Discontinued Operations

6 Months Ended

Nov. 30, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note B – Discontinued Operations

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

	Three Months Ended			Six Months Ended
	November 30, 2023			November 30, 2023
Net sales	$	788,689		$	1,670,027
Cost of goods sold		728,252			1,481,731
Gross profit		60,437			188,296
Selling, general and administrative expense		37,106			74,909
Impairment of long-lived assets		-			1,401
Separation costs		14,895			18,521
Operating income		8,436			93,465
Other income (expense):
Miscellaneous income, net		305			1,017
Interest expense, net		(1,697	)		(3,706	)
Equity in net income of unconsolidated affiliate		3,778			12,735
Earnings before income taxes		10,822			103,511
Income tax expense		589			20,405
Net earnings		10,233			83,106
Net earnings attributable to noncontrolling interest		3,865			7,461
Net earnings attributable to controlling interest	$	6,368		$	75,645

As permitted under GAAP, the cash flows related to discontinued operations have not been segregated in our consolidated statements of cash flows. Accordingly, the consolidated statement of cash flows for the three and six months ended November 30, 2023 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 statement of cash flows for the periods presented.

	Three Months Ended			Six Months Ended
	November 30, 2023			November 30, 2023
Significant non-cash operating items:
Depreciation and amortization	$	15,793		$	32,043
Impairment of long-lived assets		-			1,401
Equity in income of unconsolidated affiliate, net of distributions		(3,777	)		(12,734	)
Stock-based compensation		2,315			3,472
Significant investing activities:
Investment in property, plant and equipment		(13,682	)		(33,457	)
Acquisitions, net of cash acquired		(21,013	)		(21,013	)
Significant financing activities:
Net proceeds from short-term borrowings		175,000			172,187