Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Oct. 26, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document period end date | Sep. 30, 2018 | |
Amendment flag | false | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,018 | |
Current fiscal year end date | --12-31 | |
Entity central index key | 1,135,185 | |
Entity filer category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity registrant name | ATLAS AIR WORLDWIDE HOLDINGS INC | |
Entity trading symbol | AAWW | |
Entity common stock shares outstanding | 25,590,293 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 214,961 | $ 280,809 |
Short-term investments | 18,511 | 13,604 |
Restricted cash | 11,194 | 11,055 |
Accounts receivable, net of allowance of $1,381 and $1,494, respectively | 254,425 | 194,478 |
Prepaid maintenance | 30,988 | 13,346 |
Prepaid expenses and other current assets | 70,568 | 74,294 |
Total current assets | 600,647 | 587,586 |
Property and Equipment | ||
Flight equipment | 5,085,594 | 4,447,097 |
Ground equipment | 78,389 | 70,951 |
Less: accumulated depreciation | (821,203) | (701,249) |
Flight equipment modifications in progress | 107,290 | 186,302 |
Property and equipment, net | 4,450,070 | 4,003,101 |
Other Assets | ||
Long-term investments and accrued interest | 1,722 | 15,371 |
Deferred costs and other assets | 324,740 | 242,919 |
Intangible assets, net and goodwill | 99,860 | 106,485 |
Total Assets | 5,477,039 | 4,955,462 |
Current Liabilities | ||
Accounts payable | 81,682 | 65,740 |
Accrued liabilities | 482,085 | 454,843 |
Current portion of long-term debt and capital lease | 256,184 | 218,013 |
Total current liabilities | 819,951 | 738,596 |
Other Liabilities | ||
Long-term debt and capital lease | 2,280,790 | 2,008,986 |
Deferred taxes | 231,673 | 214,694 |
Financial instruments and other liabilities | 292,840 | 203,330 |
Total other liabilities | 2,805,303 | 2,427,010 |
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; 30,582,571 and 30,104,648 shares issued, 25,590,293 and 25,292,454 shares outstanding (net of treasury stock), as of September 30, 2018 and December 31, 2017, respectively | 306 | 301 |
Additional paid-in-capital | 731,106 | 715,735 |
Treasury stock, at cost; 4,992,278 and 4,812,194 shares, respectively | (204,501) | (193,732) |
Accumulated other comprehensive loss | (4,108) | (3,993) |
Retained earnings | 1,328,982 | 1,271,545 |
Total equity | 1,851,785 | 1,789,856 |
Total Liabilities and Equity | $ 5,477,039 | $ 4,955,462 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1,381 | $ 1,494 |
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 | 30,582,571 | 30,104,648 |
Common stock shares outstanding | 25,590,293 | 25,292,454 |
Treasury stock shares | 4,992,278 | 4,812,194 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Operating Revenue | $ 656,607 | $ 535,748 | [1] | $ 1,912,766 | $ 1,528,508 | [1] |
Operating Expenses | ||||||
Salaries, wages and benefits | 138,345 | 114,505 | 392,603 | 330,080 | ||
Aircraft fuel | 119,604 | 74,048 | 345,613 | 239,966 | ||
Travel | 41,605 | 38,260 | 123,810 | 105,510 | ||
Aircraft rent | 39,973 | 33,873 | 119,778 | 103,738 | ||
Navigation fees, landing fees and other rent | 43,258 | 33,468 | 116,553 | 77,258 | ||
Passenger and ground handling services | 28,716 | 28,491 | 86,980 | 77,187 | ||
Loss on disposal of aircraft | 0 | 211 | [1] | 0 | 64 | [1] |
Special charge | 0 | 0 | [1] | 9,374 | 0 | [1] |
Transaction-related expenses | 765 | 1,092 | [1] | 1,275 | 3,403 | [1] |
Other | 46,318 | 42,598 | 143,663 | 123,121 | ||
Total Operating Expenses | 602,137 | 483,036 | 1,756,781 | 1,393,282 | ||
Operating Income | 54,470 | 52,712 | [1] | 155,985 | 135,226 | [1] |
Non-operating Expenses (Income) | ||||||
Interest income | (1,592) | (1,688) | [1] | (4,704) | (4,286) | [1] |
Interest expense | 31,115 | 26,553 | [1] | 87,639 | 72,747 | [1] |
Capitalized interest | (1,120) | (1,922) | [1] | (4,335) | (5,633) | [1] |
Loss on early extinguishment of debt | 0 | 167 | [1] | 0 | 167 | [1] |
Unrealized loss (gain) on financial instruments | (46,080) | 44,775 | [1] | 11,691 | 36,225 | [1] |
Other expense (income) | 975 | (1,165) | [1] | (10,777) | (357) | [1] |
Total Non-operating Expenses (Income) | (16,702) | 66,720 | 79,514 | 98,863 | ||
Income (loss) from continuing operations before income taxes | 71,172 | (14,008) | [1] | 76,471 | 36,363 | [1] |
Income tax expense | 34 | 10,187 | 16,828 | 21,479 | ||
Income (loss) from continuing operations, net of taxes | 71,138 | (24,195) | 59,643 | 14,884 | ||
Income (Loss) from discontinued operations, net of taxes | (7) | 33 | (50) | (859) | ||
Net Income (Loss) | $ 71,131 | $ (24,162) | $ 59,593 | $ 14,025 | ||
Earnings (loss) per share from continuing operations: | ||||||
Basic | $ 2.78 | $ (0.96) | $ 2.34 | $ 0.59 | ||
Diluted | 0.84 | (0.96) | 2.27 | 0.58 | ||
Loss per share from discontinued operations: | ||||||
Basic | 0 | 0 | 0 | (0.03) | ||
Diluted | 0 | 0 | 0 | (0.03) | ||
Earnings (loss) per share: | ||||||
Basic | 2.78 | (0.96) | 2.33 | 0.56 | ||
Diluted | $ 0.84 | $ (0.96) | $ 2.27 | $ 0.54 | ||
Weighted average shares: | ||||||
Basic | 25,575 | 25,262 | 25,526 | 25,229 | ||
Diluted | 28,747 | 25,262 | 26,274 | 25,822 | ||
Service [Member] | ||||||
Operating Expenses | ||||||
Maintenance, materials and repairs | $ 88,136 | $ 74,457 | $ 261,251 | $ 212,042 | ||
Depreciation and amortization | $ 55,417 | $ 42,033 | $ 155,881 | $ 120,913 | ||
[1] | The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 71,131 | $ (24,162) | $ 59,593 | $ 14,025 |
Other comprehensive income: | ||||
Reclassification to interest expense | 370 | 396 | 1,120 | 1,216 |
Income tax expense | (88) | (154) | (265) | (472) |
Other comprehensive income | 282 | 242 | 855 | 744 |
Comprehensive Income (Loss) | $ 71,413 | $ (23,920) | $ 60,448 | $ 14,769 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Operating Activities: | |||
Income from continuing operations, net of taxes | $ 59,643 | $ 14,884 | |
Less: Loss from discontinued operations, net of taxes | (50) | (859) | |
Net Income (Loss) | 59,593 | 14,025 | |
Adjustments to reconcile Net Income to net cash provided by operating activities: | |||
Depreciation and amortization | 189,682 | 142,042 | |
Accretion of debt securities discount | (719) | (892) | |
Provision for allowance for doubtful accounts | 40 | 304 | |
Special charge, net of cash payments | 9,374 | 0 | |
Loss on early extinguishment of debt | 0 | 167 | [1] |
Unrealized loss (gain) on financial instruments | 11,691 | 36,225 | |
Loss on disposal of aircraft | 0 | 64 | |
Deferred taxes | 16,453 | 21,106 | |
Stock-based compensation | 15,376 | 17,030 | |
Changes in: | |||
Accounts receivable | (59,058) | (12,004) | |
Prepaid expenses, current assets and other assets | (34,483) | (53,343) | |
Accounts payable and accrued liabilities | 56,174 | 30,382 | |
Net cash provided by operating activities | 264,123 | 195,106 | |
Investing Activities: | |||
Capital expenditures | (84,819) | (66,395) | |
Payments for flight equipment and modifications | (543,342) | (338,524) | |
Proceeds from investments | 9,461 | 3,247 | |
Net cash used for investing activities | (618,700) | (401,672) | |
Financing Activities: | |||
Proceeds from debt issuance | 400,471 | 447,865 | |
Payment of debt issuance costs | (6,632) | (11,146) | |
