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Income Taxes
 12 Months Ended
Feb. 28, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
Income taxes have been provided for based upon the tax laws and rates in countries in which our operations are conducted and income is earned.
On December 18, 2023, the Government of Bermuda enacted the Bermuda Corporate Income Tax Act (the “Bermuda CIT Act”), which imposes a 15% corporate income tax (the “Bermuda CIT”) effective for tax years beginning on or after January 1, 2025. Accordingly, the Company is subject to the Bermuda CIT with respect to its fiscal year beginning March 1, 2025, and subsequent years.
As a result of the enactment of the Bermuda CIT Act, the Company now presents sources of income and the related components of the income tax provision by jurisdiction. Historically, such information was presented on a U.S. and non‑U.S. basis, as Bermuda was a zero‑rate jurisdiction in prior years.
The table below summarizes income by jurisdiction, including from Bermuda, the United States and other jurisdictions, primarily Ireland. Income from continuing operations before income taxes and earnings of unconsolidated equity method investment for the years ended February 28, 2026 and 2025, and February 29, 2024, were as follows:
 Year Ended February 28/29,
 202620252024
Bermuda$49,287 $53,649 $31,711 
United States22,867 27,253 25,029 
Other148,095 61,556 47,636 
Income from continuing operations before income taxes and earnings of unconsolidated equity method investment$220,249 $142,458 $104,376 
Our Bermuda, U.S., and Ireland-based aircraft-owning subsidiaries are subject to taxes in their respective jurisdictions. Our non-U.S.-based aircraft-owning subsidiaries generally earn income from sources outside the United States and, as a result, typically are not subject to U.S. federal, state or local income taxes.
The Company also has Irish, Singapore and U.S.-based subsidiaries that provide management services to our Bermuda, Irish and U.S. aircraft owning subsidiaries, and are subject to taxes in their respective jurisdictions.
The table below presents the components of the income tax provision attributable to Bermuda, the United States and other jurisdictions, primarily Ireland. The components of the income tax provision for the years ended February 28, 2026 and 2025, and February 29, 2024, consisted of the following:
 Year Ended February 28/29,
 202620252024
Current:
Bermuda$1,462 $— $— 
United States6,227 2,840 4,733 
Other(19)1,558 (1,521)
Current income tax provision7,670 4,398 3,212 
Deferred:
Bermuda— — — 
United States1,304 3,548 6,535 
Other19,889 14,002 13,518 
Deferred income tax21,193 17,550 20,053 
Total$28,863 $21,948 $23,265 
Upon adoption of ASU 2023-09, as described in Note 1, and enactment of the Bermuda CIT, as described above, the reconciliation of income taxes at the statutory rate to our provision for income taxes for the year ended February 28, 2026, was as follows:
 Year Ended February 28, 2026
AmountAs %
Statutory tax rate (Bermuda)$33,037 15.0 %
State and local income taxes, net of federal income tax effect— — %
Foreign tax effects:
Ireland:
Statutory tax rate difference(3,698)(1.7)%
Non-deductible interest expense4,960 2.3 %
Other(3,598)(1.6)%
United States:
Statutory tax rate difference1,372 0.6 %
State and local income tax, net of federal income tax effect(1)
919 0.4 %
Other1,810 0.8 %
Change in valuation allowance (Bermuda)(5,914)(2.7)%
Other adjustments(25)— %
Total$28,863 13.1 %
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(1)Primarily attributable to Connecticut state taxes.
The reconciliation of income taxes at the U.S. federal statutory rate to our provision for income taxes for the years ended February 28, 2025 and February 29, 2024, presented in accordance with the guidance in effect prior to the adoption of ASU 2023-09, was as follows:
 Year Ended February 28/29,
 20252024
AmountAs %AmountAs %
Notional U.S. federal income tax expense at the statutory rate:$29,916 21.0 %$21,919 21.0 %
U.S. state and local income tax, net1,086 0.8 %1,098 1.0 %
Non-U.S. operations:
Bermuda(11,233)(7.9)%(6,659)(6.4)%
Ireland2,531 1.8 %5,709 5.5 %
Singapore(10)— %(2)— %
Other low tax jurisdictions54 — %64 0.1 %
Non-deductible expenses in the U.S.37 — %29 — %
Other(433)(0.3)%1,107 1.1 %
Provision for income taxes$21,948 15.4 %$23,265 22.3 %
Cash paid for income taxes, net of refunds, during the year ended February 28, 2026, as presented in accordance with ASU 2023-09, was as follows:
 Year Ended February 28, 2026
 
Bermuda$1,500 
United States(47)
Ireland(218)
Other122 
Total cash paid for income taxes, net of refunds$1,357 
The significant components of the Company’s deferred tax assets and liabilities as of February 28, 2026 and 2025, consisted of the following:
 Year Ended February 28,
 20262025
Deferred tax assets:
Net operating loss carry forwards$305,879 $282,103 
Interest expense carry forwards2,594 2,648 
Other22,714 21,369 
Valuation allowance(39,744)(45,641)
Total deferred tax assets291,443 260,479 
Deferred tax liabilities:
Accelerated depreciation(424,356)(370,989)
Other(7,590)(8,124)
Total deferred tax liabilities(431,946)(379,113)
Net deferred tax liabilities$(140,503)$(118,634)
The Company had $415.2 million of U.S. federal net operating loss (“NOL”) carry forwards available at February 28, 2026 with no expiration date to offset future taxable income subject to U.S. graduated tax rates. The Company also had NOL carry forwards of $1.3 billion with no expiration date to offset future Irish taxable income. The Bermuda CIT Act includes a provision that allows the Company to carry forward losses incurred in Bermuda for the year ended February 28, 2021 and subsequent fiscal years. The Company has NOL carryforwards of $262.9 million with no expiration date to offset future Bermuda taxable income. A full valuation allowance of $262.9 million has been recognized against the Bermuda NOL 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.
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, 2026, we have elected to permanently reinvest our accumulated undistributed U.S. earnings of $44.9 million. Accordingly, no U.S. withholding taxes have been provided. Withholding tax of $2.2 million would be due if such earnings were remitted.
The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. We did not have any unrecognized tax benefits.
We conduct business globally and, as a result, the Company and its subsidiaries or branches are subject to foreign, U.S. federal and various state and local income taxes, as well as withholding taxes. In the normal course of business, the
Company is subject to examination by taxing authorities throughout the world, including major jurisdictions such as Bermuda, Ireland and the United States.
Our policy is that we will recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We did not accrue interest or penalties associated with any unrecognized tax benefits, nor was any interest expense or penalty recognized during the year.
Ireland and Bermuda Tax Law Changes
On 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 did not have a significant impact on our consolidated financial statements for the year ended February 28, 2026.
On December 18, 2023, Bermuda enacted the Bermuda CIT Act, which imposes a 15% corporate income tax regime 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.
On July 4, 2025, the One Big Beautiful Bill Act (the “OBBBA”) was enacted into law in the United States. The OBBBA introduces an increased tax deduction for interest expense and a 100% bonus depreciation on U.S. leased assets. The OBBBA did not have a significant impact on our consolidated financial statements for the year ended February 28, 2026.