Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Nov. 30, 2020 | Dec. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Nov. 30, 2020 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Trading Symbol | WOR | |
Entity Registrant Name | WORTHINGTON INDUSTRIES, INC | |
Entity Central Index Key | 0000108516 | |
Current Fiscal Year End Date | --05-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Incorporation, State or Country Code | OH | |
Entity Shell Company | false | |
Entity File Number | 001-08399 | |
Entity Tax Identification Number | 31-1189815 | |
Entity Address, Address Line One | 200 Old Wilson Bridge Road | |
Entity Address, City or Town | Columbus | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43085 | |
City Area Code | 614 | |
Local Phone Number | 438-3210 | |
Entity Common Stock, Shares Outstanding | 52,201,138 | |
Title of 12(b) Security | Common Shares, Without Par Value | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 713,130 | $ 147,198 |
Receivables, less allowances of $1,291 and $1,521 at November 30, 2020 and May 31, 2020, respectively | 441,936 | 341,038 |
Inventories: | ||
Raw materials | 152,824 | 234,629 |
Work in process | 82,747 | 76,497 |
Finished products | 68,872 | 93,975 |
Total inventories | 304,443 | 405,101 |
Income taxes receivable | 3,247 | 8,376 |
Assets held for sale | 12,893 | 12,928 |
Investment in Nikola | 143,850 | |
Prepaid expenses and other current assets | 68,371 | 68,538 |
Total current assets | 1,687,870 | 983,179 |
Investments in unconsolidated affiliates | 209,952 | 203,329 |
Operating lease assets | 30,007 | 31,557 |
Goodwill | 320,014 | 321,434 |
Other intangible assets, net of accumulated amortization of $86,489 and $92,774 at November 30, 2020 and May 31, 2020, respectively | 174,376 | 184,416 |
Other assets | 32,842 | 34,956 |
Property, plant and equipment: | ||
Land | 23,592 | 24,197 |
Buildings and improvements | 292,544 | 302,796 |
Machinery and equipment | 1,082,979 | 1,055,139 |
Construction in progress | 63,526 | 52,231 |
Total property, plant and equipment | 1,462,641 | 1,434,363 |
Less: accumulated depreciation | 890,317 | 861,719 |
Total property, plant and equipment, net | 572,324 | 572,644 |
Total assets | 3,027,385 | 2,331,515 |
Current liabilities: | ||
Accounts payable | 337,976 | 247,017 |
Accrued compensation, contributions to employee benefit plans and related taxes | 101,812 | 64,650 |
Dividends payable | 14,843 | 14,648 |
Other accrued items | 51,439 | 49,974 |
Current operating lease liabilities | 10,954 | 10,851 |
Income taxes payable | 39,990 | 949 |
Current maturities of long-term debt | 160 | 149 |
Total current liabilities | 557,174 | 388,238 |
Other liabilities | 85,105 | 75,786 |
Distributions in excess of investment in unconsolidated affiliate | 107,951 | 103,837 |
Long-term debt | 707,340 | 699,516 |
Noncurrent operating lease liabilities | 23,695 | 25,763 |
Deferred income taxes, net | 115,649 | 71,942 |
Total liabilities | 1,596,914 | 1,365,082 |
Shareholders' equity - controlling interest | 1,276,899 | 820,821 |
Noncontrolling interests | 153,572 | 145,612 |
Total equity | 1,430,471 | 966,433 |
Total liabilities and equity | $ 3,027,385 | $ 2,331,515 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Receivables, allowances | $ 1,291 | $ 1,521 |
Other intangible assets, accumulated amortization | $ 86,489 | $ 92,774 |
Consolidated Statements of Earn
Consolidated Statements of Earnings (Loss) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 731,092 | $ 827,637 | $ 1,434,001 | $ 1,683,496 |
Cost of goods sold | 595,618 | 707,026 | 1,185,169 | 1,445,594 |
Gross margin | 135,474 | 120,611 | 248,832 | 237,902 |
Selling, general and administrative expense | 82,129 | 88,543 | 164,325 | 179,366 |
Impairment of long-lived assets | 3,815 | 0 | 13,739 | 40,601 |
Restructuring and other expense (income), net | 7,596 | (50) | 9,444 | 405 |
Incremental expenses related to Nikola gains | 4,570 | 0 | 54,081 | 0 |
Operating income | 37,364 | 32,118 | 7,243 | 17,530 |
Other income (expense): | ||||
Miscellaneous income, net | 376 | 636 | 827 | 1,331 |
Interest expense | (7,548) | (7,315) | (15,138) | (16,795) |
Equity in net income of unconsolidated affiliates | 25,631 | 47,346 | 49,265 | 72,113 |
Gains (loss) on investment in Nikola | (143,780) | 0 | 652,362 | 0 |
Loss on extinguishment of debt | 0 | 0 | 0 | (4,034) |
Earnings (loss) before income taxes | (87,957) | 72,785 | 694,559 | 70,145 |
Income tax expense (benefit) | (19,445) | 15,863 | 144,333 | 15,678 |
Net earnings (loss) | (68,512) | 56,922 | 550,226 | 54,467 |
Net earnings attributable to noncontrolling interests | 5,532 | 4,836 | 7,595 | 7,157 |
Net earnings (loss) attributable to controlling interest | $ (74,044) | $ 52,086 | $ 542,631 | $ 47,310 |
Basic | ||||
Average common shares outstanding | 52,988 | 55,059 | 53,532 | 55,150 |
Earnings (loss) per share attributable to controlling interest | $ (1.40) | $ 0.95 | $ 10.14 | $ 0.86 |
Diluted | ||||
Average common shares outstanding | 52,988 | 56,072 | 54,439 | 56,205 |
Earnings (loss) per share attributable to controlling interest | $ (1.40) | $ 0.93 | $ 9.97 | $ 0.84 |
Common shares outstanding at end of period | 52,754 | 55,094 | 52,754 | 55,094 |
Cash dividends declared per share | $ 0.25 | $ 0.24 | $ 0.50 | $ 0.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net earnings (loss) | $ (68,512) | $ 56,922 | $ 550,226 | $ 54,467 |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | (1,051) | 6,662 | 7,257 | 11,444 |
Pension liability adjustment, net of tax | (4) | 95 | 368 | 1,108 |
Cash flow hedges, net of tax | 15,218 | 3,213 | 17,781 | 574 |
Other comprehensive income | 14,163 | 9,970 | 25,406 | 13,126 |
Comprehensive income (loss) | (54,349) | 66,892 | 575,632 | 67,593 |
Comprehensive income attributable to noncontrolling interests | 5,532 | 4,836 | 7,595 | 7,157 |
Comprehensive income (loss) attributable to controlling interest | $ (59,881) | $ 62,056 | $ 568,037 | $ 60,436 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Operating activities: | ||||
Net earnings (loss) | $ (68,512) | $ 56,922 | $ 550,226 | $ 54,467 |
Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 21,560 | 22,596 | 43,771 | 46,773 |
Impairment of long-lived assets | 3,815 | 0 | 13,739 | 40,601 |
Provision for (benefit from) deferred income taxes | (31,776) | 6,843 | 39,255 | 3,345 |
Bad debt (income) expense | (159) | 143 | (65) | 311 |
Equity in net income of unconsolidated affiliates, net of distributions | 4,608 | (19,879) | (2,149) | (14,797) |
Net (gain) loss on sale of assets | 7,271 | (17) | 7,673 | 601 |
Stock-based compensation | 4,854 | 3,280 | 9,710 | 7,275 |
(Gains) loss on investment in Nikola | 143,780 | 0 | (652,362) | 0 |
Charitable contribution of Nikola shares | 20,653 | |||
Loss on extinguishment of debt | 0 | 0 | 0 | 4,034 |
Changes in assets and liabilities: | ||||
Receivables | 3,580 | (5,456) | (78,614) | 9,525 |
Inventories | 4,623 | 43,601 | 90,245 | 87,883 |
Accounts payable | 48,176 | (20,743) | 95,330 | (57,977) |
Accrued compensation and employee benefits | 13,960 | 9,619 | 37,812 | (13,596) |
Income taxes payable | (44,623) | (118) | 39,041 | (1,132) |
Other operating items, net | (3,729) | 7,369 | 10,551 | 1,216 |
Net cash provided by operating activities | 107,428 | 104,160 | 224,816 | 168,529 |
Investing activities: | ||||
Investment in property, plant and equipment | (16,073) | (28,381) | (48,944) | (50,555) |
Proceeds from sale of Nikola shares | 487,859 | |||
Acquisitions, net of cash acquired | (75) | (29,283) | (75) | (29,283) |
Proceeds from sale of assets | 21,580 | 23 | 21,580 | 9,199 |
Net cash provided (used) by investing activities | 5,432 | (57,641) | 460,420 | (70,639) |
Financing activities: | ||||
Proceeds from long-term debt, net of issuance costs | (134) | 101,464 | ||
Principal payments on long-term obligations and debt redemption costs | (96) | (490) | (193) | (154,467) |
Proceeds from issuance of common shares, net of tax withholdings | 2,294 | (3,811) | 1,144 | (7,024) |
Payments to noncontrolling interests | (1,453) | (560) | (1,453) | |
Repurchase of common shares | (38,563) | (92,883) | (29,599) | |
Dividends paid | (13,433) | (13,954) | (26,812) | (26,914) |
Net cash used by financing activities | (49,798) | (19,842) | (119,304) | (117,993) |
Increase (decrease) in cash and cash equivalents | 63,062 | 26,677 | 565,932 | (20,103) |
Cash and cash equivalents at beginning of period | 650,068 | 45,583 | 147,198 | 92,363 |
Cash and cash equivalents at end of period | $ 713,130 | $ 72,260 | $ 713,130 | $ 72,260 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | NOTE A – Basis of Presentation 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 have been eliminated. The Company owns controlling interests in the following four joint ventures: Spartan Steel Coating, LLC (“Spartan”) (52%), TWB Company, L.L.C. (“TWB”) (55%), Worthington Samuel Coil Processing LLC (“Samuel” or “Samuel joint venture”) (63%), 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 (loss) and other comprehensive income (loss) (“OCI”) shown as net earnings or comprehensive income attributable to noncontrolling interests in our consolidated statements of earnings (loss) and consolidated statements of comprehensive income (loss), respectively. Investments in unconsolidated affiliates are accounted for using the equity method. See further discussion of our unconsolidated affiliates in “NOTE D – Investments in Unconsolidated Affiliates”. These unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the United States Securities and Exchange Commission (the “SEC”). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments, which are of a normal and recurring nature except those which have been disclosed elsewhere in this Quarterly Report on Form 10-Q, necessary for a fair presentation of the consolidated financial statements for these interim periods, have been included The preparation of consolidated financial statements in conformity with 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. Deconsolidation of Engineered Cabs: On November 1, 2019, we closed on an agreement with an affiliate of Angeles Equity Partners, LLC by which we contributed substantially all of the net assets of the Company’s Engineered Cabs business to a newly-formed joint venture, Taxi Workhorse Holdings, LLC (the “Cabs joint venture”), in which the Company retained a 20% noncontrolling interest. Immediately following the contribution, the Cabs joint venture acquired the net assets of Crenlo Cab Products, LLC (“Crenlo”). The investment in the Cabs joint venture is accounted for under the equity method, due to lack of control as more fully described in “NOTE D – Investments in Unconsolidated Affiliates”. Recently Adopted Accounting Standards On June 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Additionally, there have been no significant changes to our accounting policies as disclosed in our 2020 Form 10-K as a result of the adoption of this new accounting guidance. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Nov. 30, 2020 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | NOTE B – Revenue Recognition The following table summarizes net sales by product class for the periods presented: Three Months Ended Six Months Ended (in thousands) November 30, November 30, Reportable segments by product class: 2020 2019 2020 2019 Steel Processing Direct $ 433,556 $ 481,058 $ 838,364 $ 974,704 Toll 35,167 35,879 61,379 65,608 Total 468,723 516,937 899,743 1,040,312 Pressure Cylinders Consumer products 121,618 128,065 254,400 247,545 Industrial products 134,020 130,334 262,245 282,952 Oil & gas equipment 6,646 31,737 16,543 64,035 Total 262,284 290,136 533,188 594,532 Other Engineered Cabs 85 20,550 1,070 48,616 Other - 14 - 36 Total 85 20,564 1,070 48,652 Total $ 731,092 $ 827,637 $ 1,434,001 $ 1,683,496 We recognize revenue at a point in time, with the exception of the toll processing revenue stream and certain contracts within the oil & gas equipment revenue streams, which are recognized over time. The following table summarizes the over time revenue for the periods presented: Three Months Ended Six Months Ended November 30, November 30, (in thousands) 2020 2019 2020 2019 Steel Processing - toll $ 35,167 $ 35,879 $ 61,379 $ 65,608 Pressure Cylinders - certain oil & gas equipment contracts 4,367 27,531 12,066 57,539 Total over time revenue $ 39,534 $ 63,410 $ 73,445 $ 123,147 The following table summarizes the unbilled receivables and contract assets for the periods indicated: November 30, May 31, (in thousands) Balance Sheet Classification 2020 2020 Unbilled receivables Receivables $ 4,937 $ 5,552 Contract assets Prepaid and other current assets $ 5,636 $ 4,127 We have elected the optional exemption, which allows for the exclusion of the amounts for remaining performance obligations that are part of contracts with an expected duration of one year or less. There are no unsatisfied or partially satisfied performance obligations related to contracts with an expected duration greater than one year. |
Investment in Nikola
Investment in Nikola | 6 Months Ended |
