Fair Value

6 Months Ended

Nov. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value

Note 14 – Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is an exit price concept that assumes an orderly transaction between willing market participants and is required to be based on assumptions that market participants would use in pricing an asset or a liability. Current accounting guidance establishes a three-tier fair value hierarchy as a basis for considering such assumptions and for classifying the inputs used in the valuation methodologies. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets and liabilities that the reporting entity can assess at the measurement date.

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs for the asset or liability, and includes situations where there is little, if any, market activity for the asset or liability and that are significant to the fair value of the assets and liabilities (i.e., allowing for situations in which there is little or no market activity for the asset or liability at the measurement date).

Recurring Fair Value Measurements

At November 30, 2025, the Company’s assets and liabilities measured at fair value on a recurring basis were as follows:

(In millions)	Level 1		Level 2		Level 3		Totals
Assets
Derivative financial instruments (1)	$	-	$	3.4	$	-	$	3.4
Total assets	$	-	$	3.4	$	-	$	3.4
Liabilities
Derivative financial instruments (1)	$	-	$	1.3	$	-	$	1.3
Total liabilities	$	-	$	1.3	$	-	$	1.3

(1)The fair value of the Company’s derivative financial 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 13 – Derivative Financial Instruments and Hedging Activities” for additional information regarding the use of derivative financial instruments.

There were no transfers between Level 1 and Level 2 and no transfers in or out of Level 3 during the three months ended November 30, 2025.

At May 31, 2025, the Company’s assets and liabilities measured at fair value on a recurring basis were as follows:

(In millions)	Level 1		Level 2		Level 3		Totals
Assets
Derivative financial instruments (1)	$	-	$	5.6	$	-	$	5.6
Total assets	$	-	$	5.6	$	-	$	5.6
Liabilities
Derivative financial instruments (1)	$	-	$	3.7	$	-	$	3.7
Total liabilities	$	-	$	3.7	$	-	$	3.7

(1)The fair value of the Company’s derivative financial 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 13 – Derivative Financial Instruments and Hedging Activities” for additional information regarding the use of derivative financial instruments.

Non-Recurring Fair Value Measurements

At November 30, 2025, the Company’s assets measured at fair value on a non-recurring basis were as follows:

(In millions)	Level 1		Level 2		Level 3		Totals
Assets
Long-lived assets held and used (1)	$	-	$	-	$	0.5	$	0.5
Total assets	$	-	$	-	$	0.5	$	0.5

(1)During the second quarter of fiscal 2026, the net asset value on certain machinery at the manufacturing facility in Taylor, Michigan was lowered to $0.5 million based on prices for similar assets. Refer to “Note 1– Description of Business and Basis of Presentation” for additional information.

At May 31, 2025, the Company’s assets measured at fair value on a non-recurring basis were as follows:

(In millions)	Level 1		Level 2		Level 3		Totals
Assets
Long-lived assets held for sale (1)	$	-	$	-	$	10.4	$	10.4
Total assets	$	-	$	-	$	10.4	$	10.4

(1)During the third quarter of fiscal 2025, the Company announced plans to combine WSCP’s Cleveland, Ohio toll processing manufacturing facility into its existing manufacturing facility in Twinsburg, Ohio. At that time, the Company determined there was no impairment related to finance lease assets along with certain other fixed assets encumbered to the land and building of the finance lease assets. Certain machinery and equipment fixed assets and other long-lived assets were written down to their estimated fair value of $1.3 million based on estimated replacement costs and/or prices for similar assets. During the fourth quarter of fiscal 2025, the Company transferred the remaining $10.4 million to assets held for sale, which represented the remaining net assets prior to the held for sale criteria being met. The assets held for sale are expected to be disposed of primarily by sales within the next twelve months.

The fair value of non-derivative financial instruments, including cash and cash equivalents, receivables, income taxes receivable, other assets, accounts payable, accrued compensation, contributions to employee benefit plans and related taxes, other accrued items, income taxes payable and other liabilities, approximate carrying value due to their short-term nature.

The carrying value of the Credit Facility was $110.0 million and $149.2 million at November 30, 2025 and May 31, 2025, respectively, and relates to the Credit Facility, which due to its short-term nature, approximates fair value.

The following table provides a summary of the carrying value and estimated fair value of the Company’s outstanding debt, excluding the Credit Facility, reported on the balance sheets within total liabilities as of the dates presented:

	November 30,		May 31,
(In millions)	2025		2025
Carrying Value	$	72.1	$	2.3
Fair Value, estimated (1)		72.4		2.8

(1)The estimated fair value of long-term debt, including current maturities, was calculated based upon models utilizing market observable (Level 2) inputs and credit risk. For long-term variable rate debt, the carrying amount approximates fair value as the variable rates reset frequently at market rates. For the current maturities of long-term debt for fixed rate debt, the carrying amount approximates fair value due to its short-term nature.