Company: KEQU
Filing Date: 2025-09-12
Form Type: 10-Q
Source: 0000055529-25-000040
Chunk: 43

Company: KEWAUNEE SCIENTIFIC CORP /DE/
Filing Date: 2025-09-12
Form: 10-Q
Item: Part I, Item 8
Chunk 43
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 receivables on the Condensed Consolidated Balance Sheets. Receivables are recorded when the right to consideration becomes unconditional and the Company has a right to invoice the customer. Deferred revenue relates to payments received in advance of performance under the contract. Deferred revenue is recognized as revenue as (or when) the Company performs under the contract. Approximately 40% and 100% of the contract liability balances at April 30, 2025 and July 31, 2025, respectively, are expected to be recognized as revenue during the respective succeeding 12 months, with the remaining balance primarily related to international operations, which generally have longer delivery and collection cycles.

E. Inventories

The Company measures inventories using the first-in, first-out method at the lower of cost or net realizable value. Inventories consisted of the following (in thousands): July 31, 2025April 30, 2025Finished products$6,056 $5,543 Work in process6,827 3,784 Raw materials22,040 23,522 Total$34,923 $32,849 The Company's International subsidiaries' inventories were $2,703,000 at July 31, 2025 and $2,845,000 at April 30, 2025 and are included in the above tables.

10

F. Fair Value of Financial Instruments

The Company's financial instruments consist primarily of cash and equivalents, mutual funds, a sale-leaseback financing liability, term loans, and short-term borrowings. The carrying value of these assets and liabilities approximates their fair value. The following tables summarize the Company's fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of July 31, 2025 and April 30, 2025 (in thousands): July 31, 2025Financial AssetsLevel 1Level 2TotalTrading securities held in non-qualified compensation plans (1)$2,340 $— $2,340 Cash surrender value of life insurance policies (1)— 1,514 1,514 Total$2,340 $1,514 $3,854 Financial LiabilitiesNon-qualified compensation plans (2)$— $4,334 $4,334 Total$— $4,334 $4,334  April 30, 2025Financial AssetsLevel 1Level 2TotalTrading securities held in non