Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2023 | Apr. 18, 2023 | Aug. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Feb. 28, 2023 | ||
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 | 2022 | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
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 | ||
No Trading Symbol Flag | true | ||
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 $0.01 per share | ||
No Trading Symbol Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Feb. 28, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Stamford, CT |
Auditor Firm ID | 42 |
Entity Voluntary Filers | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Feb. 28, 2023 | Feb. 28, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 231,861 | $ 167,891 |
Restricted Cash and Cash Equivalents | 0 | 2,791 |
Accounts receivable | 12,855 | 63,666 |
Flight equipment held for lease, net | 6,567,606 | 6,313,950 |
Net investment in leases, net | 67,694 | 150,325 |
Unconsolidated equity method investment | 40,505 | 38,317 |
Other assets | 346,330 | 356,326 |
Total assets | 7,266,851 | 7,093,266 |
LIABILITIES | ||
Borrowings from secured financings, net of debt issuance costs | 752,298 | 684,039 |
Borrowings from unsecured financings, net of debt issuance costs | 3,842,454 | 3,835,841 |
Accounts payable, accrued expenses and other liabilities | 206,473 | 177,424 |
Lease rentals received in advance | 66,816 | 37,361 |
Security deposits | 61,734 | 69,189 |
Maintenance payments | 465,618 | 459,713 |
Total liabilities | 5,395,393 | 5,263,567 |
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, 2023 and 2022 | 0 | 0 |
Common shares, $0.01 par value, 250,000,000 shares authorized, 14,048 shares issued and outstanding at February 28, 2023 and 2022 | 0 | 0 |
Additional paid-in capital | 1,878,774 | 1,878,774 |
Accumulated deficit | (7,316) | (49,075) |
Total shareholders’ equity | 1,871,458 | 1,829,699 |
Total liabilities and shareholders’ equity | $ 7,266,851 | $ 7,093,266 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) | Feb. 28, 2023 USD ($) $ / shares shares |
Statement of Financial Position [Abstract] | |
Allowance for credit loss | $ | $ 1,267,000 |
Common shares, par value | $ / shares | $ 0.01 |
Common shares, shares authorized | 250,000,000 |
Common shares, shares issued | 14,048 |
Preference shares, par value | $ / shares | $ 0.01 |
Preference shares, shares authorized | 50,000,000 |
Preference shares, shares issued | 400,000 |
Preferred Stock, Liquidation Preference, Value | $ | $ 400,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Revenues: | |||
Lease rental revenue | $ 586,508 | $ 595,236 | $ 611,421 |
Direct financing and sales-type lease revenue | 9,030 | 10,733 | 18,215 |
Amortization of lease premiums, discounts and incentives | (20,574) | (20,190) | (22,842) |
Maintenance revenue | 138,099 | 152,030 | 172,668 |
Total lease revenue | 713,063 | 737,809 | 779,462 |
Gain on sale of flight equipment | 70,860 | 26,001 | 33,536 |
Other revenue | 12,110 | 5,977 | 19,290 |
Total revenues | 796,033 | 769,787 | 832,288 |
Operating expenses: | |||
Depreciation | 332,663 | 337,528 | 347,517 |
Interest, net | 204,606 | 214,352 | 235,338 |
Selling, general and administrative | 76,857 | 66,338 | 88,413 |
Provision for credit losses | 1,507 | 930 | 5,258 |
Impairment of flight equipment | 85,623 | 452,250 | 425,579 |
Maintenance and other costs | 22,196 | 31,166 | 20,005 |
Total operating expenses | 723,452 | 1,102,564 | 1,122,110 |
Other income (expense): | |||
Loss on extinguishment of debt | (636) | (14,156) | (2,640) |
Merger expenses | 0 | 0 | (32,605) |
Other | 14,092 | 57,682 | (191) |
Total other income (expense) | 13,456 | 43,526 | (35,436) |
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | 86,037 | (289,251) | (325,258) |
Income tax provision (benefit) | 25,466 | (7,998) | 10,236 |
Earnings of unconsolidated equity method investment, net of tax | 2,188 | 3,044 | 2,326 |
Net income (loss) | 62,759 | (278,209) | (333,168) |
Preference share dividends | (21,000) | (16,159) | 0 |
Income from continuing operations available to common shareholders — Basic | 41,759 | (294,368) | (333,168) |
Total comprehensive income | $ 41,759 | $ (294,368) | $ (333,168) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 62,759 | $ (278,209) | $ (333,168) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 332,663 | 337,528 | 347,517 |
Amortization of deferred financing costs | 14,338 | 16,267 | 14,791 |
Amortization of lease premiums, discounts and incentives | 20,574 | 20,190 | 22,842 |
Deferred income taxes | 13,690 | (9,386) | 6,506 |
Non-cash share-based payment expense | 0 | 0 | 28,049 |
Collections on net investments in leases | (6,505) | (14,297) | (16,859) |
Security deposits and maintenance payments included in earnings | (66,194) | (123,969) | (135,115) |
Gain on the sale of flight equipment | (70,860) | (26,001) | (33,536) |
Loss on extinguishment of debt | 636 | 14,156 | 2,640 |
Impairment of flight equipment | 85,623 | 452,250 | 425,579 |
Provision for credit losses | 1,507 | 930 | 5,258 |
Other | (2,211) | (3,043) | (2,305) |
Changes on certain assets and liabilities: | |||
Accounts receivable | 17,338 | 16,948 | (57,292) |
Other assets | (12,510) | (29,963) | (66,290) |
Accounts payable, accrued expenses and other liabilities | 4,278 | (5,716) | (13,655) |
Lease rentals received in advance | 29,601 | (23,414) | (53,658) |
Net Cash and Restricted Cash Provided by (Used in) Operating Activities | 437,737 | 372,865 | 175,022 |
Cash flows from investing activities: | |||
Acquisition and improvement of flight equipment | (994,040) | (795,426) | (145,589) |
Proceeds from sale of flight equipment | 426,454 | 210,718 | 180,342 |
Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales deposits | 28,393 | (202) | (13,024) |
Distributions from unconsolidated equity method investment in excess of earnings | 0 | 104 | 419 |
Other | 1,319 | (1,694) | (676) |
Net cash and restricted cash (used in) provided by investing activities | (537,874) | (586,500) | 21,472 |
Cash flows from financing activities: | |||
Payments for Repurchase of Equity | 0 | 0 | (25,536) |
Proceeds from Contributions from Parent | 0 | 0 | 25,536 |
Proceeds from Issuance of Preferred Stock and Preference Stock | 0 | 392,997 | 0 |
Proceeds from secured and unsecured debt financings | 493,848 | 20,000 | 1,932,943 |
Repayments of secured and unsecured debt financings | (420,372) | (646,943) | (1,697,662) |
Deferred financing costs | (13,242) | (5,339) | (12,832) |
Payment for Debt Extinguishment or Debt Prepayment Cost | (310) | (13,372) | (1,524) |
Security deposits and maintenance payments received | 142,699 | 88,891 | 87,510 |
Security deposits and maintenance payments returned | (20,307) | (26,857) | (71,743) |
Dividends paid | (21,000) | (5,658) | (24,025) |
Net cash and restricted cash provided by (used in) financing activities | 161,316 | (196,281) | 212,667 |
Net increase (decrease) in cash and restricted cash | 61,179 | (409,916) | 409,161 |
Cash and restricted cash at beginning of year | 170,682 | 580,598 | 171,437 |
Cash and restricted cash at end of year | 231,861 | 170,682 | 580,598 |
Cash and Cash Equivalents, at Carrying Value | 231,861 | 167,891 | 578,004 |
Restricted Cash and Cash Equivalents | 0 | 2,791 | 2,594 |
Supplemental disclosures of cash flow information: | |||
Cash paid during the year for interest | 193,283 | 200,922 | 241,011 |
Cash paid during the year for income taxes | 9,511 | 240 | 1,469 |
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 | 50,758 | 12,391 | 70,716 |
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets assumed in asset acquisitions | 10,810 | 21,764 | 29,869 |
Transfers from Flight equipment held for lease to Net investment in direct financing and sales-type leases and Other assets | 1,695 | 57,489 | 90,352 |
Investments, at fair value | $ 10,819 | $ 0 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders’ Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) | Preferred Stock |
Stockholders' Equity Attributable to Parent | $ 2,036,189 | $ 751 | $ 1,456,977 | $ 578,461 | $ 0 |
Common Stock, Shares, Outstanding | 75,076,794 | ||||
Preferred Stock, Shares Outstanding | 0 | ||||
Proceeds from Contributions from Parent | 25,536 | 25,536 | |||
Net income | (333,168) | (333,168) | |||
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | 28,049 | 28,049 | |||
Stockholders' Equity Attributable to Parent | 1,731,070 | $ 0 | 1,485,777 | 245,293 | $ 0 |
Common Stock, Shares, Outstanding | 14,048 | ||||
Preferred Stock, Shares Outstanding | 0 | ||||
Proceeds from Contributions from Parent | 0 | ||||
Stock Issued During Period, Value, New Issues | 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 |
Common Stock, Shares, Outstanding | 14,048 | ||||
Preferred Stock, Shares Outstanding | 400 | ||||
Proceeds from Contributions from Parent | 0 | ||||
Net income | 62,759 | 62,759 | |||
Dividends, Preferred Stock | (21,000) | 21,000 | |||
Stockholders' Equity Attributable to Parent | $ 1,871,458 | $ 0 | $ 1,878,774 | $ (7,316) | $ 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, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Organization 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. The Company is controlled by affiliates of Marubeni Corporation (“Marubeni”) and Mizuho Leasing Company, Limited (“Mizuho Leasing”). Aircastle is a holding company and conducts its business through subsidiaries that are wholly-owned, either directly or indirectly, by Aircastle. Basis of Presentation and Principles of Consolidation The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Aircastle and all its subsidiaries, including any variable interest entity of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We manage and analyze our business and report on 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, 2023 through the date on which the consolidated financial statements included in this Annual Report were issued. 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 early 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 Aircastle considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Virtually all our cash and cash equivalents are held or managed by five 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 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 typically 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 2 in the Notes to 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 recent crises, such as the Russian invasion of Ukraine and the COVID-19 pandemic, 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 continue to focus on aircraft with near-term lease expirations, customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings, 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 leased 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 reevaluated 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 our investments in debt and equity securities on a recurring basis and measure the fair value of our investment in unconsolidated joint venture and aircraft on a non-recurring basis. See Note 3 in the Notes to 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). 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 December 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2022-06 to defer the sunset date of Reference Rate Reform Topic 848 (“ASC 848”). 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 as entities transition away from the LIBOR to alternative reference rates. The standard provides this temporary election through December 31, 2024, and cannot be applied to contract modifications that occur after December 31, 2024. 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, 2023, we have only 1 aircraft in our fleet that has a floating-rate lease rental and for the year ended February 28, 2023, 7% of our interest expense was derived from floating-rate debt which is referenced to LIBOR. We have not adopted ASC 848 and are evaluating the election available to us under the standard. |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Notes) | 12 Months Ended |
Feb. 28, 2023 | |