Nov. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investment in Nikola | NOTE C – Investment in Nikola On June 3, 2020 (the “Effective Date”), Nikola Corporation (“Nikola”) became a public company through a reverse merger with a subsidiary of VectoIQ Acquisition Corporation, a NASDAQ listed publicly traded company. At the Effective Date, we owned 19,048,020 shares of Nikola common stock. During the first quarter of fiscal 2021, we recognized a $796,141,000 pre-tax gain consisting of $508,511,000 in realized gains from the sale of 11,500,000 of our Nikola shares and a charitable contribution of 500,000 of those shares, and an unrealized mark-to-market gain of $287,630,000 for the remaining 7,048,020 Nikola shares we continued to hold at August 31, 2020 when the market price was $40.81 per share. We also recognized $49,511,000 of incremental expenses in operating income related to the Nikola gains consisting of $28,858,000 for discretionary profit sharing and bonus expenses and $20,653,000 for the charitable contribution of the 500,000 Nikola shares to the Worthington Industries Foundation to establish a charitable endowment focused on the communities in which the Company operates. During the second quarter of fiscal 2021, the market price of the Nikola shares dropped from $40.81 per share at August 31, 2020 to $20.41 per share at November 30, 2020, resulting in an unrealized mark-to-market loss of $143,780,000 for the 7,048,020 shares we held at quarter end, and reducing the pre-tax year-to-date realized and unrealized gain on the investment in Nikola to $652,362,000. In addition, during the second quarter, we recorded incremental expenses of $4,570,000 for discretionary bonuses related to the Nikola investment gain, which are subject to service requirements and required to be recognized as they are earned throughout fiscal 2021. |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 6 Months Ended |
Nov. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | NOTE D – Investments in Unconsolidated Affiliates Investments in affiliated companies that we do not control, either through majority ownership or otherwise, are accounted for using the equity method. At November 30, 2020, the Company held investments in the following affiliated companies: ArtiFlex Manufacturing, LLC (“ArtiFlex”) (50%), the Cabs joint venture (20%), Clarkwestern Dietrich Building Systems LLC (“ClarkDietrich”) (25%), Serviacero Planos, S. de R. L. de C.V. (“Serviacero Worthington”) (50%), and Worthington Armstrong Venture (“WAVE”) (50%). During the first quarter of fiscal 2020, the Company began the process of exploring the potential exit of its ownership interest in Nisshin, its former joint venture in China. As a result, the Company evaluated its investment for potential impairment and concluded the remaining book value of the investment was fully impaired, resulting in an impairment charge of On December 19, 2019, the Company finalized an agreement to transfer the risks and rewards related to its 10% interest to the other joint venture partners and from that point on, the Company had no further rights or obligations related to the Nisshin joint venture. On December 31, 2019, the Company contributed the operating net assets, excluding working capital, of its Cleveland facility, (which the Company had previously acquired on October 7, 2019 from Heidtman Steel Products, Inc.) to the Samuel joint venture in exchange for an incremental 31.75% ownership interest in the joint venture. This increased our total ownership interest to 63% and the joint venture’s results have been consolidated within Steel Processing since that time. On November 1, 2019, we closed on an agreement with an affiliate of Angeles Equity Partners, LLC by which we contributed the net assets of our primary Engineered Cabs manufacturing facilities located in Greeneville, Tennessee and Watertown, South Dakota to the newly-formed Cabs joint venture, in which we retained a 20% noncontrolling interest. Immediately following the contribution, the Cabs joint venture acquired the net assets of Crenlo. Our investment in the Cabs joint venture is accounted for under the equity method, due to lack of control. The Company’s contribution to the Cabs joint venture resulted in recognizing an impairment charge of $35,194,000 in the first quarter of fiscal 2020 when the disposal group met the criteria as assets held for sale. Certain non-core assets of the Engineered Cabs business, including the fabricated products facility in Stow, Ohio, and the steel packaging facility in Greensburg, Indiana, were retained. Refer to “NOTE E – Impairment of Long-Lived Assets” for additional information on the retained assets. Upon closing of the transaction, the contributed net assets were deconsolidated, resulting in a net gain of $258,000 during fiscal 2020, as summarized below: (in thousands) Retained investment (at fair value) $ 13,831 Contributed net assets (at carrying value) 13,394 Gain on deconsolidation 437 Less: deal costs (179 ) Net gain on deconsolidation $ 258 We received distributions from unconsolidated affiliates totaling $47,116,000 during the six months ended November 30, 2020. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in an amount recorded within other liabilities on our consolidated balance sheets of $107,951,000 at November 30, 2020. In accordance with the applicable accounting guidance, we reclassified the negative investment balance to the liabilities section of our consolidated balance sheet. We will continue to record our equity in the net income of WAVE as a debit to the investment account, and if the investment balance becomes positive, it will again be shown as an asset on our consolidated balance sheet. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will recognize any negative investment balance classified as a liability as income immediately. 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 received, less distributions received in prior periods that were determined to be returns of investment, 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. The following tables summarize combined financial information for our unconsolidated affiliates as of the dates, and for the periods presented: November 30, May 31, (in thousands) 2020 2020 Cash $ 49,957 $ 68,730 Other current assets 564,359 528,631 Noncurrent assets 391,547 399,731 Total assets $ 1,005,863 $ 997,092 Current liabilities $ 205,530 $ 174,709 Short-term borrowings - 500 Current maturities of long-term debt 10,700 37,542 Long-term debt 314,730 346,690 Other noncurrent liabilities 87,087 73,656 Equity 387,816 363,995 Total liabilities and equity $ 1,005,863 $ 997,092 Three Months Ended Six Months Ended November 30, November 30, (in thousands) 2020 2019 2020 2019 Net sales $ 451,198 $ 453,288 $ 856,518 $ 923,493 Gross margin 96,561 95,995 189,610 193,531 Operating income 64,890 62,414 122,843 128,637 Depreciation and amortization 8,672 7,538 16,402 14,627 Interest expense 2,832 3,139 5,777 6,506 Income tax expense 2,322 1,272 4,052 1,853 Net earnings from continuing operations 60,943 53,483 117,516 114,624 Net earnings from discontinued operations - 46,958 - 49,770 Net earnings 60,943 100,441 117,516 164,394 The amount presented within the “Net earnings from discontinued operations” caption in the table above reflects the international operations of our WAVE joint venture prior to their sale on September 30, 2019. The sale was part of a broader transaction between the joint venture partner, Armstrong World Industries, Inc. (“AWI”), and Knauf Ceilings and Holding GmbH (“Knauf”), a family-owned manufacturer of building materials headquartered in Germany. In September 2020, we received the final cash distribution of $2,950,000 for our portion of the remaining proceeds of the sale. The Company corrected certain amounts in the table above for the three and six months ended November 30, 2019, to reflect the international operations of our WAVE joint venture within discontinued operations prior to their sale on September 30, 2019, as those amounts were previously included in net sales, gross margin, operating income, and income tax expense. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 6 Months Ended |
Nov. 30, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Impairment of Long-Lived Assets | NOTE E – Impairment of Long-Lived Assets Fiscal 2021 During the first quarter of fiscal 2021, we recorded impairment charges totaling $9,924,000 as impairment indicators were identified as follows: • The future undiscounted cash flows of the cryogenics business primarily operated out of the Theodore, Alabama facility did not support its book value. As a result, property, plant and equipment with a carrying value of $13,526,000 were written down to their estimated fair value of $9,193,000 (determined using Level 2 inputs), resulting in an impairment charge of $4,333,000. Additionally, the customer list intangible assets with a carrying value of $3,662,000 were deemed to be fully impaired (using unobservable Level 3 inputs) and written off. These assets were subsequently sold in October 2020 (refer to “NOTE F – Restructuring and Other Expense, Net” for additional information on this sale). • We decided to discontinue our operation of the manufacturing line for alternative fuel cylinders at the Jefferson, Ohio facility. As a result, long-lived assets with a carrying value of $1,823,000 were written down to their estimated fair market value of $400,000 (determined using Level 2 inputs), resulting in an impairment charge of $1,423,000. • The Company recognized a $506,000 impairment charge related to the Superior Tools business that was acquired as part of Magna Industries, Inc. in fiscal 2019 and subsequently sold. Fiscal 2020 |
Restructuring and Other Expense
Restructuring and Other Expense, Net | 6 Months Ended |
Nov. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Restructuring and Other Expense, Net | NOTE F – Restructuring and Other Expense, 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. In October 2020, the Pressure Cylinders business completed the sale of its cryogenic and hydrogen trailer business, including the Theodore, Alabama manufacturing site, and the cryo-science and microbulk storage unit business. In connection with these transactions, the Company realized net cash proceeds of $21,223,000 after working capital adjustments, which generated a pre-tax loss of $7,072,000, primarily related to allocated goodwill. A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other expense, net financial statement caption, in our consolidated statement of earnings is summarized below for the six-month period ended November 30, 2020: Balance, as of Balance, as of (in thousands) May 31, 2020 Expense Payments Adjustments November 30, 2020 Early retirement and severance $ 6,536 $ 1,227 $ (5,637 ) $ (99 ) $ 2,027 Facility exit and other costs 156 1,145 (1,222 ) 74 153 $ 6,692 $ 2,372 $ (6,859 ) $ (25 ) $ 2,180 Net loss on sale of assets 7,072 Restructuring and other expense, net $ 9,444 The total liability associated with our restructuring activities as of November 30, 2020 is expected to be paid in the next twelve months. |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments | 6 Months Ended |
Nov. 30, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingent Liabilities and Commitments | NOTE G – 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. As of November 30, 2020, the Company has a reserve of $4,948,000 related to this matter, which is our best estimate of the remaining direct costs related to the replacement program, which are expected to be paid in the next six months. The actual cost incurred by the Company related to this matter may vary from the initial estimate. |
Guarantees
Guarantees | 6 Months Ended |
Nov. 30, 2020 | |
Guarantees And Product Warranties [Abstract] | |
Guarantees | NOTE H – 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. We had in place $15,050,000 of outstanding stand-by letters of credit issued to third-party service providers at November 30, 2020. No amounts were drawn against them at November 30, 2020. |
Debt
Debt | 6 Months Ended |
Nov. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | NOTE I – Debt We maintain a $500,000,000 multi-year revolving credit facility (the “Credit Facility”) with a group of lenders which matures in February 2023. 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 or letters of credit outstanding under the Credit Facility at November 30, 2020. |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Other Comprehensive Income | NOTE J – Other Comprehensive Income The following table summarizes the tax effects on each component of OCI for the periods presented: Three months ended November 30, 2020 2019 Before-Tax Tax Net-of-Tax Before-Tax Tax Net-of-Tax (in thousands) Foreign currency translation $ (1,027 ) (24 ) $ (1,051 ) $ 6,662 $ - $ 6,662 Pension liability adjustment (4 ) - (4 ) 117 (22 ) 95 Cash flow hedges 19,540 (4,322 ) 15,218 4,016 (803 ) 3,213 Other comprehensive income $ 18,509 $ (4,346 ) $ 14,163 $ 10,795 $ (825 ) $ 9,970 Six months ended November 30, 2020 2019 Before-Tax Tax Net-of-Tax Before-Tax Tax Net-of-Tax (in thousands) Foreign currency translation $ 6,581 676 $ 7,257 $ 11,444 $ - $ 11,444 Pension liability adjustment 484 (116 ) 368 1,421 (313 ) 1,108 Cash flow hedges 22,793 (5,012 ) 17,781 691 (117 ) 574 Other comprehensive income $ 29,858 $ (4,452 ) $ 25,406 $ 13,556 $ (430 ) $ 13,126 |
Changes in Equity
