Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2022 | Apr. 25, 2022 | Aug. 31, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 28, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-32959 | ||
Entity Registrant Name | AIRCASTLE LIMITED | ||
Entity Incorporation, State or Country Code | D0 | ||
Entity Tax Identification Number | 98-0444035 | ||
Entity Address, Address Line One | c/o Aircastle Advisor LLC | ||
Entity Address, Address Line Two | 201 Tresser Boulevard, Suite 400 | ||
Entity Address, City or Town | Stamford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06901 | ||
City Area Code | 203 | ||
Local Phone Number | 504-1020 | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 14,048 | ||
Entity Central Index Key | 0001362988 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --02-28 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Public Float | $ 0 | ||
Document Information [Line Items] | |||
Entity Voluntary Filers | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Common Stock | |||
Cover [Abstract] | |||
Title of 12(b) Security | Common Shares, par value $0.01 per share | ||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Shares, par value $0.01 per share | ||
Security Exchange Name | NONE | ||
Security Exchange Name | NONE | ||
Preferred Stock | |||
Cover [Abstract] | |||
Title of 12(b) Security | Preference Shares, par value $0.01 per share | ||
Document Information [Line Items] | |||
Title of 12(b) Security | Preference Shares, par value $0.01 per share | ||
Security Exchange Name | NONE | ||
Security Exchange Name | NONE |
Audit Information
Audit Information | 12 Months Ended |
Feb. 28, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Stamford, CT |
Auditor Firm ID | 42 |
Entity Voluntary Filers | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 |
ASSETS | |||
Cash and cash equivalents | $ 167,891 | $ 578,004 | $ 166,083 |
Restricted Cash and Cash Equivalents | 2,791 | 2,594 | 5,354 |
Accounts receivable | 63,666 | 82,572 | |
Flight equipment held for lease, net of accumulated depreciation of $2,766,429 and $2,076,972, respectively | 6,313,950 | 6,492,471 | |
Net investment in leases, net of allowance for credit losses of $1,764 and $864, respectively | 150,325 | 195,376 | |
Unconsolidated equity method investments | 38,317 | 35,377 | 33,470 |
Other assets | 356,326 | 311,944 | |
Total assets | 7,093,266 | 7,698,338 | |
LIABILITIES | |||
Borrowings from secured financings, net of debt issuance costs | 684,039 | 768,850 | |
Borrowings from unsecured financings, net of debt issuance costs | 3,835,841 | 4,366,261 | |
Accounts payable, accrued expenses and other liabilities | 177,424 | 174,267 | |
Lease rentals received in advance | 37,361 | 58,013 | |
Security deposits | 69,189 | 80,699 | |
Maintenance payments | 459,713 | 519,178 | |
Total liabilities | 5,263,567 | 5,967,268 | |
Commitments and Contingencies | |||
SHAREHOLDERS’ EQUITY | |||
Preference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate liquidation preference of $400,000) shares issued and outstanding at February 28, 2022 and no shares issued and outstanding at February 28, 2021 | 0 | 0 | |
Common shares, $0.01 par value, 250,000,000 shares authorized, 14,048 shares issued and outstanding at February 28, 2022 and 2021 | 0 | 0 | |
Additional paid-in capital | 1,878,774 | 1,485,777 | |
Retained earnings (accumulated deficit) | (49,075) | 245,293 | |
Total shareholders’ equity | 1,829,699 | 1,731,070 | $ 2,036,189 |
Total liabilities and shareholders’ equity | $ 7,093,266 | $ 7,698,338 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Feb. 28, 2022 | Jun. 08, 2021 | Feb. 28, 2021 |
Statement of Financial Position [Abstract] | |||
Accumulated depreciation on flight equipment held for lease | $ 2,766,429,000 | $ 2,076,972,000 | |
Allowance for credit loss | $ 1,764,000 | $ 864,000 | |
Common shares, par value | $ 0.01 | ||
Common shares, shares authorized | 250,000,000 | ||
Common shares, shares issued | 14,048 | ||
Preference shares, par value | $ 0.01 | $ 0.01 | |
Preference shares, shares authorized | 50,000,000 | ||
Preference shares, shares issued | 400,000 | 0 | |
Preferred Stock, Liquidation Preference, Value | $ 400,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Revenues: | ||||
Lease rental revenue | $ 131,119 | $ 595,236 | $ 611,421 | $ 777,403 |
Direct financing and sales-type lease revenue | 4,447 | 10,733 | 18,215 | 32,295 |
Amortization of lease premiums, discounts and incentives | (3,669) | (20,190) | (22,842) | (22,636) |
Lease Income, Maintenance Revenue | 41,214 | 152,030 | 172,668 | 74,987 |
Total lease revenue | 173,111 | 737,809 | 779,462 | 862,049 |
Gain on sale of flight equipment | 15,354 | 26,001 | 33,536 | 45,532 |
Revenue from contract with customer | 9,183 | 5,977 | 19,290 | 10,357 |
Total revenues | 197,648 | 769,787 | 832,288 | 917,938 |
Operating expenses: | ||||
Depreciation | 59,853 | 337,528 | 347,517 | 356,021 |
Interest, net | 41,038 | 214,352 | 235,338 | 258,070 |
Selling, general and administrative (including non-cash share-based payment expense of $0, $28,049, $10,678 and $15,830, respectively) | 22,901 | 66,338 | 88,413 | 77,034 |
Provision for credit losses | 288 | 930 | 5,258 | 0 |
Impairment of flight equipment | 62,657 | 452,250 | 425,579 | 7,404 |
Maintenance and other costs | 1,703 | 31,166 | 20,005 | 24,828 |
Total operating expenses | 188,440 | 1,102,564 | 1,122,110 | 723,357 |
Other income (expense): | ||||
Gain (Loss) on Extinguishment of Debt | (3,955) | (14,156) | (2,640) | (7,577) |
Merger Expenses | (321) | 0 | (32,605) | (7,372) |
Other | (94) | 57,682 | (191) | (4,492) |
Total other income (expense) | (4,370) | 43,526 | (35,436) | (19,441) |
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | 4,838 | (289,251) | (325,258) | 175,140 |
Income tax provision (benefit) | 1,675 | (7,998) | 10,236 | 22,667 |
Earnings of unconsolidated equity method investment, net of tax | 496 | 3,044 | 2,326 | 4,102 |
Net income (loss) | 3,659 | (278,209) | (333,168) | 156,575 |
Preference share dividends | 0 | (16,159) | 0 | 0 |
Income from continuing operations available to common shareholders — Basic | 3,659 | (294,368) | (333,168) | 156,575 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | 0 | 0 | 184 | |
Other Comprehensive Income, Other, Net of Tax | 0 | 0 | 0 | 184 |
Total comprehensive income | $ 3,659 | $ (294,368) | $ (333,168) | $ 156,759 |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||||
Non-cash share-based payment expense | $ 10,678 | $ 0 | $ 28,049 | $ 15,830 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||||
Net income | $ 3,659 | $ (278,209) | $ (333,168) | $ 156,575 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation | 59,853 | 337,528 | 347,517 | 356,021 |
Amortization of deferred financing costs | 2,446 | 16,267 | 14,791 | 14,578 |
Amortization of lease premiums, discounts and incentives | 3,669 | 20,190 | 22,842 | 22,636 |
Deferred income taxes | 1,453 | (9,386) | 6,506 | 20,223 |
Non-cash share-based payment expense | 10,678 | 0 | 28,049 | 15,830 |
Cash flow hedges reclassified into earnings | 0 | 0 | 0 | 184 |
Sales-type and Direct Financing Leases, Profit (Loss) | (5,658) | (14,297) | (16,859) | (25,842) |
Security deposits and maintenance payments included in earnings | (47,293) | (123,969) | (135,115) | (49,029) |
Gain on the sale of flight equipment | (15,354) | (26,001) | (33,536) | (45,532) |
Gain (Loss) on Extinguishment of Debt | 3,955 | 14,156 | 2,640 | 7,577 |
Impairment of flight equipment | 62,657 | 452,250 | 425,579 | 7,404 |
Provision for Loan and Lease Losses | 288 | 930 | 5,258 | 0 |
Other | (402) | (3,043) | (2,305) | 206 |
Changes on certain assets and liabilities: | ||||
Accounts receivable | (6,377) | 16,948 | (57,292) | (13,162) |
Other assets | 5,786 | (29,963) | (66,290) | 2,594 |
Accounts payable, accrued expenses and other liabilities | 10,205 | (5,716) | (13,655) | (5,483) |
Lease rentals received in advance | 143 | (23,414) | (53,658) | 19,954 |
Net Cash and Restricted Cash Provided by (Used in) Operating Activities | 101,024 | 372,865 | 175,022 | 536,418 |
Cash flows from investing activities: | ||||
Acquisition and improvement of flight equipment | (23,035) | (795,426) | (145,589) | (1,172,370) |
Proceeds from sale of flight equipment | 103,679 | 210,718 | 180,342 | 361,747 |
Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales deposits | (4,614) | (202) | (13,024) | 760 |
Unconsolidated equity method investment and associated costs | 0 | 0 | 0 | (15,175) |
Distributions from unconsolidated equity method investment in excess of earnings | 0 | 104 | 419 | 36,750 |
Other | (56) | (1,694) | (676) | 4,259 |
Net cash and restricted cash provided by (used in) investing activities | 75,974 | (586,500) | 21,472 | (784,029) |
Cash flows from financing activities: | ||||
Payments for Repurchase of Equity | (2,370) | 0 | (25,536) | (36,739) |
Proceeds from Contributions from Parent | 0 | 0 | 25,536 | 0 |
Proceeds from Issuance of Preferred Stock and Preference Stock | 0 | 392,997 | 0 | 0 |
Proceeds from secured and unsecured debt financings | 100,000 | 20,000 | 1,932,943 | 2,116,848 |
Repayments of secured and unsecured debt financings | (268,799) | (646,943) | (1,697,662) | (1,817,558) |
Deferred financing costs | 0 | (5,339) | (12,832) | (13,800) |
Payment for Debt Extinguishment or Debt Prepayment Cost | (2,685) | (13,372) | (1,524) | (7,183) |
Security deposits and maintenance payments received | 29,806 | 88,891 | 87,510 | 202,833 |
Security deposits and maintenance payments returned | (16,956) | (26,857) | (71,743) | (117,872) |
Dividends paid | 0 | (5,658) | (24,025) | (91,328) |
Net cash and restricted cash provided by (used in) financing activities | (161,004) | (196,281) | 212,667 | 235,201 |
Net (decrease) increase in cash and restricted cash | 15,994 | (409,916) | 409,161 | (12,410) |
Cash and restricted cash at beginning of year | 155,443 | 580,598 | 171,437 | 167,853 |
Cash and restricted cash at end of year | 171,437 | 170,682 | 580,598 | 155,443 |
Cash and Cash Equivalents, at Carrying Value | 166,083 | 167,891 | 578,004 | 140,882 |
Restricted Cash and Cash Equivalents | 5,354 | 2,791 | 2,594 | 14,561 |
Supplemental disclosures of cash flow information: | ||||
Cash paid during the year for interest | 21,487 | 200,922 | 241,011 | 246,026 |
Cash paid (received) during the year for income taxes | (15) | 240 | 1,469 | (656) |
Supplemental disclosures of non-cash investing activities: | ||||
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets settled in sale of flight equipment | 7,873 | 12,391 | 70,716 | 90,397 |
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets assumed in asset acquisitions | 16,693 | 21,764 | 29,869 | 31,958 |
Transfers from Flight equipment held for lease to Net investment in direct financing and sales-type leases and Other assets | $ 31,821 | $ 57,489 | $ 90,352 | $ 104,838 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Retained Earnings (Accumulated Deficit)Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Preferred Stock |
Stockholders' Equity Attributable to Parent | $ 2,008,681 | $ 690 | $ 754 | $ 1,468,779 | $ 539,332 | $ 690 | $ (184) | $ 0 |
Common Stock, Shares, Outstanding | 75,454,511 | |||||||
Preferred Stock, Shares Outstanding | 0 | |||||||
Proceeds from Contributions from Parent | 0 | |||||||
Issuance of common shares to stockholders, directors and employees | 0 | $ 13 | (13) | |||||
Stock issued during period, shares, new issues | 1,281,598 | |||||||
Repurchase of common shares from stockholders', directors and employees (in shares) | (1,613,980) | |||||||
Net income | 156,575 | 156,575 | ||||||
Repurchase of common shares from stockholders, directors and employees | (36,739) | $ (16) | (36,723) | |||||
Amortization of share-based payments | 13,825 | 13,825 | ||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 796 | 796 | ||||||
Dividends declared | (91,328) | (91,328) | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | 184 | (184) | ||||||
Stockholders' Equity Attributable to Parent | 2,052,684 | $ (6,442) | $ 751 | 1,446,664 | 605,269 | $ (6,442) | 0 | $ 0 |
Common Stock, Shares, Outstanding | 75,122,129 | |||||||
Preferred Stock, Shares Outstanding | 0 | |||||||
Proceeds from Contributions from Parent | 0 | |||||||
Issuance of common shares to stockholders, directors and employees | 0 | $ 1 | (1) | |||||
Stock issued during period, shares, new issues | 28,568 | |||||||
Repurchase of common shares from stockholders', directors and employees (in shares) | (73,903) | |||||||
Net income | 3,659 | 3,659 | ||||||
Repurchase of common shares from stockholders, directors and employees | (2,370) | $ (1) | (2,369) | |||||
Amortization of share-based payments | 10,678 | 10,678 | ||||||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 2,005 | 2,005 | ||||||
Dividends declared | (24,025) | (24,025) | ||||||
Stockholders' Equity Attributable to Parent | 2,036,189 | $ 751 | 1,456,977 | 578,461 | 0 | $ 0 | ||
Common Stock, Shares, Outstanding | 75,076,794 | |||||||
Preferred Stock, Shares Outstanding | 0 | |||||||
Proceeds from Contributions from Parent | 25,536 | |||||||
Net income | (333,168) | (333,168) | ||||||
Amortization of share-based payments | 28,049 | 28,049 | ||||||
Stockholders' Equity Attributable to Parent | 1,731,070 | $ 0 | 1,485,777 | 245,293 | 0 | $ 0 | ||
Common Stock, Shares, Outstanding | 14,048 | |||||||
Preferred Stock, Shares Outstanding | 0 | |||||||
Proceeds from Contributions from Parent | 0 | |||||||
Issuance of common shares to stockholders, directors and employees | 392,997 | 392,997 | ||||||
Stock issued during period, shares, new issues | 400 | |||||||
Net income | (278,209) | (278,209) | ||||||
Dividends, Preferred Stock | (16,159) | 16,159 | ||||||
Stockholders' Equity Attributable to Parent | $ 1,829,699 | $ 0 | $ 1,878,774 | $ (49,075) | $ 0 | $ 0 | ||
Common Stock, Shares, Outstanding | 14,048 | |||||||
Preferred Stock, Shares Outstanding | 400 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization and Basis of Presentation Aircastle Limited (“Aircastle,” the “Company,” “we,” “us” or “our”) is a Bermuda exempted company that was incorporated on October 29, 2004 under the provisions of Section 14 of the Companies Act of 1981 of Bermuda. Aircastle’s business is acquiring, leasing, managing and selling commercial jet aircraft. On March 27, 2020, the Company successfully completed its merger (the “Merger”) and is now controlled by affiliates of Marubeni Corporation and Mizuho Leasing Company, Limited (“Mizuho Leasing”). Aircastle is a holding company that conducts its business through subsidiaries. Aircastle directly or indirectly owns all outstanding common shares of its subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Company manages, analyzes and reports on its business and results of operations based on one operating segment: leasing, financing, selling and managing commercial flight equipment. Our Chief Executive Officer is the chief operating decision maker. The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure subsequent to the balance sheet date of February 28, 2022, through the date on which the consolidated financial statements included in this Annual Report were issued. Principles of Consolidation The consolidated financial statements include the accounts of Aircastle and all its subsidiaries, including any Variable Interest Entity (“VIE”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. Risk and Uncertainties In the normal course of business, Aircastle encounters several significant types of economic risk including credit, market, aviation industry and capital market risks. Credit risk is the risk of a lessee’s inability or unwillingness to make contractually required payments and to fulfill its other contractual obligations to Aircastle. Market risk reflects the change in the value of financings due to changes in interest rate spreads or other market factors, including the value of collateral underlying financings. Aviation industry risk is the risk of a downturn in the commercial aviation industry which could adversely impact a lessee’s ability to make payments, increase the risk of unscheduled lease terminations and depress lease rates and the value of the Company’s aircraft. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing debt facilities. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Aircastle considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Restricted cash and cash equivalents consist primarily of rent collections, maintenance payments and security deposits received from lessees pursuant to the terms of various lease agreements held in lockbox accounts in accordance with our financings. Virtually all our cash and cash equivalents and restricted cash and cash equivalents are held or managed by three major financial institutions. Flight Equipment Held for Lease and Depreciation Flight equipment held for lease is stated at cost and depreciated using the straight-line method, typically over a 25-year life from the date of manufacture for passenger aircraft and over a 30 to 35-year life for freighter aircraft, depending on whether the aircraft is a converted or purpose-built freighter, to estimated residual values. Estimated residual values are generally determined to be approximately 15% of the manufacturer’s estimated realized price for passenger aircraft when new and 5% to 10% for freighter aircraft when new. Management may make exceptions to this policy on a case-by-case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of value. Examples of situations where exceptions may arise include but are not limited to: • flight equipment where estimates of the manufacturer’s realized sales prices are not relevant (e.g., freighter conversions); • flight equipment where estimates of the manufacturer’s realized sales prices are not readily available; and • flight equipment which may have a shorter useful life due to obsolescence. Major improvements and modifications incurred in connection with the acquisition of aircraft that are required to get the aircraft ready for initial service are capitalized and depreciated over the remaining life of the flight equipment. For planned major maintenance activities for aircraft off-lease, the Company capitalizes the actual maintenance costs by applying the deferral method. Under the deferral method, we capitalize the actual cost of major maintenance events, which are depreciated on a straight-line basis over the period until the next maintenance event is required. In accounting for flight equipment held for lease, we make estimates about the expected useful lives, the fair value of attached leases, acquired maintenance assets or liabilities and the estimated residual values. In making these estimates, we rely upon actual industry experience with the same or similar aircraft types and our anticipated lessee’s utilization of the aircraft. For purchase and lease back transactions, we account for the transaction as a single arrangement. We allocate the consideration paid based on the fair value of the aircraft and lease. The fair value of the lease may include a maintenance premium and a lease premium or discount. When we acquire an aircraft with a lease, determining the fair value of attached leases requires us to make assumptions regarding the current fair values of leases for specific aircraft. We estimate a range of current lease rates of like aircraft in order to determine if the attached lease is within a fair value range. If a lease is below or above the range of current lease rates, we present value the estimated amount below or above the fair value range over the remaining term of the lease. The resulting lease discount or premium is amortized into lease rental income over the remaining term of the lease. Impairment of Flight Equipment We perform an annual recoverability assessment of all aircraft in our fleet, on an aircraft-by-aircraft basis. A recoverability assessment is also performed whenever events or changes in circumstances, or indicators, suggest that the carrying amount or net book value of an asset may not be recoverable. Indicators may include, but are not limited to, a significant lease restructuring or early lease termination, significant change in an aircraft type’s storage levels, the introduction of newer technology aircraft or engines, an aircraft type is no longer in production or a significant airworthiness directive is issued. When we perform a recoverability assessment, we measure whether the estimated future undiscounted net cash flows expected to be generated by the aircraft exceed its net book value. The undiscounted cash flows consist of cash flows from currently contracted lease rental and maintenance payments, future projected lease rates and maintenance payments, transition costs, estimated down time, and estimated residual or scrap values for an aircraft. In the event that an aircraft does not meet the recoverability test, the aircraft will be adjusted to fair value, resulting in an impairment charge. See Note 3 in the Notes to the Consolidated Financial Statements. Management develops the assumptions used in the recoverability analysis based on current and future expectations of the global demand for a particular aircraft type and historical experience in the aircraft leasing market and aviation industry, as well as information received from third party industry sources. The factors considered in estimating the undiscounted cash flows are impacted by changes in future periods due to changes in projected lease rental and maintenance payments, residual values, economic conditions, technology, airline demand for a particular aircraft type and other factors such as the location of the aircraft and accessibility to records and technical documentation. We continue to closely monitor the impact of COVID-19 and the Russian invasion of Ukraine on our customers, air traffic, lease rental rates, and aircraft valuations, and have performed and will continue to perform additional customer and aircraft specific reviews should changes in facts and circumstances arise that may impact the recoverability of our aircraft. We will focus on our customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings, aircraft with near-term lease expirations, and certain other customers or aircraft variants that are more susceptible to the impact of the above crises and value deterioration. Net Investment in Direct Financing and Sales-Type Leases If a lease meets specific criteria at lease commencement or at the effective date of a lease modification, we recognize the lease as a direct financing or sales-type lease. The net investment in direct financing and sales-type leases consists of the lease receivable, estimated unguaranteed residual value of the lease flight equipment at lease-end and, for direct financing leases, deferred selling profit. For sales-type leases, we recognize the difference between the net book value of the aircraft and the net investment in the lease as a gain or loss on sale of flight equipment. Selling profit on a direct financing lease is deferred and amortized over the lease term, and a selling loss is recognized at lease commencement. Interest income on our net investment in leases is recognized as Direct financing and sales-type leases revenue over the lease term in a manner that produces a constant rate of return on the net investment in the lease. The net investment in leases is recorded net of an allowance for credit losses. The allowance for credit losses is recorded upon the initial recognition of the net investment in the lease based on the Company’s estimate of expected credit losses over the lease term. The allowance reflects the Company’s estimate of lessee default probabilities and loss given default percentages. When determining the credit loss allowance, we consider relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the net investment in the lease. The allowance also considers potential losses due to non-credit risk related to unguaranteed residual values. A provision for credit losses is recorded as a component of operating expenses to adjust the allowance for changes to management’s estimate of expected credit losses. Unconsolidated Equity Method Investment Aircastle accounts for its interest in an unconsolidated joint venture using the equity method as we do not control the joint venture entity. Under the equity method, the investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated joint venture’s undistributed earnings and losses, and distributions of dividends and capital. The investment may also reflect an equity loss in the event that circumstances indicate an other-than-temporary impairment. Security Deposits Most of our operating leases require the lessee to pay Aircastle a security deposit or provide a letter of credit. Security deposits represent cash received from the lessee that is held on deposit until lease expiration or termination. If a lease is terminated, we recognize security deposits in excess of outstanding lease payments as other revenue. Maintenance Payments Typically, under an operating lease, the lessee is responsible for performing all maintenance but they may also be required to make payments to us for heavy maintenance, overhaul or replacement of certain high-value components of the aircraft. These maintenance payments are based on hours or cycles of utilization or on calendar time, depending upon the component, and are required to be made monthly in arrears or at the end of the lease term. Whether to permit a lessee to make maintenance payments at the end of the lease term, rather than requiring such payments to be made monthly, depends on a variety of factors, including the creditworthiness of the lessee, the level of security deposit which may be provided by the lessee and market conditions at the time we enter into the lease. If a lease requires monthly maintenance payments, we would typically be obligated to reimburse the lessee for costs they incur for heavy maintenance, overhaul or replacement of certain high-value components to the extent of maintenance payments received in respect of the specific maintenance event, usually shortly following completion of the relevant work. If a lease requires end of lease term maintenance payments, typically the lessee would be required to pay us for its utilization of the aircraft during the lease; however, in some cases, we may owe a net payment to the lessee in the event heavy maintenance is performed and paid for by the lessee during the lease term and the aircraft is returned to us in better condition than at lease inception. We record monthly maintenance payments by the lessee as accrued maintenance payments liabilities in recognition of our contractual commitment to refund such receipts. In these contracts, we typically do not recognize such maintenance payments as maintenance revenue during the lease. Reimbursements to the lessee upon the receipt of evidence of qualifying maintenance work are charged against the existing accrued maintenance payments liability. We currently defer maintenance revenue recognition of most monthly maintenance payments until we are able to determine the amount, if any, by which the monthly maintenance payments received from a lessee exceed costs to be incurred by that lessee in performing heavy maintenance, which generally occurs at or near the end of the lease. End of lease term maintenance payments made to us are recognized as maintenance revenue, and end of lease term maintenance payments we make to a lessee are recorded as contra maintenance revenue. Lease Incentives and Amortization Many of our leases contain provisions that may require us to pay a portion of the lessee’s costs for heavy maintenance, overhaul or replacement of certain high-value components. We account for these expected payments as lease incentives, which are amortized as a reduction of revenue over the life of the lease. We estimate the amount of our portion for such costs, typically for the first major maintenance event for the airframe, engines, landing gear and auxiliary power units, expected to be paid to the lessee based on assumed utilization of the related aircraft by the lessee, the anticipated amount of the maintenance event cost and the estimated amounts the lessee is responsible to pay. The assumptions supporting these estimates are re-evaluated annually. This estimated lease incentive is not recognized as a lease incentive liability at the inception of the lease. We recognize the lease incentive as a reduction of lease revenue on a straight-line basis over the life of the lease, with the offset being recorded as a lease incentive liability which is included in maintenance payments on the balance sheet. The payment to the lessee for the lease incentive liability is first recorded against the lease incentive liability, and any excess above the lease incentive liability is recorded as a prepaid lease incentive asset, which is included in other assets on the balance sheet and continues to amortize over the remaining life of the lease. Lease acquisition costs related to reconfiguration of the aircraft cabin, other lessee specific modifications and other direct costs are capitalized and amortized into revenue over the initial life of the lease, assuming no lease renewals, and are included in other assets. Income Taxes Aircastle uses an asset and liability based approach in accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement and tax basis of existing assets and liabilities using enacted rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount estimated by us to be realizable. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. We did not have any unrecognized tax benefits. Fair value measurements Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure the fair value of our cash and cash equivalents and restricted cash and cash equivalents on a recurring basis and measure the fair value of our investment in unconsolidated joint ventures and aircraft on a non-recurring basis. See Note 3 in the Notes to the Consolidated Financial Statements. Lease Revenue Recognition We lease flight equipment under net operating leases with lease terms typically ranging from three In certain instances, we may provide lease concessions to customers, generally in the form of lease rental deferrals. While these deferral arrangements affect the timing of lease rental payments, the total amount of lease rental payments required over the lease term is generally the same as that which was required under the original lease agreement. We account for the deferrals as if no modifications to the lease agreements were made and record the deferred rentals as a receivable within Other assets. Should we determine that the collectability of rental payments is no longer probable (including any deferral thereof), we will recognize lease rental revenue using a cash basis of accounting rather than an accrual method. In the period we conclude that collection of lease payments is no longer probable, we recognize any difference between revenue amounts recognized to date under the accrual method and payments that have been collected from the lessee, including security deposit amounts held, as a current period adjustment to lease rental revenue. Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other gains and losses, net of income taxes, if any, affecting shareholders’ equity that, under U.S. GAAP, are excluded from net income (loss). Share-Based Compensation Aircastle recognized compensation cost relating to share-based payment transactions in the financial statements based on the fair value of the equity instruments issued. Aircastle used the straight-line method of accounting for compensation cost on share-based payment awards that contained pro-rata vesting provisions. Deferred Financing Costs Deferred financing costs, which are included in borrowings from secured and unsecured financings, net of debt issuance costs, in the Consolidated Balance Sheets, are amortized using the interest method for amortizing loans over the lives of the relevant related debt. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform Topic 848 (“ASC 848”), in response to the market transition from the LIBOR and other interbank offered rates (“IBORs”) to alternative reference rates. U.S. GAAP requires entities to evaluate whether a contract modification, such as the replacement or change of a reference rate, results in the establishment of a new contract or continuation of an existing contract. ASC 848 allows an entity to elect not to apply certain modification accounting requirements to contracts affected by reference rate reform. The standard provides this temporary election through December 31, 2022, and cannot be applied to contract modifications that occur after December 31, 2022. Reference rate reform will primarily impact our lease and debt arrangements for which floating-rate lease rentals and interest expense are based on LIBOR. As of February 28, 2022, we have only one aircraft with a floating-rate lease rental and for the year ended February 28, 2022, 4% of our interest expense was derived from floating-rate debt which is referenced to LIBOR. We have not adopted ASC 848 and are currently evaluating the election available to us under the standard. Effective, March 1, 2021, the Company adopted FASB ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. The guidance aims to simplify the accounting for income taxes by removing certain |
Update on COVID-19 Pandemic and
Update on COVID-19 Pandemic and Russian Invasion of Ukraine | 12 Months Ended |
Feb. 28, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Update on COVID-19 Pandemic and Russian Invasion of Ukraine | Note 2. Update on COVID-19 Pandemic and Russian Invasion of Ukraine COVID-19 Pandemic The COVID-19 pandemic and related mitigation efforts has had an unprecedented negative impact on the aviation sector, resulting in a dramatic slowdown in air traffic. Substantially all the world’s airlines have experienced financial difficulties and liquidity challenges, including many of our customers. While there have been improvements in certain markets, according to IATA, as of February 28, 2022, air travel was still down approximately 55% compared to normal levels. A full recovery to pre-pandemic levels is not expected for several years and will depend on the effectiveness of vaccination efforts and the continued easing of widespread travel restrictions, among other things. While the extent and duration of the impact of the COVID-19 pandemic remain unknown, we continue to believe long-term demand for air travel will return to historical trends over time. Even as the airline industry begins to recover, airlines continue to seek support from their respective governments, raise debt and equity, delay or cancel new aircraft orders, furlough employees, request concessions from lessors, and in certain cases, seek judicial protection. While we continued to receive requests from our customers for lease concessions, such as deferrals of lease payments or broader lease restructurings, the number of requests for such concessions during the year ended February 28, 2022 has declined compared to 2021. As of February 28, 2022, we had deferred rent receivables of $55,478 related to nine customers that were included in other assets. Approximately 93% of these deferrals have been agreed to as part of broader lease restructurings, which generally include term extensions, better security packages, or other valuable consideration in exchange for near-term economic concessions. The outstanding deferred rent receivables are scheduled to be repaid, on average, within the next seven years. If air traffic remains depressed and our customers are unable to raise sufficient funds, we may need to grant additional deferrals or extend the period of repayment for deferrals we have already made. We may ultimately not be able to collect all the amounts we have deferred. As of April 25, 2022, four of our customers are subject to judicial insolvency proceedings or similar protection. These customers lease eighteen aircraft, which comprise 12% of our Net Book Value and 9% of our lease rental and direct financing and sales-type lease revenue as of and for the year ended February 28, 2022. One of these customers is LATAM, our second largest customer, which represents 7% of our Net Book Value and 8% of our lease rental