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 as of February 28, 2023 and 2022, that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets 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, 2023 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Valuation Assets : Cash and cash equivalents $ 231,861 $ 231,861 $ — $ — Market Investment in debt securities 5,029 — — 5,029 Income Investment in equity securities 5,790 2,346 — 3,444 Market/Income Total $ 242,680 $ 234,207 $ — $ 8,473 Fair Value Fair Value Measurements at February 28, 2022 Using Fair Value Hierarchy 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 $ — $ — Our 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 (Level 1). During the year ended February 28, 2023, the Company received debt securities in the form of notes and equity securities as result of claims settlements from various airline customers that had entered into bankruptcy proceedings or similar-type restructurings. Our investment in equity securities that are traded in an active market have been valued using quoted market prices (Level 1). Our investments in other equity securities and debt securities for which there is no active market or there is limited market data have been valued using the income approach (Level 3). For the years ended February 28, 2023 and 2022, 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 aircraft and investment in unconsolidated joint venture. 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 (Level 2) , which includes third party appraisal data, and an income approach (Level 3), which includes 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. See “Aircraft Valuation” below for further information. We account for our investment in unconsolidated joint venture under the equity method of accounting. Our investment is recorded at cost and is adjusted by undistributed earnings and losses and the distributions of dividends and capital. This investment is 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. Financial Instruments Our financial instruments, other than cash, consist principally of cash equivalents, accounts receivable, investments in debt and equity securities, accounts payable, and secured and unsecured debt financings. The fair value of 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 (Level 1), whereas all our other financings are valued using a discounted cash flow analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements (Level 2). The carrying amounts and fair values of our financial instruments at February 28, 2023 and 2022, are as follows: February 28, 2023 February 28, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Investment in debt securities $ 5,029 $ 5,029 $ — $ — Investment in equity securities 5,790 5,790 — — Carrying Amount Fair Value Carrying Amount Fair Value Credit Facilities $ 20,000 $ 20,000 $ 20,000 $ 20,000 Unsecured Term Loan 155,000 151,449 155,000 152,195 ECA Financings — — 21,576 21,931 Term Financings 761,283 739,804 666,258 675,667 Senior Notes 3,700,000 3,524,563 3,700,000 3,776,997 Aircraft Valuation Impairment of Flight Equipment Excluding asset write-offs related to the Russian invasion of Ukraine, during the year ended February 28, 2023, the Company recorded impairment charges totaling $53.7 million primarily related to the scheduled lease expirations of 3 narrow-body aircraft and lease terminations of 2 narrow-body aircraft, as well as 1 wide-body aircraft resulting from our annual fleet review. The Company recognized $58.9 million of maintenance and lease rentals received in advance into revenue for these aircraft during the year ended February 28, 2023. The Company wrote off the remaining book values of 8 narrow-body and 1 freighter aircraft in Russia which have not been returned to us. As a result, the Company recorded impairment charges totaling $31.9 million during the year ended February 28, 2023 – see Note 3 in the Notes to Consolidated Financial Statements. During the year ended February 28, 2023, the Company recognized $20.3 million of maintenance and other revenue for these 9 aircraft related to payments received on maintenance and general security letters of credit. During the year ended February 28, 2022, we recorded impairment charges of $452.3 million, of which $449.0 million were transactional impairments, primarily related to 16 narrow-body, 2 wide-body and 2 freighter aircraft. The Company recognized $147.8 million of maintenance, security deposits and lease rentals received in advance into revenue for these 20 aircraft during the year ended February 28, 2022. The impairment charges, in part, resulted from lease terminations, scheduled lease expirations and lessee defaults. Of the total impairment charges, $341.3 million related to 13 aircraft that were leased to Russian and Ukrainian lessees, resulting from the Russian invasion of Ukraine and related sanctions placed on Russia. The Company recognized $89.4 million of maintenance, security deposits and lease rentals received in advance into revenue for these 13 aircraft. Annual Recoverability Assessment We performed our annual recoverability assessment of all our aircraft during the third quarter of 2022. We recorded an impairment charge of $6.3 million related to 1 wide-body aircraft during the year ended February 28, 2023, as a result of our annual recoverability assessment – see the discussion above for further detail regarding impairment of our flight equipment. We continue to closely monitor the impact of recent crises, such as the Russian invasion of Ukraine and the COVID-19 pandemic, 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 continue to focus on aircraft with near-term lease expirations, customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings, 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 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 sources. These 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 and other factors, such as the location of the aircraft and accessibility to records and technical documentation. 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. |
Flight Equipment Held for Lease
Flight Equipment Held for Lease, Net | 12 Months Ended |
Feb. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
Flight Equipment Held for Lease, Net | Note 3. Flight Equipment Held for Lease, Net The following table summarizes the activities for the Company’s flight equipment held for lease for the years ended February 28, 2023 and 2022: February 28, 2023 2022 Beginning balance $ 6,313,950 $ 6,492,471 Additions 984,172 791,935 Depreciation (331,387) (336,505) Disposals and transfers to net investment in leases and held for sale (316,892) (184,922) Impairments (82,237) (449,029) Ending balance $ 6,567,606 $ 6,313,950 Accumulated depreciation $ 2,289,264 $ 2,766,429 Write-off of Russian Aircraft As of February 28, 2023, 9 of our aircraft that were previously leased to Russian airlines remain in Russia. Most of the operators of these aircraft have continued to fly the aircraft notwithstanding the sanctions imposed on Russia and leasing terminations. While we will continue to pursue repossession, it is unlikely we will regain possession of any of these 9 aircraft. As a result, the Company wrote off the remaining book value of these 9 aircraft, resulting in impairment charges totaling $31.9 million during the year ended February 28, 2023. These 9 aircraft have been removed from the Company’s owned fleet count. The Company is vigorously pursuing insurance claims to recover its losses relating to these aircraft and has initiated legal proceedings against its contingent and possessed insurers. The collection, timing and amounts of any insurance recoveries is uncertain. We also had 1 freighter aircraft outside of Russia that we successfully repossessed during the year ended February 28, 2023. Additionally, in response to further sanctions against Russia in the United Kingdom (“U.K.”), the Company terminated the lease of 1 freighter aircraft with a U.K.-based airline and successfully repossessed that aircraft during the year ended February 28, 2023. We recognized $18.8 million of maintenance and other revenue as a result of this lease termination. We sold these 2 freighter aircraft and 1 wide-body aircraft, which was also leased to a Russian airline, during the year ended February 28, 2023, for gains totaling $53.5 million. We received $48.9 million of maintenance and general security letters of credit for our former Russian lessees during the year ended February 28, 2023, which we have recognized in maintenance and other revenue. We collected the remaining letters of credit totaling $0.6 million subsequent to February 28, 2023. |
Lease Rental Revenues
Lease Rental Revenues | 12 Months Ended |
Feb. 28, 2023 | |
Leases [Abstract] | |
Lease Rental Revenues | Lease Rental Revenues Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at February 28, 2023 were as follows: Year Ended February 28/29, Amount (1) 2024 $ 591,755 2025 509,891 2026 394,826 2027 335,740 2028 269,593 Thereafter 770,670 Total $ 2,872,475 _______________ (1) Reflects impact of lessee lease rental deferrals. At February 28, 2023 and 2022, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $22.4 million and $16.5 million, respectively. At February 28, 2023 and 2022, our net investment in leases consisted of 4 and 11 aircraft, respectively. The components of our net investment in leases at February 28, 2023 and 2022 were as follows: February 28, 2023 2022 Lease receivable $ 31,674 $ 52,021 Unguaranteed residual value of flight equipment 37,287 100,068 Net investment in leases 68,961 152,089 Allowance for credit losses (1,267) (1,764) Net investment in leases, net $ 67,694 $ 150,325 The activity in the allowance for credit losses related to our net investment in leases for the years ended February 28, 2023 and 2022 was as follows: Amount Balance at February 28, 2021 $ 864 Provision for credit losses 930 Write-offs (30) Balance at February 28, 2022 1,764 Provision for credit losses 1,507 Write-offs (2,004) Balance at February 28, 2023 $ 1,267 During the year ended February 28, 2023, we wrote off allowance for credit losses totaling $2.0 million related to the sale of 3 aircraft and scheduled lease expirations of 2 aircraft that were classified as net investment in leases. As of February 28, 2023, future lease payments on net investment in leases are as follows: Year Ending February 28/29, Amount 2024 $ 5,901 2025 6,912 2026 6,613 2027 6,750 2028 6,540 Thereafter 5,382 Total lease payments to be received 38,098 Present value of lease payments - lease receivable (31,674) Difference between undiscounted lease payments and lease receivable $ 6,424 |
Net Investment in Leases, Net
Net Investment in Leases, Net | 12 Months Ended |
Feb. 28, 2023 | |
Leases [Abstract] | |
Net Investment in Leases, Net | Lease Rental Revenues Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at February 28, 2023 were as follows: Year Ended February 28/29, Amount (1) 2024 $ 591,755 2025 509,891 2026 394,826 2027 335,740 2028 269,593 Thereafter 770,670 Total $ 2,872,475 _______________ (1) Reflects impact of lessee lease rental deferrals. At February 28, 2023 and 2022, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $22.4 million and $16.5 million, respectively. At February 28, 2023 and 2022, our net investment in leases consisted of 4 and 11 aircraft, respectively. The components of our net investment in leases at February 28, 2023 and 2022 were as follows: February 28, 2023 2022 Lease receivable $ 31,674 $ 52,021 Unguaranteed residual value of flight equipment 37,287 100,068 Net investment in leases 68,961 152,089 Allowance for credit losses (1,267) (1,764) Net investment in leases, net $ 67,694 $ 150,325 The activity in the allowance for credit losses related to our net investment in leases for the years ended February 28, 2023 and 2022 was as follows: Amount Balance at February 28, 2021 $ 864 Provision for credit losses 930 Write-offs (30) Balance at February 28, 2022 1,764 Provision for credit losses 1,507 Write-offs (2,004) Balance at February 28, 2023 $ 1,267 During the year ended February 28, 2023, we wrote off allowance for credit losses totaling $2.0 million related to the sale of 3 aircraft and scheduled lease expirations of 2 aircraft that were classified as net investment in leases. As of February 28, 2023, future lease payments on net investment in leases are as follows: Year Ending February 28/29, Amount 2024 $ 5,901 2025 6,912 2026 6,613 2027 6,750 2028 6,540 Thereafter 5,382 Total lease payments to be received 38,098 Present value of lease payments - lease receivable (31,674) Difference between undiscounted lease payments and lease receivable $ 6,424 |
Concentration of Risk
Concentration of Risk | 12 Months Ended |
