Industry Overview - The Zacks Transportation - Equipment and Leasing industry is facing a challenging macroeconomic environment characterized by persistent inflation, tariff-related tensions, and supply-chain disruptions, along with geopolitical issues [1] - The industry has underperformed compared to the Zacks S&P 500 Composite and the broader Zacks Transportation sector, gaining only 1.8% over the past three months, while the S&P 500 increased by 10.1% and the broader sector rose by 3.3% [2] Company Highlights - Companies like The Greenbrier Companies, Ryder Corporation, and Air Lease Corporation are noted for their solid investor-friendly initiatives, including consistent dividend payouts and share buybacks, indicating strong financial health [3][7] - Dividend growth stocks are typically mature companies that provide downside protection against market volatility, supported by strong fundamentals such as sustainable business models, profitability, rising cash flows, good liquidity, and strong balance sheets [4] Stock Selection Criteria - A dividend payout ratio of less than 60% is considered sustainable, indicating a healthy balance between earnings and dividends [8] - A dividend yield greater than 1% is preferred, with selected stocks showing dividend growth over the past five years and carrying a Zacks Rank of 3 (Hold) or better [9] Company Specifics Greenbrier Companies (GBX) - Headquartered in Lake Oswego, OR, Greenbrier has a market capitalization of $1.50 billion and pays a quarterly dividend of $0.32, yielding 2.72% [10] - The company's payout ratio is 18%, with a five-year dividend growth rate of 3.47% [10] - In 2022, Greenbrier paid $35.8 million in dividends and repurchased no shares; in 2023, it paid $36.1 million in dividends and repurchased $56.9 million; in 2024, dividends were $38.4 million with $1.3 million in share repurchases [12] Ryder Corporation (R) - Based in Coral Gables, FL, Ryder has a market capitalization of $7.64 billion and pays a quarterly dividend of $0.91, yielding 1.94% [13] - The payout ratio is 26%, with a five-year dividend growth rate of 9.47% [13] - Ryder returned $123 million in dividends and $557 million in share repurchases in 2022; in 2023, it paid $128 million in dividends and repurchased $337 million; in 2024, it returned $456 million to shareholders [14] Air Lease Corporation (AL) - Headquartered in Los Angeles, CA, Air Lease has a market capitalization of $6.76 billion and pays a quarterly dividend of $0.22, yielding 1.45% [15][16] - The payout ratio is 17%, with a five-year dividend growth rate of 8.34% [16]

Group 1 - Air Lease Corporation (AL) delivered two additional Airbus A321-200neo aircraft to China Airlines, marking the seventh and eighth A321neos leased to the carrier [1][8] - The delivery strengthens the long-term partnership between Air Lease and China Airlines, reflecting AL's commitment to supporting airline fleet expansion with modern, fuel-efficient aircraft [1][8] - China Airlines is expanding its fleet to meet increasing travel demand while enhancing route efficiency, with the A321neo improving fuel efficiency, passenger comfort, and operational flexibility [2][4] Group 2 - The transaction highlights a broader industry shift as airlines increasingly turn to leasing companies for access to next-generation aircraft without large upfront costs [3][8] - Air Lease plays a vital role in the evolving market, enabling airlines like China Airlines to scale efficiently and remain competitive in the dynamic aviation environment [3][8] - China Airlines, as Taiwan's largest carrier, operates a fleet of 115 aircraft and is committed to sustainability, safety, and innovation [4]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies, including daily updates, research reports, and stock screens [1][2] - The Zacks Style Scores provide a rating system for stocks based on value, growth, and momentum, helping investors identify securities with high potential for market outperformance [2][3] Zacks Style Scores Overview - The Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios like P/E and Price/Sales [3] - Growth Score assesses stocks based on future earnings and sales potential [4] - Momentum Score evaluates stocks based on recent price trends and earnings estimate changes [5] - VGM Score combines all three styles to provide a comprehensive rating for stocks [6] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7][8] - There are over 800 stocks rated 1 or 2, making it essential for investors to utilize Style Scores to narrow down their choices [8] Stock Example: Air Lease Corporation - Air Lease Corporation, established in 2010, is a prominent aircraft leasing company that purchases and leases commercial aircraft globally [11] - Currently rated 3 (Hold) with a VGM Score of B, Air Lease has a Momentum Style Score of B and has seen a 2.1% increase in shares over the past four weeks [11][12] - The earnings estimate for fiscal 2025 has been revised upwards, with the Zacks Consensus Estimate increasing by $0.29 to $6.03 per share, and the company has an average earnings surprise of +11.8% [12]

