v3.26.1
Fair Value Measurements
 9 Months Ended
Feb. 28, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note O – Fair Value Measurements

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 or liabilities that the reporting entity can access 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 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 February 28, 2026, our 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)

$

-

 

 

$

1,003

 

 

$

-

 

 

$

1,003

 

Investment in marketable securities (2)

 

3,498

 

 

 

-

 

 

 

-

 

 

 

3,498

 

Total assets

$

3,498

 

 

$

1,003

 

 

$

-

 

 

$

4,501

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Derivative financial instruments (1)

$

-

 

 

$

783

 

 

$

-

 

 

$

783

 

Total liabilities

$

-

 

 

$

783

 

 

$

-

 

 

$

783

 

 

At May 31, 2025, our 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 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 N – Derivative Financial Instruments and Hedging Activities” for additional information regarding our use of derivative financial instruments.
(2)
In exchange for our interest in the divested assets of the composite business of the SES joint venture, we received common shares of both Hexagon Composites and Hexagon Purus, which are recorded at fair value on a recurring basis and included in other assets in the consolidated balance sheet. Unrealized losses of $340 and $1,584, respectively, were recognized within Miscellaneous income (expense), net, during the current year quarter and current year period, as a result of this fair value measurement.

 

Non-Recurring Fair Value Measurements

 

At February 28, 2026, there were no assets measured at fair value on a non-recurring basis on our consolidated balance sheet. See “Note R – Fair Value Measurements” in the 2025 Form 10-K for information regarding non-recurring fair value measurements as of May 31, 2025.

 

The fair value of non-derivative financial instruments included in the carrying amounts of 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 fair value of long-term debt, including current maturities, based upon models utilizing market observable (Level 2) inputs and credit risk, was $287,121 and $263,547 at February 28, 2026 and May 31, 2025, respectively. The carrying amount of long-term debt was $307,256 and $302,868 at February 28, 2026 and May 31, 2025, respectively.