Cover Page
Cover Page - shares | 3 Months Ended | |
May 31, 2023 | Jul. 07, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | May 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-32959 | |
Entity Registrant Name | AIRCASTLE LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0444035 | |
Entity Address, Address Line One | c/o Aircastle Advisor LLC | |
Entity Address, Address Line Two | 201 Tresser Boulevard, Suite 400 | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
City Area Code | 203 | |
Local Phone Number | 504-1020 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,048 | |
Entity Central Index Key | 0001362988 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --02-28 | |
Entity Address, Postal Zip Code | 06901 | |
Common Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Shares, par value $0.01 per share | |
Security Exchange Name | NONE | |
No Trading Symbol Flag | true | |
Preferred Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preference Shares, par value $0.01 per share | |
Security Exchange Name | NONE | |
No Trading Symbol Flag | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | May 31, 2023 | Feb. 28, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 136,156 | $ 231,861 |
Accounts receivable | 11,635 | 12,855 |
Flight equipment held for lease, net | 6,595,518 | 6,567,606 |
Net investment in leases, net | 266,630 | 67,694 |
Unconsolidated equity method investment | 40,911 | 40,505 |
Other assets | 305,979 | 346,330 |
Total assets | 7,356,829 | 7,266,851 |
LIABILITIES | ||
Borrowings from secured financings, net | 933,005 | 752,298 |
Borrowings from unsecured financings, net | 3,720,956 | 3,842,454 |
Accounts payable, accrued expenses and other liabilities | 198,941 | 206,473 |
Lease rentals received in advance | 48,952 | 66,816 |
Security deposits | 63,735 | 61,734 |
Maintenance payments | 497,012 | 465,618 |
Total liabilities | 5,462,601 | 5,395,393 |
Commitments and Contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Preference shares, $0.01 par value, 50,000,000 shares authorized, 400 (aggregate liquidation preference of $400,000) shares issued and outstanding at May 31, 2023 and February 28, 2023 | 0 | 0 |
Common shares, $0.01 par value, 250,000,000 shares authorized, 14,048 shares issued and outstanding at May 31, 2023 and February 28, 2023 | 0 | 0 |
Additional paid-in capital | 1,878,774 | 1,878,774 |
Retained earnings (accumulated deficit) | 15,454 | (7,316) |
Total shareholders’ equity | 1,894,228 | 1,871,458 |
Total liabilities and shareholders’ equity | $ 7,356,829 | $ 7,266,851 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | May 31, 2023 | Feb. 28, 2023 |
Statement of Financial Position [Abstract] | ||
Preference shares, par value | $ 0.01 | $ 0.01 |
Preference shares, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 400 | 400 |
Preferred Stock, Shares Outstanding | 400 | 400 |
Preferred Stock, Liquidation Preference, Value | $ 400,000 | $ 400,000 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 250,000,000 | 250,000,000 |
Common shares, shares issued | 14,048 | 14,048 |
Common shares, shares outstanding | 14,048 | 14,048 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Revenues: | ||
Lease rental revenue | $ 146,735 | $ 144,144 |
Direct financing and sales-type lease revenue | 1,073 | 2,598 |
Amortization of lease premiums, discounts and incentives | (7,207) | (5,388) |
Maintenance revenue | 34,520 | 27,099 |
Total lease revenue | 175,121 | 168,453 |
Gain on sale of flight equipment | 42,594 | 3,687 |
Other revenue | 776 | 3,424 |
Total revenues | 218,491 | 175,564 |
Operating expenses: | ||
Depreciation | 88,789 | 81,318 |
Interest, net | 56,891 | 50,294 |
Selling, general and administrative | 20,835 | 19,916 |
Provision for credit losses | 6,959 | 580 |
Impairment of flight equipment | 1,097 | 4,428 |
Maintenance and other costs | 8,533 | 8,065 |
Total operating expenses | 183,104 | 164,601 |
Other income (expense): | ||
Loss on extinguishment of debt | 0 | (463) |
Other | 1,337 | 0 |
Total other income (expense) | 1,337 | (463) |
Income from continuing operations before income taxes and earnings of unconsolidated equity method investment | 36,724 | 10,500 |
Income tax provision | 14,360 | 3,329 |
Earnings of unconsolidated equity method investment, net of tax | 406 | 511 |
Net income | 22,770 | 7,682 |
Earnings available to common shareholders – Basic | 22,770 | 7,682 |
Total comprehensive income available to common shareholders | $ 22,770 | $ 7,682 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 22,770 | $ 7,682 |
Adjustments to reconcile net income to net cash and restricted cash provided by operating activities: | ||
Depreciation | 88,789 | 81,318 |
Amortization of deferred financing costs | 4,031 | 3,597 |
Amortization of lease premiums, discounts and incentives | 7,207 | 5,388 |
Deferred income taxes | 3,812 | 2,865 |
Collections on net investment in leases | 927 | 2,282 |
Security deposits and maintenance payments included in earnings | (3,203) | 9,076 |
Gain on sale of flight equipment | (42,594) | (3,687) |
Loss on extinguishment of debt | 0 | 463 |
Impairment of flight equipment | 1,097 | 4,428 |
Provision for credit losses | 6,959 | 580 |
Other | (397) | (508) |
Changes in certain assets and liabilities: | ||
Accounts receivable | 3,209 | 4,274 |
Other assets | (3,607) | (5,008) |
Accounts payable, accrued expenses and other liabilities | 2,272 | (4,305) |
Lease rentals received in advance | 9,178 | 1,848 |
Net cash and restricted cash provided by operating activities | 100,450 | 110,293 |
Cash flows from investing activities: | ||
Acquisition and improvement of flight equipment | (322,151) | (63,724) |
Proceeds from sale of flight equipment | 53,782 | 58,233 |
Aircraft purchase deposits and progress payments, net of deposits returned and aircraft sales deposits | 4,947 | (8,716) |
Payments for (Proceeds from) Other Investing Activities | (2,900) | 0 |
Net cash and restricted cash used in investing activities | (266,322) | (14,207) |
Cash flows from financing activities: | ||
Proceeds from secured and unsecured debt financings | 624,911 | 0 |
Repayments of secured and unsecured debt financings | (569,206) | (39,923) |
Debt extinguishment costs | 0 | (291) |
Deferred financing costs | (527) | (1,860) |
Security deposits and maintenance payments received | 31,620 | 27,911 |
Security deposits and maintenance payments returned | (6,131) | (425) |
Dividends paid | (10,500) | (10,500) |
Net cash and restricted cash provided by (used in) financing activities | 70,167 | (25,088) |
Net (decrease) increase in cash and restricted cash: | (95,705) | 70,998 |
Cash and restricted cash at beginning of period | 231,861 | 170,682 |
Cash and restricted cash at end of period | 136,156 | 241,680 |
Cash and cash equivalents | 136,156 | 241,030 |
Restricted cash and cash equivalents | 0 | 650 |
Unrestricted and restricted cash and cash equivalents | 136,156 | 241,680 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net of amounts capitalized | 54,053 | 44,275 |
Cash paid for income taxes | (31) | (576) |
Supplemental disclosures of non-cash investing activities: | ||
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets assumed in asset acquisitions | 12,927 | 339 |
Advance lease rentals, security deposits, maintenance payments, other liabilities and other assets settled in sale of flight equipment | 8,177 | 3,800 |
Transfers from flight equipment held for lease to Net investment in leases and Other assets | $ 182,818 | $ 17,734 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity Statement - USD ($) $ in Thousands | Total | Common Shares | Preferred Stock | Additional Paid-In Capital | Retained Earnings (Accumulated Deficit) |
Preferred Stock, Shares Outstanding | 400 | ||||
Balance, shares at Feb. 28, 2022 | 14,048 | ||||
Balance at Feb. 28, 2022 | $ 1,829,699 | $ 0 | $ 0 | $ 1,878,774 | $ (49,075) |
Net income (loss) | 7,682 | ||||
Balance, shares at May. 31, 2022 | 14,048 | ||||
Balance at May. 31, 2022 | $ 1,837,381 | $ 0 | $ 0 | 1,878,774 | (41,393) |
Preferred Stock, Shares Outstanding | 400 | ||||
Preferred Stock, Shares Outstanding | 400 | 400 | |||
Balance, shares at Feb. 28, 2023 | 14,048 | 14,048 | |||
Balance at Feb. 28, 2023 | $ 1,871,458 | $ 0 | $ 0 | 1,878,774 | (7,316) |
Net income (loss) | $ 22,770 | ||||
Balance, shares at May. 31, 2023 | 14,048 | 14,048 | |||
Balance at May. 31, 2023 | $ 1,894,228 | $ 0 | $ 0 | $ 1,878,774 | $ 15,454 |
Preferred Stock, Shares Outstanding | 400 | 400 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Organization Aircastle Limited (“Aircastle,” the “Company,” “we,” “us” or “our”) is a Bermuda exempted company that was incorporated on October 29, 2004 under the provisions of Section 14 of the Companies Act of 1981 of Bermuda. Aircastle’s business consists of acquiring, leasing, managing and selling commercial jet aircraft. The Company is controlled by affiliates of Marubeni Corporation (“Marubeni”) and Mizuho Leasing Company, Limited (“Mizuho Leasing” and, together with Marubeni, our “Shareholders”). Aircastle is a holding company and conducts its business through subsidiaries that are wholly-owned, either directly or indirectly, by Aircastle. Basis of Presentation and Principles of Consolidation The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. However, we believe that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2023. The consolidated financial statements include the accounts of Aircastle and all its subsidiaries, including any Variable Interest Entity (“VIE”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We manage and analyze our business and report on our results of operations based on one operating segment: leasing, financing, selling and managing commercial flight equipment. Our Chief Executive Officer is the chief operating decision maker. The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure subsequent to the balance sheet date of May 31, 2023, through the date on which the consolidated financial statements included in this Form 10-Q were issued. Risk and Uncertainties In the normal course of business, Aircastle encounters several significant types of economic risk including credit, market, aviation industry and capital market risks. Credit risk is the risk of a lessee’s inability or unwillingness to make contractually required payments and to fulfill its other contractual obligations to Aircastle. Market risk reflects the change in the value of financings due to changes in interest rate spreads or other market factors, including the value of collateral underlying financings. Aviation industry risk is the risk of a downturn in the commercial aviation industry which could adversely impact a lessee’s ability to make payments, increase the risk of early lease terminations and depress lease rates and the value of the Company’s aircraft. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing debt facilities. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASC 848”). ASC 848 provides temporary optional expedients and exceptions to certain U.S. GAAP contract modification requirements for contracts affected by reference rate reform as entities transition away from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In December 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in ASC 848. Effective March 1, 2023, we adopted ASC 848, which has not and is not expected to have a material impact on our consolidated financial statements. We have one aircraft lease and certain debt financings for which the associated lease rental revenue and interest expense are based on LIBOR. The ICE Benchmark Administration Limited, LIBOR’s administrator, has ceased publishing certain LIBOR settings and is expected to stop publishing the Overnight, 1-month, 3-month, 6-month, and 12-month USD LIBOR U.S. dollar settings in 2023. In anticipation of that cessation, we commenced the transition of our LIBOR-based contracts to the Secured Overnight Financing Rate (“SOFR” or “Term SOFR”). The optional expedients under ASC 848 have allowed and will allow us to account for contract modifications as continuations of the existing contracts without further reassessments or remeasurements that would otherwise be required under the applicable U.S. GAAP. For the three months ended May 31, 2023, less than 1% of each our lease rental revenue and interest expense was derived from a floating-rate lease or debt financings that used LIBOR as the applicable reference rate. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
May 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. The following tables set forth our financial assets as of May 31, 2023 and February 28, 2023 that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Measurements at May 31, 2023 Using Fair Value Hierarchy Fair Value as of May 31, 2023 Quoted Prices Significant Significant Valuation Assets: Cash and cash equivalents $ 136,156 $ 136,156 $ — $ — Market Investment in debt securities 5,029 — — 5,029 Income Investment in equity securities 5,513 2,069 — 3,444 Market/Income Total $ 146,698 $ 138,225 $ — $ 8,473 Fair Value Measurements at February 28, 2023 Using Fair Value Hierarchy Fair Value as of February 28, 2023 Quoted Prices Significant Significant Valuation Assets: Cash and cash equivalents $ 231,861 $ 231,861 $ — $ — Market Investment in debt securities 5,029 — — 5,029 Income Investment in equity securities 5,790 2,346 — 3,444 Market/Income Total $ 242,680 $ 234,207 $ — $ 8,473 Our cash and cash equivalents consist largely of money market securities that are highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities (Level 1). Our investments in debt and equity securities consist of notes and shares received as a result of claims settlements from various airline customers that had entered into bankruptcy proceedings or similar-type restructurings. Our investment in equity securities that are traded in an active market have been valued using quoted market prices (Level 1). Our investments in other equity securities and debt securities for which there is no active market or there is limited market data have been valued using the income approach (Level 3). For the three months ended May 31, 2023, we had no transfers into or out of Level 3. We measure the fair value of certain assets and liabilities on a non-recurring basis when U.S. GAAP requires the application of fair value, including events or changes in circumstances that indicate the carrying amounts of these assets may not be recoverable. Assets subject to these measurements include our aircraft and investment in unconsolidated joint venture. We record aircraft at fair value when we determine the carrying value may not be recoverable. Fair value measurements for aircraft in impairment tests are based on the average of the market approach (Level 2), which includes third party appraisal data, and an income approach (Level 3), which includes the Company’s assumptions and appraisal data as to future cash proceeds from leasing and selling aircraft discounted using the Company’s weighted average cost of capital. We account for our investment in unconsolidated joint venture under the equity method of accounting. Our investment is recorded at cost and is adjusted by undistributed earnings and losses and the distributions of dividends and capital. This investment is reviewed for impairment whenever events or changes in circumstances indicate the fair value is less than its carrying value and the decline is other-than-temporary. Financial Instruments Our financial instruments, other than cash, consist principally of cash equivalents, accounts receivable, investments in debt and equity securities, accounts payable and secured and unsecured financings. The fair value of cash and cash equivalents, accounts receivable and accounts payable approximates the carrying value of these financial instruments because of their short-term nature. The fair value of our senior notes is estimated using quoted market prices (Level 1), whereas all our other financings are valued using a discounted cash flow analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements (Level 2). The carrying amounts and fair values of our financial instruments at May 31, 2023 and February 28, 2023 were as follows: May 31, 2023 February 28, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Investment in debt securities $ 5,029 $ 5,029 $ 5,029 $ 5,029 Investment in equity securities 5,513 5,513 5,790 5,790 Carrying Amount Fair Value Carrying Fair Value Credit Facilities $ 395,000 $ 397,725 $ 20,000 $ 20,000 Unsecured Term Loan 155,000 155,309 155,000 151,449 Term Financings 941,989 930,841 761,283 739,804 Senior Notes 3,200,000 3,022,820 3,700,000 3,524,563 Aircraft Valuation Annual Recoverability Assessment We plan to perform our annual recoverability assessment of all our aircraft during the third quarter of 2023. Additional customer and aircraft specific recoverability assessments are also performed whenever indicators suggest the carrying amount of an asset may not be recoverable. Indicators may include, but are not limited to, a significant lease restructuring or early lease termination, a significant change in an aircraft model’s storage levels, the introduction of newer technology aircraft or engines, an aircraft type is no longer in production, or a significant airworthiness directive is issued. We have focused and will continue to focus on aircraft with near-term lease expirations, customers that have entered judicial insolvency proceedings and any additional customers that may become subject to similar-type proceedings, and certain other customers or aircraft variants that are more susceptible to value deterioration. The recoverability assessment is a comparison of the carrying value of an aircraft to its estimated undiscounted future cash flows. We develop the assumptions used in the recoverability analysis based on current and future expectations of the global demand for a particular aircraft type and historical experience in the aircraft leasing market and aviation industry, as well as information received from third-party industry sources. The factors considered in estimating the undiscounted cash flows are impacted by changes in future periods due to changes in projected lease rental and maintenance payments, residual values, economic conditions, technology, airline demand for a particular aircraft type and other factors, such as the location of the aircraft and accessibility to records and technical documentation. If our estimates or assumptions change, including those related to our customers that have entered judicial insolvency proceedings, we may revise our cash flow assumptions and record future impairment charges. While we believe that the estimates and related assumptions used in our recoverability assessments are appropriate, actual results could differ from those estimates. |
Flight Equipment Held for Lease
Flight Equipment Held for Lease, Net | 3 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Flight Equipment Held for Lease, Net | Note 3. Flight Equipment Held for Lease, Net The following table summarizes the activities for the Company’s flight equipment held for lease for the three months ended May 31, 2023: Amount Balance at February 28, 2023 $ 6,567,606 Additions 321,805 Depreciation (88,553) Disposals and transfers to net investment in leases and held for sale (204,243) Impairments (1,097) Balance at May 31, 2023 $ 6,595,518 Accumulated depreciation as of May 31, 2023 $ 2,264,771 |
Lease Rental Revenues and Fligh
Lease Rental Revenues and Flight Equipment Held for Lease | 3 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
Lessor, Operating Leases [Text Block] | Note 4. Lease Rental Revenues Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at May 31, 2023 were as follows: Year Ending February 28/29, Amount (1) 2024 (Remainder of fiscal year) $ 451,869 2025 528,826 2026 414,434 2027 348,453 2028 278,390 Thereafter 833,985 Total $ 2,855,957 _______________ (1) Reflects impact of lessee lease rental deferrals. At May 31, 2023 and February 28, 2023, the amounts of lease incentive liabilities recorded in maintenance payments on our consolidated balance sheets were $26.0 million and $22.4 million, respectively. |
Net Investment in Leases, Net
Net Investment in Leases, Net | 3 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
Net Investment in Leases, Net | Net Investment in Leases, Net At May 31, 2023 and February 28, 2023, our net investment in leases consisted of 14 and 4 aircraft, respectively. The components of our net investment in leases at May 31, 2023 and February 28, 2023, were as follows: May 31, 2023 February 28, 2023 Lease receivable $ 143,191 $ 31,674 Unguaranteed residual value of flight equipment 131,665 37,287 Net investment leases 274,856 68,961 Allowance for credit losses (8,226) (1,267) Net investment in leases, net $ 266,630 $ 67,694 During the three months ended May 31, 2023, 10 aircraft were reclassified from operating leases to sales-type leases. Collectability of the lease payments for these 10 aircraft, which was not deemed probable at the effective date of the lease modification, became probable during the three months ended May 31, 2023. Accordingly, we derecognized the carrying amounts of the underlying aircraft and lease payments recorded by us as deposit liabilities and recognized net investments in leases. A selling profit totaling $32.7 million for these 10 aircraft was recognized as a component of Gain on sale of flight equipment for the three months ended May 31, 2023. We also recognized a provision for credit losses totaling $7.0 million for these 10 aircraft during the three months ended May 31, 2023. The activity in the allowance for credit losses related to our net investment in leases for the three months ended May 31, 2023 was as follows: Amount Balance at February 28, 2023 $ 1,267 Provision for credit losses 6,959 Balance at May 31, 2023 $ 8,226 At May 31, 2023, future lease payments to be received under our net investment in leases were as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 17,735 2025 25,284 2026 24,984 2027 25,121 2028 24,911 Thereafter 74,317 Total lease payments to be received 192,352 Present value of lease payments - lease receivable (143,191) Difference between undiscounted lease payments and lease receivable $ 49,161 |
Risks and Uncertainties
Risks and Uncertainties | 3 Months Ended |
May 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure | Note 6. Concentration of Risk The classification of regions in the tables below is based on our customers’ principal place of business. The geographic concentration of the net book value of our fleet (flight equipment held for lease and net investment in leases, or “Net Book Value”) as of May 31, 2023 and February 28, 2023 was as follows: May 31, 2023 February 28, 2023 Region Number Net Book Number Net Book Asia and Pacific 62 27 % 62 28 % Europe 90 29 % 88 30 % Middle East and Africa 7 2 % 8 3 % North America 43 23 % 38 20 % South America 31 15 % 29 14 % Off-lease 11 (1) 4 % 14 (2) 5 % Total 244 100 % 239 100 % _______________ (1) Of the 11 off-lease aircraft at May 31, 2023, we have 2 narrow-body aircraft and 1 wide-body aircraft which we are currently marketing for lease or sale. (2) Of the 14 off-lease aircraft at February 28, 2023, we have 2 narrow-body aircraft and 1 wide-body aircraft which we are currently marketing for lease or sale. The following table sets forth individual countries representing at least 10% of our Net Book Value as of May 31, 2023 and February 28, 2023: May 31, 2023 February 28, 2023 Country Net Book Net Book Number Net Book Net Book Number United States (1) $ 679,035 10% 5 $ — —% — _______________ (1) As of February 28, 2023, the United States represented less than 10% of our Net Book Value. The geographic concentration of our lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended May 31, Region 2023 2022 Asia and Pacific 30 % 33 % Europe 30 % 29 % Middle East and Africa 4 % 5 % North America 23 % 17 % South America 13 % 16 % Total 100 % 100 % The following table shows the number of lessees with lease rental revenue of at least 5% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Three Months Ended May 31, 2023 2022 Number of Lessees Combined % of Lease Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 3 21% 4 30% For the three months ended May 31, 2023, total revenue attributable to Greece was 10% and included $19.2 million of maintenance revenue as a result of scheduled lease expirations for a Greek lessee. For the three months ended May 31, 2022, total revenue attributable to Greece was less than 10%. |
Unconsolidated Equity Method In
Unconsolidated Equity Method Investment (Notes) | 3 Months Ended |
May 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Equity Method Investment | Unconsolidated Equity Method Investment We have a joint venture with Mizuho Leasing which has 9 aircraft with a net book value of $281.9 million at May 31, 2023. Amount Balance at February 28, 2023 $ 40,505 Earnings of unconsolidated equity method investment, net of tax 406 Balance at May 31, 2023 $ 40,911 |
Borrowings from Secured and Uns
Borrowings from Secured and Unsecured Debt Financings | 3 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings from Secured and Unsecured Debt Financings | Borrowings from Secured and Unsecured Debt Financings The outstanding amounts of our secured and unsecured debt financings were as follows: At May 31, 2023 At February 28, 2023 Debt Obligation Outstanding Number of Aircraft Interest Rate Final Stated Outstanding Secured Debt Financings: Term Financings (1) $ 941,989 38 2.36% to 7.52% 09/13/24 to 06/27/32 $ 761,283 Less: Debt issuance costs and discounts (8,984) — (8,985) Total secured debt financings, net of debt issuance costs and discounts 933,005 38 752,298 Unsecured Debt Financings: Senior 5.000% Notes due 2023 — 5.00% 04/01/23 500,000 Senior 4.400% Notes due 2023 650,000 4.40% 09/25/23 650,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Senior Notes due 2025 650,000 5.25% 08/11/25 650,000 Senior Notes due 2026 650,000 4.25% 06/15/26 650,000 Senior Notes due 2028 750,000 2.85% 01/26/28 750,000 Unsecured Term Loans 155,000 6.68% 02/27/24 155,000 Revolving Credit Facilities 395,000 6.72% to 6.91% 02/28/24 to 05/24/25 20,000 Less: Debt issuance costs and discounts (29,044) (32,546) Total unsecured debt financings, net of debt issuance costs and discounts 3,720,956 3,842,454 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 4,653,961 $ 4,594,752 (1) The borrowings under these financings at May 31, 2023 have a weighted-average fixed rate of interest of 5.35%. Secured Debt Financings: Term Financings During the three months ended May 31, 2023, we borrowed the remaining $168.7 million available under our full recourse secured financing facility entered into on November 21, 2022 (the “2022 Secured Facility”). As of May 31, 2023, $437.6 million was outstanding under the 2022 Secured Facility in relation to 17 owned aircraft. The 2022 Secured Facility bears interest at a floating rate under the Term SOFR (as defined in the credit agreement governing the 2022 Secured Facility) plus 2.35% per annum and matures on November 21, 2029. Unsecured Debt Financings: 5.000% Senior Notes due 2023 We repaid the $500.0 million aggregate principal amount of our 5.000% Senior Notes due 2023 at their final stated maturity date in April 2023. Revolving Credit Facilities On June 5, 2023, one of our unsecured revolving credit facilities was expanded from $245.0 million to $285.0 million. This revolving credit facility was further expanded to $325.0 million on July 12, 2023 and matures on May 24, 2025. As of May 31, 2023, we had $395.0 million outstanding under our revolving credit facilities and had $1.4 billion available for borrowing. As of May 31, 2023, we were in compliance with all applicable covenants in our financings. |
Shareholders_ Equity
Shareholders’ Equity | 3 Months Ended |
May 31, 2023 | |
Equity [Abstract] | |
Shareholders’ Equity | Shareholders' EquityOn March 15, 2023, the Company paid a semi-annual dividend in the amount of $10.5 million for its Preference Shares, which was approved by the Company’s Board of Directors on January 10, 2023, and accrued as of February 28, 2023. |
Related Party Disclosures
Related Party Disclosures | 3 Months Ended |
May 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsWe incurred fees from our Shareholders as part of intra-company service agreements totaling $2.0 million and $1.4 million during the three months ended May 31, 2023 and 2022, respectively, whereby our Shareholders provide certain management and administrative services to the Company. In addition, the Company purchased parts under a parts management services and supply agreement with an affiliate of Marubeni totaling $0.4 million and $1.7 million during the three months ended May 31, 2023 and 2022, respectively |
Income Taxes
Income Taxes | 3 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes have been provided for based upon the tax laws and rates in countries in which our operations are conducted and income is earned. The Company received assurance from the Bermuda Minister of Finance that it would be exempted from local income, withholding and capital gains taxes until March 2035. Consequently, the provision for income taxes relates to income earned by certain subsidiaries of the Company which are located in, or earn income in, jurisdictions that impose income taxes, primarily the United States and Ireland. The sources of income from continuing operations before income taxes and earnings of our unconsolidated equity method investment for the three months ended May 31, 2023 and 2022 were as follows: Three Months Ended May 31, 2023 2022 U.S. operations $ 4,282 $ 5,336 Non-U.S. operations 32,442 5,164 Income from continuing operations before income taxes and earnings of unconsolidated equity method investment $ 36,724 $ 10,500 Our aircraft-owning subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes. The aircraft owning subsidiaries resident in the United States and Ireland are subject to tax in those respective jurisdictions. We have a U.S.-based subsidiary which provides management services to our subsidiaries and is subject to U.S. federal, state and local income taxes. We also have Ireland and Singapore-based subsidiaries which provide management services to our non-U.S. subsidiaries and are subject to tax in those respective jurisdictions. |
Interest, Net
Interest, Net | 3 Months Ended |
May 31, 2023 | |
Interest Income (Expense), Net [Abstract] | |
Interest Net | Interest, Net The following table shows the components of interest, net: Three Months Ended May 31, 2023 2022 Interest on borrowings and other liabilities $ 55,872 $ 47,241 Amortization of deferred financing fees and debt discount 4,031 3,597 Interest expense 59,903 50,838 Less: Interest income (2,292) (259) Less: Capitalized interest (720) (285) Interest, net $ 56,891 $ 50,294 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rent expense, primarily for the corporate office and sales and marketing facilities, was $0.6 million and $0.5 million for the three months ended May 31, 2023 and 2022, respectively. As of May 31, 2023, Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 2,522 2025 2,933 2026 2,709 2027 2,717 2028 2,748 Thereafter 16,716 Total $ 30,345 At May 31, 2023, we had commitments to acquire 12 aircraft for $406.6 million. At May 31, 2023, commitments, including $39.4 million of remaining progress payments, contractual price escalations and other adjustments for these aircraft, net of amounts already paid, were as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 138,239 2025 171,533 2026 96,848 2027 — 2028 — Thereafter — Total $ 406,620 |
Other Assets
Other Assets | 3 Months Ended |
May 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets Other assets consisted of the following as of May 31, 2023 and February 28, 2023: May 31, February 28, Deferred income tax asset $ 310 $ 304 Lease incentives and premiums, net of accumulated amortization of $80,679 and $77,722, respectively 37,985 54,208 Flight equipment held for sale 28,705 59,370 Aircraft purchase deposits and Embraer E-2 progress payments 40,447 43,494 Right-of-use asset (1) 17,052 16,930 Deferred rent receivable 32,420 35,631 Investments, at fair value 10,543 10,819 Other assets 138,517 125,574 Total other assets $ 305,979 $ 346,330 ______________ (1) Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 3 Months Ended |
May 31, 2023 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities Accounts payable, accrued expenses and other liabilities consisted of the following as of May 31, 2023 and February 28, 2023: May 31, February 28, Accounts payable, accrued expenses and other liabilities $ 48,022 $ 60,225 Deferred income tax liability 83,808 79,990 Accrued interest payable 43,752 42,752 Lease liability 20,048 19,951 Lease discounts, net of amortization of $45,830 and $45,586, respectively 3,311 3,555 Total accounts payable, accrued expenses and other liabilities $ 198,941 $ 206,473 |
Subsequent Event
Subsequent Event | 3 Months Ended |
May 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventsOn July 5, 2023, the Company entered into a Subscription Agreement with its Shareholders, pursuant to which the Company has agreed to make a pro rata issuance of the Company’s common shares, $0.01 par value per share (the “Shares”), for an aggregate purchase price of up to $500.0 million. The Shares will be issued in two tranches, with the first tranche expected to be issued in July 2023 for an aggregate purchase price of $200.0 million. The issuance of the second tranche, which is subject to both the approval of the Company’s Board of Directors and shareholders, is expected to occur during the Company’s first fiscal quarter of 2024 for an aggregate purchase price of up to $300.0 million. The number of Shares and the subscription price per share are to be determined and agreed to by the parties at the time of issuance. The Shares will rank pari passu in all respects with other common shares of the Company. The Company intends to use the net proceeds from the issuance of Shares for general corporate purposes. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
May 31, 2023 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization Aircastle Limited (“Aircastle,” the “Company,” “we,” “us” or “our”) is a Bermuda exempted company that was incorporated on October 29, 2004 under the provisions of Section 14 of the Companies Act of 1981 of Bermuda. Aircastle’s business consists of acquiring, leasing, managing and selling commercial jet aircraft. The Company is controlled by affiliates of Marubeni Corporation (“Marubeni”) and Mizuho Leasing Company, Limited (“Mizuho Leasing” and, together with Marubeni, our “Shareholders”). Aircastle is a holding company and conducts its business through subsidiaries that are wholly-owned, either directly or indirectly, by Aircastle. |
Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC. However, we believe that the disclosures are adequate to make the information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended February 28, 2023. The consolidated financial statements include the accounts of Aircastle and all its subsidiaries, including any Variable Interest Entity (“VIE”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We manage and analyze our business and report on our results of operations based on one operating segment: leasing, financing, selling and managing commercial flight equipment. Our Chief Executive Officer is the chief operating decision maker. The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure subsequent to the balance sheet date of May 31, 2023, through the date on which the consolidated financial statements included in this Form 10-Q were issued. |
Concentration Risk, Credit Risk, Policy | Risk and Uncertainties In the normal course of business, Aircastle encounters several significant types of economic risk including credit, market, aviation industry and capital market risks. Credit risk is the risk of a lessee’s inability or unwillingness to make contractually required payments and to fulfill its other contractual obligations to Aircastle. Market risk reflects the change in the value of financings due to changes in interest rate spreads or other market factors, including the value of collateral underlying financings. Aviation industry risk is the risk of a downturn in the commercial aviation industry which could adversely impact a lessee’s ability to make payments, increase the risk of early lease terminations and depress lease rates and the value of the Company’s aircraft. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing debt facilities. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASC 848”). ASC 848 provides temporary optional expedients and exceptions to certain U.S. GAAP contract modification requirements for contracts affected by reference rate reform as entities transition away from the London Interbank Offered Rate (“LIBOR”) to alternative reference rates. In December 2022, the FASB issued ASU 2022-06 to defer the sunset date of ASC 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply the optional expedients in ASC 848. Effective March 1, 2023, we adopted ASC 848, which has not and is not expected to have a material impact on our consolidated financial statements. We have one aircraft lease and certain debt financings for which the associated lease rental revenue and interest expense are based on LIBOR. The ICE Benchmark Administration Limited, LIBOR’s administrator, has ceased publishing certain LIBOR settings and is expected to stop publishing the Overnight, 1-month, 3-month, 6-month, and 12-month USD LIBOR U.S. dollar settings in 2023. In anticipation of that cessation, we commenced the transition of our LIBOR-based contracts to the Secured Overnight Financing Rate (“SOFR” or “Term SOFR”). The optional expedients under ASC 848 have allowed and will allow us to account for contract modifications as continuations of the existing contracts without further reassessments or remeasurements that would otherwise be required under the applicable U.S. GAAP. For the three months ended May 31, 2023, less than 1% of each our lease rental revenue and interest expense was derived from a floating-rate lease or debt financings that used LIBOR as the applicable reference rate. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
May 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following tables set forth our financial assets as of May 31, 2023 and February 28, 2023 that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Measurements at May 31, 2023 Using Fair Value Hierarchy Fair Value as of May 31, 2023 Quoted Prices Significant Significant Valuation Assets: Cash and cash equivalents $ 136,156 $ 136,156 $ — $ — Market Investment in debt securities 5,029 — — 5,029 Income Investment in equity securities 5,513 2,069 — 3,444 Market/Income Total $ 146,698 $ 138,225 $ — $ 8,473 Fair Value Measurements at February 28, 2023 Using Fair Value Hierarchy Fair Value as of February 28, 2023 Quoted Prices Significant Significant Valuation Assets: Cash and cash equivalents $ 231,861 $ 231,861 $ — $ — Market Investment in debt securities 5,029 — — 5,029 Income Investment in equity securities 5,790 2,346 — 3,444 Market/Income Total $ 242,680 $ 234,207 $ — $ 8,473 |
Carrying amounts and fair values of financial instruments | The carrying amounts and fair values of our financial instruments at May 31, 2023 and February 28, 2023 were as follows: May 31, 2023 February 28, 2023 Carrying Amount Fair Value Carrying Amount Fair Value Investment in debt securities $ 5,029 $ 5,029 $ 5,029 $ 5,029 Investment in equity securities 5,513 5,513 5,790 5,790 Carrying Amount Fair Value Carrying Fair Value Credit Facilities $ 395,000 $ 397,725 $ 20,000 $ 20,000 Unsecured Term Loan 155,000 155,309 155,000 151,449 Term Financings 941,989 930,841 761,283 739,804 Senior Notes 3,200,000 3,022,820 3,700,000 3,524,563 |
Flight Equipment Held for Lea_2
Flight Equipment Held for Lease, Net (Tables) | 3 Months Ended |
May 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, Lessor Asset under Operating Lease | The following table summarizes the activities for the Company’s flight equipment held for lease for the three months ended May 31, 2023: Amount Balance at February 28, 2023 $ 6,567,606 Additions 321,805 Depreciation (88,553) Disposals and transfers to net investment in leases and held for sale (204,243) Impairments (1,097) Balance at May 31, 2023 $ 6,595,518 Accumulated depreciation as of May 31, 2023 $ 2,264,771 |
Lease Rental Revenues and Fli_2
Lease Rental Revenues and Flight Equipment Held for Lease (Tables) | 3 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
Lessor, Operating Lease, Payment to be Received, Fiscal Year Maturity | Minimum future lease rentals contracted to be received under our existing operating leases of flight equipment at May 31, 2023 were as follows: Year Ending February 28/29, Amount (1) 2024 (Remainder of fiscal year) $ 451,869 2025 528,826 2026 414,434 2027 348,453 2028 278,390 Thereafter 833,985 Total $ 2,855,957 _______________ (1) Reflects impact of lessee lease rental deferrals. |
Net Investment in Leases, Net (
Net Investment in Leases, Net (Tables) | 3 Months Ended |
May 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Net Investment in Leases | The components of our net investment in leases at May 31, 2023 and February 28, 2023, were as follows: May 31, 2023 February 28, 2023 Lease receivable $ 143,191 $ 31,674 Unguaranteed residual value of flight equipment 131,665 37,287 Net investment leases 274,856 68,961 Allowance for credit losses (8,226) (1,267) Net investment in leases, net $ 266,630 $ 67,694 |
Sales-type and Direct Financing Leases, Lease Receivable, Maturity | The activity in the allowance for credit losses related to our net investment in leases for the three months ended May 31, 2023 was as follows: Amount Balance at February 28, 2023 $ 1,267 Provision for credit losses 6,959 Balance at May 31, 2023 $ 8,226 At May 31, 2023, future lease payments to be received under our net investment in leases were as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 17,735 2025 25,284 2026 24,984 2027 25,121 2028 24,911 Thereafter 74,317 Total lease payments to be received 192,352 Present value of lease payments - lease receivable (143,191) Difference between undiscounted lease payments and lease receivable $ 49,161 |
Risks and Uncertainties (Tables
Risks and Uncertainties (Tables) | 3 Months Ended |
May 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Long-lived Assets by Geographic Areas [Table Text Block] | The geographic concentration of the net book value of our fleet (flight equipment held for lease and net investment in leases, or “Net Book Value”) as of May 31, 2023 and February 28, 2023 was as follows: May 31, 2023 February 28, 2023 Region Number Net Book Number Net Book Asia and Pacific 62 27 % 62 28 % Europe 90 29 % 88 30 % Middle East and Africa 7 2 % 8 3 % North America 43 23 % 38 20 % South America 31 15 % 29 14 % Off-lease 11 (1) 4 % 14 (2) 5 % Total 244 100 % 239 100 % _______________ (1) Of the 11 off-lease aircraft at May 31, 2023, we have 2 narrow-body aircraft and 1 wide-body aircraft which we are currently marketing for lease or sale. (2) Of the 14 off-lease aircraft at February 28, 2023, we have 2 narrow-body aircraft and 1 wide-body aircraft which we are currently marketing for lease or sale. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | The following table sets forth individual countries representing at least 10% of our Net Book Value as of May 31, 2023 and February 28, 2023: May 31, 2023 February 28, 2023 Country Net Book Net Book Number Net Book Net Book Number United States (1) $ 679,035 10% 5 $ — —% — _______________ (1) As of February 28, 2023, the United States represented less than 10% of our Net Book Value. |
Revenue from External Customers by Geographic Areas [Table Text Block] | The geographic concentration of our lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended May 31, Region 2023 2022 Asia and Pacific 30 % 33 % Europe 30 % 29 % Middle East and Africa 4 % 5 % North America 23 % 17 % South America 13 % 16 % Total 100 % 100 % |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following table shows the number of lessees with lease rental revenue of at least 5% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Three Months Ended May 31, 2023 2022 Number of Lessees Combined % of Lease Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 3 21% 4 30% |
