Company: AYR
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001628280-25-019189
Chunk: 139

Company: Aircastle LTD
Filing Date: 2025-04-23
Form: 10-K
Item: Item 7
Chunk 139
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,956 Purchase obligations(3)771,676 524,734 246,942 — — Total$6,738,833 $1,450,425 $2,278,302 $1,819,352 $1,190,754  _____________

(1)Future interest payments on variable rate, SOFR-based debt obligations are estimated using the interest rate in effect at February 28, 2025.

(2)Represents contractual payment obligations for our office leases in the United States, Ireland and Singapore.

(3)At February 28, 2025, we had signed purchase agreements to acquire 20 aircraft for $771.7 million.  These amounts include estimates for pre-delivery deposits, contractual price escalation and other adjustments.  As of April 16, 2025, we have commitments to acquire 26 aircraft for $1.4 billion.

Capital Expenditures

From time to time, we make capital expenditures to maintain or improve our aircraft.  These expenditures include the cost of major overhauls necessary to place an aircraft in service and modifications made at the request of lessees.  For the years ended February 28, 2025, February 29, 2024 and February 28, 2023, we incurred a total of $20.4 million, $76.0 million and $90.8 million, respectively, of capital expenditures, including lease incentives, related to the acquisition and improvement of flight equipment.

As of February 28, 2025, the weighted average age by Net Book Value of our aircraft was 9.1 years.  In general, the costs of operating an aircraft, including maintenance expenditures, increase with the age of the aircraft.  Our lease agreements call for the lessee to be primarily responsible for maintaining the aircraft.  Maintenance reserves are generally paid by the lessee to provide for future maintenance events.  Provided a lessee performs scheduled maintenance of the aircraft, we are required to reimburse the lessee for scheduled maintenance payments.  In certain cases, we are also required to make lessor contributions, in excess of amounts a lessee may have paid, towards the costs of maintenance events performed by or on behalf of the lessee.  We may incur additional maintenance and modification costs in the future in the event we are required to remarket an aircraft or a lessee fails to meet its maintenance obligations under the lease agreement.

Actual maintenance payments to us by lessees in