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Financing Receivables and Operating Lease Equipment
 12 Months Ended
Dec. 31, 2025
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:
20252024
Financing receivables:
Investment in sales-type leases $203 
Notes 85 
Total financing receivables 288 
Less allowances for expected credit losses 7 
Financing receivables, net 281 
Operating lease equipment, at cost, less accumulated depreciation of $60 and $46
$241 240 
Total$241 $521 
During the year ended December 31, 2025, our financing receivables were fully collected. Our financing arrangements at December 31, 2025, consist solely of operating leases that range in terms from one to four years, and may include options to extend or terminate. Certain operating leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price.
At December 31, 2024, the components of investment in sales-type leases consisted of gross lease payments receivable of $229 and unearned income of $26. There were no unguaranteed residual assets at December 31, 2025 and 2024.
The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models at December 31:
20252024
777 Aircraft (Accounted for as operating leases)
$170 $183 
737 Aircraft (Primarily accounted for as operating leases)
45 47 
747-8 Aircraft (Primarily accounted for as notes)
92 
717 Aircraft (Accounted for as sales-type leases)
196 
Impairment charges related to operating lease assets were $0, $5, and $0 for the years ended December 31, 2025, 2024 and 2023, respectively.
Lease income recorded in Sales of services on the Consolidated Statements of Operations for the years ended December 31, 2025, 2024 and 2023, included $6, $45, and $55 of interest income from sales-type leases and $47, $56, and $60 from operating lease payments, respectively.
Variable lease payments for sales-type leases and operating leases recognized in Sales of services for the years ended December 31, 2025, 2024 and 2023, were insignificant.
Profit at the commencement of sales-type leases recorded in Sales of services was $0, $9, and $32 for the years ended December 31, 2025, 2024 and 2023, respectively.
As of December 31, 2025, undiscounted cash flows for operating leases over the next five years and thereafter are as follows:
Year 1$40 
Year 234 
Year 332 
Year 413 
Year 5 
Thereafter 
Total financing receipts119 
Less imputed interest
Total$119