Investments in joint ventures that we do not control, either through majority ownership or otherwise, are unconsolidated and accounted for using the equity method. At November 30, 2024, we held investments in the following unconsolidated joint ventures: ClarkDietrich (25%); Sustainable Energy Solutions (49%); WAVE (50%); and Workhorse (20%).

We received distributions from unconsolidated affiliates totaling $77,769 during the six months ended November 30, 2024. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in a negative asset balance of $110,763 and $111,905 at November 30, 2024 and May 31, 2024, respectively. In accordance with the applicable accounting guidance, we have reclassified the negative balances to distributions in excess of investment in unconsolidated affiliate within our consolidated balance sheets. We will continue to record our equity in the net income of WAVE as a debit to the investment account, and if it becomes positive, it will again be shown as an asset on our consolidated balance sheets. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will immediately recognize any balance classified as a liability as income.

We use the cumulative earnings approach to determine the cash flow presentation of distributions from our unconsolidated joint ventures. Distributions received are included in our consolidated statements of cash flows as operating activities unless the cumulative distributions exceed our share of the cumulative equity in the net earnings of the joint venture. In such cases, the excess distributions are considered returns of investment and are classified as investing activities in our consolidated statements of cash flows. No distributions exceeded our share in any of our unconsolidated joint ventures during the second quarter of fiscal 2025. During the second quarter of fiscal 2024, we classified $1,085 of dividends received from WAVE as an investing activity.

The following tables summarize combined financial information for our unconsolidated affiliates included in continuing operations as of the dates, and for the periods presented:


	November 30,		May 31,
	2024		2024
Cash and cash equivalents	$	51,240	$	36,163
Other current assets		547,436		605,043
Noncurrent assets		372,466		360,261
Total assets	$	971,142	$	1,001,467

Current liabilities		212,806		264,963
Current maturities of long-term debt		3,208		13,450
Long-term debt		356,539		349,431
Other noncurrent liabilities		143,774		146,984
Equity		254,815		226,639
Total liabilities and equity	$	971,142	$	1,001,467


	Three Months Ended				Six Months Ended
	November 30,				November 30,
	2024		2023		2024		2023
Net sales	$	492,990	$	513,470	$	1,008,663	$	1,082,053
Gross profit		136,693		148,298		271,028		321,315
Operating income		90,847		118,958		185,193		250,405
Depreciation and amortization		7,725		7,224		15,731		14,800
Interest expense		4,529		4,538		9,287		10,277
Income tax expense		309		442		954		1,351
Net earnings		89,186		115,114		179,868		240,766