Company: AIRTP
Filing Date: 2025-02-12
Form Type: 10-Q
Source: 0000353184-25-000009
Chunk: 40

Company: AIR T INC
Filing Date: 2025-02-12
Form: 10-Q
Item: Item 8
Chunk 40
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$2,477 The Company's equity method investees may, from time to time, make distributions and dividends to the Company in accordance with accumulated earnings at the investee. For the three and nine months ended December 31, 2024 and 2023, the Company received distributions and dividends from equity method investees as follows (in thousands):Three Months EndedNine Months EndedInvestmentDecember 31, 2024December 31, 2023December 31, 2024December 31, 2023Lendway$— $— $— $— CCI— — — 452 CAM1,624 225 3,901 1,421 Other equity method investments180 45 1,231 214 Total$1,804 $270 $5,132 $2,087 

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9.    Inventories

Inventories consisted of the following (in thousands):December 31,2024March 31,2024Overnight air cargo:Finished goods$1,102 $893 Ground equipment manufacturing:Raw materials4,806 5,171 Work in process1,249 5,244 Finished goods3,702 2,770 Corporate and other:Raw materials1,165 1,003 Finished goods721 724 Commercial jet engines and parts:Parts30,792 49,522 Total inventories43,537 65,327 Reserves(4,998)(4,607)Total inventories, net of reserves$38,539 $60,720 

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10.     Lessor Arrangements

Equipment LeasesThe Company leases equipment to third-parties, primarily through Contrail. Leases for aircraft and engines to aviation customers typically have terms ranging from 1 and 4 years under operating lease agreements. On August 26, 2024, Contrail executed the operating agreement for CASP Leasing 1, LLC ("CASP"), a newly created and 95% owned subsidiary of Contrail. On August 29, 2024, CASP entered into two purchase agreements to acquire and subsequently lease two Airbus Model A321-111 aircraft. For the assets currently on lease, there are no options for the lessees to purchase the assets at the end of the lease term. The Company depreciates the aircraft and engines on a straight-line basis over the assets' useful life