Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 58

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 58
---
916 LiabilitiesCarrying Amountof LiabilityFair Valueof LiabilityCarrying Amountof LiabilityFair Valueof LiabilityCredit Facilities$240,000 $240,000 $150,000 $150,000 Secured Term Financings115,840 108,370 509,104 513,161 Unsecured Term Financings600,000 600,000 — — Senior Notes4,350,000 4,418,705 4,350,000 4,387,341 _______________(1)See Assets Measured at Fair Value on a Recurring Basis.Aircraft ValuationImpairment of Flight EquipmentDuring the three months ended August 31, 2025, the Company recorded total impairment charges of $31.2 million.  This amount includes $22.4 million related to aircraft leased to 2 customers who filed for bankruptcy protection.  For these aircraft, the Company recognized $4.9 million of maintenance and lease rentals received in advance into revenue during the three months ended August 31, 2025.  The remaining impairment charges relate to other flight equipment recorded within other assets that are subject to tear-down and parts sales programs and 1 converted narrow-body freighter aircraft. During the six months ended August 31, 2025, the Company recorded total impairment charges of $36.2 million.  In addition to the items recognized in the current quarter, this amount includes $5.1 million of transactional impairments recorded during the three months ended May 31, 2025, related to engine redeliveries and 1 aircraft lease termination.  The Company recognized $18.7 million in revenue related to maintenance, security deposits and the reversal of lease incentive liabilities during the three months ended May 31, 2025.Recoverability AssessmentWe perform a recoverability assessment of all our aircraft and other flight equipment on a quarterly basis and annually during the third quarter of each fiscal year.We perform a recoverability test when events or changes in circumstances, or indicators, suggest that the carrying amount or net book value of an aircraft or other flight equipment may not be recoverable.  For assets with indicators of impairment, we measure whether the estimated future undiscounted net cash flows expected to be generated by the asset exceed its net book value. The undiscounted cash flows consist of cash flows from currently contracted lease rentals and maintenance payments, future projected lease rates and maintenance payments, transition costs, estimated down time, and estimated