XML 44 R21.htm IDEA: XBRL DOCUMENT v3.25.0.1
Customer Financing
 12 Months Ended
Dec. 31, 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 at December 31:
20242023
Financing receivables:
Investment in sales-type leases$203 $556 
Notes85 102 
Total financing receivables288 658 
Less allowance for losses on receivables7 51 
Financing receivables, net281 607 
Operating lease equipment, at cost, less accumulated depreciation of $46 and $70
240 352 
Total$521 $959 
Our financing arrangements range in terms from 1 to 8 years, and include $196 of investment in sales-type leases, net of allowances, that will be repaid in one year or less. Financing arrangements 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 December 31, 2024 and 2023, $7 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 year ended December 31, 2024.
The components of investment in sales-type leases at December 31 were as follows:
20242023
Gross lease payments receivable$229 $697 
Unearned income(26)(162)
Net lease payments receivable203 535 
Unguaranteed residual assets 21 
Total$203 $556 
Financing interest income recorded for the years ended December 31, 2024 and 2023, was $7 and $108.
Financing receivables that were past due as of December 31, 2024 and 2023, totaled $0 and $9.
Our financing receivable balances at December 31, 2024, by internal credit rating category and year of origination, consisted of the following:
Rating categoriesCurrent2023202220212020PriorTotal
BBB$32 $28 $122 $5 $9 $196 
B85 85 
CCC7 7 
Total carrying value of financing receivables $32 $28 $129 $5 $94 $288 
At December 31, 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 0.1%, respectively, to the exposure associated with those receivables.
The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models at December 31:
20242023
717 Aircraft (Accounted for as sales-type leases)
$196 $478 
777 Aircraft (Accounted for as operating leases)
183 194 
747-8 Aircraft (Primarily accounted for as notes)
92 129 
737 Aircraft (Primarily accounted for as operating leases)
47 156 
747-400 Aircraft (Accounted for as sales-type leases)
43 
Impairment charges related to operating lease assets were $5, $0, and $7 for the years ended December 31, 2024, 2023 and 2022, respectively.
Lease income recorded in Sales of services on the Consolidated Statements of Operations for the years ended December 31, 2024, 2023 and 2022, included $45, $55, and $69 of interest income from sales-type leases and $56, $60, and $65 from operating lease payments, respectively.
Variable lease payments for sales-type leases recognized in interest income for the years ended December 31, 2024, 2023 and 2022, were insignificant.
Profit at the commencement of sales-type leases was recorded in Sales of services for the years ended December 31, 2024, 2023 and 2022 in the amount of $9, $32, and $28, respectively.
As of December 31, 2024, undiscounted cash flows for notes receivable, sales-type and operating leases over the next five years and thereafter are as follows:
Notes receivable
Sales-type leases
Operating leases
Year 1$9 $189 $47 
Year 210 13 39 
Year 311 13 34 
Year 412 14 32 
Year 513  13 
Thereafter30   
Total financing receipts85 229 165 
Less imputed interest(26)
Total$85 $203 $165 
At December 31, 2024 and 2023, unguaranteed residual values were $0 and $21.