Other Non-current Assets	9 Months Ended
Feb. 28, 2023
Other Non-current Assets
Other Non-current Assets	Note 11 – Other Non-current Assets Investment in Indian Joint Venture As of February 28, 2023, our investments in joint ventures include $10.6 million for our 40% ownership interest in a joint venture in India to develop and operate an airframe maintenance facility. The facility received certain regulatory approvals and commenced airframe maintenance operations in the second quarter of fiscal 2022. The investment balance in this joint venture as of February 28, 2023 includes $9.7 million related to a guarantee liability recognized in conjunction with our guarantee of 40% of the Indian joint venture’s debt. In addition, each of the partners in the Indian joint venture has a loan to the joint venture proportionate to its equity ownership. Our loan to the Indian joint venture under this arrangement was $3.3 million as of February 28, 2023. We account for our share of the earnings or losses of the Indian joint venture using the equity method with a reporting lag of two months, as the financial statements of the Indian joint venture are not completed on a timely basis that is sufficient for us to apply the equity method on a current basis. Our share of the Indian joint venture’s losses for the three-month periods ended February 28, 2023 and 2022 were $1.2 million and $0.2 million, respectively. Our share of the losses for the nine-month periods ended February 28, 2023 and 2022 were $2.0 and $0.3 million, respectively. We are currently evaluating a potential exit from our investment in the Indian joint venture in conjunction with ownership changes being contemplated by our partners in the joint venture. Investment in Malaysian Joint Venture In the fourth quarter of fiscal 2020, we made the decision to exit our joint venture which operates a landing gear wheel and brake repair and overhaul facility in Malaysia. In conjunction with the decision to exit the joint venture, we recognized an impairment charge of $1.9 million in the fourth quarter of fiscal 2020 reflecting the anticipated net proceeds from our investment. In the third quarter of fiscal 2022, we decided to pursue a shutdown of the joint venture and recognized an additional impairment charge and related shutdown costs of $0.5 million which is reported in Loss from joint ventures on the Condensed Consolidated Statement of Income. License Fees In June 2011, we entered into a ten-year agreement with Unison Industries (“Unison”) to be the exclusive worldwide aftermarket distributor for Unison’s electrical components, sensors, switches and other systems for aircraft and industrial uses. In June 2020, we entered into an extension and expansion of our agreement with Unison including a new termination date of December 31, 2031, an initial $25.0 million license fee paid in June 2020 to Unison, and annual license fees at a fixed percentage of our net sales of Unison products. The June 2020 payment of $25.0 million was capitalized and is being amortized on a straight-line basis over the amended contract term. In September 2022, we entered into another amendment of our agreement with Unison including a one-year extension of the termination date to December 31, 2032, an $18.0 million license fee paid in September 2022, and an increase to the fixed percentage of annual license fees for our net sales of Unison products. The September 2022 payment of $18.0 million relates to specific product lines and is being amortized on a straight-line basis over the non-cancellable license period applicable to these product lines.

Other Non-current Assets

9 Months Ended

Feb. 28, 2023

Note 11 – Other Non-current Assets

Investment in Indian Joint Venture

As of February 28, 2023, our investments in joint ventures include $10.6 million for our 40% ownership interest in a joint venture in India to develop and operate an airframe maintenance facility. The facility received certain regulatory approvals and commenced airframe maintenance operations in the second quarter of fiscal 2022.

The investment balance in this joint venture as of February 28, 2023 includes $9.7 million related to a guarantee liability recognized in conjunction with our guarantee of 40% of the Indian joint venture’s debt. In addition, each of the partners in the Indian joint venture has a loan to the joint venture proportionate to its equity ownership. Our loan to the Indian joint venture under this arrangement was $3.3 million as of February 28, 2023.

We account for our share of the earnings or losses of the Indian joint venture using the equity method with a reporting lag of two months, as the financial statements of the Indian joint venture are not completed on a timely basis that is sufficient for us to apply the equity method on a current basis. Our share of the Indian joint venture’s losses for the three-month periods ended February 28, 2023 and 2022 were $1.2 million and $0.2 million, respectively. Our share of the losses for the nine-month periods ended February 28, 2023 and 2022 were $2.0 and $0.3 million, respectively.

We are currently evaluating a potential exit from our investment in the Indian joint venture in conjunction with ownership changes being contemplated by our partners in the joint venture.

Investment in Malaysian Joint Venture

In the fourth quarter of fiscal 2020, we made the decision to exit our joint venture which operates a landing gear wheel and brake repair and overhaul facility in Malaysia. In conjunction with the decision to exit the joint venture, we recognized an impairment charge of $1.9 million in the fourth quarter of fiscal 2020 reflecting the anticipated net proceeds from our investment. In the third quarter of fiscal 2022, we decided to pursue a shutdown of the joint venture and recognized an additional impairment charge and related shutdown costs of $0.5 million which is reported in Loss from joint ventures on the Condensed Consolidated Statement of Income.

License Fees

In June 2011, we entered into a ten-year agreement with Unison Industries (“Unison”) to be the exclusive worldwide aftermarket distributor for Unison’s electrical components, sensors, switches and other systems for aircraft and industrial uses. In June 2020, we entered into an extension and expansion of our agreement with Unison including a new termination date of December 31, 2031, an initial $25.0 million license fee paid in June 2020 to Unison, and annual license fees at a fixed percentage of our net sales of Unison products. The June 2020 payment of $25.0 million was capitalized and is being amortized on a straight-line basis over the amended contract term.

In September 2022, we entered into another amendment of our agreement with Unison including a one-year extension of the termination date to December 31, 2032, an $18.0 million license fee paid in September 2022, and an increase to the fixed percentage of annual license fees for our net sales of Unison products. The September 2022 payment of $18.0 million relates to specific product lines and is being amortized on a straight-line basis over the non-cancellable license period applicable to these product lines.