Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Feb. 28, 2015 | |
Document and Entity Information | |
Entity Registrant Name | AAR CORP |
Entity Central Index Key | 1750 |
Document Type | 10-Q |
Document Period End Date | 28-Feb-15 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -26 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 39,816,105 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q3 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Feb. 28, 2015 | 31-May-14 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $67 | $89.20 |
Accounts receivable, less allowances of 5.8 and $6.2, respectively | 249.6 | 283.1 |
Inventories | 451 | 495.3 |
Rotable spares and equipment on or available for short-term lease | 139.9 | 137.6 |
Assets of discontinued operations | 529.3 | |
Deposits, prepaids and other | 39.6 | 81.6 |
Deferred tax assets | 18.5 | 30.1 |
Total current assets | 1,494.90 | 1,116.90 |
Property, plant and equipment, net of accumulated depreciation of $371.4 and $424.3, respectively | 247.4 | 314.9 |
Other assets: | ||
Goodwill | 123.6 | 261.7 |
Intangible assets, net of accumulated amortization of $21.6 and $36.2, respectively | 38 | 165.4 |
Equipment on or available for long-term lease | 110.8 | 98.4 |
Capitalized program development costs | 112.2 | |
Investment in joint ventures | 27.3 | 29.9 |
Other | 91.8 | 100.1 |
Total other assets | 391.5 | 767.7 |
Total assets | 2,133.80 | 2,199.50 |
Current liabilities: | ||
Current maturities of long-term debt | 43.9 | 69.7 |
Accounts and trade notes payable | 164.6 | 171.1 |
Accrued liabilities | 125 | 161.3 |
Liabilities of discontinued operations | 57.3 | |
Total current liabilities | 390.8 | 402.1 |
Long-term debt, less current maturities | 599.4 | 564.3 |
Deferred tax liabilities | 139.1 | 162.2 |
Other liabilities and deferred income | 62.7 | 70.2 |
Total noncurrent liabilities | 801.2 | 796.7 |
Equity: | ||
Preferred stock, $1.00 par value, authorized 250,000 shares; none issued | ||
Common stock, $1.00 par value, authorized 100,000,000 shares; issued 44,953,514 and 44,674,186 shares at cost, respectively | 45 | 44.7 |
Capital surplus | 442.2 | 436.4 |
Retained earnings | 632.2 | 646 |
Treasury stock, 5,137,409 and 5,113,939 shares at cost, respectively | -99.8 | -98.3 |
Accumulated other comprehensive loss | -78.7 | -29.3 |
Total AAR stockholders' equity | 940.9 | 999.5 |
Noncontrolling interest | 0.9 | 1.2 |
Total equity | 941.8 | 1,000.70 |
Total liabilities and equity | $2,133.80 | $2,199.50 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Feb. 28, 2015 | 31-May-14 |
In Millions, except Share data, unless otherwise specified | ||
Condensed Consolidated Balance Sheets | ||
Accounts receivable, allowances (in dollars) | $5.80 | $6.20 |
Property, plant and equipment, accumulated depreciation (in dollars) | 371.4 | 424.3 |
Intangible assets, accumulated amortization (in dollars) | $21.60 | $36.20 |
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, authorized shares | 250,000 | 250,000 |
Preferred stock, issued shares | 0 | 0 |
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, issued shares | 44,953,514 | 44,674,186 |
Treasury stock, shares | 5,137,409 | 5,113,939 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Sales: | ||||
Sales from products | $213.90 | $205.40 | $656.90 | $673.70 |
Sales from services | 166.2 | 194.4 | 521.6 | 614.8 |
Total sales | 380.1 | 399.8 | 1,178.50 | 1,288.50 |
Cost and operating expenses: | ||||
Cost of products | 184.5 | 179.7 | 568.6 | 594.8 |
Cost of services | 145.5 | 153.9 | 430.2 | 478.3 |
Selling, general and administrative | -41.7 | -37.7 | -120.3 | -120.3 |
Total costs and operating expenses | 371.7 | 371.3 | 1,119.10 | 1,193.40 |
Earnings from joint ventures | 0.6 | 0.6 | 1.8 | 2.5 |
Operating income | 9 | 29.1 | 61.2 | 97.6 |
Interest expense | -6.4 | -7.1 | -19.4 | -21.9 |
Interest income | 0.3 | 0.2 | 0.9 | |
Income before provision for income taxes | 2.6 | 22.3 | 42 | 76.6 |
Provision for income taxes | 0.7 | 5.4 | 14.4 | 24.3 |
Income from continuing operations attributable to AAR | 1.9 | 16.9 | 27.6 | 52.3 |
Discontinued operations | ||||
Operating income (loss) | -0.5 | 1 | 4.1 | 4.7 |
Impairment charge | -46.4 | -46.4 | ||
Provision for income tax (benefit) | -10.6 | -0.1 | -10 | 1 |
Income (Loss) from discontinued operations | -36.3 | 1.1 | -32.3 | 3.7 |
Income attributable to noncontrolling interst from discontinued operations | -0.1 | -0.1 | -0.2 | -0.2 |
Income (Loss) from discontinued operations attributable to AAR | -36.4 | 1 | -32.5 | 3.5 |
Net income (loss) attributable to AAR | ($34.50) | $17.90 | ($4.90) | $55.80 |
Earnings (Loss) per share - basic: | ||||
Earnings from continuing operations (in dollors per share) | $0.05 | $0.43 | $0.70 | $1.32 |
Earnings from discontinued operations (in dollors per share) | ($0.94) | $0.02 | ($0.84) | $0.09 |
Earnings per share - basic (in dollars per share) | ($0.89) | $0.45 | ($0.14) | $1.41 |
Earnings (Loss) per share - diluted: | ||||
Earnings from continuing operations (in dollors per share) | $0.05 | $0.43 | $0.69 | $1.31 |
Earnings (loss) from discontinued operations (in dollors per share) | ($0.94) | $0.02 | ($0.84) | $0.09 |
Earnings (loss) per share - diluted (in dollars per share) | ($0.89) | $0.45 | ($0.15) | $1.40 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income (loss) attributable to AAR and noncontrolling interest | ($34.40) | $18 | ($4.70) | $56 |
Other comprehensive income (loss), net of tax expense (benefit): | ||||
Currency translation adjustments, net of tax of ($0.6) and $0.2 for the three months ended February 28, 2015 and 2014, respectively, and $0.6 and $0.8 for the nine months ended February 28, 2015 and 2014, respectively | -26.1 | 4.2 | -49.9 | 16 |
Unrealized gain on derivative instruments: | ||||
Unrealized gain arising during period, net of tax of $0.1 and $0 for the three months ended February 28, 2015 and 2014, respectively, and $0.3 and $0.2 for the nine months ended February 28, 2015 and 2014, respectively | 0.4 | 0.3 | 0.6 | 0.6 |
Pension and other post-retirement plans: | ||||
Amortization of actuarial loss and prior service cost included in net income, net of tax of $0 and $0.2 for the three months ended February 28, 2015 and 2014, respectively, and $0 and $0.5 for the nine months ended February 28, 2015 and 2014, respectively | -0.2 | 0.2 | -0.1 | 0.7 |
Other comprehensive (loss) income, net of tax | -25.9 | 4.7 | -49.4 | 17.3 |
Comprehensive (loss) income, net of tax | -60.3 | 22.7 | -54.1 | 73.3 |
Comprehensive income related to noncontrolling interest | -0.1 | -0.1 | -0.2 | -0.2 |
Comprehensive (loss) income attributable to AAR | ($60.40) | $22.60 | ($54.30) | $73.10 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Condensed Consolidated Statements of Comprehensive Income | ||||
Currency translation adjustments, tax | ($0.60) | $0.20 | $0.60 | $0.80 |
Unrealized gain (loss) arising during period, tax | 0.1 | 0 | 0.3 | 0.2 |
Amortization of actuarial loss and prior service cost included in net income, tax | $0 | $0.20 | $0 | $0.50 |
Condensed_Consolidated_Stateme3
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Cash flows from operating activities: | ||
Net income (loss) attributable to AAR and noncontrolling interest | ($4.70) | $56 |
Adjustments to reconcile net income attributable to AAR and noncontrolling interest to net cash provided from operating activities: | ||
Depreciation and intangible amortization | 52.6 | 59.2 |
Impairment Charges | 50.9 | |
Amortization of program development costs | 30 | 5.1 |
Amortization of stock-based compensation | 6.5 | 6.3 |
Amortization of debt discount | 2 | 4.6 |
Amortization of overhaul costs | 14.7 | 26.1 |
Deferred tax provision (benefit) | -7.7 | 4.7 |
Earnings from joint ventures | -1.8 | -2.6 |
Changes in certain assets and liabilities: | ||
Accounts receivable | -48.8 | -10.1 |
Inventories | -70.5 | -37 |
Rotable spares and equipment on or available for short-term lease | -4.6 | 6 |
Equipment on or available for long-term lease | -21.3 | -10.1 |
Accounts payable | 20.1 | 9.6 |
Accrued and other liabilities | -0.3 | -18.3 |
Other, primarily program and overhaul costs | -8.1 | -22.8 |
Net cash provided from operating activities | 9 | 76.7 |
Cash flows from investing activities: | ||
Property, plant and equipment expenditures | -23.7 | -21.2 |
Proceeds from sale of equipment | 1.3 | 1.4 |
Payments for acquisitions | -16.1 | |
Other | -1.5 | -0.6 |
Net cash used in investing activities | -23.9 | -36.5 |