Changes in Equity | 6 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Changes in Equity | NOTE K – Changes in Equity The following tables summarize the changes in equity by component and in total for the periods presented: Controlling Interest Accumulated Other Additional Comprehensive Non- Paid-in Loss, Retained controlling (in thousands) Capital Net of Tax Earnings Total Interests Total Balance at May 31, 2020 $ 283,776 $ (35,217 ) $ 572,262 $ 820,821 $ 145,612 $ 966,433 Net earnings - - 616,675 616,675 2,063 618,738 Other comprehensive income - 11,242 - 11,242 - 11,242 Common shares issued, net of withholding tax (1,150 ) - - (1,150 ) - (1,150 ) Common shares in NQ plans 90 - - 90 - 90 Stock-based compensation 3,022 - - 3,022 - 3,022 Purchases and retirement of common shares (7,536 ) - (46,784 ) (54,320 ) - (54,320 ) Cash dividends declared - - (13,595 ) (13,595 ) - (13,595 ) Dividends to noncontrolling interest - - - - (560 ) (560 ) Balance at August 31, 2020 $ 278,202 $ (23,975 ) $ 1,128,558 $ 1,382,785 $ 147,115 $ 1,529,900 Net earnings (loss) - - (74,044 ) (74,044 ) 5,532 (68,512 ) Other comprehensive income - 14,163 - 14,163 - 14,163 Common shares issued, net of withholding tax 2,294 - - 2,294 - 2,294 Common shares in NQ plans 292 - - 292 - 292 Stock-based compensation 3,499 - - 3,499 - 3,499 Purchases and retirement of common shares (4,486 ) - (34,077 ) (38,563 ) - (38,563 ) Contribution to Samuel joint venture - - - - 925 925 Cash dividends declared - - (13,527 ) (13,527 ) - (13,527 ) Balance at November 30, 2020 $ 279,801 $ (9,812 ) $ 1,006,910 $ 1,276,899 $ 153,572 $ 1,430,471 Controlling Interest Accumulated Other Additional Comprehensive Non- Paid-in Loss, Retained controlling (in thousands) Capital Net of Tax Earnings Total Interests Total Balance at May 31, 2019 $ 283,177 $ (43,464 ) $ 591,533 $ 831,246 $ 117,148 $ 948,394 Net earnings (loss) - - (4,776 ) (4,776 ) 2,321 (2,455 ) Other comprehensive income - 3,156 - 3,156 - 3,156 Common shares issued, net of withholding tax (3,213 ) - - (3,213 ) - (3,213 ) Common shares in NQ plans 74 - - 74 - 74 Stock-based compensation 4,545 - - 4,545 - 4,545 Purchases and retirement of common shares (3,814 ) - (25,785 ) (29,599 ) - (29,599 ) Cash dividends declared - - (13,460 ) (13,460 ) - (13,460 ) Balance at August 31, 2019 $ 280,769 $ (40,308 ) $ 547,512 $ 787,973 $ 119,469 $ 907,442 Net earnings - - 52,086 52,086 4,836 56,922 Other comprehensive loss - 9,970 - 9,970 - 9,970 Common shares issued, net of withholding tax (3,811 ) - - (3,811 ) - (3,811 ) Common shares in NQ plans 239 - - 239 - 239 Stock-based compensation 2,880 - - 2,880 - 2,880 Purchases and retirement of common shares - - - - - - Cash dividends declared - - (13,446 ) (13,446 ) - (13,446 ) Dividends to noncontrolling interest - - - - (1,453 ) (1,453 ) Balance at November 30, 2019 $ 280,077 $ (30,338 ) $ 586,152 $ 835,891 $ 122,852 $ 958,743 The following tables summarize the changes in accumulated other comprehensive loss for the periods presented: Accumulated Foreign Pension Other Currency Liability Cash Flow Comprehensive (in thousands) Translation Adjustment Hedges Loss Balance as of May 31, 2020 $ (9,142 ) $ (21,886 ) $ (4,189 ) $ (35,217 ) Other comprehensive income before reclassifications 6,581 484 16,765 23,830 Reclassification adjustments to income (a) - - 6,028 6,028 Income tax effect 676 (116 ) (5,013 ) (4,453 ) Balance as of November 30, 2020 $ (1,885 ) $ (21,518 ) $ 13,591 $ (9,812 ) Accumulated Foreign Pension Other Currency Liability Cash Flow Comprehensive (in thousands) Translation Adjustment Hedges Loss Balance as of May 31, 2019 $ (19,639 ) $ (17,856 ) $ (5,969 ) $ (43,464 ) Other comprehensive income (loss) before reclassifications 2,948 79 (5,975 ) (2,948 ) Reclassification adjustments to income (a) 8,496 1,342 6,666 16,504 Income tax effect - (313 ) (117 ) (430 ) Balance as of November 30, 2019 $ (8,195 ) $ (16,748 ) $ (5,395 ) $ (30,338 ) (a) The statement of earnings (loss) classification of amounts reclassified to income include: (1) Foreign currency translation – result of $7,454,000 related to the sale of the cryogenics business in Turkey; and $1,042,000 related to the impairment of Nisshin, the Company’s former joint venture in China. (2) Pension liability adjustment – result of the settlement of certain participant balances within the pension plan maintained by WAVE. (3) Cash flow hedges – disclosed in “NOTE P – Derivative Instruments and Hedging Activities”. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Nov. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based Compensation | NOTE L – Stock-Based Compensation Non-Qualified Stock Options During the six months ended November 30, 2020, we granted non-qualified stock options covering a total of 116,300 common shares under our stock-based compensation plans. The weighted average exercise price of $36.93 per share was equal to the market price of the underlying common shares at the grant date. The fair value of these stock options, based on the Black-Scholes option-pricing model, calculated at the grant date, was $10.43 per share. The calculated pre-tax stock-based compensation expense for these stock options is $1,213,000 and will be recognized on a straight-line basis over the three-year Dividend yield 2.94 % Expected volatility 40.82 % Risk-free interest rate 0.42 % Expected term (years) 6.0 Expected volatility is based on the historical volatility of Worthington Industries, Inc.’s common shares and the risk-free interest rate is based on the U.S. Treasury strip rate for the expected term of the stock options. The expected term was developed using historical exercise experience. Service-Based Restricted Common Shares During the six months ended November 30, 2020 three-year Market-Based Restricted Common Shares On June 25, 2020, we granted an aggregate of 45,000 restricted common shares to three key employees under one of our stock-based compensation plans. Vesting of these restricted common share awards is contingent upon the price of Worthington Industries, Inc.’s common shares reaching $65.00 per share and remaining at or above that price for 90 consecutive days during the five-year Dividend yield 2.71 % Expected volatility 41.50 % Risk-free interest rate 0.32 % The calculated pre-tax stock-based compensation expense for these restricted common shares is $939,000 and will be recognized on a straight-line basis over the three-year service vesting period. Performance Share Awards We have awarded performance shares to certain key employees under our stock-based compensation plans. These performance shares are earned based on the level of achievement with respect to corporate targets for cumulative corporate economic value added, earnings per share growth and, in the case of business unit executives, business unit operating income target, in each case for the three-year periods ending May 31, 2021, 2022 and 2023. 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 values of our performance shares are determined by the closing market prices of the underlying common shares at the respective grant dates of the performance shares 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. During the six months ended November 30, 2020 three-year |
Income Taxes
Income Taxes | 6 Months Ended |
Nov. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE M – Income Taxes Income tax expense for the six months ended November 30, 2020 and 2019 reflected estimated annual effective income tax rates of 21.5% and 24.8%, respectively. The annual effective income tax rates exclude any impact from the inclusion of net earnings attributable to noncontrolling interests in our consolidated statements of earnings (loss). Net earnings attributable to noncontrolling interests are primarily a result of our WSP, Spartan, Samuel and TWB consolidated joint ventures. The earnings attributable to the noncontrolling interests in WSP, Spartan, Samuel and TWB’s U.S. operations do not generate tax expense to Worthington since the investors in WSP, Spartan, Samuel and TWB’s U.S. operations are taxed directly based on the earnings attributable to them. The tax expense of TWB’s wholly-owned foreign corporations is reported in our consolidated income tax expense (benefit). Management is required to estimate the annual effective income tax rate based upon its forecast of annual pre-tax income for domestic and foreign operations. Our actual effective income tax rate for fiscal 2021 could be materially different from the forecasted rate as of November 30, 2020. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) per Share | NOTE N – Earnings (Loss) per Share The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to controlling interest for the periods presented: Three Months Ended November 30, Six Months Ended November 30, (in thousands, except per share amounts) 2020 2019 2020 2019 Numerator (basic & diluted): Net earnings (loss) attributable to controlling interest - income (loss) available to common shareholders $ (74,044 ) $ 52,086 $ 542,631 $ 47,310 Denominator: Denominator for basic earnings (loss) per share attributable to controlling interest - weighted average common shares 52,988 55,059 53,532 55,150 Effect of dilutive securities - 1,013 907 1,055 Denominator for diluted earnings (loss) per share attributable to controlling interest - adjusted weighted average common shares $ 52,988 $ 56,072 54,439 56,205 Basic earnings (loss) per share attributable to controlling interest $ (1.40 ) $ 0.95 $ 10.14 $ 0.86 Diluted earnings (loss) per share attributable to controlling interest $ (1.40 ) $ 0.93 $ 9.97 $ 0.84 Stock options covering an aggregate of 405,433 common shares for the three months ended November 30, 2019, and 492,011 and 391,563 common shares for the six months ended November 30, 2020 and 2019, respectively, have been excluded from the computation of diluted earnings per share because the effect of their inclusion would have been anti-dilutive for those periods. All potentially dilutive shares (stock options and restricted common shares covering an aggregate of 1,030,835 common shares) have been excluded from the computation of diluted loss per share for the three months ended November 30, 2020, because the effect would have been anti-dilutive due to the overall net loss for the period. |
Segment Operations
Segment Operations | 6 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Operations | NOTE O – Segment Operations The following table presents summarized financial information for our reportable segments as of the dates, and for the periods presented: Three Months Ended November 30, Six Months Ended November 30, (in thousands) 2020 2019 2020 2019 Net sales Steel Processing $ 468,723 $ 516,937 $ 899,743 $ 1,040,312 Pressure Cylinders 262,284 290,136 533,188 594,532 Other 85 20,564 1,070 48,652 Total net sales $ 731,092 $ 827,637 $ 1,434,001 $ 1,683,496 Operating income (loss) Steel Processing $ 37,824 $ 17,172 $ 51,441 $ 23,340 Pressure Cylinders 3,305 15,647 11,947 45,270 Other (322 ) (1,919 ) (1,081 ) (47,051 ) Segment operating income 40,807 30,900 62,307 21,559 Unallocated corporate and other 1,127 1,218 (983 ) (4,029 ) Incremental expenses related to Nikola gains (4,570 ) - (54,081 ) - Total operating income $ 37,364 $ 32,118 $ 7,243 $ 17,530 Impairment of long-lived assets Pressure Cylinders $ 3,815 $ - 13,739 - Other - - - 40,601 Total impairment of long-lived assets $ 3,815 $ - $ 13,739 $ 40,601 Restructuring and other expense (income), net Steel Processing $ 375 $ - $ 1,846 $ (26 ) Pressure Cylinders 7,257 - 7,571 - Other (36 ) (50 ) 27 431 Total restructuring and other expense (income), net $ 7,596 $ (50 ) $ 9,444 $ 405 November 30, May 31, (in thousands) 2020 2020 Total assets Steel Processing $ 886,578 $ 821,657 Pressure Cylinders 1,016,404 1,104,603 Other (1) 1,124,403 405,255 Total assets $ 3,027,385 $ 2,331,515 (1) NOTE C – Investment in Nikola”. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Nov. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | NOTE P – 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 rate 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 (loss) 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 and treasury locks to further manage our exposure to interest rate variations related to our borrowings and to lower our overall borrowing costs. Foreign Currency Exchange Rate Risk Management Commodity Price Risk Management 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 Q – Fair Value" for additional information regarding the accounting treatment for our derivative instruments, as well as how fair value is determined. The following table summarizes the fair value of our derivative instruments and the respective lines in which they were recorded in the consolidated balance sheet at November 30, 2020: Asset Derivatives Liability Derivatives Balance Balance Sheet Fair Sheet Fair (in thousands) Location Value Location Value Derivatives designated as hedging instruments: Commodity contracts Receivables $ 13,991 Accounts payable $ - Other assets 156 Other liabilities - Totals $ 14,147 $ - Derivatives not designated as hedging instruments: Commodity contracts Receivables $ 9,708 Accounts payable $ 1,803 Other assets 201 Other liabilities 86 9,909 1,889 Foreign currency exchange contracts Receivables - Accounts payable 13 Long term foreign currency exchange contracts Other assets - Other liabilities 49 Totals - 62 Total derivative instruments $ 24,056 $ 1,951 The amounts in the table above reflect the fair value of the Company’s derivative instruments on a net basis. Had these amounts been recognized on a gross basis, the impact would have been a $2,427,000 increase in receivables with a corresponding increase in accounts payable. The following table summarizes the fair value of our derivative instruments and the respective lines in which they were recorded in the consolidated balance sheet at May 31, 2020: Asset Derivatives Liability Derivatives Balance Balance Sheet Fair Sheet Fair (in thousands) Location Value Location Value Derivatives designated as hedging instruments: Commodity contracts Receivables $ - Accounts payable $ 4,294 Other assets 79 Other liabilities 479 Totals $ 79 $ 4,773 Derivatives not designated as hedging instruments: Commodity contracts Receivables $ - Accounts payable $ 3,826 Other assets 96 Other liabilities 178 96 4,004 Foreign currency exchange contracts Receivables 6 Accounts payable - Totals $ 102 $ 4,004 Total derivative instruments $ 181 $ 8,777 The amounts in the table above reflect the fair value of the Company’s derivative instruments on a net basis. Had these amounts been recognized on a gross basis, the impact would have been a $1,780,000 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 commodity price fluctuations associated with certain forecasted transactions. These derivative instruments are designated and qualify as cash flow hedges. The earnings effects of these derivative instruments are presented in the same statement of earnings (loss) line items as the earnings effects of the hedged items. For derivatives designated as cash flow hedges, the Company assesses hedge effectiveness both at the onset of the hedge and at regular intervals throughout the life of the derivative instrument. The following table summarizes our cash flow hedges outstanding at November 30, 2020: Notional (in thousands) Amount Maturity Date Commodity contracts $ 73,689 December 2020 - March 2022 The following table summarizes the gain (loss) recognized in OCI and the loss reclassified from AOCI into net earnings (loss) for derivative instruments designated as cash flow