AAR (AIR) 10-Q 20 Mar 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Feb. 28, 2019shares
Document and Entity Information
Entity Registrant Name	AAR CORP
Entity Central Index Key	0000001750
Document Type	10-Q
Document Period End Date	Feb. 28, 2019
Amendment Flag	false
Current Fiscal Year End Date	--05-31
Entity Current Reporting Status	Yes
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	35,066,569
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Feb. 28, 2019	May 31, 2018
Current assets:
Cash and cash equivalents	$ 28.9	$ 31.1
Restricted cash	21.5	10.5
Accounts receivable, less allowances of $15.0 and $7.5, respectively	237.6	202
Contract assets	54.9
Inventories	514.7	460.7
Rotable assets and equipment on or available for short-term lease	68.3	87.2
Assets of discontinued operations	28.2	125
Other current assets	39.3	26.2
Total current assets	993.4	942.7
Property, plant and equipment, net of accumulated depreciation of $226.4 and $214.4, respectively	134.4	133.2
Other assets:
Goodwill	117.4	118.7
Intangible assets, net of accumulated amortization of $30.7 and $33.3, respectively	24.4	27.8
Rotable assets supporting long-term programs	209.4	183.4
Other non-current assets	67.5	118.9
Total other assets	418.7	448.8
Total assets	1,546.5	1,524.7
Current liabilities:
Accounts and trade notes payable	218.6	170
Accrued liabilities	115	138.3
Liabilities of discontinued operations	26	25
Total current liabilities	359.6	333.3
Long-term debt	177.2	177.2
Deferred revenue on long-term contracts	89	35.8
Deferred tax liabilities		15.7
Other liabilities	21.3	26.4
Total noncurrent liabilities	287.5	255.1
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 shares at cost	45.3	45.3
Capital surplus	474.8	470.5
Retained earnings	689.6	733.2
Treasury stock, 10,234,217 and 10,585,165 shares at cost, respectively	(278.5)	(280.7)
Accumulated other comprehensive loss	(31.8)	(32)
Total equity	899.4	936.3
Total liabilities and equity	$ 1,546.5	$ 1,524.7

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Feb. 28, 2019	May 31, 2018
Condensed Consolidated Balance Sheets
Accounts receivable, allowances (in dollars)	$ 15	$ 7.5
Property, plant and equipment, accumulated depreciation (in dollars)	226.4	214.4
Intangible assets, accumulated amortization (in dollars)	$ 30.7	$ 33.3
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	45,300,786
Treasury stock, shares	10,234,217	10,585,165

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Sales:
Sales	$ 529.5	$ 456.3	$ 1,489.1	$ 1,274.8
Cost and operating expenses:
Cost of products	444.2		1,254.3
Provision for doubtful accounts	0.7	0.1	13.7	0.4
Selling, general and administrative	54.8	53.3	152.1	146.3
Total cost and operating expenses	499.7	432.1	1,420.1	1,211.6
Operating income	29.8	24.2	69	63.2
Other expense, net	(0.6)	(0.5)	(0.4)	(0.5)
Interest expense	(2.6)	(2.2)	(7.2)	(5.8)
Interest income	0.2		0.8	0.1
Income from continuing operations before provision for income taxes	26.8	21.5	62.2	57
Provision for income taxes (benefit)	(0.6)	(9.8)	4.7	1.4
Income from continuing operations	27.4	31.3	57.5	55.6
Loss from discontinued operations, net of tax	(64.8)	(15.8)	(72.8)	(52)
Net income (loss)	$ (37.4)	$ 15.5	$ (15.3)	$ 3.6
Earnings (Loss) per share - basic:
Earnings from continuing operations	$ 0.79	$ 0.91	$ 1.66	$ 1.62
Loss from discontinued operations	(1.87)	(0.46)	(2.11)	(1.52)
Earnings (Loss) per share - basic and diluted	(1.08)	0.45	(0.45)	0.10
Earnings (Loss) per share - diluted:
Earnings from continuing operations	0.78	0.90	1.63	1.60
Loss from discontinued operations	(1.86)	(0.46)	(2.08)	(1.52)
Earnings (Loss) per share - basic and diluted	(1.08)	0.44	(0.45)	0.08
Cash dividends declared per common share	$ 0.075	$ 0.075	$ 0.225	$ 0.225
Products
Sales:
Sales	$ 292.4	$ 275.1	$ 814.5	$ 764.8
Cost and operating expenses:
Cost of products	239	224	665.5	620.3
Services
Sales:
Sales	237.1	181.2	674.6	510
Cost and operating expenses:
Cost of products	$ 205.2	$ 154.7	$ 588.8	$ 444.6

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Condensed Consolidated Statements of Comprehensive Income (Loss)
Net income (loss)	$ (37.4)	$ 15.5	$ (15.3)	$ 3.6
Other comprehensive income, net of tax expense (benefit):
Currency translation adjustments	0.5	0.9	(0.6)	3.4
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 $0.1 for the three months ended February 28, 2019 and 2018, respectively, and $0.2 and $0.4 for the nine months ended February 28, 2019 and 2018, respectively	0.3	0.3	0.8	0.9
Other comprehensive income, net of tax	0.8	1.2	0.2	4.3
Comprehensive income (loss)	$ (36.6)	$ 16.7	$ (15.1)	$ 7.9

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Condensed Consolidated Statements of Comprehensive Income (Loss)
Amortization of actuarial loss and prior service cost included in net income, tax	$ 0.1	$ 0.1	$ 0.2	$ 0.4

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Cash flows provided from operating activities:
Net income (loss)	$ (15.3)	$ 3.6
Less: Loss from discontinued operations	72.8	52
Income from continuing operations	57.5	55.6
Adjustments to reconcile income from continuing operations to net cash provided from operating activities:
Depreciation and intangible amortization	31.3	31.4
Amortization of stock-based compensation	8.8	8.7
Provision for doubtful accounts	13.7	0.4
Deferred tax provision	(10.2)	(24.1)
Changes in certain assets and liabilities:
Accounts receivable	(73.3)	34.8
Contract assets	(5.2)
Inventories	(71.8)	(36.7)
Rotable assets and equipment on or available for short-term lease	18.6	2.5
Rotable assets supporting long-term programs	(38.2)	(35.7)
Accounts and trade notes payable	47.7	8.5
Accrued and other liabilities	2.8	(12)
Other	34.7	(17.8)
Net cash provided from operating activities - continuing operations	16.4	15.6
Net cash provided from operating activities - discontinued operations	8.1	17.3
Net cash provided from operating activities	24.5	32.9
Cash flows used in investing activities:
Property, plant and equipment expenditures	(12.3)	(18.4)
Payments for acquisitions	(2.3)	(22.9)
Proceeds from aircraft joint ventures		7.3
Other	1.3	1.7
Net cash used in investing activities - continuing operations	(13.3)	(32.3)
Net cash used in investing activities - discontinued operations	(0.5)	(4.7)
Net cash used in investing activities	(13.8)	(37)
Cash flows provided from financing activities:
Short-term borrowings, net	25	16
Repayments on long-term borrowings	(25)
Proceeds from long-term borrowings		24.8
Cash dividends	(7.9)	(7.7)
Purchase of treasury stock	(0.8)	(13.1)
Stock option exercises	8.3	10
Other		(0.3)
Net cash provided from (used in) financing activities - continuing operations	(0.4)	29.7
Net cash used in financing activities-discontinued operations	(1.4)	(1.3)
Net cash provided from (used in) financing activities	(1.8)	28.4
Effect of exchange rate changes on cash	(0.1)
Increase in cash and cash equivalents	8.8	24.3
Cash, cash equivalents, and restricted cash at beginning of period	41.6	10.3
Cash, cash equivalents, and restricted cash at end of period	$ 50.4	$ 34.6

