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  "documentTitle": "FTAI Aviation, Ltd. (FTAI)",
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  "notes": "Includes a quote from a former employee and a table excerpted from FTAI's 10-K.",
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      "text": "This could help FTAI transfer leasing equipment to Inventory at arbitrarily low costs. Recall, a lower carrying value for Inventory results in lower COGS and consequently a higher gross margin for Aerospace Products.",
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      "text": "The residual values of FTAI's engines seem considerably more subjective than for its peers. Slight differences in residual values and useful lives can meaningfully impact carrying values of Leasing Equipment and thus the transfer-in values to Inventory.",
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      "text": "A former senior FTAI employee noted: \"They can assign different values to different modules.... They may be assigning a really low book value to modules to show, like, a 35% EBITDA margin on that module...\"",
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      "text": "They can assign different values to different modules.... They may be assigning a really low book value to modules to show, like, a 35% EBITDA margin on that module, and a really high book value to the part, [spare parts for consumption not resale] because, you know, they don't need to make money on parts. They don't get the valuation for the company out of it, right? — A former senior FTAI employee",
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      "kind": "source-note",
      "text": "1 FTAI's 10-K 2023, Pg. 48. Also see the Appendix for the comparable disclosure for WLFC US, which provides a quantifiable precise engine residual value. 2 Source C.",
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      "text": "Asset | Range of Estimated Useful Lives | Residual Value Estimates",
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      "text": "Residual Value Subjectivity Offers FTAI More Opportunities to Accelerate Depreciation of Assets While Held in Leasing",
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