Unconsolidated Equity Method _2
Unconsolidated Equity Method Investment (Tables) | 3 Months Ended |
May 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Amount Balance at February 28, 2023 $ 40,505 Earnings of unconsolidated equity method investment, net of tax 406 Balance at May 31, 2023 $ 40,911 |
Borrowings from Secured and U_2
Borrowings from Secured and Unsecured Debt Financings (Tables) | 3 Months Ended |
May 31, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding amounts of secured and unsecured term debt financings | The outstanding amounts of our secured and unsecured debt financings were as follows: At May 31, 2023 At February 28, 2023 Debt Obligation Outstanding Number of Aircraft Interest Rate Final Stated Outstanding Secured Debt Financings: Term Financings (1) $ 941,989 38 2.36% to 7.52% 09/13/24 to 06/27/32 $ 761,283 Less: Debt issuance costs and discounts (8,984) — (8,985) Total secured debt financings, net of debt issuance costs and discounts 933,005 38 752,298 Unsecured Debt Financings: Senior 5.000% Notes due 2023 — 5.00% 04/01/23 500,000 Senior 4.400% Notes due 2023 650,000 4.40% 09/25/23 650,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Senior Notes due 2025 650,000 5.25% 08/11/25 650,000 Senior Notes due 2026 650,000 4.25% 06/15/26 650,000 Senior Notes due 2028 750,000 2.85% 01/26/28 750,000 Unsecured Term Loans 155,000 6.68% 02/27/24 155,000 Revolving Credit Facilities 395,000 6.72% to 6.91% 02/28/24 to 05/24/25 20,000 Less: Debt issuance costs and discounts (29,044) (32,546) Total unsecured debt financings, net of debt issuance costs and discounts 3,720,956 3,842,454 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 4,653,961 $ 4,594,752 (1) The borrowings under these financings at May 31, 2023 have a weighted-average fixed rate of interest of 5.35%. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
May 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Sources of income from continuing operations before income taxes | The sources of income from continuing operations before income taxes and earnings of our unconsolidated equity method investment for the three months ended May 31, 2023 and 2022 were as follows: Three Months Ended May 31, 2023 2022 U.S. operations $ 4,282 $ 5,336 Non-U.S. operations 32,442 5,164 Income from continuing operations before income taxes and earnings of unconsolidated equity method investment $ 36,724 $ 10,500 |
Interest, Net (Tables)
Interest, Net (Tables) | 3 Months Ended |
May 31, 2023 | |
Interest Income (Expense), Net [Abstract] | |
Components of Interest | The following table shows the components of interest, net: Three Months Ended May 31, 2023 2022 Interest on borrowings and other liabilities $ 55,872 $ 47,241 Amortization of deferred financing fees and debt discount 4,031 3,597 Interest expense 59,903 50,838 Less: Interest income (2,292) (259) Less: Capitalized interest (720) (285) Interest, net $ 56,891 $ 50,294 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
May 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of obligations under non-cancelable operating leases | As of May 31, 2023, Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 2,522 2025 2,933 2026 2,709 2027 2,717 2028 2,748 Thereafter 16,716 Total $ 30,345 |
Long-term Purchase Commitment | At May 31, 2023, commitments, including $39.4 million of remaining progress payments, contractual price escalations and other adjustments for these aircraft, net of amounts already paid, were as follows: Year Ending February 28/29, Amount 2024 (Remainder of fiscal year) $ 138,239 2025 171,533 2026 96,848 2027 — 2028 — Thereafter — Total $ 406,620 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
May 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Principal components of other assets | Other assets consisted of the following as of May 31, 2023 and February 28, 2023: May 31, February 28, Deferred income tax asset $ 310 $ 304 Lease incentives and premiums, net of accumulated amortization of $80,679 and $77,722, respectively 37,985 54,208 Flight equipment held for sale 28,705 59,370 Aircraft purchase deposits and Embraer E-2 progress payments 40,447 43,494 Right-of-use asset (1) 17,052 16,930 Deferred rent receivable 32,420 35,631 Investments, at fair value 10,543 10,819 Other assets 138,517 125,574 Total other assets $ 305,979 $ 346,330 ______________ (1) Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
May 31, 2023 | |
Payables and Accruals [Abstract] | |
Principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheet | Accounts payable, accrued expenses and other liabilities consisted of the following as of May 31, 2023 and February 28, 2023: May 31, February 28, Accounts payable, accrued expenses and other liabilities $ 48,022 $ 60,225 Deferred income tax liability 83,808 79,990 Accrued interest payable 43,752 42,752 Lease liability 20,048 19,951 Lease discounts, net of amortization of $45,830 and $45,586, respectively 3,311 3,555 Total accounts payable, accrued expenses and other liabilities $ 198,941 $ 206,473 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) | 3 Months Ended |
May 31, 2023 segment | |
Accounting Policies [Abstract] | |
Number of Operating Segments | 1 |
Percentage of Fleet Having Floating-rate Lease Rentals | 1% |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value (Details) - USD ($) $ in Thousands | May 31, 2023 | Feb. 28, 2023 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Debt Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | $ 5,029 | $ 5,029 |
Estimate of Fair Value Measurement | Significant Other Observable Inputs (Level 2) | Equity Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | 5,513 | 5,790 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 136,156 | 231,861 |
Total | 138,225 | 234,207 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Debt Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | 0 | 0 |
Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | 2,069 | 2,346 |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Debt Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | Equity Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | 0 | 0 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Total | 8,473 | 8,473 |
Recurring | Significant Unobservable Inputs (Level 3) | Debt Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | 5,029 | 5,029 |
Recurring | Significant Unobservable Inputs (Level 3) | Equity Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | 3,444 | 3,444 |
Recurring | Estimate of Fair Value Measurement | ||
Assets: | ||
Cash and cash equivalents | 136,156 | 231,861 |
Total | 146,698 | 242,680 |
Recurring | Estimate of Fair Value Measurement | Debt Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | 5,029 | 5,029 |
Recurring | Estimate of Fair Value Measurement | Equity Securities | ||
Assets: | ||
Investments, Fair Value Disclosure | $ 5,513 | $ 5,790 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | 3 Months Ended |
May 31, 2023 USD ($) | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | May 31, 2023 | Feb. 28, 2023 |
Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Debt Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | $ 5,029 | $ 5,029 |
Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Equity Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 5,513 | 5,790 |
Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Debt Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 5,029 | 5,029 |
Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Equity Securities | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Investments, Fair Value Disclosure | 5,513 | 5,790 |
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 395,000 | 20,000 |
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 397,725 | 20,000 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Reported Value Measurement | DBJ Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 155,000 | 155,000 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Reported Value Measurement | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 3,200,000 | 3,700,000 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | DBJ Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 155,309 | 151,449 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 3,022,820 | 3,524,563 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Term Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 941,989 | 761,283 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Term Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 930,841 | $ 739,804 |
Flight Equipment Held for Lea_3
Flight Equipment Held for Lease, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 31, 2023 | May 31, 2022 | Feb. 28, 2023 | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation | $ 6,595,518 | $ 6,567,606 | |
Depreciation | (88,789) | $ (81,318) | |
Transfers from flight equipment held for lease to Net investment in leases and Other assets | 182,818 | 17,734 | |
