Investments in Unconsolidated Affiliates (Tables)

12 Months Ended

May 31, 2016

Unconsolidated Affiliates

Financial Information

The following table presents combined information of the financial position of our unconsolidated affiliates accounted for using the equity method as of May 31, 2016 and 2015:

(in thousands)	2016		2015
Cash	$	112,122	$	101,011
Receivable from member (1)		-		11,092
Other current assets		446,796		491,507
Noncurrent assets		352,370		318,939
Total assets	$	911,288	$	922,549
Current liabilities	$	112,491	$	184,028
Short-term borrowings		11,398		-
Current maturities of long-term debt		3,297		4,489
Long-term debt		266,942		272,861
Other noncurrent liabilities		21,034		20,471
Equity		496,126		440,700
Total liabilities and equity	$	911,288	$	922,549

(1) Represents cash owed from a third-party joint venture partner as a result of centralized cash management. The decrease in fiscal 2016 is due to the consolidation of the WSP joint venture.

The following table presents financial results of our four largest unconsolidated affiliates for fiscal 2016, fiscal 2015 and fiscal 2014. All other unconsolidated affiliates are combined and presented in the Other category.

(in thousands)	2016			2015			2014
Net sales
WAVE	$	393,718		$	382,451		$	382,821
ClarkDietrich		615,609			576,171			549,267
Serviacero		260,337			277,385			249,661
ArtiFlex		219,510			183,029			170,531
Other		74,214			91,144			140,522
Total net sales	$	1,563,388		$	1,510,180		$	1,492,802
Gross margin
WAVE	$	207,143		$	181,102		$	177,935
ClarkDietrich		95,427			65,530			73,803
Serviacero		15,328			17,028			22,268
ArtiFlex		30,181			24,145			16,839
Other		13,142			14,201			21,775
Total gross margin	$	361,221		$	302,006		$	312,620
Operating income
WAVE	$	172,721		$	147,603		$	144,167
ClarkDietrich		33,897			10,436			27,918
Serviacero		11,110			14,036			19,413
ArtiFlex		22,612			16,476			9,785
Other		6,910			4,980			12,649
Total operating income	$	247,250		$	193,531		$	213,932
Depreciation and amortization
WAVE	$	4,120		$	4,150		$	4,916
ClarkDietrich		14,289			16,638			16,523
Serviacero		3,508			3,462			3,533
ArtiFlex		6,105			7,258			7,129
Other		3,081			4,154			4,857
Total depreciation and amortization	$	31,103		$	35,662		$	36,958
Interest expense (income)
WAVE	$	6,635		$	6,412		$	6,464
ClarkDietrich		80			138			103
Serviacero		114			201			474
ArtiFlex		1,650			1,973			2,183
Other		(10	)		(29	)		(2	)
Total interest expense	$	8,469		$	8,695		$	9,222
Income tax expense
WAVE	$	2,449		$	2,539		$	3,606
ClarkDietrich		-			-			-
Serviacero		6,249			7,844			5,689
ArtiFlex		289			105			82
Other		53			-			477
Total income tax expense	$	9,040		$	10,488		$	9,854
Net earnings
WAVE	$	164,132		$	138,670		$	134,019
ClarkDietrich		58,539			11,799			27,837
Serviacero		6,246			8,429			14,530
ArtiFlex		20,673			14,398			7,539
Other		8,516			4,806			12,206
Total net earnings	$	258,106		$	178,102		$	196,131