During 2022, our management committed to a formal plan to sell certain of our CRJ-900, CRJ-200, and CRJ-700 aircraft. Accordingly, we determined the aircraft met the criteria to be classified as assets held for sale and have separately presented them in our condensed consolidated balance sheet at the lower of their current carrying value or their fair market value less costs to sell. The fair values are based upon observable and unobservable inputs, including recent purchase offers and market trends and conditions. The assumptions used to determine the fair value of our assets held for sale are subject to inherent uncertainty and could produce a wide range of outcomes which we will continue to monitor in future periods as new information becomes available. Prior to the ultimate sale of the assets, subsequent changes in our estimate of the fair value of our assets held for sale will be recorded as a gain or loss with a corresponding adjustment to the assets’ carrying value.

As of September 30, 2023, the Company had 15 CRJ-900 aircraft classified as held for sale with a net book value of $69.7 million, $57.7 million was classified as classified as current assets on our condensed consolidated balance sheet and $12.0 million of which was classified as noncurrent assets on our condensed consolidated balance sheet. During the three months ended December 31, 2023, the Company closed the sale of four CRJ-900 aircraft to American for gross proceeds of $41.5 million. Net proceeds from the sale of all four aircraft was $5.7 million after the retirement of the EDC Loan and MHIRJ junior note. Additionally, during the three months ended December 31, 2023, the Company closed the sale of four CRJ-900 aircraft to a third party for gross proceeds of $12.0 million. Net proceeds from the sale of all four aircraft was $6.5 million after partial debt reduction on the UST Loan. The sale of these assets reduced the total held for sale balance by $53.9 million, $41.9 million of which reduced the balance of current held for sale assets and $12.0 million of which reduced the balance of noncurrent held for sale assets.

During the three months ended December 31, 2023, eight CRJ-900 aircraft, 11 CRJ-900 airframes (without engines), and 48 GE model CF34-8C engines were designated as held for sale. The Company wrote down the value of the assets with signed purchase agreements to the agreed upon sales price, which approximates fair value, and wrote down the value

of held for sale assets with no signed agreement to a third party appraisal value. The Company reclassified $111.7 million to held for sale related to these assets, $71.4 million of which is classified as current assets on our condensed consolidated balance sheet and $40.3 million of which is classified as noncurrent assets on our condensed consolidated balance sheet. The Company recorded an impairment loss of $45.5 million on the assets designated as held for sale during the three months ended December 31, 2023, which was slightly offset by a $5.1 million impairment gain due to fair value adjustments on assets previously designated as held for sale. The total impairment loss related to held for sale assets during the three months ended December 31, 2023 was $40.4 million.

As of December 31, 2023, the Company has 15 CRJ-900 aircraft, 11 CRJ-900 airframes (without engines), and 48 engines that are classified as assets held for sale with a net book value of $132.6 million, $92.3 million of which is classified as current assets on our condensed consolidated balance sheet and $40.3 million of which is classified as noncurrent assets on our condensed consolidated balance sheet. The following table summarizes the Company's held for sale activity during the three months ended December 31, 2023 (in millions):


	Total			Current Assets			Noncurrent Assets

Held for sale balance as of September 30, 2023	$	69.7		$	57.7		$	12.0
Assets sold		(53.9	)		(41.9	)		(12.0	)
Assets reclassified to held for sale		111.7			71.4			40.3
Impairment gain due to fair value adjustments		5.1			5.1			—
Held for sale balance as of December 31, 2023	$	132.6		$	92.3		$	40.3