How much do depreciation assumptions change Aar Corp's earnings?
Gross property and equipment, depreciation and capital spending, with an alternative useful-life calculator. Cash spending is kept separate.
Depreciation against the asset base
Gross property and equipment of $409.1M against $72.1M of depreciation and amortization implies an average life of about 5.7 years (gross assets ÷ annual charge). The charge includes amortization where the company reports them together.
| Fiscal year | Gross PP&E | Net PP&E | Depreciation & amortization | Implied life (yrs) | Capital expenditure (cash) |
|---|---|---|---|---|---|
| 2021 | $380.2M | $120.0M | $36.3M | 10.5 | $11.3M |
| 2022 | $367.9M | $109.6M | $33.1M | 11.1 | $17.3M |
| 2023 | $394.9M | $126.1M | $27.2M | 14.5 | $29.5M |
| 2024 | $451.7M | $171.7M | $40.2M | 11.2 | $29.7M |
| 2025 | $437.2M | $158.5M | $55.2M | 7.9 | $34.7M |
| 2026 | $409.1M | $166.9M | $72.1M | 5.7 | $36.6M |
10-K filed 2026-07-22 · DepreciationDepletionAndAmortization
Compare an alternative useful life
A 7-year average life gives an annual charge of $58.4M instead of $72.1M. After tax at 21%, net income would be higher by $10.8M. Cash spending ($36.6M) is unchanged.
Straight-line on gross assets, no salvage value; land and construction in progress are not separated. Treat as an order-of-magnitude comparison.