Spin-off - FTAI Aviation Ltd.

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Form Type: CORRESP

Filing Date: 2025-01-03

Corporate Action: Spin-off

Type: Update

Accession Number: 000114036125000197

Filing Summary: FTAI Aviation Ltd. is submitting a response to the SEC regarding comments on its Form 10-K for the year ended December 31, 2023. The company addresses staff comments on its financial presentation, particularly about its Consolidated Balance Sheets and the classification of total current assets and liabilities. The Company clarified discrepancies related to sales transactions for aircraft or engines and discussed its change in strategic approach following the spin-off of FTAI Infrastructure Inc. on August 1, 2022, which led to re-evaluation of its business segments into Aviation Leasing and Aerospace Products. The document outlines the Company's acknowledgment of SEC comments and informs that future filings will include updated disclosures regarding asset classifications and cash flow predominance. Additionally, it details how the recent shift in business strategy impacts their current approach to asset sales, acknowledging sales of previously leased assets as outputs of ordinary activities now accounted for under ASC 606.

Document Link: View Document

Additional details:

Staff Comment Number: 1

Response: The presentation of total current assets and total current liabilities will be revised in future filings.

Business Segment Changes: Post spin-off, the Company has focused operations on Aviation Leasing and Aerospace Products.

Spin Off Date: 2022-08-01

Spin Off Company: FTAI Infrastructure Inc.

Sales Activity Revisions: Sales of previously leased long-lived assets are now considered ordinary activities, moving to be accounted under ASC 606.

Historical Sales Data: Total asset sales in FY 2022 were $339,688K, and in FY 2023 it totaled $303,141K.

New Executive Team: A dedicated sales team for asset sales was established under new leadership.

Expected Ebitda: The Company projected to earn $100M in EBITDA from asset sales in 2023.

Cash Flow Disclosures: The firm anticipates including more detailed disclosures in their 2024 Form 10-K regarding cash flows from leasing equipment purchases and sales.

Strategic Shifts Summary: The Company's organizational structure and strategy pivoted post-spin-off to prioritize asset sales alongside leasing, increasing revenue from sales through dedicated sales initiatives.

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