SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2025

Other current assets are summarized as follows:


	June 30, 2025 (unaudited)		December 31, 2024
Notes receivable	$	182,720	$	165,338
Financing receivable resulting from failed sale-leaseback transactions	39,606		32,486
Prepaid expenses including prepayments for maintenance that has not yet been incurred	30,605		87,323
Purchase deposits	22,120		83,229
Maintenance right assets	20,844		—
Tax assets	19,776		31,622
Contract asset from the 2025 Partnership	15,184		—
Other	12,370		8,925
Other current assets	$	343,225	$	408,923

Schedule of Other Non-current Assets

Other non-current assets are summarized as follows:


	June 30, 2025 (unaudited)		December 31, 2024
Lease incentives	$	47,695	$	56,812
Deferred tax assets	34,681		42,893
Operating lease assets	27,592		28,729
Financing receivable resulting from failed sale-leaseback transactions	21,215		28,412
Maintenance right assets	16,658		25,907
Engine management contract assets	9,550		7,162
Other	8,903		18,515
Other non-current assets	$	166,294	$	208,430

Schedule of Other Current Liabilities

Other current liabilities are summarized as follows:


	June 30, 2025 (unaudited)		December 31, 2024
Deposits on sales of leasing equipment	34,216		$	87,296
Other	9,406		13,269
Other current liabilities	$	43,622	$	100,565

Schedule of Assets and Liabilities Held for Sale

Assets and liabilities held for sale are summarized as follows (unaudited):


	June 30, 2025
Leasing equipment, net	$	120,773
Intangible assets, net	158
Other non-current assets	917
Assets held for sale	$	121,848

Current maintenance deposits	$	19,322
Current security deposits	—
Non-current maintenance deposits	3,456
Non-current security deposits	2,738
Other non-current liabilities	5,367
Liabilities held for sale	$	30,883

Schedule of Cash and Noncash Related Activities

The cash and noncash related activities described above during the six months ended June 30, 2025 and 2024 are detailed below (unaudited):


	Six Months Ended June 30,
(in thousands)	2025		2024

Cost of modules and parts sold sourced from engines originally within leasing equipment	$	3,369	$	21,861
Transfers of engines from leasing equipment to inventory for manufacturing and sale	128,752		70,897
Transfers of inventory to leasing equipment for rebuilding and sale of engines	(159,997)		(98,192)
Total outflows related to manufacturing modules and parts - included in net cash used in operating activities	(313,998)		(128,988)
Cash received for assets sold sourced from leasing equipment - inflow included in net cash provided by operating activities	43,011		38,649
Cash received for sales of leasing equipment that include components sourced from inventory - inflow included in net cash provided by investing activities	415,416		134,204
Cash paid for engine and aircraft inventory - outflow included in net cash used in operating activities	(25,715)		—

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

+ References

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+ Details

FTAI Aviation Ltd. 10-Q