Financing Receivables and Operating Lease Equipment

9 Months Ended

Sep. 30, 2025

Financing Receivables and Operating Lease Equipment [Abstract]

Financing Receivables and Operating Lease Equipment

Financing receivables and operating lease equipment, net consisted of the following:


	September 30 2025	December 31 2024
Financing receivables:
Investment in sales-type leases		$203
Notes		85
Total financing receivables		288
Less allowance for losses on receivables		7
Financing receivables, net		281
Operating lease equipment, at cost, less accumulated depreciation of $57 and $46	$245	240

Total	$245	$521

During the nine months ended September 30, 2025, our financing receivables were fully collected. Our financing arrangements at September 30, 2025, consist solely of operating leases that range in terms from one to four years and may include options to terminate. Certain operating leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price.

At December 31, 2024, the components of investment in sales-type leases consisted of gross lease payments receivable of $229 and unearned income of $26. There were no unguaranteed residual assets at September 30, 2025, and December 31, 2024.

The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models:


	September 30 2025	December 31 2024
777 Aircraft (Accounted for as operating leases)	$173	$183
747-8 Aircraft (Primarily accounted for as notes)		92
737 Aircraft (Primarily accounted for as operating leases)	46	47
717 Aircraft (Accounted for as sales-type leases)		196

Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the nine months ended September 30, 2025 and 2024, included $6 and $39 of interest income from sales-type leases and $35 and $45 from operating lease payments. Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the three months ended September 30, 2025 and 2024, included $0 and $18 of interest income from sales-type leases and $12 and $13 from operating lease payments.

All financing interest income and variable lease payments on our financing arrangements for the nine and three months ended September 30, 2025 and 2024, were insignificant.

Profit at the commencement of sales-type leases for the nine and three months ended September 30, 2025 and 2024, was insignificant.