I'm hoping someone can resolve my confusion about the information in the annual report.
RPM took a $140M Asbestos charge but when I look at Note H it only shows Asbestos loss reserves of $64M along with current Asbestos-related liabilities of $42M. I'm not sure that one would add the two together, but even if you do, it doesn;t total $140M. Where did the rest of the charge go?
The recent asbestos charge is for the next 3 years. When the asbestos legislation comes through either this year, or next year, the money RPM set aside for the charge will return to the company coffers.
So, thanks for the response but I'm still confused... if the charge is for three years, it doesn't totally go into the current reserve, but on the balance sheet as a long-term reserve? I still don't see where the total $140M shows up on the balance sheet.
Getting any or all of it back if reasonable legislation goes through would be sweet. Not only would it immediately improve their financials but it would remove a risk factor and I think immediately increase the stock price by at least 10% (based on the drop it took when the lack of insurance issue was first publicized).