Feb. 28, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Note 6. Concentration of Risk The classification of regions in the tables below is based on our customers’ principal place of business. The geographic concentration of our Net Book Value as of February 28, 2023 and 2022 was as follows: February 28, 2023 February 28, 2022 Region Number of Net Book Number of Net Book Asia and Pacific 62 28 % 71 32 % Europe 88 30 % 98 30 % Middle East and Africa 8 3 % 10 4 % North America 38 20 % 36 17 % South America 29 14 % 25 13 % Off-lease 14 (1) 5 % 11 (2) 4 % Total 239 100 % 251 100 % _______________ (1) Of the 14 off-lease aircraft at February 28, 2023, we have 1 wide-body and 4 narrow-body aircraft that we are currently marketing for lease or sale. (2) All 11 off-lease aircraft at February 28, 2022, have been placed for lease or sold. 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, 2023 February 28, 2022 Region Net Book Net Book Number Net Book Net Book Number India (1) $ — —% — $ 670,523 10% 3 _______________ (1) As of February 28, 2023, India represented less than 10% of our Net Book Value. The geographic concentration of our lease rental revenue earned from flight equipment held for lease was as follows: Year Ended February 28, Region 2023 2022 2021 Asia and Pacific 33 % 29 % 40 % Europe 29 % 36 % 31 % Middle East and Africa 5 % 5 % 6 % North America 19 % 15 % 12 % South America 14 % 15 % 11 % Total 100 % 100 % 100 % 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, 2023 2022 2021 Number of Lessees Combined % of Number of Lessees Combined % of Number of Lessees Combined % of Largest lessees by lease rental revenue (1) 3 21 % 6 38% 4 30 % _______________ (1) The number of lessees and combined percentage for the year ended February 28, 2022, includes 1 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 $17.2 million into revenue; excluding this amount, this customer accounted for 2% of total lease rental revenue. For the year ended February 28, 2023, total revenue attributable to the United States was 15% and included $14.0 million of maintenance revenue and $54.5 million of gains on sales of aircraft. For the years ended February 28, 2022 and 2021, total revenue attributable to the United States was less than 10%. For the year ended February 28, 2023, total revenue attributable to India was 12%, and included maintenance and other revenue totaling $21.2 million. For the years ended February 28, 2022 and 2021, total revenue attributable to India was 11% and 12%, respectively. For the year ended February 28, 2022, we had 6 Russian lessees that accounted for 17% of our total revenue. Total revenue from these lessees included $89.4 million 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. For the years ended February 28, 2023 and 2021, total revenue attributable to Russia was less than 10%. |
Unconsolidated Equity Method In
Unconsolidated Equity Method Investment | 12 Months Ended |
Feb. 28, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Equity Method Investment | Unconsolidated Equity Method Investment We have a joint venture with Mizuho Leasing which has 9 aircraft with a net book value of $285.2 million at February 28, 2023. February 28, 2023 2022 Unconsolidated equity method investment at beginning of year $ 38,317 $ 35,377 Distributions from unconsolidated equity method investment — (104) Earnings of unconsolidated equity method investment, net of tax 2,188 3,044 Unconsolidated equity method investment at end of year $ 40,505 $ 38,317 On June 30, 2022, the Company received full repayment of the unsecured loan facility it provided to the joint venture in the amount of $1.5 million. |
Borrowings from Secured and Uns
Borrowings from Secured and Unsecured Debt Financings | 12 Months Ended |
Feb. 28, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings from Secured and Unsecured Debt Financings | Borrowings from Secured and Unsecured Debt Financings The outstanding amounts of our secured and unsecured term debt financings were as follows: At February 28, 2023 At Debt Obligation Outstanding Number of Aircraft Interest Rate Final Stated Outstanding Secured Debt Financings: ECA Financings $ — — —% N/A $ 21,576 Term Financings (1) 761,283 30 2.36% to 7.22% 09/13/24 to 02/24/32 666,258 Less: Debt issuance costs (8,985) (3,795) Total secured debt financings, net of debt issuance costs and discounts 752,298 30 684,039 Unsecured Debt Financings: 5.000% Senior Notes due 2023 (2) 500,000 5.00% 04/01/23 500,000 4.400% Senior 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 6.319% 02/27/24 155,000 Revolving Credit Facilities 20,000 1.63% to 6.36% 02/28/24 to 05/24/25 20,000 Less: Debt issuance costs and discounts (32,546) (39,159) Total unsecured debt financings, net of debt issuance costs and discounts 3,842,454 3,835,841 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 4,594,752 $ 4,519,880 _______________ (1) The borrowings under these financings at February 28, 2023 have a weighted-average fixed rate of interest of 4.82%. (2) Repaid at their final stated maturity date. Secured Debt Financings: Term Financings On November 21, 2022 (“the “Effective Date”), we entered into a full recourse $450.0 million secured financing facility (the “2022 Secured Facility”) with a syndicate of banks in relation to 17 owned aircraft. The 2022 Secured Facility bears interest at a floating rate under the Term Secured Overnight Funding Rate (“SOFR”) (as defined in the credit agreement governing the 2022 Secured Facility) plus 2.35% per annum and matures on November 21, 2029. The 2022 Secured Facility contains, among other customary provisions, a $1.1 billion minimum net worth covenant, a 2.0:1.0 minimum interest coverage ratio covenant, and a 75% maximum loan-to-value ratio, which reduces to 70% through the term of the facility. The credit commitments under the 2022 Secured Facility will be available for borrowings for three On February 10, 2023, we prepaid in full the $159.4 million outstanding principal amount of one of our term financings secured by 12 aircraft, including $1.3 million of accrued interest. We incurred a loss on the early extinguishment of debt totaling $0.6 million, primarily related to the write off of deferred financing costs. Unsecured Debt Financings: 5.000% Senior Notes due 2023 We repaid the $500.0 million aggregate principal amount of our 5.000% Senior Notes due 2023 at their final stated maturity date in April 2023. Revolving Credit Facilities On May 24, 2022, we entered into an amendment for one of our unsecured revolving credit facilities that expanded the size and extended the term of the facility. As a result, the existing $230.0 million commitment was expanded to $280.0 million, with $35.0 million and $245.0 million of the commitment allocated to Tranche B and Tranche C, respectively. Tranche A and Tranche B matured on their respective stated maturity dates of December 27, 2021 and February 28, 2023. Tranche C will mature on May 24, 2025. On June 27, 2022, a $100.0 million commitment under one of our unsecured revolving credit facilities, with a total commitment of $1.0 billion, matured on its stated maturity date. On September 8, 2022, we entered into an amendment that expanded the size of the facility from $900.0 million to $1.0 billion and replaced LIBOR with Term SOFR as the benchmark interest rate. The facility bears interest at Adjusted Term SOFR (as defined in the amendment to the credit agreement) plus 1.625% per annum and matures on April 26, 2025. On July 30, 2022, a $50.0 million commitment under our revolving credit facility with Mizuho Bank Ltd., a related party, matured on its stated maturity date. On January 27, 2023, we entered into an amendment that expanded the size of our revolving credit facility with Mizuho Marubeni Leasing America Corporation, a related party, from $100.0 million to $200.0 million and extended its maturity date to January 26, 2025. The amendment also replaced LIBOR with Term SOFR as the benchmark interest rate. The facility bears interest at a rate of Adjusted Term SOFR (as defined in the amendment to the credit agreement) plus either 1.72% or 1.97%, depending on the amount drawn, and requires the Company to have a minimum of $20.0 million 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. On February 28, 2023, the Company entered into a $300.0 million unsecured revolving credit facility with Mizuho Bank Ltd., a related party. The facility bears interest at a rate of Adjusted Term SOFR (as defined in the amendment to the credit agreement) plus 2.0%, matures on February 28, 2024 and includes a one-year extension option. This transaction was approved by our Audit Committee as an arm’s length transaction under our related party policy. As of February 28, 2023, we had $20.0 million in borrowings outstanding under our revolving credit facilities and had $1.7 billion available for borrowing. Maturities of the secured and unsecured debt financings over the next five years and thereafter are as follows: Year Ending February 28/29, Amount 2024 $ 1,372,409 2025 833,603 2026 747,597 2027 671,083 2028 772,304 Thereafter 239,287 Total $ 4,636,283 As of February 28, 2023, we were in compliance with all applicable covenants in our financings. |
Shareholders_ Equity
Shareholders’ Equity | 12 Months Ended |
Feb. 28, 2023 | |
Shareholders’ Equity and Share Based Payment [Abstract] | |
Shareholders’ Equity | Shareholders’ Equity On March 15, 2022 and September 15, 2022, the Company paid semi-annual dividends each in the amount of $10.5 million for its Preference Shares, which was approved by the Company’s Board of Directors and accrued as of February 28, 2022 and August 31, 2022, respectively. On January 10, 2023, the Company’s Board of Directors approved a semi-annual dividend in the amount of $10.5 million for its Preference Shares, which was accrued as of February 28, 2023, and paid on March 15, 2023. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Feb. 28, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions The Company incurred fees from Marubeni as part of its intra-company service agreement totaling $5.5 million and $5.0 million during the years ended February 28, 2023 and 2022, respectively, whereby Marubeni provides certain management and administrative services to the Company. In addition, the Company purchased parts under a parts management services and supply agreement with an affiliate of Marubeni totaling $4.2 million and $5.9 million during the years ended February 28, 2023 and 2022, respectively. On January 27, 2023, the Company entered into an amendment that expanded the size and extended the term of our unsecured revolving credit facility with Mizuho Marubeni Leasing America Corporation., a related party – see Note 8 in the Notes to 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. On February 28, 2023, the Company entered into a $300.0 million senior unsecured revolving credit facility with Mizuho Bank Ltd., a related party – see Note 8 in the Notes to 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Feb. 28, 2023 | |
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, 2023, 2022 and 2021, were as follows: Year Ended February 28, 2023 2022 2021 U.S. operations $ 21,172 $ 20,803 $ 31,848 Non-U.S. operations 64,865 (310,054) (357,106) Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment $ 86,037 $ (289,251) $ (325,258) The components of the income tax provision (benefit) from continuing operations for the years ended February 28, 2023, 2022 and 2021, consisted of the following: Year Ended February 28, 2023 2022 2021 Current: United States: Federal $ 5,671 $ 247 $ (1,232) State 1,667 161 121 Non-U.S. 4,438 980 4,842 Current income tax provision 11,776 1,388 3,731 Deferred: United States: Federal (728) 5,206 3,150 State (341) 1,593 1,598 Non-U.S. 14,759 (16,185) 1,757 Deferred income tax (benefit) 13,690 (9,386) 6,505 Total $ 25,466 $ (7,998) $ 10,236 Significant components of the Company’s deferred tax assets and liabilities at February 28, 2023 and 2022, consisted of the following: Year Ended February 28, 2023 2022 Deferred tax assets: Net operating loss carry forwards $ 145,299 $ 117,448 Interest expense carry forwards 1,139 — Other 26,041 34,955 Total deferred tax assets 172,479 152,403 Deferred tax liabilities: Accelerated depreciation (233,340) (189,083) Other (18,825) (28,873) Total deferred tax liabilities (252,165) (217,956) Net deferred tax liabilities $ (79,686) $ (65,553) The Company had $96.8 million of federal net operating loss (“NOL”) carry forwards available at February 28, 2023 with no expiration date to offset future taxable income subject to U.S. graduated tax rates. The Company also had NOL carry forwards of $961.2 million with no expiration date to offset future Irish taxable income. Deferred tax assets and liabilities are included in other assets and accounts payable, accrued expenses and other 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, 2023, we have elected to permanently reinvest our accumulated undistributed U.S. earnings of $44.1 million. Accordingly, no U.S. withholding taxes have been provided. Withholding tax of $2.2 million 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, 2023, 2022 and 2021, consisted of the following: Year Ended February 28, 2023 2022 2021 Notional U.S. federal income tax expense at the statutory rate: $ 18,068 $ (60,742) $ (68,304) U.S. state and local income tax, net 928 1,237 1,723 Non-U.S. operations: Bermuda (12,039) 27,751 82,190 Ireland 19,279 23,510 1,545 Singapore 27 174 75 Other low tax jurisdictions 152 (15) (381) Non-deductible expenses in the U.S. 19 16 (1,904) Other (968) 71 (4,708) Provision (benefit) for income taxes $ 25,466 $ (7,998) $ 10,236 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, 2023 | |
