Cover Page
Cover Page - shares | 6 Months Ended | |
Aug. 31, 2023 | Oct. 06, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Aug. 31, 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 | 15,564 | |
Entity Central Index Key | 0001362988 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --02-28 | |
Common Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Shares, par value $0.01 per share | |
Security Exchange Name | NONE | |
No Trading Symbol Flag | true | |
Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preference Shares, par value $0.01 per share | |
Security Exchange Name | NONE | |
No Trading Symbol Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Aug. 31, 2023 | Feb. 28, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 726,428 | $ 231,861 |
Accounts receivable | 11,729 | 12,855 |
Flight equipment held for lease, net | 6,501,828 | 6,567,606 |
Net investment in leases, net | 248,734 | 67,694 |
Unconsolidated equity method investment | 41,367 | 40,505 |
Other assets | 318,851 | 346,330 |
Total assets | 7,848,937 | 7,266,851 |
LIABILITIES | ||
Borrowings from secured financings, net | 913,864 | 752,298 |
Borrowings from unsecured financings, net | 3,991,875 | 3,842,454 |
Accounts payable, accrued expenses and other liabilities | 211,810 | 206,473 |
Lease rentals received in advance | 53,486 | 66,816 |
Security deposits | 62,067 | 61,734 |
Maintenance payments | 526,589 | 465,618 |
Total liabilities | 5,759,691 | 5,395,393 |
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 August 31, 2023 and February 28, 2023 | 0 | 0 |
Common shares, $0.01 par value, 250,000,000 shares authorized, 15,564 and 14,048 shares issued and outstanding at August 31, 2023 and February 28, 2023, respectively | 0 | 0 |
Additional paid-in capital | 2,078,774 | 1,878,774 |
Retained earnings (accumulated deficit) | 10,472 | (7,316) |
Total shareholders’ equity | 2,089,246 | 1,871,458 |
Total liabilities and shareholders’ equity | $ 7,848,937 | $ 7,266,851 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Aug. 31, 2023 | Feb. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Preference shares, par value | $ 0.01 | $ 0.01 |
Preference shares, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 400 | 400 |
Preferred Stock, Shares Outstanding | 400 | 400 |
Preferred Stock, Liquidation Preference, Value | $ 400,000 | $ 400,000 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 250,000,000 | 250,000,000 |
Common shares, shares issued | 15,564 | 14,048 |
Common shares, shares outstanding | 15,564 | 14,048 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Revenues: | ||||
Lease rental revenue | $ 150,351 | $ 146,508 | $ 297,086 | $ 290,652 |
Direct financing and sales-type lease revenue | 5,085 | 2,265 | 6,158 | 4,863 |
Amortization of lease premiums, discounts and incentives | (7,124) | (5,518) | (14,331) | (10,906) |
Maintenance revenue | 15,046 | 20,114 | 49,566 | 47,213 |
Total lease revenue | 163,358 | 163,369 | 338,479 | 331,822 |
Gain on sale of flight equipment | 4,453 | 10,049 | 47,047 | 13,736 |
Other revenue | 145 | 161 | 921 | 3,585 |
Total revenues | 167,956 | 173,579 | 386,447 | 349,143 |
Operating expenses: | ||||
Depreciation | 86,328 | 82,106 | 175,117 | 163,424 |
Interest, net | 57,035 | 50,587 | 113,926 | 100,881 |
Selling, general and administrative | 18,882 | 17,393 | 39,717 | 37,309 |
Provision for credit losses | (834) | 109 | 6,125 | 689 |
Impairment of flight equipment | 1,100 | 33,671 | 2,197 | 38,099 |
Maintenance and other costs | 8,854 | 5,212 | 17,387 | 13,277 |
Total operating expenses | 171,365 | 189,078 | 354,469 | 353,679 |
Other income (expense): | ||||
Loss on extinguishment of debt | 0 | 0 | 0 | (463) |
Other | 3,372 | 2,072 | 4,709 | 2,072 |
Total other income | 3,372 | 2,072 | 4,709 | 1,609 |
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | (37) | (13,427) | 36,687 | (2,927) |
Income tax provision (benefit) | (5,099) | (4,068) | 9,261 | (739) |
Earnings of unconsolidated equity method investment, net of tax | 456 | 666 | 862 | 1,177 |
Net income (loss) | 5,518 | (8,693) | 28,288 | (1,011) |
Earnings available to common shareholders – Basic | (4,982) | (19,193) | 17,788 | (11,511) |
Preference share dividends | (10,500) | (10,500) | (10,500) | (10,500) |
Total comprehensive income (loss) available to common shareholders | $ (4,982) | $ (19,193) | $ 17,788 | $ (11,511) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 5,518 | $ (8,693) | $ 28,288 | $ (1,011) |
Adjustments to reconcile net income to net cash and restricted cash provided by operating activities: | ||||
Depreciation | 86,328 | 82,106 | 175,117 | 163,424 |
Amortization of deferred financing costs | 8,321 | 7,095 | ||
Amortization of lease premiums, discounts and incentives | 7,124 | 5,518 | 14,331 | 10,906 |
Deferred income taxes | 6,179 | 6,588 | ||
Collections on net investment in leases | 1,598 | 4,016 | ||
Security deposits and maintenance payments included in earnings | (9,895) | (2,133) | ||
Gain on sale of flight equipment | (4,453) | (10,049) | (47,047) | (13,736) |
Loss on extinguishment of debt | 0 | 0 | 0 | 463 |
Impairment of flight equipment | 1,100 | 33,671 | 2,197 | 38,099 |
Provision for credit losses | (834) | 109 | 6,125 | 689 |
Other | (845) | (1,179) | ||
Changes in certain assets and liabilities: | ||||
Accounts receivable | 1,437 | 5,808 | ||
Other assets | (9,723) | (8,223) | ||
Accounts payable, accrued expenses and other liabilities | (3,833) | (2,284) | ||
Lease rentals received in advance | 14,165 | 7,094 | ||
Net cash and restricted cash provided by operating activities | 186,415 | 215,616 | ||
Cash flows from investing activities: | ||||
Acquisition and improvement of flight equipment | (379,349) | (372,474) | ||
Proceeds from sale of flight equipment | 126,011 | 171,065 | ||
Aircraft purchase deposits and progress payments, net of deposits returned and aircraft sales deposits | 6,852 | 4,504 | ||
Payments for (Proceeds from) Other Investing Activities | (4,026) | 1,500 | ||
Net cash and restricted cash used in investing activities | (250,512) | (195,405) | ||
Cash flows from financing activities: | ||||
Proceeds from issuance of common shares | 200,000 | 0 | ||
Proceeds from secured and unsecured debt financings | 1,273,709 | 75,000 | ||
Repayments of secured and unsecured debt financings | (963,507) | (58,355) | ||
Debt extinguishment costs | 0 | (291) | ||
Deferred financing costs | (7,536) | (1,903) | ||
Security deposits and maintenance payments received | 77,006 | 63,758 | ||
Security deposits and maintenance payments returned | (10,508) | (11,239) | ||
Dividends paid | (10,500) | (10,500) | ||
Net cash and restricted cash provided by financing activities | 558,664 | 56,470 | ||
Net increase in cash and restricted cash: | 494,567 | 76,681 | ||
Cash and restricted cash at beginning of period | 231,861 | 170,682 | ||
Cash and restricted cash at end of period | 726,428 | 247,363 | 726,428 | 247,363 |
Cash and cash equivalents | 726,428 | 246,713 | 726,428 | 246,713 |
Restricted cash and cash equivalents | 0 | 650 | 0 | 650 |
Unrestricted and restricted cash and cash equivalents | $ 726,428 | $ 247,363 | 726,428 | 247,363 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for interest, net of amounts capitalized | 116,827 | 93,007 | ||
Cash paid for income taxes | 5,631 | 200 | ||
Supplemental disclosures of non-cash investing activities: | ||||
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets assumed in asset acquisitions | 12,927 | 6,100 | ||
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets settled in sale of flight equipment | 11,974 | 14,791 | ||
Transfers from flight equipment held for lease to Net investment in leases and Other assets | $ 182,818 | $ 8,895 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity Statement - USD ($) $ in Thousands | Total | Common Shares | Preferred Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) |
Balance, shares at Feb. 28, 2022 | 14,048 | ||||
Balance at Feb. 28, 2022 | $ 1,829,699 | $ 0 | $ 0 | $ 1,878,774 | $ (49,075) |
Preferred stock, balance, shares at Feb. 28, 2022 | 400 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 7,682 | 7,682 | |||
Balance, shares at May. 31, 2022 | 14,048 | ||||
Balance at May. 31, 2022 | 1,837,381 | $ 0 | $ 0 | 1,878,774 | (41,393) |
Preferred stock, balance, shares at May. 31, 2022 | 400 | ||||
Balance, shares at Feb. 28, 2022 | 14,048 | ||||
Balance at Feb. 28, 2022 | 1,829,699 | $ 0 | $ 0 | 1,878,774 | (49,075) |
Preferred stock, balance, shares at Feb. 28, 2022 | 400 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (1,011) | ||||
Balance, shares at Aug. 31, 2022 | 14,048 | ||||
Balance at Aug. 31, 2022 | 1,818,188 | $ 0 | $ 0 | 1,878,774 | (60,586) |
