Revenue Recognition

12 Months Ended

May 31, 2021

Revenue From Contract With Customer [Abstract]

Revenue Recognition

Note B – Revenue Recognition

On June 1, 2018, we adopted revenue recognition accounting guidance that replaced most existing revenue recognition accounting guidance under U.S. GAAP, Topic 606.  Under Topic 606, we recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration we expect to receive for those goods or services, including any variable consideration.  

The accounting guidance was adopted using the modified retrospective approach as applied to customer contracts that were not complete at the date of adoption, with the cumulative effect recognized in retained earnings.  The cumulative effect adjustment resulted from a change in the pattern of recognition for our toll processing revenue stream and certain contracts within our former oil & gas equipment revenue stream, which previously were accounted for as point in time and are now accounted for over time.

The following table outlines the cumulative effect of adopting the new revenue recognition guidance:

(in thousands)	May 31, 2018 (As Reported)		Cumulative Effect of Topic 606 Adoption			June 1, 2018 (As Adjusted)
Consolidated Balance Sheet
Assets
Receivables	$	572,689	$	4,706		$	577,395
Total inventories		454,027		(3,452	)		450,575
Prepaid expenses and other current assets		60,134		944			61,078
Liabilities and equity
Deferred income taxes, net		60,188		454			60,642
Retained earnings		637,757		1,174			638,931
Noncontrolling interests		117,606		570			118,176

The following table summarizes net sales by product class for the periods presented:

(in thousands)	Fiscal Year Ended May 31,
Reportable segments by product class:	2021		2020		2019
Steel Processing
Direct	$	1,927,418	$	1,729,972	$	2,308,756
Toll		131,979		129,698		127,062
Total		2,059,397		1,859,670		2,435,818
Pressure Cylinders
Industrial products		552,093		550,543		627,053
Consumer products		537,930		485,990		470,447
Oil & gas equipment		20,950		111,891		110,298
Total		1,110,973		1,148,424		1,207,798
Other
Engineered Cabs		1,058		50,954		115,902
Other		1		71		38
Total		1,059		51,025		115,940
Total	$	3,171,429	$	3,059,119	$	3,759,556

We recognize revenue at a point in time, with the exception of the toll processing revenue stream and certain contracts within the oil & gas equipment business, which was divested, on January 29, 2021. The following table summarizes the revenue that has been recognized over time for the periods presented:

	Fiscal Year Ended May 31,
(in thousands)	2021		2020		2019
Steel Processing - toll	$	131,979	$	129,698	$	127,062
Pressure Cylinders - certain oil & gas contracts		15,666		100,774		75,159
Total over time revenue	$	147,645	$	230,472	$	202,221

The following table summarizes the unbilled receivables and contract assets for the periods indicated:

		Fiscal Year Ended May 31,
(in thousands)	Balance Sheet Classification	2021		2020
Unbilled receivables	Receivables	$	5,317	$	5,552
Contract assets	Prepaid expenses and other current assets	$	-	$	4,127