FTAI Aviation Ltd.FTAI

FTAI Aviation Ltd. Revenue Disclosure

10-KFiled Feb 27, 20232 min read
REVENUES
We disaggregate our revenue from contracts with customers by products and services provided for each of our segments, as we believe it best depicts the nature, amount, timing and uncertainty of our revenue. Revenues are within the scope of ASC 842, Leases and ASC 606, Revenue from contracts with customers, unless otherwise noted. We have elected to exclude sales and other similar taxes from revenues.
During the third quarter of 2022, we updated our corporate strategy based on the opportunities available in the market such that the sale of aircraft and engines is now an output of our recurring, ordinary activities. As a result of this update, the transaction price allocated to the sale of assets is included in Revenues in the Consolidated Statement of Operations for the third and fourth quarters of 2022 and are accounted for in accordance with ASC 606. The corresponding net book values of the assets sold are recorded in Cost of sales in the Consolidated Statement of Operations for the third and fourth quarters of 2022. Sales transactions of aircraft and engines prior to the third quarter of 2022 were accounted for in accordance with ASC 610-20, Gains and losses from the derecognition of nonfinancial assets and were included in Gain (loss) on sale of assets, net on the Consolidated Statement of Operations, as we were previously only occasionally selling these assets. Generally, assets sold were under leasing arrangements with customers prior to sales and were included in Leasing equipment, net, on the Consolidated Balance Sheets.
Year Ended December 31, 2022
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Lease income
$158,628 $— $20,246 $178,874 
Maintenance revenue
148,846 — — 148,846 
Finance lease income
440 — — 440 
Asset sales revenue208,500 — — 208,500 
Aerospace products revenue— 153,550 — 153,550 
Other revenue
11,499 — 6,702 18,201 
Total revenues
$527,913 $153,550 $26,948 $708,411 
Year Ended December 31, 2021
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Lease income
$161,986 $— $10,131 $172,117 
Maintenance revenue
128,819 — — 128,819 
Finance lease income
1,747 — — 1,747 
Asset sales revenue— — — — 
Aerospace products revenue— 23,301 — 23,301 
Other revenue
5,569 — 4,030 9,599 
Total revenues$298,121 $23,301 $14,161 $335,583 
Year Ended December 31, 2020
Aviation LeasingAerospace ProductsCorporate and OtherTotal
Revenues
Lease income
$166,331 $— $11,145 $177,476 
Maintenance revenue
101,462 — — 101,462 
Finance lease income
2,260 — — 2,260 
Asset sales revenue— — — — 
Aerospace products revenue— — — — 
Other revenue
11,158 — 5,578 16,736 
Total revenues$281,211 $— $16,723 $297,934 
Presented below are the contracted minimum future annual revenues to be received under existing operating leases as of December 31, 2022:
December 31, 2022
2023$141,154 
202486,337 
202558,334 
202639,465 
202724,810 
Thereafter44,285 
Total$394,385 

Historical Timeline

Fiscal YearFiled
2022Feb 27, 2023Showing above
2021Feb 28, 2022
2020Feb 26, 2021
2019Feb 28, 2020
2018Feb 28, 2019
2017Mar 1, 2018
2016Feb 24, 2017
2015Mar 10, 2016

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew Standards