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LEASING EQUIPMENT, NET | 9 Months Ended
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Sep. 30, 2022
Leases [Abstract] |
LEASING EQUIPMENT, NET | 3. LEASING EQUIPMENT, NET Leasing equipment, net is summarized as follows:
|  | September 30, |  |  | December 31, |
|  | 2022 |  |  | 2021 |
Leasing equipment |  |  | 1,990,115 |  |  | $ | 2,122,428 |
Less: Accumulated depreciation |  |  | (430,540 | ) |  |  | (408,292 | )
Leasing equipment, net |  | $ | 1,559,575 |  |  | $ | 1,714,136 |
Economic sanctions and export controls against Russia and Russia’s aviation industry have been imposed due to its invasion of Ukraine during the nine months ended September 30, 2022. As a result of the sanctions imposed on Russian airlines, we terminated all lease agreements with Russian airlines. As of September 30, 2022, four aircraft and two engines were still located in Ukraine and eight aircraft and seventeen engines were still located in Russia. We determined that it is unlikely that we will regain possession of the aircraft and engines that have not yet been recovered from Ukraine and Russia. As a result, we recognized an impairment charge totaling $120.0 million, net of maintenance deposits, to write-off the entire carrying value of leasing equipment assets that we do not expect to recover from Ukraine and 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 transaction impairment charges of $8.2 million, net of redelivery compensation during the nine months ended September 30, 2022. The following table presents information related to acquisitions and dispositions of aviation leasing equipment during the nine months ended September 30, 2022:
Acquisitions: |  |  |
Aircraft |  |  | 23 |
Engines |  |  | 45 |
Dispositions: |  |  |  |
Aircraft |  |  | 5 |
Engines |  |  | 50 |
Depreciation expense for leasing equipment is summarized as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2022 |  |  | 2021 |  |  | 2022 |  |  | 2021 |
Depreciation expense for leasing equipment |  | $ | 32,728 |  |  | $ | 34,718 |  |  | $ | 106,180 |  |  | $ | 101,992 |

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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=77888252 + Details
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