Investments in affiliated companies that we do not control, either through majority ownership or otherwise, are accounted for using the equity method. These include ArtiFlex Manufacturing, LLC (“ArtiFlex”) (50%), Clarkwestern Dietrich Building Systems LLC (“ClarkDietrich”) (25%), Samuel Steel Pickling Company (31.25%), Serviacero Planos, S. de R. L. de C.V. (“Serviacero Worthington”) (50%), Worthington Armstrong Venture (“WAVE”) (50%), and Zhejiang Nisshin Worthington Precision Specialty Steel Co., Ltd. (10%).

We received distributions from unconsolidated affiliates totaling $110,459,000 during the six months ended November 30, 2018, including $60,000,000 of one-time special distributions from WAVE, comprised of $35,000,000 related to the pending sale of the international operations and $25,000,000 in connection with a financing transaction. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in an amount recorded within other liabilities on our consolidated balance sheets of $122,806,000 at November 30, 2018. In accordance with the applicable accounting guidance, we reclassified the negative investment balance to the liabilities section of our consolidated balance sheet. We will continue to record our equity in the net income of WAVE as a debit to the investment account, and if the investment balance becomes positive, it will again be shown as an asset on our consolidated balance sheet. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will recognize any negative investment balance classified as a liability as income immediately.

We use the “cumulative earnings” approach for determining cash flow presentation of distributions from our unconsolidated joint ventures. Distributions received are included in our consolidated statements of cash flows as operating activities, unless the cumulative distributions received, less distributions received in prior periods that were determined to be returns of investment, exceed our portion of the cumulative equity in the net earnings of the joint venture, in which case the excess distributions are deemed to be returns of the investment and are classified as investing activities in our consolidated statements of cash flows. We received excess distributions from WAVE of $55,201,000 during the six months ended November 30, 2018.

The following tables summarize combined financial information for our unconsolidated affiliates as of the dates, and for the periods presented:

	November 30,		May 31,
(in thousands)	2018		2018
Cash	$	35,079	$	52,812
Other current assets		625,214		590,578
Current assets for discontinued operations		35,390		37,640
Noncurrent assets		364,305		358,927
Total assets	$	1,059,988	$	1,039,957

Current liabilities		256,608		166,493
Current liabilities for discontinued operations		8,884		7,142
Short-term borrowings		38,366		26,599
Current maturities of long-term debt		8,173		23,243
Long-term debt		323,598		259,588
Other noncurrent liabilities		17,452		17,536
Equity		406,907		539,356
Total liabilities and equity	$	1,059,988	$	1,039,957

	Three Months Ended November 30,					Six Months Ended November 30,
(in thousands)	2018		2017			2018		2017
Net sales	$	480,716	$	412,617		$	979,261	$	855,241
Gross margin		75,515		71,122			179,327		157,357
Operating income		44,592		34,604			116,968		91,767
Depreciation and amortization		6,581		5,935			13,058		13,128
Interest expense		3,382		2,461			6,307		4,953
Income tax expense		3,568		1,816			8,093		3,164
Net earnings from continuing operations		36,523		31,893			101,417		82,937
Net earnings (loss) from discontinued operations		2,028		(1,703	)		3,712		(273	)
Net earnings		38,551		30,190			105,129		82,664

The amounts presented within the discontinued operations captions in the tables above reflect the international operations of our WAVE joint venture, which are being sold as part of a broader transaction between the joint venture partner, Armstrong World Industries, Inc. (“AWI”), and Knauf Group, a family-owned manufacturer of building materials headquartered in Germany. WAVE’s portion of the total sales proceeds is expected to be approximately $90,000,000. The transaction is subject to regulatory approvals and other customary closing conditions. During the first quarter of fiscal 2019, the parties agreed to extend the date by which certain competition clearance conditions were to be satisfied per the original purchase agreement. In exchange, Knauf Group irrevocably agreed to fund the purchase price which was received by AWI in two distributions, the first on August 1, 2018, and the balance on September 15, 2018. In September 2018, we received a cash distribution of $35,000,000 from WAVE related to the pending sale of the international operations. Despite receiving the sales proceeds, there has been no change in control of the international operations, therefore, the gain or loss to be realized from this transaction has not been reflected in WAVE’s statement of earnings. We expect to receive total proceeds of approximately $45,000,000 in connection with the sale transaction.