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Segment Operations | 9 Months Ended
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Feb. 28, 2023
Segment Reporting [Abstract] |
Segment Operations | Note O – Segment Operations Our chief operating decision maker (“CODM”), who is our Chief Executive Officer, assesses operating segment performance and allocates resources based on adjusted EBIT. EBIT is calculated by adding interest expense and income tax expense to net earnings attributable to controlling interest. Adjusted EBIT excludes impairment and restructuring expense (income), but may also exclude other items, as described below, that management believes are not reflective of, and thus should not be included when evaluating the performance of our ongoing operations. Adjusted EBIT is a non-GAAP financial measure and is used by management to evaluate operating segment performance, engage in financial and operational planning and determine incentive compensation. Impairment charges are excluded from adjusted EBIT because they do not occur in the ordinary course of our ongoing business operations, are inherently unpredictable in timing and amount, and are non-cash, so their exclusion facilitates the comparison of historical, current and forecasted financial results. Restructuring activities consist of established programs that are not part of our ongoing operations, such as divestitures, closing or consolidating facilities, employee severance (including rationalizing headcount or other significant changes in personnel), and realignment of existing operations (including changes to management structure in response to underlying performance and/or changing market conditions). The following table presents summarized financial information for our operating segments for the periods indicated.
| Three Months Ended February 28, 2023 |
(in thousands) | Steel Processing |  |  | Consumer Products |  |  | Building Products |  | Sustainable Energy Solutions |  |  | Other |  |  | Consolidated |
Net sales | $ | 757,007 |  |  | $ | 162,647 |  |  | $ | 151,876 |  | $ | 31,792 |  |  | $ | - |  |  | $ | 1,103,322 |
Impairment of long-lived assets |  | - |  |  |  | - |  |  |  | 484 |  |  | - |  |  |  | - |  |  |  | 484 |
Restructuring and other expense, net |  | 1 |  |  |  | 206 |  |  |  | 617 |  |  | - |  |  |  | - |  |  |  | 824 |
Separation costs |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | 6,347 |  |  |  | 6,347 |
Miscellaneous income (expense), net |  | 1,111 |  |  |  | (21 | ) |  |  | 130 |  |  | (37 | ) |  |  | 144 |  |  |  | 1,327 |
Equity income |  | (185 | ) |  |  | - |  |  |  | 37,836 |  |  | - |  |  |  | (725 | ) |  |  | 36,926 |
Adjusted EBIT (1) |  | 7,788 |  |  |  | 17,943 |  |  |  | 51,472 |  |  | (1,440 | ) |  |  | (4,443 | ) |  |  | 71,320 |
(1) Excludes the following: • A pre-tax benefit of $1,050,000 within selling, general, and administrative expense (“SG&A”) to reverse the compensation expense accrued during the first six months of fiscal 2023 for the anticipated payout under the first annual earnout period ending December 31, 2023 associated with the Level5 acquisition (see the discussion of this acquisition in “Note P – Acquisitions”); • Separation costs of $6,347,000 within Other related to direct and incremental costs incurred in connection with the anticipated Separation, including audit, advisory, and legal costs; and • A loss of $300,000 for the settlement of final transaction costs within Other related to the sale of our 50% noncontrolling equity investment in ArtiFlex.
| Three Months Ended February 28, 2022 |
(in thousands) | Steel Processing |  |  | Consumer Products |  |  | Building Products |  | Sustainable Energy Solutions |  |  | Other |  |  | Consolidated |
Net sales | $ | 1,052,562 |  |  | $ | 161,692 |  |  | $ | 132,944 |  | $ | 31,037 |  |  | $ | - |  |  | $ | 1,378,235 |
Impairment of long-lived assets |  | 3,076 |  |  |  | - |  |  |  | - |  |  | - |  |  |  | - |  |  |  | 3,076 |
Restructuring and other expense (income), net |  | 114 |  |  |  | - |  |  |  | (35 | ) |  | - |  |  |  | (583 | ) |  |  | (504 | )
Miscellaneous income, net |  | (12 | ) |  |  | (39 | ) |  |  | (3 | ) |  | (38 | ) |  |  | 485 |  |  |  | 393 |
Equity income |  | 4,692 |  |  |  | - |  |  |  | 39,978 |  |  | - |  |  |  | 2,796 |  |  |  | 47,466 |
Adjusted EBIT (2) |  | 7,116 |  |  |  | 26,674 |  |  |  | 49,570 |  |  | (2,801 | ) |  |  | 4,039 |  |  |  | 84,598 |
(2) Excludes the noncontrolling interest portion of the impairment of long-lived assets and restructuring expense within Steel Processing of $1,139,000.