Cash flows from financing activities: | ||
Short-term borrowings, net | 55 | 20 |
Reduction in long-term borrowings | -46.8 | -18 |
Reduction in equity due to convertible bond repurchases | -0.2 | |
Reduction in capital lease obligations | -1.6 | |
Cash dividends | -9.4 | -8.9 |
Purchase of treasury stock | -1.7 | -1 |
Stock option exercises | 0.8 | 5.2 |
Tax benefits from exercise of stock options | 0.6 | 1 |
Other | -0.3 | |
Net cash used in financing activities | -3.3 | -2 |
Effect of exchange rate changes on cash | -4 | 1.2 |
(Decrease) Increase in cash and cash equivalents | -22.2 | 39.4 |
Cash and cash equivalents, beginning of period | 89.2 | 75.3 |
Cash and cash equivalents, end of period | $67 | $114.70 |
Condensed_Consolidated_Stateme4
Condensed Consolidated Statements of Changes in Equity (USD $) | Common Stock | Capital Surplus | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total AAR Stockholders' Equity | Noncontrolling Interest | Total |
In Millions, unless otherwise specified | ||||||||
Balance at May. 31, 2014 | $44.70 | $436.40 | $646 | ($98.30) | ($29.30) | $999.50 | $1.20 | $1,000.70 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income(loss) | -4.9 | -4.9 | 0.2 | -4.7 | ||||
Cash dividends | -8.9 | -8.9 | -0.5 | -9.4 | ||||
Stock option activity | 2 | 0.9 | 2.9 | 2.9 | ||||
Restricted stock activity | 0.3 | 3.9 | -0.7 | 3.5 | 3.5 | |||
Equity portion of bond repurchase | -0.1 | -0.1 | -0.1 | |||||
Repurchase of shares | -1.7 | -1.7 | -1.7 | |||||
Other comprehensive loss, net of tax | -49.4 | -49.4 | -49.4 | |||||
Balance at Feb. 28, 2015 | $45 | $442.20 | $632.20 | ($99.80) | ($78.70) | $940.90 | $0.90 | $941.80 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Feb. 28, 2015 | |
Basis of Presentation | |
Basis of Presentation | |
Note 1 — Basis of Presentation | |
AAR CORP. and its subsidiaries are referred to herein collectively as “AAR,” “Company,” “we,” “us,” and “our,” unless the context indicates otherwise. The accompanying Condensed Consolidated Financial Statements include the accounts of AAR and its subsidiaries after elimination of intercompany accounts and transactions. | |
We have prepared these statements without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”). The Condensed Consolidated Balance Sheet as of May 31, 2014 has been derived from audited financial statements. To prepare the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management has made a number of estimates and assumptions relating to the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Certain information and note disclosures, normally included in comprehensive financial statements prepared in accordance with GAAP, have been condensed or omitted pursuant to such rules and regulations of the SEC. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in our latest annual report on Form 10-K. | |
In the opinion of management, the condensed consolidated financial statements reflect all adjustments (which consist only of normal recurring adjustments) necessary to present fairly the condensed consolidated financial position of AAR CORP. and its subsidiaries as of February 28, 2015, the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended February 28, 2015 and 2014, the Condensed Consolidated Statements of Cash Flows for the nine-month periods ended February 28, 2015 and 2014, and the Condensed Consolidated Statement of Changes in Equity for the nine-month period ended February 28, 2015. The results of operations for such interim periods are not necessarily indicative of the results for the full year. | |
Discontinued_Operations
Discontinued Operations | 9 Months Ended | ||||
Feb. 28, 2015 | |||||
Discontinued operations | |||||
Discontinued Operations | |||||
Note 2 — Discontinued Operations | |||||
On March 26, 2015, we completed the sale of our Telair Cargo Group to TransDigm, Inc. for $725 million, subject to certain post-closing adjustments, including a working capital adjustment. The Telair Cargo Group was comprised of Telair International, Telair US, and Nordisk Aviation Products. Cash received at closing was $705 million with the remaining consideration of $20 million placed in escrow and payable based on the occurrence of certain post-closing events related to a cargo system development program. ln addition, incremental contingent consideration of up to $15 million related to the same cargo system development program could increase total proceeds to $740 million. We expect to report a pre-tax gain on the sale (net of transaction expenses and fees) of approximately $200 million in the fourth quarter of fiscal 2015. | |||||
We have also announced our intention to sell our Precision Systems Manufacturing business comprised of our metal and composite machined and fabricated parts manufacturing operations. During the three months ended February 28. 2015, we recognized an impairment charge of $46.4 million to reduce the carrying value of Precision Systems Manufacturing business’s net assets to their expected value at the time of sale. | |||||
The Telair Cargo Group and Precision Systems Manufacturing, which were both previously reported in our Technology Products segment, are reported as discontinued operations in the Condensed Consolidated Statements of Operations for all periods presented. lnterest expense allocated to discontinued operations was $2.8 million and $3.3 million during the three months ended February 28, 2015 and 2014, respectively, and $8.4 million and $10.0 million during the nine months ended February 28, 2015 and 2014, respectively. No amounts for general corporate overhead were allocated to discontinued operations. The assets and liabilities of these businesses have been reclassified to Assets of discontinued operations and Liabilities of discontinued operations on the Condensed Consolidated Balance Sheets. | |||||
Sales for our discontinued operations were $91.8 million and $74.6 million during the three months ended February 28, 2015 and 2014, respectively, and $252.6 million and $241.1 million during the nine months ended February 28, 2015 and 2014, respectively. | |||||
The assets and liabilities held for sale related to discontinued operations on the Consolidated Balance Sheet as of February 28, 2015 are as follows: | |||||
Accounts receivable, net | $ | 73.2 | |||
Inventory | 109.1 | ||||
Property, plant and equipment, net | 41.8 | ||||
Goodwill | 119.6 | ||||
Intangible assets, net | 98.9 | ||||
Capitalized program development costs | 114.9 | ||||
Other assets | 18.2 | ||||
Total assets | 575.7 | ||||
Less: Reserve for assets held for sale | (46.4 | ) | |||
$ | 529.3 | ||||
Accounts payable | $ | 23.1 | |||
Accrued liabilities | 34.2 | ||||
$ | 57.3 | ||||
Unless otherwise noted, amounts and disclosures throughout these Notes to Condensed Consolidated Financial Statements relate to our continuing operations. | |||||
Revenue_Recognition
Revenue Recognition | 9 Months Ended |
Feb. 28, 2015 | |
Revenue Recognition | |
Revenue Recognition | |
Note 3 — Revenue Recognition | |
Sales and related cost of sales for product sales are recognized upon shipment of the product to the customer. Our standard terms and conditions provide that title passes to the customer when the product is shipped to the customer. Sales of certain defense products are recognized upon customer acceptance, which includes transfer of title. Under the majority of our expeditionary airlift services contracts, we are paid and record as revenue a fixed daily amount per aircraft for each day an aircraft is available to perform airlift services. In addition, we are paid and record as revenue an amount which is based on number of hours flown. Sales from services and the related cost of services are generally recognized when customer-owned material is shipped back to the customer. We have adopted this accounting policy because at the time the customer-owned material is shipped back to the customer, all services related to that material are complete as our service agreements generally do not require us to provide services at customer sites. Furthermore, serviced units are typically shipped to the customer immediately upon completion of the related services. Sales and related cost of sales for certain long-term manufacturing contracts, certain large airframe maintenance contracts, and performance-based logistics programs are recognized by the percentage of completion method, either based on the relationship of costs incurred to date to the estimated total costs or the units of delivery method. Lease revenues are recognized as earned. Income from monthly or quarterly rental payments is recorded in the pertinent period according to the lease agreement. However, for leases that provide variable rents, we recognize lease income on a straight-line basis. In addition to a monthly lease rate, some engine leases require an additional rental amount based on the number of hours the engine is used in a particular month. Lease income associated with these contingent rentals is recorded in the period in which actual usage is reported to us by the lessee, which is normally the month following the actual usage. | |
