AAR (AIR) 10-Q 23 Mar 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Feb. 29, 2016shares
Document and Entity Information
Entity Registrant Name	AAR CORP
Entity Central Index Key	1,750
Document Type	10-Q
Document Period End Date	Feb. 29, 2016
Amendment Flag	false
Current Fiscal Year End Date	--05-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	34,748,311
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Feb. 29, 2016	May. 31, 2015
Current assets:
Cash and cash equivalents	$ 50.4	$ 54.7
Accounts receivable, less allowances of $3.9 and $5.8, respectively	249.9	229
Inventories	458.1	456
Rotable spares and equipment on or available for short-term lease	119.1	110.7
Assets of discontinued operations	10.3	17
Deposits, prepaids and other	35.2	28.4
Deferred tax assets	47.7	58.3
Total current assets	970.7	954.1
Property, plant and equipment, net of accumulated depreciation of $435.3 and $398.5, respectively	222.4	214.8
Other assets:
Goodwill	115.2	123.5
Intangible assets, net of accumulated amortization of $24.9 and $22.5, respectively	37.7	36.7
Equipment on or available for long-term lease	81	80.2
Investment in joint ventures	17.3	20.5
Other	77.7	85.2
Total other assets	328.9	346.1
Total assets	1,522	1,515
Current liabilities:
Current maturities of long-term debt	35.7	69
Accounts and trade notes payable	162	142.3
Accrued liabilities	162	200.7
Total current liabilities	359.7	412
Long-term debt, less current maturities	160	85
Deferred tax liabilities	79.8	104.6
Other liabilities and deferred income	64.2	68.3
Total noncurrent liabilities	$ 304	$ 257.9
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 45,050,881 and 44,895,934 shares at cost, respectively	$ 45.1	$ 44.9
Capital surplus	447.8	442.6
Retained earnings	672.2	644.3
Treasury stock, 10,302,570 and 9,473,058 shares at cost, respectively	(266.4)	(246.3)
Accumulated other comprehensive loss	(40.4)	(40.4)
Total equity	858.3	845.1
Total liabilities and equity	$ 1,522	$ 1,515

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Feb. 29, 2016	May. 31, 2015
Condensed Consolidated Balance Sheets
Accounts receivable, allowances (in dollars)	$ 3.9	$ 5.8
Property, plant and equipment, accumulated depreciation (in dollars)	435.3	398.5
Intangible assets, accumulated amortization (in dollars)	$ 24.9	$ 22.5
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	45,050,881	44,895,934
Treasury stock, shares	10,302,570	9,473,058

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Sales:
Sales from products	$ 220.1	$ 213.9	$ 661.2	$ 656.9
Sales from services	182.7	166.2	543.2	521.6
Total sales	402.8	380.1	1,204.4	1,178.5
Costs and operating expenses:
Cost of products	183	184.5	553.8	568.6
Cost of services	161.5	145.5	477.9	430.2
Selling, general and administrative	42.6	41.7	124.5	120.3
Total costs and operating expenses	387.1	371.7	1,156.2	1,119.1
Earnings (Loss) from joint ventures		0.6	(0.4)	1.8
Operating income	15.7	9	47.8	61.2
Loss on extinguishment of debt			(0.4)
Interest expense	(1.7)	(6.4)	(5.2)	(19.4)
Interest income	0.1		0.2	0.2
Income from continuing operations before provision for income taxes	14.1	2.6	42.4	42
Provision for income taxes	3.4	0.7	13.1	14.4
Income from continuing operations attributable to AAR	10.7	1.9	29.3	27.6
Discontinued operations:
Operating income (loss)	(0.8)	(0.5)	(9.3)	4.1
Gain from contingent consideration			27.7
Impairment charge		(46.4)		(46.4)
Provision for income taxes (benefit)	5.1	(10.6)	12	(10)
Income (Loss) from discontinued operations	(5.9)	(36.3)	6.4	(32.3)
Income attributable to noncontrolling interest from discontinued operations		(0.1)		(0.2)
Income (Loss) from discontinued operations attributable to AAR	(5.9)	(36.4)	6.4	(32.5)
Net income attributable to AAR	$ 4.8	$ (34.5)	$ 35.7	$ (4.9)
Earnings (Loss) per share - basic:
Earnings from continuing operations	$ 0.31	$ 0.05	$ 0.84	$ 0.70
Earnings (Loss) from discontinued operations	(0.17)	(0.94)	0.19	(0.84)
Earnings (Loss) per share - basic	0.14	(0.89)	1.03	(0.14)
Earnings (Loss) per share - diluted:
Earnings from continuing operations	0.31	0.05	0.84	0.69
Earnings (Loss) from discontinued operations	(0.17)	(0.94)	0.19	(0.84)
Earnings (Loss) per share-diluted	$ 0.14	$ (0.89)	$ 1.03	$ (0.15)

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Condensed Consolidated Statements of Comprehensive Income
Net income (loss) attributable to AAR and noncontrolling interest	$ 4.8	$ (34.4)	$ 35.7	$ (4.7)
Other comprehensive income (loss), net of tax expense (benefit):
Currency translation adjustments, net of tax of $0 and ($0.6) for the three months ended February 29, 2016 and February 28, 2015, respectively, and $0 and $0.6 for the nine months ended February 29, 2016 and February 28, 2015, respectively	(1.8)	(26.1)	(0.8)	(49.9)
Unrealized gain (loss) on derivative instruments:
Unrealized gain (loss) arising during period, net of tax of $0 and $0.1 for the three months ended February 29, 2016 and February 28, 2015, respectively, and $0 and $0.3 for the nine months ended February 29, 2016 and February 28, 2015, respectively		0.4		0.6
Pension and other post-retirement plans:
Amortization of actuarial loss and prior service cost included in net income, net of tax of $0.1 and $0 for the three months ended February 29, 2016 and 2015, respectively, and $0.4 and $0.1 for the nine months ended February 29, 2016 and 2015, respectively	0.3	(0.2)	0.8	(0.1)
Other comprehensive income (loss), net of tax	(1.5)	(25.9)		(49.4)
Comprehensive income (loss), net of tax	3.3	(60.3)	35.7	(54.1)
Comprehensive income related to noncontrolling interest		(0.1)		(0.2)
Comprehensive income (loss) attributable to AAR	$ 3.3	$ (60.4)	$ 35.7	$ (54.3)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Condensed Consolidated Statements of Comprehensive Income
Currency translation adjustments, tax	$ 0	$ (0.6)	$ 0	$ 0.6
Unrealized gain (loss) arising during period, tax	0	0.1	0	0.3
Amortization of actuarial loss and prior service cost included in net income, tax	$ 0.1	$ 0	$ 0.4	$ 0

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Cash flows provided from (used in) operating activities:
Net income (loss) attributable to AAR and noncontrolling interest	$ 35.7	$ (4.7)
Less: Loss (Income) from discontinued operations	(6.4)	32.3
Income from continuing operations attributable to AAR	29.3	27.6
Adjustments to reconcile net income to net cash provided from (used in) operating activities:
Depreciation and intangible amortization	37	41.4
Impairment Charges		4.7
Amortization of stock-based compensation	6.2	6.5
Amortization of debt discount	1.3	2
Amortization of overhaul costs	16.3	14.7
Deferred tax provision (benefit)	7.5	(7.1)
Loss on extinguishment of debt	0.4
Loss (Earnings) from joint ventures	0.4	(1.7)
Changes in certain assets and liabilities:
Accounts receivable	(24.1)	(25.2)
Inventories	(40.4)	(58.3)
Rotable spares and equipment on or available for short-term lease	(8.3)	(4.6)
Equipment on or available for long-term lease	(7.7)	(21.3)
Accounts and trade notes payable	20.5	26.5
Accrued and other liabilities	(34.4)	6.4
Other, primarily program and overhaul costs	(18.1)	(7.2)
Net cash provided from (used in) operating activities - continuing operations	(14.1)	4.4
Net cash provided from (used in) operating activities -discontinued operations	0.2	4.6
Net cash provided from (used in) operating activities	(13.9)	9
Cash flows provided from (used in) investing activities:
Property, plant and equipment expenditures	(74.2)	(19.9)
Proceeds from sale-leaseback	38.5
Payments for acquisitions	(4.8)	(1)
Proceeds from asset disposals	6.5	1.2
Other	1.1	(0.5)
Net cash used in investing activities - continuing operations	(32.9)	(20.2)
Net cash provided from used in investing activities - discontinued operations	26.9	(3.7)
Net cash used in investing activities	(6)	(23.9)
Cash flows provided from (used in) financing activities:
Short-term borrowings (repayments), net	85	55
Reduction in long-term borrowings	(44.9)	(46.8)
Cash dividends	(7.8)	(8.9)
Purchase of treasury stock	(17.4)	(1.7)
Other	1.1	(0.3)
Net cash provided from (used in) financing activities -continuing operations	16	(2.7)
Net cash used in financing activities - discontinued operations		(0.6)
Net cash provided from (used in) financing activities	16	(3.3)
Effect of exchange rate changes on cash	(0.4)	(4)
Decrease in cash and cash equivalents	(4.3)	(22.2)
Cash and cash equivalents, beginning of period	54.7	89.2
Cash and cash equivalents, end of period	$ 50.4	$ 67

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Changes in Equity - 9 months ended Feb. 29, 2016 - USD ($) $ in Millions	Common Stock	Capital Surplus	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Balance at May. 31, 2015	$ 44.9	$ 442.6	$ 644.3	$ (246.3)	$ (40.4)	$ 845.1
Increase (Decrease) in Stockholders' Equity
Net income			35.7			35.7
Cash dividends			(7.8)			(7.8)
Stock option activity		2		2		4
Restricted stock activity	0.2	3.4		(4.7)		(1.1)
Repurchase of shares				(17.4)		(17.4)
Equity portion of bond repurchase		(0.2)				(0.2)
Balance at Feb. 29, 2016	$ 45.1	$ 447.8	$ 672.2	$ (266.4)	$ (40.4)	$ 858.3

