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Fair Value Measurements
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Fair Value Disclosures [Abstract]    
Fair Value Measurements
Note 17 – Fair Value Measurements
The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.
 
    
June 30, 2024
     December 31, 2023  
    
Total
    
Level 1
     
Level 2
     Total     Level 1      Level 2  
Assets
               
Money market funds
   
$
2,101
 
  
$
2,101
 
      $ 1,514     $ 1,514     
Available-for-sale
debt investments:
               
Commercial paper
   
 
251
 
     
$
251
 
     291        $ 291  
Corporate notes
   
 
247
 
     
 
247
 
     183          183  
U.S. and local government agencies
   
 
17
 
     
 
17
 
     25          25  
Other equity investments
   
 
57
 
  
 
57
 
        44       44     
Derivatives
   
 
78
 
     
 
78
 
     122          122  
  
 
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
  
Total assets
   
$
2,751
 
  
$
2,158
 
   
$
593
 
   $ 2,179     $ 1,558      $ 621  
  
 
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
  
Liabilities
               
Derivatives
   
($
67
) 
     
($
67
) 
   ($ 58 )       ($ 58 ) 
Other
   
 
(17
) 
     
 
(17
) 
       
  
 
 
       
 
 
    
 
 
       
 
 
  
Total liabilities
   
($
84
) 
     
($
84
) 
   ($ 58 )       ($ 58 ) 
  
 
 
       
 
 
    
 
 
       
 
 
  
Money market funds,
available-for-sale
debt investments and equity securities are valued using a market approach based on the quoted market prices or broker/dealer quotes of identical or comparable instruments.
Derivatives include foreign currency and commodity contracts. Our foreign currency forward contracts are valued using an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the present value of the commodity index prices less the contract rate multiplied by the notional amount.
Certain assets have been measured at fair value on a nonrecurring basis. The following table presents the nonrecurring losses recognized for the six months ended June 30 due to long-lived asset impairment and the fair value of the related assets as of the impairment date:
 
    
2024
      2023  
    
Fair
Value
     
Total

Losses
      Fair
Value		    Total
Losses		  
Investments
      
($
17
) 
       ($ 11 ) 
Operating lease equipment
   
$
15
 
   
 
(5
) 
      
Property, plant and equipment
      
 
(9
) 
      
Other assets
      
 
(3
) 
         (1 ) 
  
 
 
     
 
 
     
 
   
 
 
  
Total
   
$
15
 
   
($
34
) 
       ($ 12 ) 
  
 
 
     
 
 
     
 
   
 
 
  
Level 3 Investments and Other assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets. Level 2 Property, plant and equipment were valued based on a third-party valuation using a combination of income and market approaches and adjusted for
as-is
condition. These approaches considered estimates of net operating income, capitalization rates, and/or comparable property sales. Level 3 operating lease equipment is valued by calculating a median collateral value from a consistent group of third-party aircraft value publications. The values provided by the third-party aircraft publications are derived from their knowledge of market trades and other market factors. Management reviews the publications quarterly to assess the continued appropriateness and consistency with market trends. Under certain circumstances, we adjust values based on the attributes and condition of the specific aircraft or equipment, usually when the features or use of the aircraft vary significantly from the more generic aircraft attributes covered by third-party publications, or on the expected net sales price for the aircraft.
 
For Level 3 assets that were measured at fair value on a nonrecurring basis during the period ended June 30, 2024, the following table presents the fair value of those assets as of the measurement date, valuation techniques and related unobservable inputs of those assets.
 
    
Fair
Value
   
Valuation
Technique
   
Unobservable Input
   
Range
Median or Average
Operating lease equipment
    $15    Market approach    Aircraft value publications Aircraft condition adjustments   
$21 – $27(1)
Median $23
($8) – $0(2) Net ($8)
 
(1)
The range represents the sum of the highest and lowest values for all aircraft subject to fair value measurement, according to the third-party aircraft valuation publications that we use in our valuation process.
(2)
The negative amount represents the sum, for all aircraft subject to fair value measurement, of all downward adjustments based on consideration of individual aircraft attributes and condition. The positive amount represents the sum of all such upward adjustments.
Fair Value Disclosures
The fair values and related carrying values of financial instruments that are not required to be remeasured at fair value on the Condensed Consolidated Statements of Financial Position were as follows:
 
    
June 30, 2024
  
    
Carrying

Amount
    
Total Fair

Value
    
Level 1
     
Level 2
    
Level 3
  
Assets
            
Notes receivable, net
   
$
760
 
  
$
778
 
            
$
766
 
  
$
12
 
Liabilities
            
Debt, excluding finance lease obligations
   
 
(57,669
) 
  
 
(53,642
) 
     
 
(53,642
) 
  
  
 
 
    
 
 
       
 
 
    
 
 
  
 
     December 31, 2023  
     Carrying
Amount		     Total Fair
Value		     Level 1      Level 2     Level 3  
Assets
            
Notes receivable, net
    $ 257     $ 270               $ 270           
Liabilities
            
Debt, excluding finance lease obligations
      (52,055 )      (51,039 )         (51,039 )   
  
 
 
    
 
 
       
 
 
    
 
 
  
The fair value of notes receivables classified as Level 2 is estimated with discounted cash flow analysis using interest rates currently offered on loans with similar terms to borrowers of similar credit quality. The fair value of notes receivables classified as Level 3 is based on our best estimate using available counterparty financial data. The fair value of our debt that is traded in the secondary market is classified as Level 2 and is based on current market yields. For our debt that is not traded in the secondary market, the fair value is classified as Level 2 and is based on our indicative borrowing cost derived from dealer quotes or discounted cash flows. With regard to other financial instruments with
off-balance
sheet risk, it is not practicable to estimate the fair value of our indemnifications and financing commitments because the amount and timing of those arrangements are uncertain. Items not included in the above disclosures include cash, restricted cash, time deposits and other deposits, commercial paper, money market funds, Accounts receivable, Unbilled receivables, Other current assets, Accounts payable and long-term payables. The carrying values of those items,
as
reflected in
the Condensed Consolidated Statements of Financial Position, approximate their fair value at June 30, 2024 and December 31, 2023. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash (Level 1).
Note 20 – Fair Value Measurements
The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant unobservable inputs. The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy.
 
