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These excerpts taken from the AYR 10-K filed Mar 2, 2009. Income
Tax Provision
We have obtained an assurance from the Minister of Finance of
Bermuda under the Exempted Undertakings Tax Protection Act 1966
that, in the event that any legislation is enacted in Bermuda
imposing any tax computed on profits or income, or computed on
any capital asset, gain or appreciation or any tax in the nature
of estate duty or inheritance tax, such tax shall not, until
March 28, 2016, be applicable to us or to any of our
operations or to our shares, debentures or other obligations
except insofar as such tax applies to persons ordinarily
resident in Bermuda or to any taxes payable by us in respect of
real property owned or leased by us in Bermuda. Consequently,
the provision for income taxes recorded relates to income earned
by certain subsidiaries of the Company which are located in, or
earn income in, jurisdictions that impose income taxes,
primarily Ireland and the United States.
All of our aircraft-owning subsidiaries that are recognized as
corporations for U.S. tax purposes are
non-U.S. corporations.
These
non-U.S. subsidiaries
generally earn income from sources outside the United States and
typically are not subject to U.S. federal, state or local
income taxes unless they operate within the U.S., in which case
they may be subject to federal, state and local income taxes. We
also have a U.S-based subsidiary which provides management
services to our
non-U.S. subsidiaries
and is subject to U.S. federal, state and local income
taxes.
Income Tax Provision We have obtained an assurance from the Minister of Finance of Bermuda under the Exempted Undertakings Tax Protection Act 1966 that, in the event that any legislation is enacted in Bermuda imposing any tax computed on profits or income, or computed on any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, such tax shall not, until March 28, 2016, be applicable to us or to any of our operations or to our shares, debentures or other obligations except insofar as such tax applies to persons ordinarily resident in Bermuda or to any taxes payable by us in respect of real property owned or leased by us in Bermuda. Consequently, the provision for income taxes recorded relates to income earned by certain subsidiaries of the Company which are located in, or earn income in, jurisdictions that impose income taxes, primarily Ireland and the United States. All of our aircraft-owning subsidiaries that are recognized as corporations for U.S. tax purposes are non-U.S. corporations. These non-U.S. subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes unless they operate within the U.S., in which case they may be subject to federal, state and local income taxes. We also have a U.S-based subsidiary which provides management services to our non-U.S. subsidiaries and is subject to U.S. federal, state and local income taxes. Income
Tax Provision
Our provision for income taxes for the years ended
December 31, 2006 and 2007 was $4.8 million and
$7.7 million, respectively. Income taxes have been provided
based on the applicable tax laws and rates of those countries in
which operations are conducted and income is earned, primarily
Ireland and the United States. The increase in our income tax
provision of approximately $2.9 million for the year ended
December 31, 2007 as compared to the same period in 2006
was primarily attributable to the increase in our operating
revenue subject to tax in Ireland and the United States.
All of our aircraft-owning subsidiaries that are recognized as
corporations for U.S. tax purposes are
non-U.S. corporations.
These
non-U.S. subsidiaries
generally earn income from sources outside the United States and
typically are not subject to U.S. federal, state or local
income taxes, unless they operate within the U.S., in which case
they may be subject to federal, state and local income taxes. We
also have a U.S-based subsidiary which provides management
services to our
non-U.S. subsidiaries
and is subject to U.S. federal, state and local income
taxes.
The Company received an assurance from the Bermuda Minister of
Finance that it would be exempted from local income, withholding
and capital gains taxes until March 2016. Consequently, the
provision for income taxes recorded relates to income earned by
certain subsidiaries of the Company which are located in, or
earn income in, jurisdictions that impose income taxes,
primarily the United States and Ireland.
Discontinued
Operations:
Earnings from discontinued operations for the year ended
December 31, 2006 and 2007 were as follows:
Table of Contents
During 2005, we purchased an aircraft that as of
December 31, 2005 was classified on the balance sheet as
flight equipment held for sale and all operating activities were
classified as discontinued operations. The aircraft was sold on
March 29, 2006 for a $2.2 million gain and the related
debt in the amount of $36.7 million was repaid on
March 30, 2006.
Another aircraft was classified as held-for-sale at
December 31, 2006 and all operating activities were
classified as discontinued operations. The aircraft was sold on
May 22, 2007 for an $11.6 million gain. The operating
activities of this aircraft have been reflected in discontinued
operations for all periods presented and the aircraft is
presented as flight equipment held for sale at both
December 31, 2005 and 2006.
Table of Contents
Income Tax Provision Our provision for income taxes for the years ended December 31, 2006 and 2007 was $4.8 million and $7.7 million, respectively. Income taxes have been provided based on the applicable tax laws and rates of those countries in which operations are conducted and income is earned, primarily Ireland and the United States. The increase in our income tax provision of approximately $2.9 million for the year ended December 31, 2007 as compared to the same period in 2006 was primarily attributable to the increase in our operating revenue subject to tax in Ireland and the United States. All of our aircraft-owning subsidiaries that are recognized as corporations for U.S. tax purposes are non-U.S. corporations. These non-U.S. subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes, unless they operate within the U.S., in which case they may be subject to federal, state and local income taxes. We also have a U.S-based subsidiary which provides management services to our non-U.S. subsidiaries and is subject to U.S. federal, state and local income taxes. The Company received an assurance from the Bermuda Minister of Finance that it would be exempted from local income, withholding and capital gains taxes until March 2016. Consequently, the provision for income taxes recorded relates to income earned by certain subsidiaries of the Company which are located in, or earn income in, jurisdictions that impose income taxes, primarily the United States and Ireland. Discontinued Operations: Earnings from discontinued operations for the year ended December 31, 2006 and 2007 were as follows:
Table of ContentsDuring 2005, we purchased an aircraft that as of December 31, 2005 was classified on the balance sheet as flight equipment held for sale and all operating activities were classified as discontinued operations. The aircraft was sold on March 29, 2006 for a $2.2 million gain and the related debt in the amount of $36.7 million was repaid on March 30, 2006. Another aircraft was classified as held-for-sale at December 31, 2006 and all operating activities were classified as discontinued operations. The aircraft was sold on May 22, 2007 for an $11.6 million gain. The operating activities of this aircraft have been reflected in discontinued operations for all periods presented and the aircraft is presented as flight equipment held for sale at both December 31, 2005 and 2006.
Table of ContentsThis excerpt taken from the AYR 10-Q filed Nov 17, 2008. Income
Tax Provision
Our provision for income taxes for the nine months ended
September 30, 2007 and 2008 was $4.9 million and
$4.7 million, respectively. Income taxes have been provided
based on the applicable tax laws and rates of those countries in
which operations are conducted and income is earned, primarily
Ireland and the United States. The decrease in our income tax
provision of approximately $0.2 million for the nine months
ended September 30, 2008 as compared to the same period in
2007 was primarily attributable to the decrease in our operating
revenue subject to tax in Ireland and the United States.
All of our aircraft-owning subsidiaries that are recognized as
corporations for U.S. tax purposes are
non-U.S. corporations.
These
non-U.S. subsidiaries
generally earn income from sources outside the United States and
typically are not subject to U.S. federal, state or local
income taxes, unless they operate within the U.S., in which case
they may be subject to federal, state and local income taxes. We
also have a U.S-based subsidiary which provides management
services to our
non-U.S. subsidiaries
and is subject to U.S. federal, state and local income
taxes.
The Company received an assurance from the Bermuda Minister of
Finance that it would be exempted from local income, withholding
and capital gains taxes until March 2016. Consequently, the
provision for income taxes recorded relates to income earned by
certain subsidiaries of the Company which are located in, or
earn income in, jurisdictions that impose income taxes,
primarily the United States and Ireland.
Table of Contents
This excerpt taken from the AYR 10-Q filed Aug 8, 2008. Income
Tax Provision
Our provision for income taxes for the six months ended
June 30, 2007 and 2008 was $3.1 million and
$3.3 million, respectively. Income taxes have been provided
based on the applicable tax laws and rates of those countries in
which operations are conducted and income is earned, primarily
Ireland and the United States. The increase in our income tax
provision of approximately $0.2 million for the six months
ended June 30, 2008 as compared to the same period in 2007
was primarily attributable to the increase in our operating
revenue subject to tax in Ireland and the United States.
All of our aircraft-owning subsidiaries that are recognized as
corporations for U.S. tax purposes are
non-U.S. corporations.
These
non-U.S. subsidiaries
generally earn income from sources outside the United States and
typically are not subject to U.S. federal, state or local
income taxes, unless they operate within the U.S. in which
case they may be subject to federal, state and local income
taxes. We also have a U.S-based subsidiary which provides
management services to our
non-U.S. subsidiaries
and is subject to U.S. federal, state and local income
taxes.
The Company received an assurance from the Bermuda Minister of
Finance that it would be exempted from local income, withholding
and capital gains taxes until March 2016. Consequently, the
provision for income taxes recorded relates to income earned by
certain subsidiaries of the Company which are located in, or
earn income in, jurisdictions that impose income taxes,
primarily the United States and Ireland.
Table of Contents
This excerpt taken from the AYR 8-K filed Sep 26, 2007. Income Tax Provision Our provision for income taxes for the years ended December 31, 2005 and 2006 was $940,000 and $4.8 million, respectively. Income taxes have been provided based upon the tax laws and rates in the countries in which operations are conducted and income is earned. Consequently, the provision for income taxes recorded relates to income earned by certain of our subsidiaries which are located in jurisdictions that impose income taxes. Discontinued Operations During 2005, we purchased an aircraft and immediately held it for sale. As of December 31, 2005, the aircraft was classified on the balance sheet as flight equipment held for sale and all operating activities were classified as discontinued operations. No depreciation expense was recorded on this aircraft. In March 2007, one of our aircraft was classified as held-for-sale and the sale was completed in May 2007. The operating activities of this aircraft have been reflected in discontinued operations for all periods presented and the aircraft is presented as flight equipment held for sale at both December 31, 2005 and 2006. For the year ended December 31, 2006, earnings from discontinued operations, net of taxes, totaled $5.3 million. These aircraft earned lease rental revenue in the amount of $8.6 million and incurred interest expense of $1.5 million in 2006. Income tax associated with the aircraft in 2006 was $563,000. One aircraft was sold on March 29, 2006 for a $2.2 million gain and the related debt in the amount of $36.7 million was repaid on March 30, 2006.
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