Preferred stock, balance, shares at Aug. 31, 2022 | 400 | ||||
Balance, shares at May. 31, 2022 | 14,048 | ||||
Balance at May. 31, 2022 | 1,837,381 | $ 0 | $ 0 | 1,878,774 | (41,393) |
Preferred stock, balance, shares at May. 31, 2022 | 400 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (8,693) | (8,693) | |||
Preference share dividends | (10,500) | (10,500) | |||
Balance, shares at Aug. 31, 2022 | 14,048 | ||||
Balance at Aug. 31, 2022 | $ 1,818,188 | $ 0 | $ 0 | 1,878,774 | (60,586) |
Preferred stock, balance, shares at Aug. 31, 2022 | 400 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares (in shares) | 14,048 | ||||
Balance, shares at Feb. 28, 2023 | 14,048 | 14,048 | |||
Balance at Feb. 28, 2023 | $ 1,871,458 | $ 0 | $ 0 | 1,878,774 | (7,316) |
Preferred stock, balance, shares at Feb. 28, 2023 | 400 | 400 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ 22,770 | 22,770 | |||
Preference share dividends | (10,500) | ||||
Balance, shares at May. 31, 2023 | 14,048 | ||||
Balance at May. 31, 2023 | $ 1,894,228 | $ 0 | $ 0 | 1,878,774 | 15,454 |
Preferred stock, balance, shares at May. 31, 2023 | 400 | ||||
Balance, shares at Feb. 28, 2023 | 14,048 | 14,048 | |||
Balance at Feb. 28, 2023 | $ 1,871,458 | $ 0 | $ 0 | 1,878,774 | (7,316) |
Preferred stock, balance, shares at Feb. 28, 2023 | 400 | 400 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | $ 28,288 | ||||
Balance, shares at Aug. 31, 2023 | 15,564 | 15,564 | |||
Balance at Aug. 31, 2023 | $ 2,089,246 | $ 0 | $ 0 | 2,078,774 | 10,472 |
Preferred stock, balance, shares at Aug. 31, 2023 | 400 | 400 | |||
Balance, shares at May. 31, 2023 | 14,048 | ||||
Balance at May. 31, 2023 | $ 1,894,228 | $ 0 | $ 0 | 1,878,774 | 15,454 |
Preferred stock, balance, shares at May. 31, 2023 | 400 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares | 200,000 | 200,000 | |||
Net income (loss) | 5,518 | 5,518 | |||
Preference share dividends | $ (10,500) | (10,500) | |||
Balance, shares at Aug. 31, 2023 | 15,564 | 15,564 | |||
Balance at Aug. 31, 2023 | $ 2,089,246 | $ 0 | $ 0 | $ 2,078,774 | $ 10,472 |
Preferred stock, balance, shares at Aug. 31, 2023 | 400 | 400 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares (in shares) | 15,564 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Summary of Significant Accounting PoliciesOrganizationAircastle 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 consists of 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” and, together with Marubeni, our “Shareholders”).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 ConsolidationThe consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. However, we believe that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2023.The consolidated financial statements include the accounts of Aircastle and all its subsidiaries, including any Variable Interest Entity (“VIE”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.We manage and analyze our business and report on our results of operations based on one operating segment: leasing, financing, selling and managing commercial flight equipment. Our Chief Executive Officer is the chief operating decision maker.The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure subsequent to the balance sheet date of August 31, 2023, through the date on which the consolidated financial statements included in this Form 10-Q were issued.Risk and UncertaintiesIn 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 EstimatesThe 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.Recent Accounting PronouncementsIn March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASC 848”). ASC 848 provides temporary optional expedients and exceptions to certain U.S. GAAP contract modification requirements for contracts affected by reference rate reform as entities transition away from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In December 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in ASC 848. The ICE Benchmark Administration Limited, LIBOR’s administrator, has ceased publishing all LIBOR settings, including the Overnight, 1-month, 3-month, 6-month, and 12-month USD LIBOR U.S. dollar settings. Effective March 1, 2023, we adopted ASC 848 and commenced the transition of our LIBOR-based contracts to the Secured Overnight Financing Rate (“SOFR” or “Term SOFR”). As of August 31, 2023, we had no aircraft leases or debt financings for which the associated lease rental revenue or interest expense used LIBOR as the applicable reference rate. The adoption of ASC 848 did not have a material impact on our consolidated financial statements |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Aug. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value MeasurementsFair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs.The following tables set forth our financial assets as of August 31, 2023 and February 28, 2023 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 Measurements at August 31, 2023 Using Fair Value Hierarchy Fair Value as ofAugust 31, 2023Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1)SignificantOtherObservableInputs(Level 2)SignificantUnobservableInputs(Level 3)ValuationTechniqueAssets:Cash and cash equivalents$726,428 $726,428 $— $— MarketInvestment in debt securities5,029 — — 5,029 IncomeInvestment in equity securities5,757 2,313 — 3,444 Market/IncomeTotal$737,214 $728,741 $— $8,473 Fair Value Measurements at February 28, 2023Using Fair Value Hierarchy Fair Value as of February 28, 2023Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1)SignificantOtherObservableInputs(Level 2)SignificantUnobservableInputs(Level 3)ValuationTechniqueAssets:Cash and cash equivalents$231,861 $231,861 $— $— MarketInvestment in debt securities5,029 — — 5,029 IncomeInvestment in equity securities5,790 2,346 — 3,444 Market/IncomeTotal$242,680 $234,207 $— $8,473 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). Our investments in debt and equity securities consist of notes and shares received as a 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 three and six months ended August 31, 2023, 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.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 InstrumentsOur financial instruments, other than cash, consist principally of cash equivalents, accounts receivable, investments in debt and equity securities, accounts payable and secured and unsecured 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 August 31, 2023, and February 28, 2023 were as follows:August 31, 2023February 28, 2023Carrying Amountof AssetFair Valueof AssetCarrying Amountof AssetFair Valueof AssetInvestment in debt securities$5,029 $5,029 $5,029 $5,029 Investment in equity securities5,757 5,757 5,790 5,790 Carrying Amountof LiabilityFair Valueof LiabilityCarrying Amountof LiabilityFair Valueof LiabilityCredit Facilities$20,000 $20,000 $20,000 $20,000 Unsecured Term Loan155,000 154,932 155,000 151,449 Term Financings922,688 918,700 761,283 739,804 Senior Notes3,850,000 3,685,049 3,700,000 3,524,563 Aircraft ValuationAnnual Recoverability AssessmentWe plan to perform our annual recoverability assessment of all our aircraft during the third quarter of 2023. Additional customer and aircraft specific recoverability assessments are also performed whenever indicators suggest the carrying amount of an asset may not be recoverable. Indicators may include, but are not limited to, a significant lease restructuring or early lease termination, a significant change in an aircraft model’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. 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 value deterioration. The recoverability assessment is a comparison of the carrying value of an 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 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. 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 | 6 Months Ended |
Aug. 31, 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 six months ended August 31, 2023:AmountBalance at February 28, 2023$6,567,606 Additions365,025 Depreciation(174,652)Disposals and transfers to net investment in leases and held for sale(255,054)Impairments(1,097)Balance at August 31, 2023$6,501,828 Accumulated depreciation as of August 31, 2023$2,254,500 |
Lease Rental Revenues
Lease Rental Revenues | 6 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Lease Rental Revenues | Note 4. Lease Rental RevenuesMinimum future lease rentals contracted to be received under our existing operating leases of flight equipment at August 31, 2023 were as follows:Year Ending February 28/29,Amount(1)2024 (Remainder of fiscal year)$302,190 2025540,128 2026426,677 2027361,015 2028290,367 Thereafter862,123 Total$2,782,500 _______________(1)Reflects impact of lessee lease rental deferrals.At August 31, 2023 and February 28, 2023, the amounts of lease incentive liabilities recorded in maintenance payments on our consolidated balance sheets were $29.1 million and $22.4 million, respectively. |
