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Goodwill and Long-Lived Assets
3 Months Ended
Aug. 31, 2021
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Long-Lived Assets

NOTE E – Goodwill and Long-Lived Assets

Goodwill

The following table summarizes the changes in the carrying amount of goodwill by segment and in total:

 

(in thousands)

 

Steel Processing

 

 

Consumer Products (1)

 

 

Building Products (1)

 

 

Sustainable Energy Solutions (1)

 

 

Total

 

Balance at May 31, 2021

 

$

20,218

 

 

$

240,940

 

 

$

72,273

 

 

$

17,625

 

 

$

351,056

 

Acquisitions and purchase accounting adjustments

 

 

26,669

 

 

 

237

 

 

 

-

 

 

 

-

 

 

 

26,906

 

Translation adjustments

 

 

-

 

 

 

 

 

 

 

(1,915

)

 

 

(851

)

 

 

(2,766

)

Balance at August 31, 2021

 

$

46,887

 

 

$

241,177

 

 

$

70,358

 

 

$

16,774

 

 

$

375,196

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) In connection with the realignment of the Company's pressure cylinders business, as discussed further in Note O - Segment Operations, the goodwill of our former Pressure Cylinders reporting unit was allocated to the new reporting units on a relative fair value basis.

 

There was no goodwill associated with the Other segment at August 31, 2021, or May 31, 2021.  We have recognized accumulated goodwill impairment charges within the Other segment totaling $198,290,000 as of August 31, 2021.

 

Impairment of Long-Lived Assets

Fiscal 2022: None.

Fiscal 2021:  During the first quarter of fiscal 2021, management determined indicators of impairment were present with regard to the cryogenics business primarily operated out of Theodore, Alabama with European distribution in Austria.  As a result, property, plant and equipment with a carrying value of $13,526,000 were written down to their estimated fair value of $9,193,000 (determined using Level 2 inputs), resulting in an impairment charge of $4,333,000.  Additionally, the customer list intangible assets with a carrying value of $3,662,000 were deemed to be fully impaired and written off.  The fair value of the customer list intangible assets was determined using unobservable Level 3 inputs.  

During the first quarter of fiscal 2021, the Company decided to discontinue its operation of the manufacturing line for alternative fuel cylinders at the Jefferson, Ohio facility.  As a result, long-lived assets with a carrying value of $1,823,000 were written down to their estimated fair market value of $400,000 (determined using Level 2 inputs), resulting in an impairment charge of $1,423,000.

During the first quarter of fiscal 2021, the Company recognized a $506,000 impairment charge related to the Superior Tools business that was acquired as part of Magna Industries, Inc. in fiscal 2019 and subsequently sold.