revenue as of and for the year ended February 28, 2022. We have signed restructured leases for all thirteen of our LATAM aircraft, subject only to LATAM emerging from the Chapter 11 process. During the second quarter of 2021, the Company entered into claims sale and purchase agreements with a third party for the sale of certain unsecured claims filed by various Aircastle entities against LATAM Airlines Group S.A. and certain of its subsidiaries in the Chapter 11 case captioned LATAM Airlines Group S.A. et al. Case No. 20-11254 (JLG) (Jointly Administered) (the “LATAM Bankruptcy”). The allowed amount of our unsecured claims was approved by the Bankruptcy Court and proceeds from the sales of these claims in the amount of $55,213 were received during the second quarter of 2021 and recognized in other income (expense). We are actively engaged in these judicial proceedings to protect our economic interests. However, the outcome of these proceedings is uncertain and could result in these customers negotiating reductions in aircraft lease rentals, rejecting their leases or taking other actions that could adversely impact us or the value of our aircraft. As a result of these proceedings, lease rental revenue for certain customers may be recognized on a cash basis of accounting rather than the accrual method depending on the customers’ lease security arrangements. Russian Invasion of Ukraine On February 24, 2022, the Russian Federation invaded Ukraine. This has resulted in the closing of airspace in several countries as well as the placement of sanctions on a variety of Russian entities and certain activities involving Russia or Russian entities, such as the leasing of aircraft. We have and will continue to fully comply with all applicable sanctions. As of February 24, 2022, we had twelve aircraft on lease with six Russian airlines and one aircraft with a Ukrainian airline. We have since terminated the leasing activities for all our Russian aircraft and have sought to repossess the aircraft and remove them from Russia. We have successfully repossessed two of the twelve Russian aircraft. Nine aircraft remain in Russia and one aircraft was undergoing maintenance outside of Russia and is not operational. Our aircraft with a Ukrainian airline is in temporary storage outside of Ukraine. It is unclear whether we will be able to recover the remaining aircraft from our former Russian airline customers or what the condition of the aircraft will be at the time of repossession if we do so or whether we will be able to recover the related technical records and documentation. Failure to repossess any of our aircraft could adversely affect our business and financial results. Many of these Russian airlines have continued to fly our aircraft notwithstanding the leasing terminations and our repeated demands for the return of our assets. Our aircraft that remain in Russia may suffer damage or deterioration due to inadequate maintenance and lack of spare parts. During the fourth quarter of 2021, we recorded net non-cash impairment charges of $251,878 related to our Russian and Ukrainian aircraft – see Note 3 in the Notes to the Consolidated Financial Statements. These thirteen aircraft comprised 6% of our Net Book Value before impairment and 1% of our Net Book Value after impairment. Excluding lease rentals received in advance recognized into revenue, they represented 7% of our lease rental and direct financing and sales-type lease revenue for the year ended February 28, 2022. Basic lease rentals for our former Russian lessees were approximately $3,488 for the month of February 2022. The termination of our Russian leases will result in reduced revenues and operating cash flows. We had letters of credit of $49,502 as of February 28, 2022 related to our aircraft leased to Russian airlines. We have presented requests for payment to the various financial institutions and have received about half of the proceeds. We are pursuing collection on remaining letters of credit, but the timing and amount of any further recovery are uncertain. We have insurance, through the airlines’ insurance and our own policies, and have filed claims against the relevant policies seeking an indemnity of approximately $350,000. The ten aircraft that are not in our possession had a pre-impairment book value of $314,127. Our claims are subject to the terms of the applicable policies, and given the unprecedented scenario and the magnitude of potential claims, insurers and reinsurers may raise various defenses. Accordingly, at this stage we can give no assurance as to when or what amounts we may ultimately collect. Insurance recoveries are generally recognized when they are realized or realizable, which typically occurs at the time cash proceeds are received or a claim agreement is executed, and also considers the counterparty’s ability to pay the claim amount. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Notes) | 12 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows: • Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs. • Level 3: Unobservable inputs for which there is little or no market data and which require us to develop our own assumptions about how market participants price the asset or liability. The valuation techniques that may be used to measure fair value are as follows: • The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. • The income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectation about those future amounts. • The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). The following tables set forth our financial assets and liabilities as of February 28, 2022 and 2021, that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Fair Value Measurements at February 28, 2022 Level 1 Level 2 Level 3 Valuation Assets : Cash and cash equivalents $ 167,891 $ 167,891 $ — $ — Market Restricted cash and cash equivalents 2,791 2,791 — — Market Total $ 170,682 $ 170,682 $ — $ — Fair Value Fair Value Measurements at February 28, 2021 Level 1 Level 2 Level 3 Valuation Assets : Cash and cash equivalents $ 578,004 $ 578,004 $ — $ — Market Restricted cash and cash equivalents 2,594 2,594 — — Market Total $ 580,598 $ 580,598 $ — $ — Our cash and cash equivalents and our restricted cash and cash equivalents consist largely of money market securities that are highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. For the years ended February 28, 2022 and 2021, we had no transfers into or out of Level 3. We measure the fair value of certain assets and liabilities on a non-recurring basis, when U.S. GAAP requires the application of fair value, including events or changes in circumstances that indicate the carrying amounts of these assets may not be recoverable. Assets subject to these measurements include our investment in unconsolidated joint ventures and aircraft. We record aircraft at fair value when we determine the carrying value may not be recoverable. Fair value measurements for aircraft in impairment tests are based on the average of the market approach that uses Level 2 inputs, which include third party appraisal data and an income approach that uses Level 3 inputs, which include the Company’s assumptions and appraisal data as to future cash proceeds from leasing and selling aircraft discounted using the Company’s weighted average cost of capital. We account for our investment in unconsolidated joint ventures under the equity method of accounting. Investments are recorded at cost and are adjusted by undistributed earnings and losses and the distributions of dividends and capital. These investments are also reviewed for impairment whenever events or changes in circumstances indicate the fair value is less than its carrying value and the decline is other-than-temporary. Aircraft Valuation Impairment of Flight Equipment Excluding impairment charges resulting from the Russian invasion of Ukraine, during the year ended February 28, 2022, the Company recorded impairment charges totaling $110,926, of which $107,705 were transactional impairments. These impairments primarily related to six narrow-body and one wide-body aircraft, and resulted from early lease terminations, a scheduled lease expiration, and a lessee default. The Company recognized $61,414 of maintenance revenue for these seven aircraft. During the year ended February 28, 2022, the Company recorded impairment charges totaling $341,324 related to ten narrow-body, one wide-body, and two freighter aircraft that were leased to Russian and Ukrainian airlines. The Company recognized $89,446 of lease rentals received in advance, maintenance, security deposits and other revenue for these thirteen aircraft. These impairment charges resulted from the Russian invasion of Ukraine and related sanctions placed on Russia during the fourth quarter of 2021, which required the termination of aircraft leasing activities in Russia, as well as our consideration of the likelihood of successfully repossessing our aircraft including the related technical records and documentation. During the year ended February 28, 2021, the Company recorded impairment charges totaling $425,579, of which $378,247 were transactional impairments, which primarily related to seventeen narrow-body and eight wide-body aircraft. The Company recognized $157,014 of maintenance revenue and security deposits into revenue related to these 25 aircraft during the year ended February 28, 2021. The impairment charges were attributable to early lease terminations, scheduled lease expirations, lessee defaults and/or judicial insolvency proceedings, or as a result of our annual recoverability assessment. Annual Recoverability Assessment We performed our annual recoverability assessment of all our aircraft during the third quarter of 2021. No impairments were recorded as a result of our annual recoverability assessment – see the discussion above for further detail regarding transactional impairment charges recorded during the year ended February 28, 2022. Although we have completed our annual recoverability assessment, we will continue to closely monitor the impact of COVID-19 and the Russian invasion of Ukraine on our customers, air traffic, lease rental rates, and aircraft valuations, and have performed and will continue to perform additional customer and aircraft specific reviews should changes in facts and circumstances arise that may impact the recoverability of our aircraft. We have focused and will focus on our customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings, aircraft with near-term lease expirations, and certain other customers or aircraft variants that are more susceptible to the impact of the above crises and value deterioration. The recoverability assessment is a comparison of the carrying value of each aircraft to its estimated undiscounted future cash flows. We develop the assumptions used in the recoverability assessment, including those relating to current and future demand for each aircraft type, based on management’s experience in the aircraft leasing industry, as well as information received from third-party sources. Estimates of the undiscounted cash flows for each aircraft type are impacted by changes in contracted and future expected lease rates, residual values, expected scrap values, economic conditions and other factors. If our estimates or assumptions change, including those related to our customers that have entered judicial insolvency proceedings, we may revise our cash flow assumptions and record future impairment charges. While we believe that the estimates and related assumptions used in our recoverability assessments are appropriate, actual results could differ from those estimates. Financial Instruments Our financial instruments, other than cash, consist principally of cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, and amounts borrowed under financings. The fair value of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable and accounts payable approximates the carrying value of these financial instruments because of their short-term nature. The fair value of our senior notes is estimated using quoted market prices. The fair values of all our other financings are estimated using a discounted cash flow analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements. The carrying amounts and fair values of our financial instruments at February 28, 2022 and 2021, are as follows: February 28, 2022 February 28, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Credit Facilities $ 20,000 $ 20,000 $ — $ — Unsecured Term Loan 155,000 152,195 215,000 210,290 ECA Financings 21,576 21,931 36,423 37,942 Bank Financings 666,258 675,667 738,353 740,086 Senior Notes 3,700,000 3,776,997 4,200,000 4,402,722 All of our financial instruments are classified as Level 2 with the exception of our senior notes, which are classified as Level 1. |
Lease Rental Revenues and Fligh
Lease Rental Revenues and Flight Equipment Held for Lease | 12 Months Ended |
Feb. 28, 2022 | |
Leases [Abstract] | |
Lease Rental Revenues and Flight Equipment Held for Lease | Lease Rental Revenues and Flight Equipment Held for Lease Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at February 28, 2022 were as follows: Year Ended February 28/29, Amount 2023 $ 575,556 2024 539,694 2025 426,826 2026 300,320 2027 249,832 Thereafter 714,534 Total $ 2,806,762 Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: Year Ended February 28, Two Months Ended February 29, Year Ended Region 2022 2021 2020 2019 Asia and Pacific 29 % 40 % 43 % 43 % Europe 36 % 31 % 26 % 27 % Middle East and Africa 5 % 6 % 7 % 10 % North America 15 % 12 % 11 % 9 % South America 15 % 11 % 13 % 11 % Total 100 % 100 % 100 % 100 % The classification of regions in the table above and in the tables and discussion below is determined based on the principal location of the lessee of each aircraft. The following table shows the number of lessees with lease rental revenue of at least 5% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Year Ended February 28, Two Months Ended February 29, Year Ended 2022 2021 2020 2019 Number of Lessees Combined % of Number of Lessees Combined % of Number of Lessees Combined % of Number of Lessees Combined % of Largest lessees by lease rental revenue (1) 6 38% 4 30% 3 21% 2 16% ______________ (1) The number of lessees and combined percentage for the year ended February 28, 2022 includes one of our Russian lessees, which accounted for 5% of total lease rental revenue. Lease rental revenue for this customer includes the recognition of lease rentals received in advance of $17,194 into revenue; excluding this amount, this customer accounted for 2% of total lease rental revenue. For the year ended February 28, 2022, we had six Russian lessees that accounted for $129,703, or 17%, of our total revenue. Total revenue from these lessees included $89,446 of lease rentals received in advance, maintenance, security deposits and other revenue resulting from the sanctions placed on Russia, which required the termination of leasing activities. Total revenue attributable to Russia was less than 10% for the years ended February 28, 2021 and December 31, 2019 and for the two months ended February 29, 2020. For the year ended February 28, 2022, total revenue attributable to India was $82,246, or 11%, and included maintenance and other revenue, including early lease termination fees, totaling $6,141. For the years ended February 28, 2021 and December 31, 2019, total revenue attributable to India was 12% and 13%, respectively. Total revenue attributable to India was less than 10% for the two months ended February 29, 2020. Geographic concentration of our Net Book Value of flight equipment was as follows: February 28, 2022 February 28, 2021 Region Number of Net Book Number of Net Book Asia and Pacific 71 32 % 79 37 % Europe 98 30 % 92 27 % Middle East and Africa 10 4 % 11 4 % North America 36 17 % 28 12 % South America 25 13 % 26 13 % Off-lease 11 (1) 4 % 16 (2) 7 % Total 251 100 % 252 100 % ______________ (1) Of the eleven off-lease aircraft at February 28, 2022, we have three wide-body aircraft that we are currently marketing for lease or sale. (2) Of the sixteen off-lease aircraft at February 28, 2021, we have one wide-body aircraft that we are currently marketing for lease or sale. The following table sets forth Net Book Value of flight equipment attributable to individual countries representing at least 10% of Net Book Value of flight equipment based on each lessee’s principal place of business as of: February 28, 2022 February 28, 2021 Region Net Book Net Book Number Net Book Net Book Number India $ 670,523 10% 3 $ 756,514 11% 3 At February 28, 2022 and 2021, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $16,481 and $14,673, respectively. |
Unconsolidated Equity Method In
Unconsolidated Equity Method Investment | 12 Months Ended |
Feb. 28, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Unconsolidated Equity Method Investment | Unconsolidated Equity Method Investment We have a joint venture with Mizuho Leasing that has nine aircraft with a net book value of $298,473 at February 28, 2022. Amount Investment in joint ventures at February 29, 2020 $ 33,470 Distributions (419) Earnings from joint venture, net of tax 2,326 Investment in joint ventures at February 28, 2021 35,377 Distributions (104) Earnings from joint venture, net of tax 3,044 Investment in joint ventures at February 28, 2022 $ 38,317 |
Borrowings from Secured and Uns
