Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Feb. 16, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document period end date | Dec. 31, 2022 | |
Amendment flag | false | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2022 | |
Current fiscal year end date | --12-31 | |
Entity central index key | 0001135185 | |
Document Annual Report | true | |
Document Transition Report | false | |
Entity File Number | 001-16545 | |
Entity Registrant Name | Atlas Air Worldwide Holdings, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 2000 Westchester Avenue | |
Entity Address, Address Line Two | Purchase | |
Entity Address, State or Province | NY | |
Entity Address, City or Town | New York | |
Entity Address, Postal Zip Code | 10577 | |
City Area Code | 914 | |
Local Phone Number | 701-8000 | |
Entity Tax Identification Number | 13-4146982 | |
Title of 12(b) Security | Common Stock, $0.01 Par Value | |
Trading Symbol | AAWW | |
Security Exchange Name | NASDAQ | |
Entity Well Known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity filer category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity common stock shares outstanding | 28,633,181 | |
Entity Public Float | $ 1,263.8 | |
Auditor Firm ID | 238 | |
Auditor Name | PricewaterhouseCoopers LLP | |
Auditor Location | New York, New York | |
Documents Incorporated by Reference | Certain portions of the registrant’s Proxy Statement relating to the 2023 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission, are incorporated by reference into Part III. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 763,314 | $ 910,965 |
Restricted cash | 10,597 | 10,052 |
Accounts receivable, net of allowance of $2,661 and $4,003, respectively | 253,738 | 305,905 |
Prepaid expenses, assets held for sale and other current assets | 97,269 | 99,100 |
Total current assets | 1,124,918 | 1,326,022 |
Property and Equipment | ||
Flight equipment | 6,286,103 | 5,449,100 |
Ground equipment | 106,246 | 101,824 |
Less: accumulated depreciation | (1,510,402) | (1,319,636) |
Flight equipment purchase deposits and modifications in progress | 235,586 | 352,422 |
Property and equipment, net | 5,117,533 | 4,583,710 |
Other Assets | ||
Operating lease right-of-use assets | 107,707 | 138,744 |
Deferred costs and other assets | 287,392 | 329,971 |
Intangible assets, net and goodwill | 58,766 | 64,796 |
Total Assets | 6,696,316 | 6,443,243 |
Current Liabilities | ||
Accounts payable | 115,304 | 82,885 |
Accrued liabilities | 565,108 | 641,978 |
Current portion of long-term debt and finance leases | 437,046 | 639,811 |
Current portion of long-term operating leases | 53,825 | 55,383 |
Total current liabilities | 1,171,283 | 1,420,057 |
Other Liabilities | ||
Long-term debt and finance leases | 1,861,122 | 1,655,075 |
Long-term operating leases | 111,591 | 166,022 |
Deferred taxes | 452,495 | 354,798 |
Financial instruments and other liabilities | 35,049 | 37,954 |
Total other liabilities | 2,460,257 | 2,213,849 |
Commitments and contingencies | 0 | 0 |
Stockholders’ Equity | ||
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock, $0.01 par value; 100,000,000 shares authorized; 35,465,249 and 34,707,860 shares issued, 28,542,203 and 29,215,702 shares outstanding (net of treasury stock), as of December 31, 2022 and December 31, 2021, respectively | 353 | 347 |
Additional paid-in capital | 878,727 | 934,516 |
Treasury stock, at cost; 6,923,046 and 5,492,158 shares, respectively | (339,219) | (225,461) |
Accumulated other comprehensive income (loss) | 44 | (511) |
Retained earnings | 2,524,871 | 2,100,446 |
Total stockholders’ equity | 3,064,776 | 2,809,337 |
Total Liabilities and Equity | $ 6,696,316 | $ 6,443,243 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 2,661 | $ 4,003 |
Preferred stock par value | $ 1 | $ 1 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | 0 | 0 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 35,465,249 | 34,707,860 |
Common stock shares outstanding | 28,542,203 | 29,215,702 |
Treasury stock shares | 6,923,046 | 5,492,158 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Operating Revenue | $ 4,549,104 | $ 4,030,829 | $ 3,211,116 |
Operating Expenses | |||
Aircraft fuel | 1,335,622 | 824,928 | 440,649 |
Salaries, wages and benefits | 1,135,153 | 924,440 | 737,963 |
Maintenance, materials and repairs | 425,959 | 472,537 | 506,297 |
Depreciation and amortization | 303,220 | 281,209 | 257,672 |
Travel | 211,902 | 162,986 | 154,792 |
Navigation fees, landing fees and other rent | 159,212 | 184,060 | 155,107 |
Passenger and ground handling services | 140,381 | 156,962 | 138,822 |
Aircraft rent | 52,268 | 67,745 | 96,865 |
Loss (gain) on disposal of flight equipment | 3,098 | (794) | (7,248) |
Special charge | 16,215 | 0 | 16,265 |
Transaction-related expenses | 9,746 | 1,001 | 2,780 |
Other | 233,934 | 244,461 | 216,384 |
Total Operating Expenses | 4,026,710 | 3,319,535 | 2,716,348 |
Operating Income | 522,394 | 711,294 | 494,768 |
Non-operating Expenses (Income) | |||
Interest income | (8,755) | (723) | (1,076) |
Interest expense | 81,692 | 107,492 | 114,635 |
Capitalized interest | (12,683) | (8,316) | (925) |
Loss on early extinguishment of debt | 689 | 6,042 | 81 |
Unrealized loss on financial instruments | 0 | 113 | 71,053 |
Other (income) expense, net | (185) | (40,705) | (185,742) |
Total Non-operating Expenses (Income) | 60,758 | 63,903 | (1,974) |
Income before income taxes | 461,636 | 647,391 | 496,742 |
Income tax expense | 105,756 | 154,074 | 136,456 |
Net Income | $ 355,880 | $ 493,317 | $ 360,286 |
Earnings per share: | |||
Basic | $ 12.50 | $ 17.06 | $ 13.64 |
Diluted | $ 10.53 | $ 16.16 | $ 13.50 |
Weighted average shares: | |||
Basic | 28,463 | 28,910 | 26,408 |
Diluted | 34,190 | 30,543 | 26,690 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 355,880 | $ 493,317 | $ 360,286 |
Other comprehensive income: | |||
Reclassification to loss on early extinguishment of debt | 639 | 890 | 0 |
Reclassification to interest expense | 91 | 920 | 1,178 |
Income tax benefit | (175) | (417) | (264) |
Other comprehensive income | 555 | 1,393 | 914 |
Comprehensive Income | $ 356,435 | $ 494,710 | $ 361,200 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities: | |||
Net Income | $ 355,880 | $ 493,317 | $ 360,286 |
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 354,139 | 357,330 | 328,101 |
Accretion of debt securities discount | 0 | 0 | (2) |
Provision for (reversal of) expected credit losses | (595) | (378) | 463 |
Loss on early extinguishment of debt | 689 | 6,042 | 81 |
Special charge | 16,215 | 0 | 16,265 |
Unrealized loss on financial instruments | 0 | 113 | 71,053 |
Loss (gain) on disposal of flight equipment | 3,098 | (794) | (7,248) |
Deferred taxes | 104,747 | 152,399 | 133,598 |
Stock-based compensation | 13,838 | 14,014 | 21,997 |
Changes in: | |||
Accounts receivable | 49,885 | (37,800) | 26,132 |
Prepaid expenses, current assets and other assets | (18,200) | (49,763) | (56,716) |
Accounts payable, accrued liabilities and other liabilities | (41,957) | (11,496) | 115,532 |
Net cash provided by operating activities | 837,739 | 922,984 | 1,009,542 |
Investing Activities: | |||
Capital expenditures | (103,198) | (90,288) | (78,933) |
Purchase deposits and payments for flight equipment and modifications | (743,079) | (407,684) | (184,273) |
Investment in joint ventures | (10,614) | (4,893) | (9,298) |
Proceeds from investments | 0 | 0 | 881 |
Proceeds from disposal of flight equipment | 36,626 | 9,470 | 126,335 |
Net cash used for investing activities | (820,265) | (493,395) | (145,288) |
Financing Activities: | |||
Proceeds from debt issuance | 652,929 | 212,717 | 417,733 |
Payment of debt issuance costs | (14,701) | (9,541) | (6,100) |
Payments of debt and finance lease obligations | (693,723) | (542,594) | (429,749) |
Proceeds from revolving credit facility | 0 | 0 | 75,000 |
Payment of revolving credit facility | 0 | 0 | (175,000) |
Purchase of treasury stock | (100,000) | 0 | 0 |
Customer maintenance reserves and deposits received | 16,742 | 17,745 | 15,168 |
Customer maintenance reserves paid | (12,178) | (35,608) | (14,437) |
Treasury shares withheld for payment of taxes | (13,649) | (7,572) | (4,018) |
Net cash used for financing activities | (164,580) | (364,853) | (121,403) |
Net decrease in cash, cash equivalents and restricted cash | (147,106) | 64,736 | 742,851 |
Cash, cash equivalents and restricted cash at the beginning of period | 921,017 | 856,281 | 113,430 |
Cash, cash equivalents and restricted cash at the end of period | 773,911 | 921,017 | 856,281 |
Noncash Investing and Financing Activities: | |||
Acquisition of property and equipment included in Accounts payable and accrued liabilities | 6,515 | 38,985 | 36,619 |
Acquisition of property and equipment acquired under operating leases | 5,343 | 16,117 | 91,538 |
Acquisition of flight equipment under finance leases | 24,808 | 191,994 | 18,476 |
Issuance of shares related to settlement of warrant liability | 0 | 31,583 | 49,545 |
Issuance of shares related to settlement of convertible notes | 7,902 | 0 | 0 |
Customer maintenance reserves settled with sale of aircraft | $ 0 | $ 0 | $ 6,497 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Common Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] | Treasury Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member] |
Beginning Balance at Dec. 31, 2019 | $ 1,792,179 | $ 310 | $ (213,871) | $ 761,715 | $ (2,818) | $ 1,246,843 | ||||||
Net Income | 360,286 | 0 | 0 | 0 | 0 | 360,286 | ||||||
Other comprehensive income | 914 | 0 | 0 | 0 | 914 | 0 | ||||||
Stock-based compensation | 21,997 | 0 | 0 | 21,997 | 0 | 0 | ||||||
Issuance of warrants | 40,636 | 0 | 0 | 40,636 | 0 | 0 | ||||||
Treasury shares withheld for payment of taxes | (4,018) | 0 | (4,018) | 0 | 0 | 0 | ||||||
Issuance of shares related to settlement of warrant | 49,545 | 14 | 0 | 49,531 | 0 | 0 | ||||||
Issuance of shares of restricted stock | 0 | 5 | 0 | (5) | 0 | 0 | ||||||
Ending Balance at Dec. 31, 2020 | 2,261,539 | 329 | (217,889) | 873,874 | (1,904) | 1,607,129 | ||||||
Net Income | 493,317 | 0 | 0 | 0 | 0 | 493,317 | ||||||
Other comprehensive income | 1,393 | 0 | 0 | 0 | 1,393 | 0 | ||||||
Stock-based compensation | 14,014 | 0 | 0 | 14,014 | 0 | 0 | ||||||
Issuance of warrants | 15,063 | 0 | 0 | 15,063 | 0 | 0 | ||||||
Treasury shares withheld for payment of taxes | (7,572) | 0 | (7,572) | 0 | 0 | 0 | ||||||
Issuance of shares related to settlement of warrant | 31,583 | 15 | 0 | 31,568 | 0 | 0 | ||||||
Issuance of shares of restricted stock | 0 | 3 | 0 | (3) | 0 | 0 | ||||||
Ending Balance at Dec. 31, 2021 | 2,809,337 | $ (24,041) | 347 | $ 0 | (225,461) | $ 0 | 934,516 | $ (92,586) | (511) | $ 0 | 2,100,446 | $ 68,545 |
Net Income | 355,880 | 0 | 0 | 0 | 0 | 355,880 | ||||||
Other comprehensive income | 555 | 0 | 0 | 0 | 555 | 0 | ||||||
Stock-based compensation | 13,838 | 0 | 0 | 13,838 | 0 | 0 | ||||||
Issuance of shares related to settlement of convertible notes and warrants | 7,902 | 2 | 0 | 7,900 | 0 | 0 | ||||||
Receipt of shares related to settlement of convertible note hedge transaction | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
Issuance of warrants | 15,063 | 0 | 0 | 15,063 | 0 | 0 | ||||||
Purchase of shares of treasury stock | (100,109) | 0 | (100,109) | 0 | ||||||||
Treasury shares withheld for payment of taxes | (13,649) | 0 | (13,649) | 0 | 0 | 0 | ||||||
Issuance of shares of restricted stock | 0 | 4 | 0 | (4) | 0 | 0 | ||||||
Ending Balance at Dec. 31, 2022 | $ 3,064,776 | $ 353 | $ (339,219) | $ 878,727 | $ 44 | $ 2,524,871 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Issuance of shares related to settlement of convertible notes and warrants | 333,716 | ||
Receipt of shares related to settlement of convertible note hedge transaction | 26,162 | ||
Purchase of shares of treasury stock | 1,234,144 | ||
Treasury shares withheld for payment of taxes | 170,582 | 131,922 | 182,270 |
Issuance of shares of restricted stock | 423,673 | 342,466 | 453,270 |
Issuance of shares related to settlement of warrant | 1,467,861 | 1,375,421 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
Basis Of Presentation [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Our consolidated financial statements include the accounts of the holding company, Atlas Air Worldwide Holdings, Inc. (“AAWW”), and its consolidated subsidiaries. AAWW is the parent company of our principal operating subsidiary, Atlas Air, Inc. (“Atlas”), and several subsidiaries related to our dry leasing services (collectively referred to as “Titan”). AAWW also has a 51 % equity interest and 75 % voting interest in Polar Air Cargo Worldwide, Inc. (“Polar”). We record our share of Polar’s results under the equity method of accounting. Polar is a variable interest entity that we do not consolidate because we are not the primary beneficiary and we generally do not have any financial exposure to fund debt obligations or operating losses of Polar (see Note 5 for further discussion). Intercompany accounts and transactions have been eliminated. We account for investments in entities under the equity method of accounting when we hold between 20% and 50% ownership in the entity and exercise significant influence or when we are not the primary beneficiary of a variable interest entity. The terms “we,” “us,” “our,” and the “Company” mean AAWW and all entities included in its consolidated financial statements. We provide outsourced aircraft and aviation operating services throughout the world, serving Africa, Asia, Australia, Europe, the Middle East, North America and South America through: (i) contractual service arrangements, including those through which we provide aircraft to customers and value-added services, including crew, maintenance and insurance (“ACMI”), crew, maintenance and insurance, but not the aircraft (“CMI”) and cargo and passenger charter services (“Charter”); and (ii) dry leasing aircraft and engines (“Dry Leasing” or “Dry Lease”). Certain reclassifications have been made to prior periods in the notes to the consolidated financial statements to conform to the current year’s presentation of segments (see Note 14 for further discussion). Except for per share data, all dollar amounts are in thousands unless otherwise noted. |
Merger Agreement
Merger Agreement | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Merger Agreement | 2. Merger Agreement On August 4, 2022, we entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Rand Parent, LLC (“Parent”), a company affiliated with certain funds managed by affiliates of Apollo Global Management, Inc., J.F. Lehman & Company, Inc. and Hill City Capital L.P. (collectively, the “Buyers”) and Rand Merger Sub, Inc, a wholly owned subsidiary of Parent (“MergerCo”), pursuant to which, subject to the terms and conditions thereof, MergerCo will be merged with and into the Company (the “Merger”), with the Company surviving the Merger as a wholly owned subsidiary of Parent. Upon completion of the Merger, AAWW will become a privately held company and shares of AAWW common stock will no longer be listed or publicly traded on The NASDAQ Global Select Market. Subject to the terms and conditions set forth in the Merger Agreement, which has been unanimously approved by the board of directors, at the effective time of the Merger (the “Effective Time”), each share of the Company’s common stock issued and outstanding (subject to certain exceptions set forth in the Merger Agreement) shall be converted into the right to receive $ 102.50 in cash, without interest (the “Merger Consideration”). At the Effective Time, each outstanding warrant with an exercise price of $ 37.34 per share, as adjusted, issued to Amazon.com, Inc. and its subsidiary, Amazon Fulfillment Services, Inc., (collectively “Amazon”) (see Note 9 for further discussion), shall automatically vest and be exercised in accordance with its terms for the Merger Consideration and each outstanding warrant issued to the U.S. Treasury shall become exercisable for the Merger Consideration. No other warrants issued to Amazon will vest or become exercisable in connection with the Merger. In addition, at the Effective Time, each restricted share unit (including those subject to performance-based vesting conditions) will vest and be canceled and the holder will be entitled to receive an amount in cash equal to the number of shares of common stock underlying such award (assuming all performance goals are achieved at the maximum level of performance) multiplied by the Merger Consideration. On November 29, 2022, the shareholders of AAWW common stock adopted the Merger Agreement. We working to complete the transaction in the first quarter of 2023, and continue to make progress toward obtaining necessary approvals. At this time, we are awaiting final approval from the U.S. Department of Transportation and have received all other required shareholder approvals and regulatory approvals. The consummation of the Merger is subject to certain closing conditions, including, among other things: the absence of legal restraints prohibiting the Merger and other customary conditions specified in the Merger Agreement. The Merger Agreement contains certain termination rights for the Company and Parent, including, among others, the right of (1) either party to terminate the Merger Agreement if the Merger is not consummated by March 4, 2023 (subject to certain exceptions set forth in the Merger Agreement), (2) the Company to terminate the Merger Agreement in order to enter into a definitive acquisition agreement providing for a Superior Proposal (as defined in the Merger Agreement) and (3) Parent to terminate the Merger Agreement if the Board changes its recommendation with respect to the Merger Agreement. Upon termination of the Merger Agreement under specified circumstances, the Company would be required to pay Parent a termination fee. Generally, if the termination fee becomes payable as a result of the Company terminating the Merger Agreement in order to enter into a definitive acquisition agreement, or by Parent as a result of the Board changing its recommendation with respect to the Merger or under certain other circumstances, the amount of the termination fee will be $ 97.5 million. If the Company terminates the Merger Agreement as a result of Parent’s breach of the Merger Agreement or because Parent fails to consummate the Merger when required by the Merger Agreement, the Company will be entitled to receive a termination fee of $ 227.4 million. On February 17, 2023 , Parent closed its private offering of $ 850.0 million of senior secured notes for a term of seven years due in February 2030 at a fixed interest rate of 8.5 %. The proceeds are currently held in escrow and will be used to partially finance the Merger Consideration, repay certain existing Company debt, settle existing Company warrants and convertible notes and pay related transaction fees and expenses. The Company has incurred and will incur certain costs relating to the proposed Merger, such as financial advisory, legal, accounting and other professional services fees. During the year ended December 31, 2022 , we recognized $ 9.7 million in Transaction-related expenses. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and judgments that affect the amounts reported in these financial statements and the related disclosures. Actual results may differ from those estimates. Estimates are used in determining, among other items, asset lives and residual values, cash flows and fair values for impairments, operating lease right-of-use assets, heavy maintenance costs, income tax accounting, business combinations, intangible assets, warrants, contingent liabilities (including, but not limited to litigation accruals), valuation allowances (including, but not limited to, those related to receivables, expendable parts inventory and deferred taxes), revenue, long-term incentive compensation and employee benefit accruals. Revenue Recognition Airline Operations Our performance obligations under ACMI contracts involve outsourced cargo and passenger aircraft operating services, including the provision of an aircraft, crew, maintenance and insurance. Our performance obligations under CMI contracts also involve outsourced aircraft operating services, generally including the provision of crew, line maintenance and insurance, but not the aircraft. ACMI and CMI contracts generally provide for the transfer of the benefits from these performance obligations on a combined basis through the operation of the aircraft over time. The time interval between when an aircraft departs the terminal until it arrives at the destination terminal is measured in hours and called “Block Hours.” Customers assume fuel, demand and price risk. Generally, customers are also responsible for landing, navigation and most other operational fees and costs and, in the case of CMI customers, the provision of the aircraft and heavy and non-heavy maintenance. When we act as an agent for costs reimbursed by customers, such reimbursed amounts are recorded as Operating Revenue, net of the related costs, when the costs are incurred. When we are responsible for any of these costs, such reimbursed amounts are recorded as Operating Revenue and the costs are recorded as Operating Expenses as incurred. Our performance obligations under Charter contracts involve the provision of cargo and passenger aircraft charter services to customers, including the U.S. Military Air Mobility Command (“AMC”), brokers, freight forwarders, direct shippers, airlines, e-commerce retailers, manufacturers, sports teams and fans, and private charter customers. Our obligations are for one or more flights based on a specific origin and destination. We also provide limited airport-to-airport cargo services to select markets, including several cities in Asia and South America. The customer pays a fixed charter fee or a variable fee generally based on the weight of cargo flown and our obligations involve all direct operating costs for both cargo and passenger charters, which typically include fuel, insurance, landing and navigation fees, and most other operational fees and costs. When we purchase cargo capacity from our customers for Charter flights, we are responsible for selling the capacity we purchase. We record revenue related to such purchased capacity as part of Airline Operations revenue and record the related rent expenses in Navigation fees, landing fees and other rent. Revenue is typically recognized as the services are performed based on Block Hours operated on behalf of a customer during a given month. Revenue for contracts with scheduled rate changes, excluding inflationary adjustments, is recognized over the term of the contract using an estimated average rate per Block Hour, which requires significant judgment to estimate the total number of Block Hours expected. Any revenue adjustments, including those related to minimum contracted Block Hour guarantees and on-time performance targets, are recognized over the applicable measurement period for the adjustment. Payment terms and conditions vary by contract. Since any advance payments are typically made shortly before the services are performed, such payments are not considered significant financing components. We generally expense sales commissions when incurred because the amortization period is less than one year. Dry Leasing Our performance obligations under Dry Lease contracts involve the provision of aircraft and engines to customers for compensation that is typically based on a fixed monthly amount and all are accounted for as operating leases. We record Dry Lease rental income from fixed payments on a straight-line basis over the term of the operating lease. Dry Lease rental income subject to adjustment based on an index is recognized on a straight-line basis over each adjustment period. Our Dry Leases typically do not contain purchase options, renewal options or residual guarantees. In addition, our Dry Leases typically do not contain early termination options. If they do, there are typically substantial termination penalties. Rentals received but unearned under the lease agreements are recorded as deferred revenue and included in Accrued liabilities until earned. To manage our residual value risk, we require lessees to perform maintenance on the Dry Leased assets and they may also be required to make maintenance payments to us during or at the end of the lease term. When an aircraft is returned at the end of lease, if we choose not to re-lease or sell the returned aircraft, we typically have the ability to operate the aircraft in our Airline Operations segment. Customer maintenance reserves are amounts received during the lease term that are subject to reimbursement to the lessee upon the completion of qualifying maintenance work on the specific Dry Leased asset and are included in Accrued liabilities. We defer revenue recognition for customer maintenance reserves until we are able to finalize the amount, if any, to be reimbursed to the lessee, which is typically at the end of the lease. End of lease maintenance payments are amounts received upon return of the Dry Leased asset based on the utilization of the asset during the lease term. Such payments made to us are recognized as revenue at the end of the lease. Other Services Other services primarily include administrative and management support services and flight simulator training. Revenue for these services is recognized when the services are provided . Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and other cash investments that are highly liquid in nature and have original maturities of three months or less at acquisition. Restricted Cash Cash that is restricted under secured aircraft debt agreements, whereby it can only be used to make principal and interest payments on the related debt secured by those aircraft, is classified as Restricted cash. Accounts Receivable We perform a monthly evaluation of our accounts receivable and establish an allowance for expected credit losses based on our best estimate, using a broad range of information including historical information, current conditions and forecasts. Account balances are written off against the allowance when we determine that the receivable will not be recovered (see Note 6). Expendable Parts Expendable parts, materials and supplies for flight equipment are carried at average acquisition costs and are included in Prepaid expenses, held for sale and other current assets. When used in operations, they are charged to maintenance expense. Allowances for excess and obsolescence for expendable parts expected to be on hand at the date aircraft are retired from service are provided over the estimated useful lives of the related airframes and engines. These allowances are based on management estimates, which are subject to change as conditions in the business evolve. The net book value of expendable parts inventory was $ 65.9 million as of December 31, 2022 and $ 57.0 million at December 31, 2021 , net of allowances for obsolescence of $ 47.6 million at December 31, 2022 and $ 42.4 million at December 31, 2021 . Property and Equipment We record property and equipment at cost and depreciate these assets to their estimated residual values on a straight-line basis over their estimated useful lives or average remaining fleet lives. We review these assumptions at least annually and adjust depreciation on a prospective basis. Expenditures for major additions, improvements and flight equipment modifications are generally capitalized and depreciated over the shorter of the estimated life of the improvement, the modified assets’ remaining life or remaining lease term. Most of our flight equipment is specifically pledged as collateral for our indebtedness. The estimated useful lives of our property and equipment are as follows: Range Flight equipment 30 to 40 years Computer software and equipment 3 to 5 years Ground handling equipment and other 3 to 10 years Depreciation expense related to property and equipment was $ 241.8 million in 2022 , $ 216.8 million in 2021 and $ 205.1 million in 2020. The net book value of flight equipment used in Airline Operations was $ 2,808.3 million and $ 2,812.0 million as of December 31, 2022 and December 31, 2021 , respectively. The accumulated depreciation for flight equipment used in Airline Operations was $ 943.3 million and $ 836.1 million as of December 31, 2022 and December 31, 2021, respectively. The net book value of flight equipment used in Dry Leasing was $ 2,045.0 million and $ 1,388.6 million as of December 31, 2022 and December 31, 2021 , respectively. The accumulated depreciation for flight equipment used in Dry Leasing was $ 489.6 million and $ 412.4 million as of December 31, 2022 and December 31, 2021, respectively. Rotable parts are recorded in Property and equipment, net, and are depreciated over their average remaining fleet lives and written off when they are determined to be beyond economic repair. The net book value of rotable parts inventory was $ 351.9 million as of December 31, 2022 and $ 314.8 million as of December 31, 2021. Committed capital expenditures are expected to be $ 486.2 million in 2023. These expenditures include delivery payments for our December 2021 agreement to purchase four new 777-200LRF aircraft from The Boeing Company (“Boeing”) the first of which was delivered in November of 2022 and the remaining three are expected to be delivered throughout 2023. In addition, these amounts include our January 2021 agreement to purchase four 747-8F aircraft from Boeing. The first three of these aircraft were delivered in May, October and November of 2022 and the last aircraft was delivered in January of 2023. Capitalized Interest Any interest on funds used to finance the acquisition of flight equipment up to the date the asset is ready for its intended use is capitalized and included in the cost of the asset. Included in capitalized interest is any interest paid on the purchase deposit borrowings directly associated with the acquisition of flight equipment. The remainder of any capitalized interest recorded on the acquisition of flight equipment is determined by taking the weighted average cost of funds associated with our other debt and applying it against the amounts paid for flight equipment modifications and purchase deposits. Goodwill Goodwill represents the excess of an acquisition’s purchase price over the fair value of the identifiable net assets acquired and liabilities assumed. Goodwill is not amortized, but tested for impairment annually during the fourth quarter of each year, or more frequently if certain events or circumstances indicate that an impairment loss may have been incurred. Our goodwill is not deductible for tax purposes. We may elect to perform a qualitative analysis on the reporting unit that has goodwill to determine whether it is more likely than not that fair value of the reporting unit is less than its carrying value. If the qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we elect not to perform a qualitative analysis, we perform a quantitative analysis to determine whether a goodwill impairment exists. If the fair value of the reporting unit is less than the carrying amount, the difference is written off as an impairment up to the carrying amount of goodwill. Fair value is determined using a discounted cash flow analysis based on key assumptions including, but not limited to, (i) a projection of revenues, expenses and other cash flows; (ii) terminal period earnings; and (iii) an assumed discount rate. The total amount of goodwill was $ 40.4 million, which is included in Intangible assets, net and goodwill in the consolidated balance sheets as of December 31, 2022 and 2021 (see Note 8). During the fourth quarter of 2022, we performed a qualitative analysis and determined that goodwill was not impaired. Impairment of Long-Lived Assets We record impairment charges for long-lived assets when events and circumstances indicate that the assets may be impaired, the undiscounted cash flows estimated to be generated by those assets are less than the associated carrying amount and the net book value of the assets exceeds the associated estimated fair value. For flight equipment, operating lease right-of-use assets and finite-lived intangibles used in our Airline Operations segment, assets are grouped at the operating fleet level for impairment testing. For flight equipment and finite-lived intangibles used in our Dry Leasing segment, assets are assessed at the individual aircraft or engine level for impairment testing. For assets classified as held for sale, an impairment charge is recognized when the estimated fair value less the cost to sell the asset is less than its carrying amount. In developing estimates for flight equipment, operating lease right-of-use assets, cash flows and our incremental borrowing rate, we use external appraisals, adjusted for maintenance condition, as necessary; bids received from independent third parties; industry data; anticipated utilization of the assets; revenue generated; associated costs; length of service and estimated residual values. See Note 7 for a discussion of impairment charges. Variable Interest Entities and Off-Balance Sheet Arrangements Dry Leasing Joint Venture We hold a 10 % interest in a joint venture with an unrelated third party, which we entered into in December 2019, to develop a diversified freighter aircraft dry leasing portfolio. Through Titan, we provide aircraft- and lease-management services to the joint venture for fees based upon aircraft assets under management, among other things. Our investment in the joint venture is accounted for under the equity method of accounting. Under the joint venture agreement, we have a commitment to provide up to $ 40.0 million of capital contributions before December 2023, as amended, of which $ 16.8 million has been contributed as of December 31, 2022. Our maximum exposure to losses from the entity is limited to our investment. The following table summarizes our transactions and balances with our dry leasing joint venture: For the Years Ended December 31, Revenue and Expenses: 2022 2021 Revenue from dry leasing joint venture $ 854 $ 1,210 Aircraft rent to dry leasing joint venture 9,000 9,000 Aggregate Carrying Value of December 31, 2022 December 31, 2021 Aggregate Carrying Value of $ 15,255 $ 8,448 Parts Joint Venture We hold a 50 % interest in a joint venture with an unrelated third party to purchase rotable parts and provide repair services for those parts, primarily for 747-8F aircraft. The joint venture is a variable interest entity and we have not consolidated the joint venture because we are not the primary beneficiary as we do not exercise financial control. Our investment in the joint venture is accounted for under the equity method of accounting and was $ 20.3 million as of December 31, 2022 and $ 19.2 million as of December 31, 2021. Our maximum exposure to losses from the entity is limited to our investment, which is composed primarily of rotable inventory parts. The joint venture does not have any third-party debt obligations. We had Accounts receivable from the joint venture of zero as of December 31, 2022 and $ 0.3 million as of December 31, 2021 . We had Accounts payable to the joint venture of $ 0.7 million as of December 31, 2022 and $ 1.2 million as of December 31, 2021 . Income Taxes Deferred income taxes are recognized for the tax consequences of reporting items in our income tax returns at different times than the items are reflected in our financial statements. These temporary differences result in deferred tax assets and liabilities that are calculated by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. If necessary, deferred income tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount, if any, of the valuation allowance. We have recorded reserves for income taxes that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, we have nevertheless established tax reserves in recognition that various taxing authorities may challenge certain of the positions taken by us, potentially resulting in additional liabilities for taxes. Heavy Maintenance Except as described in the paragraph below, we account for heavy maintenance costs for airframes and engines using the direct expense method. Under this method, heavy maintenance costs are charged to Maintenance, materials and repairs expense upon induction, based on our best estimate of the costs after considering multiple factors, including historical costs, experience and information provided by third-party maintenance providers. These estimates may be subsequently adjusted for changes and the final determination of actual costs incurred. As of December 31, 2022 and 2021 , Accrued heavy maintenance was $ 31.6 million and $ 79.6 million, respectively. We account for heavy maintenance costs for airframes and engines used in our Dry Leasing segment and engines used on our 747-8F and 777-200 aircraft using the deferral method. Under this method, we defer the expense recognition of scheduled heavy maintenance events, which are amortized over the shorter of the estimated period until the next scheduled heavy maintenance event is required or remaining lease term. Amortization of deferred maintenance expense is included in Depreciation and amortization. The following table provides a summary of Deferred maintenance included within Deferred costs and other assets as of December 31: 2022 2021 Beginning balance, net $ 180,675 $ 191,303 Deferred maintenance costs 27,609 38,438 Disposals ( 7,136 ) - Special charge ( 1,628 ) - Amortization of deferred maintenance ( 46,886 ) ( 49,066 ) Ending balance, net $ 152,634 $ 180,675 Long-term Incentive Compensation We have various long-term incentive compensation plans, including stock-based plans for certain employees and outside directors, which are described more fully in Note 16. We recognize compensation expense, net of estimated forfeitures, on a straight-line basis over the vesting period for each award based on the fair value on grant date. We estimate restricted stock unit forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual forfeitures differ from those estimates. As a result, we record stock-based compensation expense only for those awards that are expected to vest. Recent Accounting Pronouncements Adopted in 2022 In August 2020, the Financial Accounting Standards Board amended its accounting guidance for certain financial instruments with characteristics of liabilities and equity, including convertible debt instruments. For convertible debt with a cash conversion feature, the amended guidance removes the accounting model to separately account for the liability and equity components, which resulted in the amortization of a debt discount to interest expense. Under this amended guidance, such convertible debt is accounted for as a single debt instrument with no amortization of a debt discount, unless certain other conditions are met. The amended guidance also requires the use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. Effective January 1, 2022, we adopted the amended guidance using the modified retrospective approach, under which the guidance was applied only to the most current period presented. On January 1, 2022, we recorded an increase of $ 31.0 million to the carrying value of our convertible notes, a reduction of $ 6.9 million to deferred tax liabilities, a reduction of $ 92.6 million to Additional paid-in capital and an increase of $ 68.5 million to Retained earnings for the cumulative effect of adoption. |
Payroll Support Program under t
Payroll Support Program under the CARES Act | 12 Months Ended |
Dec. 31, 2022 | |
Unusual or Infrequent Items, or Both [Abstract] | |
Payroll Support Program under the CARES Act | 4. Payroll Support Program under the CARES Act In May 2020, we entered into a Payroll Support Program Agreement with the U.S. Treasury (the "PSP Agreement") with respect to payroll support funding available to cargo carriers under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). AAWW also entered into a Warrant Agreement (the “Warrant Agreement”) with the U.S. Treasury, and AAWW issued a senior unsecured promissory note to the U.S. Treasury (the “Promissory Note”), with us as guarantor. In connection with the Payroll Support Program, we are required to comply with the relevant provisions of the CARES Act, including the requirement that funds provided pursuant to the PSP Agreement be used exclusively for the payment of certain employee wages, salaries and benefits. Under the PSP Agreement, we must also maintain certain internal controls and records relating to the payroll support funding and we are subject to additional reporting obligations. Pursuant to the PSP Agreement, the U.S. Treasury provided us with payroll support funding totaling $ 406.8 million in 2020. As compensation for payroll support funding under the PSP Agreement, we issued the Promissory Note to the U.S. Treasury, which provides for our unconditional promise to pay to the U.S. Treasury $ 199.8 million. The Promissory Note bears interest on the outstanding principal amount at a rate of 1.00 % per annum until the fifth anniversary of the PSP Closing Date and the applicable Secured Overnight Financing Rate (“SOFR”) plus 2.00 % per annum thereafter, and interest accrued thereon is payable in arrears on the last business day of March and September of each year. The aggregate principal amount outstanding under the Promissory Note, together with all accrued and unpaid interest thereon and all other amounts payable under the Promissory Note, will be due and payable in May 2030. The Promissory Note contains customary representations and warranties, covenants and events of default provisions. Interest expense is recognized using the effective interest method over the term of the Promissory Note. We may, at any time and from time to time, voluntarily prepay amounts outstanding under the Promissory Note, in whole or in part, without penalty or premium. If certain change of control triggering events occur, we would be required to prepay the aggregate outstanding principal amount of the Promissory Note within 30 days, together with any accrued interest or other amounts owing under the Promissory Note. In connection with and as compensation for payroll support funding under the PSP Agreement, we also entered into a Warrant Agreement pursuant to which we granted the U.S. Treasury warrants to acquire up to 625,452 shares of our common stock. The Warrant Agreement provides the U.S. Treasury certain registration rights with respect to each warrant and the underlying common stock. Each warrant is exercisable at an exercise price of $ 31.95 per share of common stock (which was the closing price of our common stock on the Nasdaq Global Select Market on May 1, 2020) and will expire on the fifth anniversary of the issue date of such warrant. Each warrant may be settled through net share settlement or net cash settlement, at our option. Each warrant includes customary antidilution provisions and is freely transferable with registration rights. The U.S. Treasury is not permitted to vote any shares it acquires upon exercise of each warrant. The grant date fair value, as determined using the Black-Scholes model, of each warrant was recognized as Additional paid-in capital and totaled $ 14.4 million. Each warrant will not be remeasured as long as it continues to meet the conditions for equity classification. As of December 31, 2022 , no portion of the warrants have been exercised. We initially recognized deferred grant income within Accrued liabilities for the difference between the payroll support funding received in 2020 under the PSP Agreement and the amounts recorded for the Promissory Note and the Warrant Agreement. Grant income of $ 40.9 million in 2021 and $ 151.6 million in 2020 was recognized within Other (income) expense, net in the consolidated statement of operations on a pro-rata basis over the periods that the qualifying employee wages, salaries and benefits were paid. |
DHL Investment and Polar
DHL Investment and Polar | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
DHL Investment And Polar | 5. DHL Investment and Polar DHL Network Operations (USA), Inc. (“DHL”), a subsidiary of Deutsche Post AG (“DP”), holds a 49 % equity interest and a 25 % voting interest in Polar. Polar is a variable interest entity and we do not consolidate Polar because we are not the primary beneficiary as the risks associated with the direct costs of operation are with DHL. Under a 20-year blocked space agreement, which began in 2008 (the “BSA”), Polar provides air cargo capacity to DHL. Atlas and Polar also have a flight services agreement, whereby Atlas is compensated by Polar on a per Block Hour basis, subject to a monthly minimum Block Hour guarantee, at a predetermined rate with the opportunity for performance premiums that escalate annually. Under the flight services agreement, Atlas provides Polar with crew, maintenance and insurance for the aircraft. Under other separate agreements, we provide aircraft to Polar, and Atlas and Polar supply administrative, sales and ground support services to one another. DP has guaranteed DHL’s (and Polar’s) obligations under the various transaction agreements described above. AAWW has agreed to indemnify DHL for and against various obligations of Polar and its affiliates. Collectively, these agreements are referred to herein as the “DHL Agreements”. The DHL Agreements provide us with a minimum guaranteed revenue stream from aircraft that have been dedicated to Polar for DHL and other customers’ freight over the life of the agreements. DHL provides financial support and also assumes the risks and rewards of the operations of Polar. In accordance with the DHL Agreements, Polar flies for DHL’s transpacific express network and DHL provides financial support and assumes the risks and rewards of the operations of Polar. In addition to transpacific routes, Polar also flies between the Asia Pacific region, the Middle East and Europe on behalf of DHL and other customers. The BSA established DHL’s capacity purchase commitments on Polar flights. Either party may terminate for cause (as defined) at any time. With respect to DHL, “cause” includes Polar’s inability to meet certain departure and arrival criteria for an extended period of time and upon certain change-of-control events, in which case DHL may be entitled to liquidated damages from Polar. Except for any liquidated damages that we could incur as described above, we do not have any continuing financial exposure to fund debt obligations or operating losses of Polar. Combined with Polar, we provide ACMI, CMI, Charter and Dry Leasing services to support DHL’s transpacific express, North American, intra-Asian, and global networks. In addition, we fly between the Asia Pacific region, the Middle East and Europe on behalf of DHL and other customers. Atlas also provides incremental charter capacity to Polar and DHL from time to time. The following table summarizes the aircraft types, services and number of aircraft provided to Polar and DHL as of December 31, 2022: Aircraft Service Total 747-8F ACMI 6 777-200LRF CMI 6 777-200LRF CMI and Dry Leasing 2 777-200LRF Dry Leasing 2 767-300 CMI and Dry Leasing 2 767-300 CMI 2 Total 20 The following table summarizes our transactions and balances with Polar: For the Years Ended December 31, Revenue and Expenses: 2022 2021 2020 Revenue from Polar $ 296,139 $ 320,901 $ 323,907 Ground handling and airport fees to Polar 3,816 4,119 3,302 Accounts receivable/payable as of: December 31, 2022 December 31, 2021 Receivables from Polar $ 10,114 $ 22,311 Payables to Polar 2,101 3,082 Aggregate Carrying Value of Polar December 31, 2022 December 31, 2021 Aggregate Carrying Value of Polar $ 4,870 $ 4,870 In addition to the amounts in the table above, Atlas recognized revenue of $ 105.6 million in 2022 , $ 194.9 million in 2021 , and $ 226.8 million in 2020 from flying on behalf of Polar. |
Supplemental Balance Sheet and
Supplemental Balance Sheet and Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |
Supplemental Balance Sheet and Cash Flow Information | 6. Supplemental Balance Sheet and Cash Flow Information Accounts Receivable Accounts receivable, net of allowances related to customer contracts, excluding Dry Leasing contracts, was $ 198.6 million as of December 31, 2022 and $ 248.4 million as of December 31, 2021. Allowance for expected credit losses, included within Accounts receivable, is as follows: 2022 2021 2020 Beginning balance $ 4,003 $ 1,233 $ 1,822 Provision for (reversal of) expected credit losses ( 595 ) ( 378 ) 463 Amounts written off and other items ( 747 ) 3,148 ( 1,052 ) Ending balance $ 2,661 $ 4,003 $ 1,233 Accrued Liabilities Accrued liabilities consisted of the following as of December 31: 2022 2021 Salaries, wages and benefits $ 195,121 $ 211,801 Customer maintenance reserves 92,132 87,565 Maintenance 79,668 135,133 Deferred revenue 52,735 58,616 Aircraft fuel 34,681 40,855 Other 110,771 108,008 Accrued liabilities $ 565,108 $ 641,978 Revenue Contract Liability Deferred revenue for customer contracts, excluding Dry Leasing contracts, represents amounts collected from, or invoiced to, customers in advance of revenue recognition. The balance of Deferred revenue will increase or decrease based on the timing of invoices and recognition of revenue. Significant changes in our Deferred Revenue liability balances during the year ended December 31, 2022 were as follows: Balance as of December 31, 2021 $ 52,647 Revenue recognized ( 489,489 ) Amounts collected or invoiced 480,081 Balance as of December 31, 2022 $ 43,239 Supplemental Cash Flow Information Cash interest paid to lenders is calculated on the face amount of our various debt instruments based on the contractual interest rates in effect during each payment period. The following table summarizes interest and income taxes paid: 2022 2021 2020 Interest paid $ 60,206 $ 66,623 $ 76,310 Income taxes paid, net of refunds $ 1,928 $ 2,230 $ 1,170 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: December 31, 2022 December 31, 2021 Cash and cash equivalents $ 763,314 $ 910,965 Restricted cash 10,597 10,052 Total Cash, cash equivalents and restricted cash shown in $ 773,911 $ 921,017 |
Special Charge, Assets Held for
Special Charge, Assets Held for Sale and Other Income | 12 Months Ended |
Dec. 31, 2022 | |
Aircraft And Aircraft Engines Held For Sale [Abstract] | |
Special Charge, Assets Held for Sale and Other Income | 7. Special Charge, Assets Held for Sale and Other Income Special Charge During 2022, we recognized a Special Charge of $ 13.5 million related to six nonoperational spare CF6-80 engines held for sale to be traded in for newly overhauled engines and $ 2.7 million related to two other CF6-80 engines Dry Leased to a customer, within Special charge in the consolidated statements of operations. During 2020, we recognized a Special Charge of $ 16.3 million related to fair value adjustments for assets held for sale, within Special charge in the consolidated statements of operations. Assets Held for Sale The carrying value of the remaining assets held for sale was $ 4.4 million and $ 5.5 million as of December 31, 2022 and 2021, respectively, which was included within Prepaid expense, held for sale and other current assets in the consolidated balance sheets. We estimated the fair value of these assets, less costs to sell, based on bids received from independent third parties or recently completed sales. These assets are classified as Level 3 under the fair value hierarchy (see Note 13). During 2022, 2021 and 2020, we received net proceeds of $ 36.6 million, $ 9.5 million and $ 126.3 million, and recognized a net loss of $ 3.1 million, a net gain of $ 0.8 million and a net gain of $ 7.2 million, respectively. The sales are for nonoperational spare CF6-80 engines, certain aircraft in our Dry Leasing Portfolio and 737-400 passenger aircraft previously used for training purposes. Sales of the remaining assets as of December 31, 2022 are expected to be completed by the end of the first quarter of 2023. Other Income During 2021 and 2020, we recognized refunds of $ 4.6 million and $ 39.5 million, respectively, related to aircraft rent paid in previous years within Other (income) expense, net in the consolidated statements of operations. |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net and Goodwill | 8. Intangible Assets, Net and Goodwill The following table presents our Intangible assets, net and goodwill as of December 31: 2022 2021 Lease intangible $ 54,891 $ 54,891 Goodwill 40,361 40,361 Customer relationship 26,280 26,280 Less: accumulated amortization ( 62,766 ) ( 56,736 ) $ 58,766 $ 64,796 Lease intangibles resulted from the acquisition of various aircraft with in-place Dry Leases to customers on a long-term basis and are amortized on a straight-line basis over the life of the leases. Goodwill is primarily attributable to our acquisition of an airline in 2016 and is related to our Airline Operations segment. Customer relationship represents our underlying relationship and agreements with DHL. Amortization expense related to intangible assets was $ 6.0 million in 2022 , $ 6.0 million in 2021 and $ 6.0 million in 2020. The estimated future amortization expense of intangible assets as of December 31, 2022 is as follows: 2023 $ 4,853 2024 1,643 2025 1,643 2026 1,643 2027 1,643 Thereafter 6,980 Total $ 18,405 |
Amazon
Amazon | 12 Months Ended |
Dec. 31, 2022 | |
Warrants and Rights Note Disclosure [Abstract] | |
