Investments in Unconsolidated Affiliates (Tables)

12 Months Ended

May 31, 2021

Equity Method Investments And Joint Ventures [Abstract]

The following table presents combined information regarding the financial position of our unconsolidated affiliates accounted for using the equity method as of May 31:

(in thousands)	2021		2020
Cash	$	11,651	$	68,730
Other current assets		733,834		528,631
Noncurrent assets		382,585		399,731
Total assets	$	1,128,070	$	997,092
Current liabilities	$	232,626	$	174,709
Short-term borrowings		1,155		500
Current maturities of long-term debt		30,209		37,542
Long-term debt		311,871		346,690
Other noncurrent liabilities		92,209		73,656
Equity		460,000		363,995
Total liabilities and equity	$	1,128,070	$	997,092

The following table presents summarized financial information for our four largest unconsolidated affiliates as of, and for the fiscal years ended May 31. All other unconsolidated affiliates are combined and presented in the Other category.

(in thousands)	2021			2020			2019
Net sales
WAVE	$	371,814		$	368,820		$	379,103
ClarkDietrich		893,371			855,994			892,758
Serviacero Worthington		311,543			273,276			351,671
ArtiFlex		144,834			175,428			201,526
Other		196,915			146,478			32,753
Total net sales	$	1,918,477		$	1,819,996		$	1,857,811

Gross margin (loss)
WAVE	$	215,692		$	208,040		$	205,909
ClarkDietrich		158,074			131,619			93,947
Serviacero Worthington		51,253			15,739			34,494
ArtiFlex		20,596			14,212			12,928
Other		(7,057	)		7,320			(6,000	)
Total gross margin	$	438,558		$	376,930		$	341,278

Operating income (loss)
WAVE	$	165,381		$	166,404		$	166,969
ClarkDietrich		94,888			66,952			33,384
Serviacero Worthington		43,075			7,513			25,636
ArtiFlex		9,628			6,248			5,524
Other		(2,372	)		(23,596	)		(9,964	)
Total operating income	$	310,600		$	223,521		$	221,549

Depreciation and amortization
WAVE	$	4,073		$	4,032		$	3,634
ClarkDietrich		11,917			11,869			11,600
Serviacero Worthington		4,305			4,324			4,319
ArtiFlex		5,728			5,605			6,055
Other		8,965			4,689			875
Total depreciation and amortization	$	34,988		$	30,519		$	26,483

Interest expense
WAVE	$	8,909		$	11,061		$	10,547
ClarkDietrich		101			378			912
Serviacero Worthington		42			87			493
ArtiFlex		528			801			1,443
Other		2,704			1,665			-
Total interest expense	$	12,284		$	13,992		$	13,395

Income tax expense (benefit)
WAVE	$	200		$	216		$	219
ClarkDietrich		-			-			-
Serviacero Worthington		11,341			3,267			7,629
ArtiFlex		149			(15	)		29
Other		270			(15	)		-
Total income tax expense	$	11,960		$	3,453		$	7,877

Net earnings (loss)
WAVE (1)	$	156,869		$	202,451		$	162,849
ClarkDietrich		98,313			68,899			34,560
Serviacero Worthington		31,865			2,573			16,155
ArtiFlex		8,950			5,461			4,051
Other		(2,811	)		(19,934	)		(8,383	)
Total net earnings	$	293,186		$	259,450		$	209,232

(1)

On September 30, 2019, WAVE completed the sale of its international operations to Knauf Ceilings and Holding GmbH (“Knauf”), as part of the broader transaction between Knauf and Armstrong World Industries, Inc., our partner in the WAVE joint venture. The net earnings in this table include net income attributable

to discontinued operations of $49,770,000 and $6,830,000 in fiscal 2020 and fiscal 2019, respectively. All other amounts presented in the table above exclude the activity of the discontinued operations of WAVE.