XML 113 R13.htm IDEA: XBRL DOCUMENT
v3.25.1

INVESTMENTS | 3 Months Ended
--- | ---
Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract] |
INVESTMENTS | 5. INVESTMENTS The following table presents the ownership interests and carrying values of our investments:
|  |  |  |  | Carrying Value
| Investment |  | Ownership Percentage |  | March 31, 2025 (unaudited) |  | December 31, 2024
Advanced Engine Repair JV | Equity method |  | 25% |  | $ | 19,161 |  |  | $ | 19,048 |
2025 Partnership | Equity method |  | 20% |  | 12,239 |  |  | — |
|  |  |  |  | $ | 31,400 |  |  | $ | 19,048 |
We did not recognize any other-than-temporary impairments for the three months ended March 31, 2025 and 2024. The following table presents our proportionate share of equity in earnings (losses) (unaudited):
| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Advanced Engine Repair JV | $ | 113 |  |  | $ | (521) |  |  |  |  |
Falcon MSN 177 LLC | — |  |  | (146) |  |  |  |  |
2025 Partnership | (7,727) |  |  | — |  |  |  |  |
Total | $ | (7,614) |  |  | $ | (667) |  |  |  |  |
Equity Method Investments Advanced Engine Repair JV In December 2016, we invested $15.0 million for a 25% interest in an advanced engine repair joint venture. This joint venture is focused on developing new cost savings programs for engine repairs. In August 2019, we expanded the scope of our joint venture and invested an additional $13.5 million and maintained a 25% interest. We exercise significant influence over this investment and account for this investment as an equity method investment. Falcon MSN 177 LLC Since November 2021, we owned a 50% interest in Falcon MSN 177 LLC (“Falcon”), an entity that consists of one Dassault Falcon 2000 aircraft. Falcon leases the aircraft to charter operators on aircraft, crew maintenance, and insurance contracts. We accounted for our investment in Falcon as an equity method investment as we have significant influence through our interest. On May 3, 2024, we purchased the remaining interest from S7 Aerospace for total cash consideration of $0.8 million and it is now a consolidated subsidiary. 2025 Partnership During the first quarter of 2025, we invested $20.0 million in the 2025 Partnership, an investment focused on acquiring 737NG and A320ceo on-lease narrowbody aircraft, for which we are the General Partner and hold a 20% limited partner ownership. We exercise significant influence over this investment and account for it using the equity method. The Company's proportionate share of equity in earnings related to this investment is based on the contractual profit-sharing arrangement, the elimination of profit on sales of engine and modules to the 2025 Partnership under ASC 606, and the servicing fees charged by us in our capacity as the General Partner to the 2025 Partnership. The profit is eliminated through equity method earnings and will be recognized over time as the 2025 Partnership generates income from leasing and sales activities. Variable Interest Entities The Company evaluates its investments and other significant relationships to determine whether an investee qualifies as a variable interest entity (“VIE”). If an investee is deemed a VIE, we assess our authority to direct its activities, our obligation to absorb its expected losses, and our right to receive its residual returns to determine whether we are the primary beneficiary. If the Company determines that we are the primary beneficiary of a VIE, we consolidate the entity and recognize the non-controlling interests of other beneficiaries. To make this determination, we conduct an analysis that primarily considers the entity’s purpose, design, and associated risks, as well as its capital structure, the terms of agreements between the VIE and its variable interest holders and other involved parties, and any affiliations with related parties. Unconsolidated VIE Certain of the Company’s equity method investments are considered variable interest entities (“VIE”), as defined under the accounting guidance for consolidation. The Company is not considered the primary beneficiary of and therefore does not consolidate the VIEs. The Company’s involvement with the VIEs is in the form of equity interests, which are recorded within investments. The primary purpose of our U.S.-based and foreign-based unconsolidated VIE investments is to create strategic partnerships with third-party institutional investors to acquire 737NG and A320ceo on-lease narrowbody aircraft. The Company’s maximum exposure to loss with respect to the VIEs is its investments. The following table sets forth the Company’s investments in its unconsolidated VIEs and the maximum exposure to loss:
| March 31, 2025 (unaudited) |  | December 31, 2024
| Investment |  | Maximum Exposure to Loss |  | Investment |  | Maximum Exposure to Loss
Variable Interest Entity | $ | 12,239 |  |  | $ | 12,239 |  |  | $ | — |  |  | $ | — |
Consolidated VIE The Company also had a consolidated VIE investment associated with the 2025 Partnership, for which we are determined to be the primary beneficiary. However, the carrying amounts of the assets and liabilities of the consolidated VIE were $0.0 million and $0.0 million as of March 31, 2025 and December 31, 2024, respectively.

X
- References No definition available. + Details
Name: | us-gaap_EquityMethodInvestmentsAndJointVenturesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
Name: | us-gaap_EquityMethodInvestmentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration