Segment Data

12 Months Ended

May 31, 2022

Segment Reporting [Abstract]

Segment Data

Note P – Segment Data

Our operations are managed principally on a products and services basis. Factors used to identify reportable business segments include the nature of the products and services provided by each business, the management reporting structure, similarity of economic characteristics and certain quantitative measures, as prescribed by authoritative accounting guidance.

Effective June 1, 2021, we reorganized the management structure of our Pressure Cylinders business to better align around the end markets which it served, resulting in three new reportable operating segments: Consumer Products, Building Products and Sustainable Energy Solutions. Our Steel Processing operating segment was not impacted by these changes. A discussion of each of our reportable business segments is included below.

Steel Processing: This reportable segment is a value-added processor of carbon flat-rolled steel, a producer of laser welded solutions and provider of electrical steel laminations. The segment includes our four consolidated joint ventures: Samuel, Spartan, TWB and WSP. Spartan operates a cold-rolled, hot-dipped coating line and TWB operates a laser welded blanking business. WSP serves primarily as a toll processor. WSP’s services include slitting, blanking, cutting-to-length, laser blanking, and warehousing. Samuel operates steel pickling facilities in Ohio. Steel Processing is an intermediate processor of flat-rolled steel. This operating segment’s processing capabilities include cold reducing, configured blanking, coil fed laser blanking, cutting-to-length, dry-lube, hot dip coating, annealing, laser welding, pickling, slitting, oscillate slitting, temper rolling, tension leveling, and non-metallic coating, including acrylic and paint coating, aluminum die casting, progressive stamping and notching, and transformer core winding and blank sheet stacking. Steel Processing sells to customers principally in the automotive, aerospace, agricultural, appliance, construction, container, energy, hardware, heavy-truck, HVAC, lawn and garden, leisure and recreation, office furniture and office equipment end markets. Steel Processing also toll processes steel for steel mills, large end-users, service centers and other processors. Toll processing is different from typical steel processing in that the mill, end-user or other party retains title to the steel and has the responsibility for selling the end product. The percentage of our consolidated net sales generated by the Steel Processing reportable segment was approximately 75.0%, 64.9% and 60.8%, in fiscal 2022, fiscal 2021 and fiscal 2020, respectively.

Consumer Products: This reportable segment consists of products in the tools, outdoor living and celebrations end markets sold under market-leading brands that include Coleman® (licensed), Bernzomatic®, Balloon Time®, Mag-Torch®, General®, Garden-Weasel®, Pactool International®, Hawkeye™, and Worthington Pro Grade™. These include propane-filled cylinders for torches, camping stoves and other applications, LPG cylinders, handheld torches, helium-filled balloon kits, and specialized hand tools and instruments sold primarily to mass merchandisers, retailers and distributors. LPG cylinders, which hold fuel for barbeque grills and recreational vehicle equipment, are also sold through cylinder exchangers.. The percentage of our consolidated net sales generated by the Consumer Products reportable segment was approximately 12.1%, 16.5% and 14.7% in fiscal 2022, fiscal 2021, and fiscal 2020, respectively.

Building Products: This reportable segment sells refrigerant and LPG cylinders, well water and expansion tanks, and other specialty products, which are generally sold to gas producers and distributors. Refrigerant gas cylinders are used to hold refrigerant gases for commercial, residential, and automotive air conditioning and refrigeration systems. LPG cylinders hold fuel for residential and light commercial heating systems, industrial forklifts and commercial/residential cooking (the latter, generally outside North America). Well water tanks and expansion tanks are used in the residential market with the latter also sold into commercial markets. Specialty products include a variety of fire suppression and chemical tanks. The percentage of our consolidated net sales generated by the Building Products reportable segment was approximately 10.3%, 12.7% and 12.5% in fiscal 2022, fiscal 2021, and fiscal 2020, respectively.

Sustainable Energy Solutions: This reportable segment, which is primarily based in Europe, sells onboard fueling systems and services, as well as gas containment solutions and services for storage, transport and distribution of industrial gases. It includes high pressure and acetylene cylinders for life support systems and alternative fuel cylinders used to hold compressed natural gas (CNG) and hydrogen for automobiles, buses, and light-duty trucks. The percentage of our consolidated net sales generated by the Sustainable Energy Solutions reportable segment was approximately 2.5%, 4.3% and 4.0% in fiscal 2022, fiscal 2021, and fiscal 2020, respectively.

Other: Divested businesses historically reported within our legacy Pressure Cylinders segment but no longer included in our management structure are presented within the “Other” category, on a historical basis, through the date of disposal. For the periods presented, these include the following: SCI (until March 2021); Oil & Gas Equipment (until January 2021); and Cryogenic Storage and Cryo-Science (until October 2020). The Other category also includes the results of our former Engineered Cabs operating segment, on a historical basis, through the date of disposition (November 1, 2019) as well as certain income and expense items not allocated to our operating segments.

Prior period financial information has been revised to reflect the operating results and financial position of the new reportable operating segments. Historical financial information presented herein reflects this change.

Concurrent with the change in management structure described above, the profit measure that the Company’s Chief Operating Decision Maker ("CODM") uses to assess segment performance and allocate resources was changed from operating income to adjusted earnings (loss) before interest and taxes (“adjusted EBIT”). EBIT is calculated by adding interest expense and income tax expense to net earnings attributable to controlling interest. Adjusted EBIT excludes impairment and restructuring charges (gains), but may also exclude other items that management believes are not reflective of, and thus should not be included when evaluating, the performance of the Company’s ongoing operations. Adjusted EBIT is a non-GAAP measure and is used by management to evaluate segment performance, engage in financial and operational planning and determine incentive compensation because we believe that this measure provides additional perspective and, in some circumstances is more closely correlated to, the performance of the Company’s ongoing operations.

For the periods presented, equity income from our unconsolidated joint ventures is included in the measurement of segment profit as shown in the table below. The related investment balances are included in segment net assets in the same manner.

Unconsolidated Joint Ventures Included in Segment Profit
Steel Processing	Consumer Products	Building Products	Sustainable Energy Solutions	Other
Serviacero Worthington	N/A	WAVE	N/A	Workhorse
		ClarkDietrich		ArtiFlex

The accounting policies of the reportable business segments and other operating segments are described in “Note A – Summary of Significant Accounting Policies.” Inter-segment sales are not material.

The following table presents summarized financial information for our reportable business segments as of, and for the periods indicated:

	Twelve Months Ended May 31, 2022
(in thousands)	Steel Processing			Consumer Products			Building Products			Sustainable Energy Solutions			Other			Consolidated
Net sales	$	3,933,021		$	636,478		$	541,757		$	130,954		$	9		$	5,242,219
Capital expenditures		35,898			13,375			31,064			6,445			7,818			94,600
Depreciation and amortization		55,771			10,919			18,112			6,554			7,471			98,827
Impairment of long-lived assets		3,076			-			-			-			-			3,076
Restructuring and other income, net		(14,480	)		-			(35	)		(143	)		(2,438	)		(17,096	)
Miscellaneous income (expense), net		862			(76	)		240			64			1,624			2,714
Equity in net income of unconsolidated affiliates		29,787			-			176,498			-			7,356			213,641
Adjusted earnings (loss) before interest and taxes (1)		203,272			94,302			216,608			(6,236	)		8,564			516,510

(1)Excludes the noncontrolling interest portion of impairment charges and restructuring income of $4,785.

	Twelve Months Ended May 31, 2021
(in thousands)	Steel Processing			Consumer Products			Building Products		Sustainable Energy Solutions		Other			Consolidated
Net sales	$	2,059,397		$	523,697		$	402,038	$	134,890	$	51,407		$	3,171,429
Capital expenditures		28,306			13,334			22,705		8,652		9,181			82,178
Depreciation and amortization		40,870			10,145			17,321		6,699		12,619			87,654
Impairment of long-lived assets		-			506			1,423		-		11,810			13,739
Restructuring and other expense, net		1,883			41			256		10,293		43,624			56,097
Incremental expenses related to Nikola gains		-			-			-		-		50,624			50,624
Miscellaneous income (expense), net		(371	)		(512	)		194		203		2,649			2,163
Equity in net income of unconsolidated affiliates		15,965			-			103,447		-		3,913			123,325
Adjusted earnings (loss) before interest and taxes (2)		208,175			74,936			117,904		4,961		(10,505	)		395,471

(2)Excludes the noncontrolling interest portion of restructuring expense of $295 and the gain on investment in Nikola of $655,102.

	Twelve Months Ended May 31, 2020
(in thousands)	Steel Processing		Consumer Products			Building Products		Sustainable Energy Solutions		Other			Consolidated
Net sales	$	1,859,670	$	449,337		$	383,372	$	122,113	$	244,627		$	3,059,119
Capital expenditures		40,588		8,069			17,931		13,794		15,121			95,503
Depreciation and amortization		40,819		9,189			18,318		5,596		18,756			92,678
Impairment of long-lived assets		1,839		-			3,800		-		77,051			82,690
Restructuring and other expense, net		3,501		846			651		-		5,050			10,048
Miscellaneous income (expense), net		6,082		(25	)		158		109		2,775			9,099
Equity in net income of unconsolidated affiliates		1,325		-			118,288		-		(4,765	)		114,848
Adjusted earnings (loss) before interest and taxes (3)(4)		39,695		65,408			104,531		5,024		(7,071	)		207,587

(3)Excludes the noncontrolling interest portion of impairment charges and restructuring expense of $1,913.

(4)Excludes the gain on the consolidation of Samuel of $6,055 as well as the gain on the sale of WAVE's international operations of $23,119 and the impairment of our investment in the Nisshin joint venture of $4,236, which were recorded in equity in net income of unconsolidated affiliates in our consolidated statements of earnings.

Total assets for each of our reportable segments as of the dates indicated were as follows:

	May 31,		May 31,
(in thousands)	2022		2021
Total assets
Steel Processing	$	2,082,522	$	1,359,598
Consumer Products		681,188		541,028
Building Products		577,026		555,561
Sustainable Energy Solutions		114,084		128,438
Other		188,203		788,620
Total assets	$	3,643,023	$	3,373,245

The following table presents net sales by geographic region for the fiscal years ended May 31:

(in thousands)	2022		2021		2020
North America	$	4,937,396	$	2,956,962	$	2,912,777
International		304,823		214,467		146,342
Total	$	5,242,219	$	3,171,429	$	3,059,119

The following table presents property, plant and equipment, net, by geographic region as of May 31:

(in thousands)	2022		2021
North America	$	595,261	$	442,348
International		101,079		72,669
Total	$	696,340	$	515,017