hedges for the periods presented: Gain (Loss) Location of Loss Loss Reclassified (in thousands) Recognized in OCI Reclassified from AOCI into net Earnings from AOCI into net Earnings For the three months ended November 30, 2020: Commodity contracts $ 16,381 Cost of goods sold $ (2,690 ) Interest rate contracts - Interest expense (470 ) Totals $ 16,381 $ (3,160 ) For the three months ended November 30, 2019: Commodity contracts $ 10 Cost of goods sold $ (4,228 ) Interest rate contracts (326 ) Interest expense (7 ) Foreign currency contracts - Miscellaneous income, net (97 ) Totals $ (316 ) $ (4,332 ) For the six months ended November 30, 2020: Commodity contracts $ 16,765 Cost of goods sold $ (5,331 ) Interest rate contracts - Interest expense (697 ) Totals $ 16,765 $ (6,028 ) For the six months ended November 30, 2019: Commodity contracts $ (5,649 ) Cost of goods sold $ (6,520 ) Interest rate contracts (326 ) Interest expense (127 ) Foreign currency contracts - Miscellaneous income, net (19 ) Totals $ (5,975 ) $ (6,666 ) The estimated net amount of the losses recognized in AOCI at November 30, 2020 expected to be reclassified into net earnings (loss) within the succeeding twelve months is $12,557,000 (net of tax of $3,470,000). This amount was computed using the fair value of the cash flow hedges at November 30, 2020, and will change before actual reclassification from OCI to net earnings (loss) during the fiscal years ending May 31, 2021 Economic (Non-designated) Hedges We enter into foreign currency 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 (loss). The following table summarizes our economic (non-designated) derivative instruments outstanding at November 30, 2020: Notional (in thousands) Amount Maturity Date(s) Commodity contracts $ 51,909 December 2020 - April 2022 Foreign currency exchange contracts 9,068 December 2020 - July 2021 The following table summarizes the loss recognized in earnings (loss) for economic (non-designated) derivative financial instruments for the periods presented: Gain (Loss) Recognized In Earnings (Loss) for the Location of Gain (Loss) Three Months Ended November 30, (in thousands) Recognized in Earnings (Loss) 2020 2019 Commodity contracts Cost of goods sold $ 8,905 $ (1,673 ) Foreign currency exchange contracts Miscellaneous income, net 1 15 Total $ 8,906 $ (1,658 ) Gain (Loss) Recognized in Earnings for the Location of Gain (Loss) Six Months Ended November 30, (in thousands) Recognized in Earnings 2020 2019 Commodity contracts Cost of goods sold $ 12,198 $ (3,916 ) Foreign currency exchange contracts Miscellaneous income, net (73 ) (89 ) Total $ 12,125 $ (4,005 ) |
Fair Value
Fair Value | 6 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE Q – Fair Value 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. Fair value is an exit price concept that assumes an orderly transaction between willing market participants and is required to be based on assumptions that market participants would use in pricing an asset or a liability. 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 November 30, 2020, our assets and liabilities measured at fair value on a recurring basis were as follows: Significant Quoted Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Derivative instruments (1) $ - $ 24,056 $ - $ 24,056 Investment in Nikola (2) 143,850 - - 143,850 Total assets $ 143,850 $ 24,056 $ - $ 167,906 Liabilities Derivative instruments (1) $ - $ 1,951 $ - $ 1,951 Total liabilities $ - $ 1,951 $ - $ 1,951 At May 31, 2020, our assets and liabilities measured at fair value on a recurring basis were as follows: Significant Quoted Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Derivative instruments (1) $ - $ 181 $ - $ 181 Total assets $ - $ 181 $ - $ 181 Liabilities Derivative instruments (1) $ - $ 8,777 $ - $ 8,777 Total liabilities $ - $ 8,777 $ - $ 8,777 (1) NOTE P – Derivative Instruments and Hedging Activities (2) Non-Recurring Fair Value Measurements At November 30, 2020, our Significant Quoted Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Long-lived assets held and used (1) $ - $ 6,334 $ - $ 6,334 Total assets $ - $ 6,334 $ - $ 6,334 (1) Comprised of our oil & gas equipment assets in Tulsa, Oklahoma with an estimated fair value of $5,934,000, and our alternative fuel cylinders assets at the Jefferson, Ohio facility with an estimated fair market value of $400,000. Refer to “NOTE E – Impairment of Long-Lived Assets” for additional information. At May 31, 2020, our assets measured at fair value on a non-recurring basis were as follows: Significant Quoted 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) $ - $ - $ 13,623 $ 13,623 Long-lived assets held for sale (2) - 4,084 - 4,084 Long-lived assets held and used (3) - 6,477 2,800 9,277 Total assets $ - $ 10,561 $ 16,423 $ 26,984 (1) On November 1, 2019, in connection with the contribution of substantially all of the net assets of the Engineered Cabs business to the newly-formed Cabs joint venture, we obtained a 20% minority ownership interest. In accordance with the applicable accounting guidance, our minority ownership interest in the Cabs joint venture was recorded at its acquisition date fair value of $13,623,000 . (2) During the third quarter of fiscal 2020, we committed to a plan to sell the Canton, Michigan facility of our consolidated WSP joint venture and some of the production equipment at that facility. In accordance with the applicable accounting guidance this production equipment was written down to its estimated fair value of $700,000. During the third quarter of fiscal 2020, in connection with the closure of the oil & gas equipment manufacturing operations in Wooster, Ohio, fixed assets consisting of land and a building were written down to their estimated fair market value of $3,384,000. (3) During the fourth quarter of 2020, in connection with the annual indefinite lived assets impairment test, certain European tradenames were written down to their estimated fair market value of $2,800,000. In May 2020, the Company committed to a plan to shut down the packaging solutions business in Greensburg, Indiana. As a result, long-lived assets were written down to their estimated fair market value of $266,000. During the third quarter of fiscal 2020, in connection with the closure of the oil & gas equipment manufacturing operations in Wooster, Ohio, the fixed assets at Wooster, Ohio were written down to their then estimated fair market value of $6,211,000. The fair value of non-derivative financial instruments included in the carrying amounts of cash and cash equivalents, receivables, income taxes receivable, other assets, accounts payable, accrued compensation, contributions to employee benefit plans and related taxes, other accrued items, income taxes payable and other liabilities approximate carrying value due to their short-term nature. The fair value of long-term debt, including current maturities, based upon models utilizing market observable (Level 2 ) inputs and credit risk, was $ and $ at November 30, 2020 and May 31, 2020 , respectively. The carrying amount of long-term debt, incl uding current maturities, was $ and $ at November 30, 2020 and May 31, 2020 , respectively. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Nov. 30, 2020 | |
Accounting Policies [Abstract] | |
Recently Adopted Accounting Standards | Recently Adopted Accounting Standards On June 1, 2020, the Company adopted Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Additionally, there have been no significant changes to our accounting policies as disclosed in our 2020 Form 10-K as a result of the adoption of this new accounting guidance. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Disaggregation Of Revenue [Line Items] | |
Revenue by Product Class and Over Time | The following table summarizes net sales by product class for the periods presented: Three Months Ended Six Months Ended (in thousands) November 30, November 30, Reportable segments by product class: 2020 2019 2020 2019 Steel Processing Direct $ 433,556 $ 481,058 $ 838,364 $ 974,704 Toll 35,167 35,879 61,379 65,608 Total 468,723 516,937 899,743 1,040,312 Pressure Cylinders Consumer products 121,618 128,065 254,400 247,545 Industrial products 134,020 130,334 262,245 282,952 Oil & gas equipment 6,646 31,737 16,543 64,035 Total 262,284 290,136 533,188 594,532 Other Engineered Cabs 85 20,550 1,070 48,616 Other - 14 - 36 Total 85 20,564 1,070 48,652 Total $ 731,092 $ 827,637 $ 1,434,001 $ 1,683,496 |
Summary of Unbilled Receivable and Contract Assets | The following table summarizes the unbilled receivables and contract assets for the periods indicated: November 30, May 31, (in thousands) Balance Sheet Classification 2020 2020 Unbilled receivables Receivables $ 4,937 $ 5,552 Contract assets Prepaid and other current assets $ 5,636 $ 4,127 |
Over time revenue | |
Disaggregation Of Revenue [Line Items] | |
Revenue by Product Class and Over Time | The following table summarizes the over time revenue for the periods presented: Three Months Ended Six Months Ended November 30, November 30, (in thousands) 2020 2019 2020 2019 Steel Processing - toll $ 35,167 $ 35,879 $ 61,379 $ 65,608 Pressure Cylinders - certain oil & gas equipment contracts 4,367 27,531 12,066 57,539 Total over time revenue $ 39,534 $ 63,410 $ 73,445 $ 123,147 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Equity Method Investments And Joint Ventures [Abstract] | |
Summary of Consideration Received, Consideration Transferred and Resulting Net Gain on Deconsolidation | Upon closing of the transaction, the contributed net assets were deconsolidated, resulting in a net gain of $258,000 during fiscal 2020, as summarized below: (in thousands) Retained investment (at fair value) $ 13,831 Contributed net assets (at carrying value) 13,394 Gain on deconsolidation 437 Less: deal costs (179 ) Net gain on deconsolidation $ 258 |
Financial Information | The following tables summarize combined financial information for our unconsolidated affiliates as of the dates, and for the periods presented: November 30, May 31, (in thousands) 2020 2020 Cash $ 49,957 $ 68,730 Other current assets 564,359 528,631 Noncurrent assets 391,547 399,731 Total assets $ 1,005,863 $ 997,092 Current liabilities $ 205,530 $ 174,709 Short-term borrowings - 500 Current maturities of long-term debt 10,700 37,542 Long-term debt 314,730 346,690 Other noncurrent liabilities 87,087 73,656 Equity 387,816 363,995 Total liabilities and equity $ 1,005,863 $ 997,092 Three Months Ended Six Months Ended November 30, November 30, (in thousands) 2020 2019 2020 2019 Net sales $ 451,198 $ 453,288 $ 856,518 $ 923,493 Gross margin 96,561 95,995 189,610 193,531 Operating income 64,890 62,414 122,843 128,637 Depreciation and amortization 8,672 7,538 16,402 14,627 Interest expense 2,832 3,139 5,777 6,506 Income tax expense 2,322 1,272 4,052 1,853 Net earnings from continuing operations 60,943 53,483 117,516 114,624 Net earnings from discontinued operations - 46,958 - 49,770 Net earnings 60,943 100,441 117,516 164,394 |
Restructuring and Other Expen_2
Restructuring and Other Expense, Net (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Progression of Liabilities Associated with Restructuring Activities, Combined with Reconciliation to Restructuring and Other Expense (Income), Net | A progression of the liabilities associated with our restructuring activities, combined with a reconciliation to the restructuring and other expense, net financial statement caption, in our consolidated statement of earnings is summarized below for the six-month period ended November 30, 2020: Balance, as of Balance, as of (in thousands) May 31, 2020 Expense Payments Adjustments November 30, 2020 Early retirement and severance $ 6,536 $ 1,227 $ (5,637 ) $ (99 ) $ 2,027 Facility exit and other costs 156 1,145 (1,222 ) 74 153 $ 6,692 $ 2,372 $ (6,859 ) $ (25 ) $ 2,180 Net loss on sale of assets 7,072 Restructuring and other expense, net $ 9,444 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Summary of Tax Effects on Each Component of OCI | The following table summarizes the tax effects on each component of OCI for the periods presented: Three months ended November 30, 2020 2019 Before-Tax Tax Net-of-Tax Before-Tax Tax Net-of-Tax (in thousands) Foreign currency translation $ (1,027 ) (24 ) $ (1,051 ) $ 6,662 $ - $ 6,662 Pension liability adjustment (4 ) - (4 ) 117 (22 ) 95 Cash flow hedges 19,540 (4,322 ) 15,218 4,016 (803 ) 3,213 Other comprehensive income $ 18,509 $ (4,346 ) $ 14,163 $ 10,795 $ (825 ) $ 9,970 Six months ended November 30, 2020 2019 Before-Tax Tax Net-of-Tax Before-Tax Tax Net-of-Tax (in thousands) Foreign currency translation $ 6,581 676 $ 7,257 $ 11,444 $ - $ 11,444 Pension liability adjustment 484 (116 ) 368 1,421 (313 ) 1,108 Cash flow hedges 22,793 (5,012 ) 17,781 691 (117 ) 574 Other comprehensive income $ 29,858 $ (4,452 ) $ 25,406 $ 13,556 $ (430 ) $ 13,126 |
Changes in Equity (Tables)
Changes in Equity (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Equity [Abstract] | |
