Loss on Disposal of Assets

9 Months Ended

Sep. 30, 2019

Discontinued Operations and Disposal Groups [Abstract]

Loss on Disposal of Assets

Loss on Disposal of Assets

During the nine months ended September 30, 2019, the Company recorded $16.9 million in loss on disposal of assets in the statement of operations. This loss on disposal of assets consists of $11.6 million related to the disposal of excess and obsolete inventory, $3.1 million related to the write-down of certain held-for-sale assets to fair value less cost to sell and $2.3 million related to the write-off of certain unrecoverable costs previously capitalized with a project to upgrade the Company's enterprise accounting software. This project was suspended in the third quarter of 2019 and the Company has elected to re-evaluate and pursue an alternative solution. Refer to Note 12, Fair Value Measurements for information regarding the Company's held-for-sale assets. These losses were partially offset by a $0.1 million gain on the sale-leaseback transaction for one aircraft in the period. Refer to Note 10, Leases for information regarding the Company's accounting policy on sale-leaseback transactions.

During the nine months ended September 30, 2018, the Company recorded $6.6 million in loss on disposal of assets in the statement of operations. During the second quarter of 2018, the Company sold 5 used engines for $9.5 million at a loss of $4.4 million. In addition, the Company wrote off $2.2 million related to the disposal of excess and obsolete inventory.