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Segment Operations | 6 Months Ended
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Nov. 30, 2023
Segment Reporting [Abstract] |
Segment Operations | Note O – Segment Operations Our operations are managed principally on a products and services basis. Factors used to identify reportable segments include the nature of the products and services provided by each business, the management reporting structure, similarity of economic characteristics and certain quantitative measures, as prescribed by authoritative accounting guidance. As of November 30, 2023, our operations were organized under four operating segments: Steel Processing, Consumer Products, Building Products, and Sustainable Energy Solutions. As none of the operating segments were aggregated for segment reporting purposes, they corresponded with the reportable segments. Segment information is prepared on the same basis that our chief operating decision maker (“CODM”), as defined in the accounting literature, reviews financial information for operational decision-making purposes. Factors used to identify operating segments include the nature of the products and services provided by each business, the management reporting structure, the similarity of economic characteristics and certain quantitative measures, as prescribed by authoritative accounting guidance. We have identified our Chief Executive Officer as our CODM. Our CODM assesses segment operating performance and allocates resources based on the profitability measure of adjusted EBIT. Adjusted EBIT excludes impairment and restructuring expense (income), but may also exclude other items, as described in the tables 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. Refer to “Note E – Impairment of Long-Lived Assets” for additional information. 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). Refer to “Note F – Restructuring and Other Expense (Income), Net” for additional information. The following table presents summarized financial information for our reportable segments for the periods indicated.
| Three Months Ended November 30, 2023 |
(In thousands) | Steel Processing |  |  | Consumer Products |  |  | Building Products |  | Sustainable Energy Solutions |  |  | Other |  |  | Consolidated |
Net sales | $ | 788,655 |  |  | $ | 147,738 |  |  | $ | 122,954 |  | $ | 27,537 |  |  | $ | 34 |  |  | $ | 1,086,918 |
Restructuring and other expense, net |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | 6 |  |  |  | 6 |
Separation costs |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | 21,952 |  |  |  | 21,952 |
Miscellaneous income (expense), net |  | 306 |  |  |  | 12 |  |  |  | 235 |  |  | 557 |  |  |  | (90 | ) |  |  | 1,020 |
Equity income |  | 3,778 |  |  |  | - |  |  |  | 35,177 |  |  | - |  |  |  | 3,491 |  |  |  | 42,446 |
Adjusted EBIT (1) |  | 6,762 |  |  |  | 9,510 |  |  |  | 40,284 |  |  | (2,617 | ) |  |  | (1,090 | ) |  |  | 52,849 |
(1) Excludes the following items in addition to impairment and restructuring activity: • Direct and incremental costs associated with the Separation as discussed in “Note A – Basis of Presentation”; and • Our share of the pre-tax gain realized by Workhorse in connection with the sale of the joint venture’s operations in Brazil of $2,780;
| Three Months Ended November 30, 2022 |
(In thousands) | Steel Processing |  |  | Consumer Products |  |  | Building Products |  | Sustainable Energy Solutions |  |  | Other |  |  | Consolidated |
Net sales | $ | 841,947 |  |  | $ | 153,795 |  |  | $ | 141,671 |  | $ | 38,128 |  |  | $ | - |  |  | $ | 1,175,541 |
Restructuring and other income, net |  | (4,282 | ) |  |  | - |  |  |  | - |  |  | - |  |  |  | - |  |  |  | (4,282 | )
Separation costs |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | 9,246 |  |  |  | 9,246 |
Miscellaneous income (expense), net |  | 850 |  |  |  | (47 | ) |  |  | 76 |  |  | 142 |  |  |  | 384 |  |  |  | 1,405 |
Equity income |  | 1,906 |  |  |  | - |  |  |  | 35,107 |  |  | - |  |  |  | (156 | ) |  |  | 36,857 |
Adjusted EBIT (2) |  | (17,249 | ) |  |  | 13,473 |  |  |  | 41,224 |  |  | 1,143 |  |  |  | (3,291 | ) |  |  | 35,300 |
(2) Excludes the following items in addition to impairment and restructuring activity: • Direct and incremental costs associated with the Separation as discussed in “Note A – Basis of Presentation”; • Incremental compensation expense of $525 within Consumer Products related to the earnout for the acquisition of Level5 Tools, LLC (“Level5”); and • Noncontrolling interest portion of impairment of long-lived assets of $1,850 within Steel Processing.
