Investments in affiliated companies that we do not control, either through majority ownership or otherwise, are accounted for using the equity method. At August 31, 2021, the Company held investments in the following affiliated companies: ArtiFlex Manufacturing, LLC (“ArtiFlex”) (50%), Clarkwestern Dietrich Building Systems LLC (“ClarkDietrich”) (25%), Serviacero Planos, S. de R. L. de C.V. (“Serviacero Worthington”) (50%), Taxi Workhorse Holdings, LLC (“Cabs”) (20%), and Worthington Armstrong Venture (“WAVE”) (50%).

We received distributions from unconsolidated affiliates totaling $19,697,000 during the three months ended August 31, 2021. 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 sheet of $92,917,000 at August 31, 2021. 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.

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

	August 31,		May 31,
(in thousands)	2021		2021
Cash	$	19,289	$	11,651
Other current assets		977,260		733,834
Noncurrent assets		381,177		382,585
Total assets	$	1,377,726	$	1,128,070

Current liabilities	$	333,144	$	232,626
Short-term borrowings		7,007		1,155
Current maturities of long-term debt		68,485		30,209
Long-term debt		304,512		311,871
Other noncurrent liabilities		104,933		92,209
Equity		559,645		460,000
Total liabilities and equity	$	1,377,726	$	1,128,070

	Three Months Ended August 31,
(in thousands)	2021		2020
Net sales	$	744,995	$	405,320
Gross margin		189,674		93,049
Operating income		145,988		57,953
Depreciation and amortization		3,215		7,730
Interest expense		2,461		2,945
Income tax expense		7,896		1,730
Net earnings		138,888		56,573