Investment in Unconsolidated Affiliate

9 Months Ended

Feb. 29, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Affiliate

Note C – Investment in Unconsolidated Affiliate

The Company owns a noncontrolling interest (50%) in one unconsolidated joint venture, Serviacero Worthington. The Company accounts for its 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.

The Company did not receive any distributions from Serviacero Worthington during the nine months ended February 29, 2024. The Company received distributions from Serviacero Worthington totaling $10.0 million during the nine months ended February 28, 2023.

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

	February 29,		May 31,
(In millions)	2024		2023
Cash and cash equivalents	$	10.9	$	12.2
Other current assets		259.3		238.2
Noncurrent assets		58.1		58.9
Total assets	$	328.3	$	309.3
Current liabilities		63.5		70.8
Other noncurrent liabilities		5.3		5.4
Equity		259.5		233.1
Total liabilities and equity	$	328.3	$	309.3

	Three Months Ended					Nine Months Ended
	February 29,		February 28,			February 29,		February 28,
(In millions)	2024		2023			2024		2023
Net sales	$	137.3	$	114.9		$	452.6	$	434.9
Gross margin		10.8		(4.3	)		50.7		11.7
Operating income (loss)		7.4		(7.2	)		40.5		3.3
Depreciation and amortization		1.1		1.1			3.2		3.3
Interest expense		—		0.2			—		0.3
Income tax expense (benefit)		0.3		(4.6	)		7.3		(2.0	)
Net earnings (loss)		5.8		(0.4	)		31.3		7.0