Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
May 31, 2019 | Jul. 23, 2019 | Nov. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | May 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | WOR | ||
Entity Registrant Name | WORTHINGTON INDUSTRIES INC | ||
Entity Central Index Key | 0000108516 | ||
Current Fiscal Year End Date | --05-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 56,356,576 | ||
Entity Public Float | $ 1,633,376,617 | ||
Entity File Number | 1-8399 | ||
Entity Tax Identification Number | 311189815 | ||
Entity Address, Address Line One | 200 Old Wilson Bridge Road | ||
Entity Address, City or Town | Columbus | ||
Entity Address, State or Province | Ohio | ||
Entity Address, Postal Zip Code | 43085 | ||
City Area Code | 614 | ||
Local Phone Number | 438-3210 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 92,363 | $ 121,967 |
Receivables, less allowances of $1,150 and $632 at May 31, 2019 and May 31, 2018, respectively | 501,944 | 572,689 |
Inventories: | ||
Raw materials | 268,607 | 237,471 |
Work in process | 113,848 | 122,977 |
Finished products | 101,825 | 93,579 |
Total inventories | 484,280 | 454,027 |
Income taxes receivable | 10,894 | 1,650 |
Assets held for sale | 6,924 | 30,655 |
Prepaid expenses and other current assets | 69,508 | 60,134 |
Total current assets | 1,165,913 | 1,241,122 |
Investments in unconsolidated affiliates | 214,930 | 216,010 |
Goodwill | 334,607 | 345,183 |
Other intangible assets, net of accumulated amortization of $87,759 and $74,922 at May 31, 2019 and May 31, 2018, respectively | 196,059 | 214,026 |
Other assets | 20,623 | 20,476 |
Property, plant and equipment: | ||
Land | 23,996 | 24,229 |
Buildings and improvements | 310,112 | 300,542 |
Machinery and equipment | 1,049,068 | 1,030,720 |
Construction in progress | 49,423 | 32,282 |
Total property, plant and equipment | 1,432,599 | 1,387,773 |
Less: accumulated depreciation | 853,935 | 802,803 |
Total property, plant and equipment, net | 578,664 | 584,970 |
Total assets | 2,510,796 | 2,621,787 |
Current liabilities: | ||
Accounts payable | 393,517 | 473,485 |
Accrued compensation, contributions to employee benefit plans and related taxes | 78,155 | 96,487 |
Dividends payable | 14,431 | 13,731 |
Other accrued items | 59,810 | 57,125 |
Income taxes payable | 1,164 | 4,593 |
Current maturities of long-term debt | 150,943 | 1,474 |
Total current liabilities | 698,020 | 646,895 |
Other liabilities | 69,976 | 74,237 |
Distributions in excess of investment in unconsolidated affiliate | 121,948 | 55,198 |
Long-term debt | 598,356 | 748,894 |
Deferred income taxes, net | 74,102 | 60,188 |
Total liabilities | 1,562,402 | 1,585,412 |
Shareholders' equity - controlling interest: | ||
Preferred shares, without par value; authorized - 1,000,000 shares; issued and outstanding - none | ||
Common shares, without par value; authorized - 150,000,000 shares; issued and outstanding, 2019 - 55,467,525 shares, 2018 - 58,876,921 shares | ||
Additional paid-in capital | 283,177 | 295,592 |
Accumulated other comprehensive loss, net of taxes of $7,100 and $2,908 at May 31, 2019 and May 31, 2018, respectively | (43,464) | (14,580) |
Retained earnings | 591,533 | 637,757 |
Total shareholders' equity - controlling interest | 831,246 | 918,769 |
Noncontrolling interests | 117,148 | 117,606 |
Total equity | 948,394 | 1,036,375 |
Total liabilities and equity | $ 2,510,796 | $ 2,621,787 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 1,150 | $ 632 |
Other intangible assets, accumulated amortization | $ 87,759 | $ 74,922 |
Preferred shares, without par value | ||
Preferred shares, shares authorized | 1,000,000 | 1,000,000 |
Preferred shares, shares issued | 0 | 0 |
Preferred shares, shares outstanding | 0 | 0 |
Common stock, without par value | ||
Common shares, authorized | 150,000,000 | 150,000,000 |
Common shares, shares issued | 55,467,525 | 58,876,921 |
Common shares, shares outstanding | 55,467,525 | 58,876,921 |
Accumulated other comprehensive income (loss), taxes | $ 7,100 | $ 2,908 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Income Statement [Abstract] | ||||
Net sales | $ 3,759,556 | $ 3,581,620 | $ 3,014,108 | |
Cost of goods sold | 3,279,601 | 3,018,763 | 2,478,203 | |
Gross margin | 479,955 | 562,857 | 535,905 | |
Selling, general and administrative expense | 338,392 | 367,460 | 316,373 | |
Impairment of goodwill and long-lived assets | 7,817 | 61,208 | ||
Restructuring and other expense (income), net | (11,018) | (7,421) | 6,411 | |
Operating income | 144,764 | 141,610 | 213,121 | |
Other income (expense): | ||||
Miscellaneous income, net | 2,716 | 2,996 | 3,764 | |
Interest expense | (38,063) | (38,675) | (29,796) | |
Equity in net income of unconsolidated affiliates | 97,039 | 103,139 | 110,038 | |
Earnings before income taxes | 206,456 | 209,070 | 297,127 | |
Income tax expense | 43,183 | 8,220 | 79,190 | |
Net earnings | 163,273 | 200,850 | 217,937 | |
Net earnings attributable to noncontrolling interests | [1] | 9,818 | 6,056 | 13,422 |
Net earnings attributable to controlling interest | $ 153,455 | $ 194,794 | $ 204,515 | |
Basic | ||||
Average common shares outstanding | 57,196 | 60,923 | 62,443 | |
Earnings per share attributable to controlling interest | $ 2.68 | $ 3.20 | $ 3.28 | |
Diluted | ||||
Average common shares outstanding | 58,823 | 63,042 | 64,874 | |
Earnings per share attributable to controlling interest | $ 2.61 | $ 3.09 | $ 3.15 | |
[1] | Net earnings attributable to noncontrolling interests are not taxable to Worthington. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net earnings | $ 163,273 | $ 200,850 | $ 217,937 |
Other comprehensive income (loss): | |||
Foreign currency translation | (14,772) | 12,744 | 1,342 |
Pension liability adjustment, net of tax | (1,785) | 1,566 | 2,242 |
Cash flow hedges, net of tax | (12,447) | 959 | (2,822) |
Other comprehensive income (loss) | (29,004) | 15,269 | 762 |
Comprehensive income | 134,269 | 216,119 | 218,699 |
Comprehensive income attributable to noncontrolling interests | 9,698 | 6,429 | 13,394 |
Comprehensive income attributable to controlling interest | $ 124,571 | $ 209,690 | $ 205,305 |
Consolidated Statements of Equi
Consolidated Statements of Equity - USD ($) $ in Thousands | Total | Worthington Energy Innovations L L C | DHybrid Systems LLC | Worthington Artas Basncl Kaplar Sanayi | Common Shares | Additional Paid-in Capital | Additional Paid-in CapitalDHybrid Systems LLC | Additional Paid-in CapitalWorthington Artas Basncl Kaplar Sanayi | Accumulated Other Comprehensive Loss, Net of Tax | Retained Earnings | Total | TotalDHybrid Systems LLC | TotalWorthington Artas Basncl Kaplar Sanayi | Noncontrolling Interests | Noncontrolling InterestsWorthington Energy Innovations L L C | Noncontrolling InterestsDHybrid Systems LLC | Noncontrolling InterestsWorthington Artas Basncl Kaplar Sanayi |
Balance at May. 31, 2016 | $ 919,846 | $ 298,984 | $ (28,565) | $ 522,952 | $ 793,371 | $ 126,475 | |||||||||||
Balance (in shares) at May. 31, 2016 | 61,533,668 | ||||||||||||||||
Net earnings | 217,937 | 204,515 | 204,515 | 13,422 | |||||||||||||
Other comprehensive income (loss) | 762 | 790 | 790 | (28) | |||||||||||||
Common shares issued, net of withholding tax | (9,075) | (9,075) | (9,075) | ||||||||||||||
Common shares issued, net of withholding tax (in shares) | 1,268,788 | ||||||||||||||||
Theoretical common shares in NQ plans | 1,259 | 1,259 | 1,259 | ||||||||||||||
Stock-based compensation | 13,158 | 13,158 | 13,158 | ||||||||||||||
Purchase of noncontrolling interest | $ (2,888) | $ (935) | $ (935) | $ (1,953) | |||||||||||||
Dividends to noncontrolling interests | (15,622) | (15,622) | |||||||||||||||
Cash dividends declared ($0.80 per share in 2017, $0.84 per share in 2018 and $0.92 per share in 2019) | (51,448) | (51,448) | (51,448) | ||||||||||||||
Balance at May. 31, 2017 | 1,073,929 | 303,391 | (27,775) | 676,019 | 951,635 | 122,294 | |||||||||||
Balance (in shares) at May. 31, 2017 | 62,802,456 | ||||||||||||||||
Net earnings | 200,850 | 194,794 | 194,794 | 6,056 | |||||||||||||
Other comprehensive income (loss) | 15,269 | 14,896 | 14,896 | 373 | |||||||||||||
Common shares issued, net of withholding tax | (2,120) | (2,120) | (2,120) | ||||||||||||||
Common shares issued, net of withholding tax (in shares) | 449,465 | ||||||||||||||||
Theoretical common shares in NQ plans | 1,218 | 1,218 | 1,218 | ||||||||||||||
Stock-based compensation | 13,460 | 13,460 | 13,460 | ||||||||||||||
Purchase of noncontrolling interest | $ (1,913) | $ 924 | $ 924 | $ (2,837) | |||||||||||||
Sale of controlling interest | $ (365) | $ (365) | |||||||||||||||
Reclassification of stranded tax effects | (1,701) | (1,701) | 1,701 | ||||||||||||||
Purchases and retirement of common shares | $ (204,267) | (21,281) | (182,986) | (204,267) | |||||||||||||
Purchases and retirement of common shares (in shares) | (4,375,000) | (4,375,000) | |||||||||||||||
Dividends to noncontrolling interests | $ (7,915) | (7,915) | |||||||||||||||
Cash dividends declared ($0.80 per share in 2017, $0.84 per share in 2018 and $0.92 per share in 2019) | (51,771) | (51,771) | (51,771) | ||||||||||||||
Balance at May. 31, 2018 | 1,036,375 | 295,592 | (14,580) | 637,757 | 918,769 | 117,606 | |||||||||||
Balance (in shares) at May. 31, 2018 | 58,876,921 | ||||||||||||||||
Net earnings | 163,273 | 153,455 | 153,455 | 9,818 | |||||||||||||
Other comprehensive income (loss) | (29,004) | (28,884) | (28,884) | (120) | |||||||||||||
Common shares issued, net of withholding tax | (6,371) | (6,371) | (6,371) | ||||||||||||||
Common shares issued, net of withholding tax (in shares) | 690,604 | ||||||||||||||||
Theoretical common shares in NQ plans | 680 | 680 | 680 | ||||||||||||||
Stock-based compensation | 13,927 | 13,927 | 13,927 | ||||||||||||||
ASC 606 transition adjustment | 1,744 | 1,174 | 1,174 | 570 | |||||||||||||
Purchases and retirement of common shares | $ (168,113) | (20,651) | (147,462) | (168,113) | |||||||||||||
Purchases and retirement of common shares (in shares) | (4,100,000) | (4,100,000) | |||||||||||||||
Dividends to noncontrolling interests | $ (10,726) | (10,726) | |||||||||||||||
Cash dividends declared ($0.80 per share in 2017, $0.84 per share in 2018 and $0.92 per share in 2019) | (53,391) | (53,391) | (53,391) | ||||||||||||||
Balance at May. 31, 2019 | $ 948,394 | $ 283,177 | $ (43,464) | $ 591,533 | $ 831,246 | $ 117,148 | |||||||||||
Balance (in shares) at May. 31, 2019 | 55,467,525 |
Consolidated Statements of Eq_2
Consolidated Statements of Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Cash dividend declared, per share | $ 0.92 | $ 0.84 | $ 0.80 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Operating activities: | |||
Net earnings | $ 163,273 | $ 200,850 | $ 217,937 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 95,602 | 103,359 | 86,793 |
Impairment of goodwill and long-lived assets | 7,817 | 61,208 | |
Provision for (benefit from) deferred income taxes | 17,435 | (38,237) | 18,443 |
Bad debt expense | 659 | 11 | 269 |
Equity in net income of unconsolidated affiliates, net of distributions | 7,347 | (13,352) | (8,023) |
Net (gain) loss on assets | (7,059) | (10,522) | 7,951 |
Stock-based compensation | 11,733 | 13,758 | 14,349 |
Changes in assets and liabilities, net of impact of acquisitions: | |||
Receivables | 73,346 | (53,066) | (39,927) |
Inventories | (33,649) | (84,654) | (34,599) |
Prepaid expenses and other current assets | (24,284) | (12,402) | 985 |
Other assets | 3,325 | (1,258) | 1,905 |
Accounts payable and accrued expenses | (116,875) | 105,984 | 67,492 |
Other liabilities | (811) | 9,666 | 2,097 |
Net cash provided by operating activities | 197,859 | 281,345 | 335,672 |
Investing activities: | |||
Investment in property, plant and equipment | (84,499) | (76,088) | (68,386) |
Acquisitions, net of cash acquired | (10,402) | (285,028) | |
Distributions from unconsolidated affiliate | 56,693 | 2,400 | |
Proceeds from sale of assets | 49,683 | 21,311 | 5,422 |
Net cash provided (used) by investing activities | 11,475 | (337,405) | (62,964) |
Financing activities: | |||
Net repayments of short-term borrowings, net of issuance costs | (948) | (2,528) | |
Proceeds from long-term debt, net of issuance costs | 197,685 | ||
Principal payments on long-term debt | (1,394) | (31,130) | (874) |
Proceeds from issuance of common shares, net of tax withholdings | (6,371) | (2,120) | (9,075) |
Payments to noncontrolling interests | (10,726) | (7,915) | (15,622) |
Repurchase of common shares | (168,113) | (204,267) | |
Dividends paid | (52,334) | (51,359) | (50,716) |
Net cash used by financing activities | (238,938) | (100,054) | (78,815) |
Increase (decrease) in cash and cash equivalents | (29,604) | (156,114) | 193,893 |
Cash and cash equivalents at beginning of year | 121,967 | 278,081 | 84,188 |
Cash and cash equivalents at end of year | $ 92,363 | $ 121,967 | $ 278,081 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note A – Summary of Significant Accounting Policies Consolidation: The consolidated financial statements include the accounts of Worthington Industries, Inc. and consolidated subsidiaries (collectively, “we,” “our,” “Worthington,” or the “Company”). Investments in unconsolidated affiliates are accounted for using the equity method. Significant intercompany accounts and transactions are eliminated. The Company owns controlling interests in the following three joint ventures: Spartan Steel Coating, LLC (“Spartan”) (52%), TWB Company, L.L.C. (“TWB”) (55%), and Worthington Specialty Processing (“WSP”) (51%). These joint ventures are consolidated with the equity owned by the other joint venture members shown as noncontrolling interests in our consolidated balance sheets, and their portions of net earnings and other comprehensive income (loss) (“OCI”) shown as net earnings or comprehensive income attributable to noncontrolling interests in our consolidated statements of earnings and comprehensive income, respectively. We recognized a noncontrolling interest in Worthington Energy Innovations, LLC (“WEI”) through March 31, 2018, when the Company sold its controlling stake in WEI to the other joint venture member. There was no impact to net earnings as a result of the transaction as the fair value of the consideration received approximated the net book value of WEI. On May 23, 2018, the Company acquired the minority ownership interest in Turkey-based Worthington Arıtaş Basınçlı Kaplar Sanayi (“Worthington Aritas”) from the noncontrolling joint venture members in a non-cash transaction. The difference between the fair value of the noncontrolling interest and its carrying value was recorded as an increase to additional paid-in-capital in the amount of $924,000. Use of Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Cash and Cash Equivalents: We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Inventories: Inventories are valued at the lower cost or net realizable value. Cost is determined using the first-in, first-out method for all inventories. The assessment of net realizable value requires the use of significant estimates to determine cost to complete, normal profit margin and the ultimate selling price of the inventory. We believe our inventories were valued appropriately as of May 31, 2019 and May 31, 2018. Derivative Financial Instruments: We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, foreign currency exchange risk and commodity price risk. All derivative instruments are accounted for using mark-to-market accounting. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. Gains and losses on fair value hedges are recognized in current period earnings in the same line as the underlying hedged item. The effective portion of gains and losses on cash flow hedges is deferred as a component of accumulated other comprehensive income or loss (“AOCI”) and recognized in earnings at the time the hedged item affects earnings, in the same financial statement caption as the underlying hedged item. Ineffectiveness of the hedges during the fiscal year ended May 31, 2019 (“fiscal 2019”), the fiscal year ended May 31, 2018 (“fiscal 2018”) and the fiscal year ended May 31, 2017 (“fiscal 2017”) was immaterial. Classification in the consolidated statements of earnings of gains and losses related to derivative instruments that do not qualify for hedge accounting is determined based on the underlying intent of the instruments. Cash flows related to derivative instruments are generally classified as operating activities in our consolidated statements of cash flows. In order for hedging relationships to qualify for hedge accounting under current accounting guidance, we formally document each hedging relationship and its risk management objective. This documentation includes the hedge strategy, the hedging instrument, the hedged item, the nature of the risk being hedged, how hedge effectiveness will be assessed prospectively and retrospectively as well as a description of the method used to measure hedge ineffectiveness. Derivative instruments are executed only with highly-rated counterparties. No credit loss is anticipated on existing instruments, and no material credit losses have been experienced to date. We monitor our positions, as well as the credit ratings of counterparties to those positions. We discontinue hedge accounting when it is determined that the derivative instrument is no longer effective in offsetting the hedged risk, expires or is sold, is terminated or is no longer designated as a hedging instrument because it is unlikely that a forecasted transaction will occur or we determine that designation of the hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative instrument is retained, we continue to carry the derivative instrument at its fair value on the consolidated balance sheet and recognize any subsequent changes in its fair value in net earnings immediately. When it is probable that a forecasted transaction will not occur, we discontinue hedge accounting and immediately recognize the gains and losses that were accumulated in AOCI. Refer to “Note Q – Derivative Instruments and Hedging Activities” for additional information regarding the consolidated balance sheet location and the risk classification of our derivative instruments. Risks and Uncertainties : As of May 31, 2019, excluding our joint ventures, we operated 31 manufacturing facilities worldwide, principally in three operating segments, which correspond with our reportable business segments: Steel Processing, Pressure Cylinders, and Engineered Cabs. We also held equity positions in nine joint ventures, which operated 46 manufacturing facilities worldwide, as of May 31, 2019. Our largest end market is the automotive industry, which comprised 38%, 37%, and 43% of consolidated net sales in fiscal 2019, fiscal 2018, and fiscal 2017 , respectively. Our international operations represented 5%, 9%, and 7% of consolidated net sales and 6%, 6%, and 4% of consolidated net earnings attributable to controlling interest in fiscal 2019, fiscal 2018, and fiscal 2017 , respectively, and 13% and 14% of consolidated net assets as of May 31, 2019 and May 31, 2018, respectively. As of May 31, 2019, approximately 8% of our consolidated labor force was represented by collective bargaining units. The concentration of credit risks from financial instruments related to the markets we serve is not expected to have a material adverse effect on our consolidated financial position, cash flows or future results of operations. In fiscal 2019, our largest customer accounted for approximately 9% of our consolidated net sales, and our ten largest customers accounted for approximately 31% of our consolidated net sales. A significant loss of, or decrease in, business from any of these customers could have an adverse effect on our consolidated net sales and financial results if we were not able to obtain replacement business. Also, due to consolidation within the industries we serve, including the construction, automotive and retail industries, our sales may be increasingly sensitive to deterioration in the financial condition of, or other adverse developments with respect to, one or more of our largest customers. Our principal raw material is flat-rolled steel, which we purchase from multiple primary steel producers. The steel industry as a whole has been cyclical, and at times availability and pricing can be volatile due to a number of factors beyond our control. This volatility can significantly affect our steel costs. In an environment of increasing prices for steel and other raw materials, in general, competitive conditions may impact how much of the price increases we can pass on to our customers. To the extent we are unable to pass on future price increases in our raw materials to our customers, our financial results could be adversely affected. Also, if steel prices decrease, in general, competitive conditions may impact how quickly we must reduce our prices to our customers, and we could be forced to use higher-priced raw materials to complete orders for which the selling prices have decreased. Declining steel prices could also require us to write-down the value of our inventories to reflect current market pricing. Further, the number of suppliers has decreased in recent years due to industry consolidation and the financial difficulties of certain suppliers, and consolidation may continue. Accordingly, if delivery from a major steel supplier is disrupted, it may be more difficult to obtain an alternative supply than in the past. Receivables: We review our receivables on an ongoing basis to ensure that they are properly valued and collectible. This is accomplished through an allowance for doubtful accounts. The allowance for doubtful accounts is used to record the estimated risk of loss related to the customers’ inability to pay. This allowance is maintained at a level that we consider appropriate based on factors that affect collectability, such as the financial health of our customers, historical trends of charge-offs and recoveries and current economic and market conditions. As we monitor our receivables, we identify customers that may have payment problems, and we adjust the allowance accordingly, with the offset to selling, general and administrative (“SG&A”) expense. Account balances are charged off against the allowance when recovery is considered remote. The allowance for doubtful accounts increased approximately $518,000 during fiscal to $1,150,000. While we believe our allowance for doubtful accounts is adequate, changes in economic conditions, the financial health of customers and bankruptcy settlements could impact our future earnings. If the economic environment and market conditions deteriorate, particularly in the automotive and construction end markets where our exposure is greatest, additional reserves may be required. Property and Depreciation: Property, plant and equipment are carried at cost and depreciated using the straight-line method. Buildings and improvements are depreciated over 10 to 40 years and machinery and equipment over 3 to 20 years. Depreciation expense was $80,316,000, $83,680,000 and $73,268,000 during fiscal 2019, fiscal 2018 and fiscal 2017 , respectively. Accelerated depreciation methods are used for income tax purposes. Goodwill and Other Long-Lived Assets: We use the purchase method of accounting for all business combinations and recognize amortizable and indefinite-lived intangible assets separately from goodwill. The acquired assets and assumed liabilities in an acquisition are measured and recognized based on their estimated fair values at the date of acquisition, with goodwill representing the excess of the purchase price over the fair value of the identifiable net assets. A bargain purchase may occur, wherein the fair value of identifiable net assets exceeds the purchase price, and a gain is then recognized in the amount of that excess. Goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually, during the fourth quarter, or more frequently if events or changes in circumstances indicate that impairment may be present. Application of goodwill impairment testing involves judgment, including but not limited to, the identification of reporting units and estimation of the fair value of each reporting unit. A reporting unit is defined as an operating segment or one level below an operating segment. With the exception of Pressure Cylinders, we test goodwill at the operating segment level as we have determined that the characteristics of the reporting units within each operating segment are similar and allow for their aggregation in accordance with the applicable accounting guidance. For our Pressure Cylinders operating segment, the oil & gas equipment business has been treated as a separate reporting unit since the second quarter of fiscal 2016. For goodwill and indefinite-lived intangible assets, we test for impairment by first evaluating qualitative factors including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance. If there are no concerns raised from this evaluation, no further testing is performed. If however, our qualitative analysis indicates it is more likely than not that the fair value is less than the carrying amount, a quantitative analysis is performed. The quantitative analysis compares the fair value of each reporting unit or indefinite-lived intangible asset to the respective carrying amount, and an impairment loss is recognized in our consolidated statements of earnings equivalent to the excess of the carrying amount over the fair value. Fair value is determined based on discounted cash flows or appraised values, as appropriate. Either way, our policy is to perform a quantitative analysis over each reporting unit at least every three years. We performed our annual impairment evaluation of goodwill and other indefinite-lived intangible assets during the fourth quarter of fiscal 2019 and concluded that the fair value of each reporting unit exceeded its carrying value. The estimated fair value of the oil & gas equipment reporting unit did not exceed its carrying value by a significant amount (approximately 13%). Accordingly, future declines in the market and/or deterioration in earnings could lead to a potential impairment. that the carrying value of the asset or asset group exceeds its fair value. and are recorded in a single line in the consolidated balance sheets. We classify assets as Our impairment testing for both goodwill and other long-lived assets, including intangible assets with finite useful lives, See “Note D – Goodwill and Other Long-Lived Assets” for additional details regarding these assets and related impairment testing. Equity method investments: Investments in affiliated companies that we do not control, either through majority ownership or otherwise, are accounted for using the equity method. We review our equity-method investments for impairment whenever events or changes in circumstances indicate that the carrying value of the investment might not be recoverable. Events and circumstances can include, but are not limited to: evidence we do not have the ability to recover the carrying value; the inability of the investee to sustain earnings; the current fair value of the investment is less than the carrying value; and other investors cease to provide support or reduce their financial commitment to the investee. If the fair value of the investment is less than the carrying value, and the investment will not recover in the near term, then other-than-temporary impairment may exist. When the loss in value of an investment is determined to be other-than-temporary, we recognize an impairment in the period the conclusion is made. Leases: Certain lease agreements contain fluctuating or escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the lease term. Leasehold improvements made by the lessee, whether funded by the lessee or by landlord allowances or incentives, are recorded as leasehold improvement assets and will be amortized over the shorter of the economic life or the lease term. These incentives are recorded as deferred rent and amortized as reductions in rent expense over the lease term. Stock-Based Compensation: At May 31, 2019, we had stock-based compensation plans for our employees as well as our non-employee directors as described more fully in “Note K – Stock-Based Compensation.” All share-based awards, including grants of stock options and restricted common shares, are recorded as expense in the consolidated statements of earnings based on their grant-date fair values. Forfeitures are recognized as they occur. Revenue Recognition : Through fiscal 2018, we recognized revenue upon transfer of title and risk of loss, or in the case of toll processing revenue, upon delivery of the goods, provided evidence of an arrangement existed, pricing was fixed and determinable and the ability to collect was probable. Through charges to net sales, provisions were made for returns and allowances, customer rebates and sales discounts based on past experience, specific agreements, and anticipated levels of customer activity. On June 1, 2018, we adopted new accounting guidance that replaces most existing revenue recognition accounting guidance under U.S. GAAP, Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) Under the new accounting guidance, we recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration we expect to receive for those goods or services, including any variable consideration. Advertising Expense: Advertising costs are expensed as incurred and included in SG&A expense. Advertising expense was $15,574,000, $15,236,000, and $14,822,000 for fiscal 2019, fiscal 2018 and fiscal 2017 , respectively. Environmental Costs: Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Costs related to environmental contamination treatment and cleanup are charged to expense as incurred. Statements of Cash Flows: Supplemental cash flow information was as follows for the fiscal years ended May 31: (in thousands) 2019 2018 2017 Interest paid, net of amount capitalized $ 38,807 $ 34,839 $ 29,826 Income taxes paid, net of refunds $ 38,848 $ 44,819 $ 55,652 We use the “cumulative earnings” approach for determining cash flow presentation of distributions from our unconsolidated joint ventures. Distributions received are included in our consolidated statements of cash flows as operating activities, unless the cumulative distributions exceed our portion of the cumulative equity in the net earnings of the joint venture, in which case the excess distributions are deemed to be returns of the investment and are classified as investing activities in our consolidated statements of cash flows. Income Taxes: We account for income taxes using the asset and liability method. The asset and liability method requires the recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our assets and liabilities. We evaluate the deferred tax assets to determine whether it is more likely than not that all, or a portion, of the deferred tax assets will not be realized and provide a valuation allowance as appropriate. Tax benefits from uncertain tax positions that are recognized in the consolidated financial statements are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. We have reserves for income taxes and associated interest and penalties that may become payable in future years as a result of audits by taxing authorities. It is our policy to record these in income tax expense. While we believe the positions taken on previously filed tax returns are appropriate, we have established the tax and interest/penalties reserves in recognition that various taxing authorities may challenge our positions. These reserves are analyzed periodically, and adjustments are made as events occur to warrant adjustment to the reserves, such as lapsing of applicable statutes of limitations, conclusion of tax audits, additional exposure based on current calculations, identification of new issues and release of administrative guidance or court decisions affecting a particular tax issue. Self-Insurance Reserves: We self-insure most of our risks for product liability, cyber liability and pollution liability. We are largely self-insured with respect to workers’ compensation, general and automobile liability, property liability, automobile liability and employee medical claims, and in order to reduce risk and better manage our overall loss exposure for these liabilities, we purchase stop-loss insurance that covers individual claims in excess of the deductible amounts. We also maintain reserves for the estimated cost to resolve certain open claims that have been made against us (which may include active product recall or replacement programs), as well as an estimate of the cost of claims that have been incurred but not reported. These estimates are based on actuarial valuations that take into consideration the historical average claim volume, the average cost for settled claims, current trends in claim costs, changes in our business and workforce, general economic factors and other assumptions believed to be reasonable under the circumstances. The estimated reserves for these liabilities could be affected if future occurrences and claims differ from the assumptions used and historical trends. Recently Adopted Accounting Standards: In February 2018, amended guidance was issued that would allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”) signed into law in December 2017. The amended guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. It is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. The Company early adopted this amended guidance in the fourth quarter of fiscal 2018. As a result, the stranded tax effects in AOCI of $1,701,000, related to various unrealized gains and losses associated with the Company’s hedge instruments and minimum pension liability, were reclassified to retained earnings. On June 1, 2018, the Company adopted new accounting guidance that replaces most existing revenue recognition guidance under U.S. GAAP. See “NOTE B – Revenue Recognition” for further explanation related to this adoption, including newly required disclosures. Recently Issued Accounting Standards: In February 2016, new accounting guidance was issued that replaces most existing lease accounting guidance under U.S. GAAP. Among other changes, the new accounting guidance requires that leased assets and liabilities be recognized on the balance sheet by lessees for those leases classified as operating leases under previous guidance. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, and the change is to be applied using a modified retrospective approach as of the beginning of the earliest period presented. In July 2018, the FASB issued additional accounting standard updates clarifying certain provisions, as well as providing for a second transition method allowing entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance sheet in retained earnings. We have completed steps to evaluate the components and criteria of existing leases; reviewed contracts and agreements to identify items that meet the definition of a lease under the new accounting guidance; and procured a third-party software system to track and manage our leases. We have imported the lease data into the system and are in the process of testing the upload and system calculations. We are also in the process of assessing the design of the future lease process and drafting a policy to address the new accounting standard requirements. We have elected certain practical expedients available under the new accounting guidance, including a package of practical expedients which allows us to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs. While we are in the process of evaluating the effect the new accounting guidance will have on the presentation of our consolidated In June 2016, amended accounting guidance was issued related to the measurement of credit losses on financial instruments. The amended accounting guidance changes the impairment model for most financial assets to require measurement and recognition of expected credit losses for financial assets held. The amended accounting guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are in the process of evaluating the effect this amended accounting guidance will have on our consolidated In August 2017, amended accounting guidance was issued that modifies hedge accounting by making more hedge strategies eligible for hedge accounting, amending presentation and disclosure requirements, and changing how companies assess effectiveness. The intent is to simplify application of hedge accounting and increase transparency of information about an entity’s risk management activities. The amended accounting guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. It is to be applied using a modified retrospective transition approach for cash flow and net investment hedges existing at the date of adoption. The presentation and disclosure guidance is only required prospectively. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
