Fair Value Measurements (Tables)

12 Months Ended

May 31, 2026

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

At May 31, 2026, 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)	$	-	$	1,364	$	-	$	1,364
Investments in marketable securities (2)		4,057		-		-		4,057
Total assets	$	4,057	$	1,364	$	-	$	5,421

Liabilities
Derivative financial instruments (1)	$	-	$	1,257	$	-	$	1,257
Total liabilities	$	-	$	1,257	$	-	$	1,257

(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.

(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 in October 2025. These marketable securities are recorded at fair value on a recurring basis through miscellaneous expense, net, and included in other assets in the consolidated balance sheet. An unrealized loss of $975 was recognized during fiscal 2026, as a result of this fair value measurement.

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)

Assets Measured at Fair Value on Non-Recurring Basis

At May 31, 2026, there were no assets measured at fair value on a non-recurring basis on our consolidated balance sheet.

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 SES 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.