Core Insights - Air Lease Corporation (AL) shares increased by 4.8% following the release of its second-quarter 2025 earnings on August 4, 2025, driven by better-than-expected earnings and revenue performance [1] Financial Performance - Quarterly earnings per share reached $1.40, surpassing the Zacks Consensus Estimate of $1.33, marking a 13.8% year-over-year improvement [2][9] - Total revenues amounted to $731.7 million, exceeding the Zacks Consensus Estimate of $705.4 million, and grew by 9.7% year over year [2][9] - Revenues from the rental of flight equipment increased by 11% year over year to $679 million, attributed to fleet growth and higher end-of-lease revenue [3][4] - Revenues from aircraft sales, trading, and other sources rose by 8% year over year to $53 million, driven by management fee revenue and other income [4] Operational Metrics - Operating expenses increased by 9.2% year over year to $589.1 million [4] - As of June 30, 2025, Air Lease owned 495 aircraft with a net book value of $29.1 billion, with a total fleet size of 789 aircraft, including 241 on order [5][9] - Cash and cash equivalents at the end of the second quarter were $454.80 million, slightly down from $456.62 million in the previous quarter [6] Management Commentary - The CEO of Air Lease, John L. Plueger, highlighted a strong quarter supported by new aircraft deliveries, healthy sales gains, increasing portfolio yield, and significant insurance recoveries from Russia, indicating robust demand for aircraft leasing and sales [3]

Core Insights - Air Lease (AL) reported quarterly earnings of $1.4 per share, exceeding the Zacks Consensus Estimate of $1.33 per share, and up from $1.23 per share a year ago, representing an earnings surprise of +5.26% [1] - The company achieved revenues of $731.7 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.73%, and up from $667.29 million year-over-year [2] - Air Lease shares have increased approximately 12.7% year-to-date, outperforming the S&P 500's gain of 6.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.43 on revenues of $732.8 million, and for the current fiscal year, it is $5.74 on revenues of $2.93 billion [7] - The estimate revisions trend for Air Lease was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Transportation - Equipment and Leasing industry, to which Air Lease belongs, is currently ranked in the top 30% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

Group 1 - Air Lease Corporation (NYSE: AL) has shown strong performance over the past year due to solid demand, well-structured contract maturities, and an insurance settlement [1] - The company has benefited from the positive developments in the aircraft leasing market, particularly with Boeing [1]

Financial Data and Key Metrics Changes - In Q2 2025, the company generated revenues of $732 million, a 9.7% increase compared to the prior period, driven by a 13.5% increase in rental revenue [20][8] - Diluted earnings per share were reported at $3.33, benefiting from new aircraft deliveries and significant insurance proceeds [8] - The net benefit from Russia insurance settlements was $344 million in Q2, with an additional $60 million expected in Q3, leading to a total recovery of 104% of the initial write-off [9][27] Business Line Data and Key Metrics Changes - The company purchased 12 new aircraft, adding approximately $890 million in flight equipment, and sold four aircraft for $126 million in proceeds [9][22] - The weighted average fleet age increased slightly to 4.8 years, while fleet utilization remained at 100% [9] - The sales pipeline is currently valued at $1.4 billion, with a projected total of $1.5 billion in aircraft sales for 2025 [10][23] Market Data and Key Metrics Changes - Commercial aircraft demand remains robust, with strong