Discontinued Operations

12 Months Ended

May 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note B – Discontinued Operations

The following table summarizes the assets and liabilities from discontinued operations at May 31, 2023.

Assets
Current assets:
Cash and cash equivalents	$	32,678
Receivables, less allowances of $2,581		468,024
Inventories:
Raw materials		172,580
Work in process		164,059
Finished products		76,830
Total inventories		413,469
Income taxes receivable		2,517
Prepaid expenses and other current assets		58,656
Assets held for sale		3,381
Total current assets		978,725
Investments in unconsolidated affiliates		114,550
Operating lease assets		75,281
Goodwill		78,642
Other intangible assets, net of accumulated amortization of $38,894		83,375
Other assets		10,984
Property, plant and equipment:
Land		37,577
Buildings and improvements		169,155
Machinery and equipment		860,077
Construction in progress		20,386
Total property, plant and equipment		1,087,195
Less: accumulated depreciation		667,956
Total property, plant and equipment, net		419,239
Total assets	$	1,760,796
Liabilities
Current liabilities:
Accounts payable	$	402,177
Short-term borrowings		2,813
Accrued compensation, contributions to employee benefit plans and related taxes		47,028
Other accrued items		14,094
Current operating lease liabilities		5,926
Total current liabilities		472,038
Other liabilities		41,520
Noncurrent operating lease liabilities		71,656
Deferred income taxes, net		19,103
Total liabilities	$	604,317

The following table summarizes the financial results from the discontinued operations of Worthington Steel for the periods presented.

	Fiscal Years Ended May 31,
	2024			2023			2022
Net sales	$	1,670,027		$	3,497,896		$	3,933,030
Cost of goods sold		1,481,731			3,158,172			3,545,822
Gross profit		188,296			339,724			387,208
Selling, general and administrative expense		74,908			141,754			118,138
Impairment of long-lived assets		1,401			2,112			3,076
Restructuring and other income, net		-			(4,204	)		(14,480	)
Separation costs		18,521			17,514			-
Operating income		93,466			182,548			280,474
Other income (expense)
Miscellaneous income, net		1,016			3,270			862
Interest expense, net		(3,706	)		(8,461	)		(7,485	)
Equity in net income of unconsolidated affiliate		12,735			7,725			29,786
Earnings before income taxes		103,511			185,082			303,637
Income tax expense		20,670			41,663			62,321
Net earnings		82,841			143,419			241,316
Net earnings attributable to noncontrolling interest		7,460			12,642			19,878
Net earnings attributable to controlling interest	$	75,381		$	130,777		$	221,438

As permitted under U.S. GAAP, the cash flows related to discontinued operations have not been segregated in our consolidated statements of cash flows. Accordingly, the consolidated statements of cash flows include the results from both continuing and discontinued operations and amounts for certain captions will not agree with respective data in the consolidated balance sheet.

The following table summarizes significant non-cash operating items and capital expenditures of discontinued operations included in the consolidated statements of cash flows for the periods presented.

	Fiscal Years Ended May 31,
	2024			2023			2022
Significant non-cash operating items:
Depreciation and amortization	$	32,043		$	66,826		$	56,184
Impairment of long-lived assets		1,401			2,112			3,076
Equity in income of unconsolidated affiliate, net of distributions		(12,735	)		4,775			(27,287	)
Net gain on sale of asset		(412	)		(3,348	)		(15,123	)
Stock-based compensation		3,533			4,612			3,626
Significant investing activities:
Investment in property, plant and equipment		(33,457	)		(46,577	)		(36,422	)
Acquisitions, net of cash acquired		(21,013	)		-			(376,713	)
Significant financing activities:
Net proceeds from short-term borrowings		172,187			-			-