Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

May 31, 2023

Schedule of Fair Value of Derivative Instruments

The following table summarizes the fair value of our derivative financial instruments and the respective lines in which they were recorded in our consolidated balance sheet at May 31, 2023:

	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
(In thousands)	Location	Value		Location	Value
Derivatives designated as hedging instruments:
Commodity contracts	Receivables	$	20	Accounts payable	$	6,749
	Other assets		51	Other liabilities		379
			71			7,128
Foreign currency exchange contracts	Receivables		-	Accounts payable		33
			-			33
Subtotals		$	71		$	7,161
Derivatives not designated as hedging instruments:
Commodity contracts	Receivables	$	2,539	Accounts payable	$	8,604
	Other assets		-	Other liabilities		35
Subtotals			2,539			8,639
Total derivative financial instruments		$	2,610		$	15,800

The amounts in the table above reflect the fair value of our derivative financial instruments on a net basis, where allowable under master netting arrangements. Had these amounts been recognized on a gross basis, the impact would have been a $7,576 increase in receivables with a corresponding increase in accounts payable.

The following table summarizes the fair value of our derivative financial instruments and the respective lines in which they were recorded in our consolidated balance sheet at May 31, 2022:

	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
(In thousands)	Location	Value		Location	Value
Derivatives designated as hedging instruments:
Commodity contracts	Receivables	$	1,040	Accounts payable	$	4,517
	Other assets		-	Other liabilities		48
			1,040			4,565
Foreign currency exchange contracts	Receivables		-	Accounts payable		-
	Other assets		-	Other liabilities		17
			-			17
Subtotals		$	1,040		$	4,582
Derivatives not designated as hedging instruments:
Commodity contracts	Receivables	$	11,555	Accounts payable	$	4,142
	Other assets		48	Other liabilities		24
			11,603			4,166
Foreign currency exchange contracts	Receivables		-	Accounts payable		255
			-			255
Subtotals		$	11,603		$	4,421
Total derivative financial instruments		$	12,643		$	9,003

Schedule of Summary of Derivative Hedges

The following table summarizes our economic (non-designated) derivative financial instruments outstanding at May 31, 2023:

	Notional
(In thousands)	Amount		Maturity Date
Commodity contracts	$	172	June 2023 - December 2024

Schedule of Derivatives Designated as Cash Flow Hedging Instruments

The following table summarizes the gain (loss) recognized in OCI and the gain (loss) reclassified from AOCI into earnings for derivative financial instruments designated as cash flow hedges during fiscal 2023 and fiscal 2022:

				Location of	Gain (Loss)
	Gain (Loss)			Gain (Loss)	Reclassified
	Recognized			Reclassified from AOCI	from AOCI
(In thousands)	in OCI			into Net Earnings	into Net Earnings
For the fiscal year ended May 31, 2023:
Interest rate contracts	$	-		Interest expense	$	(27	)
Commodity contracts		(23,068	)	Cost of goods sold		(25,573	)
Foreign currency exchange contracts		195		Miscellaneous income, net		142
Totals	$	(22,873	)		$	(25,458	)
For the fiscal year ended May 31, 2022:
Interest rate contracts	$	-		Interest expense	$	(26	)
Commodity contracts		19,148		Cost of goods sold		98,873
Foreign currency exchange contracts		27		Miscellaneous income, net		5
Totals	$	19,175			$	98,852

Schedule of Gain (Loss) Recognized in Earnings for Economic (Non-Designated) Derivative Financial Instruments

The following table summarizes the gain (loss) recognized in earnings for economic (non-designated) derivative financial instruments during fiscal 2023 and fiscal 2022:

		Gain (Loss)
		Recognized in Earnings
		Fiscal Year Ended
	Location of Gain (Loss)	May 31,
(In thousands)	Recognized in Earnings	2023			2022
Commodity contracts	Cost of goods sold	$	(13,125	)	$	13,935
Foreign currency exchange contracts	Miscellaneous income, net		-			(266	)
Total		$	(13,125	)	$	13,669

Cash Flow Hedges

Schedule of Summary of Derivative Hedges

The following table summarizes our cash flow hedges outstanding at May 31, 2023:

	Notional
(In thousands)	Amount		Maturity Date
Commodity contracts	$	78,149	June 2023 - December 2024
Foreign currency exchange contracts		3,984	June 2023 - November 2023