Annual report pursuant to Section 13 and 15(d)

ESCROW DEPOSITS

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ESCROW DEPOSITS
 12 Months Ended
Dec. 31, 2017
Escrow Deposits [Abstract]  
ESCROW DEPOSITS
ESCROW DEPOSITS
From time to time, the Company enters into Qualified Exchange Accommodation Agreements with a third party to meet the like-kind exchange requirements of Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”) and the provisions of Revenue Procedure 2000-37. In accordance with these provisions, the Company is permitted to deposit proceeds from the sale of assets into escrow accounts for the purpose of acquiring other assets and qualifying for the temporary deferral of taxable gains realized. Consequently, the Company establishes escrow accounts with financial institutions for the deposit of funds received on sale of equipment, which were designated for replacement property within a specified period of time. As of December 31, 2017 and 2016, the Company had $3.3 million and $3.8 million, respectively, deposited in like-kind exchange escrow accounts.
During the year ended December 31, 2017, the Company sold one light twin helicopter for total cash proceeds of $3.2 million, net of fees. The sale transaction was treated as a tax-free like-kind exchange, and the proceeds were deposited with a qualified intermediary to be held until a qualifying asset was delivered.
During the year ended December 31, 2016, the Company sold two medium helicopters for total cash proceeds of $18.2 million, net of fees. The sale transaction was treated as tax-free like-kind exchanges, and the proceeds were deposited with a qualified intermediary to be held until a qualifying asset was delivered. The Company used $7.4 million of the proceeds to purchase a AW189 heavy helicopter in December 2016, which completed the first like-kind exchange transaction. The Company identified an asset for the second like-kind exchange transaction and withdrew $7.0 million to make a progress payment on a S92 heavy helicopter in December 2016.