Net Investment in Leases, Net
Net Investment in Leases, Net | 6 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Net Investment in Leases, Net | Net Investment in Leases, NetAt August 31, 2023 and February 28, 2023, our net investment in leases consisted of 13 and 4 aircraft, respectively. The components of our net investment in leases at August 31, 2023 and February 28, 2023, were as follows:August 31, 2023February 28, 2023Lease receivable$133,663 $31,674 Unguaranteed residual value of flight equipment122,184 37,287 Net investment leases255,847 68,961 Allowance for credit losses(7,113)(1,267)Net investment in leases, net$248,734 $67,694 During the six months ended August 31, 2023, 10 aircraft were reclassified from operating leases to sales-type leases. Collectability of the lease payments for these 10 aircraft, which was not deemed probable at the effective date of the lease modification, became probable during the six months ended August 31, 2023. Accordingly, we derecognized the carrying amounts of the underlying aircraft and lease payments recorded by us as deposit liabilities and recognized net investments in leases. A selling profit totaling $32.7 million for these 10 aircraft was recognized as a component of Gain on sale of flight equipment for the six months ended August 31, 2023. We also recognized a provision for credit losses totaling $6.2 million for these 10 aircraft during the six months ended August 31, 2023.The activity in the allowance for credit losses related to our net investment in leases for the six months ended August 31, 2023, was as follows:AmountBalance at February 28, 2023$1,267 Provision for credit losses6,125 Write-offs(279)Balance at August 31, 2023$7,113 At August 31, 2023, future lease payments to be received under our net investment in leases were as follows:Year Ending February 28/29,Amount2024 (Remainder of fiscal year)$12,290 202523,711 202622,884 202723,111 202823,111 Thereafter73,548 Total lease payments to be received178,655 Present value of lease payments - lease receivable(133,663)Difference between undiscounted lease payments and lease receivable$44,992 |
Concentration of Risk
Concentration of Risk | 3 Months Ended |
Aug. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration of Risk | Note 6. Concentration of RiskThe classification of regions in the tables below is based on our customers’ principal place of business.The geographic concentration of the net book value of our fleet (flight equipment held for lease and net investment in leases, or “Net Book Value”) as of August 31, 2023, and February 28, 2023 was as follows: August 31, 2023February 28, 2023RegionNumberofAircraftNet BookValue %NumberofAircraftNet BookValue %Asia and Pacific62 28 %62 28 %Europe90 30 %88 30 %Middle East and Africa7 2 %8 3 %North America43 23 %38 20 %South America31 15 %29 14 %Off-lease6 (1)2 %14 5 %Total239 100 %239 100 %_______________(1)Of the 6 off-lease aircraft at August 31, 2023, we currently have 3 narrow-body aircraft that are undergoing freighter conversion which we are marketing for lease.The following table sets forth individual countries representing at least 10% of our Net Book Value as of August 31, 2023, and February 28, 2023: August 31, 2023February 28, 2023CountryNet BookValueNet BookValue %NumberofLesseesNet BookValueNet BookValue %NumberofLesseesUnited States(1)$671,246 10%5$— —%—_______________(1) As of February 28, 2023, the United States 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: Three Months Ended August 31,Six Months Ended August 31,Region2023202220232022Asia and Pacific29 %35 %30 %34 %Europe31 %29 %30 %29 %Middle East and Africa4 %5 %4 %5 %North America23 %18 %23 %17 %South America13 %13 %13 %15 %Total100 %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:Three Months Ended August 31,Six Months Ended August 31,2023202220232022Number of LesseesCombined % of Lease Rental RevenueNumber of LesseesCombined % of Lease Rental RevenueNumber of LesseesCombined % of Lease Rental RevenueNumber of LesseesCombined % of Lease Rental RevenueLargest lessees by lease rental revenue321%428%321%323%For the three months ended August 31, 2023, total revenue attributable to the United States and India was 13% and 11%, respectively. Total revenue attributable to the Unites States included $4.1 million from gains on sales of flight equipment for the three months ended August 31, 2023. For the six months ended August 31, 2023, total revenue attributable to the United States and India was less than 10%. For the three months ended August 31, 2022, total revenue attributable to the U.K, the United States, and India was 11%, 11%, and 10%, respectively. Total revenue attributable to the U.K. included $11.9 million of maintenance revenue resulting from the lease termination of 1 freighter aircraft. For the six months ended August 31, 2022, total revenue attributable to India was 11% and for the United States and the U.K. was less than 10%. |
Unconsolidated Equity Method In
Unconsolidated Equity Method Investment | 6 Months Ended |
Aug. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Equity Method Investment | Unconsolidated Equity Method InvestmentWe have a joint venture with Mizuho Leasing which has 9 aircraft with a net book value of $278.5 million at August 31, 2023.AmountBalance at February 28, 2023$40,505 Earnings of unconsolidated equity method investment, net of tax862 Balance at August 31, 2023$41,367 |
Borrowings from Secured and Uns
Borrowings from Secured and Unsecured Debt Financings | 6 Months Ended |
Aug. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings from Secured and Unsecured Debt Financings | Borrowings from Secured and Unsecured Debt FinancingsThe outstanding amounts of our secured and unsecured debt financings were as follows: At August 31, 2023At February 28, 2023Debt ObligationOutstandingBorrowingsNumber of AircraftInterest RateFinal StatedMaturityOutstandingBorrowingsSecured Debt Financings:Term Financings(1)$922,688 38 2.36% to 7.74%09/13/24 to 06/27/32$761,283 Less: Debt issuance costs and discounts(8,824)— (8,985)Total secured debt financings, net of debt issuance costs and discounts913,864 38 752,298 Unsecured Debt Financings:5.000% Senior Notes due 2023— 5.00%04/01/23500,000 4.400% Senior Notes due 2023650,000 4.40%09/25/23650,000 Senior Notes due 2024500,000 4.125%05/01/24500,000 Senior Notes due 2025650,000 5.25%08/11/25650,000 Senior Notes due 2026650,000 4.25%06/15/26650,000 2.850% Senior Notes due 2028750,000 2.85%01/26/28750,000 6.500% Senior Notes due 2028650,000 6.50%07/18/28— Unsecured Term Loans155,000 6.90%02/27/24155,000 Revolving Credit Facilities20,000 7.21%02/28/24 to 05/24/2520,000 Less: Debt issuance costs and discounts(33,125)(32,546)Total unsecured debt financings, net of debt issuance costs and discounts3,991,875 3,842,454 Total secured and unsecured debt financings, net of debt issuance costs and discounts$4,905,739 $4,594,752 (1)The borrowings under these financings at August 31, 2023 have a weighted-average fixed rate of interest of 5.46%.Secured Debt Financings:Term FinancingsDuring the six months ended August 31, 2023, we borrowed the remaining $168.7 million available under our full recourse secured financing facility entered into on November 21, 2022 (the “2022 Secured Facility”). The total amount borrowed under the 2022 Secured Facility was $447.7 million in relation to 17 owned aircraft. The 2022 Secured Facility bears interest at a floating rate under the Term SOFR (as defined in the credit agreement governing the 2022 Secured Facility) plus 2.35% per annum and matures on November 21, 2029. Unsecured Debt Financings:5.000% Senior Notes due 2023We repaid the $500.0 million aggregate principal amount of our 5.000% Senior Notes due 2023 at their final stated maturity date in April 2023.6.500% Senior Notes due 2028On July 18, 2023, the Company issued $650.0 million aggregate principal amount of 6.500% Senior Notes due 2028 (the “6.500% Senior Notes due 2028”) at an issue price of 99.815%. The 6.500% Senior Notes due 2028 will mature on July 18, 2028, and bear interest at a rate of 6.50% per annum, payable semi-annually on January 18 and July 18 of each year, commencing on January 18, 2024. Interest accrues on the 6.500% Senior Notes due 2028 from July 18, 2023.4.400% Senior Notes due 2023We repaid the $650.0 million aggregate principal amount of our 4.400% Senior Notes due 2023 at their final stated maturity date in September 2023.Revolving Credit FacilitiesOne of our unsecured revolving credit facilities was expanded from $245.0 million to $375.0 million during the three months ended August 31, 2023. The revolving credit facility matures on May 24, 2025.As of August 31, 2023, we had $20.0 million outstanding under our revolving credit facilities and had $1.9 billion available for borrowing.As of August 31, 2023, we were in compliance with all applicable covenants in our financings. |
