Variable Interest Entities

6 Months Ended

Nov. 30, 2019

Variable Interest Entities [Abstract]

Variable Interest Entities

Variable Interest Entities

The Company has long-term notes receivable with a third-party owned dealer that are deemed to be variable interests in a variable interest entity. The carrying value of these long-term notes receivable was $1.5 million and $1.6 million as of November 30, 2019 and June 1, 2019, respectively, and represents the Company’s maximum exposure to loss. The Company is not deemed to be the primary beneficiary of the variable interest entity as the entity controls the activities that most significantly impact the entity’s economic performance, including sales, marketing, and operations.