May 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note B – Revenue Recognition Through fiscal 2018, in accordance with our historical accounting policies for revenue recognition, we recognized revenue upon transfer of title and risk of loss, or in the case of toll processing revenue, upon delivery of the goods, provided persuasive evidence of an arrangement existed, pricing was fixed or determinable and collectability was reasonably assured. Through charges to net sales, provisions were made for returns and allowances, customer rebates and sales discounts based on past experiences, specific agreements, and anticipated levels of customer activity. On June 1, 2018, we adopted new accounting guidance that replaces most existing revenue recognition accounting guidance under U.S. GAAP, Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) The following table outlines the cumulative effect of adopting the new revenue recognition guidance: (in thousands) May 31, 2018 (As Reported) Cumulative Effect of Topic 606 Adoption June 1, 2018 (As Adjusted) Consolidated Balance Sheet Assets Receivables $ 572,689 $ 4,706 $ 577,395 Total inventories 454,027 (3,452 ) 450,575 Prepaid expenses and other current assets 60,134 944 61,078 Liabilities and equity Deferred income taxes, net 60,188 454 60,642 Retained earnings 637,757 1,174 638,931 Noncontrolling interests 117,606 570 118,176 Under the new accounting guidance, we recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration we expect to receive for those goods or services, including any variable consideration. Returns and allowances are used to record estimates of returns or other allowances resulting from quality, delivery, discounts or other issues and are estimated based on historical trends and current market conditions, with the offset to net sales. The account increased approximately $546,000 during fiscal to $6,745,000. Shipping and handling costs charged to customers are treated as fulfillment activities and are recorded in both net sales and cost of goods sold at the time control is transferred to the customer. Due to the short-term nature of our contracts with customers, we have elected to apply the practical expedients under Topic 606 to: (1) expense as incurred, incremental costs of obtaining a contract; and (2) not adjust the consideration for the effects of a significant financing component for contracts with an original expected duration of one year or less. When we satisfy (or partially satisfy) a performance obligation, prior to being able to invoice the customer, we recognize an unbilled receivable when the right to consideration is unconditional and a contract asset when the right to consideration is conditional. Unbilled receivables and contract assets are included in receivables and prepaid and other current assets, respectively, on the consolidated balance sheets. Additionally, we do not maintain contract liability balances, as performance obligations are satisfied prior to customer payment for product. Payments from customers are generally due within 30 to 60 days of invoicing, which generally occurs upon shipment or delivery of the goods. Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that we collect from a customer, are excluded from revenue. Certain contracts with customers include warranties associated with the delivered goods or services. These warranties are not considered to be separate performance obligations, and accordingly, we record an estimated liability for potential warranty costs as the goods or services are transferred. With the exception of the toll processing revenue stream and certain contracts within the oil & gas equipment revenue stream, we recognize revenue at the point in time the performance obligation is satisfied and control of the product is transferred to the customer upon shipment or delivery. Generally, we receive and acknowledge purchase orders from our customers, which define the quantity, pricing, payment and other applicable terms and conditions. In some cases, we receive a blanket purchase order from our customers, which includes pricing, payment and other terms and conditions, with quantities defined at the time each customer subsequently issues periodic releases against the blanket purchase order. For the toll processing revenue stream and certain contracts within the oil & gas equipment revenue stream, we recognize revenue over time. Revenue is primarily measured using the cost-to-cost method, which we believe best depicts the transfer of control to the customer. Under the cost-to-cost method, the extent of progress towards completion is measured based on the ratio of actual costs incurred to the total estimated costs expected upon satisfying the identified performance obligation. Revenues are recorded proportionally as costs are incurred. We have elected to not disclose the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. Certain contracts contain variable consideration, which is not constrained, and primarily include estimated sales returns, customer rebates, and sales discounts which are recorded on an expected value basis. These estimates are based on historical returns, analysis of credit memo data and other known factors. We account for rebates by recording reductions to revenue for rebates in the same period the related revenue is recorded. The amount of these reductions is based upon the terms agreed to with the customer. We do not exercise significant judgments in determining the timing of satisfaction of performance obligations or the transaction price. The following table summarizes net sales by product class and by timing of revenue recognition for the fiscal year ended May 31, 2019: (in thousands) Reportable Segments Product class: Steel Processing Pressure Cylinders Engineered Cabs Other Total Steel Processing Direct $ 2,308,756 $ - $ - $ - $ 2,308,756 Toll 127,062 - - - 127,062 Pressure Cylinders Industrial products - 627,053 - - 627,053 Consumer products - 470,447 - - 470,447 Oil & gas equipment - 110,298 - - 110,298 Engineered Cabs - - 115,902 - 115,902 Other - - - 38 38 Total $ 2,435,818 $ 1,207,798 $ 115,902 $ 38 $ 3,759,556 Timing of revenue recognition: Goods transferred at a point in time $ 2,308,756 $ 1,132,639 $ 115,902 $ 38 $ 3,557,335 Goods and services transferred over time 127,062 75,159 - - 202,221 Total $ 2,435,818 $ 1,207,798 $ 115,902 $ 38 $ 3,759,556 The following tables show the adjustments that would be required to be made to our fiscal 2019 consolidated financial statements to reflect the balances that would have been recorded if we continued to follow our accounting policies under the previous revenue recognition guidance: (in thousands) As Currently Reported Topic 606 Adjustments Balances Without Adoption of Topic 606 Consolidated Balance Sheet Assets Receivables $ 501,944 $ (5,367 ) $ 496,577 Total inventories 484,280 8,704 492,984 Prepaid expenses and other current assets 69,508 (6,891 ) 62,617 Income tax receivable 10,894 425 11,319 Liabilities and equity Income taxes payable 1,164 12 1,176 Deferred income taxes, net 74,102 (360 ) 73,742 Shareholders' equity - controlling interest 831,246 (2,227 ) 829,019 Noncontrolling interests 117,148 (554 ) 116,594 Consolidated Statement of Earnings Net sales $ 3,759,556 $ (6,608 ) $ 3,752,948 Cost of goods sold 3,279,601 (5,253 ) 3,274,348 Income tax expense 43,183 (319 ) 42,864 Net earnings 163,273 (1,036 ) 162,237 Net earnings attributable to noncontrolling interests 9,818 16 9,834 Net earnings attributable to controlling interest 153,455 (1,052 ) 152,403 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 12 Months Ended |
May 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Note C – Investments in Unconsolidated Affiliates Our investments in affiliated companies that we do not control, either through majority ownership or otherwise, are accounted for using the equity method. These include ArtiFlex Manufacturing, LLC (“ArtiFlex”) (50%), Clarkwestern Dietrich Building Systems LLC (“ClarkDietrich”) (25%), Samuel Steel Pickling Company (31.25%), Serviacero Planos, S. de R. L. de C.V. (“Serviacero Worthington”) (50%), Worthington Armstrong Venture (“WAVE”) (50%), and Zhejiang Nisshin Worthington Precision Specialty Steel Co., Ltd. (“Nisshin”) (10%). During the fourth quarter of fiscal 2019, we determined our 10% ownership interest in our joint venture in China, Nisshin, was other than temporarily impaired due to current and projected operating losses. As a result, an impairment charge of $4,017,000 was recognized within equity income in our consolidated statement of earnings to write down the investment to its estimated fair value of $3,700,000. We received distributions from unconsolidated affiliates totaling $161,079,000, $89,787,000, and $102,015,000 in fiscal 2019, fiscal 2018 and fiscal 2017 The following table presents combined information regarding the financial position of our unconsolidated affiliates accounted for using the equity method as of May 31: (in thousands) 2019 2018 Cash $ 37,471 $ 52,812 Other current assets 594,959 590,578 Current assets for discontinued operations 35,793 37,640 Noncurrent assets 360,925 358,927 Total assets $ 1,029,148 $ 1,039,957 Current liabilities $ 236,781 $ 166,493 Current liabilities for discontinued operations 9,610 7,142 Short-term borrowings 15,162 26,599 Current maturities of long-term debt 33,003 23,243 Long-term debt 321,791 259,588 Other noncurrent liabilities 18,192 17,536 Equity 394,609 539,356 Total liabilities and equity $ 1,029,148 $ 1,039,957 The amounts presented within the discontinued operations captions in the table above reflect the international operations of our WAVE joint venture, which are being sold as part of a broader transaction between the joint venture partner, Armstrong World Industries, Inc. (“AWI”), and Knauf Group, a family-owned manufacturer of building materials headquartered in Germany. WAVE’s portion of the total sales proceeds is expected to be approximately $90,000,000 ($45,000,000 attributed to Worthington). The transaction is subject to regulatory approvals and other customary closing conditions. During the first quarter of fiscal 2019, the parties agreed to extend the date by which certain competition clearance conditions were to be satisfied per the original purchase agreement. In exchange, Knauf Group irrevocably agreed to fund the purchase price which was received by AWI in two distributions, the first on August 1, 2018, and the balance on September 15, 2018. In September 2018, we received a cash distribution of $35,000,000 from WAVE related to the pending sale of the international is expected to occur by the end of calendar 2019. We also received a one-time special cash distribution of $25,000,000 from WAVE in connection with a financing transaction completed in October 2018. The following table presents summarized financial information for our four largest unconsolidated affiliates as of, and for the fiscal years ended May 31. All other unconsolidated affiliates are combined and presented in the Other category. (in thousands) 2019 2018 2017 Net sales WAVE $ 379,103 $ 360,395 $ 334,031 ClarkDietrich 892,758 790,887 711,735 Serviacero Worthington 351,671 315,098 275,315 ArtiFlex 201,526 197,061 208,922 Other 32,753 28,578 17,784 Total net sales $ 1,857,811 $ 1,692,019 $ 1,547,787 Gross margin (loss) WAVE $ 205,909 $ 201,581 $ 190,350 ClarkDietrich 93,947 97,437 128,098 Serviacero Worthington 34,494 32,396 37,080 ArtiFlex 12,928 18,266 22,829 Other (6,000 ) (6,399 ) (4,313 ) Total gross margin $ 341,278 $ 343,281 $ 374,044 Operating income (loss) WAVE $ 166,969 $ 158,697 $ 158,030 ClarkDietrich 33,384 39,153 68,696 Serviacero Worthington 25,636 24,232 29,975 ArtiFlex 5,524 11,395 15,519 Other (9,964 ) (10,584 ) (8,407 ) Total operating income $ 221,549 $ 222,893 $ 263,813 Depreciation and amortization WAVE $ 3,634 $ 3,318 $ 2,978 ClarkDietrich 11,600 11,864 12,718 Serviacero Worthington 4,319 3,919 3,862 ArtiFlex 6,055 5,515 5,850 Other 875 749 698 Total depreciation and amortization $ 26,483 $ 25,365 $ 26,106 Interest expense WAVE $ 10,547 $ 8,365 $ 7,182 ClarkDietrich 912 114 20 Serviacero Worthington 493 397 89 ArtiFlex 1,443 1,333 1,429 Other - - - Total interest expense $ 13,395 $ 10,209 $ 8,720 Income tax expense (benefit) WAVE $ 219 $ 119 $ 2,398 ClarkDietrich - - - Serviacero Worthington 7,629 5,141 11,740 ArtiFlex 29 208 (2 ) Other - - (2 ) Total income tax expense $ 7,877 $ 5,468 $ 14,134 Net earnings (loss) WAVE (1) $ 162,849 $ 152,329 $ 154,866 ClarkDietrich 34,560 39,138 69,122 Serviacero Worthington 16,155 17,577 18,140 ArtiFlex 4,051 9,854 14,092 Other (8,383 ) (11,922 ) (5,472 ) Total net earnings $ 209,232 $ 206,976 $ 250,748 (1) These net earnings include net income attributable to discontinued operations of $6,830,000, $2,226,000, and $6,775,000 in fiscal 2019, fiscal 2018, and fiscal 2017, respectively, related to the international operations of WAVE being sold. All other amounts presented in the table above exclude the activity of the discontinued operations of WAVE. At May 31, 2019 and 2018, $46,838,000 and $42,636,000, respectively, of our consolidated retained earnings represented undistributed earnings of our unconsolidated affiliates, net of tax. |
Goodwill and Other Long-Lived A
Goodwill and Other Long-Lived Assets | 12 Months Ended |
May 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Long-Lived Assets | Note D – Goodwill and Other Long-Lived Assets Goodwill The following table summarizes the changes in the carrying amount of goodwill during fiscal 2019 and fiscal 2018 by reportable business segment: (in thousands) Steel Processing Pressure Cylinders Engineered Cabs Other Total Balance at May 31, 2017 Goodwill $ 7,899 $ 234,123 $ 44,933 $ 127,245 $ 414,200 Accumulated impairment losses - - (44,933 ) (121,594 ) (166,527 ) 7,899 234,123 - 5,651 247,673 Acquisitions and purchase accounting adjustments (1) - 103,437 - - 103,437 Translation adjustments - 3,739 - - 3,739 Impairment losses (2) - (4,015 ) - (5,651 ) (9,666 ) - 103,161 - (5,651 ) 97,510 Balance at May 31, 2018 Goodwill 7,899 341,299 44,933 127,245 521,376 Accumulated impairment losses - (4,015 ) (44,933 ) (127,245 ) (176,193 ) 7,899 337,284 - - 345,183 Acquisitions and purchase accounting adjustments (1) - 777 - - 777 Translation adjustments - (4,093 ) - - (4,093 ) Divestitures (3) - (7,260 ) - - (7,260 ) - (10,576 ) - - (10,576 ) Balance at May 31, 2019 Goodwill 7,899 330,723 44,933 127,245 510,800 Accumulated impairment losses - (4,015 ) (44,933 ) (127,245 ) (176,193 ) $ 7,899 $ 326,708 $ - $ - $ 334,607 (1) For additional information regarding the Company’s acquisitions, refer to “Note P – Acquisitions.” (2) Fiscal 2018 impairment charges included $4,015,000 of goodwill allocated to oil & gas equipment assets prior to their disposal on July 31, 2018 and $5,651,000 related to the sale of a 65% stake in WEI on March 31, 2018. (3) Fiscal 2019 divestitures included the sale of the operating assets and real property related to the solder business and certain brazing assets. Other Intangible Assets Intangible assets with definite lives are amortized on a straight-line basis over their estimated useful lives, which range from one to 20 years. The following table summarizes other intangible assets by class as of May 31, 2019 and 2018: 2019 2018 Accumulated Accumulated (in thousands) Cost Amortization Cost Amortization Indefinite-lived intangible assets: Trademarks $ 74,801 $ - $ 76,701 $ - Total indefinite-lived intangible assets 74,801 - 76,701 - Definite-lived intangible assets: Customer relationships $ 174,150 $ 69,258 $ 173,363 $ 57,125 Non-compete agreements 8,656 8,509 8,669 8,137 Technology / know-how 22,495 6,276 26,411 5,856 Other 3,716 3,716 3,804 3,804 Total definite-lived intangible assets 209,017 87,759 212,247 74,922 Total intangible assets $ 283,818 $ 87,759 $ 288,948 $ 74,922 Amortization expense totaled $15,286,000, $19,679,000, and $13,525,000 in fiscal 2019, fiscal 2018 and fiscal 2017 , respectively Amortization expense for each of the next five fiscal years is estimated to be: (in thousands) 2020 $ 13,031 2021 $ 12,271 2022 $ 10,641 2023 $ 10,039 2024 $ 10,039 Impairment of Long-Lived Assets Fiscal 2019: During the fourth quarter of fiscal 2019, management determined that indicators of impairment were present with regard to certain long-lived assets of the Canton, Michigan facility operated by the Company’s consolidated joint venture, WSP. As a result, long-lived assets with a carrying value of $4,269,000 were written down to their estimated fair market value of $1,000,000 (determined using Level 2 inputs), resulting in an impairment charge of $3,269,000. During the first quarter of fiscal 2019, changes in the 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 which generated an impairment charge of $2,381,000. Fair value was determined using observable (Level 2) inputs. Fiscal 2018: During the second quarter of fiscal 2018, the Company determined that indicators of impairment were present with regard to the goodwill and intangible assets of the former WEI reporting unit. As a result, these assets were written down to their estimated fair value resulting in an impairment charge of $7,325,000. During the second quarter of fiscal 2018, the Company also identified the presence of impairment indicators with regard to vacant land at the oil & gas equipment facility in Bremen, Ohio, resulting in an impairment charge of $964,000 to write the vacant land down to its estimated fair value. |
Restructuring and Other Expense
Restructuring and Other Expense (Income), Net | 12 Months Ended |
May 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Expense (Income), Net | Note E – Restructuring and Other Expense (Income), Net We consider restructuring activities to be programs whereby we fundamentally change our operations such as closing and consolidating manufacturing facilities or moving manufacturing of a product to another location. Restructuring activities may also involve substantial realignment of the management structure of a business unit in response to changing market conditions. A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other income, net financial statement caption in our consolidated statement of earnings for fiscal 2019, is summarized below: Beginning Ending (in thousands) Balance Expense Payments Adjustments Balance Early retirement and severance $ 1,116 $ 1,899 $ (2,127 ) $ (114 ) $ 774 Facility exit and other costs - 503 (313 ) (188 ) 2 $ 1,116 2,402 $ (2,440 ) $ (302 ) $ 776 Net gain on sale of assets (13,420 ) Restructuring and other income, net $ (11,018 ) During fiscal 2019, the following actions were taken related to the Company’s restructuring activities: • In connection with the consolidation of the Company’s industrial gas operations in Portugal following the acquisition of AMTROL in fiscal 2018, the Company recognized severance expense of $1,086,000 and facility exit costs of $513,000. • Within the Pressure Cylinders business, the Company sold two oil & gas manufacturing facilities resulting in net proceeds of $20,256,000 and a net gain on disposal of $1,962,000. • In connection with the sale of the operating assets and real property related to the solder business and certain brazing assets within the Pressure Cylinders business, the Company recognized net proceeds of $27,577,000, severance expense of $89,000 and a net gain on disposal of $11,458,000. • Upon exit of the North America CNG fuel system market in the Salt Lake City, Utah facility, the Company recognized severance expense of $519,000. • In connection with other non-significant restructuring activities, the Company recognized severance expense of $205,000 and a reduction to facility exit costs of $10,000. The total liability as of May 31, 2019 is expected to be paid in the next twelve months. |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments | 12 Months Ended |
May 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Commitments | Note F – Contingent Liabilities and Commitments Legal Proceedings We are defendants in certain legal actions. In the opinion of management, the outcome of these actions, which is not clearly determinable at the present time, would not significantly affect our consolidated financial position or future results of operations. We also believe that environmental issues will not have a material effect on our capital expenditures, consolidated financial position or future results of operations. Voluntary Tank Replacement Program In February 2019, our Structural Composites Industries, LLC subsidiary (“SCI”) agreed to participate in a tank replacement program for specific design sizes of its composite hydrogen fuel tanks, which are integrated into a customer’s hydrogen fuel cells used to fuel material handling equipment, primarily rider pallet jacks in warehouses. The tanks being replaced were sold mainly between 2012 and 2015, and were designed to meet specified ISO-standards. These tanks successfully passed a number of ISO-certification tests; however, because it was mistakenly determined these tanks would qualify as a “child” of a similar fully-tested tank, not all tests for full standalone ISO-certification were completed. Since the identical carbon fiber used to manufacture most of these tanks is no longer commercially available, SCI cannot manufacture new units to retroactively complete this testing. The tanks were supplied to a single customer. The replacement program is underway and is expected to take approximately six to twelve months to complete. In connection with this matter, we recorded a $13,000,000 charge to costs of goods sold during the third quarter of fiscal 2019 to reflect our estimated costs of replacing these tanks. The actual cost incurred by the Company related to this matter may vary from the initial estimate. A progression of the liabilities recorded in connection with this matter during fiscal 2019 is summarized in the following table: (in thousands) Beginning Balance Expense Payments Ending Balance Tank replacement costs $ - $ 13,000 $ (4,500 ) $ 8,500 We believe these liabilities are sufficient to absorb our remaining direct costs related to the replacement program, which are expected to be paid in the next six months. |
Guarantees
Guarantees | 12 Months Ended |
May 31, 2019 | |
Guarantees And Product Warranties [Abstract] | |
Guarantees | Note G – Guarantees We do not have guarantees that we believe are reasonably likely to have a material current or future effect on our consolidated financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources. However, as of May 31, 2019, we were party to an operating lease for an aircraft in which we have guaranteed a residual value at the termination of the lease. The maximum obligation under the terms of this guarantee was approximately $7,401,000 at May 31, 2019. Based on current facts and circumstances, we have estimated the likelihood of payment pursuant to this guarantee is not probable and, therefore, no amounts have been recognized in our consolidated financial statements. We also had in place $15,833,000 of outstanding stand-by letters of credit issued to third-party service providers at May 31, 2019. The fair value of these guarantee instruments, based on premiums paid, was not material and no amounts were drawn against them at May 31, 2019. |
Debt and Receivables Securitiza
Debt and Receivables Securitization | 12 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Receivables Securitization | Note H – Debt and Receivables Securitization The following table summarizes our long-term debt and short-term borrowings outstanding at May 31, 2019 and 2018: (in thousands) 2019 2018 4.30% senior notes due August 1, 2032 $ 200,000 $ 200,000 4.55% senior notes due April 15, 2026 250,000 250,000 4.60% senior notes due August 10, 2024 150,000 150,000 6.50% senior notes due April 15, 2020 150,000 150,000 Term loans - 829 Other 3,100 3,899 Total debt 753,100 754,728 Unamortized discount and debt issuance costs (3,801 ) (4,360 ) Total debt, net 749,299 750,368 Less: current maturities and short-term borrowings 150,943 1,474 Total long-term debt $ 598,356 $ 748,894 Maturities of long-term debt in the next five fiscal years, and the remaining years thereafter, are as follows: (in thousands) 2020 $ 150,942 2021 631 2022 648 2023 533 2024 300 Thereafter 600,046 Total $ 753,100 Long-Term Debt On September 26, 2014, Worthington Aritas executed a five-year term loan denominated in Euros, with interest at a variable rate based on EURIBOR. On October 15, 2014, we entered into an interest rate swap to fix the interest rate on 60% of the borrowings outstanding under this facility at 2.015% starting on December 26, 2014. Borrowings against the facility were used for the construction of a cryogenics manufacturing facility in Turkey. In anticipation of the planned sale of the Company’s cryogenics business in Turkey, the Company paid off this term loan and settled the derivative instrument for an immaterial loss during the fourth quarter of fiscal 2018. On July 28, 2017, we issued $200,000,000 aggregate principal amount of senior unsecured notes due August 1, 2032 (the “2032 Notes”). The 2032 Notes bear interest at a rate of 4.300%. The 2032 Notes were sold to the public at 99.901% of the principal amount thereof, to yield 4.309% to maturity. We used a portion of the net proceeds from the offering to repay amounts then outstanding under our multi-year revolving credit facility and amounts then outstanding under our revolving trade accounts receivable securitization facility, both of which are described in more detail below. We entered into an interest rate swap in June 2017, in anticipation of the issuance of the 2032 Notes. The interest rate swap had a notional amount of $150,000,000 to hedge the risk of changes in the semi-annual interest rate payments attributable to changes in the benchmark interest rate during the several days leading up to the issuance of the 2032 Notes. Upon pricing of the 2032 Notes, the derivative instrument was settled resulting in a gain of approximately $3,098,000, which was reflected in AOCI. Approximately $2,116,000 and $198,000 were allocated to debt issuance costs and the debt discount, respectively. The debt issuance costs and the debt discount were recorded on the consolidated balance sheet within long-term debt as a contra-liability. Each will continue to be amortized, through interest expense, in our consolidated statements of earnings over the term of the 2032 Notes. On April 15, 2014, we issued $250,000,000 aggregate principal amount of unsecured senior notes due on April 15, 2026 (the “2026 Notes”). The 2026 Notes bear interest at a rate of 4.55%. The 2026 Notes were sold to the public at 99.789% of the principal amount thereof, to yield 4.573% to maturity. We used a portion of the net proceeds from the offering to repay borrowings then outstanding under our revolving credit facilities AOCI and $1,488,000 and $344,000, respectively, at May 31, 2018 On August 10, 2012, we issued $150,000,000 aggregate principal amount of unsecured senior notes due August 10, 2024 (the “2024 Notes”). The 2024 Notes bear interest at a rate of 4.60%. The net proceeds from this issuance were used to repay a portion of the then outstanding borrowings under our revolving credit facilities. Approximately $80,000 of the aggregate proceeds were allocated to debt issuance costs. The unamortized portion of the debt issuance costs was $35,000 and $41,000 at May 31, 2019 and 2018, respectively. On April 27, 2012, we executed a $5,880,000 seven-year term loan that matured on May 1, 2019 and required monthly payments of $76,350. The loan bore interest at a rate of 2.49% and was secured by an aircraft that was purchased with its proceeds. Borrowings outstanding totaled $829,000 as of May 31, 2018 On April 13, 2010, we issued $150,000,000 aggregate principal amount of unsecured senior notes due on April 15, 2020 (the “2020 Notes”). The 2020 Notes bear interest at a rate of 6.50%. The 2020 Notes were sold to the public at 99.890% of the principal amount thereof, to yield 6.515% to maturity. We used the net proceeds from the offering to repay a portion of the then outstanding borrowings under our revolving credit facilities. Approximately $1,358,000, $1,486,000 and $165,000 were allocated to the settlement of a derivative contract entered into in anticipation of the issuance of the 2020 Notes, debt issuance costs, and the debt discount. The debt discount and debt issuance costs were recorded on the consolidated balance sheets within long-term debt as a contra-liability, and the loss on the derivative contract within AOCI and $272,000 and $30,000, respectively, at May 31, 2018 Other Financing Arrangements We maintain a $50,000,000 revolving trade accounts receivable securitization facility (the “AR Facility”). On January 15, 2019, the Company extended the maturity by one year to January 2020. Pursuant to the terms of the AR Facility, certain of our subsidiaries sell their accounts receivable without recourse, on a revolving basis, to Worthington Receivables Corporation (“WRC”), a wholly-owned, consolidated, bankruptcy-remote subsidiary. In turn, WRC may sell without recourse, on a revolving basis, up to $50,000,000 of undivided ownership interests in this pool of accounts receivable to a third-party bank. We retain an undivided interest in this pool and are subject to risk of loss based on the collectability of the receivables from this retained interest. Because the amount eligible to be sold excludes receivables more than 90 days past due, receivables offset by an allowance for doubtful accounts due to bankruptcy or other cause, concentrations over certain limits with specific customers and certain reserve amounts, we believe additional risk of loss is minimal. As of May 31, 2019, no undivided ownership interests in this pool of accounts receivable had been sold. Facility fees of $202,000, $383,000, and $354,000 were recognized within interest expense during fiscal 2019, fiscal 2018 and fiscal 2017, respectively. We also maintain a $500,000,000 multi-year revolving credit facility (the “Credit Facility”) with a group of lenders. On February 16, 2018, the Company amended the terms of the Credit Facility, extending the maturity by three years to February 2023. Debt issuance costs of $805,000 were incurred as a result of the renewal. These costs have been deferred and will be amortized over the life of the Credit Facility to interest expense. Borrowings under the Credit Facility have maturities of up to one year. We have the option to borrow at rates equal to an applicable margin over the LIBOR, Prime rate or Overnight Bank Funding rate. The applicable margin is determined by our credit rating. There were no borrowings outstanding under the Credit Facility at May 31, . As discussed in “Note G – Guarantees,” we provided |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Note I – Comprehensive Income (Loss) Other Comprehensive Income (Loss): The following table summarizes the tax effects of each component of other comprehensive income (loss) for the fiscal years ended May 31: 2019 2018 2017 (in thousands) Before- Tax Tax Net-of- Tax Before- Tax Tax Net-of- Tax Before -Tax Tax Net-of- Tax Foreign currency translation $ (14,772 ) $ - $ (14,772 ) $ 12,744 $ - $ 12,744 $ 1,342 $ - $ 1,342 Pension liability adjustment (2,203 ) 418 (1,785 ) 1,875 (309 ) 1,566 3,400 (1,158 ) 2,242 Cash flow hedges (16,227 ) 3,780 (12,447 ) 1,351 (392 ) 959 (4,522 ) 1,700 (2,822 ) Other comprehensive income (loss) $ (33,202 ) $ 4,198 $ (29,004 ) $ 15,970 $ (701 ) $ 15,269 $ 220 $ 542 $ 762 Accumulated Other Comprehensive Loss: The components of the changes in accumulated other comprehensive loss for the fiscal years ended May 31, 2019 and May 31, 2018 were as follows: Accumulated Foreign Pension Cash Other Currency Liability Flow Comprehensive (in thousands) Translation Adjustment Hedges Loss Balance at May 31, 2017 $ (17,358 ) $ (14,819 ) $ 4,402 $ (27,775 ) Other comprehensive income before reclassifications 12,371 1,402 14,980 28,753 Reclassification adjustments to income (a) - 473 (13,629 ) (13,156 ) Reclassification of stranded tax effects - (2,818 ) 1,117 (1,701 ) Income tax effect - (309 ) (392 ) (701 ) Balance at May 31, 2018 $ (4,987 ) $ (16,071 ) $ 6,478 $ (14,580 ) Other comprehensive loss before reclassifications (14,652 ) (3,404 ) (12,637 ) (30,693 ) Reclassification adjustments to income (a) - 1,201 (3,590 ) (2,389 ) Income tax effect - 418 3,780 4,198 Balance at May 31, 2019 $ (19,639 ) $ (17,856 ) $ (5,969 ) $ (43,464 ) (a) The statement of earnings classification of amounts reclassified to income for cash flow hedges is disclosed in “Note Q – Derivative Instruments and Hedging Activities.” |