Shareholders_ Equity
Shareholders’ Equity | 6 Months Ended |
Aug. 31, 2023 | |
Equity [Abstract] | |
Shareholders’ Equity | Shareholders' EquityIssuance of Common SharesOn July 5, 2023, the Company entered into a Subscription Agreement with its Shareholders, pursuant to which the Company has agreed to make a pro rata issuance of the Company’s common shares, $0.01 par value per share (the “Shares”), for an aggregate purchase price of up to $500.0 million. The Shares will be issued in two tranches, with 1,516 Shares issued under the first tranche on July 18, 2023, for an aggregate purchase price of $200.0 million. The issuance of the second tranche, which is subject to both the approval of the Company’s Board of Directors and shareholders, is expected to occur during the Company’s first fiscal quarter of 2024 for an aggregate purchase price of up to $300.0 million. The number of Shares and the subscription price per share are to be determined and agreed to by the parties at the time of issuance. The Shares will rank pari passu in all respects with other common shares of the Company. The Company has used and intends to continue to use the net proceeds from the issuance of Shares for general corporate purposes.Preference Share DividendsOn March 15, 2023, the Company paid a semi-annual dividend in the amount of $10.5 million for its preference shares, which was approved by the Company’s Board of Directors on January 10, 2023, and accrued as of February 28, 2023.On September 15, 2023, the Company paid a semi-annual dividend in the amount of $10.5 million for its Preference Shares, which was approved by the Company’s Board of Directors on July 11, 2023, and accrued as of August 31, 2023. |
Related Party Disclosures
Related Party Disclosures | 6 Months Ended |
Aug. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsWe incurred fees from our Shareholders as part of intra-company service agreements totaling $2.1 million and $1.2 million during the three months ended August 31, 2023 and 2022, respectively, and $4.1 million and $2.6 million during the six months ended August 31, 2023 and 2022, respectively, whereby our Shareholders provide 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 $0.7 million and $1.6 million during the three months ended August 31, 2023 and 2022, respectively, and $1.1 million and $3.3 million during the six months ended August 31, 2023 and 2022, respectively |
Income Taxes
Income Taxes | 6 Months Ended |
Aug. 31, 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 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 our unconsolidated equity method investment for the three and six months ended August 31, 2023 and 2022 were as follows: Three Months Ended August 31,Six Months Ended August 31, 2023202220232022U.S. operations$6,588 $4,790 $10,870 $10,126 Non-U.S. operations(6,625)(18,217)25,817 (13,053)Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment$(37)$(13,427)$36,687 $(2,927)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 the United States and Ireland 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.We recognized an income tax provision of $9.3 million for the six months ended August 31, 2023, as compared to an income tax benefit of $0.7 million for the six months ended August 31, 2022. Our effective tax rate was 25.2% for each of the six months ended August 31, 2023 and 2022. The increase is primarily attributable to profits generated during the six months ended August 31, 2023, and the mix of such profits in taxable and non-taxable jurisdictions. The six months ended August 31, 2023, included gains on the sale of aircraft, which were recorded in a low tax jurisdiction. The six months ended August 31, 2022, included net non-cash impairment charges, which were recorded in a low tax jurisdiction. |
Interest, Net
Interest, Net | 6 Months Ended |
Aug. 31, 2023 | |
Interest Income (Expense), Net [Abstract] | |
Interest, Net | Interest, NetThe following table shows the components of interest, net: Three Months Ended August 31,Six Months Ended August 31, 2023202220232022Interest on borrowings and other liabilities$58,133 $48,392 $114,005 $95,633 Amortization of deferred financing fees and debt discount4,290 3,498 8,321 7,095 Interest expense62,423 51,890 122,326 102,728 Less: Interest income(4,736)(748)(7,028)(1,007)Less: Capitalized interest(652)(555)(1,372)(840)Interest, net$57,035 $50,587 $113,926 $100,881 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesRent expense, primarily for the corporate office and sales and marketing facilities, was $0.6 million and $0.4 million, and $1.3 million and $0.9 million for the three and six months ended August 31, 2023 and 2022, respectively.As of August 31, 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,Amount2024 (Remainder of fiscal year)$1,368 20252,944 20262,790 20272,728 20282,760 Thereafter17,681 Total$30,271 At August 31, 2023, we had commitments to acquire 12 aircraft for $402.4 million.At August 31, 2023, commitments, including $34.4 million of remaining progress payments, contractual price escalations and other adjustments for these aircraft, net of amounts already paid, were as follows:Year Ending February 28/29,Amount2024 (Remainder of fiscal year)$131,307 2025173,169 202697,877 2027— 2028— Thereafter— Total$402,353 |
Other Assets
Other Assets | 6 Months Ended |
Aug. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other AssetsOther assets consisted of the following as of August 31, 2023, and February 28, 2023:August 31,2023February 28,2023Deferred income tax asset$268 $304 Lease incentives and premiums, net of accumulated amortization of $84,863 and $77,722, respectively34,342 54,208 Flight equipment held for sale24,902 59,370 Aircraft purchase deposits and Embraer E-2 progress payments40,382 43,494 Right-of-use asset(1)16,721 16,930 Deferred rent receivable32,353 35,631 Investments, at fair value10,786 10,819 Other assets159,097 125,574 Total other assets$318,851 $346,330 ______________(1)Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 6 Months Ended |
Aug. 31, 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 August 31, 2023, and February 28, 2023:August 31,2023February 28,2023Accounts payable, accrued expenses and other liabilities$64,237 $60,225 Deferred income tax liability86,133 79,990 Accrued interest payable38,355 42,752 Lease liability19,998 19,951 Lease discounts, net of amortization of $45,183 and $45,586, respectively3,087 3,555 Total accounts payable, accrued expenses and other liabilities$211,810 $206,473 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Aug. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventsPLACEHOLDER |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Aug. 31, 2023 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | OrganizationAircastle 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 consists of 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” and, together with Marubeni, our “Shareholders”).Aircastle is a holding company and conducts its business through subsidiaries that are wholly owned, either directly or indirectly, by Aircastle. |
Principles of Consolidation | Basis of Presentation and Principles of ConsolidationThe consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”).The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. However, we believe that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2023.The consolidated financial statements include the accounts of Aircastle and all its subsidiaries, including any Variable Interest Entity (“VIE”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation.We manage and analyze our business and report on our results of operations based on one operating segment: leasing, financing, selling and managing commercial flight equipment. Our Chief Executive Officer is the chief operating decision maker.The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure subsequent to the balance sheet date of August 31, 2023, through the date on which the consolidated financial statements included in this Form 10-Q were issued. |
Concentration Risk, Credit Risk, Policy | Risk and UncertaintiesIn 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 | Use of EstimatesThe 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. |
