Company: AYR
Filing Date: 2025-07-10
Form Type: 10-Q
Source: 0001628280-25-034715
Chunk: 16

Company: Aircastle LTD
Filing Date: 2025-07-10
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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 respectively, whereby our Shareholders provide certain management and administrative services to the Company.

Note 11. Income Taxes

Income taxes have been provided for based upon the tax laws and rates in countries in which our operations are conducted and income is earned.  On December 18, 2023, the Government of Bermuda enacted the Bermuda Corporate Income Tax Act (the “Bermuda CIT Act”), which imposes a 15% corporate current income tax (the “Bermuda CIT”) effective for tax years beginning on or after January 1, 2025.  Accordingly, the Company is subject to the Bermuda CIT with respect to its fiscal year beginning March 1, 2025, and subsequent years.

16

Aircastle Limited and SubsidiariesNotes to Unaudited Consolidated Financial Statements(Dollars in thousands, except per share amounts)May 31, 2025

The sources of income from continuing operations before income taxes and earnings of our unconsolidated equity method investment for the three months ended May 31, 2025 and 2024, were as follows: Three Months Ended May 31, 20252024U.S. operations$10,090 $4,996 Non-U.S. operations51,525 14,138 Income from continuing operations before income taxes and earnings of unconsolidated equity method investment$61,615 $19,134 Our U.S.-based aircraft-owning subsidiary is taxed in the United States.  Our non U.S.-based aircraft-owning subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes. We have a U.S.-based subsidiary which provides management services to our subsidiaries and is subject to U.S. federal, state and local income taxes.  We also have Ireland and Singapore-based subsidiaries which provide management services to our non-U.S. subsidiaries and are subject to tax in those respective jurisdictions.We recognized income tax provisions of $12.7 million and $3.6 million for the three months ended May 31, 2025 and 2024, respectively.  Our effective tax rate for the three months ended May 31, 2025 and 2024, was 20.6% and 18.7%, respectively.  The increase in our effective tax rate is primarily attributable to the mix of profits between the various jurisdictions in which we operate.Ireland and Bermuda Tax Law ChangesOn December