Government Subsidies	9 Months Ended
Feb. 28, 2021
Government Subsidies
Government Subsidies	Note 11 – Government Subsidies On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in the U.S. in response to the COVID-19 pandemic. The CARES Act includes provisions relating to refundable payroll tax credits, deferral of the employer portion of certain payroll taxes, net operating loss carrybacks, and other areas. The payroll tax deferral requires that the deferred payroll taxes be paid over two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022. As of February 28, 2021, we deferred $12.5 million of payroll taxes of which $6.1 million are included in Accrued Liabilities and $6.4 million in Other liabilities on our Condensed Consolidated Balance Sheet. During the three-month period ended August 31, 2020, we received $57.2 million from the U.S. Treasury Department through the Payroll Support Program under the CARES Act. This funding included a $48.5 million cash grant which is to be used exclusively for the continuation of payment of employee wages, salaries and benefits for employees of certain maintenance, repair, and overhaul (“ MRO”) facilities. The grant was recognized as contra-expense on our Condensed Consolidated Statement of Income as the eligible wages, salaries and benefits were incurred. During the three-month period ended February 28, 2021, we recognized contra-expense within Cost of sales and Selling, general and administrative expenses of $23.2 million and $0.4 million, respectively, and during the nine-month period ended February 28, 2021, we recognized contra-expense within Cost of sales and Selling, general and administrative expenses of $47.5 million and $1.0 million. The remaining funding of $8.7 million is a low interest 10-year senior unsecured promissory note (“Promissory Note”) which bears interest at a rate per annum equal to the sum of (i) 1.0% for the first five years, and the applicable secured overnight financing rate plus 2.0% in years six through ten plus (ii) in kind interest of 3.0% for the first five years and increasing by 1.0% each year over the remaining term. The Promissory Note is pre-payable at par at any time. Certain corporate restrictions apply to us for approximately the next two years which include restrictions on dividends, stock repurchases, employee compensation, and certain workforce actions. Other countries have enacted legislation similar to the CARES Act to provide relief and stimulus measures to assist companies in mitigating the financial impact from COVID-19 and supporting their employees. During the three-and nine-month periods ended February 28, 2021, our foreign subsidiaries recognized employment subsidies of $1.2 million and $6.1 million from foreign governments which have been deducted from the related expenses on our Condensed Consolidated Statement of Income.

Government Subsidies

9 Months Ended

Feb. 28, 2021

Note 11 – Government Subsidies

On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in the U.S. in response to the COVID-19 pandemic. The CARES Act includes provisions relating to refundable payroll tax credits, deferral of the employer portion of certain payroll taxes, net operating loss carrybacks, and other areas. The payroll tax deferral requires that the deferred payroll taxes be paid over two years, with half of the amount required to be paid by December 31, 2021 and the other half by December 31, 2022. As of February 28, 2021, we deferred $12.5 million of payroll taxes of which $6.1 million are included in Accrued Liabilities and $6.4 million in Other liabilities on our Condensed Consolidated Balance Sheet.

During the three-month period ended August 31, 2020, we received $57.2 million from the U.S. Treasury Department through the Payroll Support Program under the CARES Act. This funding included a $48.5 million cash grant which is to be used exclusively for the continuation of payment of employee wages, salaries and benefits for employees of certain maintenance, repair, and overhaul (“ MRO”) facilities. The grant was recognized as contra-expense on our Condensed Consolidated Statement of Income as the eligible wages, salaries and benefits were incurred. During the three-month period ended February 28, 2021, we recognized contra-expense within Cost of sales and Selling, general and administrative expenses of $23.2 million and $0.4 million, respectively, and during the nine-month period ended February 28, 2021, we recognized contra-expense within Cost of sales and Selling, general and administrative expenses of $47.5 million and $1.0 million.

The remaining funding of $8.7 million is a low interest 10-year senior unsecured promissory note (“Promissory Note”) which bears interest at a rate per annum equal to the sum of (i) 1.0% for the first five years, and the applicable secured overnight financing rate plus 2.0% in years six through ten plus (ii) in kind interest of 3.0% for the first five years and increasing by 1.0% each year over the remaining term. The Promissory Note is pre-payable at par at any time. Certain corporate restrictions apply to us for approximately the next two years which include restrictions on dividends, stock repurchases, employee compensation, and certain workforce actions.

Other countries have enacted legislation similar to the CARES Act to provide relief and stimulus measures to assist companies in mitigating the financial impact from COVID-19 and supporting their employees. During the three-and nine-month periods ended February 28, 2021, our foreign subsidiaries recognized employment subsidies of $1.2 million and $6.1 million from foreign governments which have been deducted from the related expenses on our Condensed Consolidated Statement of Income.