Sale of Landing Gear Overhaul Business

9 Months Ended

Feb. 28, 2025

Sale of Landing Gear Overhaul Business

Sale of Landing Gear Overhaul Business

Note 14 – Sale of Landing Gear Overhaul Business

On December 19, 2024, we entered into an agreement to divest our Landing Gear Overhaul (“LGO”) business to GA Telesis for $51 million subject to post-closing adjustments for working capital, cash, and debt. The sale is expected to close in the fourth quarter of fiscal 2025, subject to customary and regulatory closing conditions.

The LGO business is reported within our Repair & Engineering segment. In connection with the decision to exit the LGO business, the LGO assets and liabilities have been reclassified as assets and liabilities held for sale beginning in the third quarter of fiscal 2025. The divestiture does not represent a strategic shift that will have a major effect on our operations and financial results and, therefore, did not qualify for presentation as discontinued operations.

We expect to realize net proceeds of approximately $44.5 million from the sale of the LGO business which reflects selling costs and an estimated working capital adjustment. We recognized a non-cash, pre-tax impairment charge of $63.0 million in the third quarter of fiscal 2025 to adjust the carrying value of the LGO assets to their estimated fair value. Goodwill of $14.6 million was reclassified to assets held for sale and was included in the determination of the impairment charge.

The LGO assets and liabilities reclassified to assets and liabilities held for sale as of February 28, 2025 are as follows:

Accounts receivable	$	16.7
Inventory		27.6
Rotable assets		37.8
Property & equipment		14.6
Goodwill		14.6
Other assets		17.0
Selling costs		2.0
Impairment loss		(63.0)
Assets held for sale	$	67.3
Accounts payable and accrued expenses	$	(13.2)
Lease liabilities		(9.6)
Liabilities held for sale	$	(22.8)