Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Aug. 31, 2017

CONDENSED CONSOLIDATING BALANCE SHEETS

(UNAUDITED)

August 31, 2017

			Guarantor		Non-guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,681	$	343	$	1,519	$	(40	)	$	3,503
Receivables, less allowances		2		4,852		3,241		(89	)		8,006
Spare parts, supplies, fuel, prepaid expenses and other, less allowances		41		931		241		—			1,213
Total current assets		1,724		6,126		5,001		(129	)		12,722
PROPERTY AND EQUIPMENT, AT COST		22		47,939		3,579		—			51,540
Less accumulated depreciation and amortization		18		23,761		1,526		—			25,305
Net property and equipment		4		24,178		2,053		—			26,235
INTERCOMPANY RECEIVABLE		1,578		2,744		—		(4,322	)		—
GOODWILL		—		1,570		5,812		—			7,382
INVESTMENT IN SUBSIDIARIES		28,433		2,672		—		(31,105	)		—
OTHER ASSETS		3,492		1,403		1,308		(3,192	)		3,011
	$	35,231	$	38,693	$	14,174	$	(38,748	)	$	49,350
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Current portion of long-term debt	$	—	$	6	$	13	$	—		$	19
Accrued salaries and employee benefits		50		1,116		490		—			1,656
Accounts payable		149		1,429		1,489		(129	)		2,938
Accrued expenses		891		1,520		766		—			3,177
Total current liabilities		1,090		4,071		2,758		(129	)		7,790
LONG-TERM DEBT, LESS CURRENT PORTION		14,872		244		21		—			15,137
INTERCOMPANY PAYABLE		—		—		4,322		(4,322	)		—
OTHER LONG-TERM LIABILITIES
Deferred income taxes		—		5,753		169		(3,192	)		2,730
Other liabilities		2,651		3,526		898		—			7,075
Total other long-term liabilities		2,651		9,279		1,067		(3,192	)		9,805
STOCKHOLDERS’ INVESTMENT		16,618		25,099		6,006		(31,105	)		16,618
	$	35,231	$	38,693	$	14,174	$	(38,748	)	$	49,350

CONDENSED CONSOLIDATING BALANCE SHEETS

May 31, 2017

			Guarantor		Non-guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,884	$	325	$	1,807	$	(47	)	$	3,969
Receivables, less allowances		3		4,729		2,928		(61	)		7,599
Spare parts, supplies, fuel, prepaid expenses and other, less allowances		25		787		248		—			1,060
Total current assets		1,912		5,841		4,983		(108	)		12,628
PROPERTY AND EQUIPMENT, AT COST		22		47,201		3,403		—			50,626
Less accumulated depreciation and amortization		18		23,211		1,416		—			24,645
Net property and equipment		4		23,990		1,987		—			25,981
INTERCOMPANY RECEIVABLE		1,521		2,607		—		(4,128	)		—
GOODWILL		—		1,571		5,583		—			7,154
INVESTMENT IN SUBSIDIARIES		27,712		2,636		—		(30,348	)		—
OTHER ASSETS		3,494		1,271		1,249		(3,225	)		2,789
	$	34,643	$	37,916	$	13,802	$	(37,809	)	$	48,552
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Current portion of long-term debt	$	—	$	9	$	13	$	—		$	22
Accrued salaries and employee benefits		72		1,335		507		—			1,914
Accounts payable		10		1,411		1,439		(108	)		2,752
Accrued expenses		991		1,522		717		—			3,230
Total current liabilities		1,073		4,277		2,676		(108	)		7,918
LONG-TERM DEBT, LESS CURRENT PORTION		14,641		244		24		—			14,909
INTERCOMPANY PAYABLE		—		—		4,128		(4,128	)		—
OTHER LONG-TERM LIABILITIES
Deferred income taxes		—		5,472		238		(3,225	)		2,485
Other liabilities		2,856		3,448		863		—			7,167
Total other long-term liabilities		2,856		8,920		1,101		(3,225	)		9,652
STOCKHOLDERS’ INVESTMENT		16,073		24,475		5,873		(30,348	)		16,073
	$	34,643	$	37,916	$	13,802	$	(37,809	)	$	48,552