Certain supply chain management programs we provide to our customers contain multiple elements or deliverables, such as program and warehouse management, parts distribution, and maintenance and repair services. We recognize revenue for each element or deliverable that can be identified as a separate unit of accounting at the time of delivery based upon the relative fair value of the products and services. | |
Included in accounts receivable as of February 28, 2015 and May 31, 2014, are $21.1 million and $19.7 million, respectively, of unbilled accounts receivable related to the KC10 supply agreement. These unbilled accounts receivable relate to costs we have incurred on parts that were requested and accepted by our customer to support the program. These costs have not been billed by us because the customer has not issued the final paperwork necessary to allow for billing. | |
In addition to the unbilled accounts receivable, included in Other non-current assets on the Condensed Consolidated Balance Sheet as of February 28, 2015 and May 31, 2014, are $8.1 million and $9.9 million, respectively, of costs in excess of amounts billed for the flight-hour portion of the same KC10 supply agreement. These amounts represent the difference between the amount of revenue recognized by us driven by costs incurred under the flight hour portion of the program, compared to what was billed. | |
New Accounting Pronouncements | |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. This ASU affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of non-financial assets. This ASU will supersede the revenue recognition requirements in ASC 605, Revenue Recognition, and most industry-specific guidance. This ASU will also supersede certain cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts. This new standard will be effective for us beginning June 1, 2017. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements. | |
Accounting_for_StockBased_Comp
Accounting for Stock-Based Compensation | 9 Months Ended |
Feb. 28, 2015 | |
Accounting for Stock-Based Compensation | |
Accounting for Stock-Based Compensation | |
Note 4 — Accounting for Stock-Based Compensation | |
Restricted Stock | |
In July 2014, as part of our annual long-term stock incentive compensation, we granted 192,250 shares of performance-based restricted stock and 95,956 shares of time-based restricted stock to eligible employees. The grant date fair value per share for both grants was $26.08. In June 2014, we also granted 45,000 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $24.50. In the three-months ended February, 28, 2015, we granted 3,000 shares of time-based restricted stock with a grant date fair value of $25.36. No other restricted stock was granted in fiscal 2015. Expense charged to operations for restricted stock was $1.6 million and $1.2 million during the three months ended February 28, 2015 and 2014, respectively, and $4.3 million and $3.7 million during the nine months ended February 28, 2015 and 2014, respectively. | |
Stock Options | |
The total intrinsic value of stock options exercised during the nine-month periods ended February 28, 2015 and 2014 was $1.5 million and $3.8 million, respectively. Expense charged to operations for stock options was $0.8 million and $1.0 million during the three months ended February 28, 2015 and 2014, respectively, and $2.2 million and $2.6 million during the nine months ended February 28, 2015 and 2014, respectively. | |
Inventory
Inventory | 9 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Inventory | ||||||||
Inventory | ||||||||
Note 5 — Inventory | ||||||||
The summary of inventories is as follows: | ||||||||
February 28, | May 31, | |||||||
2015 | 2014 | |||||||
Raw materials and parts | $ | 41.7 | $ | 114.1 | ||||
Work-in-process | 19.4 | 57.5 | ||||||
Aircraft and engine parts, components and finished goods | 359.6 | 297.3 | ||||||
Aircraft held for sale and related support parts | 30.3 | 26.4 | ||||||
$ | 451.0 | $ | 495.3 | |||||
We classify certain aircraft from our expeditionary airlift business as assets held for sale at the time management commits to a plan to sell the aircraft, changes to the planned sale are not likely, the aircraft are actively marketed and available for immediate sale, and the sale is expected to be completed within one year. Upon designation of an aircraft as held for sale, we record the aircraft’s value at the lower of its carrying value or its estimated fair value, less estimated costs to sell. Assets held for sale are not depreciated. | ||||||||
Aircraft may be classified as assets held for sale for more than one year as we continue to actively market the aircraft at reasonable prices. Certain aircraft types we currently have available for sale are specifically designed for particular functions which limits the marketability of those assets. At February 28, 2015, we had 12 aircraft held for sale comprised of eight fixed-wing and four rotary-wing aircraft. At May 31, 2014, we had nine aircraft held for sale comprised of five fixed-wing and four rotary-wing aircraft. During the three-month period ended February 28, 2015, we recognized an impairment charge of $4.7 million reflecting the decrease in fair value for five fixed-wing aircraft held for sale and related rotable assets. | ||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Supplemental Cash Flow Information | ||||||||
Supplemental Cash Flow Information | ||||||||
Note 6 — Supplemental Cash Flow Information | ||||||||
Nine Months Ended | ||||||||
February 28, | ||||||||
2015 | 2014 | |||||||
Interest paid | $ | 32.1 | $ | 30.9 | ||||
Income taxes paid | 11.7 | 9.2 | ||||||
Income tax refunds received | 12.1 | 6.6 | ||||||
Financing_Arrangements
Financing Arrangements | 9 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Financing Arrangements | ||||||||||||||
Financing Arrangements | ||||||||||||||
Note 7 — Financing Arrangements | ||||||||||||||
A summary of the carrying amount of our debt is as follows: | ||||||||||||||
February 28, | May 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Revolving credit facility expiring April 24, 2018 with interest payable monthly | $ | 185 | $ | 130 | ||||||||||
Secured credit facility (secured by aircraft and related engines and components) due April 23, 2015 with floating interest rate, payable monthly | 23 | 29.9 | ||||||||||||
Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1 | 20 | 30 | ||||||||||||
Notes payable due January 15, 2022 with interest at 7.25% payable semi-annually on January 15 and July 15 | 332 | 332.6 | ||||||||||||
Convertible notes payable due March 1, 2016 with interest at 2.25% payable semi-annually on March 1 and September 1 | 47.3 | 45.7 | ||||||||||||
Other(1) | 36 | 65.8 | ||||||||||||
Total debt | 643.3 | 634 | ||||||||||||
Current maturities of debt | (43.9 | ) | (69.7 | ) | ||||||||||
Long-term debt | $ | 599.4 | $ | 564.3 | ||||||||||
-1 | Included in Other is a mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015 of $11.0 million and $11.0 million, 1.75% convertible notes due February 1, 2015 of $0 and $29.8 million, and an industrial revenue bond (secured by property, plant, and equipment) due August 1, 2018 of $25.0 million and $25.0 million at February 28, 2015 and May 31, 2014, respectively. | |||||||||||||
At February 28, 2015, the carrying value of our 7.25% bonds and 2.25% convertible notes was $379.4 million and the estimated fair value was approximately $407.6 million. These debt issuances are classified as Level 2 in the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly. | ||||||||||||||
At February 28, 2015, our remaining variable rate and fixed rate debt had a fair value that approximates the carrying value of $264.0 million. These debt instruments are classified as Level 3 in the fair value hierarchy, which is defined as a fair value determined based upon one or more significant unobservable inputs. | ||||||||||||||