Borrowings from Secured and Unsecured Debt Financings | 12 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings from Secured and Unsecured Debt Financings | Secured and Unsecured Debt Financings The outstanding amounts of our secured and unsecured term debt financings were as follows: At February 28, 2022 At Debt Obligation Outstanding Number of Aircraft Interest Rate Final Stated Outstanding Secured Debt Financings: ECA Financings (1) $ 21,576 1 3.49% 11/30/24 $ 36,423 Bank Financings 666,258 31 2.25% to 4.55% 06/17/23 to 03/06/25 738,353 Less: Debt Issuance Costs (3,795) (5,926) Total secured debt financings, net of debt issuance costs and discounts 684,039 32 768,850 Unsecured Debt Financings: Senior Notes due 2022 — 5.50% 02/15/22 500,000 Senior 5.00% Notes due 2023 500,000 5.00% 04/01/23 500,000 Senior 4.40% Notes due 2023 650,000 4.40% 09/25/23 650,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Senior Notes due 2025 650,000 5.25% 08/11/25 650,000 Senior Notes due 2026 650,000 4.25% 06/15/26 650,000 Senior Notes due 2028 750,000 2.85% 01/26/28 750,000 Unsecured Term Loan 155,000 1.753% 02/27/24 215,000 Revolving Credit Facilities 20,000 1.625% to 2.25% 06/27/22 to 04/26/25 — Less: Debt issuance costs and discounts (39,159) (48,739) Total unsecured debt financings, net of debt issuance costs and discounts 3,835,841 4,366,261 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 4,519,880 $ 5,135,111 _______________ (1) The borrowings under these financings at February 28, 2022 have a weighted-average fixed rate of interest of 3.23%. Unsecured Debt Financings: Revolving Credit Facilities During the year ended February 28, 2022, we entered into various amendments for one of our unsecured revolving credit facilities that, among other things, expanded the size of the facility and split the commitment into two tranches. As a result, the existing $300,000 commitment was expanded to $365,000, with $135,000 and $230,000 of the commitment allocated to Tranche A and Tranche B, respectively. Tranche A matured on the facility’s previously stated maturity date of December 27, 2021 and Tranche B will mature on February 28, 2023. On April 26, 2021, we entered into an amendment that increased the size of one of our revolving credit facilities from $800,000 to $1,000,000. The stated maturity date for $900,000 of the total commitment was extended to April 26, 2025, and the remaining $100,000 commitment will mature on the facility’s previously stated maturity date of June 27, 2022. On April 26, 2021, we entered into an amendment that reduced the size of our revolving credit facility with Mizuho Bank Ltd., a related party, from $150,000 to $50,000 and extended its maturity date to July 30, 2022. Mizuho Bank, Ltd. is now a lender for our $1,000,000 revolving credit facility with a commitment in the amount of $100,000. On December 6, 2021, the Company entered into a $100,000 senior unsecured revolving credit facility with Mizuho Marubeni Leasing America Corporation, a related party. The facility bears interest at a rate of LIBOR plus 1.625%, matures on December 6, 2023, and requires the Company to have a minimum of $20,000 revolving credit outstanding throughout the term of the facility. This transaction was approved by our Audit Committee as an arm’s length transaction under our related party policy. As of February 28, 2022, we had $20,000 in borrowings outstanding under our revolving credit facilities and had $1,360,000 available for borrowing. Unsecured Term Loan On February 18, 2022, we repaid Tranche A of our unsecured term loan in the amount of $60,000. Senior Notes due 2022 On July 30, 2021, we redeemed all of the $500,000 outstanding aggregate principal amount of our 5.5% Senior Notes due 2022, including $12,604 of accrued interest and a $13,314 call premium. Maturities of the secured and unsecured debt financings over the next five years and thereafter are as follows: Year Ending February 28/29, Amount 2023 $ 81,611 2024 1,552,698 2025 800,859 2026 727,666 2027 650,000 Thereafter 750,000 Total $ 4,562,834 As of February 28, 2022, we were in compliance with all applicable covenants in our financings. |
Shareholders' Equity and Share
Shareholders' Equity and Share Based Payment | 12 Months Ended |
Feb. 28, 2022 | |
Shareholders’ Equity and Share Based Payment [Abstract] | |
Shareholders’ Equity and Share Based Payment | Shareholders’ EquityOn June 8, 2021, the Company issued 400 shares of 5.250% Series A Cumulative Redeemable Perpetual Preference Shares, $0.01 par value, with a liquidation preference of $1,000 per share (the “Preference Shares”). The Preference Shares are perpetual and have no maturity date. Dividends on the Preference Shares, when, as and if declared by the Company’s board of directors are payable semi-annually in arrears on March 15 and September 15 of each year, commencing on September 15, 2021. Dividends will be payable: (i) from the date of original issue to, but excluding September 15, 2026 (the “original reset date”) at a fixed rate per annum of 5.250%; (ii) from, and including, the original reset date to, but excluding, September 15, 2031 (the “2031 reset date”), at a rate per annum equal to the five-year treasury rate as of the most recent reset dividend determination date plus 4.410%; (iii) from, and including, the 2031 reset date to, but excluding, September 15, 2046 (the “2046 reset date”), during each reset period at a rate per annum equal to the five-year treasury rate as of the most recent reset dividend determination date plus 4.660%; and (iv) from, and including, the 2046 reset date, during each reset period at a rate per annum equal to the five-year treasury rate as of the most recent reset dividend determination date plus 5.410%. Dividends on the Preference Shares will accumulate daily and be cumulative from, and including, the date of original issuance of the Preference Shares. The Company may not redeem the Preference Shares before the date that is 90-days prior to the original reset date. The Company may, at its option, redeem the Preference Shares, in whole or in part, from time to time during the period beginning 90-days prior to each reset date and ending on such reset date at a redemption price in cash equal to $1,000 per Preference Share, plus all accumulated and unpaid dividends (whether or not declared) to, but excluding, such redemption date. In addition, the Company may redeem the Preference Shares, in whole but not in part, at the Company’s option under certain other limited conditions. Except with respect to certain amendments to the terms of the Preference Shares, in the case of certain dividend non-payments and as otherwise required by applicable law, the Preference Shares do not have voting rights. On August 19, 2021, the Company’s Board of Directors approved a quarterly dividend for the Company’s Preference Shares in the amount of $5,658, which was paid on September 15, 2021. Additionally, on January 6, 2022, the Company’s Board of Directors approved a quarterly dividend for the Company’s Preference Shares in the amount of $10,500, which was paid on March 15, 2022. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Feb. 28, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions On April 26, 2021, the Company entered into an amendment that reduced the size and extended the term of our unsecured revolving credit facility with Mizuho Bank Ltd., a related party – see Note 7 in the Notes to the Consolidated Financial Statements for additional information. On December 6, 2021, the Company entered into a $100,000 senior unsecured revolving credit facility with Mizuho Marubeni Leasing America Corporation, a related party – see Note 7 in the Notes to the Consolidated Financial Statements for additional information. This transaction was approved by our Audit Committee as an arm’s length transaction under our related party policy. During the year ended February 28, 2022, the Company incurred $5,048 in fees to Marubeni as part of its intra-company service agreement, whereby Marubeni provides certain management and administrative services to the Company. The Company also entered into a parts management services and supply agreement with an affiliate of Marubeni under which we purchased parts totaling $5,857 during the year ended February 28, 2022. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesIncome taxes have been provided for based upon the tax laws and rates in countries in which our operations are conducted and income is earned. The Company received an assurance from the Bermuda Minister of Finance that it would be exempted from local income, withholding and capital gains taxes until March 2035. Consequently, the provision for income taxes relates to income earned by certain subsidiaries of the Company which are located in, or earn income in, jurisdictions that impose income taxes, primarily the United States and Ireland. The sources of income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment for the years ended February 28, 2022 and 2021, the two months ended February 29, 2020, and the year ended December 31, 2019, were as follows: Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 U.S. operations $ 20,803 $ 31,848 $ 3,084 $ 9,085 Non-U.S. operations (310,054) (357,106) 1,754 166,055 Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment $ (289,251) $ (325,258) $ 4,838 $ 175,140 The components of the income tax provision (benefit) from continuing operations for the years ended February 28, 2022 and 2021, the two months ended February 29, 2020, and the year ended December 31, 2019, consisted of the following: Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 Current: United States: Federal $ 247 $ (1,232) $ 6 $ 782 State 161 121 — 437 Non-U.S. 980 4,842 217 1,225 Current income tax provision 1,388 3,731 223 2,444 Deferred: United States: Federal 5,206 3,150 1,578 7,205 State 1,593 1,598 561 2,018 Non-U.S. (16,185) 1,757 (687) 11,000 Deferred income tax (benefit) (9,386) 6,505 1,452 20,223 Total $ (7,998) $ 10,236 $ 1,675 $ 22,667 Significant components of the Company’s deferred tax assets and liabilities at February 28, 2022 and 2021, February 29, 2020, and December 31, 2019, consisted of the following: Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 Deferred tax assets: Non-cash share-based payments $ — $ — $ 215 $ 614 Net operating loss carry forwards 117,448 95,462 74,045 69,806 Other 34,955 37,612 54,259 72,732 Total deferred tax assets 152,403 133,074 128,519 143,152 Deferred tax liabilities: Accelerated depreciation (189,083) (170,382) (140,363) (136,268) Other (28,873) (37,179) (53,448) (70,551) Total deferred tax liabilities (217,956) (207,561) (193,811) (206,819) Net deferred tax liabilities $ (65,553) $ (74,487) $ (65,292) $ (63,667) The Company had $102,435 of federal net operating loss (“NOL”) carry forwards available at February 28, 2022 to offset future taxable income subject to U.S. graduated tax rates. If not utilized, $35,510 of these carry forwards will expire by 2037, with $66,925 of these carry forwards having no expiration date. The Company also had NOL carry forwards of $729,749 with no expiration date to offset future Irish taxable income. Deferred tax assets and liabilities are included in other assets and accounts payable and accrued liabilities, respectively. We do not expect to incur income taxes on future distributions of undistributed earnings of non-U.S. subsidiaries and accordingly, no deferred income taxes have been provided for the distributions of such earnings. As of February 28, 2022, we have elected to permanently reinvest our accumulated undistributed U.S. earnings of $40,041. Accordingly, no U.S. withholding taxes have been provided. Withholding tax of $2,002 would be due if such earnings were remitted. Our aircraft-owning subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes. The aircraft owning subsidiaries resident in Ireland and the U.S. are subject to tax in those respective jurisdictions. We have a U.S.-based subsidiary which provides management services to our subsidiaries and is subject to U.S. federal, state and local income taxes. We also have Ireland and Singapore based subsidiaries which provide management services to our non-U.S. subsidiaries and are subject to tax in those respective jurisdictions. Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income from continuing operations for the years ended February 28, 2022 and 2021, the two months ended February 29, 2020, and the year ended December 31, 2019, consisted of the following: Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 Notional U.S. federal income tax expense at the statutory rate: $ (60,742) $ (68,304) $ 1,016 $ 36,779 U.S. state and local income tax, net 1,237 1,723 390 1,549 Non-U.S. operations: Bermuda 27,751 82,190 (1,845) (16,950) Ireland 23,510 1,545 (1,147) (99) Singapore 174 75 (6) (28) Other low tax jurisdictions (15) (381) 2,533 (2,504) Non-deductible expenses in the U.S. 16 (1,904) 734 3,581 Other 71 (4,708) — 339 Provision (benefit) for income taxes $ (7,998) $ 10,236 $ 1,675 $ 22,667 The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. We did not have any unrecognized tax benefits. We conduct business globally and, as a result, the Company and its subsidiaries or branches are subject to foreign, U.S. federal and various state and local income taxes, as well as withholding taxes. In the normal course of business the Company is subject to examination by taxing authorities throughout the world, including such major jurisdictions as Ireland and the United States. Our policy is that we will recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We did not accrue interest or penalties associated with any unrecognized tax benefits, nor was any interest expense or penalty recognized during the year. |
Interest, Net
Interest, Net | 12 Months Ended |
Feb. 28, 2022 | |
Interest Income (Expense), Net [Abstract] | |
Interest, Net | Interest, Net The following table shows the components of interest, net. Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 Interest on borrowings and other liabilities $ 200,220 $ 221,246 $ 38,915 $ 245,673 Amortization of deferred losses related to interest rate derivatives — — — 184 Amortization of deferred financing fees and debt discount 16,267 14,791 2,446 14,578 Interest expense 216,487 236,037 41,361 260,435 Less: Interest income (1,209) (523) (323) (2,365) Less: Capitalized interest (926) (176) — — Interest, net $ 214,352 $ 235,338 $ 41,038 $ 258,070 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rent expense, primarily for the corporate office and sales and marketing facilities, was $1,621, $1,626, $278 and $1,601 for the years ended February 28, 2022 and 2021, the two months ended February 29, 2020, and the year ended December 31, 2019, respectively. As of February 28, 2022, Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending February 28/29, Amount 2023 $ 1,768 2024 1,702 2025 1,733 2026 1,764 2027 1,795 Thereafter 2,561 Total $ 11,323 At February 28, 2022, we had commitments to acquire 23 for $819,273. Commitments under signed purchase agreements, including $76,675 of remaining progress payments, contractual price escalations and other adjustments for these aircraft at February 28, 2022, net of amounts already paid, are as follows: Year Ending February 28/29, Amount 2023 $ 462,452 2024 171,258 2025 185,563 2026 — 2027 — Thereafter — Total $ 819,273 |
Other Assets
Other Assets | 12 Months Ended |
Feb. 28, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The following table describes the principal components of other assets on our consolidated balance sheets as of: February 28, 2022 2021 Deferred income tax asset $ 570 $ 637 Lease incentives and premiums, net of accumulated amortization of $81,553 and $75,126, respectively 53,513 75,169 Flight equipment held for sale 77,636 53,289 Aircraft purchase deposits and Embraer E-2 progress payments 56,157 52,092 Right-of-use asset (1) 7,176 8,056 Deferred rent receivable 55,478 69,103 Other assets 105,796 53,598 Total other assets $ 356,326 $ 311,944 ______________ (1) Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Feb. 28, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other LiabilitiesThe following table describes the principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheets as of: February 28, 2022 2021 Accounts payable and accrued expenses $ 58,882 $ 43,088 Deferred income tax liability 66,123 75,124 Accrued interest payable 42,013 43,676 Lease liability 9,846 11,003 Lease discounts, net of accumulated amortization of $45,546 and $44,887, respectively 560 1,376 Total accounts payable, accrued expenses and other liabilities $ 177,424 $ 174,267 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 28, 2022 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation Aircastle Limited (“Aircastle,” the “Company,” “we,” “us” or “our”) is a Bermuda exempted company that was incorporated on October 29, 2004 under the provisions of Section 14 of the Companies Act of 1981 of Bermuda. Aircastle’s business is acquiring, leasing, managing and selling commercial jet aircraft. On March 27, 2020, the Company successfully completed its merger (the “Merger”) and is now controlled by affiliates of Marubeni Corporation and Mizuho Leasing Company, Limited (“Mizuho Leasing”). Aircastle is a holding company that conducts its business through subsidiaries. Aircastle directly or indirectly owns all outstanding common shares of its subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Company manages, analyzes and reports on its business and results of operations based on one operating segment: leasing, financing, selling and managing commercial flight equipment. Our Chief Executive Officer is the chief operating decision maker. The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure subsequent to the balance sheet date of February 28, 2022, through the date on which the consolidated financial statements included in this Annual Report were issued. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Aircastle and all its subsidiaries, including any Variable Interest Entity (“VIE”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents | Cash and Cash Equivalents and Restricted Cash and Cash Equivalents Aircastle considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Restricted cash and cash equivalents consist primarily of rent collections, maintenance payments and security deposits received from lessees pursuant to the terms of various lease agreements held in lockbox accounts in accordance with our financings. |
