Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows:

The carrying amounts of the Company’s financial instruments other than cash equivalents and marketable securities, which include accounts receivable and accounts payable, approximate fair value based on either their short maturity or current terms for similar instruments.

The Company has marketable securities held by banks or broker-dealers consisting of commercial paper and corporate bonds. These securities are recorded at fair value based on recent trades or pricing models and therefore meet the Level 2 criteria. For further information, refer to Note 1. "Summary of Significant Accounting Policies".

The Company forecasts its net exposure in various receivables and payables to fluctuations in the value of various currencies, and has entered into a number of foreign currency forward contracts each month to mitigate that exposure. These contracts are recorded net at fair value on our consolidated balance sheets, classified as Level 2 in the fair value hierarchy.

Gains and losses from these foreign currency forward contracts are recognized in other (expense) income in our consolidated statements of operations. The notional amount of forward contracts in place was $70,315 and $15,500 as of May 31, 2024 and 2023, respectively, and consisted of foreign currency hedges of transactions up to July 2024.


Fair Value of Derivatives Not Designated as Hedging Instruments	Balance Sheet Location	May 31, 2024			May 31, 2023
Foreign currency forward contracts, net	Prepaid expenses and other current assets (Other current liabilities)	$	(265	)	$	140

We record the fair value of our interest rate swaps on a recurring basis using Level 2 observable market inputs for similar assets or liabilities in active markets.


Fair Value of Derivatives Designated as Hedging Instruments	Balance Sheet Location	May 31, 2024		May 31, 2023
Interest rate swaps – current	Other current assets	$	2,222	$	2,087
Interest rate swaps – non-current	Other non-current assets (liabilities)		229		(4,770	)

In addition to items that are measured at fair value on a recurring basis, the Company measures certain assets and liabilities at fair value on a nonrecurring basis, which are not included in the table above. As these nonrecurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. For further information see Note 5. "Goodwill and Other Intangible Assets" and Note 6 “Business Combinations”.

Fair values of the Company’s Term Loan and Senior Notes were as follows:


	May 31, 2024
Aggregate fair value		923,170
Aggregate carrying value (1)		900,000

(1) Excludes unamortized debt issuance costs.

Fair values were based on available market information and other observable data and are classified within Level 2 of the fair value hierarchy.

The location and amount of gains from derivatives not designated as hedging instruments in our consolidated statements of operations were as follows:


	Location in statements	Year Ended May 31,
Derivatives Not Designated as Hedging Instruments	of (loss) income	May 31, 2024		May 31, 2023			May 31, 2022
Foreign currency forward contracts	Other (expense) income	$	88	$	(10,092	)	$	1,218

In November 2022, we entered into a receive-variable, pay-fixed interest rate swap agreement with a $250,000 notional value, which is designated as a cash flow hedge. This agreement fixed a portion of the variable interest due on our term loan facility, with an effective date of December 2, 2022 and a maturity date of June 30, 2027. Under the terms of the agreement, we pay a fixed interest rate of 4.215% plus an applicable margin ranging between 150 to 225 basis points and receive a variable rate of interest based on term SOFR from the counterparty, which is reset according to the duration of the SOFR term. The fair value of the interest rate swap as of May 31, 2024 was a net asset of $2,452. The Company expects to reclassify a $1,689 gain of accumulated other comprehensive (loss) income into earnings in the next 12 months. As of May 31, 2024 and 2023, the amounts recorded in accumulated other comprehensive (loss) income were $1,864 and ($2,039), respectively.

The following table summarizes the other comprehensive (loss) income before reclassifications of derivative gains and losses:


	Other Comprehensive Income (Loss) Before Reclassifications
	Year Ended May 31,
Derivatives Designated as Hedging Instruments	2024		2023			2022
Interest rate swaps	$	6,184	$	(1,599	)	$	—

The following table summarizes the reclassification of derivative gains and losses into net (loss) income from accumulated other comprehensive (loss) income:


		Gain (Loss) Reclassified
	Location of Gain	Year Ended May 31,
Derivatives Designated as Hedging Instruments	Reclassified	2024		2023		2022
Interest rate swaps	Interest expense	$	2,281	$	440	$	—