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Changes in Equity - 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 income			10.6			10.6
Cash dividends			(2.6)			(2.6)
Stock option activity		(0.6)		6.6		6
Restricted stock activity	0.1	0.1		0.6		0.8
Repurchase of shares				(5.2)		(5.2)
Other comprehensive income (loss), net of tax					0.9	0.9
Balance at Aug. 31, 2017	45.3	460.3	735.9	(277.8)	(39)	924.7
Balance at May. 31, 2017	45.2	460.8	727.9	(279.8)	(39.9)	914.2
Increase (Decrease) in Stockholders' Equity
Net income						3.6
Other comprehensive income (loss), net of tax						4.3
Balance at Feb. 28, 2018	45.3	464.1	723.8	(282.4)	(35.6)	915.2
Balance at Aug. 31, 2017	45.3	460.3	735.9	(277.8)	(39)	924.7
Increase (Decrease) in Stockholders' Equity
Net income			(22.5)			(22.5)
Cash dividends			(2.6)			(2.6)
Stock option activity		0.7		2.6		3.3
Restricted stock activity		1.3		0.2		1.5
Other comprehensive income (loss), net of tax					2.2	2.2
Balance at Nov. 30, 2017	45.3	462.3	710.8	(275)	(36.8)	906.6
Increase (Decrease) in Stockholders' Equity
Net income			15.5			15.5
Cash dividends			(2.5)			(2.5)
Stock option activity		(0.2)		0.3		0.1
Restricted stock activity		2		0.2		2.2
Repurchase of shares				(7.9)		(7.9)
Other comprehensive income (loss), net of tax					1.2	1.2
Balance at Feb. 28, 2018	45.3	464.1	723.8	(282.4)	(35.6)	915.2
Increase (Decrease) in Stockholders' Equity
Cumulative effect adjustment upon adoption of ASC 606 on June 1, 2018 | ASU 2014-09			(20.4)			(20.4)
Balance at May. 31, 2018	45.3	470.5	733.2	(280.7)	(32)	936.3
Increase (Decrease) in Stockholders' Equity
Net income			15.1			15.1
Cash dividends			(2.7)			(2.7)
Stock option activity		0.7		2.2		2.9
Restricted stock activity		(1.4)		(0.5)		(1.9)
Other comprehensive income (loss), net of tax					(0.2)	(0.2)
Balance at Aug. 31, 2018	45.3	469.8	725.2	(279)	(32.2)	929.1
Balance at May. 31, 2018	45.3	470.5	733.2	(280.7)	(32)	936.3
Increase (Decrease) in Stockholders' Equity
Net income						(15.3)
Other comprehensive income (loss), net of tax						0.2
Balance at Feb. 28, 2019	45.3	474.8	689.6	(278.5)	(31.8)	899.4
Balance at Aug. 31, 2018	45.3	469.8	725.2	(279)	(32.2)	929.1
Increase (Decrease) in Stockholders' Equity
Net income			7			7
Cash dividends			(2.6)			(2.6)
Stock option activity		0.9		1.6		2.5
Restricted stock activity		0.1		(0.1)
Other comprehensive income (loss), net of tax					(0.4)	(0.4)
Balance at Nov. 30, 2018	45.3	470.8	729.6	(277.5)	(32.6)	935.6
Increase (Decrease) in Stockholders' Equity
Net income			(37.4)			(37.4)
Cash dividends			(2.6)			(2.6)
Stock option activity		1				1
Restricted stock activity		3		(0.2)		2.8
Repurchase of shares				(0.8)		(0.8)
Other comprehensive income (loss), net of tax					0.8	0.8
Balance at Feb. 28, 2019	$ 45.3	$ 474.8	$ 689.6	$ (278.5)	$ (31.8)	$ 899.4

Basis of Presentation

Basis of Presentation	9 Months Ended
	Feb. 28, 2019
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, 2018 has been derived from audited financial statements. To prepare the financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”), management has made a number of estimates and assumptions relating to the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. Certain information and note disclosures, normally included in comprehensive financial statements prepared in accordance with GAAP, have been condensed or omitted pursuant to such rules and regulations of the SEC. These Condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and notes thereto included in our latest annual report on Form 10-K. In the opinion of management, the condensed consolidated financial statements reflect all adjustments (which consist only of normal recurring adjustments) necessary to present fairly the condensed consolidated financial position of AAR CORP. and its subsidiaries as of February 28, 2019, the Condensed Consolidated Statements of Operations and Condensed Consolidated Statements of Comprehensive Income (Loss) for the three- and nine-month periods ended February 28, 2019 and 2018, the Condensed Consolidated Statements of Cash Flows for the nine-month periods ended February 28, 2019 and 2018, and the Condensed Consolidated Statement of Changes in Equity for the three- and nine-month periods ended February 28, 2019 and 2018. The results of operations for such interim periods are not necessarily indicative of the results for the full year. New Accounting Pronouncements Adopted In March 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-07, Compensation — Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires an employer to report the service cost component of net periodic pension benefit cost in the same line item as other compensation costs for those related employees. Other components of net pension cost, including interest, expected return on plan assets, and actuarial gains and losses are to be presented outside of operating income. We adopted this ASU on June 1, 2018, which resulted in $0.1 million and $0.7 million of pension income included in Other expense, net in the Condensed Consolidated Statement of Operations for the three - and nine-month periods ended February 28, 2019, respectively. The Condensed Consolidated Statement of Operations for the three - and nine month periods ended February 28, 2018 were not restated as the non-service cost components of pension expense were not material to fiscal 2018. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASC 606”), which provides guidance for revenue recognition. ASC 606 superseded the revenue recognition requirements in Accounting Standards Codification (“ASC”) 605, Revenue Recognition, and most industry-specific guidance. We adopted ASC 606 on June 1, 2018 using the modified retrospective method. Under that approach, prior periods have not been restated and continue to be reported under the accounting standards in effect for those periods. A discussion of our revised accounting policy for revenue recognition is included in Note 3. We elected to use the practical expedient allowing for the application of ASC 606 only to contracts that were not completed as of June 1, 2018. We recognized the cumulative effect of initially applying ASC 606 as a decrease of $20.4 million to the opening balance of retained earnings as of June 1, 2018. The impact of the adoption of ASC 606 on our Condensed Consolidated Balance Sheet was as follows: As of ASC 606 As of May 31, 2018 Adjustments June 1, 2018 Accounts receivable, net $ 202.0 $ (31.4) $ 170.6 Inventories 460.7 (17.3) 443.4 Contract assets–current — 49.6 49.6 Other current assets 26.2 (0.9) 25.3 Other non-current assets 118.9 (19.0) 99.9 Accrued liabilities 138.3 9.1 147.4 Deferred tax liabilities 15.7 (6.6) 9.1 Other liabilities and deferred income 62.2 (1.1) 61.1 Retained earnings 733.2 (20.4) 712.8 The adoption of ASC 606 impacted us in three primary areas. First, we have certain contracts in which revenue is recognized using the percentage of completion method over the expected term of the contract. Under ASC 606, the contract term used for revenue recognition purposes was shortened to exclude any unexercised customer option years or incorporate customer rights to terminate the contract without significant penalty as we do not have any enforceable rights or obligations prior to the exercise of the underlying option. The impact of this change as of June 1, 2018 resulted in the elimination of certain deferred costs and the establishment of accrued liabilities reflecting our estimated obligations under the contracts. For this change, we recognized a decrease of $22.1 million to the opening balance of retained earnings as of June 1, 2018. Second, we have contracts under which we perform repair services on customer-owned assets whereby the customer simultaneously receives the benefits of the repair. These contracts also transitioned to an over time revenue recognition model as of June 1, 2018 compared to our prior policy of recognizing revenue at the time of shipment. The impact of this change as of June 1, 2018 resulted in the elimination of certain inventory and accounts receivable amounts and the establishment of a contract asset reflecting the over time revenue recognition treatment. For this change, we recognized an increase of $1.3 million to the opening balance of retained earnings as of June 1, 2018. Third, we have certain contracts under which we manufacture products with no alternative use as the customer owns the underlying intellectual property and we have an enforceable right to payment from the customer. As a result, we now recognize revenue for these contracts over time as opposed to at the time of shipment, which was our policy prior to June 1, 2018. The impact of this change as of June 1, 2018 resulted in the elimination of certain inventory amounts and the establishment of a contract asset reflecting the over time revenue recognition treatment. For this change, we recognized an increase of $0.4 million to the opening balance of retained earnings as of June 1, 2018. The impact of the ASC 606 adoption on our Condensed Consolidated Financial Statements as of February 28, 2019 and for the three- and nine-month periods ended February 28, 2019 were as follows: As of February 28, 2019 Balances ASC 606 Excluding As Reported Adjustments ASC 606 Accounts receivable, net $ 237.6 $ 39.5 $ 277.1 Contract assets 54.9 (54.9) — Inventories 514.7 21.4 536.1 Other current assets 39.3 0.2 39.5 Other non-current assets 67.5 24.1 91.6 Accrued liabilities 115.0 (3.1) 111.9 Deferred tax liabilities — 6.6 6.6 Deferred revenue on long-term contracts 89.0 7.4 96.4 Retained earnings 689.6 19.4 709.0 Three Months Ended February 28, 2019 Balances ASC 606 Excluding As Reported Adjustments ASC 606 Sales $ 529.5 $ 0.1 $ 529.6 Cost of sales 444.2 (1.0) 443.2 Gross profit 85.3 1.1 86.4 Provision for income taxes (benefit) (0.6) 0.2 (0.4) Income from continuing operations 27.4 0.9 28.3 Nine Months Ended February 28, 2019 Balances ASC 606 Excluding As Reported Adjustments ASC 606 Sales $ 1,489.1 $ (5.3) $ 1,483.8 Cost of sales 1,254.3 (4.1) 1,250.2 Gross profit 234.8 (1.2) 233.6 Provision for income taxes 4.7 (0.3) 4.4 Income from continuing operations 57.5 (0.9) 56.6 Nine Months Ended February 28, 2019 Balances ASC 606 Excluding As Reported Adjustments ASC 606 Cash flows provided from operating activities: Net loss $ (15.3) $ (0.9) $ (16.2) Income from continuing operations 57.5 (0.9) 56.6 Accounts receivable (73.3) (8.1) (81.4) Contract assets (5.2) 5.2 - Inventories (71.8) (4.1) (75.9) Accrued and other liabilities 2.8 6.0 8.8 Other 34.7 1.9 36.6 New Accounting Pronouncements Not Yet Adopted 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 a right-of-use asset and lease liability on the balance sheet for most lease arrangements, including those classified as operating leases under the current accounting guidance. In addition, this ASU will require new qualitative and quantitative disclosures about our leasing activities. This new standard will be effective for us beginning June 1, 2019 and is required to be adopted using a modified retrospective approach. The new standard provides us an option to recognize the cumulative effect adjustment on retained earnings as of June 1, 2019 or as of the beginning of the earliest period presented. We continue to evaluate this ASU and gather information on our lease population and portfolio. We are also considering the terms and conditions of our other arrangements that could meet the definition of a lease and designing and implementing new processes and controls, including information technology tools. We will adopt this ASU effective June 1, 2019 and apply it prospectively. We have made substantial progress on our implementation plan and expect to have an estimate of the impact of the ASU on our financial position during the fourth quarter of fiscal 2019. We do not anticipate that adoption of the ASU will have a significant impact on our results of operations or cash flows. In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income . This ASU permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the Tax Cuts and Jobs Act (the “Tax Reform Act”). We continue to evaluate the impact of this ASU on our consolidated financial statements and expect to adopt this ASU on June 1, 2019. In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . This ASU requires a change in the measurement approach for credit losses on financial assets measured on an amortized cost basis from an incurred loss method to an expected loss method, thereby eliminating the requirement that a credit loss be considered probable to impact the valuation of a financial asset measured on an amortized cost basis. This ASU also requires the measurement of expected credit losses to be based on relevant information about past events, including historical experience, current conditions, and a reasonable and supportable forecast of the collectability of the related financial asset. We continue to evaluate the impact of this ASU on our consolidated financial statements and expect to adopt this ASU on June 1, 2020.

Discontinued Operations

Discontinued Operations	9 Months Ended
	Feb. 28, 2019
Discontinued Operations
Discontinued Operations	Note 2 – Discontinued Operations During the third quarter of fiscal 2018, we decided to pursue the sale of our Contractor-Owned, Contractor-Operated (“COCO”) business previously included in our Expeditionary Services segment. Due to this strategic shift, the assets, liabilities, and results of operations of our COCO business have been reported as discontinued operations for all periods presented. Goodwill was allocated to this business based on its relative fair value to the reporting unit. The fair value of the reporting unit was determined based on a combination of the expected net proceeds upon sale and a discounted cash flow analysis. As the fair value of the COCO business was below its carrying value, a goodwill impairment charge of $9.8 million, representing the estimated loss on disposal, was recorded in the third quarter of fiscal 2018. Our COCO business completed certain contracts in the second quarter of fiscal 2018. As the aircraft supporting these contracts were not placed on new contracts, combined with the continued decline in operational tempo within the U.S. Department of Defense and an excess supply of aircraft assets in the market, we determined there was an impairment triggering event and tested the recoverability of our COCO assets. As a result, we recognized impairment and other charges of $54.2 million in the second quarter of fiscal 2018. The fair value of the aircraft and related assets was based on available market data for similar assets. On March 15, 2019, we signed a definitive agreement to sell certain contracts and assets of our COCO business. We expect the sale to close before the end of calendar 2019. In conjunction with this definitive agreement and other expected asset sales, we recognized an impairment charge in discontinued operations of $74.1 million during the third quarter of fiscal 2019 reflecting the expected net proceeds to be received upon the completion of the sale transactions. No amounts for general corporate overhead or interest expense were allocated to discontinued operations during the periods presented. Unless otherwise noted, amounts and disclosures throughout these Notes to Condensed Consolidated Financial Statements relate to our continuing operations. Operating results for discontinued operations were comprised of the following: Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Sales $ 26.6 $ 8.8 $ 68.8 $ 79.2 Cost of sales (31.3) (15.8) (79.0) (81.6) Asset impairments (74.1) (11.0) (74.1) (65.2) Selling, general and administrative expenses (2.7) (2.6) (7.5) (9.6) Loss from discontinued operations before provision for income tax benefit (81.5) (20.6) (91.8) (77.2) Provision for income tax benefit (16.7) (4.8) (19.0) (25.2) Loss from discontinued operations $ (64.8) $ (15.8) $ (72.8) $ (52.0) The carrying amounts of the major classes of assets and liabilities for our discontinued operations are as follows: February 28, May 31, 2019 2018 Inventory, rotable assets, and equipment $ 13.7 $ 106.1 Accounts receivable, net 11.8 14.7 Other assets 2.7 4.2 Assets of discontinued operations $ 28.2 $ 125.0 Liabilities of discontinued operations $ 26.0 $ 25.0

Revenue Recognition

Revenue Recognition	9 Months Ended
	Feb. 28, 2019
Revenue Recognition
Revenue recognition	Note 3 – Revenue Recognition Revenue is measured based on consideration specified in a contract with a customer, and excludes any sales incentives and amounts collected on behalf of third parties. We recognize revenue when we satisfy a performance obligation by transferring control over a product or service to a customer. Our unit of accounting for revenue recognition is a performance obligation included in our customer contracts. A performance obligation reflects the distinct good or service that we must transfer to a customer. At contract inception, we evaluate if the contract should be accounted for as a single performance obligation or if the contract contains multiple performance obligations. In some cases, our contract with the customer is considered one performance obligation as it includes factors such as whether the good or service being provided is significantly integrated with other promises in the contract, whether the service provided significantly modifies or customizes another good or service or whether the good or service is highly interdependent or interrelated. If the contract has more than one performance obligation, we determine the standalone price of each distinct good or service underlying each performance obligation and allocates the transaction price based on their relative standalone selling prices. The transaction price of a contract, which can include both fixed and variable amounts, is allocated to each performance obligation identified. Some contracts contain variable consideration, which could include incremental fees or penalty provisions related to performance. Variable consideration that can be reasonably estimated based on current assumptions and historical information is included in the transaction price at the inception of the contract but limited to the amount that is probable that a significant reversal in the amount of cumulative revenue recognized will not occur. Variable consideration that cannot be reasonably estimated is recorded when known. Our performance obligations are satisfied over time as work progresses or at a point in time based on transfer of control of products and services to our customers. The majority of our sales from products are recognized at a point in time upon transfer of control to the customer, which generally occurs upon shipment. In connection with certain sales of products, we also provide logistics services, which include inventory management, replenishment, and other related services. The price of such services is generally included in the price of the products delivered to the customer, and revenues are recognized upon delivery of the product, at which point, the customer has obtained control of the product. We do not account for these services separate from the related product sales as the services are inputs required to fulfill part orders received from customers. For our performance obligations that are satisfied over time, we measure progress in a manner that depicts the performance of transferring control to the customer. As such, we utilize the input method of cost-to-cost to recognize revenue over time as this depicts when control of the promised goods or services are transferred to the customer. Revenue is recognized based on the relationship of actual costs incurred to date to the estimated total cost at completion of the performance obligation. We are required to make certain judgments and estimates, including estimated revenues and costs, as well as inflation and the overall profitability of the arrangement. Key assumptions involved include future labor costs and efficiencies, overhead costs, and ultimate timing of product delivery. Differences may occur between the judgments and estimates made by management and actual program results. Changes in estimates and assumptions related to our arrangements accounted for using the cost-to-cost method are recorded using the cumulative catch-up method of accounting. These changes are primarily adjustments to the estimated profitability for our long-term, power-by-the-hour programs where we provide component inventory management and repair services. For the three-month period ended February 28, 2019, we recognized favorable adjustments of $0.8 million. For the three-month period ended February 28, 2018, we recognized favorable and unfavorable adjustments of $8.3 million and $6.5 million, respectively. When considering these adjustments on a net basis, we recognized net favorable adjustments of $0.8 million and $1.8 million in the three-month periods ended February 28, 2019 and 2018, respectively. For the nine-month period ended February 28, 2019, we recognized favorable and unfavorable cumulative catch-up adjustments of $4.6 million and $0.5 million, respectively. For the nine-month period ended February 28, 2018, we recognized favorable and unfavorable adjustments of $9.3 million and $7.1 million, respectively. When considering these adjustments on a net basis, we recognized net favorable adjustments of $4.1 million and $2.2 million in the nine-month periods ended February 28, 2019 and 2018, respectively. Under most of our U.S. government contracts, if the contract is terminated for convenience, we are entitled to payment for items delivered and fair compensation for work performed, the costs of settling and paying other claims, and a reasonable profit on the costs incurred or committed. We have elected to use certain practical expedients permitted under ASC 606. Shipping and handling fees and costs incurred associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales in our Condensed Consolidated Statement of Operations, and are not considered a performance obligation to our customers. Our reported sales on our Condensed Consolidated Statement of Operations are net of any sales or related non-income taxes. We also utilize the “as invoiced” practical expedient in certain cases where performance obligations are satisfied over time and the invoiced amount corresponds directly with the value we are providing to the customer. Contract Assets and Liabilities The timing of revenue recognition, customer billings, and cash collections results in a contract asset or contract liability at the end of each reporting period. Contract assets consist of unbilled receivables or costs incurred where revenue recognized over time using the cost-to-cost model exceeds the amounts billed to customers. Contract liabilities include advance payments and billings in excess of revenue recognized. Certain customers make advance payments prior to the satisfaction of our performance obligations on the contract. These amounts are recorded as contract liabilities until such performance obligations are satisfied, either over time as costs are incurred or at a point in time when deliveries are made. Contract assets and contract liabilities are determined on a contract-by-contract basis. Net contract assets and liabilities are as follows: February 28, June 1, 2019 2018 Change Contract assets – current $ 54.9 $ 49.6 $ 5.3 Contract assets – non-current 15.7 12.9 2.8 Contract liabilities – current (8.3) (9.4) 1.1 Contract liabilities– non-current (89.0) (35.8) (53.2) Net contract assets (liabilities) $ (26.7) $ 17.3 $ (44.0) Contract assets – non-current is reported within Other non-current assets, and Contract liabilities – current is reported within Accrued Liabilities on our Condensed Consolidated Balance Sheet. Changes in contract assets and contract liabilities primarily result from the timing difference between our performance of services and payments from customers. For the nine-month period ended February 28, 2019, we recognized as revenue the entire opening balance of our contract liabilities as the timing between customer payment and our performance of the services is a short period of time and generally no longer than three months. In the three-month period ended November 30, 2018, we recognized a provision for doubtful accounts of $12.4 million related to the bankruptcy of a European airline customer. The provision consisted of impairment of non-current contract assets of $7.6 million, allowance for doubtful accounts of $3.3 million, and other liabilities of $1.5 million. Remaining Performance Obligations As of February 28, 2019, we had approximately $1.2 billion of remaining performance obligations, also referred to as firm backlog, which excludes unexercised contract options and potential orders under our indefinite-delivery, indefinite-quantity (IDIQ) contracts. We expect that approximately 40% of this backlog will be recognized as revenue over the next 12 months, with the majority of the remaining balance recognized over the next three years. The amount of remaining performance obligations that is expected to be recognized as revenue beyond 12 months primarily relates to our long-term, power-by-the-hour programs where we provide component inventory management and repair services. Disaggregation of Revenue Sales across the major customer markets for each of our operating segments for the three- and nine-month periods ended February 28, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Aviation Services: Commercial $ 350.8 $ 340.2 $ 983.0 $ 940.4 Government and defense 146.5 88.8 415.6 251.6 $ 497.3 $ 429.0 $ 1,398.6 $ 1,192.0 Expeditionary Services: Commercial $ 6.8 $ 11.0 $ 23.3 $ 28.5 Government and defense 25.4 16.3 67.2 54.3 $ 32.2 $ 27.3 $ 90.5 $ 82.8 Sales by geographic region for the three- and nine-month periods ended February 28, 2019 and 2018 were as follows: Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Aviation Services: North America $ 373.7 $ 285.8 $ 1,024.9 $ 811.3 Europe/Africa 80.9 87.1 245.4 242.3 Other 42.7 56.1 128.3 138.4 $ 497.3 $ 429.0 $ 1,398.6 $ 1,192.0 Expeditionary Services: North America $ 30.2 $ 19.7 $ 85.1 $ 71.4 Europe/Africa 1.5 7.4 4.2 11.1 Other 0.5 0.2 1.2 0.3 $ 32.2 $ 27.3 $ 90.5 $ 82.8

Accounting for Stock-Based Comp

Accounting for Stock-Based Compensation	9 Months Ended
	Feb. 28, 2019
Accounting for Stock-Based Compensation
Accounting for Stock-Based Compensation	Note 4 – Accounting for Stock-Based Compensation Restricted Stock In the three-month period ended August 31, 2018, as part of our annual long-term stock incentive compensation, we granted 43,680 shares of performance-based restricted stock and 38,760 shares of time-based restricted stock to eligible employees. The grant date fair value per share for these shares was $48.09 (the closing price on the grant date). In June 2018, we also granted 29,128 shares of time-based restricted stock to members of the Board of Directors with a grant date fair value per share of $45.32. Expense charged to operations for restricted stock was $2.7 million and $2.0 million during the three-month periods ended February 28, 2019 and 2018, respectively, and $5.7 million and $4.9 million during the nine-month periods ended February 28, 2019 and 2018, respectively. Stock Options In the three-month period ended August 31, 2018, as part of our annual long-term stock incentive compensation, we granted 290,340 stock options to eligible employees at an exercise price per share of $48.09 and weighted average fair value of $13.67. The total intrinsic value of stock options exercised during the nine-month periods ended February 28, 2019 and 2018 was $12.0 million and $12.0 million, respectively. Expense charged to operations for stock options was $1.0 million and $1.4 million during the three-month periods ended February 28, 2019 and 2018 , respectively, and $3.2 million and $3.8 million during the nine-month periods ended February 28, 2019 and 2018, respectively.

Inventory

Inventory	9 Months Ended
	Feb. 28, 2019
Inventory
Inventory	Note 5 – Inventory The summary of inventories is as follows: February 28, May 31, 2019 2018 Aircraft and engine parts, components and finished goods $ 456.1 $ 383.5 Raw materials and parts 41.9 45.1 Work-in-process 16.7 32.1 $ 514.7 $ 460.7

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	9 Months Ended
	Feb. 28, 2019
Supplemental Cash Flow Information
Supplemental Cash Flow Information	Note 6 – Supplemental Cash Flow Information Nine Months Ended February 28, 2019 2018 Interest paid $ 6.7 $ 4.9 Income taxes paid 5.3 16.6 Income tax refunds received — 0.1

Sale of Receivables

Sale of Receivables	9 Months Ended
	Feb. 28, 2019
Sale of Receivables
Sale of Receivables	Note 7 – Sale of Receivables On February 23, 2018, we entered into a Purchase Agreement with Citibank N.A. (“Purchaser”) for the sale, from time to time, of certain accounts receivable due from certain customers (the “Purchase Agreement”). Under the Purchase Agreement, the maximum amount of receivables sold is limited to $150 million. The term of the Purchase Agreement runs through February 22, 2020; however, the Purchase Agreement may also be terminated earlier under certain circumstances. The term of the Purchase Agreement shall be automatically extended for annual terms unless either party provides advance notice that they do not intend to extend the term. We have no retained interests in the sold receivables, other than limited recourse obligations in certain circumstances, and only perform collection and administrative functions for the Purchaser. We account for these receivable transfers as sales under ASC 860, Transfers and Servicing , and de-recognize the sold receivables from our Condensed Consolidated Balance Sheet. During the nine- month period ended February 28, 2019, we sold $547.6 million of receivables under the Purchase Agreement and remitted $519.8 million to the Purchaser on their behalf. During fiscal 2018, we sold $239.6 million of receivables under the Purchase Agreement and remitted $167.9 million to the Purchaser on their behalf. As of February 28, 2019 and May 31, 2018, we had collected cash of $21.5 million and $10.5 million, respectively, which was not yet remitted to the Purchaser and was classified as Restricted cash on our Condensed Consolidated Balance Sheet. We recognize discounts on the sale of our receivables and other fees related to the Purchase Agreement in Other expense, net on our Condensed Consolidated Statements of Operations. During the three- and nine-month periods ended February 28, 2019, we incurred discounts on the sale of our receivables of $0.6 million and $1.6 million, respectively. During the three-month period ended February 28, 2018, we incurred discounts on the sale of our receivables and other fees of $0.5 million.

Financing Arrangements

Financing Arrangements	9 Months Ended
	Feb. 28, 2019
Financing Arrangements
Financing Arrangements	Note 8 – Financing Arrangements A summary of the carrying amount of our debt is as follows: February 28, May 31, 2019 2018 Revolving Credit Facility expiring November 1, 2021 with interest payable monthly $ 155.0 $ 130.0 Term loan due November 1, 2021 with interest payable monthly 23.5 23.9 Industrial revenue bond due August 1, 2018 — 25.0 Total debt 178.5 178.9 Debt issuance costs, net (1.3) (1.7) Long-term debt $ 177.2 $ 177.2 At February 28, 2019, our variable rate debt had a fair value that approximates its carrying value and is classified as Level 2 in the fair value hierarchy. The industrial revenue bond was paid on August 1, 2018 using our Revolving Credit Facility. 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 (“MRO”) facilities 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 fluctuating Prime Rate plus 25 to 125 basis points based on certain financial measurements, if a Prime Rate loan. Our financing arrangements also require us to comply with leverage and interest coverage ratios, maintain a minimum net working capital level, 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 also requires our significant domestic subsidiaries, and any subsidiaries that guarantee our other indebtedness, to provide a guarantee of payment under the Revolving Credit Facility. At February 28, 2019, we were in compliance with the financial and other covenants in our financing agreements.

Earnings per Share

Earnings per Share	9 Months Ended
	Feb. 28, 2019
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 nine-month periods ended February 28, 2019 and 2018 is as follows: Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Basic and Diluted EPS: Income from continuing operations $ 27.4 $ 31.3 $ 57.5 $ 55.6 Less income attributable to participating shares (0.1) (0.2) (0.2) (0.5) Income from continuing operations attributable to common shareholders 27.3 31.1 57.3 55.1 Loss from discontinued operations attributable to common shareholders (64.8) (15.8) (72.8) (52.0) Net income (loss) attributable to common shareholders for earnings per share $ (37.5) $ 15.3 $ (15.5) $ 3.1 Weighted Average Shares: Weighted average common shares outstanding – basic 34.5 34.0 34.6 34.1 Additional shares from the assumed exercise of stock options 0.4 0.5 0.4 0.4 Weighted average common shares outstanding – diluted 34.9 34.5 35.0 34.5 Earnings (Loss) per share – basic: Earnings from continuing operations $ 0.79 $ 0.91 $ 1.66 $ 1.62 Loss from discontinued operations (1.87) (0.46) (2.11) (1.52) Earnings (Loss) per share – basic and diluted $ (1.08) $ 0.45 $ (0.45) $ 0.10 Earnings (Loss) per share – diluted: Earnings from continuing operations $ 0.78 $ 0.90 $ 1.63 $ 1.60 Loss from discontinued operations (1.86) (0.46) (2.08) (1.52) Earnings (Loss) per share – basic and diluted $ (1.08) $ 0.44 $ (0.45) $ 0.08 The potential dilutive effect of 277,000 shares and 273,000 shares relating to stock options was excluded from the computation of weighted average common shares outstanding – diluted for both the three- and nine-month periods ended February 28, 2019, respectively, as the shares would have been anti-dilutive. At February 28, 2018, the average market price of our common shares was in excess of the exercise price of all of our outstanding options.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Feb. 28, 2019
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss	Note 10 – Accumulated Other Comprehensive Loss Changes in our accumulated other comprehensive loss (“AOCL”) by component for the three- and nine-month periods ended February 28, 2019 and 2018 were as follows: Currency Translation Pension Adjustments Plans Total Balance at December 1, 2018 $ (0.8) $ (31.8) $ (32.6) Other comprehensive loss before reclassifications 0.5 — 0.5 Amounts reclassified from AOCL — 0.3 0.3 Total other comprehensive income 0.5 0.3 0.8 Balance at February 28, 2019 $ (0.3) $ (31.5) $ (31.8) Balance at December 1, 2017 $ 0.8 $ (37.6) $ (36.8) Other comprehensive income before reclassifications 0.9 — 0.9 Amounts reclassified from AOCL — 0.3 0.3 Total other comprehensive income 0.9 0.3 1.2 Balance at February 28, 2018 $ 1.7 $ (37.3) $ (35.6) Currency Translation Pension Adjustments Plans Total Balance at June 1, 2018 $ 0.3 $ (32.3) $ (32.0) Other comprehensive loss before reclassifications (0.6) — (0.6) Amounts reclassified from AOCL — 0.8 0.8 Total other comprehensive income (loss) (0.6) 0.8 0.2 Balance at February 28, 2019 $ (0.3) $ (31.5) $ (31.8) Balance at June 1, 2017 $ (1.7) $ (38.2) $ (39.9) Other comprehensive income before reclassifications 3.4 — 3.4 Amounts reclassified from AOCL — 0.9 0.9 Total other comprehensive income 3.4 0.9 4.3 Balance at February 28, 2018 $ 1.7 $ (37.3) $ (35.6)

Income Taxes

Income Taxes	9 Months Ended
	Feb. 28, 2019
Income Taxes
Income Taxes	Note 11 – Income Taxes Our income tax expense for the three- and nine-month periods ended February 28, 2019 included a tax benefit of $4.7 million related to the recognition of previously unrecognized uncertain tax positions and a tax benefit of $1.8 million related to tax provision to federal income tax return filing differences. On December 22, 2017, the President of the United States signed into law the Tax Reform Act which significantly reduced the corporate federal income tax rate to 21% from 35%. The income tax rate reduction in the Tax Reform Act results in federal statutory tax rates for the Company of 21% and 29.2% in fiscal 2019 and 2018, respectively. Our income tax benefit for the three-month period ended February 28, 2018 included tax benefits of $14.8 million related to the impact of the Tax Reform Act. These tax benefits included a $13.0 million benefit for the impact of the re-measurement of our deferred tax assets and liabilities to the new, lower statutory rate and a $1.8 million benefit related to the application of the lower tax rate applied to our pre-tax income for the six-month period ended November 30, 2017 which was previously expected to be taxed at 35%.

Acquisitions

Acquisitions	9 Months Ended
	Feb. 28, 2019
Acquisitions
Acquisitions	Note 12 – Acquisitions On September 19, 2017, we acquired the outstanding shares of two MRO facilities in Canada owned by Premier Aviation for approximately $24.8 million. The purchase price includes $22.9 million paid at closing with the remaining deferred consideration paid in September 2018. This business is included in our Aviation Services segment. The fair value of assets acquired and liabilities assumed is as follows: Current assets $ 4.4 Property and equipment 15.1 Intangible assets, including goodwill 14.6 Accounts payable and accrued liabilities (9.3) $ 24.8

Business Segment Information

Business Segment Information	9 Months Ended
	Feb. 28, 2019
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 operating segments: Aviation Services comprised of supply chain and MRO activities and Expeditionary Services comprised of manufacturing activities. In the first quarter of fiscal 2019, we re-aligned the composition of our operating segments to leverage the full breadth of our operational expertise in Aviation Services. Our government-owned, contractor-operated operations, which include the INL/A Worldwide Aviation Support Services (“INL/A WASS”) program, were previously included in our Expeditionary Services segment and are now reported within our Aviation Services segment for all periods presented. The Aviation Services segment consists of aftermarket support and services offerings 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, customer fleet management and operations, and aircraft component repair management services. 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 primarily manufacturing operations with sales derived from the design and manufacture of pallets, shelters, and containers used to support the U.S. military’s requirements for a mobile and agile force including engineering, design, and system integration services for specialized command and control systems. This segment also designs and manufactures advanced composite materials for commercial, business and military aircraft. Cost of sales consists principally of 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, 2018 except for our revised accounting policy for revenue recognition. We adopted ASC 606 on June 1, 2018 and our revised accounting policy is further described in Note 3. Our chief operating decision making officer (Chief Executive Officer) evaluates performance based on the operating 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. Selected financial information for each segment is as follows: Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Sales: Aviation Services $ 497.3 $ 429.0 $ 1,398.6 $ 1,192.0 Expeditionary Services 32.2 27.3 90.5 82.8 $ 529.5 $ 456.3 $ 1,489.1 $ 1,274.8 Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Gross profit: Aviation Services $ 81.7 $ 72.1 $ 223.7 $ 195.9 Expeditionary Services 3.6 5.5 11.1 14.0 $ 85.3 $ 77.6 $ 234.8 $ 209.9 The following table reconciles segment gross profit to income from continuing operations before provision for income taxes: Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Segment gross profit $ 85.3 $ 77.6 $ 234.8 $ 209.9 Selling, general and administrative (54.8) (53.3) (152.1) (146.3) Provision for doubtful accounts (0.7) (0.1) (13.7) (0.4) Other expense, net (0.6) (0.5) (0.4) (0.5) Interest expense (2.6) (2.2) (7.2) (5.8) Interest income 0.2 — 0.8 0.1 Income from continuing operations before provision for income taxes $ 26.8 $ 21.5 $ 62.2 $ 57.0

Legal Proceedings

Legal Proceedings	9 Months Ended
	Feb. 28, 2019
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: Department of Justice Investigation The U.S. Department of Justice (“DoJ”), acting through the U.S. Attorney’s Office for the Southern District of Illinois, is conducting an investigation of AAR Airlift Group, Inc. (“Airlift”) under the federal civil False Claims Act (“FCA”). The investigation relates to Airlift’s performance of several contracts awarded by the U.S. Transportation Command concerning the operations and maintenance of rotary-wing and fixed-wing aircraft in Afghanistan and Africa, as well as several U.S. Navy contracts. In June 2018, the DoJ informed Airlift that part of the investigation was precipitated by a lawsuit filed under the qui tam provisions of the FCA by a former employee of Airlift. That lawsuit remains under seal. Airlift is cooperating with the DoJ investigation.

Basis of Presentation (Tables)

Basis of Presentation (Tables)	9 Months Ended
	Feb. 28, 2019
New accounting pronouncements adopted
Schedule of impact of the adoption of ASC 606	As of ASC 606 As of May 31, 2018 Adjustments June 1, 2018 Accounts receivable, net $ 202.0 $ (31.4) $ 170.6 Inventories 460.7 (17.3) 443.4 Contract assets–current — 49.6 49.6 Other current assets 26.2 (0.9) 25.3 Other non-current assets 118.9 (19.0) 99.9 Accrued liabilities 138.3 9.1 147.4 Deferred tax liabilities 15.7 (6.6) 9.1 Other liabilities and deferred income 62.2 (1.1) 61.1 Retained earnings 733.2 (20.4) 712.8
Balances Excluding ASC 606
New accounting pronouncements adopted
Schedule of impact of the adoption of ASC 606	The impact of the ASC 606 adoption on our Condensed Consolidated Financial Statements as of February 28, 2019 and for the three- and nine-month periods ended February 28, 2019 were as follows: As of February 28, 2019 Balances ASC 606 Excluding As Reported Adjustments ASC 606 Accounts receivable, net $ 237.6 $ 39.5 $ 277.1 Contract assets 54.9 (54.9) — Inventories 514.7 21.4 536.1 Other current assets 39.3 0.2 39.5 Other non-current assets 67.5 24.1 91.6 Accrued liabilities 115.0 (3.1) 111.9 Deferred tax liabilities — 6.6 6.6 Deferred revenue on long-term contracts 89.0 7.4 96.4 Retained earnings 689.6 19.4 709.0 Three Months Ended February 28, 2019 Balances ASC 606 Excluding As Reported Adjustments ASC 606 Sales $ 529.5 $ 0.1 $ 529.6 Cost of sales 444.2 (1.0) 443.2 Gross profit 85.3 1.1 86.4 Provision for income taxes (benefit) (0.6) 0.2 (0.4) Income from continuing operations 27.4 0.9 28.3 Nine Months Ended February 28, 2019 Balances ASC 606 Excluding As Reported Adjustments ASC 606 Sales $ 1,489.1 $ (5.3) $ 1,483.8 Cost of sales 1,254.3 (4.1) 1,250.2 Gross profit 234.8 (1.2) 233.6 Provision for income taxes 4.7 (0.3) 4.4 Income from continuing operations 57.5 (0.9) 56.6 Nine Months Ended February 28, 2019 Balances ASC 606 Excluding As Reported Adjustments ASC 606 Cash flows provided from operating activities: Net loss $ (15.3) $ (0.9) $ (16.2) Income from continuing operations 57.5 (0.9) 56.6 Accounts receivable (73.3) (8.1) (81.4) Contract assets (5.2) 5.2 - Inventories (71.8) (4.1) (75.9) Accrued and other liabilities 2.8 6.0 8.8 Other 34.7 1.9 36.6

Discontinued Operations (Tables

Discontinued Operations (Tables)	9 Months Ended
	Feb. 28, 2019
Discontinued Operations
Schedule of operating results for discontinued operations	Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Sales $ 26.6 $ 8.8 $ 68.8 $ 79.2 Cost of sales (31.3) (15.8) (79.0) (81.6) Asset impairments (74.1) (11.0) (74.1) (65.2) Selling, general and administrative expenses (2.7) (2.6) (7.5) (9.6) Loss from discontinued operations before provision for income tax benefit (81.5) (20.6) (91.8) (77.2) Provision for income tax benefit (16.7) (4.8) (19.0) (25.2) Loss from discontinued operations $ (64.8) $ (15.8) $ (72.8) $ (52.0)
Schedule of carrying amounts of the major classes and liabilities for our discontinued operations	February 28, May 31, 2019 2018 Inventory, rotable assets, and equipment $ 13.7 $ 106.1 Accounts receivable, net 11.8 14.7 Other assets 2.7 4.2 Assets of discontinued operations $ 28.2 $ 125.0 Liabilities of discontinued operations $ 26.0 $ 25.0

Revenue Recognition (Tables)

Revenue Recognition (Tables)	9 Months Ended
	Feb. 28, 2019
Revenue Recognition
Schedule of net contract assets and liabilities	February 28, June 1, 2019 2018 Change Contract assets – current $ 54.9 $ 49.6 $ 5.3 Contract assets – non-current 15.7 12.9 2.8 Contract liabilities – current (8.3) (9.4) 1.1 Contract liabilities– non-current (89.0) (35.8) (53.2) Net contract assets (liabilities) $ (26.7) $ 17.3 $ (44.0)
Schedule of disaggregation of revenue from major customer markets	Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Aviation Services: Commercial $ 350.8 $ 340.2 $ 983.0 $ 940.4 Government and defense 146.5 88.8 415.6 251.6 $ 497.3 $ 429.0 $ 1,398.6 $ 1,192.0 Expeditionary Services: Commercial $ 6.8 $ 11.0 $ 23.3 $ 28.5 Government and defense 25.4 16.3 67.2 54.3 $ 32.2 $ 27.3 $ 90.5 $ 82.8
Schedule of sales by geographic region	Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Aviation Services: North America $ 373.7 $ 285.8 $ 1,024.9 $ 811.3 Europe/Africa 80.9 87.1 245.4 242.3 Other 42.7 56.1 128.3 138.4 $ 497.3 $ 429.0 $ 1,398.6 $ 1,192.0 Expeditionary Services: North America $ 30.2 $ 19.7 $ 85.1 $ 71.4 Europe/Africa 1.5 7.4 4.2 11.1 Other 0.5 0.2 1.2 0.3 $ 32.2 $ 27.3 $ 90.5 $ 82.8

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Feb. 28, 2019
Inventory
Summary of inventories	February 28, May 31, 2019 2018 Aircraft and engine parts, components and finished goods $ 456.1 $ 383.5 Raw materials and parts 41.9 45.1 Work-in-process 16.7 32.1 $ 514.7 $ 460.7

Supplemental Cash Flow Inform_2

Supplemental Cash Flow Information (Tables)	9 Months Ended
	Feb. 28, 2019
Supplemental Cash Flow Information
Schedule of supplemental information on cash flows	Nine Months Ended February 28, 2019 2018 Interest paid $ 6.7 $ 4.9 Income taxes paid 5.3 16.6 Income tax refunds received — 0.1

Financing Arrangements (Tables)

Financing Arrangements (Tables)	9 Months Ended
	Feb. 28, 2019
Financing Arrangements
Summary of carrying amount of debt	February 28, May 31, 2019 2018 Revolving Credit Facility expiring November 1, 2021 with interest payable monthly $ 155.0 $ 130.0 Term loan due November 1, 2021 with interest payable monthly 23.5 23.9 Industrial revenue bond due August 1, 2018 — 25.0 Total debt 178.5 178.9 Debt issuance costs, net (1.3) (1.7) Long-term debt $ 177.2 $ 177.2

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Feb. 28, 2019
Earnings per Share
Schedule of reconciliation of computations of basic and diluted earnings per share information	Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Basic and Diluted EPS: Income from continuing operations $ 27.4 $ 31.3 $ 57.5 $ 55.6 Less income attributable to participating shares (0.1) (0.2) (0.2) (0.5) Income from continuing operations attributable to common shareholders 27.3 31.1 57.3 55.1 Loss from discontinued operations attributable to common shareholders (64.8) (15.8) (72.8) (52.0) Net income (loss) attributable to common shareholders for earnings per share $ (37.5) $ 15.3 $ (15.5) $ 3.1 Weighted Average Shares: Weighted average common shares outstanding – basic 34.5 34.0 34.6 34.1 Additional shares from the assumed exercise of stock options 0.4 0.5 0.4 0.4 Weighted average common shares outstanding – diluted 34.9 34.5 35.0 34.5 Earnings (Loss) per share – basic: Earnings from continuing operations $ 0.79 $ 0.91 $ 1.66 $ 1.62 Loss from discontinued operations (1.87) (0.46) (2.11) (1.52) Earnings (Loss) per share – basic and diluted $ (1.08) $ 0.45 $ (0.45) $ 0.10 Earnings (Loss) per share – diluted: Earnings from continuing operations $ 0.78 $ 0.90 $ 1.63 $ 1.60 Loss from discontinued operations (1.86) (0.46) (2.08) (1.52) Earnings (Loss) per share – basic and diluted $ (1.08) $ 0.44 $ (0.45) $ 0.08

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Feb. 28, 2019
Accumulated Other Comprehensive Loss
Schedule of changes in accumulated other comprehensive loss ("AOCL") by component	Currency Translation Pension Adjustments Plans Total Balance at December 1, 2018 $ (0.8) $ (31.8) $ (32.6) Other comprehensive loss before reclassifications 0.5 — 0.5 Amounts reclassified from AOCL — 0.3 0.3 Total other comprehensive income 0.5 0.3 0.8 Balance at February 28, 2019 $ (0.3) $ (31.5) $ (31.8) Balance at December 1, 2017 $ 0.8 $ (37.6) $ (36.8) Other comprehensive income before reclassifications 0.9 — 0.9 Amounts reclassified from AOCL — 0.3 0.3 Total other comprehensive income 0.9 0.3 1.2 Balance at February 28, 2018 $ 1.7 $ (37.3) $ (35.6) Currency Translation Pension Adjustments Plans Total Balance at June 1, 2018 $ 0.3 $ (32.3) $ (32.0) Other comprehensive loss before reclassifications (0.6) — (0.6) Amounts reclassified from AOCL — 0.8 0.8 Total other comprehensive income (loss) (0.6) 0.8 0.2 Balance at February 28, 2019 $ (0.3) $ (31.5) $ (31.8) Balance at June 1, 2017 $ (1.7) $ (38.2) $ (39.9) Other comprehensive income before reclassifications 3.4 — 3.4 Amounts reclassified from AOCL — 0.9 0.9 Total other comprehensive income 3.4 0.9 4.3 Balance at February 28, 2018 $ 1.7 $ (37.3) $ (35.6)

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Feb. 28, 2019
MRO facilities acquired in Quebec and Ontario, Canada owned by Premier Aviation
Acquisitions
Schedule of fair value of net assets acquired	Current assets $ 4.4 Property and equipment 15.1 Intangible assets, including goodwill 14.6 Accounts payable and accrued liabilities (9.3) $ 24.8

Business Segment Information (T

Business Segment Information (Tables)	9 Months Ended
	Feb. 28, 2019
Business Segment Information
Schedule of selected financial information for each reportable segment	Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Sales: Aviation Services $ 497.3 $ 429.0 $ 1,398.6 $ 1,192.0 Expeditionary Services 32.2 27.3 90.5 82.8 $ 529.5 $ 456.3 $ 1,489.1 $ 1,274.8 Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Gross profit: Aviation Services $ 81.7 $ 72.1 $ 223.7 $ 195.9 Expeditionary Services 3.6 5.5 11.1 14.0 $ 85.3 $ 77.6 $ 234.8 $ 209.9
Schedule of reconciliation of segment gross profit to income from continuing operations before provision for income taxes	Three Months Ended Nine Months Ended February 28, February 28, 2019 2018 2019 2018 Segment gross profit $ 85.3 $ 77.6 $ 234.8 $ 209.9 Selling, general and administrative (54.8) (53.3) (152.1) (146.3) Provision for doubtful accounts (0.7) (0.1) (13.7) (0.4) Other expense, net (0.6) (0.5) (0.4) (0.5) Interest expense (2.6) (2.2) (7.2) (5.8) Interest income 0.2 — 0.8 0.1 Income from continuing operations before provision for income taxes $ 26.8 $ 21.5 $ 62.2 $ 57.0

Basis of Presentation (Details)

Basis of Presentation (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2018	Feb. 28, 2018	Nov. 30, 2017	Aug. 31, 2017	Feb. 28, 2019	Feb. 28, 2018	Jun. 01, 2018	May 31, 2018
New accounting pronouncements adopted
Revenue, practical expedient application of ASC 606							true
Accounts receivable, net	$ 237.6						$ 237.6		$ 170.6	$ 202
Inventories	514.7						514.7		443.4	460.7
Contract assets - current	54.9						54.9		49.6
Other current assets	39.3						39.3		25.3	26.2
Other non-current assets	67.5						67.5		99.9	118.9
Accrued liabilities	115						115		147.4	138.3
Deferred tax liabilities									9.1	15.7
Other liabilities and deferred income									61.1	62.2
Deferred revenue on long-term contracts	89						89			35.8
Retained earnings	689.6						689.6		712.8	$ 733.2
Sales	529.5			$ 456.3			1,489.1	$ 1,274.8
Cost of sales	444.2						1,254.3
Gross profit	85.3			77.6			234.8	209.9
Provision for income taxes (benefit)	(0.6)			(9.8)			4.7	1.4
Income from continuing operations	27.4			31.3			57.5	55.6
Cash flows provided from operating activities:
Net income (loss)	(37.4)	$ 7	$ 15.1	15.5	$ (22.5)	$ 10.6	(15.3)	3.6
Income from continuing operations	27.4			$ 31.3			57.5	55.6
Accounts receivable							(73.3)	34.8
Contract assets							(5.2)
Inventories							(71.8)	(36.7)
Accrued and other liabilities							2.8	(12)
Other							34.7	$ (17.8)
ASC 606 Adjustments
New accounting pronouncements adopted
Accounts receivable, net									(31.4)
Inventories									(17.3)
Contract assets - current									49.6
Other current assets									(0.9)
Other non-current assets									(19)
Accrued liabilities									9.1
Deferred tax liabilities									(6.6)
Other liabilities and deferred income									(1.1)
Retained earnings									(20.4)
ASC 606 Adjustments | Other contracts
New accounting pronouncements adopted
Retained earnings									22.1
ASC 606 Adjustments | Repair services
New accounting pronouncements adopted
Retained earnings									1.3
ASC 606 Adjustments | Manufacturing products
New accounting pronouncements adopted
Retained earnings									$ 0.4
ASU 2014-09 | ASC 606 Adjustments
New accounting pronouncements adopted
Accounts receivable, net	39.5						39.5
Inventories	21.4						21.4
Contract assets - current	(54.9)						(54.9)
Other current assets	0.2						0.2
Other non-current assets	24.1						24.1
Accrued liabilities	(3.1)						(3.1)
Deferred tax liabilities	6.6						6.6
Deferred revenue on long-term contracts	7.4						7.4
Retained earnings	19.4						19.4
Sales	0.1						(5.3)
Cost of sales	(1)						(4.1)
Gross profit	1.1						(1.2)
Provision for income taxes (benefit)	0.2						(0.3)
Income from continuing operations	0.9						(0.9)
Cash flows provided from operating activities:
Net income (loss)							(0.9)
Income from continuing operations	0.9						(0.9)
Accounts receivable							(8.1)
Contract assets							5.2
Inventories							(4.1)
Accrued and other liabilities							6
Other							1.9
ASU 2014-09 | Balances Excluding ASC 606
New accounting pronouncements adopted
Accounts receivable, net	277.1						277.1
Inventories	536.1						536.1
Other current assets	39.5						39.5
Other non-current assets	91.6						91.6
Accrued liabilities	111.9						111.9
Deferred tax liabilities	6.6						6.6
Deferred revenue on long-term contracts	96.4						96.4
Retained earnings	709						709
Sales	529.6						1,483.8
Cost of sales	443.2						1,250.2
Gross profit	86.4						233.6
Provision for income taxes (benefit)	(0.4)						4.4
Income from continuing operations	28.3						56.6
Cash flows provided from operating activities:
Net income (loss)							(16.2)
Income from continuing operations	28.3						56.6
Accounts receivable							(81.4)
Inventories							(75.9)
Accrued and other liabilities							8.8
Other							36.6
ASU 2017-07 | Other expense, net
New accounting pronouncements adopted
Pension income	$ 0.1						$ 0.7

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Nov. 30, 2017	Feb. 28, 2019	Feb. 28, 2018	May 31, 2018
Discontinued Operations
Interest expense	$ 2.6	$ 2.2		$ 7.2	$ 5.8
Operating results for discontinued operations
Sales	26.6	8.8		68.8	79.2
Cost of sales	(31.3)	(15.8)		(79)	(81.6)
Asset impairments	(74.1)	(11)		(74.1)	(65.2)
Selling, general and administrative expenses	(2.7)	(2.6)		(7.5)	(9.6)
Loss from discontinued operations before provision for income tax benefit	(81.5)	(20.6)		(91.8)	(77.2)
Provision for income tax benefit	(16.7)	(4.8)		(19)	(25.2)
Loss from discontinued operations	(64.8)	(15.8)		(72.8)	$ (52)
Carrying amounts of the major classes of assets and liabilities for our discontinued operations
Inventory, rotable assets, and equipment	13.7			13.7		$ 106.1
Accounts receivable, net	11.8			11.8		14.7
Other assets	2.7			2.7		4.2
Assets of discontinued operations	28.2			28.2		125
Liabilities of discontinued operations	26			26		$ 25
Contractor-Owned, Contractor-Operated | Discontinued Operations, Held-for-sale or Disposed of by Sale
Discontinued Operations
Goodwill impairment charge	74.1	$ 9.8
Impairment and other charges			$ 54.2
General corporate overhead	0			0
Interest expense	$ 0			$ 0

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Revenue Recognition
Favorable cumulative catch-up adjustments	$ 0.8	$ 8.3	$ 4.6	$ 9.3
Unfavorable cumulative catch-up adjustments		6.5	0.5	7.1
Net cumulative catch-up adjustments	$ 0.8	$ 1.8	$ 4.1	$ 2.2
Incremental costs of obtaining a contract			true
Remaining performance obligations			true

Revenue Recognition - Contract

Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Feb. 28, 2019	Nov. 30, 2018	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018	Jun. 01, 2018	May 31, 2018
Contract Assets and Liabilities
Contract assets - current	$ 54.9			$ 54.9		$ 49.6
Contract assets - non-current	15.7			15.7		12.9
Contract liabilities - current	(8.3)			(8.3)		(9.4)
Contract liabilities - non-current	(89)			(89)		(35.8)
Net contract assets (liabilities)	(26.7)			(26.7)		$ 17.3
Change in contract assets - current				5.3
Change in contract assets - noncurrent				2.8
Change in contract liabilities - current				1.1
Change in contract liabilities - non-current				(53.2)
Change in net contract assets				(44)
Provision for doubtful accounts	0.7	$ 12.4	$ 0.1	13.7	$ 0.4
Impairment of non-current contract assets		7.6
Allowance for doubtful accounts		3.3
Other liabilities	$ 21.3	$ 1.5		$ 21.3			$ 26.4

Revenue Recognition - Remaining

Revenue Recognition - Remaining Performance Obligations (Details) $ in Millions	Feb. 28, 2019USD ($)
Revenue Recognition
Remaining performance obligation	$ 1,200
Remaining performance obligation (as a percent)	40.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-11-30
Remaining Performance Obligations
Remaining performance obligation, expected timing of satisfaction	12 months

Revenue recognition - Disaggreg

Revenue recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Disaggregation of Revenue
Sales	$ 529.5	$ 456.3	$ 1,489.1	$ 1,274.8
Aviation Services
Disaggregation of Revenue
Sales	497.3	429	1,398.6	1,192
Aviation Services | North America
Disaggregation of Revenue
Sales	373.7	285.8	1,024.9	811.3
Aviation Services | Europe/Africa
Disaggregation of Revenue
Sales	80.9	87.1	245.4	242.3
Aviation Services | Other
Disaggregation of Revenue
Sales	42.7	56.1	128.3	138.4
Aviation Services | Commercial
Disaggregation of Revenue
Sales	350.8	340.2	983	940.4
Aviation Services | Government and defense
Disaggregation of Revenue
Sales	146.5	88.8	415.6	251.6
Expeditionary Services
Disaggregation of Revenue
Sales	32.2	27.3	90.5	82.8
Expeditionary Services | North America
Disaggregation of Revenue
Sales	30.2	19.7	85.1	71.4
Expeditionary Services | Europe/Africa
Disaggregation of Revenue
Sales	1.5	7.4	4.2	11.1
Expeditionary Services | Other
Disaggregation of Revenue
Sales	0.5	0.2	1.2	0.3
Expeditionary Services | Commercial
Disaggregation of Revenue
Sales	6.8	11	23.3	28.5
Expeditionary Services | Government and defense
Disaggregation of Revenue
Sales	$ 25.4	$ 16.3	$ 67.2	$ 54.3