Lessor, Leases [Policy Text Block] | Flight Equipment Held for Lease and Depreciation Flight equipment held for lease is stated at cost and depreciated using the straight-line method, typically over a 25-year life from the date of manufacture for passenger aircraft and over a 30 to 35-year life for freighter aircraft, depending on whether the aircraft is a converted or purpose-built freighter, to estimated residual values. Estimated residual values are generally determined to be approximately 15% of the manufacturer’s estimated realized price for passenger aircraft when new and 5% to 10% for freighter aircraft when new. Management may make exceptions to this policy on a case-by-case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of value. Examples of situations where exceptions may arise include but are not limited to: • flight equipment where estimates of the manufacturer’s realized sales prices are not relevant (e.g., freighter conversions); • flight equipment where estimates of the manufacturer’s realized sales prices are not readily available; and • flight equipment which may have a shorter useful life due to obsolescence. Major improvements and modifications incurred in connection with the acquisition of aircraft that are required to get the aircraft ready for initial service are capitalized and depreciated over the remaining life of the flight equipment. For planned major maintenance activities for aircraft off-lease, the Company capitalizes the actual maintenance costs by applying the deferral method. Under the deferral method, we capitalize the actual cost of major maintenance events, which are depreciated on a straight-line basis over the period until the next maintenance event is required. In accounting for flight equipment held for lease, we make estimates about the expected useful lives, the fair value of attached leases, acquired maintenance assets or liabilities and the estimated residual values. In making these estimates, we rely upon actual industry experience with the same or similar aircraft types and our anticipated lessee’s utilization of the aircraft. For purchase and lease back transactions, we account for the transaction as a single arrangement. We allocate the consideration paid based on the fair value of the aircraft and lease. The fair value of the lease may include a maintenance premium and a lease premium or discount. When we acquire an aircraft with a lease, determining the fair value of attached leases requires us to make assumptions regarding the current fair values of leases for specific aircraft. We estimate a range of current lease rates of like aircraft in order to determine if the attached lease is within a fair value range. If a lease is below or above the range of current lease rates, we present value the estimated amount below or above the fair value range over the remaining term of the lease. The resulting lease discount or premium is amortized into lease rental income over the remaining term of the lease. Lease Incentives and Amortization Many of our leases contain provisions that may require us to pay a portion of the lessee’s costs for heavy maintenance, overhaul or replacement of certain high-value components. We account for these expected payments as lease incentives, which are amortized as a reduction of revenue over the life of the lease. We estimate the amount of our portion for such costs, typically for the first major maintenance event for the airframe, engines, landing gear and auxiliary power units, expected to be paid to the lessee based on assumed utilization of the related aircraft by the lessee, the anticipated amount of the maintenance event cost and the estimated amounts the lessee is responsible to pay. The assumptions supporting these estimates are re-evaluated annually. This estimated lease incentive is not recognized as a lease incentive liability at the inception of the lease. We recognize the lease incentive as a reduction of lease revenue on a straight-line basis over the life of the lease, with the offset being recorded as a lease incentive liability which is included in maintenance payments on the balance sheet. The payment to the lessee for the lease incentive liability is first recorded against the lease incentive liability, and any excess above the lease incentive liability is recorded as a prepaid lease incentive asset, which is included in other assets on the balance sheet and continues to amortize over the remaining life of the lease. Lease acquisition costs related to reconfiguration of the aircraft cabin, other lessee specific modifications and other direct costs are capitalized and amortized into revenue over the initial life of the lease, assuming no lease renewals, and are included in other assets. |
Impairment of Flight Equipment | Impairment of Flight Equipment We perform an annual recoverability assessment of all aircraft in our fleet, on an aircraft-by-aircraft basis. A recoverability assessment is also performed whenever events or changes in circumstances, or indicators, suggest that the carrying amount or net book value of an asset may not be recoverable. Indicators may include, but are not limited to, a significant lease restructuring or early lease termination, significant change in an aircraft type’s storage levels, the introduction of newer technology aircraft or engines, an aircraft type is no longer in production or a significant airworthiness directive is issued. When we perform a recoverability assessment, we measure whether the estimated future undiscounted net cash flows expected to be generated by the aircraft exceed its net book value. The undiscounted cash flows consist of cash flows from currently contracted lease rental and maintenance payments, future projected lease rates and maintenance payments, transition costs, estimated down time, and estimated residual or scrap values for an aircraft. In the event that an aircraft does not meet the recoverability test, the aircraft will be adjusted to fair value, resulting in an impairment charge. See Note 3 in the Notes to the Consolidated Financial Statements. Management develops the assumptions used in the recoverability analysis based on current and future expectations of the global demand for a particular aircraft type and historical experience in the aircraft leasing market and aviation industry, as well as information received from third party industry sources. The factors considered in estimating the undiscounted cash flows are impacted by changes in future periods due to changes in projected lease rental and maintenance payments, residual values, economic conditions, technology, airline demand for a particular aircraft type and other factors such as the location of the aircraft and accessibility to records and technical documentation. We continue to closely monitor the impact of COVID-19 and the Russian invasion of Ukraine on our customers, air traffic, lease rental rates, and aircraft valuations, and have performed and will continue to perform additional customer and aircraft specific reviews should changes in facts and circumstances arise that may impact the recoverability of our aircraft. We will focus on our customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings, aircraft with near-term lease expirations, and certain other customers or aircraft variants that are more susceptible to the impact of the above crises and value deterioration. |
Net Investment in Finance Leases | Net Investment in Direct Financing and Sales-Type Leases If a lease meets specific criteria at lease commencement or at the effective date of a lease modification, we recognize the lease as a direct financing or sales-type lease. The net investment in direct financing and sales-type leases consists of the lease receivable, estimated unguaranteed residual value of the lease flight equipment at lease-end and, for direct financing leases, deferred selling profit. For sales-type leases, we recognize the difference between the net book value of the aircraft and the net investment in the lease as a gain or loss on sale of flight equipment. Selling profit on a direct financing lease is deferred and amortized over the lease term, and a selling loss is recognized at lease commencement. Interest income on our net investment in leases is recognized as Direct financing and sales-type leases revenue over the lease term in a manner that produces a constant rate of return on the net investment in the lease. The net investment in leases is recorded net of an allowance for credit losses. The allowance for credit losses is recorded upon the initial recognition of the net investment in the lease based on the Company’s estimate of expected credit losses over the lease term. The allowance reflects the Company’s estimate of lessee default probabilities and loss given default percentages. When determining the credit loss allowance, we consider relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the net investment in the lease. The allowance also considers potential losses due to non-credit risk related to unguaranteed residual values. A provision for credit losses is recorded as a component of operating expenses to adjust the allowance for changes to management’s estimate of expected credit losses. |
Unconsolidated Equity Method Investment | Unconsolidated Equity Method Investment Aircastle accounts for its interest in an unconsolidated joint venture using the equity method as we do not control the joint venture entity. Under the equity method, the investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated joint venture’s undistributed earnings and losses, and distributions of dividends and capital. The investment may also reflect an equity loss in the event that circumstances indicate an other-than-temporary impairment. |
Security Deposits | Security Deposits Most of our operating leases require the lessee to pay Aircastle a security deposit or provide a letter of credit. Security deposits represent cash received from the lessee that is held on deposit until lease expiration or termination. If a lease is terminated, we recognize security deposits in excess of outstanding lease payments as other revenue. |
Maintenance Payments | Maintenance Payments Typically, under an operating lease, the lessee is responsible for performing all maintenance but they may also be required to make payments to us for heavy maintenance, overhaul or replacement of certain high-value components of the aircraft. These maintenance payments are based on hours or cycles of utilization or on calendar time, depending upon the component, and are required to be made monthly in arrears or at the end of the lease term. Whether to permit a lessee to make maintenance payments at the end of the lease term, rather than requiring such payments to be made monthly, depends on a variety of factors, including the creditworthiness of the lessee, the level of security deposit which may be provided by the lessee and market conditions at the time we enter into the lease. If a lease requires monthly maintenance payments, we would typically be obligated to reimburse the lessee for costs they incur for heavy maintenance, overhaul or replacement of certain high-value components to the extent of maintenance payments received in respect of the specific maintenance event, usually shortly following completion of the relevant work. If a lease requires end of lease term maintenance payments, typically the lessee would be required to pay us for its utilization of the aircraft during the lease; however, in some cases, we may owe a net payment to the lessee in the event heavy maintenance is performed and paid for by the lessee during the lease term and the aircraft is returned to us in better condition than at lease inception. We record monthly maintenance payments by the lessee as accrued maintenance payments liabilities in recognition of our contractual commitment to refund such receipts. In these contracts, we typically do not recognize such maintenance payments as maintenance revenue during the lease. Reimbursements to the lessee upon the receipt of evidence of qualifying maintenance work are charged against the existing accrued maintenance payments liability. We currently defer maintenance revenue recognition of most monthly maintenance payments until we are able to determine the amount, if any, by which the monthly maintenance payments received from a lessee exceed costs to be incurred by that lessee in performing heavy maintenance, which generally occurs at or near the end of the lease. End of lease term maintenance payments made to us are recognized as maintenance revenue, and end of lease term maintenance payments we make to a lessee are recorded as contra maintenance revenue. |
Income Taxes | Income Taxes Aircastle uses an asset and liability based approach in accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement and tax basis of existing assets and liabilities using enacted rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount estimated by us to be realizable. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. We did not have any unrecognized tax benefits. |
Lease Revenue Recognition | Lease Revenue Recognition We lease flight equipment under net operating leases with lease terms typically ranging from three In certain instances, we may provide lease concessions to customers, generally in the form of lease rental deferrals. While these deferral arrangements affect the timing of lease rental payments, the total amount of lease rental payments required over the lease term is generally the same as that which was required under the original lease agreement. We account for the deferrals as if no modifications to the lease agreements were made and record the deferred rentals as a receivable within Other assets. Should we determine that the collectability of rental payments is no longer probable (including any deferral thereof), we will recognize lease rental revenue using a cash basis of accounting rather than an accrual method. In the period we conclude that collection of lease payments is no longer probable, we recognize any difference between revenue amounts recognized to date under the accrual method and payments that have been collected from the lessee, including security deposit amounts held, as a current period adjustment to lease rental revenue. |
Comprehensive Income | Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other gains and losses, net of income taxes, if any, affecting shareholders’ equity that, under U.S. GAAP, are excluded from net income (loss). |
Share Based Compensation | Share-Based Compensation Aircastle recognized compensation cost relating to share-based payment transactions in the financial statements based on the fair value of the equity instruments issued. Aircastle used the straight-line method of accounting for compensation cost on share-based payment awards that contained pro-rata vesting provisions. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs, which are included in borrowings from secured and unsecured financings, net of debt issuance costs, in the Consolidated Balance Sheets, are amortized using the interest method for amortizing loans over the lives of the relevant related debt. |
Recent Unadopted Accounting Pronouncements | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform Topic 848 (“ASC 848”), in response to the market transition from the LIBOR and other interbank offered rates (“IBORs”) to alternative reference rates. U.S. GAAP requires entities to evaluate whether a contract modification, such as the replacement or change of a reference rate, results in the establishment of a new contract or continuation of an existing contract. ASC 848 allows an entity to elect not to apply certain modification accounting requirements to contracts affected by reference rate reform. The standard provides this temporary election through December 31, 2022, and cannot be applied to contract modifications that occur after December 31, 2022. Reference rate reform will primarily impact our lease and debt arrangements for which floating-rate lease rentals and interest expense are based on LIBOR. As of February 28, 2022, we have only one aircraft with a floating-rate lease rental and for the year ended February 28, 2022, 4% of our interest expense was derived from floating-rate debt which is referenced to LIBOR. We have not adopted ASC 848 and are currently evaluating the election available to us under the standard. Effective, March 1, 2021, the Company adopted FASB ASU 2019-12, Income Taxes (Topic 740), Simplifying the Accounting for Income Taxes. The guidance aims to simplify the accounting for income taxes by removing certain |
Fair Value Measurement, Policy | Fair value measurements Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure the fair value of our cash and cash equivalents and restricted cash and cash equivalents on a recurring basis and measure the fair value of our investment in |
Concentration Risk, Credit Risk, Policy | Risk and Uncertainties In the normal course of business, Aircastle encounters several significant types of economic risk including credit, market, aviation industry and capital market risks. Credit risk is the risk of a lessee’s inability or unwillingness to make contractually required payments and to fulfill its other contractual obligations to Aircastle. Market risk reflects the change in the value of financings due to changes in interest rate spreads or other market factors, including the value of collateral underlying financings. Aviation industry risk is the risk of a downturn in the commercial aviation industry which could adversely impact a lessee’s ability to make payments, increase the risk of unscheduled lease terminations and depress lease rates and the value of the Company’s aircraft. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing debt facilities. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following tables set forth our financial assets and liabilities as of February 28, 2022 and 2021, that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Fair Value Measurements at February 28, 2022 Level 1 Level 2 Level 3 Valuation Assets : Cash and cash equivalents $ 167,891 $ 167,891 $ — $ — Market Restricted cash and cash equivalents 2,791 2,791 — — Market Total $ 170,682 $ 170,682 $ — $ — Fair Value Fair Value Measurements at February 28, 2021 Level 1 Level 2 Level 3 Valuation Assets : Cash and cash equivalents $ 578,004 $ 578,004 $ — $ — Market Restricted cash and cash equivalents 2,594 2,594 — — Market Total $ 580,598 $ 580,598 $ — $ — |
