Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Aug. 31, 2018

CONDENSED CONSOLIDATING BALANCE SHEETS

(UNAUDITED)

August 31, 2018

			Guarantor		Non-guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	938	$	180	$	1,293	$	(42	)	$	2,369
Receivables, less allowances		41		5,233		3,550		(108	)		8,716
Spare parts, supplies, fuel, prepaid expenses and other, less allowances		285		993		278		—			1,556
Total current assets		1,264		6,406		5,121		(150	)		12,641
PROPERTY AND EQUIPMENT, AT COST		21		52,339		3,966		—			56,326
Less accumulated depreciation and amortization		17		25,670		1,860		—			27,547
Net property and equipment		4		26,669		2,106		—			28,779
INTERCOMPANY RECEIVABLE		1,385		1,240		—		(2,625	)		—
GOODWILL		—		1,589		5,280		—			6,869
INVESTMENT IN SUBSIDIARIES		34,038		4,867		—		(38,905	)		—
OTHER ASSETS		241		1,591		1,780		—			3,612
	$	36,932	$	42,362	$	14,287	$	(41,680	)	$	51,901
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Short-term borrowings	$	299	$	—	$	—	$	—		$	299
Current portion of long-term debt		1,332		65		7		—			1,404
Accrued salaries and employee benefits		43		1,102		541		—			1,686
Accounts payable		187		1,252		1,778		(151	)		3,066
Accrued expenses		466		1,786		899		—			3,151
Total current liabilities		2,327		4,205		3,225		(151	)		9,606
LONG-TERM DEBT, LESS CURRENT PORTION		14,942		288		11		—			15,241
INTERCOMPANY PAYABLE		—		—		2,624		(2,624	)		—
OTHER LONG-TERM LIABILITIES
Deferred income taxes		101		2,730		117		—			2,948
Other liabilities		389		3,613		931		—			4,933
Total other long-term liabilities		490		6,343		1,048		—			7,881
STOCKHOLDERS’ INVESTMENT		19,173		31,526		7,379		(38,905	)		19,173
	$	36,932	$	42,362	$	14,287	$	(41,680	)	$	51,901

CONDENSED CONSOLIDATING BALANCE SHEETS

May 31, 2018

			Guarantor		Non-guarantor
	Parent		Subsidiaries		Subsidiaries		Eliminations			Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	1,485	$	257	$	1,538	$	(15	)	$	3,265
Receivables, less allowances		3		4,970		3,586		(78	)		8,481
Spare parts, supplies, fuel, prepaid expenses and other, less allowances		425		878		292		—			1,595
Total current assets		1,913		6,105		5,416		(93	)		13,341
PROPERTY AND EQUIPMENT, AT COST		21		51,232		3,868		—			55,121
Less accumulated depreciation and amortization		17		25,111		1,839		—			26,967
Net property and equipment		4		26,121		2,029		—			28,154
INTERCOMPANY RECEIVABLE		1,487		924		—		(2,411	)		—
GOODWILL		—		1,709		5,264		—			6,973
INVESTMENT IN SUBSIDIARIES		33,370		4,082		—		(37,452	)		—
OTHER ASSETS		75		1,854		1,829		104			3,862
	$	36,849	$	40,795	$	14,538	$	(39,852	)	$	52,330
LIABILITIES AND STOCKHOLDERS’ INVESTMENT
CURRENT LIABILITIES
Current portion of long-term debt	$	1,332	$	1	$	9	$	—		$	1,342
Accrued salaries and employee benefits		65		1,506		606		—			2,177
Accounts payable		16		1,332		1,719		(90	)		2,977
Accrued expenses		460		1,778		896		(3	)		3,131
Total current liabilities		1,873		4,617		3,230		(93	)		9,627
LONG-TERM DEBT, LESS CURRENT PORTION		14,942		288		13		—			15,243
INTERCOMPANY PAYABLE		—		—		2,411		(2,411	)		—
OTHER LONG-TERM LIABILITIES
Deferred income taxes		—		2,626		137		104			2,867
Other liabilities		619		3,432		1,126		—			5,177
Total other long-term liabilities		619		6,058		1,263		104			8,044
STOCKHOLDERS’ INVESTMENT		19,415		29,832		7,621		(37,452	)		19,416
	$	36,849	$	40,795	$	14,538	$	(39,852	)	$	52,330

CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

Three Months Ended August 31, 2018

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
REVENUES	$	—		$	12,367		$	4,787		$	(102	)	$	17,052
OPERATING EXPENSES:
Salaries and employee benefits		48			4,783			1,429			—			6,260
Purchased transportation		—			2,380			1,634			(47	)		3,967
Rentals and landing fees		1			631			192			(1	)		823
Depreciation and amortization		—			693			115			—			808
Fuel		—			902			84			—			986
Maintenance and repairs		—			646			89			—			735
Intercompany charges, net		(111	)		(226	)		337			—			—
Other		62			1,546			848			(54	)		2,402
		—			11,355			4,728			(102	)		15,981
OPERATING INCOME		—			1,012			59			—			1,071
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries		835			81			—			(916	)		—
Interest, net		(158	)		59			(13	)		—			(112	)
Other retirement plans income		—			193			13			(48	)		158
Intercompany charges, net		143			(154	)		(21	)		32			—
Other, net		(3	)		327			(340	)		—			(16	)
INCOME BEFORE INCOME TAXES		817			1,518			(302	)		(932	)		1,101
Provision for income taxes		—			215			51			—			266
NET INCOME	$	817		$	1,303		$	(353	)	$	(932	)	$	835
COMPREHENSIVE INCOME	$	800		$	1,401		$	(618	)	$	(933	)	$	650

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			4,368			1,258			—			5,664
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	)		114			2			—			—
Other		77			1,476			758			(41	)		2,270
		—			10,526			3,924			(124	)		14,326
OPERATING INCOME		—			1,041			(70	)		—			971
OTHER INCOME (EXPENSE):
Equity in earnings of subsidiaries		596			(3	)		—			(593	)		—
Interest, net		(129	)		13			2			—			(114	)
Other retirement plans income		—			141			5			—			146
Intercompany charges, net		131			(70	)		(61	)		—			—
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 CASH FLOWS

(UNAUDITED)

Three Months Ended August 31, 2018

	Parent			Guarantor Subsidiaries			Non-guarantor Subsidiaries			Eliminations			Consolidated
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES	$	785		$	(159	)	$	102		$	(27	)	$	701
INVESTING ACTIVITIES
Capital expenditures		—			(983	)		(196	)		—			(1,179	)
Proceeds from asset dispositions and other		(5	)		78			5			—			78
CASH USED IN INVESTING ACTIVITIES		(5	)		(905	)		(191	)		—			(1,101	)
FINANCING ACTIVITIES
Proceeds from short-term borrowings		299			—			—			—			299
Net transfers from (to) Parent		(853	)		763			90			—			—
Payment on loan between subsidiaries		—			—			—			—			—
Intercompany dividends		—			81			(81	)		—			—
Principal payments on debt		—			—			(2	)		—			(2	)
Proceeds from stock issuances		25			—			—			—			25
Dividends paid		(173	)		—			—			—			(173	)
Purchase of treasury stock		(625	)		—			—			—			(625	)
Other, net		—			148			(144	)		—			4
CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES		(1,327	)		992			(137	)		—			(472	)
Effect of exchange rate changes on cash		—			(5	)		(19	)		—			(24	)
Net (decrease) increase in cash and cash equivalents		(547	)		(77	)		(245	)		(27	)		(896	)
Cash and cash equivalents at beginning of period		1,485			257			1,538			(15	)		3,265
Cash and cash equivalents at end of period	$	938		$	180		$	1,293		$	(42	)	$	2,369

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) PROVIDED BY 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