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Fair Value (Tables)
 6 Months Ended
Nov. 30, 2020
Fair Value Disclosures [Abstract]  
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis

At November 30, 2020, our assets and liabilities measured at fair value on a recurring basis were as follows:

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

Other

 

 

Significant

 

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

(in thousands)

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Totals

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative instruments (1)

 

$

-

 

 

$

24,056

 

 

$

-

 

 

$

24,056

 

Investment in Nikola (2)

 

 

143,850

 

 

 

-

 

 

 

-

 

 

 

143,850

 

Total assets

 

$

143,850

 

 

$

24,056

 

 

$

-

 

 

$

167,906

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative instruments (1)

 

$

-

 

 

$

1,951

 

 

$

-

 

 

$

1,951

 

Total liabilities

 

$

-

 

 

$

1,951

 

 

$

-

 

 

$

1,951

 

 

At May 31, 2020, our assets and liabilities measured at fair value on a recurring basis were as follows:

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

Other

 

 

Significant

 

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

(in thousands)

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Totals

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative instruments (1)

 

$

-

 

 

$

181

 

 

$

-

 

 

$

181

 

Total assets

 

$

-

 

 

$

181

 

 

$

-

 

 

$

181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative instruments (1)

 

$

-

 

 

$

8,777

 

 

$

-

 

 

$

8,777

 

Total liabilities

 

$

-

 

 

$

8,777

 

 

$

-

 

 

$

8,777

 

 

 

 

(1)

The fair value of our derivative 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 P – Derivative Instruments and Hedging Activities” for additional information regarding our use of derivative instruments.

 

(2)

The fair value of the investment in Nikola is based on the share price of Nikola common stock at November 30, 2020.
Assets Measured at Fair Value on Non-Recurring Basis

At November 30, 2020, our assets measured at fair value on a non-recurring basis were as follows:

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

Other

 

 

Significant

 

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

(in thousands)

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Totals

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-lived assets held and used (1)

 

$

-

 

 

$

6,334

 

 

$

-

 

 

$

6,334

 

Total assets

 

$

-

 

 

$

6,334

 

 

$

-

 

 

$

6,334

 

 

 

(1)

Comprised of our oil & gas equipment assets in Tulsa, Oklahoma with an estimated fair value of $5,934,000, and our alternative fuel cylinders assets at the Jefferson, Ohio facility with an estimated fair market value of $400,000.  Refer to “NOTE E – Impairment of Long-Lived Assets” for additional information.   

 

At May 31, 2020, our assets measured at fair value on a non-recurring basis were as follows:

 

 

 

 

 

 

 

Significant

 

 

 

 

 

 

 

 

 

 

 

Quoted Prices

 

 

Other

 

 

Significant

 

 

 

 

 

 

 

in Active

 

 

Observable

 

 

Unobservable

 

 

 

 

 

 

 

Markets

 

 

Inputs

 

 

Inputs

 

 

 

 

 

(in thousands)

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

 

Totals

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment in unconsolidated affiliate (1)

 

$

-

 

 

$

-

 

 

$

13,623

 

 

$

13,623

 

Long-lived assets held for sale (2)

 

 

-

 

 

 

4,084

 

 

 

-

 

 

 

4,084

 

Long-lived assets held and used (3)

 

 

-

 

 

 

6,477

 

 

 

2,800

 

 

 

9,277

 

Total assets

 

$

-

 

 

$

10,561

 

 

$

16,423

 

 

$

26,984

 

 

 

 

(1)

On November 1, 2019, in connection with the contribution of substantially all of the net assets of the Engineered Cabs business to the newly-formed Cabs joint venture, we obtained a 20% minority ownership interest.  In accordance with the applicable accounting guidance, our minority ownership interest in the Cabs joint venture was recorded at its acquisition date fair value of $13,623,000.  

 

 

(2)

During the third quarter of fiscal 2020, we committed to a plan to sell the Canton, Michigan facility of our consolidated WSP joint venture and some of the production equipment at that facility.  In accordance with the applicable accounting guidance this production equipment was written down to its estimated fair value of $700,000.  

 

During the third quarter of fiscal 2020, in connection with the closure of the oil & gas equipment manufacturing operations in Wooster, Ohio, fixed assets consisting of land and a building were written down to their estimated fair market value of $3,384,000.  

 

 

(3)

During the fourth quarter of 2020, in connection with the annual indefinite lived assets impairment test, certain European tradenames were written down to their estimated fair market value of $2,800,000.

 

In May 2020, the Company committed to a plan to shut down the packaging solutions business in Greensburg, Indiana.  As a result, long-lived assets were written down to their estimated fair market value of $266,000.

 

During the third quarter of fiscal 2020, in connection with the closure of the oil & gas equipment manufacturing operations in Wooster, Ohio, the fixed assets at Wooster, Ohio were written down to their then estimated fair market value of $6,211,000.