Amazon | 9. Amazon In May 2016, we entered into certain agreements with Amazon, which involve, among other things, CMI operation of up to 20 Boeing 767-300 freighter aircraft for Amazon by Atlas, as well as Dry Leasing by Titan. The Dry Leases have a term of ten years from the commencement of each agreement, while the CMI operations are for seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years ). As of December 31, 2022, 19 767-300 freighters were in Dry Lease service, of which 17 were operating in CMI service. In conjunction with the agreements entered into in May 2016, we granted Amazon a warrant providing the right to acquire up to 20 % of our outstanding common shares, as of the date of the agreements , after giving effect to the issuance of shares pursuant to the warrants, at an exercise price of $ 37.34 per share, as adjusted (“Warrant A”). All 7.5 million shares, as adjusted, vested in full and were exercised. The agreements entered into in May 2016 also provided incentives for future growth of the relationship as Amazon may increase its business with us. In that regard, we granted Amazon a warrant to acquire up to an additional 10 % of our outstanding common shares, as of the date of the agreements, after giving effect to the issuance of shares pursuant to the warrants, for an exercise price of $ 37.34 per share, as adjusted (“Warrant B”). This warrant to purchase 3.77 million shares, as adjusted, will vest in increments of 37,660 shares, as adjusted, each time Amazon has paid $ 4.2 million of revenue to us, up to a total of $ 420.0 million, for incremental business beyond the original 20 767-300 freighters. As of December 31, 2022 , 1,544,060 shares, as adjusted, of Warrant B have vested, of which 979,160 shares remain unexercised. Warrant B will expire if not exercised in accordance with its terms by May 4, 2023 . In March 2019, we amended the agreements entered into in 2016 with Amazon, pursuant to which we began providing CMI services using Boeing 737-800 freighter aircraft provided by Amazon. The 737-800 CMI operations are for a term of seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years ). As of December 31, 2022, eight 737-800 freighter aircraft were operating in CMI service. In connection with the amended agreements, we granted Amazon a warrant to acquire up to an additional 9.9 % of our outstanding common shares, as of the date of the agreements , after giving effect to the issuance of shares pursuant to the warrant, for an exercise price of $ 52.67 per share, as adjusted (“Warrant C”). Only if Warrant B vests in full, this warrant to purchase 6.66 million shares, as adjusted, would vest in increments of 45,623 shares, as adjusted, each time Amazon has paid $ 6.9 million of revenue to us, up to a total of $ 1.0 billion, for incremental business beyond Warrant A and Warrant B. As of December 31, 2022 , no portion of Warrant C has vested. Warrant C will expire if not exercised in accordance with its terms by March 27, 2026 . Further, in the event that Warrant B does not vest in full on or prior to its May 4, 2023 expiration, then Warrant C will no longer be exercisable by Amazon as of that date. While Amazon would be entitled to vote the shares it owns up to 14.9 % of our outstanding common shares, in its discretion, it would be required to vote any shares it owns in excess of 14.9 % of our outstanding common shares in accordance with the recommendation of our board of directors. Upon the vesting of Warrant A in previous years, the fair value of the warrant was recognized as a customer incentive asset within Deferred costs and other assets, net and is amortized as a reduction of Operating Revenue in proportion to the amount of revenue recognized over the terms of the Dry Leases and CMI agreements. When it becomes probable that an increment of either Warrant B or C will vest and the related revenue begins to be recognized, the grant date fair value of such portion is recognized as a customer incentive asset within Deferred costs and other assets, net and is amortized as a reduction of Operating Revenue in proportion to the amount of related revenue recognized. The grant date fair value of such increment is also recorded as Additional paid-in capital. At the time of vesting, any amounts recorded in Additional paid-in capital related to Dry Lease contracts would be reclassified as a warrant liability within Financial instruments and other liabilities with changes in fair value recorded in Unrealized loss (gain) on financial instruments. There has been no vesting of Warrant B or C related to Dry Leases. We amortized $ 39.8 million, $ 44.2 million and $ 39.1 million of the customer incentive asset as a reduction of Operating Revenue for 2022, 2021 and 2020, respectively. Customer incentive asset included within Deferred costs and other assets is as follows: 2022 2021 Beginning balance $ 96,177 $ 125,276 Initial value for vested portion of warrant 15,063 15,063 Amortization of customer incentive asset ( 39,764 ) ( 44,162 ) Ending balance $ 71,476 $ 96,177 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 10. Debt Our debt obligations, as of December 31: 2022 2021 Range of Maturity Dates Interest Balance Interest Balance Ex-Im Guaranteed Notes 2024 to 2025 1.91 % $ 155,127 1.91 % $ 231,921 Term loans 2023 to 2034 4.27 % 1,303,314 3.80 % 967,481 Private Placement Facility 2025 to 2026 3.60 % 64,842 3.44 % 81,689 Convertible Notes 2024 1.88 % 288,906 2.04 % 513,500 Promissory Note 2030 1.00 % 199,832 1.00 % 199,832 Other debt 2028 to 2029 3.26 % 247,304 2.94 % 177,635 Total principal amount of debt 2,259,325 2,172,058 Less: unamortized debt discount and issuance costs ( 28,415 ) ( 54,174 ) Total debt 2,230,910 2,117,884 Less current portion of debt ( 411,678 ) ( 508,285 ) Long-term debt $ 1,819,232 $ 1,609,599 (1) Interest rates reflect weighted-average rates as of year-end. Many of our financing instruments have cross-default provisions and contain limitations on our ability to, among other things, consummate certain asset sales, merge or consolidate with any other person or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of our assets. Description of our Debt Obligations Ex-Im Guaranteed Notes We have issued various notes guaranteed by the Export-Import Bank of the United States (“Ex-Im Bank”), each secured by a mortgage on a 747-8F or 777-200LRF aircraft (the “Ex-Im Guaranteed Notes”). In connection with the issuance of Ex-Im Guaranteed Notes, we paid usual and customary commitment and other fees associated with this type of financing. In addition, there are customary covenants, events of default and certain operating conditions that we must meet for the Ex-Im Guaranteed Notes. These notes accrue interest at a fixed rate with principal and interest payable quarterly. Term Loans We have entered into various term loans to finance the purchase of aircraft, passenger-to-freighter conversion of aircraft, and for GEnx engine performance upgrade kits and overhauls. Each unsecured term loan requires payment of principal and interest quarterly in arrears, and certain term loans require lump-sum principal payments at maturity. Funds drawn under each term loan are subject to usual and customary fees, and funds drawn typically bear interest at a fixed rate. Each facility is guaranteed by us and subject to customary covenants and events of default. The following table summarizes the terms for each term loan entered into during 2022 (in millions): Issue Face Original Fixed Date Value Term Rate First 2022 Term Loan May 2022 $ 140.0 144 months 4.17 % Second 2022 Term Loan October 2022 140.0 144 months 5.73 % Third 2022 Term Loan November 2022 135.0 144 months 5.21 % Fourth 2022 Term Loan November 2022 147.9 144 months 4.28 % Total $ 562.9 In January 2023, we borrowed $ 156.5 million for the delivery of one 747-8F aircraft under a 144 -month term loan due in January 2035 . The term loan is secured by a mortgage against one 747-8F aircraft and has a fixed interest rate of 3.89 % with principal and interest payable quarterly. The term loan is subject to customary fees, covenants and events of default. Promissory Note See Note 4 for a discussion of the Promissory Note we issued to the U.S. Treasury during 2020. Private Placement Facility In September 2017, we entered into a debt facility for a total of $ 145.8 million through private placement to finance the purchase and passenger-to-freighter conversion of six 767-300 freighter aircraft dry leased to a customer (the “Private Placement Facility”). The Private Placement Facility consists of six separate loans (the “Private Placement Loans”). Each Private Placement Loan is comprised of an equipment note and an equipment term loan, both secured by the cash flows from a 767-300 freighter aircraft dry lease and the underlying aircraft. The equipment notes require payment of principal and interest at a fixed interest rate. The equipment term loans accrue interest, at a fixed rate, which is added to the principal balance outstanding until each equipment note is paid in full. Subsequently, the equipment term loans require payment of principal and interest over the remaining term of the loans. The Private Placement Loans are cross-collateralized, but not cross-defaulted, with each other and, except for certain specified events, are not cross-defaulted with other debt facilities of the Company. The Private Placement Facility is guaranteed by us and subject to customary covenants and events of default. Convertible Notes In June 2015, we issued $ 224.5 million aggregate principal amount of convertible senior notes with 2.25 % coupon (the “2015 Convertible Notes”) in an underwritten public offering. We used the majority of the net proceeds to refinance debt related to 747-400 freighter aircraft with an average coupon of 8.1 %. In connection with the offering of the 2015 Convertible Notes, we purchased convertible note hedges whereby we had the right to receive a certain number of shares of our common stock at a fixed price per share. In addition, we sold warrants to the option counterparties whereby the holders of the warrants have the option to purchase a certain number of shares of our common stock at a fixed price per share. On June 1, 2022, the 2015 Convertible Notes reached maturity and were settled in full. In the aggregate, we paid $ 210.4 million and issued 138,509 shares of common stock to those holders that elected to convert their outstanding notes and we paid $ 6.2 million to holders that did not elect to convert their outstanding notes. In connection with the settlement of the 2015 Convertible Notes, we exercised our rights under the convertible note hedge transactions with the counterparties on June 1, 2022 and received 25,957 shares of our common stock. In connection with the settlement of the 2015 Convertible Notes warrants, as of December 31, 2022, we have issued 194,996 shares related to the cashless exercise of 1,775,621 warrants, of which 1,255,937 warrants remain unexercised. In May 2017, we issued $ 289.0 million aggregate principal amount of convertible senior notes that mature on June 1, 2024 (the “2017 Convertible Notes”) in an underwritten public offering. The 2017 Convertible Notes is a senior unsecured obligation and accrues interest payable semiannually on June 1 and December 1 of each year. The 2017 Convertible Notes are due on its maturity date, unless earlier converted or repurchased pursuant to their respective terms. The following table lists certain key terms for the 2017 Convertible Notes: 2017 Fixed interest rate 1.88 % Earliest conversion date September 1, 2023 Initial conversion price per share $ 61.08 Conversion rate (shares for each $ 1,000 of principal) 16.3713 During 2017, we used the majority of the net proceeds from the 2017 Convertible Notes to repay $ 150.0 million then outstanding under our revolving credit facility and to fund the cost of the convertible note hedges described below. The 2017 Convertible Notes will initially be convertible into shares of our common stock based on the respective conversion rates, which are equal to the respective initial conversion prices per share. The conversion rates will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest, except in certain limited circumstances. Upon the occurrence of a “make-whole fundamental change,” we will, in certain circumstances, increase the conversion rates by a number of additional shares of our common stock for the 2017 Convertible Notes converted in connection with such “make-whole fundamental change”. Additionally, if we undergo a “fundamental change,” holders will have the option to require us to repurchase all or a portion of their 2017 Convertible Notes for cash at a price equal to 100 % of the principal amount of the Convertible Notes being repurchased plus any accrued and unpaid interest through, but excluding, the fundamental change repurchase date. In connection with the offerings of the 2017 Convertible Notes, we entered into convertible note hedge transactions whereby we have the right to receive a certain number of shares of our common stock at a fixed price per share. In addition, we sold warrants to the option counterparties whereby the holders of the warrants have the option to purchase a certain number of shares of our common stock at a fixed price per share. The following table summarizes the convertible note hedges and related warrants as of December 31, 2022: 2017 Convertible Note Hedge: Number of shares (1) 4,731,306 Initial price per share $ 61.08 Cost of hedges $ 70,140 2015 2017 Convertible Note Warrants: Remaining number of shares (1) 1,593,740 4,731,306 Price per share (2) $ 88.86 $ 92.20 (1) Subject to adjustment for certain specified events (2) 2015 Convertible Notes were adjusted for the announcement of the Merger Agreement Taken together, the purchases of the convertible note hedges and the sales of the warrants are intended to offset any economic dilution from the conversion of each of the 2017 Convertible Notes when the stock price is below the exercise price of the respective warrants and to effectively increase the overall conversion prices from $ 61.08 to $ 92.20 per share for the 2017 Convertible Notes. Subsequent to December 31, 2022, the price per share for the warrants related to the 2017 Convertible Notes was adjusted for the announcement of the Merger Agreement from $ 92.20 to $ 75.32 . However, for purposes of the computation of diluted EPS in accordance with GAAP through December 31, 2022, dilution typically occurs when the average share price of our common stock for a given period exceeds the conversion price. See Note 3 for a discussion of the computation of diluted EPS under amended guidance for convertible notes effective on January 1, 2022. The amended guidance requires the use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. The net cost incurred in connection with the convertible note hedges and warrants was recorded as a reduction to additional paid-in capital, net of tax, in the consolidated balance sheets. On or after the earliest conversion date until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or a portion of its 2017 Convertible Notes. Upon conversion, the 2017 Convertible Notes will be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. Our current intent and policy is to settle conversions with a combination of cash and shares of common stock. Generally, holders may only convert their 2017 Convertible Notes at their option at any time prior to the earliest conversion date, under the following circumstances: • during any calendar quarter (and only during such calendar quarter) if, for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter, the last reported sale price of our common stock for such trading day is equal to or greater than 130 % of the conversion price on such trading day; • during the five consecutive business day period immediately following any five consecutive trading day period (the “measurement period”) in which, for each trading day of the measurement period, the trading price per $ 1,000 principal amount of the convertible notes for such trading day was less than 98 % of the product of the last reported sale price of our common stock for such trading day and the conversion rate on such trading day; or • upon the occurrence of specified corporate events. The price of our common stock was greater than or equal to 130 % of the conversion price of the 2017 Convertible Notes for at least 20 trading days during the 30 consecutive trading days ending on the last trading day of the quarters ended March 31, 2022, September 30, 2022 and December 31, 2022. Therefore, our 2017 Convertible Notes continue to be convertible at the holders’ option through March 31, 2023. We received conversion notices on our 2017 Convertible Notes for an immaterial amount during 2022. Through December 31, 2021, we separately accounted for the liability and equity components of convertible notes based on their relative values. Debt issuance costs related to the issuance of convertible notes were also previously allocated to the liability and equity components based on their relative values. With the adoption of the amended accounting guidance for convertible notes on January 1, 2022 (see Note 3 for further discussion), amounts, including debt issuance costs, that were previously classified within equity were reclassified to the liability component, net of any remaining unamortized amounts. Debt issuance costs are amortized to interest expense using the effective interest method over the term of each convertible notes. Debt issuance costs for the 2017 Convertible Notes were $ 7.5 million and debt issuance costs for the 2015 Convertible Notes were $ 6.8 million. The debt issuance costs are amortized to interest expense using the effective interest method over the term of each of the Convertible Notes. The 2015 and 2017 Convertible Notes consisted of the following as of December 31: 2022 2021 2017 Convertible Notes 2015 Convertible Notes 2017 Convertible Notes Remaining life in months 17 5 29 Gross proceeds $ 288,906 $ 224,500 $ 289,000 Less: debt discount, net of amortization — ( 3,861 ) ( 27,605 ) Less: debt issuance cost, net of amortization ( 1,503 ) ( 352 ) ( 2,109 ) Net carrying amount $ 287,403 $ 220,287 $ 259,286 (1) Included in Additional paid-in capital on the consolidated balance sheets. The following table presents the amount of interest expense recognized related to the 2015 and 2017 Convertible Notes: 2022 2021 2020 Contractual interest coupon $ 7,523 $ 10,470 $ 10,470 Amortization of debt discount - 19,132 17,971 Amortization of debt issuance costs 1,467 1,634 1,569 Total interest expense recognized $ 8,990 $ 31,236 $ 30,010 Revolving Credit Facility In December 2021, we amended and extended our previous three-year $ 200.0 million secured revolving credit facility into a new four-year $ 250.0 million secured revolving credit facility (the “Revolver”). The Revolver is for general corporate purposes and is currently secured by mortgages against several 747-400 and 767-300 aircraft , and related engines. Amounts outstanding under the Revolver are subject to borrowing base calculations, collateral coverage and fixed charge ratios. The Revolver accrues interest monthly at SOFR plus a margin of 1.63 % per annum for the first $ 125.0 million and 1.88 % per annum when utilization exceeds $ 125.0 million. The Revolver includes a facility fee of 0.35 % on the undrawn portion. In connection with entry into the Revolver, we paid usual and customary fees. As of December 31, 2022 , there were no amounts outstanding and we had $ 250.0 million of unused availability under the Revolver, based on the collateral borrowing base. Other Debt In April 2022, we refinanced a term loan secured by a 747-8F aircraft and received proceeds of $ 90.0 million from a financing with an 84-month term for this aircraft at a blended fixed rate of 3.86 %, with principal and interest payable quarterly. We used $ 45.7 million of the proceeds to repay a higher-rate term loan in full and recognized a $ 0.7 million loss on early extinguishment of debt. In connection with entry into this financing, we paid usual and customary commitment and other fees. While the financing involved a sale and leaseback of the aircraft, it did not qualify as a sale for accounting purposes. In November 2021, we refinanced a term loan secured by a 747-8F aircraft and received proceeds of $ 90.0 million from a financing with an 84-month term for this aircraft at a blended fixed rate of 2.98 %,with principal and interest payable quarterly. We used $ 50.0 million of the proceeds to repay a higher-rate term loan in full and recognized a $ 3.3 million loss on early extinguishment of debt. In connection with entry into this financing, we paid usual and customary commitment and other fees. While the financing involved a sale and leaseback of the aircraft, it did not qualify as a sale for accounting purposes. In October 2021, we refinanced a term loan secured by a 747-8F aircraft and received proceeds of $ 90.0 million from a financing with an 83-month term for this aircraft at a blended fixed rate of 2.90 %,with principal and interest payable quarterly. We used $ 50.4 million of the proceeds to repay a higher-rate term loan in full and recognized a $ 2.7 million loss on early extinguishment of debt. In connection with entry into this financing, we paid usual and customary commitment and other fees. While the financing involved a sale and leaseback of the aircraft, it did not qualify as a sale for accounting purposes. Future Cash Payments for Debt The following table summarizes the cash required to be paid by year and the carrying value of our debt reflecting the terms that were in effect as of December 31, 2022: 2023 $ 421,255 2024 574,626 2025 174,323 2026 149,903 2027 161,087 Thereafter 778,131 Total debt cash payments 2,259,325 Less: unamortized debt issuance costs ( 28,415 ) Debt $ 2,230,910 |
Leases and Guarantees
Leases and Guarantees | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases and Guarantees | 11. Leases and Guarantees Lessee The following table summarizes rental expenses in: 2022 2021 2020 Aircraft and engines $ 52,268 $ 67,745 $ 96,865 Purchased capacity, office, vehicles and other $ 18,051 $ 23,308 $ 18,708 As of December 31, 2022 , we lease 9 aircraft, of which 6 are operating leases. Lease expirations for our leased aircraft range from April 2023 to June 2032 . In addition, we lease a variety of office space, airport station locations, warehouse space, vehicles and equipment, with lease expirations ranging from January 2023 to March 2036 . We also incur variable rental costs for aircraft, engines, ground equipment and storage space based on usage of the underlying equipment or property. For leases with terms greater than 12 months, including renewal options when appropriate, we record the related right-of-use asset and lease liability as the present value of fixed lease payments over the lease term. Since our leases do not typically provide a readily determinable discount rate, we use our incremental borrowing rate to discount lease payments to present value. The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheets as of December 31: Classification on the Consolidated Balance Sheets 2022 2021 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 107,707 $ 138,744 Finance lease assets Property and equipment, net 69,873 149,459 Less: Accumulated amortization on finance lease assets Property and equipment, net ( 16,239 ) ( 15,295 ) Total lease assets $ 161,341 $ 272,908 Liabilities Current Operating lease liabilities Current portion of long-term operating leases $ 53,825 $ 55,383 Finance lease liabilities Current portion of long-term debt and finance leases 25,368 131,525 Noncurrent Operating lease liabilities Long-term operating leases 111,591 166,022 Finance lease liabilities Long-term debt and finance leases 41,890 45,477 Total lease liabilities $ 232,674 $ 398,407 Weighted Average Remaining Lease Term in years Operating Leases 4.51 5.02 Finance Leases 5.61 3.19 Weighted Average Discount Rate Operating Leases 3.94 % 3.95 % Finance Leases 11.80 % 6.66 % The following table presents information related to lease costs for finance and operating leases: 2022 2021 Fixed operating lease costs (1) $ 39,260 $ 62,616 Variable operating lease costs (1) 30,856 26,731 Finance lease costs: Amortization of leased assets (2) 8,728 9,289 Interest on lease liabilities (3) 6,992 8,052 Total lease cost $ 85,836 $ 106,688 (1) Expenses are classified within Aircraft rent and Navigation fees, landing fees and other rent on the consolidated statement of operations. Short-term lease contracts are not material. (2) Expense is classified within Depreciation and amortization on the consolidated statement of operations. (3) Expense is classified within Interest expense on the consolidated statement of operations. The table below presents supplemental cash flow information related to leases as follows: 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 63,876 $ 126,785 Operating cash flows for finance leases 6,967 7,804 Financing cash flows for finance leases 134,882 152,541 As of December 31, 2022, maturities of lease liabilities for the periods indicated were as follows: Operating Finance Leases Leases Total 2023 $ 59,103 $ 30,763 $ 89,866 2024 56,248 9,253 65,501 2025 18,360 9,252 27,612 2026 11,783 9,236 21,019 2027 10,822 9,216 20,038 Thereafter 23,300 30,252 53,552 Total minimum rental payments 179,616 97,972 277,588 Less: imputed interest 14,200 30,714 44,914 Total lease liabilities $ 165,416 $ 67,258 $ 232,674 Lessor As of December 31, 2022, our contractual amount of minimum receipts, excluding taxes, for the periods indicated under Dry Leases reflecting the terms that were in effect were as follows: 2023 $ 146,935 2024 83,171 2025 81,119 2026 80,588 2027 65,487 Thereafter 68,803 Total minimum lease receipts $ 526,103 Guarantees and Indemnifications In the ordinary course of business, we enter into numerous leasing and financing arrangements for real estate, equipment, aircraft and engines that have various guarantees included in the contracts. These guarantees are primarily in the form of indemnities. In both leasing and financing transactions, we typically indemnify the lessors and any financing parties against tort liabilities that arise out of the use, occupancy, manufacture, design, operation or maintenance of the leased premises or financed aircraft, regardless of whether these liabilities relate to the negligence of the indemnified parties. Currently, we believe that any future payments required under many of these guarantees or indemnities would be immaterial, as most tort liabilities and related indemnities are covered by insurance (subject to deductibles). However, payments under certain tax indemnities related to certain of our financing arrangements, if applicable, could be material, and would not be covered by insurance, although we believe that these payments are not probable. Certain leased premises, such as maintenance and storage facilities, typically include indemnities of such parties for any environmental liability that may arise out of or relate to the use of the leased premises. We also provide standard indemnification agreements to officers and directors in the ordinary course of business. Financings and Guarantees Our financing arrangements typically contain a withholding tax provision that requires us to pay additional amounts to the applicable lender or other financing party, if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. These increased costs and withholding tax provisions continue for the entire term of the applicable transaction and there is no limitation on the maximum additional amount we could be required to pay under such provisions. Any failure to pay amounts due under such provisions generally would trigger an event of default and, in a secured financing transaction, would entitle the lender to foreclose upon the collateral to realize the amount due. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes The significant components of the provision for (benefit from) income taxes are as follows: 2022 2021 2020 Current: Federal $ - $ - $ ( 71 ) State and local 374 1,111 680 Foreign 635 564 2,249 Total current expense 1,009 1,675 2,858 Deferred: Federal 96,662 136,327 116,263 State and local 615 5,317 8,346 Foreign 7,470 10,755 8,989 Total deferred expense 104,747 152,399 133,598 Total income tax expense $ 105,756 $ 154,074 $ 136,456 The domestic and foreign earnings (loss) before income taxes are as follows: 2022 2021 2020 Domestic $ 416,359 $ 611,008 $ 443,087 Foreign 45,277 36,383 53,655 Income before income taxes $ 461,636 $ 647,391 $ 496,742 A reconciliation of the provision (benefit) for income taxes applying the statutory federal income tax rate of 21.0 % for the years ended December 31, 2022, 2021 and 2020, respectively, is as follows: 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State and local taxes based on income, net of federal benefit 1.2 % 1.0 % 0.8 % Change in deferred foreign and state tax rates ( 0.5 %) 0.5 % 0.6 % Customer incentive — — 3.0 % Nondeductible compensation 1.0 % 0.8 % 1.2 % Other nondeductible expenses 0.6 % 0.3 % 0.8 % Tax effect of foreign operations ( 0.8 %) ( 0.5 %) ( 1.2 %) Other 0.4 % 0.7 % 1.3 % Effective income tax expense rate 22.9 % 23.8 % 27.5 % The effective income tax rate for the years ended December 31, 2022 and 2021 differed from the U.S. statutory rate primarily due to state income taxes and certain expenses that are not deductible for tax purposes. The effective income tax rate for the year ended December 31, 2020 differed from the U.S. statutory rate primarily due to nondeductible changes in the fair value of a customer warrant liability (see Note 9 for further discussion). Deferred tax assets and liabilities represent the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. The net noncurrent deferred tax asset (liability) was comprised of the following as of December 31: Assets (Liabilities) 2022 2021 Deferred tax assets: Net operating loss carryforwards and credits $ 466,793 $ 411,071 Accrued compensation 31,231 38,085 Aircraft and other leases 46,346 60,850 Interest expense limitation carryforward 6,491 - Long-term debt 3,916 599 Obsolescence reserve 10,205 9,086 Stock-based compensation 1,845 1,947 Other - 577 Total deferred tax assets 566,827 522,215 Valuation allowance ( 18,239 ) ( 23,185 ) Net deferred tax assets $ 548,588 $ 499,030 2022 2021 Deferred tax liabilities: Fixed assets $ ( 927,774 ) $ ( 767,273 ) Customer incentive ( 2,512 ) ( 5,094 ) Deferred maintenance ( 33,416 ) ( 39,712 ) Goodwill and other intangibles ( 13,209 ) ( 10,626 ) Operating lease right-of-use assets ( 23,565 ) ( 30,459 ) Other ( 252 ) - Total deferred tax liabilities $ ( 1,000,728 ) $ ( 853,164 ) Deferred taxes included within following balance sheet line items: Deferred taxes $ ( 452,495 ) $ ( 354,798 ) Deferred costs and other assets 355 664 Net deferred tax assets (liabilities) $ ( 452,140 ) $ ( 354,134 ) As of December 31, 2022 and 2021 , we had U.S. net operating losses (“NOLs”), net of unrecognized tax benefits and valuation allowances, of approximately $ 1.9 billion and $ 1.6 billion, respectively, approximately half of which will expire through 2037 , if not utilized. Additionally, we had foreign NOLs for Hong Kong, Ireland and Singapore, net of unrecognized tax benefits and valuation allowances, of approximately $ 494.5 million and $ 564.6 million as of December 31, 2022 and 2021, respectively, with no expiration date. Certain of our subsidiaries participate in an aircraft leasing incentive program in Singapore, which entitles us to a reduced income tax rate on our Singapore Dry Leasing income. Our participation is set to expire on July 31, 2023 . We expect to renew our participation through July 31, 2028 . If any of our subsidiaries are unable to remain in the aircraft leasing incentive program or the concessionary rate increases in the future, we could be subject to additional income taxes in Singapore, which could have a material effect on the results of our operations. Section 382 of the Internal Revenue Code (“Section 382”) imposes an annual limitation on the amount of a corporation’s U.S. federal taxable income that can be offset by NOLs if it experiences an “ownership change”, as defined. We experienced an ownership change in the past that limits the use of prior NOLs to offset taxable income. If certain changes in our ownership occur prospectively, there could be an additional limitation on the amount of utilizable NOLs. On each reporting date, management assesses whether we are more likely than not to realize some or all of our deferred tax assets. After our assessment, we maintained a valuation allowance of $ 18.2 million and $ 23.2 million against our deferred tax assets as of December 31, 2022 and 2021 , respectively. The valuation allowance is primarily attributable to a limitation on NOL utilization resulting from an ownership change under Section 382. We expect a portion of our NOLs generated in 2004 and prior years to eventually expire unused. The valuation allowance decreased by $ 5.0 million during the year ended December 31, 2022 primarily as a result of NOLs generated in 2002 that expired unutilized this year. The valuation allowance decreased by $ 0.9 and $ 0.4 million during the years ended December 31, 2021 and 2020, respectively. A reconciliation of the beginning and ending unrecognized income tax benefits is as follows: 2022 2021 2020 Beginning balance $ 29,524 $ 27,440 $ 22,383 Additions for tax positions related to the current year - 1,650 4,971 Additions for tax positions related to prior years 99 566 127 Reductions for tax positions related to prior years ( 637 ) ( 132 ) ( 41 ) Ending balance $ 28,986 $ 29,524 $ 27,440 If recognized, all of the unrecognized income tax benefits would favorably impact the effective income tax rate. We will maintain a liability for unrecognized income tax benefits until these uncertain positions are resolved or until the expiration of the applicable statute of limitations, if earlier. Our policy is to record tax-related interest expense and penalties, if applicable, as a component of income tax expense. For the period ended December 31, 2020, we recorded a $ 0.1 million interest benefit when we released an income tax reserve. There was no cumulative liability for tax-related interest as of December 31, 2022 and 2021. We have not recorded any liability for income tax-related penalties, and the tax authorities historically have not assessed any. For U.S. federal income tax purposes, the 2016 through 2022 income tax years remain subject to examination. There are no U.S. federal income tax examinations in progress. The Company files income tax returns in multiple states and foreign jurisdictions, primarily in Hong Kong, Ireland and Singapore. The Company is currently undergoing income tax examinations in Hong Kong and Singapore. The 2016 through 2022 Hong Kong and Singapore income tax years are subject to examination. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 13. Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Inputs used to measure fair value are classified in the following hierarchy: Level 1 Unadjusted quoted prices in active markets for identical assets or liabilities; Level 2 Other inputs that are observable directly or indirectly, such as quoted prices in active markets for similar assets or liabilities, or inactive quoted prices for identical assets or liabilities in inactive markets; Level 3 Unobservable inputs reflecting assumptions about the inputs used in pricing the asset or liability. We endeavor to utilize the best available information to measure fair value. The carrying value of Cash and cash equivalents, and Restricted cash is based on cost, which approximates fair value. Term loans and notes consist of term loans, the Ex-Im Guaranteed Notes, the Private Placement Facility, the Promissory Note and other debt financings. The fair values of these debt instruments are based on a discounted cash flow analysis using current borrowing rates for instruments with similar terms. The fair value of our Convertible Notes is based on unadjusted quoted market prices for these securities. The following table summarizes the carrying value, estimated fair value and classification of our financial instruments as of: December 31, 2022 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 763,314 $ 763,314 $ 763,314 $ - $ - Restricted cash 10,597 10,597 10,597 - - $ 773,911 $ 773,911 $ 773,911 $ - $ - Liabilities Term loans and notes $ 1,943,507 $ 1,885,317 $ - $ - $ 1,885,317 Convertible notes (1) 287,403 479,584 479,584 - - $ 2,230,910 $ 2,364,901 $ 479,584 $ - $ 1,885,317 December 31, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 910,965 $ 910,965 $ 910,965 $ - $ - Restricted cash 10,052 10,052 10,052 - - $ 921,017 $ 921,017 $ 921,017 $ - $ - Liabilities Term loans and notes $ 1,638,311 $ 1,690,675 $ - $ - $ 1,690,675 Convertible notes (2) 479,573 758,424 758,424 - - $ 2,117,884 $ 2,449,099 $ 758,424 $ - $ 1,690,675 (1) Carrying value is net of debt issuance costs (see Note 10). (2) Carrying value is net of debt discounts and debt issuance costs (see Note 10) . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | 14. Segment Reporting During the first quarter of 2021, we changed our operating and reportable segments, reflecting changes in our business. We currently have the following two operating and reportable segments: Airline Operations and Dry Leasing. Previously, our operating and reportable segments were ACMI, Charter and Dry Leasing. As ACMI and Charter services have become more similar, our chief operating decision maker began assessing operating results and making resource allocation decisions for Airline Operations. All segments are directly or indirectly engaged in the business of air transportation services but have different commercial and economic characteristics. We do not aggregate our operating segments and, therefore, our operating segments are our reportable segments. Each operating segment is separately reviewed by our chief operating decision maker to assess operating results and make resource allocation decisions. We do not aggregate our operating segments and, therefore, our operating segments are our reportable segments. We use an economic performance metric called Direct Contribution, which shows the profitability of each segment. Direct Contribution includes Income (loss) before income taxes and excludes the following: Special charges, Transaction-related expenses, nonrecurring items, Loss (gain) on the disposal of aircraft, Loss on early extinguishment of debt, Unrealized loss (gain) on financial instruments and Unallocated income and expenses, net. Direct operating and ownership costs include crew costs, maintenance, fuel, ground operations, sales costs, aircraft rent, interest expense on the portion of debt used for financing aircraft, interest income on debt securities and aircraft depreciation. Unallocated income and expenses, net include corporate overhead, nonaircraft depreciation, noncash expenses and income, interest expense on the portion of debt used for general corporate purposes, interest income on nondebt securities, capitalized interest, foreign exchange gains and losses, other revenue, other non-operating costs and CARES Act grant income Our Airline Operations segment provides outsourced aircraft operating services to customers, including express delivery providers, e-commerce retailers, the U.S. military, charter brokers, freight forwarders, airlines, manufacturers, sports teams and fans, and private charter customers. We generally provide these services on an ACMI, CMI and Charter basis. Most agreements provide us with guaranteed minimum revenues at predetermined rates, levels of operation and defined periods of time. We also provide certain services on a short-term basis. Our Dry Leasing segment provides for the leasing of cargo and passenger aircraft and engines to customers, and aircraft- and lease-management services. In our Dry Leasing segment, the customer operates, and is responsible for, insuring and maintaining the flight equipment. Other represents revenue for services that are not allocated to any segment, including administrative and management support services and flight simulator training. The following table sets forth Operating Revenue and Direct Contribution for our reportable segments reconciled to Operating Income (loss) and Income (loss) before income taxes: 2022 2021 2020 Operating Revenue: Airline Operations $ 4,395,905 $ 3,888,601 $ 3,066,399 Dry Leasing 170,908 163,365 165,181 Customer incentive asset amortization ( 39,764 ) ( 44,162 ) ( 39,090 ) Other 22,055 23,025 18,626 Total Operating Revenue $ 4,549,104 $ 4,030,829 $ 3,211,116 Direct Contribution: Airline Operations $ 815,647 $ 1,020,887 $ 739,619 Dry Leasing 56,142 42,587 41,070 Total Direct Contribution for Reportable Segments 871,789 1,063,474 780,689 Unallocated income and (expenses), net ( 380,405 ) ( 409,721 ) ( 201,016 ) Loss on early extinguishment of debt ( 689 ) ( 6,042 ) ( 81 ) Unrealized loss on financial instruments - ( 113 ) ( 71,053 ) Special charge ( 16,215 ) - ( 16,265 ) Transaction-related expenses ( 9,746 ) ( 1,001 ) ( 2,780 ) Gain (loss) on disposal of flight equipment ( 3,098 ) 794 7,248 Income before income taxes 461,636 647,391 496,742 Add back (subtract): Interest income ( 8,755 ) ( 723 ) ( 1,076 ) Interest expense 81,692 107,492 114,635 Capitalized interest ( 12,683 ) ( 8,316 ) ( 925 ) Loss on early extinguishment of debt 689 6,042 81 Unrealized loss on financial instruments - 113 71,053 Other (income) expense, net ( 185 ) ( 40,705 ) ( 185,742 ) Operating Income $ 522,394 $ 711,294 $ 494,768 The following table disaggregates our Airline Operations segment revenue by customer and service type: For the Years Ended December 31, 2022 2021 2020 Cargo Passenger Total Cargo Passenger Total Cargo Passenger Total Commercial customers $ 3,786,345 $ 25,636 $ 3,811,981 $ 3,441,881 $ 23,163 $ 3,465,044 $ 2,538,230 $ 17,802 $ 2,556,032 AMC 338,290 245,634 583,924 139,909 283,648 423,557 217,522 292,845 510,367 Airline Operations Revenue $ 4,124,635 $ 271,270 $ 4,395,905 $ 3,581,790 $ 306,811 $ 3,888,601 $ 2,755,752 $ 310,647 $ 3,066,399 Given the nature of our business and international flying, geographic information for revenue, long-lived assets and total assets is not presented because it is impracticable to do so. We are exposed to a concentration of revenue from the AMC, Polar and DHL (see Note 5 for further discussion regarding Polar). No other customer accounted for more than 10.0% of our Total Operating Revenue. Revenue from DHL was $ 532.9 million for 2022 , $ 672.3 million for 2021 and $ 563.6 million for 2020. We have not experienced any credit issues with these customers. 2022 2021 2020 Depreciation and amortization expense: Airline Operations 212,178 188,251 165,769 Dry Leasing 78,625 79,597 78,241 Unallocated 12,417 13,361 13,662 Total Depreciation and Amortization $ 303,220 $ 281,209 $ 257,672 |
Labor and Legal Proceedings
Labor and Legal Proceedings | 12 Months Ended |
Dec. 31, 2022 | |
Labor And Legal Proceedings [Abstract] | |
Labor and Legal Proceedings | 15. Labor and Legal Proceedings Collective Bargaining Agreements Pilots of Atlas and flight dispatchers of Atlas and Polar are represented by the International Brotherhood of Teamsters (the “IBT”). In March 2022, we signed a five-year collective bargaining agreement (“CBA”) with our pilots, effective as of September 2021. This long-term CBA was concluded through a binding interest arbitration process, with the arbitrator issuing a decision on September 10, 2021. The parties reached agreement on certain enhancements to the CBA in February 2022, which were incorporated into the CBA. The new pay rates became effective as of September 1, 2021, and we have continued to work closely together with the union’s new leadership on the final implementation of certain remaining provisions of the CBA. Under this industry competitive agreement, all of our pilots are receiving significantly higher pay, quality of life improvements and enhanced benefits. We also had a CBA with our Atlas and Polar dispatchers, which became amendable in November 2021. Shortly thereafter, the Company and the IBT commenced collective bargaining for a successor CBA pursuant to Section 6 of the Railway Labor Act. The parties reached agreement on a new five-year CBA, which was ratified by the dispatchers in August 2022. The new CBA became effective as of September 1, 2022. We are subject to risks of work interruption or stoppage as permitted by the Railway Labor Act and may incur additional administrative expenses associated with union representation of our employees. Matters Related to Proposed Merger Between October 7, 2022, and November 2, 2022, a total of seven complaints were filed in the United States District Courts for the Southern District of New York and the District of Delaware and the Supreme Court of the State of New York, County of Westchester in connection with the proposed Merger. On October 7, 2022, a complaint, captioned Stein v. Atlas Air Worldwide Holdings, Inc., et al. , Case No. 1:22-cv-08555, was filed in the United States District Court for the Southern District of New York by plaintiff Shiva Stein, a purported Company stockholder; on October 14, 2022, a complaint, captioned Okin v. Atlas Air Worldwide Holdings, Inc., et al. , Case No. 1:22-cv-08778, was filed in the United States District Court for the Southern District of New York by plaintiff Alexander Okin, a purported Company stockholder; on October 24, 2022, a complaint, captioned Halberstam v. Atlas Air Worldwide Holdings, Inc., et al. , Case No. 1:22-cv-09108, was filed in the United States District Court for the Southern District of New York by plaintiff Meyer Halberstam, a purported Company stockholder; on November 1, 2022, a complaint, captioned Garfield v. Dietrich, et al. , Index No. 67742/2022 (the “Garfield Complaint”), was filed in the Supreme Court of the State of New York, County of Westchester, by plaintiff Robert Garfield, a purported Company stockholder; and on November 2, 2022, two complaints, captioned Sabatini v. Atlas Air Worldwide Holdings, Inc., et al., Case No. 7-22-cv-09389 and Halberstam v. Atlas Air Worldwide Holdings, Inc., et al. , Case No. 7:22-cv-09408, were filed in the United States District Court for the Southern District of New York by plaintiffs Eric Sabatini and Benjamin Halberstam, respectively, each a purported Company stockholder, and on November 3, 2022, a complaint, captioned Plumley v. Atlas Air Worldwide Holdings, Inc. , Case No. 1:22-cv-01448 was filed in the United States District Court for the District of Delaware by plaintiff Patrick Plumley, a purported Company stockholder, in each case naming as defendants the Company and members of the board of directors of the Company and, in the case of the Garfield complaint, also naming as defendants the Buyers. The complaints, other than the Garfield complaint, alleged, among other things, that the defendants caused to be filed a materially incomplete and misleading preliminary proxy statement and/or definitive proxy statement on Schedule 14A with the SEC relating to the proposed Merger in violation of Sections 14(a) and 20(a) of the Exchange Act and Rule 14a-9 promulgated thereunder. The Garfield complaint, amongst other things, asserted claims that the defendants engaged in fraudulent and negligent misrepresentation and concealment in violation of New York common law. Among other remedies, the complaints sought an order enjoining the defendants from proceeding with the proposed Merger unless and until the defendants disclosed certain allegedly material information that was allegedly omitted from the preliminary proxy statement and/or definitive proxy statement, rescinding the Merger Agreement or any of the terms thereof to the extent already implemented or granting rescissory damages, awarding the plaintiff the costs and disbursements of the action, including reasonable attorneys’ and expert fees and expenses, and granting such other and further relief as the court may deem just and proper. Between October 18, 2022 and November 10, 2022, the Company also received six demand letters from purported Company stockholders alleging disclosure deficiencies in the preliminary proxy statement and/or definitive proxy statement and demanding that the Company and its board of directors promptly issue corrective disclosures to cure the proxy statement prior to the anticipated stockholder vote on the proposed Merger. The Company believes that the allegations contained in the complaints and demand letters were without merit and that no further disclosure was required to supplement the proxy statement under applicable laws. However, in order to avoid the risk of the complaints and demand letters delaying or adversely affecting the Merger and to minimize the costs, risks and uncertainties inherent in litigation, and without admitting any liability or wrongdoing, on November 17, 2022, we voluntarily provided supplemental disclosures to the definitive proxy statement on a Current Report on Form 8-K with respect to the Merger. On November 29, 2022, the special meeting of the shareholders convened and voted to adopt the Merger Agreement. Each of the seven complaints has been voluntarily dismissed and there is no active shareholder litigation relating to the Merger transaction at this time. Additional lawsuits arising out of the Merger transaction may be filed in the future. Matters Related to Alleged Pricing Practices In the Netherlands, Stichting Cartel Compensation, successor in interest to claims of various shippers, has filed suit in the district court in Amsterdam against British Airways, KLM, Martinair, Air France, Lufthansa and Singapore Airlines seeking recovery for damages purportedly arising from allegedly unlawful pricing practices of such defendants. In response, British Airways, KLM, Martinair, Air France and Lufthansa filed third-party indemnification lawsuits against Polar Air Cargo, LLC (“Old Polar”), a consolidated subsidiary of the Company, and Polar, seeking indemnification in the event the defendants are found to be liable in the main proceedings. Another defendant, Thai Airways, filed a similar indemnification claim. Activities in the case have focused on various procedural issues and rulings, some of which are awaiting court decisions on appeal. The ultimate outcome of the lawsuit is likely to be affected by a decision readopted by the European Commission in March 2017, finding EU competition law violations by British Airways, KLM, Martinair, Air France and Lufthansa, among others, but not Old Polar or Polar. If the Company, Old Polar or Polar were to incur an unfavorable outcome, such outcome may have a material adverse impact on our business, financial condition, results of operations or cash flows. We are unable to reasonably estimate a range of possible loss for this matter at this time. Brazilian Customs Claim Old Polar was cited for two alleged customs violations in Sao Paulo, Brazil, relating to shipments of goods dating back to 1999 and 2000. Each claim asserts that goods listed on the flight manifest of two separate Old Polar scheduled service flights were not properly presented to customs upon arrival and therefore were improperly brought into Brazil. The two claims, which also seek unpaid customs duties, taxes and penalties from the date of the alleged infraction, are approximately $ 1.9 million in aggregate based on December 31, 2022 exchange rates. Old Polar has presented evidence that certain of the alleged missing goods were in fact never onboard the aircraft (due to a change in plans by the relevant shipper) and thus no customs duties should be due. Further, in both cases, we believe that the amounts claimed are substantially overstated due to a calculation error when considering the type and amount of goods allegedly missing, among other things. In the pending claim for one of the cases, we have received an administrative decision dismissing the claim in its entirety, which remains subject to a mandatory appeal by the Brazil customs authorities. In the other case, there was an administrative decision in favor of the Brazil customs authorities and we are in the process of appealing this decision to the Brazil courts. As required to defend such claims, we have made deposits pending resolution of these matters. The balance was $ 3.7 million as of December 31, 2022 and $ 3.2 million as of December 31, 2021, and is included in Deferred costs and other assets. We are currently defending these and other Brazilian customs claims and the ultimate disposition of these claims, either individually or in the aggregate, is not expected to materially affect our financial condition, results of operations or cash flows. Other On October 22, 2022 a lawsuit, captioned Estate of Lane Caviness, Akerlund, et al., v. Atlas Air, Inc., et al., was filed in the United States District Court for the Southern District of Florida, Case No. 1:22-cv-23519-KMM (the “Akerlund Complaint”), by over 100 plaintiffs related to the defendants’ vaccination and other COVID-19 policies. The majority of plaintiffs are Atlas pilots. In addition to Atlas Air, Inc., the plaintiffs named Flight Services International, LLC and EncompassAir, LLC as defendants and Company executives John Dietrich, Patricia Goodwin-Peters and Jeff Carlson as individual defendants. The Akerlund Complaint includes eight causes of actions asserted by certain groups of plaintiffs against some or all of the defendants and alleges violations of federal employment laws, the U.S. Constitution, state tort law and a claim for breach of the CBA with Atlas pilots. Among other remedies, the Akerlund Complaint seeks compensatory damages totaling at least $ 159,000,000 and punitive damages of at least $ 30,000,000 per plaintiff, plus injunctive relief. The Company and the other defendants collectively submitted a motion to dismiss the Akerlund Complaint on February 6, 2023. The Company believes that the allegations contained in the complaints and demand letters are without merit. We do not at this time consider there to be any reasonably possible material loss arising from the complaint. However, litigation is inherently uncertain and there can be no assurance regarding the likelihood that the Company’s defense of the actions will be successful. In addition to the matters described in this note, we have certain other litigation contingencies incident to the ordinary course of business. Unless disclosed otherwise, management does not expect that the ultimate disposition of such other contingencies or matters will materially affect our financial condition, results of operations or cash flows. |
