Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 29, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document period end date | Jun. 30, 2016 | |
Amendment flag | false | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 | |
Current fiscal year end date | --12-31 | |
Entity central index key | 1,135,185 | |
Entity current reporting status | Yes | |
Entity filer category | Large Accelerated Filer | |
Entity registrant name | ATLAS AIR WORLDWIDE HOLDINGS INC | |
Entity trading symbol | AAWW | |
Entity voluntary filers | No | |
Entity well known seasoned issuer | Yes | |
Entity common stock shares outstanding | 24,830,330 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 155,247 | $ 425,950 |
Short-term investments | 1,983 | 5,098 |
Restricted cash | 13,098 | 12,981 |
Accounts receivable, net of allowance | 151,212 | 164,308 |
Prepaid maintenance | 8,531 | 6,052 |
Prepaid expenses and other current assets | 50,456 | 37,548 |
Total current assets | 380,527 | 651,937 |
Property and Equipment | ||
Flight equipment | 3,766,496 | 3,687,248 |
Ground equipment | 63,961 | 58,487 |
Less: accumulated depreciation | (504,632) | (450,217) |
Purchase deposits for flight equipment | 131,600 | 39,678 |
Property and equipment, net | 3,457,425 | 3,335,196 |
Other Assets | ||
Long-term investments and accrued interest | 33,857 | 37,604 |
Deferred costs and other assets | 185,427 | 81,183 |
Intangible assets, net and goodwill | 117,152 | 58,483 |
Total Assets | 4,174,388 | 4,164,403 |
Current Liabilities | ||
Accounts payable | 60,730 | 93,278 |
Accrued liabilities | 302,889 | 293,138 |
Current portion of long-term debt | 167,093 | 161,811 |
Total current liabilities | 530,712 | 548,227 |
Other Liabilities | ||
Long-term debt | 1,735,266 | 1,739,496 |
Deferred taxes | 260,008 | 286,928 |
Financial instruments and other liabilities | 166,534 | 135,569 |
Total other liabilities | 2,161,808 | 2,161,993 |
Equity | ||
Preferred stock | 0 | 0 |
Common stock | 293 | 290 |
Additional paid-in-capital | 635,588 | 625,244 |
Treasury stock, at cost | (176,099) | (171,844) |
Accumulated other comprehensive loss | (5,515) | (6,063) |
Retained earnings | 1,027,601 | 1,006,556 |
Total stockholders' equity | 1,481,868 | 1,454,183 |
Total Liabilities and Equity | $ 4,174,388 | $ 4,164,403 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets | ||
Allowance for doubtful accounts receivable | $ 2,182 | $ 1,247 |
Consolidated Balance Sheets Sha
Consolidated Balance Sheets Shares (Parentheticals) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets | ||
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 | 50,000,000 | 50,000,000 |
Common stock shares issued | 29,262,235 | 28,955,445 |
Common stock shares outstanding | 24,828,079 | 24,636,651 |
Treasury stock shares | 4,434,156 | 4,318,794 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Revenue | ||||
ACMI | $ 211,722 | $ 189,255 | $ 394,462 | $ 378,302 |
Charter | 202,451 | 235,436 | 404,754 | 455,574 |
Dry leasing | 25,066 | 27,401 | 53,258 | 59,320 |
Other | 4,033 | 3,741 | 9,413 | 7,482 |
Total Operating Revenue | 443,272 | 455,833 | 861,887 | 900,678 |
Operating Expenses | ||||
Salaries, wages and benefits | 101,542 | 86,862 | 195,387 | 175,635 |
Aircraft fuel | 61,353 | 96,711 | 124,573 | 174,826 |
Maintenance, materials and repairs | 55,435 | 41,438 | 112,459 | 100,270 |
Aircraft rent | 36,723 | 36,811 | 73,760 | 71,072 |
Depreciation and amortization | 37,208 | 31,936 | 72,213 | 63,966 |
Travel | 32,010 | 23,830 | 62,333 | 44,643 |
Passenger and ground handling services | 22,019 | 21,353 | 42,898 | 41,316 |
Navigation fees, landing fees and other rent | 18,777 | 22,666 | 40,751 | 46,169 |
Loss on disposal of aircraft | 0 | 114 | 0 | 1,323 |
Special charge | 0 | 499 | 6,631 | (69) |
Transaction-related expenses | 16,788 | 0 | 17,581 | 0 |
Other | 40,593 | 32,329 | 72,420 | 63,273 |
Total Operating Expenses | 422,448 | 394,549 | 821,006 | 782,424 |
Operating Income | 20,824 | 61,284 | 40,881 | 118,254 |
Non-operating Expenses (Income) | ||||
Interest income | (1,405) | (4,425) | (3,009) | (8,913) |
Interest expense | 20,938 | 25,033 | 42,240 | 49,581 |
Capitalized interest | (690) | (177) | (1,047) | (203) |
Loss on early extinguishment of debt | 0 | 0 | 132 | 0 |
Unrealized gain on financial instruments | 26,475 | 0 | 26,475 | 0 |
Other expense (income), net | 48 | (284) | (192) | 391 |
Total Non-operating Expenses (Income) | 7,584 | (20,147) | (11,649) | (40,856) |
Income (loss) from continuing operations before income taxes | 28,408 | 41,137 | 29,232 | 77,398 |
Income tax expense (benefit) | 7,489 | 12,747 | 7,842 | 19,776 |
Income (loss) from continuing operations, net of taxes | 20,919 | 28,390 | 21,390 | 57,622 |
Loss from discontinued operations, net of taxes | (345) | 0 | (345) | 0 |
Net Income (loss) | 20,574 | 28,390 | 21,045 | 57,622 |
Net Income (loss) | $ 20,574 | $ 28,390 | $ 21,045 | $ 57,622 |
Earnings per share from continuing operations | ||||
Basic | $ 0.84 | $ 1.13 | $ 0.86 | $ 2.31 |
Diluted | (0.26) | 1.13 | (0.24) | 2.29 |
Earnings per share from discontinued operations | ||||
Basic | (0.01) | 0 | (0.01) | 0 |
Diluted | (0.01) | 0 | (0.01) | 0 |
Earnings per share: | ||||
Basic | 0.83 | 1.13 | 0.85 | 2.31 |
Diluted | $ (0.28) | $ 1.13 | $ (0.26) | $ 2.29 |
Weighted average shares: | ||||
Basic | 24,812 | 25,029 | 24,761 | 24,953 |
Diluted | 25,225 | 25,198 | 25,036 | 25,135 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other Comprehensive Income (Loss) | ||||
Net Income (loss) | $ 20,574 | $ 28,390 | $ 21,045 | $ 57,622 |
Interest rate derivatives: | ||||
Reclassification to interest expense | 441 | 638 | 895 | 1,288 |
Income tax expense | (171) | (244) | (347) | (492) |
Foreign currency translation: | ||||
Translation adjustment | 0 | (285) | 0 | (343) |
Accumulated Postretirement Benefit Obligation: | ||||
Other comprehensive income (loss) | 270 | 109 | 548 | 453 |
Comprehensive Income (Loss) | $ 20,844 | $ 28,499 | $ 21,593 | $ 58,075 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Activities: | ||
Income (loss) from continuing operations, net of taxes | $ 21,390 | $ 57,622 |
Loss from discontinued operations, net of taxes | (345) | 0 |
Net Income (loss) | 21,045 | 57,622 |
Adjustments to reconcile Net Income to net cash provided by operating activities: | ||
Depreciation and amortization | 81,818 | 73,263 |
Accretion of debt securities discount | (650) | (3,760) |
Provision for allowance for doubtful accounts | 321 | 46 |
Special charge, net of cash payments | 6,631 | (715) |
Loss on early extinguishment of debt | 132 | 0 |
Unrealized gain on financial instruments | (26,475) | 0 |
Loss on disposal of aircraft | 0 | 1,323 |
Deferred taxes | 7,667 | 19,773 |
Stock-based compensation expense | 10,961 | 9,837 |
Changes in: | ||
Accounts receivable | 39,354 | 10,135 |
Prepaid expenses, currenta ssets and other | (15,382) | 10,582 |
Accounts payable and accrued liabilities | (78,178) | (7,009) |
Net cash provided by operating activities | 47,244 | 171,097 |
Investing Activities: | ||
Capital expenditures | (27,239) | (22,117) |
Purchase deposits and payments for flight equipment | (186,213) | (62,841) |
Acquisition of business, net of cash acquired | (107,498) | 0 |
Changes in restricted cash | (117) | (1,450) |
Proceeds from investments | 7,512 | 2,394 |
Proceeds from disposal of aircraft | 0 | 24,625 |
Net cash used for investing activities | (313,555) | (59,389) |
Financing Activities: | ||
Proceeds from debt issuance | 84,790 | 224,500 |
Customer maintenance reserves received | 7,187 | 8,701 |
Customer maintenance reserves paid | 0 | (1,752) |
Proceeds from sale of warrants | 0 | 36,290 |
Payments for convertible note hedges | 0 | 52,903 |
Proceeds from stock option exercises | 0 | 1,193 |
Purchase of treasury stock | (4,255) | (6,314) |
Excess tax benefit from stock-based compensation expense | 168 | 588 |
Payment of debt issuance costs | (1,074) | (6,812) |
Payments of debt | (91,208) | (99,050) |
Net cash provided by (used for) financing activities | (4,392) | 104,441 |
Net increase (decrease) in cash and cash equivalents | (270,703) | 216,149 |
Cash and cash equivalents at the beginning of period | 425,950 | 298,601 |
Cash and cash equivalents at the end of period | 155,247 | 514,750 |
Non-cash Investing and Financing Activities: | ||
Acquisition of flight equipment included in Accounts payable and accrued liabilities | $ 15,448 | $ 6,940 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stockholders' Equity |
Balance at Dec. 31, 2014 | $ 1,417,795 | $ 286 | $ (145,322) | $ 573,133 | $ (9,572) | $ 999,270 | $ 1,417,795 |
Net Income (loss) | 57,622 | 0 | 0 | 0 | 0 | 57,622 | 57,622 |
Other comprehensive income (loss) | 453 | 0 | 0 | 0 | 453 | 0 | 453 |
Stock option and restricted stock compensation | 9,837 | 0 | 0 | 9,837 | 0 | 0 | 9,837 |
Purchase of shares of treasury stock | (6,314) | 0 | (6,314) | 0 | 0 | 0 | (6,314) |
Exercise of employee stock options | 1,193 | 0 | 0 | 1,193 | 0 | 0 | 1,193 |
Issuance of shares of restricted stock | 0 | 3 | 0 | (3) | 0 | 0 | 0 |
Equity component of convertible notes, net of tax | 32,233 | 0 | 0 | 32,233 | 0 | 0 | 32,233 |
Purchase of convertible note hedges, net of tax | (33,837) | 0 | 0 | (33,837) | 0 | 0 | (33,837) |
Issuance of warrants | 36,290 | 0 | 0 | 36,290 | 0 | 0 | 36,290 |
Tax benefit (expense) on restricted stock and stock options | 65 | 0 | 0 | 65 | 0 | 0 | 65 |
Balance at Jun. 30, 2015 | 1,515,337 | 289 | (151,636) | 618,911 | (9,119) | 1,056,892 | 1,515,337 |
Balance at Dec. 31, 2015 | 1,454,183 | 290 | (171,844) | 625,244 | (6,063) | 1,006,556 | 1,454,183 |
Net Income (loss) | 21,045 | 0 | 0 | 0 | 0 | 21,045 | 21,045 |
Other comprehensive income (loss) | 548 | 0 | 0 | 0 | 548 | 0 | 548 |
Stock option and restricted stock compensation | 10,961 | 0 | 0 | 10,961 | 0 | 0 | 10,961 |
Purchase of shares of treasury stock | (4,255) | 0 | (4,255) | 0 | 0 | 0 | (4,255) |
Issuance of shares of restricted stock | 0 | 3 | 0 | (3) | 0 | 0 | 0 |
Tax benefit (expense) on restricted stock and stock options | (614) | 0 | 0 | (614) | 0 | 0 | (614) |
Balance at Jun. 30, 2016 | $ 1,481,868 | $ 293 | $ (176,099) | $ 635,588 | $ (5,515) | $ 1,027,601 | $ 1,481,868 |
Consolidated Statements of Sto9
Consolidated Statements of Stockholders' Equity (Parentheticals) - shares | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements of Stockholders Equity | ||
Purchase of shares of treasury stock | 115,362 | 134,929 |
Exercise of employee stock options | 0 | 25,373 |
Issuance of shares of restricted stock | 306,790 | 352,437 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
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 Atlas Air, Inc. (“Atlas”), Southern Air Holdings, Inc. (“Southern Air”) and Polar Air Cargo LLC (“Old Polar”). Southern Air was acquired on April 7, 2016 (see Note 4). AAWW is also the par ent company of several subsidiaries related to our dry leasing services (collectively referred to as “Titan”) . AAWW has a 51% equity interest and 75% voting interest in Polar Air Cargo Worldwide, Inc. (“Polar”). We record our share of Polar’s results und er the equity method of accounting. 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 Af rica, 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 insuranc e (“ACMI”), as well as those through which we provide crew, maintenance and insurance, but not the aircraft (“CMI”); (ii) cargo and passenger charter services (“Charter”); and (iii) dry leasing aircraft and engines (“Dry Leasing” or “Dry Lease”). The acc ompanying unaudited consolidated financial statements and related notes (the “Financial Statements”) have been prepared in accordance with the U.S. Securities and Exchange Commission (the “SEC”) requirements for quarterly reports on Form 10-Q, and conseque ntly exclude certain disclosures normally included in audited consolidated financial statements prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). All significant intercompany accounts and transa ctions have been eliminated. The Financial Statements should be read in conjunction with the audited consolidated financial statements and the notes included in the AAWW Annual Report on Form 10-K for the year ended December 31, 2015 , which inclu des additional disclosures and a summary of our significant accounting policies. The December 31, 2015 balance sheet data was derived from that Annual Report. In our opinion, the Financial Statements contain all adjustments, consisting of normal recurring items, necessary to fairly state the financial position of AAWW and its consolidated subsidiaries as of June 30, 2016 , the results of operations for the three and six months ended June 30, 2016 and 2015 , comprehensive incom e for the three and six months ended June 30, 2016 and 2015 , cash flows for the six months ended June 30, 2016 and 2015 , and shareholders’ equity as of and for the six months ended June 30, 2016 and 2015 . Our quarterly results are subject to seasonal and other fluctuations, and the operating results for any quarter are therefore not necessarily indicative of results that may be otherwise expected for the entire year. Except for per share dat a, all dollar amounts are in thousands unless otherwise noted . Certain reclassifications have been made to prior periods’ consolidated financial statement amounts and related note disclosures to conform to the current year’s presentation. |
Recently Adopted Accounting Pro
Recently Adopted Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Recently Adopted Accounting Pronouncements [Abstract] | |
Recently Adopted Accounting Pronouncements | 2. Recent Accounting Pronouncement s In March 2016, the Financial Accounting Standards Board (“FASB”) amended its accounting guidance for share-based compensation. The amended guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes , forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. This amended guidance is effective as of the beginning of 2017 . E arly adoption is permitted. We are currently assessing the impact the amended guidance will ha ve on our financial statements. In February 2016, the FASB amended its accounting guidance for leases. The guidance requires a lessee to recognize assets a nd liabilities on the balance sheet arising from leases with terms greater than twelve months. While lessor accounting guidance is relatively unchanged, certain amendments were made to conform with changes made to lessee accounting and recently released revenue recognition guidance. The new guidance for leas es will continue to classify them as either finance or operating, with classification affecting the pattern of expense and income recognition in the statement of operations. It also requires additional quantitative and qualitative disclosures about leasin g arrangements. The amended guidance is effective as of the beginning of 2019 . E arly adoption is permitted. We are currently assessing the impact the amended guidance will ha ve on our financial statements. In May 2014, the FASB amended its accounting gu idance for revenue recognition. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and consideration that a company expects to receive fo r the services provided. It also requires additional disclosures necessary for the financial statement us ers to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. I n August 2015, the FAS B deferred the effective date by one year to the beginning of 2018. Early adoption is permitted , but not before the beginning of 2017 . While w e are still assessing the impact the amended guidance will have on our financial statements , we expect that revenue currently recognized based on flight departure will likely be recognized over time as the services are performed . |
DHL Investment and Polar
DHL Investment and Polar | 6 Months Ended |
Jun. 30, 2016 | |
DHL Investment And Polar [Abstract] | |
Related Parties | 3. Related Parties DHL Investment and Polar AAWW has a 51% equity intere st and 75% voting interest in 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 that we do not consolidate 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 (the “BSA”), Polar provides air cargo capacity to DHL. Atlas h as several agreements with Polar to provide ACMI, CMI , Dry Leasing, administrative, sales and ground support services to one another. W e do not have any financial exposure to fund debt obligations or operating losses of Polar, except for any liquidated da mages that we could incur under these agreements. The following table summarizes our transactions with Polar: For the Three Months Ended For the Six Months Ended Revenue and Expenses: June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Revenue from Polar $ 101,980 $ 96,947 $ 200,717 $ 191,205 Ground handling and airport fees paid to Polar $ 321 $ 436 $ 624 $ 1,227 Accounts receivable/payable as of: June 30, 2016 December 31, 2015 Receivables from Polar $ 5,936 $ 6,527 Payables to Polar $ 2,173 $ 4,660 Aggregate Carrying Value of Polar Investment as of: June 30, 2016 December 31, 2015 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 GATS We hold a 50% interest in GATS GP (BVI) Ltd. (“GATS”), a joint venture with an unrelated third party. The purpose of the joint venture is to purchase rotable parts and provide repair services for those parts, primarily for our 747-8F aircraft. The joint venture is a variable interest entity that we do not consolidate because we are not the primary beneficiary as we do not exercise financial control. As of June 30, 2016 and December 31, 2015 , our investment in GATS was $ 20.6 million and $ 20.7 million , respectively, and our maximum exposure to losses from the entity is limited to our investment, which is comprised prim arily of rotable inventory parts. GATS does not have any third-party debt obligations . We had Accounts payable to GATS of $ 2.3 million as of June 30, 2016 and December 31, 2015 . |
Business Combination
Business Combination | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Southern Air Holdings Acquisition | 4. Southern Air Holdings Acquisition On January 15, 2016, we entered into an Agreement and Plan of Merger to acquire all the outstanding shares of Southern Air (the “ Southern Acquisition ”). Southern Air is the parent company of several subsidiaries, including Southern Air Inc. and Florida West International Airways, Inc. (“Florida West”). The Southern Acquisition provided us with immediate entry into 777 and 737 aircraft operating platforms, with the potential for developing additional business with existing and new customers of both companies. We believe the platforms provided by these aircraft will augment our ability to offer customers the broadest array of aircraft and operating services for domestic, regional and international applications. Sou thern Air currently flies five 777-200 LR F and five 737-400F aircraft unde r CMI agreements for DHL . The Southern Acquisition was completed on April 7, 2016 for total estimated consideration of $ 105.5 million, net of cash acquired, subject to working capita l and other adjustments , consisting of the following: Fair value of consideration Cash paid, net of $15,615 cash acquired $ 107,498 Estimated working capital adjustment (2,406) Estimated other adjustments 372 Total estimated consideration $ 105,464 Tangible and identifiable intangible assets acquired and liabilities assumed were recorded at fair value as of the acquisition date. The current fair values of assets acquired and liabilities assumed are considered preliminary until we obtain final information regarding their fair values. We expect to finalize the valuation as soon as practicable, but not later than one year from the acquisition date. The following table summarizes the preliminary amounts recognized for fair values of the assets ac quired and liabilities assumed as of April 7, 2016: Estimated Fair Value Accounts receivable, net $ 21,753 Prepaid expenses and other current assets 8,331 Property and equipment 6,355 Intangible assets and goodwill 63,345 Deferred income taxes 35,522 Other assets 1,498 Total assets acquired $ 136,804 Accounts payable $ 22,438 Accrued liabilities 8,902 Total liabilities assumed 31,340 Net assets acquired $ 105,464 The fair values and useful lives for all intangible assets and goodwill as of April 7, 2016 are as follows: Estimated Useful Lives Estimated Fair Value Customer relationship 16 years $ 26,280 Trade name 1.5 years 700 Goodwill Indefinite 36,365 Total intangible assets and goodwill $ 63,345 Customer relationship represents the underlying relationship and agreements with DHL. The trade name relates to the Southern Air brand. Goodwill is not deductible for tax purposes and is primarily attributable to the expanded market opportunities expected from combining the service offerings of Southern Air with ours, as well as the employee work force acquired. Southern Air’s results of operations and goodwill are reflected in our ACMI segment. Southern Air’s results of operations have been inclu ded in our unaudited consolidated statements of operations from the date of acquisition. For the three and six months ended June 30, 2016 , our consolidated results include Southern Air’s operating revenue of $ 25.7 million. For the three and six months ended June 30, 2016 , we incurred Transaction-related expenses of $ 13.3 million and $ 14.1 million, respectively, primarily related to: compensation costs, including employee termination benefits; professional fees; and integration costs associated with the acquisition. A summary of the employee termination benefit liability, which is expected to be paid by the first quarter of 2017, is as follows: Employee Termination Benefits Transaction-related expenses $ 2,667 Cash payments (1,554) Liability as of June 30, 2016 $ 1,113 The unaudited pro forma operating revenue for the three months ended June 30, 2016 and June 30, 2015 was $ 444.9 million and $ 478.0 million, respectively. The unaudited pro forma operating revenue for the six months ended June 30, 2016 and June 30, 2015 was $ 889.0 million and $ 942.6 million, respectively. This pro forma information has been calculated as if the acquisition had taken place on January 1, 2015 and is not necessarily indicative of the net sales that actually would have been achieved. This information includes adjustments to conform with our accounting policies. The earnings of Southern Air were not material and, accordingly, pro forma and actual earnings information have not been presented. As part of integrating Southern Air, management decided and committed to pursue a plan to sell Florida West. As a result, the financial results for Florida West are presented as a discontinued operation and the assets and liabilities of Florida West are classified as held for sale. We expect to sell the business in the second half of 2016. A s of June 30, 2016 , Florida West’s assets held for sale, which are included in Prepaid expenses and other current assets, were $ 4.5 million. |
Special Charge
Special Charge | 6 Months Ended |
Jun. 30, 2016 | |
Special Charge [Abstract] | |
Special Charge | 5. Special Charge During the first quarter of 201 6 , we classified five CF6-80 engines as held for sale, recognized a n impairment loss of $ 6.5 million and ceased depreciation on the engines . The carrying value of all CF6-80 engines held for sale was $ 6.5 million at June 30, 2016 , which was included within Prepaid expenses and other current assets in the consolidated balance sheets. The sale of two engines was completed during the second quarter of 2016 and the remaining five engines are expected to be com pleted during the second half of 201 6 . |
Amazon Warrant
Amazon Warrant | 6 Months Ended |
Jun. 30, 2016 | |
Warrant abstract | |
Amazon Warrant | 6. Amazon In May 2016, we entered into agreements with Amazon.com, Inc. and its subsidiary, Amazon Fulfillment Services, Inc., (collectively “Amazon”), which will include CMI operation of 20 Boeing 767-300 freighter aircraft for Amazon by Atlas, as well as Dry Leasing by Titan . The Dry Leases will have a term of ten years, while the CMI operations will be for seven years (with extension provisions for a total term of ten years). The first aircraft is expected to be placed in service duri ng the third quarter of 2016 with the remainder expected to be placed in service through 2018. In conjunction with these agreements, we granted Amazon a warrant providing the right to acquire up to 20% of our outstanding common shares , after giving effect to the issuance of shares pursuant to the warrants, at an exercise price of $ 37.50 per share. A portion of the warrant, representing the right to purchase 3.75 million shares, vested immediately upon issuance of the warrant and the remainder of the warran t, representing the right to purchase 3.75 million shares, will vest proportionately as the underlying operations for aircraft 11-20 commence. The warrant will be exercisable in accordance with its terms through 2021 . The agreements also provide incenti ves 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 , after giving effect to the issuance of shares pursuant to the warrants, for an exercise price of $ 37.50 per share. This warrant to purchase 3.75 million shares will vest in conjunction with payments by Amazon for additional business with us. The warrant will be exercisable in accordance with its terms throug h 2023 . A $ 92.9 million fair value of the vested portion of the warrant issued to Amazon as of May 4, 2016 was recorded as a warrant liability within Financial instruments and o ther l iabilities (the “Amazon Warrant”) . The initial fair value of the warra nt was recognized as a customer incentive asset within Deferred costs and other assets, net and will b e amortized as a reduction of revenue in proportion to the amount of revenue recognized. The Amazon Warrant liability is marked-to-market at the end of e ach reporting period with changes in fair value recorded in Other non-operating expenses . We utilized a Monte Carlo simulation approach to estimate the f air v alue of the Amazon W arrant which requires inputs such as our common stock price, strike price, es timated stock price volatility and risk-free interest rate, among other assumptions. During the three and six month periods ended June 30, 2016, we recognized an unrealized gain on the Amazon Warrant of $26.5 million. The fair value of the Amazon W arrant liability was $ 66.4 million as of June 30, 2016. |
Accrued Liabilities
Accrued Liabilities | 6 Months Ended |
Jun. 30, 2016 | |
Accrued Liabilities Tables [Abstract] | |
Accrued Liabilities | 7 . Accrued Liabilities Accrued liabilities consisted of the following as of: June 30, 2016 December 31, 2015 Customer maintenance reserves $ 74,339 $ 70,252 Maintenance 62,508 52,070 Salaries, wages and benefits 36,380 51,649 U.S. class action settlement 35,000 35,000 Aircraft fuel 19,575 12,983 Deferred revenue 7,518 12,702 Other 67,569 58,482 Accrued liabilities $ 302,889 $ 293,138 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2016 | |
Debt [Abstract] | |
Debt | 8. Debt Term Loans In February 2016 , we borrowed $ 14.8 million related to the conversion of a 767-300BDSF aircraft under a n eight -year term loan with a final payment of $ 3.8 million due in February 2024 (the “First 2016 Term Loan”). The First 2016 Term Loan, which is secured by a mortgage against aircraft tail number N 642 GT , contains customary covenants and events of default and accrues interest at a fixed rate of 3. 19 %, with principal and interest payable month ly. In June 2016 , we borrowed $ 70.0 m illion under a five -year term loan with a final payment of $ 30.2 million due in June 2021 (the “Second 2016 Term Loan”). The Second 2016 Term Loan, which is secured by a mortgage against six spare GEnx engines , contains customary covenants and events of default and accrues interest at a n initial variable rate of 2.93 %, with principal and interest payable month ly. The Second 2016 Term Loan was converted to a fixed rate loan in July 2016 at a rate of 3.12 %, with principal and interest payable quarterly. Convertible Notes In June 2015, we issued $ 224.5 million aggregate principal amount of convertible senior notes (the “Convertible Notes”) in a n underwritten public offering. The Convertible Notes are senior unsec ured obligations and accrue interest payable semiannually on June 1 and December 1 of each year at a fixed rate of 2.25%. The Convertible Notes will mature on June 1, 2022, unless earlier converted or repurchased pursuant to their terms. Proceeds from th e issuance of the Convertible Notes were used to refinance higher-rate debt related to five 747-400 freighter aircraft that had an average cash coupon of 8.1%. As of June 30, 2016 , the remaining life of the Convertible Notes is 6.3 years and consisted of the following: Liability component: Gross proceeds $ 224,500 Less: debt discount, net of amortization (46,218) Less: debt issuance cost, net of amortization (4,488) Net carrying amount $ 173,794 Equity component (1) $ 52,903 (1) Included in Additional paid-in capital on the consolidated balance sheet as of June 30, 2016. The following table presents the amount of interest expense recognized related to the Convertible Notes: For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Contractual interest coupon $ 1,263 $ 393 $ 2,526 $ 393 Amortization of debt discount 1,592 467 3,159 467 Amortization of debt issuance costs 168 51 335 51 Total interest expense recognized $ 3,023 $ 911 $ 6,020 $ 911 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | 9. Income Taxes Our effective income tax rate s were 26.4% and 31.0% for the three months ended June 30, 2016 and June 30, 2015 , respectively. Our effective income tax rate s were 26.8% and 25.6% for the six months ended June 30, 2016 and June 30, 2015 , respectively. The effective rates for both periods differed from the U.S. federal statutory rate due to the income tax impact of foreign operations taxed at different rates, our a ssertion to indefinitely reinvest the net earnings of certain foreign subsidiaries outside the U.S., U.S. state income taxes, the nondeductibility of certain expenses for tax purposes, adjustments to our liability for uncertain tax positions, and the relat ionship of these items to our projected operating results for the year. In addition, t he effective rate for the six months ended June 30, 2015 differed from the U.S. federal statutory rate primarily due to an income tax benefit of $ 4.0 million , net of reserves, related to extraterritorial income (“ETI”) from leasing certain of our aircraft. For interim accounting purposes, we recognize income taxes using an estimated annual effective tax rate. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments [Abstract] | |
Financial Instruments | 10 . 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 informa tion to measure fair value. The carrying value of Cash and cash equivalents, Short-term investments and Restricted cash is based on cost, which approximates fair value. Long-term investments consist of debt securities for which we have both the ability a nd the intent to hold until maturity. These investments are classified as held-to-maturity and reported at amortized cost. The fair value of our Long-term investments is based on a discounted cash flow analysis using the contractual cash flows of the inv estments and a discount rate derived from unadjusted quoted interest rates for debt securities of comparable risk. Such debt securities represent investments in Pass-Through Trust Certificates (“PTCs”) related to enhanced equipment trust certificates (“EE TCs”) issued by Atlas in 1998, 1999 and 2000. The fair value of our term loans, notes guaranteed by the Export-Import Bank of the United States (“Ex-Im Bank”) and EETCs 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 fair value of the Amazon Warrant is based on a Monte Carlo simulation which requires inputs such as our common stock price, strike price, estimated stock price volatility, and risk-free interest rate, among other assumptions . The following table summarizes the carrying value , estimated fair value and classification of our financial instruments as of: June 30, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 155,247 $ 155,247 $ 155,247 $ - $ - Short-term investments 1,983 1,983 - - 1,983 Restricted cash 13,098 13,098 13,098 - - Long-term investments and accrued interest 33,857 40,389 - - 40,389 $ 204,185 $ 210,717 $ 168,345 $ - $ 42,372 Liabilities Term loans $ 1,050,880 $ 1,093,669 $ - $ - $ 1,093,669 Ex-Im Bank guaranteed notes 653,580 696,160 - - 696,160 EETCs 24,105 28,526 - - 28,526 Convertible Notes 173,794 216,081 216,081 - - Amazon Warrant 66,413 66,413 - 66,413 - $ 1,968,772 $ 2,100,849 $ 216,081 $ 66,413 $ 1,818,355 December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 425,950 $ 425,950 $ 425,950 $ - $ - Short-term investments 5,098 5,098 - - 5,098 Restricted cash 12,981 12,981 12,981 - - Long-term investments and accrued interest 37,604 45,867 - - 45,867 $ 481,633 $ 489,896 $ 438,931 $ - $ 50,965 Liabilities Term loans $ 1,013,265 $ 1,049,785 $ - $ - $ 1,049,785 Ex-Im Bank guaranteed notes 689,720 715,890 - - 715,890 EETCs 28,022 30,074 - - 30,074 Convertible Notes 170,300 185,325 185,325 - - $ 1,901,307 $ 1,981,074 $ 185,325 $ - $ 1,795,749 The following table presents the carrying value, gross unrealized gain (loss) and fair value of our long-term investments and accrued interest by contractual maturity as of : June 30, 2016 December 31, 2015 Carrying Value Gross Unrealized Gain (Loss) Fair Value Carrying Value Gross Unrealized Gain (Loss) Fair Value Debt securities Due after one but within five years 33,857 6,532 40,389 37,604 8,263 45,867 Total $ 33,857 $ 6,532 $ 40,389 $ 37,604 $ 8,263 $ 45,867 |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | 11 . Segment Reporting Our business is organized into three operating segments based on our service offerings: ACMI, Charter and Dry Leasing. All segments are directly or indirectly engaged in the business of air transportation services but have different commercial and economic characteristics. Each operating segment is separately reviewed by our chief operating decision maker to assess operating results and make resource allocation decisions. We do not ag gregate our operating segments and , therefore , our operating seg ments are our reportable segments. We use an economic performance metric (“Direct Contribution”) that shows the profitability of each segment after allocation of direct operating and ownership costs. Direct Contribution represents Income from continuing operations before income t axes excluding the following: Special charges, Transaction -related expenses, nonrecurring items, Losses (gains) on the disposal of aircraft, Losses on early extinguishment of debt, Unrealized losses (gains) on financial instruments, Gains on investments an d U nallocated 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 expense s 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 and other non - operating costs. T he following table sets forth Operating Revenue and Direct Contribution for our reportable segments reconciled to Operating Income and Income from continuing operations before i ncome t axes: For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Operating Revenue: ACMI $ 211,722 $ 189,255 $ 394,462 $ 378,302 Charter 202,451 235,436 404,754 455,574 Dry Leasing 25,066 27,401 53,258 59,320 Other 4,033 3,741 9,413 7,482 Total Operating Revenue $ 443,272 $ 455,833 $ 861,887 $ 900,678 For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Direct Contribution: ACMI $ 45,490 $ 51,157 $ 70,230 $ 91,059 Charter 24,856 25,019 45,633 55,478 Dry Leasing 6,878 10,894 17,286 26,419 Total Direct Contribution for Reportable Segments 77,224 87,070 133,149 172,956 Add back (subtract): Unallocated income and expenses, net (58,503) (45,320) (106,048) (94,304) Loss on early extinguishment of debt - - (132) - Unrealized gain on financial instruments 26,475 - 26,475 - Special charge - (499) (6,631) 69 Transaction-related expenses (16,788) - (17,581) - Loss on disposal of aircraft - (114) - (1,323) Income from continuing operations before income taxes 28,408 41,137 29,232 77,398 Add back (subtract): Interest income (1,405) (4,425) (3,009) (8,913) Interest expense 20,938 25,033 42,240 49,581 Capitalized interest (690) (177) (1,047) (203) Loss on early extinguishment of debt - - 132 - Unrealized gain on financial instruments (26,475) - (26,475) - Other expense (income), net 48 (284) (192) 391 Operating Income $ 20,824 $ 61,284 $ 40,881 $ 118,254 We are exposed to a concentration of revenue from the U.S. Military Air Mobility Command ( the “AMC”) and Polar (see Note 3 for further discussion regarding Polar) . No other customer accounted for more than 10.0% of our Total Operating Revenue. Revenue from the AMC was $ 119.6 million for the three months ended June 30, 2016 and $ 114.0 million for the three months ended June 30, 2015 . Revenue from the AMC was $ 230.7 million for the six months ended June 30, 2016 a nd $ 204.1 million for the six months ended June 30, 2015 . Accounts receivable from the AMC were $ 25.3 million and $ 26.3 million as of June 30, 2016 and December 31, 2015 , respectively. We have not experien ced any credit issues with either of these customers. |
Labor and Legal Proceedings
Labor and Legal Proceedings | 6 Months Ended |
Jun. 30, 2016 | |
Labor And Legal Proceedings [Abstract] | |
Legal Proceedings | 12. Legal Proceedings Matters Related to Alleged Pricing Practices T he Company and Old Polar were named defendants, along with a number of other cargo carriers, in several class actions in the U . S . arising from allegations about the pricing practices of Old Polar and a number of air cargo carriers. These actions were all centralized in the U . S . District Court for the Eastern District of New York. Polar was later joined as an additional defendant. The consolidated complaint alleged , among other things, that the defendants, including the Company and Old Polar, manipulated the market price for air cargo services sold domestically and abroad through the use of surcharges, in violation of U . S . , state, and European Union antitrust laws. The suit sought treble damages and attorneys’ fees. On January 7, 2016, the Company, Old Polar, and Polar entered into a settlement agreement to settle all claims by participating class members against the Company, Old Polar and Polar. T he Company, Pola r, and Old Polar deny any wrongdoing, and there is no admission of any wrongdoing in the settlement agreement. Pursuant to the settlement agreement, the Company, Old Polar and Polar have agreed to make installment payments over three years to settle the p laintiffs’ claims, with payments of $ 35.0 million paid on January 15, 2016, $ 35.0 million due on or before January 15, 2017, and $ 30.0 million due on or before January 15, 2018. The U . S . District Court for the Eastern District of New York issued an order granting preliminary approval of the settlement on January 12, 2016. The settlement is still subject to final court approval. In the United Kingdom, several groups of named claimants have brought suit against British Airways in connection with the same alleged pricing practices at issue in the proceedings described above and are seeking damages allegedly arising from that conduct. British Airways has filed claims in the lawsuit against Old Polar and a number of air cargo carriers for contribution should British Airways be found liable to claimants. Old Polar’s formal statement of defense was filed on March 2, 2015. On October 14, 2015, the U.K. Court of Appeal released decisions favorable to the defendant and contributory defendants on two matters under appeal. Permission has been sought to appeal the U.K. Court of Appeal's decisions to the U.K. Supreme Court. In December 2015, certain claimants settled with British Airways removing a significant portion of the claim against British Airways and therefore reducing the potential contribution required by the other airlines, including Old Polar. On December 16, 2015, the European General Court released decisions annulling decisions that the European Commission made against the majority of the air cargo carriers. The European Commission has not appealed the General Court decision, but may still reopen its investigation or reissue a revised decision, either of which would have a significant impact on the proceedings in the U.K. court. Future procedures, including the pretrial disclosure process, are undergoing court review. We are unable to reasonably predict the outcome of the litigation. In the Netherlands, Stichting Cartel Compensation, successor in interest to claims of various shippers, has filed suit in the district court in Amsterd am against British Airways, KLM, Martinair , Air France, Lufthansa and Singapore Airlines seeking recovery for damages purportedly arising from the same pricing practices at issue in the proceedings described above. In response, British Airways, KLM, Marti nair , Air France and Lufthansa filed third-party indemnification lawsuits against Old Polar and Polar seeking indemnification in the event the defendants are found to be liable in the main proceedings. Old Polar and Polar entered their initial court appea rances on September 30, 2015. Like the U.K. proceedings, the Netherlands proceedings are likely to be affected and have been delayed by the European General Court decisions of December 16, 2015. We are unable to reasonably predict the outcome of the liti gation. If the Company, Old Polar or Polar were to incur an unfavorable outcome in connection with the U.K. or Netherlands proceedings, 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 such matters 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 on board the aircraft upon arrival and therefore were improperly brought into Brazil. The two claims, which also seek unpaid c ustoms duties, taxes and penalties from the date of the alleged infraction, are approximately $ 6.1 million in aggregate based on June 30, 2016 exchange rates. In both cases, we believe that the amounts claimed are substantially overstated d ue to a calculation error when considering the type and amount of goods allegedly missing, among other things. Furthermore, we may seek appropriate indemnity from the shipper in each claim as may be feasible. 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. As required to defend such claims, we have made deposits pending resolution of these matters. T he balances were $ 4.8 million as of June 30, 2016 and $ 3.8 million as of December 31, 2015 , and are included in Deposits 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. Accruals As of June 30, 2016, the Company had a remaining accrual of $65.0 million related to the U.S. class action settlement. During the second quarter of 2016, the Company recorded an accrual of $6.7 million within Other operating expense in the consolidated st atement of operations related to pending litigation outside of the U.S. Other We have certain other contingencies incident to the ordinary course of business. Management believes that the ultimate disposition of such other contingencies is not expected to materially affect our financial condition, results of operations or cash flows. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. Earnings Per Share Basic earnings per share (“EPS”) represent income (loss) divided by the weighted average number of common shares outstanding during the measurement period. Diluted EPS represent 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. A nti-dilutive sha res related to warrants and stock options that were out of the money and excluded for the three and six months ended June 30, 2016 and 2015 were 3.0 million. The calculations of basic and diluted EPS were as follows: For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Numerator: Income from continuing operations, net of taxes $ 20,919 $ 28,390 $ 21,390 $ 57,622 Less: Unrealized gain on financial instruments, net of tax (27,513) - (27,513) - Diluted income (loss) from continuing operations, net of tax $ (6,594) $ 28,390 $ (6,123) $ 57,622 Denominator: Basic EPS weighted average shares outstanding 24,812 25,029 24,761 24,953 Effect of dilutive warrant 273 - 137 - Effect of dilutive stock options and restricted stock 140 169 138 182 Diluted EPS weighted average shares outstanding 25,225 25,198 25,036 25,135 Earnings per share from continuing operations: Basic $ 0.84 $ 1.13 $ 0.86 $ 2.31 Diluted $ (0.26) $ 1.13 $ (0.24) $ 2.29 Earnings per share from discontinued operations: Basic $ (0.01) $ - $ (0.01) $ - Diluted $ (0.01) $ - $ (0.01) $ - Earnings per share: Basic $ 0.83 $ 1.13 $ 0.85 $ 2.31 Diluted $ (0.28) $ 1.13 $ (0.26) $ 2.29 The calculation of EPS does not include restricted share units and warrants in which performance or market conditions were not satisfied of 7.9 million for the three and six months ended June 30, 2016 , respectively, and 0.3 million for the three and six months ended June 30, 2015 . |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2016 | |
Leases And Aircraft Purchase Commitments [Abstract] | |
