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Sale and Leaseback Transactions | 9 Months Ended
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Feb. 28, 2026
Discontinued Operations and Disposal Groups [Abstract] |
Sale and Leaseback Transactions | SALE AND LEASEBACK TRANSACTIONS On December 17, 2025, the Company completed the sale of its headquarters location at 555-557 Broadway in New York, NY (SoHo) for a sales price of $386.0 and its primary distribution facility in Jefferson City, MO for a sales price of $95.0. Concurrent with these sales, the Company entered into a 15-year lease for a portion of its headquarters building ("SoHo lease") and a 20-year lease for the distribution facility ("Jefferson City lease"), both with two 10-year renewal options. The Company determined that these transactions met the requirements for sale accounting in accordance with ASC 842, Leases, and qualified as a sale in accordance with ASC 606, Revenue from Contracts with Customers, as control of the assets transferred to the buyer-lessors. The Company concluded that both the sales price and leaseback payments for these transactions were at fair value. The assets related to these properties were included in Overhead and had a net carrying value on the date of sale of $334.2. These assets were classified as held for sale as of November 30, 2025, with minor adjustments recorded during the quarter ended February 28, 2026. The Company recognized a total pre-tax gain of $118.2, inclusive of transaction costs incurred during the three months ended November 30, 2025, which is included in Gain on sale and leaseback transactions within the Company's Condensed Consolidated Statement of Operations for the three and nine months ended February 28, 2026, and pre-tax net proceeds of $452.4. The following table presents the carrying value of the assets and liabilities by major asset class for each disposal group as of the date of the sale:
| SoHo Headquarters |  | Jefferson City Distribution Facility |  | Total
Land | $ | 67.9 |  |  | $ | 4.6 |  |  | $ | 72.5 |
Building and improvements |  | 240.7 |  |  |  | 10.8 |  |  |  | 251.5 |
Furniture, fixtures and equipment |  | 1.0 |  |  |  | 0.1 |  |  |  | 1.1 |
Prepaid expenses and other current assets (1) |  | 2.3 |  |  |  | — |  |  |  | 2.3 |
Other assets and deferred charges (1) |  | 25.2 |  |  |  | — |  |  |  | 25.2 |
Total Assets | $ | 337.1 |  |  | $ | 15.5 |  |  | $ | 352.6 |
Deferred tax liabilities | $ | 17.5 |  |  | $ | 0.9 |  |  | $ | 18.4 |
Total Liabilities | $ | 17.5 |  |  | $ | 0.9 |  |  | $ | 18.4 |
Net Carrying Value | $ | 319.6 |  |  | $ | 14.6 |  |  | $ | 334.2 |
(1) Includes current and noncurrent deferred lease income and deferred lease costs.
ASC 842 provides a practical expedient that permits the combination of lease and non-lease components in the measurement of right-of-use ("ROU") assets and lease liabilities. The practical expedient is applied as an accounting policy election by class of underlying assets. As a result of entering into the SoHo lease, the Company established a new class of underlying assets, corporate headquarters, and elected not to apply the practical expedient for this class. As a result, only the portion of consideration attributed to the lease component is included in the measurement of the related ROU asset and lease liability. The non-lease components included in the SoHo lease, primarily consisting of common‑area maintenance, utilities, insurance, real estate taxes and other operating costs, were estimated using historical cost information from the period in which the Company owned and operated the building prior to entering into the lease. The Company believes that these historical operating costs reasonably approximate the expected stand‑alone prices of the non‑lease components under the new lease arrangement. The SoHo and Jefferson City leases are classified as operating leases in accordance with ASC 842. The initial annual base rent for the SoHo lease is $11.7, excluding estimated non-lease components, and escalates approximately 4% annually. The initial annual base rent for the Jefferson City lease is $6.9 and escalates 1% to 4% annually based on the Consumer Price Index. The Company recorded an initial ROU asset and lease liability related to the SoHo and Jefferson City leases of $113.8 and $62.2, respectively. The operating lease cost associated with these leases is approximately $23.7 annually. The lease measurement is based on the initial lease term as the Company is not reasonably certain to exercise the renewal options. The Company used an incremental borrowing rate of 10.4% to measure the lease liabilities. In developing this rate, the Company considered its credit profile, including its higher leverage position at the time of the sale and leaseback transactions, observable market yields on secured and unsecured borrowings, interest‑rate spreads for comparable companies and transactions, and the longer lease terms. Refer to Note 12, Leases, for further details regarding the impact of these transactions.

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- Definition The entire disclosure for sale leaseback transaction. Includes, but is not limited to, terms and conditions of transaction and gain (loss) from transaction. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 840 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/840-40/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 40 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-40/tableOfContent + Details
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