Long-term Incentive Compensatio
Long-term Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Long-term Incentive Compensation Plans | 16. Long-term Incentive Compensation Plans In May 2019, our stockholders approved an amendment to our 2018 Incentive Plan (the “2018 Amended Plan”). An aggregate of 1.4 million shares of common stock were reserved for issuance to participants under the 2018 Amended Plan. The 2018 Amended Plan provides for the grant of long-term incentive awards to employees in various forms, including equity-based awards, time-vested cash awards and performance cash awards. Examples of stock-based awards that may be granted under the 2018 Amended Plan include nonqualified options, incentive stock options, share appreciation rights, restricted shares, restricted share units, performance shares and performance units, dividend equivalents and other share-based awards. No new awards have been made under predecessor plans since the adoption of the 2018 Amended Plan. In June 2020, our stockholders approved an additional amendment to the 2018 Amended Plan, which provided that an aggregate of 2.4 million shares of common stock were reserved for issuance to participants under the 2018 Amended Plan. The 2018 Amended Plan is administered by the compensation committee of our board of directors and as the administrator, the compensation committee, among other things, establishes the terms and conditions of awards granted under the 2018 Amended Plan. Awards outstanding under the 2018 Amended Plan will continue to be governed by the terms of such plan and agreements under which they were granted. The term of awards granted under the 2018 Amended Plan is limited to ten years , and no awards may be granted under the 2018 Amended Plan more than ten years after the effective date of such plan. As of December 31, 2022 , the 2018 Amended Plan had a total of 1.0 million shares of common stock available for future award grants to management and members of the board of directors. Our compensation expense for all plans was $ 13.5 million in 2022 , $ 13.8 million in 2021 and $ 21.4 million in 2020. Income tax expense for share-based compensation was $ 3.3 million in 2022 , $ 0.8 million in 2021 and $ 7.4 million in 2020. Restricted Share Units and Time-based Cash Awards Restricted stock units, which have been granted in units, and time-based cash awards generally vest and are expensed over one- or three- year periods. As of December 31, 2022 , a total of 4.8 million restricted stock units have been granted under the 2018 Amended Plan and predecessor plans. All shares were valued at their fair market value, which is the closing price of the Company's stock on the date of grant. Unrecognized stock compensation cost as of December 31, 2022 is $ 13.7 million and will be recognized over the remaining weighted average life of 1.9 years. In 2022, 2021 and 2020, we granted time-based cash awards to employees and recognized compensation expense totaling $ 4.4 million in 2022, $ 5.8 million in 2021 and $ 3.9 million in 2020. For the time-based cash awards, we had accruals of $ 3.3 million as of December 31, 2022 and $ 4.9 million as of December 31, 2021 in Accrued liabilities. A summary of our restricted stock units as of December 31, 2022 and changes during the year then ended are presented below: Weighted-Average Restricted Share Unit Awards Number of Grant-Date Unvested as of December 31, 2021 363,249 $ 43.79 Granted 223,075 72.65 Vested ( 188,227 ) 44.07 Forfeited ( 7,365 ) 48.18 Unvested as of December 31, 2022 390,732 $ 60.00 The total fair value of shares vested on various vesting dates was $ 8.3 million in 2022 , $ 10.3 million in 2021 and $ 15.7 million in 2020. Weighted average grant date fair value per share was $ 72.65 in 2022, $ 61.89 in 2021 and $ 27.74 in 2020. Performance Share Units and Performance-based Cash Awards Performance share unit awards and performance-based cash awards are expensed over three years, which generally is the requisite performance period. Awards generally vest if (1) we achieve certain specified performance levels as compared to predetermined performance thresholds during a three-year period starting on January 1 of the grant year and ending on December 31 three years later, and (2) except in the event of death, disability, or an involuntary termination without cause, the employee remains employed by us through the determination date, which can be no later than four months following the end of the Performance Period. Payment with respect to a performance share unit award or performance-based cash award may be prorated in connection with certain employee terminations. Performance share unit and performance-based cash awards include a relative total shareholder return (“TSR”) modifier which may impact the number of shares or cash earned at the end of the performance period. For these awards, the number of shares or cash earned based on the achievement of the predefined performance criteria will be reduced or increased if the Company's TSR over the performance period relative to a predefined comparator group of companies falls within defined ranges. The fair value of performance share units that include the TSR modifier is determined using a Monte Carlo valuation model on the date of grant, which requires inputs such as our common stock price, estimated common stock price volatility, and risk-free interest rate, among others. The estimated compensation expense recognized for performance share unit and performance-based cash awards is net of estimated forfeitures. We assess the performance levels quarterly and record any change to compensation cost. We assess the TSR component for performance-based cash awards each quarter and record any change to compensation cost. As of December 31, 2022 , a total of 2.5 million performance share units have been granted. Unrecognized compensation cost as of December 31, 2022 is $ 4.2 million and will be recognized over the remaining weighted average life of 2.1 years. For the performance-based cash awards, we had accruals of $ 36.7 million as of December 31, 2022 and $ 39.7 million as of December 31, 2021 . We recognized compensation expense associated with the performance-based cash awards totaling $19 .5 million in 2022 , $ 21.5 million in 2021 and $ 18.9 million in 2020. A summary of our performance share units as of December 31, 2022 and changes during the year then ended are presented below: Weighted-Average Performance Share Unit Awards Number of Grant-Date Unvested as of December 31, 2021 229,538 $ 53.31 Granted 72,091 78.46 Adjustments 135,405 - Vested ( 234,895 ) 47.95 Forfeited ( 769 ) 56.92 Unvested as of December 31, 2022 201,370 $ 64.93 The total fair value of shares vested on various vesting dates was $ 11.3 million in 2022 , $ 9.0 million in 2021 and $ 7.8 million in 2020. Weighted average grant date fair value per share was $ 78.46 in 2022, zero in 2021 and $ 53.85 in 2020. |
Profit Sharing, Incentive and R
Profit Sharing, Incentive and Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Profit Sharing, Incentive and Retirement Plans | 17. Profit Sharing, Incentive and Retirement Plans Profit Sharing and Incentive Plans We have an annual incentive compensation program for management employees. The program provides for payments to eligible employees based upon our financial performance, service performance and attainment of individual performance goals, among other things. In addition, our profit sharing plan allows IBT-represented Atlas pilots to receive payments from the plan based upon Atlas’ financial performance. The profit sharing plan is subject to a minimum financial performance threshold. For both plans, we had accruals of $ 65.2 million as of December 31, 2022 and $ 87.0 million as of December 31, 2021 . We recognized compensation expense associated with both plans totaling $ 66.6 million in 2022 , $ 85.2 million in 2021 and $ 54.9 million in 2020. 401(k) and 401(m) Plans Participants in our retirement plan may contribute a portion of their annual compensation to a 401(k) plan on a pretax basis, subject to aggregate limits under the Code. In addition to 401(k) contributions, participants may contribute a portion of their eligible compensation to a 401(m) plan on an after-tax basis. On behalf of participants in the plan who make elective compensation deferrals, we provide a matching contribution subject to certain limitations. Employee contributions in the plan are vested at all times and our matching contributions are subject to a three-year cliff vesting provision, except for employees who are represented by a collective bargaining agreement and are subject to a three-year graded vesting provision. We recognized compensation expense associated with the plan matching contributions totaling $ 64.6 million in 2022 , $ 23.5 million in 2021 and $ 18.9 million in 2020. |
Stock Repurchases
Stock Repurchases | 12 Months Ended |
Dec. 31, 2022 | |
Treasury Stock [Abstract] | |
Stock Repurchases | 18. Stock Repurchases We record the repurchase of our shares of common stock at cost based on the settlement date of the transaction. These shares are classified as treasury stock, which is a reduction to stockholders’ equity. Treasury shares are included in authorized and issued shares but excluded from outstanding shares. In February 2022, our board of directors approved the establishment of a new stock repurchase program authorizing the repurchase of up to a total of $ 200.0 million of our common stock. Purchases could have been made at management's discretion in the form of accelerated share repurchase programs, open market repurchase programs, privately negotiated transactions or a combination of these methods. In connection with the proposed Merger (see Note 2 for further discussion), we have suspended the stock repurchase program. In February 2022, we paid $ 100.0 million and received an initial delivery of 1,061,257 shares pursuant to an accelerated share repurchase program agreement with a financial institution for the repurchase of our common stock (the “ASR”). We accounted for this ASR as a repurchase of common stock and as a forward contract indexed to our own common stock. We determined that the forward contract met all of the applicable criteria for equity classification and, therefore, this ASR was not accounted for as a derivative instrument. In April 2022, the ASR was settled and we received an additional 172,887 shares of common stock. In the aggregate, we repurchased 1,234,144 shares for $ 100.0 million at an average cost of $ 81.03 per share under this ASR. The total number of shares of common stock repurchased by us was based on the volume-weighted average price of the common stock during the term of the ASR Agreement, less a pre-determined discount. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 19. Earnings Per Share Basic earnings per share (“EPS”) represents income (loss) divided by the weighted average number of common shares outstanding during the measurement period. Diluted EPS represents income (loss) divided by the weighted average number of common shares outstanding during the measurement period while also giving effect to all potentially dilutive common shares that were outstanding during the period using the treasury stock method. The calculations of basic and diluted EPS were as follows: For the Years Ended December 31, Numerator: 2022 2021 2020 Net Income $ 355,880 $ 493,317 $ 360,286 Plus: Interest expense on convertible notes, net of tax 4,177 - - Unrealized loss on financial instruments, net of tax - 112 - Diluted net income $ 360,057 $ 493,429 $ 360,286 Denominator: Basic EPS weighted average shares outstanding 28,463 28,910 26,408 Effect of dilutive: Convertible notes 4,806 782 - Warrants 734 621 133 Restricted stock 187 230 149 Diluted EPS weighted average shares outstanding 34,190 30,543 26,690 Earnings per share: Basic $ 12.50 $ 17.06 $ 13.64 Diluted $ 10.53 $ 16.16 $ 13.50 Antidilutive shares related to warrants issued in connection with our Convertible Notes or to customers that were out of the money and excluded were zero in 2022 , zero in 2021 and $ 12.1 million in 2020. Diluted shares reflect the potential dilution that could occur from warrants and restricted shares using the treasury stock method. The calculation of EPS does not include restricted share units and warrants issued to a customer in which performance or market conditions were not satisfied of 9.1 million in 2022 , 9.7 million in 2021 and 10.3 million in 2020. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 20. Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of Accumulated other comprehensive income (loss): Foreign Interest Rate Currency Derivatives Translation Total Balance as of December 31, 2020 $ ( 1,913 ) $ 9 $ ( 1,904 ) Reclassification to interest expense 920 - 920 Reclassification to loss on early extinguishment of debt 890 - 890 Tax effect ( 417 ) - ( 417 ) Balance as of December 31, 2021 $ ( 520 ) $ 9 $ ( 511 ) Balance as of December 31, 2021 $ ( 520 ) $ 9 $ ( 511 ) Reclassification to interest expense 91 - 91 Reclassification to loss on early extinguishment of debt 639 - 639 Tax effect ( 175 ) - ( 175 ) Balance as of December 31, 2022 $ 35 $ 9 $ 44 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and judgments that affect the amounts reported in these financial statements and the related disclosures. Actual results may differ from those estimates. Estimates are used in determining, among other items, asset lives and residual values, cash flows and fair values for impairments, operating lease right-of-use assets, heavy maintenance costs, income tax accounting, business combinations, intangible assets, warrants, contingent liabilities (including, but not limited to litigation accruals), valuation allowances (including, but not limited to, those related to receivables, expendable parts inventory and deferred taxes), revenue, long-term incentive compensation and employee benefit accruals. |
Revenue Recognition | Revenue Recognition Airline Operations Our performance obligations under ACMI contracts involve outsourced cargo and passenger aircraft operating services, including the provision of an aircraft, crew, maintenance and insurance. Our performance obligations under CMI contracts also involve outsourced aircraft operating services, generally including the provision of crew, line maintenance and insurance, but not the aircraft. ACMI and CMI contracts generally provide for the transfer of the benefits from these performance obligations on a combined basis through the operation of the aircraft over time. The time interval between when an aircraft departs the terminal until it arrives at the destination terminal is measured in hours and called “Block Hours.” Customers assume fuel, demand and price risk. Generally, customers are also responsible for landing, navigation and most other operational fees and costs and, in the case of CMI customers, the provision of the aircraft and heavy and non-heavy maintenance. When we act as an agent for costs reimbursed by customers, such reimbursed amounts are recorded as Operating Revenue, net of the related costs, when the costs are incurred. When we are responsible for any of these costs, such reimbursed amounts are recorded as Operating Revenue and the costs are recorded as Operating Expenses as incurred. Our performance obligations under Charter contracts involve the provision of cargo and passenger aircraft charter services to customers, including the U.S. Military Air Mobility Command (“AMC”), brokers, freight forwarders, direct shippers, airlines, e-commerce retailers, manufacturers, sports teams and fans, and private charter customers. Our obligations are for one or more flights based on a specific origin and destination. We also provide limited airport-to-airport cargo services to select markets, including several cities in Asia and South America. The customer pays a fixed charter fee or a variable fee generally based on the weight of cargo flown and our obligations involve all direct operating costs for both cargo and passenger charters, which typically include fuel, insurance, landing and navigation fees, and most other operational fees and costs. When we purchase cargo capacity from our customers for Charter flights, we are responsible for selling the capacity we purchase. We record revenue related to such purchased capacity as part of Airline Operations revenue and record the related rent expenses in Navigation fees, landing fees and other rent. Revenue is typically recognized as the services are performed based on Block Hours operated on behalf of a customer during a given month. Revenue for contracts with scheduled rate changes, excluding inflationary adjustments, is recognized over the term of the contract using an estimated average rate per Block Hour, which requires significant judgment to estimate the total number of Block Hours expected. Any revenue adjustments, including those related to minimum contracted Block Hour guarantees and on-time performance targets, are recognized over the applicable measurement period for the adjustment. Payment terms and conditions vary by contract. Since any advance payments are typically made shortly before the services are performed, such payments are not considered significant financing components. We generally expense sales commissions when incurred because the amortization period is less than one year. Dry Leasing Our performance obligations under Dry Lease contracts involve the provision of aircraft and engines to customers for compensation that is typically based on a fixed monthly amount and all are accounted for as operating leases. We record Dry Lease rental income from fixed payments on a straight-line basis over the term of the operating lease. Dry Lease rental income subject to adjustment based on an index is recognized on a straight-line basis over each adjustment period. Our Dry Leases typically do not contain purchase options, renewal options or residual guarantees. In addition, our Dry Leases typically do not contain early termination options. If they do, there are typically substantial termination penalties. Rentals received but unearned under the lease agreements are recorded as deferred revenue and included in Accrued liabilities until earned. To manage our residual value risk, we require lessees to perform maintenance on the Dry Leased assets and they may also be required to make maintenance payments to us during or at the end of the lease term. When an aircraft is returned at the end of lease, if we choose not to re-lease or sell the returned aircraft, we typically have the ability to operate the aircraft in our Airline Operations segment. Customer maintenance reserves are amounts received during the lease term that are subject to reimbursement to the lessee upon the completion of qualifying maintenance work on the specific Dry Leased asset and are included in Accrued liabilities. We defer revenue recognition for customer maintenance reserves until we are able to finalize the amount, if any, to be reimbursed to the lessee, which is typically at the end of the lease. End of lease maintenance payments are amounts received upon return of the Dry Leased asset based on the utilization of the asset during the lease term. Such payments made to us are recognized as revenue at the end of the lease. Other Services Other services primarily include administrative and management support services and flight simulator training. Revenue for these services is recognized when the services are provided |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and other cash investments that are highly liquid in nature and have original maturities of three months or less at acquisition. |
Restricted Cash | Restricted Cash Cash that is restricted under secured aircraft debt agreements, whereby it can only be used to make principal and interest payments on the related debt secured by those aircraft, is classified as Restricted cash. |
Accounts Receivable | Accounts Receivable We perform a monthly evaluation of our accounts receivable and establish an allowance for expected credit losses based on our best estimate, using a broad range of information including historical information, current conditions and forecasts. Account balances are written off against the allowance when we determine that the receivable will not be recovered (see Note 6). |
Expendable Parts | Expendable Parts Expendable parts, materials and supplies for flight equipment are carried at average acquisition costs and are included in Prepaid expenses, held for sale and other current assets. When used in operations, they are charged to maintenance expense. Allowances for excess and obsolescence for expendable parts expected to be on hand at the date aircraft are retired from service are provided over the estimated useful lives of the related airframes and engines. These allowances are based on management estimates, which are subject to change as conditions in the business evolve. The net book value of expendable parts inventory was $ 65.9 million as of December 31, 2022 and $ 57.0 million at December 31, 2021 , net of allowances for obsolescence of $ 47.6 million at December 31, 2022 and $ 42.4 million at December 31, 2021 . |
Property and Equipment | Property and Equipment We record property and equipment at cost and depreciate these assets to their estimated residual values on a straight-line basis over their estimated useful lives or average remaining fleet lives. We review these assumptions at least annually and adjust depreciation on a prospective basis. Expenditures for major additions, improvements and flight equipment modifications are generally capitalized and depreciated over the shorter of the estimated life of the improvement, the modified assets’ remaining life or remaining lease term. Most of our flight equipment is specifically pledged as collateral for our indebtedness. The estimated useful lives of our property and equipment are as follows: Range Flight equipment 30 to 40 years Computer software and equipment 3 to 5 years Ground handling equipment and other 3 to 10 years Depreciation expense related to property and equipment was $ 241.8 million in 2022 , $ 216.8 million in 2021 and $ 205.1 million in 2020. The net book value of flight equipment used in Airline Operations was $ 2,808.3 million and $ 2,812.0 million as of December 31, 2022 and December 31, 2021 , respectively. The accumulated depreciation for flight equipment used in Airline Operations was $ 943.3 million and $ 836.1 million as of December 31, 2022 and December 31, 2021, respectively. The net book value of flight equipment used in Dry Leasing was $ 2,045.0 million and $ 1,388.6 million as of December 31, 2022 and December 31, 2021 , respectively. The accumulated depreciation for flight equipment used in Dry Leasing was $ 489.6 million and $ 412.4 million as of December 31, 2022 and December 31, 2021, respectively. Rotable parts are recorded in Property and equipment, net, and are depreciated over their average remaining fleet lives and written off when they are determined to be beyond economic repair. The net book value of rotable parts inventory was $ 351.9 million as of December 31, 2022 and $ 314.8 million as of December 31, 2021. Committed capital expenditures are expected to be $ 486.2 million in 2023. These expenditures include delivery payments for our December 2021 agreement to purchase four new 777-200LRF aircraft from The Boeing Company (“Boeing”) the first of which was delivered in November of 2022 and the remaining three are expected to be delivered throughout 2023. In addition, these amounts include our January 2021 agreement to purchase four 747-8F aircraft from Boeing. The first three of these aircraft were delivered in May, October and November of 2022 and the last aircraft was delivered in January of 2023. |
Capitalized Interest | Capitalized Interest Any interest on funds used to finance the acquisition of flight equipment up to the date the asset is ready for its intended use is capitalized and included in the cost of the asset. Included in capitalized interest is any interest paid on the purchase deposit borrowings directly associated with the acquisition of flight equipment. The remainder of any capitalized interest recorded on the acquisition of flight equipment is determined by taking the weighted average cost of funds associated with our other debt and applying it against the amounts paid for flight equipment modifications and purchase deposits. |
Goodwill | Goodwill Goodwill represents the excess of an acquisition’s purchase price over the fair value of the identifiable net assets acquired and liabilities assumed. Goodwill is not amortized, but tested for impairment annually during the fourth quarter of each year, or more frequently if certain events or circumstances indicate that an impairment loss may have been incurred. Our goodwill is not deductible for tax purposes. We may elect to perform a qualitative analysis on the reporting unit that has goodwill to determine whether it is more likely than not that fair value of the reporting unit is less than its carrying value. If the qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we elect not to perform a qualitative analysis, we perform a quantitative analysis to determine whether a goodwill impairment exists. If the fair value of the reporting unit is less than the carrying amount, the difference is written off as an impairment up to the carrying amount of goodwill. Fair value is determined using a discounted cash flow analysis based on key assumptions including, but not limited to, (i) a projection of revenues, expenses and other cash flows; (ii) terminal period earnings; and (iii) an assumed discount rate. The total amount of goodwill was $ 40.4 million, which is included in Intangible assets, net and goodwill in the consolidated balance sheets as of December 31, 2022 and 2021 (see Note 8). During the fourth quarter of 2022, we performed a qualitative analysis and determined that goodwill was not impaired. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We record impairment charges for long-lived assets when events and circumstances indicate that the assets may be impaired, the undiscounted cash flows estimated to be generated by those assets are less than the associated carrying amount and the net book value of the assets exceeds the associated estimated fair value. For flight equipment, operating lease right-of-use assets and finite-lived intangibles used in our Airline Operations segment, assets are grouped at the operating fleet level for impairment testing. For flight equipment and finite-lived intangibles used in our Dry Leasing segment, assets are assessed at the individual aircraft or engine level for impairment testing. For assets classified as held for sale, an impairment charge is recognized when the estimated fair value less the cost to sell the asset is less than its carrying amount. In developing estimates for flight equipment, operating lease right-of-use assets, cash flows and our incremental borrowing rate, we use external appraisals, adjusted for maintenance condition, as necessary; bids received from independent third parties; industry data; anticipated utilization of the assets; revenue generated; associated costs; length of service and estimated residual values. See Note 7 for a discussion of impairment charges. |