Leases and Aircraft Purchase Commitments | 14. Commitments As of June 30, 2016 , our estimated payments remaining for flight equipment purchase commitments range between $ 140.0 to $ 170.0 million. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 15 . Accumulated Other Comprehensive Income (Loss) The following table summarizes t he components of Accumulated other comprehensive income (loss): Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2014 $ (9,924) $ 352 $ (9,572) Reclassification to interest expense 1,288 - 1,288 Translation adjustment - (343) (343) Tax effect (492) - (492) Balance as of June 30, 2015 $ (9,128) $ 9 $ (9,119) Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2015 $ (6,072) $ 9 $ (6,063) Reclassification to interest expense 895 - 895 Tax effect (347) - (347) Balance as of June 30, 2016 $ (5,524) $ 9 $ (5,515) Interest Rate Derivatives As of June 30, 2016 , there wa s $ 9.0 million of unamortized net realized loss before taxes remaining in Accumulated other comprehensive income (loss) related to terminated forward-starting interest rate swaps , which had been designated as cash flow hedges to effectively fix the interest rates on two 747-8F financings in 2011 and three 777-200LRF financings in 2014. The net loss is amortized and reclassified into Interest expense over the remaining life of the r elated debt. Net realized losses reclassified into earnings were $ 0.4 million and $ 0.6 million for the three months ended June 30, 2016 and 2015 , respectively. Net realized losses reclass ified into earnings were $ 0.9 million and $ 1.3 million for the six months ended June 30, 2016 and 2015 , respectively. Net realized losses expected to be reclas sified into earnings within the next 12 months are $ 1.7 million as of June 30, 2016 . |
DHL Investment and Polar (Table
DHL Investment and Polar (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
DHL Investment And Polar Tables [Abstract] | |
Summary of Our Transactions with Polar | For the Three Months Ended For the Six Months Ended Revenue and Expenses: June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Revenue from Polar $ 101,980 $ 96,947 $ 200,717 $ 191,205 Ground handling and airport fees paid to Polar $ 321 $ 436 $ 624 $ 1,227 Accounts receivable/payable as of: June 30, 2016 December 31, 2015 Receivables from Polar $ 5,936 $ 6,527 Payables to Polar $ 2,173 $ 4,660 Aggregate Carrying Value of Polar Investment as of: June 30, 2016 December 31, 2015 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 |
Business combination considerat
Business combination consideration (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Fair value of consideration in a business combination | Fair value of consideration Cash paid, net of $15,615 cash acquired $ 107,498 Estimated working capital adjustment (2,406) Estimated other adjustments 372 Total estimated consideration $ 105,464 |
Business combination acquierd a
Business combination acquierd assets and liabilities (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | Estimated Fair Value Accounts receivable, net $ 21,753 Prepaid expenses and other current assets 8,331 Property and equipment 6,355 Intangible assets and goodwill 63,345 Deferred income taxes 35,522 Other assets 1,498 Total assets acquired $ 136,804 Accounts payable $ 22,438 Accrued liabilities 8,902 Total liabilities assumed 31,340 Net assets acquired $ 105,464 |
Business combination intangible
Business combination intangible assets (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Business combination intangible assets acquired | Estimated Useful Lives Estimated Fair Value Customer relationship 16 years $ 26,280 Trade name 1.5 years 700 Goodwill Indefinite 36,365 Total intangible assets and goodwill $ 63,345 |
Business combination terminatio
Business combination termination benefits (Table) | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Employee termination benefits | Employee Termination Benefits Transaction-related expenses $ 2,667 Cash payments (1,554) Liability as of June 30, 2016 $ 1,113 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accrued Liabilities Tables [Abstract] | |
Accrued Liabilities | June 30, 2016 December 31, 2015 Customer maintenance reserves $ 74,339 $ 70,252 Maintenance 62,508 52,070 Salaries, wages and benefits 36,380 51,649 U.S. class action settlement 35,000 35,000 Aircraft fuel 19,575 12,983 Deferred revenue 7,518 12,702 Other 67,569 58,482 Accrued liabilities $ 302,889 $ 293,138 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Debt Tables [Abstract] | |
Schedule of Notes | Liability component: Gross proceeds $ 224,500 Less: debt discount, net of amortization (46,218) Less: debt issuance cost, net of amortization (4,488) Net carrying amount $ 173,794 Equity component (1) $ 52,903 (1) Included in Additional paid-in capital on the consolidated balance sheet as of June 30, 2016. |
Summary of Interest Expense Recognized | For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Contractual interest coupon $ 1,263 $ 393 $ 2,526 $ 393 Amortization of debt discount 1,592 467 3,159 467 Amortization of debt issuance costs 168 51 335 51 Total interest expense recognized $ 3,023 $ 911 $ 6,020 $ 911 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Financial Instruments Tables [Abstract] | |
Carrying Amount, Estimated Fair Value and Classification of Our Financial Instruments | June 30, 2016 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 155,247 $ 155,247 $ 155,247 $ - $ - Short-term investments 1,983 1,983 - - 1,983 Restricted cash 13,098 13,098 13,098 - - Long-term investments and accrued interest 33,857 40,389 - - 40,389 $ 204,185 $ 210,717 $ 168,345 $ - $ 42,372 Liabilities Term loans $ 1,050,880 $ 1,093,669 $ - $ - $ 1,093,669 Ex-Im Bank guaranteed notes 653,580 696,160 - - 696,160 EETCs 24,105 28,526 - - 28,526 Convertible Notes 173,794 216,081 216,081 - - Amazon Warrant 66,413 66,413 - 66,413 - $ 1,968,772 $ 2,100,849 $ 216,081 $ 66,413 $ 1,818,355 December 31, 2015 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 425,950 $ 425,950 $ 425,950 $ - $ - Short-term investments 5,098 5,098 - - 5,098 Restricted cash 12,981 12,981 12,981 - - Long-term investments and accrued interest 37,604 45,867 - - 45,867 $ 481,633 $ 489,896 $ 438,931 $ - $ 50,965 Liabilities Term loans $ 1,013,265 $ 1,049,785 $ - $ - $ 1,049,785 Ex-Im Bank guaranteed notes 689,720 715,890 - - 715,890 EETCs 28,022 30,074 - - 30,074 Convertible Notes 170,300 185,325 185,325 - - $ 1,901,307 $ 1,981,074 $ 185,325 $ - $ 1,795,749 |
Carrying Value, Gross Unrealized Gain (Loss) and Fair Value of Our Long-term Investments by Contractual Maturity | June 30, 2016 December 31, 2015 Carrying Value Gross Unrealized Gain (Loss) Fair Value Carrying Value Gross Unrealized Gain (Loss) Fair Value Debt securities Due after one but within five years 33,857 6,532 40,389 37,604 8,263 45,867 Total $ 33,857 $ 6,532 $ 40,389 $ 37,604 $ 8,263 $ 45,867 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting Tables [Abstract] | |
Operating Revenue and Direct Contribution For Our Reportable Business Segments | For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Operating Revenue: ACMI $ 211,722 $ 189,255 $ 394,462 $ 378,302 Charter 202,451 235,436 404,754 455,574 Dry Leasing 25,066 27,401 53,258 59,320 Other 4,033 3,741 9,413 7,482 Total Operating Revenue $ 443,272 $ 455,833 $ 861,887 $ 900,678 For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Direct Contribution: ACMI $ 45,490 $ 51,157 $ 70,230 $ 91,059 Charter 24,856 25,019 45,633 55,478 Dry Leasing 6,878 10,894 17,286 26,419 Total Direct Contribution for Reportable Segments 77,224 87,070 133,149 172,956 Add back (subtract): Unallocated income and expenses, net (58,503) (45,320) (106,048) (94,304) Loss on early extinguishment of debt - - (132) - Unrealized gain on financial instruments 26,475 - 26,475 - Special charge - (499) (6,631) 69 Transaction-related expenses (16,788) - (17,581) - Loss on disposal of aircraft - (114) - (1,323) Income from continuing operations before income taxes 28,408 41,137 29,232 77,398 Add back (subtract): Interest income (1,405) (4,425) (3,009) (8,913) Interest expense 20,938 25,033 42,240 49,581 Capitalized interest (690) (177) (1,047) (203) Loss on early extinguishment of debt - - 132 - Unrealized gain on financial instruments (26,475) - (26,475) - Other expense (income), net 48 (284) (192) 391 Operating Income $ 20,824 $ 61,284 $ 40,881 $ 118,254 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share Tables [Abstract] | |
Calculations of Basic and Diluted EPS | For the Three Months Ended For the Six Months Ended June 30, 2016 June 30, 2015 June 30, 2016 June 30, 2015 Numerator: Income from continuing operations, net of taxes $ 20,919 $ 28,390 $ 21,390 $ 57,622 Less: Unrealized gain on financial instruments, net of tax (27,513) - (27,513) - Diluted income (loss) from continuing operations, net of tax $ (6,594) $ 28,390 $ (6,123) $ 57,622 Denominator: Basic EPS weighted average shares outstanding 24,812 25,029 24,761 24,953 Effect of dilutive warrant 273 - 137 - Effect of dilutive stock options and restricted stock 140 169 138 182 Diluted EPS weighted average shares outstanding 25,225 25,198 25,036 25,135 Earnings per share from continuing operations: Basic $ 0.84 $ 1.13 $ 0.86 $ 2.31 Diluted $ (0.26) $ 1.13 $ (0.24) $ 2.29 Earnings per share from discontinued operations: Basic $ (0.01) $ - $ (0.01) $ - Diluted $ (0.01) $ - $ (0.01) $ - Earnings per share: Basic $ 0.83 $ 1.13 $ 0.85 $ 2.31 Diluted $ (0.28) $ 1.13 $ (0.26) $ 2.29 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) Tables [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2014 $ (9,924) $ 352 $ (9,572) Reclassification to interest expense 1,288 - 1,288 Translation adjustment - (343) (343) Tax effect (492) - (492) Balance as of June 30, 2015 $ (9,128) $ 9 $ (9,119) Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2015 $ (6,072) $ 9 $ (6,063) Reclassification to interest expense 895 - 895 Tax effect (347) - (347) Balance as of June 30, 2016 $ (5,524) $ 9 $ (5,515) |