Payments of debt | (180,722) | (153,292) | |
Proceeds from revolving credit facility | 135,000 | 150,000 | |
Payment of revolving credit facility | (60,000) | (150,000) | |
Customer maintenance reserves and deposits received | 11,520 | 22,006 | |
Customer maintenance reserves paid | 0 | (18,538) | |
Proceeds from sale of convertible note warrants | 0 | 38,148 | |
Payments for convertible note hedges | 0 | (70,140) | |
Purchase of treasury stock | (10,769) | (10,307) | |
Net cash provided by financing activities | 288,868 | 244,596 | |
Net increase (decrease) in cash, cash equivalents and restricted cash | (65,709) | 38,030 | |
Cash, cash equivalents and restricted cash at the beginning of period | 291,864 | 138,250 | |
Cash, cash equivalents and restricted cash at the end of period | 226,155 | 176,280 | |
Noncash Investing and Financing Activities: | |||
Acquisition of flight equipment included in Accounts payable and accrued liabilities | 42,826 | 61,734 | |
Acquisition of flight equipment under capital lease | $ 0 | $ 32,380 | |
[1] | The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] |
Beginning Balance at Dec. 31, 2016 | $ 1,517,338 | $ 296 | $ (183,119) | $ 657,082 | $ (4,993) | $ 1,048,072 |
Net Income | 14,025 | 0 | 0 | 0 | 0 | 14,025 |
Other comprehensive income | 744 | 0 | 0 | 0 | 744 | 0 |
Stock-based compensation | 17,030 | 0 | 0 | 17,030 | 0 | 0 |
Purchase of shares of treasury stock | (10,307) | 0 | (10,307) | 0 | 0 | 0 |
Issuance of shares of restricted stock | 0 | 5 | 0 | (5) | 0 | 0 |
Equity component of convertible notes, net of tax | 43,256 | 0 | 0 | 43,256 | 0 | 0 |
Purchase of convertible note hedges, net of tax | (45,065) | 0 | 0 | (45,065) | 0 | 0 |
Issuance of convertible note warrants | 38,148 | 0 | 0 | 38,148 | 0 | 0 |
Ending Balance at Sep. 30, 2017 | 1,575,169 | 301 | (193,426) | 710,446 | (4,249) | 1,062,097 |
Beginning Balance at Dec. 31, 2017 | 1,789,856 | 301 | (193,732) | 715,735 | (3,993) | 1,271,545 |
Net Income | 59,593 | 0 | 0 | 0 | 0 | 59,593 |
Other comprehensive income | 855 | 0 | 0 | 0 | 855 | 0 |
Cumulative effect of change in accounting principle | (3,126) | 0 | 0 | 0 | 0 | (3,126) |
Stock-based compensation | 15,376 | 0 | 0 | 15,376 | 0 | 0 |
Purchase of shares of treasury stock | (10,769) | 0 | (10,769) | 0 | 0 | 0 |
Issuance of shares of restricted stock | 0 | 5 | 0 | (5) | 0 | 0 |
Reclassification of tax effect on other comprehensive loss | 0 | 0 | 0 | 0 | (970) | 970 |
Ending Balance at Sep. 30, 2018 | $ 1,851,785 | $ 306 | $ (204,501) | $ 731,106 | $ (4,108) | $ 1,328,982 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) (Unaudited) - shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Statement Of Stockholders Equity [Abstract] | ||
Purchase of shares of treasury stock | 180,084 | 191,047 |
Issuance of shares of restricted stock | 477,923 | 456,905 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2018 | |
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”) and Southern Air Holdings, Inc. (“Southern Air”). AAWW is also the parent 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 under 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 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”), 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 accompanying 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 consequently 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”). Intercompany accounts and transactions 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, 2017, which includes additional disclosures and a summary of our significant accounting policies. The December 31, 2017 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 September 30, 2018, the results of operations for the three and nine months ended September 30, 2018 and 2017, comprehensive income (loss) for the three and nine months ended September 30, 2018 and 2017, cash flows for the nine months ended September 30, 2018 and 2017, and shareholders’ equity as of and for the nine months ended September 30, 2018 and 2017. 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 data, all dollar amounts are in thousands unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Warrant Liability Common stock warrants classified as a liability are marked-to-market at the end of each reporting period with changes in fair value recorded in Unrealized loss (gain) on financial instruments. We utilize a Monte Carlo simulation approach to estimate the fair value of the warrant liability, which requires inputs such as our common stock price, the warrant strike price, estimated common stock price volatility and risk-free interest rate, among others. Our earnings are affected by changes in our common stock price due to the impact those changes have on the fair value of our warrant liability (see Note 6 to our Financial Statements). Heavy Maintenance Except for engines used on our 747-8F aircraft, we account for heavy maintenance costs for airframes and engines used in our ACMI and Charter segments using the direct expense method. Under this method, heavy maintenance costs are charged to expense upon induction, based on our best estimate of the costs. We account for heavy maintenance costs for airframes and engines used in our Dry Leasing segment and engines used on our 747-8F aircraft using the deferral method. Under this method, we defer the expense recognition of scheduled heavy maintenance events, which are amortized over the estimated period until the next scheduled heavy maintenance event is required. Amortization of deferred maintenance expense included in Depreciation and amortization was $3.3 million and $1.8 million for the three months ended September 30, 2018 and 2017, respectively and was $8.6 million and $3.7 million for the nine months ended September 30, 2018 and 2017. Deferred maintenance included within Deferred costs and other assets is as follows: Deferred Maintenance Balance as of December 31, 2017 $ 63,868 Deferred maintenance costs 35,878 Amortization of deferred maintenance (8,604 ) Balance as of September 30, 2018 $ 91,142 Supplemental Cash Flow Information 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: September 30, 2018 December 31, 2017 Cash and cash equivalents $ 214,961 $ 280,809 Restricted cash 11,194 11,055 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 226,155 $ 291,864 Recent Accounting Pronouncements Adopted in 2018 In February 2018, the Financial Accounting Standards Board (“FASB”) amended its accounting guidance for the reporting of comprehensive income. The guidance permits entities to reclassify to retained earnings the excess tax effects remaining in accumulated other comprehensive income/(loss) after the reduction in the federal corporate income tax rate from 35% to 21% as a result of the U.S. Tax Cuts and Jobs Act of 2017. The amended guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. We have early adopted the new guidance effective as of January 1, 2018. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In May 2014, the FASB amended its accounting guidance for revenue recognition. Subsequently, the FASB issued several clarifications and updates. The fundamental principles of the new standard 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 for the services provided. It also requires additional disclosures necessary for the financial statement users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted the new guidance on January 1, 2018 using the modified retrospective approach, under which the guidance is applied beginning on the date of adoption. Comparative information has not been restated and continues to be reported under the accounting guidance in effect for those periods. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB amended its accounting guidance for leases. Subsequently, the FASB issued several clarifications and updates. The guidance requires a lessee to recognize assets and liabilities on the balance sheet arising from leases with terms greater than 12 months. While lessor accounting guidance is relatively unchanged, certain amendments were made to conform with changes made to lessee accounting and the amended revenue recognition guidance. The new guidance will continue to classify leases as either finance or operating, with classification affecting the presentation and pattern of expense and income recognition, in the statement of operations. It also requires additional quantitative and qualitative disclosures about leasing arrangements. The guidance is effective as of the beginning of 2019 and upon adoption must be applied using a modified retrospective approach which allows entities to either apply the new guidance to all periods presented or only to the most current period presented. We are still assessing the impact the guidance will have on our financial statements. While we expect that recognizing the right-of-use asset and related lease liability will impact our consolidated balance sheets materially, we do not expect the guidance to have a material impact to any of our other consolidated financial statements. We will adopt the new guidance on its required effective date of January 1, 2019 and apply the new guidance to the most current period presented. Our implementation is progressing as expected. |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Parties | 3. Related Parties Polar AAWW has a 51% equity interest 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, which began in 2008 (the “BSA”), Polar provides air cargo capacity to DHL. Atlas has several agreements with Polar to provide ACMI, CMI, Dry Leasing, administrative, sales and ground support services to one another. We do not have any financial exposure to fund debt obligations or operating losses of Polar, except for any liquidated damages that we could incur under these agreements. The following table summarizes our transactions with Polar: For the Three Months Ended For the Nine Months Ended Revenue and Expenses: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Revenue from Polar $ 99,671 $ 105,985 $ 305,401 $ 317,144 Ground handling and airport fees to Polar 841 800 2,219 1,926 Accounts receivable/payable as of: September 30, 2018 December 31, 2017 Receivables from Polar $ 15,954 $ 9,558 Payables to Polar 5,391 2,751 Aggregate Carrying Value of Polar Investment as of: September 30, 2018 December 31, 2017 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. As of September 30, 2018 and December 31, 2017, our investment in GATS was $22.4 million and $22.1 million, respectively. We had Accounts payable to GATS of $0.9 million as of September 30, 2018 and $0.4 million as of December 31, 2017. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 4. Revenue Recognition Adoption We adopted the new revenue recognition guidance using the modified retrospective method and applied it to all customer contracts, excluding Dry Leasing contracts, based on the contract terms in effect as of January 1, 2018. Revenue under our Dry Leasing contracts is explicitly excluded from the scope of the new guidance Balance Balance December 31, 2017 Adjustments January 1, 2018 Accounts receivable $ 194,478 $ (407 ) $ 194,071 Accrued liabilities 454,843 3,614 458,457 Deferred taxes 214,694 (895 ) 213,799 Retained earnings 1,271,545 (3,126 ) 1,268,419 The following tables provide disclosure of the impact of adoption of the new revenue recognition guidance on our consolidated statement of operations and balance sheet: For the Three Months Ended September 30, 2018 As Reported Amounts without Adoption of New Revenue Recognition Guidance Effect of Change Inc/(Dec) Consolidated Statement of Operations Operating Revenue $ 656,607 $ 658,655 $ (2,048 ) Operating Expenses Other 46,318 47,041 (723 ) Income (loss) from continuing operations before income taxes 71,172 72,497 (1,325 ) Income tax expense 34 325 (291 ) Income (loss) from continuing operations, net of taxes 71,138 72,172 (1,034 ) For the Nine Months Ended September 30, 2018 As Reported Amounts without Adoption of New Revenue Recognition Guidance Effect of Change Inc/(Dec) Consolidated Statement of Operations Operating Revenue $ 1,912,766 $ 1,914,701 $ (1,935 ) Operating Expenses Other 143,663 143,075 588 Income (loss) from continuing operations before income taxes 76,471 78,994 (2,523 ) Income tax expense 16,828 17,383 (555 ) Income (loss) from continuing operations, net of taxes 59,643 61,611 (1,968 ) As of September 30, 2018 As Reported Amounts without Adoption of New Revenue Recognition Guidance Effect of Change Inc/(Dec) Consolidated Balance Sheet Assets Accounts receivable, net $ 254,425 $ 255,002 $ (577 ) Liabilities and Equity Accrued liabilities 482,085 480,139 1,946 Deferred taxes 231,673 232,228 (555 ) Retained earnings 1,328,982 1,330,950 (1,968 ) Deferred Revenue 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 nine months ended September 30, 2018 were as follows: Deferred Revenue Balance at beginning of period $ 14,958 Revenue recognized (34,465 ) Amounts collected or invoiced 45,085 Balance at end of period $ 25,578 Accounts Receivable Accounts receivable, net of allowances related to customer contracts, excluding Dry Leasing contracts, was $219.0 million as of September 30, 2018 and $173.2 million as of December 31, 2017. Performance Obligations and Accounting Policies ACMI and CMI Services 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 these 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. Revenue from ACMI and CMI contracts is typically recognized over time 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. See Note 6 to our Financial Statements for a discussion of a customer incentive asset. ACMI and CMI customers are generally billed monthly based on Block Hours operated on behalf of a customer during a given month, as defined contractually. Payment terms and conditions vary by contract, although terms generally require partial payment for minimum contracted Block Hour guarantees in advance of the services being provided. Since advance payments are typically made shortly before the services are performed, such payments are not considered significant financing components. Charter Services 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, 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 South America. The customer pays a fixed charter fee or a variable fee based on the weight of cargo flown and we typically bear all direct operating costs for both cargo and passenger charters, which include fuel, insurance, landing and navigation fees, and most other operational fees and costs. When we purchase cargo capacity from our ACMI customers for Charter flights, we are responsible for selling the capacity we purchase. We record revenue related to such purchased capacity as part of Charter revenue and record the related expenses in Navigation fees, landing fees and other rent. Revenue from Charter contracts is typically recognized over time as the services are performed based on Block Hours operated on behalf of a customer. Any revenue adjustments related to on-time performance targets with the AMC are recognized over the applicable measurement period for the target, which requires significant judgment to estimate the total number of Block Hours expected. We generally expense sales commissions when incurred because the amortization period is less than one year. Payment terms and conditions vary by charter contract, although many contracts require payment in advance of the services being provided. Since advance payments are typically made shortly before the services are performed, such payments are not considered significant financing components. 