Derivative Financial Instruments and Hedging Activities (Tables)

12 Months Ended

May 31, 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 our consolidated balance sheet at May 31, 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	$	1.9
	Other assets		-	Other liabilities		-
Total		$	0.2		$	1.9
Derivatives not designated as hedging instruments:
Commodity contracts	Receivables	$	3.4	Accounts payable	$	2.5
	Other assets		-	Other liabilities		-
Total		$	3.4		$	2.5
Total derivative financial instruments		$	3.6		$	4.4

GAAP permits an entity to present derivative financial instruments assets and liabilities on a net basis on the balance sheet, provided a right of offset exists and/or when they are subject to a master netting arrangement. The Company’s policy is to record derivative financial instruments on a net basis where the Company has an executed master netting arrangement with counterparties as well as where the right of offset exists. The amounts in the table above reflect the fair value of our derivative financial instruments on a net basis, where allowable under master netting arrangements and/or where the right of offset exists. Had these amounts been recognized on a gross basis, the impact would have been a $2.6 million increase in receivables with a corresponding increase in accounts payable.

The following table summarizes the fair value of the derivative financial instruments and the respective lines in which they were recorded in our consolidated 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 our economic (non-designated) derivative financial instruments outstanding at May 31, 2024:

	Notional
(In millions)	Amount		Maturity Date
Commodity contracts	$	22.4	June 2024 – March 2025

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

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

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 AOCI into earnings for derivative financial instruments designated as cash flow hedges during fiscal 2024 and fiscal 2023:

				Location of Gain (Loss)	Gain (Loss) Reclassified
	Gain (Loss)			Reclassified from AOCI	from AOCI into
(In millions)	Recognized in OCI			into Net Earnings	Net Earnings
For the fiscal year ended May 31, 2024:
Commodity contracts		1.6		Cost of goods sold		8.3
Totals	$	1.6			$	8.3
For the fiscal year ended May 31, 2023:
Commodity contracts		(10.1	)	Cost of goods sold		(14.6	)
Totals	$	(10.1	)		$	(14.6	)

Schedule of 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 fiscal 2024 and fiscal 2023:

		Loss
		Recognized in Earnings
		Fiscal Year Ended
	Location of Loss	May 31,
(In millions)	Recognized in Earnings	2024			2023
Commodity contracts	Cost of goods sold	$	(0.4	)	$	(11.7	)
Total		$	(0.4	)	$	(11.7	)

Cash Flow Hedges

Schedule of Summary of Derivative Hedges

The following table summarizes our cash flow hedges outstanding at May 31, 2024:

	Notional
(In millions)	Amount		Maturity Date
Commodity contracts	$	24.5	June 2024 – September 2025

The following table summarizes our cash flow hedges outstanding at May 31, 2023:

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