XML 31 R18.htm IDEA: XBRL DOCUMENT v3.24.2
Financing Receivables and Operating Lease Equipment
 6 Months Ended
Jun. 30, 2024
Financing Receivables and Operating Lease Equipment [Abstract]  
Financing Receivables and Operating Lease Equipment Financing Receivables and Operating Lease Equipment
Financing receivables and operating lease equipment, net consisted of the following:
June 30
2024		December 31
2023
Financing receivables:
Investment in sales-type leases$461 $556 
Notes89 102 
Total financing receivables
550 658 
Less allowance for losses on receivables16 51 
Financing receivables, net534 607 
Operating lease equipment, at cost, less accumulated depreciation of $70 and $70
311 352 
Total$845 $959 
Financing arrangements typically range in terms from 1 to 12 years and may include options to extend or terminate. Certain leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price. At June 30, 2024 and December 31, 2023, $14 and $44 were determined to be uncollectible financing receivables and placed on non-accrual status. The allowance for losses on financing receivables decreased primarily due to cash collections during the six months ended June 30, 2024.
The components of investment in sales-type leases consisted of the following:
June 30
2024		December 31
2023
Gross lease payments receivable$585 $697 
Unearned income(130)(162)
Net lease payments receivable455 535 
Unguaranteed residual assets6 21 
Total$461 $556 
Financing interest income received for the six months ended June 30, 2024 and 2023, was $4 and $62. Financing interest income received for the three months ended June 30, 2024 and 2023, was $2 and $58.
Our financing receivable balances at June 30, 2024 by internal credit rating category and year of origination consisted of the following:
Rating categoriesCurrent2023202220212020PriorTotal
BBB$10 $70 $30 $190 $97 $50 $447 
B89 89 
CCC14 14 
Total carrying value of financing receivables$10 $70 $30 $204 $97 $139 $550 
At June 30, 2024, our allowance for losses related to receivables with ratings of CCC, B and BBB. We applied default rates that averaged 100.0%, 0.0% and 0.4%, respectively, to the exposure associated with those receivables.
Financing Receivables Exposure
The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models:
June 30
2024		December 31
2023
717 Aircraft (Accounted for as sales type leases)
$447 $478 
747-8 Aircraft (Accounted for as sales-type leases)
104 129 
737 Aircraft ($112 and $148 accounted for as operating leases)
112 156 
777 Aircraft (Accounted for as operating leases)
188 194 
747-400 Aircraft (Accounted for as sales-type leases)
43 
Operating lease equipment primarily includes large commercial jet aircraft.
Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the six months ended June 30, 2024 and 2023, included $21 and $29 of interest income from sales-type leases and $32 and $27 from operating lease payments. Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the three months ended June 30, 2024 and 2023, included $11 and $14 of interest income from sales-type leases and $14 and $16 from operating lease payments.
Variable lease payments for sales-type leases recognized in interest income for the six and three months ended June 30, 2024 and 2023, were insignificant. Variable lease payments on operating leases for the six and three months ended June 30, 2024 and 2023, were insignificant.
Profit at the commencement of sales-type leases was recorded in Sales of services for the six months ended June 30, 2024 and 2023, in the amount of $4 and $20. Profit at commencement of sales-type leases was recorded in Sales of services for the three months ended June 30, 2024 and 2023, was $4 and $8.