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 are all accounted for as operating leases. We record Dry Lease rental income on a straight-line basis over the term of the operating lease. Rentals received but unearned under the lease agreements are recorded in deferred revenue and included in Accrued liabilities until earned. Customer maintenance reserves are amounts received under our Dry Lease contracts that are subject to reimbursement to the lessee upon the completion of qualifying maintenance work on the specific Dry Leased aircraft and are included in Accrued liabilities. We defer revenue recognition for customer maintenance reserves until the end of the lease, when we are able to finalize the amount, if any, to be reimbursed to the lessee. Other Services Other services include administrative and management support services and flight simulator training. Revenue for these services is recognized when the services are provided. Estimated revenue expected to be recognized in the future is not presented because our contracts, excluding Dry Leasing contracts, typically involve either a duration or measurement period for revenue recognition of one year or less. |
Special Charge and Other Expens
Special Charge and Other Expense (Income) | 9 Months Ended |
Sep. 30, 2018 | |
Aircraft And Aircraft Engines Held For Sale [Abstract] | |
Special Charge and Other Expense (Income) | 5. Special Charge and Other Expense (Income) During the nine months ended September 30, 2018, we recognized $9.4 million of impairment losses for five CF6-80 engines to be traded in as part of our engine acquisition program that were classified as held for sale. Depreciation ceased on the engines when they were classified as held for sale. Four of the five engines were traded in during the second quarter and one engine remains held for sale as of September 30, 2018. The carrying value of the remaining CF6-80 engine held for sale at September 30, 2018 was $1.3 million, which was included within Prepaid expenses and other current assets in the consolidated balance sheet. This engine was traded in during October 2018. We recognized a refund of $12.4 million related to aircraft rent paid in previous years within Other expense (income) during the nine months ended September 30, 2018. |
Amazon
Amazon | 9 Months Ended |
Sep. 30, 2018 | |
Warrants And Rights Note Disclosure [Abstract] | |
Amazon | 6. Amazon In May 2016, we entered into certain agreements with Amazon.com, Inc. and its subsidiary, Amazon Fulfillment Services, Inc., (collectively “Amazon”), which involves, among other things, CMI operation of 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). Between August 2016 and September 2018, we have placed 18 freighter aircraft into service for Amazon and we expect to be operating all 20 before the end of 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. The remainder of the warrant, representing the right to purchase 3.75 million shares, vests in increments of 375,000 as the lease and operation of each of the 11 th th th th th th The agreements also provide 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, 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 would vest in conjunction with payments by Amazon for additional business with us. As of September 30, 2018, no portion of this warrant has vested. Upon vesting, the warrant would become exercisable in accordance with its terms through 2023. At the time of vesting, the fair value of the vested portion of the warrant issued to Amazon is recorded as a warrant liability within Financial instruments and other liabilities (the “Amazon Warrant”). This initial fair value of the vested portion of the warrant is also recognized as a customer incentive asset within Deferred costs and other assets, net and is amortized as a reduction of revenue in proportion to the amount of revenue recognized over the terms of the Dry Leases and CMI agreements. Determining the amount of amortization related to the CMI agreements requires significant judgment to estimate the total number of Block Hours expected over the terms of those agreements. The following table provides a summary of the customer incentive asset: Balance at December 31, 2017 $ 106,538 Initial value for vested portion of warrant 76,419 Amortization of customer incentive asset (10,010 ) Balance at September 30, 2018 $ 172,947 We amortized $4.1 million and $1.5 million of the customer incentive asset for the three months ended September 30, 2018 and 2017, respectively. We amortized $10.0 million and $2.9 million of the customer incentive asset for the nine months ended September 30, 2018 and 2017, respectively. There were no impairment losses for the nine months ended September 30, 2018 and 2017. The Amazon Warrant liability is marked-to-market at the end of each reporting period with changes in fair value recorded in Unrealized loss (gain) on financial instruments. We recognized a net unrealized gain of $46.1 million and a net unrealized loss of $11.7 million on the Amazon Warrant during the three and nine months ended September 30, 2018, respectively. We recognized net unrealized losses of $44.8 million and $36.2 million on the Amazon Warrant during the three and nine months ended September 30, 2017, respectively. The fair value of the Amazon Warrant liability was $215.9 million as of September 30, 2018 and $127.8 million as of December 31, 2017. |
Accrued Liabilities
Accrued Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Accrued Liabilities Current And Noncurrent [Abstract] | |