Equity
Equity | 12 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Equity | Note J – Equity Preferred Shares: The Worthington Industries, Inc. Amended Articles of Incorporation authorize two classes of preferred shares and their relative voting rights. The Board of Directors of Worthington Industries, Inc. is empowered to determine the issue prices, dividend rates, amounts payable upon liquidation and other terms of the preferred shares when issued. No preferred shares are issued or outstanding. Common Shares : O n September 27, 2017, the Board of Directors of Worthington Industries, Inc. (the “Worthington Industries Board”) authorized the repurchase of up to 6,828,855 outstanding common shares of Worthington Industries, Inc., and on March 20, 2019, the Worthington Industries Board authorized the repurchase of up to an additional 6,600,000 of the outstanding common shares of Worthington Industries, Inc. These common shares may be purchased from time to time, with consideration given to the market price of the common shares, the nature of other investment opportunities, cash flows from operations, general economic conditions and other relevant considerations. Repurchases may be made on the open market or through privately negotiated transactions. The total number of common shares available for repurchase at May 31, 2019 was 9,000,000 . During fiscal 2019 and 2018, we repurchased 4,100,000 common shares and 4,375,000 common shares, respectively, having an aggregate cost of $168,113,000 and $204,267,000, respectively. No common shares were repurchased during fiscal 2017 in anticipation of the AMTROL acquisition. For additional information refer to “Note P – Acquisitions”. On October 1, 2014, the Company amended its non-qualified deferred compensation plans for employees to require that any portion of a participant’s current account credited to the theoretical common share option, which reflects the fair value of the Company’s common shares with dividends reinvested, and any new contributions credited to the theoretical common share option remain credited to the theoretical common share option until distributed. For amounts credited to the theoretical common share option, payouts are required to be made in the form of whole common shares of the Company and cash in lieu of fractional common shares. As a result, we account for the deferred compensation obligation credited to the theoretical common share option within equity. The amounts recorded in equity totaled $680,000 and $1,218,000 during fiscal 2019 and fiscal 2018, respectively. Prior to October 1, 2014, participant accounts credited to the theoretical common share option were settled in cash and classified as a liability in the Company’s consolidated balance sheets. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
May 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | Note K – Stock-Based Compensation Under our employee and non-employee director stock-based compensation plans (the “Plans”), we may grant incentive or non-qualified stock options, restricted common shares and performance shares to employees and non-qualified stock options and restricted common shares to non-employee directors. We classify share-based compensation expense within SG&A expense to correspond with the same financial statement caption as the majority of the cash compensation paid to employees. A total of 2,655,478 of our common shares were authorized and available for issuance in connection with the Plans in place at May 31, 2019. We recognized pre-tax stock-based compensation expense of $11,733,000 ($9,034,000 after-tax), $13,758,000 ($9,482,000 after-tax), and $14,349,000 ($9,112,000 after-tax) under the Plans during fiscal 2019, fiscal 2018 and fiscal 2017 Non-Qualified Stock Options Stock options may be granted to purchase common shares at not less than 100% of the fair market value of the underlying common shares on the date of the grant. All outstanding stock options are non-qualified stock options. The exercise price of all stock options granted has been set at 100% of the fair market value of the underlying common shares on the date of grant. Generally, stock options granted to employees vest and become exercisable at the rate of (i) 20% per year for options issued before June 30, 2011, and (ii) 33% per year for options issued on or after June 30, 2011, in each case beginning one year from the date of grant, and expire ten years after the date of grant. Non-qualified stock options granted to non-employee directors vest and become exercisable on the earlier of (a) the first anniversary of the date of grant or (b) the date on which the next annual meeting of shareholders is held following the date of grant for any stock option granted as of the date of an annual meeting of shareholders of Worthington Industries, Inc. Stock options can be exercised through net-settlement, at the election of the option holder. U.S. GAAP requires that all share-based awards be recorded as expense in the statement of earnings based on their grant-date fair value. We calculate the fair value of our non-qualified stock options using the Black-Scholes option pricing model and certain assumptions. The computation of fair values for all stock options incorporates the following assumptions: expected volatility (based on the historical volatility of our common shares); risk-free interest rate (based on the United States Treasury strip rate for the expected term of the stock options); expected term (based on historical exercise experience); and dividend yield (based on annualized current dividends and an average quoted price of our common shares over the preceding annual period). The table below sets forth the non-qualified stock options granted during each of the last three fiscal years. For each grant, the exercise price was equal to the closing market price of the underlying common shares at each respective grant date. The fair values of these stock options were based on the Black-Scholes option pricing model, calculated at the respective grant dates. The calculated pre-tax stock-based compensation expense for these stock options, will be recognized on a straight-line basis over the respective vesting periods of the stock options. (in thousands, except per share amounts) 2019 2018 2017 Granted 96 90 111 Weighted average exercise price, per share $ 42.86 $ 47.76 $ 42.30 Weighted average grant date fair value, per share $ 12.54 $ 14.99 $ 11.60 Pre-tax stock-based compensation, net of forfeitures $ 1,199 $ 1,203 $ 1,146 The weighted average fair value of stock options granted in fiscal 2019, fiscal 2018 and fiscal 2017 2019 2018 2017 Assumptions used: Dividend yield 2.02 % 1.81 % 2.59 % Expected volatility 33.09 % 36.65 % 36.86 % Risk-free interest rate 2.79 % 1.98 % 1.15 % Expected life (years) 6.0 6.0 6.0 The following tables summarize our stock option activity for the years ended May 31: 2019 2018 2017 (in thousands, except per share amounts) Stock Options Weighted Average Exercise Price Stock Options Weighted Average Exercise Price Stock Options Weighted Average Exercise Price Outstanding, beginning of year 2,019 $ 22.26 2,307 $ 20.99 3,306 $ 19.01 Granted 96 42.86 90 47.76 111 42.30 Exercised (506 ) 18.45 (371 ) 20.37 (1,076 ) 16.90 Forfeited (54 ) 44.31 (7 ) 33.02 (34 ) 29.95 Outstanding, end of year 1,555 24.01 2,019 22.26 2,307 20.99 Exercisable at end of year 1,397 21.96 1,800 20.03 2,067 19.17 Weighted Average Number of Remaining Aggregate Stock Contractual Intrinsic Options Life Value (in thousands) (in years) (in thousands) May 31, 2019 Outstanding 1,555 3.15 $ 18,728 Exercisable 1,397 2.62 $ 18,728 May 31, 2018 Outstanding 2,019 3.59 $ 51,858 Exercisable 1,800 3.06 $ 50,673 May 31, 2017 Outstanding 2,307 3.95 $ 48,509 Exercisable 2,067 3.47 $ 47,488 The total intrinsic value of stock options exercised during fiscal 2019 was $6,314,000. The total amount of cash received from the exercise of stock options during fiscal 2019 was $5,085,000, and the related excess tax benefit realized from share-based payment awards was $2,792,000. The following table summarizes information about non-vested stock option awards for the year ended May 31, 2019: Weighted Average Number of Grant Date Stock Options Fair Value (in thousands) per share Non-vested, beginning of year 219 $ 11.55 Granted 96 12.55 Vested (103 ) 10.75 Forfeited (54 ) 12.70 Non-vested, end of year 158 $ 12.26 Service-Based Restricted Common Shares We have awarded restricted common shares to certain employees and non-employee directors that contain service-based vesting conditions. Service-based restricted common shares granted to employees cliff vest generally three years from the date of grant. Service-based restricted common shares granted to non-employee directors vest under the same parameters as discussed above. All service-based restricted common shares are valued at the closing market price of our common shares on the date of the grant. The table below sets forth the service-based 2017 (in thousands, except per share amounts) 2019 2018 2017 Granted 339 176 525 Weighted average grant date fair value, per share $ 43.35 $ 47.88 $ 42.28 Pre-tax stock-based compensation, net of forfeitures $ 14,692 $ 7,605 $ 19,841 The following tables summarize the activity for our service-based 2019 2018 2017 (in thousands, except per share amounts) Restricted Common Shares Weighted Average Grant Date Fair Value Restricted Common Shares Weighted Average Grant Date Fair Value Restricted Common Shares Weighted Average Grant Date Fair Value Outstanding, beginning of year 796 $ 40.80 865 $ 39.49 698 $ 33.69 Granted 339 43.35 176 47.88 525 42.28 Vested (229 ) 34.63 (205 ) 40.96 (310 ) 31.81 Forfeited (95 ) 43.83 (40 ) 41.58 (48 ) 38.82 Outstanding, end of year 811 43.25 796 40.80 865 39.49 Weighted average remaining contractual life of outstanding restricted common shares (in years) 1.21 1.21 1.57 Aggregate intrinsic value of outstanding restricted common shares $ 27,681 $ 38,160 $ 36,298 Aggregate intrinsic value of restricted common shares vested during the year $ 10,388 $ 10,330 $ 12,840 Market-Based Restricted Common Shares On June 24, 2014, we granted an aggregate of 50,000 market-based restricted common shares to two key employees under one of our Plans. Vesting of these restricted common share awards is contingent upon the price of our common shares reaching $60.00 per share and remaining at or above that price for 30 consecutive days during the five-year period following the date of grant and the completion of a five-year service vesting period. The grant-date fair value of these restricted common shares, as determined by a Monte Carlo simulation model, was $32.06 per share. The following assumptions were used to determine the grant-date fair value and the derived service period for these market-based restricted common shares: Dividend yield 1.60 % Expected volatility 44.00 % Risk-free interest rate 1.70 % The calculated pre-tax stock-based compensation expense was determined to be $1,603,000. In fiscal 2016, 25,000 of these shares were cancelled. On September 26, 2018, the remaining market-based restricted common share award was modified to extend the vesting period by one year, to June 24, 2020. The incremental fair value was $261,000 and is being recognized on a straight-line basis over the remaining term. At May 31, 2019, the remaining 25,000 market-based restricted common share award was outstanding. On September 28, 2018, we granted an aggregate 225,000 restricted common shares to two key employees under our Plans. Vesting of these restricted common share awards is contingent upon the price of our common shares reaching $65.00 per share and remaining at or above that price for 90 consecutive days during the five-year period following the date of grant and the completion of a five-year service vesting period. The grant-date fair value of these restricted common shares, as determined by a Monte Carlo simulation model, was $23.38 per share. The following assumptions were used to determine the grant-date fair value and the derived service period for these restricted common shares: Dividend yield 2.16 % Expected volatility 33.60 % Risk-free interest rate 2.96 % The calculated pre-tax stock-based compensation expense for these restricted common shares is $5,261,000 and will be recognized on a straight-line basis over the five-year service vesting period, net of any forfeitures. Performance Shares We have awarded performance shares to certain key employees that are contingent (i.e., vest) upon achieving corporate targets for cumulative corporate economic value added, earnings per share growth and, in the case of business unit executives, business unit operating income targets for the three-year periods ended or ending May 31, 2019, 2020 and 2021. These performance share awards will be paid, to the extent earned, in common shares of Worthington Industries, Inc. in the fiscal quarter following the end of the applicable three-year performance period. The fair value of our performance shares is determined by the closing market prices of the underlying common shares at their respective grant dates and the pre-tax stock-based compensation expense is based on our periodic assessment of the probability of the targets being achieved and our estimate of the number of common shares that will ultimately be issued. The table below sets forth the performance shares we granted (at target levels) during fiscal 2019, fiscal 2018 and fiscal 2017 (in thousands, except per share amounts) 2019 2018 2017 Granted 43 54 67 Weighted average grant date fair value, per share $ 42.91 $ 50.61 $ 44.91 Pre-tax stock-based compensation $ 1,854 $ 2,748 $ 2,995 |
Employee Pension Plans
Employee Pension Plans | 12 Months Ended |
May 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Pension Plans | Note L – Employee Pension Plans We provide retirement benefits to employees mainly through defined contribution retirement plans. Eligible participants make pre-tax contributions based on elected percentages of eligible compensation, subject to annual addition and other limitations imposed by the Internal Revenue Code and the various plans’ provisions. Company contributions consist of company matching contributions, annual or monthly employer contributions and discretionary contributions, based on individual plan provisions. We also have one defined benefit plan, The Gerstenslager Company Bargaining Unit Employees’ Pension Plan (the “Gerstenslager Plan” or “defined benefit plan”). The Gerstenslager Plan is a non‑contributory pension plan, which covers certain employees based on age and length of service. Our contributions have complied with ERISA's minimum funding requirements. Effective May 9, 2011, in connection with the formation of the ArtiFlex joint venture, the Gerstenslager Plan was frozen, which qualified as a curtailment under the applicable accounting guidance. We did not recognize a gain or loss in connection with the curtailment of the Gerstenslager Plan. During fiscal 2019, the Gerstenslager Plan was amended to allow certain inactive participants to take a lump sum. The following table summarizes the components of net periodic pension cost for the defined benefit plan and the defined contribution plans for the years ended May 31: (in thousands) 2019 2018 2017 Defined benefit plan: Interest cost $ 1,503 $ 1,522 $ 1,527 Return on plan assets (532 ) (1,361 ) (2,224 ) Net amortization and deferral (918 ) (20 ) 1,025 Net periodic pension cost on defined benefit plan 53 141 328 Settlement cost 760 - - Defined contribution plans 16,308 14,972 14,542 Total retirement plan cost $ 17,121 $ 15,113 $ 14,870 The following actuarial assumptions were used for our defined benefit plan: 2019 2018 2017 To determine benefit obligation: Discount rate 3.57 % 4.02 % 3.94 % To determine net periodic pension cost: Discount rate 4.02 % 3.94 % 3.75 % Expected long-term rate of return 7.00 % 7.00 % 7.00 % To calculate the discount rate we used the expected cash flows of the benefit payments and the FTSE Pension Index (formerly Citigroup). The Gerstenslager Plan’s expected long-term rate of return in fiscal 2019, fiscal 2018 and fiscal 2017 The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of plan assets and the funded status of the Gerstenslager Plan as of, and for the fiscal years ended May 31: (in thousands) 2019 2018 Change in benefit obligation Benefit obligation, beginning of year $ 38,010 $ 39,174 Interest cost 1,503 1,522 Actuarial (gain) loss 1,868 (1,516 ) Benefits paid (1,201 ) (1,170 ) Settlements (1,661 ) - Benefits obligation, end of year $ 38,519 $ 38,010 Change in plan assets Fair value, beginning of year $ 27,212 $ 27,022 Return on plan assets 532 1,361 Company contributions 1,376 - Benefits paid (1,201 ) (1,171 ) Settlements (1,661 ) - Fair value, end of year 26,258 27,212 Funded status $ (12,261 ) $ (10,798 ) Amounts recognized in the consolidated balance sheets consist of: Other liabilities $ (12,261 ) $ (10,798 ) Accumulated other comprehensive loss 18,370 16,343 Amounts recognized in accumulated other comprehensive loss consist of: Net loss 18,370 16,343 Total $ 18,370 $ 16,343 The following table shows other changes in plan assets and benefit obligations recognized in OCI during the fiscal years ended May 31: (in thousands) 2019 2018 Net gain (loss) $ (3,227 ) $ 1,023 Amortization of net loss 441 473 Extraordinary charges 759 - Total recognized in other comprehensive income (loss) $ (2,027 ) $ 1,496 Total recognized in net periodic benefit cost and other comprehensive income $ 2,839 $ 1,355 The estimated net loss for the defined benefit plan that will be amortized from AOCI into net periodic pension cost during fiscal 2020 is $553,000. Pension plan assets are required to be disclosed at fair value in the consolidated financial statements. Fair value is defined in “Note R – Fair Value Measurements.” The pension plan assets’ fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value on a recurring basis at May 31, 2019: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (level 3) Investment: Money market funds $ 3,109 $ 3,109 $ - $ - Bond funds 11,865 11,865 - - Equity funds 11,284 11,284 - - Total $ 26,258 $ 26,258 $ - $ - The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value on a recurring basis at May 31, 2018: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (level 3) Investment: Money market funds $ 291 $ 291 $ - $ - Bond funds 14,887 14,887 - - Equity funds 12,034 12,034 - - Total $ 27,212 $ 27,212 $ - $ - Fair values of the money market, bond and equity funds held by the defined benefit plan were determined by quoted market prices. Plan assets for the defined benefit plan consisted principally of the following as of the respective measurement dates: May 31, May 31, 2019 2018 Asset category: Equity securities 43 % 44 % Debt securities 45 % 55 % Other 12 % 1 % Total 100 % 100 % Equity securities include no employer stock. The investment policy and strategy for the defined benefit plan is: (i) long-term in nature with liquidity requirements that are anticipated to be minimal due to the projected normal retirement date of the average employee and the current average age of participants; (ii) to earn nominal returns, net of investment fees, equal to or in excess of the defined benefit plan’s liability growth rate; and (iii) to include a diversified asset allocation of domestic and international equities and fixed income investments. We have already contributed $142,000 in fiscal 2020 and have 11 contributions planned for fiscal 2020 totaling $1,558,000. The following estimated future benefits, which reflect expected future service, as appropriate, are expected to be paid under the defined benefit plan during the fiscal years noted: (in thousands) 2020 $ 1,293 2021 $ 1,322 2022 $ 1,405 2023 $ 1,486 2024 $ 1,556 2025-2029 $ 9,273 Commercial law requires us to pay severance and service benefits to employees at our Austrian Pressure Cylinders location. Severance benefits must be paid to all employees hired before December 31, 2002. Employees hired after that date are covered under a governmental plan that requires us to pay benefits as a percentage of compensation (included in payroll tax withholdings). Service benefits are based on a percentage of compensation and years of service. The accrued liability for these unfunded plans was $7,009,000 and $6,561,000 at May 31, 2019 and 2018, respectively, and was included in other liabilities on the consolidated balance sheets. Net periodic pension cost for these plans was $925,000, $601,000, and $554,000, for fiscal 2019, fiscal 2018 and fiscal 2017 2017 2017 |
Income Taxes
Income Taxes | 12 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note M – Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act “(TCJA”) was signed into federal law. The TCJA significantly revised the U.S. corporate income tax system by lowering the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. In addition, the TCJA added several new provisions including changes to bonus depreciation, the deduction for executive compensation, a tax on global intangible low-taxed income (“GILTI”), the base erosion anti-abuse tax (“BEAT”) and a deduction for foreign-derived intangible income (“FDII”). Many of these provisions, including the tax on GILTI, the BEAT and the deduction for FDII, did not apply to the Company until June 1, 2018. The Company has elected to account for the tax on GILTI as a period cost and thus has not adjusted any of the deferred tax assets and liabilities of its foreign subsidiaries for the new tax. The two material items that impacted the Company for fiscal 2018 were the reduction in the tax rate and a one-time mandatory deemed repatriation tax imposed on the Company’s unremitted foreign earnings. Due to the Company’s fiscal year, the Company’s fiscal 2018 U.S. federal blended statutory income tax rate was 29.2%. The Company’s U.S. federal statutory income tax rate is 21.0% starting June 1, 2018. Consistent with applicable Securities and Exchange Commission guidance in Staff Accounting Bulletin 118 (“SAB118”), the Company recognized a provisional income tax benefit of $38,200,000 related to the re-measurement of deferred tax assets and liabilities and a provisional income tax expense of $6,900,000 for the one-time mandatory deemed repatriation tax during fiscal 2018. During fiscal 2019, the Company finalized the accounting for the TCJA and made no material adjustments to these provisional amounts. Earnings before income taxes for the three fiscal years ended May 31 include the following components: (in thousands) 2019 2018 2017 United States based operations $ 173,200 $ 177,088 $ 266,222 Non – United States based operations 33,256 31,982 30,905 Earnings before income taxes 206,456 209,070 297,127 Less: Net earnings attributable to noncontrolling interests* 9,818 6,056 13,422 Earnings before income taxes attributable to controlling interest $ 196,638 $ 203,014 $ 283,705 * Net earnings attributable to noncontrolling interests are not taxable to Worthington. Significant components of income tax expense (benefit) for the fiscal years ended May 31 were as follows: (in thousands) 2019 2018 2017 Current Federal $ 15,454 $ 33,261 $ 50,200 State and local 2,309 3,292 2,954 Foreign 7,985 9,904 7,593 25,748 46,457 60,747 Deferred Federal 18,195 (34,442 ) 18,177 State and local 1,621 388 476 Foreign (2,381 ) (4,183 ) (210 ) 17,435 (38,237 ) 18,443 $ 43,183 $ 8,220 $ 79,190 The tax benefit related to the purchase of the noncontrolling interest in dHybrid Systems, LLC credited to additional paid-in capital was $539,000 for fiscal 2017. Tax benefits (expenses) related to defined benefit pension liability that were credited to (deducted from) OCI were $418,000, $(309,000), and $(1,158,000) for fiscal 2019, fiscal 2018 and fiscal 2017 2017 A reconciliation of the federal statutory corporate income tax rate to total tax provision follows: 2019 2018 2017 Federal statutory corporate income tax rate 21.0 % 29.2 % 35.0 % State and local income taxes, net of federal tax benefit 2.1 2.3 1.5 Non-U.S. income taxes at other than federal statutory rate 0.2 (1.4 ) (1.4 ) Qualified production activities deduction - (2.3 ) (1.9 ) Impact of tax reform (1) - (15.4 ) - Worthington Aritas write down - (4.8 ) - Excess benefit related to share-based payment awards (1.4 ) (2.0 ) (5.7 ) AMTROL acquisition - (1.9 ) - Other 0.1 0.3 0.4 Effective tax rate attributable to controlling interest 22.0 % 4.0 % 27.9 % (1) Amount reflects the impact of the re-measurement of the Company’s deferred tax balances at the lower federal statutory corporate income tax rate, net of the mandatory deemed repatriation tax on unremitted foreign earnings. The above effective tax rate attributable to controlling interest excludes any impact from the inclusion of net earnings attributable to noncontrolling interests in our consolidated statements of earnings. The effective tax rates upon inclusion of net earnings attributable to noncontrolling interests were 20.9%, 3.9% and 26.7% for fiscal 2019, fiscal 2018 and fiscal 2017 Under applicable accounting guidance, a tax benefit may be recognized from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, including resolution of any related appeals or litigation processes, based on the technical merits of the position. Any tax benefits recognized in our financial statements from such a position were measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. The total amount of unrecognized tax benefits were $1,621,000, $2,638,000, and $2,975,000 as of May 31, 2019, 2018 and 2017 2017 A tabular reconciliation of unrecognized tax benefits follows: (In thousands) Balance at May 31, 2018 $ 2,638 Decreases - tax positions taken in prior years (96 ) Increases - tax positions taken in prior years 41 Increases - current tax positions 43 Settlements (831 ) Lapse of statutes of limitations (174 ) Balance at May 31, 2019 $ 1,621 Approximately $1,000,000 of the liability for unrecognized tax benefits is expected to be settled in the next twelve months due to the expiration of statutes of limitations in various tax jurisdictions and as a result of expected settlements with various tax jurisdictions. While it is expected that the amount of unrecognized tax benefits will change in the next twelve months, any change is not expected to have a material impact on our consolidated financial position, results of operations or cash flows. The following is a summary of the tax years open to examination by major tax jurisdiction: U.S. Federal –2015 and forward U.S. State and Local –2014 and forward Austria – 2016 and forward Canada –2015 and forward Mexico – 2014 and forward Portugal – 2015 and forward The components of our deferred tax assets and liabilities as of May 31 were as follows: (in thousands) 2019 2018 Deferred tax assets Accounts receivable $ 1,516 $ 1,455 Inventories 5,649 5,004 Accrued expenses 21,195 23,219 Net operating loss carry forwards 16,433 14,201 Stock-based compensation 10,989 10,588 Derivative contracts 2,054 - Other 316 1,313 Total deferred tax assets 58,152 55,780 Valuation allowance for deferred tax assets (14,619 ) (14,006 ) Net deferred tax assets 43,533 41,774 Deferred tax liabilities Property, plant and equipment (91,732 ) (74,512 ) Investment in affiliated companies, principally due to undistributed earnings (23,035 ) (22,918 ) Derivative contracts - (2,653 ) Other (2,868 ) (1,879 ) Total deferred tax liability (117,635 ) (101,962 ) Net deferred tax liability $ (74,102 ) $ (60,188 ) At May 31, 2019, we had tax benefits for state net operating loss carry forwards of $10,745,000 that expire from fiscal 2021 to the fiscal year ending May 31, 2039, and tax benefits for foreign net operating loss carry forwards of $5,688,000 that expire from fiscal 2020 to the fiscal year ending May 31, 2025. The valuation allowance for deferred tax assets of $14,619,000 at May 31, 2019 is associated primarily with the net operating loss carry forwards. The valuation allowance includes $9,341,000 for state and $5,278,000 for foreign deferred tax assets. The majority of the state valuation allowance relates to our facility in Decatur, Alabama. The foreign valuation allowance relates to the Company’s operations in Turkey. Based on our history of profitability, the scheduled reversal of deferred tax liabilities, and taxable income projections, we have determined that it is more likely than not that the remaining deferred tax assets are otherwise realizable. |
Earnings per Share
Earnings per Share | 12 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note N – Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share for the fiscal years ended May 31: (in thousands, except per share amounts) 2019 2018 2017 Numerator (basic & diluted): Net earnings attributable to controlling interest - income available to common shareholders $ 153,455 $ 194,794 $ 204,515 Denominator: Denominator for basic earnings per share attributable to controlling interest - weighted average common shares 57,196 60,923 62,443 Effect of dilutive securities 1,627 2,119 2,431 Denominator for diluted earnings per share attributable to controlling interest - adjusted weighted average common shares 58,823 63,042 64,874 Basic earnings per share attributable to controlling interest $ 2.68 $ 3.20 $ 3.28 Diluted earnings per share attributable to controlling interest $ 2.61 $ 3.09 $ 3.15 Stock options covering 313,144, 188,504, and 100,048 common shares for fiscal 2019, fiscal 2018 and fiscal 2017 |
Segment Data
Segment Data | 12 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Data | Note O – Segment Data Our operations are managed principally on a products and services basis and include three reportable business segments: Steel Processing, Pressure Cylinders and Engineered Cabs, each of which is comprised of a similar group of products and services. Factors used to identify reportable business 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 guidance. A discussion of each of our reportable business segments is outlined below. Effective June 1, 2017, we made certain organizational changes impacting the internal reporting and management structure of Worthington Steelpac Systems, LLC (“Packaging Solutions”). As a result of these organizational changes, management responsibilities and internal reporting were realigned, moving Packaging Solutions from the Steel Processing operating segment to the Engineered Cabs operating segment. Previously reported segment information has not been restated to conform to this new presentation and is immaterial for all periods presented. Steel Processing : The Steel Processing reportable segment consists of the Worthington Steel business unit and three consolidated joint ventures: Spartan, TWB and WSP. Spartan operates a cold-rolled, hot-dipped galvanizing line and TWB operates a laser welded blanking business. WSP serves primarily as a toll processor for United States Steel Corporation and others. Its services include slitting, blanking, cutting-to-length, laser blanking, laser welding, tension leveling and warehousing. Worthington Steel is an intermediate processor of flat-rolled steel. This operating segment’s processing capabilities include cold reducing, configured blanking, coil fed laser blanking, cutting-to-length, dry-lube, hot-dipped galvanizing, hydrogen annealing, laser welding, pickling, slitting, oscillate slitting, 2017 , respectively. Pressure Cylinders : The Pressure Cylinders reportable segment consists of the Worthington Cylinders business unit. During the fourth quarter of fiscal 2018, management committed to a plan to sell the Company’s cryogenics business in Turkey and the net assets of the asset group have been presented separately as assets held for sale in our consolidated balance sheets. The percentage of our consolidated net sales generated by the Pressure Cylinders reportable segment was approximately 32%, 34% and 28% in fiscal 2019, fiscal 2018 and fiscal 2017 , respectively. We acquired AMTROL on June 2, 2017, which has been included in the Pressure Cylinders reportable segment since that date, and accounted for approximately 7% of our consolidated net sales in both fiscal 2019 and fiscal 2018. The Pressure Cylinders reportable segment manufactures and sells filled and unfilled pressure cylinders, tanks, hand torches, well water and expansion tanks, and oil and gas equipment along with various accessories and related products for diversified end-use market applications. The following is a description of these markets: • Industrial Products: This market sector includes high pressure and acetylene cylinders for industrial gases, refrigerant and certain propane gas (LPG) cylinders, alternative fuels, cryogenic equipment, and systems and services for handling liquid gasses, and other specialty products. Cylinders in this market sector are generally sold to gas producers, cylinder exchangers and industrial distributors. Industrial gas cylinders hold fuel for uses such as cutting, brazing and soldering, semiconductor production, and beverage delivery. Refrigerant gas cylinders are used to hold refrigerant gases for commercial, residential and automotive air conditioning and refrigeration systems. LPG cylinders hold fuel for barbeque grills, recreational vehicle equipment, residential and light commercial heating systems, industrial forklifts and commercial/residential cooking (the latter, generally outside North America). Alternative fuels includes composite and steel cylinders used to hold CNG and hydrogen for automobiles, buses, and light-duty trucks, and to hold propane/autogas for automobiles and light- and medium-duty trucks. Cryogenic equipment and systems include LNG systems for marine and mining applications, liquid nitrogen storage freezers and shipping containers for organic specimens in healthcare markets, and tanks and trailers for liquefied nitrogen, oxygen, argon, hydrogen, and natural gas. Specialty products include a variety of fire suppression, life support and chemical tanks. • Consumer Products: This market sector includes propane-filled cylinders for torches, camping stoves and other applications, hand held torches, Balloon Time® helium-filled balloon kits, plumbing tools, well water tanks and expansion tanks. These products are sold primarily to mass merchandisers, retailers and distributors. • Oil & Gas Equipment: This market sector includes steel storage tanks, separation equipment, controls and other products primarily used in the energy markets, including oil and gas and nuclear. This market sector also includes hoists and other marine products which are used principally in shipyard lift systems. Engineered Cabs: The Engineered Cabs reportable segment consists of the Worthington Industries Engineered Cabs business unit, a non-captive designer and manufacturer of high-quality, custom-engineered open and enclosed cabs and operator stations and custom fabrications for heavy mobile equipment used primarily in the agricultural, construction, forestry, military and mining industries. Engineered Cabs’ product design, engineering support and broad manufacturing capabilities enable it to produce cabs and structures used in products ranging from small utility equipment to large earthmovers. Engineered Cabs also includes Packaging Solutions, effective June 1, 2017. Packaging Solutions designs and manufactures reusable custom steel platforms, racks and pallets for supporting, protecting and handling products throughout the shipping process. For each fiscal 2019, fiscal 2018 and fiscal 2017, the percentage of our consolidated net sales generated by the Engineered Cabs reportable segment was approximately 3%. Other: Certain income and expense items not allocated to our operating segments are included in Other, including costs associated with our captive insurance company. The Other category also included the former WEI operating segment, through March 31, 2018 when we disposed of 65% of our 75% stake in the business effective March 31, 2018. The accounting policies of the reportable business segments and other operating segments are described in “Note A – Summary of Significant Accounting Policies.” The following table presents summarized financial information for our reportable business segments as of, and for the fiscal years ended, May 31: (in thousands) 2019 2018 2017 Net sales Steel Processing $ 2,435,818 $ 2,252,771 $ 2,074,869 Pressure Cylinders 1,207,798 1,206,183 829,846 Engineered Cabs 115,902 116,631 101,388 Other 38 6,035 8,005 Total net sales $ 3,759,556 $ 3,581,620 $ 3,014,108 Operating income (loss) Steel Processing $ 89,761 $ 152,690 $ 170,481 Pressure Cylinders 69,872 23,396 54,098 Engineered Cabs (14,664 ) (11,305 ) (7,685 ) Other (205 ) (23,171 ) (3,773 ) Total operating income $ 144,764 $ 141,610 $ 213,121 Depreciation and amortization Steel Processing $ 40,374 $ 43,331 $ 42,861 Pressure Cylinders 42,403 46,691 31,052 Engineered Cabs 5,687 5,415 5,197 Other 7,138 7,922 7,683 Total depreciation and amortization $ 95,602 $ 103,359 $ 86,793 Impairment of goodwill and long-lived assets Steel Processing $ 3,269 $ - $ - Pressure Cylinders 4,548 53,883 - Engineered Cabs - - - Other - 7,325 - Total impairment of goodwill and long-lived assets $ 7,817 $ 61,208 $ - Restructuring and other expense (income), net Steel Processing $ (9 ) $ (10,087 ) $ 1,828 Pressure Cylinders (11,009 ) 2,365 3,411 Engineered Cabs - (78 ) 1,219 Other - 379 (47 ) Total restructuring and other expense (income), net $ (11,018 ) $ (7,421 ) $ 6,411 Total assets Steel Processing $ 924,966 $ 999,238 $ 882,863 Pressure Cylinders 1,123,115 1,147,268 766,611 Engineered Cabs 66,226 66,456 62,141 Other 396,489 408,825 613,729 Total assets $ 2,510,796 $ 2,621,787 $ 2,325,344 Capital expenditures Steel Processing $ 39,114 $ 31,966 $ 40,775 Pressure Cylinders 37,558 32,697 24,798 Engineered Cabs 1,131 2,067 755 Other 6,696 9,358 2,058 Total capital expenditures $ 84,499 $ 76,088 $ 68,386 The following table presents net sales by geographic region for the fiscal years ended May 31: (in thousands) 2019 2018 2017 North America $ 3,559,650 $ 3,275,090 $ 2,805,182 International 199,906 306,530 208,926 Total $ 3,759,556 $ 3,581,620 $ 3,014,108 The following table presents property, plant and equipment, net, by geographic region as of May 31: (in thousands) 2019 2018 North America $ 514,519 $ 512,439 International 64,145 72,531 Total $ 578,664 $ 584,970 |