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended August 31, 2017

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUES	$	—		$	11,567		$	3,854		$	(124	)	$	15,297
OPERATING EXPENSES:
Salaries and employee benefits		38			4,227			1,253			—			5,518
Purchased transportation		—			2,063			1,464			(82	)		3,445
Rentals and landing fees		1			627			191			(1	)		818
Depreciation and amortization		—			639			112			—			751
Fuel		—			637			66			—			703
Maintenance and repairs		—			602			73			—			675
Intercompany charges, net		(116	)		113			3			—			—
Other		77			1,476			758			(41	)		2,270
		—			10,384			3,920			(124	)		14,180
OPERATING INCOME		—			1,183			(66	)		—			1,117
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries		596			(3	)		—			(593	)		—
Interest, net		(129	)		13			2			—			(114	)
Intercompany charges, net		131			(71	)		(60	)		—			—
Other, net		(2	)		(8	)		(11	)		—			(21	)
INCOME BEFORE INCOME TAXES		596			1,114			(135	)		(593	)		982
Provision for income taxes		—			399			(13	)		—			386
NET INCOME	$	596		$	715		$	(122	)	$	(593	)	$	596
COMPREHENSIVE INCOME	$	578		$	719		$	(18	)	$	(593	)	$	686

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended August 31, 2016

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUES	$	—		$	10,903		$	3,830		$	(70	)	$	14,663
OPERATING EXPENSES:
Salaries and employee benefits		36			4,106			1,169			—			5,311
Purchased transportation		—			1,917			1,351			(28	)		3,240
Rentals and landing fees		1			620			170			(1	)		790
Depreciation and amortization		—			611			128			—			739
Fuel		—			578			72			—			650
Maintenance and repairs		—			526			72			—			598
Intercompany charges, net		(90	)		62			28			—			—
Other		53			1,373			686			(41	)		2,071
		—			9,793			3,676			(70	)		13,399
OPERATING INCOME		—			1,110			154			—			1,264
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries		715			56			—			(771	)		—
Interest, net		(122	)		9			—			—			(113	)
Intercompany charges, net		122			(81	)		(41	)		—			—
Other, net		—			(5	)		(4	)		—			(9	)
INCOME BEFORE INCOME TAXES		715			1,089			109			(771	)		1,142
Provision for income taxes		—			380			47			—			427
NET INCOME	$	715		$	709		$	62		$	(771	)	$	715
COMPREHENSIVE INCOME	$	696		$	702		$	81		$	(771	)	$	708

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(UNAUDITED)

Three Months Ended August 31, 2017

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(878	)	$	1,717		$	(256	)	$	7		$	590
INVESTING ACTIVITIES
Capital expenditures		—			(985	)		(59	)		—			(1,044	)
Proceeds from asset dispositions and other		—			6			—			—			6
CASH USED IN INVESTING ACTIVITIES		—			(979	)		(59	)		—			(1,038	)
FINANCING ACTIVITIES
Net transfers from (to) Parent		744			(735	)		(9	)		—			—
Principal payments on debt		—			(8	)		(4	)		—			(12	)
Proceeds from stock issuances		150			—			—			—			150
Dividends paid		(134	)		—			—			—			(134	)
Purchase of treasury stock		(86	)		—			—			—			(86	)
Other, net		3			—			(9	)		—			(6	)
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		677			(743	)		(22	)		—			(88	)
Effect of exchange rate changes on cash		(2	)		23			49			—			70
Net (decrease) increase in cash and cash equivalents		(203	)		18			(288	)		7			(466	)
Cash and cash equivalents at beginning of period		1,884			325			1,807			(47	)		3,969
Cash and cash equivalents at end of period	$	1,681		$	343		$	1,519		$	(40	)	$	3,503

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS

(UNAUDITED)

Three Months Ended August 31, 2016

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	(342	)	$	1,119		$	188		$	6		$	971
INVESTING ACTIVITIES
Capital expenditures		—			(1,111	)		(104	)		—			(1,215	)
Proceeds from asset dispositions and other		—			9			—			—			9
CASH USED IN INVESTING ACTIVITIES		—			(1,102	)		(104	)		—			(1,206	)
FINANCING ACTIVITIES
Net transfers from (to) Parent		(35	)		(2	)		37			—			—
Payment on loan between subsidiaries		(2	)		(14	)		16			—			—
Principal payments on debt		—			(7	)		(5	)		—			(12	)
Proceeds from stock issuances		40			—			—			—			40
Dividends paid		(106	)		—			—			—			(106	)
Purchase of treasury stock		(222	)		—			—			—			(222	)
Other, net		1			(1	)		(13	)		—			(13	)
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(324	)		(24	)		35			—			(313	)
Effect of exchange rate changes on cash		—			8			(5	)		—			3
Net (decrease) increase in cash and cash equivalents		(666	)		1			114			6			(545	)
Cash and cash equivalents at beginning of period		1,974			326			1,277			(43	)		3,534
Cash and cash equivalents at end of period	$	1,308		$	327		$	1,391		$	(37	)	$	2,989