LEASING EQUIPMENT, NET

3 Months Ended

Mar. 31, 2023

4. LEASING EQUIPMENT, NET

Leasing equipment, net is summarized as follows:




	March 31, 2023		December 31, 2022
Leasing equipment	$	2,346,078	$	2,413,230
Less: Accumulated depreciation	(496,416)		(499,677)
Leasing equipment, net	$	1,849,662	$	1,913,553

Economic sanctions and export controls against Russia and Russia’s aviation industry were imposed due to its invasion of Ukraine during the three months ended March 31, 2022. As a result of the sanctions imposed on Russian airlines, we terminated all lease agreements with Russian airlines. We determined that it is unlikely that we will regain possession of the aircraft and engines that had not yet been recovered from Ukraine and Russia. As a result, during the three months ended March 31, 2022, we recognized an impairment charge totaling $122.8 million, net of maintenance deposits, to write-off the entire carrying value of leasing equipment assets that we did not expect to recover from Ukraine and Russia. As of March 31, 2023, four aircraft and one engine were still located in Ukraine and eight aircraft and seventeen engines were still located in Russia. Additionally, we identified certain assets in our leasing equipment portfolio with indicators of impairment. As a result, we adjusted the carrying value of these assets to fair value and recognized transactional impairment charges of $1.2 million, net of redelivery compensation during the three months ended March 31, 2023.

The following table presents information related to our acquisitions and dispositions of aviation leasing equipment during the three months ended March 31, 2023:


Acquisitions:
Aircraft			5
Engines			22
Dispositions:
Aircraft			8
Engines			13

Depreciation expense for leasing equipment is summarized as follows:


	Three Months Ended March 31,
	2023		2022
Depreciation expense for leasing equipment	$	40,766	$	41,203