Investments In Unconsolidated Affiliates

6 Months Ended

Nov. 30, 2011

Investments In Unconsolidated Affiliates [Abstract]

Investments In Unconsolidated Affiliates

NOTE B – Investments in Unconsolidated Affiliates

Investments in affiliated companies that we do not control, either through majority ownership, or otherwise, are accounted for using the equity method. At November 30, 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 $44,322,000 during the six months ended November 30, 2011. We have received cumulative distributions from WAVE in excess of our investment balance totaling $11,286,000 and $10,715,000 as of November 30 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. 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 sheet. If it becomes obvious that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will recognize any balance classified as a liability as income immediately. As more fully described in "NOTE P – Subsequent Events," during December 2011, we received a $50,000,000 non-recurring special dividend from WAVE, increasing the amount recorded within other liabilities.

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

	November 30,		May 31,
(in thousands)	2011		2011
Cash	$	161,622	$	122,938
Other current assets		494,035		474,284
Noncurrent assets		332,356		260,805
Total assets	$	988,013	$	858,027
Current maturities of long-term debt	$	3,615	$	-
Current liabilities		206,583		184,467
Long-term debt		180,161		150,229
Other noncurrent liabilities		21,244		5,365
Equity		576,410		517,966
Total liabilities and equity	$	988,013	$	858,027

	Three Months Ended				Six Months Ended
	November 30,				November 30,
(in thousands)	2011		2010		2011		2010
Net sales	$	420,103	$	210,666	$	848,204	$	423,805
Gross margin		79,985		49,856		163,809		105,198
Depreciation and amortization		4,766		2,767		9,602		5,562
Interest expense		950		373		1,826		783
Income tax expense		5,766		2,429		10,124		5,521
Net earnings		47,959		33,224		99,823		70,647