Fair Value Measurements (Tables)

12 Months Ended

May 31, 2025

Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis

At May 31, 2025, our financial assets and liabilities measured at fair value on a recurring basis were as follows:


	Level 1		Level 2		Level 3		Totals
Assets
Derivative financial instruments (1)	$	-	$	1,042	$	-	$	1,042
Total assets	$	-	$	1,042	$	-	$	1,042

Liabilities
Derivative financial instruments (1)	$	-	$	7,461	$	-	$	7,461
Total liabilities	$	-	$	7,461	$	-	$	7,461

(1)

The fair value of our derivative financial instruments was 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 Q – Derivative Instruments and Hedging Activities” for additional information regarding our use of derivative financial instruments.

At May 31, 2024, our financial assets and liabilities measured at fair value on a recurring basis were as follows:


	Level 1		Level 2		Level 3		Totals
Assets
Derivative financial instruments (1)	$	-	$	920	$	-	$	920
Total assets	$	-	$	920	$	-	$	920

Liabilities
Derivative financial instruments (1)	$	-	$	1,421	$	-	$	1,421
Total liabilities	$	-	$	1,421	$	-	$	1,421

(1)

Assets Measured at Fair Value on Non-Recurring Basis

At May 31, 2025, our assets measured at fair value on a non-recurring basis were categorized as follows:


	Level 1		Level 2		Level 3		Totals
Assets
Long-lived assets held for use (1)	$	-	$	-	$	9,322	$	9,322
Investment in unconsolidated affiliate (2)		-		-		26,225		26,225
Investment in notes receivable (3)		-		-		-		-
Total assets	$	-	$	-	$	35,547	$	35,547

(1)

During the fourth quarter of fiscal 2025, impairment indicators were identified related to the intangible assets of GTI. The recoverability of the associated asset group was assessed using projected future cash flows, which were determined to be less than the asset group’s net book value. In accordance with applicable accounting guidance, the intangible assets were written down to their fair market value of $9,322, resulting in an impairment charge of $50,050. Refer to “Note D – Goodwill and Other Long-Lived Assets” for additional information.

(2)

Represents our minority ownership interest in the Sustainable Energy Solutions joint venture, which recognized a non-cash impairment charge during the fourth quarter of fiscal 2025. Refer to “Note C – Investments in Unconsolidated Affiliates” for additional information.

(3)

Reflects the full write-down of an investment in notes receivable that was determined to be other than temporarily impaired.

At May 31, 2024, our assets measured at fair value on a non-recurring basis were categorized as follows:


	Level 1		Level 2		Level 3		Totals
Assets
Investment in unconsolidated affiliate (1)	$	-	$	-	$	31,367	$	31,367
Investment in notes receivable (2)		-		5,000		-		5,000
Total assets	$	-	$	-	$	31,367	$	31,367

(1)

On May 29, 2024, in connection with the contribution of the net assets of the Sustainable Energy Solutions business to the newly-formed Sustainable Energy Solutions joint venture, we obtained a 49% minority ownership interest. In accordance with the applicable accounting guidance, our minority ownership interest in the Sustainable Energy Solutions joint venture was recorded at its acquisition date fair value of $31,367.

(2)

Reflects the write-down of an investment in notes receivable that was determined to be other than temporarily impaired.