Investment in Unconsolidated Affiliate

6 Months Ended

Nov. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Affiliates

Note C – Investment in Unconsolidated Affiliate

We own a noncontrolling interest (50%) in one unconsolidated joint venture: Serviacero Worthington. We account for our investment in Serviacero Worthington using the equity method of accounting. Serviacero Worthington provides steel processing services, such as pickling, blanking, slitting, multi-blanking and cutting-to-length, to customers in a variety of industries including automotive, appliance and heavy equipment.

We did not receive any distributions from Serviacero Worthington during the six months ended November 30, 2023 or the six months ended November 30, 2022.

The following tables summarize the combined financial information of Serviacero Worthington as of the dates, and for the periods, presented:

	November 30,		May 31,
(In millions)	2023		2023
Cash and cash equivalents	$	2.9	$	12.2
Other current assets		283.8		238.2
Noncurrent assets		57.2		58.9
Total assets	$	343.9	$	309.3
Current liabilities		85.1		70.8
Other noncurrent liabilities		5.3		5.4
Equity		253.5		233.1
Total liabilities and equity	$	343.9	$	309.3

	Three Months Ended				Six Months Ended
	November 30,				November 30,
(In millions)	2023		2022		2023		2022
Net sales	$	163.4	$	157.4	$	315.3	$	320.0
Gross margin		18.6		6.9		39.9		16.0
Operating income		15.2		4.1		33.1		10.5
Depreciation and amortization		1.1		1.1		2.1		2.2
Interest expense		—		0.1		—		0.1
Income tax expense		6.3		0.8		7.0		2.6
Net earnings		7.6		3.8		25.5		7.4