Carrying amounts and fair values of financial instruments | The carrying amounts and fair values of our financial instruments at February 28, 2022 and 2021, are as follows: February 28, 2022 February 28, 2021 Carrying Amount Fair Value Carrying Amount Fair Value Credit Facilities $ 20,000 $ 20,000 $ — $ — Unsecured Term Loan 155,000 152,195 215,000 210,290 ECA Financings 21,576 21,931 36,423 37,942 Bank Financings 666,258 675,667 738,353 740,086 Senior Notes 3,700,000 3,776,997 4,200,000 4,402,722 |
Lease Rental Revenues and Fli_2
Lease Rental Revenues and Flight Equipment Held for Lease (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Leases [Abstract] | |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | 10% of Net Book Value of flight equipment based on each lessee’s principal place of business as of: February 28, 2022 February 28, 2021 Region Net Book Net Book Number Net Book Net Book Number India $ 670,523 10% 3 $ 756,514 11% 3 |
Geographic concentration of lease rental revenue earnings | Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: Year Ended February 28, Two Months Ended February 29, Year Ended Region 2022 2021 2020 2019 Asia and Pacific 29 % 40 % 43 % 43 % Europe 36 % 31 % 26 % 27 % Middle East and Africa 5 % 6 % 7 % 10 % North America 15 % 12 % 11 % 9 % South America 15 % 11 % 13 % 11 % Total 100 % 100 % 100 % 100 % |
Revenue attributable to individual countries | The following table shows the number of lessees with lease rental revenue of at least 5% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Year Ended February 28, Two Months Ended February 29, Year Ended 2022 2021 2020 2019 Number of Lessees Combined % of Number of Lessees Combined % of Number of Lessees Combined % of Number of Lessees Combined % of Largest lessees by lease rental revenue (1) 6 38% 4 30% 3 21% 2 16% ______________ (1) The number of lessees and combined percentage for the year ended February 28, 2022 includes one of our Russian lessees, which accounted for 5% of total lease rental revenue. Lease rental revenue for this customer includes the recognition of lease rentals received in advance of $17,194 into revenue; excluding this amount, this customer accounted for 2% of total lease rental revenue. |
Geographic concentration of net book value of flight equipment held for lease | Geographic concentration of our Net Book Value of flight equipment was as follows: February 28, 2022 February 28, 2021 Region Number of Net Book Number of Net Book Asia and Pacific 71 32 % 79 37 % Europe 98 30 % 92 27 % Middle East and Africa 10 4 % 11 4 % North America 36 17 % 28 12 % South America 25 13 % 26 13 % Off-lease 11 (1) 4 % 16 (2) 7 % Total 251 100 % 252 100 % ______________ (1) Of the eleven off-lease aircraft at February 28, 2022, we have three wide-body aircraft that we are currently marketing for lease or sale. (2) Of the sixteen off-lease aircraft at February 28, 2021, we have one wide-body aircraft that we are currently marketing for lease or sale. |
Schedule of Future Minimum Lease Payments for Capital Leases | |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at February 28, 2022 were as follows: Year Ended February 28/29, Amount 2023 $ 575,556 2024 539,694 2025 426,826 2026 300,320 2027 249,832 Thereafter 714,534 Total $ 2,806,762 |
Net Investment in Finance Lease
Net Investment in Finance Leases (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments for Capital Leases | |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The activity in the allowance for credit losses related to our net investment in leases for the years ended February 28, 2022 and 2021 is as follows: Amount Balance at February 29, 2020 $ 6,558 Provision for credit losses 5,258 Write-offs (10,952) Balance at February 28, 2021 864 Provision for credit losses 930 Write-offs (30) Balance at February 28, 2022 $ 1,764 During the year ended February 28, 2022, we sold five aircraft that were classified as net investment in direct financing and sales-type leases and wrote-off the corresponding allowance for credit losses. At February 28, 2022, future lease payments on net investment in leases are as follows: Year Ending February 28/29, Amount 2023 $ 13,700 2024 9,539 2025 8,609 2026 7,680 2027 7,392 Thereafter 14,430 Total lease payments to be received 61,350 Present value of lease payments - lease receivable (52,021) Difference between undiscounted lease payments and lease receivable $ 9,329 |
Direct Financing Lease, Lease Income | The components of our net investment in leases at February 28, 2022 and 2021 were as follows: February 28, 2022 2021 Lease receivable $ 52,021 $ 67,075 Unguaranteed residual value of flight equipment 100,068 129,165 Net investment leases 152,089 196,240 Allowance for credit losses (1,764) (864) Net investment in leases, net of allowance $ 150,325 $ 195,376 |
Unconsolidated Equity Method _2
Unconsolidated Equity Method Investment (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Amount Investment in joint ventures at February 29, 2020 $ 33,470 Distributions (419) Earnings from joint venture, net of tax 2,326 Investment in joint ventures at February 28, 2021 35,377 Distributions (104) Earnings from joint venture, net of tax 3,044 Investment in joint ventures at February 28, 2022 $ 38,317 |
Borrowings from Secured and U_2
Borrowings from Secured and Unsecured Debt Financings (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Debt Disclosure [Abstract] | |
Outstanding amounts of secured and unsecured term debt financings | The outstanding amounts of our secured and unsecured term debt financings were as follows: At February 28, 2022 At Debt Obligation Outstanding Number of Aircraft Interest Rate Final Stated Outstanding Secured Debt Financings: ECA Financings (1) $ 21,576 1 3.49% 11/30/24 $ 36,423 Bank Financings 666,258 31 2.25% to 4.55% 06/17/23 to 03/06/25 738,353 Less: Debt Issuance Costs (3,795) (5,926) Total secured debt financings, net of debt issuance costs and discounts 684,039 32 768,850 Unsecured Debt Financings: Senior Notes due 2022 — 5.50% 02/15/22 500,000 Senior 5.00% Notes due 2023 500,000 5.00% 04/01/23 500,000 Senior 4.40% Notes due 2023 650,000 4.40% 09/25/23 650,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Senior Notes due 2025 650,000 5.25% 08/11/25 650,000 Senior Notes due 2026 650,000 4.25% 06/15/26 650,000 Senior Notes due 2028 750,000 2.85% 01/26/28 750,000 Unsecured Term Loan 155,000 1.753% 02/27/24 215,000 Revolving Credit Facilities 20,000 1.625% to 2.25% 06/27/22 to 04/26/25 — Less: Debt issuance costs and discounts (39,159) (48,739) Total unsecured debt financings, net of debt issuance costs and discounts 3,835,841 4,366,261 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 4,519,880 $ 5,135,111 _______________ (1) The borrowings under these financings at February 28, 2022 have a weighted-average fixed rate of interest of 3.23%. |
Schedule of Maturities of Long-term Debt | Maturities of the secured and unsecured debt financings over the next five years and thereafter are as follows: Year Ending February 28/29, Amount 2023 $ 81,611 2024 1,552,698 2025 800,859 2026 727,666 2027 650,000 Thereafter 750,000 Total $ 4,562,834 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Income Tax Disclosure [Abstract] | |
Sources of income from continuing operations before income taxes | The sources of income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment for the years ended February 28, 2022 and 2021, the two months ended February 29, 2020, and the year ended December 31, 2019, were as follows: Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 U.S. operations $ 20,803 $ 31,848 $ 3,084 $ 9,085 Non-U.S. operations (310,054) (357,106) 1,754 166,055 Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment $ (289,251) $ (325,258) $ 4,838 $ 175,140 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The components of the income tax provision (benefit) from continuing operations for the years ended February 28, 2022 and 2021, the two months ended February 29, 2020, and the year ended December 31, 2019, consisted of the following: Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 Current: United States: Federal $ 247 $ (1,232) $ 6 $ 782 State 161 121 — 437 Non-U.S. 980 4,842 217 1,225 Current income tax provision 1,388 3,731 223 2,444 Deferred: United States: Federal 5,206 3,150 1,578 7,205 State 1,593 1,598 561 2,018 Non-U.S. (16,185) 1,757 (687) 11,000 Deferred income tax (benefit) (9,386) 6,505 1,452 20,223 Total $ (7,998) $ 10,236 $ 1,675 $ 22,667 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred tax assets and liabilities at February 28, 2022 and 2021, February 29, 2020, and December 31, 2019, consisted of the following: Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 Deferred tax assets: Non-cash share-based payments $ — $ — $ 215 $ 614 Net operating loss carry forwards 117,448 95,462 74,045 69,806 Other 34,955 37,612 54,259 72,732 Total deferred tax assets 152,403 133,074 128,519 143,152 Deferred tax liabilities: Accelerated depreciation (189,083) (170,382) (140,363) (136,268) Other (28,873) (37,179) (53,448) (70,551) Total deferred tax liabilities (217,956) (207,561) (193,811) (206,819) Net deferred tax liabilities $ (65,553) $ (74,487) $ (65,292) $ (63,667) |
Analysis of effective income tax rate for continuing operations | Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income from continuing operations for the years ended February 28, 2022 and 2021, the two months ended February 29, 2020, and the year ended December 31, 2019, consisted of the following: Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 Notional U.S. federal income tax expense at the statutory rate: $ (60,742) $ (68,304) $ 1,016 $ 36,779 U.S. state and local income tax, net 1,237 1,723 390 1,549 Non-U.S. operations: Bermuda 27,751 82,190 (1,845) (16,950) Ireland 23,510 1,545 (1,147) (99) Singapore 174 75 (6) (28) Other low tax jurisdictions (15) (381) 2,533 (2,504) Non-deductible expenses in the U.S. 16 (1,904) 734 3,581 Other 71 (4,708) — 339 Provision (benefit) for income taxes $ (7,998) $ 10,236 $ 1,675 $ 22,667 |
Interest, Net (Tables)
Interest, Net (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Interest Income (Expense), Net [Abstract] | |
Components of interest | The following table shows the components of interest, net. Year Ended February 28, Two Months Ended February 29, Year Ended December 31, 2022 2021 2020 2019 Interest on borrowings and other liabilities $ 200,220 $ 221,246 $ 38,915 $ 245,673 Amortization of deferred losses related to interest rate derivatives — — — 184 Amortization of deferred financing fees and debt discount 16,267 14,791 2,446 14,578 Interest expense 216,487 236,037 41,361 260,435 Less: Interest income (1,209) (523) (323) (2,365) Less: Capitalized interest (926) (176) — — Interest, net $ 214,352 $ 235,338 $ 41,038 $ 258,070 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | As of February 28, 2022, Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending February 28/29, Amount 2023 $ 1,768 2024 1,702 2025 1,733 2026 1,764 2027 1,795 Thereafter 2,561 Total $ 11,323 |
Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block] | Commitments under signed purchase agreements, including $76,675 of remaining progress payments, contractual price escalations and other adjustments for these aircraft at February 28, 2022, net of amounts already paid, are as follows: Year Ending February 28/29, Amount 2023 $ 462,452 2024 171,258 2025 185,563 2026 — 2027 — Thereafter — Total $ 819,273 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Principal components of other assets | The following table describes the principal components of other assets on our consolidated balance sheets as of: February 28, 2022 2021 Deferred income tax asset $ 570 $ 637 Lease incentives and premiums, net of accumulated amortization of $81,553 and $75,126, respectively 53,513 75,169 Flight equipment held for sale 77,636 53,289 Aircraft purchase deposits and Embraer E-2 progress payments 56,157 52,092 Right-of-use asset (1) 7,176 8,056 Deferred rent receivable 55,478 69,103 Other assets 105,796 53,598 Total other assets $ 356,326 $ 311,944 ______________ (1) Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Feb. 28, 2022 | |
Payables and Accruals [Abstract] | |
Principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheet | The following table describes the principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheets as of: February 28, 2022 2021 Accounts payable and accrued expenses $ 58,882 $ 43,088 Deferred income tax liability 66,123 75,124 Accrued interest payable 42,013 43,676 Lease liability 9,846 11,003 Lease discounts, net of accumulated amortization of $45,546 and $44,887, respectively 560 1,376 Total accounts payable, accrued expenses and other liabilities $ 177,424 $ 174,267 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | Apr. 25, 2022Lesseeaircraft | Feb. 29, 2020USD ($) | Feb. 28, 2022USD ($)financial_institutionsegmentaircraft | Feb. 28, 2021USD ($) | Dec. 31, 2019USD ($) |
Accounting Policies [Abstract] | |||||
Number of Operating Segments | segment | 1 | ||||
Property, Plant and Equipment [Line Items] | |||||
Number of Major Financial Institutions | financial_institution | 3 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ | $ 15,354 | $ 26,001 | $ 33,536 | $ 45,532 | |
Revenues | $ | $ 197,648 | $ 769,787 | $ 832,288 | $ 917,938 | |
Number of Airlines | aircraft | 9 | ||||
Number of Aircraft in Fleet Having a Floating-rate Lease Rental | 100.00% | ||||
Percentage of Interest Expense Derived from Floating-rate Debt | 4.00% | ||||
Subsequent Event | |||||
Property, Plant and Equipment [Line Items] | |||||
Number Of Customers Entering Bankruptcy | Lessee | 4 | ||||
Number of Aircrafts Leased to Bankrupt Customers | aircraft | 18 | ||||
Passenger Aircraft | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 25 years | ||||
Estimated residual value | 15.00% | ||||
Freighter Aircraft | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 30 years | ||||
Estimated residual value | 5.00% | ||||
Freighter Aircraft | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful life | 35 years | ||||
Estimated residual value | 10.00% | ||||
Flight Equipment | Property Subject to Operating Lease | Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Operating Leases, Term of Contract | 3 years | ||||
Flight Equipment | Property Subject to Operating Lease | Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Operating Leases, Term of Contract | 7 years |
Update on COVID-19 Pandemic a_2
Update on COVID-19 Pandemic and Russian Invasion of Ukraine - COVID-19 Pandemic (Details) $ in Thousands | Apr. 25, 2022Lesseeaircraft | Feb. 29, 2020USD ($) | Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($) | Dec. 31, 2019USD ($) |
Unusual or Infrequent Item, or Both [Line Items] | |||||
IATA estimated percentage of normal air traffic | 55.00% | ||||
Deferred Rent Receivables, Net | $ 55,478 | $ 69,103 | |||
Number of Airlines | aircraft | 9 | ||||
Percentage of Total Deferrals that have been Agreed to as Part of Broader Lease Restructurings | 93.00% | ||||
Other | $ (94) | $ 57,682 | $ (191) | $ (4,492) | |
Claims Received | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Other | $ 55,213 | ||||
Customers in Bankruptcy Proceedings | LATAM | Total wide-body and narrow body | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number of aircraft leased to bankrupt customer (LATAM) | 13 | ||||
Customers in Bankruptcy Proceedings | Leased Assets | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 12.00% | ||||
Customers in Bankruptcy Proceedings | Leased Assets | Customer Concentration Risk | LATAM | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 7.00% | ||||
Customers in Bankruptcy Proceedings | Lease Revenue | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 9.00% | ||||
Customers in Bankruptcy Proceedings | Lease Revenue | Customer Concentration Risk | LATAM | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 8.00% | ||||
Subsequent Event | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number Of Customers Entering Bankruptcy | Lessee | 4 | ||||
Number of Aircrafts Leased to Bankrupt Customers | aircraft | 18 | ||||
Weighted Average | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Average Repayment Term for Outstanding Deferred Rent Receivables | 7 years |
Update on COVID-19 Pandemic a_3
Update on COVID-19 Pandemic and Russian Invasion of Ukraine - Russian Invasion of Ukraine (Details) $ in Thousands | Apr. 25, 2022 | Feb. 24, 2022USD ($)aircraft | Feb. 28, 2022USD ($) | Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($) |
Unusual or Infrequent Item, or Both [Line Items] | |||||
Net Book Value | $ | $ 6,313,950 | $ 6,313,950 | $ 6,492,471 | ||
Russian Invasion of Ukraine | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Net Impairment charge | $ | $ 251,878 | ||||
Customers in Bankruptcy Proceedings | Leased Assets | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 12.00% | ||||
Customers in Bankruptcy Proceedings | Lease Revenue | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 9.00% | ||||
Customers Leasing Aircraft in Russia and Ukraine | Leased Assets | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 6.00% | ||||
Customers Leasing Aircraft in Russia and Ukraine | Lease Revenue | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 7.00% | ||||
Customers Leasing Aircraft in Russia and Ukraine | Russian Invasion of Ukraine | Leased Assets | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 1.00% | ||||
Total narrow-body, wide-body and freighter aircraft | Russian Invasion of Ukraine | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number of Aircraft Impaired Due to Russian Invasion of Ukraine | 13 | ||||
LATAM | Customers in Bankruptcy Proceedings | Leased Assets | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 7.00% | ||||
LATAM | Customers in Bankruptcy Proceedings | Lease Revenue | Customer Concentration Risk | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Percentage of geographic concentration | 8.00% | ||||
Subsequent Event | Maximum | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Site Contingency, Loss Exposure Not Accrued, Third Party Recovery Commentary | 350,000 | ||||
