Income Taxes

3 Months Ended

May 31, 2026

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income taxes are provided based upon the tax laws and rates of the jurisdictions in which our operations are conducted and income is earned.

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”) applicable to the Company with respect to its fiscal year beginning March 1, 2025. The Company has appropriately considered the impact of the Bermuda CIT and its impact on current and deferred income taxes.

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 periods.

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 three months ended May 31, 2026 and 2025, were as follows:

	Three Months Ended May 31,
	2026		2025
Bermuda	$	7,446	$	11,445
United States	13,098		10,090
Other	20,402		40,080
Income from continuing operations before income taxes and earnings of unconsolidated equity method investment	$	40,946	$	61,615

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.

We recognized income tax provisions of $7.5 million and $12.7 million for the three months ended May 31, 2026 and 2025, respectively. Our effective tax rate for the three months ended May 31, 2026 and 2025, was 18.4% and 20.6%, respectively. The decrease in our effective tax rate is primarily attributable to the mix of profits between the various jurisdictions in which we operate and the utilization of Bermuda net operating losses.