Company: AYR
Filing Date: 2025-01-10
Form Type: 10-Q
Source: 0001628280-25-001098
Chunk: 75

Company: Aircastle LTD
Filing Date: 2025-01-10
Form: 10-Q
Item: Part I, Item 8
Chunk 75
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 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 $16.9 million and $15.3 million for the nine months ended November 30, 2024 and 2023, respectively.  Our effective tax rate for the nine months ended November 30, 2024 and 2023 was 21.6% and 22.7%, respectively.  The decrease in our effective tax rate is primarily attributable to the mix of profits in taxable and non-taxable jurisdictions.Ireland and Bermuda Tax Law ChangesOn December 18, 2023, Ireland enacted Finance (No. 2) Bill 2023 (the “Finance Bill”) which includes legislative changes for new tax measures and amendments to the Irish tax code, such as provisions to implement the Pillar Two GloBE rules, new outbound payment rules, and a dividend withholding tax, among other changes.  The Finance Bill requires a 20% withholding tax be applied to certain payments, such as interest payments, from Irish companies to recipients in no-tax and zero-tax jurisdictions, effective April 1, 2024.  The Finance Bill also requires a 25% withholding tax be applied to dividends and distributions, subject to certain exemptions, as well as introduces new interest deduction rules for a qualifying finance company.  The Company has determined that there is no current year impact from the law change.On December 18, 2023, Bermuda enacted the Bermuda CIT Act which imposes the 15% Bermuda CIT that applies to Bermuda businesses that are part of multinational enterprise groups with annual revenue of €750 million or more and is effective for tax years beginning on or after January 1, 2025.  The Company has appropriately considered the impact of the Bermuda CIT and its impact on current and deferred income taxes.

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Aircastle Limited and SubsidiariesNotes to Unaudited Consolidated Financial Statements(Dollars in thousands, except per share amounts)November 30, 2024

Note 12. Interest, Net

The following table shows the components of interest, net: Three Months Ended November 30,Nine Months Ended November 30, 2024202320242023Interest on borrowings and other liabilities$59,615 $56,746 $183,244 $170,751 Amortization of deferred financing fees and debt discount4