Other assets

12 Months Ended

Dec. 31, 2023

Other assets consisted of the following as of December 31, 2023 and 2022:


	As of December 31,
	2023		2022
Straight-line rents, prepaid expenses and other	$	692,521	$	715,751
Notes receivable, net of allowance for credit losses (a) (b)	663,644		486,223
Loans receivable, net of allowance for credit losses (c)	654,925		351,357
Lease incentives	152,056		163,683
Derivative assets (Note 12)	130,614		211,993
Investments	87,055		62,519

Inventory	85,668		55,868
Operating lease right of use assets, net (Note 17)	57,009		81,952

Other receivables, net	493,032		461,093
	$	3,016,524	$	2,590,439

(a)Notes receivable, net of allowance for credit losses as of December 31, 2023 and 2022 included $656 million and $459 million, respectively, related to agreements we have executed with customers to reschedule certain lease payments under our leases that are due at the reporting dates. Notes receivable as of December 31, 2023 and 2022 also included $8 million and $27 million, respectively, related to aircraft sale and other transactions.

(b)As of December 31, 2023 and December 31, 2022, we had a $24 million and $111 million, respectively, allowance for credit losses on notes receivable. Refer to Note 27—Allowance for credit losses for further details.

(c)As of December 31, 2023, and 2022, we had a $1 million and $4 million, respectively, allowance for credit losses on loans receivable. Refer to Note 27—Allowance for credit losses for further details. During the years ended December 31, 2023, 2022 and 2021, we recognized interest income from loans receivable, net of allowance for credit losses of $35 million, $26 million and $4 million, respectively, included in other income.

Azul Restructuring

We participated in the Azul restructuring completed on September 29, 2023, which included the exchange of certain notes receivable with a net carrying value of $156 million (the “Existing Notes”) held by us and the granting of certain modifications related to our operating leases with Azul (the “Azul Restructuring”). The restructured Existing Notes had a carrying value of $160 million as of December 31, 2023.

In exchange for the Existing Notes, which were due at various dates between 2023 and 2032, we received new notes (“New Notes”) from Azul which are due at various dates between July 2024 and July 2030. In addition, certain of the New Notes may be settled, at Azul’s option, in cash or by the issuance of Azul publicly listed preference shares. The New Notes were initially recognized at an aggregate estimated fair value based on a market rate of interest for similar instruments. No gain or loss was recognized on the exchange of the Existing Notes for the New Notes.

In connection with the operating lease modifications granted, which included modifications of both lease rental and lease term, we recognized deferred revenue included in accounts payable, accrued expenses and other liabilities on our Consolidated Balance Sheets. The deferred revenue amount is recognized on a straight-line basis in accordance with our lease revenue recognition policies. Refer to Note 13—Accounts payable, accrued expenses and other liabilities for further details.