ACQUISITION OF LOCKHEED MARTIN COMMERCIAL ENGINE SOLUTIONS (Tables)

9 Months Ended

Sep. 30, 2024

Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary allocation of the net assets acquired:

	September 9, 2024
Fair value of assets acquired:
Accounts receivable	$	12,273
Property, plant, and equipment	71,376
Leasing equipment	5,675
Inventory	47,445
Other assets (1)	12,804
Total assets	149,573
Fair value of liabilities assumed:
Accounts payable and accrued liabilities	9,847
Other liabilities	22,996
Total liabilities	32,843
Goodwill (2)	26,904
Net assets acquired (3)	$	143,634

________________________________________________________

(1) Acquired Other assets include a favorable off-market lease component with an estimated fair value of $2,340.

(2) Goodwill is primarily attributable to the assembled workforce of FTAIC and the synergies expected to be achieved. This goodwill is assigned to the Aerospace Products segment and is deductible for income tax purposes.

(3) Total consideration is calculated as cash paid, adjusted for the settlement of pre-existing relationships. Cash consideration is also preliminary, as it is subject to net working capital adjustments.

The following table summarizes the preliminary allocation of the net assets acquired:

	December 1, 2023
Fair value of assets acquired:
Cash and cash equivalents	$	518
Restricted cash	150
Accounts receivable	5,133
Property, plant, and equipment	30,559
Intangible assets	2,377
Inventory	9,332
Other assets	4,301
Total assets	52,370
Fair value of liabilities assumed:
Accounts payable and accrued liabilities	3,994
Other liabilities	2,410
Total liabilities	6,404
Goodwill (1)	4,630
Net assets acquired	$	50,596

________________________________________________________

(1) Goodwill is primarily attributable to the assembled workforce of QuickTurn and the synergies expected to be achieved. This goodwill is assigned to the Aerospace Products segment and is deductible for income tax purposes.

Schedule of Property Plant And Equipment Acquired as Part of Business Combination

The following table presents preliminary fair values of the components of property, plant and equipment acquired and their estimated useful lives:

	Estimated useful life in years	Estimated Fair value
Buildings and improvements	25	$	40,602
Machinery and equipment	2 - 21	29,973
Other	N/A	801
Total		$	71,376

The following table presents the property, plant and equipment and their estimated useful lives:

	Estimated useful life in years	Estimated Fair value
Land	N/A	$	2,840
Buildings and improvements	25	13,790
Machinery and equipment	6 - 23	13,631
Other	5 - 7	298
Total		$	30,559

Business Acquisition, Pro Forma Information

Cost savings are also not reflected in the pro-forma amounts presented below.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Total revenue	$	479,277	$	315,666	$	1,283,520	$	929,297
Net income (loss) attributable to shareholders	$	83,727	$	34,753	$	(122,542)	$	89,716

The following pro forma financial information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken place as of January 1, 2023.

	Three Months Ended		Nine Months Ended
	September 30, 2023		September 30, 2023
Total revenue	$	296,480	$	875,066
Net income attributable to shareholders	$	31,350	$	97,633