Acquisitions
Acquisitions | 12 Months Ended |
May 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note P – Acquisitions Magna Industries, Inc. On May 1, 2019, the Company acquired the net assets of Magna Industries, Inc., a Cleveland-based manufacturer of Mag-Torch® AMTROL On June 2, 2017, the Company acquired AMTROL, a leading manufacturer of pressure cylinders and water system tanks with operations in the U.S. and Europe. The total purchase price was $291,921,000, after adjusting for excess working capital, and was funded primarily with cash on hand. The net assets became part of the Pressure Cylinders operating segment at closing, with the well water and expansion tank operations aligning under the consumer products business and the refrigerant, liquid propane and industrial and specialty gas operations aligning under the industrial products business. Total acquisition-related expenses were $3,568,000, of which $1,568,000 were incurred during fiscal 2018. The assets acquired and liabilities assumed were recognized at their acquisition-date fair values, with goodwill representing the excess of the purchase price over the fair value of the net identifiable assets acquired. In connection with the acquisition, we identified and valued the following identifiable intangible assets: (in thousands) Useful Life Category Amount (Years) Customer relationships $ 90,800 14-17 Trade names 62,200 Indefinite Technology 13,000 15-16 Total acquired identifiable intangible assets $ 166,000 The purchase price includes the fair values of other assets that were not identifiable, not separately recognizable under accounting rules (e.g., assembled workforce) or of immaterial value. The purchase price also includes a going-concern element that represents our ability to earn a higher rate of return on this group of assets than would be expected on the separate assets as determined during the valuation process. This additional investment value resulted in goodwill, which is not expected to be deductible for income tax purposes. The following table summarized the consideration transferred for the assets of AMTROL and the fair value assigned to the assets acquired and liabilities assumed at the acquisition date: Measurement Preliminary Period Revised (in thousands) Valuation Adjustments Valuation Cash $ 6,893 $ - $ 6,893 Accounts receivable 40,212 - 40,212 Inventories 37,249 - 37,249 Prepaid expenses 981 - 981 Other assets 2,550 - 2,550 Intangible assets 166,000 - 166,000 Property, plant and equipment 52,870 - 52,870 Total assets 306,755 - 306,755 Accounts payable 25,945 - 25,945 Accrued liabilities 21,016 - 21,016 Long-term debt including current maturities 2,287 - 2,287 Other accrued items 3,993 1,501 5,494 Deferred income taxes, net 64,495 (966 ) 63,529 Net identifiable assets 189,019 (535 ) 188,484 Goodwill 102,902 535 103,437 Purchase price $ 291,921 $ - $ 291,921 Operating results of AMTROL have been included in the Company’s consolidated statements of earnings since the date of the acquisition. During the fiscal year ended May 31, 2018, AMTROL contributed net sales of $265,198,000 and operating income of $18,899,000. The following unaudited pro forma information presents consolidated financial information as if AMTROL had been acquired at the beginning of fiscal 2017. Depreciation and amortization expense included in the pro forma results reflect the acquisition-date fair values assigned to the definite-lived intangible assets and fixed assets of AMTROL assuming a June 1, 2016 acquisition date. Adjustment has also been made for the acquisition-related costs incurred in each period presented. Pro forma results for the fiscal year ended May 31, 2018 have also been adjusted to remove the impact of the acquisition-date fair value adjustments to inventories and accrued severance costs related to headcount reductions at AMTROL initiated during the first quarter of fiscal 2018. The pro forma adjustments noted above have been adjusted for the applicable income tax impact. The pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place as of June 1, 2016 (in thousands, except per share amounts) 2018 2017 Net sales $ 3,581,620 $ 3,263,315 Net earnings attributable to controlling interest $ 199,038 $ 215,182 Diluted earnings per share attributable to controlling interest $ 3.16 $ 3.32 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
May 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note Q – Derivative Instruments and Hedging Activities We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, foreign currency exchange risk and commodity price risk. While certain of our derivative instruments are designated as hedging instruments, we also enter into derivative instruments that are designed to hedge a risk, but are not designated as hedging instruments and therefore do not qualify for hedge accounting. These derivative instruments are adjusted to current fair value through earnings at the end of each period. Interest Rate Risk Management – We are exposed to the impact of interest rate changes. Our objective is to manage the impact of interest rate changes on cash flows and the market value of our borrowings. We utilize a mix of debt maturities along with both fixed-rate and variable-rate debt to manage changes in interest rates. In addition, we enter into interest rate swaps to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs. Foreign Currency Exchange Risk Management – We conduct business in several major international currencies and are, therefore, subject to risks associated with changing foreign currency exchange rates. We enter into various contracts that change in value as foreign currency exchange rates change to manage this exposure. Such contracts limit exposure to both favorable and unfavorable foreign currency exchange rate fluctuations. The translation of foreign currencies into United States dollars also subjects us to exposure related to fluctuating foreign currency exchange rates; however, derivative instruments are not used to manage this risk. Commodity Price Risk Management – We are exposed to changes in the price of certain commodities, including steel, natural gas, copper, zinc and other raw materials, and our utility requirements. Our objective is to reduce earnings and cash flow volatility associated with forecasted purchases and sales of these commodities to allow management to focus its attention on business operations. Accordingly, we enter into derivative contracts to manage the associated price risk. We are exposed to counterparty credit risk on all of our derivative instruments. Accordingly, we have established and maintain strict counterparty credit guidelines. We have credit support agreements in place with certain counterparties to limit our credit exposure. These agreements require either party to post cash collateral if its cumulative market position exceeds a predefined liability threshold. Amounts posted to the margin accounts accrue interest at market rates and are required to be refunded in the period in which the cumulative market position falls below the required threshold. We do not have significant exposure to any one counterparty and management believes the risk of loss is remote and, in any event, would not be material. Refer to " Note R – Fair Value Measurements The following table summarizes the fair value of our derivative instruments and the respective line in which they were recorded in the consolidated balance sheet at May 31, 2019 Asset Derivatives Liability Derivatives Balance Balance Sheet Fair Sheet Fair (in thousands) Location Value Location Value Derivatives designated as hedging instruments: Commodity contracts Receivables $ 5 Accounts payable $ 8,383 Other assets - Other liabilities 201 Totals $ 5 $ 8,584 Derivatives not designated as hedging instruments: Commodity contracts Receivables $ 2,347 Accounts payable $ 3,568 Other assets 62 Other liabilities 66 2,409 3,634 Foreign exchange contracts Receivables - Accounts payable 20 Totals $ 2,409 $ 3,654 Total derivative instruments $ 2,414 $ 12,238 The amounts in the table above reflect the fair value of the Company’s derivative contracts on a net basis. Had these amounts been recognized on a gross basis, the impact would have been a $220,000 increase in receivables with a corresponding increase in accounts payable. The following table summarizes the fair value of our derivative instruments and the respective line in which they were recorded in the consolidated balance sheet at May 31, 2018 Asset Derivatives Liability Derivatives Balance Balance Sheet Fair Sheet Fair (in thousands) Location Value Location Value Derivatives designated as hedging instruments: Commodity contracts Receivables $ 6,385 Accounts payable $ - Other assets 68 Other liabilities - Totals $ 6,453 $ - Derivatives not designated as hedging instruments: Commodity contracts Receivables $ 4,749 Accounts payable $ 613 Other assets 221 Other liabilities 158 4,970 771 Foreign exchange contracts Receivables - Accounts payable 75 Totals $ 4,970 $ 846 Total derivative instruments $ 11,423 $ 846 The amounts in the table above reflect the fair value of the Company’s derivative contracts on a net basis. Had these amounts been recognized on a gross basis, the impact would have been a $351,000 increase in receivables with a corresponding increase in accounts payable. Cash Flow Hedges We enter into derivative instruments to hedge our exposure to changes in cash flows attributable to interest rate and commodity price fluctuations associated with certain forecasted transactions. These derivative instruments are designated and qualify as cash flow hedges. Accordingly, the effective portion of the gain or loss on the derivative instrument is reported as a component of OCI and reclassified into earnings in the same line associated with the forecasted transaction and in the same period during which the hedged transaction affects earnings. The ineffective portion of the gain or loss on the derivative instrument is recognized in earnings immediately. The following table summarizes our cash flow hedges outstanding at May 31, 2019: Notional (in thousands) Amount Maturity Date Commodity contracts $ 61,454 June 2019 - December 2020 The following table summarizes the gain recognized in OCI and the gain (loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges during fiscal 2019 and fiscal 2018: Location of Location of Gain Gain Gain (Loss) Gain (Loss) (Ineffective (Ineffective Gain (Loss) Reclassified Reclassified Portion) Portion) Recognized from from Excluded Excluded in OCI AOCI AOCI from from (Effective (Effective (Effective Effectiveness Effectiveness (in thousands) Portion) Portion) Portion) Testing Testing For the fiscal year ended May 31, 2019: Interest rate contracts $ - Interest expense $ (162 ) Interest expense $ - Commodity contracts (12,637 ) Cost of goods sold 3,752 Cost of goods sold - Totals $ (12,637 ) $ 3,590 $ - For the fiscal year ended May 31, 2018: Interest rate contracts $ 3,363 Interest expense $ (407 ) Interest expense $ - Commodity contracts 11,620 Cost of goods sold 14,034 Cost of goods sold - Totals $ 14,983 $ 13,627 $ - The estimated net amount of the losses in AOCI at May 31, 2019 expected to be reclassified into net earnings within the succeeding twelve months is $6,590,000 (net of tax of $2,004,000). This amount was computed using the fair value of the cash flow hedges at May 31, 2019, and will change before actual reclassification from other comprehensive income to net earnings during fiscal 2020. Economic (Non-designated) Hedges We enter into foreign exchange contracts to manage our foreign currency exchange rate exposure related to inter-company and financing transactions that do not meet the requirements for hedge accounting treatment. We also enter into certain commodity contracts that do not qualify for hedge accounting treatment. Accordingly, these derivative instruments are adjusted to current market value at the end of each period through earnings. The following table summarizes our economic (non-designated) derivative instruments outstanding at May 31, 2019: Notional (in thousands) Amount Maturity Date(s) Commodity contracts $ 53,310 June 2019 - August 2020 Foreign exchange contracts 8,590 June 2019 - March 2020 The following table summarizes the gain (loss) recognized in earnings for economic (non-designated) derivative financial instruments during fiscal 2019 and fiscal 2018: Gain (Loss) Recognized in Earnings Fiscal Year Ended Location of Gain (Loss) May 31, (in thousands) Recognized in Earnings 2019 2018 Commodity contracts Cost of goods sold $ (5,114 ) $ 6,284 Foreign exchange contracts Miscellaneous income, net (3,604 ) (264 ) Total $ (8,718 ) $ 6,020 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
May 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note R – Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date Current accounting guidance establishes a three-tier fair value hierarchy as a basis for considering such assumptions and for classifying the inputs used in the valuation methodologies. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows: Level 1 – Observable prices in active markets for identical assets and liabilities. Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the assets and liabilities, either directly or indirectly. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. Recurring Fair Value Measurements At May 31, 2019 Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Derivative contracts (1) $ - $ 2,414 $ - $ 2,414 Total assets $ - $ 2,414 $ - $ 2,414 Liabilities Derivative contracts (1) $ - $ 12,238 $ - $ 12,238 Total liabilities $ - $ 12,238 $ - $ 12,238 At May 31, 2018 Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Derivative contracts (1) $ - $ 11,423 $ - $ 11,423 Total assets $ - $ 11,423 $ - $ 11,423 Liabilities Derivative contracts (1) $ - $ 846 $ - $ 846 Total liabilities $ - $ 846 $ - $ 846 (1) The fair value of our derivative contracts was based on the present value of the expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Market observable, Level 2 inputs are used to determine the present value of the expected future cash flows. Refer to “ Note Q – Derivative Instruments and Hedging Activities Non-Recurring Fair Value Measurements At May 31, 2019, our assets measured at fair value on a non-recurring basis were categorized as follows: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Investment in unconsolidated affiliate (1) $ - $ 3,700 $ - $ 3,700 Long-lived assets held and used (2) - 1,238 - 1,238 Long-lived assets held for sale (3) - 7,000 - 7,000 Total assets $ - $ 11,938 $ - $ 11,938 At May 31, 2018, our assets measured at fair value on a non-recurring basis were categorized as follows: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Long-lived assets held for sale (4) $ - $ 30,000 $ - $ 30,000 Total assets $ - $ 30,000 $ - $ 30,000 (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 within equity in net income of unconsolidated affiliates. (2) 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, resulting in an impairment charge of $3,269,000. (3) 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. (4) 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 The non-derivative financial instruments included in the carrying amounts of cash and cash equivalents, receivables, income taxes receivable, other assets, deferred income taxes, accounts payable, short-term borrowings, accrued compensation, contributions to employee benefit plans and related taxes, other accrued expenses, income taxes payable and other liabilities approximate fair value due to their short-term nature. The fair value of long-term debt, including current maturities, based upon models utilizing primarily market observable (Level 2) inputs and credit risk, was $767,075,000 and $757,069,000 at May 31, 2019 and 2018, respectively. The carrying amount of long-term debt, including current maturities, was $749,299,000 and $750,368,000 at May 31, 2019 and 2018, respectively. |
Operating Leases
Operating Leases | 12 Months Ended |
May 31, 2019 | |
Leases [Abstract] | |
Operating Leases | Note S – Operating Leases We lease certain property and equipment from third parties under non-cancelable operating lease agreements. Rent expense under operating leases was $16,624,000, $16,277,000 and $13,519,000 in fiscal 2019, fiscal 2018 and fiscal 2017 (in thousands) 2020 $ 10,774 2021 8,398 2022 5,428 2023 4,054 2024 2,098 Thereafter 2,637 Total $ 33,389 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
May 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note T – Related Party Transactions We purchase from, and sell to, affiliated companies certain raw materials and services at prevailing market prices. Net sales to affiliated companies for fiscal 2019, fiscal 2018 and fiscal 2017 2017 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
May 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | Note U – Quarterly Results of Operations (Unaudited) The following table summarizes the unaudited quarterly consolidated results of operations for fiscal 2019 and fiscal 2018: (in thousands, except per share) Three Months Ended Fiscal 2019 August 31 November 30 February 28 May 31 Net sales $ 988,107 $ 958,226 $ 874,381 $ 938,842 Gross margin 142,997 120,934 90,021 126,003 Impairment of long-lived assets (1) 2,381 - - 5,436 Net earnings 56,958 37,792 29,548 38,975 Net earnings attributable to controlling interest 54,942 34,002 26,773 37,738 Basic earnings per share - controlling interest $ 0.94 $ 0.59 $ 0.47 $ 0.68 Diluted earnings per share - controlling interest $ 0.91 $ 0.57 $ 0.46 $ 0.66 Fiscal 2018 August 31 November 30 February 28 May 31 Net sales $ 848,237 $ 871,266 $ 841,657 $ 1,020,460 Gross margin 132,778 140,079 127,055 162,946 Impairment of goodwill and long-lived assets (1) - 8,289 - 52,919 Net earnings 48,074 41,622 78,297 32,857 Net earnings attributable to controlling interest 45,534 39,403 79,087 30,769 Basic earnings per share - controlling interest $ 0.73 $ 0.64 $ 1.31 $ 0.52 Diluted earnings per share - controlling interest $ 0.70 $ 0.62 $ 1.27 $ 0.50 (1) For additional information regarding the Company’s impairment activity, refer to “Note D – Goodwill and Other Long-Lived Assets.” The sum of the quarterly earnings per share data presented in the table may not equal the annual results due to rounding and the impact of dilutive securities on the annual versus the quarterly earnings per share calculations. |
Subsequent Events
Subsequent Events | 12 Months Ended |
May 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note V – Subsequent Events On July 24, 2019, the Company completed the sale of Worthington Aritas and received cash proceeds, net of transaction costs, of approximately $8,300,000. The impact of the transaction was immaterial to the statement of earnings. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
May 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | WORTHINGTON INDUSTRIES, INC. AND SUBSIDIARIES SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS Description Balance at Beginning of Period Charged to Costs and Expenses Uncollectable Accounts Charged to Allowance (A) Balance at End of Period Year Ended May 31, 2019: Deducted from asset accounts: Allowance for possible losses on trade accounts receivable $ 632,000 $ 659,000 $ (141,000 ) $ 1,150,000 Year Ended May 31, 2018: Deducted from asset accounts: Allowance for possible losses on trade accounts receivable $ 3,444,000 $ 11,000 $ (2,823,000 ) $ 632,000 Year Ended May 31, 2017: Deducted from asset accounts: Allowance for possible losses on trade accounts receivable $ 4,579,000 $ 269,000 $ (1,404,000 ) $ 3,444,000 Note A – For fiscal 2018, the balance also includes $1,215,000 related to Worthington Aritas that was reclassified to assets held for sale. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
May 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Consolidation | Consolidation: The consolidated financial statements include the accounts of Worthington Industries, Inc. and consolidated subsidiaries (collectively, “we,” “our,” “Worthington,” or the “Company”). Investments in unconsolidated affiliates are accounted for using the equity method. Significant intercompany accounts and transactions are eliminated. The Company owns controlling interests in the following three joint ventures: Spartan Steel Coating, LLC (“Spartan”) (52%), TWB Company, L.L.C. (“TWB”) (55%), and Worthington Specialty Processing (“WSP”) (51%). These joint ventures are consolidated with the equity owned by the other joint venture members shown as noncontrolling interests in our consolidated balance sheets, and their portions of net earnings and other comprehensive income (loss) (“OCI”) shown as net earnings or comprehensive income attributable to noncontrolling interests in our consolidated statements of earnings and comprehensive income, respectively. We recognized a noncontrolling interest in Worthington Energy Innovations, LLC (“WEI”) through March 31, 2018, when the Company sold its controlling stake in WEI to the other joint venture member. There was no impact to net earnings as a result of the transaction as the fair value of the consideration received approximated the net book value of WEI. On May 23, 2018, the Company acquired the minority ownership interest in Turkey-based Worthington Arıtaş Basınçlı Kaplar Sanayi (“Worthington Aritas”) from the noncontrolling joint venture members in a non-cash transaction. The difference between the fair value of the noncontrolling interest and its carrying value was recorded as an increase to additional paid-in-capital in the amount of $924,000. |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. |
Inventories | Inventories: Inventories are valued at the lower cost or net realizable value. Cost is determined using the first-in, first-out method for all inventories. The assessment of net realizable value requires the use of significant estimates to determine cost to complete, normal profit margin and the ultimate selling price of the inventory. We believe our inventories were valued appropriately as of May 31, 2019 and May 31, 2018. |
Derivative Financial Instruments | Derivative Financial Instruments: We utilize derivative financial instruments to manage exposure to certain risks related to our ongoing operations. The primary risks managed through the use of derivative instruments include interest rate risk, foreign currency exchange risk and commodity price risk. All derivative instruments are accounted for using mark-to-market accounting. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. Gains and losses on fair value hedges are recognized in current period earnings in the same line as the underlying hedged item. The effective portion of gains and losses on cash flow hedges is deferred as a component of accumulated other comprehensive income or loss (“AOCI”) and recognized in earnings at the time the hedged item affects earnings, in the same financial statement caption as the underlying hedged item. Ineffectiveness of the hedges during the fiscal year ended May 31, 2019 (“fiscal 2019”), the fiscal year ended May 31, 2018 (“fiscal 2018”) and the fiscal year ended May 31, 2017 (“fiscal 2017”) was immaterial. Classification in the consolidated statements of earnings of gains and losses related to derivative instruments that do not qualify for hedge accounting is determined based on the underlying intent of the instruments. Cash flows related to derivative instruments are generally classified as operating activities in our consolidated statements of cash flows. In order for hedging relationships to qualify for hedge accounting under current accounting guidance, we formally document each hedging relationship and its risk management objective. This documentation includes the hedge strategy, the hedging instrument, the hedged item, the nature of the risk being hedged, how hedge effectiveness will be assessed prospectively and retrospectively as well as a description of the method used to measure hedge ineffectiveness. Derivative instruments are executed only with highly-rated counterparties. No credit loss is anticipated on existing instruments, and no material credit losses have been experienced to date. We monitor our positions, as well as the credit ratings of counterparties to those positions. We discontinue hedge accounting when it is determined that the derivative instrument is no longer effective in offsetting the hedged risk, expires or is sold, is terminated or is no longer designated as a hedging instrument because it is unlikely that a forecasted transaction will occur or we determine that designation of the hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative instrument is retained, we continue to carry the derivative instrument at its fair value on the consolidated balance sheet and recognize any subsequent changes in its fair value in net earnings immediately. When it is probable that a forecasted transaction will not occur, we discontinue hedge accounting and immediately recognize the gains and losses that were accumulated in AOCI. Refer to “Note Q – Derivative Instruments and Hedging Activities” for additional information regarding the consolidated balance sheet location and the risk classification of our derivative instruments. |
Risks and Uncertainties | Risks and Uncertainties : As of May 31, 2019, excluding our joint ventures, we operated 31 manufacturing facilities worldwide, principally in three operating segments, which correspond with our reportable business segments: Steel Processing, Pressure Cylinders, and Engineered Cabs. We also held equity positions in nine joint ventures, which operated 46 manufacturing facilities worldwide, as of May 31, 2019. Our largest end market is the automotive industry, which comprised 38%, 37%, and 43% of consolidated net sales in fiscal 2019, fiscal 2018, and fiscal 2017 , respectively. Our international operations represented 5%, 9%, and 7% of consolidated net sales and 6%, 6%, and 4% of consolidated net earnings attributable to controlling interest in fiscal 2019, fiscal 2018, and fiscal 2017 , respectively, and 13% and 14% of consolidated net assets as of May 31, 2019 and May 31, 2018, respectively. As of May 31, 2019, approximately 8% of our consolidated labor force was represented by collective bargaining units. The concentration of credit risks from financial instruments related to the markets we serve is not expected to have a material adverse effect on our consolidated financial position, cash flows or future results of operations. In fiscal 2019, our largest customer accounted for approximately 9% of our consolidated net sales, and our ten largest customers accounted for approximately 31% of our consolidated net sales. A significant loss of, or decrease in, business from any of these customers could have an adverse effect on our consolidated net sales and financial results if we were not able to obtain replacement business. Also, due to consolidation within the industries we serve, including the construction, automotive and retail industries, our sales may be increasingly sensitive to deterioration in the financial condition of, or other adverse developments with respect to, one or more of our largest customers. Our principal raw material is flat-rolled steel, which we purchase from multiple primary steel producers. The steel industry as a whole has been cyclical, and at times availability and pricing can be volatile due to a number of factors beyond our control. This volatility can significantly affect our steel costs. In an environment of increasing prices for steel and other raw materials, in general, competitive conditions may impact how much of the price increases we can pass on to our customers. To the extent we are unable to pass on future price increases in our raw materials to our customers, our financial results could be adversely affected. Also, if steel prices decrease, in general, competitive conditions may impact how quickly we must reduce our prices to our customers, and we could be forced to use higher-priced raw materials to complete orders for which the selling prices have decreased. Declining steel prices could also require us to write-down the value of our inventories to reflect current market pricing. Further, the number of suppliers has decreased in recent years due to industry consolidation and the financial difficulties of certain suppliers, and consolidation may continue. Accordingly, if delivery from a major steel supplier is disrupted, it may be more difficult to obtain an alternative supply than in the past. |
Receivables | Receivables: We review our receivables on an ongoing basis to ensure that they are properly valued and collectible. This is accomplished through an allowance for doubtful accounts. The allowance for doubtful accounts is used to record the estimated risk of loss related to the customers’ inability to pay. This allowance is maintained at a level that we consider appropriate based on factors that affect collectability, such as the financial health of our customers, historical trends of charge-offs and recoveries and current economic and market conditions. As we monitor our receivables, we identify customers that may have payment problems, and we adjust the allowance accordingly, with the offset to selling, general and administrative (“SG&A”) expense. Account balances are charged off against the allowance when recovery is considered remote. The allowance for doubtful accounts increased approximately $518,000 during fiscal to $1,150,000. While we believe our allowance for doubtful accounts is adequate, changes in economic conditions, the financial health of customers and bankruptcy settlements could impact our future earnings. If the economic environment and market conditions deteriorate, particularly in the automotive and construction end markets where our exposure is greatest, additional reserves may be required. |
Property and Depreciation | Property and Depreciation: Property, plant and equipment are carried at cost and depreciated using the straight-line method. Buildings and improvements are depreciated over 10 to 40 years and machinery and equipment over 3 to 20 years. Depreciation expense was $80,316,000, $83,680,000 and $73,268,000 during fiscal 2019, fiscal 2018 and fiscal 2017 , respectively. Accelerated depreciation methods are used for income tax purposes. |