We are subject to a number of covenants under our financing arrangements, including at February 28, 2015 restrictions that relate to the payment of cash dividends, maintenance of minimum net working capital and tangible net worth levels, fixed charge coverage ratio, sales of assets, additional financing, purchase of our shares and other matters. We are in compliance with all financial and other covenants under our financing arrangements. | ||||||||||||||
Convertible Notes | ||||||||||||||
During the three-month period ended November 30, 2014, we repurchased all of the outstanding 1.75% convertible notes due February 1, 2015 with total face value of $30.0 million for $31.1 million cash including $1.1 million of accrued interest. | ||||||||||||||
As of February 28, 2015 and May 31, 2014, the long-term debt and equity component (recorded in capital surplus, net of income tax benefit) for our 2.25% convertible notes consisted of the following: | ||||||||||||||
February 28, | May 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Long-term debt: | ||||||||||||||
Principal amount | $ | 49.8 | $ | 49.8 | ||||||||||
Unamortized discount | (2.5 | ) | (4.1 | ) | ||||||||||
Net carrying amount | $ | 47.3 | $ | 45.7 | ||||||||||
Equity component, net of tax | $ | 20.6 | $ | 20.6 | ||||||||||
The unamortized discount on the liability component of long-term debt is being amortized using the effective interest method based on an effective rate of 7.41% for our 2.25% convertible notes. The “if converted” value for our 2.25% convertible notes does not exceed its principal amount. | ||||||||||||||
The interest expense associated with all convertible notes was as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Coupon interest | $ | 0.3 | $ | 0.8 | $ | 1.2 | $ | 2.5 | ||||||
Amortization of deferred financing fees | — | 0.1 | 0.1 | 0.3 | ||||||||||
Amortization of discount | 0.4 | 1.5 | 1.7 | 4.4 | ||||||||||
Interest expense related to convertible notes | $ | 0.7 | $ | 2.4 | $ | 3.0 | $ | 7.2 | ||||||
Credit Facility Amendment | ||||||||||||||
On March 24, 2015, we entered into an amendment (the “Amendment”) to our credit agreement dated April 12, 2011, as amended, with various financial institutions, as lenders and Bank of America, N.A., as administrative agent for the lenders (the “Credit Agreement”). | ||||||||||||||
Under the terms of the Credit Agreement as in effect prior to the Amendment, the aggregate revolving credit commitment amount under the Credit Agreement was $475 million. The Amendment increases the above-referenced $475 million to $500 million. Under certain circumstances, the Company also could request an increase to the revolving commitment by an aggregate amount of up to $250 million, not to exceed $750 million in total. | ||||||||||||||
The Amendment also extends the maturity of the Credit Agreement by approximately two years to March 24, 2020. The Amendment also deleted the minimum fixed charge coverage ratio and added a minimum interest coverage ratio. Except as specifically amended and modified by the Amendment, the terms and conditions of the Credit Agreement remain in effect. | ||||||||||||||
Redemption of 7.25% Senior Notes | ||||||||||||||
We have sent out a notice of redemption for our $325 million 7.25% Senior Notes. The redemption price for the Senior Notes will include an approximately $45 million make-whole premium and we will record a pre-tax charge for this amount in the fourth quarter of fiscal 2015. | ||||||||||||||
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended | |||||||||
Feb. 28, 2015 | ||||||||||
Derivative Instruments and Hedging Activities | ||||||||||
Derivative Instruments and Hedging Activities | ||||||||||
Note 8 — Derivative Instruments and Hedging Activities | ||||||||||
We are exposed to interest rate risk associated with fluctuations in interest rates on our variable rate debt. We utilize two derivative financial instruments to manage our variable interest rate exposure over a medium- to long-term period. We have a floating-to-fixed interest rate swap and an interest rate cap agreement, each hedging $50.0 million of notional principal interest under our Credit Agreement. | ||||||||||
We do not hold or issue derivative instruments for trading purposes and are not a party to any instruments with leverage or prepayment features. In connection with derivative financial instruments, there exists the risk of the possible inability of counterparties to meet the terms of their contracts. We mitigate this risk by performing financial reviews before the contract is entered into, as well as on-going periodic evaluations. We do not expect any significant losses from counterparty defaults. | ||||||||||
We classify the derivatives as assets or liabilities on the balance sheet. Accounting for the change in fair value of the derivatives is a function of whether the instrument qualifies for, and has been designated as, a hedging relationship, and the type of hedging relationship. As of February 28, 2015, all of our derivative instruments were classified as cash flow hedges. The fair value of the interest rate swap and interest rate cap agreements represents the difference in the present values of cash flows calculated at the contracted interest rates and at current market interest rates at the end of the reporting period. | ||||||||||
We record the fair value of assets and liabilities in accordance with the hierarchy established by ASC 820, Fair Value Measurement. The fair value of our interest rate derivatives is classified as Level 2, which refers to fair values estimated using significant other observable inputs including quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. The following table summarizes the classification and fair values of our interest rate derivative instruments reported in the Condensed Consolidated Balance Sheets at February 28, 2015 and May 31, 2014. | ||||||||||
Derivatives designated | February 28, | May 31, | ||||||||
as hedging instruments | Balance Sheet Classification | 2015 | 2014 | |||||||
Interest rate cap | Long-term assets | $ | 0.1 | $ | 0.1 | |||||
Interest rate swap | Long-term liabilities | (2.3 | ) | (2.8 | ) | |||||
We include gains and losses on the derivative instruments in other comprehensive income. We recognize the gains and losses on our derivative instruments as an adjustment to interest expense in the period the hedged interest payment affects earnings. The impact of the interest rate swap and interest cap agreement on the Condensed Consolidated Statement of Comprehensive Income for the three-month periods ended February 28, 2015 and 2014 was an unrealized gain of $0.4 million and $0.3 million, respectively. The impact of the interest rate swap and interest cap agreement on the Condensed Consolidated Statements of Operations for the nine-month periods ended February 28, 2015 and 2014 was an unrealized gain of $0.0 million and $0.6 million, respectively. The unrealized gains and losses were recorded in accumulated other comprehensive income (loss). | ||||||||||
In connection with the Amendment of our Credit Agreement, we settled our floating-to-fixed interest rate swap and interest rate cap agreements for approximately $2.6 million. | ||||||||||
Earnings_per_Share
Earnings per Share | 9 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Earnings per Share | ||||||||||||||
Earnings per Share | ||||||||||||||
Note 9 — Earnings per Share | ||||||||||||||
The computation of basic earnings per share is based on the weighted average number of common shares outstanding during each period. The computation of diluted earnings per share is based on the weighted average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options, shares issuable upon vesting of restricted stock awards, and shares to be issued upon conversion of convertible debt. | ||||||||||||||
We used the “if converted” method in calculating the diluted earnings per share effect of the assumed conversion of our contingently convertible debt because the principal can be settled in stock, cash, or a combination thereof. Under the “if converted” method, the after-tax effect of interest expense related to the convertible securities is added back to net income, and the convertible debt is assumed to have been converted into common shares at the beginning of the period. | ||||||||||||||
