Table of Contents Operating Income Interest Other (Income) Expense, Net 17 For fiscal 2019, we recorded other income, net of $1.0 million as compared to other expense, net of $3.5 million in fiscal 2018. The increase resulted primarily from a downward revision to estimated losses on the impairment of a non-trade note receivable, which was initially recognized in fiscal 2018 upon the bankruptcy declaration of the note debtor. The bankruptcy proceedings progressed better than anticipated and the Company received amounts in excess of its initial loss estimates for the outstanding note, which originated from a non-compete litigation settlement with a competitor in a prior fiscal year. This increase in other income, net was partially offset by higher foreign exchange losses that were realized during fiscal 2019 as a result of unfavorable movements in exchange rates. Interest expense for fiscal 2019 increased 8.0% to $15.0 million as compared to $13.9 million in fiscal 2018. This increase is primarily attributable to higher interest rates on variable rate debt, partially offset by slightly lower average outstanding debt balances during fiscal 2019. For additional information on outstanding debt, see Note 11 to the Consolidated Financial Statements. As of February 28, 2019, we had gross outstanding debt of $241.0 million compared to $301.3 million at the end of fiscal 2018. AZZ's debt to equity ratio was 0.40 to 1 at the end of fiscal 2019 compared to 0.53 to 1 at the end of fiscal 2018. Corporate expenses were $38.0 million for fiscal 2019 and $34.3 million for fiscal 2018. This increase is attributable to higher spend on outside services and higher employee costs in fiscal 2019, partially offset by lower stock based compensation expense related to certain employee performance share unit grants that were forfeited when various vesting conditions were not satisfied during fiscal 2019. Operating income for the Metal Coatings segment decreased $0.7 million, or 0.9%, for fiscal 2019 to $83.6 million as compared to $84.3 million for the prior year. Operating margins were 19.0% for fiscal 2019 as compared to 21.7% for fiscal 2018. These decreases were primarily attributable to higher zinc and labor costs, which were not fully offset by increased selling prices, and a charge of $1.3 million incurred during fiscal 2019 for asset impairments, employee severance and other disposal costs related to the consolidation of two galvanizing facilities in the Gulf Coast region of the United States. Operating income for the Energy segment increased $33.1 million for fiscal 2019, to $31.3 million as compared to an operating loss of $1.8 million for fiscal 2018. Operating margins for this segment were 6.4% for fiscal 2019 as compared to (0.4)% for fiscal 2018. These increases were primarily attributable to the positive factors noted above and improvements in project margins. In addition, for fiscal 2018, the Company recognized an impairment charge of $10.5 million, classified within cost of sales, related to property, plant and equipment that was retired and a provision for doubtful accounts of $2.9 million, classified within selling, general and administrative, resulting from an adverse court decision related to certain outstanding accounts receivables. No such charges were recorded in fiscal 2019. The following table reflects the breakdown of operating income (loss) by segment (in thousands):  Our Metal Coatings segment, which consisted of forty-two metal coating facilities as of February 28, 2019, generated net sales of $440.3 million, a 13.1% increase from the prior year’s net sales of $389.4 million. The increase was a result of higher selling prices and higher volumes of steel processed during the periods driven primarily by improvements in various markets. The increase was also attributable to incremental revenues from our fiscal 2018 acquisitions. Year Ended February 28, 2019 February 28, 2018 Operating income (loss): Energy $ 31,332 $ (1,766) Metal Coatings 83,591 84,332 Corporate (37,967) (34,318) Total operating income $ 76,956 $ 48,248