Asset Impairment Charges | (1,097) | $ (4,428) | |
Flight Equipment | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Property, Plant, and Equipment, Lessor Asset under Operating Lease, after Accumulated Depreciation | 6,595,518 | $ 6,567,606 | |
Property, Plant and Equipment, Additions | 321,805 | ||
Depreciation | (88,553) | ||
Transfers from flight equipment held for lease to Net investment in leases and Other assets | (204,243) | ||
Asset Impairment Charges | (1,097) | ||
Property, Plant, and Equipment, Lessor Asset under Operating Lease, Accumulated Depreciation | $ 2,264,771 |
Lease Rental Revenues and Fli_3
Lease Rental Revenues and Flight Equipment Held for Lease (Details) $ in Thousands | May 31, 2023 USD ($) |
Annual future minimum lease rentals receivable | |
2024 (Remainder of fiscal year) | $ 451,869 |
2025 | 528,826 |
2026 | 414,434 |
2027 | 348,453 |
2028 | 278,390 |
Thereafter | 833,985 |
Total | $ 2,855,957 |
Lease Rental Revenues and Fli_4
Lease Rental Revenues and Flight Equipment Held for Lease (Details Textual) - USD ($) $ in Thousands | May 31, 2023 | Feb. 28, 2023 |
Maintenance Payments | ||
Revenue, Major Customer [Line Items] | ||
Lease incentive liabilities | $ 26,000 | $ 22,400 |
Net Investment in Leases, Net_2
Net Investment in Leases, Net (Details Textual) $ in Thousands | 3 Months Ended | ||
May 31, 2023 USD ($) aircraft | May 31, 2022 USD ($) | Feb. 28, 2023 aircraft | |
Operating Leased Assets [Line Items] | |||
Net Investment in Lease, Number of Leased Assets | aircraft | 14 | 4 | |
Net Investment in Lease, Number of Leased Assets Transferred in/(Out) | aircraft | 10 | ||
Gain on sale of flight equipment | $ 42,594 | $ 3,687 | |
Provision for credit losses | 6,959 | ||
Net Investment in Lease | |||
Operating Leased Assets [Line Items] | |||
Gain on sale of flight equipment | $ 32,700 |
Net Investment in Leases, Net_3
Net Investment in Leases, Net (Details 2) - USD ($) $ in Thousands | May 31, 2023 | Feb. 28, 2023 |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ||
Lease receivable | $ 143,191 | $ 31,674 |
Unguaranteed residual value of flight equipment | 131,665 | 37,287 |
Net investment leases | 274,856 | 68,961 |
Allowance for credit losses | (8,226) | (1,267) |
Net investment in leases, net | 266,630 | $ 67,694 |
Receivable in Remainder of Fiscal Year | 17,735 | |
Receivable in Year Two | 25,284 | |
Receivable in Year Three | 24,984 | |
Receivable in Year Four | 25,121 | |
Receivable in Year Five | 24,911 | |
Thereafter | 74,317 | |
Total | 192,352 | |
Present value of lease payments - lease receivable | (143,191) | |
Difference between undiscounted lease payments and lease receivable | $ 49,161 |
Net Investment in Leases, Net -
Net Investment in Leases, Net - Credit Loss Rollforward (Details) $ in Thousands | 3 Months Ended |
May 31, 2023 USD ($) | |
Net Investment in Lease, Allowance for Credit Loss [Roll Forward] | |
Balance at February 28, 2023 | $ 1,267 |
Provision for credit losses | 6,959 |
Balance at May 31, 2023 | $ 8,226 |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
May 31, 2023 USD ($) aircraft Lessee | May 31, 2022 USD ($) Lessee | Feb. 28, 2023 USD ($) aircraft Lessee | Jul. 07, 2023 aircraft | |
Concentration Risk [Line Items] | ||||
Property Subject To Or Available for Operating Lease, Number of Units1 | 244 | 239 | ||
Percentage of geographic concentration | 100% | 100% | 100% | |
Number of Offlease Aircraft Marketed for Lease | 11 | |||
Number of Offlease Aircraft Marketed for Lease or Sale | 14 | |||
Maintenance revenue | $ | $ 34,520 | $ 27,099 | ||
Asia Pacific [Member] | ||||
Concentration Risk [Line Items] | ||||
Property Subject To Or Available for Operating Lease, Number of Units1 | 62 | 62 | ||
Europe [Member] | ||||
Concentration Risk [Line Items] | ||||
Property Subject To Or Available for Operating Lease, Number of Units1 | 90 | 88 | ||
Middle East and Africa [Member] | ||||
Concentration Risk [Line Items] | ||||
Property Subject To Or Available for Operating Lease, Number of Units1 | 7 | 8 | ||
North America [Member] | ||||
Concentration Risk [Line Items] | ||||
Property Subject To Or Available for Operating Lease, Number of Units1 | 43 | 38 | ||
South America [Member] | ||||
Concentration Risk [Line Items] | ||||
Property Subject To Or Available for Operating Lease, Number of Units1 | 31 | 29 | ||
UNITED STATES | ||||
Concentration Risk [Line Items] | ||||
Net Investment in Lease and Net Book Value of Equipment held for Lease | $ | $ 679,035 | $ 0 | ||
property subject to or available for operating lease, net (percentage) | 10% | 0% | ||
number of lessees | Lessee | 5 | 0 | ||
GREECE | ||||
Concentration Risk [Line Items] | ||||
Maintenance revenue | $ | $ 19,200 | |||
Geographic Concentration Risk [Member] | Net Book Value | Off Lease | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 4% | 5% | ||
Geographic Concentration Risk [Member] | Net Book Value | Asia Pacific [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 27% | 28% | ||
Geographic Concentration Risk [Member] | Net Book Value | Europe [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 29% | 30% | ||
Geographic Concentration Risk [Member] | Net Book Value | Middle East and Africa [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 2% | 3% | ||
Geographic Concentration Risk [Member] | Net Book Value | North America [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 23% | 20% | ||
Geographic Concentration Risk [Member] | Net Book Value | South America [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 15% | 14% | ||
Geographic Concentration Risk [Member] | Lease Rental Revenue | Asia Pacific [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 30% | 33% | ||
Geographic Concentration Risk [Member] | Lease Rental Revenue | Europe [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 30% | 29% | ||
Geographic Concentration Risk [Member] | Lease Rental Revenue | Middle East and Africa [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 4% | 5% | ||
Geographic Concentration Risk [Member] | Lease Rental Revenue | North America [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 23% | 17% | ||
Geographic Concentration Risk [Member] | Lease Rental Revenue | South America [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 13% | 16% | ||
Geographic Concentration Risk [Member] | Total Revenue [Member] | GREECE | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 10% | |||
Major Customer Group One [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Number of Customers in Major Customer Group | Lessee | 3 | 4 | ||
Major Customer Group One [Member] | Geographic Concentration Risk | Lease Rental Revenue | ||||
Concentration Risk [Line Items] | ||||
Percentage of geographic concentration | 21% | 30% | ||
Wide-body [Member] | Subsequent Event [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Offlease Aircraft Marketed for Lease or Sale | 1 | |||
Wide-body [Member] | Number of Off-lease Aircraft Marketed for Lease or Sale from Prior Year [Member] | Subsequent Event [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Offlease Aircraft Marketed for Lease or Sale | 1 | |||
Narrow-body [Member] | Subsequent Event [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Offlease Aircraft Marketed for Lease or Sale | 2 | |||
Narrow-body [Member] | Number of Off-lease Aircraft Marketed for Lease or Sale from Prior Year [Member] | Subsequent Event [Member] | ||||
Concentration Risk [Line Items] | ||||
Number of Offlease Aircraft Marketed for Lease or Sale | 2 |
Unconsolidated Equity Method _3
Unconsolidated Equity Method Investment (Details) $ in Thousands | 3 Months Ended | ||
May 31, 2023 USD ($) aircraft | May 31, 2022 USD ($) | Feb. 28, 2023 USD ($) | |
Unconsolidated equity method investment | $ 40,911 | $ 40,505 | |
Earnings of unconsolidated equity method investment, net of tax | $ 406 | $ 511 | |
Equity Method Investee | |||
Total number of aircraft owned by joint ventures | aircraft | 9 | ||
Net Investment in Lease and Net Book Value of Equipment held for Lease | $ 281,900 |
Borrowings from Secured and U_3
Borrowings from Secured and Unsecured Debt Financings (Details) $ in Thousands | May 31, 2023 USD ($) aircraft | Apr. 03, 2023 USD ($) | Feb. 28, 2023 USD ($) |
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from secured financings | $ 933,005 | $ 752,298 | |
Borrowings from unsecured financings, net | $ 3,720,956 | 3,842,454 | |
Number of Aircraft Financed | aircraft | 38 | ||
Total secured and unsecured debt financings | $ 4,653,961 | 4,594,752 | |
Line of Credit | Revolving Credit Facility | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 395,000 | 20,000 | |
Revolving Credit Facility | Minimum | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 6.72% | ||
Revolving Credit Facility | Maximum | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 6.91% | ||