    
December 31, 2023
     December 31, 2022  
    
Total
    
Level 1
     
Level 2
     Total     Level 1      Level 2  
Assets
               
Money market funds
   
$
1,514
    
$
1,514
        $ 1,797   $ 1,797   
Available-for-sale
debt investments:
               
Commercial paper
   
 
291
       
$
291
       256      $ 256
Corporate notes
   
 
183
       
 
183
       195        195
U.S. government agencies
   
 
25
       
 
25
       47        47
Other equity investments
   
 
44
    
 
44
          10     10   
Derivatives
   
 
122
       
 
122
       112        112
  
 
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
  
Total assets
   
$
2,179
    
$
1,558
     
$
621
     $ 2,417   $ 1,807    $ 610
  
 
 
    
 
 
     
 
 
    
 
 
    
 
 
     
 
 
  
Liabilities
               
Derivatives
   
($
58
) 
     
($
58
) 
   ($ 141 )       ($ 141 ) 
  
 
 
       
 
 
    
 
 
       
 
 
  
Total liabilities
   
($
58
) 
     
($
58
) 
   ($ 141 )       ($ 141 ) 
  
 
 
       
 
 
    
 
 
       
 
 
  
Money market funds,
available-for-sale
debt investments and equity securities are valued using a market approach based on the quoted market prices or broker/dealer quotes of identical or comparable instruments.
Derivatives include foreign currency and commodity contracts. Our foreign currency forward contracts are valued using an income approach based on the present value of the forward rate less the contract rate multiplied by the notional amount. Commodity derivatives are valued using an income approach based on the present value of the commodity index prices less the contract rate multiplied by the notional amount.
Certain assets have been measured at fair value on a nonrecurring basis, using significant unobservable inputs (Level 3). The following table presents the nonrecurring losses recognized for the
years ended December 31 due to long-lived asset impairment, and the fair value and asset classification of the related assets as of the impairment date:
 
    
2023
      2022  
    
Fair Value
     
Total Losses
      Fair Value      Total Losses  
Investments
      
($
18
) 
       ($ 31 ) 
Operating lease equipment
          $ 47      (7 ) 
Property, plant and equipment
   
$
14
     
 
(26
) 
         (19 ) 
Other Assets
   
 
 
 
   
 
(2
) 
      15      (55 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Total
   
$
14
     
($
46
) 
    $ 62    ($ 112 ) 
  
 
 
     
 
 
     
 
 
     
 
 
  
Investments, Property, plant and equipment, and Other assets were primarily valued using an income approach based on the discounted cash flows associated with the underlying assets. The fair value of the impaired operating lease equipment is derived by calculating a median collateral value from a consistent group of third party aircraft value publications. The values provided by the third party aircraft publications are derived from their knowledge of market trades and other market factors. Management reviews the publications quarterly to assess the continued appropriateness and consistency with market trends. Under certain circumstances, we adjust values based on the attributes and condition of the specific aircraft or equipment, usually when the features or use of the aircraft vary significantly from the more generic aircraft attributes covered by third party publications, or on the expected net sales price for the aircraft.
Fair Value Disclosures
The fair values and related carrying values of financial instruments that are not required to be remeasured at fair value on the Consolidated Statements of Financial Position at December 31 were as follows:
 
    
December 31, 2023
  
    
Carrying
Amount
    
Total Fair
Value
    
Level 1
     
Level 2
    
Level 3
  
Assets
            
Notes receivable, net
   
$
257
    
$
270
       
$
270
    
Liabilities
            
Debt, excluding finance lease obligations
   
 
(52,055
) 
  
 
(51,039
) 
     
 
(51,039
) 
  
  
 
 
    
 
 
       
 
 
    
     December 31, 2022  
     Carrying
Amount		     Total Fair
Value		     Level 1      Level 2     Level 3  
Assets
            
Notes receivable, net
    $ 385   $ 403      $ 403  
Liabilities
            
Debt, excluding finance lease obligations
      (56,794 )      (52,856 )         (52,856 )   
  
 
 
    
 
 
       
 
 
    
The fair values of notes receivable are estimated with discounted cash flow analysis using interest rates currently offered on loans with similar terms to borrowers of similar credit quality. The fair value of our debt that is traded in the secondary market is classified as Level 2 and is based on current market yields. For our debt that is not traded in the secondary market, the fair value is classified as Level 2 and is based on our indicative borrowing cost derived from dealer quotes or discounted cash flows. With regard to other financial instruments with
off-balance
sheet risk, it is not practicable to estimate the fair value of our indemnifications and financing commitments because the amount and
timing of those arrangements are uncertain. Items not included in the above disclosures include cash, restricted cash, time deposits and other deposits, commercial paper, money market funds, Accounts receivable, Unbilled receivables, Other current assets, Accounts payable and long-term payables. The carrying values of those items, as reflected in the Consolidated Statements of Financial Position, approximate their fair value at December 31, 2023 and 2022. The fair value of assets and liabilities whose carrying value approximates fair value is determined using Level 2 inputs, with the exception of cash (Level 1).