Goodwill and Other Long-Lived Assets | Goodwill and Other Long-Lived Assets: We use the purchase method of accounting for all business combinations and recognize amortizable and indefinite-lived intangible assets separately from goodwill. The acquired assets and assumed liabilities in an acquisition are measured and recognized based on their estimated fair values at the date of acquisition, with goodwill representing the excess of the purchase price over the fair value of the identifiable net assets. A bargain purchase may occur, wherein the fair value of identifiable net assets exceeds the purchase price, and a gain is then recognized in the amount of that excess. Goodwill and intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually, during the fourth quarter, or more frequently if events or changes in circumstances indicate that impairment may be present. Application of goodwill impairment testing involves judgment, including but not limited to, the identification of reporting units and estimation of the fair value of each reporting unit. A reporting unit is defined as an operating segment or one level below an operating segment. With the exception of Pressure Cylinders, we test goodwill at the operating segment level as we have determined that the characteristics of the reporting units within each operating segment are similar and allow for their aggregation in accordance with the applicable accounting guidance. For our Pressure Cylinders operating segment, the oil & gas equipment business has been treated as a separate reporting unit since the second quarter of fiscal 2016. For goodwill and indefinite-lived intangible assets, we test for impairment by first evaluating qualitative factors including macroeconomic conditions, industry and market considerations, cost factors, and overall financial performance. If there are no concerns raised from this evaluation, no further testing is performed. If however, our qualitative analysis indicates it is more likely than not that the fair value is less than the carrying amount, a quantitative analysis is performed. The quantitative analysis compares the fair value of each reporting unit or indefinite-lived intangible asset to the respective carrying amount, and an impairment loss is recognized in our consolidated statements of earnings equivalent to the excess of the carrying amount over the fair value. Fair value is determined based on discounted cash flows or appraised values, as appropriate. Either way, our policy is to perform a quantitative analysis over each reporting unit at least every three years. We performed our annual impairment evaluation of goodwill and other indefinite-lived intangible assets during the fourth quarter of fiscal 2019 and concluded that the fair value of each reporting unit exceeded its carrying value. The estimated fair value of the oil & gas equipment reporting unit did not exceed its carrying value by a significant amount (approximately 13%). Accordingly, future declines in the market and/or deterioration in earnings could lead to a potential impairment. that the carrying value of the asset or asset group exceeds its fair value. and are recorded in a single line in the consolidated balance sheets. We classify assets as Our impairment testing for both goodwill and other long-lived assets, including intangible assets with finite useful lives, See “Note D – Goodwill and Other Long-Lived Assets” for additional details regarding these assets and related impairment testing. |
Equity Method Investments | Equity method investments: Investments in affiliated companies that we do not control, either through majority ownership or otherwise, are accounted for using the equity method. We review our equity-method investments for impairment whenever events or changes in circumstances indicate that the carrying value of the investment might not be recoverable. Events and circumstances can include, but are not limited to: evidence we do not have the ability to recover the carrying value; the inability of the investee to sustain earnings; the current fair value of the investment is less than the carrying value; and other investors cease to provide support or reduce their financial commitment to the investee. If the fair value of the investment is less than the carrying value, and the investment will not recover in the near term, then other-than-temporary impairment may exist. When the loss in value of an investment is determined to be other-than-temporary, we recognize an impairment in the period the conclusion is made. |
Leases | Leases: Certain lease agreements contain fluctuating or escalating payments and rent holiday periods. The related rent expense is recorded on a straight-line basis over the lease term. Leasehold improvements made by the lessee, whether funded by the lessee or by landlord allowances or incentives, are recorded as leasehold improvement assets and will be amortized over the shorter of the economic life or the lease term. These incentives are recorded as deferred rent and amortized as reductions in rent expense over the lease term. |
Stock-Based Compensation | Stock-Based Compensation: At May 31, 2019, we had stock-based compensation plans for our employees as well as our non-employee directors as described more fully in “Note K – Stock-Based Compensation.” All share-based awards, including grants of stock options and restricted common shares, are recorded as expense in the consolidated statements of earnings based on their grant-date fair values. Forfeitures are recognized as they occur. |
Revenue Recognition | Revenue Recognition : Through fiscal 2018, we recognized revenue upon transfer of title and risk of loss, or in the case of toll processing revenue, upon delivery of the goods, provided evidence of an arrangement existed, pricing was fixed and determinable and the ability to collect was probable. Through charges to net sales, provisions were made for returns and allowances, customer rebates and sales discounts based on past experience, specific agreements, and anticipated levels of customer activity. On June 1, 2018, we adopted new accounting guidance that replaces most existing revenue recognition accounting guidance under U.S. GAAP, Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) Under the new accounting guidance, we recognize revenue upon transfer of control of promised goods or services to customers in an amount that reflects the consideration we expect to receive for those goods or services, including any variable consideration. |
Advertising Expense | Advertising Expense: Advertising costs are expensed as incurred and included in SG&A expense. Advertising expense was $15,574,000, $15,236,000, and $14,822,000 for fiscal 2019, fiscal 2018 and fiscal 2017 , respectively. |
Environmental Costs | Environmental Costs: Environmental costs are capitalized if the costs extend the life of the property, increase its capacity, and/or mitigate or prevent contamination from future operations. Costs related to environmental contamination treatment and cleanup are charged to expense as incurred. |
Income Taxes | Income Taxes: We account for income taxes using the asset and liability method. The asset and liability method requires the recognition of deferred tax assets and liabilities for expected future tax consequences of temporary differences that currently exist between the tax basis and the financial reporting basis of our assets and liabilities. We evaluate the deferred tax assets to determine whether it is more likely than not that all, or a portion, of the deferred tax assets will not be realized and provide a valuation allowance as appropriate. Tax benefits from uncertain tax positions that are recognized in the consolidated financial statements are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. We have reserves for income taxes and associated interest and penalties that may become payable in future years as a result of audits by taxing authorities. It is our policy to record these in income tax expense. While we believe the positions taken on previously filed tax returns are appropriate, we have established the tax and interest/penalties reserves in recognition that various taxing authorities may challenge our positions. These reserves are analyzed periodically, and adjustments are made as events occur to warrant adjustment to the reserves, such as lapsing of applicable statutes of limitations, conclusion of tax audits, additional exposure based on current calculations, identification of new issues and release of administrative guidance or court decisions affecting a particular tax issue. |
Self-Insurance Reserves | Self-Insurance Reserves: We self-insure most of our risks for product liability, cyber liability and pollution liability. We are largely self-insured with respect to workers’ compensation, general and automobile liability, property liability, automobile liability and employee medical claims, and in order to reduce risk and better manage our overall loss exposure for these liabilities, we purchase stop-loss insurance that covers individual claims in excess of the deductible amounts. We also maintain reserves for the estimated cost to resolve certain open claims that have been made against us (which may include active product recall or replacement programs), as well as an estimate of the cost of claims that have been incurred but not reported. These estimates are based on actuarial valuations that take into consideration the historical average claim volume, the average cost for settled claims, current trends in claim costs, changes in our business and workforce, general economic factors and other assumptions believed to be reasonable under the circumstances. The estimated reserves for these liabilities could be affected if future occurrences and claims differ from the assumptions used and historical trends. |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards: In February 2018, amended guidance was issued that would allow a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act (“TCJA”) signed into law in December 2017. The amended guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. It is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the TCJA is recognized. The Company early adopted this amended guidance in the fourth quarter of fiscal 2018. As a result, the stranded tax effects in AOCI of $1,701,000, related to various unrealized gains and losses associated with the Company’s hedge instruments and minimum pension liability, were reclassified to retained earnings. On June 1, 2018, the Company adopted new accounting guidance that replaces most existing revenue recognition guidance under U.S. GAAP. See “NOTE B – Revenue Recognition” for further explanation related to this adoption, including newly required disclosures. Recently Issued Accounting Standards: In February 2016, new accounting guidance was issued that replaces most existing lease accounting guidance under U.S. GAAP. Among other changes, the new accounting guidance requires that leased assets and liabilities be recognized on the balance sheet by lessees for those leases classified as operating leases under previous guidance. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, and the change is to be applied using a modified retrospective approach as of the beginning of the earliest period presented. In July 2018, the FASB issued additional accounting standard updates clarifying certain provisions, as well as providing for a second transition method allowing entities to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance sheet in retained earnings. We have completed steps to evaluate the components and criteria of existing leases; reviewed contracts and agreements to identify items that meet the definition of a lease under the new accounting guidance; and procured a third-party software system to track and manage our leases. We have imported the lease data into the system and are in the process of testing the upload and system calculations. We are also in the process of assessing the design of the future lease process and drafting a policy to address the new accounting standard requirements. We have elected certain practical expedients available under the new accounting guidance, including a package of practical expedients which allows us to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs. While we are in the process of evaluating the effect the new accounting guidance will have on the presentation of our consolidated In June 2016, amended accounting guidance was issued related to the measurement of credit losses on financial instruments. The amended accounting guidance changes the impairment model for most financial assets to require measurement and recognition of expected credit losses for financial assets held. The amended accounting guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are in the process of evaluating the effect this amended accounting guidance will have on our consolidated In August 2017, amended accounting guidance was issued that modifies hedge accounting by making more hedge strategies eligible for hedge accounting, amending presentation and disclosure requirements, and changing how companies assess effectiveness. The intent is to simplify application of hedge accounting and increase transparency of information about an entity’s risk management activities. The amended accounting guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. It is to be applied using a modified retrospective transition approach for cash flow and net investment hedges existing at the date of adoption. The presentation and disclosure guidance is only required prospectively. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
May 31, 2019 | |
Accounting Policies [Abstract] | |
Supplemental Cash Flow Information | Supplemental cash flow information was as follows for the fiscal years ended May 31: (in thousands) 2019 2018 2017 Interest paid, net of amount capitalized $ 38,807 $ 34,839 $ 29,826 Income taxes paid, net of refunds $ 38,848 $ 44,819 $ 55,652 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
May 31, 2019 | |
Disaggregation Of Revenue [Line Items] | |
Cumulative Effect of Adopting New Revenue Recognition Guidance on Consolidated Balance Sheet | The following table outlines the cumulative effect of adopting the new revenue recognition guidance: (in thousands) May 31, 2018 (As Reported) Cumulative Effect of Topic 606 Adoption June 1, 2018 (As Adjusted) Consolidated Balance Sheet Assets Receivables $ 572,689 $ 4,706 $ 577,395 Total inventories 454,027 (3,452 ) 450,575 Prepaid expenses and other current assets 60,134 944 61,078 Liabilities and equity Deferred income taxes, net 60,188 454 60,642 Retained earnings 637,757 1,174 638,931 Noncontrolling interests 117,606 570 118,176 |
Revenue by Product Class and Timing | The following table summarizes net sales by product class and by timing of revenue recognition for the fiscal year ended May 31, 2019: (in thousands) Reportable Segments Product class: Steel Processing Pressure Cylinders Engineered Cabs Other Total Steel Processing Direct $ 2,308,756 $ - $ - $ - $ 2,308,756 Toll 127,062 - - - 127,062 Pressure Cylinders Industrial products - 627,053 - - 627,053 Consumer products - 470,447 - - 470,447 Oil & gas equipment - 110,298 - - 110,298 Engineered Cabs - - 115,902 - 115,902 Other - - - 38 38 Total $ 2,435,818 $ 1,207,798 $ 115,902 $ 38 $ 3,759,556 Timing of revenue recognition: Goods transferred at a point in time $ 2,308,756 $ 1,132,639 $ 115,902 $ 38 $ 3,557,335 Goods and services transferred over time 127,062 75,159 - - 202,221 Total $ 2,435,818 $ 1,207,798 $ 115,902 $ 38 $ 3,759,556 |
Accounting Standards Update 2014-09 | |
Disaggregation Of Revenue [Line Items] | |
Schedule of Adjustments on Consolidated Financial Statements | The following tables show the adjustments that would be required to be made to our fiscal 2019 consolidated financial statements to reflect the balances that would have been recorded if we continued to follow our accounting policies under the previous revenue recognition guidance: (in thousands) As Currently Reported Topic 606 Adjustments Balances Without Adoption of Topic 606 Consolidated Balance Sheet Assets Receivables $ 501,944 $ (5,367 ) $ 496,577 Total inventories 484,280 8,704 492,984 Prepaid expenses and other current assets 69,508 (6,891 ) 62,617 Income tax receivable 10,894 425 11,319 Liabilities and equity Income taxes payable 1,164 12 1,176 Deferred income taxes, net 74,102 (360 ) 73,742 Shareholders' equity - controlling interest 831,246 (2,227 ) 829,019 Noncontrolling interests 117,148 (554 ) 116,594 Consolidated Statement of Earnings Net sales $ 3,759,556 $ (6,608 ) $ 3,752,948 Cost of goods sold 3,279,601 (5,253 ) 3,274,348 Income tax expense 43,183 (319 ) 42,864 Net earnings 163,273 (1,036 ) 162,237 Net earnings attributable to noncontrolling interests 9,818 16 9,834 Net earnings attributable to controlling interest 153,455 (1,052 ) 152,403 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 12 Months Ended |
May 31, 2019 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Financial Information | The following table presents combined information regarding the financial position of our unconsolidated affiliates accounted for using the equity method as of May 31: (in thousands) 2019 2018 Cash $ 37,471 $ 52,812 Other current assets 594,959 590,578 Current assets for discontinued operations 35,793 37,640 Noncurrent assets 360,925 358,927 Total assets $ 1,029,148 $ 1,039,957 Current liabilities $ 236,781 $ 166,493 Current liabilities for discontinued operations 9,610 7,142 Short-term borrowings 15,162 26,599 Current maturities of long-term debt 33,003 23,243 Long-term debt 321,791 259,588 Other noncurrent liabilities 18,192 17,536 Equity 394,609 539,356 Total liabilities and equity $ 1,029,148 $ 1,039,957 The following table presents summarized financial information for our four largest unconsolidated affiliates as of, and for the fiscal years ended May 31. All other unconsolidated affiliates are combined and presented in the Other category. (in thousands) 2019 2018 2017 Net sales WAVE $ 379,103 $ 360,395 $ 334,031 ClarkDietrich 892,758 790,887 711,735 Serviacero Worthington 351,671 315,098 275,315 ArtiFlex 201,526 197,061 208,922 Other 32,753 28,578 17,784 Total net sales $ 1,857,811 $ 1,692,019 $ 1,547,787 Gross margin (loss) WAVE $ 205,909 $ 201,581 $ 190,350 ClarkDietrich 93,947 97,437 128,098 Serviacero Worthington 34,494 32,396 37,080 ArtiFlex 12,928 18,266 22,829 Other (6,000 ) (6,399 ) (4,313 ) Total gross margin $ 341,278 $ 343,281 $ 374,044 Operating income (loss) WAVE $ 166,969 $ 158,697 $ 158,030 ClarkDietrich 33,384 39,153 68,696 Serviacero Worthington 25,636 24,232 29,975 ArtiFlex 5,524 11,395 15,519 Other (9,964 ) (10,584 ) (8,407 ) Total operating income $ 221,549 $ 222,893 $ 263,813 Depreciation and amortization WAVE $ 3,634 $ 3,318 $ 2,978 ClarkDietrich 11,600 11,864 12,718 Serviacero Worthington 4,319 3,919 3,862 ArtiFlex 6,055 5,515 5,850 Other 875 749 698 Total depreciation and amortization $ 26,483 $ 25,365 $ 26,106 Interest expense WAVE $ 10,547 $ 8,365 $ 7,182 ClarkDietrich 912 114 20 Serviacero Worthington 493 397 89 ArtiFlex 1,443 1,333 1,429 Other - - - Total interest expense $ 13,395 $ 10,209 $ 8,720 Income tax expense (benefit) WAVE $ 219 $ 119 $ 2,398 ClarkDietrich - - - Serviacero Worthington 7,629 5,141 11,740 ArtiFlex 29 208 (2 ) Other - - (2 ) Total income tax expense $ 7,877 $ 5,468 $ 14,134 Net earnings (loss) WAVE (1) $ 162,849 $ 152,329 $ 154,866 ClarkDietrich 34,560 39,138 69,122 Serviacero Worthington 16,155 17,577 18,140 ArtiFlex 4,051 9,854 14,092 Other (8,383 ) (11,922 ) (5,472 ) Total net earnings $ 209,232 $ 206,976 $ 250,748 (1) These net earnings include net income attributable to discontinued operations of $6,830,000, $2,226,000, and $6,775,000 in fiscal 2019, fiscal 2018, and fiscal 2017, respectively, related to the international operations of WAVE being sold. All other amounts presented in the table above exclude the activity of the discontinued operations of WAVE. |
Goodwill and Other Long-Lived_2
Goodwill and Other Long-Lived Assets (Tables) | 12 Months Ended |
May 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The following table summarizes the changes in the carrying amount of goodwill during fiscal 2019 and fiscal 2018 by reportable business segment: (in thousands) Steel Processing Pressure Cylinders Engineered Cabs Other Total Balance at May 31, 2017 Goodwill $ 7,899 $ 234,123 $ 44,933 $ 127,245 $ 414,200 Accumulated impairment losses - - (44,933 ) (121,594 ) (166,527 ) 7,899 234,123 - 5,651 247,673 Acquisitions and purchase accounting adjustments (1) - 103,437 - - 103,437 Translation adjustments - 3,739 - - 3,739 Impairment losses (2) - (4,015 ) - (5,651 ) (9,666 ) - 103,161 - (5,651 ) 97,510 Balance at May 31, 2018 Goodwill 7,899 341,299 44,933 127,245 521,376 Accumulated impairment losses - (4,015 ) (44,933 ) (127,245 ) (176,193 ) 7,899 337,284 - - 345,183 Acquisitions and purchase accounting adjustments (1) - 777 - - 777 Translation adjustments - (4,093 ) - - (4,093 ) Divestitures (3) - (7,260 ) - - (7,260 ) - (10,576 ) - - (10,576 ) Balance at May 31, 2019 Goodwill 7,899 330,723 44,933 127,245 510,800 Accumulated impairment losses - (4,015 ) (44,933 ) (127,245 ) (176,193 ) $ 7,899 $ 326,708 $ - $ - $ 334,607 (1) For additional information regarding the Company’s acquisitions, refer to “Note P – Acquisitions.” (2) Fiscal 2018 impairment charges included $4,015,000 of goodwill allocated to oil & gas equipment assets prior to their disposal on July 31, 2018 and $5,651,000 related to the sale of a 65% stake in WEI on March 31, 2018. (3) Fiscal 2019 divestitures included the sale of the operating assets and real property related to the solder business and certain brazing assets. |
Summary of Other Intangible Assets by Class | The following table summarizes other intangible assets by class as of May 31, 2019 and 2018: 2019 2018 Accumulated Accumulated (in thousands) Cost Amortization Cost Amortization Indefinite-lived intangible assets: Trademarks $ 74,801 $ - $ 76,701 $ - Total indefinite-lived intangible assets 74,801 - 76,701 - Definite-lived intangible assets: Customer relationships $ 174,150 $ 69,258 $ 173,363 $ 57,125 Non-compete agreements 8,656 8,509 8,669 8,137 Technology / know-how 22,495 6,276 26,411 5,856 Other 3,716 3,716 3,804 3,804 Total definite-lived intangible assets 209,017 87,759 212,247 74,922 Total intangible assets $ 283,818 $ 87,759 $ 288,948 $ 74,922 |
Estimated Amortization Expense | Amortization expense for each of the next five fiscal years is estimated to be: (in thousands) 2020 $ 13,031 2021 $ 12,271 2022 $ 10,641 2023 $ 10,039 2024 $ 10,039 |
Restructuring and Other Expen_2
Restructuring and Other Expense (Income), Net (Tables) | 12 Months Ended |
May 31, 2019 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Progression of Liabilities Associated with Restructuring Activities, Combined with Reconciliation to Restructuring and Other Income, Net | A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other income, net financial statement caption in our consolidated statement of earnings for fiscal 2019, is summarized below: Beginning Ending (in thousands) Balance Expense Payments Adjustments Balance Early retirement and severance $ 1,116 $ 1,899 $ (2,127 ) $ (114 ) $ 774 Facility exit and other costs - 503 (313 ) (188 ) 2 $ 1,116 2,402 $ (2,440 ) $ (302 ) $ 776 Net gain on sale of assets (13,420 ) Restructuring and other income, net $ (11,018 ) |
Contingent Liabilities and Co_2
Contingent Liabilities and Commitments (Tables) | 12 Months Ended |
May 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Progression of Liabilities | A progression of the liabilities recorded in connection with this matter during fiscal 2019 is summarized in the following table: (in thousands) Beginning Balance Expense Payments Ending Balance Tank replacement costs $ - $ 13,000 $ (4,500 ) $ 8,500 |
Debt and Receivables Securiti_2
Debt and Receivables Securitization (Tables) | 12 Months Ended |
May 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt and Short-term Borrowings Outstanding | The following table summarizes our long-term debt and short-term borrowings outstanding at May 31, 2019 and 2018: (in thousands) 2019 2018 4.30% senior notes due August 1, 2032 $ 200,000 $ 200,000 4.55% senior notes due April 15, 2026 250,000 250,000 4.60% senior notes due August 10, 2024 150,000 150,000 6.50% senior notes due April 15, 2020 150,000 150,000 Term loans - 829 Other 3,100 3,899 Total debt 753,100 754,728 Unamortized discount and debt issuance costs (3,801 ) (4,360 ) Total debt, net 749,299 750,368 Less: current maturities and short-term borrowings 150,943 1,474 Total long-term debt $ 598,356 $ 748,894 |
Maturities of Long-term Debt | Maturities of long-term debt in the next five fiscal years, and the remaining years thereafter, are as follows: (in thousands) 2020 $ 150,942 2021 631 2022 648 2023 533 2024 300 Thereafter 600,046 Total $ 753,100 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
May 31, 2019 | |
Equity [Abstract] | |
Summary of Tax Effects of Each Component of Other Comprehensive Income (Loss) | The following table summarizes the tax effects of each component of other comprehensive income (loss) for the fiscal years ended May 31: 2019 2018 2017 (in thousands) Before- Tax Tax Net-of- Tax Before- Tax Tax Net-of- Tax Before -Tax Tax Net-of- Tax Foreign currency translation $ (14,772 ) $ - $ (14,772 ) $ 12,744 $ - $ 12,744 $ 1,342 $ - $ 1,342 Pension liability adjustment (2,203 ) 418 (1,785 ) 1,875 (309 ) 1,566 3,400 (1,158 ) 2,242 Cash flow hedges (16,227 ) 3,780 (12,447 ) 1,351 (392 ) 959 (4,522 ) 1,700 (2,822 ) Other comprehensive income (loss) $ (33,202 ) $ 4,198 $ (29,004 ) $ 15,970 $ (701 ) $ 15,269 $ 220 $ 542 $ 762 |
Components of Changes in Accumulated Other Comprehensive Loss | The components of the changes in accumulated other comprehensive loss for the fiscal years ended May 31, 2019 and May 31, 2018 were as follows: Accumulated Foreign Pension Cash Other Currency Liability Flow Comprehensive (in thousands) Translation Adjustment Hedges Loss Balance at May 31, 2017 $ (17,358 ) $ (14,819 ) $ 4,402 $ (27,775 ) Other comprehensive income before reclassifications 12,371 1,402 14,980 28,753 Reclassification adjustments to income (a) - 473 (13,629 ) (13,156 ) Reclassification of stranded tax effects - (2,818 ) 1,117 (1,701 ) Income tax effect - (309 ) (392 ) (701 ) Balance at May 31, 2018 $ (4,987 ) $ (16,071 ) $ 6,478 $ (14,580 ) Other comprehensive loss before reclassifications (14,652 ) (3,404 ) (12,637 ) (30,693 ) Reclassification adjustments to income (a) - 1,201 (3,590 ) (2,389 ) Income tax effect - 418 3,780 4,198 Balance at May 31, 2019 $ (19,639 ) $ (17,856 ) $ (5,969 ) $ (43,464 ) (a) The statement of earnings classification of amounts reclassified to income for cash flow hedges is disclosed in “Note Q – Derivative Instruments and Hedging Activities.” |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
May 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Non-qualified Stock Options Granted | The table below sets forth the non-qualified stock options granted during each of the last three fiscal years. For each grant, the exercise price was equal to the closing market price of the underlying common shares at each respective grant date. The fair values of these stock options were based on the Black-Scholes option pricing model, calculated at the respective grant dates. The calculated pre-tax stock-based compensation expense for these stock options, will be recognized on a straight-line basis over the respective vesting periods of the stock options. (in thousands, except per share amounts) 2019 2018 2017 Granted 96 90 111 Weighted average exercise price, per share $ 42.86 $ 47.76 $ 42.30 Weighted average grant date fair value, per share $ 12.54 $ 14.99 $ 11.60 Pre-tax stock-based compensation, net of forfeitures $ 1,199 $ 1,203 $ 1,146 |
Schedule of Assumptions Used to Determine Fair Value of Stock Options | The weighted average fair value of stock options granted in fiscal 2019, fiscal 2018 and fiscal 2017 2019 2018 2017 Assumptions used: Dividend yield 2.02 % 1.81 % 2.59 % Expected volatility 33.09 % 36.65 % 36.86 % Risk-free interest rate 2.79 % 1.98 % 1.15 % Expected life (years) 6.0 6.0 6.0 |
Summary of Stock Option Activity | The following tables summarize our stock option activity for the years ended May 31: 2019 2018 2017 (in thousands, except per share amounts) Stock Options Weighted Average Exercise Price Stock Options Weighted Average Exercise Price Stock Options Weighted Average Exercise Price Outstanding, beginning of year 2,019 $ 22.26 2,307 $ 20.99 3,306 $ 19.01 Granted 96 42.86 90 47.76 111 42.30 Exercised (506 ) 18.45 (371 ) 20.37 (1,076 ) 16.90 Forfeited (54 ) 44.31 (7 ) 33.02 (34 ) 29.95 Outstanding, end of year 1,555 24.01 2,019 22.26 2,307 20.99 Exercisable at end of year 1,397 21.96 1,800 20.03 2,067 19.17 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Weighted Average Number of Remaining Aggregate Stock Contractual Intrinsic Options Life Value (in thousands) (in years) (in thousands) May 31, 2019 Outstanding 1,555 3.15 $ 18,728 Exercisable 1,397 2.62 $ 18,728 May 31, 2018 Outstanding 2,019 3.59 $ 51,858 Exercisable 1,800 3.06 $ 50,673 May 31, 2017 Outstanding 2,307 3.95 $ 48,509 Exercisable 2,067 3.47 $ 47,488 |
Summary of Non-Vested Stock Option Awards | The following table summarizes information about non-vested stock option awards for the year ended May 31, 2019: Weighted Average Number of Grant Date Stock Options Fair Value (in thousands) per share Non-vested, beginning of year 219 $ 11.55 Granted 96 12.55 Vested (103 ) 10.75 Forfeited (54 ) 12.70 Non-vested, end of year 158 $ 12.26 |
Schedule of Service-Based Restricted Common Shares Granted | The table below sets forth the service-based 2017 (in thousands, except per share amounts) 2019 2018 2017 Granted 339 176 525 Weighted average grant date fair value, per share $ 43.35 $ 47.88 $ 42.28 Pre-tax stock-based compensation, net of forfeitures $ 14,692 $ 7,605 $ 19,841 |
Summary of Activity for Service-Based Restricted Common Shares | The following tables summarize the activity for our service-based 2019 2018 2017 (in thousands, except per share amounts) Restricted Common Shares Weighted Average Grant Date Fair Value Restricted Common Shares Weighted Average Grant Date Fair Value Restricted Common Shares Weighted Average Grant Date Fair Value Outstanding, beginning of year 796 $ 40.80 865 $ 39.49 698 $ 33.69 Granted 339 43.35 176 47.88 525 42.28 Vested (229 ) 34.63 (205 ) 40.96 (310 ) 31.81 Forfeited (95 ) 43.83 (40 ) 41.58 (48 ) 38.82 Outstanding, end of year 811 43.25 796 40.80 865 39.49 Weighted average remaining contractual life of outstanding restricted common shares (in years) 1.21 1.21 1.57 Aggregate intrinsic value of outstanding restricted common shares $ 27,681 $ 38,160 $ 36,298 Aggregate intrinsic value of restricted common shares vested during the year $ 10,388 $ 10,330 $ 12,840 |
Schedule of Assumptions Used to Determine Grant Date Fair Value of Market Based Restricted Common Shares | The following assumptions were used to determine the grant-date fair value and the derived service period for these market-based restricted common shares: Dividend yield 1.60 % Expected volatility 44.00 % Risk-free interest rate 1.70 % Dividend yield 2.16 % Expected volatility 33.60 % Risk-free interest rate 2.96 % |
Performance Shares Granted | The table below sets forth the performance shares we granted (at target levels) during fiscal 2019, fiscal 2018 and fiscal 2017 (in thousands, except per share amounts) 2019 2018 2017 Granted 43 54 67 Weighted average grant date fair value, per share $ 42.91 $ 50.61 $ 44.91 Pre-tax stock-based compensation $ 1,854 $ 2,748 $ 2,995 |
Employee Pension Plans (Tables)
Employee Pension Plans (Tables) | 12 Months Ended |
May 31, 2019 | |
Components of Net Periodic Pension Cost for the Defined Benefit Plan and Defined Contribution Plans | The following table summarizes the components of net periodic pension cost for the defined benefit plan and the defined contribution plans for the years ended May 31: (in thousands) 2019 2018 2017 Defined benefit plan: Interest cost $ 1,503 $ 1,522 $ 1,527 Return on plan assets (532 ) (1,361 ) (2,224 ) Net amortization and deferral (918 ) (20 ) 1,025 Net periodic pension cost on defined benefit plan 53 141 328 Settlement cost 760 - - Defined contribution plans 16,308 14,972 14,542 Total retirement plan cost $ 17,121 $ 15,113 $ 14,870 |
Actuarial Assumptions Used for Defined Benefit Plan | The following actuarial assumptions were used for our defined benefit plan: 2019 2018 2017 To determine benefit obligation: Discount rate 3.57 % 4.02 % 3.94 % To determine net periodic pension cost: Discount rate 4.02 % 3.94 % 3.75 % Expected long-term rate of return 7.00 % 7.00 % 7.00 % |
Reconciliation of the Changes in the Projected Benefit Obligation and Fair Value of Plan Assets and the Funded Status of the Gerstenslager Plan | The following tables provide a reconciliation of the changes in the projected benefit obligation and fair value of plan assets and the funded status of the Gerstenslager Plan as of, and for the fiscal years ended May 31: (in thousands) 2019 2018 Change in benefit obligation Benefit obligation, beginning of year $ 38,010 $ 39,174 Interest cost 1,503 1,522 Actuarial (gain) loss 1,868 (1,516 ) Benefits paid (1,201 ) (1,170 ) Settlements (1,661 ) - Benefits obligation, end of year $ 38,519 $ 38,010 Change in plan assets Fair value, beginning of year $ 27,212 $ 27,022 Return on plan assets 532 1,361 Company contributions 1,376 - Benefits paid (1,201 ) (1,171 ) Settlements (1,661 ) - Fair value, end of year 26,258 27,212 Funded status $ (12,261 ) $ (10,798 ) Amounts recognized in the consolidated balance sheets consist of: Other liabilities $ (12,261 ) $ (10,798 ) Accumulated other comprehensive loss 18,370 16,343 Amounts recognized in accumulated other comprehensive loss consist of: Net loss 18,370 16,343 Total $ 18,370 $ 16,343 |
Other Changes in Plan Assets And Benefit Obligations Recognized in OCI | The following table shows other changes in plan assets and benefit obligations recognized in OCI during the fiscal years ended May 31: (in thousands) 2019 2018 Net gain (loss) $ (3,227 ) $ 1,023 Amortization of net loss 441 473 Extraordinary charges 759 - Total recognized in other comprehensive income (loss) $ (2,027 ) $ 1,496 Total recognized in net periodic benefit cost and other comprehensive income $ 2,839 $ 1,355 |
Plan Assets for Defined Benefit Plan | Plan assets for the defined benefit plan consisted principally of the following as of the respective measurement dates: May 31, May 31, 2019 2018 Asset category: Equity securities 43 % 44 % Debt securities 45 % 55 % Other 12 % 1 % Total 100 % 100 % |
