Property, Plant, and Equipment

3 Months Ended

May 31, 2022

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure

Note 3. Flight Equipment Held for Lease, Net

The following table summarizes the activities for the Company’s flight equipment held for lease for the three months ended May 31, 2022:

	Amount
Balance at February 28, 2022	$	6,313,950
Additions	41,312
Depreciation	(81,011)
Disposals and transfers to net investment in leases and held for sale	(30,606)
Impairments	(4,428)
Balance at May 31, 2022	$	6,239,217
Accumulated depreciation as of May 31, 2022	$	2,604,624

Write-off of Russian Aircraft

As of May 31, 2022, nine of our aircraft that were previously leased to Russian airlines remain in Russia. We also have one aircraft outside of Russia that is not operational and not in our possession. Most of the operators of these aircraft have continued to fly the aircraft notwithstanding the leasing terminations and our repeated demands for the return of our assets. While we maintain title to the aircraft and will continue to pursue repossession, we determined that it is unlikely we will regain possession of eight of the nine aircraft that remain in Russia. As a result, the Company wrote off the remaining book value of these eight aircraft totaling $4.4 million during three months ended May 31, 2022. These eight aircraft have been removed from the Company’s owned fleet count. The Company is vigorously pursuing insurance claims to recover its losses relating to these aircraft, however, collection, timing and amounts of any insurance recoveries is uncertain.

Our two aircraft not subject to write-off comprise less than 1% of our net book value of our fleet (flight equipment held for lease and net investment in direct financing and sales-type leases, or “Net Book Value”). It is unclear whether we will be able to recover these aircraft or what the condition of the aircraft will be at the time of repossession if we do so or whether we will be able to recover the related technical records and documentation. The Company recognized $23.9 million of maintenance revenue for these two aircraft related to payments received on maintenance letters of credit and is pursuing collection on remaining letters of credit totaling $24.1 million.