AerSale Corp PP&E Disclosure
NOTE G - PROPERTY AND EQUIPMENT, NET
Property and equipment, net, consisted of the following (in thousands):
| Useful Life |
|
| |||||
In Years | December 31, 2023 | December 31, 2022 | ||||||
Tooling and equipment |
| 7 - 15 | $ | 16,024 | $ | 14,649 | ||
Furniture and other equipment |
| 5 |
| 12,076 |
| 10,090 | ||
Computer software |
| 5 |
| 2,374 |
| 2,152 | ||
Leasehold improvements |
| 3 - 10 |
| 16,269 |
| 7,390 | ||
Equipment under capital lease |
| 5 |
| 192 |
| 192 | ||
Flight equipment held for R&D | 2 | 7,784 | - | |||||
| 54,719 |
| 34,473 | |||||
Less accumulated depreciation |
| (27,027) |
| (21,835) | ||||
$ | 27,692 | $ | 12,638 | |||||
Depreciation expense, which includes amortization of equipment under capital lease, was as follows (in thousands):
Year Ended December 31, | |||||||||
2023 | 2022 | 2021 | |||||||
Depreciation expense | $ | 3,736 | $ | 2,242 | $ | 1,997 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 8, 2024 | Showing above |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 16, 2021 | |
About PP&E Disclosures
The PP&E disclosure details a company's physical asset base — land, buildings, machinery, and equipment — along with the depreciation methods and useful life assumptions that determine how these costs flow through the income statement. Capitalization policy thresholds reveal management's judgment on the boundary between expense and asset, directly affecting both reported earnings and asset values.
Key signals: changes in estimated useful lives or depreciation methods can materially shift reported earnings without any operational change. Compare capital expenditures against depreciation expense — when capex consistently trails depreciation, the asset base may be aging and underinvested. Watch for large asset impairments or write-downs that signal overvalued carrying amounts. Asset retirement obligations reveal future environmental or decommissioning costs that are often underappreciated. Compare PP&E intensity (PP&E-to-revenue) against industry peers to assess capital efficiency and competitive positioning.