Investments in Unconsolidated Affiliates (Tables)

12 Months Ended

May 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

Financial Information

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)	2023		2022
Cash and cash equivalents	$	49,185	$	68,563
Other current assets		899,913		1,148,029
Noncurrent assets		394,468		369,608
Total assets (1)	$	1,343,566	$	1,586,200
Current liabilities	$	247,796	$	345,097
Short-term borrowings		-		5,943
Current maturities of long-term debt		36,936		33,054
Long-term debt		349,215		306,814
Other noncurrent liabilities		144,649		76,437
Equity		564,970		818,855
Total liabilities and equity (1)	$	1,343,566	$	1,586,200

(1)Effective January 1, 2022, Workhorse adopted Topic 842 using the alternative transition method. As a result of the adoption, Workhorse recognized operating lease ROU assets of $47,082 and lease liabilities of $47,082. The adoption resulted in a cumulative-effect adjustment of $18,000 related to a prior sale lease-back transaction recognized under Accounting Standards Codification Topic 840. Our portion of this cumulative effect adjustment was $3,600 and is recognized in retained earnings on our consolidated balance sheet as of May 31, 2023. The impact of adopting ASC 842 did not have a significant impact on the financial statements of our other unconsolidated affiliates.

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

(In thousands)	2023		2022		2021
Net sales
WAVE	$	447,369	$	452,368	$	371,814
ClarkDietrich		1,451,665		1,695,808		893,371
Serviacero Worthington		564,569		620,312		311,543
ArtiFlex (1)		52,641		187,089		144,834
Workhorse		364,396		313,265		196,915
Total net sales	$	2,880,640	$	3,268,842	$	1,918,477

(In thousands)	2023		2022		2021
Gross margin
WAVE	$	242,257	$	238,523	$	215,692
ClarkDietrich		403,569		431,070		158,074
Serviacero Worthington		21,503		96,918		51,253
ArtiFlex (1)		8,589		30,633		20,596
Workhorse		17,628		11,455		(7,057	)
Total gross margin	$	693,546	$	808,599	$	438,558

(In thousands)	2023		2022			2021
Operating income (loss)
WAVE	$	184,882	$	183,545		$	165,381
ClarkDietrich		318,914		351,583			94,888
Serviacero Worthington		10,387		87,342			43,075
ArtiFlex (1)		4,911		15,778			9,628
Workhorse		7,507		(2,024	)		(2,372	)
Total operating income	$	526,601	$	636,224		$	310,600

(In thousands)	2023		2022		2021
Depreciation and amortization
WAVE	$	4,679	$	4,554	$	4,073
ClarkDietrich		13,717		10,946		11,917
Serviacero Worthington		4,030		4,300		4,305
ArtiFlex (1)		1,444		5,708		5,728
Workhorse		10,386		6,586		8,965
Total depreciation and amortization	$	34,256	$	32,094	$	34,988

(In thousands)	2023		2022		2021
Interest expense
WAVE	$	13,024	$	8,386	$	8,909
ClarkDietrich		524		308		101
Serviacero Worthington		329		180		42
ArtiFlex (1)		134		340		528
Workhorse		2,507		1,228		2,704
Total interest expense	$	16,518	$	10,442	$	12,284

(In thousands)	2023			2022		2021
Income tax expense (benefit)
WAVE	$	222		$	158	$	200
ClarkDietrich		1,924			-		-
Serviacero Worthington		(2,996	)		25,079		11,341
ArtiFlex (1)		59			258		149
Workhorse		1,802			1,244		270
Total income tax expense	$	1,011		$	26,739	$	11,960

(In thousands)	2023		2022			2021
Net earnings (loss)
WAVE	$	171,687	$	175,154		$	156,869
ClarkDietrich		321,977		356,288			98,313
Serviacero Worthington		15,451		59,565			31,865
ArtiFlex (1)		4,717		15,180			8,950
Workhorse		2,673		(1,170	)		(2,811	)
Total net earnings	$	516,505	$	605,017		$	293,186

(1)On August 3, 2022, we sold our 50% noncontrolling equity interest in ArtiFlex.