Investments in affiliated companies that we do not control, either through majority ownership or otherwise, are accounted for using the equity method. At May 31, 2022, we held investments in the following affiliated companies: ArtiFlex (50%), Workhorse (20%), ClarkDietrich (25%), Serviacero Worthington (50%), and WAVE (50%)

As previously disclosed, we have at various times over the last several years explored strategic alternatives relating to our investment in ArtiFlex, including an equity purchase by our joint venture partner. Based on all of the relevant facts and circumstances, including actual and projected cash flows of the business, we do not believe our investment is impaired, temporarily or otherwise, at May 31, 2022. However, certain scenarios under consideration by us may result in cash proceeds that are lower than the $49,495,000 book value of our investment at May 31, 2022.

On December 31, 2019, we contributed the then recently acquired operating net assets of Heidtman Steel Products, Inc.’s Cleveland facility (“Heidtman”) to Samuel in exchange for an incremental 31.75% ownership interest in Samuel, bringing our total ownership interest to 63%. Samuel’s results have been consolidated within Steel Processing operating segment since that date.

On November 1, 2019, we closed on an agreement with an affiliate of Angeles Equity Partners, LLC by which we contributed substantially all of the net assets of our former Engineered Cabs business to Workhorse, a newly-formed joint venture, in exchange for a 20% noncontrolling interest. Immediately following the contribution, Workhorse acquired the net assets of Crenlo. Our contribution to Workhorse consisted of the net assets of the primary manufacturing facilities of our former Engineered Cabs business located in Greeneville, Tennessee and Watertown, South Dakota. Our investment in Workhorse is accounted for under the equity method due to lack of control.

We received distributions from unconsolidated affiliates totaling $100,058,000, $91,007,000, and $122,953,000 in fiscal 2022, fiscal 2021 and fiscal 2020, respectively. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in a negative asset balance of $81,149,000 and $99,669,000 at May 31, 2022 and 2021, respectively. In accordance with the applicable accounting guidance, we reclassified the negative balances to other liabilities within our consolidated balance sheets. We will continue to record our equity in the net income of WAVE as a debit to the investment account, and if it becomes positive, it will again be shown as an asset on our consolidated balance sheets. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will recognize any balance classified as a liability as income immediately.

The following table presents combined information regarding the financial position of our unconsolidated affiliates accounted for using the equity method as of May 31:


(in thousands)	2022		2021
Cash	$	68,563	$	11,651
Other current assets		1,148,029		733,834
Noncurrent assets		369,608		382,585
Total assets	$	1,586,200	$	1,128,070
Current liabilities	$	345,097	$	232,626
Short-term borrowings		5,943		1,155
Current maturities of long-term debt		33,054		30,209
Long-term debt		306,814		311,871
Other noncurrent liabilities		76,437		92,209
Equity		818,855		460,000
Total liabilities and equity	$	1,586,200	$	1,128,070

The following tables presents summarized financial information for our unconsolidated affiliates as of, and for the fiscal years ended May 31.


(in thousands)	2022		2021		2020
Net sales
WAVE	$	452,368	$	371,814	$	368,820
ClarkDietrich		1,695,808		893,371		855,994
Serviacero Worthington		620,312		311,543		273,276
ArtiFlex		187,089		144,834		175,428
Workhorse		313,265		196,915		146,478
Total net sales	$	3,268,842	$	1,918,477	$	1,819,996


(in thousands)	2022		2021			2020
Gross margin
WAVE	$	238,523	$	215,692		$	208,040
ClarkDietrich		431,070		158,074			131,619
Serviacero Worthington		96,918		51,253			15,739
ArtiFlex		30,633		20,596			14,212
Workhorse		11,455		(7,057	)		7,320
Total gross margin	$	808,599	$	438,558		$	376,930


(in thousands)	2022			2021			2020
Operating income (loss)
WAVE	$	183,545		$	165,381		$	166,404
ClarkDietrich		351,583			94,888			66,952
Serviacero Worthington		87,342			43,075			7,513
ArtiFlex		15,778			9,628			6,248
Workhorse		(2,024	)		(2,372	)		(23,596	)
Total operating income	$	636,224		$	310,600		$	223,521


(in thousands)	2022		2021		2020
Depreciation and amortization
WAVE	$	4,554	$	4,073	$	4,032
ClarkDietrich		10,946		11,917		11,869
Serviacero Worthington		4,300		4,305		4,324
ArtiFlex		5,708		5,728		5,605
Workhorse		6,586		8,965		4,689
Total depreciation and amortization	$	32,094	$	34,988	$	30,519


(in thousands)	2022		2021		2020
Interest expense
WAVE	$	8,386	$	8,909	$	11,061
ClarkDietrich		308		101		378
Serviacero Worthington		180		42		87
ArtiFlex		340		528		801
Workhorse		1,228		2,704		1,665
Total interest expense	$	10,442	$	12,284	$	13,992


(in thousands)	2022		2021		2020
Income tax expense (benefit)
WAVE	$	158	$	200	$	216
ClarkDietrich		-		-		-
Serviacero Worthington		25,079		11,341		3,267
ArtiFlex		258		149		(15	)
Workhorse		1,244		270		(15	)
Total income tax expense	$	26,739	$	11,960	$	3,453


(in thousands)	2022			2021			2020
Net earnings (loss)
WAVE (1)	$	175,154		$	156,869		$	202,451
ClarkDietrich		356,288			98,313			68,899
Serviacero Worthington		59,565			31,865			2,573
ArtiFlex		15,180			8,950			5,461
Workhorse		(1,170	)		(2,811	)		(19,934	)
Total net earnings	$	605,017		$	293,186		$	259,450

(1)

On September 30, 2019, WAVE completed the sale of its international operations to Knauf Ceilings and Holdings GmbH (“Knauf”), as part of the broader transaction between Knauf and Armstrong World Industries, Inc., our partner in the WAVE joint venture. The net earnings in this table include net income attributable to discontinued operations of $49,770,000 in fiscal 2020. All other amounts presented in the table above exclude the activity of the discontinued operations of WAVE.

At May 31, 2022 and 2021, $132,283,000 and $59,015,000, respectively, of our consolidated retained earnings represented undistributed earnings of our unconsolidated affiliates, net of tax.