In accordance with ASC 260-10-45, Share-Based Payment Arrangements and Participating Securities and the Two-Class Method, our unvested time-based restricted stock awards are deemed participating securities since these shares are entitled to participate in dividends declared on shares of common stock. During periods of net income, the calculation of earnings per share for common stock excludes income attributable to unvested restricted stock awards from the numerator and excludes the dilutive impact of those shares from the denominator. During periods of net loss, no effect is given to the participating securities because they do not share in the losses of the Company. | ||||||||||||||
The following table provides a reconciliation of the computations of basic and diluted earnings per share information for the three- and nine-month periods ended February 28, 2015 and 2014. | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Income from continuing operations | $ | 1.9 | $ | 16.9 | $ | 27.6 | $ | 52.3 | ||||||
Less income attributable to participating shares | (0.1 | ) | (0.4 | ) | (0.6 | ) | (1.2 | ) | ||||||
Income from continuing operations attributable to common shareholders | 1.8 | 16.5 | 27 | 51.1 | ||||||||||
Income (Loss) from discontinued operations attributable to common shareholders | (36.4 | ) | 1 | (32.5 | ) | 3.5 | ||||||||
Net income (loss) attributable to common shareholders | $ | (34.6 | ) | $ | 17.5 | $ | (5.5 | ) | $ | 54.6 | ||||
Weighted average common shares outstanding— basic | 38.7 | 38.6 | 38.7 | 38.6 | ||||||||||
Additional shares from the assumed exercise exercise of stock options | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||||
Weighted average common shares outstanding — diluted | 39.2 | 39.1 | 39.2 | 39.1 | ||||||||||
Earnings per share — basic: | ||||||||||||||
Earnings from continuing operations | $ | 0.05 | $ | 0.43 | $ | 0.7 | $ | 1.32 | ||||||
Earnings (Loss) from discontinued operations | (0.94 | ) | 0.02 | (0.84 | ) | 0.09 | ||||||||
Earnings (Loss) per share — basic | $ | (0.89 | ) | $ | 0.45 | $ | (0.14 | ) | $ | 1.41 | ||||
Earnings per share — diluted: | ||||||||||||||
Earnings from continuing operations | $ | 0.05 | $ | 0.43 | $ | 0.69 | $ | 1.31 | ||||||
Earnings (Loss) from discontinued operations | (0.94 | ) | 0.02 | (0.84 | ) | 0.09 | ||||||||
Earnings (Loss) per share — diluted | $ | (0.89 | ) | $ | 0.45 | $ | (0.15 | ) | $ | 1.4 | ||||
At February 28, 2015 and 2014, respectively, stock options to purchase 169,163 shares and 170,000 shares of common stock were outstanding, but were not included in the computation of diluted earnings per share because the exercise price of each of these options was greater than the average market price of the common shares during the interim periods then ended. | ||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 9 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Note 10 — Accumulated Other Comprehensive Loss | ||||||||||||||
Changes in our accumulated other comprehensive loss (“AOCL”) by component for the three- and nine-month periods ended February 28, 2015 and 2014 were as follows: | ||||||||||||||
Currency | Pensions | Derivative | Total | |||||||||||
Translation | Plans | Instruments | ||||||||||||
Adjustments | ||||||||||||||
Balance at December 1, 2014 | $ | (15.1 | ) | $ | (35.3 | ) | $ | (2.4 | ) | $ | (52.8 | ) | ||
Other comprehensive loss before reclassifications | (26.1 | ) | — | 0.4 | (25.7 | ) | ||||||||
Amounts reclassified from AOCL | — | (0.2 | ) | — | (0.2 | ) | ||||||||
Total other comprehensive loss | (26.1 | ) | (0.2 | ) | 0.4 | (25.9 | ) | |||||||
Balance at February 28, 2015 | $ | (41.2 | ) | $ | (35.5 | ) | $ | (2.0 | ) | $ | (78.7 | ) | ||
Balance at December 1, 2013 | $ | 6.4 | $ | (33.3 | ) | $ | (3.0 | ) | $ | (29.9 | ) | |||
Other comprehensive income (loss) before reclassifications | 4.2 | — | 0.3 | 4.5 | ||||||||||
Amounts reclassified from AOCL | — | 0.2 | — | 0.2 | ||||||||||
Total other comprehensive income (loss) | 4.2 | 0.2 | 0.3 | 4.7 | ||||||||||
Balance at February 28, 2014 | $ | 10.6 | $ | (33.1 | ) | $ | (2.7 | ) | $ | (25.2 | ) | |||
Currency | Pensions | Derivative | Total | |||||||||||
Translation | Plans | Instruments | ||||||||||||
Adjustments | ||||||||||||||
Balance at June 1, 2014 | $ | 8.7 | $ | (35.4 | ) | $ | (2.6 | ) | $ | (29.3 | ) | |||
Other comprehensive income (loss) before reclassifications | (49.9 | ) | — | 0.6 | (49.3 | ) | ||||||||
Amounts reclassified from AOCL | — | (0.1 | ) | — | (0.1 | ) | ||||||||
Total other comprehensive income (loss) | (49.9 | ) | (0.1 | ) | 0.6 | (49.4 | ) | |||||||
Balance at February 28, 2015 | $ | (41.2 | ) | $ | (35.5 | ) | $ | (2.0 | ) | $ | (78.7 | ) | ||
Balance at June 1, 2013 | $ | (5.4 | ) | $ | (33.8 | ) | $ | (3.3 | ) | $ | (42.5 | ) | ||
Other comprehensive income before reclassifications | 16 | — | 0.6 | 16.6 | ||||||||||
Amounts reclassified from AOCL | — | 0.7 | — | 0.7 | ||||||||||
Total other comprehensive income | 16 | 0.7 | 0.6 | 17.3 | ||||||||||
Balance at February 28, 2014 | $ | 10.6 | $ | (33.1 | ) | $ | (2.7 | ) | $ | (25.2 | ) | |||
Business_Segment_Information
Business Segment Information | 9 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Business Segment Information | ||||||||||||||
Business Segment Information | ||||||||||||||
Note 11 — Business Segment Information | ||||||||||||||
As discussed in Note 2 — Discontinued Operations, we began reporting our Telair Cargo Group and Precision Systems Manufacturing businesses as discontinued operations effective in the third quarter of fiscal 2015. Prior to the decision to sell these two businesses, we reported our activities in the following two business segments: Aviation Services comprised of our supply chain, maintenance, repair and overhaul (“MRO”) and airlift activities and Technology Products comprised of our Telair Cargo Group, Precision Systems Manufacturing, and mobility businesses. | ||||||||||||||
As a result of the divestitures of the Telair Cargo Group and Precision Systems Manufacturing, we have revised our reportable segments to align to our new organizational structure. We will report our results in two new segments: Aviation Services comprised of supply chain and MRO activities and Expeditionary Services comprised of airlift and mobility activities. This new presentation reflects the way our chief operating decision making officer (Chief Executive Officer) now evaluates performance and our internal organizational and management structure. | ||||||||||||||
The Aviation Services segment consists of businesses that provide spares and maintenance support for aircraft operated by our commercial and government/defense customers. Sales in the Aviation Services segment are derived from the sale and lease of a wide variety of new, overhauled and repaired engine and airframe parts and components to the commercial aviation and government and defense markets. We provide customized inventory supply chain management, performance based logistics programs, aircraft component repair management services, and aircraft modifications. The segment also includes repair, maintenance and overhaul of aircraft, landing gear and components. Cost of sales consists principally of the cost of product, direct labor and overhead. | ||||||||||||||
The Expeditionary Services segment consists of businesses that provide products and services supporting the movement of equipment and personnel by the U.S. DoD, foreign governments and non-governmental organizations. Sales in the Expeditionary Services segment are derived from the delivery of airlift services to mostly government and defense customers and the design and manufacture of pallets, shelters, and containers used to support the U.S. military’s requirements for a mobile and agile force. We also provide system integration services for specialized command and control systems. Cost of sales consists principally of aircraft maintenance costs, depreciation, the cost of material to manufacture products, direct labor and overhead. | ||||||||||||||
Segment results have been reclassified for all periods presented to reflect our new segment presentation. | ||||||||||||||
The accounting policies for the segments are the same as those described in Note 1 of Notes to Consolidated Financial Statements included in our annual report on Form 10-K for the year ended May 31, 2014. Our Chief Executive Officer evaluates performance based on the reportable segments and utilizes gross profit as a primary profitability measure. Gross profit is calculated by subtracting cost of sales from sales. The assets and certain expenses related to corporate activities are not allocated to the segments. Our reportable segments are aligned principally around differences in products and services. | ||||||||||||||
