Fair Value Measurements (Tables)

12 Months Ended

May 31, 2026

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

At May 31, 2026, 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)	$	-	$	8.6	$	-	$	8.6
Equity Securities (2)		122.2		-		-	$	122.2
Total assets	$	122.2	$	8.6	$	-	$	130.8

Liabilities
Derivative financial instruments (1)	$	-	$	6.1	$	-	$	6.1
Total liabilities	$	-	$	6.1	$	-	$	6.1

(1)

The fair value of the Company’s 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 16 – Derivative Financial Instruments and Hedging Activities” for additional information regarding the use of derivative financial instruments.

(2)

The fair value of the Company’s equity securities instruments is based upon quoted market prices in active markets.

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)

Assets Measured at Fair Value on Non-Recurring Basis

At May 31, 2026, 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, intangible assets, and other assets - Electrical Steel (1)	$	-	$	-	$	76.8	$	76.8
Long-lived assets held and used - Taylor (2)		-		-		0.5		0.5
Total assets	$	-	$	-	$	77.3	$	77.3

(1)

During fiscal 2026, the Company measured the fair values of certain long-lived asset groups and the Electrical Steel reporting unit in connection with the impairment analyses performed. These fair value measurements were classified within Level 3 of the fair value hierarchy because they included significant unobservable inputs. The fair values of the affected long-lived asset groups were determined using a discounted cash flow method, market approach, cost approach, or combination thereof, which included significant unobservable inputs. The affected long-lived asset groups were written down to the estimated fair value of $76.8 million. The fair value of the Electrical Steel reporting unit was estimated using an income approach based on discounted projected cash flows. Based on the results of the quantitative impairment test, the carrying amount of the Electrical Steel reporting unit exceeded its estimated fair value. The impairment was measured as the excess of the reporting unit’s carrying amount over its estimated fair value, limited to the carrying amount of goodwill assigned to the Electrical Steel reporting unit. The carrying amount of the goodwill of the Electrical Steel reporting unit was fully impaired. Refer to “Note 5 – Goodwill, Long-Lived Assets, and Other Assets” for additional information regarding the valuation methodology, significant unobservable inputs and impairment charges recognized.

(2)

During fiscal 2026, the net asset value of certain machinery at the manufacturing facility in Taylor, Michigan was lowered to $0.5 million based on prices for similar assets. Refer to “Note 5 – Goodwill, Long-Lived Assets, and Other Assets” 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.

Summary of Carrying Value and Estimated Fair Value of Outstanding Debt, Excluding Credit Facility

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 at May 31, 2026, and May 31, 2025, respectively.


(In millions)	2026		2025
Carrying Value	$	71.4	$	2.3
Fair Value, estimated (1)		71.8		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.