Company: AYR
Filing Date: 2025-10-09
Form Type: 10-Q
Source: 0001628280-25-044676
Chunk: 9

Company: Aircastle LTD
Filing Date: 2025-10-09
Form: 10-Q
Item: Part I, Item 1
Chunk 9
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 and the distributions of dividends and capital. This investment is reviewed for impairment whenever events or changes in circumstances indicate the fair value is less than its carrying value and the decline is other-than-temporary.Financial InstrumentsOur financial instruments, other than cash, consist principally of cash equivalents, accounts receivable, investments in debt and equity securities, accounts payable and secured and unsecured financings. The fair value of cash and cash equivalents, accounts receivable and accounts payable approximates the carrying value of these financial instruments because of their short-term nature.The fair value of our investments, which consist of debt and equity securities, have been valued using either quoted market prices to the extent such securities are traded in an active market (Level 1), or using the income approach for those 

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

securities where there is no active market or there is limited market data (Level 3). The fair value of our senior notes is estimated using quoted market prices (Level 1), whereas all our other financings are valued using a discounted cash flow analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements (Level 2).The carrying amounts and fair values of our financial instruments at August 31, 2025 and February 28, 2025, were as follows:August 31, 2025February 28, 2025AssetsCarrying Amountof AssetFair Valueof AssetCarrying Amountof AssetFair Valueof AssetInvestments, at fair value(1)$5,446 $5,446 $9,912 $9,912 Other investments, net728 728 4,916 4,916 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