AAR (AIR) 10-Q 22 Dec 17 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Nov. 30, 2017shares
Document and Entity Information
Entity Registrant Name	AAR CORP
Entity Central Index Key	1,750
Document Type	10-Q
Document Period End Date	Nov. 30, 2017
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	34,729,373
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Nov. 30, 2017	May 31, 2017
Current assets:
Cash and cash equivalents	$ 27.1	$ 10.3
Accounts receivable, less allowances of $8.5 and $5.8, respectively	258.4	251.4
Inventories	479.4	483.1
Rotable spares and equipment on or available for short-term lease	99.6	118
Deposits, prepaids and other	27.7	25.7
Total current assets	892.2	888.5
Property, plant and equipment, net of accumulated depreciation of $422.4 and $413.9, respectively	195.3	201.9
Other assets:
Goodwill	128.9	115.4
Intangible assets, net of accumulated amortization of $31.3 and $29.8, respectively	30.2	32.8
Rotable assets supporting long-term programs	180.4	159.6
Other	117.3	105.9
Total other assets	456.8	413.7
Total assets	1,544.3	1,504.1
Current liabilities:
Current maturities of long-term debt	1.7	2
Accounts and trade notes payable	195.9	177.4
Accrued liabilities	138.9	155.7
Total current liabilities	336.5	335.1
Long-term debt, less current maturities	215.8	155.3
Deferred tax liabilities	15.6	37.2
Other liabilities and deferred income	69.9	62.3
Total noncurrent liabilities	301.3	254.8
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 45,300,786 and 45,175,302 shares at cost, respectively	45.3	45.2
Capital surplus	462.3	460.8
Retained earnings	710.7	727.9
Treasury stock, 10,571,413 and 10,820,844 shares at cost, respectively	(275)	(279.8)
Accumulated other comprehensive loss	(36.8)	(39.9)
Total equity	906.5	914.2
Total liabilities and equity	$ 1,544.3	$ 1,504.1

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Nov. 30, 2017	May 31, 2017
Condensed Consolidated Balance Sheets
Accounts receivable, allowances (in dollars)	$ 8.5	$ 5.8
Property, plant and equipment, accumulated depreciation (in dollars)	422.4	413.9
Intangible assets, accumulated amortization (in dollars)	$ 31.3	$ 29.8
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	45,300,786	45,175,302
Treasury stock, shares	10,571,413	10,820,844

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Sales:
Sales from products	$ 253.9	$ 231.3	$ 498.6	$ 445.2
Sales from services	195.8	192.5	390.3	383.4
Total sales	449.7	423.8	888.9	828.6
Cost and operating expenses:
Cost of products	203.2	197.3	402.8	376.8
Cost of services	174	160.3	349.1	324.1
Cost of services - impairments and other charges	51.6		51.6
Selling, general and administrative	52.2	46.3	100.2	91.1
Selling, general and administrative - impairments	2.6		2.6
Total costs and operating expenses	483.6	403.9	906.3	792
Operating income (loss)	(33.9)	19.9	(17.4)	36.6
Interest expense	(2)	(1.2)	(3.7)	(2.5)
Interest income	0.1	0.1	0.1	0.1
Income (Loss) from continuing operations before provision for income taxes (benefit)	(35.8)	18.8	(21)	34.2
Provision for income taxes (benefit)	(13.3)	6.7	(9.1)	12.2
Income (Loss) from continuing operations	(22.5)	12.1	(11.9)	22
Loss from discontinued operations	(0.1)		(0.1)	(0.4)
Net income (loss)	$ (22.6)	$ 12.1	$ (12)	$ 21.6
Earnings (Loss) per share - basic:
Earnings (Loss) from continuing operations	$ (0.66)	$ 0.35	$ (0.35)	$ 0.64
Earnings (Loss) from discontinued operations				(0.01)
Earnings (Loss) per share - basic	(0.66)	0.35	(0.35)	0.63
Earnings (Loss) per share - diluted:
Earnings (Loss) from continuing operations	(0.66)	0.35	(0.35)	0.64
Earnings (Loss) from discontinued operations				(0.01)
Earnings (Loss) per share - diluted	$ (0.66)	$ 0.35	$ (0.35)	$ 0.63

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (22.6)	$ 12.1	$ (12)	$ 21.6
Other comprehensive income (loss), net of tax expense (benefit):
Currency translation adjustments	1.9	(1.1)	2.5	(2.6)
Pension and other post-retirement plans:
Amortization of actuarial loss and prior service cost included in net income, net of tax of $0.2 and $0.2 for the three months ended November 30, 2017 and 2016, respectively, and $0.3 and $0.3 for the six months ended November 30, 2017 and 2016, respectively	0.3	0.2	0.6	0.5
Other comprehensive income (loss), net of tax	2.2	(0.9)	3.1	(2.1)
Comprehensive income (loss)	$ (20.4)	$ 11.2	$ (8.9)	$ 19.5

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Condensed Consolidated Statements of Comprehensive Income (Loss)
Amortization of actuarial loss and prior service cost included in net income, tax	$ 0.2	$ 0.2	$ 0.3	$ 0.3

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Cash flows used in operating activities:
Net income (loss)	$ (12)	$ 21.6
Loss from discontinued operations	0.1	0.4
Income (Loss) from continuing operations	(11.9)	22
Adjustments to reconcile net income to net cash used in operating activities:
Asset impairments and other charges	54.2
Depreciation and intangible amortization	28.5	24.3
Stock-based compensation	5.4	4.9
Amortization of overhaul costs	4.7	10.6
Deferred tax provision (benefit)	(22.1)	(1.7)
Gain on asset disposal		(2.6)
Changes in certain assets and liabilities:
Accounts receivable	(3.3)	(29.7)
Inventories	(15.7)	(6)
Rotable spares and equipment on or available for short-term lease	2.5	5.1
Equipment supporting long-term programs	(28.4)	(47.9)
Accounts and trade notes payable	14.7	16.7
Accrued and other liabilities	(29.1)	7.3
Other, primarily program and overhaul costs	(8.2)	(3.3)
Net cash used in operating activities - continuing operations	(8.7)	(0.3)
Net cash used in operating activities - discontinued operations	(1.2)	(0.9)
Net cash used in operating activities	(9.9)	(1.2)
Cash flows used in investing activities:
Property, plant and equipment expenditures	(17.9)	(18.9)
Payments for acquisitions	(22.9)
Proceeds from aircraft joint ventures	7.3
Proceeds from asset disposals	1.3	18
Other	(0.6)	(2.8)
Net cash used in investing activities	(32.8)	(3.7)
Cash flows provided from (used in) financing activities:
Short-term borrowings, net	37	19
Reduction in long-term borrowings		(5)
Proceeds from long-term borrowings	24.8
Cash dividends	(5.2)	(5.2)
Purchase of treasury stock	(5.2)	(14.8)
Stock option exercises	9.2	3.9
Other	(1.1)	(0.7)
Net cash provided from (used in) financing activities	59.5	(2.8)
Effect of exchange rate changes on cash		(0.5)
Increase (Decrease) in cash and cash equivalents	16.8	(8.2)
Cash and cash equivalents, beginning of period	10.3	31.2
Cash and cash equivalents, end of period	$ 27.1	$ 23

Condensed Consolidated Stateme8

Condensed Consolidated Statements of Changes in Equity - 6 months ended Nov. 30, 2017 - USD ($) $ in Millions	Common Stock	Capital Surplus	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Balance at May. 31, 2017	$ 45.2	$ 460.8	$ 727.9	$ (279.8)	$ (39.9)	$ 914.2
Increase (Decrease) in Stockholders' Equity
Net loss			(12)			(12)
Cash dividends			(5.2)			(5.2)
Stock option activity		0.1		9.2		9.3
Restricted stock activity	0.1	1.4		0.8		2.3
Repurchase of shares				(5.2)		(5.2)
Other comprehensive income (loss), net of tax					3.1	3.1
Balance at Nov. 30, 2017	$ 45.3	$ 462.3	$ 710.7	$ (275)	$ (36.8)	$ 906.5

Basis of Presentation

Basis of Presentation	6 Months Ended
	Nov. 30, 2017
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, 2017 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 November 30, 2017, the Condensed Consolidated Statements of Operations and the Condensed Consolidated Statements of Comprehensive Income (Loss) for the three- and six-month periods ended November 30, 2017 and 2016, the Condensed Consolidated Statements of Cash Flows for the six-month periods ended November 30, 2017 and 2016, and the Condensed Consolidated Statement of Changes in Equity for the six-month period ended November 30, 2017. The results of operations for such interim periods are not necessarily indicative of the results for the full year. New Accounting Pronouncements In May 2014, the FASB 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 Accounting Standards Codification (“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. 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 will adopt this ASU as of June 1, 2018, using the modified retrospective transition method and are currently continuing our evaluation of the expected impact of the adoption on our consolidated financial statements and related disclosures. Under the modified retrospective transition method, we will be required to recognize the cumulative effect of adopting this ASU as of June 1, 2018 in our first quarter ending August 31, 2018. We expect to estimate the cumulative effect upon adoption of the new ASU in the fourth quarter of fiscal 2018 based on expected contracts in process at May 31, 2018. 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 in the preliminary phases of assessing the effect of this ASU on our portfolio of leases. While this assessment continues, we have not yet selected a transition date nor have we determined the effect of this ASU on our consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which amends ASC Topic 718, Compensation — Stock Compensation. This ASU requires excess tax benefits or deficiencies for share-based payments be recorded in the period shares vest as income tax expense or benefit, rather than within equity. Cash flows related to excess tax benefits are now included in operating activities and are no longer classified as a financing activity. We adopted this ASU on June 1, 2017 and recognized excess tax benefits of $0.4 and $1.6 million as a reduction to income tax expense during the three- and six-months ended November 30, 2017, respectively. We have also presented the excess tax benefits within operating activities in the condensed consolidated statement of cash flows for the six-months ended November 30, 2017. As permitted, we adopted the statement of cash flow presentation guidance on a prospective basis with no adjustments to the previously reported amounts.

Discontinued Operations

Discontinued Operations	6 Months Ended
	Nov. 30, 2017
Discontinued Operations
Discontinued Operations	Note 2 — Discontinued Operations During the first quarter of fiscal 2017, we completed the shut down of the metal machining operation of our Precision Systems Manufacturing business. This business is reported as discontinued operations for all periods presented. Liabilities of discontinued operations of $5.9 million and $6.9 million at November 30, 2017 and May 31, 2017, respectively, were classified as Accrued Liabilities on the Condensed Consolidated Balance Sheet. Unless otherwise noted, amounts and disclosures throughout these Notes to Condensed Consolidated Financial Statements relate to our continuing operations.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Nov. 30, 2017
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. We recognized favorable cumulative catch-up adjustments of $0.4 million and $0.8 million during the three month periods ended November 30, 2017 and 2016, respectively, and $0.4 million and $4.6 million during the six month periods ended November 30, 2017 and 2016, respectively, resulting from changes to the estimated profitability of these contracts. 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. In June 2016, the U.S. Air Force awarded the new contract for the KC-10 Extender Contractor Logistics Support Program (“KC-10 Program”) to a competitor. Our principal services under the prior contract for the KC-10 Program were completed in January 2017; however, we have provided limited services since that date and will continue to do so for an unspecified period of time. Sales for the KC-10 Program during the three-month periods ended November 30, 2017 and 2016 were $9.3 million and $29.4 million, respectively, and sales during the six-month periods ended November 30, 2017 and 2016 were $21.0 million and $68.0 million, respectively. Gross profit for the KC-10 Program during the three-month periods ended November 30, 2017 and 2016 were $1.1 million and $1.7 million, respectively, and gross profit during the six-month periods ended November 30, 2017 and 2016 were $2.2 million and $4.5 million, respectively. Included in accounts receivable as of November 30, 2017 and May 31, 2017, were $7.6 million and $14.5 million, respectively, of unbilled accounts receivable related to the KC-10 Program. These unbilled accounts receivable related to costs we have incurred on parts that were requested and accepted by our customer to support the KC-10 Program. These costs have not been billed by us because the customer has not yet issued the final paperwork necessary to allow for billing.

Asset Impairments

Asset Impairments	6 Months Ended
	Nov. 30, 2017
Asset Impairments
Asset Impairments	Note 4 — Asset Impairments Our Contractor-Owned, Contractor-Operated (“COCO”) business included in our Expeditionary Services segment completed certain contracts in the second quarter of fiscal 2018. As the aircraft supporting these contracts have not been placed onto new contracts and coupled with the continued decline in operational tempo within the U.S. Department of Defense (“DoD”) and an excess supply of aircraft assets in the market, we determined there was an impairment triggering event in the period and tested the recoverability of our COCO aircraft, rotable assets, support parts, and related assets. In the three-month period ended November 30, 2017, we recognized impairment and other charges of $54.2 million including aircraft impairment of $14.5 million, inventory reserves of $21.2 million, rotable asset impairment of $15.9 million, and other impairment charges of $2.6 million. The fair value of the aircraft and related assets was based on available market data for similar assets and is classified as Level 3 in the fair value hierarchy.. As a result of the triggering events discussed above, we also performed an interim goodwill impairment test of our Airlift reporting unit in the second quarter of fiscal 2018. The fair value of the Airlift reporting unit exceeded its carrying value, and as a result, no goodwill impairment charges were recognized.

Accounting for Stock-Based Comp

Accounting for Stock-Based Compensation	6 Months Ended
	Nov. 30, 2017
Accounting for Stock-Based Compensation
Accounting for Stock-Based Compensation	Note 5 — Accounting for Stock-Based Compensation Restricted Stock In the three-month period ended August 31, 2017, as part of our annual long-term stock incentive compensation, we granted 98,750 shares of performance-based restricted stock and 24,425 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these shares was $35.26 (the closing price on the grant date). In June 2017, we also granted 55,000 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $34.95. Expense charged to operations for restricted stock during the three-month periods ended November 30, 2017 and 2016 was $1.5 million and $1.3 million, respectively, and $2.9 million and $2.6 million during the six-month periods ended November 30, 2017 and 2016, respectively. Stock Options In the three-month period ended August 31, 2017, as part of our annual long-term stock incentive compensation, we granted 453,450 stock options to eligible employees at an exercise price per share of $35.26 and weighted average fair value of $9.27. The total intrinsic value of stock options exercised during the six-month periods ended November 30, 2017 and 2016 was $6.5 million and $2.6 million, respectively. Expense charged to operations for stock options during the three-month periods ended November 30, 2017 and 2016 was $1.3 million and $1.1 million, respectively, and $2.4 and $2.3 million during the six-month periods ended November 30, 2017 and 2016, respectively.

Inventory

Inventory	6 Months Ended
	Nov. 30, 2017
Inventory
Inventory	Note 6 — Inventory The summary of inventories is as follows: November 30, May 31, 2017 2017 Raw materials and parts $ $ Work-in-process Aircraft and engine parts, components and finished goods $ $

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Nov. 30, 2017
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 7 — Supplemental Cash Flow Information Six Months Ended November 30, 2017 2016 Interest paid $ $ Income taxes paid Income tax refunds received

Financing Arrangements

Financing Arrangements	6 Months Ended
	Nov. 30, 2017
Financing Arrangements
Financing Arrangements	Note 8 — Financing Arrangements A summary of the carrying amount of our debt is as follows: November 30, May 31, 2017 2017 Revolving Credit Facility expiring November 1, 2021 with interest payable monthly $ $ Term loan due November 1, 2021 with interest payable monthly — Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly Capital lease obligations Total debt Current maturities of debt ) ) Debt issuance costs, net ) ) Long-term debt $ $ At November 30, 2017, our variable rate and fixed rate debt had a fair value that approximates the carrying value of $219.4 million and are classified as Level 2 in the fair value hierarchy. On October 18, 2017, we entered into a Credit Agreement with the Canadian Imperial Bank of Commerce, as lender (the “Credit Agreement”). The Credit Agreement provided a Canadian $31 million term loan with the proceeds used to fund the acquisition of two maintenance, repair, and overhaul facilities (“MRO”) in Canada from Premier Aviation. The term loan is due in full at the expiration of the Credit Agreement on November 1, 2021 unless terminated earlier pursuant to the terms of the Credit Agreement. Interest is payable monthly on the term loan at the offered fluctuating Canadian Dollar Offer Rate plus 125 to 225 basis points based on certain financial measurements if a Bankers’ Acceptances loan, or at the offered fluctuation Prime Rate plus 25 to 125 basis points based on certain financial measurements, if a Prime Rate loan. The industrial revenue bond that matures on August 1, 2018 has been classified as a long-term liability due to our intent and ability to refinance this bond on a long-term basis using our Revolving Credit Facility. Our financing arrangements also requires us to comply with leverage and interest coverage ratios and comply with certain affirmative and negative covenants, including those relating to financial reporting and notification, payment of indebtedness, cash dividends, taxes and other obligations, compliance with applicable laws, and limitations on additional liens, indebtedness, acquisitions, investments and disposition of assets. The Revolving Credit Facility and Credit Agreement also require our significant domestic subsidiaries, and any subsidiaries that guarantee our other indebtedness, to provide a guarantee of payment. At November 30, 2017, we were in compliance with the financial and other covenants in our financing agreements.

Earnings per Share

Earnings per Share	6 Months Ended
	Nov. 30, 2017
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 and shares issuable upon vesting of restricted stock awards. 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. A reconciliation of the computations of basic and diluted earnings per share information for the three- and six-month periods ended November 30, 2017 and 2016 is as follows: Three Months Ended Six Months Ended November 30, November 30, 2017 2016 2017 2016 Basic and Diluted EPS : Income (Loss) from continuing operations $ ) $ $ ) $ Less income attributable to participating shares — ) — ) Income (Loss) 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 $ ) $ $ ) $ 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 (Loss) per share — basic and diluted: Earnings (Loss) from continuing operations $ ) $ $ ) $ Loss from discontinued operations — — — ) Earnings (Loss) per share — basic and diluted $ ) $ $ ) $ The potential dilutive effect of 520,000 shares and 476,000 shares were excluded from the computation of weighted average common shares outstanding – diluted for the three- and six-month periods ended November 30, 2017 as the shares would have been anti-dilutive. ag At November 30, 2017, the average market price of our common shares was in excess of all of our outstanding options. At November 30, 2016, stock options to purchase 42,000 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 period then ended.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Nov. 30, 2017
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 six-month periods ended November 30, 2017 and 2016 were as follows: Currency Pension Total Balance at September 1, 2017 $ ) $ ) $ ) Other comprehensive income before reclassifications — Amounts reclassified from AOCL — Total other comprehensive income Balance at November 30, 2017 $ $ ) $ ) Balance at September 1, 2016 $ ) $ ) $ ) Other comprehensive loss before reclassifications ) — ) Amounts reclassified from AOCL — Total other comprehensive income (loss) ) ) Balance at November 30, 2016 $ ) $ ) $ ) Currency Pension Total Balance at June 1, 2017 $ ) $ ) $ ) Other comprehensive income before reclassifications — Amounts reclassified from AOCL — Total other comprehensive income Balance at November 30, 2017 $ $ ) $ ) Balance at June 1, 2016 $ ) $ ) $ ) Other comprehensive loss before reclassifications ) — ) Amounts reclassified from AOCL — Total other comprehensive income (loss) ) ) Balance at November 30, 2016 $ ) $ ) $ )

Sale of Product Line

Sale of Product Line	6 Months Ended
	Nov. 30, 2017
Sale of Product Line
Sale of Product Line	Note 11 — Sale of Product Line During the three-month period ended August 31, 2016, we sold certain assets related to our temperature-controlled container product line to Sonoco Protective Solutions, Inc. (“Sonoco”) for $5 million. The sale price included $3 million paid at closing and $2 million in non-contingent, deferred consideration due over the following two years. We recognized a gain of $2.6 million on the sale. In conjunction with the sale, we also entered into a long-term manufacturing agreement to supply temperature-controlled containers to Sonoco over the following three years.

Acquisitions

Acquisitions	6 Months Ended
	Nov. 30, 2017
Acquisitions
Acquisitions	Note 12 — Acquisitions On September 19, 2017, we acquired the outstanding shares of two MRO facilities in Quebec and Ontario, Canada owned by Premier Aviation for approximately $24.8 million. The purchase price includes $22.9 million paid at closing and deferred consideration of $1.9 million payable September 2018. This business is included in our Aviation Services segment. The amounts recorded for certain assets are preliminary in nature and are subject to adjustment as additional information is obtained about their acquisition date fair value. The final determination of the fair values will be completed within the one year measurement period. The preliminary fair value of assets acquired and liabilities assumed is as follows: Current assets $ Property and equipment Intangible assets, including goodwill Accounts payable and accrued liabilities ) $ On April 10, 2017, we acquired the trading business of ACLAS Global Limited (“ACLAS”). In conjunction with the acquisition, we entered into a multi-year component support and repair contract covering approximately 100 of ACLAS’ aircraft. The purchase price of the acquisition was $12.0 million paid at closing with $3.0 million in deferred consideration payable over the next three years. This business operates as part of our Aviation Services segment. The amounts recorded for certain assets are preliminary in nature and are subject to adjustment as additional information is obtained about their acquisition date fair value. The final determination of the fair values will be completed within the one year measurement period. The preliminary fair value of assets acquired is as follows: Inventory $ Equipment on or available for long-term lease Intangible assets $

Business Segment Information

Business Segment Information	6 Months Ended
	Nov. 30, 2017
Business Segment Information
Business Segment Information	Note 13 — 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 MRO activities and Expeditionary Services comprised of airlift and mobility activities. The Aviation Services segment consists of aftermarket support and services businesses that provide spare parts 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 DoD, foreign governments and non-governmental organizations. Sales in the Expeditionary Services segment are derived from the delivery of airlift services primarily to 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 engineering, design, and system integration services for specialized command and control systems, and design and manufacture advanced composite materials for commercial, business and military aircraft. 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, 2017. Our chief operating decision making officer (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 Six Months Ended November 30, November 30, 2017 2016 2017 2016 Sales: Aviation Services $ $ $ $ Expeditionary Services $ $ $ $ Three Months Ended Six Months Ended November 30, November 30, 2017 2016 2017 2016 Gross profit (loss): Aviation Services $ $ $ $ Expeditionary Services ) ) $ $ $ $ The following table reconciles segment gross profit to income (loss) from continuing operations before provision for income taxes (benefit). Three Months Ended Six Months Ended November 30, November 30, 2017 2016 2017 2016 Segment gross profit $ $ $ $ Selling, general and administrative ) ) ) ) Interest expense ) ) ) ) Interest income Income (Loss) from continuing operations before provision for income taxes (benefit) $ ) $ $ ) $

Legal Proceedings

Legal Proceedings	6 Months Ended
	Nov. 30, 2017
Legal Proceedings
Legal Proceedings	Note 14 — Legal Proceedings We are not a party to any material pending legal proceeding (including any governmental or environmental proceeding) other than routine litigation incidental to our business except for the following: DynCorp International LLC v. AAR Airlift Group, Inc. On September 5, 2015, DynCorp International LLC (“DynCorp”) filed a complaint in the United States District Court for the Middle District of Florida, Orlando Division (the “District Court”), accusing AAR Airlift Group, Inc. (“AAR Airlift”), a wholly-owned subsidiary of AAR CORP., of misappropriation of DynCorp information, including trade secrets, and other related allegations. DynCorp’s complaint, which sought damages in an unspecified amount and a preliminary injunction, alleged that AAR Airlift engaged in this conduct in connection with the submission of proposals in response to the solicitation issued by the U.S. Department of State (“DOS”) Bureau of International Narcotics and Law Enforcement Affairs, Office of Aviation (“INL/A”) in support of the Worldwide Aviation Support Services program (“INL/A WASS”). The INL/A WASS contract was subsequently awarded to AAR Airlift on September 1, 2016. The District Court denied DynCorp’s preliminary injunction motion, and on October 19, 2015, DynCorp filed an amended complaint with the District Court. On January 14, 2016, the District Court granted AAR Airlift’s motion to dismiss DynCorp’s amended complaint. On February 2, 2016, DynCorp appealed the District Court’s order to the United States Court of Appeals for the Eleventh Circuit (the “Eleventh Circuit”). On November 21, 2016, the Eleventh Circuit reversed in part the District Court’s dismissal of the amended complaint and remanded the case to the District Court for further proceedings. The District Court set a discovery schedule that was to end on September 1, 2017 and a trial date of April 2, 2018. On June 16, 2017, the District Court granted AAR Airlift’s motion to stay the legal proceeding against AAR Airlift. The stay was to remain in effect until the earlier of (a) October 31, 2017 or (b) the entry of a decision of the United Stated Court of Federal Claims (“COFC”), on DynCorp’s protest of the contract award to AAR Airlift. The District Court’s stay immediately halted all discovery and other activity in the DynCorp lawsuit. On October 31, 2017, the COFC denied DynCorp’s protest of the DOS award to AAR Airlift. Following the COFC decision, the Department of State lifted the voluntary stay that had been in place on the INL/A WASS contract, and since that time it has issued several task orders to AAR Airlift in order to transition the INL/A WASS program to AAR Airlift. On November 29, 2017, the District Court granted AAR Airlift’s motion to stay discovery in this lawsuit pending the District Court’s resolution of AAR Airlift’s motion for summary judgment. The District Court’s decision effectively extended the stay that was previously in effect. On December 1, 2017, AAR Airlift filed its motion for summary judgment with the District Court. This motion maintains that DynCorp’s claims fail as a matter of law because DynCorp suffered no damages attributable to any alleged conduct of AAR Airlift; rather, as determined by the COFC, DynCorp was deemed ineligible for the INL/A WASS contract on account of its own actions. A decision from the District Court on AAR Airlift’s motion for summary judgment is not expected before late January 2018. AAR Airlift will continue to defend itself vigorously against DynCorp’s lawsuit, which it believes is entirely without merit.

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Nov. 30, 2017
Inventory
Summary of inventories	November 30, May 31, 2017 2017 Raw materials and parts $ $ Work-in-process Aircraft and engine parts, components and finished goods $ $

Supplemental Cash Flow Inform24

Supplemental Cash Flow Information (Tables)	6 Months Ended
	Nov. 30, 2017
Supplemental Cash Flow Information
Schedule of supplemental information on cash flow	Six Months Ended November 30, 2017 2016 Interest paid $ $ Income taxes paid Income tax refunds received

Financing Arrangements (Tables)

Financing Arrangements (Tables)	6 Months Ended
	Nov. 30, 2017
Financing Arrangements
Summary of carrying amount of debt	November 30, May 31, 2017 2017 Revolving Credit Facility expiring November 1, 2021 with interest payable monthly $ $ Term loan due November 1, 2021 with interest payable monthly — Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly Capital lease obligations Total debt Current maturities of debt ) ) Debt issuance costs, net ) ) Long-term debt $ $

Earnings per Share (Tables)

Earnings per Share (Tables)	6 Months Ended
	Nov. 30, 2017
Earnings per Share
Schedule of reconciliation of computations of basic and diluted earnings per share information	Three Months Ended Six Months Ended November 30, November 30, 2017 2016 2017 2016 Basic and Diluted EPS : Income (Loss) from continuing operations $ ) $ $ ) $ Less income attributable to participating shares — ) — ) Income (Loss) 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 $ ) $ $ ) $ 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 (Loss) per share — basic and diluted: Earnings (Loss) from continuing operations $ ) $ $ ) $ Loss from discontinued operations — — — ) Earnings (Loss) per share — basic and diluted $ ) $ $ ) $

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Nov. 30, 2017
Accumulated Other Comprehensive Loss
Schedule of changes in accumulated other comprehensive loss ("AOCL") by component	Currency Pension Total Balance at September 1, 2017 $ ) $ ) $ ) Other comprehensive income before reclassifications — Amounts reclassified from AOCL — Total other comprehensive income Balance at November 30, 2017 $ $ ) $ ) Balance at September 1, 2016 $ ) $ ) $ ) Other comprehensive loss before reclassifications ) — ) Amounts reclassified from AOCL — Total other comprehensive income (loss) ) ) Balance at November 30, 2016 $ ) $ ) $ ) Currency Pension Total Balance at June 1, 2017 $ ) $ ) $ ) Other comprehensive income before reclassifications — Amounts reclassified from AOCL — Total other comprehensive income Balance at November 30, 2017 $ $ ) $ ) Balance at June 1, 2016 $ ) $ ) $ ) Other comprehensive loss before reclassifications ) — ) Amounts reclassified from AOCL — Total other comprehensive income (loss) ) ) Balance at November 30, 2016 $ ) $ ) $ )

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Nov. 30, 2017
MRO facilities acquired in Quebec and Ontario, Canada owned by Premier Aviation
Acquisitions
Schedule of fair value of net assets acquired	Current assets $ Property and equipment Intangible assets, including goodwill Accounts payable and accrued liabilities ) $
ACLAS
Acquisitions
Schedule of fair value of net assets acquired	Inventory $ Equipment on or available for long-term lease Intangible assets $

Business Segment Information (T

Business Segment Information (Tables)	6 Months Ended
	Nov. 30, 2017
Business Segment Information
Schedule of selected financial information for each reportable segment	Three Months Ended Six Months Ended November 30, November 30, 2017 2016 2017 2016 Sales: Aviation Services $ $ $ $ Expeditionary Services $ $ $ $ Three Months Ended Six Months Ended November 30, November 30, 2017 2016 2017 2016 Gross profit (loss): Aviation Services $ $ $ $ Expeditionary Services ) ) $ $ $ $
Schedule of reconciliation of segment gross profit to income (loss) from continuing operations before provision for income taxes (benefit)	Three Months Ended Six Months Ended November 30, November 30, 2017 2016 2017 2016 Segment gross profit $ $ $ $ Selling, general and administrative ) ) ) ) Interest expense ) ) ) ) Interest income Income (Loss) from continuing operations before provision for income taxes (benefit) $ ) $ $ ) $

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
New Accounting Pronouncements
Amount of recognized excess tax benefits as a reduction to income tax expense	$ (13.3)	$ 6.7	$ (9.1)	$ 12.2
Improvements to Employee Share-Based Payment Accounting
New Accounting Pronouncements
Amount of recognized excess tax benefits as a reduction to income tax expense	$ (0.4)		$ 1.6

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Millions	Nov. 30, 2017	May 31, 2017
Precision Systems Manufacturing | Discontinued Operations, Held-for-sale or Disposed of by Sale
Discontinued Operations
Liabilities of discontinued operations	$ 5.9	$ 6.9

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016	May 31, 2017
Revenue Recognition
Recognized net favorable cumulative catch-up adjustments	$ 0.4	$ 0.8	$ 0.4	$ 4.6
Sales from support services	195.8	192.5	390.3	383.4
Gross profit on support services	20.9	66.2	85.4	127.7
KC10 logistics support services
Revenue Recognition
Sales from support services	9.3	29.4	21	68
Gross profit on support services	1.1	$ 1.7	2.2	$ 4.5
KC10 Supply Program
Revenue Recognition
Unbilled accounts receivable related to KC10 program	$ 7.6		$ 7.6		$ 14.5

Asset Impairments (Details)

Asset Impairments (Details) $ in Millions	3 Months Ended
	Nov. 30, 2017USD ($)
Asset Impairments
Impairment and other charges	$ 54.2
Aircraft impairment	14.5
Inventory reserves	21.2
Rotable asset impairment	15.9
Other impairment charges	2.6
Goodwill impairment charges	$ 0

Accounting for Stock-Based Co34

Accounting for Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended			6 Months Ended
	Jun. 30, 2017	Nov. 30, 2017	Aug. 31, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Restricted stock
Stock options, additional disclosures
Compensation expense		$ 1.5		$ 1.3	$ 2.9	$ 2.6
Performance-based restricted stock
Stock options, additional disclosures
Granted (in shares)			98,750
Granted (in dollars per share)			$ 35.26
Time-based restricted stock
Stock options, additional disclosures
Granted (in shares)			24,425
Granted (in dollars per share)			$ 35.26
Time-based restricted stock | Board of Directors
Stock options, additional disclosures
Granted (in shares)	55,000
Granted (in dollars per share)	$ 34.95
Stock options
Stock options, additional disclosures
Granted (in shares)			453,450
Granted (in dollars per share)			$ 35.26
Weighted average fair value of stock options granted (in dollars per share)			$ 9.27
Total intrinsic value of stock options exercised					6.5	2.6
Compensation expense		$ 1.3		$ 1.1	$ 2.4	$ 2.3

Inventory (Details)

Inventory (Details) - USD ($) $ in Millions	Nov. 30, 2017	May 31, 2017
Inventory
Raw materials and parts	$ 47.7	$ 45
Work-in-process	31.3	25.8
Aircraft and engine parts, components and finished goods	400.4	412.3
Total inventories	$ 479.4	$ 483.1

Supplemental Cash Flow Inform36

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016
Supplemental Cash Flow Information
Interest paid	$ 3	$ 2
Income taxes paid	14.8	2.2
Income tax refunds received	$ 0.1	$ 1

Financing Arrangements (Details

Financing Arrangements (Details) CAD in Millions, $ in Millions	Oct. 18, 2017CADfacility	Sep. 19, 2017facility	Nov. 30, 2017USD ($)	May 31, 2017USD ($)
Financing Arrangements
Total debt			$ 219.4	$ 159.3
Current maturities of debt			(1.7)	(2)
Debt issuance costs, net			(1.9)	(2)
Long-term debt			215.8	155.3
Term loan due November 1, 2021 with interest payable monthly
Financing Arrangements
Total debt			24
Maximum borrowing capacity | CAD	CAD 31
Capital lease obligations
Financing Arrangements
Total debt			2.4	3.3
CDOR | Minimum
Financing Arrangements
Basis spread on variable rate (as a percent)	1.25%
CDOR | Maximum
Financing Arrangements
Basis spread on variable rate (as a percent)	2.25%
Prime Rate | Minimum
Financing Arrangements
Basis spread on variable rate (as a percent)	0.25%
Prime Rate | Maximum
Financing Arrangements
Basis spread on variable rate (as a percent)	1.25%
Revolving Credit Facility expiring November 1, 2021 with interest payable monthly
Financing Arrangements
Total debt			168	131
Industrial revenue bond (secured by property, plant and equipment) due August 1, 2018 with interest payable monthly
Financing Arrangements
Total debt			25	$ 25
Variable rate and fixed rate debt | Significant other observable inputs (Level 2)
Financing Arrangements
Estimated fair value of long-term debt			$ 219.4
MRO facilities acquired in Quebec and Ontario, Canada owned by Premier Aviation
Financing Arrangements
Number of facilities acquired | facility	2	2

Earnings per Share (Details)

Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Effect to the participating securities as result of net loss			$ 0
Basic and Diluted EPS:
Income (Loss) from continuing operations	$ (22.5)	$ 12.1	(11.9)	$ 22
Less income attributable to participating shares		(0.1)		(0.2)
Income (Loss) from continuing operations attributable to common shareholders	(22.5)	12	(11.9)	21.8
Income (Loss) from discontinued operations attributable to common shareholders	(0.1)		(0.1)	(0.4)
Net income (loss) attributable to common shareholders for earnings per share	$ (22.6)	$ 12	$ (12)	$ 21.4
Weighted Average Shares:
Weighted average common shares outstanding - basic	34,000,000	33,700,000	34,100,000	33,900,000
Additional shares from the assumed exercise of stock options		400,000		300,000
Weighted average common shares outstanding - diluted	34,000,000	34,100,000	34,100,000	34,200,000
Earnings (Loss) per share - basic and diluted:
Earnings (Loss) from continuing operations	$ (0.66)	$ 0.35	$ (0.35)	$ 0.64
Loss from discontinued operations				(0.01)
Earnings (Loss) per share - basic and diluted	$ (0.66)	$ 0.35	$ (0.35)	$ 0.63
Antidilutive shares excluded from the computation of diluted earnings per share (in shares)		520,000		476,000
Stock options
Earnings (Loss) per share - basic and diluted:
Antidilutive shares excluded from the computation of diluted earnings per share (in shares)				42,000

Accumulated Other Comprehensi39

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Accumulated Other Comprehensive Loss
Balance at beginning of the period	$ (39)	$ (45.6)	$ (39.9)	$ (44.4)
Other comprehensive income (loss) before reclassifications	1.9	(1.1)	2.5	(2.6)
Amounts reclassified from AOCL	0.3	0.2	0.6	0.5
Other comprehensive income (loss), net of tax	2.2	(0.9)	3.1	(2.1)
Balance at end of the period	(36.8)	(46.5)	(36.8)	(46.5)
Currency Translation Adjustments
Accumulated Other Comprehensive Loss
Balance at beginning of the period	(1.1)	(2.6)	(1.7)	(1.1)
Other comprehensive income (loss) before reclassifications	1.9	(1.1)	2.5	(2.6)
Other comprehensive income (loss), net of tax	1.9	(1.1)	2.5	(2.6)
Balance at end of the period	0.8	(3.7)	0.8	(3.7)
Pensions Plans
Accumulated Other Comprehensive Loss
Balance at beginning of the period	(37.9)	(43)	(38.2)	(43.3)
Amounts reclassified from AOCL	0.3	0.2	0.6	0.5
Other comprehensive income (loss), net of tax	0.3	0.2	0.6	0.5
Balance at end of the period	$ (37.6)	$ (42.8)	$ (37.6)	$ (42.8)

Sale of Product Line (Details)

Sale of Product Line (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Aug. 31, 2016	Nov. 30, 2017	Nov. 30, 2016
Discontinued Operations
Amount received from sale of assets		$ 1.3	$ 18
Sonoco | Long-term manufacturing agreement to supply temperature-controlled containers
Discontinued Operations
Term of long-term manufacturing agreement	3 years
Temperature-controlled container product line | Disposed of by sale
Discontinued Operations
Sale consideration	$ 5
Amount received from sale of assets	3
Non-contingent deferred consideration amount in the sale consideration	$ 2
Period over which non-contingent deferred consideration is due	2 years
Gain on sale of assets	$ 2.6

Acquisitions (Details)

Acquisitions (Details) $ in Millions	Oct. 18, 2017facility	Sep. 19, 2017USD ($)facility	Apr. 10, 2017USD ($)aircraft
MRO facilities acquired in Quebec and Ontario, Canada owned by Premier Aviation
Acquisitions
Number of facilities acquired | facility	2	2
Total consideration		$ 24.8
Deferred consideration payable		1.9
Fair value of net assets acquired
Current assets		4.1
Property and equipment		13.1
Intangible assets, including goodwill		16
Accounts payable and accrued liabilities		(8.4)
Net assets acquired		$ 24.8
ACLAS
Acquisitions
Number of aircrafts under multi-year component support and repair contract | aircraft			100
Purchase price			$ 12
Deferred consideration payable			$ 3
Deferred consideration payable period			3 years
Fair value of net assets acquired
Inventory			$ 5
Equipment on or available for long-term lease			7
Intangible assets			3
Assets acquired			$ 15

Business Segment Information (D

Business Segment Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017USD ($)	Nov. 30, 2016USD ($)	Nov. 30, 2017USD ($)segment	Nov. 30, 2016USD ($)
Business Segment Information
Number of business segments | segment			2
Sales	$ 449.7	$ 423.8	$ 888.9	$ 828.6
Gross profit (loss)	20.9	66.2	85.4	127.7
Aviation Services
Business Segment Information
Sales	391.6	346.7	762.9	681.3
Gross profit (loss)	66	56	123.8	109.4
Expeditionary Services
Business Segment Information
Sales	58.1	77.1	126	147.3
Gross profit (loss)	$ (45.1)	$ 10.2	$ (38.4)	$ 18.3

Business Segment Information -

Business Segment Information - Reconcile of Gross Profit to Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Nov. 30, 2017	Nov. 30, 2016	Nov. 30, 2017	Nov. 30, 2016
Reconciliation of segment gross profit to consolidated income (loss) before provision for income taxes (benefit)
Segment gross profit	$ 20.9	$ 66.2	$ 85.4	$ 127.7
Selling, general and administrative expense including	(54.8)	(46.3)	(102.8)	(91.1)
Interest expense	(2)	(1.2)	(3.7)	(2.5)
Interest income	0.1	0.1	0.1	0.1
Income (Loss) from continuing operations before provision for income taxes (benefit)	$ (35.8)	$ 18.8	$ (21)	$ 34.2

Legal Proceedings (Details)

Legal Proceedings (Details) $ in Millions	Dec. 01, 2017USD ($)
DynCorp International LLC v. AAR Airlift Group, Inc.
Legal Proceedings
Damages received	$ 0