SEC Document

 

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, interest expense and earnings before interest and taxes.

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 (a)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (a)

 

$

67,696

 

 

$

50,291

 

 

$

156,598

 

 

$

139,557

 

Interest (Expense), Net (b)

 

 

(2,513

)

 

 

(1,906

)

 

 

(5,067

)

 

 

(3,743

)

EBIT (c)

 

$

70,209

 

 

$

52,197

 

 

$

161,665

 

 

$

143,300

 

Consumer Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes (a)

 

$

45,085

 

 

$

(140,575

)

 

$

117,453

 

 

$

(70,487

)

Interest (Expense), Net (b)

 

 

(143

)

 

 

(19

)

 

 

(339

)

 

 

(22

)

EBIT (c)

 

$

45,228

 

 

$

(140,556

)

 

$

117,792

 

 

$

(70,465

)

Specialty Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes (a)

 

$

34,439

 

 

$

31,160

 

 

$

67,606

 

 

$

61,664

 

Interest Income, Net (b)

 

 

78

 

 

 

137

 

 

 

198

 

 

 

290

 

EBIT (c)

 

$

34,361

 

 

$

31,023

 

 

$

67,408

 

 

$

61,374

 

Corporate/Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Expense) Before Income Taxes (a)

 

$

(38,039

)

 

$

(47,733

)

 

$

(77,192

)

 

$

(89,116

)

Interest (Expense), Net (b)

 

 

(20,079

)

 

 

(18,701

)

 

 

(39,769

)

 

 

(35,954

)

EBIT (c)

 

$

(17,960

)

 

$

(29,032

)

 

$

(37,423

)

 

$

(53,162

)

Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) Before Income Taxes (a)

 

$

109,181

 

 

$

(106,857

)

 

$

264,465

 

 

$

41,618

 

Interest (Expense), Net (b)

 

 

(22,657

)

 

 

(20,489

)

 

 

(44,977

)

 

 

(39,429

)

EBIT (c)

 

$

131,838

 

 

$

(86,368

)

 

$

309,442

 

 

$

81,047

 

 

(a)

The presentation includes a reconciliation of Income (Loss) Before Income Taxes, a measure defined by generally accepted accounting principles ("GAAP") in the U.S., to EBIT.

(b)

Interest (expense), net includes the combination of interest (expense) and investment income/(expense), net.

(c)

EBIT is a non-GAAP measure, and is defined as earnings (loss) before interest and taxes.  We evaluate the profit performance of our segments based on income before income taxes, but also look to EBIT as a performance evaluation measure because interest expense is essentially related to acquisitions, as opposed to segment operations.  We believe EBIT is useful to investors for this purpose as well, using EBIT as a metric in their investment decisions.  EBIT should not be considered an alternative to, or more meaningful than, income before income taxes as determined in accordance with GAAP, since EBIT omits the impact of interest in determining operating performance, which represent items necessary to our continued operations, given our level of indebtedness.  Nonetheless, EBIT is a key measure expected by and useful to our fixed income investors, rating agencies and the banking community all of whom believe, and we concur, that this measure is critical to the capital markets' analysis of our segments' core operating performance.  We also evaluate EBIT because it is clear that movements in EBIT impact our ability to

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