Restructuring and Impairment Costs	9 Months Ended
Feb. 28, 2021
Restructuring and Impairment Costs.
Restructuring and Impairment Costs	Note 6 – Restructuring and Impairment Costs During the nine-month period ended February 28, 2021, we incurred severance and furlough-related costs of $8.3 million which were included as a component of Cost of sales and Selling, general and administrative on our Condensed Consolidated Statements of Income. Our liability for severance costs, inclusive of charges in prior periods which have not yet been paid, was $1.4 million as of February 28, 2021 which is included in Accrued liabilities on the Condensed Consolidated Balance Sheet. In accordance with ASC 360, Property, Plant and Equipment, we are required to test for impairment of long-lived assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable from its undiscounted cash flows. We utilize certain assumptions to estimate future undiscounted cash flows, including demand for our services, future market conditions and trends, business development pipeline of opportunities, current and future lease rates, lease terms, and residual values. In light of recent declines in commercial airline volumes and commercial program contract terminations, we evaluated future cash flows related to certain rotable assets supporting long-term programs and recognized asset impairment charges of $5.8 million in the three-month period ended August 31, 2020.

Restructuring and Impairment Costs

9 Months Ended

Feb. 28, 2021

Note 6 – Restructuring and Impairment Costs

During the nine-month period ended February 28, 2021, we incurred severance and furlough-related costs of $8.3 million which were included as a component of Cost of sales and Selling, general and administrative on our Condensed Consolidated Statements of Income. Our liability for severance costs, inclusive of charges in prior periods which have not yet been paid, was $1.4 million as of February 28, 2021 which is included in Accrued liabilities on the Condensed Consolidated Balance Sheet.

In accordance with ASC 360, Property, Plant and Equipment, we are required to test for impairment of long-lived assets whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable from its undiscounted cash flows. We utilize certain assumptions to estimate future undiscounted cash flows, including demand for our services, future market conditions and trends, business development pipeline of opportunities, current and future lease rates, lease terms, and residual values. In light of recent declines in commercial airline volumes and commercial program contract terminations, we evaluated future cash flows related to certain rotable assets supporting long-term programs and recognized asset impairment charges of $5.8 million in the three-month period ended August 31, 2020.