Basis of Presentation

Basis of Presentation	9 Months Ended
	Feb. 29, 2016
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, 2015 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 29, 2016, the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income for the three- and nine-month periods ended February 29, 2016 and February 28, 2015, the Condensed Consolidated Statements of Cash Flows for the nine-month periods ended February 29, 2016 and February 28, 2015, and the Condensed Consolidated Statement of Changes in Equity for the nine-month period ended February 29, 2016. The results of operations for such interim periods are not necessarily indicative of the results for the full year. New Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity which requires that a disposal representing a strategic shift that has or will have a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. This ASU also expands the disclosure requirements for discontinued operations and adds new disclosures for individually significant dispositions that do not qualify as discontinued operations. The Company adopted this guidance on June 1, 2015 which resulted in expanded disclosures related to the income statement and cash flow activities of our discontinued operations. In May 2014, the FASB issued 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 also supersedes certain cost guidance included in Subtopic 605-35, Revenue Recognition-Construction-Type and Production-Type Contracts . In August 2015, the FASB issued ASU No. 2015-14 which deferred the effective date of the new standard by one year which will make the new standard effective for us beginning June 1, 2018. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs . This ASU amends existing guidance to require the presentation of debt issuance costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of a deferred charge. This new standard will be effective for us beginning June 1, 2016. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes . This ASU amends existing guidance to require the presentation of deferred tax liabilities and assets as noncurrent within a classified statement of financial position. Adoption of this new standard may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. This new standard will be effective for us beginning June 1, 2017 with early adoption permitted. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases . This ASU amends the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets, including those classified as operating leases under the current accounting guidance. In addition, this ASU will require new qualitative and quantitative disclosures about the Company’s leasing activities. This new standard will be effective for us beginning June 1, 2019 with early adoption permitted. This ASU requires a modified retrospective transition approach for all leases existing at, or entered into after, the date of initial application, with an option to use certain transition relief. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Feb. 29, 2016
Discontinued operations:
Discontinued Operations	Note 2 — Discontinued Operations On March 26, 2015, we completed the sale of our Telair Cargo Group to TransDigm, Inc. The Telair Cargo Group was comprised of Telair International, Telair US, and Nordisk Aviation Products. Cash received at closing in the fourth quarter of fiscal 2015 before fees and expenses was $705 million. The sale also allowed for contingent consideration of up to $35 million based on the occurrence of certain post-closing events related to the A400M cargo system. We recognized a pre-tax gain on the sale (net of transaction expenses and fees) of $198.6 million in the fourth quarter of fiscal 2015. In the first quarter of fiscal 2016, we recognized a gain of $27.7 million net of expenses representing the resolution of the contingent consideration related to the A400M cargo system. During fiscal 2015, we also announced our intention to sell our Precision Systems Manufacturing (“PSM”) business comprised of our metal and composite machined and fabricated parts manufacturing operations. We recognized impairment charges of $57.5 million during fiscal 2015 to reduce the carrying value of the PSM business’s net assets to their expected value at the time of sale. Telair Cargo Group and PSM are reported as discontinued operations in the Condensed Consolidated Statements of Operations for all periods presented. Interest expense allocated to discontinued operations was $0 million and $2.8 million during the three months ended February 29, 2016 and February 28, 2015, respectively, and $0 million and $8.4 million during the nine months ended February 29, 2016 and February 28, 2015, respectively. No amounts for general corporate overhead were allocated to discontinued operations. Liabilities of discontinued operations of $5.8 million and $5.4 million at February 29, 2016 and May 31, 2015, respectively, were classified as Accrued Liabilities on the Condensed Consolidated Balance Sheet. Operating income (loss) from discontinued operations was comprised of the following: Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Sales $ $ $ $ Cost of sales ) ) ) ) Selling, general and administrative expenses ) ) ) ) Interest expense, net — ) — ) Operating income (loss) from discontinued operations $ ) $ ) $ ) $

Revenue Recognition

Revenue Recognition	9 Months Ended
	Feb. 29, 2016
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 large airframe maintenance contracts and performance-based logistics programs are recognized by the percentage of completion method, based on the relationship of costs incurred to date to the estimated total costs. 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 29, 2016 and May 31, 2015, are $24.6 million and $21.1 million, respectively, of unbilled accounts receivable related to a defense-related supply program. 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.

Accounting for Stock-Based Comp

Accounting for Stock-Based Compensation	9 Months Ended
	Feb. 29, 2016
Accounting for Stock-Based Compensation
Accounting for Stock-Based Compensation	Note 4 — Accounting for Stock-Based Compensation Restricted Stock In August 2015, as part of our annual long-term stock incentive compensation, we granted 109,269 shares of performance-based restricted stock and 28,069 shares of time-based restricted stock to eligible employees. The grant date fair value per share for both grants was $26.62. In June 2015, 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 $29.54. Expense charged to operations for restricted stock was $1.4 million and $1.6 million during the three months ended February 29, 2016 and February 28, 2015, respectively, and $3.6 million and $4.3 million during the nine months ended February 29, 2016 and February 28, 2015, respectively. Stock Options The total intrinsic value of stock options exercised during the nine months ended February 29, 2016 and February 28, 2015 was $0.9 million and $1.5 million, respectively. Expense charged to operations for stock options was $0.9 million and $0.8 million during the three months ended February 29, 2016 and February 28, 2015, respectively, and $2.6 million and $2.2 million during the nine months ended February 29, 2016 and February 28, 2015, respectively.

Inventory

Inventory	9 Months Ended
	Feb. 29, 2016
Inventory
Inventory	Note 5 — Inventory The summary of inventories is as follows: February 29, May 31, 2016 2015 Raw materials and parts $ $ Work-in-process Aircraft and engine parts, components and finished goods Aircraft held for sale and related support parts $ $ We had eight aircraft held for sale comprised of five fixed-wing and three rotary-wing aircraft at February 29, 2016 and eleven aircraft held for sale comprised of five fixed-wing and six rotary-wing aircraft at May 31, 2015.

