INVESTMENTS

3 Months Ended

Mar. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

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.