Company: AYR
Filing Date: 2025-04-23
Form Type: 10-K
Source: 0001628280-25-019189
Chunk: 66

Company: Aircastle LTD
Filing Date: 2025-04-23
Form: 10-K
Item: Item 16
Chunk 66
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 loss carry forwards based on all available information, including projections of future taxable income.Deferred tax assets and liabilities are included in other assets and accounts payable, accrued expenses and other liabilities, respectively.

F - 23

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

We do not expect to incur income taxes on future distributions of undistributed earnings of non-U.S. subsidiaries and accordingly, no deferred income taxes have been provided for the distributions of such earnings.  As of February 28, 2025, we have elected to permanently reinvest our accumulated undistributed U.S. earnings of $44.6 million.  Accordingly, no U.S. withholding taxes have been provided.  Withholding tax of $2.2 million would be due if such earnings were remitted.Our aircraft-owning subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes.  The aircraft owning subsidiaries resident in Ireland and the U.S. are currently subject to tax in those respective jurisdictions.We have a U.S.-based subsidiary which provides management services to our subsidiaries and is subject to U.S. 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.Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income from continuing operations for the years ended February 28, 2025, February 29, 2024 and February 28, 2023, consisted of the following: Year Ended February 28/29, 202520242023Notional U.S. federal income tax expense at the statutory rate:$29,916 $21,919 $18,068 U.S. state and local income tax, net1,086 1,098 928 Non-U.S. operations:Bermuda(11,233)(6,659)(12,039)Ireland2,531 5,709 19,279 Singapore(10)(2)27 Other low tax jurisdictions54 64 152 Non-deductible expenses in the U.S.37 29 19 Other(433)1,107 (968)Provision for income taxes$21,948 $23,265 $25,466 The Company