Assets Held for Sale

3 Months Ended

Mar. 31, 2019

3.	Assets Held for Sale

During the first quarter of 2019, based on its sales price, the Company reclassified a spare engine that was previously held for lease as being held for sale and recorded an impairment provision of $487,400. The Company also recorded impairment provisions totaling $921,000 for two turboprop aircraft based on expected sales proceeds. The Company expects the sales of the engine and two aircraft to occur during the second quarter.

In addition to the spare engine and two aircraft noted above, assets held for sale at March 31, 2019 consist of airframe parts from two turboprop aircraft and a turboprop aircraft for which a short-term operating lease was entered into during the first quarter.

During the first quarter of 2019, the Company received $216,900 in cash and accrued $94,400 in receivables for parts sales. These amounts were accounted for as follows: $133,100 reduced accounts receivable for parts sales accrued in 2018; $151,500 reduced the carrying value of the parts; and $26,700 was recorded as gains in excess of the carrying value of the parts. During the first quarter of 2018, the Company received $931,800 in cash and accrued $10,600 in receivables for parts sales. These amounts were accounted for as follows: $779,700 reduced accounts receivable for parts sales accrued in 2017; $144,600 reduced the carrying value of the parts; and $18,100 was recorded as gains in excess of the carrying value of the parts.