Summary of Changes in Equity by Component and in Total | The following tables summarize the changes in equity by component and in total for the periods presented: Controlling Interest Accumulated Other Additional Comprehensive Non- Paid-in Loss, Retained controlling (in thousands) Capital Net of Tax Earnings Total Interests Total Balance at May 31, 2020 $ 283,776 $ (35,217 ) $ 572,262 $ 820,821 $ 145,612 $ 966,433 Net earnings - - 616,675 616,675 2,063 618,738 Other comprehensive income - 11,242 - 11,242 - 11,242 Common shares issued, net of withholding tax (1,150 ) - - (1,150 ) - (1,150 ) Common shares in NQ plans 90 - - 90 - 90 Stock-based compensation 3,022 - - 3,022 - 3,022 Purchases and retirement of common shares (7,536 ) - (46,784 ) (54,320 ) - (54,320 ) Cash dividends declared - - (13,595 ) (13,595 ) - (13,595 ) Dividends to noncontrolling interest - - - - (560 ) (560 ) Balance at August 31, 2020 $ 278,202 $ (23,975 ) $ 1,128,558 $ 1,382,785 $ 147,115 $ 1,529,900 Net earnings (loss) - - (74,044 ) (74,044 ) 5,532 (68,512 ) Other comprehensive income - 14,163 - 14,163 - 14,163 Common shares issued, net of withholding tax 2,294 - - 2,294 - 2,294 Common shares in NQ plans 292 - - 292 - 292 Stock-based compensation 3,499 - - 3,499 - 3,499 Purchases and retirement of common shares (4,486 ) - (34,077 ) (38,563 ) - (38,563 ) Contribution to Samuel joint venture - - - - 925 925 Cash dividends declared - - (13,527 ) (13,527 ) - (13,527 ) Balance at November 30, 2020 $ 279,801 $ (9,812 ) $ 1,006,910 $ 1,276,899 $ 153,572 $ 1,430,471 Controlling Interest Accumulated Other Additional Comprehensive Non- Paid-in Loss, Retained controlling (in thousands) Capital Net of Tax Earnings Total Interests Total Balance at May 31, 2019 $ 283,177 $ (43,464 ) $ 591,533 $ 831,246 $ 117,148 $ 948,394 Net earnings (loss) - - (4,776 ) (4,776 ) 2,321 (2,455 ) Other comprehensive income - 3,156 - 3,156 - 3,156 Common shares issued, net of withholding tax (3,213 ) - - (3,213 ) - (3,213 ) Common shares in NQ plans 74 - - 74 - 74 Stock-based compensation 4,545 - - 4,545 - 4,545 Purchases and retirement of common shares (3,814 ) - (25,785 ) (29,599 ) - (29,599 ) Cash dividends declared - - (13,460 ) (13,460 ) - (13,460 ) Balance at August 31, 2019 $ 280,769 $ (40,308 ) $ 547,512 $ 787,973 $ 119,469 $ 907,442 Net earnings - - 52,086 52,086 4,836 56,922 Other comprehensive loss - 9,970 - 9,970 - 9,970 Common shares issued, net of withholding tax (3,811 ) - - (3,811 ) - (3,811 ) Common shares in NQ plans 239 - - 239 - 239 Stock-based compensation 2,880 - - 2,880 - 2,880 Purchases and retirement of common shares - - - - - - Cash dividends declared - - (13,446 ) (13,446 ) - (13,446 ) Dividends to noncontrolling interest - - - - (1,453 ) (1,453 ) Balance at November 30, 2019 $ 280,077 $ (30,338 ) $ 586,152 $ 835,891 $ 122,852 $ 958,743 |
Summary of Changes in Accumulated Other Comprehensive Loss | The following tables summarize the changes in accumulated other comprehensive loss for the periods presented: Accumulated Foreign Pension Other Currency Liability Cash Flow Comprehensive (in thousands) Translation Adjustment Hedges Loss Balance as of May 31, 2020 $ (9,142 ) $ (21,886 ) $ (4,189 ) $ (35,217 ) Other comprehensive income before reclassifications 6,581 484 16,765 23,830 Reclassification adjustments to income (a) - - 6,028 6,028 Income tax effect 676 (116 ) (5,013 ) (4,453 ) Balance as of November 30, 2020 $ (1,885 ) $ (21,518 ) $ 13,591 $ (9,812 ) Accumulated Foreign Pension Other Currency Liability Cash Flow Comprehensive (in thousands) Translation Adjustment Hedges Loss Balance as of May 31, 2019 $ (19,639 ) $ (17,856 ) $ (5,969 ) $ (43,464 ) Other comprehensive income (loss) before reclassifications 2,948 79 (5,975 ) (2,948 ) Reclassification adjustments to income (a) 8,496 1,342 6,666 16,504 Income tax effect - (313 ) (117 ) (430 ) Balance as of November 30, 2019 $ (8,195 ) $ (16,748 ) $ (5,395 ) $ (30,338 ) (a) The statement of earnings (loss) classification of amounts reclassified to income include: (1) Foreign currency translation – result of $7,454,000 related to the sale of the cryogenics business in Turkey; and $1,042,000 related to the impairment of Nisshin, the Company’s former joint venture in China. (2) Pension liability adjustment – result of the settlement of certain participant balances within the pension plan maintained by WAVE. (3) Cash flow hedges – disclosed in “NOTE P – Derivative Instruments and Hedging Activities”. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Assumptions Used to Determine Grant Date Fair Value of Restricted Common Shares | The following assumptions were used to determine the grant-date fair value and the derived service period for these restricted common shares: Dividend yield 2.71 % Expected volatility 41.50 % Risk-free interest rate 0.32 % |
Non-Qualified Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Schedule of Assumptions Used to Determine Fair Value of Stock Options | The following assumptions were used to value these stock options: Dividend yield 2.94 % Expected volatility 40.82 % Risk-free interest rate 0.42 % Expected term (years) 6.0 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings (Loss) Per Share Attributable to Controlling Interest | The following table sets forth the computation of basic and diluted earnings (loss) per share attributable to controlling interest for the periods presented: Three Months Ended November 30, Six Months Ended November 30, (in thousands, except per share amounts) 2020 2019 2020 2019 Numerator (basic & diluted): Net earnings (loss) attributable to controlling interest - income (loss) available to common shareholders $ (74,044 ) $ 52,086 $ 542,631 $ 47,310 Denominator: Denominator for basic earnings (loss) per share attributable to controlling interest - weighted average common shares 52,988 55,059 53,532 55,150 Effect of dilutive securities - 1,013 907 1,055 Denominator for diluted earnings (loss) per share attributable to controlling interest - adjusted weighted average common shares $ 52,988 $ 56,072 54,439 56,205 Basic earnings (loss) per share attributable to controlling interest $ (1.40 ) $ 0.95 $ 10.14 $ 0.86 Diluted earnings (loss) per share attributable to controlling interest $ (1.40 ) $ 0.93 $ 9.97 $ 0.84 |
Segment Operations (Tables)
Segment Operations (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Segment Reporting [Abstract] | |
Financial Information for Reportable Segments | The following table presents summarized financial information for our reportable segments as of the dates, and for the periods presented: Three Months Ended November 30, Six Months Ended November 30, (in thousands) 2020 2019 2020 2019 Net sales Steel Processing $ 468,723 $ 516,937 $ 899,743 $ 1,040,312 Pressure Cylinders 262,284 290,136 533,188 594,532 Other 85 20,564 1,070 48,652 Total net sales $ 731,092 $ 827,637 $ 1,434,001 $ 1,683,496 Operating income (loss) Steel Processing $ 37,824 $ 17,172 $ 51,441 $ 23,340 Pressure Cylinders 3,305 15,647 11,947 45,270 Other (322 ) (1,919 ) (1,081 ) (47,051 ) Segment operating income 40,807 30,900 62,307 21,559 Unallocated corporate and other 1,127 1,218 (983 ) (4,029 ) Incremental expenses related to Nikola gains (4,570 ) - (54,081 ) - Total operating income $ 37,364 $ 32,118 $ 7,243 $ 17,530 Impairment of long-lived assets Pressure Cylinders $ 3,815 $ - 13,739 - Other - - - 40,601 Total impairment of long-lived assets $ 3,815 $ - $ 13,739 $ 40,601 Restructuring and other expense (income), net Steel Processing $ 375 $ - $ 1,846 $ (26 ) Pressure Cylinders 7,257 - 7,571 - Other (36 ) (50 ) 27 431 Total restructuring and other expense (income), net $ 7,596 $ (50 ) $ 9,444 $ 405 November 30, May 31, (in thousands) 2020 2020 Total assets Steel Processing $ 886,578 $ 821,657 Pressure Cylinders 1,016,404 1,104,603 Other (1) 1,124,403 405,255 Total assets $ 3,027,385 $ 2,331,515 (1) NOTE C – Investment in Nikola”. |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Schedule of Fair Value of Derivative Instruments | The following table summarizes the fair value of our derivative instruments and the respective lines in which they were recorded in the consolidated balance sheet at November 30, 2020: Asset Derivatives Liability Derivatives Balance Balance Sheet Fair Sheet Fair (in thousands) Location Value Location Value Derivatives designated as hedging instruments: Commodity contracts Receivables $ 13,991 Accounts payable $ - Other assets 156 Other liabilities - Totals $ 14,147 $ - Derivatives not designated as hedging instruments: Commodity contracts Receivables $ 9,708 Accounts payable $ 1,803 Other assets 201 Other liabilities 86 9,909 1,889 Foreign currency exchange contracts Receivables - Accounts payable 13 Long term foreign currency exchange contracts Other assets - Other liabilities 49 Totals - 62 Total derivative instruments $ 24,056 $ 1,951 The following table summarizes the fair value of our derivative instruments and the respective lines in which they were recorded in the consolidated balance sheet at May 31, 2020: Asset Derivatives Liability Derivatives Balance Balance Sheet Fair Sheet Fair (in thousands) Location Value Location Value Derivatives designated as hedging instruments: Commodity contracts Receivables $ - Accounts payable $ 4,294 Other assets 79 Other liabilities 479 Totals $ 79 $ 4,773 Derivatives not designated as hedging instruments: Commodity contracts Receivables $ - Accounts payable $ 3,826 Other assets 96 Other liabilities 178 96 4,004 Foreign currency exchange contracts Receivables 6 Accounts payable - Totals $ 102 $ 4,004 Total derivative instruments $ 181 $ 8,777 |
Schedule of Summary of Derivative Hedges | The following table summarizes our economic (non-designated) derivative instruments outstanding at November 30, 2020: Notional (in thousands) Amount Maturity Date(s) Commodity contracts $ 51,909 December 2020 - April 2022 Foreign currency exchange contracts 9,068 December 2020 - July 2021 |
Schedule of Derivatives Designated as Cash Flow Hedging Instruments | The following table summarizes the gain (loss) recognized in OCI and the loss reclassified from AOCI into net earnings (loss) for derivative instruments designated as cash flow hedges for the periods presented: Gain (Loss) Location of Loss Loss Reclassified (in thousands) Recognized in OCI Reclassified from AOCI into net Earnings from AOCI into net Earnings For the three months ended November 30, 2020: Commodity contracts $ 16,381 Cost of goods sold $ (2,690 ) Interest rate contracts - Interest expense (470 ) Totals $ 16,381 $ (3,160 ) For the three months ended November 30, 2019: Commodity contracts $ 10 Cost of goods sold $ (4,228 ) Interest rate contracts (326 ) Interest expense (7 ) Foreign currency contracts - Miscellaneous income, net (97 ) Totals $ (316 ) $ (4,332 ) For the six months ended November 30, 2020: Commodity contracts $ 16,765 Cost of goods sold $ (5,331 ) Interest rate contracts - Interest expense (697 ) Totals $ 16,765 $ (6,028 ) For the six months ended November 30, 2019: Commodity contracts $ (5,649 ) Cost of goods sold $ (6,520 ) Interest rate contracts (326 ) Interest expense (127 ) Foreign currency contracts - Miscellaneous income, net (19 ) Totals $ (5,975 ) $ (6,666 ) |
Schedule of Gain (Loss) Recognized in Earnings for Economic (Non-Designated) Derivative Financial Instruments | The following table summarizes the loss recognized in earnings (loss) for economic (non-designated) derivative financial instruments for the periods presented: Gain (Loss) Recognized In Earnings (Loss) for the Location of Gain (Loss) Three Months Ended November 30, (in thousands) Recognized in Earnings (Loss) 2020 2019 Commodity contracts Cost of goods sold $ 8,905 $ (1,673 ) Foreign currency exchange contracts Miscellaneous income, net 1 15 Total $ 8,906 $ (1,658 ) Gain (Loss) Recognized in Earnings for the Location of Gain (Loss) Six Months Ended November 30, (in thousands) Recognized in Earnings 2020 2019 Commodity contracts Cost of goods sold $ 12,198 $ (3,916 ) Foreign currency exchange contracts Miscellaneous income, net (73 ) (89 ) Total $ 12,125 $ (4,005 ) |
Cash Flow Hedges | |
Schedule of Summary of Derivative Hedges | The following table summarizes our cash flow hedges outstanding at November 30, 2020: Notional (in thousands) Amount Maturity Date Commodity contracts $ 73,689 December 2020 - March 2022 |
Fair Value (Tables)
Fair Value (Tables) | 6 Months Ended |
Nov. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | At November 30, 2020, our assets and liabilities measured at fair value on a recurring basis were as follows: Significant Quoted Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Derivative instruments (1) $ - $ 24,056 $ - $ 24,056 Investment in Nikola (2) 143,850 - - 143,850 Total assets $ 143,850 $ 24,056 $ - $ 167,906 Liabilities Derivative instruments (1) $ - $ 1,951 $ - $ 1,951 Total liabilities $ - $ 1,951 $ - $ 1,951 At May 31, 2020, our assets and liabilities measured at fair value on a recurring basis were as follows: Significant Quoted Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Derivative instruments (1) $ - $ 181 $ - $ 181 Total assets $ - $ 181 $ - $ 181 Liabilities Derivative instruments (1) $ - $ 8,777 $ - $ 8,777 Total liabilities $ - $ 8,777 $ - $ 8,777 (1) NOTE P – Derivative Instruments and Hedging Activities (2) |
Assets Measured at Fair Value on Non-Recurring Basis | At November 30, 2020, our Significant Quoted Prices Other Significant in Active Observable Unobservable Markets Inputs Inputs (in thousands) (Level 1) (Level 2) (Level 3) Totals Assets Long-lived assets held and used (1) $ - $ 6,334 $ - $ 6,334 Total assets $ - $ 6,334 $ - $ 6,334 (1) Comprised of our oil & gas equipment assets in Tulsa, Oklahoma with an estimated fair value of $5,934,000, and our alternative fuel cylinders assets at the Jefferson, Ohio facility with an estimated fair market value of $400,000. Refer to “NOTE E – Impairment of Long-Lived Assets” for additional information. At May 31, 2020, our assets measured at fair value on a non-recurring basis were as follows: Significant Quoted 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) $ - $ - $ 13,623 $ 13,623 Long-lived assets held for sale (2) - 4,084 - 4,084 Long-lived assets held and used (3) - 6,477 2,800 9,277 Total assets $ - $ 10,561 $ 16,423 $ 26,984 (1) On November 1, 2019, in connection with the contribution of substantially all of the net assets of the Engineered Cabs business to the newly-formed Cabs joint venture, we obtained a 20% minority ownership interest. In accordance with the applicable accounting guidance, our minority ownership interest in the Cabs joint venture was recorded at its acquisition date fair value of $13,623,000 . (2) During the third quarter of fiscal 2020, we committed to a plan to sell the Canton, Michigan facility of our consolidated WSP joint venture and some of the production equipment at that facility. In accordance with the applicable accounting guidance this production equipment was written down to its estimated fair value of $700,000. During the third quarter of fiscal 2020, in connection with the closure of the oil & gas equipment manufacturing operations in Wooster, Ohio, fixed assets consisting of land and a building were written down to their estimated fair market value of $3,384,000. (3) During the fourth quarter of 2020, in connection with the annual indefinite lived assets impairment test, certain European tradenames were written down to their estimated fair market value of $2,800,000. In May 2020, the Company committed to a plan to shut down the packaging solutions business in Greensburg, Indiana. As a result, long-lived assets were written down to their estimated fair market value of $266,000. During the third quarter of fiscal 2020, in connection with the closure of the oil & gas equipment manufacturing operations in Wooster, Ohio, the fixed assets at Wooster, Ohio were written down to their then estimated fair market value of $6,211,000. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - JointVenture | Nov. 30, 2020 | Nov. 01, 2019 |
