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Maintenance Payment Liability
12 Months Ended
Dec. 31, 2012
Maintenance Payment Liability

Note 10 – Maintenance Payment Liability

 

Cash collected from lessees under the terms of the lease agreements for future maintenance of aircraft are recorded as maintenance payment liabilities, as are non-refundable payments received from lessees for aircraft return settlements. Maintenance payment liabilities are attributable to specific aircraft leases. Upon occurrence of a qualified maintenance event, the lessee requests reimbursement and upon disbursement of the funds, the liability is relieved. The balance, which is included in Other liabilities, was $98 and $137 as of December 31, 2012 and 2011.

 

To the extent that no maintenance payment obligation or expected maintenance work relating to an aircraft remains, the balance is recognized as Other income. For aircraft under lease that we intend to sell after lease expiration, excess non-refundable payments received from lessees for aircraft return conditions are taken to Other income over the remaining period of the lease. For the years ended December 31, 2012, 2011 and 2010 we recorded income of $46, $11 and $17, respectively.