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Employee Benefit Plans | 12 Months Ended
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May 31, 2025
Retirement Benefits [Abstract] |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Pension Plans The Company has a defined benefit pension plan (the “UK Pension Plan”) that covers certain employees located in the United Kingdom who meet various eligibility requirements. Benefits are based on years of service and on a percentage of compensation near retirement. The UK Pension Plan is funded by contributions from the Company. The Company’s UK Pension Plan has a measurement date of May 31. Postretirement Benefits The Company provides postretirement benefits to eligible retired United States-based employees (the “US Postretirement Benefits”) consisting of certain healthcare and life insurance benefits. Employees became eligible for these benefits after completing certain minimum age and service requirements. Effective June 1, 2009, the Company modified the terms of the Postretirement Benefits, effectively excluding a large percentage of employees from the plan. The Company’s postretirement benefit plan has a measurement date of May 31. The Medicare Prescription Drug, Improvement and Modernization Act (the “Medicare Act”) introduced a prescription drug benefit under Medicare (“Medicare Part D”) as well as a Federal subsidy of 28% to sponsors of retiree health care benefit plans providing a benefit that is at least actuarially equivalent to Medicare Part D. The Company has determined that the US Postretirement benefits provided to its retiree population are in aggregate the actuarial equivalent of the benefits under Medicare Part D. As a result, in fiscal 2025, 2024 and 2023, the Company recognized a cumulative reduction of its accumulated postretirement benefit obligation of $0.1 due to the Federal subsidy under the Medicare Act. The following table sets forth the weighted average actuarial assumptions utilized to determine the benefit obligations for the UK Pension Plan and the US Postretirement Benefits at May 31:
|  | UK Pension Plan |  | US Postretirement Benefits
|  | 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
Weighted average assumptions used to determine benefit obligations: |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 5.8 | % |  | 5.2 | % |  | 5.4 | % |  | 5.4 | % |  | 5.5 | % |  | 5.3 | %
Rate of compensation increase |  | 3.8 | % |  | 4.1 | % |  | 4.0 | % |  | — |  |  | — |  |  | — |
Weighted average assumptions used to determine net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 5.1 | % |  | 5.5 | % |  | 1.9 | % |  | 5.4 | % |  | 5.2 | % |  | 3.9 | %
Expected long-term return on plan assets |  | 4.9 | % |  | 5.6 | % |  | 4.4 | % |  | — |  |  | — |  |  | — |
Rate of compensation increase |  | 4.1 | % |  | 4.0 | % |  | 4.1 | % |  | — |  |  | — |  |  | — |
To develop the expected long-term rate of return on plan assets assumption for the UK Pension Plan, the Company considers historical returns and future expectations. Considering this information and the potential for lower future returns due to a generally lower interest rate environment, the Company selected an assumed weighted average long-term rate of return on plan assets of 4.9% for the UK Pension Plan. The following table sets forth the change in benefit obligation for the UK Pension Plan and the US Postretirement Benefits at May 31:
|  | UK Pension Plan |  | US Postretirement Benefits
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | 26.7 |  |  | $ | 25.1 |  |  | $ | 7.2 |  |  | $ | 8.0 |
Interest cost |  |  | 1.3 |  |  |  | 1.3 |  |  |  | 0.3 |  |  |  | 0.3 |
Plan participants’ contributions |  |  | — |  |  |  | — |  |  |  | 0.0 |  |  | 0.1
Actuarial losses (gains) |  |  | (2.6) |  |  |  | 0.9 |  |  |  | (0.0) |  |  |  | (0.3) |
Foreign currency translation |  |  | 1.5 |  |  |  | 0.7 |  |  |  | — |  |  |  | — |
Benefits paid, including expenses |  |  | (1.6) |  |  |  | (1.3) |  |  |  | (1.0) |  |  |  | (0.9) |
Benefit obligation at end of year |  | $ | 25.3 |  |  | $ | 26.7 |  |  | $ | 6.5 |  |  | $ | 7.2 |
The net actuarial gain included in the projected benefit obligation for the UK Pension Plan in fiscal 2025 was primarily due to the increase in discount rate and impact of inflation. The net actuarial loss included in the projected benefit obligation for the UK Pension Plan in fiscal 2024 was primarily due to the decrease in discount rate and impact of inflation. There was no net actuarial gain or loss included in the projected benefit obligation for the US Postretirement Benefits in fiscal 2025 as the gain attributable to the updated census data was offset by the loss attributable to the decrease in discount rate. The net actuarial gain included in the projected benefit obligation for the US Postretirement Benefits in fiscal 2024 was primarily attributable to the increase in discount rate and updated census data. The following table sets forth the change in plan assets for the UK Pension Plan at May 31:
|  | UK Pension Plan
|  | 2025 |  | 2024
Change in plan assets: |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 21.4 |  |  | $ | 19.6 |
Actual return on plan assets |  |  | (2.2) |  |  |  | 1.4 |
Employer contributions |  |  | 1.3 |  |  |  | 1.2 |
Benefits paid, including expenses |  |  | (1.6) |  |  |  | (1.3) |
Foreign currency translation |  |  | 1.2 |  |  |  | 0.5 |
Fair value of plan assets at end of year |  | $ | 20.1 |  |  | $ | 21.4 |
The following table sets forth the net funded status of the UK Pension Plan and the US Postretirement Benefits and the related amounts recognized on the Company’s Consolidated Balance Sheets at May 31:
| UK Pension Plan |  | US Postretirement Benefits
| 2025 |  | 2024 |  | 2025 |  | 2024
Current liabilities | $ | — |  |  | $ | — |  |  | $ | (0.9) |  |  | $ | (1.0) |
Noncurrent liabilities |  | (5.2) |  |  |  | (5.3) |  |  |  | (5.6) |  |  |  | (6.2) |
Net funded balance | $ | (5.2) |  |  | $ | (5.3) |  |  | $ | (6.5) |  |  | $ | (7.2) |
The following amounts were recognized in Accumulated other comprehensive income (loss) for the UK Pension Plan and the US Postretirement Benefits on the Company’s Consolidated Balance Sheets at May 31:
| 2025 |  | 2024
|  | UK Pension Plan |  | US Postretirement Benefits |  | Total |  | UK Pension Plan |  | US Postretirement Benefits |  | Total
Actuarial gain (loss) |  | $ | (11.0) |  |  | $ | 1.4 |  |  | $ | (9.6) |  |  | $ | (11.8) |  |  | $ | 1.5 |  |  | $ | (10.3) |
Prior service credit (cost) |  |  | 0.0 |  |  |  | 5.9 |  |  |  | 5.9 |  |  |  | 0.0 |  |  |  | 6.7 |  |  |  | 6.7 |
Amount recognized in Accumulated comprehensive income (loss) net of tax |  |  | (11.0) |  |  |  | 5.5 |  |  |  | (5.5) |  |  |  | (11.8) |  |  |  | 6.2 |  |  |  | (5.6) |
Income tax expense of $1.8, $2.0 and $2.2 were recognized in Accumulated other comprehensive loss at May 31, 2025, 2024 and 2023, respectively. The following table sets forth the projected benefit obligations, accumulated benefit obligations and the fair value of plan assets with respect to the UK Pension Plan as of May 31:
|  | UK Pension Plan
|  | 2025 |  | 2024
Projected benefit obligations |  | $ | 25.3 |  |  | $ | 26.7 |
Accumulated benefit obligations |  |  | 25.2 |  |  |  | 26.7 |
Fair value of plan assets |  |  | 20.1 |  |  |  | 21.4 |
The following table sets forth the net periodic benefit (cost) for the UK Pension Plan and the US Postretirement Benefits for the fiscal years ended May 31:
|  | UK Pension Plan |  | US Postretirement Benefits
|  | 2025 |  | 2024 |  | 2023 |  | 2025 |  | 2024 |  | 2023
Components of net (benefit) cost: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest cost |  | $ | 1.3 |  |  | $ | 1.3 |  |  | $ | 1.0 |  |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 0.3 |
Expected return on assets |  |  | (1.0) |  |  |  | (1.1) |  |  |  | (1.3) |  |  |  | — |  |  |  | — |  |  |  | — |
Amortization of prior service (credit) loss |  |  | 0.0 |  |  |  | 0.0 |  |  |  | 0.0 |  |  |  | (0.8) |  |  |  | (0.8) |  |  |  | (0.8) |
Amortization of net actuarial (gain) loss |  |  | 1.4 |  |  |  | 1.3 |  |  |  | 0.5 |  |  |  | (0.1) |  |  |  | 0.0 |  |  |  | — |
Net periodic (benefit) cost |  | $ | 1.7 |  |  | $ | 1.5 |  |  | $ | 0.2 |  |  | $ | (0.6) |  |  | $ | (0.5) |  |  | $ | (0.5) |
Actuarial gains and losses are amortized using a corridor approach. The gain or loss corridor is equal to 10% of the greater of the projected benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are amortized over the future working lifetime. Plan Assets The Company’s investment policy with regard to the assets in the UK Pension Plan is to actively manage, within acceptable risk parameters, certain asset classes where the potential exists to outperform the broader market. The following table sets forth the total weighted average asset allocations for the UK Pension Plan by asset category at May 31:
|  | UK Pension Plan
|  | 2025 |  | 2024
Debt securities |  | 42.7 | % |  | 37.3 | %
Cash and cash equivalents |  | 4.2 | % |  | 4.1 | %
Liability-driven instruments |  | 37.8 | % |  | 43.5 | %
Other |  | 15.3 | % |  | 15.1 | %
|  | 100.0 | % |  | 100.0 | %
