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Leases
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases Leases
As lessor, and as of December 31, 2024, the majority of our leases were operating leases with the exception of certain failed sale-leaseback transactions classified as notes receivable or investments in sales-type leases under the guidance provided by ASC 842.

As lessee, the significant majority of leases the Company enters are for real estate (office and warehouse space for our operations) as well as automobiles. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Leases with terms of 12 months or less are not recorded on the Consolidated Balance Sheets; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Some of the Company’s leases include variable non-lease components (e.g., taxes) which are not separated from associated lease components (e.g., fixed rent, common-area maintenance costs, vehicle protection plans and other service fees) as elected under the practical expedient package provided by ASC 842.

The Company’s leases have remaining lease terms of approximately two months to 13 years, some of which include options to renew or extend the lease term from one to five years. Our automobile leases include an option to purchase the vehicle at lease termination. The depreciable lives of assets are limited by the expected lease terms, unless there is a transfer of title or purchase option reasonably certain of exercise. The exercise of lease renewal options or purchase at lease termination is at the Company’s sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our ROU assets and lease liabilities.

Supplemental information to the Consolidated Balance Sheets related to leases was as follows:

LeasesClassificationDecember 31, 2024December 31, 2023
(in thousands, except lease term and discount rate)
Assets
Operating lease right-of-use assetsOther assets$6,584 $8,652 
Liabilities
Lease liabilitiesAccounts payable and accrued expenses$5,848 $7,941 
Weighted average remaining lease term (years)
Operating leases2.702.90
Weighted average discount rate
Operating leases5.2 %4.6 %

The weighted average discount rate is based on the incremental borrowing rate for each lease and the remaining balance of the lease payments for each lease at the reporting date.
Future maturities of the Company’s lease liabilities at December 31, 2024 are as follows:

Year(in thousands)
2025$3,147 
20261,114 
2027801 
2028577 
2029504 
Thereafter210 
Total undiscounted lease liabilities6,353 
Less: interest(505)
Total lease liabilities$5,848 

The components of lease expense were as follows:

Years Ended December 31,
Lease expenseClassification20242023
(in thousands)
Operating lease costGeneral and administrative$4,235 $3,709 
Net lease cost$4,235 $3,709 

Supplemental cash flow information related to leases was as follows:

Years Ended December 31,
20242023
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$3,538 $3,327 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$1,016 $307 
Leases Leases
As lessor, and as of December 31, 2024, the majority of our leases were operating leases with the exception of certain failed sale-leaseback transactions classified as notes receivable or investments in sales-type leases under the guidance provided by ASC 842.

As lessee, the significant majority of leases the Company enters are for real estate (office and warehouse space for our operations) as well as automobiles. These lease agreements do not contain any material residual value guarantees or material restrictive covenants.

Leases with terms of 12 months or less are not recorded on the Consolidated Balance Sheets; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Some of the Company’s leases include variable non-lease components (e.g., taxes) which are not separated from associated lease components (e.g., fixed rent, common-area maintenance costs, vehicle protection plans and other service fees) as elected under the practical expedient package provided by ASC 842.

The Company’s leases have remaining lease terms of approximately two months to 13 years, some of which include options to renew or extend the lease term from one to five years. Our automobile leases include an option to purchase the vehicle at lease termination. The depreciable lives of assets are limited by the expected lease terms, unless there is a transfer of title or purchase option reasonably certain of exercise. The exercise of lease renewal options or purchase at lease termination is at the Company’s sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our ROU assets and lease liabilities.

Supplemental information to the Consolidated Balance Sheets related to leases was as follows:

LeasesClassificationDecember 31, 2024December 31, 2023
(in thousands, except lease term and discount rate)
Assets
Operating lease right-of-use assetsOther assets$6,584 $8,652 
Liabilities
Lease liabilitiesAccounts payable and accrued expenses$5,848 $7,941 
Weighted average remaining lease term (years)
Operating leases2.702.90
Weighted average discount rate
Operating leases5.2 %4.6 %

The weighted average discount rate is based on the incremental borrowing rate for each lease and the remaining balance of the lease payments for each lease at the reporting date.
Future maturities of the Company’s lease liabilities at December 31, 2024 are as follows:

Year(in thousands)
2025$3,147 
20261,114 
2027801 
2028577 
2029504 
Thereafter210 
Total undiscounted lease liabilities6,353 
Less: interest(505)
Total lease liabilities$5,848 

The components of lease expense were as follows:

Years Ended December 31,
Lease expenseClassification20242023
(in thousands)
Operating lease costGeneral and administrative$4,235 $3,709 
Net lease cost$4,235 $3,709 

Supplemental cash flow information related to leases was as follows:

Years Ended December 31,
20242023
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$3,538 $3,327 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$1,016 $307 
Equipment Held for Operating Lease
As of December 31, 2024, the Company had $2,635.9 million of equipment held in our operating lease portfolio, $183.6 million of notes receivable, $31.1 million of maintenance rights, and $21.6 million of investments in sales-type leases, which represented 354 engines, 16 aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2023, the Company had $2,112.8 million of equipment held in our operating lease portfolio, $92.6 million of notes receivable, $9.2 million of maintenance rights, and $8.8 million of investments in sales-type leases, which represented 337 engines, 12 aircraft, one marine vessel and other leased parts and equipment.

The following table disaggregates equipment held for operating lease by asset class (in thousands):

As of December 31,
20242023
Gross valueAccumulated depreciationNet book valueGross valueAccumulated depreciationNet book value
(in thousands)
Engines and related equipment$3,060,020 $(595,340)$2,464,680 $2,535,148 $(569,596)$1,965,552 
Aircraft and airframes174,642 (13,634)161,008 157,616 (21,409)136,207 
Marine vessel14,366 (4,144)10,222 14,366 (3,288)11,078 
$3,249,028 $(613,118)$2,635,910 $2,707,130 $(594,293)$2,112,837 

Notes Receivable and Investments in Sales-Type Leases

During the years ended December 31, 2024 and 2023, the Company recorded interest revenue related to the notes receivable and investments in sales-type leases of $11.7 million and $8.7 million, respectively. The effective interest rates on our notes receivable and investments in sales-type leases ranged from 6.0% to 12.2% as of December 31, 2024 and 7.1% to 12.2% as of December 31, 2023.

Under some of the Company’s notes receivable and investments in sales-type leases, the lessee has the option to purchase the underlying asset at fixed amounts throughout the lease term.

A majority of the equipment is leased and operated internationally. Substantially all leases relating to this equipment are denominated and payable in U.S. dollars.

The Company leases equipment to lessees domiciled in eight geographic regions or countries. The tables below set forth geographic information about the leased equipment grouped by domicile of the lessee (which is not necessarily indicative of the asset’s actual location):

Years Ended December 31,
Lease rent revenue20242023
Region or Country(in thousands)
United States$72,959 $71,436 
Europe53,465 43,790 
Asia-Pacific (excluding India)40,661 32,700 
India31,512 36,992 
South America20,291 17,375 
Canada18,659 8,293 
Central America689 1,921 
Middle East— 631 
Totals$238,236 $213,138 
As of December 31,
Net book value of equipment held for operating lease20242023
Region or Country(in thousands)
United States$658,128 $464,088 
Asia-Pacific (excluding India)344,946 235,948 
India314,714 294,361 
Europe299,322 443,901 
South America176,380 136,917 
Canada133,286 109,056 
Central America17,047 43,192 
Middle East6,239 42,965 
Off-lease685,848 342,409 
Totals$2,635,910 $2,112,837 

As of December 31, 2024, the lease status of the equipment held for operating lease (in thousands) was as follows:

Lease TermNet Book Value
Off-lease and other$685,848 
Month-to-month leases266,521 
Leases expiring 2025702,083 
Leases expiring 2026326,353 
Leases expiring 2027373,017 
Leases expiring 2028126,522 
Leases expiring 202928,990 
Leases expiring thereafter126,576 
$2,635,910 
As of December 31, 2024, minimum future payments under non-cancelable operating leases were as follows:

Year(in thousands)
2025$174,309 
202680,143 
202746,988 
202819,096 
202912,059 
Thereafter17,209 
$349,804 

As of December 31, 2024, minimum future payments under non-cancelable notes receivable and investments in sales-type leases were as follows:

Year(in thousands)
2025$51,878 
202624,569 
202723,543 
202822,518 
202948,114 
Thereafter103,781 
Total undiscounted lease receivables274,403 
Less: interest(69,168)
Total notes receivable and investments in sales-type leases$205,235