Interest Income (Expense), Net [Abstract] | |
Interest, Net | Interest, Net The following table shows the components of interest, net. Year Ended February 28, 2023 2022 2021 Interest on borrowings and other liabilities $ 196,502 $ 200,220 $ 221,246 Amortization of deferred financing fees and debt discount 14,338 16,267 14,791 Interest expense 210,840 216,487 236,037 Less: Interest income (3,954) (1,209) (523) Less: Capitalized interest (2,280) (926) (176) Interest, net $ 204,606 $ 214,352 $ 235,338 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Feb. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rent expense, primarily for the corporate office and sales and marketing facilities, was $2.1 million, $1.6 million and $1.6 million for the years ended February 28, 2023, 2022 and 2021, respectively. As of February 28, 2023, 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 2024 $ 2,259 2025 2,910 2026 2,756 2027 2,694 2028 2,725 Thereafter 17,179 Total $ 30,523 At February 28, 2023, we had commitments to acquire 20 aircraft for $763.7 million. Commitments under signed purchase agreements, including $46.2 million of remaining progress payments, contractual price escalations and other adjustments for these aircraft at February 28, 2023, net of amounts already paid, are as follows: Year Ending February 28/29, Amount 2024 $ 495,330 2025 171,533 2026 96,848 2027 — 2028 — Thereafter — Total $ 763,711 |
Other Assets
Other Assets | 12 Months Ended |
Feb. 28, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following as of February 28, 2023 and 2022: February 28, 2023 2022 Deferred income tax asset $ 304 $ 570 Lease incentives and premiums, net of accumulated amortization of $77,722 and $81,553, respectively 54,208 53,513 Flight equipment held for sale 59,370 77,636 Aircraft purchase deposits and Embraer E-2 progress payments 43,494 56,157 Right-of-use asset (1) 16,930 7,176 Deferred rent receivable 35,631 55,478 Investments, at fair value 10,819 — Other assets 125,574 105,796 Total other assets $ 346,330 $ 356,326 ______________ (1) Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 12 Months Ended |
Feb. 28, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other LiabilitiesAccounts payable, accrued expenses and other liabilities consisted of the following as of February 28, 2023 and 2022: February 28, 2023 2022 Accounts payable and accrued expenses $ 60,225 $ 58,882 Deferred income tax liability 79,990 66,123 Accrued interest payable 42,752 42,013 Lease liability 19,951 9,846 Lease discounts, net of accumulated amortization of $45,586 and $45,546, respectively 3,555 560 Total accounts payable, accrued expenses and other liabilities $ 206,473 $ 177,424 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Feb. 28, 2023 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization 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. The Company is controlled by affiliates of Marubeni Corporation (“Marubeni”) and Mizuho Leasing Company, Limited (“Mizuho Leasing”). Aircastle is a holding company and conducts its business through subsidiaries that are wholly-owned, either directly or indirectly, by Aircastle. Basis of Presentation and Principles of Consolidation The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Aircastle and all its subsidiaries, including any variable interest entity of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We manage and analyze our business and report on 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, 2023 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 presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and include the accounts of Aircastle and all its subsidiaries, including any variable interest entity of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We manage and analyze our business and report on 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, 2023 through the date on which the consolidated financial statements included in this Annual Report were issued. |
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 Aircastle considers all highly liquid investments with maturities of three months or less when purchased to be cash equivalents. Virtually all our cash and cash equivalents are held or managed by five major financial institutions. |
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 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 typically 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 reevaluated 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 2 in the Notes to 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 recent crises, such as the Russian invasion of Ukraine and the COVID-19 pandemic, 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 continue to focus on aircraft with near-term lease expirations, customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings, 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 leased 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). |
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 December 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2022-06 to defer the sunset date of Reference Rate Reform Topic 848 (“ASC 848”). 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 as entities transition away from the LIBOR to alternative reference rates. The standard provides this temporary election through December 31, 2024, and cannot be applied to contract modifications that occur after December 31, 2024. 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, 2023, we have only 1 aircraft in our fleet that has a floating-rate lease rental and for the year ended February 28, 2023, 7% of our interest expense was derived from floating-rate debt which is referenced to LIBOR. We have not adopted ASC 848 and are evaluating the election available to us under the standard. |
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 our investments in debt and equity securities on a recurring basis and measure the fair value of our |
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 early 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, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following tables set forth our financial assets as of February 28, 2023 and 2022, that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets 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, 2023 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Valuation Assets : Cash and cash equivalents $ 231,861 $ 231,861 $ — $ — Market Investment in debt securities 5,029 — — 5,029 Income Investment in equity securities 5,790 2,346 — 3,444 Market/Income Total $ 242,680 $ 234,207 $ — $ 8,473 Fair Value Fair Value Measurements at February 28, 2022 Using Fair Value Hierarchy 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 $ — $ — |
Carrying amounts and fair values of financial instruments | The carrying amounts and fair values of our financial instruments at February 28, 2023 and 2022, are as follows: February 28, 2023 February 28, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Investment in debt securities $ 5,029 $ 5,029 $ — $ — Investment in equity securities 5,790 5,790 — — Carrying Amount Fair Value Carrying Amount Fair Value Credit Facilities $ 20,000 $ 20,000 $ 20,000 $ 20,000 Unsecured Term Loan 155,000 151,449 155,000 152,195 ECA Financings — — 21,576 21,931 Term Financings 761,283 739,804 666,258 675,667 Senior Notes 3,700,000 3,524,563 3,700,000 3,776,997 |
Flight Equipment Held for Lea_2
Flight Equipment Held for Lease, Net (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, Lessor Asset under Operating Lease | The following table summarizes the activities for the Company’s flight equipment held for lease for the years ended February 28, 2023 and 2022: February 28, 2023 2022 Beginning balance $ 6,313,950 $ 6,492,471 Additions 984,172 791,935 Depreciation (331,387) (336,505) Disposals and transfers to net investment in leases and held for sale (316,892) (184,922) Impairments (82,237) (449,029) Ending balance $ 6,567,606 $ 6,313,950 Accumulated depreciation $ 2,289,264 $ 2,766,429 |
Lease Rental Revenues (Tables)
Lease Rental Revenues (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at February 28, 2023 were as follows: Year Ended February 28/29, Amount (1) 2024 $ 591,755 2025 509,891 2026 394,826 2027 335,740 2028 269,593 Thereafter 770,670 Total $ 2,872,475 _______________ (1) Reflects impact of lessee lease rental deferrals. |
Net Investment in Leases, Net (
Net Investment in Leases, Net (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Leases [Abstract] | |
Direct Financing Lease, Lease Income | The components of our net investment in leases at February 28, 2023 and 2022 were as follows: February 28, 2023 2022 Lease receivable $ 31,674 $ 52,021 Unguaranteed residual value of flight equipment 37,287 100,068 Net investment in leases 68,961 152,089 Allowance for credit losses (1,267) (1,764) Net investment in leases, net $ 67,694 $ 150,325 |
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, 2023 and 2022 was as follows: Amount Balance at February 28, 2021 $ 864 Provision for credit losses 930 Write-offs (30) Balance at February 28, 2022 1,764 Provision for credit losses 1,507 Write-offs (2,004) Balance at February 28, 2023 $ 1,267 During the year ended February 28, 2023, we wrote off allowance for credit losses totaling $2.0 million related to the sale of 3 aircraft and scheduled lease expirations of 2 aircraft that were classified as net investment in leases. As of February 28, 2023, future lease payments on net investment in leases are as follows: Year Ending February 28/29, Amount 2024 $ 5,901 2025 6,912 2026 6,613 2027 6,750 2028 6,540 Thereafter 5,382 Total lease payments to be received 38,098 Present value of lease payments - lease receivable (31,674) Difference between undiscounted lease payments and lease receivable $ 6,424 |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Risks and Uncertainties [Abstract] | |
Geographic concentration of lease rental revenue earnings | The geographic concentration of our Net Book Value as of February 28, 2023 and 2022 was as follows: February 28, 2023 February 28, 2022 Region Number of Net Book Number of Net Book Asia and Pacific 62 28 % 71 32 % Europe 88 30 % 98 30 % Middle East and Africa 8 3 % 10 4 % North America 38 20 % 36 17 % South America 29 14 % 25 13 % Off-lease 14 (1) 5 % 11 (2) 4 % Total 239 100 % 251 100 % _______________ (1) Of the 14 off-lease aircraft at February 28, 2023, we have 1 wide-body and 4 narrow-body aircraft that we are currently marketing for lease or sale. (2) All 11 off-lease aircraft at February 28, 2022, have been placed for lease or sold. |
Revenue attributable to individual countries | 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, 2023 February 28, 2022 Region Net Book Net Book Number Net Book Net Book Number India (1) $ — —% — $ 670,523 10% 3 _______________ (1) As of February 28, 2023, India represented less than 10% of our Net Book Value. |