Basis of Presentation (Detail)
Basis of Presentation (Detail) | Jun. 30, 2016 |
Basis Of Presentation Details [Abstract] | |
Equity interest in PACW | 51.00% |
Voting interest in PACW | 75.00% |
Summary of Significant Account
Summary of Significant Account Policies (Detail) - USD ($) $ in Millions | Jun. 30, 2016 | Dec. 31, 2015 |
Variable Interest Entities And Off Balance Sheet Arrangements Details [Abstract] | ||
Ownership interest in GATS | 50.00% | |
Investment in GATS | $ 20.6 | $ 20.7 |
Payable to GATS | $ 2.3 | $ 2.3 |
DHL Investment and Polar Percen
DHL Investment and Polar Percentages (Detail) | Jun. 30, 2016 |
Dhl Investment And Polar Percentages [Abstract] | |
DHL equity interest in Polar | 49.00% |
DHL voting interest in Polar | 25.00% |
DHL Investment and Polar Table
DHL Investment and Polar Table (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
DHL Investment and Polar Table Details [Line Items] | |||||
Revenue from Polar | $ 101,980 | $ 96,947 | $ 200,717 | $ 191,205 | |
Ground handling and airport fees paid to Polar | 321 | $ 436 | 624 | $ 1,227 | |
Receivables from Polar | 5,936 | 5,936 | $ 6,527 | ||
Payables to Polar | 2,173 | 2,173 | 4,660 | ||
Aggregate carrying value of Polar investment | $ 4,870 | $ 4,870 | $ 4,870 |
Southern Air Holdings Acquisiti
Southern Air Holdings Acquisition (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Business Combinations [Abstract] | |
Name of entity entered into an Agreement and Plan of Merger | Southern Air |
Cash consideration, net of cash acquired | $ 105,464 |
Business combination consider41
Business combination consideration Table (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
BusinessCombinationConsiderationTransferredAbstract | |
Cash paid, net of cash acquired | $ 107,498 |
Estimated working capital adjustment | (2,406) |
Estimated other adjustments | 372 |
Total estimated consideration | 105,464 |
Cash acquired from acquisition | $ 15,615 |
Business Combination Acquired N
Business Combination Acquired Net Assets Table (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
BusinessCombinationRecognizedIdentifiableAssetsAcquiredGoodwillAndLiabilitiesAssumedLessNoncontrollingInterestAbstract | |
Accounts receivable, net | $ 21,753 |
Prepaid expenses and other current assets | 8,331 |
Property and equipment | 6,355 |
Intangible assets | 63,345 |
Deferred income taxes | 35,522 |
Other assets | 1,498 |
Total assets acquired | 136,804 |
Accounts payable | 22,438 |
Accrued liabilities | 8,902 |
Total liabilities assumed | 31,340 |
Net assets acquired | $ 105,464 |
Business Combination Intangib43
Business Combination Intangibles Table (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
BusinessCombinationRecognizedIdentifiableAssetsAcquiredAndLiabilitiesAssumedIntangibleAssetsOtherThanGoodwillAbstract | |
Customer relationship | $ 26,280 |
Trade name | 700 |
Goodwill | 36,365 |
Total intangible assets | $ 63,345 |
Customer relationship estimated useful life | 16 years |
Trade name estimated useful life | 1 year 6 months |
Business combination employee t
Business combination employee termination benefits Table (Detail) $ in Thousands | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Business Combinations [Abstract] | |
Transaction-related expenses | $ 2,667 |
Cash payments | (1,554) |
Ending balance | $ 1,113 |
Business combination proforma (
Business combination proforma (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
BusinessAcquisitionProFormaInformationAbstract | ||||
Southern Air's operating revenues | $ 25.7 | $ 25.7 | ||
Transaction-related expenses | 13.3 | 14.1 | ||
Unaudited pro forma operating revenue | $ 444.9 | $ 478 | $ 889 | $ 942.6 |
Business combination discontinu
Business combination discontinued operation (Detail) $ in Millions | Jun. 30, 2016USD ($) |
DiscontinuedOperationsAndDisposalGroupsAbstract | |
Florida West's assets held for sale | $ 4.5 |
Special Charge (Detail)
Special Charge (Detail) $ in Millions | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Special Charge Details [Abstract] | |
Impairment loss recognized for held for sale assets | $ 6.5 |
Carrying value of asset held for sale | $ 6.5 |
Amazon Narrative (Detail)
Amazon Narrative (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | May 04, 2016 | |
FinancialLiabilitiesFairValueDisclosureAbstract | |||||
Right to acquire outstanding common shares | up to 20% of our outstanding common shares | ||||
Warrant exercise price | $ 37.5 | ||||
Warrant for number of shares vested immediately | 3,750 | ||||
Warrant to buy number of shares vesting | 3,750 | ||||
Warrant vesting year | 2,021 | ||||
Additional warrant to acquire outstanding shares | up to an additional 10% of our outstanding common shares | ||||
Additional warrant exercise price | $ 37.5 | ||||
Additional warrant to buy number of shares vesting | 3,750 | ||||
Additional warrant vesting year | 2,023 | ||||
Fair value of vested warrants | $ 66,400 | $ 66,400 | $ 92,900 | ||
Unrealized gain on financial instruments | $ 26,475 | $ 0 | $ 26,475 | $ 0 |
Intangible Assets, net Tables (
Intangible Assets, net Tables (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Intangible Assets Table Details [Abstract] | ||
Intangible assets, net | $ 117,152 | $ 58,483 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Accrued Liabilities Details [Abstract] | ||
Customer maintenance reserves | $ 74,339 | $ 70,252 |
Maintenance | 62,508 | 52,070 |
Salaries, wages and benefits | 36,380 | 51,649 |
Class action settlement | 35,000 | 35,000 |
Aircraft fuel | 19,575 | 12,983 |
Deferred revenue | 7,518 | 12,702 |
Other | 67,569 | 58,482 |
Accrued liabilities | $ 302,889 | $ 293,138 |
Debt Obligations Table (Detail)
Debt Obligations Table (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Debt [Abstract] | ||
Convertible Notes | $ 173,794 | |
Less current portion of debt | 167,093 | $ 161,811 |
Long-term debt | $ 1,735,266 | $ 1,739,496 |
Debt Term Loan (Detail)
Debt Term Loan (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
First 2016 Term Loan | |
Term Loans [Line Items] | |
Issue Date | February 2,016 |
Term Loan Face Value | $ 14.8 |
Collateral Aircraft Tail Number | N642GT |
Term Loan final payment | $ 3.8 |
Term loan fixed interest rate | 3.19% |
Second 2016 Term Loan | |
Term Loans [Line Items] | |
Issue Date | June 2,016 |
Term Loan Face Value | $ 70 |
Collateral Aircraft Tail Number | six spare GEnx engines |
Term Loan final payment | $ 30.2 |
Term loan fixed interest rate | 3.12% |
Variable Interest Rate | 2.93% |
Financing Arrangements Addition
Financing Arrangements Additional Information (Detail) $ in Thousands | 3 Months Ended |
Jun. 30, 2016USD ($) | |
Long term debt type [Domain] | |
Debt Instrument [Line Items] | |
Convertible notes aggregate principal amount | $ 224,500 |
Debt instrument interest rate | 2.25% |
Remaining life of notes | 6 years 2 months |
Convertible notes aggregate principal amount | $ 224,500 |
Aggregate amount of EETCs refinanced interest rate | 8.10% |
Financing Arrangements Schedule
Financing Arrangements Schedule of Notes (Detail) $ in Thousands | Jun. 30, 2016USD ($) |
Convertible notes [Line Items] | |
Proceeds | $ 224,500 |
Less: debt discount, net of amortization | (46,218) |
Less: debt issuance cost, net of amortization | (4,488) |
Net carrying amount | 173,794 |
Equity component | $ 52,903 |
Financial Arrangements Summary
Financial Arrangements Summary of Interest Expense Recognized (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Schedule of Interest Expense on Convertible Notes [Abstract] | ||||
Contractual interest coupon | $ 1,263 | $ 393 | $ 2,526 | $ 393 |
Amortization of debt discount | 1,592 | 467 | 3,159 | 467 |
Amortization of debt issuance costs | 168 | 51 | 335 | 51 |
Total interest expense recognized | $ 3,023 | $ 911 | $ 6,020 | $ 911 |
Income Taxes Tables (Detail)
Income Taxes Tables (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Deferred | ||||
Total deferred expense (benefit) | $ 7,667 | $ 19,773 | ||
Income tax expense (benefit) | $ 7,489 | $ 12,747 | 7,842 | 19,776 |
Domestic and foreign earnings before income taxes | ||||
Income (loss) from continuing operations before income taxes | $ 28,408 | $ 41,137 | $ 29,232 | $ 77,398 |
Reconciliation of differences between the U.S. federal statutory income tax rate and the effective income tax rates | ||||
Effective income tax rate | 26.40% | 31.00% | 26.80% | 25.60% |
Income Taxes Monetary (Detail)
Income Taxes Monetary (Detail) $ in Millions | Jun. 30, 2015USD ($) |
Income Tax Disclosure Narrative Details [Abstract] | |
ETI Benefit | $ 4 |
Financial Instruments Fair Valu
Financial Instruments Fair Value Table (Detail) - USD ($) $ in Thousands | Jun. 30, 2016 | May 04, 2016 | Dec. 31, 2015 | Jun. 30, 2015 | Dec. 31, 2014 |
Assets | |||||
Cash and cash equivalents | $ 155,247 | $ 425,950 | $ 514,750 | $ 298,601 | |
Short-term investments | 1,983 | 5,098 | |||
Restricted cash | 13,098 | 12,981 | |||
Long-term investments and accrued interest | 33,857 | 37,604 | |||
Liabilities | |||||
Convertible Notes | 173,794 | ||||
