarily of investments, prepaid expenses and headquarters’ property and equipment. These corporate and other assets and expenses reconcile reportable segment data to total consolidated income before income taxes and identifiable assets.

We reflect income from our joint ventures on the equity method, and receive royalties from our licensees.

The following tables reflect the results of our reportable segments consistent with our management philosophy, and represent the information we utilize, in conjunction with various strategic, operational and other financial performance criteria, in evaluating the performance of our portfolio of businesses.  

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

 

November 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial Segment

 

$

702,905

 

 

$

633,429

 

 

$

1,432,673

 

 

$

1,309,269

 

Consumer Segment

 

 

415,431

 

 

 

373,774

 

 

 

842,575

 

 

 

773,661

 

Specialty Segment

 

 

197,080

 

 

 

183,567

 

 

 

385,562

 

 

 

359,903

 

Consolidated

 

$

1,315,416

 

 

$

1,190,770

 

 

$

2,660,810

 

 

$

2,442,833

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial Segment

 

$

67,696

 

 

$

50,291

 

 

$

156,598

 

 

$

139,557

 

Consumer Segment

 

 

45,085

 

 

 

(140,575

)

 

 

117,453

 

 

 

(70,487

)

Specialty Segment

 

 

34,439

 

 

 

31,160

 

 

 

67,606

 

 

 

61,664

 

Corporate/Other

 

 

(38,039

)

 

 

(47,733

)

 

 

(77,192

)

 

 

(89,116

)

Consolidated

 

$

109,181

 

 

$

(106,857

)

 

$

264,465

 

 

$

41,618

 

 

NOTE 17 – SUBSEQUENT EVENTS

Subsequent to the end of our second fiscal quarter, on December 20, 2017, we closed an offering of $300.0 million aggregate principal amount of 4.250% Notes due 2048.  The proceeds from these notes will be used to repay $250.0 million in principal amount of unsecured senior notes due February 15, 2018, which bear interest at 6.50%, and for general corporate purposes.  

 

 

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