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Segments | 9 Months Ended
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Nov. 30, 2022
Segment Reporting [Abstract] |
Segments | Segment Information The Company has three distinct operating segments: the AZZ Metal Coatings segment, the AZZ Precoat Metals segment and the AZZ Infrastructure Solutions segment. The AIS Joint Venture agreement discussed in Note 3 resulted in our AZZ Infrastructure Solutions segment being classified within discontinued operations, with the exception of AZZ Crowley Tubing which was retained by the Company and merged into the AZZ Metal Coatings segment. See Note 3 for the results of operations related to the AZZ Infrastructure Solutions segment. For the three and nine months ended November 30, 2022, the Company's investment in the AIS JV is a reportable operating segment. The AZZ Metal Coatings segment provides hot-dip galvanizing, spin galvanizing, powder coating, anodizing and plating, and other metal coating applications to the steel fabrication and other industries through facilities located throughout the United States and Canada. Hot-dip galvanizing is a metallurgical process in which molten zinc reacts to steel. The zinc alloying provides corrosion protection and extends the life-cycle of fabricated steel for several decades. The Tubing business provides small-diameter offset pipe utilized primarily in the energy sector. The AZZ Precoat Metals segment provides aesthetic and corrosion protective coatings and related value-added services for steel and aluminum coil, primarily serving the construction; appliance; heating, ventilation, and air conditioning (HVAC); container; transportation and other end markets in the United States. The AZZ Infrastructure Solutions segment consists of the Company's investment in and equity in earnings of the AIS JV, which provides specialized products and services designed to support primarily industrial and electrical applications. The product offerings include custom switchgear, electrical enclosures, medium and high voltage bus ducts, explosion proof and hazardous duty lighting. The AIS JV also focuses on life-cycle extension for the power generation, refining and industrial infrastructure, through providing automated weld overlay solutions for corrosion and erosion mitigation. Sales and operating income from continuing operations by segment for each period were as follows (in thousands):
|  | Three Months Ended November 30, |  | Nine Months Ended November 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Sales: |  |  |  |  |  |  |  |
AZZ Metal Coatings |  | $ | 158,274 |  |  | $ | 135,083 |  |  | $ | 487,567 |  |  | $ | 395,732 |
AZZ Precoat Metals |  | 215,027 |  |  | — |  |  | 499,578 |  |  | — |
Total sales |  | $ | 373,301 |  |  | $ | 135,083 |  |  | $ | 987,145 |  |  | $ | 395,732 |
Operating income: |  |  |  |  |  |  |  |
AZZ Metal Coatings |  | $ | 33,546 |  |  | $ | 33,111 |  |  | $ | 123,812 |  |  | $ | 97,072 |
AZZ Precoat Metals |  | 21,053 |  |  | — |  |  | 63,914 |  |  | — |
Corporate(1) |  | (9,206) |  |  | (11,821) |  |  | (50,283) |  |  | (34,395) |
Total operating income from continuing operations |  | $ | 45,393 |  |  | $ | 21,290 |  |  | $ | 137,443 |  |  | $ | 62,677 |
(1) Includes expenditures of $15.2 million for the nine months ended November 30, 2022, directly related to the Precoat Acquisition and the divestiture of the AZZ Infrastructure Solutions operating segment. There were no such expenditures for the three months ended November 30, 2022.
Asset balances by operating segment for each period were as follows (in thousands):
|  | November 30, 2022 |  | February 28, 2022
Total assets: |  |  |  |
AZZ Metal Coatings |  | $ | 579,830 |  |  | $ | 578,885 |
AZZ Precoat Metals |  | 1,484,074 |  |  | — |
AZZ Infrastructure Solutions - Investment in Joint Venture |  | 82,420 |  |  | — |
Corporate |  | 53,150 |  |  | 46,266 |
Discontinued operations: |  |  |  |
AZZ Infrastructure Solutions |  | — |  |  | 507,876 |
Total |  | $ | 2,199,474 |  |  | $ | 1,133,027 |
Financial Information About Geographical Areas The following table presents sales by geographic region for each period (in thousands):
|  | Three Months Ended November 30, |  | Nine Months Ended November 30,
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Sales: |  |  |  |  |  |  |  |
United States |  | $ | 363,660 |  |  | $ | 127,462 |  |  | $ | 951,855 |  |  | $ | 370,910 |
International |  | 9,641 |  |  | 7,621 |  |  | 35,290 |  |  | 24,822 |
Total |  | $ | 373,301 |  |  | $ | 135,083 |  |  | $ | 987,145 |  |  | $ | 395,732 |
The following table presents fixed assets by geographic region for each period (in thousands):
|  | November 30, 2022 |  | February 28, 2022
Property, plant and equipment, net: |  |  |  |
United States |  | $ | 471,279 |  |  | $ | 167,634 |
Canada |  | 20,088 |  |  | 25,724 |
Total |  | $ | 491,367 |  |  | $ | 193,358 |
Investments in Unconsolidated Entity On September 30, 2022, the Company entered into a joint venture with Fernweh Group LLC ("Fernweh"), whereby AZZ contributed its AZZ Infrastructure Solutions segment (“AIS”) to AIS Investment Holdings LLC (the “AIS JV”), and sold a 60% interest in the AIS JV to Fernweh. The Company's investment in the AIS JV was $82.4 million at November 30, 2022. The Company recognized equity in earnings of unconsolidated entities of $1.0 million for the three and nine months ended November 30, 2022. See Note 7 for further discussion of the Company's investment in the AIS JV.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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