Estimated Future Benefits Expected to be Paid | The following estimated future benefits, which reflect expected future service, as appropriate, are expected to be paid under the defined benefit plan during the fiscal years noted: (in thousands) 2020 $ 1,293 2021 $ 1,322 2022 $ 1,405 2023 $ 1,486 2024 $ 1,556 2025-2029 $ 9,273 |
Fair Value, Measurements, Recurring | |
Plan Assets for Defined Benefit Plan | The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value on a recurring basis at May 31, 2019: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (level 3) Investment: Money market funds $ 3,109 $ 3,109 $ - $ - Bond funds 11,865 11,865 - - Equity funds 11,284 11,284 - - Total $ 26,258 $ 26,258 $ - $ - The following table sets forth, by level within the fair value hierarchy, a summary of the defined benefit plan’s assets measured at fair value on a recurring basis at May 31, 2018: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) Fair Value (Level 1) (Level 2) (level 3) Investment: Money market funds $ 291 $ 291 $ - $ - Bond funds 14,887 14,887 - - Equity funds 12,034 12,034 - - Total $ 27,212 $ 27,212 $ - $ - |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
May 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Earnings before Income Taxes | Earnings before income taxes for the three fiscal years ended May 31 include the following components: (in thousands) 2019 2018 2017 United States based operations $ 173,200 $ 177,088 $ 266,222 Non – United States based operations 33,256 31,982 30,905 Earnings before income taxes 206,456 209,070 297,127 Less: Net earnings attributable to noncontrolling interests* 9,818 6,056 13,422 Earnings before income taxes attributable to controlling interest $ 196,638 $ 203,014 $ 283,705 * Net earnings attributable to noncontrolling interests are not taxable to Worthington. |
Components of Income Tax Expense (Benefit) | Significant components of income tax expense (benefit) for the fiscal years ended May 31 were as follows: (in thousands) 2019 2018 2017 Current Federal $ 15,454 $ 33,261 $ 50,200 State and local 2,309 3,292 2,954 Foreign 7,985 9,904 7,593 25,748 46,457 60,747 Deferred Federal 18,195 (34,442 ) 18,177 State and local 1,621 388 476 Foreign (2,381 ) (4,183 ) (210 ) 17,435 (38,237 ) 18,443 $ 43,183 $ 8,220 $ 79,190 |
Reconciliation of Federal Statutory Corporate Income Tax Rate to Total Tax Provision | A reconciliation of the federal statutory corporate income tax rate to total tax provision follows: 2019 2018 2017 Federal statutory corporate income tax rate 21.0 % 29.2 % 35.0 % State and local income taxes, net of federal tax benefit 2.1 2.3 1.5 Non-U.S. income taxes at other than federal statutory rate 0.2 (1.4 ) (1.4 ) Qualified production activities deduction - (2.3 ) (1.9 ) Impact of tax reform (1) - (15.4 ) - Worthington Aritas write down - (4.8 ) - Excess benefit related to share-based payment awards (1.4 ) (2.0 ) (5.7 ) AMTROL acquisition - (1.9 ) - Other 0.1 0.3 0.4 Effective tax rate attributable to controlling interest 22.0 % 4.0 % 27.9 % (1) Amount reflects the impact of the re-measurement of the Company’s deferred tax balances at the lower federal statutory corporate income tax rate, net of the mandatory deemed repatriation tax on unremitted foreign earnings. |
Reconciliation of Unrecognized Tax Benefits | A tabular reconciliation of unrecognized tax benefits follows: (In thousands) Balance at May 31, 2018 $ 2,638 Decreases - tax positions taken in prior years (96 ) Increases - tax positions taken in prior years 41 Increases - current tax positions 43 Settlements (831 ) Lapse of statutes of limitations (174 ) Balance at May 31, 2019 $ 1,621 |
Summary of Tax Years Open to Examination by Major Tax Jurisdiction | The following is a summary of the tax years open to examination by major tax jurisdiction: U.S. Federal –2015 and forward U.S. State and Local –2014 and forward Austria – 2016 and forward Canada –2015 and forward Mexico – 2014 and forward Portugal – 2015 and forward |
Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities as of May 31 were as follows: (in thousands) 2019 2018 Deferred tax assets Accounts receivable $ 1,516 $ 1,455 Inventories 5,649 5,004 Accrued expenses 21,195 23,219 Net operating loss carry forwards 16,433 14,201 Stock-based compensation 10,989 10,588 Derivative contracts 2,054 - Other 316 1,313 Total deferred tax assets 58,152 55,780 Valuation allowance for deferred tax assets (14,619 ) (14,006 ) Net deferred tax assets 43,533 41,774 Deferred tax liabilities Property, plant and equipment (91,732 ) (74,512 ) Investment in affiliated companies, principally due to undistributed earnings (23,035 ) (22,918 ) Derivative contracts - (2,653 ) Other (2,868 ) (1,879 ) Total deferred tax liability (117,635 ) (101,962 ) Net deferred tax liability $ (74,102 ) $ (60,188 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
May 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share for the fiscal years ended May 31: (in thousands, except per share amounts) 2019 2018 2017 Numerator (basic & diluted): Net earnings attributable to controlling interest - income available to common shareholders $ 153,455 $ 194,794 $ 204,515 Denominator: Denominator for basic earnings per share attributable to controlling interest - weighted average common shares 57,196 60,923 62,443 Effect of dilutive securities 1,627 2,119 2,431 Denominator for diluted earnings per share attributable to controlling interest - adjusted weighted average common shares 58,823 63,042 64,874 Basic earnings per share attributable to controlling interest $ 2.68 $ 3.20 $ 3.28 Diluted earnings per share attributable to controlling interest $ 2.61 $ 3.09 $ 3.15 |
Segment Data (Tables)
Segment Data (Tables) | 12 Months Ended |
May 31, 2019 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | The following table presents summarized financial information for our reportable business segments as of, and for the fiscal years ended, May 31: (in thousands) 2019 2018 2017 Net sales Steel Processing $ 2,435,818 $ 2,252,771 $ 2,074,869 Pressure Cylinders 1,207,798 1,206,183 829,846 Engineered Cabs 115,902 116,631 101,388 Other 38 6,035 8,005 Total net sales $ 3,759,556 $ 3,581,620 $ 3,014,108 Operating income (loss) Steel Processing $ 89,761 $ 152,690 $ 170,481 Pressure Cylinders 69,872 23,396 54,098 Engineered Cabs (14,664 ) (11,305 ) (7,685 ) Other (205 ) (23,171 ) (3,773 ) Total operating income $ 144,764 $ 141,610 $ 213,121 Depreciation and amortization Steel Processing $ 40,374 $ 43,331 $ 42,861 Pressure Cylinders 42,403 46,691 31,052 Engineered Cabs 5,687 5,415 5,197 Other 7,138 7,922 7,683 Total depreciation and amortization $ 95,602 $ 103,359 $ 86,793 Impairment of goodwill and long-lived assets Steel Processing $ 3,269 $ - $ - Pressure Cylinders 4,548 53,883 - Engineered Cabs - - - Other - 7,325 - Total impairment of goodwill and long-lived assets $ 7,817 $ 61,208 $ - Restructuring and other expense (income), net Steel Processing $ (9 ) $ (10,087 ) $ 1,828 Pressure Cylinders (11,009 ) 2,365 3,411 Engineered Cabs - (78 ) 1,219 Other - 379 (47 ) Total restructuring and other expense (income), net $ (11,018 ) $ (7,421 ) $ 6,411 Total assets Steel Processing $ 924,966 $ 999,238 $ 882,863 Pressure Cylinders 1,123,115 1,147,268 766,611 Engineered Cabs 66,226 66,456 62,141 Other 396,489 408,825 613,729 Total assets $ 2,510,796 $ 2,621,787 $ 2,325,344 Capital expenditures Steel Processing $ 39,114 $ 31,966 $ 40,775 Pressure Cylinders 37,558 32,697 24,798 Engineered Cabs 1,131 2,067 755 Other 6,696 9,358 2,058 Total capital expenditures $ 84,499 $ 76,088 $ 68,386 |
Net Sales by Geographic Region | The following table presents net sales by geographic region for the fiscal years ended May 31: (in thousands) 2019 2018 2017 North America $ 3,559,650 $ 3,275,090 $ 2,805,182 International 199,906 306,530 208,926 Total $ 3,759,556 $ 3,581,620 $ 3,014,108 |
Property, Plant and Equipment, Net by Geographic Region | The following table presents property, plant and equipment, net, by geographic region as of May 31: (in thousands) 2019 2018 North America $ 514,519 $ 512,439 International 64,145 72,531 Total $ 578,664 $ 584,970 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
May 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Acquisition of Intangible Assets | In connection with the acquisition, we identified and valued the following identifiable intangible assets: (in thousands) Useful Life Category Amount (Years) Customer relationships $ 90,800 14-17 Trade names 62,200 Indefinite Technology 13,000 15-16 Total acquired identifiable intangible assets $ 166,000 |
Schedule of Consideration Transferred for the Assets of Amtrol and the Preliminary Fair Value Assigned to Assets Acquired And Liabilities Assumed | The following table summarized the consideration transferred for the assets of AMTROL and the fair value assigned to the assets acquired and liabilities assumed at the acquisition date: Measurement Preliminary Period Revised (in thousands) Valuation Adjustments Valuation Cash $ 6,893 $ - $ 6,893 Accounts receivable 40,212 - 40,212 Inventories 37,249 - 37,249 Prepaid expenses 981 - 981 Other assets 2,550 - 2,550 Intangible assets 166,000 - 166,000 Property, plant and equipment 52,870 - 52,870 Total assets 306,755 - 306,755 Accounts payable 25,945 - 25,945 Accrued liabilities 21,016 - 21,016 Long-term debt including current maturities 2,287 - 2,287 Other accrued items 3,993 1,501 5,494 Deferred income taxes, net 64,495 (966 ) 63,529 Net identifiable assets 189,019 (535 ) 188,484 Goodwill 102,902 535 103,437 Purchase price $ 291,921 $ - $ 291,921 |
Summary of Unaudited Pro forma Results | (in thousands, except per share amounts) 2018 2017 Net sales $ 3,581,620 $ 3,263,315 Net earnings attributable to controlling interest $ 199,038 $ 215,182 Diluted earnings per share attributable to controlling interest $ 3.16 $ 3.32 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
May 31, 2019 | |
Schedule of Fair Value of Derivative Instruments | The following table summarizes the fair value of our derivative instruments and the respective line in which they were recorded in the consolidated balance sheet at May 31, 2019 Asset Derivatives Liability Derivatives Balance Balance Sheet Fair Sheet Fair (in thousands) Location Value Location Value Derivatives designated as hedging instruments: Commodity contracts Receivables $ 5 Accounts payable $ 8,383 Other assets - Other liabilities 201 Totals $ 5 $ 8,584 Derivatives not designated as hedging instruments: Commodity contracts Receivables $ 2,347 Accounts payable $ 3,568 Other assets 62 Other liabilities 66 2,409 3,634 Foreign exchange contracts Receivables - Accounts payable 20 Totals $ 2,409 $ 3,654 Total derivative instruments $ 2,414 $ 12,238 The following table summarizes the fair value of our derivative instruments and the respective line in which they were recorded in the consolidated balance sheet at May 31, 2018 Asset Derivatives Liability Derivatives Balance Balance Sheet Fair Sheet Fair (in thousands) Location Value Location Value Derivatives designated as hedging instruments: Commodity contracts Receivables $ 6,385 Accounts payable $ - Other assets 68 Other liabilities - Totals $ 6,453 $ - Derivatives not designated as hedging instruments: Commodity contracts Receivables $ 4,749 Accounts payable $ 613 Other assets 221 Other liabilities 158 4,970 771 Foreign exchange contracts Receivables - Accounts payable 75 Totals $ 4,970 $ 846 Total derivative instruments $ 11,423 $ 846 |
Schedule of Derivatives Designated as Cash Flow Hedging Instruments | The following table summarizes the gain recognized in OCI and the gain (loss) reclassified from AOCI into earnings for derivative instruments designated as cash flow hedges during fiscal 2019 and fiscal 2018: Location of Location of Gain Gain Gain (Loss) Gain (Loss) (Ineffective (Ineffective Gain (Loss) Reclassified Reclassified Portion) Portion) Recognized from from Excluded Excluded in OCI AOCI AOCI from from (Effective (Effective (Effective Effectiveness Effectiveness (in thousands) Portion) Portion) Portion) Testing Testing For the fiscal year ended May 31, 2019: Interest rate contracts $ - Interest expense $ (162 ) Interest expense $ - Commodity contracts (12,637 ) Cost of goods sold 3,752 Cost of goods sold - Totals $ (12,637 ) $ 3,590 $ - For the fiscal year ended May 31, 2018: Interest rate contracts $ 3,363 Interest expense $ (407 ) Interest expense $ - Commodity contracts 11,620 Cost of goods sold 14,034 Cost of goods sold - Totals $ 14,983 $ 13,627 $ - |
Schedule of Gain (Loss) Recognized in Earnings for Economic (Non-Designated) Derivative Financial Instruments | The following table summarizes the gain (loss) recognized in earnings for economic (non-designated) derivative financial instruments during fiscal 2019 and fiscal 2018: Gain (Loss) Recognized in Earnings Fiscal Year Ended Location of Gain (Loss) May 31, (in thousands) Recognized in Earnings 2019 2018 Commodity contracts Cost of goods sold $ (5,114 ) $ 6,284 Foreign exchange contracts Miscellaneous income, net (3,604 ) (264 ) Total $ (8,718 ) $ 6,020 |
Derivatives Not Designated As Hedging Instruments | |
Schedule of Summary of Derivative Hedges | The following table summarizes our economic (non-designated) derivative instruments outstanding at May 31, 2019: Notional (in thousands) Amount Maturity Date(s) Commodity contracts $ 53,310 June 2019 - August 2020 Foreign exchange contracts 8,590 June 2019 - March 2020 |
Cash Flow Hedges | |
Schedule of Summary of Derivative Hedges | The following table summarizes our cash flow hedges outstanding at May 31, 2019: Notional (in thousands) Amount Maturity Date Commodity contracts $ 61,454 June 2019 - December 2020 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
May 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | At May 31, 2019 Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Derivative contracts (1) $ - $ 2,414 $ - $ 2,414 Total assets $ - $ 2,414 $ - $ 2,414 Liabilities Derivative contracts (1) $ - $ 12,238 $ - $ 12,238 Total liabilities $ - $ 12,238 $ - $ 12,238 At May 31, 2018 Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Derivative contracts (1) $ - $ 11,423 $ - $ 11,423 Total assets $ - $ 11,423 $ - $ 11,423 Liabilities Derivative contracts (1) $ - $ 846 $ - $ 846 Total liabilities $ - $ 846 $ - $ 846 (1) The fair value of our derivative contracts was based on the present value of the expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Market observable, Level 2 inputs are used to determine the present value of the expected future cash flows. Refer to “ Note Q – Derivative Instruments and Hedging Activities |
Assets Measured at Fair Value on Non-Recurring Basis | At May 31, 2019, our assets measured at fair value on a non-recurring basis were categorized as follows: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Investment in unconsolidated affiliate (1) $ - $ 3,700 $ - $ 3,700 Long-lived assets held and used (2) - 1,238 - 1,238 Long-lived assets held for sale (3) - 7,000 - 7,000 Total assets $ - $ 11,938 $ - $ 11,938 At May 31, 2018, our assets measured at fair value on a non-recurring basis were categorized as follows: Quoted Significant Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Long-lived assets held for sale (4) $ - $ 30,000 $ - $ 30,000 Total assets $ - $ 30,000 $ - $ 30,000 (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 within equity in net income of unconsolidated affiliates. (2) 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, resulting in an impairment charge of $3,269,000. (3) 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. (4) 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 |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
May 31, 2019 | |
Leases [Abstract] | |
Future Minimum Lease Payments for Noncancelable Operating Leases | Future minimum lease payments for non-cancelable operating leases having an initial or remaining term in excess of one year at May 31, 2019, were as follows: (in thousands) 2020 $ 10,774 2021 8,398 2022 5,428 2023 4,054 2024 2,098 Thereafter 2,637 Total $ 33,389 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
May 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Consolidated Results of Operations | The following table summarizes the unaudited quarterly consolidated results of operations for fiscal 2019 and fiscal 2018: (in thousands, except per share) Three Months Ended Fiscal 2019 August 31 November 30 February 28 May 31 Net sales $ 988,107 $ 958,226 $ 874,381 $ 938,842 Gross margin 142,997 120,934 90,021 126,003 Impairment of long-lived assets (1) 2,381 - - 5,436 Net earnings 56,958 37,792 29,548 38,975 Net earnings attributable to controlling interest 54,942 34,002 26,773 37,738 Basic earnings per share - controlling interest $ 0.94 $ 0.59 $ 0.47 $ 0.68 Diluted earnings per share - controlling interest $ 0.91 $ 0.57 $ 0.46 $ 0.66 Fiscal 2018 August 31 November 30 February 28 May 31 Net sales $ 848,237 $ 871,266 $ 841,657 $ 1,020,460 Gross margin 132,778 140,079 127,055 162,946 Impairment of goodwill and long-lived assets (1) - 8,289 - 52,919 Net earnings 48,074 41,622 78,297 32,857 Net earnings attributable to controlling interest 45,534 39,403 79,087 30,769 Basic earnings per share - controlling interest $ 0.73 $ 0.64 $ 1.31 $ 0.52 Diluted earnings per share - controlling interest $ 0.70 $ 0.62 $ 1.27 $ 0.50 (1) For additional information regarding the Company’s impairment activity, refer to “Note D – Goodwill and Other Long-Lived Assets.” |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | May 23, 2018USD ($) | May 31, 2018USD ($) | May 31, 2019USD ($)JointVentureFacilitySegmentCustomer | May 31, 2018USD ($) | May 31, 2017USD ($) |
Significant Accounting Policies [Line Items] | |||||
Number of joint ventures | JointVenture | 9 | ||||
Derivative financial instruments, credit losses | $ 0 | ||||
Number of manufacturing facilities operated | Facility | 31 | ||||
Number of reportable segments | Segment | 3 | ||||
Allowance for doubtful accounts increase (decrease) | $ (518,000) | ||||
Receivables, allowances | $ 632,000 | 1,150,000 | $ 632,000 | ||
Depreciation Expenses | 80,316,000 | 83,680,000 | $ 73,268,000 | ||
Advertising Expenses | $ 15,574,000 | 15,236,000 | $ 14,822,000 | ||
Reclassification of stranded tax effects | $ 1,701,000 | $ (1,701,000) | |||
Building and Improvements | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 10 years | ||||
Building and Improvements | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 40 years | ||||
Machinery and Equipment | Minimum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 3 years | ||||
Machinery and Equipment | Maximum | |||||
Significant Accounting Policies [Line Items] | |||||
Property, plant and equipment, estimated useful life | 20 years | ||||
Oil & gas equipment | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated fair value of reporting unit, percentage | 13.00% | ||||
Largest Customer | |||||
Significant Accounting Policies [Line Items] | |||||
Number of customers | Customer | 10 | ||||
Sales Revenue, Net | Product Concentration Risk | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 38.00% | 37.00% | 43.00% | ||
Sales Revenue, Net | Foreign Operations | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 5.00% | 9.00% | 7.00% | ||
Sales Revenue, Net | Customer Concentration Risk | Largest Customer | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 9.00% | ||||
Sales Revenue, Net | Customer Concentration Risk | Ten Largest Customers | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 31.00% | ||||
Net Earnings | Foreign Operations | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 6.00% | 6.00% | 4.00% | ||
Net Assets, Geographic Area | Foreign Operations | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 13.00% | 14.00% | |||
Workforce Subject to Collective Bargaining Arrangements | Labor Force Concentration Risk [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Concentration risk percentage | 8.00% | ||||
Joint Venture Transactions | |||||
Significant Accounting Policies [Line Items] | |||||
Number of joint ventures | JointVenture | 3 | ||||
Number of manufacturing facilities operated | Facility | 46 | ||||
Spartan | Joint Venture Transactions | |||||
Significant Accounting Policies [Line Items] | |||||
Percent of controlling interest by the Company | 52.00% | ||||
TWB | Joint Venture Transactions | |||||
Significant Accounting Policies [Line Items] | |||||
Percent of controlling interest by the Company | 55.00% | ||||
Worthington Specialty Processing | Joint Venture Transactions | |||||
Significant Accounting Policies [Line Items] | |||||
Percent of controlling interest by the Company | 51.00% | ||||
Worthington Aritas | |||||
Significant Accounting Policies [Line Items] | |||||
Purchase of noncontrolling interest and its carrying value | $ (1,913,000) | ||||
Worthington Aritas | Additional Paid-in Capital | |||||
Significant Accounting Policies [Line Items] | |||||
Purchase of noncontrolling interest and its carrying value | $ 924,000 | $ 924,000 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Accounting Policies [Abstract] | |||
Interest paid, net of amount capitalized | $ 38,807 | $ 34,839 | $ 29,826 |
Income taxes paid, net of refunds | $ 38,848 | $ 44,819 | $ 55,652 |
Revenue Recognition - Cumulativ
Revenue Recognition - Cumulative Effect of Adopting New Revenue Recognition Guidance on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | May 31, 2019 | Jun. 01, 2018 | May 31, 2018 |
ASSETS | |||
Receivables | $ 501,944 | $ 572,689 | |
Total inventories | 484,280 | 454,027 | |
Prepaid expenses and other current assets | 69,508 | 60,134 | |
LIABILITIES AND EQUITY | |||
Deferred income taxes, net | 74,102 | 60,188 | |
Retained earnings | 591,533 | 637,757 | |
Noncontrolling interests | 117,148 | $ 117,606 | |
Accounting Standards Update 2014-09 | |||
ASSETS | |||
Receivables | $ 577,395 | ||
Total inventories | 450,575 | ||
Prepaid expenses and other current assets | 61,078 | ||
LIABILITIES AND EQUITY | |||
Deferred income taxes, net | 60,642 | ||
Retained earnings | 638,931 | ||
Noncontrolling interests | 118,176 | ||
Accounting Standards Update 2014-09 | Cumulative Effect of Topic 606 Adoption | |||
ASSETS | |||
Receivables | (5,367) | 4,706 | |
Total inventories | 8,704 | (3,452) | |
Prepaid expenses and other current assets | (6,891) | 944 | |
LIABILITIES AND EQUITY | |||
Deferred income taxes, net | (360) | 454 | |
Retained earnings | 1,174 | ||
Noncontrolling interests | $ (554) | $ 570 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Thousands | 12 Months Ended |
May 31, 2019USD ($) | |
Revenue Recognition [Line Items] | |
Returns and allowances increase (decrease) | $ 546 |
Returns and Allowances | $ 6,745 |
Minimum | |
Revenue Recognition [Line Items] | |
Period allowed for payment of dues to customers | 30 days |
Maximum | |
Revenue Recognition [Line Items] | |
Period allowed for payment of dues to customers | 60 days |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Detail1) | May 31, 2019 |
Maximum | Accounting Standards Update 2014-09 | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-11-30 | |
Revenue Recognition [Line Items] | |
Duration to satisfy performance obligation for contracts | 1 year |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Product Class and Timing (Detail) $ in Thousands | 12 Months Ended |
May 31, 2019USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Net sales | $ 3,759,556 |
Goods transferred at a point in time | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 3,557,335 |
Goods and services transferred over time | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 202,221 |
Steel Processing | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 2,435,818 |
Steel Processing | Goods transferred at a point in time | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 2,308,756 |
Steel Processing | Goods and services transferred over time | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 127,062 |
Pressure Cylinders | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 1,207,798 |
Pressure Cylinders | Goods transferred at a point in time | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 1,132,639 |
Pressure Cylinders | Goods and services transferred over time | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 75,159 |
Engineered Cabs | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 115,902 |
Engineered Cabs | Goods transferred at a point in time | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 115,902 |
Other | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 38 |
Other | Goods transferred at a point in time | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 38 |
Direct | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 2,308,756 |
Direct | Steel Processing | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 2,308,756 |
Toll | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 127,062 |
Toll | Steel Processing | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 127,062 |
Industrial products | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 627,053 |
Industrial products | Pressure Cylinders | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 627,053 |
Consumer products | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 470,447 |
Consumer products | Pressure Cylinders | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 470,447 |
Oil & gas equipment | |
Disaggregation Of Revenue [Line Items] | |
Net sales | 110,298 |
Oil & gas equipment | Pressure Cylinders | |
Disaggregation Of Revenue [Line Items] | |
Net sales | $ 110,298 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Adjustments on Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | Jun. 01, 2018 | ||
ASSETS | |||||||||||||
Receivables | $ 501,944 | $ 572,689 | $ 501,944 | $ 572,689 | |||||||||
Total inventories | 484,280 | 454,027 | 484,280 | 454,027 | |||||||||
Prepaid expenses and other current assets | 69,508 | 60,134 | 69,508 | 60,134 | |||||||||
Income tax receivable | 10,894 | 10,894 | |||||||||||
LIABILITIES AND EQUITY | |||||||||||||
Income taxes payable | 1,164 | 4,593 | 1,164 | 4,593 | |||||||||
Deferred income taxes, net | 74,102 | 60,188 | 74,102 | 60,188 | |||||||||
Shareholders' equity - controlling interest | 831,246 | 918,769 | 831,246 | 918,769 | |||||||||
Noncontrolling interests | 117,148 | 117,606 | 117,148 | 117,606 | |||||||||
Consolidated Statement of Earnings | |||||||||||||
Net sales | 938,842 | $ 874,381 | $ 958,226 | $ 988,107 | 1,020,460 | $ 841,657 | $ 871,266 | $ 848,237 | 3,759,556 | 3,581,620 | $ 3,014,108 | ||
Cost of goods sold | 3,279,601 | 3,018,763 | 2,478,203 | ||||||||||
Income tax expense | 43,183 | 8,220 | 79,190 | ||||||||||
Net earnings | 38,975 | 29,548 | 37,792 | 56,958 | 32,857 | 78,297 | 41,622 | 48,074 | 163,273 | 200,850 | 217,937 | ||
Net earnings attributable to noncontrolling interests | [1] | 9,818 | 6,056 | 13,422 | |||||||||
Net earnings attributable to controlling interest | 37,738 | $ 26,773 | $ 34,002 | $ 54,942 | $ 30,769 | $ 79,087 | $ 39,403 | $ 45,534 | 153,455 | $ 194,794 | $ 204,515 | ||
Accounting Standards Update 2014-09 | |||||||||||||
ASSETS | |||||||||||||
Receivables | $ 577,395 | ||||||||||||
Total inventories | 450,575 | ||||||||||||
Prepaid expenses and other current assets | 61,078 | ||||||||||||
LIABILITIES AND EQUITY | |||||||||||||
Deferred income taxes, net | 60,642 | ||||||||||||
Noncontrolling interests | 118,176 | ||||||||||||
Accounting Standards Update 2014-09 | Topic 606 Adjustments | |||||||||||||
ASSETS | |||||||||||||
Receivables | (5,367) | (5,367) | 4,706 | ||||||||||
Total inventories | 8,704 | 8,704 | (3,452) | ||||||||||
Prepaid expenses and other current assets | (6,891) | (6,891) | 944 | ||||||||||
Income tax receivable | 425 | 425 | |||||||||||
LIABILITIES AND EQUITY | |||||||||||||
Income taxes payable | 12 | 12 | |||||||||||
Deferred income taxes, net | (360) | (360) | 454 | ||||||||||
Shareholders' equity - controlling interest | (2,227) | (2,227) | |||||||||||
Noncontrolling interests | (554) | (554) | $ 570 | ||||||||||
Consolidated Statement of Earnings | |||||||||||||
Net sales | (6,608) | ||||||||||||
Cost of goods sold | (5,253) | ||||||||||||
Income tax expense | (319) | ||||||||||||
Net earnings | (1,036) | ||||||||||||
Net earnings attributable to noncontrolling interests | 16 | ||||||||||||
Net earnings attributable to controlling interest | (1,052) | ||||||||||||
Accounting Standards Update 2014-09 | Balances Without Adoption of Topic 606 | |||||||||||||
ASSETS | |||||||||||||
Receivables | 496,577 | 496,577 | |||||||||||
Total inventories | 492,984 | 492,984 | |||||||||||
Prepaid expenses and other current assets | 62,617 | 62,617 | |||||||||||
Income tax receivable | 11,319 | 11,319 | |||||||||||
LIABILITIES AND EQUITY | |||||||||||||
Income taxes payable | 1,176 | 1,176 | |||||||||||
Deferred income taxes, net | 73,742 | 73,742 | |||||||||||
Shareholders' equity - controlling interest | 829,019 | 829,019 | |||||||||||
Noncontrolling interests | $ 116,594 | 116,594 | |||||||||||
Consolidated Statement of Earnings | |||||||||||||
Net sales | 3,752,948 | ||||||||||||
Cost of goods sold | 3,274,348 | ||||||||||||
Income tax expense | 42,864 | ||||||||||||
Net earnings | 162,237 | ||||||||||||
Net earnings attributable to noncontrolling interests | 9,834 | ||||||||||||
Net earnings attributable to controlling interest | $ 152,403 | ||||||||||||
[1] | Net earnings attributable to noncontrolling interests are not taxable to Worthington. |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Oct. 31, 2018USD ($) | Sep. 30, 2018USD ($) | May 31, 2019USD ($)Entity | Aug. 31, 2018USD ($) | [1] | May 31, 2018USD ($) | Nov. 30, 2017USD ($) | [1] | May 31, 2019USD ($)Entity | May 31, 2018USD ($) | May 31, 2017USD ($) | |||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
Impairment charge | $ 5,436 | [1] | $ 2,381 | $ 52,919 | [1] | $ 8,289 | $ 7,817 | $ 61,208 | |||||
Distributions from unconsolidated affiliates | 161,079 | 89,787 | $ 102,015 | ||||||||||
Distributions in excess of investment in unconsolidated affiliate | $ 121,948 | 55,198 | 121,948 | 55,198 | |||||||||
Proceeds from sale of equity method investments | $ 45,000 | ||||||||||||
Number of largest unconsolidated affiliates | Entity | 4 | 4 | |||||||||||
Consolidated retained earnings undistributed earnings net of tax | $ 46,838 | 42,636 | $ 46,838 | 42,636 | |||||||||
ArtiFlex | |||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
Percent of ownership interest held in unconsolidated affiliates | 50.00% | 50.00% | |||||||||||
ClarkDietrich | |||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
Percent of ownership interest held in unconsolidated affiliates | 25.00% | 25.00% | |||||||||||
Samuel Steel Pickling Company | |||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
Percent of ownership interest held in unconsolidated affiliates | 31.25% | 31.25% | |||||||||||
Serviacero Worthington | |||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
Percent of ownership interest held in unconsolidated affiliates | 50.00% | 50.00% | |||||||||||
WAVE | |||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
Percent of ownership interest held in unconsolidated affiliates | 50.00% | 50.00% | |||||||||||
Distributions in excess of investment in unconsolidated affiliate | $ 121,948 | $ 55,198 | $ 121,948 | $ 55,198 | |||||||||
Proceeds from sale of equity method investments | $ 90,000 | ||||||||||||
Pending of sale related to international operations | $ 35,000 | ||||||||||||
Financing transaction | $ 25,000 | ||||||||||||
Zhejiang Nisshin Worthington Precision Specialty Steel Co | |||||||||||||
Investments in and Advances to Affiliates [Line Items] | |||||||||||||
Percent of ownership interest held in unconsolidated affiliates | 10.00% | 10.00% | |||||||||||
Impairment charge | $ 4,017 | $ 4,017 | |||||||||||
Estimated fair value of investments | $ 3,700 | $ 3,700 | |||||||||||
[1] | For additional information regarding the Company’s impairment activity, refer to “Note D – Goodwill and Other Long-Lived Assets.” |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates - Schedule of Combined Financial Information for Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Equity Method Investments And Joint Ventures [Abstract] | ||
Cash | $ 37,471 | $ 52,812 |
Other current assets | 594,959 | 590,578 |
Current assets for discontinued operations | 35,793 | 37,640 |
Noncurrent assets | 360,925 | 358,927 |
Total assets | 1,029,148 | 1,039,957 |
Current liabilities | 236,781 | 166,493 |
Current liabilities for discontinued operations | 9,610 | 7,142 |
Short-term borrowings | 15,162 | 26,599 |
Current maturities of long-term debt | 33,003 | 23,243 |
Long-term debt | 321,791 | 259,588 |
Other noncurrent liabilities | 18,192 | 17,536 |
Equity | 394,609 | 539,356 |
Total liabilities and equity | $ 1,029,148 | $ 1,039,957 |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliates - Financial Results of Four Largest Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Investments in and Advances to Affiliates [Line Items] | ||||
Net sales | $ 1,857,811 | $ 1,692,019 | $ 1,547,787 | |
Gross margin (loss) | 341,278 | 343,281 | 374,044 | |
Operating income (loss) | 221,549 | 222,893 | 263,813 | |
Depreciation and amortization | 26,483 | 25,365 | 26,106 | |
Interest expense | 13,395 | 10,209 | 8,720 | |
Income tax expense (benefit) | 7,877 | 5,468 | 14,134 | |
Net earnings (loss) | 209,232 | 206,976 | 250,748 | |
WAVE | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Net sales | 379,103 | 360,395 | 334,031 | |
Gross margin (loss) | 205,909 | 201,581 | 190,350 | |
Operating income (loss) | 166,969 | 158,697 | 158,030 | |
Depreciation and amortization | 3,634 | 3,318 | 2,978 | |
Interest expense | 10,547 | 8,365 | 7,182 | |
Income tax expense (benefit) | 219 | 119 | 2,398 | |
Net earnings (loss) | [1] | 162,849 | 152,329 | 154,866 |
ClarkDietrich | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Net sales | 892,758 | 790,887 | 711,735 | |
Gross margin (loss) | 93,947 | 97,437 | 128,098 | |
Operating income (loss) | 33,384 | 39,153 | 68,696 | |
Depreciation and amortization | 11,600 | 11,864 | 12,718 | |
Interest expense | 912 | 114 | 20 | |
Net earnings (loss) | 34,560 | 39,138 | 69,122 | |
Serviacero Worthington | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Net sales | 351,671 | 315,098 | 275,315 | |
Gross margin (loss) | 34,494 | 32,396 | 37,080 | |
Operating income (loss) | 25,636 | 24,232 | 29,975 | |
Depreciation and amortization | 4,319 | 3,919 | 3,862 | |
Interest expense | 493 | 397 | 89 | |