Aircraft Sale-Leaseback Transac

Aircraft Sale-Leaseback Transactions	9 Months Ended
	Feb. 29, 2016
Aircraft Sale-Leaseback Transactions
Aircraft Sale-Leaseback Transactions	Note 6 — Aircraft Sale-Leaseback Transactions During the fourth quarter of fiscal 2015, we entered into a sale-leaseback transaction for our two S-92 rotary-wing aircraft resulting in the recognition of a loss of $1.1 million. We received proceeds of $40.3 million in fiscal 2015 which were deferred as a sale-leaseback advance pending completion of the sale transactions. Both of the S-92 aircraft sales were completed in fiscal 2016. During the nine-month period ended February 29, 2016, we received proceeds of $38.5 million from sale-leaseback transactions for two AW-189 rotary-wing aircraft. The $1.7 million gain realized on the sale has been deferred and is being amortized over the lease term of ten years.

Income Taxes

Income Taxes	9 Months Ended
	Feb. 29, 2016
Income Taxes
Income Taxes	Note 7 — Income Taxes During the third quarter of fiscal 2016, we completed a reconciliation of our tax basis assets and liabilities and an analysis of our income tax payable which identified prior year immaterial errors netting to $0.2 million. The correction of these errors was recognized in the three months ended February 29, 2016 with $2.7 million recognized as income tax expense in discontinued operations and $2.5 million recognized as income tax benefit within income from continuing operations. Further, in connection with the reconciliation of our tax basis assets and liabilities, we corrected certain amounts within deferred tax assets and liabilities, accrued liabilities, and goodwill on our condensed consolidated balance sheet as of February 29, 2016. We have concluded these errors were not material to any prior reporting periods. During the third quarter of fiscal 2016, we recognized $2.8 million of income tax expense in discontinued operations related to changes in estimates associated with tax provision to federal income tax return filing differences.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Feb. 29, 2016
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 8 — Supplemental Cash Flow Information Nine Months Ended February 29/28, 2016 2015 Interest paid $ $ Income taxes paid Income tax refunds received

Financing Arrangements

Financing Arrangements	9 Months Ended
	Feb. 29, 2016
Financing Arrangements
Financing Arrangements	Note 9 — Financing Arrangements A summary of the carrying amount of our debt is as follows: February 29, May 31, 2016 2015 Revolving Credit Facility expiring March 24, 2020 with interest payable monthly $ $ Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1 Convertible notes payable due March 1, 2016 with interest at 2.25% payable semi-annually on March 1 and September 1 Mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015 — Total debt Current maturities of debt ) ) Long-term debt $ $ At February 29, 2016, the carrying value of our variable rate and fixed rate debt had a fair value that approximates the carrying value of $195.7 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 restrictions that relate to the payment of cash dividends, maintenance of debt-to-EBITDA and interest coverage ratios, 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 August 31, 2015, we repurchased $14.4 million of our outstanding 2.25% convertible notes due March 1, 2016 for $14.6 million cash including $0.2 million of accrued interest and recognized a $0.3 million loss on the early extinguishment of the notes. During the three-month period ended November 30, 2015, we repurchased $9.7 million of our outstanding 2.25% convertible notes due March 1, 2016 for $9.7 million cash and recognized a $0.1 million loss on the early extinguishment of the notes. On March 1, 2016, we retired the remaining balance of our 2.25% convertible notes at maturity for $26.0 million cash including accrued interest of $0.3 million. The interest expense associated with convertible notes was as follows: Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Coupon interest $ $ $ $ Amortization of deferred financing fees — — — Amortization of discount Interest expense related to convertible notes $ $ $ $

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	9 Months Ended
	Feb. 29, 2016
Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities	Note 10 — Derivative Instruments and Hedging Activities We are exposed to interest rate risk associated with fluctuations in interest rates on our variable rate debt. Prior to the fourth quarter of fiscal 2015, we utilized two derivative financial instruments to manage our variable interest rate exposure. We utilized a floating-to-fixed interest rate swap and an interest rate cap agreement with each hedging $50.0 million of notional principal interest under our Revolving Credit Facility. In connection with the Amendment of our Revolving Credit Facility, we settled our floating-to-fixed interest rate swap and interest rate cap agreements in the fourth quarter of fiscal 2015 for approximately $2.6 million. Prior to the settlement, the derivative instruments were classified as cash flow hedges with gains and losses on the derivative instruments included in other comprehensive income. We recognized gains and losses on our derivative instruments as an adjustment to interest expense in the period the hedged interest payment affected earnings.