Cabs Joint Venture | ||
Significant Accounting Policies [Line Items] | ||
Percent of ownership interest held in unconsolidated affiliates | 20.00% | 20.00% |
Joint Venture Transactions | ||
Significant Accounting Policies [Line Items] | ||
Number Of Joint Ventures | 4 | |
Spartan | Joint Venture Transactions | ||
Significant Accounting Policies [Line Items] | ||
Percent of controlling interest by the Company | 52.00% | |
TWB | Joint Venture Transactions | ||
Significant Accounting Policies [Line Items] | ||
Percent of controlling interest by the Company | 55.00% | |
Samuel | Joint Venture Transactions | ||
Significant Accounting Policies [Line Items] | ||
Percent of controlling interest by the Company | 63.00% | |
Worthington Specialty Processing | Joint Venture Transactions | ||
Significant Accounting Policies [Line Items] | ||
Percent of controlling interest by the Company | 51.00% |
Revenue Recognition - Revenue b
Revenue Recognition - Revenue by Product Class and Timing (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 731,092 | $ 827,637 | $ 1,434,001 | $ 1,683,496 |
Over time revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 39,534 | 63,410 | 73,445 | 123,147 |
Steel Processing | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 468,723 | 516,937 | 899,743 | 1,040,312 |
Pressure Cylinders | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 262,284 | 290,136 | 533,188 | 594,532 |
Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 85 | 20,564 | 1,070 | 48,652 |
Direct | Steel Processing | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 433,556 | 481,058 | 838,364 | 974,704 |
Toll | Steel Processing | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 35,167 | 35,879 | 61,379 | 65,608 |
Toll | Steel Processing | Over time revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 35,167 | 35,879 | 61,379 | 65,608 |
Industrial products | Pressure Cylinders | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 134,020 | 130,334 | 262,245 | 282,952 |
Consumer products | Pressure Cylinders | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 121,618 | 128,065 | 254,400 | 247,545 |
Oil & gas equipment | Pressure Cylinders | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 6,646 | 31,737 | 16,543 | 64,035 |
Engineered Cabs | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 85 | 20,550 | 1,070 | 48,616 |
Other | Other | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 14 | 36 | ||
Certain oil & gas equipment contracts | Pressure Cylinders | Over time revenue | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 4,367 | $ 27,531 | $ 12,066 | $ 57,539 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Unbilled Receivables and Contract Assets (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Receivables | ||
Unbilled Receivables And Contract Assets [Line Items] | ||
Unbilled receivables | $ 4,937 | $ 5,552 |
Prepaid Expenses and Other Current Assets | ||
Unbilled Receivables And Contract Assets [Line Items] | ||
Contract assets | $ 5,636 | $ 4,127 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Thousands | Nov. 30, 2020USD ($) |
Revenue From Contract With Customer [Abstract] | |
Amount of performance obligation related to contracts with expected duration greater than one year | $ 0 |
Investment in Nikola - Addition
Investment in Nikola - Additional Information (Detail) - Nikola Corporation - USD ($) | Jun. 03, 2020 | Nov. 30, 2020 | Aug. 31, 2020 |
Marketable Securities [Line Items] | |||
Marketable securities effective date | Jun. 3, 2020 | ||
Marketable securities number of shares owned | 19,048,020 | ||
Marketable securities pre-tax earnings | $ 796,141,000 | ||
Marketable securities realized pre-tax gain | $ 652,362,000 | $ 508,511,000 | |
Number of shares sold | 11,500,000 | ||
Number of shares contributed | 500,000 | ||
Marketable securities unrealized market to market gain | $ 287,630,000 | ||
Marketable securities market price dropped per share | $ 20.41 | ||
Marketable securities unrealized market to market loss | $ 143,780,000 | ||
Number of shares of common stock marketable securities | 7,048,020 | 7,048,020 | |
Market price | $ 20.41 | $ 40.81 | |
Incremental expenses on gains from marketable securities | $ 4,570,000 | $ 49,511,000 | |
Profit sharing and bonus expense on marketable securities gain | 28,858,000 | ||
Marketable securities contribution expense | $ 20,653,000 | ||
Number of shares contributed of marketable securities | 500,000 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates - Additional Information (Detail) - USD ($) | Nov. 01, 2019 | Sep. 30, 2020 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2020 | May 31, 2020 | Dec. 31, 2019 | Dec. 19, 2019 |
Investments in and Advances to Affiliates [Line Items] | ||||||||
Impairment charge | $ 9,924,000 | |||||||
Distributions from unconsolidated affiliates | $ 47,116,000 | |||||||
Distributions in excess of investment in unconsolidated affiliate | $ 107,951,000 | $ 103,837,000 | ||||||
Proceeds from Sale of Equity Method Investments | $ 2,950,000 | |||||||
Samuel Joint Venture | Joint Venture Transactions | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percent of ownership interest held in unconsolidated affiliates | 63.00% | |||||||
Additional ownership interest acquired in joint venture | 31.75% | |||||||
ArtiFlex | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percent of ownership interest held in unconsolidated affiliates | 50.00% | |||||||
ClarkDietrich | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percent of ownership interest held in unconsolidated affiliates | 25.00% | |||||||
Cabs Joint Venture | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percent of ownership interest held in unconsolidated affiliates | 20.00% | 20.00% | ||||||
Impairment charge | $ 35,194,000 | |||||||
Net gain on deconsolidation | $ 258,000 | |||||||
Serviacero Worthington | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percent of ownership interest held in unconsolidated affiliates | 50.00% | |||||||
WAVE | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percent of ownership interest held in unconsolidated affiliates | 50.00% | |||||||
Distributions in excess of investment in unconsolidated affiliate | $ 107,951,000 | |||||||
Nisshin | ||||||||
Investments in and Advances to Affiliates [Line Items] | ||||||||
Percent of ownership interest held in unconsolidated affiliates | 10.00% | |||||||
Impairment charge | $ 4,236,000 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates - Summary of Consideration Received, Consideration Transferred and Resulting Net Gain on Deconsolidation (Detail) - Cabs Joint Venture $ in Thousands | Nov. 01, 2019USD ($) |
Schedule Of Equity Method Investments [Line Items] | |
Retained investment (at fair value) | $ 13,831 |
Contributed net assets (at carrying value) | 13,394 |
Gain on deconsolidation | 437 |
Less: deal costs | (179) |
Net gain on deconsolidation | $ 258 |
Investments in Unconsolidated_5
Investments in Unconsolidated Affiliates - Schedule of Combined Financial Information for Unconsolidated Affiliates (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | |
Investments in and Advances to Affiliates [Line Items] | |||||
Cash | $ 49,957 | $ 49,957 | $ 68,730 | ||
Other current assets | 564,359 | 564,359 | 528,631 | ||
Total assets | 3,027,385 | 3,027,385 | 2,331,515 | ||
Current liabilities | 557,174 | 557,174 | 388,238 | ||
Short-term borrowings | 500 | ||||
Current maturities of long-term debt | 10,700 | 10,700 | 37,542 | ||
Long-term debt | 314,730 | 314,730 | 346,690 | ||
Other noncurrent liabilities | 87,087 | 87,087 | 73,656 | ||
Shareholders' equity - controlling interest | 1,276,899 | 1,276,899 | 820,821 | ||
Total liabilities and equity | 3,027,385 | 3,027,385 | 2,331,515 | ||
Net sales | 731,092 | $ 827,637 | 1,434,001 | $ 1,683,496 | |
Gross margin | 135,474 | 120,611 | 248,832 | 237,902 | |
Operating income | 64,890 | 62,414 | 122,843 | 128,637 | |
Depreciation and amortization | 8,672 | 7,538 | 16,402 | 14,627 | |
Interest expense | 2,832 | 3,139 | 5,777 | 6,506 | |
Income tax expense | 2,322 | 1,272 | 4,052 | 1,853 | |
Net earnings from discontinued operations | 46,958 | 49,770 | |||
Net earnings (loss) | (68,512) | 56,922 | 550,226 | 54,467 | |
Equity Method Investment, Nonconsolidated Investee, Other [Member] | |||||
Investments in and Advances to Affiliates [Line Items] | |||||
Noncurrent assets | 391,547 | 391,547 | 399,731 | ||
Total assets | 1,005,863 | 1,005,863 | 997,092 | ||
Current liabilities | 205,530 | 205,530 | 174,709 | ||
Shareholders' equity - controlling interest | 387,816 | 387,816 | 363,995 | ||
Total liabilities and equity | 1,005,863 | 1,005,863 | $ 997,092 | ||
Net sales | 451,198 | 453,288 | 856,518 | 923,493 | |
Gross margin | 96,561 | 95,995 | 189,610 | 193,531 | |
Net earnings from continuing operations | 60,943 | 53,483 | 117,516 | 114,624 | |
Net earnings (loss) | $ 60,943 | $ 100,441 | $ 117,516 | $ 164,394 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||||
Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | ||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Fair market value of assets | $ 2,800,000 | |||||||||
Impairment of long-lived assets | $ 3,815,000 | $ 0 | $ 13,739,000 | $ 40,601,000 | ||||||
Impairment charge | $ 9,924,000 | |||||||||
Operating lease assets | 30,007,000 | 30,007,000 | 31,557,000 | |||||||
Fair Value, Measurements, Nonrecurring | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Fair market value of assets | 6,334,000 | 6,334,000 | 26,984,000 | |||||||
Cryogenics | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Impairment of long-lived assets | 3,662,000 | |||||||||
Impairment charge | 4,333,000 | |||||||||
Jefferson | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Impairment charge | 1,423,000 | |||||||||
Superior Tools | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Impairment charge | 506,000 | |||||||||
Engineered Cabs | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Impairment of ROU assets | $ 905,000 | |||||||||
Fixed asset net book value | 1,469,000 | |||||||||
Operating lease assets | 3,938,000 | |||||||||
Engineered Cabs | Fair Value, Measurements, Nonrecurring | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Impairment of long-lived assets | 35,194,000 | |||||||||
Long Lived Assets Held And Used | Fair Value, Measurements, Nonrecurring | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Fair market value of assets | 6,334,000 | [1] | 6,334,000 | [1] | $ 9,277,000 | [2] | ||||
Long Lived Assets Held And Used | Oil And Gas Equipment Operations | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Impairment of long-lived assets | 1,441,000 | |||||||||
Long Lived Assets Held And Used | Oil And Gas Equipment Operations | Fair Value, Measurements, Nonrecurring | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Fair market value of assets | 7,375,000 | 7,375,000 | ||||||||
Fair market value of fixed assets | 5,934,000 | 5,934,000 | ||||||||
Long Lived Assets Held And Used | Cryogenics | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Carrying value long-lived assets | 13,526,000 | |||||||||
Long Lived Assets Held And Used | Cryogenics | Fair Value, Measurements, Nonrecurring | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Fair market value of assets | 9,193,000 | |||||||||
Long Lived Assets Held And Used | Jefferson | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Carrying value long-lived assets | 1,823,000 | |||||||||
Long Lived Assets Held And Used | Jefferson | Fair Value, Measurements, Nonrecurring | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Fair market value of assets | $ 400,000 | |||||||||
Long Lived Assets Held And Used | Engineered Cabs | Fair Value, Measurements, Nonrecurring | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Fair market value of assets | $ 12,860,000 | |||||||||
Finite Lived Intangible Assets | Oil And Gas Equipment Operations | Fair Value, Measurements, Nonrecurring | ||||||||||
Impaired Long Lived Assets Held And Used [Line Items] | ||||||||||
Fair market value of assets | $ 2,374,000 | $ 2,374,000 | ||||||||
[1] | Comprised of our oil & gas equipment assets in Tulsa, Oklahoma with an estimated fair value of $5,934,000, and our alternative fuel cylinders assets at the Jefferson, Ohio facility with an estimated fair market value of $400,000. Refer to “NOTE E – Impairment of Long-Lived Assets” for additional information. | |||||||||
[2] | During the fourth quarter of 2020, in connection with the annual indefinite lived assets impairment test, certain European tradenames were written down to their estimated fair market value of $2,800,000. |
Restructuring and Other Expen_3
Restructuring and Other Expense, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Nov. 30, 2020 | Nov. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Net (gain) loss on sale of assets | $ 7,072 | |
Cryogenics | ||
Restructuring Cost and Reserve [Line Items] | ||
Net proceeds from sale of business | $ 21,223 | |
Net (gain) loss on sale of assets | $ 7,072 |
Restructuring and Other Expen_4