Bank Financings | Notes Payable, Other Payables | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Debt, Weighted Average Interest Rate | 5.35% | ||
Bank Financings | Notes Payable to Banks | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from secured financings | $ 941,989 | 761,283 | |
Bank Financings | Notes Payable to Banks | Minimum | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 2.36% | ||
Bank Financings | Notes Payable to Banks | Maximum | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 7.52% | ||
Bank Financings | Secured Debt | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Number of Aircraft Financed | aircraft | 38 | ||
Secured Debt | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Debt Issuance Cost | $ (8,984) | (8,985) | |
Senior Notes Due 2023 | Senior Notes | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 500,000 | ||
Interest rate | 5% | ||
Senior Notes Due 2023 | Senior Notes | 5.00 | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 0 | 500,000 | |
Interest rate | 5% | ||
Senior Notes Due 2023 | Senior Notes | 4.40% | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 650,000 | 650,000 | |
Interest rate | 4.40% | ||
ECA Term Financings | Secured Debt | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Number of Aircraft Financed | aircraft | 0 | ||
Senior Notes Due 2024 | Senior Notes | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 500,000 | 500,000 | |
Senior Notes Due 2024 | Senior Notes | 4.125 | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 4.125% | ||
Senior Notes Due 2025 [Member] | Senior Notes | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 650,000 | 650,000 | |
Senior Notes Due 2025 [Member] | Senior Notes | 5.25% | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 5.25% | ||
Senior Notes Due 2026 [Member] | Senior Notes | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 650,000 | 650,000 | |
Senior Notes Due 2026 [Member] | Senior Notes | 4.25% | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 4.25% | ||
Senior Notes Due 2028 | Senior Notes | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 750,000 | 750,000 | |
Senior Notes Due 2028 | Senior Notes | 2.85% | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 2.85% | ||
Floating Rate Term Loan | Notes Payable to Banks | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Interest rate | 6.68% | ||
Floating Rate Term Loan | Floating Rate Term Loan | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Borrowings from unsecured financings, net | $ 155,000 | 155,000 | |
Unsecured Debt | |||
Outstanding amounts of secured and unsecured term debt financings | |||
Debt Issuance Cost | $ (29,044) | $ (32,546) |
Borrowings from Secured and U_4
Borrowings from Secured and Unsecured Debt Financings (Details) | Nov. 21, 2022 aircraft | Jul. 12, 2023 USD ($) numberOfRevolvingCreditFacilities | Jun. 05, 2023 USD ($) numberOfRevolvingCreditFacilities | May 31, 2023 USD ($) | Apr. 03, 2023 USD ($) | Feb. 28, 2023 USD ($) |
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,400,000,000 | |||||
Borrowings from unsecured financings, net | 3,720,956,000 | $ 3,842,454,000 | ||||
Borrowings from secured financings, net | 933,005,000 | 752,298,000 | ||||
2022 Secured Facility | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Maximum number of aircraft secured by debt instrument | aircraft | 17 | |||||
Borrowings from secured financings, net | 437,600,000 | |||||
Secured Debt, Amount Borrowed During the Current Period | 168,700,000 | |||||
2022 Secured Facility | Secured Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.35% | |||||
Senior Notes Due 2023 | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings from unsecured financings, net | $ 500,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5% | |||||
Revolving Credit Facility | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Borrowings from unsecured financings, net | 395,000,000 | $ 20,000,000 | ||||
Revolving Credit Facility | DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 325,000,000 | |||||
Revolving Credit Facility | DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Tranche C ($245mm) - DBS Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 245,000,000 | |||||
Revolving Credit Facility | DBS (2018) Unsecured Revolving Credit Facility | Line of Credit | Tranche C ($245mm) - DBS Revolving Credit Facility | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 285,000,000 | |||||
Line of Credit | DBS (2018) Unsecured Revolving Credit Facility | Revolving Credit Facility | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Individual Debt Instrument at Time of Issuance Part of Overall Portfolio of Revolving Credit Facilities | numberOfRevolvingCreditFacilities | 1 | 1 |
Shareholders_ Equity (Details)
Shareholders’ Equity (Details) $ in Thousands | 3 Months Ended |
May 31, 2023 USD ($) | |
Equity [Abstract] | |
Dividends, Preferred Stock | $ 10,500 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Marubeni Service Agreement | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 2,000 | $ 1,400 |
Marubeni Affiliate Parts Management Services and Supply Agreement | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 400 | $ 1,700 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Sources of income from continuing operations before income taxes | ||
U.S. operations | $ 4,282 | $ 5,336 |
Non-U.S. operations | 32,442 | 5,164 |
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | $ 36,724 | $ 10,500 |
Income Taxes Income Taxes (Text
Income Taxes Income Taxes (Textual) (Details) | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate, Continuing Operations | 39.10% | 31.70% |
Interest, Net (Details)
Interest, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
May 31, 2023 | May 31, 2022 | |
Interest Income (Expense), Net [Abstract] | ||
Interest on borrowings and other liabilities | $ 55,872 | $ 47,241 |
Amortization of deferred financing costs | 4,031 | 3,597 |
Interest expense | 59,903 | 50,838 |
Less: Interest income | (2,292) | (259) |
Less: Capitalized interest | (720) | (285) |
Interest, net | $ 56,891 | $ 50,294 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | |
May 31, 2023 USD ($) aircraft | May 31, 2022 USD ($) | |
Types of Commercial Aircraft [Line Items] | ||
Rent expense | $ 600 | $ 500 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2024 (Remainder of fiscal year) | 2,522 | |
2025 | 2,933 | |
2026 | 2,709 | |
2027 | 2,717 | |
2028 | 2,748 | |
Thereafter | 16,716 | |
Total | $ 30,345 | |
Committed to acquire aircraft | aircraft | 12 | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
2024 (Remainder of fiscal year) | $ 138,239 | |
2025 | 171,533 | |
2026 | 96,848 | |
2027 | 0 | |
2028 | 0 | |
Thereafter | 0 | |
Total | 406,620 | |
Pre-Delivery Payments | ||
Purchase Obligation, Fiscal Year Maturity [Abstract] | ||
Total | $ 39,400 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | May 31, 2023 | Feb. 28, 2023 |
Principal components of other assets | ||
Deferred income tax asset | $ 310 | $ 304 |
Lease incentives and premiums, net of accumulated amortization of $80,679 and $77,722, respectively | 37,985 | 54,208 |
Flight equipment held for sale | 28,705 | 59,370 |
Aircraft purchase deposits and Embraer E-2 progress payments | 40,447 | 43,494 |
Right-of-use asset | 17,052 | 16,930 |
Deferred rent receivable | 32,420 | 35,631 |
Investments, at fair value | 10,543 | 10,819 |
Other assets | 138,517 | 125,574 |
Total other assets | 305,979 | 346,330 |
Lease Incentives and Lease Premiums, Accumulated Amortization | $ 80,679 | $ 77,722 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | May 31, 2023 | Feb. 28, 2023 |
Payables and Accruals [Abstract] | ||
Accounts payable, accrued expenses and other liabilities | $ 48,022 | $ 60,225 |
Deferred income tax liability | 83,808 | 79,990 |
Accrued interest payable | 43,752 | 42,752 |
Lease liability | 20,048 | 19,951 |
Lease discounts, net of amortization of $45,830 and $45,586, respectively | 3,311 | 3,555 |
Total accounts payable, accrued expenses and other liabilities | 198,941 | 206,473 |
Deferred Lease Income, Accumulated Amortization | $ 45,830 | $ 45,586 |
Subsequent Event - Narrative (D
Subsequent Event - Narrative (Details) $ / shares in Units, $ in Thousands | Jul. 06, 2023 USD ($) numberOfTranchesForSubscriptionAgreement | May 31, 2023 $ / shares | Feb. 28, 2023 $ / shares |
Subsequent Event [Line Items] | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Common Stock, Value, Subscriptions | $ 500,000 | ||
Number of Tranches for Subscription Agreement | numberOfTranchesForSubscriptionAgreement | 2 | ||
Subsequent Event [Member] | Subscription Agreement with Marubeni/Mizuho - Tranche One ($200.0 million) | |||
Subsequent Event [Line Items] | |||
Common Stock, Value, Subscriptions | $ 200,000 | ||
Subsequent Event [Member] | Subscription Agreement with Marubeni/Mizuho - Tranche Two ($300.0 million) | |||
Subsequent Event [Line Items] | |||
Common Stock, Value, Subscriptions | $ 300,000 |