Equipment on Long-Term Lease

12 Months Ended

May 31, 2013

Equipment on Long-Term Lease

Equipment on Long-Term Lease

10. Equipment on Long-Term Lease

        In fiscal 2005, we entered into a series of ten-year agreements with a regional airline to provide supply chain services for its fleet of CRJ 700/900, ERJ 145 and CRJ 200 regional jets. As part of the agreements, we purchased from the customer approximately $58.4 million of equipment to support the program. The equipment is included in equipment on long-term lease on the Consolidated Balance Sheet and is being depreciated on a straight-line basis over its estimated useful life. The net book value of this equipment was $28.1 million and $30.9 million at May 31, 2013 and 2012, respectively.