Restructuring and Other Expense, Net - Schedule of Progression of Liabilities Associated with Restructuring Activities, Combined with Reconciliation to Restructuring and Other Expense (Income), Net (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | $ 6,692 | |||
Expense (income) | 2,372 | |||
Payments | (6,859) | |||
Adjustments | (25) | |||
Ending Balance | $ 2,180 | 2,180 | ||
Net (gain) loss on sale of assets | 7,072 | |||
Restructuring and other expense (income), net | 7,596 | $ (50) | 9,444 | $ 405 |
Early Retirement And Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 6,536 | |||
Expense (income) | 1,227 | |||
Payments | (5,637) | |||
Adjustments | (99) | |||
Ending Balance | 2,027 | 2,027 | ||
Facility Exit And Other Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Beginning Balance | 156 | |||
Expense (income) | 1,145 | |||
Payments | (1,222) | |||
Adjustments | 74 | |||
Ending Balance | $ 153 | $ 153 |
Contingent Liabilities and Co_2
Contingent Liabilities and Commitments - Additional Informattion (Detail) $ in Thousands | Nov. 30, 2020USD ($) |
Tank Replacement Costs | |
Loss Contingencies [Line Items] | |
Reserve for replacement program | $ 4,948,000 |
Guarantees - Additional Informa
Guarantees - Additional Information (Detail) - Stand-by Letters of Credit | 6 Months Ended |
Nov. 30, 2020USD ($) | |
Guarantee Obligations [Line Items] | |
Letter of credit amount outstanding | $ 15,050,000 |
Drawn amount of letter of credit outstanding | $ 0 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | Feb. 16, 2018 | Nov. 30, 2020 |
Maximum | ||
Debt And Receivables Securitization [Line Items] | ||
Debt maturity period | 1 year | |
Unsecured Revolving Credit Facility | ||
Debt And Receivables Securitization [Line Items] | ||
Maximum borrowing capacity | $ 500,000,000 | |
Maturity date | 2023-02 | |
Borrowings outstanding | $ 0 |
Other Comprehensive Income - Su
Other Comprehensive Income - Summary of Tax Effects on Each Component of OCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Components Of Other Comprehensive Income Loss [Abstract] | ||||||
Foreign currency translation, before tax | $ (1,027) | $ 6,662 | $ 6,581 | $ 11,444 | ||
Foreign currency translation, tax | (24) | 676 | ||||
Foreign currency translation, net of tax | (1,051) | 6,662 | 7,257 | 11,444 | ||
Pension liability adjustment, before tax | (4) | 117 | 484 | 1,421 | ||
Pension liability adjustment, tax | (22) | (116) | (313) | |||
Pension liability adjustment, net of tax | (4) | 95 | 368 | 1,108 | ||
Cash flow hedges, before tax | 19,540 | 4,016 | 22,793 | 691 | ||
Cash flow hedges, tax | (4,322) | (803) | (5,012) | (117) | ||
Cash flow hedges, net of tax | 15,218 | 3,213 | 17,781 | 574 | ||
Other comprehensive income, before tax | 18,509 | 10,795 | 29,858 | 13,556 | ||
Other comprehensive income, tax | (4,346) | (825) | (4,452) | (430) | ||
Other comprehensive income | $ 14,163 | $ 11,242 | $ 9,970 | $ 3,156 | $ 25,406 | $ 13,126 |
Changes in Equity - Summary of
Changes in Equity - Summary of Changes in Equity by Component and in Total (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2020 | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Balance | $ 1,529,900 | $ 966,433 | $ 907,442 | $ 948,394 | $ 966,433 | $ 948,394 |
Net earnings (loss) | (68,512) | 618,738 | 56,922 | (2,455) | ||
Other comprehensive income | 14,163 | 11,242 | 9,970 | 3,156 | 25,406 | 13,126 |
Common shares issued, net of withholding tax | 2,294 | (1,150) | (3,811) | (3,213) | ||
Common shares in NQ plans | 292 | 90 | 239 | 74 | ||
Stock-based compensation | 3,499 | 3,022 | 2,880 | 4,545 | ||
Purchases and retirement of common shares | (38,563) | (54,320) | 0 | (29,599) | ||
Contribution to Samuel joint venture | 925 | |||||
Cash dividends declared | (13,527) | (13,595) | (13,446) | (13,460) | ||
Dividends to noncontrolling interest | (560) | (1,453) | ||||
Balance | 1,430,471 | 1,529,900 | 958,743 | 907,442 | 1,430,471 | 958,743 |
Additional Paid-in Capital | ||||||
Balance | 278,202 | 283,776 | 280,769 | 283,177 | 283,776 | 283,177 |
Net earnings (loss) | 0 | 0 | 0 | 0 | ||
Other comprehensive income | 0 | 0 | 0 | 0 | ||
Common shares issued, net of withholding tax | 2,294 | (1,150) | (3,811) | (3,213) | ||
Common shares in NQ plans | 292 | 90 | 239 | 74 | ||
Stock-based compensation | 3,499 | 3,022 | 2,880 | 4,545 | ||
Purchases and retirement of common shares | (4,486) | (7,536) | 0 | (3,814) | ||
Contribution to Samuel joint venture | 0 | |||||
Cash dividends declared | 0 | 0 | 0 | 0 | ||
Dividends to noncontrolling interest | 0 | 0 | ||||
Balance | 279,801 | 278,202 | 280,077 | 280,769 | 279,801 | 280,077 |
Accumulated Other Comprehensive Loss, Net of Tax | ||||||
Balance | (23,975) | (35,217) | (40,308) | (43,464) | (35,217) | (43,464) |
Net earnings (loss) | 0 | 0 | 0 | 0 | ||
Other comprehensive income | 14,163 | 11,242 | 9,970 | 3,156 | ||
Common shares issued, net of withholding tax | 0 | 0 | 0 | 0 | ||
Common shares in NQ plans | 0 | 0 | 0 | 0 | ||
Stock-based compensation | 0 | 0 | 0 | 0 | ||
Purchases and retirement of common shares | 0 | 0 | 0 | 0 | ||
Contribution to Samuel joint venture | 0 | |||||
Cash dividends declared | 0 | 0 | 0 | 0 | ||
Dividends to noncontrolling interest | 0 | 0 | ||||
Balance | (9,812) | (23,975) | (30,338) | (40,308) | (9,812) | (30,338) |
Retained Earnings | ||||||
Balance | 1,128,558 | 572,262 | 547,512 | 591,533 | 572,262 | 591,533 |
Net earnings (loss) | (74,044) | 616,675 | 52,086 | (4,776) | ||
Other comprehensive income | 0 | 0 | 0 | 0 | ||
Common shares issued, net of withholding tax | 0 | 0 | 0 | 0 | ||
Common shares in NQ plans | 0 | 0 | 0 | 0 | ||
Stock-based compensation | 0 | 0 | 0 | 0 | ||
Purchases and retirement of common shares | (34,077) | (46,784) | 0 | (25,785) | ||
Contribution to Samuel joint venture | 0 | |||||
Cash dividends declared | (13,527) | (13,595) | (13,446) | (13,460) | ||
Dividends to noncontrolling interest | 0 | 0 | ||||
Balance | 1,006,910 | 1,128,558 | 586,152 | 547,512 | 1,006,910 | 586,152 |
Parent | ||||||
Balance | 1,382,785 | 820,821 | 787,973 | 831,246 | 820,821 | 831,246 |
Net earnings (loss) | (74,044) | 616,675 | 52,086 | (4,776) | ||
Other comprehensive income | 14,163 | 11,242 | 9,970 | 3,156 | ||
Common shares issued, net of withholding tax | 2,294 | (1,150) | (3,811) | (3,213) | ||
Common shares in NQ plans | 292 | 90 | 239 | 74 | ||
Stock-based compensation | 3,499 | 3,022 | 2,880 | 4,545 | ||
Purchases and retirement of common shares | (38,563) | (54,320) | 0 | (29,599) | ||
Contribution to Samuel joint venture | 0 | |||||
Cash dividends declared | (13,527) | (13,595) | (13,446) | (13,460) | ||
Dividends to noncontrolling interest | 0 | 0 | ||||
Balance | 1,276,899 | 1,382,785 | 835,891 | 787,973 | 1,276,899 | 835,891 |
Noncontrolling Interest | ||||||
Balance | 147,115 | 145,612 | 119,469 | 117,148 | 145,612 | 117,148 |
Net earnings (loss) | 5,532 | 2,063 | 4,836 | 2,321 | ||
Other comprehensive income | 0 | 0 | 0 | 0 | ||
Common shares issued, net of withholding tax | 0 | 0 | 0 | 0 | ||
Common shares in NQ plans | 0 | 0 | 0 | 0 | ||
Stock-based compensation | 0 | 0 | 0 | 0 | ||
Purchases and retirement of common shares | 0 | 0 | 0 | 0 | ||
Contribution to Samuel joint venture | 925 | |||||
Cash dividends declared | 0 | 0 | 0 | 0 | ||
Dividends to noncontrolling interest | (560) | (1,453) | ||||
Balance | $ 153,572 | $ 147,115 | $ 122,852 | $ 119,469 | $ 153,572 | $ 122,852 |
Changes in Equity - Summary o_2
Changes in Equity - Summary of Changes in Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | $ 1,529,900 | $ 907,442 | $ 966,433 | $ 948,394 | |
Income tax effect | (4,346) | (825) | (4,452) | (430) | |
Balance | 1,430,471 | 958,743 | 1,430,471 | 958,743 | |
Foreign Currency Translation | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (9,142) | (19,639) | |||
Other comprehensive income (loss) before reclassifications | 6,581 | 2,948 | |||
Reclassification adjustments to income | 0 | 8,496 | [1] | ||
Income tax effect | 676 | 0 | |||
Balance | (1,885) | (8,195) | (1,885) | (8,195) | |
Pension Liability Adjustment | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (21,886) | (17,856) | |||
Other comprehensive income (loss) before reclassifications | 484 | 79 | |||
Reclassification adjustments to income | 0 | 1,342 | [1] | ||
Income tax effect | (116) | (313) | |||
Balance | (21,518) | (16,748) | (21,518) | (16,748) | |
Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (4,189) | (5,969) | |||
Other comprehensive income (loss) before reclassifications | 16,765 | (5,975) | |||
Reclassification adjustments to income | 6,028 | 6,666 | [1] | ||
Income tax effect | (5,013) | (117) | |||
Balance | 13,591 | (5,395) | 13,591 | (5,395) | |
Accumulated Other Comprehensive Loss, Net of Tax | |||||
Accumulated Other Comprehensive Income Loss [Line Items] | |||||
Balance | (23,975) | (40,308) | (35,217) | (43,464) | |
Other comprehensive income (loss) before reclassifications | 23,830 | (2,948) | |||
Reclassification adjustments to income | 6,028 | 16,504 | [1] | ||
Income tax effect | (4,453) | (430) | |||
Balance | $ (9,812) | $ (30,338) | $ (9,812) | $ (30,338) | |
[1] | (a) The statement of earnings (loss) classification of amounts reclassified to income include: (1) Foreign currency translation – result of $7,454,000 related to the sale of the cryogenics business in Turkey; and $1,042,000 related to the impairment of Nisshin, the Company’s former joint venture in China. (2) Pension liability adjustment – result of the settlement of certain participant balances within the pension plan maintained by WAVE. (3) Cash flow hedges – disclosed in “NOTE P – Derivative Instruments and Hedging Activities”. |
Changes in Equity - Summary o_3
Changes in Equity - Summary of Changes in Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - Foreign Currency Translation | 6 Months Ended |
Nov. 30, 2019USD ($) | |
Nisshin | |
Reclassification adjustments to income | $ 1,042,000 |
Cryogenics | |
Reclassification adjustments to income | $ 7,454,000 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jun. 25, 2020 | Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Pre-tax stock-based compensation expense | $ 4,854 | $ 3,280 | $ 9,710 | $ 7,275 | |
Non-Qualified Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Non-qualified stock options, granted | 116,300 | ||||
Non-qualified stock option, per share weighted average price | $ 36.93 | ||||
Non-qualified stock option, fair value, per share price | $ 10.43 | ||||
Pre-tax stock-based compensation, period of recognition | 3 years | ||||
Pre-tax stock-based compensation expense | $ 1,213 | ||||
Service-Based Restricted Common Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Pre-tax stock-based compensation, period of recognition | 3 years | ||||
Pre-tax stock-based compensation expense | $ 12,946 | ||||
Restricted common shares, granted | 341,650 | ||||
Restricted common shares, fair value per share | $ 37.89 | ||||
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 | 45,000 | ||||
Restricted common shares, fair value per share | $ 20.87 | ||||
Common share awards vesting, minimum price per share | $ 65 | ||||
Common share awards vesting, minimum consecutive days at stated price | 90 days | ||||
Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Pre-tax stock-based compensation expense | $ 2,415 | ||||
Restricted common shares, granted | 65,400 | ||||
Pre-tax stock-based compensation, period of recognition | 3 years |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions To Value Stock Options (Detail) - Non-Qualified Stock Options | 6 Months Ended |
Nov. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividend yield | 2.94% |
Expected volatility | 40.82% |
Risk-free interest rate | 0.42% |
Expected term (years) | 6 years |
Stock-Based Compensation - Sche
Stock-Based Compensation - Schedule of Assumptions Used to Determine Grant Date Fair Value of Restricted Common Shares (Detail) - Market-Based Restricted Common Shares | Jun. 25, 2020 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Dividend yield | 2.71% |
Expected volatility | 41.50% |
Risk-free interest rate | 0.32% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 6 Months Ended | |
Nov. 30, 2020 | Nov. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Estimated annual effective income tax rate | 21.50% | 24.80% |
Earnings (Loss) Per Share - Com
Earnings (Loss) Per Share - Computation of Basic and Diluted Earnings (Loss) Per Share Attributable to Controlling Interest (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Numerator (basic & diluted): | ||||
Net earnings (loss)attributable to controlling interest - income (loss) available to common shareholders | $ (74,044) | $ 52,086 | $ 542,631 | $ 47,310 |
Denominator: | ||||
Denominator for basic earnings (loss) per share attributable to controlling interest- weighted average common shares | 52,988 | 55,059 | 53,532 | 55,150 |
Effect of dilutive securities | 1,013 | 907 | 1,055 | |
Denominator for diluted earnings (loss) per share attributable to controlling interest-adjusted weighted average common shares | 52,988 | 56,072 | 54,439 | 56,205 |
Basic earnings (loss) per share attributable to controlling interest | $ (1.40) | $ 0.95 | $ 10.14 | $ 0.86 |
Diluted earnings (loss) per share attributable to controlling interest | $ (1.40) | $ 0.93 | $ 9.97 | $ 0.84 |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Shares excluded from computation of diluted earnings per share | 1,030,835 | 405,433 | 492,011 | 391,563 |
Segment Operations - Financial
Segment Operations - Financial Information for Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | May 31, 2020 | ||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 731,092 | $ 827,637 | $ 1,434,001 | $ 1,683,496 | ||
Operating income (loss) | 37,364 | 32,118 | 7,243 | 17,530 | ||
Segment operating income | 40,807 | 30,900 | 62,307 | 21,559 | ||
Impairment of long-lived assets | 3,815 | 0 | 13,739 | 40,601 | ||
Restructuring and other expense (income), net | 7,596 | (50) | 9,444 | 405 | ||
Total assets | 3,027,385 | 3,027,385 | $ 2,331,515 | |||
