Goodwill and Long-Lived Assets

9 Months Ended

Feb. 28, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

NOTE F – Goodwill and Long-Lived Assets

Goodwill

(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		62,709			434		-			-			63,143
Translation adjustments		(94	)		-		(4,628	)		(2,159	)		(6,881	)
Balance at February 28, 2022	$	82,833		$	241,374	$	67,645		$	15,466		$	407,318

⁽¹⁾ In connection with the realignment of the Company's pressure cylinders business, as discussed further in “Note P - 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 February 28, 2022, or May 31, 2021. Accumulated goodwill impairment charges within the Other segment totaled $198,290,000 as of February 28, 2022 and May 31, 2021.

Impairment of Long-Lived Assets

Fiscal 2022: During the third quarter of fiscal 2022, management committed to plans to sell certain production equipment at the Samuel joint venture’s facility in Twinsburg, Ohio. As all of the criteria for classification of assets held for sale were met, the net assets have been presented separately as assets held for sale in our consolidated balance sheets. In accordance with the applicable accounting guidance, the net assets were recorded at the lower of net book value or fair market value less costs to sell. The net book value of the production equipment exceeded its estimated fair market value less costs to sell of $700,000, resulting in an impairment charge of $3,076,000.

Fiscal 2021: During the first nine months of fiscal 2021, we recorded impairment charges totaling $13,739,000 as impairment indicators were identified as follows:

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Due to the economic impact of the COVID-19 pandemic and related market softness in the oil & gas equipment operations in Tulsa, Oklahoma, we tested the long-lived assets consisting of fixed assets and customer list intangible assets with net book values of $7,375,000 and $2,374,000, respectively, for impairment. The fair value of the fixed assets was determined to be $5,934,000 (using observable Level 2 inputs) resulting in an impairment charge of $1,441,000. Additionally, the customer list intangible assets were deemed to be fully impaired (using unobservable Level 3 inputs) and written off.

•

The future undiscounted cash flows of the cryogenics business primarily operated out of the Theodore, Alabama facility did not support its book value. As a result, property, plant and equipment with a carrying value of $13,526,000 was written down to its 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 and technological know-how assets with a carrying value of $3,662,000 were deemed to be fully impaired (using unobservable Level 3 inputs) and written off. These assets were subsequently sold in October 2020.

•

We decided to discontinue our 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.

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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.