Company: AIRTP
Filing Date: 2025-08-13
Form Type: 10-Q
Source: 0000353184-25-000073
Chunk: 12

Company: AIR T INC
Filing Date: 2025-08-13
Form: 10-Q
Item: Item 1
Chunk 12
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330)$10,020 

20

The increase in customer relationships from March 31, 2025 to June 30, 2025 relates to the quarterly changes in foreign currency translation adjustments at Shanwick.Based on the intangible assets recorded at June 30, 2025 and assuming no subsequent additions to, or impairment of the underlying assets, the remaining estimated annual amortization expense is expected to be as follows:(In thousands)Year ending March 31,Amortization2026 (excluding the three months ended June 30, 2025)$941 20271,19920281,11620291,02820301,02320311,022Thereafter3,939 $10,268 The carrying amount of goodwill as of June 30, 2025 and March 31, 2025 was $11.9 million and $10.5 million, respectively. The increase from the prior fiscal year end balance is attributable to the Royal acquisition within the overnight air cargo segment (as described in Note 2) of $1.0 million and the $0.3 million change in foreign currency translation adjustments related to the goodwill balance at Shanwick within the digital solutions segment. There was no impairment of goodwill during the three months ended June 30, 2025. Goodwill for relevant segments and corporate and other, at original cost, consists of the following (in thousands):June 30, 2025March 31, 2025Overnight air cargo$1,121 $76 Commercial aircraft, engines and parts4,227 4,227 Digital solutions6,555 6,239 Total reportable segment goodwill, at cost11,903 10,542 Corporate and other376 376 Less accumulated impairment(376)(376)Goodwill, net of impairment$11,903 $10,542 

8.    Investments in Securities and Derivative Instruments

As part of the Company’s interest rate risk management strategy, the Company, from time to time, uses derivative instruments to minimize significant unanticipated earnings fluctuations that may arise from rising variable interest rate costs associated with existing borrowings. To meet these objectives, the Company has entered into interest rate swaps designated as cash flow hedging instruments. As of June 30, 2025, all interest rate swaps previously designated as cash flow hedging instruments have been determined to no longer be effective hedges. For de-designated interest-rate swap contracts included in accumulated other