Investments in Unconsolidated Affiliates (Tables)

12 Months Ended

May 31, 2017

Unconsolidated Affiliates

Financial Information

The following table presents combined information regarding the financial position of our unconsolidated affiliates accounted for using the equity method as of May 31, 2017 and 2016:

(in thousands)	2017		2016
Cash	$	55,541	$	112,122
Other current assets		559,021		446,796
Noncurrent assets		361,106		352,370
Total assets	$	975,668	$	911,288
Current liabilities	$	156,947	$	112,491
Short-term borrowings		8,172		11,398
Current maturities of long-term debt		5,827		3,297
Long-term debt		268,711		266,942
Other noncurrent liabilities		21,380		21,034
Equity		514,631		496,126
Total liabilities and equity	$	975,668	$	911,288

The following table presents summarized financial information for our four largest unconsolidated affiliates as of, and for the fiscal years ended May 31. All other unconsolidated affiliates are combined and presented in the Other category, including WSP through March 1, 2016. On March 1, 2016, the Company obtained effective control over the operations of WSP and, as a result, began consolidating its financial results within Steel Processing. For additional information, refer to “Note O – Acquisitions.”

(in thousands)	2017			2016			2015
Net sales
WAVE	$	400,987		$	393,718		$	382,451
ClarkDietrich		711,735			615,609			576,171
Serviacero		275,315			260,337			277,385
ArtiFlex		208,922			219,510			183,029
Other		17,784			74,214			91,144
Total net sales	$	1,614,743		$	1,563,388		$	1,510,180
Gross margin
WAVE	$	207,035		$	207,143		$	181,102
ClarkDietrich		128,098			95,427			65,530
Serviacero		37,080			15,328			17,028
ArtiFlex		22,829			30,181			24,145
Other		(4,313	)		13,142			14,201
Total gross margin	$	390,729		$	361,221		$	302,006
Operating income (loss)
WAVE	$	167,157		$	172,721		$	147,603
ClarkDietrich		68,696			33,897			10,436
Serviacero		29,975			11,110			14,036
ArtiFlex		15,519			22,612			16,476
Other		(8,407	)		6,910			4,980
Total operating income	$	272,940		$	247,250		$	193,531
Depreciation and amortization
WAVE	$	4,871		$	4,120		$	4,150
ClarkDietrich		12,718			14,289			16,638
Serviacero		3,862			3,508			3,462
ArtiFlex		5,850			6,105			7,258
Other		698			3,081			4,154
Total depreciation and amortization	$	27,999		$	31,103		$	35,662
Interest expense (income)
WAVE	$	7,183		$	6,635		$	6,412
ClarkDietrich		20			80			138
Serviacero		89			114			201
ArtiFlex		1,429			1,650			1,973
Other		—			(10	)		(29	)
Total interest expense	$	8,721		$	8,469		$	8,695
Income tax expense (benefit)
WAVE	$	5,626		$	2,449		$	2,539
ClarkDietrich		—			—			—
Serviacero		11,740			6,249			7,844
ArtiFlex		(2	)		289			105
Other		(2	)		53			—
Total income tax expense	$	17,362		$	9,040		$	10,488
Net earnings (loss)
WAVE	$	154,866		$	164,132		$	138,670
ClarkDietrich		69,122			58,539			11,799
Serviacero		18,140			6,246			8,429
ArtiFlex		14,092			20,673			14,398
Other		(5,472	)		8,516			4,806
Total net earnings	$	250,748		$	258,106		$	178,102