Amazon Warrant | 66,400 | $ 92,900 | |||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||||
Assets | |||||
Cash and cash equivalents | 155,247 | 425,950 | |||
Short-term investments | 1,983 | 5,098 | |||
Restricted cash | 13,098 | 12,981 | |||
Long-term investments and accrued interest | 33,857 | 37,604 | |||
Financial instruments assets | 204,185 | 481,633 | |||
Liabilities | |||||
Term loans | 1,050,880 | 1,013,265 | |||
Ex-Im Bank guaranteed notes | 653,580 | 689,720 | |||
EETCs | 24,105 | 28,022 | |||
Convertible Notes | 173,794 | 170,300 | |||
Amazon Warrant | 66,413 | ||||
Financial instruments liabilities | 1,968,772 | 1,901,307 | |||
Estimate of Fair Value, Fair Value Disclosure [Member] | |||||
Assets | |||||
Cash and cash equivalents | 155,247 | 425,950 | |||
Short-term investments | 1,983 | 5,098 | |||
Restricted cash | 13,098 | 12,981 | |||
Long-term investments and accrued interest | 40,389 | 45,867 | |||
Financial instruments assets | 210,717 | 489,896 | |||
Liabilities | |||||
Term loans | 1,093,669 | 1,049,785 | |||
Ex-Im Bank guaranteed notes | 696,160 | 715,890 | |||
EETCs | 28,526 | 30,074 | |||
Convertible Notes | 216,081 | 185,325 | |||
Amazon Warrant | 66,413 | ||||
Financial instruments liabilities | 2,100,849 | 1,981,074 | |||
Fair Value, Inputs, Level 1 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 155,247 | 425,950 | |||
Short-term investments | 0 | 0 | |||
Restricted cash | 13,098 | 12,981 | |||
Long-term investments and accrued interest | 0 | 0 | |||
Financial instruments assets | 168,345 | 438,931 | |||
Liabilities | |||||
Term loans | 0 | 0 | |||
Ex-Im Bank guaranteed notes | 0 | 0 | |||
EETCs | 0 | 0 | |||
Convertible Notes | 216,081 | 185,325 | |||
Amazon Warrant | 0 | ||||
Financial instruments liabilities | 216,081 | 185,325 | |||
Fair Value, Inputs, Level 2 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Short-term investments | 0 | 0 | |||
Restricted cash | 0 | 0 | |||
Long-term investments and accrued interest | 0 | 0 | |||
Financial instruments assets | 0 | 0 | |||
Liabilities | |||||
Term loans | 0 | 0 | |||
Ex-Im Bank guaranteed notes | 0 | 0 | |||
EETCs | 0 | 0 | |||
Convertible Notes | 0 | 0 | |||
Amazon Warrant | 66,413 | ||||
Financial instruments liabilities | 66,413 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Short-term investments | 1,983 | 5,098 | |||
Restricted cash | 0 | 0 | |||
Long-term investments and accrued interest | 40,389 | 45,867 | |||
Financial instruments assets | 42,372 | 50,965 | |||
Liabilities | |||||
Term loans | 1,093,669 | 1,049,785 | |||
Ex-Im Bank guaranteed notes | 696,160 | 715,890 | |||
EETCs | 28,526 | 30,074 | |||
Convertible Notes | 0 | 0 | |||
Amazon Warrant | 0 | ||||
Financial instruments liabilities | $ 1,818,355 | $ 1,795,749 |
Financial Instruments Contractu
Financial Instruments Contractual Maturity Table (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2015 | |
Debt securities | ||
Due after one but within five years, carrying value | $ 33,857 | $ 37,604 |
Due after five but within ten years, carrying value | 0 | 0 |
Total, carrying value | 33,857 | 37,604 |
Due after one but within five years, gross unrealized gain (loss) | 6,532 | 8,263 |
Due after five but within ten years, gross unrealized gain (loss) | 0 | 0 |
Total, gross unrealized gain (loss) | 6,532 | 8,263 |
Due after one but within five years, fair value | 40,389 | 45,867 |
Due after five but within ten years, fair value | 0 | 0 |
Total, fair value | $ 40,389 | $ 45,867 |
Segment Reporting (Detail)
Segment Reporting (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating Revenue | ||||
ACMI | $ 211,722 | $ 189,255 | $ 394,462 | $ 378,302 |
Charter | 202,451 | 235,436 | 404,754 | 455,574 |
Dry Leasing | 25,066 | 27,401 | 53,258 | 59,320 |
Other | 4,033 | 3,741 | 9,413 | 7,482 |
Total Operating Revenue | 443,272 | 455,833 | 861,887 | 900,678 |
Direct Contribution | ||||
ACMI | 45,490 | 51,157 | 70,230 | 91,059 |
Charter | 24,856 | 25,019 | 45,633 | 55,478 |
Dry Leasing | 6,878 | 10,894 | 17,286 | 26,419 |
Total Direct Contribution for Reportable Segments | 77,224 | 87,070 | 133,149 | 172,956 |
Unallocated income and expenses, net | (58,503) | (45,320) | (106,048) | (94,304) |
Loss on early extinguishement of debt | 0 | 0 | (132) | 0 |
Special charge | 0 | (499) | (6,631) | 69 |
Unrealized gain on financial instruments | 26,475 | 0 | 26,475 | 0 |
Transaction-related expenses | 16,788 | 0 | 17,581 | 0 |
Loss (gain) on disposal of aircraft | 0 | (114) | 0 | (1,323) |
Income (loss) from continuing operations before income taxes | 28,408 | 41,137 | 29,232 | 77,398 |
Interest income | (1,405) | (4,425) | (3,009) | (8,913) |
Interest expense | 20,938 | 25,033 | 42,240 | 49,581 |
Capitalized interest | (690) | (177) | (1,047) | (203) |
Loss on early extinguishment of debt | 0 | 0 | 132 | 0 |
Unrealized gain on financial instruments | (26,475) | 0 | (26,475) | 0 |
Other expense (income), net | 48 | (284) | (192) | 391 |
Operating Income | $ 20,824 | $ 61,284 | $ 40,881 | $ 118,254 |
Segment Reporting Narrative (De
Segment Reporting Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Segment Reporting Narrative Details [Abstract] | |||||
AMC revenue | $ 119.6 | $ 114 | $ 230.7 | $ 204.1 | |
Accounts receivable from the AMC | $ 25.3 | $ 25.3 | $ 26.3 |
Legal Proceedings (Detail)
Legal Proceedings (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Labor And Legal Proceedings [Abstract] | ||
Legal settlement to be paid in 2016 | $ 35 | |
Legal settlement to be paid in 2017 | 35 | |
Legal settlement to be paid in 2018 | 30 | |
Brazilian claims in the aggregate | 6.1 | |
Amounts on deposit for Brazilian claims included in Deposits and other assets | $ 4.8 | $ 3.8 |
Earnings Per Share Table (Detai
Earnings Per Share Table (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | ||||
Income (loss) from continuing operations, net of taxes | $ 20,919 | $ 28,390 | $ 21,390 | $ 57,622 |
Less: Unrealized gain on financial instruments | (27,513) | 0 | (27,513) | 0 |
Net income (loss) from continuing operations | $ (6,594) | $ 28,390 | $ (6,123) | $ 57,622 |
Denominator: | ||||
Basic EPS weighted average shares outstanding | 24,812 | 25,029 | 24,761 | 24,953 |
Effect of dilutive warrant | 273 | 0 | 137 | 0 |
Effect of dilutive stock options and restricted stock | 140 | 169 | 138 | 182 |
Diluted EPS weighted average shares outstanding | 25,225 | 25,198 | 25,036 | 25,135 |
Earnings per share from continuing operations | ||||
Basic | $ 0.84 | $ 1.13 | $ 0.86 | $ 2.31 |
Diluted | (0.26) | 1.13 | (0.24) | 2.29 |
IncomeLossFromDiscontinuedOperationsAndDisposalOfDiscontinuedOperationsNetOfTaxPerBasicShareAbstract | ||||
Basic | (0.01) | 0 | (0.01) | 0 |
Diluted | (0.01) | 0 | (0.01) | 0 |
Earnings per share: | ||||
Basic | 0.83 | 1.13 | 0.85 | 2.31 |
Diluted | $ (0.28) | $ 1.13 | $ (0.26) | $ 2.29 |
Earnings Per Share Narrative (D
Earnings Per Share Narrative (Detail) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share Details [Abstract] | ||||
Antidilutive options | 3 | 3 | 3 | 3 |
Restricted shares and units in which performance or market conditions were not satisfied | 7.9 | 0.3 | 7.9 | 0.3 |
Commitments and Contingencies M
Commitments and Contingencies Monetary (Detail) $ in Millions | Jun. 30, 2016USD ($) |
Leases And Aircraft Purchase Commitments Details [Abstract] | |
Remaining flight equiment purchase commitments minimum | $ 140 |
Remaining flight equipment purchase commitments maximum | $ 170 |
Accumulated Other Comprehensi66
Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | $ (6,063) | |||
Reclassification to interest expense | $ (441) | $ (638) | (895) | $ (1,288) |
Income tax benefit (expense) | 171 | 244 | 347 | 492 |
Balance | (5,515) | (5,515) | ||
Interest Rate Derivatives | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | (6,072) | (9,924) | ||
Reclassification to interest expense | 895 | 1,288 | ||
Translation adjustment | 0 | 0 | ||
Income tax benefit (expense) | (347) | (492) | ||
Balance | (5,524) | (9,128) | (5,524) | (9,128) |
Foreign Currency Translation | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | 9 | 352 | ||
Reclassification to interest expense | 0 | 0 | ||
Translation adjustment | 0 | (343) | ||
Income tax benefit (expense) | 0 | 0 | ||
Balance | 9 | 9 | 9 | 9 |
Accumulated Other Comprehensive Income (Loss) | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Balance | (6,063) | (9,572) | ||
Reclassification to interest expense | 895 | 1,288 | ||
Translation adjustment | 0 | (343) | ||
Income tax benefit (expense) | (347) | (492) | ||
Balance | $ (5,515) | $ (9,119) | $ (5,515) | $ (9,119) |
Accumulated Other Comprehensi67
Accumulated Other Comprehensive Income (Loss) Narrative (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Accumulated Other Comprehensive Income Loss Narrative Details [Abstract] | ||||
Unamortized realized loss in Accumulated other comprehensive income (loss) related to forward-starting interest rate swaps | $ 9 | $ 9 | ||
Net realized losses reclassified into earnings | 0.4 | $ 0.6 | 0.9 | $ 1.3 |
Realized losses related to forward-starting interest rate swaps expected to be reclassified into earnings within the next 12 months | $ 1.7 | $ 1.7 |