Investments In Unconsolidated Affiliates

3 Months Ended

Aug. 31, 2011

Investments In Unconsolidated Affiliates

Investments In Unconsolidated Affiliates

NOTE B – Investments in Unconsolidated Affiliates

Our investments in affiliated companies that we do not control, either through majority ownership, or otherwise, are accounted for using the equity method. At August 31, 2011, these equity investments and the percentage interests owned consisted of: ArtiFlex (50%), ClarkDietrich (25%), Gestamp Worthington Wind Steel, LLC (the "Gestamp JV") (50%), LEFCO Worthington, LLC (49%), Samuel Steel Pickling Company (31%), Serviacero Planos, S. de R. L. de C.V. (50%), TWB Company, L.L.C. (45%), Worthington Armstrong Venture ("WAVE") (50%), Worthington Modern Steel Framing Manufacturing Co., Ltd. ("WMSFMCo.") (40%), and Worthington Specialty Processing ("WSP") (51%). WSP is considered to be jointly controlled and not consolidated due to substantive participating rights of the minority partner.

We received distributions from unconsolidated affiliates totaling $19,628,000 during the three months ended August 31, 2011. We have received cumulative distributions from WAVE in excess of our investment balance totaling $7,844,000 and $10,715,000 at August 31 and May 31, 2011, respectively. In accordance with the applicable accounting guidance, these excess distributions are reclassified to the liabilities section of our consolidated balance sheet.

Combined financial information for our unconsolidated affiliates is summarized in the following table:


(in thousands)	August 31, 2011		May 31, 2011
Cash	$	126,609	$	122,938
Other current assets		507,850		474,284
Noncurrent assets		330,043		260,805

Total assets	$	964,502	$	858,027


Current liabilities	$	197,476	$	184,467
Long-term debt		174,761		150,229
Other noncurrent liabilities		4,831		5,365
Equity		587,434		517,966

Total liabilities and equity	$	964,502	$	858,027


	Three Months Ended August 31,
(in thousands)	2011		2010
Net sales	$	427,794	$	213,139
Gross margin		83,825		55,342
Depreciation and amortization		4,834		2,795
Interest expense		876		410
Income tax expense		4,358		3,092
Net earnings		51,865		37,423

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

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