| Nine Months Ended February 28, 2023 |
(in thousands) | Steel Processing |  |  | Consumer Products |  |  | Building Products |  | Sustainable Energy Solutions |  |  | Other |  |  | Consolidated |
Net sales | $ | 2,637,834 |  |  | $ | 505,145 |  |  | $ | 443,870 |  | $ | 100,679 |  |  | $ | - |  |  | $ | 3,687,528 |
Impairment of long-lived assets |  | 312 |  |  |  | - |  |  |  | 484 |  |  | - |  |  |  | - |  |  |  | 796 |
Restructuring and other expense (income), net |  | (4,204 | ) |  |  | 206 |  |  |  | 617 |  |  | - |  |  |  | (1,177 | ) |  |  | (4,558 | )
Separation costs |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | 15,593 |  |  |  | 15,593 |
Miscellaneous income (expense), net |  | 2,145 |  |  |  | (102 | ) |  |  | 428 |  |  | 19 |  |  |  | (4,844 | ) |  |  | (2,354 | )
Equity income |  | 3,491 |  |  |  | - |  |  |  | 116,809 |  |  | - |  |  |  | (14,805 | ) |  |  | 105,495 |
Adjusted EBIT (3)(4) |  | 25,450 |  |  |  | 52,350 |  |  |  | 145,431 |  |  | (1,690 | ) |  |  | (2,588 | ) |  |  | 218,953 |
(3) Excludes the following: • A non-cash settlement charge of $4,774,000 in miscellaneous income (expense), net within Other related to the pension lift-out transaction associated with The Gerstenslager Company Bargaining Unit Employees’ Pension Plan and described further in “Note K – Changes in Equity;” • A loss of $16,059,000 for the settlement of final transaction costs within Other related to the sale of our 50% noncontrolling equity investment in ArtiFlex effective August 3, 2022; and • Separation costs of $15,593,000 within Other related to direct and incremental costs incurred in connection with the anticipated Separation, including audit, advisory, and legal costs. (4) Excludes the noncontrolling interest portion of the impairment of long-lived assets and restructuring income within Steel Processing of $1,734,000.
| Nine Months Ended February 28, 2022 |
(in thousands) | Steel Processing |  |  | Consumer Products |  |  | Building Products |  | Sustainable Energy Solutions |  |  | Other |  |  | Consolidated |
Net sales | $ | 2,813,214 |  |  | $ | 450,268 |  |  | $ | 368,813 |  | $ | 89,619 |  |  | $ | - |  |  | $ | 3,721,914 |
Impairment of long-lived assets |  | 3,076 |  |  |  | - |  |  |  | - |  |  | - |  |  |  | - |  |  |  | 3,076 |
Restructuring and other expense (income), net |  | (12,199 | ) |  |  | - |  |  |  | (35 | ) |  | (143 | ) |  |  | (2,405 | ) |  |  | (14,782 | )
Miscellaneous income, net |  | 35 |  |  |  | 169 |  |  |  | 141 |  |  | (16 | ) |  |  | 1,734 |  |  |  | 2,063 |
Equity income |  | 22,864 |  |  |  | - |  |  |  | 132,865 |  |  | - |  |  |  | 4,871 |  |  |  | 160,600 |
Adjusted EBIT (5) |  | 186,734 |  |  |  | 64,813 |  |  |  | 153,042 |  |  | (4,561 | ) |  |  | 5,517 |  |  |  | 405,545 |
(5) Excludes the noncontrolling interest portion of impairment of long-lived assets and restructuring income within Steel Processing of $4,888,000. Total assets for each of our reportable operating segments at the dates indicated were as follows:
| February 28, |  |  | May 31, |
(in thousands) | 2023 |  |  | 2022 |
Total assets |  |  |  |  |
Steel Processing | $ | 1,763,730 |  |  | $ | 2,082,522 |
Consumer Products |  | 636,896 |  |  |  | 577,026 |
Building Products |  | 647,582 |  |  |  | 681,188 |
Sustainable Energy Solutions |  | 121,689 |  |  |  | 114,084 |
Other |  | 327,775 |  |  |  | 188,203 |
Total assets | $ | 3,497,672 |  |  | $ | 3,643,023 |

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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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&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 https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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