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Operating Segments
 12 Months Ended
Feb. 29, 2024
Segment Reporting [Abstract]  
Operating Segments
18. Operating Segments
Segment Information
Our Chief Executive Officer, who is the chief operating decision maker ("CODM"), reviews financial information presented on an operating segment basis for purposes of making operating decisions and assessing financial performance. Sales and operating income are the primary measures used by the CODM to evaluate segment operating performance and to allocate resources to the AZZ Metal Coatings and the AZZ Precoat Metals segments, and net income is the primary measure used by the CODM to evaluate performance and allocate resources to the AZZ Infrastructure Solutions segment. Expenses related to certain centralized administration or executive functions that are not specifically related to an operating segment are included in Corporate. The AVAIL JV operating results for the period prior to deconsolidation are included within discontinued operations, except for AZZ Crowley Tubing, which was retained and merged into the AZZ Metal Coatings segment. See Note 9 for the results of operations related to the AZZ Infrastructure Solutions segment that is reported as discontinued operations.
A summary of each of the Company's operating segments is as follows:
AZZ Metal Coatings — provides hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication industry and other industries through facilities located throughout the United States and Canada. Hot-dip galvanizing is a metallurgical manufacturing process in which molten zinc reacts with steel. The zinc alloying provides corrosion protection and extends the lifecycle of fabricated steel for several decades.
AZZ Precoat Metals — engages in the advanced application of protective and decorative coatings and related value-added manufacturing for steel and aluminum coil primarily serving the construction; appliance; heating, ventilation and air conditioning (HVAC); container; transportation and other end markets.
AZZ Infrastructure Solutions — consists of the equity in earnings of the Company's 40% investment in the AVAIL JV, as well as other expenses directly related to AIS receivables and liabilities that were retained following the divestiture of the AIS business. The AVAIL JV is primarily dedicated to delivering safe and reliable transmission of power from generation sources to end customers, and automated weld overlay solutions for corrosion and erosion mitigation to critical infrastructure in markets worldwide.
Net income from continuing operations by segment for fiscal years 2024, 2023 and 2022 was as follows (in thousands):
Year Ended February 29, 2024
Metal Coatings(1)
Precoat Metals
Infrastructure Solutions(2)
Corporate(3)(4)
Total
Sales$656,189 $881,400 $— $— $1,537,589 
Cost of sales465,147 708,981 — — 1,174,128 
Gross margin191,042 172,419 — — 363,461 
Selling, general and administrative26,314 32,848 6,246 76,453 141,861 
Operating income (loss) from continuing operations164,728 139,571 (6,246)(76,453)221,600 
Interest expense— — — (107,065)(107,065)
Equity in earnings of unconsolidated subsidiaries— — 15,407 — 15,407 
Other income128 — — 33 161 
Income (loss) from continuing operations before income tax$164,856 $139,571 $9,161 (183,485)130,103 
Income tax expense28,496 28,496 
Net income (loss) from continuing operations$(211,981)$101,607 
(1) For fiscal 2024, AZZ Metal Coatings included expenses related to a legal matter of $5.5 million in "Selling, general and administrative".
(2) Infrastructure Solutions segment includes the equity in earnings from our investment in the AVAIL JV, as well as other expenses related to receivables and liabilities that were retained following the sale of the AIS business, including $5.8 million related to a legal settlement.
(3) Interest expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
(4) For fiscal year 2024, amortization expense for acquired intangible assets of $24.0 million is included in Corporate expenses in "Selling, general and administrative" expense as these expenses are not allocated to the segments. Fiscal year 2024 also includes an accrual related to a legal settlement of $5.8 million for the settlement of a litigation matter that was acquired as part of the Precoat Acquisition and relates to the business activities that were discontinued prior to our acquisition.
