Equity

6 Months Ended

Nov. 30, 2024

Equity [Abstract]

Equity

Note 9 – Equity

In anticipation of the Separation, during the second quarter of fiscal 2024, the Company performed a stock split that resulted in 49.3 million outstanding common shares, all of which were held by the Former Parent at November 30, 2023. For additional information, see “Note 1 – Description of Business, The Separation, Agreements with the Former Parent and Separation Costs, and Basis of Presentation.”

Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in accumulated other comprehensive income (loss) (“AOCI”) for the periods presented:

										Accumulated
	Foreign			Pension						Other
	Currency			Liability			Cash Flow			Comprehensive
(In millions)	Translation			Adjustment			Hedges			Loss
Balance at May 31, 2024	$	(11.9	)	$	8.4		$	(2.6	)	$	(6.1	)
Other comprehensive loss before reclassifications		(2.7	)		(4.0	)		(5.3	)		(12.0	)
Reclassification adjustments to net earnings (1)		-			2.7			5.3			8.0
Income tax effect		-			0.3			-			0.3
Balance at November 30, 2024	$	(14.6	)	$	7.4		$	(2.6	)	$	(9.8	)

									Accumulated
	Foreign			Pension					Other
	Currency			Liability		Cash Flow			Comprehensive
(In millions)	Translation			Adjustment		Hedges			Income (Loss)
Balance at May 31, 2023	$	(10.6	)	$	6.0	$	2.5		$	(2.1	)
Other comprehensive income (loss) before reclassifications		(0.3	)		-		11.4			11.1
Reclassification adjustments to net earnings (1)		-			-		(7.2	)		(7.2	)
Income tax effect		-			-		(1.0	)		(1.0	)
Balance at November 30, 2023	$	(10.9	)	$	6.0	$	5.7		$	0.8

(1)The consolidated and combined statement of earnings classification of amounts reclassified to net income include:

a.Cash flow hedges – See the disclosure in “Note 13 – Derivative Financial Instruments and Hedging Activities”; and

b.Pension liability adjustment – During the second quarter of fiscal 2025, the Company, through its wholly-owned subsidiary, Tempel, purchased (using pension plan assets) an annuity contract from a third-party insurance company to transfer approximately 25% of the total projected benefit obligation of the Tempel Employees Pension Plan as of the purchase date. As a result of this transaction: 1) the Company recognized a non-cash settlement gain of $2.7 million within miscellaneous income (expense), net; 2) the Company was relieved of all responsibility for these pension obligations; and 3) the insurance company is now required to pay and administer the retirement benefits owed to 472 beneficiaries.