Segment Operations

3 Months Ended

Aug. 31, 2022

Segment Reporting [Abstract]

Segment Operations

Note O – Segment Operations

The profit measure that the Company’s Chief Operating Decision Maker ("CODM") uses to assess segment performance and allocate resources is 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 financial 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 financial measure provides additional perspective and, in some circumstances is more closely correlated to, the performance of the Company’s ongoing operations.

The following table presents summarized financial information for our reportable operating segments for the periods indicated.

	Three Months Ended August 31, 2022
(in thousands)	Steel Processing		Consumer Products			Building Products		Sustainable Energy Solutions			Other			Consolidated
Net sales	$	1,038,880	$	188,703		$	150,323	$	30,759		$	-		$	1,408,665
Impairment of long-lived assets		312		-			-		-			-			312
Restructuring and other expense (income), net		78		-			-		-			(1,178	)		(1,100	)
Miscellaneous income (expense), net		184		(35	)		222		(86	)		(5,371	)		(5,086	)
Equity in net income of unconsolidated affiliates		1,770		-			43,866		-			(13,924	)		31,712
Adjusted earnings (loss) before interest and taxes (1)(2)		34,913		20,934			52,734		(1,393	)		5,145			112,333

(1)Excludes the noncontrolling interest portion of impairment of long-lived assets of $(115) within Steel Processing.

(2)Excludes a non-cash settlement charge of $4,774 in miscellaneous income (expense), net within Other to accelerate a portion of deferred pension cost as a result of a pension lift-out transaction executed with a third-party insurance company to transfer a portion of the total projected benefit obligation of The Gerstenslager Company Bargaining Unit Employees’ Pension Plan to the third-party insurance company; excludes a loss of $15,759 in equity in net income of unconsolidated affiliates within Other related to the sale of the Company’s 50% noncontrolling equity investment in ArtiFlex effective August 3, 2022; excludes $525 in selling, general and administrative expense in Consumer Products related to incremental compensation expense attributable to the Level5 earnout.

	Three Months Ended August 31, 2021
(in thousands)	Steel Processing			Consumer Products		Building Products			Sustainable Energy Solutions			Other			Consolidated
Net sales	$	822,810		$	147,783	$	114,743		$	25,482		$	-		$	1,110,818
Restructuring and other income, net		(12,131	)		-		-			(143	)		-			(12,274	)
Miscellaneous income (expense), net		30			49		(73	)		(59	)		683			630
Equity in net income of unconsolidated affiliates		9,349			-		42,993			-			574			52,916
Adjusted earnings before interest and taxes (3)		107,692			20,555		48,754			(2,554	)		(416	)		174,031

(3) Excludes the noncontrolling interest portion of the restructuring gains within Steel Processing of $5,946.

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

	August 31,		May 31,
	2022		2022
Total assets
Steel Processing	$	2,016,113	$	2,082,522
Consumer Products		636,208		577,026
Building Products		648,502		681,188
Sustainable Energy Solutions		107,421		114,084
Other		101,898		188,203
Total assets	$	3,510,142	$	3,643,023