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Fair Value and Derivatives | 12 Months Ended
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May 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Fair Value and Derivatives | 12. Fair Value and Derivatives Fair Value of Financial Instruments Fair value measurements are determined based upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants exclusive of any transaction costs. The Company utilizes a fair value hierarchy based upon the observability of inputs used in valuation techniques as follows:
Level 1: | Observable inputs such as quoted prices in active markets;
Level 2: | Inputs, other than quoted prices in active markets, that are observable either directly or indirectly; and
Level 3: | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.
Accounts receivable and accounts payable are carried at amounts that approximate fair value due to their short-term maturities. The estimated fair values of these instruments would be classified within Level 2 of the fair value hierarchy, as the valuation is based on observable market inputs. Cash equivalents are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices for identical assets. Derivatives Not Designed as Hedging Instruments We have entered into non-designated foreign currency forward contracts to manage balance sheet foreign currency risk associated with intercompany loans and other foreign currency denominated assets and liabilities. These contracts, classified as Level 2 in the fair value hierarchy are recorded net at fair value on our consolidated balance sheets, and the related gains and losses are recognized in other, net. The notional amount of forward contracts in place was $65.5 million as of May 31, 2025. There were no forward contracts in place as of May 31, 2026.
Fair Value of Derivatives Not Designated as Hedging Instruments |  | Balance Sheet Location |  | May 31, 2026 |  |  | May 31, 2025 |
Foreign currency forward contracts, net |  | Other current liabilities |  | $ | (0.1 | ) |  | $ | 0.4 |
The location and amount of gains (loss) from derivatives not designated as hedging instruments in our consolidated statements of operations were as follows:
Derivatives Not Designated as Hedging Instruments |  | Location in statements of operations |  | May 31, 2026 |  |  | May 31, 2025 |  |  | May 31, 2024 |
Foreign currency forward contracts |  | Other, net |  | $ | (0.8 | ) |  | $ | 0.5 |  |  | $ | 0.1 |
Derivatives Designed as Hedging Instruments We have entered into a receive-variable, pay-fixed interest rate swap agreement with a $200.0 million notional value, which is designated as a cash flow hedge. This cash flow hedge 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 137.5 to 175 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 Company expects to reclassify a $0.5 million loss 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 |  | May 31, 2026 |  |  | May 31, 2025 |
Interest rate swaps – current |  | Other current liabilities |  | $ | (0.6 | ) |  | $ | (0.4 | )
Interest rate swaps – non-current |  | Other non-current liabilities |  | $ | — |  |  | $ | (1.3 | )
Items Measured at Fair Value on a Nonrecurring Basis In addition to items that are measured at fair value on a recurring basis, the Company measures certain assets and liabilities at fair value on a nonrecurring basis, which are not included in the table above. As these nonrecurring fair value measurements are generally determined using unobservable inputs, these fair value measurements are classified within Level 3 of the fair value hierarchy. Items Not Carried at Fair Value Fair values of the Company’s Term Loan and Senior Notes were as follows:
|  | Year Ended May 31, |
|  | 2026 |  |  | 2025 |
Aggregate fair value |  |  | 815.5 |  |  |  | 914.9 |
Aggregate carrying value (1) |  |  | 800.0 |  |  |  | 900.0 |
(1) Excludes unamortized debt issuance costs. Fair values were based on available market information and other observable data and are classified within Level 1 of the fair value hierarchy.

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