Accounting for Stock-Based Co_2

Accounting for Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended			9 Months Ended
	Jun. 30, 2018	Feb. 28, 2019	Aug. 31, 2018	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Restricted stock
Stock options, additional disclosures
Compensation expense		$ 2.7		$ 2	$ 5.7	$ 4.9
Performance-based restricted stock
Stock options, additional disclosures
Granted (in shares)			43,680
Granted (in dollars per share)			$ 48.09
Time-based restricted stock
Stock options, additional disclosures
Granted (in shares)			38,760
Granted (in dollars per share)			$ 48.09
Time-based restricted stock | Board of Directors
Stock options, additional disclosures
Granted (in shares)	29,128
Granted (in dollars per share)	$ 45.32
Employee stock options
Stock options, additional disclosures
Granted (in shares)			290,340
Granted (in dollars per share)			$ 48.09
Weighted average fair value of stock options granted (in dollars per share)			$ 13.67
Total intrinsic value of stock options exercised					12	12
Compensation expense		$ 1		$ 1.4	$ 3.2	$ 3.8

Inventory (Details)

Inventory (Details) - USD ($) $ in Millions	Feb. 28, 2019	Jun. 01, 2018	May 31, 2018
Inventory
Aircraft and engine parts, components and finished goods	$ 456.1		$ 383.5
Raw materials and parts	41.9		45.1
Work-in-process	16.7		32.1
Total inventories	$ 514.7	$ 443.4	$ 460.7

Supplemental Cash Flow Inform_3

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018
Supplemental Cash Flow Information
Interest paid	$ 6.7	$ 4.9
Income taxes paid	$ 5.3	16.6
Income tax refunds received		$ 0.1

Sale of Receivables (Details)

Sale of Receivables (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended	12 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	May 31, 2018	Feb. 23, 2018
Other income, net
Sale of Receivables
Discount and other fees		$ 0.5
Purchase Agreement
Sale of Receivables
Retained interests	$ 0		$ 0
Sale of Receivables	547.6		547.6	$ 239.6
Amount remitted to the Purchaser			519.8	167.9
Amount collected			21.5	$ 10.5
Purchase Agreement | Maximum
Sale of Receivables
Sale of Receivables					$ 150
Purchase Agreement | Other expense, net
Sale of Receivables
Discount and other fees	$ 0.6		$ 1.6

Financing Arrangements (Details

Financing Arrangements (Details) $ in Millions, $ in Millions	Oct. 18, 2017CAD ($)facility	Sep. 19, 2017facility	Feb. 28, 2019USD ($)	May 31, 2018USD ($)
Financing Arrangements
Total debt			$ 178.5	$ 178.9
Debt issuance costs, net			(1.3)	(1.7)
Long-term debt			177.2	177.2
Term loan due November 1, 2021 with interest payable monthly
Financing Arrangements
Total debt			23.5	23.9
Maximum borrowing capacity	$ 31
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			$ 155	130
Industrial revenue bond due August 1, 2018
Financing Arrangements
Total debt				$ 25
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		9 Months Ended
	Feb. 28, 2019	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Effect to the participating securities as result of net loss			$ 0
Basic and Diluted EPS:
Income from continuing operations	$ 27.4	$ 31.3	57.5	$ 55.6
Less income attributable to participating shares	(0.1)	(0.2)	(0.2)	(0.5)
Income from continuing operations attributable to common shareholders	27.3	31.1	57.3	55.1
Loss from discontinued operations attributable to common shareholders	(64.8)	(15.8)	(72.8)	(52)
Net income (loss) attributable to common shareholders for earnings per share	$ (37.5)	$ 15.3	$ (15.5)	$ 3.1
Weighted Average Shares:
Weighted average common shares outstanding - basic	34,500,000	34,000,000	34,600,000	34,100,000
Additional shares from assumed exercise of stock options	400,000	500,000	400,000	400,000
Weighted average common shares outstanding - diluted	34,900,000	34,500,000	35,000,000	34,500,000
Earnings (Loss) per share - basic:
Earnings from continuing operations	$ 0.79	$ 0.91	$ 1.66	$ 1.62
Loss from discontinued operations	(1.87)	(0.46)	(2.11)	(1.52)
Earnings (Loss) per share - basic and diluted	(1.08)	0.45	(0.45)	0.10
Earnings (Loss) per share - diluted:
Earnings from continuing operations	0.78	0.90	1.63	1.60
Loss from discontinued operations	(1.86)	(0.46)	(2.08)	(1.52)
Earnings (Loss) per share - basic and diluted	$ (1.08)	$ 0.44	$ (0.45)	$ 0.08
Stock options
Earnings (Loss) per share - diluted:
Antidilutive shares excluded from the computation of diluted earnings per share (in shares)	277,000		273,000

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions	3 Months Ended						9 Months Ended
	Feb. 28, 2019	Nov. 30, 2018	Aug. 31, 2018	Feb. 28, 2018	Nov. 30, 2017	Aug. 31, 2017	Feb. 28, 2019	Feb. 28, 2018
Accumulated Other Comprehensive Loss
Balance at beginning of the period	$ (32.6)		$ (32)	$ (36.8)		$ (39.9)	$ (32)	$ (39.9)
Other comprehensive loss before reclassifications	0.5			0.9			(0.6)	3.4
Amounts reclassified from AOCL	0.3			0.3			0.8	0.9
Other comprehensive income, net of tax	0.8	$ (0.4)	(0.2)	1.2	$ 2.2	0.9	0.2	4.3
Balance at end of the period	(31.8)	(32.6)		(35.6)	(36.8)		(31.8)	(35.6)
Currency Translation Adjustments
Accumulated Other Comprehensive Loss
Balance at beginning of the period	(0.8)		0.3	0.8		(1.7)	0.3	(1.7)
Other comprehensive loss before reclassifications	0.5			0.9			(0.6)	3.4
Other comprehensive income, net of tax	0.5			0.9			(0.6)	3.4
Balance at end of the period	(0.3)	(0.8)		1.7	0.8		(0.3)	1.7
Pensions Plans
Accumulated Other Comprehensive Loss
Balance at beginning of the period	(31.8)		$ (32.3)	(37.6)		$ (38.2)	(32.3)	(38.2)
Amounts reclassified from AOCL	0.3			0.3			0.8	0.9
Other comprehensive income, net of tax	0.3			0.3			0.8	0.9
Balance at end of the period	$ (31.5)	$ (31.8)		$ (37.3)	$ (37.6)		$ (31.5)	$ (37.3)

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended	7 Months Ended	9 Months Ended	12 Months Ended		14 Months Ended
	Feb. 28, 2019	Nov. 30, 2017	Dec. 21, 2017	Feb. 28, 2019	May 31, 2019	May 31, 2018	Feb. 28, 2019
Income Taxes
Tax benefit, recognition of previously unrecognized uncertain tax positions	$ 4.7			$ 4.7
Tax benefit, tax provision to federal income tax return filing differences	1.8	$ 1.8		$ 1.8
Federal statutory income tax rate (as a percent)			35.00%				21.00%
Effective income tax rate (as a percent)					21.00%	29.20%
Tax benefits, impact of tax reform act	14.8
Tax benefits, impact of re-measurement of deferred tax assets and liabilities	$ 13

Acquisitions (Details)

Acquisitions (Details) - MRO facilities acquired in Quebec and Ontario, Canada owned by Premier Aviation $ in Millions	Oct. 18, 2017facility	Sep. 19, 2017USD ($)facility
Acquisitions
Number of facilities acquired | facility	2	2
Total consideration		$ 24.8
Purchase price		22.9
Fair value of net assets acquired
Current assets		4.4
Property and equipment		15.1
Intangible assets, including goodwill		14.6
Accounts payable and accrued liabilities		(9.3)
Net assets acquired		$ 24.8

Business Segment Information (D

Business Segment Information (Details) $ in Millions	3 Months Ended		9 Months Ended
	Feb. 28, 2019USD ($)	Feb. 28, 2018USD ($)	Feb. 28, 2019USD ($)segment	Feb. 28, 2018USD ($)
Business Segment Information
Number of business segments | segment			2
Sales	$ 529.5	$ 456.3	$ 1,489.1	$ 1,274.8
Gross profit	85.3	77.6	234.8	209.9
Aviation Services
Business Segment Information
Sales	497.3	429	1,398.6	1,192
Gross profit	81.7	72.1	223.7	195.9
Expeditionary Services
Business Segment Information
Sales	32.2	27.3	90.5	82.8
Gross profit	$ 3.6	$ 5.5	$ 11.1	$ 14

Business Segment Information -

Business Segment Information - Reconcile of Gross Profit to Income (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Feb. 28, 2019	Nov. 30, 2018	Feb. 28, 2018	Feb. 28, 2019	Feb. 28, 2018
Reconciliation of segment gross profit to income before provision for income taxes
Segment gross profit	$ 85.3		$ 77.6	$ 234.8	$ 209.9
Selling, general and administrative	(54.8)		(53.3)	(152.1)	(146.3)
Provision for doubtful accounts	(0.7)	$ (12.4)	(0.1)	(13.7)	(0.4)
Other expense, net	(0.6)		(0.5)	(0.4)	(0.5)
Interest expense	(2.6)		(2.2)	(7.2)	(5.8)
Interest income	0.2			0.8	0.1
Income from continuing operations before provision for income taxes	$ 26.8		$ 21.5	$ 62.2	$ 57