10. Aircraft Portfolio

Aircraft Owned with Joint Venture Partners

We have ownership interests in three aircraft with joint venture partners at May 31, 2015 which are available for lease or sale to commercial air carriers. Our equity investment was approximately $20.5 million and $28.7 million as of May 31, 2015 and 2014, respectively, and is included in Investment in joint ventures on the Consolidated Balance Sheet. Included in the May 31, 2015 and 2014 amounts are notes receivable in the amount of $5.7 million and $12.2 million, respectively, for aircraft which the joint ventures have sold. Our aircraft joint ventures represent investments in limited liability companies that are accounted for under the equity method of accounting. Our membership interest in each of these joint ventures is 50%, and the primary business of these joint ventures is the acquisition, ownership, lease and disposition of certain commercial aircraft. Aircraft were purchased with cash contributions by the members of the joint ventures and debt financing provided on a limited recourse basis. Under the terms of servicing agreements with certain of the joint ventures, we provide administrative services and technical advisory services, including aircraft evaluations, oversight and logistical support of the maintenance process and records management. We also provide remarketing services with respect to the divestiture of aircraft by the joint ventures. During fiscal 2015, 2014 and 2013, we were paid $0.1 million, $0.1 million and $0.5 million, respectively, for such services. The income tax benefit or expense related to the operations of the joint ventures is recorded by the member companies.

Distributions from joint ventures are classified as operating or investing activities in the Consolidated Statements of Cash Flows based upon an evaluation of the specific facts and circumstances of each distribution.

Summarized financial information for these joint ventures is as follows:

	For the Year Ended May 31,
	2015		2014		2013
Sales	$	14.7	$	10.4	$	115.2
Income before provision for income taxes		0.9		6.7		13.5

During fiscal 2015, the joint venture partners sold one aircraft for $5.1 million. During fiscal 2013, the joint venture partners sold twelve aircraft for $77.9 million.

	May 31,
	2015		2014
Balance sheet information:
Assets	$	48.2	$	71.3
Debt		4.6		11.4
Members' capital		41.0		57.5

Information relating to aircraft type, year of manufacture, lessee, lease expiration date and expected disposition upon lease expiration of the three aircraft owned with joint venture partners as of May 31, 2015 is as follows:

Quantity	Aircraft Type	Year Manufactured	Lessee	Lease Expiration Date (FY)	Post-Lease Disposition
2	767-300	1991	United Airlines	2022	Sale/Re-lease
1	737-400	1993	—	—	Sale/Re-lease

3

Wholly-Owned Aircraft

In addition to the commercial aircraft owned with joint venture partners, we also previously owned 100% of two aircraft which we sold in the fourth quarter of fiscal 2015 for $11.0 million. The carrying value of these two aircraft was $25.8 million which resulted in the recognition of a loss on sale of $14.8 million.