RUSSIAN FEDERATION | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number of Aircraft on Lease with Russian Airlines | 12 | ||||
Number of Airlines with Aircraft on Lease in Russia | 6 | 6 | |||
Basic lease rentals per month | $ | 3,488 | ||||
Letters of Credit Outstanding, Amount | $ | $ 49,502 | $ 49,502 | |||
RUSSIAN FEDERATION | Aircraft Repossessed | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number of Aircraft on Lease with Russian Airlines | 2 | ||||
RUSSIAN FEDERATION | Aircraft Remaining in Country of Base Operations | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number of Aircraft on Lease with Russian Airlines | 9 | ||||
RUSSIAN FEDERATION | Aircraft Outside Country of Base Operations | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number of Aircraft on Lease with Russian Airlines | 1 | ||||
RUSSIAN FEDERATION | Aircraft not yet Repossessed | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number of Aircraft on Lease with Russian Airlines | 10 | ||||
Net Book Value | $ | $ 314,127 | ||||
UKRAINE | |||||
Unusual or Infrequent Item, or Both [Line Items] | |||||
Number of Aircraft on Lease with Ukrainian Airlines | 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Liabilities: | ||||
Impairment of flight equipment | $ 62,657 | $ 452,250 | $ 425,579 | $ 7,404 |
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||||
Assets: | ||||
Cash and cash equivalents | 167,891 | 578,004 | ||
Restricted cash and cash equivalents | 2,791 | 2,594 | ||
Total | 170,682 | 580,598 | ||
Recurring | Significant Other Observable Inputs (Level 2) | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Total | 0 | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | ||||
Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Restricted cash and cash equivalents | 0 | 0 | ||
Total | 0 | 0 | ||
Estimate of Fair Value Measurement | Recurring | ||||
Assets: | ||||
Cash and cash equivalents | 167,891 | 578,004 | ||
Restricted cash and cash equivalents | 2,791 | 2,594 | ||
Total | $ 170,682 | $ 580,598 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - Recurring - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 167,891 | $ 578,004 |
Restricted cash and cash equivalents | 2,791 | 2,594 |
Assets, Fair Value Disclosure | 170,682 | 580,598 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Assets, Fair Value Disclosure | 0 | 0 |
Estimate of Fair Value Measurement | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Cash and Cash Equivalents, Fair Value Disclosure | 167,891 | 578,004 |
Restricted cash and cash equivalents | 2,791 | 2,594 |
Assets, Fair Value Disclosure | $ 170,682 | $ 580,598 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | DBJ Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 155,000 | $ 215,000 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | ECA Term Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 21,576 | 36,423 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Bank Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 666,258 | 738,353 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | DBJ Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 152,195 | 210,290 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ECA Term Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 21,931 | 37,942 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Bank Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 675,667 | 740,086 |
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Level 1) | Reported Value Measurement | Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 20,000 | 0 |
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Level 1) | Reported Value Measurement | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 3,700,000 | 4,200,000 |
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 3,776,997 | $ 4,402,722 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value Measurements (Details 4) (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of flight equipment | $ 62,657 | $ 452,250 | $ 425,579 | $ 7,404 |
Transactional | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of flight equipment | 107,705 | $ 378,247 | ||
Impairments not Related to Russian Invasion of Ukraine | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of flight equipment | $ 110,926 |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details Textual) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020USD ($) | Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($)aircraft | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | |||
Net Book Value | 6,313,950 | $ 6,492,471 | ||
Asset Impairment Charges | $ 62,657 | 452,250 | 425,579 | $ 7,404 |
Gain (Loss) on Disposition of Property Plant Equipment | $ 15,354 | $ 26,001 | 33,536 | $ 45,532 |
Transactional | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Impaired Aircraft | aircraft | 7 | |||
Asset Impairment Charges | $ 107,705 | $ 378,247 | ||
Transactional | Narrow-body | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Impaired Aircraft | aircraft | 6 | 17 | ||
Transactional | wide-body | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Impaired Aircraft | aircraft | 8 | |||
Transactional | Total wide-body and narrow body | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Impaired Aircraft | aircraft | 25 | |||
Transactional | Wide-body | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Impaired Aircraft | aircraft | 1 | |||
Fleet Review [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset Impairment Charges | $ 0 | |||
Russian Invasion of Ukraine | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Asset Impairment Charges | $ 341,324 | |||
Russian Invasion of Ukraine | Narrow-body | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Aircraft Impaired Due to Russian Invasion of Ukraine | aircraft | 10 | |||
Russian Invasion of Ukraine | Wide-body | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Aircraft Impaired Due to Russian Invasion of Ukraine | aircraft | 1 | |||
Russian Invasion of Ukraine | Freighter Aircraft | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Aircraft Impaired Due to Russian Invasion of Ukraine | aircraft | 2 | |||
Russian Invasion of Ukraine | Total narrow-body, wide-body and freighter aircraft | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Number of Aircraft Impaired Due to Russian Invasion of Ukraine | aircraft | 13 | |||
Maintenance and Security Deposit | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue from contract with customer | $ 61,414 | |||
Maintenance and Security Deposit | Transactional | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue from contract with customer | $ 157,014 | |||
Lease Rentals Received in Advance, Maintenance, Security Deposit and Other Revenue | Russian Invasion of Ukraine | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue from contract with customer | $ 89,446 |
Lease Rental Revenues and Fli_3
Lease Rental Revenues and Flight Equipment Held for Lease (Details) $ in Thousands | Feb. 28, 2022USD ($) |
Annual future minimum lease rentals receivable | |
2023 | $ 575,556 |
2024 | 539,694 |
2025 | 426,826 |
2026 | 300,320 |
2027 | 249,832 |
Thereafter | 714,534 |
Total | $ 2,806,762 |
Lease Rental Revenues and Fli_4
Lease Rental Revenues and Flight Equipment Held for Lease (Details 1) - aircraft | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 251 | 252 | ||
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 98 | 79 | ||
Asia and Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 71 | 92 | ||
North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 36 | 28 | ||
Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 10 | 11 | ||
South America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 25 | 26 | ||
Off Lease [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 11 | 16 | ||
Lease Revenue | Geographic Concentration Risk | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 100.00% | 100.00% | 100.00% | 100.00% |
Lease Revenue | Geographic Concentration Risk | Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 26.00% | 36.00% | 31.00% | 27.00% |
Lease Revenue | Geographic Concentration Risk | Asia and Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 43.00% | 29.00% | 40.00% | 43.00% |
Lease Revenue | Geographic Concentration Risk | North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 11.00% | 15.00% | 12.00% | 9.00% |
Lease Revenue | Geographic Concentration Risk | Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 7.00% | 5.00% | 6.00% | 10.00% |
Lease Revenue | Geographic Concentration Risk | South America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 13.00% | 15.00% | 11.00% | 11.00% |
Lease Rental Revenues and Fli_5
Lease Rental Revenues and Flight Equipment Held for Lease (Details 3) $ in Thousands | Feb. 24, 2022 | Feb. 29, 2020USD ($)Lessee | Feb. 28, 2022USD ($)Lessee | Feb. 28, 2021USD ($)Lessee | Dec. 31, 2019USD ($)Lessee |
Revenue from External Customer [Line Items] | |||||
Operating Lease, Lease Income | $ 131,119 | $ 595,236 | $ 611,421 | $ 777,403 | |
Net Book Value | 6,313,950 | 6,492,471 | |||
INDIA | |||||
Revenue from External Customer [Line Items] | |||||
Operating Lease, Lease Income | 82,246 | ||||
Net Book Value | 670,523 | $ 756,514 | |||
INDIA | Maintenance revenue | |||||
Revenue from External Customer [Line Items] | |||||
Revenue from contract with customer | 6,141 | ||||
RUSSIAN FEDERATION | |||||
Revenue from External Customer [Line Items] | |||||
Operating Lease, Lease Income | 129,703 | ||||
RUSSIAN FEDERATION | Maintenance revenue | |||||
Revenue from External Customer [Line Items] | |||||
Revenue from contract with customer | $ 89,446 | ||||
Geographic Concentration Risk | Lease Revenue | |||||
Revenue from External Customer [Line Items] | |||||
Percentage of geographic concentration | 100.00% | 100.00% | 100.00% | 100.00% | |
Geographic Concentration Risk | Total Revenue | INDIA | |||||
Revenue from External Customer [Line Items] | |||||
Percentage of geographic concentration | 11.00% | 12.00% | 13.00% | ||
Geographic Concentration Risk | Total Revenue | RUSSIAN FEDERATION | |||||
Revenue from External Customer [Line Items] | |||||
Percentage of geographic concentration | 17.00% | ||||
Geographic Concentration Risk | Leased Assets | |||||
Revenue from External Customer [Line Items] | |||||
Percentage of geographic concentration | 100.00% | 100.00% | |||
Major Customer Group One | |||||
Revenue from External Customer [Line Items] | |||||
Concentration Risk, Number of Customers in Major Customer Group | Lessee | 3 | 6 | 4 | 2 | |
Major Customer Group One | RUSSIAN FEDERATION | |||||
Revenue from External Customer [Line Items] | |||||
Concentration Risk, Number of Customers in Major Customer Group | Lessee | 1 | ||||
Major Customer Group One | Customer Concentration Risk | Lease Revenue | |||||
Revenue from External Customer [Line Items] | |||||
Percentage of geographic concentration | 21.00% | 38.00% | 30.00% | 16.00% | |
Major Customer Group One | Customer Concentration Risk | Lease Revenue | RUSSIAN FEDERATION | |||||
Revenue from External Customer [Line Items] | |||||
Percentage of geographic concentration | 2.00% | 5.00% |
Lease Rental Revenues and Fli_6
Lease Rental Revenues and Flight Equipment Held for Lease (Details 4) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($)aircraft | Apr. 25, 2022aircraft | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net Book Value | $ | $ 6,313,950 | $ 6,492,471 | |
Number of Aircraft | 251 | 252 | |
Wide-body | Subsequent Event | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Offlease Aircraft Marketed for Lease | 3 | ||
Wide-body | Subsequent Event | Number of Offlease Aircraft Marketed for Lease from Prior Year | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Offlease Aircraft Marketed for Lease | 1 | ||
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 98 | 79 | |
Asia and Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 71 | 92 | |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 36 | 28 | |
South America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 25 | 26 | |
Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 10 | 11 | |
Off-lease | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 11 | 16 | |
Geographic Concentration Risk | Leased Assets | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 100.00% | 100.00% | |
Geographic Concentration Risk | Leased Assets | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 30.00% | 27.00% | |
Geographic Concentration Risk | Leased Assets | Asia and Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 32.00% | 37.00% | |
Geographic Concentration Risk | Leased Assets | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 17.00% | 12.00% | |
Geographic Concentration Risk | Leased Assets | South America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 13.00% | 13.00% | |
Geographic Concentration Risk | Leased Assets | Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 4.00% | 4.00% | |
Geographic Concentration Risk | Leased Assets | Off-lease | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 4.00% | 7.00% |
Lease Rental Revenues and Fli_7
Lease Rental Revenues and Flight Equipment Held for Lease Lease Rental Revenues and Flight Equipment Held for Lease (Details 5) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022USD ($)Lessee | Feb. 28, 2021USD ($)Lessee | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Flight equipment held for lease, net of accumulated depreciation of $2,766,429 and $2,076,972, respectively | $ 6,313,950 | $ 6,492,471 |
INDIA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Flight equipment held for lease, net of accumulated depreciation of $2,766,429 and $2,076,972, respectively | $ 670,523 | $ 756,514 |
property subject to or available for operating lease, net (percentage) | 10.00% | 11.00% |
number of lessees | Lessee | 3 | 3 |
Lease Rental Revenues and Fli_8
Lease Rental Revenues and Flight Equipment Held for Lease (Details Textual) $ in Thousands | Feb. 24, 2022aircraft | Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($) |
RUSSIAN FEDERATION | |||
Capital Leased Assets [Line Items] | |||
Number of Airlines with Aircraft on Lease in Russia | aircraft | 6 | 6 | |
RUSSIAN FEDERATION | Lease Rentals Received in Advance | |||
Capital Leased Assets [Line Items] | |||
Revenue from contract with customer | $ 17,194 | ||
Maintenance Payments | |||
Capital Leased Assets [Line Items] | |||
Incentive to Lessee | $ 16,481 | $ 14,673 |
Net Investment in Finance Lea_2
Net Investment in Finance Leases Narrative (Details) $ in Thousands | 12 Months Ended | |
Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($)aircraft | |
Capital Leased Assets [Line Items] | ||
Allowance for Loan and Lease Losses, Write-offs | $ | $ (30) | $ (10,952) |
Number of Finance Leased Aircraft Sold | 5 | |
Finance Leased Assets, Number of Units | 11 | 15 |
Net Investment in Finance Lea_3
Net Investment in Finance Leases (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Leases [Abstract] | ||||
Lease receivable | $ 52,021 | $ 67,075 | ||
Unguaranteed residual value of flight equipment | 100,068 | 129,165 | ||
Net investment leases | 152,089 | 196,240 | ||
Direct Financing Lease, Net Investment in Lease, Allowance for Credit Loss | (1,764) | (864) | ||
Net investment in leases, net of allowance | 150,325 | 195,376 | ||
Direct Financing Lease, Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit loss | $ 6,558 | 1,764 | 864 | |
Provision for Loan and Lease Losses | 288 | 930 | 5,258 | $ 0 |
Allowance for Loan and Lease Losses, Write-offs | (30) | (10,952) | ||
Ending balance | $ 6,558 | $ 1,764 | $ 864 |
Net Investment in Finance Lea_4
Net Investment in Finance Leases (Details 1) $ in Thousands | Feb. 28, 2022USD ($) |
Leases [Abstract] | |
2023 | $ 13,700 |
2024 | 9,539 |
2025 | 8,609 |
2026 | 7,680 |
2027 | 7,392 |
Thereafter | 14,430 |
Total lease payments to be received | 61,350 |
Present value of lease payments - lease receivable | (52,021) |
Lease receivable | $ 9,329 |
Unconsolidated Equity Method _3
Unconsolidated Equity Method Investment (Details) $ in Thousands | Dec. 09, 2021USD ($) | Feb. 29, 2020USD ($) | Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($) | Dec. 31, 2019USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||
Net Book Value | $ 6,313,950 | $ 6,492,471 | |||
Total number of aircraft owned by joint ventures | aircraft | 9 | ||||
Proceeds from Equity Method Investment, Distribution, Return of Capital | $ 0 | $ (104) | (419) | $ (36,750) | |
Borrowings from unsecured financings, net of debt issuance costs | 3,835,841 | 4,366,261 | |||
Unsecured Debt | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Borrowings from unsecured financings, net of debt issuance costs | 3,835,841 | $ 4,366,261 | |||
Mizuho Leasing (2021) Unsecured Loan Facility (JV) | Unsecured Debt | Corporate Joint Venture | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Borrowings from unsecured financings, net of debt issuance costs | $ 1,500 | ||||
Mizuho Marubeni Leasing America Corporation (2021) Unsecured Revolving Credit Facility | Line of Credit | Corporate Joint Venture | London Interbank Offered Rate (LIBOR) [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest Rate on any Advances | 2.00% | ||||
Equity Method Investee | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Net Book Value | $ 298,473 |
Borrowings from Secured and U_3
Borrowings from Secured and Unsecured Debt Financings (Details) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022USD ($)aircraft | Jul. 30, 2021 | Feb. 28, 2021USD ($) | |
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 3,835,841 | $ 4,366,261 | |
Borrowings from secured financings, net of debt issuance costs | $ 684,039 | 768,850 | |
Number of Aircraft Financed | aircraft | 32 | ||
Long-term Debt | $ 4,519,880 | 5,135,111 | |
Debt, Weighted Average Interest Rate | 3.23% | ||
Secured Debt | |||
Debt Instrument [Line Items] | |||
Borrowings from secured financings, net of debt issuance costs | $ 684,039 | 768,850 | |
Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | 20,000 | 0 | |
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | 3,835,841 | 4,366,261 | |