Variable Interest Entities and Off-Balance-Sheet Arrangements | Variable Interest Entities and Off-Balance Sheet Arrangements Dry Leasing Joint Venture We hold a 10 % interest in a joint venture with an unrelated third party, which we entered into in December 2019, to develop a diversified freighter aircraft dry leasing portfolio. Through Titan, we provide aircraft- and lease-management services to the joint venture for fees based upon aircraft assets under management, among other things. Our investment in the joint venture is accounted for under the equity method of accounting. Under the joint venture agreement, we have a commitment to provide up to $ 40.0 million of capital contributions before December 2023, as amended, of which $ 16.8 million has been contributed as of December 31, 2022. Our maximum exposure to losses from the entity is limited to our investment. The following table summarizes our transactions and balances with our dry leasing joint venture: For the Years Ended December 31, Revenue and Expenses: 2022 2021 Revenue from dry leasing joint venture $ 854 $ 1,210 Aircraft rent to dry leasing joint venture 9,000 9,000 Aggregate Carrying Value of December 31, 2022 December 31, 2021 Aggregate Carrying Value of $ 15,255 $ 8,448 Parts Joint Venture We hold a 50 % interest in a joint venture with an unrelated third party to purchase rotable parts and provide repair services for those parts, primarily for 747-8F aircraft. The joint venture is a variable interest entity and we have not consolidated the joint venture because we are not the primary beneficiary as we do not exercise financial control. Our investment in the joint venture is accounted for under the equity method of accounting and was $ 20.3 million as of December 31, 2022 and $ 19.2 million as of December 31, 2021. Our maximum exposure to losses from the entity is limited to our investment, which is composed primarily of rotable inventory parts. The joint venture does not have any third-party debt obligations. We had Accounts receivable from the joint venture of zero as of December 31, 2022 and $ 0.3 million as of December 31, 2021 . We had Accounts payable to the joint venture of $ 0.7 million as of December 31, 2022 and $ 1.2 million as of December 31, 2021 . |
Income Taxes | Income Taxes Deferred income taxes are recognized for the tax consequences of reporting items in our income tax returns at different times than the items are reflected in our financial statements. These temporary differences result in deferred tax assets and liabilities that are calculated by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. If necessary, deferred income tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount, if any, of the valuation allowance. We have recorded reserves for income taxes that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, we have nevertheless established tax reserves in recognition that various taxing authorities may challenge certain of the positions taken by us, potentially resulting in additional liabilities for taxes. |
Heavy Maintenance | Heavy Maintenance Except as described in the paragraph below, we account for heavy maintenance costs for airframes and engines using the direct expense method. Under this method, heavy maintenance costs are charged to Maintenance, materials and repairs expense upon induction, based on our best estimate of the costs after considering multiple factors, including historical costs, experience and information provided by third-party maintenance providers. These estimates may be subsequently adjusted for changes and the final determination of actual costs incurred. As of December 31, 2022 and 2021 , Accrued heavy maintenance was $ 31.6 million and $ 79.6 million, respectively. We account for heavy maintenance costs for airframes and engines used in our Dry Leasing segment and engines used on our 747-8F and 777-200 aircraft using the deferral method. Under this method, we defer the expense recognition of scheduled heavy maintenance events, which are amortized over the shorter of the estimated period until the next scheduled heavy maintenance event is required or remaining lease term. Amortization of deferred maintenance expense is included in Depreciation and amortization. The following table provides a summary of Deferred maintenance included within Deferred costs and other assets as of December 31: 2022 2021 Beginning balance, net $ 180,675 $ 191,303 Deferred maintenance costs 27,609 38,438 Disposals ( 7,136 ) - Special charge ( 1,628 ) - Amortization of deferred maintenance ( 46,886 ) ( 49,066 ) Ending balance, net $ 152,634 $ 180,675 |
Long-term Incentive Compensation | Long-term Incentive Compensation We have various long-term incentive compensation plans, including stock-based plans for certain employees and outside directors, which are described more fully in Note 16. We recognize compensation expense, net of estimated forfeitures, on a straight-line basis over the vesting period for each award based on the fair value on grant date. We estimate restricted stock unit forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual forfeitures differ from those estimates. As a result, we record stock-based compensation expense only for those awards that are expected to vest. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2022 In August 2020, the Financial Accounting Standards Board amended its accounting guidance for certain financial instruments with characteristics of liabilities and equity, including convertible debt instruments. For convertible debt with a cash conversion feature, the amended guidance removes the accounting model to separately account for the liability and equity components, which resulted in the amortization of a debt discount to interest expense. Under this amended guidance, such convertible debt is accounted for as a single debt instrument with no amortization of a debt discount, unless certain other conditions are met. The amended guidance also requires the use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. Effective January 1, 2022, we adopted the amended guidance using the modified retrospective approach, under which the guidance was applied only to the most current period presented. On January 1, 2022, we recorded an increase of $ 31.0 million to the carrying value of our convertible notes, a reduction of $ 6.9 million to deferred tax liabilities, a reduction of $ 92.6 million to Additional paid-in capital and an increase of $ 68.5 million to Retained earnings for the cumulative effect of adoption. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of our property and equipment are as follows: Range Flight equipment 30 to 40 years Computer software and equipment 3 to 5 years Ground handling equipment and other 3 to 10 years |
Summary of Transactions with Dry Leasing Joint Ventures | The following table summarizes our transactions and balances with our dry leasing joint venture: For the Years Ended December 31, Revenue and Expenses: 2022 2021 Revenue from dry leasing joint venture $ 854 $ 1,210 Aircraft rent to dry leasing joint venture 9,000 9,000 Aggregate Carrying Value of December 31, 2022 December 31, 2021 Aggregate Carrying Value of $ 15,255 $ 8,448 The following table summarizes our transactions and balances with Polar: For the Years Ended December 31, Revenue and Expenses: 2022 2021 2020 Revenue from Polar $ 296,139 $ 320,901 $ 323,907 Ground handling and airport fees to Polar 3,816 4,119 3,302 Accounts receivable/payable as of: December 31, 2022 December 31, 2021 Receivables from Polar $ 10,114 $ 22,311 Payables to Polar 2,101 3,082 Aggregate Carrying Value of Polar December 31, 2022 December 31, 2021 Aggregate Carrying Value of Polar $ 4,870 $ 4,870 |
Schedule of Deferred Maintenance | The following table provides a summary of Deferred maintenance included within Deferred costs and other assets as of December 31: 2022 2021 Beginning balance, net $ 180,675 $ 191,303 Deferred maintenance costs 27,609 38,438 Disposals ( 7,136 ) - Special charge ( 1,628 ) - Amortization of deferred maintenance ( 46,886 ) ( 49,066 ) Ending balance, net $ 152,634 $ 180,675 |
DHL Investment and Polar (Table
DHL Investment and Polar (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Summary of Aircraft Types, Services and Number of Aircraft Provided to Polar and DHL | The following table summarizes the aircraft types, services and number of aircraft provided to Polar and DHL as of December 31, 2022: Aircraft Service Total 747-8F ACMI 6 777-200LRF CMI 6 777-200LRF CMI and Dry Leasing 2 777-200LRF Dry Leasing 2 767-300 CMI and Dry Leasing 2 767-300 CMI 2 Total 20 |
Summary of Transactions with Dry Leasing Joint Ventures | The following table summarizes our transactions and balances with our dry leasing joint venture: For the Years Ended December 31, Revenue and Expenses: 2022 2021 Revenue from dry leasing joint venture $ 854 $ 1,210 Aircraft rent to dry leasing joint venture 9,000 9,000 Aggregate Carrying Value of December 31, 2022 December 31, 2021 Aggregate Carrying Value of $ 15,255 $ 8,448 The following table summarizes our transactions and balances with Polar: For the Years Ended December 31, Revenue and Expenses: 2022 2021 2020 Revenue from Polar $ 296,139 $ 320,901 $ 323,907 Ground handling and airport fees to Polar 3,816 4,119 3,302 Accounts receivable/payable as of: December 31, 2022 December 31, 2021 Receivables from Polar $ 10,114 $ 22,311 Payables to Polar 2,101 3,082 Aggregate Carrying Value of Polar December 31, 2022 December 31, 2021 Aggregate Carrying Value of Polar $ 4,870 $ 4,870 |
Supplemental Balance Sheet an_2
Supplemental Balance Sheet and Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |
Summary of Allowance for Expected Credit Losses | Allowance for expected credit losses, included within Accounts receivable, is as follows: 2022 2021 2020 Beginning balance $ 4,003 $ 1,233 $ 1,822 Provision for (reversal of) expected credit losses ( 595 ) ( 378 ) 463 Amounts written off and other items ( 747 ) 3,148 ( 1,052 ) Ending balance $ 2,661 $ 4,003 $ 1,233 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of December 31: 2022 2021 Salaries, wages and benefits $ 195,121 $ 211,801 Customer maintenance reserves 92,132 87,565 Maintenance 79,668 135,133 Deferred revenue 52,735 58,616 Aircraft fuel 34,681 40,855 Other 110,771 108,008 Accrued liabilities $ 565,108 $ 641,978 |
Summary of Significant Changes in Deferred Revenue Liability Balances | Significant changes in our Deferred Revenue liability balances during the year ended December 31, 2022 were as follows: Balance as of December 31, 2021 $ 52,647 Revenue recognized ( 489,489 ) Amounts collected or invoiced 480,081 Balance as of December 31, 2022 $ 43,239 |
Summary of Interest and Income Taxes Paid | The following table summarizes interest and income taxes paid: 2022 2021 2020 Interest paid $ 60,206 $ 66,623 $ 76,310 Income taxes paid, net of refunds $ 1,928 $ 2,230 $ 1,170 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: December 31, 2022 December 31, 2021 Cash and cash equivalents $ 763,314 $ 910,965 Restricted cash 10,597 10,052 Total Cash, cash equivalents and restricted cash shown in $ 773,911 $ 921,017 |
Intangible Assets, Net and Go_2
Intangible Assets, Net and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net and Goodwill | The following table presents our Intangible assets, net and goodwill as of December 31: 2022 2021 Lease intangible $ 54,891 $ 54,891 Goodwill 40,361 40,361 Customer relationship 26,280 26,280 Less: accumulated amortization ( 62,766 ) ( 56,736 ) $ 58,766 $ 64,796 |
Schedule of Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of December 31, 2022 is as follows: 2023 $ 4,853 2024 1,643 2025 1,643 2026 1,643 2027 1,643 Thereafter 6,980 Total $ 18,405 |
Amazon (Tables)
Amazon (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Customer Incentive Asset within Deferred Costs and Other Assets | Customer incentive asset included within Deferred costs and other assets is as follows: 2022 2021 Beginning balance $ 96,177 $ 125,276 Initial value for vested portion of warrant 15,063 15,063 Amortization of customer incentive asset ( 39,764 ) ( 44,162 ) Ending balance $ 71,476 $ 96,177 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instrument [Line Items] | |
Debt Obligations | Our debt obligations, as of December 31: 2022 2021 Range of Maturity Dates Interest Balance Interest Balance Ex-Im Guaranteed Notes 2024 to 2025 1.91 % $ 155,127 1.91 % $ 231,921 Term loans 2023 to 2034 4.27 % 1,303,314 3.80 % 967,481 Private Placement Facility 2025 to 2026 3.60 % 64,842 3.44 % 81,689 Convertible Notes 2024 1.88 % 288,906 2.04 % 513,500 Promissory Note 2030 1.00 % 199,832 1.00 % 199,832 Other debt 2028 to 2029 3.26 % 247,304 2.94 % 177,635 Total principal amount of debt 2,259,325 2,172,058 Less: unamortized debt discount and issuance costs ( 28,415 ) ( 54,174 ) Total debt 2,230,910 2,117,884 Less current portion of debt ( 411,678 ) ( 508,285 ) Long-term debt $ 1,819,232 $ 1,609,599 (1) Interest rates reflect weighted-average rates as of year-end. |
Schedule of Convertible Notes | The 2015 and 2017 Convertible Notes consisted of the following as of December 31: 2022 2021 2017 Convertible Notes 2015 Convertible Notes 2017 Convertible Notes Remaining life in months 17 5 29 Gross proceeds $ 288,906 $ 224,500 $ 289,000 Less: debt discount, net of amortization — ( 3,861 ) ( 27,605 ) Less: debt issuance cost, net of amortization ( 1,503 ) ( 352 ) ( 2,109 ) Net carrying amount $ 287,403 $ 220,287 $ 259,286 (1) Included in Additional paid-in capital on the consolidated balance sheets. |
Summary of Convertible Note Hedges and Related Warrants | The following table summarizes the convertible note hedges and related warrants as of December 31, 2022: 2017 Convertible Note Hedge: Number of shares (1) 4,731,306 Initial price per share $ 61.08 Cost of hedges $ 70,140 2015 2017 Convertible Note Warrants: Remaining number of shares (1) 1,593,740 4,731,306 Price per share (2) $ 88.86 $ 92.20 (1) Subject to adjustment for certain specified events (2) 2015 Convertible Notes were adjusted for the announcement of the Merger Agreement |
Summary of Interest Expense Recognized | The following table presents the amount of interest expense recognized related to the 2015 and 2017 Convertible Notes: 2022 2021 2020 Contractual interest coupon $ 7,523 $ 10,470 $ 10,470 Amortization of debt discount - 19,132 17,971 Amortization of debt issuance costs 1,467 1,634 1,569 Total interest expense recognized $ 8,990 $ 31,236 $ 30,010 |
Schedule of Future Cash Payments for Debt | The following table summarizes the cash required to be paid by year and the carrying value of our debt reflecting the terms that were in effect as of December 31, 2022: 2023 $ 421,255 2024 574,626 2025 174,323 2026 149,903 2027 161,087 Thereafter 778,131 Total debt cash payments 2,259,325 Less: unamortized debt issuance costs ( 28,415 ) Debt $ 2,230,910 |
Term Loans [Member] | |
Debt Instrument [Line Items] | |
Schedule of Term Loans | The following table summarizes the terms for each term loan entered into during 2022 (in millions): Issue Face Original Fixed Date Value Term Rate First 2022 Term Loan May 2022 $ 140.0 144 months 4.17 % Second 2022 Term Loan October 2022 140.0 144 months 5.73 % Third 2022 Term Loan November 2022 135.0 144 months 5.21 % Fourth 2022 Term Loan November 2022 147.9 144 months 4.28 % Total $ 562.9 |
Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Convertible Notes | The following table lists certain key terms for the 2017 Convertible Notes: 2017 Fixed interest rate 1.88 % Earliest conversion date September 1, 2023 Initial conversion price per share $ 61.08 Conversion rate (shares for each $ 1,000 of principal) 16.3713 |
Leases and Guarantees (Tables)
Leases and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Rental Expenses | The following table summarizes rental expenses in: 2022 2021 2020 Aircraft and engines $ 52,268 $ 67,745 $ 96,865 Purchased capacity, office, vehicles and other $ 18,051 $ 23,308 $ 18,708 |
Summary of Lease-Related Assets and Liabilities Recorded on Consolidated Balance Sheet | The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheets as of December 31: Classification on the Consolidated Balance Sheets 2022 2021 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 107,707 $ 138,744 Finance lease assets Property and equipment, net 69,873 149,459 Less: Accumulated amortization on finance lease assets Property and equipment, net ( 16,239 ) ( 15,295 ) Total lease assets $ 161,341 $ 272,908 Liabilities Current Operating lease liabilities Current portion of long-term operating leases $ 53,825 $ 55,383 Finance lease liabilities Current portion of long-term debt and finance leases 25,368 131,525 Noncurrent Operating lease liabilities Long-term operating leases 111,591 166,022 Finance lease liabilities Long-term debt and finance leases 41,890 45,477 Total lease liabilities $ 232,674 $ 398,407 Weighted Average Remaining Lease Term in years Operating Leases 4.51 5.02 Finance Leases 5.61 3.19 Weighted Average Discount Rate Operating Leases 3.94 % 3.95 % Finance Leases 11.80 % 6.66 % |
Summary of Lease Costs for Finance and Operating Leases | The following table presents information related to lease costs for finance and operating leases: 2022 2021 Fixed operating lease costs (1) $ 39,260 $ 62,616 Variable operating lease costs (1) 30,856 26,731 Finance lease costs: Amortization of leased assets (2) 8,728 9,289 Interest on lease liabilities (3) 6,992 8,052 Total lease cost $ 85,836 $ 106,688 (1) Expenses are classified within Aircraft rent and Navigation fees, landing fees and other rent on the consolidated statement of operations. Short-term lease contracts are not material. (2) Expense is classified within Depreciation and amortization on the consolidated statement of operations. (3) Expense is classified within Interest expense on the consolidated statement of operations. |
Schedule of Supplemental Cash Flow Information | The table below presents supplemental cash flow information related to leases as follows: 2022 2021 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 63,876 $ 126,785 Operating cash flows for finance leases 6,967 7,804 Financing cash flows for finance leases 134,882 152,541 |
Schedule of Maturities of Lease Liabilities | As of December 31, 2022, maturities of lease liabilities for the periods indicated were as follows: Operating Finance Leases Leases Total 2023 $ 59,103 $ 30,763 $ 89,866 2024 56,248 9,253 65,501 2025 18,360 9,252 27,612 2026 11,783 9,236 21,019 2027 10,822 9,216 20,038 Thereafter 23,300 30,252 53,552 Total minimum rental payments 179,616 97,972 277,588 Less: imputed interest 14,200 30,714 44,914 Total lease liabilities $ 165,416 $ 67,258 $ 232,674 |
Summary of Contractual Amount of Minimum Receipts Excluding Taxes Under Dry Leases | As of December 31, 2022, our contractual amount of minimum receipts, excluding taxes, for the periods indicated under Dry Leases reflecting the terms that were in effect were as follows: 2023 $ 146,935 2024 83,171 2025 81,119 2026 80,588 2027 65,487 Thereafter 68,803 Total minimum lease receipts $ 526,103 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Components of the (Benefit from) Provision for Income Taxes | The significant components of the provision for (benefit from) income taxes are as follows: 2022 2021 2020 Current: Federal $ - $ - $ ( 71 ) State and local 374 1,111 680 Foreign 635 564 2,249 Total current expense 1,009 1,675 2,858 Deferred: Federal 96,662 136,327 116,263 State and local 615 5,317 8,346 Foreign 7,470 10,755 8,989 Total deferred expense 104,747 152,399 133,598 Total income tax expense $ 105,756 $ 154,074 $ 136,456 |
Domestic and Foreign Earnings (Loss) before Income Taxes | The domestic and foreign earnings (loss) before income taxes are as follows: 2022 2021 2020 Domestic $ 416,359 $ 611,008 $ 443,087 Foreign 45,277 36,383 53,655 Income before income taxes $ 461,636 $ 647,391 $ 496,742 |
Effective Income Tax Rate Reconciliation | A reconciliation of the provision (benefit) for income taxes applying the statutory federal income tax rate of 21.0 % for the years ended December 31, 2022, 2021 and 2020, respectively, is as follows: 2022 2021 2020 U.S. federal statutory income tax rate 21.0 % 21.0 % 21.0 % State and local taxes based on income, net of federal benefit 1.2 % 1.0 % 0.8 % Change in deferred foreign and state tax rates ( 0.5 %) 0.5 % 0.6 % Customer incentive — — 3.0 % Nondeductible compensation 1.0 % 0.8 % 1.2 % Other nondeductible expenses 0.6 % 0.3 % 0.8 % Tax effect of foreign operations ( 0.8 %) ( 0.5 %) ( 1.2 %) Other 0.4 % 0.7 % 1.3 % Effective income tax expense rate 22.9 % 23.8 % 27.5 % |
Deferred Tax Assets (Liabilities) | The net noncurrent deferred tax asset (liability) was comprised of the following as of December 31: Assets (Liabilities) 2022 2021 Deferred tax assets: Net operating loss carryforwards and credits $ 466,793 $ 411,071 Accrued compensation 31,231 38,085 Aircraft and other leases 46,346 60,850 Interest expense limitation carryforward 6,491 - Long-term debt 3,916 599 Obsolescence reserve 10,205 9,086 Stock-based compensation 1,845 1,947 Other - 577 Total deferred tax assets 566,827 522,215 Valuation allowance ( 18,239 ) ( 23,185 ) Net deferred tax assets $ 548,588 $ 499,030 2022 2021 Deferred tax liabilities: Fixed assets $ ( 927,774 ) $ ( 767,273 ) Customer incentive ( 2,512 ) ( 5,094 ) Deferred maintenance ( 33,416 ) ( 39,712 ) Goodwill and other intangibles ( 13,209 ) ( 10,626 ) Operating lease right-of-use assets ( 23,565 ) ( 30,459 ) Other ( 252 ) - Total deferred tax liabilities $ ( 1,000,728 ) $ ( 853,164 ) Deferred taxes included within following balance sheet line items: Deferred taxes $ ( 452,495 ) $ ( 354,798 ) Deferred costs and other assets 355 664 Net deferred tax assets (liabilities) $ ( 452,140 ) $ ( 354,134 ) |
Unrecognized Income Tax Benefits | A reconciliation of the beginning and ending unrecognized income tax benefits is as follows: 2022 2021 2020 Beginning balance $ 29,524 $ 27,440 $ 22,383 Additions for tax positions related to the current year - 1,650 4,971 Additions for tax positions related to prior years 99 566 127 Reductions for tax positions related to prior years ( 637 ) ( 132 ) ( 41 ) Ending balance $ 28,986 $ 29,524 $ 27,440 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments | The following table summarizes the carrying value, estimated fair value and classification of our financial instruments as of: December 31, 2022 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 763,314 $ 763,314 $ 763,314 $ - $ - Restricted cash 10,597 10,597 10,597 - - $ 773,911 $ 773,911 $ 773,911 $ - $ - Liabilities Term loans and notes $ 1,943,507 $ 1,885,317 $ - $ - $ 1,885,317 Convertible notes (1) 287,403 479,584 479,584 - - $ 2,230,910 $ 2,364,901 $ 479,584 $ - $ 1,885,317 December 31, 2021 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 910,965 $ 910,965 $ 910,965 $ - $ - Restricted cash 10,052 10,052 10,052 - - $ 921,017 $ 921,017 $ 921,017 $ - $ - Liabilities Term loans and notes $ 1,638,311 $ 1,690,675 $ - $ - $ 1,690,675 Convertible notes (2) 479,573 758,424 758,424 - - $ 2,117,884 $ 2,449,099 $ 758,424 $ - $ 1,690,675 (1) Carrying value is net of debt issuance costs (see Note 10). (2) Carrying value is net of debt discounts and debt issuance costs (see Note 10) . |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting Tables [Abstract] | |
Operating Revenue and Direct Contribution For Our Reportable Business Segments | The following table sets forth Operating Revenue and Direct Contribution for our reportable segments reconciled to Operating Income (loss) and Income (loss) before income taxes: 2022 2021 2020 Operating Revenue: Airline Operations $ 4,395,905 $ 3,888,601 $ 3,066,399 Dry Leasing 170,908 163,365 165,181 Customer incentive asset amortization ( 39,764 ) ( 44,162 ) ( 39,090 ) Other 22,055 23,025 18,626 Total Operating Revenue $ 4,549,104 $ 4,030,829 $ 3,211,116 Direct Contribution: Airline Operations $ 815,647 $ 1,020,887 $ 739,619 Dry Leasing 56,142 42,587 41,070 Total Direct Contribution for Reportable Segments 871,789 1,063,474 780,689 Unallocated income and (expenses), net ( 380,405 ) ( 409,721 ) ( 201,016 ) Loss on early extinguishment of debt ( 689 ) ( 6,042 ) ( 81 ) Unrealized loss on financial instruments - ( 113 ) ( 71,053 ) Special charge ( 16,215 ) - ( 16,265 ) Transaction-related expenses ( 9,746 ) ( 1,001 ) ( 2,780 ) Gain (loss) on disposal of flight equipment ( 3,098 ) 794 7,248 Income before income taxes 461,636 647,391 496,742 Add back (subtract): Interest income ( 8,755 ) ( 723 ) ( 1,076 ) Interest expense 81,692 107,492 114,635 Capitalized interest ( 12,683 ) ( 8,316 ) ( 925 ) Loss on early extinguishment of debt 689 6,042 81 Unrealized loss on financial instruments - 113 71,053 Other (income) expense, net ( 185 ) ( 40,705 ) ( 185,742 ) Operating Income $ 522,394 $ 711,294 $ 494,768 |
Schedule of Disaggregated Airline Operations Segment Revenue by Customer and Service Type | The following table disaggregates our Airline Operations segment revenue by customer and service type: For the Years Ended December 31, 2022 2021 2020 Cargo Passenger Total Cargo Passenger Total Cargo Passenger Total Commercial customers $ 3,786,345 $ 25,636 $ 3,811,981 $ 3,441,881 $ 23,163 $ 3,465,044 $ 2,538,230 $ 17,802 $ 2,556,032 AMC 338,290 245,634 583,924 139,909 283,648 423,557 217,522 292,845 510,367 Airline Operations Revenue $ 4,124,635 $ 271,270 $ 4,395,905 $ 3,581,790 $ 306,811 $ 3,888,601 $ 2,755,752 $ 310,647 $ 3,066,399 |