Accrued Liabilities | 7. Accrued Liabilities Accrued liabilities consisted of the following as of: September 30, 2018 December 31, 2017 Maintenance $ 162,194 $ 156,042 Customer maintenance reserves 100,350 89,037 Salaries, wages and benefits 62,903 65,546 U.S. class action settlement - 30,000 Aircraft fuel 37,602 22,196 Deferred revenue 36,685 20,986 Other 82,351 71,036 Accrued liabilities $ 482,085 $ 454,843 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt Term Loans We have entered into various term loans during 2018 to finance the purchase of aircraft, passenger-to-freighter conversion of aircraft, and for GEnx engine performance upgrade kits and overhauls. Each term loan requires payment of principal and interest either monthly or quarterly in arrears at a fixed interest rate. Each term loan is subject to usual and customary fees and covenants, and events of default. The following table summarizes the terms for each term loan entered into during 2018 (in millions): Issue Face Collateral Original Fixed Interest Date Value Type Term Rate First 2018 Term Loan March 2018 $ 19.4 None 60 months 3.12% Second 2018 Term Loan May 2018 83.5 777-200 120 months 4.63% Third 2018 Term Loan May 2018 83.5 777-200 120 months 4.63% Fourth 2018 Term Loan May 2018 20.1 None 60 months 3.31% Fifth 2018 Term Loan June 2018 21.1 767-300 108 months 3.97% Sixth 2018 Term Loan June 2018 3.9 767-300 108 months 5.14% Seventh 2018 Term Loan June 2018 20.7 767-300 108 months 3.98% Eighth 2018 Term Loan June 2018 4.0 767-300 108 months 5.14% Ninth 2018 Term Loan June 2018 20.9 767-300 108 months 3.98% Tenth 2018 Term Loan June 2018 4.0 767-300 108 months 5.13% Eleventh 2018 Term Loan June 2018 4.0 767-300 98 months 5.10% Twelfth 2018 Term Loan June 2018 4.0 767-300 104 months 5.11% Thirteenth 2018 Term Loan June 2018 4.0 767-300 106 months 5.11% Fourteenth 2018 Term Loan June 2018 4.0 767-300 106 months 5.11% Fifteenth 2018 Term Loan June 2018 4.0 767-300 108 months 5.11% Sixteenth 2018 Term Loan June 2018 4.0 767-300 108 months 5.11% Seventeenth 2018 Term Loan July 2018 20.4 None 60 months 3.38% Eighteenth 2018 Term Loan September 2018 21.0 767-300 108 months 4.04% Nineteenth 2018 Term Loan September 2018 4.0 767-300 108 months 5.19% Twentieth 2018 Term Loan September 2018 21.0 767-300 108 months 4.04% Twenty-first 2018 Term Loan September 2018 4.0 767-300 108 months 5.19% Twenty-second 2018 Term Loan September 2018 21.0 767-300 108 months 4.04% Twenty-third 2018 Term Loan September 2018 4.0 767-300 108 months 5.19% Total $ 400.5 Convertible Notes In May 2017, we issued $289.0 million aggregate principal amount of 1.875% convertible senior notes that mature on June 1, 2024 (the “2017 Convertible Notes”) in an underwritten public offering. In June 2015, we issued $224.5 million aggregate principal amount of 2.25% convertible senior notes that mature on June 1, 2022 (the “2015 Convertible Notes”) in an underwritten public offering. The 2017 Convertible Notes and the 2015 Convertible Notes (collectively, the “Convertible Notes”) are senior unsecured obligations and accrue interest payable semiannually on June 1 and December 1 of each year. The Convertible Notes are due on their respective maturity dates, unless earlier converted or repurchased pursuant to their respective terms. The Convertible Notes consisted of the following as of September 30, 2018: 2017 Convertible Notes 2015 Convertible Notes Remaining life in months 68 44 Liability component: Gross proceeds $ 289,000 $ 224,500 Less: debt discount, net of amortization (58,841 ) (30,676 ) Less: debt issuance cost, net of amortization (4,640 ) (2,901 ) Net carrying amount $ 225,519 $ 190,923 Equity component (1) $ 70,140 $ 52,903 (1) Included in Additional paid-in capital on the consolidated balance sheet as of September 30, 2018. The following table presents the amount of interest expense recognized related to the Convertible Notes: For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Contractual interest coupon $ 2,618 $ 2,618 $ 7,853 $ 5,730 Amortization of debt discount 3,994 3,752 11,798 7,990 Amortization of debt issuance costs 397 352 1,119 776 Total interest expense recognized $ 7,009 $ 6,722 $ 20,770 $ 14,496 Revolving Credit Facility In December 2016, we entered into a three-year $150.0 million secured revolving credit facility (the “Revolver”) for general corporate purposes, including financing the acquisition of aircraft prior to obtaining permanent financing for the aircraft. As of September 30, 2018, the outstanding balance on the Revolver was $75.0 million at an interest rate of 4.49% and there was $60.6 million of unused availability under the Revolver, based on the collateral borrowing base. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes Our effective income tax expense rates were 0.0% and 72.7% for the three months ended September 30, 2018 and 2017, respectively. Our effective income tax expense rates were 22.0% and 59.1% for the nine months ended September 30, 2018 and 2017, respectively. The effective income tax expense rates for the three and nine months ended September 30, 2018 and 2017 differed from the U.S. statutory rate primarily due to nondeductible or nontaxable changes in the value of the warrant liability (see Note 6 to our Financial Statements). In addition, the effective income tax rates for the three and nine months ended September 30, 2018 were impacted by the benefit of $8.7 million we recorded related to the remeasurement of our deferred income tax liability for Singapore (see below). Further, the effective tax expense rates for 2018 reflect the reduced U.S. federal corporate income tax rate of 21% as a result of the enactment of the U.S. Tax Cuts and Jobs Act of 2017. For interim accounting purposes, we recognize income taxes using an estimated annual effective tax rate. We participate in an aircraft leasing incentive program in Singapore which entitled us to a reduced income tax rate of 10.0% on our Singapore Dry Leasing income through July 31, 2018. We renewed our participation in this program at a reduced income tax rate of 8.0% through July 31, 2023, effective in the third quarter of 2018. As a result, we recorded a benefit of approximately $8.7 million related to the remeasurement of our deferred income tax liability for Singapore. We continue to analyze the different aspects of the U.S. Tax Cuts and Jobs Act of 2017, which could potentially affect the provisional estimates recorded at December 31, 2017. We no longer indefinitely reinvest the earnings of our overseas dry leasing subsidiaries outside the U.S. As a result, we may repatriate those earnings to the U.S. in the future, and we recorded an immaterial deferred tax liability related to state income taxes for the nine months ended September 30, 2018. The U.S. Internal Revenue Service is currently examining the 2015 tax year. It is reasonably possible that our unrecognized tax benefits could significantly decrease within the next twelve months. Due to the uncertainty related to the potential outcome of this examination, we cannot estimate a range of reasonably possible adjustments to our unrecognized tax benefits. |
Financial Instruments
Financial Instruments | 9 Months Ended |
Sep. 30, 2018 | |
