Our Contractor-Owned, Contractor-Operated (“COCO”) business previously included in our Expeditionary Services segment 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 (“DoD”) 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.

During the third quarter of fiscal 2018, we decided to pursue the sale of our COCO business. 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 was recorded in the third quarter of fiscal 2018.

During fiscal 2019, we signed an agreement to sell our U.S. Department of Defense ("DoD") contracts and certain assets of our COCO business. In conjunction with this 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.

In fiscal 2020, we signed an agreement to sell the remaining operating contract of the COCO business and recognized an impairment charge of $11.8 million in the first quarter of fiscal 2020 related to the disposal of the remaining COCO assets. The sale of the DoD contracts and related assets was completed in the second quarter of fiscal 2020 and the sale of the remaining operating contract was completed in the fourth quarter of fiscal 2020 shortly after government approval. Our continuing involvement in the COCO business is limited to the lease of certain aircraft which is an obligation of the acquirer of the non-DoD contract.

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 Consolidated Financial Statements relate to our continuing operations.


	For the Year Ended May 31,
	2020		2019		2018
Sales	$	40.4	$	95.8	$	96.3
Cost of sales		(45.4)		(106.1)		(101.4)
Asset impairments		(11.8)		(74.1)		(65.2)
Selling, general and administrative expenses		(8.6)		(12.1)		(11.8)
Operating loss from discontinued operations		(25.4)		(96.5)		(82.1)
Provision for income taxes		(5.0)		(19.9)		(24.0)
Loss from discontinued operations	$	(20.4)	$	(76.6)	$	(58.1)

The carrying amounts of the major classes of assets and liabilities for our discontinued operations are as follows:


	May 31,
	2020		2019
Accounts receivable, net	$	0.2	$	16.2
Inventory, rotable assets, and equipment		—		7.5
Operating lease ROU assets		21.9		—
Other assets		0.8		5.5
Assets of discontinued operations	$	22.9	$	29.2

Accounts payable and accrued liabilities	$	8.0	$	29.2
Operating lease liabilities		21.9		—
Liabilities of discontinued operations	$	29.9	$	29.2