[1]

During the fourth quarter of fiscal 2019, we determined our 10% ownership interest in our Nisshin joint venture was other than temporarily impaired due to current and projected operating losses. As a result, the investment was written down to its estimated fair value of $3,700,000, resulting in an impairment charge of $4,017,000

[2]

During the first quarter of fiscal 2019, changes in facts and circumstances related to the planned sale of our cryogenics business in Turkey, Worthington Aritas, resulted in our lowering the estimate of fair value less cost to sell to $7,000,000 generating an impairment charge of $2,381,000.

[3]

During the fourth quarter of fiscal 2018, management committed to a plan to sell the Company’s cryogenics business in Turkey, Worthington Aritas, and certain underperforming oil & gas equipment assets within Pressure Cylinders. In accordance with the applicable accounting guidance, the net assets were recorded at the lower of net book value or fair value less costs to sell. The book value of Worthington Aritas exceeded its then estimated fair market value of $9,000,000, resulting in an impairment charge of $42,422,000. Worthington Aritas was sold in July 2019; refer to “Note V – Subsequent Events” for additional information regarding the sale. The book value of the oil & gas equipment asset group also exceeded its estimated fair market value of $21,000,000, resulting in an impairment charge of $10,497,000. The oil & gas equipment assets were sold July 31, 2018

[4]

During the fourth quarter of fiscal 2019, in connection with the ongoing closure of the CNG fuel system facility in Salt Lake City, Utah, long-lived assets consisting primarily of technology-related intangible assets and fixed assets were written down to their estimated fair value of $238,000 resulting in an impairment charge of $2,167,000. During the fourth quarter of fiscal 2019, certain long-lived assets at our consolidated joint venture, WSP, were written down to their estimated fair value of $1,000,000