| Six Months Ended November 30, 2023 |
(in thousands) | Steel Processing |  |  | Consumer Products |  |  | Building Products |  | Sustainable Energy Solutions |  |  | Other |  |  | Consolidated |
Net sales | $ | 1,669,993 |  |  | $ | 297,151 |  |  | $ | 256,822 |  | $ | 56,174 |  |  | $ | 34 |  |  | $ | 2,280,174 |
Impairment of long-lived assets |  | 1,401 |  |  |  | - |  |  |  | - |  |  | - |  |  |  | - |  |  |  | 1,401 |
Restructuring and other expense, net |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | 6 |  |  |  | 6 |
Separation costs |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | 27,987 |  |  |  | 27,987 |
Miscellaneous income (expense), net |  | 1,018 |  |  |  | 43 |  |  |  | 292 |  |  | 838 |  |  |  | (160 | ) |  |  | 2,031 |
Loss on extinguishment of debt |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | (1,534 | ) |  |  | (1,534 | )
Equity income |  | 12,735 |  |  |  | - |  |  |  | 80,219 |  |  | - |  |  |  | 3,873 |  |  |  | 96,827 |
Adjusted EBIT (3) |  | 84,762 |  |  |  | 18,502 |  |  |  | 94,300 |  |  | (7,339 | ) |  |  | (959 | ) |  |  | 189,266 |
(3) Excludes the following in addition to impairment and restructuring activity: • Direct and incremental costs associated with the Separation as discussed in “Note A – Basis of Presentation”; • The pre-tax loss on extinguishment of debt resulting from the redemption of the 2026 Notes, in full, on July 28, 2023; and • Noncontrolling interest portion of impairment of long-lived assets of $519 within Steel Processing.
| Six Months Ended November 30, 2022 |
(in thousands) | Steel Processing |  |  | Consumer Products |  |  | Building Products |  | Sustainable Energy Solutions |  |  | Other |  |  | Consolidated |
Net sales | $ | 1,880,827 |  |  | $ | 342,497 |  |  | $ | 291,994 |  | $ | 68,888 |  |  | $ | - |  |  | $ | 2,584,206 |
Impairment of long-lived assets |  | 312 |  |  |  | - |  |  |  | - |  |  | - |  |  |  | - |  |  |  | 312 |
Restructuring and other income, net |  | (4,205 | ) |  |  | - |  |  |  | - |  |  | - |  |  |  | (1,177 | ) |  |  | (5,382 | )
Separation costs |  | - |  |  |  | - |  |  |  | - |  |  | - |  |  |  | 9,246 |  |  |  | 9,246 |
Miscellaneous income (expense), net |  | 1,035 |  |  |  | (82 | ) |  |  | 299 |  |  | 56 |  |  |  | (4,989 | ) |  |  | (3,681 | )
Equity income |  | 3,676 |  |  |  | - |  |  |  | 78,973 |  |  | - |  |  |  | (14,080 | ) |  |  | 68,569 |
Adjusted EBIT (4) |  | 17,663 |  |  |  | 34,406 |  |  |  | 93,959 |  |  | (250 | ) |  |  | 1,854 |  |  |  | 147,632 |
(4) Excludes the following in addition to impairment and restructuring activity: • Direct and incremental costs associated with the Separation as discussed in “Note A – Basis of Presentation.” • A non-cash settlement charge of $4,774 in miscellaneous income (expense), net within Other related to the pension lift-out transaction associated with the Gerstenslager Company Bargaining Unit Employees’ Pension Plan; • A loss of $15,759 within equity income related to the August 31, 2022, sale of our 50% noncontrolling interest in ArtiFlex; • Incremental compensation expense of $1,050 within Consumer Products related to the Level5 earnout agreement; and • Noncontrolling interest portion of the restructuring gain within Steel processing of $1,734 within Steel Processing. Total assets for each of our reportable segments at the dates indicated were as follows:
| November 30, |  |  | May 31, |
(In thousands) | 2023 |  |  | 2023 |
Total assets |  |  |  |  |
Steel Processing | $ | 1,834,226 |  |  | $ | 1,758,981 |
Consumer Products |  | 622,304 |  |  |  | 615,430 |
Building Products |  | 611,771 |  |  |  | 635,650 |
Sustainable Energy Solutions |  | 103,448 |  |  |  | 129,872 |
Other |  | 412,388 |  |  |  | 510,985 |
Total assets | $ | 3,584,137 |  |  | $ | 3,650,918 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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