Fair Value Disclosures [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 information 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, maturing within five years, for which we have both the ability and 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 investments 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 (“EETCs”) issued by Atlas in 1998 and 1999. Term loans and notes consist of term loans, notes guaranteed by the Export-Import Bank of the United States (“Ex-Im Bank”), the Revolver and EETCs. 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 fair value of the Amazon Warrant and certain long-term performance-based restricted shares are based on a Monte Carlo simulation which requires inputs such as our common stock price, the warrant strike price, estimated common stock price volatility, and risk-free interest rate, among others. The following table summarizes the carrying value, estimated fair value and classification of our financial instruments as of: September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 214,961 $ 214,961 $ 214,961 $ - $ - Short-term investments 18,511 18,511 - - 18,511 Restricted cash 11,194 11,194 11,194 - - Long-term investments and accrued interest 1,722 2,649 - - 2,649 $ 246,388 $ 247,315 $ 226,155 $ - $ 21,160 Liabilities Term loans and notes $ 2,120,532 $ 2,083,788 $ - $ - $ 2,083,788 Convertible notes (1) 416,442 607,377 607,377 - - Amazon Warrant 215,865 215,865 - 215,865 - $ 2,752,839 $ 2,907,030 $ 607,377 $ 215,865 $ 2,083,788 December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 280,809 $ 280,809 $ 280,809 $ - $ - Short-term investments 13,604 13,604 - - 13,604 Restricted cash 11,055 11,055 11,055 - - Long-term investments and accrued interest 15,371 18,074 - - 18,074 $ 320,839 $ 323,542 $ 291,864 $ - $ 31,678 Liabilities Term loans and notes $ 1,791,918 $ 1,844,445 $ - $ - $ 1,844,445 Convertible notes (1) 403,544 602,846 602,846 - - Amazon Warrant 127,755 127,755 - 127,755 - $ 2,323,217 $ 2,575,046 $ 602,846 $ 127,755 $ 1,844,445 (1) Carrying value is net of debt discounts and debt issuance costs. Hedge transactions associated with the Convertible Notes are reflected in additional paid-in-capital (see Note 8 to our Financial Statements). Gross unrealized gains on our long-term investments and accrued interest were $0.9 million at September 30, 2018 and $2.7 million at December 31, 2017. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
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 aggregate our operating segments and, therefore, our operating segments 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 (loss) from continuing operations before income taxes 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 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 and other non-operating costs. The following table sets forth Operating Revenue and Direct Contribution for our reportable segments reconciled to Operating Income and Income (loss) from continuing operations before income taxes: For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2017* September 30, 2018 September 30, 2017* Operating Revenue: ACMI $ 288,602 $ 258,109 $ 832,777 $ 687,982 Charter 322,750 243,583 954,725 743,302 Dry Leasing 44,487 30,804 120,837 86,120 Customer incentive asset amortization (4,124 ) (1,531 ) (10,010 ) (2,873 ) Other 4,892 4,783 14,437 13,977 Total Operating Revenue $ 656,607 $ 535,748 $ 1,912,766 $ 1,528,508 Direct Contribution: ACMI $ 51,672 $ 51,185 $ 145,251 $ 139,858 Charter 44,370 34,510 129,738 87,911 Dry Leasing 12,645 10,245 36,195 29,629 Total Direct Contribution for Reportable Segments 108,687 95,940 311,184 257,398 Unallocated income and expenses, net (82,830 ) (63,703 ) (212,373 ) (181,176 ) Loss on early extinguishment of debt - (167 ) - (167 ) Unrealized gain (loss) on financial instruments 46,080 (44,775 ) (11,691 ) (36,225 ) Special charge - - (9,374 ) - Transaction-related expenses (765 ) (1,092 ) (1,275 ) (3,403 ) Loss on disposal of aircraft - (211 ) - (64 ) Income (loss) from continuing operations before income taxes 71,172 (14,008 ) 76,471 36,363 Add back (subtract): Interest income (1,592 ) (1,688 ) (4,704 ) (4,286 ) Interest expense 31,115 26,553 87,639 72,747 Capitalized interest (1,120 ) (1,922 ) (4,335 ) (5,633 ) Loss on early extinguishment of debt - 167 - 167 Unrealized loss (gain) on financial instruments (46,080 ) 44,775 11,691 36,225 Other expense (income) 975 (1,165 ) (10,777 ) (357 ) Operating Income $ 54,470 $ 52,712 $ 155,985 $ 135,226 * The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. The following table disaggregates our Charter segment revenue by customer and service type: For the Three Months Ended September 30, 2018 September 30, 2017 Cargo Passenger Total Cargo Passenger Total Commercial customers $ 158,129 $ 11,651 $ 169,780 $ 113,125 $ 5,607 $ 118,732 AMC 85,267 67,703 152,970 40,164 84,687 124,851 Total Charter Revenue $ 243,396 $ 79,354 $ 322,750 $ 153,289 $ 90,294 $ 243,583 For the Nine Months Ended September 30, 2018 September 30, 2017 Cargo Passenger Total Cargo Passenger Total Commercial customers $ 440,881 $ 14,241 $ 455,122 $ 336,700 $ 9,118 $ 345,818 AMC 264,142 235,461 499,603 165,791 231,693 397,484 Total Charter Revenue $ 705,023 $ 249,702 $ 954,725 $ 502,491 $ 240,811 $ 743,302 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 above and Note 3 to our Financial Statements for further discussion regarding the AMC and Polar). No other customer accounted for more than 10.0% of our Total Operating Revenue. Revenue from DHL was $90.9 million for the three months ended September 30, 2018 and $62.1 million for the three months ended September 30, 2017. Revenue from DHL was $242.8 million for the nine months ended September 30, 2018 and $177.6 million for the nine months ended September 30, 2017. We have not experienced any credit issues with these customers. |
Labor and Legal Proceedings
Labor and Legal Proceedings | 9 Months Ended |
Sep. 30, 2018 | |
Labor And Legal Proceedings [Abstract] | |
Labor and Legal Proceedings | 12. Labor and Legal Proceedings Labor Pilots of Atlas and Southern Air, and flight dispatchers of Atlas and Polar are represented by the International Brotherhood of Teamsters (the “IBT”). We have a five-year collective bargaining agreement (“CBA”) with our Atlas pilots, which became amendable in September 2016 and a four-year CBA with the Southern Air pilots, which became amendable in November 2016. We also have a five-year CBA with our Atlas and Polar dispatchers, which was extended in April 2017 for an additional four years, making the CBA amendable in November 2021. After we completed the acquisition of Southern Air in April 2016, we informed the IBT of our intention to pursue (and we have been pursuing) a complete operational merger of Atlas and Southern Air. Pursuant to the merger provisions in both the Atlas and Southern Air CBAs, joint negotiations for a single CBA for Atlas and Southern Air should commence promptly. Further to this process, once a seniority list is presented to us by the unions, it triggers an agreed-upon time frame to negotiate a new joint CBA with any unresolved issues submitted to binding arbitration. After the merger process began, the IBT filed an application for mediation with the National Mediation Board (“NMB”) on behalf of the Atlas pilots, and subsequently the IBT filed a similar application on behalf of Southern Air pilots. We have opposed both mediation applications as they are not in accordance with the merger provisions in the parties’ existing CBAs. The Atlas and Southern Air CBAs have a defined and streamlined process for negotiating a joint CBA when a merger occurs, as in the case with the Atlas and Southern Air merger. The NMB conducted a premediation investigation on the IBT’s Atlas application in June 2016, which is currently pending (along with the IBT’s Southern Air application). Due to a lack of meaningful progress in such merger discussions, in February 2017, we filed a lawsuit against the IBT to compel arbitration on the issue of whether the merger provisions in Atlas and Southern Air's CBAs apply to the bargaining process. On March 13, 2018, the Southern District Court of New York (“NY Court”) granted the