lease rates and high extension activity noted [12][19] - The company anticipates around $600 million in aircraft deliveries for Q3 2025, with a total expected delivery range of $3 billion to $3.5 billion for the year [10][11] - Global passenger traffic is expanding at approximately 5% year-to-date, according to IATA data [16] Company Strategy and Development Direction - The company is focused on maintaining a strong balance sheet while considering opportunities to return capital to shareholders [14][29] - The cancellation of the A350 freighter order frees up over $1 billion in future capital commitments, allowing for more disciplined aircraft purchases [13][29] - The company aims to continue maximizing available capital through aircraft sales while maintaining a disciplined approach to new aircraft orders [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding airline profitability due to declining fuel prices and a weaker U.S. dollar benefiting international carriers [15][18] - There is a positive outlook for the airline industry despite geopolitical uncertainties, with management noting strong conversations with customers [14][17] - The company expects portfolio yields to trend higher due to strong lease rates and the roll-off of lower-yielding leases [19][20] Other Important Information - The company will now report maintenance revenue as a separate line item for clarity, with maintenance revenue up $16 million in the quarter [20][21] - Interest expense rose by approximately $19 million year-over-year, driven by an increase in the composite cost of funds [24][25] - The company maintains a strong liquidity position with $7.9 billion in cash and $31 billion in unencumbered assets [29] Q&A Session Summary Question: Update on lease expirations and yield improvement - Management confirmed that the guidance for a 150 to 200 basis point improvement in yield remains valid, tracking as expected [35][36] Question: Capital allocation strategy - Management indicated that buybacks are attractive, but maintaining a strong balance sheet is a priority [39] Question: Demand from airline customers and tariff impacts - Management noted no significant change in passenger aircraft demand, but some caution in the cargo markets due to tariffs [80] Question: Production stability from OEMs - Management reported reasonable production stability from Boeing and Airbus, with no significant changes in delivery projections [72][73] Question: Expectations for end of lease revenue - Management expects similar levels of end of lease revenue in 2026 as in 2025, depending on market conditions [55] Question: Aircraft sales expectations for 2026 - Management targets $1.5 billion in aircraft sales for 2025 and anticipates maintaining that level in subsequent years [51][52]

Financial Data and Key Metrics Changes - Air Lease generated revenues of $732 million, a 9.7% increase over the prior period, driven by a 13.5% increase in rental revenue [21][7] - Diluted earnings per share were $3.33, benefiting from new aircraft deliveries and significant insurance proceeds [7][21] - The company recognized a net benefit from insurance settlements of $344 million during the second quarter, boosting book value per share to $65.53 [27][21] Business Line Data and Key Metrics Changes - The fleet's net book value and book value per common share reached all-time record levels [7] - The weighted average fleet age rose slightly to 4.8 years, while the weighted average lease term remained unchanged at 7.2 years [9] - Fleet utilization remained at 100% [9] Market Data and Key Metrics Changes - The aircraft sales pipeline increased to $1.4 billion, reflecting strong demand in the secondary market [10][24] - The company expects around $1.5 billion in total aircraft sales for 2025, with $300 million projected for the third quarter [11][10] - Lease rates remain strong, with extensions yielding higher rates than previous contracts [12][58] Company Strategy and Development Direction - The company canceled its order for seven A350 freighter aircraft, freeing up over $1 billion in future capital commitments [13] - Air Lease is focused on maintaining a strong balance sheet while considering opportunities to return capital to shareholders [14][29] - The order book is fully placed through 2026, with a disciplined approach to aircraft investment [12][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the airline industry's recovery, noting a 27% rise in