XML 28 R23.htm IDEA: XBRL DOCUMENT
v3.23.4

Derivatives | 6 Months Ended
--- | ---
Nov. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | 13. DERIVATIVES Derivatives Not Designated as Hedging Instruments We forecast our net exposure in various receivables and payables to fluctuations in the value of various currencies, and have entered into a number of foreign currency forward contracts each month to mitigate that exposure. These contracts are recorded net at fair value on our condensed consolidated balance sheets, classified as Level 2 in the fair value hierarchy. Gains and losses from these contracts are recognized in other income in our condensed consolidated statements of operations. The notional amount of forward contracts in place was $65,041 and $15,500 as of November 30, 2023 and May 31, 2023, respectively, and consisted of hedges of transactions up to January 2024.
Fair Value of Derivatives Not Designated as Hedging Instruments |  | Balance Sheet Location |  | November 30, 2023 |  |  | May 31, 2023 |
Foreign currency forward contracts, net |  | Other (payable) receivable |  | $ | (389 | ) |  | $ | 140 |
The location and amount of gains (losses) from derivatives not designated as hedging instruments in our condensed consolidated statements of operations were as follows:
|  |  |  | Three Months Ended |
Derivatives Not Designated as Hedging Instruments |  | Location in statements of operations |  | November 30, 2023 |  |  | November 30, 2022 |
Foreign currency forward contracts |  | Other expense |  | $ | (221 | ) |  | $ | (9,128 | )
|  |  | Six Months Ended |
Derivatives Not Designated as Hedging Instruments |  | Location in statements of operations |  | November 30, 2023 |  |  | November 30, 2022 |
Foreign currency forward contracts |  | Other expense |  | $ | (541 | ) |  | $ | (8,248 | )
Derivatives Designated as Hedging Instruments In November 2022, we entered into a receive-variable, pay-fixed interest rate swap agreement with an initial $250,000 notional value, which is designated as a cash flow hedge. This agreement fixed a portion of the variable interest due on our term loan facility, with an effective date of December 2, 2022 and a maturity date of June 30, 2027. Under the terms of the agreement, we pay a fixed interest rate of 4.215%, plus an applicable margin ranging between 150 to 225 basis points and receive a variable rate of interest based on term SOFR from the counterparty, which is reset according to the duration of the SOFR term. The fair value of the interest rate swap as of November 30, 2023 and May 31, 2023 was a net asset (liability) of $745 and ($2,683), respectively. The Company expects to reclassify a $2,265 gain of accumulated other comprehensive income into earnings in the next 12 months. We record the fair value of our interest rate swaps on a recurring basis using Level 2 observable market inputs for similar assets or liabilities in active markets.
Fair Value of Derivatives Designated as Hedging Instruments |  | Balance Sheet Location |  | November 30, 2023 |  |  | May 31, 2023 |
Interest rate swap – current |  | Other current assets |  | $ | 2,265 |  |  | $ | 2,087 |
Interest rate swap – non-current |  | Other non-current liabilities |  |  | (1,521 | ) |  |  | (4,770 | )
The following table summarizes the other comprehensive income before reclassifications of derivative gains and losses:
|  | Other Comprehensive Income Before Reclassifications During |
|  | Three Months Ended |  | Six Months Ended |
Derivatives Designated as Hedging Instruments |  | November 30, 2023 |  |  | November 30, 2022 |  | November 30, 2023 |  |  | November 30, 2022 |
Interest rate swaps |  | $ | 229 |  |  | $ | (2,428 | ) | $ | 3,708 |  |  | $ | (2,428 | )
The following table summarizes the reclassification of derivative gains and losses into net loss from accumulated other comprehensive income (loss):
|  |  |  | Gain Reclassified During |
|  |  |  | Three Months Ended |  |  | Six Months Ended |
Derivatives Designated as Hedging Instruments |  | Location of Gain Reclassified |  | November 30, 2023 |  |  | November 30, 2022 |  |  | November 30, 2023 |  |  | November 30, 2022 |
Interest rate swaps |  | Interest expense |  | $ | 580 |  |  | $ | — |  |  | $ | 1,103 |  |  | $ | — |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration