Discontinued Operations

12 Months Ended

May 31, 2016

Discontinued operations

Discontinued Operations

2. Discontinued Operations

        On March 26, 2015, we completed the sale of our Telair Cargo Group to TransDigm, Inc. The Telair Cargo Group was comprised of Telair International, Telair US, and Nordisk Aviation Products. Cash received at closing in the fourth quarter of fiscal 2015 before fees and expenses was $705 million. The sale also allowed for contingent consideration of up to $35 million based on the occurrence of certain post-closing events related to the A400M cargo system. We recognized a pre-tax gain on the sale (net of transaction expenses and fees) of $198.6 million in the fourth quarter of fiscal 2015.

        In the first quarter of fiscal 2016, we recognized a gain of $27.7 million net of expenses representing the receipt of the contingent consideration related to the A400M cargo system.

        During fiscal 2015, we also announced our intention to sell our Precision Systems Manufacturing ("PSM") business comprised of our metal and composite machined and fabricated parts manufacturing operations. We recognized impairment charges of $57.5 million during fiscal 2015 to reduce the carrying value of the PSM business's net assets to their expected value at the time of sale. PSM is available for immediate sale and we continue to actively market PSM at reasonable prices in relation to its fair value. We expect a sale of PSM to be completed before the end of fiscal 2017.

        Telair Cargo Group and PSM are reported as discontinued operations in the Consolidated Statements of Income for all periods presented. Interest expense allocated to discontinued operations was $0 million, $9.2 million and $13.0 million for fiscal 2016, 2015, and 2014, respectively. No amounts for general corporate overhead were allocated to discontinued operations.

        Liabilities of discontinued operations of $6.9 million and $5.4 million at May 31, 2016 and 2015, respectively, were classified asAccrued Liabilitieson the Consolidated Balance Sheet. Operating income (loss) from discontinued operations was comprised of the following:

	For the Year Ended May 31,
	2016			2015			2014
Sales	$	47.7		$	286.3		$	325.9
Cost of sales		50.5			249.7			274.6
Selling, general and administrative expenses		5.4			28.0			31.2
Interest expense, net.		—			10.1			13.6
Operating income (loss) from discontinued operations	$	(8.2	)	$	(1.5	)	$	6.5

        Unless otherwise noted, amounts and disclosures throughout these Notes to Consolidated Financial Statements relate to our continuing operations.