Depreciation and Amortization by Reportable Business Segments | 2022 2021 2020 Depreciation and amortization expense: Airline Operations 212,178 188,251 165,769 Dry Leasing 78,625 79,597 78,241 Unallocated 12,417 13,361 13,662 Total Depreciation and Amortization $ 303,220 $ 281,209 $ 257,672 |
Long-term Incentive Compensat_2
Long-term Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stock Based Compensation Plans Tables [Abstract] | |
Summary of Our Restricted Shares | A summary of our restricted stock units as of December 31, 2022 and changes during the year then ended are presented below: Weighted-Average Restricted Share Unit Awards Number of Grant-Date Unvested as of December 31, 2021 363,249 $ 43.79 Granted 223,075 72.65 Vested ( 188,227 ) 44.07 Forfeited ( 7,365 ) 48.18 Unvested as of December 31, 2022 390,732 $ 60.00 |
Summary of Our Performance Shares | A summary of our performance share units as of December 31, 2022 and changes during the year then ended are presented below: Weighted-Average Performance Share Unit Awards Number of Grant-Date Unvested as of December 31, 2021 229,538 $ 53.31 Granted 72,091 78.46 Adjustments 135,405 - Vested ( 234,895 ) 47.95 Forfeited ( 769 ) 56.92 Unvested as of December 31, 2022 201,370 $ 64.93 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted EPS | The calculations of basic and diluted EPS were as follows: For the Years Ended December 31, Numerator: 2022 2021 2020 Net Income $ 355,880 $ 493,317 $ 360,286 Plus: Interest expense on convertible notes, net of tax 4,177 - - Unrealized loss on financial instruments, net of tax - 112 - Diluted net income $ 360,057 $ 493,429 $ 360,286 Denominator: Basic EPS weighted average shares outstanding 28,463 28,910 26,408 Effect of dilutive: Convertible notes 4,806 782 - Warrants 734 621 133 Restricted stock 187 230 149 Diluted EPS weighted average shares outstanding 34,190 30,543 26,690 Earnings per share: Basic $ 12.50 $ 17.06 $ 13.64 Diluted $ 10.53 $ 16.16 $ 13.50 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the components of Accumulated other comprehensive income (loss): Foreign Interest Rate Currency Derivatives Translation Total Balance as of December 31, 2020 $ ( 1,913 ) $ 9 $ ( 1,904 ) Reclassification to interest expense 920 - 920 Reclassification to loss on early extinguishment of debt 890 - 890 Tax effect ( 417 ) - ( 417 ) Balance as of December 31, 2021 $ ( 520 ) $ 9 $ ( 511 ) Balance as of December 31, 2021 $ ( 520 ) $ 9 $ ( 511 ) Reclassification to interest expense 91 - 91 Reclassification to loss on early extinguishment of debt 639 - 639 Tax effect ( 175 ) - ( 175 ) Balance as of December 31, 2022 $ 35 $ 9 $ 44 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - Polar [Member] | 12 Months Ended |
Dec. 31, 2022 | |
Basis Of Presentation [Line Items] | |
Equity interest | 51% |
Voting interest | 75% |
Merger Agreement - Additional I
Merger Agreement - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Feb. 17, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 04, 2022 | |
Business Acquisition [Line Items] | |||||
Transaction-related expenses | $ 9,746 | $ 1,001 | $ 2,780 | ||
Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Private offering date | Feb. 17, 2023 | ||||
Private offering of senior secured notes | $ 850,000 | ||||
Term of debt | 7 years | ||||
Maturity | 2030-02 | ||||
Fixed interest rate | 8.50% | ||||
Rand Parent, LLC, a Delaware Limited Liability Company [Member] | Merger Agreement [Member] | |||||
Business Acquisition [Line Items] | |||||
Right to receive in cash, per share | $ 102.50 | ||||
Exercise price of warrants exercisable | $ 37.34 | ||||
Termination fee payable, in order to enter into a definitive acquisition agreement, or by parent as a result of the board changing its recommendation with respect to merger or under certain other circumstances | $ 97,500 | ||||
Entitled termination fee, if parents breach of merger agreement or parent fails to consummate merger agreement | $ 227,400 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2022 | |
Significant Accounting Policies [Line Items] | ||||||
Expendable parts net book value | $ 65,900 | $ 57,000 | ||||
Allowance for expendable obsolescence | 47,600 | 42,400 | ||||
Depreciation expense | 241,800 | 216,800 | $ 205,100 | |||
Net book value of flight equipment used in Airline Operations | 2,808,300 | 2,812,000 | ||||
Accumulated depreciation for flight equipment used in Airline Operations | 943,300 | 836,100 | ||||
Net book value on flight equipment dry leased to customers | 2,045,000 | 1,388,600 | ||||
Accumulated depreciation on flight equipment on dry leasing | 489,600 | 412,400 | ||||
Rotable parts inventory, net book value | 351,900 | 314,800 | ||||
Goodwill total balance | 40,400 | 40,400 | ||||
Accounts receivable | 253,738 | 305,905 | ||||
Accrued heavy maintenance cost | 31,600 | 79,600 | ||||
Liabilities and equity, including convertible debt instruments | $ 31,000 | |||||
Additional Paid-In Capital [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Liabilities and equity, including convertible debt instruments | 92,600 | |||||
Retained Earnings [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Liabilities and equity, including convertible debt instruments | 68,500 | |||||
Deferred tax liabilities [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Liabilities and equity, including convertible debt instruments | $ 6,900 | |||||
Dry Leasing Joint Venture [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Voting interest | 10% | |||||
Investment in joint venture | 16,800 | |||||
Dry Leasing Joint Venture [Member] | Maximum [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Commitment to capital contributions | $ 40,000 | |||||
Parts Joint Venture [Member] | Variable Interest Entity Not Primary Beneficiary [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Voting interest | 50% | |||||
Investment in joint venture | $ 20,300 | 19,200 | ||||
Accounts receivable | 0 | 300 | ||||
Payables to related party | $ 700 | $ 1,200 | ||||
Forecast [Member] | Aircraft 747-8F And 777-200LRF [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Committed expenditures to acquire aircraft and spare engines | $ 486,200 | |||||
Charter Services [Member] | ||||||
Significant Accounting Policies [Line Items] | ||||||
Sales commissions, description | We generally expense sales commissions when incurred because the amortization period is less than one year. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment Depreciable Lives (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum [Member] | Flight equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 30 years |
Minimum [Member] | Computer software and equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 3 years |
Minimum [Member] | Ground handling equipment and other [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 3 years |
Maximum [Member] | Flight equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 40 years |
Maximum [Member] | Computer software and equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 5 years |
Maximum [Member] | Ground handling equipment and other [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Transactions with Dry Leasing Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Aircraft rent to dry leasing joint venture | $ 52,268 | $ 67,745 | $ 96,865 |
Dry Leasing Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from dry leasing joint venture | 854 | 1,210 | |
Aircraft rent to dry leasing joint venture | 9,000 | 9,000 | |
Aggregate Carrying Value of Dry Leasing Joint Venture | $ 15,255 | $ 8,448 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Deferred Maintenance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Beginning balance, net | $ 180,675 | $ 191,303 |
Deferred maintenance costs | 27,609 | 38,438 |
Disposals | (7,136) | 0 |
Special charge | (1,628) | 0 |
Amortization of deferred maintenance | (46,886) | (49,066) |
Ending balance, net | $ 152,634 | $ 180,675 |
Payroll Support Program under_2
Payroll Support Program under the CARES Act - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
May 29, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Operating Revenue | $ 4,549,104 | $ 4,030,829 | $ 3,211,116 | |
Payroll Support Program Agreement [Member] | Grant [Member] | Other Income (Expense), Net [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Operating Revenue | $ 40,900 | 151,600 | ||
Payroll Support Program Agreement [Member] | US Treasury [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Payroll support funding | $ 406,800 | |||
Exercise price of warrants exercisable | $ 31.95 | |||
Warrants grant date fair value recognized as additional paid in capital | $ 14,400 | |||
Number of warrant exercised | 0 | |||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Maximum [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Number of warrants issued to acquire common stock | 625,452 | |||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Commercial Paper [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Proceeds from line of credit | $ 199,800 | |||
Interest on outstanding principal amount until fifth anniversary | 1% | |||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Commercial Paper [Member] | SOFR [Member] | ||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | ||||
Percentage of additional bears interest after fifth anniversary | 2% |
DHL Investment and Polar - Addi
DHL Investment and Polar - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Polar [Member] | |||
Related Party Transaction [Line Items] | |||
Equity interest | 51% | ||
Voting interest | 75% | ||
DHL [Member] | Polar [Member] | |||
Related Party Transaction [Line Items] | |||
Equity interest | 49% | ||
Voting interest | 25% | ||
DHL [Member] | Polar [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue recognized | $ 105.6 | $ 194.9 | $ 226.8 |
DHL Investment and Polar - Summ
DHL Investment and Polar - Summary of Aircraft Types, Services and Number of Aircraft Provided to Polar and DHL (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Service [Member] | |
Aircraft Type [Line Items] | |
747-8F | ACMI |
777-200LRF | CMI |
777-200LRF | CMI and Dry Leasing |
777-200LRF | Dry Leasing |
767-300 | CMI and Dry Leasing |
767-300 | CMI |
Total Aircraft [Member] | |
Aircraft Type [Line Items] | |
747-8F | 6 |
777-200LRF | 6 |
777-200LRF | 2 |
777-200LRF | 2 |
767-300 | 2 |
767-300 | 2 |
Total | 20 |
DHL Investment and Polar - Su_2
DHL Investment and Polar - Summary of Transactions and Balances with Polar (Details) - Polar [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Revenue from related party | $ 296,139 | $ 320,901 | $ 323,907 |
Ground handling and airport fees to Polar | 3,816 | 4,119 | $ 3,302 |
Receivables from related party | 10,114 | 22,311 | |
Payables to related party | 2,101 | 3,082 | |
Aggregate Carrying Value of Polar Investment | $ 4,870 | $ 4,870 |
Supplemental Balance Sheet an_3
Supplemental Balance Sheet and Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||
Accounts receivable related to customer contracts excluding dry leasing contracts | $ 198.6 | $ 248.4 |
Supplemental Balance Sheet an_4
Supplemental Balance Sheet and Cash Flow Information - Summary of Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |||
Beginning balance | $ 4,003 | $ 1,233 | $ 1,822 |
Provision for (reversal of) expected credit losses | (595) | (378) | 463 |
Amounts written off and other items | (747) | 3,148 | (1,052) |
Ending balance | $ 2,661 | $ 4,003 | $ 1,233 |
Supplemental Balance Sheet an_5
Supplemental Balance Sheet and Cash Flow Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||
Salaries, wages and benefits | $ 195,121 | $ 211,801 |
Customer maintenance reserves | 92,132 | 87,565 |
Maintenance | 79,668 | 135,133 |
Deferred revenue | 52,735 | 58,616 |
Aircraft fuel | 34,681 | 40,855 |
Other | 110,771 | 108,008 |
Accrued liabilities | $ 565,108 | $ 641,978 |
Supplemental Balance Sheet an_6
Supplemental Balance Sheet and Cash Flow information - Summary of Significant Changes in Deferred Revenue liability Balances (Details) - Non-Dry Lease Revenue Contracts with Customers [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Revenue Recognition [Line Items] | |
Balance as of December 31, 2021 | $ 52,647 |
Revenue recognized | (489,489) |
Amounts collected or invoiced | 480,081 |
Balance as of December 31, 2022 | $ 43,239 |
Supplemental Balance Sheet an_7
Supplemental Balance Sheet and Cash Flow information - Summary of Interest and Income Taxes Paid (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |||
Interest paid | $ 60,206 | $ 66,623 | $ 76,310 |
Income taxes paid, net of refunds | $ 1,928 | $ 2,230 | $ 1,170 |
Supplemental Balance Sheet an_8
Supplemental Balance Sheet and Cash Flow information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 763,314 | $ 910,965 | ||
Restricted cash | 10,597 | 10,052 | ||
Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows | $ 773,911 | $ 921,017 | $ 856,281 | $ 113,430 |
Special Charge, Assets Held f_2
Special Charge, Assets Held for Sale and Other Income - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Engine | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Special charge | $ 16,215 | $ 0 | $ 16,265 |
Proceeds from disposal of aircraft | 36,626 | 9,470 | 126,335 |
Net gain/loss from sale of aircraft | (3,098) | 794 | 7,248 |
Prepaid Expenses and Other Current Assets [Member] | Level 3 [Member] | |||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Carrying value of remaining asset held for sale | $ 4,400 | 5,500 | |
Aircraft Engines [Member] | Other Income (Expense), Net [Member] | |||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Aircraft rent refund | $ 4,600 | $ 39,500 | |
Nonoperational Spare CF680 Engines [Member] | |||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Number of aircraft held for sale | Engine | 6 | ||
Special charge | $ 13,500 | ||
Other CF680 Engines [Member] | |||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||
Number of aircraft held for sale | Engine | 2 | ||
Special charge | $ 2,700 |
Intangible Assets, Net and Go_3
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible Assets Table Details [Abstract] | ||
Lease intangible | $ 54,891 | $ 54,891 |
Goodwill | 40,361 | 40,361 |
Customer relationship | 26,280 | 26,280 |
Less: accumulated amortization | (62,766) | (56,736) |
Intangible assets, net | $ 58,766 | $ 64,796 |
Intangible Assets, Net and Go_4
Intangible Assets, Net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets Amortization Expense Details [Abstract] | |||
Amortization of Intangible Assets | $ 6 | $ 6 | $ 6 |
Intangible Assets, Net and Go_5
Intangible Assets, Net and Goodwill - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Schedule Of Estimated Amortization Expense Table Details [Abstract] | |
2023 | $ 4,853 |
2024 | 1,643 |
2025 | 1,643 |
2026 | 1,643 |
2027 | 1,643 |
Thereafter | 6,980 |
Total | $ 18,405 |
Amazon - Additional Information
Amazon - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | May 31, 2016 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class Of Warrant Or Right [Line Items] | |||||
Issuance of shares related to settlement of warrant | 1,467,861 | 1,375,421 | |||
Revenues | $ 4,549,104 | $ 4,030,829 | $ 3,211,116 | ||
Amortization of customer incentive asset | $ 39,764 | $ 44,162 | $ 39,100 | ||
Warrant A [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Right to acquire outstanding common shares | up to 20% of our outstanding common shares, as of the date of the agreements | ||||
Exercise price of warrants exercisable | $ 37.34 | ||||
Warrant for number of shares fully vested | 7,500,000 | ||||
Warrant B [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Exercise price of warrants exercisable | $ 37.34 | ||||
Additional warrant to acquire outstanding shares | up to an additional 10% of our outstanding common shares, as of the date of the agreements, | ||||
Additional warrant to buy number of shares vesting | 3,770,000 | ||||
Vesting increments of Amazon warrants | 37,660 | ||||
Revenues | $ 4,200 | ||||
Warrant vested | 1,544,060 | ||||
Class of warrant or right number of securities remaining unexercised | 979,160 | ||||
Warrant vesting year | May 04, 2023 | ||||
Warrant C [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Right to acquire outstanding common shares | up to an additional 9.9% of our outstanding common shares, as of the date of the agreements | ||||
Exercise price of warrants exercisable | $ 52.67 | ||||
Vesting increments of Amazon warrants | 45,623 | ||||
Revenues | $ 6,900 | ||||
Warrant vested | 0 | ||||
Warrant vesting year | Mar. 27, 2026 | ||||
Incremental warrant to buy number of shares vesting. | 6,660,000 | ||||
Maximum [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrant providing right to acquire outstanding common shares percentage | 14.90% | ||||
Maximum [Member] | Warrant A [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrant providing right to acquire outstanding common shares percentage | 20% | ||||
Maximum [Member] | Warrant B [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Percentage of additional warrant to acquire outstanding common shares | 10% | ||||
Revenues | $ 420,000 | ||||
Maximum [Member] | Warrant C [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrant providing right to acquire outstanding common shares percentage | 9.90% | ||||
Revenues | $ 1,000,000 | ||||
Dry Leases [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Lease term | 10 years | ||||
Vesting of warrant | There has been no vesting of Warrant B or C related to Dry Leases. | ||||
CMI Operation [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Lease term | 7 years | 7 years | |||
Lease term option to extend | The 737-800 CMI operations are for a term of seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years). | The Dry Leases have a term of ten years from the commencement of each agreement, while the CMI operations are for seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years). | |||
Lease term of extension | 10 years | 10 years |
Amazon - Summary of Customer In
Amazon - Summary of Customer Incentive Asset within Deferred Costs and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Warrants and Rights Note Disclosure [Abstract] | |||
Beginning balance | $ 96,177 | $ 125,276 | |
Initial value for vested portion of warrant | 15,063 | 15,063 | |
Amortization of customer incentive asset | (39,764) | (44,162) | $ (39,100) |
Ending balance | $ 71,476 | $ 96,177 | $ 125,276 |
Debt - Debt Obligations (Detail
Debt - Debt Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Debt Instrument [Line Items] | |||
Total principal amount of debt | $ 2,259,325 | $ 2,172,058 | |
Less: unamortized debt discount and issuance costs | (28,415) | (54,174) | |
Total debt | 2,230,910 | 2,117,884 | |
Less current portion of debt | (411,678) | (508,285) | |
Long-term debt | 1,819,232 | 1,609,599 | |
Ex-Im Guaranteed Notes [Member] | |||
Debt Instrument [Line Items] | |||
Ex-Im Guaranteed Notes | $ 155,127 | $ 231,921 | |
Interest Rates | [1] | 1.91% | 1.91% |
Ex-Im Guaranteed Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2024 | ||
Ex-Im Guaranteed Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2025 | ||
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Term loans | $ 1,303,314 | $ 967,481 | |
Interest Rates | [1] | 4.27% | 3.80% |
Term Loans [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2023 | ||
Term Loans [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2034 | ||
Private Placement Facility [Member] | |||
Debt Instrument [Line Items] | |||
Private Placement Facility | $ 64,842 | $ 81,689 | |
Interest Rates | [1] | 3.60% | 3.44% |
Private Placement Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2025 | ||
Private Placement Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2026 | ||
Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 288,906 | $ 513,500 | |
Range of Maturity Dates | 2024 | ||
Interest Rates | [1] | 1.88% | 2.04% |
Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 199,832 | $ 199,832 | |
Range of Maturity Dates | 2030 | ||
Interest Rates | [1] | 1% | 1% |
Other Debt | |||
Debt Instrument [Line Items] | |||
Other debt | $ 247,304 | $ 177,635 | |
Interest Rates | [1] | 3.26% | 2.94% |
Other Debt | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2028 | ||
Other Debt | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2029 | ||
[1] Interest rates reflect weighted-average rates as of year-end. |
Debt - Schedule of Term Loans (
Debt - Schedule of Term Loans (Details) | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |
Face | $ 562,900,000 |
First 2022 Term Loan | |
Debt Instrument [Line Items] | |
Issue | 2022-05 |
Face | $ 140,000,000 |
Original | 144 months |
Fixed Interest | 4.17% |
Second 2022 Term Loan | |
Debt Instrument [Line Items] | |
Issue | 2022-10 |
Face | $ 140,000,000 |
Original | 144 months |
Fixed Interest | 5.73% |
Third 2022 Term Loan | |
Debt Instrument [Line Items] | |
Issue | 2022-11 |
Face | $ 135,000,000 |
Original | 144 months |
Fixed Interest | 5.21% |
Fourth 2022 Term Loan | |
Debt Instrument [Line Items] | |
Issue | 2022-11 |
Face | $ 147,900,000 |
Original | 144 months |
Fixed Interest | 4.28% |
Debt - Term Loans - Additional
Debt - Term Loans - Additional Information (Details) - USD ($) | 1 Months Ended | |||||
Feb. 17, 2023 | Jan. 31, 2023 | Apr. 30, 2022 | Nov. 30, 2021 | Oct. 31, 2021 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | $ 562,900,000 | |||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument fixed interest rate | 8.50% | |||||
Debt instrument term | 7 years | |||||
747-8F Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument term | 84 months | 84 months | 83 months | |||
747-8F Term Loan [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument face amount | $ 156,500,000 | |||||
Debt instrument fixed interest rate | 3.89% | |||||
Debt instrument term | 144 months | |||||
Debt instrument due date | 2035-01 |
Debt - Private Placement Facili
Debt - Private Placement Facility - Additional Information (Details) - Private Placement Facility [Member] | 1 Months Ended |
Sep. 30, 2017 USD ($) FreighterAircraft | |
Debt Instrument [Line Items] | |
Debt facility amount | $ | $ 145,800,000 |
Number of freighter aircraft dry leased | FreighterAircraft | 6 |
Debt - Convertible Notes - Addi
Debt - Convertible Notes - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jun. 01, 2022 USD ($) shares | May 31, 2017 USD ($) | Jun. 30, 2015 USD ($) | Dec. 31, 2022 USD ($) Days $ / shares shares | Dec. 31, 2017 USD ($) | Jan. 01, 2023 $ / shares | Dec. 31, 2021 USD ($) shares | |
Debt Instrument [Line Items] | |||||||
Common stock shares issued | shares | 35,465,249 | 34,707,860 | |||||
Debt instrument, convertible, conversion price | $ / shares | $ 1,000 | ||||||
Convertible Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, repurchase percentage | 100% | ||||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130% | ||||||
Debt instrument, convertible, threshold trading days | Days | 20 | ||||||
Debt instrument, convertible, threshold consecutive trading days | Days | 30 | ||||||
Debt instrument, convertible, threshold business days | 5 days | ||||||
Debt instrument, convertible, threshold consecutive measurement period | 5 days | ||||||
Debt instrument, convertible, conversion price | $ / shares | $ 1,000 | ||||||
Debt instrument, convertible, threshold percentage of stock price trigger in measurement period | 98% | ||||||
2017 Convertible Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Convertible notes aggregate principal amount | $ | $ 289,000 | $ 288,906 | $ 289,000 | ||||
Convertible notes, date of maturity | Jun. 01, 2024 | ||||||
Exercise price of warrants exercisable | $ / shares | $ 61.08 | ||||||
Debt issuance costs | $ | $ 7,500 | ||||||
2017 Convertible Notes [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Exercise price of warrants exercisable | $ / shares | $ 92.20 | ||||||
2017 Convertible Notes [Member] | Warrants [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Exercise price of warrants exercisable | $ / shares | $ 92.20 | ||||||
2017 Convertible Notes [Member] | Warrants [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Exercise price of warrants exercisable | $ / shares | $ 75.32 | ||||||
2017 Convertible Notes [Member] | Revolver [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment line of credit outstanding balance | $ | $ 150,000 | ||||||
2015 Convertible Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate amount of EETCs refinanced interest rate | 8.10% | ||||||
Convertible notes aggregate principal amount | $ | $ 224,500 | $ 224,500 | |||||
Debt issuance costs | $ | $ 6,800 | ||||||
2015 Convertible Notes [Member] | Convertible Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate amount of EETCs refinanced interest rate | 2.25% | ||||||
Convertible notes aggregate principal amount | $ | $ 210,400 | ||||||
Common stock shares issued | shares | 138,509 | ||||||
Payment to holders who not elect to convert their outstanding notes | $ | $ 6,200 | ||||||
Received shares of common stock | shares | 25,957 | ||||||
2015 Convertible Notes [Member] | Warrants [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Warrant issued | shares | 194,996 | ||||||
Number of shares issued related to cashless exercise of warrants | shares | 1,775,621 | ||||||
Class of warrant or right number of securities remaining unexercised | shares | 1,255,937 | ||||||
Exercise price of warrants exercisable | $ / shares | $ 88.86 |
Debt - Certain Key Terms for Co
Debt - Certain Key Terms for Convertible Note (Details) - 2017 Convertible Notes [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Debt Instrument [Line Items] | |
Fixed interest rate | 1.88% |
Earliest conversion date | Sep. 01, 2023 |
Initial conversion price per share | $ 61.08 |
Conversion rate (shares for each $1,000 of principal) | 16.3713 |
Debt - Certain Key Terms for _2
Debt - Certain Key Terms for Convertible Note (Parenthetical) (Details) | Dec. 31, 2022 $ / shares |
Debt Disclosure [Abstract] | |
Debt instrument, convertible, conversion price | $ 1,000 |
Debt - Summary of Convertible N
Debt - Summary of Convertible Note Hedges and Related Warrants (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
2017 Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Number of shares | shares | 4,731,306 |
Price per share | $ / shares | $ 61.08 |
Cost of hedges | $ | $ 70,140 |
Warrants [Member] | 2015 Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Number of shares | shares | 1,593,740 |
Price per share | $ / shares | $ 88.86 |
Warrants [Member] | 2017 Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Number of shares | shares | 4,731,306 |
Price per share | $ / shares | $ 92.20 |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2017 | Jun. 30, 2015 | |
Debt Instrument [Line Items] | ||||
