Fair Value

6 Months Ended

Nov. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value

Note P – Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. 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 - Quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date.

•Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

•Level 3 - Unobservable inputs for the asset or liability and that are significant to the fair value of the assets and liabilities (i.e., allowing for situations in which there is little or no market activity for the asset or liability at the measurement date).

Recurring Fair Value Measurements

At November 30, 2024, our assets and liabilities measured at fair value on a recurring basis were as follows:

	(Level 1)		(Level 2)		(Level 3)		Totals
Assets (1)
Derivative financial instruments	$	-	$	877	$	-	$	877
Total assets	$	-	$	877	$	-	$	877
Liabilities (1)
Derivative financial instruments	$	-	$	778	$	-	$	778
Total liabilities	$	-	$	778	$	-	$	778

At May 31, 2024, our assets and liabilities measured at fair value on a recurring basis were as follows:

	(Level 1)		(Level 2)		(Level 3)		Totals
Assets (1)
Derivative financial instruments	$	-	$	920	$	-	$	920
Total assets	$	-	$	920	$	-	$	920
Liabilities (1)
Derivative financial instruments	$	-	$	1,421	$	-	$	1,421
Total liabilities	$	-	$	1,421	$	-	$	1,421

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(1)The fair value of our derivative financial 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 O – Derivative Financial Instruments and Hedging Activities” for additional information regarding our use of derivative financial instruments.

Non-Recurring Fair Value Measurements

At November 30, 2024, there were no assets measured at fair value on a non-recurring basis on our consolidated balance sheet.

At May 31, 2024, our assets measured at fair value on a non-recurring basis were as follows:

	(Level 1)		(Level 2)		(Level 3)		Totals
Assets
Investment in note receivable (1)	$	-	$	5,000	$	-	$	5,000
Investment in unconsolidated affiliate (2)		-		-		31,367		31,367
Total assets	$	-	$	5,000	$	31,367	$	36,367

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(1)Reflects the write-down of an investment in notes receivable that was determined to be other than temporarily impaired.

(2)On May 29, 2024, in connection with the contribution of the net assets of our former Sustainable Energy Solutions operating segment to the newly-formed Sustainable Energy Solutions joint venture, we obtained a 49% minority ownership interest in the joint venture. In accordance with the applicable accounting guidance, our minority ownership interest in the Sustainable Energy Solutions joint venture was recorded at its acquisition date fair value of $31,367.

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 $265,577 and $257,866 at November 30, 2024 and May 31, 2024, respectively. The carrying amount of long-term debt, including current maturities, was $295,721 and $298,133 at November 30, 2024 and May 31, 2024, respectively.