Discontinued Operations (Tables)

9 Months Ended

Feb. 29, 2024

Discontinued Operations and Disposal Groups [Abstract]

Summary of Financial Results from Discontinued Operations

The following table summarizes the assets and liabilities from discontinued operations at May 31, 2023:

Assets
Current assets:
Cash and cash equivalents	$	32,678
Receivables, less allowances of $2,581		468,024
Inventories:
Raw materials		172,580
Work in process		164,059
Finished products		76,830
Total inventories		413,469
Income taxes receivable		2,517
Prepaid expenses and other current assets		58,656
Assets held for sale		3,381
Total current assets		978,725
Investments in unconsolidated affiliates		114,550
Operating lease assets		75,281
Goodwill		78,642
Other intangible assets, net of accumulated amortization of $38,894		83,375
Other assets		10,984
Property, plant and equipment:
Land		37,577
Buildings and improvements		169,155
Machinery and equipment		860,077
Construction in progress		20,386
Total property, plant and equipment		1,087,195
Less: accumulated depreciation		667,956
Total property, plant and equipment, net		419,239
Total assets	$	1,760,796
Liabilities
Current liabilities:
Accounts payable	$	402,177
Short-term borrowings		2,813
Accrued compensation, contributions to employee benefit plans and related taxes		47,028
Other accrued items		14,094
Current operating lease liabilities		5,926
Total current liabilities		472,038
Other liabilities		41,520
Noncurrent operating lease liabilities		71,656
Deferred income taxes, net		19,093
Total liabilities	$	604,307

The following table summarizes the financial results from the discontinued operations of Worthington Steel for the periods presented. There were no discontinued operations for the three months ended February 29, 2024.

	Three Months Ended					Nine Months Ended
	February 29,		February 28,			February 29,			February 28,
	2024		2023			2024			2023
Net sales	$	-	$	757,007		$	1,670,027		$	2,637,834
Cost of goods sold		-		692,171			1,481,731			2,448,319
Gross profit		-		64,836			188,296			189,515
Selling, general and administrative expense		-		34,698			74,908			106,110
Impairment of long-lived assets		-		-			1,401			312
Restructuring and other expense (income)		-		1			-			(4,204	)
Separation costs		-		4,042			18,521			12,021
Operating income		-		26,095			93,466			75,276
Other income (expense):
Miscellaneous income, net		-		1,110			1,016			2,146
Interest expense, net		-		(1,849	)		(3,706	)		(6,557	)
Equity in net income of unconsolidated affiliate		-		(185	)		12,735			3,491
Earnings before income taxes		-		25,171			103,511			74,356
Income tax expense		-		4,664			20,405			14,974
Net earnings		-		20,507			83,106			59,382
Net earnings attributable to noncontrolling interest		-		3,933			7,460			8,382
Net earnings attributable to controlling interest	$	-	$	16,574		$	75,646		$	51,000

The following table summarizes significant non-cash operating items and capital expenditures of discontinued operations included in the consolidated statements of cash flows for the periods presented. There were no discontinued operations for the three months ended February 29, 2024.

	Three Months Ended					Nine Months Ended
	February 29,		February 28,			February 29,			February 28,
	2024		2023			2024			2023
Significant non-cash operating items:
Depreciation and amortization	$	-	$	16,260		$	32,043		$	50,306
Impairment of long-lived assets		-		-			1,401			312
Equity in income of unconsolidated affiliate		-		10,185			(12,734	)		6,509
Net loss (gain) on sale of assets		-		46			(412	)		(3,778	)
Stock-based compensation		-		1,211			3,472			3,340
Significant investing activities:
Investment in property, plant and equipment		-		(10,809	)		(33,457	)		(36,450	)
Acquisitions, net of cash acquired		-		-			(21,013	)		-
Significant financing activities:
Net proceeds from short-term borrowings		-		-			172,187			-