adjusted operating profit for Lufthansa Group and a 44% increase for Air France KLM [15][16] - The company anticipates continued strong demand for commercial aircraft, with global passenger traffic expanding at around 5% year-to-date [16] - Management highlighted the positive impact of declining fuel prices and U.S. dollar weakness on airline profitability [15][14] Other Important Information - The company expects to recognize an additional $60 million net benefit from insurance settlements in the third quarter [8] - Interest expense rose by approximately $19 million year-over-year, driven by a 29 basis point increase in the composite cost of funds [25] - The company maintains a strong liquidity position with $7.9 billion in cash and $31 billion in unencumbered assets [29] Q&A Session Summary Question: Update on lease expirations and maturities - Management confirmed that guidance for a 150 to 200 basis point improvement in yield remains valid, tracking as expected [34] Question: Capital allocation strategy - Management indicated that buybacks are attractive, but maintaining a strong balance sheet is a priority [39] Question: Demand from airline customers - Management noted that there is no change in positive momentum for passenger aircraft demand, with some caution in the cargo markets due to tariffs [82][81] Question: Production stability from OEMs - Management confirmed that Boeing has met delivery projections, while Airbus has not experienced further slippage since earlier notifications [73] Question: Expectations for end of lease revenue - Management expects similar levels of end of lease revenue in 2026 as in 2025, depending on lease extensions [56] Question: Aircraft sales expectations - Management targets $1.5 billion in aircraft sales for 2025 and anticipates maintaining this level in subsequent years [51][50]

Core Insights - Air Lease reported a significant increase in GAAP net income for Q2 2025, primarily due to a special insurance recovery related to aircraft losses in Russia [1][5] - The company's GAAP revenue reached $731.7 million, exceeding analyst expectations by $18.2 million, while adjusted earnings per share were $1.40, surpassing the $0.81 non-GAAP estimate [1][2] Financial Performance - Diluted earnings per share were $3.33, reflecting one-time gains, with a year-over-year increase of 311.1% [2] - Revenue increased by 9.7% from Q2 2024, rising from $667.3 million to $731.7 million [2] - Net income attributable to common stockholders surged to $374.1 million, a 313.8% increase compared to $90.4 million in Q2 2024 [2] Business Operations - Air Lease specializes in leasing modern, fuel-efficient aircraft, maintaining a fleet of 495 aircraft with an average age of 4.8 years and an average remaining lease term of 7.2 years as of June 30, 2025 [3] - The company recognized a $344 million net benefit from insurance settlements for its Russian fleet, which had been written off during the Russia-Ukraine conflict [5] - The owned fleet grew from 489 aircraft at the end of 2024 to 495 aircraft by mid-2025, with $892 million invested in 12 new deliveries [6] Market Dynamics - Strong global demand for leased aircraft continues, with 100% of planes scheduled for delivery through the end of 2026 already leased, and 87% of 2027's order book placed [6][9] - Rental revenue from airplane leases rose 11% year-over-year to $679 million, supported by fleet growth and higher lease rates for larger "widebody" planes [6] Cost Management - Operating costs increased by 9.2%, primarily due to rising depreciation charges and higher interest costs, with interest expenses reaching $222.3 million [8] - Despite increased expenses, adjusted pre-tax margins improved slightly to 21.5%, reflecting core profitability before the unusual insurance settlement [8] Future Outlook - Management anticipates sustained momentum in fleet leasing, driven by strong global travel demand and ongoing aircraft supply shortages [9] - An additional one-time insurance benefit of approximately $60 million is expected in Q3 2025 [9] - No explicit guidance was provided for full-year revenue or earnings, but management expressed no change in profitability expectations for the year [10]

