Investments in joint ventures that we do not control, either through majority ownership or otherwise, are unconsolidated and accounted for using the equity method. At August 31, 2026, we held investments in the following unconsolidated joint ventures: ClarkDietrich (25%); heiserTEC (49%); WAVE (50%); and Workhorse (20%).

We received distributions from unconsolidated affiliates totaling $35,851 during the current year quarter. We have received cumulative distributions from WAVE in excess of our investment balance, which resulted in a negative asset balance of $102,293 and $105,349 at August 31, 2026 and May 31, 2026, respectively. In accordance with the applicable accounting guidance, we have reclassified the negative balances to distributions in excess of investment in unconsolidated affiliate within our consolidated balance sheets. We will continue to record our equity in the net income of WAVE as a debit to the investment account, and if it becomes positive, it will again be shown as an asset on our consolidated balance sheets. If it becomes probable that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will immediately recognize any balance classified as a liability as income.

We use the cumulative earnings approach to determine the cash flow presentation of distributions from our unconsolidated joint ventures. Distributions received are included in our consolidated statements of cash flows as operating activities unless the cumulative distributions exceed our share of the cumulative equity in the net earnings of the joint venture. In such cases, the excess distributions are considered returns of investment and are classified as investing activities in our consolidated statements of cash flows.

WAVE and ClarkDietrich are included within the Building Performance Solutions segment, while the heiserTEC and Workhorse joint ventures are reported within Other. The following tables summarize financial information for our unconsolidated affiliates for the periods presented:


	Three Months Ended
	August 31,
	2026			2025
WAVE
Net sales	$	151,628		$	134,717
Operating income		73,933			67,683
Depreciation and amortization		1,432			1,638
Interest expense, net		3,764			3,960
Income tax expense		146			134
Net earnings		70,006			63,597

ClarkDietrich
Net sales	$	340,574		$	289,991
Operating income		30,068			22,789
Depreciation and amortization		5,172			4,495
Interest expense, net		268			80
Income tax expense		248			13
Net earnings		29,526			23,735

Other
Net sales	$	63,320		$	72,485
Operating loss		(3,988	)		(3,257	)
Depreciation and amortization		1,948			2,214
Interest expense, net		337			295
Income tax (benefit) expense		(33	)		59
Net loss		(4,295	)		(3,623	)