Earnings per Share

Earnings per Share	9 Months Ended
	Feb. 29, 2016
Earnings per Share
Earnings per Share	Note 11 — 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 for that issuance 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 restricted stock awards are deemed participating securities since these shares are entitled to participate in dividends declared on common shares. 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 29, 2016 and February 28, 2015. Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Basic and Diluted EPS : Income from continuing operations $ $ $ $ Less income attributable to participating shares ) ) ) ) Income from continuing operations attributable to common shareholders Income (Loss) from discontinued operations attributable to common shareholders ) ) ) Net income (loss) attributable to common shareholders For earnings per share — basic and diluted $ $ ) $ $ ) Weighted Average Shares: Weighted average common shares outstanding — basic Additional shares from the assumed exercise of stock options Weighted average common shares outstanding — diluted Earnings per share — basic: Earnings from continuing operations $ $ $ $ Earnings (Loss) from discontinued operations ) ) ) Earnings per share — basic $ $ ) $ $ ) Earnings per share — diluted: Earnings from continuing operations $ $ $ $ Earnings (Loss) from discontinued operations ) ) ) Earnings per share — diluted $ $ ) $ $ ) At February 29, 2016 and February 28, 2015, respectively, stock options to purchase 178,490 shares and 169,163 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 Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Feb. 29, 2016
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	Note 12 — Accumulated Other Comprehensive Loss Changes in our accumulated other comprehensive loss (“AOCL”) by component for the three- and nine-month periods ended February 29, 2016 and February 28, 2015 were as follows: Currency Translation Adjustments Pensions Plans Derivative Instruments Total Balance at December 1, 2015 $ ) $ ) $ — $ ) Other comprehensive income before reclassifications ) — — ) Amounts reclassified from AOCL — — Total other comprehensive income ) — ) Balance at February 29, 2016 $ ) $ ) $ — $ ) Balance at December 1, 2014 $ ) $ ) $ ) $ ) Other comprehensive loss before reclassifications ) — ) Amounts reclassified from AOCL — ) — ) Total other comprehensive loss ) ) ) Balance at February 28, 2015 $ ) $ ) $ ) $ ) Currency Translation Adjustments Pensions Plans Derivative Instruments Total Balance at June 1, 2015 $ $ ) $ — $ ) Reclassification within AOCL ) — — Other comprehensive income before reclassifications from AOCL ) — — ) Amounts reclassified from AOCL — — Total other comprehensive income ) — — Balance at February 29, 2016 $ ) $ ) $ — $ ) Balance at June 1, 2014 $ $ ) $ ) $ ) Other comprehensive income before reclassifications ) — ) Amounts reclassified from AOCL — ) — ) Total other comprehensive income (loss) ) ) ) Balance at February 28, 2015 $ ) $ ) $ ) $ )

Acquisition

Acquisition	9 Months Ended
	Feb. 29, 2016
Acquisition
Acquisition	Note 13 — Acquisition On December 4, 2015, we acquired certain assets of Vantem Modular LLC, which designs, manufactures, and distributes modular shelters. The purchase price of the acquisition was $4.8 million paid at closing with future royalties of up to $5.0 million. The purchase price has been allocated to intangible assets on a preliminary basis pending completion of the evaluation of the fair value of the assets acquired and liabilities assumed. This business will operate as part of our Expeditionary Services segment.

Business Segment Information

Business Segment Information	9 Months Ended
	Feb. 29, 2016
Business Segment Information
Business Segment Information	Note 14 — Business Segment Information Consistent with how our chief operating decision making officer (Chief Executive Officer) evaluates performance and the way we are organized internally, we report our activities in two business segments: Aviation Services comprised of supply chain and maintenance, repair and overhaul (“MRO”) activities and Expeditionary Services comprised of airlift and mobility activities. 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. We also sell and lease used commercial aircraft (exclusively through joint ventures following the sale of our last two wholly-owned aircraft in the fourth quarter of fiscal 2015). 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. Department of Defense (“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. 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, 2015. Our chief operating decision making 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 29/28, February 29/28, 2016 2015 2016 2015 Sales: Aviation Services $ $ $ $ Expeditionary Services $ $ $ $ Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Gross profit (loss): Aviation Services $ $ $ $ Expeditionary Services ) ) $ $ $ $ The following table reconciles segment gross profit to consolidated income before provision for income taxes. Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Segment gross profit $ $ $ $ Selling, general and administrative ) ) ) ) Earnings (Loss) from joint ventures — ) Loss on extinguishment of debt — — ) — Interest expense ) ) ) ) Interest income — Income before provision for income taxes $ $ $ $

Legal Proceedings

Legal Proceedings	9 Months Ended
	Feb. 29, 2016
Legal Proceedings
Legal Proceedings	Note 15 — Legal Proceedings DynCorp International LLC v. AAR Airlift Group, Inc. On November 5, 2015, AAR Airlift Group, Inc. (“AAR Airlift”), a wholly-owned subsidiary of AAR CORP. filed a motion to dismiss a First Amended Complaint filed by DynCorp International LLC (“DynCorp”) alleging that AAR Airlift misappropriated DynCorp’s trade secrets in connection with the submission of proposals pursuant to the solicitation issued by the Department of State Bureau of International Narcotics and Law Enforcement Affairs, Office of Aviation (“INL/A”) in support of the WASS program. On January 14, 2016, the Court granted AAR Airlift’s motion to dismiss the First Amended Complaint. On February 2, 2016, DynCorp filed an appeal to the United States Court of Appeals for the Eleventh Circuit with respect to the Court’s order on the motion to dismiss and other orders issued by the Court in this case. AAR Airlift will continue to defend itself vigorously against DynCorp’s lawsuit and any attempt to invalidate or interfere with AAR Airlift’s lawful participation in the INL/A contract award competition. OIG Investigation The U.S. Department of State received — and referred to its Office of Inspector General (“OIG”) — a May 2015 letter from DynCorp in which DynCorp made substantially the same allegations against AAR Airlift as set forth in both its original complaint and its First Amended Complaint. The OIG is investigating these allegations, and AAR Airlift is cooperating fully in that investigation.

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Feb. 29, 2016
Discontinued operations:
Schedule of Operating income from discontinued operations	Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Sales $ $ $ $ Cost of sales ) ) ) ) Selling, general and administrative expenses ) ) ) ) Interest expense, net — ) — ) Operating income (loss) from discontinued operations $ ) $ ) $ ) $

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Feb. 29, 2016
Inventory
Summary of inventories	February 29, May 31, 2016 2015 Raw materials and parts $ $ Work-in-process Aircraft and engine parts, components and finished goods Aircraft held for sale and related support parts $ $

Supplemental Cash Flow Inform26

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Feb. 29, 2016
Supplemental Cash Flow Information
Schedule of supplemental information on cash flow	Nine Months Ended February 29/28, 2016 2015 Interest paid $ $ Income taxes paid Income tax refunds received

Financing Arrangements (Tables)

Financing Arrangements (Tables)	9 Months Ended
	Feb. 29, 2016
Financing Arrangements
Summary of carrying amount of debt	February 29, May 31, 2016 2015 Revolving Credit Facility expiring March 24, 2020 with interest payable monthly $ $ Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1 Convertible notes payable due March 1, 2016 with interest at 2.25% payable semi-annually on March 1 and September 1 Mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015 — Total debt Current maturities of debt ) ) Long-term debt $ $
Schedule of interest expense associated with the convertible notes	Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Coupon interest $ $ $ $ Amortization of deferred financing fees — — — Amortization of discount Interest expense related to convertible notes $ $ $ $

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Feb. 29, 2016
Earnings per Share
Reconciliation of the computations of basic and diluted earnings per share information	Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Basic and Diluted EPS : Income from continuing operations $ $ $ $ Less income attributable to participating shares ) ) ) ) Income from continuing operations attributable to common shareholders Income (Loss) from discontinued operations attributable to common shareholders ) ) ) Net income (loss) attributable to common shareholders For earnings per share — basic and diluted $ $ ) $ $ ) Weighted Average Shares: Weighted average common shares outstanding — basic Additional shares from the assumed exercise of stock options Weighted average common shares outstanding — diluted Earnings per share — basic: Earnings from continuing operations $ $ $ $ Earnings (Loss) from discontinued operations ) ) ) Earnings per share — basic $ $ ) $ $ ) Earnings per share — diluted: Earnings from continuing operations $ $ $ $ Earnings (Loss) from discontinued operations ) ) ) Earnings per share — diluted $ $ ) $ $ )

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Feb. 29, 2016
Accumulated Other Comprehensive Loss
Schedule of changes in accumulated other comprehensive loss ("AOCL") by component	Currency Translation Adjustments Pensions Plans Derivative Instruments Total Balance at December 1, 2015 $ ) $ ) $ — $ ) Other comprehensive income before reclassifications ) — — ) Amounts reclassified from AOCL — — Total other comprehensive income ) — ) Balance at February 29, 2016 $ ) $ ) $ — $ ) Balance at December 1, 2014 $ ) $ ) $ ) $ ) Other comprehensive loss before reclassifications ) — ) Amounts reclassified from AOCL — ) — ) Total other comprehensive loss ) ) ) Balance at February 28, 2015 $ ) $ ) $ ) $ ) Currency Translation Adjustments Pensions Plans Derivative Instruments Total Balance at June 1, 2015 $ $ ) $ — $ ) Reclassification within AOCL ) — — Other comprehensive income before reclassifications from AOCL ) — — ) Amounts reclassified from AOCL — — Total other comprehensive income ) — — Balance at February 29, 2016 $ ) $ ) $ — $ ) Balance at June 1, 2014 $ $ ) $ ) $ ) Other comprehensive income before reclassifications ) — ) Amounts reclassified from AOCL — ) — ) Total other comprehensive income (loss) ) ) ) Balance at February 28, 2015 $ ) $ ) $ ) $ )

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Feb. 29, 2016
Business Segment Information
Selected financial information for each reportable segment	Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Sales: Aviation Services $ $ $ $ Expeditionary Services $ $ $ $ Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Gross profit (loss): Aviation Services $ $ $ $ Expeditionary Services ) ) $ $ $ $
Schedule of reconciliation of segment gross profit to income from continuing operations before provision for income taxes	Three Months Ended Nine Months Ended February 29/28, February 29/28, 2016 2015 2016 2015 Segment gross profit $ $ $ $ Selling, general and administrative ) ) ) ) Earnings (Loss) from joint ventures — ) Loss on extinguishment of debt — — ) — Interest expense ) ) ) ) Interest income — Income before provision for income taxes $ $ $ $

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($)	3 Months Ended				9 Months Ended		12 Months Ended
	Feb. 29, 2016	Aug. 31, 2015	May. 31, 2015	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	May. 31, 2015
Discontinued Operations
Recognized impairment charge				$ 46,400,000		$ 46,400,000
Interest Expense	$ 1,700,000			6,400,000	$ 5,200,000	19,400,000
Operating income from discontinued operations
Operating income (loss) from discontinued operations	(800,000)			(500,000)	(9,300,000)	4,100,000
Telair Cargo Group and PSM | Discontinued Operations, Held-for-sale or Disposed of by Sale
Discontinued Operations
Interest Expense	0			2,800,000	0	8,400,000
General corporate overhead					0
Liabilities of discontinued operations	5,800,000		$ 5,400,000		5,800,000		$ 5,400,000
Operating income from discontinued operations
Sales	12,600,000			91,800,000	34,300,000	252,600,000
Costs of Sales	(12,100,000)			(80,000,000)	(39,200,000)	(216,600,000)
Selling, general and administrative expenses	(1,300,000)			(9,300,000)	(4,400,000)	(22,700,000)
Interest expense, net				(3,000,000)		(9,200,000)
Operating income (loss) from discontinued operations	$ (800,000)			$ (500,000)	$ (9,300,000)	$ 4,100,000
Telair Cargo Group | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Cash consideration received			705,000,000
Pre-tax gain on sale of business (net of transaction expenses and fees)			198,600,000
Telair Cargo Group | A400M | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Gain recognized on sale of business		$ 27,700,000
Telair Cargo Group | A400M | Maximum | Discontinued Operations, Disposed of by Sale
Discontinued Operations
Contingent consideration			$ 35,000,000
Precision Systems Manufacturing | Discontinued Operations, Held-for-sale
Discontinued Operations
Recognized impairment charge							$ 57,500,000

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	Feb. 29, 2016	May. 31, 2015
Revenue Recognition
Unbilled accounts receivable related to KC10 supply agreement	$ 24.6	$ 21.1

Accounting for Stock-Based Co33

Accounting for Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended		9 Months Ended
	Aug. 31, 2015	Jun. 30, 2015	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Stock options
Stock options, additional disclosures
Total intrinsic value of stock options exercised					$ 0.9	$ 1.5
Compensation expense			$ 0.9	$ 0.8	2.6	2.2
Restricted stock
Stock options, additional disclosures
Compensation expense			$ 1.4	$ 1.6	$ 3.6	$ 4.3
Performance-based restricted stock
Stock options, additional disclosures
Granted (in shares)	109,269
Granted (in dollars per share)	$ 26.62
Time-based restricted stock
Stock options, additional disclosures
Granted (in shares)	28,069
Granted (in dollars per share)	$ 26.62
Time-based restricted stock | Board of Directors
Stock options, additional disclosures
Granted (in shares)		45,000
Granted (in dollars per share)		$ 29.54

Inventory (Details)

Inventory (Details) $ in Millions	Feb. 29, 2016USD ($)aircraft	May. 31, 2015USD ($)aircraft
Inventory
Raw materials and parts	$ 37.9	$ 43.1
Work-in-process	22.6	18.1
Aircraft and engine parts, components and finished goods	380.1	337
Aircraft held for sale and related support parts	17.5	57.8
Total inventories	$ 458.1	$ 456
Inventory
Number of aircrafts held for sale | aircraft	8	11
Fixed-wing aircraft
Inventory
Number of aircrafts held for sale | aircraft	5	5
Rotary-wing aircraft
Inventory
Number of aircrafts held for sale | aircraft	3	6

Aircraft Sale-Leaseback Trans35

Aircraft Sale-Leaseback Transactions (Details) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	May. 31, 2015USD ($)aircraft	Feb. 29, 2016USD ($)aircraft	May. 31, 2015USD ($)aircraft
Aircraft Sale-Leaseback Transactions
Proceeds from sale-leaseback		$ 38.5
S-92 rotary-wing aircraft
Aircraft Sale-Leaseback Transactions
Number of aircrafts involved in sale leaseback transaction | aircraft	2		2
Proceeds from sale-leaseback			$ 40.3
Sale Leaseback Transaction Loss	$ 1.1
AW-189 rotary-wing aircraft
Aircraft Sale-Leaseback Transactions
Number of aircrafts involved in sale leaseback transaction | aircraft		2
Proceeds from sale-leaseback		$ 38.5
Deferred gain realized on the sale		$ 1.7
Deferred gain amortization period		P10Y

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income tax expense in discontinued operations	$ 2.8
Income tax expense in continued operations	3.4	$ 0.7	$ 13.1	$ 14.4
Corrections
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Income tax expense in discontinued operations	2.7
Income tax expense in continued operations	2.5
Immaterial errors
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accrued Income Taxes	$ 0.2		$ 0.2

Supplemental Cash Flow Inform37

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015
Supplemental Cash Flow Information
Interest paid	$ 3.3	$ 32.1
Income taxes paid	26.5	11.7
Income tax refunds received	$ 1.3	$ 12.1

Financing Arrangements (Details

Financing Arrangements (Details) - USD ($) $ in Millions	Mar. 01, 2016	Feb. 29, 2016	Nov. 30, 2015	Aug. 31, 2015	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015	May. 31, 2015
Financing Arrangements
Total debt		$ 195.7				$ 195.7		$ 154
Current maturities of debt		(35.7)				(35.7)		(69)
Long-term debt		160				160		85
Loss on extinguishment of debt						0.4
Interest expense
Amortization of discount						1.3	$ 2
Revolving Credit Facility expiring March 24, 2020 with interest payable monthly
Financing Arrangements
Total debt		135				135		50
Industrial revenue bond (secured by property, plant and equipment)
Financing Arrangements
Total debt		25				25		25
Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1
Financing Arrangements
Total debt		10				10		$ 20
Convertible notes payable
Interest expense
Coupon interest		0.2			$ 0.3	0.6	1.2
Amortization of deferred financing fees							0.1
Amortization of discount		0.3			0.4	1.3	1.7
Interest expense related to convertible notes		$ 0.5			$ 0.7	$ 1.9	$ 3
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%	2.25%	2.25%		2.25%		2.25%
Total debt		$ 25.7				$ 25.7		$ 48
Amount of convertible notes repurchased			$ 9.7	$ 14.4
Cash paid for convertible notes repurchased			9.7	14.6
Accrued interest	$ 0.3			0.2
Loss on extinguishment of debt	$ 26		$ 0.1	$ 0.3
Mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015
Financing Arrangements
Total debt								$ 11
Remaining variable rate and fixed rate debt | Significant other unobservable inputs (Level 3)
Financing Arrangements
Estimated fair value of long-term debt		$ 195.7				$ 195.7

Derivative Instruments and He39

Derivative Instruments and Hedging Activities (Details) $ in Millions	Feb. 29, 2016USD ($)item	May. 31, 2015USD ($)
Derivative Instruments and Hedging Activities
Number of derivative financial instruments | item	2
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: | 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		$ 2.6

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Earnings per Share
Effect to the participating securities as result of net loss			$ 0
Basic and Diluted EPS:
Income from continuing operations	$ 10.7	$ 1.9	29.3	$ 27.6
Less income attributable to participating shares	(0.1)	(0.1)	(0.3)	(0.6)
Income from continuing operations attributable to common shareholders	10.6	1.8	29	27
Income (Loss) from discontinued operations attributable to common shareholders	(5.9)	(36.4)	6.4	(32.5)
Net Income (loss) attributable to common stockholders For earnings per share - basic and diluted	$ 4.7	$ (34.6)	$ 35.4	$ (5.5)
Weighted Average Shares:
Weighted average common shares outstanding - basic	34,200,000	38,700,000	34,500,000	38,700,000
Additional shares from the assumed exercise of stock options	200,000	500,000	200,000	500,000
Weighted average common shares outstanding - diluted	34,400,000	39,200,000	34,700,000	39,200,000
Earnings per share - basic:
Earnings from continuing operations	$ 0.31	$ 0.05	$ 0.84	$ 0.70
Earnings (Loss) from discontinued operations	(0.17)	(0.94)	0.19	(0.84)
Earnings (Loss) per share - basic	0.14	(0.89)	1.03	(0.14)
Earnings per share - diluted:
Earnings from continuing operations	0.31	0.05	0.84	0.69
Earnings (Loss) from discontinued operations	(0.17)	(0.94)	0.19	(0.84)
Earnings (Loss) per share-diluted	$ 0.14	$ (0.89)	$ 1.03	$ (0.15)
Antidilutive stock options excluded from the computation of diluted earnings per share (in shares)			178,490	169,163

Accumulated Other Comprehensi41

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	$ (38.9)	$ (52.8)	$ (40.4)	$ (29.3)
Other comprehensive income (loss) before reclassifications from AOCL	(1.8)	(25.7)	(0.8)	(49.3)
Amounts reclassified from AOCL	0.3	(0.2)	0.8	(0.1)
Total other comprehensive income (loss)	(1.5)	(25.9)		(49.4)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	(40.4)	(78.7)	(40.4)	(78.7)
Currency Translation Adjustments
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	(0.1)	(15.1)	0.9	8.7
Reclassification within AOCL			(2)
Other comprehensive income (loss) before reclassifications from AOCL	(1.8)	(26.1)	(0.8)	(49.9)
Total other comprehensive income (loss)	(1.8)	(26.1)	(0.8)	(49.9)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	(1.9)	(41.2)	(1.9)	(41.2)
Pensions Plans
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance	(38.8)	(35.3)	(41.3)	(35.4)
Reclassification within AOCL			2
Amounts reclassified from AOCL	0.3	(0.2)	0.8	(0.1)
Total other comprehensive income (loss)	0.3	(0.2)	0.8	(0.1)
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance	$ (38.5)	(35.5)	$ (38.5)	(35.5)
Derivative Instruments
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss), Net of Tax, Beginning Balance		(2.4)		(2.6)
Other comprehensive income (loss) before reclassifications from AOCL		0.4		0.6
Total other comprehensive income (loss)		0.4		0.6
Accumulated Other Comprehensive Income (Loss), Net of Tax, Ending Balance		$ (2)		$ (2)

Acquisition (Details)

Acquisition (Details) - Vantem Modular LLC $ in Millions	Dec. 04, 2015USD ($)
Acquisition
Purchase price of the acquisition	$ 4.8
Maximum
Acquisition
Future royalties	$ 5

Business Segment Information (D

Business Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Business Segment Information
Sales	$ 402.8	$ 380.1	$ 1,204.4	$ 1,178.5
Gross Profit	58.3	50.1	172.7	179.7
Aviation Services
Business Segment Information
Sales	349.2	318.4	1,024.6	955.9
Gross Profit	58.6	50.7	166.7	152.8
Expeditionary Services
Business Segment Information
Sales	53.6	61.7	179.8	222.6
Gross Profit	$ (0.3)	$ (0.6)	$ 6	$ 26.9

Business Segment Information 44

Business Segment Information (Details 2) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 29, 2016	Feb. 28, 2015	Feb. 29, 2016	Feb. 28, 2015
Reconciliation of segment gross profit to income from continuing operations before provision for income taxes
Segment gross profit	$ 58.3	$ 50.1	$ 172.7	$ 179.7
Selling, general and administrative	(42.6)	(41.7)	(124.5)	(120.3)
Earnings (Loss) from joint ventures		0.6	(0.4)	1.8
Loss on extinguishment of debt			(0.4)
Interest expense	(1.7)	(6.4)	(5.2)	(19.4)
Interest income	0.1		0.2	0.2
Income from continuing operations before provision for income taxes	$ 14.1	$ 2.6	$ 42.4	$ 42