The following table sets forth the targeted weighted average asset allocations for the UK Pension Plan included in the Company’s investment policy:
|  | UK Pension Plan
Debt securities |  | 45 | %
Cash and cash equivalents |  | 0 | %
Liability-driven instruments |  | 45 | %
Other |  | 10 | %
Total |  | 100 | %
The fair values of the Company’s Pension Plan assets are measured using Level 1, Level 2 and Level 3 fair value measurements. The following table sets forth the measurement of the Company’s Pension Plan assets at fair value by asset category at the respective dates:
| Assets at Fair Value as of May 31, 2025
| UK Pension Plan
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 0.8 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.8 |
Pooled, Common and Collective Funds (1) (2) |  | — |  |  |  | 7.6 |  |  |  | — |  |  |  | 7.6 |
Fixed Income (3) |  | — |  |  |  | 8.6 |  |  |  | — |  |  |  | 8.6 |
Annuities |  | — |  |  |  | — |  |  |  | 3.1 |  |  |  | 3.1 |
Total | $ | 0.8 |  |  | $ | 16.2 |  |  | $ | 3.1 |  |  | $ | 20.1 |
| Assets at Fair Value as of May 31, 2024
| UK Pension Plan
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 0.9 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.9 |
Pooled, Common and Collective Funds (1) (2) |  | — |  |  |  | 9.3 |  |  |  | — |  |  |  | 9.3 |
Fixed Income (3) |  | — |  |  |  | 8.0 |  |  |  | — |  |  |  | 8.0 |
Annuities |  | — |  |  |  | — |  |  |  | 3.2 |  |  |  | 3.2 |
Total | $ | 0.9 |  |  | $ | 17.3 |  |  | $ | 3.2 |  |  | $ | 21.4 |
(1) Funds which invest in UK government bonds and bond index-linked investments and interest rate and inflation swaps. There are no restrictions on these investments. (2) Funds which invest in bond index funds available to certain qualified retirement plans but not traded openly on any public exchanges. There are no restrictions on these investments. (3) Funds which invest in a diversified portfolio of publicly traded government bonds, corporate bonds and mortgage-backed securities. There are no restrictions on these investments. The Company has purchased annuities to service fixed payments to certain retired plan participants in the UK. These annuities are purchased from investment grade counterparties. These annuities are not traded on open markets and are therefore valued based upon the actuarial determined valuation, and related assumptions, of the underlying projected benefit obligation, a Level 3 valuation technique. The fair value of these assets was $3.1 and $3.2 at May 31, 2025 and May 31, 2024, respectively. The following table summarizes the changes in fair value of these Level 3 assets for the fiscal years ended May 31, 2025 and 2024:
Balance at May 31, 2023 | $ | 3.3 |
Actual Return on Plan Assets: |  |
Relating to assets held at May 31, 2023 |  | (0.1) |
Relating to assets sold during the year |  | — |
Purchases, sales and settlements, net |  | — |
Transfers in and/or out of Level 3 |  | — |
Foreign currency translation |  | 0.0 |
Balance at May 31, 2024 | $ | 3.2 |
Actual Return on Plan Assets: |  |
Relating to assets held at May 31, 2024 |  | (0.3) |
Relating to assets sold during the year |  | — |
Purchases, sales and settlements, net |  | — |
Transfers in and/or out of Level 3 |  | — |
Foreign currency translation |  | 0.2 |
Balance at May 31, 2025 | $ | 3.1 |
Contributions In Fiscal 2026, the Company expects to make contributions of $0.8 to the UK Pension Plan. Estimated future benefit payments The following table sets forth the expected future benefit payments under the UK Pension Plan and the US Postretirement Benefits by fiscal year:
| UK Pension Plan |  | US Postretirement Benefits
| Pension benefits |  | Benefit payments |  | Medicare subsidy receipts
2026 | $ | 1.5 |  |  | $ | 0.9 |  |  | $ | 0.0 |
2027 |  | 1.5 |  |  |  | 0.8 |  |  |  | 0.0 |
2028 |  | 1.5 |  |  |  | 0.8 |  |  |  | 0.0 |
2029 |  | 1.6 |  |  |  | 0.7 |  |  |  | 0.0 |
2030 |  | 1.6 |  |  |  | 0.7 |  |  |  | 0.0 |
2031 - 2035 |  | 8.7 |  |  |  | 2.6 |  |  |  | 0.1 |
Assumed health care cost trend rates at May 31:
| 2025 |  | 2024
Health care cost trend rate assumed for the next fiscal year | 6.3 | % |  | 6.3 | %
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 5.0 | % |  | 5.0 | %
Year that the rate reaches the ultimate trend rate | 2031 |  | 2030
Defined contribution plans The Company also provides defined contribution plans for certain eligible employees. In the United States, the Company sponsors a 401(k) retirement plan and has contributed $8.4, $8.7 and $8.1 for fiscal years 2025, 2024 and 2023, respectively.

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