Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Nov. 30, 2014

Schedule of Fair Value of Derivative Instruments

The following table summarizes the fair value of our derivative instruments and the respective financial statement caption in which they were recorded in our consolidated balance sheet at November 30, 2014:

	Asset Derivatives				Liability Derivatives
(in thousands)	Balance Sheet Location		Fair Value		Balance Sheet Location		Fair Value
Derivatives designated as hedging instruments:
Interest rate contracts		Receivables	$	-		Accounts payable	$	2,102
		Other assets		-		Other liabilities		183
				-				2,285
Foreign exchange contracts		Receivables		106		Accounts payable		-
Commodity contracts		Receivables		-		Accounts payable		3,444
Totals			$	106			$	5,729
Derivatives not designated as hedging instruments:
Commodity contracts		Receivables	$	231		Accounts payable	$	595
Totals			$	231			$	595
Total Derivative Instruments			$	337			$	6,324

The amounts in the table above reflect the fair value of the Company’s derivative contracts on a net basis. Had these amounts been recognized on a gross basis, the impact would have been a $324,000 increase in receivables with a corresponding increase in accounts payable.

The following table summarizes the fair value of our derivative instruments and the respective line in which they were recorded in the consolidated balance sheet at May 31, 2014:

	Asset Derivatives			Liability Derivatives
(in thousands)	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate contracts	Receivables	$	-	Accounts payable	$	4,180
Commodity contracts	Receivables		456	Accounts payable		-
Totals		$	456		$	4,180
Derivatives not designated as hedging instruments:
Commodity contracts	Receivables	$	796	Accounts payable	$	295
Foreign exchange contracts	Receivables		32	Accounts payable		-
Totals		$	828		$	295
Total Derivative Instruments		$	1,284		$	4,475

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 accumulated OCI into earnings for derivative instruments designated as cash flow hedges during the three months ended November 30, 2014 and 2013:

(in thousands)	Gain (Loss) Recognized in OCI (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated OCI (Effective Portion)	Gain (Loss) Reclassified from Accumulated OCI (Effective Portion)			Location of Gain (Loss) (Ineffective Portion) and Excluded from Effectiveness Testing		Gain (Loss) (Ineffective Portion) and Excluded from Effectiveness Testing
For the three months ended November 30, 2014:
Interest rate contracts	$	-		Interest expense	$	(1,137	)		Interest expense	$	-
Commodity contracts		(4,362	)	Cost of goods sold		(356	)		Cost of goods sold		-
Foreign currency contracts		(103	)	Miscellaneous income		-			Miscellaneous income		-
Totals	$	(4,465	)		$	(1,493	)			$	-
For the three months ended November 30, 2013:
Interest rate contracts	$	(181	)	Interest expense	$	(1,057	)		Interest expense	$	-
Commodity contracts		(1,047	)	Cost of goods sold		(812	)		Cost of goods sold		-
Totals	$	(1,228	)		$	(1,869	)			$	-

The following table summarizes the gain (loss) recognized in OCI and the gain (loss) reclassified from accumulated OCI into earnings for derivative instruments designated as cash flow hedges during the six months ended November 30, 2014 and 2013:

(in thousands)	Gain (Loss) Recognized in OCI (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated OCI (Effective Portion)	Gain (Loss) Reclassified from Accumulated OCI (Effective Portion)			Location of Gain (Loss) (Ineffective Portion) and Excluded from Effectiveness Testing	Gain (Loss) (Ineffective Portion) and Excluded from Effectiveness Testing
For the six months ended November 30, 2014:
Interest rate contracts	$	-		Interest expense	$	(2,285	)	Interest expense	$	-
Commodity contracts		(4,775	)	Cost of goods sold		(1,152	)	Cost of goods sold		-
Foreign currency contracts		(103	)	Miscellaneous income		-		Miscellaneous income		-
Totals	$	(4,878	)		$	(3,437	)		$	-
For the six months ended November 30, 2013:
Interest rate contracts	$	(384	)	Interest expense	$	(2,120	)	Interest expense	$	-
Commodity contracts		2,617		Cost of goods sold		(1,128	)	Cost of goods sold		-
Totals	$	2,233			$	(3,248	)		$	-

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

The following table summarizes the loss recognized in earnings for economic (non-designated) derivative financial instruments during the three months ended November 30, 2014 and 2013:

	Location of Loss	Loss Recognized in Earnings for the Three Months Ended November 30,
(in thousands)	Recognized in Earnings	2014			2013
Commodity contracts	Cost of goods sold	$	(2,360	)	$	(394	)
Foreign currency contracts	Miscellaneous income (expense)		(218	)		-
Total		$	(2,578	)	$	(394	)

The following table summarizes the gain (loss) recognized in earnings for economic (non-designated) derivative financial instruments during the six months ended November 30, 2014 and 2013:

	Location of Gain (Loss)	Gain (Loss) Recognized in Earnings for the Six Months Ended November 30,
(in thousands)	Recognized in Earnings	2014			2013
Commodity contracts	Cost of goods sold	$	(2,417	)	$	282
Foreign currency contracts	Miscellaneous income (expense)		43			(5	)
Total		$	(2,374	)	$	277

Cash Flow Hedges

Schedule of Summary of Derivative Hedges

The following table summarizes our cash flow hedges outstanding at November 30, 2014:

(in thousands)	Notional Amount		Maturity Date
Commodity contracts	$	57,368	December 2014 - July 2016
Interest rate contracts		120,000	December 2014 - September 2019
Foreign currency contracts		11,168	December 2014 - June 2015

Derivatives Not Designated As Hedging Instruments

Schedule of Summary of Derivative Hedges

The following table summarizes our economic (non-designated) derivative instruments outstanding at November 30, 2014:

(in thousands)	Notional Amount		Maturity Date(s)
Commodity contracts	$	57,607	December 2014 - June 2016