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Financing Receivables and Operating Lease Equipment
 3 Months Ended
Mar. 31, 2024
Financing Receivables and Operating Lease Equipment [Abstract]  
Financing Receivables and Operating Lease Equipment Financing Receivables and Operating Lease Equipment
Financing receivables and operating lease equipment, net consisted of the following:
March 31
2024		December 31
2023
Financing receivables:
Investment in sales-type leases$492 $556 
Notes91 102 
Total financing receivables
583 658 
Less allowance for losses on receivables36 51 
Financing receivables, net547 607 
Operating lease equipment, at cost, less accumulated depreciation of $71 and $70
343 352 
Total$890 $959 
Financing arrangements typically range in terms from 1 to 12 years and may include options to extend or terminate. Certain leases include provisions to allow the lessee to purchase the underlying aircraft at a specified price. At March 31, 2024 and December 31, 2023, $34 and $44 were determined to be uncollectible financing receivables and placed on non-accrual status. The allowance for losses on receivables decreased primarily due to cash collections during the three months ended March 31, 2024.
The components of investment in sales-type leases consisted of the following:
March 31
2024		December 31
2023
Gross lease payments receivable$616 $697 
Unearned income(137)(162)
Net lease payments receivable479 535 
Unguaranteed residual assets13 21 
Total$492 $556 
Financing interest income received for the three months ended March 31, 2024 and 2023 was $2 and $4.
Our financing receivable balances at March 31, 2024 by internal credit rating category and year of origination consisted of the following:
Rating categoriesCurrent2023202220212020PriorTotal
BBB$72 $31 $194 $100 $58 $455 
B94 94 
CCC34 34 
Total carrying value of financing receivables $72 $31 $228 $100 $152 $583 
At March 31, 2024, our allowance for losses related to receivables with ratings of CCC, B and BBB. We applied default rates that averaged 100.0%, 0.0% and 0.5%, respectively, to the exposure associated with those receivables.
Financing Receivables Exposure
The majority of our financing receivables and operating lease equipment portfolio is concentrated in the following aircraft models:
March 31
2024		December 31
2023
717 Aircraft (Accounted for as sales type leases)
$456 $478 
747-8 Aircraft (Accounted for as sales-type leases)
126 129 
737 Aircraft ($142 and $148 accounted for as operating leases)
142 156 
777 Aircraft (Accounted for as operating leases)
192 194 
747-400 Aircraft (Accounted for as sales-type leases)
43 
Operating lease equipment primarily includes large commercial jet aircraft.
Lease income recorded in Sales of services on the Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 included $10 and $15 of interest income from sales-type leases and $18 and $11 from operating lease payments. Profit at the commencement of sales-type leases was recorded in Sales of services for the three months ended March 31, 2024 and 2023 in the amount of $0 and $12.