Income tax expense (benefit) | 7,629 | 5,141 | 11,740 | |
Net earnings (loss) | 16,155 | 17,577 | 18,140 | |
ArtiFlex | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Net sales | 201,526 | 197,061 | 208,922 | |
Gross margin (loss) | 12,928 | 18,266 | 22,829 | |
Operating income (loss) | 5,524 | 11,395 | 15,519 | |
Depreciation and amortization | 6,055 | 5,515 | 5,850 | |
Interest expense | 1,443 | 1,333 | 1,429 | |
Income tax expense (benefit) | 29 | 208 | (2) | |
Net earnings (loss) | 4,051 | 9,854 | 14,092 | |
Other [Member] | ||||
Investments in and Advances to Affiliates [Line Items] | ||||
Net sales | 32,753 | 28,578 | 17,784 | |
Gross margin (loss) | (6,000) | (6,399) | (4,313) | |
Operating income (loss) | (9,964) | (10,584) | (8,407) | |
Depreciation and amortization | 875 | 749 | 698 | |
Income tax expense (benefit) | (2) | |||
Net earnings (loss) | $ (8,383) | $ (11,922) | $ (5,472) | |
[1] | These net earnings include net income attributable to discontinued operations of $6,830,000, $2,226,000, and $6,775,000 in fiscal 2019, fiscal 2018, and fiscal 2017, respectively, related to the international operations of WAVE being sold. All other amounts presented in the table above exclude the activity of the discontinued operations of WAVE. |
Investments in Unconsolidated_6
Investments in Unconsolidated Affiliates - Financial Results of Four Largest Unconsolidated Affiliates (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
WAVE | Discontinued Operations Held for Sale | |||
Investments in and Advances to Affiliates [Line Items] | |||
Net income attributable to discontinued operations | $ 6,830 | $ 2,226 | $ 6,775 |
Goodwill and Other Long-Lived_3
Goodwill and Other Long-Lived Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Goodwill [Line Items] | ||||
Goodwill, gross | $ 510,800 | $ 521,376 | $ 414,200 | |
Accumulated impairment losses | (176,193) | (176,193) | (166,527) | |
Goodwill, net | 334,607 | 345,183 | 247,673 | |
Acquisitions and purchase accounting adjustments | [1] | 777 | 103,437 | |
Translation adjustments | (4,093) | 3,739 | ||
Impairment losses | [2] | (9,666) | ||
Divestitures | [3] | (7,260) | ||
Goodwill, period increase (decrease) | (10,576) | 97,510 | ||
Steel Processing | ||||
Goodwill [Line Items] | ||||
Goodwill, gross | 7,899 | 7,899 | 7,899 | |
Goodwill, net | 7,899 | 7,899 | 7,899 | |
Pressure Cylinders | ||||
Goodwill [Line Items] | ||||
Goodwill, gross | 330,723 | 341,299 | 234,123 | |
Accumulated impairment losses | (4,015) | (4,015) | ||
Goodwill, net | 326,708 | 337,284 | 234,123 | |
Acquisitions and purchase accounting adjustments | [1] | 777 | 103,437 | |
Translation adjustments | (4,093) | 3,739 | ||
Impairment losses | [2] | (4,015) | ||
Divestitures | [3] | (7,260) | ||
Goodwill, period increase (decrease) | (10,576) | 103,161 | ||
Engineered Cabs | ||||
Goodwill [Line Items] | ||||
Goodwill, gross | 44,933 | 44,933 | 44,933 | |
Accumulated impairment losses | (44,933) | (44,933) | (44,933) | |
Other | ||||
Goodwill [Line Items] | ||||
Goodwill, gross | 127,245 | 127,245 | 127,245 | |
Accumulated impairment losses | $ (127,245) | (127,245) | (121,594) | |
Goodwill, net | $ 5,651 | |||
Impairment losses | [2] | (5,651) | ||
Goodwill, period increase (decrease) | $ (5,651) | |||
[1] | For additional information regarding the Company’s acquisitions, refer to “Note P – Acquisitions.” | |||
[2] | Fiscal 2018 impairment charges included $4,015,000 of goodwill allocated to oil & gas equipment assets prior to their disposal on July 31, 2018 and $5,651,000 related to the sale of a 65% stake in WEI on March 31, 2018. | |||
[3] | Fiscal 2019 divestitures included the sale of the operating assets and real property related to the solder business and certain brazing assets. |
Goodwill and Other Long-Lived_4
Goodwill and Other Long-Lived Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) (Parenthetical) $ in Thousands | 12 Months Ended | |
May 31, 2018USD ($) | ||
Goodwill [Line Items] | ||
Impairment losses | $ 9,666 | [1] |
Oil and Gas Equipment | ||
Goodwill [Line Items] | ||
Impairment losses | 4,015 | |
WEI Reporting Unit | ||
Goodwill [Line Items] | ||
Impairment losses | $ 5,651 | |
Sale of stake, percentage | 65.00% | |
[1] | Fiscal 2018 impairment charges included $4,015,000 of goodwill allocated to oil & gas equipment assets prior to their disposal on July 31, 2018 and $5,651,000 related to the sale of a 65% stake in WEI on March 31, 2018. |
Goodwill and Other Long-Lived_5
Goodwill and Other Long-Lived Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
May 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Nov. 30, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Amortization expense | $ 15,286 | $ 19,679 | $ 13,525 | |||||||||
Impairment of goodwill and long-lived assets | $ 5,436 | [1] | $ 2,381 | [1] | $ 52,919 | [1] | $ 8,289 | [1] | 7,817 | 61,208 | ||
Impairment losses | [2] | 9,666 | ||||||||||
WEI Reporting Unit | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Impairment of goodwill and long-lived assets | 7,325 | |||||||||||
Impairment losses | 5,651 | |||||||||||
Oil And Gas Equipment | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Impairment of goodwill and long-lived assets | 10,497 | |||||||||||
Impairment of fixed assets | 2,633 | |||||||||||
Impairment of intangible assets | 3,849 | |||||||||||
Impairment losses | 4,015 | |||||||||||
Land | Bremen, Ohio | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Impairment of goodwill and long-lived assets | $ 964 | |||||||||||
Worthington Aritas | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Impairment of goodwill and long-lived assets | 2,381 | 42,422 | ||||||||||
Impairment of fixed assets | 19,621 | |||||||||||
Impairment of intangible assets | 11,549 | |||||||||||
Impairment of other assets | 11,252 | |||||||||||
CNG Fuel Systems | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Impairment of goodwill and long-lived assets | 2,167 | |||||||||||
CNG Fuel Systems | Long Lived Assets Held And Used | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Carrying value long-lived assets | 2,405 | 2,405 | ||||||||||
Canton | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Impairment of goodwill and long-lived assets | 3,269 | |||||||||||
Canton | Long Lived Assets Held And Used | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Carrying value long-lived assets | 4,269 | |||||||||||
Fair Value, Measurements, Nonrecurring | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Fair market value of assets | 11,938 | 30,000 | 11,938 | 30,000 | ||||||||
Fair Value, Measurements, Nonrecurring | Oil And Gas Equipment | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Fair market value of assets | 21,000 | 21,000 | ||||||||||
Fair Value, Measurements, Nonrecurring | Worthington Aritas | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Fair market value of assets | $ 7,000 | $ 9,000 | $ 9,000 | |||||||||
Fair Value, Measurements, Nonrecurring | Long Lived Assets Held And Used | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Fair market value of assets | [3] | 1,238 | 1,238 | |||||||||
Fair Value, Measurements, Nonrecurring | CNG Fuel Systems | Long Lived Assets Held And Used | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Fair market value of assets | 238 | 238 | ||||||||||
Fair Value, Measurements, Nonrecurring | Canton | Long Lived Assets Held And Used | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Fair market value of assets | $ 1,000 | $ 1,000 | ||||||||||
Minimum | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Definite-lived intangible assets, estimated useful lives | 1 year | |||||||||||
Maximum | ||||||||||||
Goodwill And Other Intangible Assets [Line Items] | ||||||||||||
Definite-lived intangible assets, estimated useful lives | 20 years | |||||||||||
[1] | For additional information regarding the Company’s impairment activity, refer to “Note D – Goodwill and Other Long-Lived Assets.” | |||||||||||
[2] | Fiscal 2018 impairment charges included $4,015,000 of goodwill allocated to oil & gas equipment assets prior to their disposal on July 31, 2018 and $5,651,000 related to the sale of a 65% stake in WEI on March 31, 2018. | |||||||||||
[3] | 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 $1,000,000 |
Goodwill and Other Long-Lived_6
Goodwill and Other Long-Lived Assets - Summary of Other Intangible Assets by Class (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Other Intangible Assets [Line Items] | ||
Indefinite-lived intangibles assets, Cost | $ 74,801 | $ 76,701 |
Definite-lived intangibles assets, Cost | 209,017 | 212,247 |
Total intangible assets, Cost | 283,818 | 288,948 |
Definite-lived intangible assets, Accumulated Amortization | 87,759 | 74,922 |
Trademarks | ||
Other Intangible Assets [Line Items] | ||
Indefinite-lived intangibles assets, Cost | 74,801 | 76,701 |
Customer relationships | ||
Other Intangible Assets [Line Items] | ||
Definite-lived intangibles assets, Cost | 174,150 | 173,363 |
Definite-lived intangible assets, Accumulated Amortization | 69,258 | 57,125 |
Non-compete agreements | ||
Other Intangible Assets [Line Items] | ||
Definite-lived intangibles assets, Cost | 8,656 | 8,669 |
Definite-lived intangible assets, Accumulated Amortization | 8,509 | 8,137 |
Technology / know-how | ||
Other Intangible Assets [Line Items] | ||
Definite-lived intangibles assets, Cost | 22,495 | 26,411 |
Definite-lived intangible assets, Accumulated Amortization | 6,276 | 5,856 |
Other | ||
Other Intangible Assets [Line Items] | ||
Definite-lived intangibles assets, Cost | 3,716 | 3,804 |
Definite-lived intangible assets, Accumulated Amortization | $ 3,716 | $ 3,804 |
Goodwill and Other Long-Lived_7
Goodwill and Other Long-Lived Assets - Estimated Amortization Expense (Detail) $ in Thousands | May 31, 2019USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2020 | $ 13,031 |
2021 | 12,271 |
2022 | 10,641 |
2023 | 10,039 |
2024 | $ 10,039 |
Restructuring and Other Expen_3
Restructuring and Other Expense (Income), Net - Schedule of Progression of Liabilities Associated with Restructuring Activities, Combined with Reconciliation to Restructuring and Other Income, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | $ 1,116 | ||
Expense (income) | 2,402 | ||
Payments | (2,440) | ||
Adjustments | (302) | ||
Ending Balance | 776 | $ 1,116 | |
Net gain on sale of assets | (13,420) | ||
Restructuring and other expense (income), net | (11,018) | (7,421) | $ 6,411 |
Early Retirement And Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 1,116 | ||
Expense (income) | 1,899 | ||
Payments | (2,127) | ||
Adjustments | (114) | ||
Ending Balance | 774 | 1,116 | |
Facility Exit And Other Costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Beginning Balance | 0 | ||
Expense (income) | 503 | ||
Payments | (313) | ||
Adjustments | (188) | ||
Ending Balance | $ 2 | $ 0 |
Restructuring and Other Expen_4
Restructuring and Other Expense (Income), Net - Additional Information (Detail) $ in Thousands | 12 Months Ended |
May 31, 2019USD ($)Facility | |
Restructuring Cost and Reserve [Line Items] | |
Net gain on disposal of assets | $ 13,420 |
Other Non-significant Restructuring Activities | |
Restructuring Cost and Reserve [Line Items] | |
Severance expense | 205 |
Facility exit costs reduction | 10 |
Pressure Cylinders | |
Restructuring Cost and Reserve [Line Items] | |
Severance expense | 89 |
Net gain on disposal of assets | 11,458 |
Net proceeds from sale of business | 27,577 |
Pressure Cylinders | Oil & gas equipment | |
Restructuring Cost and Reserve [Line Items] | |
Net gain on disposal of assets | $ 1,962 |
Number of facilities sold | Facility | 2 |
Net proceeds from sale of business | $ 20,256 |
Pressure Cylinders | AMTROL | |
Restructuring Cost and Reserve [Line Items] | |
Severance expense | 1,086 |
Facility exit costs | 513 |
CNG Fuel Systems | North America | |
Restructuring Cost and Reserve [Line Items] | |
Severance expense | $ 519 |
Contingent Liabilities and Co_3
Contingent Liabilities and Commitments - Additional Informattion (Detail) $ in Thousands | Feb. 28, 2019USD ($) |
Tank Replacement Costs | |
Loss Contingencies [Line Items] | |
Best estimated probable costs charge to costs of goods sold | $ 13,000 |
Contingent Liabilities and Co_4
Contingent Liabilities and Commitments - Summary of Progression of Liabilities (Detail) - Tank Replacement Costs $ in Thousands | 12 Months Ended |
May 31, 2019USD ($) | |
Loss Contingencies [Line Items] | |
Expense | $ 13,000 |
Payments | (4,500) |
Ending balance | $ 8,500 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) | 12 Months Ended |
May 31, 2019USD ($) | |
Stand-by Letters of Credit | |
Guarantor Obligations [Line Items] | |
Letter of credit amount outstanding | $ 15,833,000 |
Drawn amount of letter of credit outstanding | 0 |
Operating Lease of Aircraft | |
Guarantor Obligations [Line Items] | |
Maximum potential obligation | $ 7,401,000 |
Debt and Receivables Securiti_3
Debt and Receivables Securitization - Summary of Long-term Debt and Short-term Borrowings Outstanding (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Debt Instrument [Line Items] | ||
Debt | $ 753,100 | |
Total debt | 753,100 | $ 754,728 |
Unamortized discount and debt issuance costs | (3,801) | (4,360) |
Total debt, net | 749,299 | 750,368 |
Less: current maturities and short-term borrowings | 150,943 | 1,474 |
Total long-term debt | 598,356 | 748,894 |
4.30% Senior Notes due August 1, 2032 | ||
Debt Instrument [Line Items] | ||
Senior notes | 200,000 | 200,000 |
4.55% Senior Notes due April 15, 2026 | ||
Debt Instrument [Line Items] | ||
Senior notes | 250,000 | 250,000 |
4.60% Senior Notes due August 10, 2024 | ||
Debt Instrument [Line Items] | ||
Senior notes | 150,000 | 150,000 |
6.50% Senior Notes due April 15, 2020 | ||
Debt Instrument [Line Items] | ||
Senior notes | 150,000 | 150,000 |
Term Loans | ||
Debt Instrument [Line Items] | ||
Debt | 829 | |
Other Debt | ||
Debt Instrument [Line Items] | ||
Debt | $ 3,100 | $ 3,899 |
Debt and Receivables Securiti_4
Debt and Receivables Securitization - Summary of Long-term Debt and Short-term Borrowings Outstanding (Parenthetical) (Detail) | Aug. 10, 2012 | May 31, 2019 | May 31, 2018 | Jul. 28, 2017 | Apr. 15, 2014 |
4.30% Senior Notes due August 1, 2032 | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 4.30% | 4.30% | 4.30% | ||
Debt, maturity date | Aug. 1, 2032 | Aug. 1, 2032 | |||
4.55% Senior Notes due April 15, 2026 | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 4.55% | 4.55% | 4.55% | ||
Debt, maturity date | Apr. 15, 2026 | Apr. 15, 2026 | |||
4.60% Senior Notes due August 10, 2024 | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 4.60% | 4.60% | 4.60% | ||
Debt, maturity date | Aug. 10, 2024 | Aug. 10, 2024 | Aug. 10, 2024 | ||
6.50% Senior Notes due April 15, 2020 | |||||
Debt Instrument [Line Items] | |||||
Debt, interest rate | 6.50% | 6.50% | |||
Debt, maturity date | Apr. 15, 2020 | Apr. 15, 2020 |
Debt and Receivables Securiti_5
Debt and Receivables Securitization - Maturities on Long-term Debt (Detail) $ in Thousands | May 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 150,942 |
2021 | 631 |
2022 | 648 |
2023 | 533 |
2024 | 300 |
Thereafter | 600,046 |
Total | $ 753,100 |
Debt and Receivables Securiti_6
Debt and Receivables Securitization - Additional Information (Detail) - USD ($) | Jan. 15, 2019 | Feb. 16, 2018 | Sep. 26, 2014 | Apr. 15, 2014 | Aug. 10, 2012 | Apr. 27, 2012 | Apr. 13, 2010 | Jun. 30, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | Jul. 28, 2017 | Oct. 15, 2014 |
Debt And Receivables Securitization [Line Items] | |||||||||||||
Remaining borrowing capacity | $ 498,050,000 | ||||||||||||
Interest Rate Swap | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Interest rate swap, interest rate | 2.015% | ||||||||||||
Interest rate swap, start date | Dec. 26, 2014 | ||||||||||||
Line of Credit Facility, Outstanding Borrowing Percentage | 60.00% | ||||||||||||
4.55% Senior Notes due April 15, 2026 | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Principal amount | $ 250,000,000 | ||||||||||||
Debt, maturity date | Apr. 15, 2026 | Apr. 15, 2026 | |||||||||||
Debt, interest rate | 4.55% | 4.55% | 4.55% | ||||||||||
Price of debt instrument sold to the public as a percentage of principal amount | 99.789% | ||||||||||||
Yield to maturity | 4.573% | ||||||||||||
Unamortized debt discount | $ 528,000 | $ 300,000 | $ 344,000 | ||||||||||
Debt issuance cost | 2,279,000 | ||||||||||||
Unamortized portion of debt issuance costs | $ 1,297,000 | $ 1,488,000 | |||||||||||
Settlement of hedge interest | $ (3,081,000) | ||||||||||||
4.30% Senior Notes due August 1, 2032 | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Principal amount | $ 200,000,000 | ||||||||||||
Debt, maturity date | Aug. 1, 2032 | Aug. 1, 2032 | |||||||||||
Debt, interest rate | 4.30% | 4.30% | 4.30% | ||||||||||
Price of debt instrument sold to the public as a percentage of principal amount | 99.901% | ||||||||||||
Yield to maturity | 4.309% | ||||||||||||
Unamortized debt discount | $ 174,000 | $ 187,000 | $ 198,000 | ||||||||||
Debt issuance cost | $ 2,116,000 | ||||||||||||
Unamortized portion of debt issuance costs | $ 1,857,000 | $ 1,998,000 | |||||||||||
4.30% Senior Notes due August 1, 2032 | Interest Rate Swap | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Notional Amount | $ 150,000,000 | ||||||||||||
Gain (Loss) Reclassified from Accumulated OCI (Effective Portion) | $ 3,098,000 | ||||||||||||
4.60% Senior Notes due August 10, 2024 | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Principal amount | $ 150,000,000 | ||||||||||||
Debt, maturity date | Aug. 10, 2024 | Aug. 10, 2024 | Aug. 10, 2024 | ||||||||||
Debt, interest rate | 4.60% | 4.60% | 4.60% | ||||||||||
Debt issuance cost | $ 80,000 | ||||||||||||
Unamortized portion of debt issuance costs | $ 35,000 | $ 41,000 | |||||||||||
Term Loan maturing May 1, 2019 | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Borrowings outstanding | 829,000 | ||||||||||||
Term loan credit facility, term | 7 years | ||||||||||||
Debt, maturity date | May 1, 2019 | ||||||||||||
Debt, interest rate | 2.49% | ||||||||||||
Maximum borrowing capacity | $ 5,880,000 | ||||||||||||
Debt instrument required monthly payments | $ 76,350 | ||||||||||||
6.50% Unsecured Senior Notes due April 15, 2020 | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Principal amount | $ 150,000,000 | ||||||||||||
Debt, maturity date | Apr. 15, 2020 | ||||||||||||
Debt, interest rate | 6.50% | ||||||||||||
Price of debt instrument sold to the public as a percentage of principal amount | 99.89% | ||||||||||||
Yield to maturity | 6.515% | ||||||||||||
Unamortized debt discount | $ 165,000 | $ 14,000 | 30,000 | ||||||||||
Debt issuance cost | 1,486,000 | ||||||||||||
Unamortized portion of debt issuance costs | 124,000 | 272,000 | |||||||||||
Settlement of hedge interest | $ (1,358,000) | ||||||||||||
Securities Sold under Agreements to Repurchase | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Borrowings outstanding | 0 | ||||||||||||
Maximum borrowing capacity | $ 50,000,000 | ||||||||||||
Debt maturity period | 1 year | ||||||||||||
Maturity date | 2020-01 | ||||||||||||
Number of days past due trade accounts receivables are ineligible for securitization | 90 days | ||||||||||||
Facility fee | $ 202,000 | $ 383,000 | $ 354,000 | ||||||||||
Worthington Aritas | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Term loan credit facility, term | 5 years | ||||||||||||
Unsecured Revolving Credit Facility | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Borrowings outstanding | 0 | ||||||||||||
Maximum borrowing capacity | $ 500,000,000 | ||||||||||||
Debt maturity period | 3 years | ||||||||||||
Maturity date | 2023-02 | ||||||||||||
Debt issuance costs | $ 805,000 | ||||||||||||
Unsecured Revolving Credit Facility | Maximum | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Debt maturity period | 1 year | ||||||||||||
Stand-by Letters of Credit | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Letter of credit amount outstanding | $ 15,833,000 | ||||||||||||
Drawn amount of letter of credit outstanding | 0 | ||||||||||||
Letter of Credit | |||||||||||||
Debt And Receivables Securitization [Line Items] | |||||||||||||
Letter of credit amount outstanding | $ 1,950,000 |
Comprehensive Income (Loss) - S
Comprehensive Income (Loss) - Summary of Tax Effects on Each Component of Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Components Of Other Comprehensive Income Loss [Abstract] | |||
Foreign currency translation, before tax | $ (14,772) | $ 12,744 | $ 1,342 |
Foreign currency translation, net of tax tax | (14,772) | 12,744 | 1,342 |
Pension liability adjustment, before tax | (2,203) | 1,875 | 3,400 |
Pension liability adjustment, tax | 418 | (309) | (1,158) |
Pension liability adjustment, net of tax | (1,785) | 1,566 | 2,242 |
Cash flow hedges, before tax | (16,227) | 1,351 | (4,522) |
Cash flow hedges, tax | 3,780 | (392) | 1,700 |
Cash flow hedges, net of tax | (12,447) | 959 | (2,822) |
Other comprehensive income (loss), before tax | (33,202) | 15,970 | 220 |
Other comprehensive income (loss), tax | 4,198 | (701) | 542 |
Other comprehensive income (loss) | $ (29,004) | $ 15,269 | $ 762 |
Comprehensive Income (Loss) - C
Comprehensive Income (Loss) - Components of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
May 31, 2018 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | $ 1,036,375 | $ 1,073,929 | $ 919,846 | ||
Other comprehensive income before reclassifications | (30,693) | 28,753 | |||
Reclassification adjustments to income | [1] | (2,389) | (13,156) | ||
Reclassification of stranded tax effects | $ 1,701 | (1,701) | |||
Income tax effect | 4,198 | (701) | 542 | ||
Balance | 1,036,375 | 948,394 | 1,036,375 | 1,073,929 | |
Foreign Currency Translation | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (4,987) | (17,358) | |||
Other comprehensive income before reclassifications | (14,652) | 12,371 | |||
Balance | (4,987) | (19,639) | (4,987) | (17,358) | |
Pension Liability Adjustment | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (16,071) | (14,819) | |||
Other comprehensive income before reclassifications | (3,404) | 1,402 | |||
Reclassification adjustments to income | [1] | 1,201 | 473 | ||
Reclassification of stranded tax effects | (2,818) | ||||
Income tax effect | 418 | (309) | |||
Balance | (16,071) | (17,856) | (16,071) | (14,819) | |
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | 6,478 | 4,402 | |||
Other comprehensive income before reclassifications | (12,637) | 14,980 | |||
Reclassification adjustments to income | [1] | (3,590) | (13,629) | ||
Reclassification of stranded tax effects | 1,117 | ||||
Income tax effect | 3,780 | (392) | |||
Balance | 6,478 | (5,969) | 6,478 | 4,402 | |
Accumulated Other Comprehensive Loss, Net of Tax | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (14,580) | (27,775) | (28,565) | ||
Reclassification of stranded tax effects | (1,701) | ||||
Balance | $ (14,580) | $ (43,464) | $ (14,580) | $ (27,775) | |
[1] | The statement of earnings classification of amounts reclassified to income for cash flow hedges is disclosed in “Note Q – Derivative Instruments and Hedging Activities.” |
Comprehensive Income (Loss) - A
Comprehensive Income (Loss) - Additional Information (Detail) $ in Thousands | 12 Months Ended |
May 31, 2019USD ($) | |
Other Comprehensive Income Loss Net Of Tax Period Increase Decrease [Abstract] | |
Gains in accumulated other comprehensive income, estimate of time of transfer | 12 months |
Loss in accumulated other comprehensive income expected to be reclassified into net earnings | $ 6,590 |
Loss in accumulated other comprehensive income expected to be reclassified into net earnings, tax | $ 2,004 |
Equity - Additional Information
Equity - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | Mar. 20, 2019 | Sep. 27, 2017 | |
Class of Stock [Line Items] | ||||
Stock repurchase program additional number of shares authorized to be repurchased | 6,600,000 | |||
Common Stock remaining shares authorized for repurchase | 9,000,000 | |||
Repurchase of common shares | $ 168,113 | $ 204,267 | ||
Purchases and retirement of common shares (in shares) | 4,100,000 | 4,375,000 | ||
Deferred compensation obligation credited to common share option | $ 680 | $ 1,218 | ||
Maximum | Stock repurchase on September 27, 2017 | ||||
Class of Stock [Line Items] | ||||
Common Stock shares authorized for repurchase | 6,828,855 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Sep. 28, 2018 | Jun. 24, 2014 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 31, 2016 | Sep. 26, 2018 | May 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock authorized for issuance | 2,655,478 | |||||||
Pre-tax stock-based compensation expense | $ 11,733 | $ 13,758 | $ 14,349 | |||||
Stock based compensation expense, after tax | 9,034 | 9,482 | 9,112 | |||||
Unrecognized compensation cost | $ 19,403 | |||||||
Unrecognized compensation cost related to non-vested awards, expense period | 3 years | |||||||
Unrecognized compensation cost | $ 261 | |||||||
Non-Qualified Stock Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Purchase price percentage of fair market value on the date of grant for stock options | 100.00% | |||||||
Stock options expiration period | 10 years | |||||||
Pre-tax stock-based compensation expense | $ 1,199 | 1,203 | 1,146 | |||||
Total intrinsic value of stock options exercised | 6,314 | |||||||
Cash received from the exercise of stock options | 5,085 | |||||||
Tax benefit realized from share-based payment awards | $ 2,792 | |||||||
Non-Qualified Stock Options | First Anniversary | Issued Before June 30, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vesting percentage | 20.00% | |||||||
Non-Qualified Stock Options | First Anniversary | Issued On or After June 30, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vesting percentage | 33.00% | |||||||
Non-Qualified Stock Options | Second Anniversary | Issued Before June 30, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vesting percentage | 20.00% | |||||||
Non-Qualified Stock Options | Second Anniversary | Issued On or After June 30, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vesting percentage | 33.00% | |||||||
Non-Qualified Stock Options | Third Anniversary | Issued Before June 30, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vesting percentage | 20.00% | |||||||
Non-Qualified Stock Options | Third Anniversary | Issued On or After June 30, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vesting percentage | 33.00% | |||||||
Non-Qualified Stock Options | Fourth Anniversary | Issued Before June 30, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vesting percentage | 20.00% | |||||||
Non-Qualified Stock Options | Fifth Anniversary | Issued Before June 30, 2011 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options vesting percentage | 20.00% | |||||||
Non-Qualified Stock Options | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Purchase price percentage of fair market value on the date of grant for stock options | 100.00% | |||||||
Service-Based Restricted Common Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-tax stock-based compensation expense | $ 14,692 | $ 7,605 | $ 19,841 | |||||
Pre-tax stock-based compensation, period of recognition | 3 years | |||||||
Restricted common shares, granted | 339,000 | 176,000 | 525,000 | |||||
Restricted common shares, fair value per share | $ 43.35 | $ 47.88 | $ 42.28 | |||||
Restricted common shares, outstanding | 811,000 | 796,000 | 865,000 | 698,000 | ||||
Market-Based Restricted Common Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Pre-tax stock-based compensation, period of recognition | 5 years | |||||||
Restricted common shares, granted | 225,000 | 50,000 | ||||||
Common share awards vesting, minimum price per share | $ 65 | $ 60 | ||||||
Common share awards vesting, minimum consecutive days at stated price | 90 days | 30 days | ||||||
Restricted common shares, fair value per share | $ 23.38 | $ 32.06 | ||||||
Unrecognized compensation cost | $ 5,261 | $ 1,603 | ||||||
Restricted common shares, outstanding | 25,000 | |||||||
Restricted common shares, cancelled | 25,000 |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Non-qualified Stock Options Granted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 96 | 90 | 111 |
Weighted average exercise price, per share | $ 42.86 | $ 47.76 | $ 42.30 |
Weighted average grant date fair value, per share | $ 12.54 | $ 14.99 | $ 11.60 |
Stock-based compensation | $ 11,733 | $ 13,758 | $ 14,349 |
Non-Qualified Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 1,199 | $ 1,203 | $ 1,146 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions To Value Stock Options (Detail) - Non-Qualified Stock Options | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 2.02% | 1.81% | 2.59% |
Expected volatility | 33.09% | 36.65% | 36.86% |
Risk-free interest rate | 2.79% | 1.98% | 1.15% |
Expected life (years) | 6 years | 6 years | 6 years |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Stock Options | |||
Outstanding, beginning of year | 2,019 | 2,307 | 3,306 |
Granted | 96 | 90 | 111 |
Exercised | (506) | (371) | (1,076) |
Forfeited | (54) | (7) | (34) |
Outstanding, end of year | 1,555 | 2,019 | 2,307 |
Exercisable at end of year | 1,397 | 1,800 | 2,067 |
Weighted Average Exercise Price | |||
Outstanding, beginning of year | $ 22.26 | $ 20.99 | $ 19.01 |
Granted | 42.86 | 47.76 | 42.30 |
Exercised | 18.45 | 20.37 | 16.90 |
Forfeited | 44.31 | 33.02 | 29.95 |
Outstanding, end of year | 24.01 | 22.26 | 20.99 |
Exercisable at end of year | $ 21.96 | $ 20.03 | $ 19.17 |
Weighted Average Remaining Contractual Life (in years) | |||
Outstanding | 3 years 1 month 24 days | 3 years 7 months 2 days | 3 years 11 months 12 days |
Exercisable | 2 years 7 months 13 days | 3 years 21 days | 3 years 5 months 19 days |
Aggregate intrinsic value | |||
Outstanding | $ 18,728 | $ 51,858 | $ 48,509 |
Exercisable | $ 18,728 | $ 50,673 | $ 47,488 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Non-Vested Stock Option Awards (Detail) - $ / shares shares in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Number of Stock Options | |||
Non-vested, beginning of year | 219 | ||
Granted | 96 | 90 | 111 |
Vested | (103) | ||
Forfeited | (54) | ||
Non-vested, end of year | 158 | 219 | |
Weighted Average Grant Date Fair Value Per Share | |||
Non-vested, beginning of year | $ 11.55 | ||
Granted | 12.55 | ||
Vested | 10.75 | ||
Forfeited | 12.70 | ||
Non-vested, end of year | $ 12.26 | $ 11.55 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Service-Based Restricted Common Shares Granted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 11,733 | $ 13,758 | $ 14,349 |
Service-Based Restricted Common Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 339 | 176 | 525 |
Weighted average grant date fair value, per share | $ 43.35 | $ 47.88 | $ 42.28 |
Stock-based compensation | $ 14,692 | $ 7,605 | $ 19,841 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Activity for Service-Based Restricted Common Shares (Detail) - Service-Based Restricted Common Shares - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Restricted Common Shares | |||
Outstanding, beginning of year | 796 | 865 | 698 |
Granted | 339 | 176 | 525 |
Vested | (229) | (205) | (310) |
Forfeited | (95) | (40) | (48) |
Outstanding, end of year | 811 | 796 | 865 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning of year | $ 40.80 | $ 39.49 | $ 33.69 |
Granted | 43.35 | 47.88 | 42.28 |
Vested | 34.63 | 40.96 | 31.81 |
Forfeited | 43.83 | 41.58 | 38.82 |
Outstanding, end of year | $ 43.25 | $ 40.80 | $ 39.49 |
Weighted Average Remaining Contractual Life (in years) | |||
Weighted average remaining contractual life of outstanding restricted common shares (in years) | 1 year 10 months 13 days | 1 year 2 months 15 days | 1 year 6 months 25 days |
Aggregate intrinsic value | |||
Aggregate intrinsic value of outstanding restricted common shares | $ 27,681 | $ 38,160 | $ 36,298 |
Aggregate intrinsic value of restricted common shares vested during the year | $ 10,388 | $ 10,330 | $ 12,840 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Assumptions Used to Determine Grant Date Fair Value of Market Based Restricted Common Shares (Detail) - Market-Based Restricted Common Shares | Sep. 28, 2018 | May 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 2.16% | 1.60% |
Expected volatility | 33.60% | 44.00% |
Risk-free interest rate | 2.96% | 1.70% |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares Granted (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | Sep. 26, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax stock-based compensation | $ 261 | |||
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 43 | 54 | 67 | |
Weighted average grant date fair value, per share | $ 42.91 | $ 50.61 | $ 44.91 | |
Pre-tax stock-based compensation | $ 1,854 | $ 2,748 | $ 2,995 |
Employee Pension Plans - Additi
Employee Pension Plans - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
May 31, 2019USD ($)DefinedBenefitPlan | May 31, 2018USD ($) | May 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated net loss | $ 553 | ||
Description of investment policy and strategy for the defined benefit plan | The investment policy and strategy for the defined benefit plan is: (i) long-term in nature with liquidity requirements that are anticipated to be minimal due to the projected normal retirement date of the average employee and the current average age of participants; (ii) to earn nominal returns, net of investment fees, equal to or in excess of the defined benefit plan’s liability growth rate; and (iii) to include a diversified asset allocation of domestic and international equities and fixed income investments. | ||
Employer contribution to defined benifit plan in fiscal 2020 | $ 142 | ||
Number of planned contributions in fiscal 2020 | DefinedBenefitPlan | 11 | ||
Expected employer contribution to defined benefit plan during fiscal 2020 | $ 1,558 | ||
Net periodic pension costs | $ 53 | $ 141 | $ 328 |
Discount rate | 4.02% | 3.94% | 3.75% |
Austrian Pressure Cylinders | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accrued liability of unfunded plans included in other liabilities | $ 7,009 | $ 6,561 | |
Net periodic pension costs | $ 925 | $ 601 | $ 554 |
Assumed salary rate increase | 2.75% | 2.75% | 2.75% |
Discount rate | 1.40% | 1.80% | 1.60% |
Employee Pension Plans - Compon