Geographic concentration of net book value of flight equipment held for lease | The geographic concentration of our lease rental revenue earned from flight equipment held for lease was as follows: Year Ended February 28, Region 2023 2022 2021 Asia and Pacific 33 % 29 % 40 % Europe 29 % 36 % 31 % Middle East and Africa 5 % 5 % 6 % North America 19 % 15 % 12 % South America 14 % 15 % 11 % Total 100 % 100 % 100 % 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, 2023 2022 2021 Number of Lessees Combined % of Number of Lessees Combined % of Number of Lessees Combined % of Largest lessees by lease rental revenue (1) 3 21 % 6 38% 4 30 % _______________ (1) The number of lessees and combined percentage for the year ended February 28, 2022, includes 1 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 $17.2 million into revenue; excluding this amount, this customer accounted for 2% of total lease rental revenue. |
Unconsolidated Equity Method _2
Unconsolidated Equity Method Investment (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | February 28, 2023 2022 Unconsolidated equity method investment at beginning of year $ 38,317 $ 35,377 Distributions from unconsolidated equity method investment — (104) Earnings of unconsolidated equity method investment, net of tax 2,188 3,044 Unconsolidated equity method investment at end of year $ 40,505 $ 38,317 |
Borrowings from Secured and U_2
Borrowings from Secured and Unsecured Debt Financings (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
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, 2023 At Debt Obligation Outstanding Number of Aircraft Interest Rate Final Stated Outstanding Secured Debt Financings: ECA Financings $ — — —% N/A $ 21,576 Term Financings (1) 761,283 30 2.36% to 7.22% 09/13/24 to 02/24/32 666,258 Less: Debt issuance costs (8,985) (3,795) Total secured debt financings, net of debt issuance costs and discounts 752,298 30 684,039 Unsecured Debt Financings: 5.000% Senior Notes due 2023 (2) 500,000 5.00% 04/01/23 500,000 4.400% Senior 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 6.319% 02/27/24 155,000 Revolving Credit Facilities 20,000 1.63% to 6.36% 02/28/24 to 05/24/25 20,000 Less: Debt issuance costs and discounts (32,546) (39,159) Total unsecured debt financings, net of debt issuance costs and discounts 3,842,454 3,835,841 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 4,594,752 $ 4,519,880 _______________ (1) The borrowings under these financings at February 28, 2023 have a weighted-average fixed rate of interest of 4.82%. (2) Repaid at their final stated maturity date. |
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 2024 $ 1,372,409 2025 833,603 2026 747,597 2027 671,083 2028 772,304 Thereafter 239,287 Total $ 4,636,283 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
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, 2023, 2022 and 2021, were as follows: Year Ended February 28, 2023 2022 2021 U.S. operations $ 21,172 $ 20,803 $ 31,848 Non-U.S. operations 64,865 (310,054) (357,106) Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment $ 86,037 $ (289,251) $ (325,258) |
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, 2023, 2022 and 2021, consisted of the following: Year Ended February 28, 2023 2022 2021 Current: United States: Federal $ 5,671 $ 247 $ (1,232) State 1,667 161 121 Non-U.S. 4,438 980 4,842 Current income tax provision 11,776 1,388 3,731 Deferred: United States: Federal (728) 5,206 3,150 State (341) 1,593 1,598 Non-U.S. 14,759 (16,185) 1,757 Deferred income tax (benefit) 13,690 (9,386) 6,505 Total $ 25,466 $ (7,998) $ 10,236 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred tax assets and liabilities at February 28, 2023 and 2022, consisted of the following: Year Ended February 28, 2023 2022 Deferred tax assets: Net operating loss carry forwards $ 145,299 $ 117,448 Interest expense carry forwards 1,139 — Other 26,041 34,955 Total deferred tax assets 172,479 152,403 Deferred tax liabilities: Accelerated depreciation (233,340) (189,083) Other (18,825) (28,873) Total deferred tax liabilities (252,165) (217,956) Net deferred tax liabilities $ (79,686) $ (65,553) |
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, 2023, 2022 and 2021, consisted of the following: Year Ended February 28, 2023 2022 2021 Notional U.S. federal income tax expense at the statutory rate: $ 18,068 $ (60,742) $ (68,304) U.S. state and local income tax, net 928 1,237 1,723 Non-U.S. operations: Bermuda (12,039) 27,751 82,190 Ireland 19,279 23,510 1,545 Singapore 27 174 75 Other low tax jurisdictions 152 (15) (381) Non-deductible expenses in the U.S. 19 16 (1,904) Other (968) 71 (4,708) Provision (benefit) for income taxes $ 25,466 $ (7,998) $ 10,236 |
Interest, Net (Tables)
Interest, Net (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Interest Income (Expense), Net [Abstract] | |
Components of interest | The following table shows the components of interest, net. Year Ended February 28, 2023 2022 2021 Interest on borrowings and other liabilities $ 196,502 $ 200,220 $ 221,246 Amortization of deferred financing fees and debt discount 14,338 16,267 14,791 Interest expense 210,840 216,487 236,037 Less: Interest income (3,954) (1,209) (523) Less: Capitalized interest (2,280) (926) (176) Interest, net $ 204,606 $ 214,352 $ 235,338 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity | As of February 28, 2023, 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 2024 $ 2,259 2025 2,910 2026 2,756 2027 2,694 2028 2,725 Thereafter 17,179 Total $ 30,523 |
Unrecorded Unconditional Purchase Obligations Disclosure [Table Text Block] | Commitments under signed purchase agreements, including $46.2 million of remaining progress payments, contractual price escalations and other adjustments for these aircraft at February 28, 2023, net of amounts already paid, are as follows: Year Ending February 28/29, Amount 2024 $ 495,330 2025 171,533 2026 96,848 2027 — 2028 — Thereafter — Total $ 763,711 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Feb. 28, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Principal components of other assets | Other assets consisted of the following as of February 28, 2023 and 2022: February 28, 2023 2022 Deferred income tax asset $ 304 $ 570 Lease incentives and premiums, net of accumulated amortization of $77,722 and $81,553, respectively 54,208 53,513 Flight equipment held for sale 59,370 77,636 Aircraft purchase deposits and Embraer E-2 progress payments 43,494 56,157 Right-of-use asset (1) 16,930 7,176 Deferred rent receivable 35,631 55,478 Investments, at fair value 10,819 — Other assets 125,574 105,796 Total other assets $ 346,330 $ 356,326 ______________ (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, 2023 | |
Payables and Accruals [Abstract] | |
Principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheet | Accounts payable, accrued expenses and other liabilities consisted of the following as of February 28, 2023 and 2022: February 28, 2023 2022 Accounts payable and accrued expenses $ 60,225 $ 58,882 Deferred income tax liability 79,990 66,123 Accrued interest payable 42,752 42,013 Lease liability 19,951 9,846 Lease discounts, net of accumulated amortization of $45,586 and $45,546, respectively 3,555 560 Total accounts payable, accrued expenses and other liabilities $ 206,473 $ 177,424 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Feb. 28, 2023 financial_institution segment | |
Accounting Policies [Abstract] | |
Number of Operating Segments | segment | 1 |
Property, Plant and Equipment [Line Items] | |
Number of Major Financial Institutions | financial_institution | 5 |
Percentage of Interest Expense Derived from Floating-rate Debt | 7% |
Passenger Aircraft | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 25 years |
Estimated residual value | 15% |
Freighter Aircraft | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 30 years |
Estimated residual value | 5% |
Freighter Aircraft | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 35 years |
Estimated residual value | 10% |
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 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 USD ($) aircraft | Feb. 28, 2022 USD ($) | Feb. 28, 2021 USD ($) | |
Liabilities: | |||
Impairment of flight equipment | $ 85,623 | $ 452,250 | $ 425,579 |
Russian Invasion of Ukraine | |||
Liabilities: | |||
Impairment of flight equipment | $ 31,900 | 341,300 | |
Russian Invasion of Ukraine | Aircraft Remaining in Country of Base Operations | Narrow-body | RUSSIAN FEDERATION | |||
Liabilities: | |||
Number of Aircraft Previously on Lease with Russian Airlines | aircraft | 8 | ||
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | |||
Assets: | |||
Cash and cash equivalents | $ 231,861 | 167,891 | |
Restricted cash and cash equivalents | 2,791 | ||
Total | 234,207 | 170,682 | |
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Debt Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 0 | ||
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | Equity Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 2,346 | ||
Recurring | Significant Other Observable Inputs (Level 2) | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | ||
Total | 0 | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 0 | ||
Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 0 | ||
Recurring | Significant Unobservable Inputs (Level 3) | |||
Assets: | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash and cash equivalents | 0 | ||
Total | 8,473 | 0 | |
Recurring | Significant Unobservable Inputs (Level 3) | Debt Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 5,029 | ||
Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 3,444 | ||
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Debt Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 5,029 | 0 | |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Equity Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 5,790 | 0 | |
Estimate of Fair Value Measurement | Recurring | |||
Assets: | |||
Cash and cash equivalents | 231,861 | 167,891 | |
Restricted cash and cash equivalents | 2,791 | ||
Total | 242,680 | $ 170,682 | |
Estimate of Fair Value Measurement | Recurring | Debt Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | 5,029 | ||
Estimate of Fair Value Measurement | Recurring | Equity Securities | |||
Assets: | |||
Investments, Fair Value Disclosure | $ 5,790 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 1) - Recurring - USD ($) $ in Thousands | Feb. 28, 2023 | Feb. 28, 2022 |
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 | $ 231,861 | $ 167,891 |
Restricted cash and cash equivalents | 2,791 | |
Assets, Fair Value Disclosure | 234,207 | 170,682 |
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 | |
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 | |
Assets, Fair Value Disclosure | 8,473 | 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 | 231,861 | 167,891 |
Restricted cash and cash equivalents | 2,791 | |
Assets, Fair Value Disclosure | $ 242,680 | $ 170,682 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Maintenance revenue | $ 138,099 | $ 152,030 | $ 172,668 |
Maintenance Revenue from Impaired Aircraft | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Maintenance revenue | 147,800 | ||
Russian Invasion of Ukraine | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Maintenance revenue | 20,300 | 89,400 | |
Impairments not Related to Russian Invasion of Ukraine | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Maintenance revenue | 58,900 | ||
Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Debt Securities | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 5,029 | 0 | |
Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Equity Securities | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 5,790 | 0 | |
Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Debt Securities | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 5,029 | 0 | |
Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Equity Securities | |||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | |||
Investments, Fair Value Disclosure | 5,790 | 0 | |
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 | 155,000 | |
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 | 0 | 21,576 | |
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 | 761,283 | 666,258 | |
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 | 151,449 | 152,195 | |
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 | 0 | 21,931 | |
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 | 739,804 | 675,667 | |
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 | 20,000 | |
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 | 3,700,000 | |
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 | $ 3,524,563 | $ 3,776,997 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value Measurements (Details 4) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of flight equipment | $ 85,623 | $ 452,250 | $ 425,579 |
