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Net Investment in Leases, Net
6 Months Ended
Aug. 31, 2023
Leases [Abstract]  
Net Investment in Leases, Net Net Investment in Leases, NetAt August 31, 2023 and February 28, 2023, our net investment in leases consisted of 13 and 4 aircraft, respectively. The components of our net investment in leases at August 31, 2023 and February 28, 2023, were as follows:August 31, 2023February 28, 2023Lease receivable$133,663 $31,674 Unguaranteed residual value of flight equipment122,184 37,287 Net investment leases255,847 68,961 Allowance for credit losses(7,113)(1,267)Net investment in leases, net$248,734 $67,694 During the six months ended August 31, 2023, 10 aircraft were reclassified from operating leases to sales-type leases. Collectability of the lease payments for these 10 aircraft, which was not deemed probable at the effective date of the lease modification, became probable during the six months ended August 31, 2023. Accordingly, we derecognized the carrying amounts of the underlying aircraft and lease payments recorded by us as deposit liabilities and recognized net investments in leases. A selling profit totaling $32.7 million for these 10 aircraft was recognized as a component of Gain on sale of flight equipment for the six months ended August 31, 2023. We also recognized a provision for credit losses totaling $6.2 million for these 10 aircraft during the six months ended August 31, 2023.The activity in the allowance for credit losses related to our net investment in leases for the six months ended August 31, 2023, was as follows:AmountBalance at February 28, 2023$1,267 Provision for credit losses6,125 Write-offs(279)Balance at August 31, 2023$7,113 At August 31, 2023, future lease payments to be received under our net investment in leases were as follows:Year Ending February 28/29,Amount2024 (Remainder of fiscal year)$12,290 202523,711 202622,884 202723,111 202823,111 Thereafter73,548 Total lease payments to be received178,655 Present value of lease payments - lease receivable(133,663)Difference between undiscounted lease payments and lease receivable$44,992