New Accounting Pronouncements, Policy | Recent Accounting PronouncementsIn March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASC 848”). ASC 848 provides temporary optional expedients and exceptions to certain U.S. GAAP contract modification requirements for contracts affected by reference rate reform as entities transition away from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In December 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in ASC 848. The ICE Benchmark Administration Limited, LIBOR’s administrator, has ceased publishing all LIBOR settings, including the Overnight, 1-month, 3-month, 6-month, and 12-month USD LIBOR U.S. dollar settings. Effective March 1, 2023, we adopted ASC 848 and commenced the transition of our LIBOR-based contracts to the Secured Overnight Financing Rate (“SOFR” or “Term SOFR”). As of August 31, 2023, we had no aircraft leases or debt financings for which the associated lease rental revenue or interest expense used LIBOR as the applicable reference rate. The adoption of ASC 848 did not have a material impact on our consolidated financial statements |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following tables set forth our financial assets as of August 31, 2023 and February 28, 2023 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 Measurements at August 31, 2023 Using Fair Value Hierarchy Fair Value as ofAugust 31, 2023Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1)SignificantOtherObservableInputs(Level 2)SignificantUnobservableInputs(Level 3)ValuationTechniqueAssets:Cash and cash equivalents$726,428 $726,428 $— $— MarketInvestment in debt securities5,029 — — 5,029 IncomeInvestment in equity securities5,757 2,313 — 3,444 Market/IncomeTotal$737,214 $728,741 $— $8,473 Fair Value Measurements at February 28, 2023Using Fair Value Hierarchy Fair Value as of February 28, 2023Quoted Pricesin ActiveMarkets forIdenticalAssets(Level 1)SignificantOtherObservableInputs(Level 2)SignificantUnobservableInputs(Level 3)ValuationTechniqueAssets:Cash and cash equivalents$231,861 $231,861 $— $— MarketInvestment in debt securities5,029 — — 5,029 IncomeInvestment in equity securities5,790 2,346 — 3,444 Market/IncomeTotal$242,680 $234,207 $— $8,473 |
Carrying amounts and fair values of financial instruments | The carrying amounts and fair values of our financial instruments at August 31, 2023, and February 28, 2023 were as follows:August 31, 2023February 28, 2023Carrying Amountof AssetFair Valueof AssetCarrying Amountof AssetFair Valueof AssetInvestment in debt securities$5,029 $5,029 $5,029 $5,029 Investment in equity securities5,757 5,757 5,790 5,790 Carrying Amountof LiabilityFair Valueof LiabilityCarrying Amountof LiabilityFair Valueof LiabilityCredit Facilities$20,000 $20,000 $20,000 $20,000 Unsecured Term Loan155,000 154,932 155,000 151,449 Term Financings922,688 918,700 761,283 739,804 Senior Notes3,850,000 3,685,049 3,700,000 3,524,563 |
Flight Equipment Held for Lea_2
Flight Equipment Held for Lease, Net (Tables) | 6 Months Ended |
Aug. 31, 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 six months ended August 31, 2023:AmountBalance at February 28, 2023$6,567,606 Additions365,025 Depreciation(174,652)Disposals and transfers to net investment in leases and held for sale(255,054)Impairments(1,097)Balance at August 31, 2023$6,501,828 Accumulated depreciation as of August 31, 2023$2,254,500 |
Lease Rental Revenues (Tables)
Lease Rental Revenues (Tables) | 6 Months Ended |
Aug. 31, 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 August 31, 2023 were as follows:Year Ending February 28/29,Amount(1)2024 (Remainder of fiscal year)$302,190 2025540,128 2026426,677 2027361,015 2028290,367 Thereafter862,123 Total$2,782,500 _______________(1)Reflects impact of lessee lease rental deferrals. |
Net Investment in Leases, Net (
Net Investment in Leases, Net (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Net Investment in Leases | The components of our net investment in leases at August 31, 2023 and February 28, 2023, were as follows:August 31, 2023February 28, 2023Lease receivable$133,663 $31,674 Unguaranteed residual value of flight equipment122,184 37,287 Net investment leases255,847 68,961 Allowance for credit losses(7,113)(1,267)Net investment in leases, net$248,734 $67,694 |
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 six months ended August 31, 2023, was as follows:AmountBalance at February 28, 2023$1,267 Provision for credit losses6,125 Write-offs(279)Balance at August 31, 2023$7,113 At August 31, 2023, future lease payments to be received under our net investment in leases were as follows:Year Ending February 28/29,Amount2024 (Remainder of fiscal year)$12,290 202523,711 202622,884 202723,111 202823,111 Thereafter73,548 Total lease payments to be received178,655 Present value of lease payments - lease receivable(133,663)Difference between undiscounted lease payments and lease receivable$44,992 |
Concentration of Risk (Tables)
Concentration of Risk (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Long-lived Assets by Geographic Areas | The geographic concentration of the net book value of our fleet (flight equipment held for lease and net investment in leases, or “Net Book Value”) as of August 31, 2023, and February 28, 2023 was as follows: August 31, 2023February 28, 2023RegionNumberofAircraftNet BookValue %NumberofAircraftNet BookValue %Asia and Pacific62 28 %62 28 %Europe90 30 %88 30 %Middle East and Africa7 2 %8 3 %North America43 23 %38 20 %South America31 15 %29 14 %Off-lease6 (1)2 %14 5 %Total239 100 %239 100 %_______________(1)Of the 6 off-lease aircraft at August 31, 2023, we currently have 3 narrow-body aircraft that are undergoing freighter conversion which we are marketing for lease. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | The following table sets forth individual countries representing at least 10% of our Net Book Value as of August 31, 2023, and February 28, 2023: August 31, 2023February 28, 2023CountryNet BookValueNet BookValue %NumberofLesseesNet BookValueNet BookValue %NumberofLesseesUnited States(1)$671,246 10%5$— —%—_______________(1) As of February 28, 2023, the United States represented less than 10% of our Net Book Value. |
Revenue from External Customers by Geographic Areas | The geographic concentration of our lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended August 31,Six Months Ended August 31,Region2023202220232022Asia and Pacific29 %35 %30 %34 %Europe31 %29 %30 %29 %Middle East and Africa4 %5 %4 %5 %North America23 %18 %23 %17 %South America13 %13 %13 %15 %Total100 %100 %100 %100 % |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | 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:Three Months Ended August 31,Six Months Ended August 31,2023202220232022Number of LesseesCombined % of Lease Rental RevenueNumber of LesseesCombined % of Lease Rental RevenueNumber of LesseesCombined % of Lease Rental RevenueNumber of LesseesCombined % of Lease Rental RevenueLargest lessees by lease rental revenue321%428%321%323% |
Unconsolidated Equity Method _2
Unconsolidated Equity Method Investment (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | AmountBalance at February 28, 2023$40,505 Earnings of unconsolidated equity method investment, net of tax862 Balance at August 31, 2023$41,367 |
Borrowings from Secured and U_2
Borrowings from Secured and Unsecured Debt Financings (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding amounts of secured and unsecured term debt financings | The outstanding amounts of our secured and unsecured debt financings were as follows: At August 31, 2023At February 28, 2023Debt ObligationOutstandingBorrowingsNumber of AircraftInterest RateFinal StatedMaturityOutstandingBorrowingsSecured Debt Financings:Term Financings(1)$922,688 38 2.36% to 7.74%09/13/24 to 06/27/32$761,283 Less: Debt issuance costs and discounts(8,824)— (8,985)Total secured debt financings, net of debt issuance costs and discounts913,864 38 752,298 Unsecured Debt Financings:5.000% Senior Notes due 2023— 5.00%04/01/23500,000 4.400% Senior Notes due 2023650,000 4.40%09/25/23650,000 Senior Notes due 2024500,000 4.125%05/01/24500,000 Senior Notes due 2025650,000 5.25%08/11/25650,000 Senior Notes due 2026650,000 4.25%06/15/26650,000 2.850% Senior Notes due 2028750,000 2.85%01/26/28750,000 6.500% Senior Notes due 2028650,000 6.50%07/18/28— Unsecured Term Loans155,000 6.90%02/27/24155,000 Revolving Credit Facilities20,000 7.21%02/28/24 to 05/24/2520,000 Less: Debt issuance costs and discounts(33,125)(32,546)Total unsecured debt financings, net of debt issuance costs and discounts3,991,875 3,842,454 Total secured and unsecured debt financings, net of debt issuance costs and discounts$4,905,739 $4,594,752 (1)The borrowings under these financings at August 31, 2023 have a weighted-average fixed rate of interest of 5.46%. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Aug. 31, 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 our unconsolidated equity method investment for the three and six months ended August 31, 2023 and 2022 were as follows: Three Months Ended August 31,Six Months Ended August 31, 2023202220232022U.S. operations$6,588 $4,790 $10,870 $10,126 Non-U.S. operations(6,625)(18,217)25,817 (13,053)Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment$(37)$(13,427)$36,687 $(2,927) |
Interest, Net (Tables)
Interest, Net (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Interest Income (Expense), Net [Abstract] | |
Components of Interest | The following table shows the components of interest, net: Three Months Ended August 31,Six Months Ended August 31, 2023202220232022Interest on borrowings and other liabilities$58,133 $48,392 $114,005 $95,633 Amortization of deferred financing fees and debt discount4,290 3,498 8,321 7,095 Interest expense62,423 51,890 122,326 102,728 Less: Interest income(4,736)(748)(7,028)(1,007)Less: Capitalized interest(652)(555)(1,372)(840)Interest, net$57,035 $50,587 $113,926 $100,881 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of obligations under non-cancelable operating leases | As of August 31, 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,Amount2024 (Remainder of fiscal year)$1,368 20252,944 20262,790 20272,728 20282,760 Thereafter17,681 Total$30,271 |
Long-term Purchase Commitment | At August 31, 2023, commitments, including $34.4 million of remaining progress payments, contractual price escalations and other adjustments for these aircraft, net of amounts already paid, were as follows:Year Ending February 28/29,Amount2024 (Remainder of fiscal year)$131,307 2025173,169 202697,877 2027— 2028— Thereafter— Total$402,353 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Aug. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Principal components of other assets | Other assets consisted of the following as of August 31, 2023, and February 28, 2023:August 31,2023February 28,2023Deferred income tax asset$268 $304 Lease incentives and premiums, net of accumulated amortization of $84,863 and $77,722, respectively34,342 54,208 Flight equipment held for sale24,902 59,370 Aircraft purchase deposits and Embraer E-2 progress payments40,382 43,494 Right-of-use asset(1)16,721 16,930 Deferred rent receivable32,353 35,631 Investments, at fair value10,786 10,819 Other assets159,097 125,574 Total other assets$318,851 $346,330 ______________(1)Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Aug. 31, 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 August 31, 2023, and February 28, 2023:August 31,2023February 28,2023Accounts payable, accrued expenses and other liabilities$64,237 $60,225 Deferred income tax liability86,133 79,990 Accrued interest payable38,355 42,752 Lease liability19,998 19,951 Lease discounts, net of amortization of $45,183 and $45,586, respectively3,087 3,555 Total accounts payable, accrued expenses and other liabilities$211,810 $206,473 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Aug. 31, 2023 segment | |
Accounting Policies [Abstract] | |
Number of operating segments | 1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Feb. 28, 2023 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Debt Securities | ||
Assets: | ||
Investment | $ 5,029 | $ 5,029 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Equity Securities | ||
Assets: | ||
Investment | 5,757 | 5,790 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 726,428 | 231,861 |
Total | 728,741 | 234,207 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt Securities | ||
Assets: | ||
Investment | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities | ||
Assets: | ||
Investment | 2,313 | 2,346 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities | ||
Assets: | ||
Investment | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities | ||
Assets: | ||
Investment | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total | 8,473 | 8,473 |
Recurring | Significant Unobservable Inputs (Level 3) | Debt Securities | ||
Assets: | ||
Investment | 5,029 | 5,029 |
Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | ||
Assets: | ||
Investment | 3,444 | 3,444 |
Recurring | Estimate of Fair Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 726,428 | 231,861 |
Total | 737,214 | 242,680 |
Recurring | Estimate of Fair Value Measurement | Debt Securities | ||
Assets: | ||
Investment | 5,029 | 5,029 |
Recurring | Estimate of Fair Value Measurement | Equity Securities | ||
Assets: | ||
Investment | $ 5,757 | $ 5,790 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | 6 Months Ended |
Aug. 31, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Transfers, net | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Feb. 28, 2023 |
Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Debt Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investment | $ 5,029 | $ 5,029 |
Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Equity Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investment | 5,757 | 5,790 |
Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Debt Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investment | 5,029 | 5,029 |
Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Equity Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investment | 5,757 | 5,790 |
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments | 20,000 | 20,000 |
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments | 20,000 | 20,000 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Reported Value Measurement | DBJ Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments | 155,000 | 155,000 |
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 instruments | 3,850,000 | 3,700,000 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | DBJ Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments | 154,932 | 151,449 |
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 instruments | 3,685,049 | 3,524,563 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Term Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments | 922,688 | 761,283 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Term Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt instruments | $ 918,700 | $ 739,804 |
Flight Equipment Held for Lea_3
Flight Equipment Held for Lease, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Impaired Long-Lived Assets Held And Used [Roll Forward] | ||||
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation | $ 6,567,606 | |||
Depreciation | $ (86,328) | $ (82,106) | (175,117) | $ (163,424) |
Transfers from flight equipment held for lease to Net investment in leases and Other assets | 182,818 | 8,895 | ||
Impairments | (1,100) | $ (33,671) | (2,197) | $ (38,099) |
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation | 6,501,828 | 6,501,828 | ||
Flight Equipment | ||||
Impaired Long-Lived Assets Held And Used [Roll Forward] | ||||
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation | 6,567,606 | |||
Additions | 365,025 | |||
Depreciation | (174,652) | |||
Transfers from flight equipment held for lease to Net investment in leases and Other assets | (255,054) | |||
Impairments | (1,097) | |||
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation | 6,501,828 | 6,501,828 | ||
Property, Plant, and Equipment, Lessor Asset under Operating Lease, Accumulated Depreciation | $ 2,254,500 | $ 2,254,500 |
Lease Rental Revenues (Details)
Lease Rental Revenues (Details) $ in Thousands | Aug. 31, 2023 USD ($) |
Annual future minimum lease rentals receivable | |
2024 (Remainder of fiscal year) | $ 302,190 |
2025 | 540,128 |
2026 | 426,677 |
2027 | 361,015 |
2028 | 290,367 |
Thereafter | 862,123 |
Total | $ 2,782,500 |
Lease Rental Revenues (Details
Lease Rental Revenues (Details Textual) - USD ($) $ in Thousands | Aug. 31, 2023 | Feb. 28, 2023 |
Maintenance Payments | ||
Revenue, Major Customer [Line Items] | ||
Lease incentive liabilities | $ 29,100 | $ 22,400 |
Net Investment in Leases, Net_2
Net Investment in Leases, Net (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Aug. 31, 2023 USD ($) aircraft | Aug. 31, 2022 USD ($) | Aug. 31, 2023 USD ($) aircraft | Aug. 31, 2022 USD ($) | Feb. 28, 2023 aircraft | |
Operating Leased Assets [Line Items] | |||||
Number of leased assets | aircraft | 13 | 13 | 4 | ||
Number of leased assets transferred in (out) | aircraft | 10 | 10 | |||
Gain on sale of flight equipment | $ 4,453 | $ 10,049 | $ 47,047 | $ 13,736 | |
Provision for credit losses | 6,125 | ||||
Net Investment in Lease | |||||
Operating Leased Assets [Line Items] | |||||
Gain on sale of flight equipment | 32,700 | ||||
Provision for credit losses | $ 6,200 |
Net Investment in Leases, Net_3
Net Investment in Leases, Net (Details 2) - USD ($) $ in Thousands | Aug. 31, 2023 | Feb. 28, 2023 |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ||
Lease receivable | $ 133,663 | $ 31,674 |
Unguaranteed residual value of flight equipment | 122,184 | 37,287 |
Net investment leases | 255,847 | 68,961 |
Allowance for credit losses | (7,113) | (1,267) |
Net investment in leases, net | 248,734 | $ 67,694 |
2024 (Remainder of fiscal year) | 12,290 | |
2025 | 23,711 | |
2026 | 22,884 | |
2027 | 23,111 | |
2028 | 23,111 | |
Thereafter | 73,548 | |
Total lease payments to be received | 178,655 | |
Present value of lease payments - lease receivable | (133,663) | |
Difference between undiscounted lease payments and lease receivable | $ 44,992 |
Net Investment in Leases, Net -
Net Investment in Leases, Net - Credit Loss Rollforward (Details) $ in Thousands | 6 Months Ended |
Aug. 31, 2023 USD ($) | |
Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | |
Balance at February 28, 2023 | $ 1,267 |
Provision for credit losses | 6,125 |
Write-offs | (279) |
Balance at August 31, 2023 | $ 7,113 |
Concentration of Risk (Details)
Concentration of Risk (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Aug. 31, 2023 USD ($) aircraft Lessee | Aug. 31, 2022 USD ($) Lessee | Aug. 31, 2023 USD ($) aircraft Lessee | Aug. 31, 2022 USD ($) Lessee | Feb. 28, 2023 USD ($) aircraft Lessee | Oct. 06, 2023 aircraft | |
Concentration Risk [Line Items] | ||||||
Number of Aircraft | 239 | 239 | 239 | |||
Percentage | 100% | 100% | 100% | 100% | 100% | |
Number of off-lease aircraft marketed for lease | 6 | 6 | ||||
Number of off-lease aircraft marketed for lease or sale | 14 | |||||
Gain on sale of flight equipment | $ | $ 4,453 | $ 10,049 | $ 47,047 | $ 13,736 | ||
Maintenance revenue | $ | $ 15,046 | 20,114 | $ 49,566 | $ 47,213 | ||
Asia and Pacific | ||||||
Concentration Risk [Line Items] | ||||||
Number of Aircraft | 62 | 62 | 62 | |||
Europe | ||||||
Concentration Risk [Line Items] | ||||||
Number of Aircraft | 90 | 90 | 88 | |||
Middle East and Africa | ||||||
Concentration Risk [Line Items] | ||||||
Number of Aircraft | 7 | 7 | 8 | |||
North America | ||||||
Concentration Risk [Line Items] | ||||||
Number of Aircraft | 43 | 43 | 38 | |||
South America | ||||||
Concentration Risk [Line Items] | ||||||
Number of Aircraft | 31 | 31 | 29 | |||
United States | ||||||
Concentration Risk [Line Items] | ||||||
Net Book Value | $ | $ 671,246 | $ 671,246 | $ 0 | |||
Net Book Value % | 10% | 0% | ||||
Number of Lessees | Lessee | 5 | 0 | ||||
Gain on sale of flight equipment | $ | $ 4,100 | |||||
United Kingdom | ||||||
Concentration Risk [Line Items] | ||||||
Maintenance revenue | $ | $ 11,900 | |||||
Geographic Concentration Risk | Net Book Value | Asia and Pacific | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 28% | 28% | ||||
Geographic Concentration Risk | Net Book Value | Europe | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 30% | 30% | ||||
Geographic Concentration Risk | Net Book Value | Middle East and Africa | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 2% | 3% | ||||
Geographic Concentration Risk | Net Book Value | North America | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 23% | 20% | ||||
Geographic Concentration Risk | Net Book Value | South America | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 15% | 14% | ||||
Geographic Concentration Risk | Net Book Value | Off Lease | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 2% | 5% | ||||
Geographic Concentration Risk | Lease Rental Revenue | Asia and Pacific | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 29% | 35% | 30% | 34% | ||
Geographic Concentration Risk | Lease Rental Revenue | Europe | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 31% | 29% | 30% | 29% | ||
Geographic Concentration Risk | Lease Rental Revenue | Middle East and Africa | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 4% | 5% | 4% | 5% | ||
Geographic Concentration Risk | Lease Rental Revenue | North America | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 23% | 18% | 23% | 17% | ||
Geographic Concentration Risk | Lease Rental Revenue | South America | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 13% | 13% | 13% | 15% | ||
Geographic Concentration Risk | Total Revenue | United States | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 13% | 11% | ||||
Geographic Concentration Risk | Total Revenue | India | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 11% | 10% | 11% | |||
Geographic Concentration Risk | Total Revenue | United Kingdom | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 11% | |||||
Largest lessees by lease rental revenue | ||||||
Concentration Risk [Line Items] | ||||||
Number of customers | Lessee | 3 | 4 | 3 | 3 | ||
Largest lessees by lease rental revenue | Customer Concentration Risk | Lease Rental Revenue | ||||||
Concentration Risk [Line Items] | ||||||
Percentage | 21% | 28% | 21% | 23% | ||
Narrow-body [Member] | Subsequent Event | ||||||
Concentration Risk [Line Items] | ||||||
Number of off-lease aircraft marketed for lease or sale | 3 | |||||
Freighter Aircraft | United Kingdom | Aircraft Operated Outside Country of Base Operations | ||||||
Concentration Risk [Line Items] | ||||||
Number of aircraft that were repossessed | 1 |
Unconsolidated Equity Method _3
Unconsolidated Equity Method Investment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 USD ($) aircraft | Aug. 31, 2022 USD ($) | Aug. 31, 2023 USD ($) aircraft | Aug. 31, 2022 USD ($) | |
Equity Method Investments [Roll Forward] | ||||
Beginning balance | $ 40,505 | |||
Earnings of unconsolidated equity method investment, net of tax | $ 456 | $ 666 | 862 | $ 1,177 |
Ending balance | $ 41,367 | $ 41,367 | ||
Equity Method Investee | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Total number of aircraft owned by joint ventures | aircraft | 9 | 9 | ||
Net Book Value | $ 278,500 | $ 278,500 |
Borrowings from Secured and U_3
Borrowings from Secured and Unsecured Debt Financings (Details) $ in Thousands | Aug. 31, 2023 USD ($) aircraft | Jul. 18, 2023 USD ($) | Apr. 03, 2023 USD ($) | Feb. 28, 2023 USD ($) |
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from secured financings | $ 913,864 | $ 752,298 | ||
Borrowings from unsecured financings, net | $ 3,991,875 | 3,842,454 | ||
Number of Aircraft | aircraft | 38 | |||
Total secured and unsecured debt financings, net of debt issuance costs and discounts | $ 4,905,739 | 4,594,752 | ||
Line of Credit | Revolving Credit Facility | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 20,000 | 20,000 | ||
Line of Credit | Maximum | Revolving Credit Facility | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Interest Rate | 7.21% | |||
Bank Financings | Notes Payable to Banks | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from secured financings | $ 922,688 | 761,283 | ||
Number of Aircraft | aircraft | 38 | |||
Bank Financings | Notes Payable to Banks | Minimum | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Interest Rate | 2.36% | |||
Bank Financings | Notes Payable to Banks | Maximum | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Interest Rate | 7.74% | |||
Bank Financings | Notes Payable, Other Payables | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Weighted-average fixed interest rate | 5.46% | |||
Secured Debt | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Number of Aircraft | aircraft | 0 | |||
Debt issuance costs and discounts | $ (8,824) | (8,985) | ||
5.000% Senior Notes due 2023 | Senior Notes | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 500,000 | |||
Interest Rate | 5% | |||
5.000% Senior Notes due 2023 | Senior Notes | 5.00 | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 0 | 500,000 | ||
Interest Rate | 5% | |||
4.400% Senior Notes due 2023 | Senior Notes | 4.40% | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 650,000 | 650,000 | ||
Interest Rate | 4.40% | |||
Senior Notes due 2024 | Senior Notes | 4.125 | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 500,000 | 500,000 | ||
Interest Rate | 4.125% | |||
Senior Notes due 2025 | Senior Notes | 5.25% | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 650,000 | 650,000 | ||
Interest Rate | 5.25% | |||
Senior Notes due 2026 | Senior Notes | 4.25% | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 650,000 | 650,000 | ||
Interest Rate | 4.25% | |||