Selected financial information for each segment is as follows: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Sales: | ||||||||||||||
Aviation Services | $ | 318.4 | $ | 289.7 | $ | 955.9 | $ | 923.5 | ||||||
Expeditionary Services | 61.7 | 110.1 | 222.6 | 365.0 | ||||||||||
$ | 380.1 | $ | 399.8 | $ | 1,178.5 | $ | 1,288.5 | |||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Gross profit: | ||||||||||||||
Aviation Services | $ | 50.7 | $ | 38.3 | $ | 152.8 | $ | 125.5 | ||||||
Expeditionary Services | (0.6 | ) | 27.9 | 26.9 | 89.9 | |||||||||
$ | 50.1 | $ | 66.2 | $ | 179.7 | $ | 215.4 | |||||||
The following table reconciles segment gross profit to income from continuing operations before provision for income taxes: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Segment gross profit | $ | 50.1 | $ | 66.2 | $ | 179.7 | $ | 215.4 | ||||||
Selling, general and administrative | (41.7 | ) | (37.7 | ) | (120.3 | ) | (120.3 | ) | ||||||
Earnings from joint ventures | 0.6 | 0.6 | 1.8 | 2.5 | ||||||||||
Interest expense | (6.4 | ) | (7.1 | ) | (19.4 | ) | (21.9 | ) | ||||||
Interest income | — | 0.3 | 0.2 | 0.9 | ||||||||||
Income before provision for income taxes | $ | 2.6 | $ | 22.3 | $ | 42 | $ | 76.6 | ||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 9 Months Ended | ||||
Feb. 28, 2015 | |||||
Discontinued operations | |||||
Schedule of assets and liabilities held for sale related to discontinued operations | |||||
The assets and liabilities held for sale related to discontinued operations on the Consolidated Balance Sheet as of February 28, 2015 are as follows: | |||||
Accounts receivable, net | $ | 73.2 | |||
Inventory | 109.1 | ||||
Property, plant and equipment, net | 41.8 | ||||
Goodwill | 119.6 | ||||
Intangible assets, net | 98.9 | ||||
Capitalized program development costs | 114.9 | ||||
Other assets | 18.2 | ||||
Total assets | 575.7 | ||||
Less: Reserve for assets held for sale | (46.4 | ) | |||
$ | 529.3 | ||||
Accounts payable | $ | 23.1 | |||
Accrued liabilities | 34.2 | ||||
$ | 57.3 | ||||
Inventory_Tables
Inventory (Tables) | 9 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Inventory | ||||||||
Summary of inventories | February 28, | May 31, | ||||||
2015 | 2014 | |||||||
Raw materials and parts | $ | 41.7 | $ | 114.1 | ||||
Work-in-process | 19.4 | 57.5 | ||||||
Aircraft and engine parts, components and finished goods | 359.6 | 297.3 | ||||||
Aircraft held for sale and related support parts | 30.3 | 26.4 | ||||||
$ | 451.0 | $ | 495.3 | |||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | |||||||
Feb. 28, 2015 | ||||||||
Supplemental Cash Flow Information | ||||||||
Schedule of supplemental information on cash flow | Nine Months Ended | |||||||
February 28, | ||||||||
2015 | 2014 | |||||||
Interest paid | $ | 32.1 | $ | 30.9 | ||||
Income taxes paid | 11.7 | 9.2 | ||||||
Income tax refunds received | 12.1 | 6.6 | ||||||
Financing_Arrangements_Tables
Financing Arrangements (Tables) | 9 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Financing Arrangements | ||||||||||||||
Summary of carrying amount of debt | ||||||||||||||
February 28, | May 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Revolving credit facility expiring April 24, 2018 with interest payable monthly | $ | 185 | $ | 130 | ||||||||||
Secured credit facility (secured by aircraft and related engines and components) due April 23, 2015 with floating interest rate, payable monthly | 23 | 29.9 | ||||||||||||
Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1 | 20 | 30 | ||||||||||||
Notes payable due January 15, 2022 with interest at 7.25% payable semi-annually on January 15 and July 15 | 332 | 332.6 | ||||||||||||
Convertible notes payable due March 1, 2016 with interest at 2.25% payable semi-annually on March 1 and September 1 | 47.3 | 45.7 | ||||||||||||
Other(1) | 36 | 65.8 | ||||||||||||
Total debt | 643.3 | 634 | ||||||||||||
Current maturities of debt | (43.9 | ) | (69.7 | ) | ||||||||||
Long-term debt | $ | 599.4 | $ | 564.3 | ||||||||||
-1 | Included in Other is a mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015 of $11.0 million and $11.0 million, 1.75% convertible notes due February 1, 2015 of $0 and $29.8 million, and an industrial revenue bond (secured by property, plant, and equipment) due August 1, 2018 of $25.0 million and $25.0 million at February 28, 2015 and May 31, 2014, respectively. | |||||||||||||
Schedule of long-term debt and equity component (recorded in capital surplus, net of income tax benefit) of convertible notes | ||||||||||||||
February 28, | May 31, | |||||||||||||
2015 | 2014 | |||||||||||||
Long-term debt: | ||||||||||||||
Principal amount | $ | 49.8 | $ | 49.8 | ||||||||||
Unamortized discount | (2.5 | ) | (4.1 | ) | ||||||||||
Net carrying amount | $ | 47.3 | $ | 45.7 | ||||||||||
Equity component, net of tax | $ | 20.6 | $ | 20.6 | ||||||||||
Schedule of interest expense associated with the convertible notes | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Coupon interest | $ | 0.3 | $ | 0.8 | $ | 1.2 | $ | 2.5 | ||||||
Amortization of deferred financing fees | — | 0.1 | 0.1 | 0.3 | ||||||||||
Amortization of discount | 0.4 | 1.5 | 1.7 | 4.4 | ||||||||||
Interest expense related to convertible notes | $ | 0.7 | $ | 2.4 | $ | 3.0 | $ | 7.2 | ||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended | |||||||||
Feb. 28, 2015 | ||||||||||
Derivative Instruments and Hedging Activities | ||||||||||
Schedule of fair value carrying amount of our interest rate derivatives | ||||||||||
Derivatives designated | February 28, | May 31, | ||||||||
as hedging instruments | Balance Sheet Classification | 2015 | 2014 | |||||||
Interest rate cap | Long-term assets | $ | 0.1 | $ | 0.1 | |||||
Interest rate swap | Long-term liabilities | (2.3 | ) | (2.8 | ) | |||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 9 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Earnings per Share | ||||||||||||||
Reconciliation of the computations of basic and diluted earnings per share information | Three Months Ended | Nine Months Ended | ||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Income from continuing operations | $ | 1.9 | $ | 16.9 | $ | 27.6 | $ | 52.3 | ||||||
Less income attributable to participating shares | (0.1 | ) | (0.4 | ) | (0.6 | ) | (1.2 | ) | ||||||
Income from continuing operations attributable to common shareholders | 1.8 | 16.5 | 27 | 51.1 | ||||||||||
Income (Loss) from discontinued operations attributable to common shareholders | (36.4 | ) | 1 | (32.5 | ) | 3.5 | ||||||||
Net income (loss) attributable to common shareholders | $ | (34.6 | ) | $ | 17.5 | $ | (5.5 | ) | $ | 54.6 | ||||
Weighted average common shares outstanding— basic | 38.7 | 38.6 | 38.7 | 38.6 | ||||||||||
Additional shares from the assumed exercise exercise of stock options | 0.5 | 0.5 | 0.5 | 0.5 | ||||||||||
Weighted average common shares outstanding — diluted | 39.2 | 39.1 | 39.2 | 39.1 | ||||||||||
Earnings per share — basic: | ||||||||||||||
Earnings from continuing operations | $ | 0.05 | $ | 0.43 | $ | 0.7 | $ | 1.32 | ||||||
Earnings (Loss) from discontinued operations | (0.94 | ) | 0.02 | (0.84 | ) | 0.09 | ||||||||
Earnings (Loss) per share — basic | $ | (0.89 | ) | $ | 0.45 | $ | (0.14 | ) | $ | 1.41 | ||||
Earnings per share — diluted: | ||||||||||||||
Earnings from continuing operations | $ | 0.05 | $ | 0.43 | $ | 0.69 | $ | 1.31 | ||||||
Earnings (Loss) from discontinued operations | (0.94 | ) | 0.02 | (0.84 | ) | 0.09 | ||||||||
Earnings (Loss) per share — diluted | $ | (0.89 | ) | $ | 0.45 | $ | (0.15 | ) | $ | 1.4 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Schedule of changes in accumulated other comprehensive loss ("AOCL") by component | Currency | Pensions | Derivative | Total | ||||||||||
Translation | Plans | Instruments | ||||||||||||
Adjustments | ||||||||||||||
Balance at December 1, 2014 | $ | (15.1 | ) | $ | (35.3 | ) | $ | (2.4 | ) | $ | (52.8 | ) | ||
Other comprehensive loss before reclassifications | (26.1 | ) | — | 0.4 | (25.7 | ) | ||||||||
Amounts reclassified from AOCL | — | (0.2 | ) | — | (0.2 | ) | ||||||||
Total other comprehensive loss | (26.1 | ) | (0.2 | ) | 0.4 | (25.9 | ) | |||||||
Balance at February 28, 2015 | $ | (41.2 | ) | $ | (35.5 | ) | $ | (2.0 | ) | $ | (78.7 | ) | ||
Balance at December 1, 2013 | $ | 6.4 | $ | (33.3 | ) | $ | (3.0 | ) | $ | (29.9 | ) | |||
Other comprehensive income (loss) before reclassifications | 4.2 | — | 0.3 | 4.5 | ||||||||||
Amounts reclassified from AOCL | — | 0.2 | — | 0.2 | ||||||||||
Total other comprehensive income (loss) | 4.2 | 0.2 | 0.3 | 4.7 | ||||||||||
Balance at February 28, 2014 | $ | 10.6 | $ | (33.1 | ) | $ | (2.7 | ) | $ | (25.2 | ) | |||
Currency | Pensions | Derivative | Total | |||||||||||
Translation | Plans | Instruments | ||||||||||||
Adjustments | ||||||||||||||
Balance at June 1, 2014 | $ | 8.7 | $ | (35.4 | ) | $ | (2.6 | ) | $ | (29.3 | ) | |||
Other comprehensive income (loss) before reclassifications | (49.9 | ) | — | 0.6 | (49.3 | ) | ||||||||
Amounts reclassified from AOCL | — | (0.1 | ) | — | (0.1 | ) | ||||||||
Total other comprehensive income (loss) | (49.9 | ) | (0.1 | ) | 0.6 | (49.4 | ) | |||||||
Balance at February 28, 2015 | $ | (41.2 | ) | $ | (35.5 | ) | $ | (2.0 | ) | $ | (78.7 | ) | ||
Balance at June 1, 2013 | $ | (5.4 | ) | $ | (33.8 | ) | $ | (3.3 | ) | $ | (42.5 | ) | ||
Other comprehensive income before reclassifications | 16 | — | 0.6 | 16.6 | ||||||||||
Amounts reclassified from AOCL | — | 0.7 | — | 0.7 | ||||||||||
Total other comprehensive income | 16 | 0.7 | 0.6 | 17.3 | ||||||||||
Balance at February 28, 2014 | $ | 10.6 | $ | (33.1 | ) | $ | (2.7 | ) | $ | (25.2 | ) | |||
Business_Segment_Information_T
Business Segment Information (Tables) | 9 Months Ended | |||||||||||||
Feb. 28, 2015 | ||||||||||||||
Business Segment Information | ||||||||||||||
Selected financial information for each reportable segment | Three Months Ended | Nine Months Ended | ||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Sales: | ||||||||||||||
Aviation Services | $ | 318.4 | $ | 289.7 | $ | 955.9 | $ | 923.5 | ||||||
Expeditionary Services | 61.7 | 110.1 | 222.6 | 365.0 | ||||||||||
$ | 380.1 | $ | 399.8 | $ | 1,178.5 | $ | 1,288.5 | |||||||
Three Months Ended | Nine Months Ended | |||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Gross profit: | ||||||||||||||
Aviation Services | $ | 50.7 | $ | 38.3 | $ | 152.8 | $ | 125.5 | ||||||
Expeditionary Services | (0.6 | ) | 27.9 | 26.9 | 89.9 | |||||||||
$ | 50.1 | $ | 66.2 | $ | 179.7 | $ | 215.4 | |||||||
Schedule of reconciliation of segment gross profit to consolidated income before provision for income taxes | Three Months Ended | Nine Months Ended | ||||||||||||
February 28, | February 28, | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Segment gross profit | $ | 50.1 | $ | 66.2 | $ | 179.7 | $ | 215.4 | ||||||
Selling, general and administrative | (41.7 | ) | (37.7 | ) | (120.3 | ) | (120.3 | ) | ||||||
Earnings from joint ventures | 0.6 | 0.6 | 1.8 | 2.5 | ||||||||||
Interest expense | (6.4 | ) | (7.1 | ) | (19.4 | ) | (21.9 | ) | ||||||
Interest income | — | 0.3 | 0.2 | 0.9 | ||||||||||
Income before provision for income taxes | $ | 2.6 | $ | 22.3 | $ | 42 | $ | 76.6 | ||||||
Discontinued_Operations_Detail
Discontinued Operations (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 26, 2015 | 31-May-15 | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | Mar. 26, 2015 |
Discontinued Operations | |||||||
Recognized impairment charge | $46.40 | $46.40 | |||||
Interest Expense | 6.4 | 7.1 | 19.4 | 21.9 | |||
Telair Cargo Group | |||||||
Discontinued Operations | |||||||
Consideration received for sale of business | 725 | 725 | |||||
Cash consideration received | 705 | ||||||
Total proceeds including potential favorable amendments | 740 | ||||||
Pre-tax gain on sale of business (net of transaction expenses and fees) | 200 | ||||||
Recognized impairment charge | 46.4 | ||||||
Interest Expense | 2.8 | 3.3 | 8.4 | 10 | |||
Sales | 91.8 | 74.6 | 252.6 | 241.1 | |||
Assets and liabilities held for sale related to discontinued operations | |||||||
Accounts receivable, net | 73.2 | 73.2 | |||||
Inventory | 109.1 | 109.1 | |||||
Property, plant and equipment, net | 41.8 | 41.8 | |||||
Goodwill | 119.6 | 119.6 | |||||
Intangible assets, net | 98.9 | 98.9 | |||||
Capitalized program development costs | 114.9 | 114.9 | |||||
Other assets | 18.2 | 18.2 | |||||
Total assets | 575.7 | 575.7 | |||||
Less:Reserves for asstes held for sale | -46.4 | -46.4 | |||||
Total assets | 529.3 | 529.3 | |||||
Accounts payable | 23.1 | 23.1 | |||||
Accrued liabilities | 34.2 | 34.2 | |||||
Total liabilities | 57.3 | 57.3 | |||||
Telair Cargo Group | A400M | |||||||
Discontinued Operations | |||||||
Escrow deposit | 20 | 20 | |||||
Telair Cargo Group | A400M | Maximum | |||||||
Discontinued Operations | |||||||
Share of potential favorable contractual amendments | $15 |
Revenue_Recognition_Details
Revenue Recognition (Details) (USD $) | Feb. 28, 2015 | 31-May-14 |
In Millions, unless otherwise specified | ||
Revenue Recognition | ||
Unbilled accounts receivable related to KC10 supply agreement | $21.10 | $19.70 |
Cost in excess of amount billed | $8.10 | $9.90 |
Accounting_for_StockBased_Comp1
Accounting for Stock-Based Compensation (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 | 31-May-15 | Jul. 31, 2014 | Jun. 30, 2014 |
Stock options | |||||||
Stock options, additional disclosures | |||||||
Total intrinsic value of stock options exercised | $1.50 | $3.80 | |||||
Compensation expense | 0.8 | 1 | 2.2 | 2.6 | |||
Restricted stock | |||||||
Stock options, additional disclosures | |||||||
Granted (in shares) | 0 | ||||||
Compensation expense | $1.60 | $1.20 | $4.30 | $3.70 | |||
Performance-based restricted stock | |||||||
Stock options, additional disclosures | |||||||
Granted (in shares) | 192,250 | ||||||
Granted (in dollars per share) | $26.08 | ||||||
Time-based restricted stock | |||||||
Stock options, additional disclosures | |||||||
Granted (in shares) | 3,000 | 95,956 | |||||
Granted (in dollars per share) | $25.36 | $26.08 | |||||
Time-based restricted stock | Board of Directors | |||||||
Stock options, additional disclosures | |||||||
Granted (in shares) | 45,000 | ||||||
Granted (in dollars per share) | $24.50 |
Inventory_Details
Inventory (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | 31-May-14 |
aircraft | aircraft | |
Inventory | ||
Raw materials and parts | $41.70 | 114.1 |
Work-in-process | 19.4 | 57.5 |
Aircraft and engine parts, components and finished goods | 359.6 | 297.3 |
Aircraft held for sale and related support parts | 30.3 | 26.4 |
Total inventories | 451 | 495.3 |
Inventory | ||
Number of aircrafts held for sale | 12 | 9 |
Fixed-wing aircraft | ||
Inventory | ||
Number of aircrafts held for sale | 4 | 5 |
Inventory impairment charge | $4.70 | |
Rotary-wing aircraft | ||
Inventory | ||
Number of aircrafts held for sale | 8 | 4 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 |
Supplemental Cash Flow Information | ||
Interest paid | $32.10 | $30.90 |
Income taxes paid | 11.7 | 9.2 |
Income tax refunds received | $12.10 | $6.60 |
Financing_Arrangements_Details
Financing Arrangements (Details) (USD $) | 9 Months Ended | 0 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Mar. 24, 2015 | Feb. 28, 2015 | Feb. 28, 2014 | 31-May-14 | Nov. 30, 2014 |
Financing Arrangements | |||||||
Total debt | $643.30 | $643.30 | $634 | ||||
Current maturities of debt | -43.9 | -43.9 | -69.7 | ||||
Long-term debt | 599.4 | 599.4 | 564.3 | ||||
Interest expense | |||||||
Amortization of discount | 2 | 4.6 | |||||
7.25% Senior Notes | |||||||
Financing Arrangements | |||||||
Interest rate (as a percent) | 7.25% | 7.25% | |||||
Interest expense | |||||||
Redemption value of senior notes | 325 | 325 | |||||
Make-whole premium of redemeed notes | 45 | 45 | |||||
Credit Facility Amendment | |||||||
Interest expense | |||||||
Maximum borrowing capacity under the credit agreement before amendment | 475 | ||||||
Extended maturity period | 2 years | ||||||
Maximum borrowing capacity | 500 | ||||||
Increase in borrowing capacity | 250 | ||||||
Total borrowing capacity | 750 | ||||||
Revolving credit facility expiring April 24, 2018 with interest payable monthly | |||||||
Financing Arrangements | |||||||
Total debt | 185 | 185 | 130 | ||||
Secured credit facility (secured by aircraft and related engines and components) due April 23, 2015 with floating interest rate, payable monthly | |||||||
Financing Arrangements | |||||||
Total debt | 23 | 23 | 29.9 | ||||
Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1 | |||||||
Financing Arrangements | |||||||
Total debt | 20 | 20 | 30 | ||||
Notes payable due January 15, 2022 with interest at 7.25% payable semi-annually on January 15 and July 15 | |||||||
Financing Arrangements | |||||||
Interest rate (as a percent) | 7.25% | 7.25% | |||||
Total debt | 332 | 332 | 332.6 | ||||
