Investments in affiliated companies that we do not control, either through majority ownership or otherwise, are accounted for using the equity method. These include ArtiFlex Manufacturing, LLC (“ArtiFlex”) (50%), Clarkwestern Dietrich Building Systems LLC (“ClarkDietrich”) (25%), Samuel Steel Pickling Company (31.25%), Serviacero Planos, S. de R. L. de C.V. (“Serviacero Worthington”) (50%), Worthington Armstrong Venture (“WAVE”) (50%), and Zhejiang Nisshin Worthington Precision Specialty Steel Co., Ltd. (10%).

We received distributions from unconsolidated affiliates totaling $131,888,000 during the nine months ended February 28, 2019, including $60,000,000 of one-time special distributions from WAVE, comprised of $35,000,000 related to the pending sale of the international operations and $25,000,000 in connection with a financing transaction. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in an amount recorded within other liabilities on our consolidated balance sheets of $124,198,000 at February 28, 2019. In accordance with the applicable accounting guidance, we reclassified the negative investment balance 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 the investment balance becomes positive, it will again be shown as an asset on our consolidated balance sheet. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will recognize any negative investment balance classified as a liability as income immediately.

We use the “cumulative earnings” approach for determining 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 received, less distributions received in prior periods that were determined to be returns of investment, exceed our portion of the cumulative equity in the net earnings of the joint venture, in which case the excess distributions are deemed to be returns of the investment and are classified as investing activities in our consolidated statements of cash flows. We received excess distributions from WAVE of $56,693,000 during the nine months ended February 28, 2019.

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

	February 28,		May 31,
(in thousands)	2019		2018
Cash	$	41,087	$	52,812
Other current assets		595,417		590,578
Current assets for discontinued operations		35,609		37,640
Noncurrent assets		363,992		358,927
Total assets	$	1,036,105	$	1,039,957

Current liabilities	$	234,230	$	166,493
Current liabilities for discontinued operations		8,744		7,142
Short-term borrowings		21,983		26,599
Current maturities of long-term debt		23,216		23,243
Long-term debt		322,306		259,588
Other noncurrent liabilities		18,734		17,536
Equity		406,892		539,356
Total liabilities and equity	$	1,036,105	$	1,039,957

	Three Months Ended February 28,					Nine Months Ended February 28,
(in thousands)	2019		2018			2019		2018
Net sales	$	454,579	$	403,426		$	1,433,840	$	1,258,667
Gross margin		77,706		72,828			257,033		230,185
Operating income		47,392		41,546			164,360		133,313
Depreciation and amortization		6,310		5,406			19,368		18,534
Interest expense		3,529		2,564			9,836		7,517
Income tax expense (benefit)		1,877		(1,095	)		9,970		2,069
Net earnings from continuing operations		40,196		36,058			141,613		118,995
Net earnings from discontinued operations		1,001		1,805			4,713		1,532
Net earnings		41,197		37,863			146,326		120,527

The amounts presented within the discontinued operations captions in the tables above reflect the international operations of our WAVE joint venture, which are being sold as part of a broader transaction between the joint venture partner, Armstrong World Industries, Inc. (“AWI”), and Knauf Group, a family-owned manufacturer of building materials headquartered in Germany. WAVE’s portion of the total sales proceeds is expected to be approximately $90,000,000 ($45,000,000 attributed to Worthington). The transaction is subject to regulatory approvals and other customary closing conditions. During the first quarter of fiscal 2019, the parties agreed to extend the date by which certain competition clearance conditions were to be satisfied per the original purchase agreement. In exchange, Knauf Group irrevocably agreed to fund the purchase price which was received by AWI in two distributions, the first on August 1, 2018, and the balance on September 15, 2018. In September 2018, we received a cash distribution of $35,000,000 from WAVE related to the pending sale of the international operations. We will receive the remaining proceeds at closing, subject to certain adjustments as provided in the purchase agreement, including those related to the economic impact of any required regulatory remedies and a working capital adjustment. Despite receiving a portion of the sales proceeds, there has been no change in control of the international operations of WAVE; therefore, the gain to be realized from this transaction has not been reflected in WAVE’s statement of earnings. The closing is expected to occur by June 30, 2019.