Senior 4.40% Notes due 2023 [Member] | Senior Notes | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 650,000 | 650,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | ||
Senior Notes Due 2024 [Member] | Senior Notes | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | ||
DBJ Term Loan | Term Loan | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 155,000 | 215,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.753% | ||
Senior Notes Due 2022 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 0 | 500,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |
Unsecured Debt | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ (39,159) | (48,739) | |
ECA Term Financings | Notes Payable, Other Payables | |||
Debt Instrument [Line Items] | |||
Borrowings from secured financings, net of debt issuance costs | $ 21,576 | 36,423 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.49% | ||
Number of Aircraft Financed | aircraft | 1 | ||
Bank Financings | Notes Payable, Other Payables | |||
Debt Instrument [Line Items] | |||
Debt, Weighted Average Interest Rate | 3.23% | ||
Bank Financings | Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Borrowings from secured financings, net of debt issuance costs | $ 666,258 | 738,353 | |
Number of Aircraft Financed | aircraft | 31 | ||
Secured Debt | |||
Debt Instrument [Line Items] | |||
Unamortized Debt Issuance Expense | $ (3,795) | (5,926) | |
Senior Notes Due 2023 [Member] | Senior Notes | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | ||
Senior Notes Due 2025 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 650,000 | 650,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||
Senior Notes Due 2026 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 650,000 | 650,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||
Senior Notes Due 2028 | Senior Notes | |||
Debt Instrument [Line Items] | |||
Borrowings from unsecured financings, net of debt issuance costs | $ 750,000 | $ 750,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.85% | ||
Minimum | Revolving Credit Facility | Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 1.63% | ||
Minimum | Bank Financings | Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 2.25% | ||
Maximum | Revolving Credit Facility | Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 2.25% | ||
Maximum | Bank Financings | Notes Payable to Banks | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate During Period | 4.55% |
Borrowings from Secured and U_4
Borrowings from Secured and Unsecured Debt Financings (Details 1) $ in Thousands | Feb. 28, 2022USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 81,611 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two | 1,552,698 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | 800,859 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | 727,666 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 650,000 |
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 750,000 |
Total | $ 4,562,834 |
Borrowings from Secured and U_5
Borrowings from Secured and Unsecured Debt Financings (Details Textual) | Feb. 18, 2022USD ($) | Dec. 06, 2021USD ($) | Jul. 30, 2021USD ($) | Feb. 29, 2020USD ($) | Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($)aircraft | Dec. 31, 2019USD ($) | Apr. 26, 2021USD ($) | Apr. 25, 2021USD ($) | Apr. 01, 2021USD ($) |
Debt Instrument [Line Items] | ||||||||||
Repayments of Long-term Debt | $ 268,799,000 | $ 646,943,000 | $ 1,697,662,000 | $ 1,817,558,000 | ||||||
Number of Aircraft | aircraft | 251 | 252 | ||||||||
Net Book Value | $ 6,313,950,000 | $ 6,492,471,000 | ||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 3,835,841,000 | 4,366,261,000 | ||||||||
Debt, Weighted Average Interest Rate | 3.23% | |||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,360,000,000 | |||||||||
Payment for Debt Extinguishment or Debt Prepayment Cost | $ 2,685,000 | 13,372,000 | 1,524,000 | $ 7,183,000 | ||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 20,000,000 | 0 | ||||||||
ECA Term Financings | Notes Payable, Other Payables | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 3.49% | |||||||||
Bank Financings | Notes Payable, Other Payables | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Weighted Average Interest Rate | 3.23% | |||||||||
Senior 4.40% Notes due 2023 [Member] | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.40% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 650,000,000 | 650,000,000 | ||||||||
Senior Notes Due 2024 [Member] | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.125% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000,000 | 500,000,000 | ||||||||
Senior Notes Due 2023 [Member] | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000,000 | 500,000,000 | ||||||||
Senior Notes Due 2025 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 650,000,000 | 650,000,000 | ||||||||
Senior Notes Due 2028 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.85% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 750,000,000 | 750,000,000 | ||||||||
Mizuho Bank Ltd. (2020) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 50,000,000 | |||||||||
Line of Credit Facility, Previous Borrowing Capacity | $ 150,000,000 | |||||||||
2016 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | 1,000,000,000 | |||||||||
Individual Debt Instrument at Time of Issuance Part of Overall Portfolio of Revolving Credit Facilities | 1 | |||||||||
Line of Credit Facility, Previous Borrowing Capacity | $ 800,000,000 | |||||||||
2016 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Mizuho | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity for $100,000 Commitment by Mizuho Maturing on April 26, 2025 | 100,000,000 | |||||||||
2016 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | April 26, 2025 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | 900,000,000 | |||||||||
2016 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | June 27, 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100,000,000 | |||||||||
DBJ Term Loan | Notes Payable to Banks | Debt Tranche A | Floating Rate Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount - Tranche A | $ 60,000,000 | |||||||||
DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | 365,000,000 | |||||||||
Individual Debt Instrument at Time of Issuance Part of Overall Portfolio of Revolving Credit Facilities | 1 | |||||||||
Number of debt tranches | 2 | |||||||||
Line of Credit Facility, Previous Borrowing Capacity | $ 300,000,000 | |||||||||
DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Tranche A ($155mm) - DBS Revolving Credit Facility (Expansion) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | 135,000,000 | |||||||||
DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Tranche B ($175mm) - DBS Revolving Credit Facility (Expansion) | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | 230,000,000 | |||||||||
Mizuho Marubeni Leasing America Corporation (2021) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity for $100,000 Commitment by Mizuho Maturing on April 26, 2025 | $ 20,000,000 | |||||||||
Mizuho Marubeni Leasing America Corporation (2021) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Mizuho Marubeni Leasing America Corporation Senior Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 20,000,000 | |||||||||
Mizuho Marubeni Leasing America Corporation (2021) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Mizuho Marubeni Leasing America Corporation Senior Unsecured Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 100,000,000 | |||||||||
Senior Notes Due 2022 | Senior Notes | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | ||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 0 | $ 500,000,000 | ||||||||
Unsecured Debt, Current | $ 500,000,000 | |||||||||
Debt Instrument, Increase, Accrued Interest | 12,604,000 | |||||||||
Debt Instrument, Call Premium | $ 13,314,000 | |||||||||
London Interbank Offered Rate (LIBOR) [Member] | Mizuho Marubeni Leasing America Corporation (2021) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest Rate on any Advances | 1.625% |
Shareholders' Equity and Shar_2
Shareholders' Equity and Share Based Payment Shareholders' Equity and Share Based Payment (Details Textual) (Details) - USD ($) | Jun. 08, 2021 | Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | Mar. 27, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Non-cash share-based payment expense | $ 10,678,000 | $ 0 | $ 28,049,000 | $ 15,830,000 | ||
Payments for Unvested equity based instruments on Merger Date | $ 25,536,000 | |||||
Preferred Stock, Shares Issued | 400,000 | 0 | ||||
Preferred Stock, Liquidation Preference, Value | $ 400,000 | |||||
Series A Preferred Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Preferred Stock Dividend Payment Percentage Term | 5 years | |||||
Period of time (in days) before reset date where redemption of preferred shares is not allowed | 90 days | |||||
Preferred Stock, Shares Issued | 400 | |||||
Preferred Stock, Liquidation Preference, Value | $ 1,000,000 | |||||
Preferred Stock, Redemption Price Per Share | $ 1,000 | |||||
Preferred Stock Dividend Payment Spread on Variable Rate for 2046 Reset Date | 5.41% | |||||
Preferred Stock Dividend Payment Spread on Variable Rate | 4.41% | |||||
Preferred Stock, Dividend Rate, Percentage | 5.25% | |||||
Preferred Stock Dividend Payment Spread on Variable Rate for 2031 Reset Date | 4.66% |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2022 | Dec. 06, 2021 | Apr. 26, 2021 | |
Revolving Credit Facility | Mizuho Bank Ltd. (2020) Unsecured Revolving Credit Facility | Line of Credit | |||
Related Party Transaction [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 50,000 | ||
Marubeni Service Agreement | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 5,048 | ||
Mizuho Marubeni Leasing America Corporation Senior Unsecured Revolving Credit Facility | Revolving Credit Facility | Mizuho Marubeni Leasing America Corporation (2021) Unsecured Revolving Credit Facility | Line of Credit | |||
Related Party Transaction [Line Items] | |||
Line of Credit Facility, Current Borrowing Capacity | $ 100,000 | ||
Marubeni Affiliate Parts Management Services and Supply Agreement | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 5,857 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Sources of income from continuing operations before income taxes | ||||
U.S. operations | $ 3,084 | $ 20,803 | $ 31,848 | $ 9,085 |
Non-U.S. operations | 1,754 | (310,054) | (357,106) | 166,055 |
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | $ 4,838 | $ (289,251) | $ (325,258) | $ 175,140 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Current: | ||||
Federal | $ 6 | $ 247 | $ (1,232) | $ 782 |
State | 0 | 161 | 121 | 437 |
Non-U.S. | 217 | 980 | 4,842 | 1,225 |
Current income tax provision | 223 | 1,388 | 3,731 | 2,444 |
Deferred: | ||||
Federal | 1,578 | 5,206 | 3,150 | 7,205 |
State | 561 | 1,593 | 1,598 | 2,018 |
Non-U.S. | (687) | (16,185) | 1,757 | 11,000 |
Deferred income tax (benefit) | 1,452 | (9,386) | 6,505 | 20,223 |
Total | $ 1,675 | $ (7,998) | $ 10,236 | $ 22,667 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 | Feb. 29, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||||
Non-cash share-based payments | $ 0 | $ 0 | $ 215 | $ 614 |
Net operating loss carry forwards | 117,448 | 95,462 | 74,045 | 69,806 |
Other | 34,955 | 37,612 | 54,259 | 72,732 |
Total deferred tax assets | 152,403 | 133,074 | 128,519 | 143,152 |
Deferred tax liabilities: | ||||
Accelerated depreciation | (189,083) | (170,382) | (140,363) | (136,268) |
Other | (28,873) | (37,179) | (53,448) | (70,551) |
Total deferred tax liabilities | 217,956 | 207,561 | 193,811 | 206,819 |
Deferred Tax Liabilities, Net | $ (65,553) | $ (74,487) | $ (65,292) | $ (63,667) |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Income Tax Statutory Rate [Line Items] | ||||
Deferred Income Tax Expense (Benefit) | $ 1,452 | $ (9,386) | $ 6,505 | $ 20,223 |
Analysis of effective income tax rate for continuing operations | ||||
U.S. state and local income tax, net | 1,016 | (60,742) | (68,304) | 36,779 |
Non-deductible expenses in the U.S. | 734 | 16 | (1,904) | 3,581 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 0 | 71 | (4,708) | 339 |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 390 | 1,237 | 1,723 | 1,549 |
Income tax provision (benefit) | 1,675 | (7,998) | 10,236 | 22,667 |
Bermuda | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (1,845) | 27,751 | 82,190 | (16,950) |
Ireland | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (1,147) | 23,510 | 1,545 | (99) |
SINGAPORE | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (6) | 174 | 75 | (28) |
Other low tax jurisdictions | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | $ 2,533 | $ (15) | $ (381) | $ (2,504) |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) $ in Thousands | Feb. 28, 2022USD ($) |
Operating Loss Carryforwards [Line Items] | |
Undistributed Earnings of Foreign Subsidiaries | $ 40,041 |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 2,002 |
Foreign Tax Authority | UNITED STATES | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 102,435 |
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration | 35,510 |
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration | 66,925 |
Foreign Tax Authority | Irish, Mauritius and Singapore | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 729,749 |
Interest, Net (Details)
Interest, Net (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020 | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 | |
Interest Income (Expense), Net [Abstract] | ||||
Interest on borrowings and other liabilities | $ 38,915 | $ 200,220 | $ 221,246 | $ 245,673 |
Amortization of deferred losses related to interest rate derivatives | 0 | 0 | 0 | 184 |
Amortization of deferred financing costs | 2,446 | 16,267 | 14,791 | 14,578 |
Interest Expense | 41,361 | 216,487 | 236,037 | 260,435 |
Less: Interest income | (323) | (1,209) | (523) | (2,365) |
Interest Costs Capitalized | 0 | (926) | (176) | 0 |
Interest, net | $ 41,038 | $ 214,352 | $ 235,338 | $ 258,070 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies (Details Textual) $ in Thousands | 2 Months Ended | 12 Months Ended | ||
Feb. 29, 2020USD ($) | Feb. 28, 2022USD ($)aircraft | Feb. 28, 2021USD ($) | Dec. 31, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | ||||
Unrecorded Unconditional Purchase Obligation | $ | $ 819,273 | |||
Total number of aircraft owned by joint ventures | aircraft | 9 | |||
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | aircraft | 23 | |||
Operating Lease, Cost | $ | $ 278 | $ 1,621 | $ 1,626 | $ 1,601 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Feb. 28, 2022USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2023 | $ 1,768 |
2024 | 1,702 |
2025 | 1,733 |
2026 | 1,764 |
2027 | 1,795 |
Thereafter | 2,561 |
Total | $ 11,323 |
Commitments and Contingencies_3
Commitments and Contingencies Commitments and Contingencies Details 1 (Details) $ in Thousands | Feb. 28, 2022USD ($)aircraft |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase Obligation | $ 819,273 |
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year | 462,452 |
Purchase Obligation, Due in Second Year | 171,258 |
Purchase Obligation, Due in Fourth Year | 0 |
Purchase Obligation, Due in Fifth Year | 0 |
Purchase Obligation, Due after Fifth Year | 0 |
Purchase Obligation, Due in Third Year | $ 185,563 |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | aircraft | 23 |
Pre-Delivery Payments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase Obligation | $ 76,675 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 |
Deferred federal income tax asset | $ 570 | $ 637 |
Lease incentives and premiums, net of accumulated amortization of $81,553 and $75,126, respectively | 53,513 | 75,169 |
Flight equipment held for sale | 77,636 | 53,289 |
Deposits on Flight Equipment | 56,157 | 52,092 |
Operating Lease, Right-of-Use Asset | 7,176 | 8,056 |
Deferred Rent Receivables, Net | 55,478 | 69,103 |
Other assets | 105,796 | 53,598 |
Total other assets | 356,326 | 311,944 |
Amortization of lease incentives and lease premiums | $ 81,553 | $ 75,126 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total other assets | Total other assets |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Feb. 28, 2022 | Feb. 28, 2021 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | |||
Accounts payable and accrued expenses | $ 58,882 | $ 43,088 | |
Deferred Tax Liabilities, Net | 66,123 | 75,124 | |
Accrued interest payable | 42,013 | 43,676 | |
Operating Lease, Liability | 9,846 | 11,003 | |
Lease Discount Accrued, After Accumulated Amortization | 560 | 1,376 | |
Total accounts payable, accrued expenses and other liabilities | 177,424 | 174,267 | |
Lease Discount, Accumulated Amortization | $ 45,546 | $ 44,887 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Total accounts payable, accrued expenses and other liabilities | Total accounts payable, accrued expenses and other liabilities | Total accounts payable, accrued expenses and other liabilities |
Uncategorized Items - ayr-20220
Label | Element | Value |
Shares canceled at Merger Date, value | ayr_SharescanceledatMergerDatevalue | $ 0 |
Dividends, Preferred Stock | us-gaap_DividendsPreferredStock | 5,658,000 |
Dividends, Preferred Stock | us-gaap_DividendsPreferredStock | $ 10,500,000 |
Shares Canceled at Merger Date | ayr_SharesCanceledatMergerDate | 74,960,937 |
Common Stock [Member] | ||
Shares canceled at Merger Date, value | ayr_SharescanceledatMergerDatevalue | $ (750,000) |
Payments for Unvested equity based instruments on Merger Date | ayr_PaymentsforUnvestedequitybasedinstrumentsonMergerDate | 1,000 |
Additional Paid-in Capital [Member] | ||
Shares canceled at Merger Date, value | ayr_SharescanceledatMergerDatevalue | 750,000 |
Proceeds from Contributions from Parent | us-gaap_ProceedsFromContributionsFromParent | 25,536,000 |
Payments for Unvested equity based instruments on Merger Date | ayr_PaymentsforUnvestedequitybasedinstrumentsonMergerDate | $ 25,535,000 |
Restricted Stock Awards [Member] | ||
Number of non-vested equity instruments purchased on Merger Date | ayr_NumberofnonvestedequityinstrumentspurchasedonMergerDate | 101,809 |