Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 60

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 Company entered into settlement agreements with certain additional C&P insurers for an aggregate settlement amount of $55.7 million, which was recognized as a component of other income in its consolidated statements of income.  Of this amount, $40.9 million was received in cash as of August 31, 2025, with the remaining $14.8 million collected after that date.The receipt of the insurance proceeds serve to mitigate, in part, the Company’s losses under its aviation insurance policies.  The Company remains in settlement discussions with some of the remaining insurers under its C&P Policies.  However, the collection, timing and amount of any future recoveries, including those related to insurance litigation, remain uncertain.  Accordingly, at this time, the Company can give no assurance as to when or what amounts it may ultimately collect with respect to these matters.

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

Note 4. Lease Rental Revenues

Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at August 31, 2025, were as follows:Year Ending February 28/29,Amount2026 (Remainder of fiscal year)$382,216 2027715,477 2028623,754 2029541,843 2030450,458 Thereafter1,344,257 Total$4,058,005 At August 31, 2025 and February 28, 2025, the amounts of lease incentive liabilities recorded in maintenance payments on our consolidated balance sheets were $23.4 million and $34.8 million, respectively.

Note 5. Net Investment in Leases, Net

At August 31, 2025 and February 28, 2025, our net investment in leases consisted of 14 aircraft.  The components were as follows:August 31, 2025February 28, 2025Lease receivable$115,341 $121,202 Unguaranteed residual value of flight equipment145,591 142,849 Net investment leases260,932 264,051 Allowance for credit losses(6,528)(6,802)Net investment in leases, net$254,404 $257,249 At August 31, 2025, future lease payments to be received under our net investment in leases