Steel Processing | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 468,723 | 516,937 | 899,743 | 1,040,312 | ||
Operating income (loss) | 37,824 | 17,172 | 51,441 | 23,340 | ||
Restructuring and other expense (income), net | 375 | 1,846 | (26) | |||
Total assets | 886,578 | 886,578 | 821,657 | |||
Pressure Cylinders | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 262,284 | 290,136 | 533,188 | 594,532 | ||
Operating income (loss) | 3,305 | 15,647 | 11,947 | 45,270 | ||
Impairment of long-lived assets | 3,815 | 13,739 | ||||
Restructuring and other expense (income), net | 7,257 | 7,571 | ||||
Total assets | 1,016,404 | 1,016,404 | 1,104,603 | |||
Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 85 | 20,564 | 1,070 | 48,652 | ||
Operating income (loss) | (322) | (1,919) | (1,081) | (47,051) | ||
Impairment of long-lived assets | 40,601 | |||||
Restructuring and other expense (income), net | (36) | (50) | 27 | 431 | ||
Total assets | [1] | 1,124,403 | 1,124,403 | $ 405,255 | ||
Unallocated Corporate Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | 1,127 | $ 1,218 | (983) | $ (4,029) | ||
Incremental Expenses Related To Nikola Gains | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating income (loss) | $ (4,570) | $ (54,081) | ||||
[1] | The material changes in total assets primarily relate to the Company’s investment in Nikola. For additional information, refer to “ NOTE C – Investment in Nikola”. |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Schedule of Fair Value of Derivative Instruments (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | $ 24,056 | $ 181 |
Liability Derivatives at Fair Value | 1,951 | 8,777 |
Derivatives Designated As Hedging Instruments | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 14,147 | 79 |
Liability Derivatives at Fair Value | 4,773 | |
Derivatives Designated As Hedging Instruments | Commodity Contracts | Accounts Payable | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 4,294 | |
Derivatives Designated As Hedging Instruments | Commodity Contracts | Receivables | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 13,991 | |
Derivatives Designated As Hedging Instruments | Commodity Contracts | Other Assets | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 156 | 79 |
Derivatives Designated As Hedging Instruments | Commodity Contracts | Other Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 479 | |
Derivatives Not Designated As Hedging Instruments | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 102 | |
Liability Derivatives at Fair Value | 62 | 4,004 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 9,909 | 96 |
Liability Derivatives at Fair Value | 1,889 | 4,004 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | Accounts Payable | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 1,803 | 3,826 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | Receivables | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 9,708 | |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | Other Assets | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | 201 | 96 |
Derivatives Not Designated As Hedging Instruments | Commodity Contracts | Other Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 86 | 178 |
Derivatives Not Designated As Hedging Instruments | Foreign Currency Exchange Contracts | Accounts Payable | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | 13 | |
Derivatives Not Designated As Hedging Instruments | Foreign Currency Exchange Contracts | Receivables | ||
Derivative [Line Items] | ||
Asset Derivatives at Fair Value | $ 6 | |
Derivatives Not Designated As Hedging Instruments | Long Term Foreign Currency Exchange Contracts | Other Liabilities | ||
Derivative [Line Items] | ||
Liability Derivatives at Fair Value | $ 49 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Nov. 30, 2020 | May 31, 2020 | |
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 | $ 2,427 | $ 1,780 |
Losses in accumulated other comprehensive income expected to be reclassified into net earnings | 12,557 | |
Losses in accumulated other comprehensive income expected to be reclassified into net earnings, tax | $ 3,470 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule of Summary of Derivative Hedges (Detail) $ in Thousands | 6 Months Ended |
Nov. 30, 2020USD ($) | |
Commodity Contracts | Minimum [Member] | Derivatives Not Designated As Hedging Instruments | |
Derivative [Line Items] | |
Notional Amount | $ 51,909 |
Maturity Date | 2020-12 |
Commodity Contracts | Maximum | Derivatives Not Designated As Hedging Instruments | |
Derivative [Line Items] | |
Maturity Date | 2022-04 |
Foreign Currency Exchange Contracts | Minimum [Member] | Derivatives Not Designated As Hedging Instruments | |
Derivative [Line Items] | |
Notional Amount | $ 9,068 |
Maturity Date | 2020-12 |
Foreign Currency Exchange Contracts | Maximum | Derivatives Not Designated As Hedging Instruments | |
Derivative [Line Items] | |
Maturity Date | 2021-07 |
Cash Flow Hedges | Commodity Contracts | |
Derivative [Line Items] | |
Notional Amount | $ 73,689 |
Cash Flow Hedges | Commodity Contracts | Minimum [Member] | |
Derivative [Line Items] | |
Maturity Date | 2020-12 |
Cash Flow Hedges | Commodity Contracts | Maximum | |
Derivative [Line Items] | |
Maturity Date | 2022-03 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule of Derivatives Designated as Cash Flow Hedging Instruments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Derivative [Line Items] | ||||
Gain (Loss) Recognized in OCI | $ 16,381 | $ (316) | $ 16,765 | $ (5,975) |
Gain (Loss) Reclassified from AOCI into Income | (3,160) | (4,332) | (6,028) | (6,666) |
Commodity Contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in OCI | 16,381 | 10 | 16,765 | (5,649) |
Commodity Contracts | Cost of Sales | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | (2,690) | (4,228) | (5,331) | (6,520) |
Interest Rate Contract | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in OCI | (326) | (326) | ||
Interest Rate Contract | Interest Expense | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | $ (470) | (7) | $ (697) | (127) |
Foreign Currency Exchange Contracts | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | $ (97) | |||
Foreign Currency Exchange Contracts | Miscellaneous Income Expense | ||||
Derivative [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | $ (19) |
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 | 3 Months Ended | 6 Months Ended | ||
Nov. 30, 2020 | Nov. 30, 2019 | Nov. 30, 2020 | Nov. 30, 2019 | |
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Earnings | $ 8,906 | $ (1,658) | $ 12,125 | $ (4,005) |
Commodity Contracts | Cost of Sales | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Earnings | 8,905 | (1,673) | 12,198 | (3,916) |
Foreign Currency Exchange Contracts | Miscellaneous Income Expense | ||||
Derivative [Line Items] | ||||
Gain (Loss) Recognized in Earnings | $ 1 | $ 15 | $ (73) | $ (89) |
Fair Value - Schedule of Assets
Fair Value - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 2,800 | ||
Fair Value, Measurements, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | $ 167,906 | 181 | |
Liabilities | 1,951 | 8,777 | |
Fair Value, Measurements, Recurring | Derivative Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 24,056 | 181 |
Liabilities | [1] | 1,951 | 8,777 |
Fair Value, Measurements, Recurring | Investment in Nikola | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [2] | 143,850 | |
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 143,850 | ||
Fair Value, Measurements, Recurring | Quoted Prices In Active Markets (Level 1) | Investment in Nikola | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [2] | 143,850 | |
Fair Value, Measurements, Recurring | Fair Value Inputs Level2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | 24,056 | 181 | |
Liabilities | 1,951 | 8,777 | |
Fair Value, Measurements, Recurring | Fair Value Inputs Level2 | Derivative Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets | [1] | 24,056 | 181 |
Liabilities | [1] | $ 1,951 | $ 8,777 |
[1] | The fair value of our derivative instruments is 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 P – Derivative Instruments and Hedging Activities | ||
[2] | The fair value of the investment in Nikola is based on the share price of Nikola common stock at November 30, 2020. |
Fair Value - Assets Measured at
Fair Value - Assets Measured at Fair Value on Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | $ 2,800 | ||||
Fair Value, Measurements, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | $ 6,334 | 26,984 | |||
Fair Value, Measurements, Nonrecurring | Fair Value Inputs Level2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | 6,334 | 10,561 | |||
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | 16,423 | ||||
Fair Value, Measurements, Nonrecurring | 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 | 6,334 | [1] | 9,277 | [2] | |
Fair Value, Measurements, Nonrecurring | Long Lived Assets Held And Used | Fair Value Inputs Level2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | $ 6,334 | [1] | 6,477 | [2] | |
Fair Value, Measurements, Nonrecurring | Long Lived Assets Held And Used | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | [2] | 2,800 | |||
Fair Value, Measurements, Nonrecurring | 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 | [3] | 13,623 | |||
Fair Value, Measurements, Nonrecurring | Investment In Unconsolidated Affiliate | Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | [3] | 13,623 | |||
Fair Value, Measurements, Nonrecurring | 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 | [4],[5] | 4,084 | |||
Fair Value, Measurements, Nonrecurring | Long Lived Assets Held For Sale | Fair Value Inputs Level2 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Asset measured at fair value on non-recurring basis | [4],[5] | $ 4,084 | |||
[1] | Comprised of our oil & gas equipment assets in Tulsa, Oklahoma with an estimated fair value of $5,934,000, and our alternative fuel cylinders assets at the Jefferson, Ohio facility with an estimated fair market value of $400,000. Refer to “NOTE E – Impairment of Long-Lived Assets” for additional information. | ||||
[2] | During the fourth quarter of 2020, in connection with the annual indefinite lived assets impairment test, certain European tradenames were written down to their estimated fair market value of $2,800,000. | ||||
[3] | On November 1, 2019, in connection with the contribution of substantially all of the net assets of the Engineered Cabs business to the newly-formed Cabs joint venture, we obtained a 20% minority ownership interest. In accordance with the applicable accounting guidance, our minority ownership interest in the Cabs joint venture was recorded at its acquisition date fair value of $13,623,000 . | ||||
[4] | During the third quarter of fiscal 2020, we committed to a plan to sell the Canton, Michigan facility of our consolidated WSP joint venture and some of the production equipment at that facility. In accordance with the applicable accounting guidance this production equipment was written down to its estimated fair value of $700,000. | ||||
[5] | During the third quarter of fiscal 2020, in connection with the closure of the oil & gas equipment manufacturing operations in Wooster, Ohio, fixed assets consisting of land and a building were written down to their estimated fair market value of $3,384,000. |
Fair Value - Assets Measured _2
Fair Value - Assets Measured at Fair Value on Non-Recurring Basis (Parenthetical) (Detail) | Nov. 01, 2019USD ($) | Nov. 30, 2020USD ($) | May 31, 2020USD ($) | Feb. 29, 2020USD ($) | Aug. 31, 2019USD ($) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | $ 2,800,000 | ||||||
Fair Value, Measurements, Nonrecurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | $ 6,334,000 | 26,984,000 | |||||
Fair Value, Measurements, Nonrecurring | WSP Joint Venture | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | $ 700,000 | ||||||
Oil And Gas Operations | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | 3,384,000 | ||||||
Noncontrolling Interests | Engineered Cabs | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Percent of ownership interest held in unconsolidated affiliates | 20 | ||||||
Fair value of acquisition date | $ 13,623,000 | ||||||
Long Lived Assets Held And Used | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | 6,334,000 | [1] | 9,277,000 | [2] | |||
Long Lived Assets Held And Used | Engineered Cabs | Fair Value, Measurements, Nonrecurring | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | $ 12,860,000 | ||||||
Long Lived Assets Held And Used | Packing Solutions Business | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | $ 266,000 | ||||||
Long Lived Assets Held And Used | Oil & gas equipment | Oklahoma | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | 5,934,000 | ||||||
Long Lived Assets Held And Used | Alternative Fuel Cylinders Manufacturing Line Facility | Jefferson | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | $ 400,000 | ||||||
Fixed Assets [Member] | Oil And Gas Operations | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Fair market value of assets | $ 6,211,000 | ||||||
[1] | Comprised of our oil & gas equipment assets in Tulsa, Oklahoma with an estimated fair value of $5,934,000, and our alternative fuel cylinders assets at the Jefferson, Ohio facility with an estimated fair market value of $400,000. Refer to “NOTE E – Impairment of Long-Lived Assets” for additional information. | ||||||
[2] | During the fourth quarter of 2020, in connection with the annual indefinite lived assets impairment test, certain European tradenames were written down to their estimated fair market value of $2,800,000. |
Fair Value - Additional Informa
Fair Value - Additional Information (Detail) - Long-term Debt - USD ($) $ in Thousands | Nov. 30, 2020 | May 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt at fair value including current maturities | $ 799,064 | $ 740,678 |
Long-term debt at carrying amount including current maturities | $ 707,500 | $ 699,665 |