Segment Operations

6 Months Ended

Nov. 30, 2022

Segment Reporting [Abstract]

Segment Operations

Note O – Segment Operations

The profit measure that the Company’s Chief Operating Decision Maker ("CODM") uses to assess segment performance and allocate resources is adjusted earnings (loss) before interest and taxes (“adjusted EBIT”). EBIT is calculated by adding interest expense and income tax expense to net earnings attributable to controlling interest. Adjusted EBIT excludes impairment and restructuring charges (gains), but may also exclude other items that management believes are not reflective of, and thus should not be included when evaluating the performance of the Company’s ongoing operations, including direct and incremental costs incurred in connection with the planned Separation of the Company’s Steel Processing business. Adjusted EBIT is a non-GAAP financial measure and is used by management to evaluate segment performance, engage in financial and operational planning and determine incentive compensation because we believe that this financial measure provides additional perspective and, in some circumstances is more closely correlated to, the performance of the Company’s ongoing operations.

The following table presents summarized financial information for our reportable operating segments for the periods indicated.

	Three Months Ended November 30, 2022
(in thousands)	Steel Processing			Consumer Products			Building Products		Sustainable Energy Solutions		Other			Consolidated
Net sales	$	841,947		$	153,795		$	141,671	$	38,128	$	-		$	1,175,541
Restructuring and other income, net		(4,282	)		-			-		-		-			(4,282	)
Separation costs		-			-			-		-		9,246			9,246
Miscellaneous income (expense), net		850			(47	)		76		142		384			1,405
Equity in net income (loss) of unconsolidated affiliates		1,906			-			35,107		-		(156	)		36,857
Adjusted EBIT (1)(2)		(17,249	)		13,473			41,224		1,143		(3,291	)		35,300

(1)Excludes the noncontrolling interest portion of the restructuring gains within Steel Processing of $1,850.

(2)Excludes $525 in selling, general and administrative expense in Consumer Products related to incremental expense attributable to the Level5 earnout; excludes $9,246 of Separation costs in Other related to direct and incremental costs incurred in connection with the anticipated Separation, including audit, advisory, and legal costs.

	Three Months Ended November 30, 2021
(in thousands)	Steel Processing			Consumer Products		Building Products		Sustainable Energy Solutions		Other			Consolidated
Net sales	$	937,842		$	140,793	$	121,125	$	33,101	$	-		$	1,232,861
Restructuring and other income, net		(182	)		-		-		-		(1,822	)		(2,004	)
Miscellaneous income, net		17			159		218		82		564			1,040
Equity in net income of unconsolidated affiliates		8,823			-		49,894		-		1,501			60,218
Adjusted EBIT (3)		71,925			17,584		54,718		796		1,893			146,916

(3)Excludes the noncontrolling interest portion of the restructuring gains within Steel Processing of $81.

	Six Months Ended November 30, 2022
(in thousands)	Steel Processing			Consumer Products			Building Products		Sustainable Energy Solutions			Other			Consolidated
Net sales	$	1,880,827		$	342,497		$	291,994	$	68,888		$	-		$	2,584,206
Impairment of long-lived assets		312			-			-		-			-			312
Restructuring and other income, net		(4,205	)		-			-		-			(1,177	)		(5,382	)
Separation costs		-			-			-		-			9,246			9,246
Miscellaneous income (expense), net		1,035			(82	)		299		56			(4,989	)		(3,681	)
Equity in net income (loss) of unconsolidated affiliates		3,676			-			78,973		-			(14,080	)		68,569
Adjusted EBIT (4)(5)		17,663			34,406			93,959		(250	)		1,854			147,632

(4)Excludes a non-cash settlement charge of $4,774 in miscellaneous income (expense), net within Other to accelerate a portion of deferred pension cost as a result of a pension lift-out transaction executed with a third-party insurance company to transfer a portion of the total projected benefit obligation of The Gerstenslager Company Bargaining Unit Employees’ Pension Plan to the third-party insurance company; excludes a loss of $15,759 in equity in net income (loss) of unconsolidated affiliates within Other related to the sale of the Company’s 50% noncontrolling equity investment in ArtiFlex effective August 3, 2022; excludes $1,050 in selling, general and administrative expense in Consumer Products related to incremental compensation expense attributable to the Level5 earnout; and excludes $9,246 of Separation costs in Other related to direct and incremental costs incurred in connection with the anticipated Separation, including audit, advisory, and legal costs.

(5)Excludes the noncontrolling interest portion of the impairment charge and restructuring gains within Steel Processing of $1,734.

	Six Months Ended November 30, 2021
(in thousands)	Steel Processing			Consumer Products		Building Products		Sustainable Energy Solutions			Other			Consolidated
Net sales	$	1,760,652		$	288,576	$	235,868	$	58,583		$	-		$	2,343,679
Restructuring and other income, net		(12,313	)		-		-		(143	)		(1,822	)		(14,278	)
Miscellaneous income, net		47			209		144		22			1,248			1,670
Equity in net income of unconsolidated affiliates		18,172			-		92,887		-			2,075			113,134
Adjusted EBIT (6)		179,617			38,140		103,471		(1,760	)		1,479			320,947

(6)Excludes the noncontrolling interest portion of the restructuring gains within Steel Processing of $6,027.

Total assets for each of our operating segments as of the dates indicated were as follows:

	November 30,		May 31,
(in thousands)	2022		2022
Total assets
Steel Processing	$	1,796,136	$	2,082,522
Consumer Products		627,474		577,026
Building Products		645,566		681,188
Sustainable Energy Solutions		120,978		114,084
Other		200,506		188,203
Total assets	$	3,390,660	$	3,643,023