Year Ended February 28, 2023
Metal Coatings(1)
Precoat Metals(2)
Infrastructure Solutions(3)
Corporate(4)
Total
Sales$636,982 $686,667 $— $— $1,323,649 
Cost of sales462,473 565,233 — — 1,027,706 
Gross margin174,509 121,434 — — 295,943 
Selling, general and administrative18,556 41,925 — 61,824 122,305 
Operating income (loss) from continuing operations155,953 79,509 — (61,824)173,638 
Interest expense— — — (88,800)(88,800)
Equity in earnings of unconsolidated subsidiaries— — 2,597 — 2,597 
Other income101 765 — 374 1,240 
Income (loss) from continuing operations before income tax$156,054 $80,274 $2,597 (150,250)88,675 
Income tax expense22,336 22,336 
Net income (loss) from continuing operations$(172,586)$66,339 
(1) For fiscal year 2023, amortization expense for acquired intangible assets of $7.1 million and $15.5 million are included in AZZ Metal Coatings
    expenses in "Cost of sales" and in AZZ Precoat Metals in "Selling, general and administrative" expense, respectively.
(2) For the fiscal year 2023, AZZ Precoat Metals segment includes results from May 13, 2022 - February 28, 2023.
(3) Infrastructure Solutions segment includes the equity in earnings from our investment in the AVAIL JV.
(4) Interest expense and Income tax expense are included in the Corporate segment as these items are not allocated to the segments.
Year Ended February 28, 2022
Metal Coatings(1)
Precoat MetalsInfrastructure SolutionsCorporateTotal
Sales$525,598 $— $— $— $525,598 
Cost of sales379,445 — — — 379,445 
Gross margin146,153 — — — 146,153 
Selling, general and administrative17,395 — — 49,539 66,934 
Operating income (loss) from continuing operations128,758 — — (49,539)79,219 
Interest expense— — — (6,363)(6,363)
Other income115 — — 60 175 
Income (loss) from continuing operations before income tax$128,873 $— $— (55,842)73,031 
Income tax expense23,214 23,214 
Net income (loss) from continuing operations$(79,056)$49,817 
(1) For fiscal year 2022, amortization expense for acquired intangible assets of $6.7 million is included in AZZ Metal Coatings
    expenses in "Cost of sales."
Depreciation and amortization expense by segment for fiscal years 2024, 2023 and 2022 were as follows (in thousands):
Year Ended February 29/28,
202420232022
Depreciation and amortization:
Metal Coatings$26,353 $32,955 $30,453 
Precoat Metals27,941 40,199 — 
Corporate25,129 1,436 1,628 
Total$79,423 $74,590 $32,081 

Expenditures for acquisitions, net of cash, and property, plant and equipment by segment for fiscal years 2024, 2023 and 2022 were as follows (in thousands):
Year Ended February 29/28,
202420232022
Expenditures for acquisitions, net of cash, and property, plant and equipment:
Metal Coatings$25,484 $23,639 $82,736 
Precoat Metals67,809 1,315,414 — 
Corporate1,826 797 2,073 
Total$95,119 $1,339,850 $84,809 
As of February 29, 2024 and February 28, 2023, total assets by segment was as follows (in thousands):
As of February 29/28,
20242023
Assets:
Metal Coatings$553,505 $588,337 
Precoat Metals1,500,122 1,488,810 
Infrastructure Solutions - Investment in Joint Venture98,169 84,760 
Corporate43,709 59,572 
Total assets$2,195,505 $2,221,479 
Financial Information About Geographical Areas
Financial information about geographical areas for the periods presented was as follows for fiscal years 2024, 2023 and 2022 (in thousands). The geographic area is based on the location of the operating facility and no customer accounted for 10 percent or more of consolidated sales.
Year Ended February 29/28,
202420232022
Sales:
United States$1,498,397 $1,279,890 $494,012 
Canada39,192 43,759 31,586 
Total$1,537,589 $1,323,649 $525,598 

 
As of February 29/28,
20242023
Property, plant and equipment, net:
United States$522,693 $478,722 
Canada18,959 19,781 
Total$541,652 $498,503