Employee Pension Plans - Components of Net Periodic Pension Cost for the Defined Benefit Plan and Defined Contribution Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Compensation And Retirement Disclosure [Abstract] | |||
Interest cost | $ 1,503 | $ 1,522 | $ 1,527 |
Return on plan assets | (532) | (1,361) | (2,224) |
Net amortization and deferral | (918) | (20) | 1,025 |
Net periodic pension cost on defined benefit plan | 53 | 141 | 328 |
Settlement cost | 760 | ||
Defined contribution plans | 16,308 | 14,972 | 14,542 |
Total retirement plan cost | $ 17,121 | $ 15,113 | $ 14,870 |
Employee Pension Plans - Actuar
Employee Pension Plans - Actuarial Assumptions Used for Defined Benefit Plan (Detail) | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
To determine benefit obligation: | |||
Discount rate | 3.57% | 4.02% | 3.94% |
To determine net periodic pension cost: | |||
Discount rate | 4.02% | 3.94% | 3.75% |
Expected long-term rate of return | 7.00% | 7.00% | 7.00% |
Employee Pension Plans - Reconc
Employee Pension Plans - Reconciliation of Changes in Projected Benefit Obligation and Fair Value of Plan Assets and Funded Status of Gerstenslager Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Change in benefit obligation | |||
Benefit obligation, beginning of year | $ 38,010 | $ 39,174 | |
Interest cost | 1,503 | 1,522 | $ 1,527 |
Actuarial (gain) loss | 1,868 | (1,516) | |
Benefits paid | (1,201) | (1,170) | |
Settlements | (1,661) | ||
Benefits obligation, end of year | 38,519 | 38,010 | 39,174 |
Change in plan assets | |||
Fair value, beginning of year | 27,212 | 27,022 | |
Return on plan assets | 532 | 1,361 | 2,224 |
Company contributions | 1,376 | ||
Benefits paid | (1,201) | (1,171) | |
Settlements | (1,661) | ||
Fair value, end of year | 26,258 | 27,212 | $ 27,022 |
Funded status | (12,261) | (10,798) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Net loss | 18,370 | 16,343 | |
Other Liabilities | |||
Amounts recognized in the consolidated balance sheets consist of: | |||
Amounts recognized in the consolidated balance sheets | (12,261) | (10,798) | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Total | (12,261) | (10,798) | |
Accumulated Other Comprehensive Loss | |||
Amounts recognized in the consolidated balance sheets consist of: | |||
Amounts recognized in the consolidated balance sheets | 18,370 | 16,343 | |
Amounts recognized in accumulated other comprehensive loss consist of: | |||
Total | $ 18,370 | $ 16,343 |
Employee Pension Plans - Other
Employee Pension Plans - Other Changes in Plan Assets And Benefit Obligations Recognized in OCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Net gain (loss) | $ (3,227) | $ 1,023 |
Amortization of net loss | 441 | 473 |
Extraordinary charges | 759 | |
Total recognized in other comprehensive income (loss) | (2,027) | 1,496 |
Total recognized in net periodic benefit cost and other comprehensive income | $ 2,839 | $ 1,355 |
Employee Pension Plans - Summar
Employee Pension Plans - Summary of Defined Benefit Plan's Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 | May 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit plan assets fair value | $ 26,258 | $ 27,212 | $ 27,022 |
Quoted Prices In Active Markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit plan assets fair value | 26,258 | 27,212 | |
Money Market Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit plan assets fair value | 3,109 | 291 | |
Money Market Funds | Quoted Prices In Active Markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit plan assets fair value | 3,109 | 291 | |
Bond Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit plan assets fair value | 11,865 | 14,887 | |
Bond Funds | Quoted Prices In Active Markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit plan assets fair value | 11,865 | 14,887 | |
Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit plan assets fair value | 11,284 | 12,034 | |
Equity Funds | Quoted Prices In Active Markets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit plan assets fair value | $ 11,284 | $ 12,034 |
Employee Pension Plans - Plan A
Employee Pension Plans - Plan Assets for Defined Benefit Plan (Detail) | May 31, 2019 | May 31, 2018 |
Asset category | ||
Weighted-average asset allocation | 100.00% | 100.00% |
Equity Securities | ||
Asset category | ||
Weighted-average asset allocation | 43.00% | 44.00% |
Debt Securities | ||
Asset category | ||
Weighted-average asset allocation | 45.00% | 55.00% |
Other securities | ||
Asset category | ||
Weighted-average asset allocation | 12.00% | 1.00% |
Employee Pension Plans - Estima
Employee Pension Plans - Estimated Future Benefits Expected to be Paid (Detail) $ in Thousands | May 31, 2019USD ($) |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
2020 | $ 1,293 |
2021 | 1,322 |
2022 | 1,405 |
2023 | 1,486 |
2024 | 1,556 |
2025-2029 | $ 9,273 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
May 31, 2018 | Dec. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | May 23, 2018 | |
Income Taxes [Line Items] | ||||||
Federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 29.20% | 35.00% | |
Provisional income tax benefit related to re-measurement of deferred tax assets and liabilities | $ 38,200 | |||||
Provisional income tax expense related to repatriation tax | 6,900 | |||||
Tax amount related to purchase of noncontrolling interest and its carrying value | $ 539 | |||||
Tax benefits (expense) related to defined benefit pension liability credited to other comprehensive income | $ 418 | (309) | (1,158) | |||
Tax benefits (expenses) related to cash flow hedges credited to (deducted from) other comprehensive income | $ 3,780 | $ (392) | $ 1,700 | |||
Effective tax rates upon inclusion of net earnings attributable to noncontrolling interests | 20.90% | 3.90% | 26.70% | |||
Minimum likelihood of tax benefits being recognized upon ultimate settlement | 50.00% | |||||
Total unrecognized tax benefits | $ 2,638 | $ 1,621 | $ 2,638 | $ 2,975 | ||
Unrecognized tax benefits if recognized would affect tax rate attributable to controlling interest | 1,257 | |||||
Interest and penalties related to unrecognized tax benefits | 271 | 287 | 271 | $ 307 | ||
Valuation allowance for deferred tax assets | $ 14,006 | 14,619 | $ 14,006 | |||
Settlement with Taxing Authority | ||||||
Income Taxes [Line Items] | ||||||
Liability for unrecognized tax benefit expected to be settled in the next 12 months | 1,000 | |||||
State and Local Jurisdiction | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carry forwards | 10,745 | |||||
Valuation allowance for deferred tax assets | $ 9,341 | |||||
State and Local Jurisdiction | Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, expiration date | May 31, 2021 | |||||
State and Local Jurisdiction | Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, expiration date | May 31, 2039 | |||||
Non - United States | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carry forwards | $ 5,688 | |||||
Valuation allowance for deferred tax assets | $ 5,278 | |||||
Non - United States | Earliest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, expiration date | May 31, 2020 | |||||
Non - United States | Latest Tax Year | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards, expiration date | May 31, 2025 | |||||
Worthington Aritas | ||||||
Income Taxes [Line Items] | ||||||
Ownership interest percentage | 25.00% |
Income Taxes - Earnings before
Income Taxes - Earnings before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||
United States based operations | $ 173,200 | $ 177,088 | $ 266,222 | |
Non – United States based operations | 33,256 | 31,982 | 30,905 | |
Earnings before income taxes | 206,456 | 209,070 | 297,127 | |
Net earnings attributable to noncontrolling interests | [1] | 9,818 | 6,056 | 13,422 |
Earnings before income taxes attributable to controlling interest | $ 196,638 | $ 203,014 | $ 283,705 | |
[1] | Net earnings attributable to noncontrolling interests are not taxable to Worthington. |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Current | |||
Federal | $ 15,454 | $ 33,261 | $ 50,200 |
State and local | 2,309 | 3,292 | 2,954 |
Foreign | 7,985 | 9,904 | 7,593 |
Current Income Tax Expense (Benefit), Total | 25,748 | 46,457 | 60,747 |
Deferred | |||
Federal | 18,195 | (34,442) | 18,177 |
State and local | 1,621 | 388 | 476 |
Foreign | (2,381) | (4,183) | (210) |
Provision for (benefit from) deferred income taxes | 17,435 | (38,237) | 18,443 |
Income tax expense | $ 43,183 | $ 8,220 | $ 79,190 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Federal Statutory Corporate Income Tax Rate to Total Tax Provision (Detail) | 5 Months Ended | 7 Months Ended | 12 Months Ended | |||
May 31, 2018 | Dec. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Income Tax Disclosure [Abstract] | ||||||
Federal statutory income tax rate | 21.00% | 35.00% | 21.00% | 29.20% | 35.00% | |
State and local income taxes, net of federal tax benefit | 2.10% | 2.30% | 1.50% | |||
Non-U.S. income taxes at other than federal statutory rate | 0.20% | (1.40%) | (1.40%) | |||
Qualified production activities deduction | (2.30%) | (1.90%) | ||||
Impact of tax reform | [1] | (15.40%) | ||||
Worthington Aritas write down | (4.80%) | |||||
Excess benefit related to share-based payment awards | (1.40%) | (2.00%) | (5.70%) | |||
AMTROL acquisition | (1.90%) | |||||
Other | 0.10% | 0.30% | 0.40% | |||
Effective tax rate attributable to controlling interest | 22.00% | 4.00% | 27.90% | |||
[1] | Amount reflects the impact of the re-measurement of the Company’s deferred tax balances at the lower federal statutory corporate income tax rate, net of the mandatory deemed repatriation tax on unremitted foreign earnings. |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Detail) $ in Thousands | 12 Months Ended |
May 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Beginning Balance | $ 2,638 |
Decreases - tax positions taken in prior years | (96) |
Increases - tax positions taken in prior years | 41 |
Increases - current tax positions | 43 |
Settlements | (831) |
Lapse of statutes of limitations | (174) |
Ending Balance | $ 1,621 |
Income Taxes - Summary of Tax Y
Income Taxes - Summary of Tax Years Open to Examination by Major Tax Jurisdiction (Detail) | 12 Months Ended |
May 31, 2019 | |
State and Local Jurisdiction | |
Income Tax Examination [Line Items] | |
Open tax years | 2014 |
U.S. | United States | |
Income Tax Examination [Line Items] | |
Open tax years | 2015 |
Federal Ministry of Finance, Austria | Non - United States | |
Income Tax Examination [Line Items] | |
Open tax years | 2016 |
Canada Revenue Agency | Non - United States | |
Income Tax Examination [Line Items] | |
Open tax years | 2015 |
Mexican Tax Authority | Non - United States | |
Income Tax Examination [Line Items] | |
Open tax years | 2014 |
Portugal | Non - United States | |
Income Tax Examination [Line Items] | |
Open tax years | 2015 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Deferred tax assets | ||
Accounts receivable | $ 1,516 | $ 1,455 |
Inventories | 5,649 | 5,004 |
Accrued expenses | 21,195 | 23,219 |
Net operating loss carry forwards | 16,433 | 14,201 |
Stock-based compensation | 10,989 | 10,588 |
Derivative contracts | 2,054 | |
Other | 316 | 1,313 |
Total deferred tax assets | 58,152 | 55,780 |
Valuation allowance for deferred tax assets | (14,619) | (14,006) |
Net deferred tax assets | 43,533 | 41,774 |
Deferred tax liabilities | ||
Property, plant and equipment | (91,732) | (74,512) |
Investment in affiliated companies, principally due to undistributed earnings | (23,035) | (22,918) |
Derivative contracts | (2,653) | |
Other | (2,868) | (1,879) |
Total deferred tax liability | (117,635) | (101,962) |
Net deferred tax liability | $ (74,102) | $ (60,188) |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Numerator (basic & diluted): | |||||||||||
Net earnings attributable to controlling interest - income available to common shareholders | $ 37,738 | $ 26,773 | $ 34,002 | $ 54,942 | $ 30,769 | $ 79,087 | $ 39,403 | $ 45,534 | $ 153,455 | $ 194,794 | $ 204,515 |
Denominator: | |||||||||||
Denominator for basic earnings per share attributable to controlling interest-weighted average common shares | 57,196 | 60,923 | 62,443 | ||||||||
Effect of dilutive securities | 1,627 | 2,119 | 2,431 | ||||||||
Denominator for diluted earnings per share attributable to controlling interest-adjusted weighted average common shares | 58,823 | 63,042 | 64,874 | ||||||||
Basic earnings per share attributable to controlling interest | $ 0.68 | $ 0.47 | $ 0.59 | $ 0.94 | $ 0.52 | $ 1.31 | $ 0.64 | $ 0.73 | $ 2.68 | $ 3.20 | $ 3.28 |
Diluted earnings per share attributable to controlling interest | $ 0.66 | $ 0.46 | $ 0.57 | $ 0.91 | $ 0.50 | $ 1.27 | $ 0.62 | $ 0.70 | $ 2.61 | $ 3.09 | $ 3.15 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Earnings Per Share [Abstract] | |||
Shares excluded from computation of diluted earnings per share | 313,144 | 188,504 | 100,048 |
Segment Data - Additional Infor
Segment Data - Additional Information (Detail) | Mar. 31, 2018 | May 31, 2019JointVentureSegment | May 31, 2018 | May 31, 2017 |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 3 | |||
Number of joint ventures | 9 | |||
Joint Venture Transactions | ||||
Segment Reporting Information [Line Items] | ||||
Number of joint ventures | 3 | |||
Sales Revenue, Net | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 38.00% | 37.00% | 43.00% | |
Pressure Cylinders | Sales Revenue, Net | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 32.00% | 34.00% | 28.00% | |
Steel Processing | Sales Revenue, Net | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 65.00% | 63.00% | 69.00% | |
AMTROL | Sales Revenue, Net | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 7.00% | 7.00% | ||
Engineered Cabs Operating Segment | Sales Revenue, Net | Product Concentration Risk | ||||
Segment Reporting Information [Line Items] | ||||
Concentration risk percentage | 3.00% | 3.00% | 3.00% | |
Other | ||||
Segment Reporting Information [Line Items] | ||||
Sale of stock, percentage of ownership before transaction | 75.00% | |||
Sale of stock, percentage of ownership after transaction | 65.00% | |||
Worthington Steel | Steel Processing | ||||
Segment Reporting Information [Line Items] | ||||
Number of joint ventures | 3 |
Segment Data - Financial Inform
Segment Data - Financial Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | $ 938,842 | $ 874,381 | $ 958,226 | $ 988,107 | $ 1,020,460 | $ 841,657 | $ 871,266 | $ 848,237 | $ 3,759,556 | $ 3,581,620 | $ 3,014,108 | ||||
Operating income (loss) | 144,764 | 141,610 | 213,121 | ||||||||||||
Depreciation and amortization | 95,602 | 103,359 | 86,793 | ||||||||||||
Impairment of goodwill and long-lived assets | 5,436 | [1] | $ 2,381 | [1] | 52,919 | [1] | $ 8,289 | [1] | 7,817 | 61,208 | |||||
Restructuring and other expense (income), net | (11,018) | (7,421) | 6,411 | ||||||||||||
Total assets | 2,510,796 | 2,621,787 | 2,510,796 | 2,621,787 | 2,325,344 | ||||||||||
Total capital expenditures | 84,499 | 76,088 | 68,386 | ||||||||||||
Steel Processing | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 2,435,818 | 2,252,771 | 2,074,869 | ||||||||||||
Operating income (loss) | 89,761 | 152,690 | 170,481 | ||||||||||||
Depreciation and amortization | 40,374 | 43,331 | 42,861 | ||||||||||||
Impairment of goodwill and long-lived assets | 3,269 | ||||||||||||||
Restructuring and other expense (income), net | (9) | (10,087) | 1,828 | ||||||||||||
Total assets | 924,966 | 999,238 | 924,966 | 999,238 | 882,863 | ||||||||||
Total capital expenditures | 39,114 | 31,966 | 40,775 | ||||||||||||
Pressure Cylinders | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 1,207,798 | 1,206,183 | 829,846 | ||||||||||||
Operating income (loss) | 69,872 | 23,396 | 54,098 | ||||||||||||
Depreciation and amortization | 42,403 | 46,691 | 31,052 | ||||||||||||
Impairment of goodwill and long-lived assets | 4,548 | 53,883 | |||||||||||||
Restructuring and other expense (income), net | (11,009) | 2,365 | 3,411 | ||||||||||||
Total assets | 1,123,115 | 1,147,268 | 1,123,115 | 1,147,268 | 766,611 | ||||||||||
Total capital expenditures | 37,558 | 32,697 | 24,798 | ||||||||||||
Engineered Cabs | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 115,902 | 116,631 | 101,388 | ||||||||||||
Operating income (loss) | (14,664) | (11,305) | (7,685) | ||||||||||||
Depreciation and amortization | 5,687 | 5,415 | 5,197 | ||||||||||||
Restructuring and other expense (income), net | (78) | 1,219 | |||||||||||||
Total assets | 66,226 | 66,456 | 66,226 | 66,456 | 62,141 | ||||||||||
Total capital expenditures | 1,131 | 2,067 | 755 | ||||||||||||
Other | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net sales | 38 | 6,035 | 8,005 | ||||||||||||
Operating income (loss) | (205) | (23,171) | (3,773) | ||||||||||||
Depreciation and amortization | 7,138 | 7,922 | 7,683 | ||||||||||||
Impairment of goodwill and long-lived assets | 7,325 | ||||||||||||||
Restructuring and other expense (income), net | 379 | (47) | |||||||||||||
Total assets | $ 396,489 | $ 408,825 | 396,489 | 408,825 | 613,729 | ||||||||||
Total capital expenditures | $ 6,696 | $ 9,358 | $ 2,058 | ||||||||||||
[1] | For additional information regarding the Company’s impairment activity, refer to “Note D – Goodwill and Other Long-Lived Assets.” |
Segment Data - Net Sales by Geo
Segment Data - Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 938,842 | $ 874,381 | $ 958,226 | $ 988,107 | $ 1,020,460 | $ 841,657 | $ 871,266 | $ 848,237 | $ 3,759,556 | $ 3,581,620 | $ 3,014,108 |
North America | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 3,559,650 | 3,275,090 | 2,805,182 | ||||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 199,906 | $ 306,530 | $ 208,926 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net by Geographic Region (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 578,664 | $ 584,970 |
North America | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | 514,519 | 512,439 |
International | ||
Segment Reporting Information [Line Items] | ||
Property, plant and equipment, net | $ 64,145 | $ 72,531 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Thousands | May 01, 2019 | Jun. 02, 2017 | May 31, 2018 | May 31, 2019 | May 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 345,183 | $ 334,607 | $ 247,673 | ||
Magna Industries, Inc. | |||||
Business Acquisition [Line Items] | |||||
Total consideration for acquired entity | $ 13,500 | ||||
Business acquisition contingent consideration, estimated fair value | 2,000 | ||||
Acquisition related costs | 1,150 | ||||
Business combination , total intangible assets | 3,677 | ||||
Goodwill | $ 777 | ||||
AMTROL | |||||
Business Acquisition [Line Items] | |||||
Total consideration for acquired entity | $ 291,921 | ||||
Acquisition related costs | 3,568 | 1,568 | |||
Goodwill | $ 103,437 | ||||
Net sales | 265,198 | ||||
Operating income | $ 18,899 |
Acquisitions - Schedule of Acqu
Acquisitions - Schedule of Acquisition of Identifiable Intangible Assets (Detail) - AMTROL - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2018 | Jun. 02, 2017 | |
Business Acquisition [Line Items] | ||
Total acquired identifiable intangible assets | $ 166,000 | $ 166,000 |
Trade Names | ||
Business Acquisition [Line Items] | ||
Acquired indefinite lived intangible assets | 62,200 | |
Customer relationships | ||
Business Acquisition [Line Items] | ||
Acquired finite lived intangible assets | 90,800 | |
Technology | ||
Business Acquisition [Line Items] | ||
Acquired finite lived intangible assets | $ 13,000 | |
Minimum | Customer relationships | ||
Business Acquisition [Line Items] | ||
Useful Life (Years) | 14 years | |
Minimum | Technology | ||
Business Acquisition [Line Items] | ||
Useful Life (Years) | 15 years | |
Maximum | Customer relationships | ||
Business Acquisition [Line Items] | ||
Useful Life (Years) | 17 years | |
Maximum | Technology | ||
Business Acquisition [Line Items] | ||
Useful Life (Years) | 16 years |
Acquisitions - Schedule of Cons
Acquisitions - Schedule of Consideration Transferred and the Preliminary Fair Value Assigned to Assets Acquired And Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jun. 02, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 334,607 | $ 345,183 | $ 247,673 | |
AMTROL | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 6,893 | |||
Accounts receivable | 40,212 | |||
Inventories | 37,249 | |||
Prepaid expenses | 981 | |||
Other assets | 2,550 | |||
Intangible assets | 166,000 | $ 166,000 | ||
Property, plant and equipment | 52,870 | |||
Total assets | 306,755 | |||
Accounts payable | 25,945 | |||
Accrued liabilities | 21,016 | |||
Long-term debt including current maturities | 2,287 | |||
Other accrued items | 5,494 | |||
Deferred income taxes, net | 63,529 | |||
Net identifiable assets | 188,484 | |||
Goodwill | 103,437 | |||
Purchase price | 291,921 | |||
AMTROL | Preliminary Valuation | ||||
Business Acquisition [Line Items] | ||||
Cash | 6,893 | |||
Accounts receivable | 40,212 | |||
Inventories | 37,249 | |||
Prepaid expenses | 981 | |||
Other assets | 2,550 | |||
Intangible assets | 166,000 | |||
Property, plant and equipment | 52,870 | |||
Total assets | 306,755 | |||
Accounts payable | 25,945 | |||
Accrued liabilities | 21,016 | |||
Long-term debt including current maturities | 2,287 | |||
Other accrued items | 3,993 | |||
Deferred income taxes, net | 64,495 | |||
Net identifiable assets | 189,019 | |||
Goodwill | 102,902 | |||
Purchase price | 291,921 | |||
AMTROL | Measurement Period Adjustments | ||||
Business Acquisition [Line Items] | ||||
Other accrued items | 1,501 | |||
Deferred income taxes, net | (966) | |||
Net identifiable assets | (535) | |||
Goodwill | $ 535 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro forma Results (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
May 31, 2018 | May 31, 2017 | |
Business Acquisition Pro Forma Information [Abstract] | ||
Net sales | $ 3,581,620 | $ 3,263,315 |
Net earnings attributable to controlling interest | $ 199,038 | $ 215,182 |
Diluted earnings per share attributable to controlling interest | $ 3.16 | $ 3.32 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Impact to fair value of derivative assets and liabilities as a result of recognition on a net basis | $ 220 | $ 351 |
Losses in accumulated other comprehensive income expected to be reclassified into net earnings | 6,590 | |
Losses in accumulated other comprehensive income expected to be reclassified into net earnings, tax | $ 2,004 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule of Fair Value of Derivative Instruments (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | $ 2,414 | $ 11,423 |
Liability Derivatives at Fair Value | 12,238 | 846 |
Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 5 | 6,453 |
Liability Derivatives at Fair Value | 8,584 | |
Designated as Hedging Instrument | Commodity Contracts | Other Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 201 | |
Designated as Hedging Instrument | Commodity Contracts | Receivables | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 5 | 6,385 |
Designated as Hedging Instrument | Commodity Contracts | Other Assets | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 68 | |
Designated as Hedging Instrument | Commodity Contracts | Accounts Payable | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 8,383 | |
Derivatives Not Designated As Hedging Instruments | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 2,409 | 4,970 |
Liability Derivatives at Fair Value | 3,654 | 846 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 2,409 | 4,970 |
Liability Derivatives at Fair Value | 3,634 | 771 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | Other Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 66 | 158 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | Receivables | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 2,347 | 4,749 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | Other Assets | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 62 | 221 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | Accounts Payable | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 3,568 | 613 |
Derivatives Not Designated As Hedging Instruments | Foreign Currency Exchange Contracts | Accounts Payable | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | $ 20 | $ 75 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule of Summary of Derivative Hedges (Detail) $ in Thousands | 12 Months Ended |
May 31, 2019USD ($) | |
Commodity Contracts | Minimum | Derivatives Not Designated As Hedging Instruments | |
Derivative [Line Items] | |
Notional Amount | $ 53,310 |
Maturity Date | 2019-06 |
Commodity Contracts | Maximum | Derivatives Not Designated As Hedging Instruments | |
Derivative [Line Items] | |
Maturity Date | 2020-08 |
Foreign Currency Exchange Contracts | Minimum | Derivatives Not Designated As Hedging Instruments | |
Derivative [Line Items] | |
Notional Amount | $ 8,590 |
Maturity Date | 2019-06 |
Foreign Currency Exchange Contracts | Maximum | Derivatives Not Designated As Hedging Instruments | |
Derivative [Line Items] | |
Maturity Date | 2020-03 |
Cash Flow Hedges | Commodity Contracts | Minimum | |
Derivative [Line Items] | |
Notional Amount | $ 61,454 |
Maturity Date | 2019-06 |
Cash Flow Hedges | Commodity Contracts | Maximum | |
Derivative [Line Items] | |
Maturity Date | 2020-12 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of Derivatives Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | $ (12,637) | $ 14,983 |
Gain (Loss) Reclassified from Accumulated OCI (Effective Portion) | 3,590 | 13,627 |
Commodity Contracts | Cost of Sales | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | (12,637) | 11,620 |
Gain (Loss) Reclassified from Accumulated OCI (Effective Portion) | 3,752 | 14,034 |
Interest Rate Contracts | Interest Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in OCI (Effective Portion) | 3,363 | |
Gain (Loss) Reclassified from Accumulated OCI (Effective Portion) | $ (162) | $ (407) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Schedule of Gain (Loss) Recognized in Earnings for Economic (Non-Designated) Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
May 31, 2019 | May 31, 2018 | |
Derivative [Line Items] | ||
Gain (Loss) Recognized in Earnings | $ (8,718) | $ 6,020 |
Commodity Contracts | Cost of Sales | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Earnings | (5,114) | 6,284 |
Foreign Exchange Contracts | Miscellaneous Income Expense | ||
Derivative [Line Items] | ||
Gain (Loss) Recognized in Earnings | $ (3,604) | $ (264) |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 2,414 | $ 11,423 | |
Liabilities | 12,238 | 846 | |
Derivative Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 2,414 | 11,423 |
Liabilities | [1] | 12,238 | 846 |
Significant Other Observable Inputs (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 2,414 | 11,423 | |
Liabilities | 12,238 | 846 | |
Significant Other Observable Inputs (Level 2) | Derivative Contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 2,414 | 11,423 |
Liabilities | [1] | $ 12,238 | $ 846 |
[1] | The fair value of our derivative contracts was based on the present value of the expected future cash flows considering the risks involved, including non-performance risk, and using discount rates appropriate for the respective maturities. Market observable, Level 2 inputs are used to determine the present value of the expected future cash flows. Refer to “Note Q – Derivative Instruments and Hedging Activities” for additional information regarding our use of derivative instruments. |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on Non-Recurring Basis (Detail) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | $ 11,938 | $ 30,000 | |||
Investment In Unconsolidated Affiliate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | [1] | 3,700 | |||
Long Lived Assets Held For Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | 7,000 | [2] | 30,000 | [3] | |
Long Lived Assets Held And Used | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | [4] | 1,238 | |||
Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | 11,938 | 30,000 | |||
Significant Other Observable Inputs (Level 2) | Investment In Unconsolidated Affiliate | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | [1] | 3,700 | |||
Significant Other Observable Inputs (Level 2) | Long Lived Assets Held For Sale | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | 7,000 | [2] | $ 30,000 | [3] | |
Significant Other Observable Inputs (Level 2) | Long Lived Assets Held And Used | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | [4] | $ 1,238 | |||
[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 $1,000,000 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
May 31, 2019 | Aug. 31, 2018 | May 31, 2018 | Nov. 30, 2017 | [1] | May 31, 2019 | May 31, 2018 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Impairment charge | $ 5,436 | [1] | $ 2,381 | [1] | $ 52,919 | [1] | $ 8,289 | $ 7,817 | $ 61,208 | |
Oil And Gas Equipment | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Impairment charge | 10,497 | |||||||||
Zhejiang Nisshin Worthington Precision Specialty Steel Co | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Percent of ownership interest held in unconsolidated affiliates | 10.00% | 10.00% | ||||||||
Assets estimated fair value | $ 3,700 | $ 3,700 | ||||||||
Impairment charge | 4,017 | 4,017 | ||||||||
Worthington Aritas | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Impairment charge | 2,381 | 42,422 | ||||||||
Fair Value, Measurements, Nonrecurring | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets estimated fair value | 11,938 | 30,000 | 11,938 | 30,000 | ||||||
Fair Value, Measurements, Nonrecurring | CNG Fuel Systems | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets estimated fair value | 238 | 238 | ||||||||
Impairment charge | 2,167 | |||||||||
Fair Value, Measurements, Nonrecurring | Oil And Gas Equipment | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets estimated fair value | 21,000 | 21,000 | ||||||||
Fair Value, Measurements, Nonrecurring | Zhejiang Nisshin Worthington Precision Specialty Steel Co | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets estimated fair value | 3,700 | 3,700 | ||||||||
Fair Value, Measurements, Nonrecurring | Worthington Specialty Processing | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets estimated fair value | $ 1,000 | 1,000 | ||||||||
Impairment charge | $ 3,269 | |||||||||
Fair Value, Measurements, Nonrecurring | Worthington Aritas | ||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||
Assets estimated fair value | $ 7,000 | $ 9,000 | $ 9,000 | |||||||
[1] | For additional information regarding the Company’s impairment activity, refer to “Note D – Goodwill and Other Long-Lived Assets.” |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | May 31, 2019 | May 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt at carrying amount including current maturities | $ 753,100 | |
Long-term Debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt at fair value including current maturities | 767,075 | $ 757,069 |
Long-term debt at carrying amount including current maturities | $ 749,299 | $ 750,368 |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Leases [Abstract] | |||
Operating leases rent expenses | $ 16,624 | $ 16,277 | $ 13,519 |
Future Minimum Lease Payments f
Future Minimum Lease Payments for Noncancelable Operating Lease (Detail) $ in Thousands | May 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 10,774 |
2021 | 8,398 |
2022 | 5,428 |
2023 | 4,054 |
2024 | 2,098 |
Thereafter | 2,637 |
Total | $ 33,389 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
May 31, 2019 | May 31, 2018 | May 31, 2017 | |
Related Party Transactions [Abstract] | |||
Net sales to affiliates | $ 53,125,000 | $ 57,382,000 | $ 56,588,000 |
Purchases from affiliates | 2,906,000 | 7,292,000 | $ 7,145,000 |
Receivables from affiliates | 4,246,000 | 2,479,000 | |
Payable to affiliates | $ 687,000 | $ 0 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Summary of Unaudited Quarterly Consolidated Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
May 31, 2019 | Feb. 28, 2019 | Nov. 30, 2018 | Aug. 31, 2018 | May 31, 2018 | Feb. 28, 2018 | Nov. 30, 2017 | Aug. 31, 2017 | May 31, 2019 | May 31, 2018 | May 31, 2017 | |||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Net sales | $ 938,842 | $ 874,381 | $ 958,226 | $ 988,107 | $ 1,020,460 | $ 841,657 | $ 871,266 | $ 848,237 | $ 3,759,556 | $ 3,581,620 | $ 3,014,108 | ||||
Gross margin | 126,003 | 90,021 | 120,934 | 142,997 | 162,946 | 127,055 | 140,079 | 132,778 | 479,955 | 562,857 | 535,905 | ||||
Impairment of goodwill and long-lived assets | 5,436 | [1] | 2,381 | [1] | 52,919 | [1] | 8,289 | [1] | 7,817 | 61,208 | |||||
Net earnings | 38,975 | 29,548 | 37,792 | 56,958 | 32,857 | 78,297 | 41,622 | 48,074 | 163,273 | 200,850 | 217,937 | ||||
Net earnings attributable to controlling interest | $ 37,738 | $ 26,773 | $ 34,002 | $ 54,942 | $ 30,769 | $ 79,087 | $ 39,403 | $ 45,534 | $ 153,455 | $ 194,794 | $ 204,515 | ||||
Basic earnings per share - controlling interest | $ 0.68 | $ 0.47 | $ 0.59 | $ 0.94 | $ 0.52 | $ 1.31 | $ 0.64 | $ 0.73 | $ 2.68 | $ 3.20 | $ 3.28 | ||||
Diluted earnings per share - controlling interest | $ 0.66 | $ 0.46 | $ 0.57 | $ 0.91 | $ 0.50 | $ 1.27 | $ 0.62 | $ 0.70 | $ 2.61 | $ 3.09 | $ 3.15 | ||||
[1] | For additional information regarding the Company’s impairment activity, refer to “Note D – Goodwill and Other Long-Lived Assets.” |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Thousands | Jul. 24, 2019USD ($) |
Subsequent Event | Worthington Aritas | Disposed of by Sale | |
Subsequent Event [Line Items] | |
Net cash proceed from sale of business | $ 8,300 |
SCHEDULE II - Valuation and Q_2
SCHEDULE II - Valuation and Qualifying Accounts (Detail) - Allowance for Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | |||
May 31, 2019 | May 31, 2018 | May 31, 2017 | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Period | $ 632 | $ 3,444 | $ 4,579 | |
Charged to Costs and Expenses | 659 | 11 | 269 | |
Uncollectable Accounts Charged to Allowance | [1] | (141) | (2,823) | (1,404) |
Balance at End of Period | $ 1,150 | $ 632 | $ 3,444 | |
[1] | For fiscal 2018, the balance also includes $1,215,000 related to Worthington Aritas that was reclassified to assets held for sale. |
SCHEDULE II - Valuation and Q_3
SCHEDULE II - Valuation and Qualifying Accounts (Parenthetical ) (Detail) $ in Thousands | 12 Months Ended |
May 31, 2018USD ($) | |
Worthington Aritas | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |
Assets held for sale | $ 1,215 |