XML 40 R13.htm IDEA: XBRL DOCUMENT
v3.23.2

Goodwill and Other Long-Lived Assets | 12 Months Ended
--- | ---
May 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Long-Lived Assets | Note E – Goodwill and Other Long-Lived Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill during fiscal 2023 and fiscal 2022 by reportable operating segment:
(In thousands) |  | Steel Processing |  |  | Consumer Products (1) |  |  | Building Products (1) |  |  | Sustainable Energy Solutions (1) |  |  | Total |
Balance at May 31, 2021 |  | $ | 20,218 |  |  | $ | 240,941 |  |  | $ | 72,273 |  |  | $ | 17,624 |  |  | $ | 351,056 |
Acquisitions and purchase accounting adjustments (2) |  |  | 60,115 |  |  |  | 432 |  |  |  | - |  |  |  | - |  |  |  | 60,547 |
Translation adjustments |  |  | (300 | ) |  |  | - |  |  |  | (6,865 | ) |  |  | (2,969 | ) |  |  | (10,134 | )
Balance at May 31, 2022 |  |  | 80,033 |  |  |  | 241,373 |  |  |  | 65,408 |  |  |  | 14,655 |  |  |  | 401,469 |
Acquisitions and purchase accounting adjustments (2) |  |  | (801 | ) |  |  | 15,947 |  |  |  | - |  |  |  | - |  |  |  | 15,146 |
Translation adjustments |  |  | (590 | ) |  |  | - |  |  |  | (195 | ) |  |  | (1,010 | ) |  |  | (1,795 | )
Balance at May 31, 2023 |  | $ | 78,642 |  |  | $ | 257,320 |  |  | $ | 65,213 |  |  | $ | 13,645 |  |  | $ | 414,820 |
(1) In connection with the realignment of the our legacy Pressure Cylinders business, as discussed further in “Note P - Segment Data”, the goodwill of our legacy Pressure Cylinders business unit was allocated to the new reporting units on a relative fair value basis. (2) For additional information regarding our acquisitions, refer to “Note Q - Acquisitions.” There was no goodwill associated with the Other segment at May 31, 2023 or May 31, 2022. Accumulated goodwill impairment charges within the Other segment totaled $198,290 as of each of May 31, 2023 and May 31, 2022. Other Intangible Assets Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives, which range from 10 to 20 years. The following table summarizes other intangible assets by class as of the end of the prior two fiscal years:
|  | 2023 |  |  | 2022 |
|  |  |  |  | Accumulated |  |  |  |  |  | Accumulated |
(In thousands) |  | Cost |  |  | Amortization |  |  | Cost |  |  | Amortization |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  | $ | 113,401 |  |  | $ | - |  |  | $ | 99,901 |  |  | $ | - |
In-process research & development |  |  | 1,300 |  |  |  | - |  |  |  | 1,300 |  |  |  | - |
Total indefinite-lived intangible assets |  |  | 114,701 |  |  |  | - |  |  |  | 101,201 |  |  |  | - |
Definite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 271,831 |  |  | $ | 98,295 |  |  | $ | 258,647 |  |  | $ | 83,776 |
Non-compete agreements |  |  | 4,668 |  |  |  | 4,385 |  |  |  | 4,388 |  |  |  | 4,195 |
Technology/know-how |  |  | 30,418 |  |  |  | 7,669 |  |  |  | 23,924 |  |  |  | 5,088 |
Other |  |  | 4,810 |  |  |  | 1,853 |  |  |  | 4,830 |  |  |  | 914 |
Total definite-lived intangible assets |  |  | 311,727 |  |  |  | 112,202 |  |  |  | 291,789 |  |  |  | 93,973 |
Total intangible assets |  | $ | 426,428 |  |  | $ | 112,202 |  |  | $ | 392,990 |  |  | $ | 93,973 |
Amortization expense totaled $18,221, $14,937, and $12,257 in fiscal 2023, fiscal 2022 and fiscal 2021, respectively. Amortization expense for each of the next five fiscal years is estimated to be:
(In thousands) |  |  |
2024 |  | $ | 17,937 |
2025 |  | $ | 17,661 |
2026 |  | $ | 17,282 |
2027 |  | $ | 16,756 |
2028 |  | $ | 16,438 |
Impairment of Long-Lived Assets Fiscal 2023 During fiscal 2023, we committed to two separate plans to liquidate certain fixed assets within Steel Processing: (1) idled equipment at the manufacturing facility in Taylor, Michigan; and (2) the net assets of Samuel’s toll processing facility in Cleveland, Ohio. As both asset groups have met the criteria for classification as assets held for sale, net assets in the amount of $2,623 have been presented separately as assets held for sale on our consolidated balance sheet at May 31, 2023. In accordance with the applicable accounting guidance, the net assets were measured at fair market value less costs to sell, resulting in an overall impairment charge of $2,112 within Steel Processing during fiscal 2023. Impairment of long-lived assets in fiscal 2023 also included a non-cash charge of $484 related to certain assets associated with a capital project at our Building Products facility in Jefferson, Ohio, that were deemed to have no alternative future use and were written down to their estimated salvage value. Fiscal 2022 During the third quarter of fiscal 2022, management committed to plans to sell certain production equipment at the Samuel facility in Twinsburg, Ohio. As all of the criteria for classification of assets held for sale were met, the net assets were presented separately as assets held for sale on our consolidated balance sheet at May 31, 2022. In accordance with the applicable accounting guidance, the net assets were written down to the fair value less costs to sell, resulting in an impairment charge of $3,076 in fiscal 2022. These assets were subsequently sold in fiscal 2023. Fiscal 2021 Due to the economic impact of the COVID-19 pandemic and related market softness in the oil & gas equipment manufacturing operations in Tulsa, Oklahoma, we tested the long-lived assets consisting of fixed assets and customer list intangible assets with net book values of $7,375 and $2,374, respectively, for impairment. The fair value of the fixed assets was determined to be $5,934 (using observable Level 2 inputs) resulting in an impairment charge of $1,441. Additionally, the customer list intangible assets were deemed to be fully impaired (using unobservable Level 3 inputs) and written off resulting in an impairment of $2,374. The future undiscounted cash flows of the cryogenics business primarily operated out of the Theodore, Alabama facility did not support its book value. As a result, property, plant and equipment with an aggregate carrying value of $13,526 were written down to their estimated fair value of $9,193 (determined using Level 2 inputs), resulting in an impairment charge of $4,333. Additionally, the customer list intangible assets and technology/know-how intangible assets with an aggregate carrying value of $3,662 were deemed to be fully impaired (using unobservable Level 3 inputs) and written off. These assets were subsequently sold in October 2020 (refer to “Note F – Restructuring and Other (Income) Expense, Net” for additional information). We decided to discontinue our operation of the manufacturing line for alternative fuel cylinders at the Jefferson, Ohio facility. As a result, long-lived assets with a carrying value of $1,823 were written down to their estimated fair market value of $400 (determined using Level 2 inputs), resulting in an impairment charge of $1,423. We recognized a $506 impairment charge related to the Superior Tools business that was acquired as part of Magna Industries, Inc. in fiscal 2019 and subsequently sold.

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration