XML 25 R13.htm IDEA: XBRL DOCUMENT v3.22.0.1
Equipment Held for Operating Lease
 12 Months Ended
Dec. 31, 2021
Leases [Abstract]  
Equipment Held for Operating Lease Leases
As lessor, and as of December 31, 2021, the majority of our leases were operating leases with the exception of certain failed sale-leaseback transactions classified as notes receivable under the guidance provided by ASC 842.
As lessee, the significant majority of leases the Company enters are for real estate (office and warehouse space for our operations as well as automobiles). These lease agreements do not contain any material residual value guarantees or material restrictive covenants. Leases with terms of 12 months or less are not recorded on the balance sheet; the Company recognizes lease expense for these leases on a straight-line basis over the lease term. Some of the Company’s leases include variable non-lease components (e.g., taxes) which are not separated from associated lease components (e.g. fixed rent, common-area maintenance costs, vehicle protection plans and other service fees) as elected under the practical expedient package provided by ASC 842.
The Company’s leases have remaining lease terms of one to eight years, some of which include options to renew or extend the lease term from one to five years. Our automobile leases include an option to purchase the vehicle at lease termination. The depreciable life of assets is limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. The exercise of lease renewal options or purchase at lease termination is at the Company’s sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our ROU assets and lease liabilities.
Supplemental balance sheet information related to leases was as follows:
LeasesClassificationDecember 31, 2021December 31, 2020
(in thousands, except lease term and discount rate)
Assets
Operating lease right-of-use assetsOther assets$6,067 $3,784 
Total leased assets$6,067 $3,784 
Liabilities
Operating lease right-of-use liabilitiesAccounts payable and accrued expenses$5,206 $3,873 
Total lease liabilities$5,206 $3,873 
Weighted average remaining lease term (years)
Operating leases6.494.20
Weighted average discount rate
Operating leases3.4 %3.1 %

The weighted average discount rate is based on the discount rate for each lease and the remaining balance of the lease payments for each lease at the reporting date.

Future maturities of the Company’s operating lease liabilities at December 31, 2021 are as follows:
Year(in thousands)
2022$1,056 
2023901 
2024812 
2025793 
2026790 
Thereafter1,562 
Total lease payments5,914 
Less: interest(708)
Total lease liabilities$5,206 

The following table represents future minimum lease payments under non-cancelable operating leases at December 31, 2021:
Year(in thousands)
2022$1,071 
2023904 
2024812 
2025793 
2026790 
Thereafter1,562 
$5,932 
The components of lease expense were as follows:
Years Ended December 31,
Lease expenseClassification20212020
(in thousands)
Operating lease costGeneral and administrative$1,239 $1,141 
Net lease cost$1,239 $1,141 

Supplemental cash flow information related to leases was as follows:
Years Ended December 31,
20212020
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$1,446 $1,083 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$4,131 $705 
Equipment Held for Operating Lease
As of December 31, 2021, the Company’s $1,991.4 million equipment held for operating lease portfolio and $115.5 million notes receivable represented 304 engines, twelve aircraft, one marine vessel and other leased parts and equipment. As of December 31, 2020, the Company’s $1,886.6 million equipment held for operating lease portfolio and $158.7 million notes receivable represented 291 engines, eight aircraft, one marine vessel and other leased parts and equipment.
A majority of the equipment is leased and operated internationally. Substantially all leases relating to this equipment are denominated and payable in U.S. dollars.
The Company leases equipment to lessees domiciled in seven geographic regions. The tables below set forth geographic information about the leased equipment grouped by domicile of the lessee (which is not necessarily indicative of the asset’s actual location):
Years Ended December 31,
Lease rent revenue20212020
Region(in thousands)
United States$61,947 $33,291 
Europe30,299 57,972 
Asia26,587 32,198 
South America11,338 11,686 
Mexico2,461 3,670 
Canada1,245 2,011 
Middle East954 2,067 
Totals$134,831 $142,895 

As of December 31,
Net book value of equipment held for operating lease20212020
Region(in thousands)
Europe$479,921 $460,664 
United States425,822 362,471 
Asia365,831 324,946 
Mexico163,526 168,593 
South America111,941 104,671 
Canada55,109 8,500 
Middle East22,320 47,899 
Off-lease and other366,898 408,869 
Totals$1,991,368 $1,886,613 
As of December 31, 2021, the lease status of the equipment held for operating lease (in thousands) was as follows:
Lease TermNet Book Value
Off-lease and other$366,898 
Month-to-month leases206,813 
Leases expiring 2022776,831 
Leases expiring 2023311,814 
Leases expiring 2024147,450 
Leases expiring 202530,558 
Leases expiring 202626,000 
Leases expiring thereafter125,004 
$1,991,368 
As of December 31, 2021, minimum future payments under non-cancelable leases were as follows:
Year(in thousands)
2022$111,643 
202346,447 
202422,412 
20259,306 
20266,177 
Thereafter27,179 
$223,164