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Business Segment Information | 6 Months Ended
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Nov. 30, 2023
Business Segment Information |
Business Segment Information | Note 15 – Business Segment Information ​ During the first quarter of fiscal 2024, our chief operating decision maker (“CODM”) implemented changes in how he organizes the business, allocates resources, and assesses performance. Specifically, this new structure resulted in the separation of our former Aviation Services segment into three new operating segments: Parts Supply, Repair & Engineering, and Integrated Solutions. ​ In conjunction with the re-alignment, our CODM now evaluates each segment’s performance based on operating income instead of gross profit as our CODM believes operating income is a more comprehensive profitability measure for each operating segment. ​ Our previously reported segment financial information has been recast to conform to our new segment structure. The change in our operating segments had no impact on our previously reported consolidated results of operations, financial condition, or cash flows. ​ Our operating segments are comprised of: ​
| ● | Parts Supply, primarily consisting of our sales of used serviceable engine and airframe parts and components and distribution of new parts;
| ● | Repair & Engineering, primarily consisting of our maintenance, repair, and overhaul services across airframes and components, including landing gear;
| ● | Integrated Solutions, primarily consisting of our fleet management and operations of customer-owned aircraft, customized performance-based supply chain logistics programs in support of the U.S. Department of Defense, U.S. Department of State, and foreign governments, flight hour component inventory and repair programs for commercial airlines, and integrated software solutions, including Trax; and
| ● | Expeditionary Services, primarily consisting of products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and non-governmental organizations with sales derived from the engineering, design, integration, and manufacture of pallets, shelters, and containers.
​ The accounting policies for the segments are the same as those described in Note 1 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended May 31, 2023. Cost of sales consists principally of the cost of products, including material used in manufacturing operations, direct labor, and overhead. The Company has not aggregated operating segments for purposes of identifying reportable segments. Inter-segment sales are recorded at fair value, which results in intercompany profit on inter-segment sales that is eliminated in consolidation. Corporate selling, general and administrative expenses include centralized functions such as legal, finance, treasury and human resources with a portion of the costs allocated to our operating segments. ​ Selected financial information for each segment is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Three Months Ended November 30, 2023
​ | ​ | Third-Party |  | Inter-segment |  | Total
​ | ​ | Sales | ​ | Sales | ​ | Sales
Parts Supply |  | $ | 227.6 |  | $ | 1.8 |  | $ | 229.4
Repair & Engineering | ​ |  | 145.4 | ​ | ​ | 22.1 | ​ | ​ | 167.5
Integrated Solutions | ​ |  | 156.6 | ​ |  | (0.7) | ​ |  | 155.9
Expeditionary Services | ​ |  | 15.8 | ​ |  | — | ​ |  | 15.8
​ | ​ | $ | 545.4 | ​ | $ | 23.2 | ​ | $ | 568.6
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended November 30, 2022
​ |  | Third-Party |  | Inter-segment |  | Total
​ | ​ | Sales | ​ | Sales | ​ | Sales
Parts Supply |  | $ | 183.6 |  | $ | 2.0 |  | $ | 185.6
Repair & Engineering | ​ | ​ | 134.8 | ​ | ​ | 18.3 | ​ | ​ | 153.1
Integrated Solutions | ​ |  | 127.3 | ​ |  | — | ​ |  | 127.3
Expeditionary Services | ​ |  | 24.1 | ​ |  | — | ​ |  | 24.1
​ | ​ | $ | 469.8 | ​ | $ | 20.3 | ​ | $ | 490.1
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended November 30, 2023
​ |  | Third-Party |  | Inter-segment |  | Total
​ | ​ | Sales | ​ | Sales | ​ | Sales
Parts Supply | ​ | $ | 464.4 | ​ | $ | 2.6 | ​ | $ | 467.0
Repair & Engineering | ​ |  | 282.9 | ​ |  | 41.6 | ​ |  | 324.5
Integrated Solutions | ​ |  | 312.9 | ​ |  | 0.4 | ​ |  | 313.3
Expeditionary Services | ​ |  | 34.9 | ​ |  | — | ​ |  | 34.9
​ | ​ | $ | 1,095.1 | ​ | $ | 44.6 | ​ | $ | 1,139.7
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Six Months Ended November 30, 2022
​ |  | Third-Party |  | Inter-segment |  | Total
​ | ​ | Sales | ​ | Sales | ​ | Sales
Parts Supply | ​ | $ | 352.2 | ​ | $ | 3.8 | ​ | $ | 356.0
Repair & Engineering | ​ |  | 262.4 | ​ |  | 38.6 | ​ |  | 301.0
Integrated Solutions | ​ |  | 255.1 | ​ |  | — | ​ |  | 255.1
Expeditionary Services | ​ |  | 46.4 | ​ |  | — | ​ |  | 46.4
​ | ​ | $ | 916.1 | ​ | $ | 42.4 | ​ | $ | 958.5
​ The following table reconciles segment operating income to income from continuing operations before income taxes: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Six Months Ended
​ |  | November, |  | November,
​ |  | 2023 |  | 2022 |  | 2023 |  | 2022
Segment operating income: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Parts Supply | ​ | $ | 28.4 | ​ | $ | 21.3 | ​ | $ | 43.5 | ​ | $ | 39.6
Repair & Engineering | ​ |  | 11.3 | ​ |  | 8.6 | ​ | ​ | 20.4 | ​ | ​ | 16.0
Integrated Solutions | ​ |  | 6.4 | ​ |  | 7.1 | ​ | ​ | 14.1 | ​ | ​ | 15.4
Expeditionary Services | ​ |  | 0.9 | ​ |  | 2.0 | ​ | ​ | 2.2 | ​ | ​ | 4.3
​ | ​ |  | 47.0 | ​ |  | 39.0 | ​ | ​ | 80.2 | ​ | ​ | 75.3
Corporate and other | ​ |  | (8.7) | ​ |  | (6.6) | ​ | ​ | (16.6) | ​ | ​ | (11.7)
Operating income | ​ |  | 38.3 | ​ |  | 32.4 | ​ | ​ | 63.6 | ​ | ​ | 63.6
Pension settlement charge | ​ |  | — | ​ |  | — | ​ | ​ | (26.7) | ​ | ​ | —
Losses related to sale and exit of business | ​ | ​ | (0.9) | ​ | ​ | (0.1) | ​ | ​ | (1.6) | ​ | ​ | (0.1)
Other income (expense), net | ​ |  | (0.1) | ​ |  | 0.5 | ​ | ​ | (0.1) | ​ | ​ | 0.7
Interest expense | ​ |  | (6.2) | ​ |  | (2.1) | ​ | ​ | (12.0) | ​ | ​ | (3.2)
Interest income | ​ |  | 0.6 | ​ |  | 0.1 | ​ | ​ | 1.0 | ​ | ​ | 0.2
Income from continuing operations before income taxes | ​ | $ | 31.7 | ​ | $ | 30.8 | ​ | $ | 24.2 | ​ | $ | 61.2
​

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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