PART I—FINANCIAL INFORMATION [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) Q2 2025 financial statements show net income surging to **$374.1 million** from insurance recoveries, with total assets growing to **$33.3 billion** Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$33,295,410** | **$32,277,896** | | Flight equipment, net | $29,131,786 | $28,170,466 | | Total Liabilities | $25,071,179 | $24,745,270 | | Debt financing, net | $20,320,406 | $20,209,985 | | **Total Shareholders' Equity** | **$8,224,231** | **$7,532,626** | Consolidated Income Statement Highlights (in thousands) | Account | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total revenues and other income | $731,696 | $667,288 | $1,469,978 | $1,330,598 | | Recoveries of Russian fleet write-off | $(344,002) | $— | $(675,940) | $— | | Income before taxes | $486,581 | $127,741 | $958,249 | $263,069 | | **Net income attributable to common stockholders** | **$374,086** | **$90,438** | **$738,837** | **$187,879** | Earnings Per Share (Diluted) | Period | Diluted EPS | | :--- | :--- | | Q2 2025 | $3.33 | | Q2 2024 | $0.81 | | H1 2025 | $6.59 | | H1 2024 | $1.68 | - Net cash provided by operating activities increased to **$862.0 million** for the first six months of 2025, up from **$785.1 million** in the same period of 2024, driven by higher customer collections from a larger fleet[20](index=20&type=chunk)[172](index=172&type=chunk) [Notes to Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail accounting policies, **$20.5 billion** debt, significant Russian fleet insurance recoveries, and **$14.1 billion** in future aircraft commitments - As of June 30, 2025, the company owned **495** aircraft, managed **53**, and had **241** new aircraft on order from Boeing and Airbus[25](index=25&type=chunk) Debt Financing Summary (June 30, 2025, in thousands) | Debt Type | Amount | | :--- | :--- | | Total Unsecured Debt | $19,947,830 | | Total Secured Debt | $530,202 | | **Total Debt Financing** | **$20,478,032** | - During the first half of 2025, the company recognized **$675.9 million** in recoveries from insurance settlements related to aircraft detained in Russia. As of August 4, 2025, total recoveries reached **$822.4 million** against the initial **$791.0 million** write-off[53](index=53&type=chunk)[57](index=57&type=chunk)[220](index=220&type=chunk) - The company has contractual commitments to acquire **241** new aircraft through 2031, with an estimated aggregate commitment of **$14.1 billion**. These deliveries are subject to ongoing delays from manufacturers[64](index=64&type=chunk)[74](index=74&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong Q2 2025 performance, highlighting **$731.7 million** revenue and **$374.1 million** net income, driven by insurance recoveries and fleet growth, while maintaining **$7.9 billion** liquidity [Our Fleet and Orderbook](index=30&type=section&id=Our%20Fleet%20and%20Orderbook) The owned fleet comprises **495** aircraft with a **$29.1 billion** net book value, and **241** new aircraft are on order for **$14.1 billion**, facing manufacturer delays Fleet Portfolio Metrics | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Net book value | $29.1 billion | $28.2 billion | | Weighted-average fleet age | 4.8 years | 4.6 years | | Weighted-average remaining lease term | 7.2 years | 7.2 years | | Owned fleet | 495 | 489 | | Managed fleet | 53 | 60 | | Aircraft on order | 241 | 269 | - The company has contractual commitments for **241** new aircraft with an estimated cost of **$14.1 billion**. However, management provides an 'expected' delivery schedule that reflects anticipated delays from manufacturers, pushing some deliveries into later years[128](index=128&type=chunk)[131](index=131&type=chunk)[133](index=133&type=chunk) - Significant manufacturing delays from Airbus and Boeing are expected to continue for at least the next three to four years, impacting the company's delivery schedule. The FAA's cap on Boeing's 737 MAX production and Airbus's production delays on A320/321neo aircraft are key factors[135](index=135&type=chunk)[137](index=137&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Q2 2025 liquidity reached **$7.9 billion**, with total debt at **$20.5 billion** (**97.4%** unsecured, **76.7%** fixed-rate), prioritizing new aircraft investments - Total available liquidity was **$7.9 billion**, consisting of **$454.8 million** in cash and approximately **$7.5 billion** in undrawn revolving credit facilities (net of commercial paper)[116](index=116&type=chunk)[157](index=157&type=chunk) Debt Profile as of June 30, 2025 | Metric | Value | | :--- | :--- | | Total Debt Outstanding | $20.5 billion | | Percentage Unsecured | 97.4% | | Percentage Fixed-Rate | 76.7% | | Composite Cost of Funds | 4.28% | - The company established a commercial paper program in January 2025 with a capacity of up to **$2.0 billion**. As of June 30, 2025, **$936.0 million** was outstanding[47](index=47&type=chunk)[166](index=166&type=chunk) [Results of Operations](index=47&type=section&id=Results%20of%20Operations) Q2 2025 total revenues rose **9.7%** to **$731.7 million**, with net income surging to **$374.1 million** primarily due to Russian fleet insurance recoveries - The increase in Q2 2025 net income was primarily due to a **$344.0 million** net benefit from the settlement of insurance claims related to aircraft detained in Russia[208](index=208&type=chunk)[213](index=213&type=chunk) - Lease rental revenue for Q2 2025 was **$647.7 million**, up from **$594.8 million** in Q2 2024, reflecting the continued growth of the aircraft fleet[203](index=203&type=chunk) - Interest expense rose to **$222.3 million** in Q2 2025 from **$203.3 million** in Q2 2024, due to a higher composite cost of funds (**4.28%** vs. 3.99%) and a larger outstanding debt balance[206](index=206&type=chunk) Reconciliation to Adjusted Net Income Before Income Taxes (Q2, in thousands) | Description | 2025 | 2024 | | :--- | :--- | :--- | | Net income attributable to common stockholders | $374,086 | $90,438 | | Adjustments (Recoveries, non-cash items, taxes) | $(216,697) | $46,924 | | **Adjusted net income before income taxes** | **$157,389** | **$137,362** | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include interest rate risk on **$4.8 billion** floating-rate debt, where a **1.0%** increase would cost **$47.7 million** annually, and minimal foreign exchange risk - The company is exposed to interest rate risk through its **$4.8 billion** in floating-rate debt. A **1.0%** increase in the composite interest rate on this debt would increase annual interest expense by approximately **$47.7 million**[231](index=231&type=chunk) - Foreign exchange risk is limited as most transactions are in U.S. dollars. Approximately **0.3%** of lease revenues and **0.7%** of total assets (related to sales-type leases) were denominated in foreign currencies as of June 30, 2025[233](index=233&type=chunk) [Item 4. Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were **effective** as of June 30, 2025, with **no material changes** in internal control over financial reporting - Based on an evaluation as of June 30, 2025, the company's Certifying Officers concluded that disclosure controls and procedures were **effective**[237](index=237&type=chunk) - **No changes** in internal control over financial reporting occurred during the quarter ended June 30, 2025, that materially affected, or are reasonably likely to materially affect, internal controls[238](index=238&type=chunk) PART II—OTHER INFORMATION [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company pursued legal actions for Russian aircraft losses, achieving **$675.9 million** in settlements from California Litigation, with London Litigation ongoing - The company filed suit against its insurers in California (California Litigation) and against Russian airlines' insurers in England (London Litigation) to recover losses from aircraft detained in Russia[240](index=240&type=chunk)[241](index=241&type=chunk) - In H1 2025, settlements with most insurers in the California Litigation resulted in a recognized net benefit of **$675.9 million**. The company anticipates the dismissal of this litigation in Q3 2025[242](index=242&type=chunk)[244](index=244&type=chunk) [Item 1A. Risk Factors](index=60&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors, except for expanded discussion on potential negative effects of income and other taxes from multi-jurisdictional operations and tax law changes - A **new risk factor** was added concerning the potential negative impact of income and other taxes from multi-jurisdictional operations, including changes in tax laws and international tax developments like the OECD's BEPS project[248](index=248&type=chunk) [Item 5. Other Information](index=60&type=section&id=Item%205.%20Other%20Information) A one-time **$1 million** cash bonus was awarded to the General Counsel for contributions to the Russian insurance litigation - A one-time cash bonus of **$1 million** was awarded to the company's General Counsel for her efforts related to the Russian insurance litigation[252](index=252&type=chunk)