CREDIT LOSSES

6 Months Ended

Nov. 30, 2025

NOTE 2: CREDIT LOSSES

We are exposed to credit losses primarily through our trade receivables. We assess ability to pay for certain customers by conducting a credit review, which considers the customer’s established credit rating and our assessment of creditworthiness. We determine the allowance for credit losses on accounts receivable using a combination of specific reserves for accounts that are deemed to exhibit credit loss indicators and general reserves that are determined using loss rates based on historical write-offs by geography and recent forecast information, including underlying economic expectations. We update our estimate of credit loss reserves quarterly.

Changes in the allowance for credit losses during the periods ended November 30, 2025 and 2024 were as follows:


	Three Months Ended				Six Months Ended
	November 30, 2025		November 30, 2024		November 30, 2025		November 30, 2024
Allowance, beginning of period	$	492	$	408	$	438	$	436
Current period provision for expected credit losses	250		121		469		250
Write-offs charged against allowance	(461)		(364)		(839)		(734)
Recoveries collected	274		220		487		433
Allowance, end of period	$	555	$	385	$	555	$	385