Note H: Supplemental Information

Property and equipment, net of accumulated depreciation: Depreciation expense was $30.4 million for the three months ended August 31, 2023, compared to $31.4 million for the three months ended August 31, 2022.

Goodwill and intangible assets, net of accumulated amortization: Amortization expense relating to intangible assets was $10.8 million for the three months ended August 31, 2023, compared to $12.6 million for the three months ended August 31, 2022. Goodwill and intangible assets were recorded during the three months ended August 31, 2023 related to the acquisition of Alterna. The goodwill related to this acquisition is included in the Purchased Receivable reporting unit for goodwill impairment testing. Refer to Note D for additional information regarding this acquisition and the impact it had on goodwill and intangible assets. The Company did not recognize an impairment loss as it relates to its goodwill or intangible assets during the three months ended August 31, 2023 or August 31, 2022.

Short-term financing: Outstanding borrowings on the Company’s credit facilities had a weighted-average interest rate of 6.25% and 5.83% as of August 31, 2023 and May 31, 2023, respectively. The unused amount available under these credit facilities as of August 31, 2023 was approximately $2.0 billion.

The credit facilities contain various financial and operational covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of August 31, 2023.

Letters of credit: The Company had irrevocable standby letters of credit available totaling $123.2 million and $141.7 million as of August 31, 2023 and May 31, 2023, respectively, required to secure commitments for certain insurance policies. The letters of credit expire at various dates between September 30, 2023 and August 24, 2024. No amounts were outstanding on these letters of credit as of, or during the three months ended August 31, 2023 and August 31, 2022, or as of May 31, 2023.

Long-term debt: There have been no material changes to the Company's long-term debt agreement or balances subsequent to May 31, 2023. The Company’s long-term debt agreement contains customary representations, warranties, affirmative and negative covenants, including financial covenants that are usual and customary for such arrangements. The Company was in compliance with all of these covenants as of August 31, 2023.