Note 6 — Financing Arrangements

A summary of the carrying amount of our debt is as follows:

	August 31,			May 31,
	2014			2014

Revolving credit facility expiring April 24, 2018 with interest payable monthly	$	130.0		$	130.0
Secured credit facility (secured by aircraft and related engines and components) due April 23, 2015 with floating interest rate, payable monthly	27.6			29.9
Note payable due March 9, 2017 with floating interest rate, payable semi-annually on June 1 and December 1	25.0			30.0
Notes payable due January 15, 2022 with interest at 7.25% payable semi-annually on January 15 and July 15	332.4			332.6
Convertible notes payable due March 1, 2016 with interest at 2.25% payable semi-annually on March 1 and September 1	46.2			45.7
Other(1)	65.9			65.8
Total debt	627.1			634.0
Current maturities of debt	(78.5		)	(69.7		)
Long-term debt	$	548.6		$	564.3

(1) Included in Other is a mortgage loan (secured by Wood Dale, Illinois facility) due August 1, 2015 of $11.0 million and $11.0 million, 1.75% convertible notes due February 1, 2015 of $29.9 and $29.8 million, and an industrial revenue bond (secured by property, plant, and equipment) due August 1, 2018 of $25.0 million and $25.0 million at August 31, 2014 and May 31, 2014, respectively.

We have exercised our right to redeem all of the currently outstanding 1.75% convertible notes due February 1, 2015 at a redemption price of 103.358% of the principal amount plus accrued and unpaid interest to, but not including, the redemption date of October 1, 2014.

At August 31, 2014, the carrying value of our 7.25% bonds, 1.75% convertible notes and 2.25% convertible notes was $408.5 million and the estimated fair value was approximately $435.4 million. These debt issuances are classified as Level 2 in the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly.

At August 31, 2014, the remaining variable rate and fixed rate debt had a fair value that approximates the carrying value of $218.6 million. These debt instruments are classified as Level 3 in the fair value hierarchy which is defined as a fair value determined based upon one or more significant unobservable inputs.

We are subject to a number of covenants under our financing arrangements, including restrictions that relate to the payment of cash dividends, maintenance of minimum net working capital and tangible net worth levels, fixed charge coverage ratio, sales of assets, additional financing, purchase of our shares and other matters. We are in compliance with all financial and other covenants under our financing arrangements.

Convertible Notes

As of August 31, 2014 and May 31, 2014, the long-term debt and equity component (recorded in capital surplus, net of income tax benefit) consisted of the following:

	August 31,			May 31,
	2014			2014
Long-term debt:
Principal amount	$	79.8		$	79.8
Unamortized discount	(3.7		)	(4.4		)
Net carrying amount	$	76.1		$	75.4

Equity component, net of tax	$	75.3		$	75.3

The discount on the liability component of long-term debt is being amortized using the effective interest method based on an effective rate of 5.00% for our 1.75% convertible notes and 7.41% for our 2.25% convertible notes.

As of August 31, 2014 and 2013, for each of our convertible note issuances, the “if converted” value does not exceed its principal amount.

The interest expense associated with the convertible notes was as follows:

	Three Months Ended
	August 31,
	2014		2013
Coupon interest	$	0.5	$	0.8
Amortization of deferred financing fees	0.1		0.1
Amortization of discount	0.7		1.4
Interest expense related to convertible notes	$	1.3	$	2.3