Convertible notes payable | |||||||
Financing Arrangements | |||||||
Carrying value of long-term debt | 49.8 | 49.8 | 49.8 | ||||
Long-term debt: | |||||||
Principal amount | 49.8 | 49.8 | 49.8 | ||||
Unamortized discount | -2.5 | -2.5 | -4.1 | ||||
Net carrying amount | 47.3 | 47.3 | 45.7 | ||||
Equity component, net of tax | 20.6 | 20.6 | 20.6 | ||||
Interest expense | |||||||
Coupon interest | 1.2 | 2.5 | 0.3 | 0.8 | |||
Amortization of deferred financing fees | 0.1 | 0.3 | 0.1 | ||||
Amortization of discount | 1.7 | 4.4 | 0.4 | 1.5 | |||
Interest expense related to convertible notes | 3 | 7.2 | 0.7 | 2.4 | |||
Convertible notes payable due February 1, 2015 with interest at 1.75% payable semi-annually on February 1 and August 1 | |||||||
Financing Arrangements | |||||||
Interest rate (as a percent) | 1.75% | 1.75% | 1.75% | ||||
Amount of convertible notes repurchased | 30 | ||||||
Cash paid for convertible notes repurchased | 31.1 | ||||||
Accrued interest | 1.1 | ||||||
Long-term debt: | |||||||
Net carrying amount | 0 | 0 | 29.8 | ||||
Convertible notes payable due March 1, 2016 with interest at 2.25% payable semi-annually on March 1 and September 1 | |||||||
Financing Arrangements | |||||||
Interest rate (as a percent) | 2.25% | 2.25% | |||||
Total debt | 47.3 | 47.3 | 45.7 | ||||
Long-term debt: | |||||||
Effective interest rate (as a Percent) | 7.41% | 7.41% | |||||
7.25% bonds, 1.75% and 2.25% convertible notes | |||||||
Financing Arrangements | |||||||
Carrying value of long-term debt | 379.4 | 379.4 | |||||
Long-term debt: | |||||||
Principal amount | 379.4 | 379.4 | |||||
7.25% bonds, 1.75% and 2.25% convertible notes | Significant other observable inputs (Level 2) | |||||||
Financing Arrangements | |||||||
Estimated fair value of long-term debt | 407.6 | 407.6 | |||||
Remaining variable rate and fixed rate debt | Significant other unobservable inputs (Level 3) | |||||||
Financing Arrangements | |||||||
Estimated fair value of long-term debt | 264 | 264 | |||||
Mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015 with interest at 5.01% | |||||||
Long-term debt: | |||||||
Net carrying amount | 11 | 11 | 11 | ||||
Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 | |||||||
Long-term debt: | |||||||
Net carrying amount | 25 | 25 | 25 | ||||
Other | |||||||
Financing Arrangements | |||||||
Total debt | $36 | $36 | $65.80 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (USD $) | Feb. 28, 2015 | 31-May-14 |
In Millions, unless otherwise specified | ||
Derivative Instruments and Hedging Activities | ||
Number of derivative financial instruments | 2 | |
Interest rate cap | Derivatives designated as hedging instruments: | ||
Fair value carrying amount of the Company's interest rate derivatives | ||
Derivative Assets | $0.10 | $0.10 |
Interest rate cap | Derivatives designated as hedging instruments: | Cash flow hedges | ||
Derivative Instruments and Hedging Activities | ||
Notional amount under revolving credit agreement | 50 | |
Interest rate swap | Derivatives designated as hedging instruments: | ||
Fair value carrying amount of the Company's interest rate derivatives | ||
Derivative Liabilities | -2.3 | -2.8 |
Interest rate swap | Derivatives designated as hedging instruments: | Cash flow hedges | ||
Derivative Instruments and Hedging Activities | ||
Notional amount under revolving credit agreement | 50 | |
Interest Rate Swap and Cap Agreements | Derivatives designated as hedging instruments: | ||
Derivative Instruments and Hedging Activities | ||
Settlement of floating-to-fixed interest rate swap and interest rate cap agreement | $2.60 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities (Details 2) (Cash flow hedges, USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Cash flow hedges | ||||
Impact of the interest rate swap and interest cap agreement on the condensed consolidated statement of income | ||||
Amount of unrealized gain recorded in other accumulated comprehensive income (loss) | $0.40 | $0.30 | $0 | $0.60 |
Earnings_per_Share_Details
Earnings per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Earnings per Share | ||||
Effect to the participating securities as result of net loss | $0 | |||
Antidilutive stock options excluded from the computation of diluted earnings per share (in shares) | 169,163 | 170,000 | ||
Reconciliation of the computations of basic and diluted earnings per share | ||||
Income from continuing operations | 1.9 | 16.9 | 27.6 | 52.3 |
Less income attributable to participating shares | -0.1 | -0.4 | -0.6 | -1.2 |
Income from continuing operations attributable to common shareholders | 1.8 | 16.5 | 27 | 51.1 |
Income (Loss) from discontinued operations attributable to common shareholders | -36.4 | 1 | -32.5 | 3.5 |
Net income attributable to AAR available to common shareholders | ($34.60) | $17.50 | ($5.50) | $54.60 |
Weighted average common shares outstanding - basic | 38,700,000 | 38,600,000 | 38,700,000 | 38,600,000 |
Additional shares from the assumed exercise of stock options | 500,000 | 500,000 | 500,000 | 500,000 |
Weighted average common shares outstanding - diluted | 39,200,000 | 39,100,000 | 39,200,000 | 39,100,000 |
Earnings (Loss) per share - basic: | ||||
Earnings from continuing operations (in dollors per share) | $0.05 | $0.43 | $0.70 | $1.32 |
Earnings from discontinued operations (in dollors per share) | ($0.94) | $0.02 | ($0.84) | $0.09 |
Earnings per share - basic (in dollars per share) | ($0.89) | $0.45 | ($0.14) | $1.41 |
Earnings (Loss) per share - diluted: | ||||
Earnings from continuing operations (in dollors per share) | $0.05 | $0.43 | $0.69 | $1.31 |
Earnings (loss) from discontinued operations (in dollors per share) | ($0.94) | $0.02 | ($0.84) | $0.09 |
Earnings (loss) per share - diluted (in dollars per share) | ($0.89) | $0.45 | ($0.15) | $1.40 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Loss (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Nov. 30, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | ($52.80) | ($29.90) | ($29.30) | ($29.30) | ($42.50) |
Other comprehensive income (loss) before reclassifications | -25.7 | 4.5 | -49.3 | 16.6 | |
Amounts reclassified from AOCL | -0.2 | 0.2 | -0.1 | 0.7 | |
Other comprehensive (loss) income, net of tax | -25.9 | 4.7 | -49.4 | 17.3 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | -78.7 | -25.2 | -78.7 | -25.2 | |
Accumulated Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | -15.1 | 6.4 | 8.7 | 8.7 | -5.4 |
Other comprehensive income (loss) before reclassifications | -26.1 | 4.2 | -49.9 | 16 | |
Other comprehensive (loss) income, net of tax | -26.1 | 4.2 | -49.9 | 16 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | -41.2 | 10.6 | -15.1 | -41.2 | 10.6 |
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | -35.3 | -33.3 | -35.4 | -35.4 | -33.8 |
Amounts reclassified from AOCL | -0.2 | 0.2 | -0.1 | 0.7 | |
Other comprehensive (loss) income, net of tax | -0.2 | 0.2 | -0.1 | 0.7 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | -35.5 | -33.1 | -35.3 | -35.5 | -33.1 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance | -2.4 | -3 | -2.6 | -2.6 | -3.3 |
Other comprehensive income (loss) before reclassifications | 0.4 | 0.3 | 0.6 | 0.6 | |
Other comprehensive (loss) income, net of tax | 0.4 | 0.3 | 0.6 | 0.6 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance | ($2) | ($2.70) | ($2.40) | ($2) | ($2.70) |
Business_Segment_Information_D
Business Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Business Segment Information | ||||
Sales | $380.10 | $399.80 | $1,178.50 | $1,288.50 |
Gross Profit | 50.1 | 66.2 | 179.7 | 215.4 |
Aviation Services | ||||
Business Segment Information | ||||
Sales | 318.4 | 289.7 | 955.9 | 923.5 |
Gross Profit | 50.7 | 38.3 | 152.8 | 125.5 |
Expeditionary Services | ||||
Business Segment Information | ||||
Sales | 61.7 | 110.1 | 222.6 | 365 |
Gross Profit | ($0.60) | $27.90 | $26.90 | $89.90 |
Business_Segment_Information_D1
Business Segment Information (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2015 | Feb. 28, 2014 | Feb. 28, 2015 | Feb. 28, 2014 |
Reconciliation of segment gross profit to consolidated income before provision for income taxes | ||||
Segment gross profit | $50.10 | $66.20 | $179.70 | $215.40 |
Selling, general and administrative | -41.7 | -37.7 | -120.3 | -120.3 |
Earnings from joint ventures | 0.6 | 0.6 | 1.8 | 2.5 |
Interest expense | -6.4 | -7.1 | -19.4 | -21.9 |
Interest income | 0.3 | 0.2 | 0.9 | |
Income before provision for income taxes | $2.60 | $22.30 | $42 | $76.60 |