Property and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

PROPERTY AND EQUIPMENT

The Company's property and equipment consists primarily of cargo aircraft, aircraft engines and other flight equipment. Property and equipment, to be held and used, is summarized as follows (in thousands):


	December 31, 2022		December 31, 2021
Flight equipment	$	3,506,134	$	3,301,113
Ground equipment	70,092		64,641
Leasehold improvements, facilities and office equipment	40,183		38,769
Aircraft modifications and projects in progress	445,633		206,917
	4,062,042		3,611,440
Accumulated depreciation	(1,659,634)		(1,481,506)
Property and equipment, net	$	2,402,408	$	2,129,934

CAM owned aircraft with a carrying value of $1,474.6 million and $1,404.4 million that were under lease to external customers as of December 31, 2022 and 2021, respectively.

During the second quarter of 2020, the Company decided to retire its four Boeing 757 freighter aircraft as a result of customer preferences for other aircraft types. Three of the Boeing 757 freighter airframes have been removed from service and are available for sale. One remained in service through January 2021. The Pratt and Whitney engines that power these aircraft remain in use for lease to external customers. Separating the Boeing 757 freighters and engines while marketing the airframes, triggered a fair value assessment. As a result, an impairment charge totaling $39.1 million was recorded primarily to reflect the market value of these assets as well as other surplus engines and parts. Fair values were determined using Level 3 inputs based primarily on independent appraisals and recent market transactions as well as the Company’s assessment of existing market conditions based on industry knowledge.