2.850% Senior Notes due 2028 | Senior Notes | 2.85% | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 750,000 | 750,000 | ||
Interest Rate | 2.85% | |||
6.500% Senior Notes due 2028 | Senior Notes | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 650,000 | |||
6.500% Senior Notes due 2028 | Senior Notes | 6.50% | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 650,000 | 0 | ||
Interest Rate | 6.50% | 6.50% | ||
Unsecured Term Loans | Notes Payable to Banks | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Interest Rate | 6.90% | |||
Unsecured Term Loans | Unsecured Term Loans | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Borrowings from unsecured financings, net | $ 155,000 | 155,000 | ||
Unsecured Debt | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||
Debt issuance costs and discounts | $ (33,125) | $ (32,546) |
Borrowings from Secured and U_4
Borrowings from Secured and Unsecured Debt Financings (Details Textual) $ in Thousands | Nov. 21, 2022 aircraft | Sep. 25, 2023 USD ($) | Aug. 31, 2023 USD ($) | Aug. 16, 2023 USD ($) | Jul. 18, 2023 USD ($) | Jul. 12, 2023 numberOfRevolvingCreditFacilities | Jun. 05, 2023 numberOfRevolvingCreditFacilities | Apr. 03, 2023 USD ($) | Feb. 28, 2023 USD ($) |
Debt Instrument [Line Items] | |||||||||
Borrowings from secured financings, net | $ 913,864 | $ 752,298 | |||||||
Borrowings from unsecured financings, net | 3,991,875 | 3,842,454 | |||||||
Remaining borrowing capacity | 1,900,000 | ||||||||
2022 Secured Facility | Secured Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount borrowed during the current period | 168,700 | ||||||||
Borrowings from secured financings, net | $ 447,700 | ||||||||
Maximum number of aircraft secured by debt instrument | aircraft | 17 | ||||||||
2022 Secured Facility | Secured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread | 2.35% | ||||||||
5.000% Senior Notes due 2023 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5% | ||||||||
Borrowings from unsecured financings, net | $ 500,000 | ||||||||
6.500% Senior Notes due 2028 | Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings from unsecured financings, net | $ 650,000 | ||||||||
Debt issue price percent | 99.815% | ||||||||
6.500% Senior Notes due 2028 | Senior Notes | 6.50% | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 6.50% | 6.50% | |||||||
Borrowings from unsecured financings, net | $ 650,000 | 0 | |||||||
4.400% Senior Notes due 2023 | Senior Notes | Subsequent Event | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 4.40% | ||||||||
Borrowings from unsecured financings, net | $ 650,000 | ||||||||
Revolving Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings from unsecured financings, net | 20,000 | $ 20,000 | |||||||
Revolving Credit Facility | DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of debt instrument at time of issuance | numberOfRevolvingCreditFacilities | 1 | 1 | |||||||
Current borrowing capacity | $ 375,000 | ||||||||
Revolving Credit Facility | DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Tranche C ($245mm) - DBS Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Current borrowing capacity | $ 245,000 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Aug. 31, 2023 USD ($) $ / shares shares | May 31, 2023 USD ($) | Aug. 31, 2022 USD ($) | Jul. 05, 2023 USD ($) numberOfTranchesForSubscriptionAgreement shares | Feb. 28, 2023 $ / shares shares | |
Class of Stock [Line Items] | |||||
Common shares, par value | $ / shares | $ 0.01 | $ 0.01 | |||
Common stock, value, subscriptions | $ 500,000 | ||||
Number of tranches | numberOfTranchesForSubscriptionAgreement | 2 | ||||
Issuance of common shares (in shares) | shares | 15,564 | 1,516 | 14,048 | ||
Preference share dividends | $ 10,500 | $ 10,500 | $ 10,500 | ||
Subscription Agreement with Marubeni/Mizuho - Tranche One ($200.0 million) | |||||
Class of Stock [Line Items] | |||||
Common stock, value, subscriptions | $ 200,000 | ||||
Subscription Agreement with Marubeni/Mizuho - Tranche Two ($300.0 million) | |||||
Class of Stock [Line Items] | |||||
Common stock, value, subscriptions | $ 300,000 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Marubeni Service Agreement | ||||
Related Party Transaction [Line Items] | ||||
Amounts of transactions | $ 2.1 | $ 1.2 | $ 4.1 | $ 2.6 |
Marubeni Affiliate Parts Management Services and Supply Agreement | ||||
Related Party Transaction [Line Items] | ||||
Amounts of transactions | $ 0.7 | $ 1.6 | $ 1.1 | $ 3.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Sources of income from continuing operations before income taxes | ||||
U.S. operations | $ 6,588 | $ 4,790 | $ 10,870 | $ 10,126 |
Non-U.S. operations | (6,625) | (18,217) | 25,817 | (13,053) |
Income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment | $ (37) | $ (13,427) | $ 36,687 | $ (2,927) |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax provision (benefit) | $ (5,099) | $ (4,068) | $ 9,261 | $ (739) |
Effective tax rate | 25.20% |
Interest, Net (Details)
Interest, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 | Aug. 31, 2022 | Aug. 31, 2023 | Aug. 31, 2022 | |
Interest Income (Expense), Net [Abstract] | ||||
Interest on borrowings and other liabilities | $ 58,133 | $ 48,392 | $ 114,005 | $ 95,633 |
Amortization of deferred financing fees and debt discount | 4,290 | 3,498 | 8,321 | 7,095 |
Interest expense | 62,423 | 51,890 | 122,326 | 102,728 |
Less: Interest income | (4,736) | (748) | (7,028) | (1,007) |
Less: Capitalized interest | (652) | (555) | (1,372) | (840) |
Interest, net | $ 57,035 | $ 50,587 | $ 113,926 | $ 100,881 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Aug. 31, 2023 USD ($) aircraft | Aug. 31, 2022 USD ($) | Aug. 31, 2023 USD ($) aircraft | Aug. 31, 2022 USD ($) | |
Types of Commercial Aircraft [Line Items] | ||||
Rent expense | $ 600 | $ 400 | $ 1,300 | $ 900 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
2024 (Remainder of fiscal year) | 1,368 | 1,368 | ||
2025 | 2,944 | 2,944 | ||
2026 | 2,790 | 2,790 | ||
2027 | 2,728 | 2,728 | ||
2028 | 2,760 | 2,760 | ||
Thereafter | 17,681 | 17,681 | ||
Total | $ 30,271 | $ 30,271 | ||
Committed to acquire aircraft | aircraft | 12 | 12 | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||||
2024 (Remainder of fiscal year) | $ 131,307 | $ 131,307 | ||
2025 | 173,169 | 173,169 | ||
2026 | 97,877 | 97,877 | ||
2027 | 0 | 0 | ||
2028 | 0 | 0 | ||
Thereafter | 0 | 0 | ||
Total | 402,353 | 402,353 | ||
Pre-Delivery Payments | ||||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||||
Total | $ 34,400 | $ 34,400 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Feb. 28, 2023 |
Principal components of other assets | ||
Deferred income tax asset | $ 268 | $ 304 |
Lease incentives and premiums, net of accumulated amortization of $84,863 and $77,722, respectively | 34,342 | 54,208 |
Flight equipment held for sale | 24,902 | 59,370 |
Aircraft purchase deposits and Embraer E-2 progress payments | 40,382 | 43,494 |
Right-of-use asset | 16,721 | 16,930 |
Deferred rent receivable | 32,353 | 35,631 |
Investments, at fair value | 10,786 | 10,819 |
Other assets | 159,097 | 125,574 |
Total other assets | 318,851 | 346,330 |
Lease incentives and lease premiums, accumulated amortization | $ 84,863 | $ 77,722 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Aug. 31, 2023 | Feb. 28, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable, accrued expenses and other liabilities | $ 64,237 | $ 60,225 |
Deferred income tax liability | 86,133 | 79,990 |
Accrued interest payable | 38,355 | 42,752 |
Lease liability | 19,998 | 19,951 |
Lease discounts, net of amortization of $45,183 and $45,586, respectively | 3,087 | 3,555 |
Total accounts payable, accrued expenses and other liabilities | 211,810 | 206,473 |
Deferred lease income, accumulated amortization | $ 45,183 | $ 45,586 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) $ / shares in Units, $ in Millions | Aug. 31, 2023 $ / shares | Jul. 05, 2023 USD ($) numberOfTranchesForSubscriptionAgreement | Feb. 28, 2023 $ / shares |
Subsequent Event [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |
Common stock, value, subscriptions | $ 500 | ||
Number of tranches | numberOfTranchesForSubscriptionAgreement | 2 | ||
Subscription Agreement with Marubeni/Mizuho - Tranche One ($200.0 million) | |||
Subsequent Event [Line Items] | |||
Common stock, value, subscriptions | $ 200 | ||
Subscription Agreement with Marubeni/Mizuho - Tranche Two ($300.0 million) | |||
Subsequent Event [Line Items] | |||
Common stock, value, subscriptions | $ 300 |
Uncategorized Items - ayr-20230
Label | Element | Value |
Common Stock [Member] | ||
Common Stock, Shares, Issued | us-gaap_CommonStockSharesIssued | 1,516 |