Fair Value Measurements

6 Months Ended

Nov. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

NOTE 5 — FAIR VALUE MEASUREMENTS

Financial instruments recorded in the Consolidated Balance Sheets include cash and cash equivalents, trade accounts receivable, marketable securities, notes and accounts payable, and debt.

An allowance for credit losses is established for trade accounts receivable using assessments of current creditworthiness of customers, historical collection experience, the aging of receivables and other currently available evidence. Trade accounts receivable balances are written-off against the allowance if a final determination of uncollectibility is made. All provisions for allowance for doubtful collection of accounts are included in selling, general and administrative ("SG&A") expense.

The valuation techniques utilized for establishing the fair values of assets and liabilities are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect management’s market assumptions. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value, as follows:

Level 1 Inputs — Quoted prices for identical instruments in active markets.

Level 2 Inputs — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose significant value drivers are observable.

Level 3 Inputs — Instruments with primarily unobservable value drivers.

The following tables present our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Fair Value at November 30, 2025
Available-for-sale debt securities:
U.S. Treasury and other government	$	-	$	25,126	$	-		$	25,126
Corporate bonds		-		126		-			126
Total available-for-sale debt securities		-		25,252		-			25,252
Marketable equity securities:
Stocks – foreign		333		-		-			333
Stocks – domestic		4,463		-		-			4,463
Mutual funds – foreign		-		43,837		-			43,837
Mutual funds – domestic		-		108,028		-			108,028
Total marketable equity securities		4,796		151,865		-			156,661
Contingent consideration		-		-		(7,017	)		(7,017	)
Total	$	4,796	$	177,117	$	(7,017	)	$	174,896

(In thousands)	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Fair Value at May 31, 2025
Available-for-sale debt securities:
U.S. Treasury and other government	$	-	$	24,200	$	-		$	24,200
Corporate bonds		-		123		-			123
Total available-for-sale debt securities		-		24,323		-			24,323
Marketable equity securities:
Stocks – foreign		1,265		-		-			1,265
Stocks – domestic		8,642		-		-			8,642
Mutual funds – foreign		-		38,943		-			38,943
Mutual funds – domestic		-		86,569		-			86,569
Total marketable equity securities		9,907		125,512		-			135,419
Contingent consideration		-		-		(17,252	)		(17,252	)
Total	$	9,907	$	149,835	$	(17,252	)	$	142,490

Our investments in available-for-sale debt securities and marketable equity securities are valued using a market approach. The availability of inputs observable in the market varies from instrument to instrument and depends on a variety of factors, including the type of instrument, whether the instrument is actively traded and other characteristics particular to the transaction. For most of our financial instruments, pricing inputs are readily observable in the market, the valuation methodology used is widely accepted by market participants, and the valuation does not require significant management discretion. For other financial instruments, pricing inputs are less observable in the market and may require management judgment.

The contingent consideration represents the estimated fair value of the additional variable cash consideration payable in connection with recent acquisitions that is contingent upon the achievement of certain performance milestones. We estimated the fair value using expected future cash flows over the period in which the obligation is expected to be settled which is considered to be a Level 3 input. During the first half of fiscal 2026, we decreased our accrual by $12.7 million related to the Star Brands Group acquisition completed during fiscal 2025 and we increased our accrual by $2.4 million related to an acquisition completed during the first half of fiscal 2026, which is considered a noncash investing activity. During the first half of fiscal 2025, we paid approximately $2.2 million to satisfy contingent consideration obligations relating to certain performance milestones that were established in prior periods and achieved during fiscal 2025. No such payments were made in the first half of fiscal 2026. In the Consolidated Statements of Cash Flows, payments of acquisition-related contingent consideration for the amount recognized at fair value as of the acquisition date are reported in cash flows from financing activities, while payment of contingent consideration in excess of fair value as of the acquisition date, are reported in cash flows from operating activities within accrued liabilities.

The carrying value of our current financial instruments, which include cash and cash equivalents, marketable securities, trade accounts receivable, accounts payable and short-term debt approximates fair value because of the short-term maturity of these financial instruments. At November 30, 2025 and May 31, 2025, the fair value of our long-term debt was estimated using active market quotes, based on our current incremental borrowing rates for similar types of borrowing arrangements, which are Level 2 inputs. Based on the analysis performed, the fair value and the carrying value of our long-term debt as of November 30, 2025 and May 31, 2025, is as follows:

	At November 30, 2025
(In thousands)	Carrying Value		Fair Value
Long-term debt, including current portion	$	2,519,875	$	2,446,201
	At May 31, 2025
(In thousands)	Carrying Value		Fair Value
Long-term debt, including current portion	$	2,646,613	$	2,523,202