Company’s motion to compel arbitration. The IBT appealed the NY Court’s decision, which is currently pending. The Company and the IBT conducted the Atlas and Southern arbitrations in October 2018. The Company expects to receive the arbitration decisions sometime in early 2019. In August 2018, the Southern Air pilots ratified an agreement between Southern Air and the IBT for interim enhancements to the Southern Air pilots’ CBA. The agreement enhances the wages and work rules of the Southern Air pilots and provides similar terms and conditions of employment to that provided to Atlas pilots in the Atlas CBA. The agreement became effective in September 2018. In September 2017, the Company requested the U.S. District Court for the District of Columbia (the “DC Court”) to issue a preliminary injunction to require the IBT to meet its obligations under the Railway Labor Act of 1926 (the “Railway Labor Act”) and stop the intentional and illegal work slowdowns and service interruptions. In late November 2017, the Court granted the Company’s request to issue a preliminary injunction to require the IBT to meet its obligations under the Railway Labor Act and stop “authorizing, encouraging, permitting, calling, engaging in, or continuing” any illegal pilot slowdown activities, which were intended to gain leverage in pilot contract negotiations with the Company. In addition, the Court ordered the IBT to take affirmative action to prevent and to refrain from continuing any form of interference with the Company’s operations or any other concerted refusal to perform normal pilot operations consistent with its status quo obligations under the Railway Labor Act. In December 2017, the IBT appealed the DC Court’s decision to the U.S. Court of Appeals for the District of Columbia Circuit and oral arguments were held in September 2018. Pending the outcome of the appeal, the preliminary injunction remains in effect. The Company believes the IBT’s appeal will be unsuccessful and expect the preliminary injunction to remain in effect. 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 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 the 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. The case is in its early stages, and various procedural issues are awaiting court determination. The Netherlands proceedings are 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. We are unable to reasonably predict the outcome of the litigation. 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 on board the aircraft 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 $7.5 million in aggregate based on September 30, 2018 exchange rates. 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. 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. The balance was $3.9 million as of September 30, 2018 and $5.1 million as of December 31, 2017, 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 We have certain other contingencies incident to the ordinary course of business. Management does not expect that the ultimate disposition of such other contingencies will materially affect our financial condition, results of operations or cash flows. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 13. 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 Three Months Ended For the Nine Months Ended Numerator: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Income (loss) from continuing operations, net of taxes $ 71,138 $ (24,195 ) $ 59,643 $ 14,884 Less: Unrealized gain on financial instruments, net of tax (46,897 ) - - - Diluted income (loss) from continuing operations, net of tax $ 24,241 $ (24,195 ) $ 59,643 $ 14,884 Denominator: Basic EPS weighted average shares outstanding 25,575 25,262 25,526 25,229 Effect of dilutive warrant 2,471 - - - Effect of dilutive convertible notes 269 - 240 36 Effect of dilutive stock options and restricted stock 432 - 508 557 Diluted EPS weighted average shares outstanding 28,747 25,262 26,274 25,822 Earnings (loss) per share from continuing operations: Basic $ 2.78 $ (0.96 ) $ 2.34 $ 0.59 Diluted $ 0.84 $ (0.96 ) $ 2.27 $ 0.58 Loss per share from discontinued operations: Basic $ (0.00 ) $ 0.00 $ (0.00 ) $ (0.03 ) Diluted $ (0.00 ) $ 0.00 $ (0.00 ) $ (0.03 ) Earnings (loss) per share: Basic $ 2.78 $ (0.96 ) $ 2.33 $ 0.56 Diluted $ 0.84 $ (0.96 ) $ 2.27 $ 0.54 Antidilutive shares related to warrants issued in connection with our Convertible Notes that were out of the money and excluded were 3.0 million for the three and nine months ended September 30, 2018 and 2017. Antidilutive shares related to warrants issued to a customer and restricted share units that were excluded from the calculation of diluted EPS due to losses incurred were 2.2 million for the three months ended September 30, 2017. Diluted shares reflect the potential dilution that could occur from 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 4.7 million for the three and nine months ended September 30, 2018 and 7.6 million for the three and nine months ended September 30, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2018 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 14. Accumulated Other Comprehensive Income (Loss) The following table summarizes the components of Accumulated other comprehensive income (loss): Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2016 $ (5,002 ) $ 9 $ (4,993 ) Reclassification to interest expense 1,216 - 1,216 Tax effect (472 ) - (472 ) Balance as of September 30, 2017 $ (4,258 ) $ 9 $ (4,249 ) Balance as of December 31, 2017 $ (4,002 ) $ 9 $ (3,993 ) Reclassification to interest expense 1,120 - 1,120 Tax effect (265 ) - (265 ) Reclassification of taxes (970 ) - (970 ) Balance as of September 30, 2018 $ (4,117 ) $ 9 $ (4,108 ) Interest Rate Derivatives As of September 30, 2018, there was $5.4 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 related debt. Net realized losses reclassified into earnings was $0.4 million for both the three months ended September 30, 2018 and 2017. Net realized losses reclassified into earnings were $1.1 million and $1.2 million for the nine months ended September 30, 2018 and 2017, respectively. Net realized losses expected to be reclassified into earnings within the next 12 months are $1.4 million as of September 30, 2018. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Warrant Liability | Warrant Liability Common stock warrants classified as a liability are marked-to-market at the end of each reporting period with changes in fair value recorded in Unrealized loss (gain) on financial instruments. We utilize a Monte Carlo simulation approach to estimate the fair value of the warrant liability, which requires inputs such as our common stock price, the warrant strike price, estimated common stock price volatility and risk-free interest rate, among others. Our earnings are affected by changes in our common stock price due to the impact those changes have on the fair value of our warrant liability (see Note 6 to our Financial Statements). |