Less: debt issuance cost, net of amortization | $ (28,415) | |||
2015 Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Remaining life in months | 5 months | |||
Gross proceeds | $ 224,500 | $ 224,500 | ||
Less: debt discount, net of amortization | (3,861) | |||
Less: debt issuance cost, net of amortization | (352) | |||
Net carrying amount | $ 220,287 | |||
2017 Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Remaining life in months | 17 months | 29 months | ||
Gross proceeds | $ 288,906 | $ 289,000 | $ 289,000 | |
Less: debt discount, net of amortization | (27,605) | |||
Less: debt issuance cost, net of amortization | (1,503) | (2,109) | ||
Net carrying amount | $ 287,403 | $ 259,286 |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Total interest expense recognized | $ 81,692 | $ 107,492 | $ 114,635 |
Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest coupon | 7,523 | 10,470 | 10,470 |
Amortization of debt discount | 19,132 | 17,971 | |
Amortization of debt issuance costs | 1,467 | 1,634 | 1,569 |
Total interest expense recognized | $ 8,990 | $ 31,236 | $ 30,010 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2016 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 562,900,000 | ||
Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Term of revolving credit facility | 4 years | 3 years | |
Borrowing capacity | $ 250,000,000 | $ 200,000,000 | |
Revolver collateral | several 747-400 and 767-300 aircraft | ||
Revolver interest rate description | SOFR plus a margin of 1.63% per annum | ||
Interest rate of undrawn portion | 0.35% | ||
Outstanding balance | 0 | ||
Unused availability | $ 250,000,000 | ||
Revolver [Member] | Debt Instrument Face Amount for First $125 Million [Million] | |||
Debt Instrument [Line Items] | |||
Percentage of additional bears interest after fifth anniversary | 1.63% | ||
Revolver [Member] | Utilization Greater than $125 Million [Member] | |||
Debt Instrument [Line Items] | |||
Percentage of additional bears interest after fifth anniversary | 1.88% | ||
Revolver [Member] | 1.63% [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 125,000,000 | ||
Revolver [Member] | 1.88% [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 125,000,000 |
Debt - Other Debt - Additional
Debt - Other Debt - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Apr. 30, 2022 | Nov. 30, 2021 | Oct. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||||
Loss on early extinguishment of debt | $ (689) | $ (6,042) | $ (81) | |||
747-8F Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Proceeds from other debt | $ 90,000 | $ 90,000 | $ 90,000 | |||
Term of debt | 84 months | 84 months | 83 months | |||
Percentage of blended fixed rate | 3.86% | 2.98% | 2.90% | |||
Repayment of other debt | $ 45,700 | $ 50,000 | $ 50,400 | |||
Loss on early extinguishment of debt | $ 700 | $ 3,300 | $ 2,700 |
Debt - Schedule of Future Cash
Debt - Schedule of Future Cash Payments for Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Long-Term Debt, Fiscal Year Maturity [Abstract] | ||
2023 | $ 421,255 | |
2024 | 574,626 | |
2025 | 174,323 | |
2026 | 149,903 | |
2027 | 161,087 | |
Thereafter | 778,131 | |
Total debt cash payments | 2,259,325 | |
Less: unamortized debt issuance costs | (28,415) | |
Total debt | $ 2,230,910 | $ 2,117,884 |
Leases and Guarantees - Summary
Leases and Guarantees - Summary of Rental Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | |||
Aircraft and engines | $ 52,268 | $ 67,745 | $ 96,865 |
Purchased capacity, office, vehicles and other | $ 18,051 | $ 23,308 | $ 18,708 |
Leases and Guarantees - Additio
Leases and Guarantees - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 LeasedAircraft | |
Lessee Lease Description [Line Items] | |
Number of aircraft | 9 |
Number of aircraft operated under operating lease | 6 |
Lessee, operating lease, description | As of December 31, 2022, we lease 9 aircraft, of which 6 are operating leases. Lease expirations for our leased aircraft range from April 2023 to June 2032. In addition, we lease a variety of office space, airport station locations, warehouse space, vehicles and equipment, with lease expirations ranging from January 2023 to March 2036. |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease expiration period | 2023-04 |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease expiration period | 2032-06 |
Office Space, Airport Station Locations, Warehouse Space, Vehicles and Equipment [Member] | Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease expiration period | 2023-01 |
Office Space, Airport Station Locations, Warehouse Space, Vehicles and Equipment [Member] | Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease expiration period | 2036-03 |
Leases and Guarantees - Summa_2
Leases and Guarantees - Summary of Lease-Related Assets and Liabilities Recorded on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 107,707 | $ 138,744 |
Finance lease assets | $ 69,873 | $ 149,459 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property, Plant and Equipment, Net | Property, Plant and Equipment, Net |
Less: Accumulated amortization on finance lease assets | $ (16,239) | $ (15,295) |
Total lease assets | 161,341 | 272,908 |
Operating lease liabilities | $ 53,825 | $ 55,383 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Operating lease liabilities | Operating lease liabilities |
Finance lease liabilities | $ 25,368 | $ 131,525 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt and finance leases | Current portion of long-term debt and finance leases |
Operating lease liabilities | $ 111,591 | $ 166,022 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Operating lease liabilities | Operating lease liabilities |
Finance lease liabilities | $ 41,890 | $ 45,477 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt and finance leases | Long-term debt and finance leases |
Total lease liabilities | $ 232,674 | $ 398,407 |
Leases and Guarantees - Summa_3
Leases and Guarantees - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Weighted Average Remaining Lease Term in years | ||
Operating Leases | 4 years 6 months 3 days | 5 years 7 days |
Finance Leases | 5 years 7 months 9 days | 3 years 2 months 8 days |
Weighted Average Discount Rate | ||
Operating Leases | 3.94% | 3.95% |
Finance Leases | 11.80% | 6.66% |
Leases and Guarantees - Summa_4
Leases and Guarantees - Summary of Lease Costs for Finance and Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Fixed operating lease costs | $ 39,260 | $ 62,616 |
Variable operating lease costs | 30,856 | 26,731 |
Finance lease costs: | ||
Amortization of leased assets | 8,728 | 9,289 |
Interest on lease liabilities | 6,992 | 8,052 |
Total lease cost | $ 85,836 | $ 106,688 |
Leases and Guarantees - Schedul
Leases and Guarantees - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 63,876 | $ 126,785 |
Operating cash flows for finance leases | 6,967 | 7,804 |
Financing cash flows for finance leases | $ 134,882 | $ 152,541 |
Leases and Guarantees - Sched_2
Leases and Guarantees - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases [Abstract] | ||
Operating Leases, 2023 | $ 59,103 | |
Operating Leases, 2024 | 56,248 | |
Operating Leases, 2025 | 18,360 | |
Operating Leases, 2026 | 11,783 | |
Operating Leases, 2027 | 10,822 | |
Operating Leases, Thereafter | 23,300 | |
Operating Leases, Total minimum rental payments | 179,616 | |
Operating Leases, Less: imputed interest | 14,200 | |
Operating Leases | 165,416 | |
Finance Leases [Abstract] | ||
Finance Leases, 2023 | 30,763 | |
Finance Leases, 2024 | 9,253 | |
Finance Leases, 2025 | 9,252 | |
Finance Leases, 2026 | 9,236 | |
Finance Leases, 2027 | 9,216 | |
Finance Leases, Thereafter | 30,252 | |
Finance Leases, Total minimum rental payments | 97,972 | |
Finance Leases, Less: imputed interest | 30,714 | |
Finance Leases | 67,258 | |
Total [Abstract] | ||
2023 | 89,866 | |
2024 | 65,501 | |
2025 | 27,612 | |
2026 | 21,019 | |
2027 | 20,038 | |
Thereafter | 53,552 | |
Total minimum rental payments | 277,588 | |
Less: imputed interest | 44,914 | |
Total lease liabilities | $ 232,674 | $ 398,407 |
Leases and Guarantees - Summa_5
Leases and Guarantees - Summary of Contractual Amount of Minimum Receipts Excluding Taxes Under Dry Leases (Details) - Dry Leases [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Lessor Lease Description [Line Items] | |
2023 | $ 146,935 |
2024 | 83,171 |
2025 | 81,119 |
2026 | 80,588 |
2027 | 65,487 |
Thereafter | 68,803 |
Total minimum lease receipts | $ 526,103 |
Income Taxes - Components of th
Income Taxes - Components of the (Benefit from) Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ (71) | ||
State and local | $ 374 | $ 1,111 | 680 |
Foreign | 635 | 564 | 2,249 |
Total current expense | 1,009 | 1,675 | 2,858 |
Deferred: | |||
Federal | 96,662 | 136,327 | 116,263 |
State and local | 615 | 5,317 | 8,346 |
Foreign | 7,470 | 10,755 | 8,989 |
Total deferred expense | 104,747 | 152,399 | 133,598 |
Total income tax expense | $ 105,756 | $ 154,074 | $ 136,456 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Earnings (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Domestic and foreign earnings before income taxes | |||
Domestic | $ 416,359 | $ 611,008 | $ 443,087 |
Foreign | 45,277 | 36,383 | 53,655 |
Income before income taxes | $ 461,636 | $ 647,391 | $ 496,742 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
U.S. federal corporate income tax rate | 21% | 21% | 21% |
Foreign NOLs for HK, Ireland and Singapore net of unrecognized tax benefits and valuation allowance | $ 494.5 | $ 564.6 | |
Aircraft leasing incentive program participation expire date | Jul. 31, 2023 | ||
Aircraft leasing incentive program participation renew date | Jul. 31, 2028 | ||
Valuation allowance | $ 18.2 | 23.2 | |
Adjustment to the valuation allowance | 5 | 0.9 | $ 0.4 |
Tax-related interest benefit | $ 0.1 | ||
Cumulative liability for tax-related interest | 0 | 0 | |
U.S. Federal [Member] | |||
Income Taxes [Line Items] | |||
U.S. net operating losses | $ 1,900 | $ 1,600 | |
NOL Expirations | 2037 | ||
Income tax year subject to examination | 2016 2017 2018 2019 2020 2021 2022 | ||
Foreign [Member] | Singapore [Member] | |||
Income Taxes [Line Items] | |||
Income tax year subject to examination | 2016 2017 2018 2019 2020 2021 2022 | ||
Foreign [Member] | Hong Kong [Member] | |||
Income Taxes [Line Items] | |||
Income tax year subject to examination | 2016 2017 2018 2019 2020 2021 2022 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of differences between the U.S. federal statutory income tax rate and the effective income tax rates | |||
U.S. federal statutory income tax rate | 21% | 21% | 21% |
State and local taxes based on income, net of federal benefit | 1.20% | 1% | 0.80% |
Change in deferred foreign and state tax rates | (0.50%) | 0.50% | 0.60% |
Customer incentive | 3% | ||
Nondeductible compensation | 1% | 0.80% | 1.20% |
Other nondeductible expenses | 0.60% | 0.30% | 0.80% |
Tax effect of foreign operations | (0.80%) | (0.50%) | (1.20%) |
Other | 0.40% | 0.70% | 1.30% |
Effective income tax expense rate | 22.90% | 23.80% | 27.50% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss carryforwards and credits | $ 466,793 | $ 411,071 |
Accrued compensation | 31,231 | 38,085 |
Aircraft and other leases | 46,346 | 60,850 |
Interest expense limitation carryforward | 6,491 | |
Long-term debt | 3,916 | 599 |
Obsolescence reserve | 10,205 | 9,086 |
Stock-based compensation | 1,845 | 1,947 |
Other | 577 | |
Total deferred tax assets | 566,827 | 522,215 |
Valuation allowance | (18,239) | (23,185) |
Net deferred tax assets | 548,588 | 499,030 |
Deferred tax liabilities: | ||
Fixed assets | (927,774) | (767,273) |
Customer incentive | (2,512) | (5,094) |
Deferred maintenance | (33,416) | (39,712) |
Goodwill and other intangibles | (13,209) | (10,626) |
Operating lease right-of-use assets | (23,565) | (30,459) |
Other | (252) | |
Total deferred tax liabilities | (1,000,728) | (853,164) |
Deferred taxes included within following balance sheet line items: | ||
Deferred taxes | (452,495) | (354,798) |
Deferred costs and other assets | 355 | 664 |
Net deferred tax assets (liabilities) | $ (452,140) | $ (354,134) |
Income Taxes - Unrecognized Inc
Income Taxes - Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 29,524 | $ 27,440 | $ 22,383 |
Additions for tax positions related to the current year | 1,650 | 4,971 | |
Additions for tax positions related to prior years | 99 | 566 | 127 |
Reductions for tax positions related to prior years | (637) | (132) | (41) |
Ending balance | $ 28,986 | $ 29,524 | $ 27,440 |
Financial Instruments - Summary
Financial Instruments - Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Assets | ||||
Restricted cash | $ 10,597 | $ 10,052 | ||
Reported Value Measurement | ||||
Assets | ||||
Cash and cash equivalents | 763,314 | 910,965 | ||
Restricted cash | 10,597 | 10,052 | ||
Financial instruments assets | 773,911 | 921,017 | ||
Liabilities | ||||
Term loans and notes | 1,943,507 | 1,638,311 | ||
Convertible notes | 287,403 | [1] | 479,573 | [2] |
Financial instruments liabilities | 2,230,910 | 2,117,884 | ||
Estimate of Fair Value Measurement | ||||
Assets | ||||
Cash and cash equivalents | 763,314 | 910,965 | ||
Restricted cash | 10,597 | 10,052 | ||
Financial instruments assets | 773,911 | 921,017 | ||
Liabilities | ||||
Term loans and notes | 1,885,317 | 1,690,675 | ||
Convertible notes | 479,584 | [1] | 758,424 | [2] |
Financial instruments liabilities | 2,364,901 | 2,449,099 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 763,314 | 910,965 | ||
Restricted cash | 10,597 | 10,052 | ||
Financial instruments assets | 773,911 | 921,017 | ||
Liabilities | ||||
Convertible notes | 479,584 | [1] | 758,424 | [2] |
Financial instruments liabilities | 479,584 | 758,424 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Liabilities | ||||
Term loans and notes | 1,885,317 | 1,690,675 | ||
Financial instruments liabilities | $ 1,885,317 | $ 1,690,675 | ||
[1] Carrying value is net of debt issuance costs (see Note 10). Carrying value is net of debt discounts and debt issuance costs (see Note 10) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 2 | ||
Number of reportable segments | Segment | 2 | ||
Operating Revenue | $ | $ 4,549,104 | $ 4,030,829 | $ 3,211,116 |
DHL [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | $ | $ 532,900 | $ 672,300 | $ 563,600 |
Segment Reporting - Operating R
Segment Reporting - Operating Revenue and Direct Contribution For Our Reportable Business Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Revenue: | |||
Customer incentive asset amortization | $ (39,764) | $ (44,162) | $ (39,090) |
Other | 22,055 | 23,025 | 18,626 |
Total Operating Revenue | 4,549,104 | 4,030,829 | 3,211,116 |
Direct Contribution: | |||
Total Direct Contribution for Reportable Segments | 871,789 | 1,063,474 | 780,689 |
Unallocated income and (expenses), net | (380,405) | (409,721) | (201,016) |
Loss on early extinguishment of debt | (689) | (6,042) | (81) |
Unrealized loss on financial instruments | 0 | (113) | (71,053) |
Special charge | (16,215) | 0 | (16,265) |
Transaction-related expenses | (9,746) | (1,001) | (2,780) |
Gain (loss) on disposal of flight equipment | (3,098) | 794 | 7,248 |
Income before income taxes | 461,636 | 647,391 | 496,742 |
Interest income | (8,755) | (723) | (1,076) |
Interest expense | 81,692 | 107,492 | 114,635 |
Capitalized interest | (12,683) | (8,316) | (925) |
Loss on early extinguishment of debt | 689 | 6,042 | 81 |
Unrealized loss on financial instruments | 0 | 113 | 71,053 |
Other (income) expense, net | (185) | (40,705) | (185,742) |
Operating Income | 522,394 | 711,294 | 494,768 |
Airline Operations [Member] | |||
Operating Revenue: | |||
Operating Revenue | 4,395,905 | 3,888,601 | 3,066,399 |
Direct Contribution: | |||
Total Direct Contribution for Reportable Segments | 815,647 | 1,020,887 | 739,619 |
Dry Leasing [Member] | |||
Operating Revenue: | |||
Operating Revenue | 170,908 | 163,365 | 165,181 |
Direct Contribution: | |||
Total Direct Contribution for Reportable Segments | $ 56,142 | $ 42,587 | $ 41,070 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Disaggregated Airline Operations Segment Revenue by Customer and Service Type (Details) - Airline Operations [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | $ 4,395,905 | $ 3,888,601 | $ 3,066,399 |
Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | 3,811,981 | 3,465,044 | 2,556,032 |
AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | 583,924 | 423,557 | 510,367 |
Cargo [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | 4,124,635 | 3,581,790 | 2,755,752 |
Cargo [Member] | Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | 3,786,345 | 3,441,881 | 2,538,230 |
Cargo [Member] | AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | 338,290 | 139,909 | 217,522 |
Passenger [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | 271,270 | 306,811 | 310,647 |
Passenger [Member] | Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | 25,636 | 23,163 | 17,802 |
Passenger [Member] | AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Airline Operations Revenue | $ 245,634 | $ 283,648 | $ 292,845 |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization by Reportable Business Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Depreciation and amortization expense: | |||
Depreciation and Amortization | $ 303,220 | $ 281,209 | $ 257,672 |
Service [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | 303,220 | 281,209 | 257,672 |
Unallocated Depreciation and Amortization | 12,417 | 13,361 | 13,662 |
Service [Member] | Airline Operations [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | 212,178 | 188,251 | 165,769 |
Service [Member] | Dry Leasing [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | $ 78,625 | $ 79,597 | $ 78,241 |
Labor and Legal Proceedings - A
Labor and Legal Proceedings - Additional Information (Details) | 1 Months Ended | 12 Months Ended | ||
Oct. 22, 2022 USD ($) Plaintiffs | Mar. 31, 2022 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Loss Contingencies [Line Items] | ||||
Collective bargaining agreement period | 5 years | |||
Number of plaintiffs | Plaintiffs | 100 | |||
Compensatory damages | $ 159,000,000 | |||
Punitive damages per plaintiff | $ 30,000,000 | |||
Brazilian Customs Claim [Member] | ||||
Loss Contingencies [Line Items] | ||||
Brazilian claims in the aggregate | $ 1,900,000 | |||
Amounts on deposit for Brazilian claims included in deferred costs and other assets | $ 3,700,000 | $ 3,200,000 |
Long-term Incentive Compensat_3
Long-term Incentive Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
LTIP compensation expense | $ 13.5 | $ 13.8 | $ 21.4 | ||
Tax benefit recognized for stock-based compensation arrangements | $ 3.3 | 0.8 | 7.4 | ||
Restricted shares awards and time-based cash awards vesting period | Restricted stock units, which have been granted in units, and time-based cash awards generally vest and are expensed over one- or three- year periods. | ||||
Restricted shares unrecognized stock compensation cost | $ 13.7 | ||||
Restricted shares remaining weighted average life (in years) | 1 year 10 months 24 days | ||||
Total fair value, on vesting date, of restricted shares vested | $ 8.3 | 10.3 | 15.7 | ||
Performance shares vesting period | Performance share unit awards and performance-based cash awards are expensed over three years, which generally is the requisite performance period. Awards generally vest if (1) we achieve certain specified performance levels as compared to predetermined performance thresholds during a three-year period starting on January 1 of the grant year and ending on December 31 three years later, and (2) except in the event of death, disability, or an involuntary termination without cause, the employee remains employed by us through the determination date, which can be no later than four months following the end of the Performance Period. Payment with respect to a performance share unit award or performance-based cash award may be prorated in connection with certain employee terminations. | ||||
Total performance shares granted | 2,500,000 | ||||
Performance shares unrecognized compensation cost | $ 4.2 | ||||
Performance shares remaining weighted average life (in years) | 2 years 1 month 6 days | ||||
Total fair value, on vesting date, of performance shares vested | $ 11.3 | $ 9 | $ 7.8 | ||
Restricted Share Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 223,075 | ||||
Weighted average grant date fair value | $ 72.65 | $ 61.89 | $ 27.74 | ||
Time-based Cash Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognized compensation expenses | $ 4.4 | $ 5.8 | $ 3.9 | ||
Accruals | 3.3 | 4.9 | |||
Performance Cash Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognized compensation expenses | 0.5 | 21.5 | $ 18.9 | ||
Accruals | $ 36.7 | $ 39.7 | |||
Performance Share Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 72,091 | ||||
Weighted average grant date fair value | $ 78.46 | $ 0 | $ 53.85 | ||
2018 Amended Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Description of revised LTIP | In May 2019, our stockholders approved an amendment to our 2018 Incentive Plan (the “2018 Amended Plan”). | ||||
LTIP number of shares available for future award grants | 0 | 1,400,000 | |||
Number of shares authorized under the LTIP | 0 | ||||
Shares reserved for issuance under 2018 plan | 2,400,000 | ||||
Maximum term of award under the 2018 Amended plan | ten years | ||||
Shares of common stock available for future award grants | 1,000,000 | ||||
2018 Amended Plan and Predecessor Plans [Member] | Restricted Share Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 4,800,000 |
Long-term Incentive Compensat_4
Long-term Incentive Compensation Plans - Summary of Our Restricted Shares (Details) - Restricted Share Unit Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Unvested beginning balance | 363,249 | ||
Number of Shares, Granted | 223,075 | ||
Number of Shares, Vested | (188,227) | ||
Number of Shares, Forfeited | (7,365) | ||
Number of Shares, Unvested ending balance | 390,732 | 363,249 | |
Weighted-Average Grant-Date Fair Value, Unvested beginning balance | $ 43.79 | ||
Weighted-Average Grant-Date Fair Value, Granted | 72.65 | $ 61.89 | $ 27.74 |
Weighted-Average Grant-Date Fair Value, Vested | 44.07 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 48.18 | ||
Weighted-Average Grant-Date Fair Value, Unvested ending balance | $ 60 | $ 43.79 |
Long-term Incentive Compensat_5
Long-term Incentive Compensation Plans - Summary of Our Performance Shares (Details) - Performance Share Unit Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Unvested beginning balance | 229,538 | ||
Number of Shares, Granted | 72,091 | ||
Number of Shares, Adjustments | 135,405 | ||
Number of Shares, Vested | (234,895) | ||
Number of Shares, Forfeited | (769) | ||
Number of Shares, Unvested ending balance | 201,370 | 229,538 | |
Weighted-Average Grant-Date Fair Value, Unvested beginning balance | $ 53.31 | ||
Weighted-Average Grant-Date Fair Value, Granted | 78.46 | $ 0 | $ 53.85 |
Weighted-Average Grant-Date Fair Value, Adjustments | 0 | ||
Weighted-Average Grant-Date Fair Value, Vested | 47.95 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 56.92 | ||
Weighted-Average Grant-Date Fair Value, Unvested ending balance | $ 64.93 | $ 53.31 |
Profit Sharing, Incentive and_2
Profit Sharing, Incentive and Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Profit Sharing And Incentive Plans Details [Abstract] | |||
Accrual for profit sharing and incentive plans liabilities | $ 65.2 | $ 87 | |
Profit sharing and incentive plans expense recognized | $ 66.6 | 85.2 | $ 54.9 |
Retirement Plans Details [Abstract] | |||
Matching contributions vesting period | Employee contributions in the plan are vested at all times and our matching contributions are subject to a three-year cliff vesting provision, except for employees who are represented by a collective bargaining agreement and are subject to a three-year graded vesting provision. | ||
401(k) compensation expense | $ 64.6 | $ 23.5 | $ 18.9 |
Stock Repurchases - Additional
Stock Repurchases - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2022 | Feb. 28, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity Class Of Treasury Stock [Line Items] | |||||
Treasury stock repurchase remaining authorization | $ 200,000 | ||||
Payments for repurchase of stock | $ 100,000 | $ 0 | $ 0 | ||
Accelerated Share Repurchase Program [Member] | |||||
Equity Class Of Treasury Stock [Line Items] | |||||
Payments for repurchase of stock | $ 100,000 | ||||
Number of shares received | 1,061,257 | ||||
Number of additional shares received | 172,887 | ||||
Treasury stock, number of shares repurchased | 1,234,144 | ||||
Treasury stock, repurchase amount | $ 100,000 | ||||
Number of shares repurchased, average cost per share | $ 81.03 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net Income | $ 355,880 | $ 493,317 | $ 360,286 |
Plus: Interest expense on convertible notes, net of tax | 4,177 | 0 | 0 |
Unrealized loss on financial instruments, net of tax | 0 | 112 | 0 |
Diluted net income | $ 360,057 | $ 493,429 | $ 360,286 |
Denominator: | |||
Basic EPS weighted average shares outstanding | 28,463 | 28,910 | 26,408 |
Effect of dilutive: | |||
Effect of dilutive convertible notes | 4,806 | 782 | 0 |
Effect of dilutive warrants | 734 | 621 | 133 |
Effect of dilutive restricted stock | 187 | 230 | 149 |
Diluted EPS weighted average shares outstanding | 34,190 | 30,543 | 26,690 |
Earnings per share: | |||
Basic | $ 12.50 | $ 17.06 | $ 13.64 |
Diluted | $ 10.53 | $ 16.16 | $ 13.50 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Restricted shares and units in which performance or market conditions were not satisfied | 9.1 | 9.7 | 10.3 |
Warrants [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the calculation of diluted EPS | 0 | 0 | 12.1 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 2,809,337 | $ 2,261,539 | $ 1,792,179 |
Reclassification to interest expense | 91 | 920 | 1,178 |
Reclassification to loss on early extinguishment of debt | 639 | 890 | 0 |
Tax effect | (175) | (417) | |
Ending Balance | 3,064,776 | 2,809,337 | 2,261,539 |
Interest Rate Derivatives [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (520) | (1,913) | |
Reclassification to interest expense | 91 | 920 | |
Reclassification to loss on early extinguishment of debt | 639 | 890 | |
Tax effect | (175) | (417) | |
Ending Balance | 35 | (520) | (1,913) |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 9 | 9 | |
Reclassification to interest expense | 0 | 0 | |
Reclassification to loss on early extinguishment of debt | 0 | 0 | |
Tax effect | 0 | 0 | |
Ending Balance | 9 | 9 | 9 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (511) | (1,904) | (2,818) |
Ending Balance | $ 44 | $ (511) | $ (1,904) |