Transactional | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of flight equipment | $ 449,000 | ||
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 | $ 53,700 |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details Textual) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 USD ($) aircraft | Feb. 28, 2022 USD ($) aircraft | Feb. 28, 2021 USD ($) | |
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 | $ | 6,567,606 | $ 6,313,950 | |
Asset Impairment Charges | $ | 85,623 | 452,250 | $ 425,579 |
Gain (Loss) on Disposition of Property Plant Equipment | $ | $ 70,860 | $ 26,001 | $ 33,536 |
Percentage of geographic concentration | 100% | 100% | 100% |
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 as of February 28, 2023 and 2022, that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets 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, 2023 Using Fair Value Hierarchy Level 1 Level 2 Level 3 Valuation Assets : Cash and cash equivalents $ 231,861 $ 231,861 $ — $ — Market Investment in debt securities 5,029 — — 5,029 Income Investment in equity securities 5,790 2,346 — 3,444 Market/Income Total $ 242,680 $ 234,207 $ — $ 8,473 Fair Value Fair Value Measurements at February 28, 2022 Using Fair Value Hierarchy 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 $ — $ — Our 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 (Level 1). During the year ended February 28, 2023, the Company received debt securities in the form of notes and equity securities as result of claims settlements from various airline customers that had entered into bankruptcy proceedings or similar-type restructurings. Our investment in equity securities that are traded in an active market have been valued using quoted market prices (Level 1). Our investments in other equity securities and debt securities for which there is no active market or there is limited market data have been valued using the income approach (Level 3). For the years ended February 28, 2023 and 2022, 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 aircraft and investment in unconsolidated joint venture. 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 (Level 2) , which includes third party appraisal data, and an income approach (Level 3), which includes 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. See “Aircraft Valuation” below for further information. We account for our investment in unconsolidated joint venture under the equity method of accounting. Our investment is recorded at cost and is adjusted by undistributed earnings and losses and the distributions of dividends and capital. This investment is 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. Financial Instruments Our financial instruments, other than cash, consist principally of cash equivalents, accounts receivable, investments in debt and equity securities, accounts payable, and secured and unsecured debt financings. The fair value of 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 (Level 1), whereas all our other financings are valued using a discounted cash flow analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements (Level 2). The carrying amounts and fair values of our financial instruments at February 28, 2023 and 2022, are as follows: February 28, 2023 February 28, 2022 Carrying Amount Fair Value Carrying Amount Fair Value Investment in debt securities $ 5,029 $ 5,029 $ — $ — Investment in equity securities 5,790 5,790 — — Carrying Amount Fair Value Carrying Amount Fair Value Credit Facilities $ 20,000 $ 20,000 $ 20,000 $ 20,000 Unsecured Term Loan 155,000 151,449 155,000 152,195 ECA Financings — — 21,576 21,931 Term Financings 761,283 739,804 666,258 675,667 Senior Notes 3,700,000 3,524,563 3,700,000 3,776,997 Aircraft Valuation Impairment of Flight Equipment Excluding asset write-offs related to the Russian invasion of Ukraine, during the year ended February 28, 2023, the Company recorded impairment charges totaling $53.7 million primarily related to the scheduled lease expirations of 3 narrow-body aircraft and lease terminations of 2 narrow-body aircraft, as well as 1 wide-body aircraft resulting from our annual fleet review. The Company recognized $58.9 million of maintenance and lease rentals received in advance into revenue for these aircraft during the year ended February 28, 2023. The Company wrote off the remaining book values of 8 narrow-body and 1 freighter aircraft in Russia which have not been returned to us. As a result, the Company recorded impairment charges totaling $31.9 million during the year ended February 28, 2023 – see Note 3 in the Notes to Consolidated Financial Statements. During the year ended February 28, 2023, the Company recognized $20.3 million of maintenance and other revenue for these 9 aircraft related to payments received on maintenance and general security letters of credit. During the year ended February 28, 2022, we recorded impairment charges of $452.3 million, of which $449.0 million were transactional impairments, primarily related to 16 narrow-body, 2 wide-body and 2 freighter aircraft. The Company recognized $147.8 million of maintenance, security deposits and lease rentals received in advance into revenue for these 20 aircraft during the year ended February 28, 2022. The impairment charges, in part, resulted from lease terminations, scheduled lease expirations and lessee defaults. Of the total impairment charges, $341.3 million related to 13 aircraft that were leased to Russian and Ukrainian lessees, resulting from the Russian invasion of Ukraine and related sanctions placed on Russia. The Company recognized $89.4 million of maintenance, security deposits and lease rentals received in advance into revenue for these 13 aircraft. Annual Recoverability Assessment We performed our annual recoverability assessment of all our aircraft during the third quarter of 2022. We recorded an impairment charge of $6.3 million related to 1 wide-body aircraft during the year ended February 28, 2023, as a result of our annual recoverability assessment – see the discussion above for further detail regarding impairment of our flight equipment. We continue to closely monitor the impact of recent crises, such as the Russian invasion of Ukraine and the COVID-19 pandemic, 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 continue to focus on aircraft with near-term lease expirations, customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings, 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 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 sources. These 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 and other factors, such as the location of the aircraft and accessibility to records and technical documentation. 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. | ||
Transactional | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of Impaired Aircraft | 20 | ||
Asset Impairment Charges | $ | $ 449,000 | ||
Transactional | Narrow-body | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of Impaired Aircraft | 16 | ||
Transactional | Wide-body | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of Impaired Aircraft | 2 | ||
Fleet Review [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Impairment Charges | $ | $ 6,300 | ||
Fleet Review [Member] | Wide-body | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of Impaired Aircraft | 1,000 | ||
Russian Invasion of Ukraine | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Asset Impairment Charges | $ | $ 31,900 | $ 341,300 | |
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 | 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 | 13 | ||
Transactional - Scheduled Lease Expirations | Narrow-body | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of Impaired Aircraft | 3 | ||
Transactional - Lease Terminations | Narrow-body | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of Impaired Aircraft | 2 |
Flight Equipment Held for Lea_3
Flight Equipment Held for Lease, Net (Details) $ in Thousands | 12 Months Ended | |||
Feb. 28, 2023 USD ($) aircraft | Feb. 28, 2022 USD ($) | Feb. 28, 2021 USD ($) | Apr. 25, 2023 USD ($) | |
Property, Plant and Equipment [Line Items] | ||||
Net Book Value | $ 6,567,606 | $ 6,313,950 | ||
Depreciation | (332,663) | (337,528) | $ (347,517) | |
Transfers from Flight equipment held for lease to Net investment in direct financing and sales-type leases and Other assets | 1,695 | 57,489 | 90,352 | |
Asset Impairment Charges | (85,623) | (452,250) | (425,579) | |
Maintenance revenue | 138,099 | 152,030 | 172,668 | |
Gain (Loss) on Disposition of Property Plant Equipment | 70,860 | 26,001 | 33,536 | |
Russian Invasion of Ukraine | ||||
Property, Plant and Equipment [Line Items] | ||||
Asset Impairment Charges | (31,900) | (341,300) | ||
Maintenance revenue | 20,300 | 89,400 | ||
RUSSIAN FEDERATION | ||||
Property, Plant and Equipment [Line Items] | ||||
Maintenance revenue | 89,400 | |||
Proceeds from Lines of Credit | $ 48,900 | |||
Freighter | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Number of Aircraft Sold | aircraft | 2 | |||
Freighter | UNITED KINGDOM | Aircraft Outside Country of Base Operations | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of Aircraft Repossessed | aircraft | 1 | |||
Freighter | RUSSIAN FEDERATION | Aircraft Remaining in Country of Base Operations | Russian Invasion of Ukraine | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of Aircraft Previously on Lease with Russian Airlines | aircraft | 1 | |||
Aircraft Sold formerly on lease to Russian Airline | ||||
Property, Plant and Equipment [Line Items] | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 53,500 | |||
Aircraft Sold formerly on lease to Russian Airline | UNITED KINGDOM | ||||
Property, Plant and Equipment [Line Items] | ||||
Maintenance revenue | $ 18,800 | |||
Total wide-body and narrow body | RUSSIAN FEDERATION | Aircraft Remaining in Country of Base Operations | Russian Invasion of Ukraine | ||||
Property, Plant and Equipment [Line Items] | ||||
Number of Aircraft Previously on Lease with Russian Airlines | aircraft | 9 | |||
Wide-body | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant and Equipment, Number of Aircraft Sold | aircraft | 1 | |||
Subsequent Event | RUSSIAN FEDERATION | ||||
Property, Plant and Equipment [Line Items] | ||||
Letters of Credit Outstanding, Amount | $ 600 | |||
Flight Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Property, Plant, and Equipment, Lessor Asset under Operating Lease, Accumulated Depreciation | $ 2,289,264 | 2,766,429 | ||
Net Book Value | 6,567,606 | 6,313,950 | $ 6,492,471 | |
Property, Plant and Equipment, Additions | 984,172 | 791,935 | ||
Depreciation | (331,387) | (336,505) | ||
Transfers from Flight equipment held for lease to Net investment in direct financing and sales-type leases and Other assets | (316,892) | (184,922) | ||
Asset Impairment Charges | $ (82,237) | $ (449,029) |
Lease Rental Revenues (Details)
Lease Rental Revenues (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Feb. 28, 2022 |
Annual future minimum lease rentals receivable | ||
2024 | $ 591,755 | |
2025 | 509,891 | |
2026 | 394,826 | |
2027 | 335,740 | |
2028 | 269,593 | |
Thereafter | 770,670 | |
Total | 2,872,475 | |
Maintenance Payments | ||
Operating Leased Assets [Line Items] | ||
Incentive to Lessee | $ 22,400 | $ 16,500 |
Net Investment in Leases, Net -
Net Investment in Leases, Net - Narrative (Details) $ in Thousands | 12 Months Ended | |
Feb. 28, 2023 USD ($) aircraft | Feb. 28, 2022 USD ($) aircraft | |
Capital Leased Assets [Line Items] | ||
Allowance for Loan and Lease Losses, Write-offs | $ | $ (2,004) | $ (30) |
Number of Finance Leased Aircraft Sold | 3 | |
Finance Leased Assets, Number of Units | 4 | 11 |
Net Investment in Leases, Net_2
Net Investment in Leases, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Leases [Abstract] | |||
Lease receivable | $ 31,674 | $ 52,021 | |
Unguaranteed residual value of flight equipment | 37,287 | 100,068 | |
Net investment in leases | 68,961 | 152,089 | |
Direct Financing Lease, Net Investment in Lease, Allowance for Credit Loss | (1,267) | (1,764) | |
Net investment in leases, net | 67,694 | 150,325 | |
Direct Financing Lease, Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | |||
Allowance for credit loss | 1,267 | 1,764 | $ 864 |
Provision for credit losses | 1,507 | 930 | 5,258 |
Allowance for Loan and Lease Losses, Write-offs | (2,004) | (30) | |
