Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

Feb. 29, 2024

Schedule of Fair Value of Derivative Instruments

The following table summarizes the fair value of the derivative financial instruments and the respective lines in which they were recorded in the consolidated and combined balance sheet at February 29, 2024:

	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
(In millions)	Location	Value		Location	Value
Derivatives designated as hedging instruments:
Commodity contracts	Receivables	$	0.2	Accounts payable	$	3.7
	Other assets		-	Other liabilities		-
Total		$	0.2		$	3.7
Derivatives not designated as hedging instruments:
Commodity contracts	Receivables	$	3.7	Accounts payable	$	5.4
	Other assets		-	Other liabilities		-
Total		$	3.7		$	5.4
Total derivative financial instruments		$	3.9		$	9.1

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

	Asset Derivatives			Liability Derivatives
	Balance			Balance
	Sheet	Fair		Sheet	Fair
(In millions)	Location	Value		Location	Value
Derivatives designated as hedging instruments:
Commodity contracts	Receivables	$	-	Accounts payable	$	2.7
	Other assets		0.1	Other liabilities		0.1
Total		$	0.1		$	2.8
Derivatives not designated as hedging instruments:
Commodity contracts	Receivables	$	2.2	Accounts payable	$	7.0
	Other assets		-	Other liabilities		-
Total		$	2.2		$	7.0
Total derivative financial instruments		$	2.3		$	9.8

Schedule of Summary of Derivative Hedges

The following table summarizes the Company’s economic (non-designated) derivative financial instruments outstanding at February 29, 2024:

	Notional
(In millions)	Amount		Maturity Date(s)
Commodity contracts	$	37.3	March 2024 – February 2025

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

	Notional
(In millions)	Amount		Maturity Date(s)
Commodity contracts	$	2.4	June 2023 – December 2024

The following table summarizes the loss recognized in earnings for economic (non-designated) derivative financial instruments for the periods presented:

		Loss Recognized
		In Earnings for the
		Three Months Ended
	Location of Loss	February 29,			February 28,
(In millions)	Recognized in Earnings	2024			2023
Commodity contracts	Cost of goods sold	$	(2.1	)	$	(10.8	)
Total		$	(2.1	)	$	(10.8	)

		Loss Recognized
		in Earnings for the
		Nine Months Ended
	Location of Loss	February 29,			February 28,
(In millions)	Recognized in Earnings	2024			2023
Commodity contracts	Cost of goods sold	$	(1.3	)	$	(14.6	)
Total		$	(1.3	)	$	(14.6	)

Cash Flow Hedges

Schedule of Summary of Derivative Hedges

The following table summarizes the Company’s cash flow hedges outstanding at February 29, 2024:

	Notional
(In millions)	Amount		Maturity Date
Commodity contracts	$	40.7	March 2024 – December 2024

The following table summarizes the Company’s cash flow hedges outstanding at May 31, 2023:

	Notional
(In millions)	Amount		Maturity Date
Commodity contracts	$	53.0	June 2023 – September 2024

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

(In millions)	Gain (Loss) Recognized in OCI			Location of Gain (Loss) Reclassified from AOCI into Net Earnings	Gain (Loss) Reclassified from AOCI into Net Earnings
For the three months ended February 29, 2024:
Commodity contracts	$	(8.6	)	Cost of goods sold	$	0.1
Total	$	(8.6	)		$	0.1
For the three months ended February 28, 2023:
Commodity contracts	$	26.0		Cost of goods sold	$	(6.1	)
Total	$	26.0			$	(6.1	)
For the nine months ended February 29, 2024:
Commodity contracts	$	2.7		Cost of goods sold	$	7.3
Total	$	2.7			$	7.3
For the nine months ended February 28, 2023:
Commodity contracts	$	4.7		Cost of goods sold	$	(13.3	)
Total	$	4.7			$	(13.3	)