Investments In Unconsolidated Affiliates

9 Months Ended

Feb. 29, 2012

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 February 29, 2012, these equity investments and the percentage interests owned consisted of: ArtiFlex (50%), ClarkDietrich (25%), Gestamp Worthington Wind Steel, LLC (the "Gestamp JV") (50%), 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.

During January 2012, we sold our 49% equity interest in LEFCO Worthington, LLC, to the other member of the joint venture. The sales price and loss on the transaction were immaterial.

We received distributions from unconsolidated affiliates totaling $116,348,000 during the nine months ended February 29, 2012, including a one-time special dividend of $50,000,000 in connection with a refinancing transaction completed by WAVE in December 2011.

We have received cumulative distributions from WAVE in excess of our investment balance totaling $64,263,000 and $10,715,000 as of February 29, 2012 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 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 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.

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

(in thousands)	February 29, 2012		May 31, 2011
Cash	$	119,921	$	122,938
Other current assets		503,692		474,284
Noncurrent assets		338,098		260,805
Total assets	$	961,711	$	858,027
Current maturities of long-term debt	$	3,632	$	—
Current liabilities		170,285		184,467
Long-term debt		247,115		150,229
Other noncurrent liabilities		57,183		5,365
Equity		483,496		517,966
Total liabilities and equity	$	961,711	$	858,027

	Three Months Ended				Nine Months Ended
(in thousands)	February 29, 2012		February 28, 2011		February 29, 2012		February 28, 2011
Net sales	$	409,981	$	201,678	$	1,258,185	$	625,483
Gross margin		82,904		50,797		246,714		155,995
Depreciation and amortization		4,171		2,840		13,773		8,402
Interest expense		1,925		364		3,751		1,147
Income tax expense		1,908		1,504		12,032		7,025
Net earnings		51,955		31,442		151,779		102,089