Ending balance | $ 1,267 | $ 1,764 | $ 864 |
Net Investment in Leases, Net_3
Net Investment in Leases, Net (Details 1) $ in Thousands | 12 Months Ended |
Feb. 28, 2023 USD ($) aircraft | |
Leases [Abstract] | |
2024 | $ 5,901 |
2025 | 6,912 |
2026 | 6,613 |
2027 | 6,750 |
2028 | 6,540 |
Thereafter | 5,382 |
Total lease payments to be received | 38,098 |
Present value of lease payments - lease receivable | (31,674) |
Lease receivable | $ 6,424 |
Number of Finance Leased Aircraft with Scheduled Lease Expirations | aircraft | 2 |
Concentration of Risk (Details
Concentration of Risk (Details 1) - aircraft | 12 Months Ended | |||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | Apr. 18, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject To Or Available for Operating Lease, Number of Units1 | 239 | 251 | ||
Percentage of geographic concentration | 100% | 100% | 100% | |
Number of Offlease Aircraft Marketed for Lease or Sale | 14 | 11 | ||
Wide-body | Subsequent Event | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Offlease Aircraft Marketed for Lease | 1 | |||
Narrow-body | Subsequent Event | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Offlease Aircraft Marketed for Lease | 4 | |||
Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 62 | 71 | ||
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 88 | 98 | ||
Middle East and Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 8 | 10 | ||
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 38 | 36 | ||
South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 29 | 25 | ||
Off Lease [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Number of Units | 14 | 11 | ||
Lease Revenue | Geographic Concentration Risk | Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 33% | 29% | 40% | |
Lease Revenue | Geographic Concentration Risk | Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 29% | 36% | 31% | |
Lease Revenue | Geographic Concentration Risk | Middle East and Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 5% | 5% | 6% | |
Lease Revenue | Geographic Concentration Risk | North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 19% | 15% | 12% | |
Lease Revenue | Geographic Concentration Risk | South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 14% | 15% | 11% | |
Leased Assets | Geographic Concentration Risk | Asia Pacific [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 28% | 32% | ||
Leased Assets | Geographic Concentration Risk | Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 30% | 30% | ||
Leased Assets | Geographic Concentration Risk | Middle East and Africa [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 3% | 4% | ||
Leased Assets | Geographic Concentration Risk | North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 20% | 17% | ||
Leased Assets | Geographic Concentration Risk | South America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 14% | 13% | ||
Leased Assets | Geographic Concentration Risk | Off Lease [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 5% | 4% |
Concentration of Risk (Detail_2
Concentration of Risk (Details 2) $ in Thousands | 12 Months Ended | |
Feb. 28, 2023 USD ($) Lessee | Feb. 28, 2022 USD ($) Lessee | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Book Value | $ 6,567,606 | $ 6,313,950 |
INDIA | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net Book Value | $ 0 | $ 670,523 |
property subject to or available for operating lease, net (percentage) | 0% | 10% |
number of lessees | Lessee | 0 | 3 |
Concentration of Risk (Detail_3
Concentration of Risk (Details 3) $ in Millions | 12 Months Ended | ||
Feb. 28, 2023 Lessee | Feb. 28, 2022 USD ($) Lessee | Feb. 28, 2021 Lessee | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 100% | 100% | 100% |
Major Customer Group One | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Number of Customers in Major Customer Group | 3 | 6 | 4 |
Lease Revenue | Customer Concentration Risk | Major Customer Group One | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 21% | 38% | 30% |
Asia Pacific [Member] | Lease Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 33% | 29% | 40% |
Europe [Member] | Lease Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 29% | 36% | 31% |
Middle East and Africa [Member] | Lease Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 5% | 5% | 6% |
North America [Member] | Lease Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 19% | 15% | 12% |
South America [Member] | Lease Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 14% | 15% | 11% |
RUSSIAN FEDERATION | Lease Rentals Received in Advance | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue from contract with customer | $ | $ 17.2 | ||
RUSSIAN FEDERATION | Major Customer Group One | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Concentration Risk, Number of Customers in Major Customer Group | 1 | ||
RUSSIAN FEDERATION | Lease Revenue | Customer Concentration Risk | Major Customer Group One | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 5% | ||
RUSSIAN FEDERATION | Revenue Excluding Advance Lease Rentals | Customer Concentration Risk | Major Customer Group One | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 2% |
Concentration of Risk - Narrati
Concentration of Risk - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 USD ($) | Feb. 28, 2022 USD ($) aircraft | Feb. 28, 2021 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 100% | 100% | 100% |
Maintenance revenue | $ 138,099 | $ 152,030 | $ 172,668 |
Gain (Loss) on Disposition of Property Plant Equipment | 70,860 | $ 26,001 | $ 33,536 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Maintenance revenue | 14,000 | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ 54,500 | ||
UNITED STATES | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 15% | ||
INDIA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Maintenance revenue | $ 21,200 | ||
INDIA | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 12% | 11% | 12% |
RUSSIAN FEDERATION | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Maintenance revenue | $ 89,400 | ||
Number of Airlines with Aircraft on Lease in Russia | aircraft | 6 | ||
RUSSIAN FEDERATION | Total Revenue | Geographic Concentration Risk | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 17% |
Unconsolidated Equity Method _3
Unconsolidated Equity Method Investment (Details) $ in Thousands | 12 Months Ended | |||
Feb. 28, 2023 USD ($) aircraft | Feb. 28, 2022 USD ($) | Feb. 28, 2021 USD ($) | Jun. 30, 2022 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||
Total number of aircraft owned by joint ventures | aircraft | 9 | |||
Net Book Value | $ 6,567,606 | $ 6,313,950 | ||
Proceeds from Equity Method Investment, Distribution, Return of Capital | 0 | (104) | $ (419) | |
Borrowings from unsecured financings, net of debt issuance costs | 3,842,454 | 3,835,841 | ||
Unconsolidated equity method investment | 40,505 | 38,317 | 35,377 | |
Earnings of unconsolidated equity method investment, net of tax | 2,188 | 3,044 | $ 2,326 | |
Unsecured Debt | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Borrowings from unsecured financings, net of debt issuance costs | 3,842,454 | $ 3,835,841 | ||
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 | |||
Equity Method Investee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net Book Value | $ 285,200 |
Borrowings from Secured and U_3
Borrowings from Secured and Unsecured Debt Financings (Details) $ in Thousands | 12 Months Ended | |
Feb. 28, 2023 USD ($) aircraft | Feb. 28, 2022 USD ($) | |
Debt Instrument [Line Items] | ||
Borrowings from secured financings, net of debt issuance costs | $ 752,298 | $ 684,039 |
Number of Aircraft Financed | aircraft | 30 | |
Borrowings from unsecured financings, net of debt issuance costs | $ 3,842,454 | 3,835,841 |
Long-term Debt | $ 4,594,752 | 4,519,880 |
Debt, Weighted Average Interest Rate | 4.82% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Borrowings from secured financings, net of debt issuance costs | $ 752,298 | 684,039 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Borrowings from unsecured financings, net of debt issuance costs | 3,842,454 | 3,835,841 |
Bank Financings [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Borrowings from secured financings, net of debt issuance costs | $ 761,283 | 666,258 |
Number of Aircraft Financed | aircraft | 30 | |
Bank Financings [Member] | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 4.82% | |
ECA Term Financings | Notes Payable, Other Payables | ||
Debt Instrument [Line Items] | ||
Borrowings from secured financings, net of debt issuance costs | $ 0 | 21,576 |
Number of Aircraft Financed | aircraft | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 0% | |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ (8,985) | (3,795) |
Senior Notes Due 2023 [Member] | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5% | |
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
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 | 650,000 |
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 | 500,000 |
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 | 650,000 |
Senior Notes Due 2026 | Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |
Borrowings from unsecured financings, net of debt issuance costs | $ 650,000 | 650,000 |
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 | 750,000 |
DBJ Term Loan | Term Loan | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.319% | |
Borrowings from unsecured financings, net of debt issuance costs | $ 155,000 | 155,000 |
Unsecured Debt | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Issuance Expense | $ (32,546) | $ (39,159) |
Minimum | Bank Financings [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate During Period | 2.36% | |
Minimum | Revolving Credit Facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate During Period | 1.63% | |
Maximum | Bank Financings [Member] | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate During Period | 7.22% | |
Maximum | Revolving Credit Facility | Notes Payable to Banks | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Interest Rate During Period | 6.36% |
Borrowings from Secured and U_4
Borrowings from Secured and Unsecured Debt Financings (Details Textual) $ in Thousands | 12 Months Ended | ||||||||||||
Feb. 28, 2023 USD ($) | Feb. 10, 2023 USD ($) aircraft | Jan. 27, 2023 USD ($) | Nov. 21, 2022 USD ($) aircraft | Sep. 08, 2022 USD ($) | Jun. 27, 2022 USD ($) numberOfRevolvingCreditFacilities | Feb. 28, 2023 USD ($) aircraft | Feb. 28, 2022 USD ($) | Feb. 28, 2021 USD ($) | Apr. 03, 2023 USD ($) | Sep. 07, 2022 USD ($) | May 24, 2022 USD ($) numberOfRevolvingCreditFacilities | Apr. 26, 2021 USD ($) | |
Debt Instrument [Line Items] | |||||||||||||
Borrowings from secured financings, net of debt issuance costs | $ 752,298 | $ 752,298 | $ 684,039 | ||||||||||
Loss on extinguishment of debt | (636) | (14,156) | $ (2,640) | ||||||||||
Borrowings from unsecured financings, net of debt issuance costs | 3,842,454 | 3,842,454 | 3,835,841 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,700,000 | 1,700,000 | |||||||||||
Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings from secured financings, net of debt issuance costs | 752,298 | 752,298 | 684,039 | ||||||||||
Line of Credit | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings from unsecured financings, net of debt issuance costs | 20,000 | 20,000 | 20,000 | ||||||||||
2022 Secured Facility | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 450,000 | ||||||||||||
Maximum number of aircraft secured by debt instrument | aircraft | 17 | ||||||||||||
Borrowings from secured financings, net of debt issuance costs | $ 279,000 | $ 279,000 | |||||||||||
number of aircraft secured by debt | aircraft | 10 | ||||||||||||
2022 Secured Facility | Secured Debt | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Covenant Description | 70 | ||||||||||||
Debt Instrument, Credit Commitments, Availability Period | 3 months | ||||||||||||
2022 Secured Facility | Secured Debt | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Covenant Description | 75 | ||||||||||||
Debt Instrument, Credit Commitments, Availability Period | 6 months | ||||||||||||
2022 Secured Facility | Secured Debt | Consolidated Interest Expense Paid in Cash, Ratio | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Covenant Description | 2.0 | ||||||||||||
