Investments in Unconsolidated Affiliates (Tables)

12 Months Ended

May 31, 2012

Income Statement

Financial Information

The following table presents financial results of our three largest affiliated companies for the fiscal years ended May 31, 2012, 2011 and 2010. All other affiliated companies are combined and presented in the Other category.

(in thousands)	2012		2011		2010
Net sales
WAVE	$	364,530	$	346,717	$	319,821
ClarkDietrich		564,624		165,807		-
TWB		312,943		272,191		220,500
Other		443,646		249,716		168,458
Total net sales	$	1,685,743	$	1,034,431	$	708,779
Gross margin
WAVE	$	163,563	$	154,194	$	146,045
ClarkDietrich		61,703		17,115		-
TWB		42,124		34,756		29,753
Other		62,758		32,018		13,824
Total gross margin	$	330,148	$	238,083	$	189,622
Operating income
WAVE	$	127,305	$	116,295	$	111,524
ClarkDietrich		27,094		8,323		-
TWB		28,141		21,470		14,982
Other		38,473		22,056		4,660
Total operating income	$	221,013	$	168,144	$	131,166
Depreciation and amortization
WAVE	$	4,142	$	3,991	$	3,767
ClarkDietrich		14,271		8		-
TWB		3,259		3,900		3,783
Other		12,481		3,553		3,140
Total depreciation and amortization	$	34,153	$	11,452	$	10,690
Interest expense
WAVE	$	3,427	$	1,375	$	1,366
ClarkDietrich		3		-		-
TWB		-		-		-
Other		2,617		137		116
Total interest expense	$	6,047	$	1,512	$	1,482
Income tax expense
WAVE	$	2,789	$	2,669	$	2,457
ClarkDietrich		-		-		-
TWB		5,458		4,233		1,408
Other		6,867		3,224		1,760
Total income tax expense	$	15,114	$	10,126	$	5,625
Net earnings
WAVE	$	121,261	$	112,544	$	107,776
ClarkDietrich		27,203		8,331		-
TWB		22,952		18,022		14,469
Other		30,317		17,782		5,592
Total net earnings	$	201,733	$	156,679	$	127,837

Balance Sheet

Financial Information

The following table presents combined information of the financial position for affiliated companies accounted for using the equity method as of May 31, 2012 and 2011:

(in thousands)	2012		2011
Current assets	$	626,975	$	597,222
Noncurrent assets		345,500		260,805
Total assets	$	972,475	$	858,027
Current liabilities	$	174,016	$	184,467
Current maturities of long-term debt		5,305		-
Long-term debt		289,308		150,229
Other noncurrent liabilities		21,934		5,365
Equity		481,912		517,966
Total liabilities and equity	$	972,475	$	858,027

ArtiFlex

Attribution of Excess Fair Value To Assets

We attributed this excess fair value to the following assets:

(in thousands)
Inventories (1)	$	1,900
Intangible assets (2)		8,200
Property, plant and equipment, net (3)		8,198
Total identifiable assets		18,298
Equity method goodwill (4)		12,800
Total excess fair value	$	31,098

(1) Recognized as an adjustment to equity income as the related inventories are sold.

(2) Includes $7,500,000 related to definite-lived intangible assets. This amount will be amortized to equity income over the estimated useful lives of those assets. The remaining $700,000 relates to intangible assets with indefinite useful lives, which will be reviewed for impairment in accordance with the applicable accounting guidance and, to the extent impaired, recognized as a reduction to equity income.

(3) Recognized as an adjustment to equity income over the estimated useful lives of the related assets in a manner consistent with depreciation.

(4) Will be reviewed for impairment in accordance with the applicable accounting guidance and, to the extent impaired, recognized as a reduction to equity income.

ClarkDietrich

Attribution of Excess Fair Value To Assets

We attributed this excess fair value to the following assets:

(in thousands)
Inventories (1)	$	15,000
Intangible assets (2)		14,400
Property, plant and equipment, net (3)		(10,180	)
Total identifiable assets		19,220
Equity method goodwill (4)		1,100
Total excess fair value	$	20,320

(1) Recognized as an adjustment to equity income as the related inventories are sold.

(2) Includes $8,960,000 related to definite-lived intangible assets. This amount will be amortized to equity income over the estimated useful lives of those assets. The remaining $5,440,000 relates to intangible assets with indefinite useful lives, which will be reviewed for impairment in accordance with the applicable accounting guidance and, to the extent impaired, recognized as a reduction to equity income.

(3) Recognized as an adjustment to equity income over the estimated useful lives of the related assets in a manner consistent with depreciation.

(4) Will be reviewed for impairment in accordance with the applicable accounting guidance and, to the extent impaired, recognized as a reduction to equity income.