Investments in Unconsolidated Entity

12 Months Ended

Feb. 29, 2024

Equity Method Investments and Joint Ventures [Abstract]

Investments in Unconsolidated Entity

19. Investment in Unconsolidated Entity

AZZ Infrastructure Solutions (AIS) Joint Venture

We account for our 40% interest in the AVAIL JV under the equity method of accounting and include our equity in earnings as part of the AZZ Infrastructure Solutions segment. We record our equity in earnings in the AVAIL JV on a one-month lag, which totaled $15.4 million in equity in earnings year ended February 29, 2024. As of February 29, 2024, our investment in the AVAIL JV was $98.2 million, which includes an excess of $10.2 million over the underlying value of the net assets of the AVAIL JV. The excess is accounted for as equity method goodwill. As of February 29, 2024, we did not have any related party receivables or payables outstanding. As of February 28, 2023, related party receivables and payables of $8.4 million and $6.3 million are included in "Accounts receivable" and "Other accrued liabilities," respectively, in the consolidated balance sheets.

The following tables presents AVAIL's summarized financial information (in thousands):

Summarized Balance Sheet
	As of
	February 29, 2024(1)
Current assets	$	290,260
Long-term assets	173,575
Total assets	$	463,835
Current liabilities	$	122,762
Long-term liabilities	129,058
Total liabilities	$	251,820
Total partners' capital	212,015
Total liabilities and partners' capital	$	463,835

Summarized Operating Data
	Year Ended
	February 29, 2024(1)
Sales	$	460,109
Gross profit	117,402
Net income	29,351
(1) The Company reports our equity in earnings on a one-month lag basis; therefore, amounts in the summarized financials above are as of      and for the twelve months ended January 31, 2024. Amounts in the table above exclude certain adjustments made by the Company to      record equity in earnings of the AVAIL JV under U.S GAAP for public companies, primarily to reverse the amortization of goodwill.