2022 Secured Facility | Secured Debt | Minimum Net Worth Coverage Covenant | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Covenant Description | 1.1 billion | ||||||||||||
2022 Secured Facility | Secured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate on any Advances | 2.35% | ||||||||||||
2016 Revolving Credit Facility | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings from secured financings, net of debt issuance costs | $ 159,400 | ||||||||||||
number of aircraft secured by debt | aircraft | 12 | ||||||||||||
Debt Instrument, Increase, Accrued Interest | $ 1,300 | ||||||||||||
Loss on extinguishment of debt | $ 600 | ||||||||||||
2016 Revolving Credit Facility | Revolving Credit Facility | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Individual Debt Instrument at Time of Issuance Part of Overall Portfolio of Revolving Credit Facilities | numberOfRevolvingCreditFacilities | 1 | ||||||||||||
2016 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of Credit Facility, Previous Borrowing Capacity | $ 1,000,000 | $ 900,000 | |||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,000,000 | ||||||||||||
Mizuho Piece ($100mm) of $900mm Credit Facility, Current Outstanding | $ 100,000 | ||||||||||||
2016 Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate on any Advances | 1.625% | ||||||||||||
Senior Notes Due 2023 [Member] | Senior Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | 5% | |||||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | $ 500,000 | $ 500,000 | ||||||||||
Senior Notes Due 2023 [Member] | Senior Notes | Subsequent Event | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | ||||||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | ||||||||||||
DBS (2018) Unsecured Revolving Credit Facility | Revolving Credit Facility | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Individual Debt Instrument at Time of Issuance Part of Overall Portfolio of Revolving Credit Facilities | numberOfRevolvingCreditFacilities | 1 | ||||||||||||
DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of Credit Facility, Previous Borrowing Capacity | $ 230,000 | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 280,000 | ||||||||||||
DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Tranche B (Revised) ($35mm) - DBS Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | 35,000 | ||||||||||||
DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Tranche C ($245mm) - DBS Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 245,000 | ||||||||||||
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 | ||||||||||||
Mizuho Marubeni Leasing America Corporation (2023) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Covenant Description | 20.0 million | ||||||||||||
Line of Credit Facility, Previous Borrowing Capacity | $ 100,000 | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 200,000 | ||||||||||||
Mizuho Marubeni Leasing America Corporation (2023) Unsecured Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility | Minimum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate on any Advances | 1.72% | ||||||||||||
Mizuho Marubeni Leasing America Corporation (2023) Unsecured Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility | Maximum | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate on any Advances | 1.97% | ||||||||||||
Mizuho Bank Ltd. (2023) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Term | 1 year | ||||||||||||
Mizuho Bank Ltd. (2023) Unsecured Revolving Credit Facility | Line of Credit | Revolving Credit Facility | Mizuho Bank Ltd. (2023) Unsecured Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 300,000 | 300,000 | |||||||||||
Mizuho Bank Ltd. (2023) Unsecured Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Revolving Credit Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate on any Advances | 2% | ||||||||||||
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 | $ 20,000 |
Borrowings from Secured and U_5
Borrowings from Secured and Unsecured Debt Financings (Details 1) $ in Thousands | Feb. 28, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Long-term Debt, Maturities, Repayments of Principal in Next Rolling Twelve Months | $ 1,372,409 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Two | 833,603 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Three | 747,597 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Four | 671,083 |
Long-term Debt, Maturities, Repayments of Principal in Rolling Year Five | 772,304 |
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 239,287 |
Total | $ 4,636,283 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Feb. 28, 2023 | Aug. 31, 2022 | Feb. 28, 2023 | Feb. 28, 2022 | |
Shareholders’ Equity and Share Based Payment [Abstract] | ||||
Dividends, Preferred Stock | $ 10,500 | $ 10,500 | $ 21,000 | $ 16,159 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | 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 | ||
Marubeni Service Agreement | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 5.5 | $ 5 | |
Marubeni Affiliate Parts Management Services and Supply Agreement | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Amounts of Transaction | $ 4.2 | $ 5.9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Sources of income from continuing operations before income taxes | |||
U.S. operations | $ 21,172 | $ 20,803 | $ 31,848 |
Non-U.S. operations | 64,865 | (310,054) | (357,106) |
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | $ 86,037 | $ (289,251) | $ (325,258) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Current: | |||
Federal | $ 5,671 | $ 247 | $ (1,232) |
State | 1,667 | 161 | 121 |
Non-U.S. | 4,438 | 980 | 4,842 |
Current income tax provision | 11,776 | 1,388 | 3,731 |
Deferred: | |||
Federal | (728) | 5,206 | 3,150 |
State | (341) | 1,593 | 1,598 |
Non-U.S. | 14,759 | (16,185) | 1,757 |
Deferred income tax (benefit) | 13,690 | (9,386) | 6,505 |
Total | 25,466 | (7,998) | $ 10,236 |
Deferred tax assets, interest expense carry forwards | $ 1,139 | $ 0 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Thousands | Feb. 28, 2023 | Feb. 28, 2022 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 145,299 | $ 117,448 |
Other | 26,041 | 34,955 |
Total deferred tax assets | 172,479 | 152,403 |
Deferred tax liabilities: | ||
Accelerated depreciation | (233,340) | (189,083) |
Other | (18,825) | (28,873) |
Total deferred tax liabilities | 252,165 | 217,956 |
Deferred Tax Liabilities, Net | (79,686) | (65,553) |
Deferred tax assets, interest expense carry forwards | $ 1,139 | $ 0 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Income Tax Statutory Rate [Line Items] | |||
Deferred Income Tax Expense (Benefit) | $ 13,690 | $ (9,386) | $ 6,505 |
Analysis of effective income tax rate for continuing operations | |||
U.S. state and local income tax, net | 18,068 | (60,742) | (68,304) |
Non-deductible expenses in the U.S. | 19 | 16 | (1,904) |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | (968) | 71 | (4,708) |
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Amount | 928 | 1,237 | 1,723 |
Income tax provision (benefit) | 25,466 | (7,998) | 10,236 |
Bermuda | Foreign Tax Authority | |||
Analysis of effective income tax rate for continuing operations | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | (12,039) | 27,751 | 82,190 |
Ireland | Foreign Tax Authority | |||
Analysis of effective income tax rate for continuing operations | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 19,279 | 23,510 | 1,545 |
SINGAPORE | Foreign Tax Authority | |||
Analysis of effective income tax rate for continuing operations | |||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 27 | 174 | 75 |
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 | $ 152 | $ (15) | $ (381) |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) $ in Millions | Feb. 28, 2023 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Undistributed Earnings of Foreign Subsidiaries | $ 44.1 |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 2.2 |
Foreign Tax Authority | UNITED STATES | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | 96.8 |
Foreign Tax Authority | Irish, Mauritius and Singapore | |
Operating Loss Carryforwards [Line Items] | |
Operating Loss Carryforwards | $ 961.2 |
Interest, Net (Details)
Interest, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 | |
Interest Income (Expense), Net [Abstract] | |||
Interest on borrowings and other liabilities | $ 196,502 | $ 200,220 | $ 221,246 |
Amortization of deferred financing costs | 14,338 | 16,267 | 14,791 |
Interest Expense | 210,840 | 216,487 | 236,037 |
Less: Interest income | (3,954) | (1,209) | (523) |
Interest Costs Capitalized | (2,280) | (926) | (176) |
Interest, net | $ 204,606 | $ 214,352 | $ 235,338 |
Commitments and Contingencies_2
Commitments and Contingencies Commitments and Contingencies (Details Textual) $ in Millions | 12 Months Ended | ||
Feb. 28, 2023 USD ($) aircraft | Feb. 28, 2022 USD ($) | Feb. 28, 2021 USD ($) | |
Long-term Purchase Commitment [Line Items] | |||
Unrecorded Unconditional Purchase Obligation | $ | $ 763.7 | ||
Total number of aircraft owned by joint ventures | aircraft | 9 | ||
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | aircraft | 20 | ||
Operating Lease, Cost | $ | $ 2.1 | $ 1.6 | $ 1.6 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | Feb. 28, 2023 USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2024 | $ 2,259 |
2025 | 2,910 |
2026 | 2,756 |
2027 | 2,694 |
2028 | 2,725 |
Thereafter | 17,179 |
Total | $ 30,523 |
Commitments and Contingencies_3
Commitments and Contingencies Commitments and Contingencies Details 1 (Details) $ in Thousands | Feb. 28, 2023 USD ($) aircraft |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase Obligation | $ 763,711 |
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year | 495,330 |
Purchase Obligation, Due in Second Year | 171,533 |
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 | $ 96,848 |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | aircraft | 20 |
Pre-Delivery Payments | |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Purchase Obligation | $ 46,200 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Feb. 28, 2023 | Feb. 28, 2022 | Feb. 28, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Deferred federal income tax asset | $ 304 | $ 570 | |
Lease incentives and premiums, net of accumulated amortization of $77,722 and $81,553, respectively | 54,208 | 53,513 | |
Flight equipment held for sale | 59,370 | 77,636 | |
Deposits on Flight Equipment | 43,494 | 56,157 | |
Operating Lease, Right-of-Use Asset | 16,930 | 7,176 | |
Deferred Rent Receivables, Net | 35,631 | 55,478 | |
Investments, at fair value | 10,819 | 0 | $ 0 |
Other assets | 125,574 | 105,796 | |
Total other assets | 346,330 | 356,326 | |
Amortization of lease incentives and lease premiums | $ 77,722 | $ 81,553 | |
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, 2023 | Feb. 28, 2022 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 60,225 | $ 58,882 |
Deferred Tax Liabilities, Net | 79,990 | 66,123 |
Accrued interest payable | $ 42,752 | $ 42,013 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total accounts payable, accrued expenses and other liabilities | Total accounts payable, accrued expenses and other liabilities |
Operating Lease, Liability, Current | $ 19,951 | $ 9,846 |
Lease Discount Accrued, After Accumulated Amortization | 3,555 | 560 |
Total accounts payable, accrued expenses and other liabilities | 206,473 | 177,424 |
Lease Discount, Accumulated Amortization | $ 45,586 | $ 45,546 |
Uncategorized Items - ayr-20230
Label | Element | Value |
Payments for Unvested equity based instruments on Merger Date | ayr_PaymentsforUnvestedequitybasedinstrumentsonMergerDate | $ 25,536,000 |
Shares canceled at Merger Date, value | ayr_SharescanceledatMergerDatevalue | 0 |
Common Stock [Member] | ||
Payments for Unvested equity based instruments on Merger Date | ayr_PaymentsforUnvestedequitybasedinstrumentsonMergerDate | $ 1,000 |
Number of non-vested equity instruments purchased on Merger Date | ayr_NumberofnonvestedequityinstrumentspurchasedonMergerDate | 101,809 |
Shares canceled at Merger Date, value | ayr_SharescanceledatMergerDatevalue | $ (750,000) |
Shares Canceled at Merger Date | ayr_SharesCanceledatMergerDate | 74,960,937 |
Additional Paid-in Capital [Member] | ||
Payments for Unvested equity based instruments on Merger Date | ayr_PaymentsforUnvestedequitybasedinstrumentsonMergerDate | $ 25,535,000 |
Shares canceled at Merger Date, value | ayr_SharescanceledatMergerDatevalue | $ 750,000 |