Heavy Maintenance Policy | Heavy Maintenance Except for engines used on our 747-8F aircraft, we account for heavy maintenance costs for airframes and engines used in our ACMI and Charter segments using the direct expense method. Under this method, heavy maintenance costs are charged to expense upon induction, based on our best estimate of the costs. We account for heavy maintenance costs for airframes and engines used in our Dry Leasing segment and engines used on our 747-8F aircraft using the deferral method. Under this method, we defer the expense recognition of scheduled heavy maintenance events, which are amortized over the estimated period until the next scheduled heavy maintenance event is required. Amortization of deferred maintenance expense included in Depreciation and amortization was $3.3 million and $1.8 million for the three months ended September 30, 2018 and 2017, respectively and was $8.6 million and $3.7 million for the nine months ended September 30, 2018 and 2017. Deferred maintenance included within Deferred costs and other assets is as follows: Deferred Maintenance Balance as of December 31, 2017 $ 63,868 Deferred maintenance costs 35,878 Amortization of deferred maintenance (8,604 ) Balance as of September 30, 2018 $ 91,142 |
Supplemental Cash Flow Information | Supplemental Cash Flow Information 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: September 30, 2018 December 31, 2017 Cash and cash equivalents $ 214,961 $ 280,809 Restricted cash 11,194 11,055 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 226,155 $ 291,864 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2018 In February 2018, the Financial Accounting Standards Board (“FASB”) amended its accounting guidance for the reporting of comprehensive income. The guidance permits entities to reclassify to retained earnings the excess tax effects remaining in accumulated other comprehensive income/(loss) after the reduction in the federal corporate income tax rate from 35% to 21% as a result of the U.S. Tax Cuts and Jobs Act of 2017. The amended guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. We have early adopted the new guidance effective as of January 1, 2018. The adoption of this guidance did not have a material impact on our consolidated financial statements and related disclosures. In May 2014, the FASB amended its accounting guidance for revenue recognition. Subsequently, the FASB issued several clarifications and updates. The fundamental principles of the new standard 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 for the services provided. It also requires additional disclosures necessary for the financial statement users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. We adopted the new guidance on January 1, 2018 using the modified retrospective approach, under which the guidance is applied beginning on the date of adoption. Comparative information has not been restated and continues to be reported under the accounting guidance in effect for those periods. Recent Accounting Pronouncements Not Yet Adopted In February 2016, the FASB amended its accounting guidance for leases. Subsequently, the FASB issued several clarifications and updates. The guidance requires a lessee to recognize assets and liabilities on the balance sheet arising from leases with terms greater than 12 months. While lessor accounting guidance is relatively unchanged, certain amendments were made to conform with changes made to lessee accounting and the amended revenue recognition guidance. The new guidance will continue to classify leases as either finance or operating, with classification affecting the presentation and pattern of expense and income recognition, in the statement of operations. It also requires additional quantitative and qualitative disclosures about leasing arrangements. The guidance is effective as of the beginning of 2019 and upon adoption must be applied using a modified retrospective approach which allows entities to either apply the new guidance to all periods presented or only to the most current period presented. We are still assessing the impact the guidance will have on our financial statements. While we expect that recognizing the right-of-use asset and related lease liability will impact our consolidated balance sheets materially, we do not expect the guidance to have a material impact to any of our other consolidated financial statements. We will adopt the new guidance on its required effective date of January 1, 2019 and apply the new guidance to the most current period presented. Our implementation is progressing as expected. |
Revenue Recognition | Adoption We adopted the new revenue recognition guidance using the modified retrospective method and applied it to all customer contracts, excluding Dry Leasing contracts, based on the contract terms in effect as of January 1, 2018. Revenue under our Dry Leasing contracts is explicitly excluded from the scope of the new guidance |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Summary Of Significant Accounting Policies Tables [Abstract] | |
Schedule of Deferred Maintenance | Deferred maintenance included within Deferred costs and other assets is as follows Deferred Maintenance Balance as of December 31, 2017 $ 63,868 Deferred maintenance costs 35,878 Amortization of deferred maintenance (8,604 ) Balance as of September 30, 2018 $ 91,142 |
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: September 30, 2018 December 31, 2017 Cash and cash equivalents $ 214,961 $ 280,809 Restricted cash 11,194 11,055 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 226,155 $ 291,864 |
Related Parties (Tables)
Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
Summary of Transactions with Polar | The following table summarizes our transactions with Polar: For the Three Months Ended For the Nine Months Ended Revenue and Expenses: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Revenue from Polar $ 99,671 $ 105,985 $ 305,401 $ 317,144 Ground handling and airport fees to Polar 841 800 2,219 1,926 Accounts receivable/payable as of: September 30, 2018 December 31, 2017 Receivables from Polar $ 15,954 $ 9,558 Payables to Polar 5,391 2,751 Aggregate Carrying Value of Polar Investment as of: September 30, 2018 December 31, 2017 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of New Revenue Recognition Guidance using Modified Retrospective Method | We adopted the new revenue recognition guidance using the modified retrospective method and applied it to all customer contracts, excluding Dry Leasing contracts, based on the contract terms in effect as of January 1, 2018. Revenue under our Dry Leasing contracts is explicitly excluded from the scope of the new guidance Balance Balance December 31, 2017 Adjustments January 1, 2018 Accounts receivable $ 194,478 $ (407 ) $ 194,071 Accrued liabilities 454,843 3,614 458,457 Deferred taxes 214,694 (895 ) 213,799 Retained earnings 1,271,545 (3,126 ) 1,268,419 |
Summary of Impact of Adoption of New Revenue Recognition Guidance on Consolidated Statement of Operation and Balance Sheet | The following tables provide disclosure of the impact of adoption of the new revenue recognition guidance on our consolidated statement of operations and balance sheet: For the Three Months Ended September 30, 2018 As Reported Amounts without Adoption of New Revenue Recognition Guidance Effect of Change Inc/(Dec) Consolidated Statement of Operations Operating Revenue $ 656,607 $ 658,655 $ (2,048 ) Operating Expenses Other 46,318 47,041 (723 ) Income (loss) from continuing operations before income taxes 71,172 72,497 (1,325 ) Income tax expense 34 325 (291 ) Income (loss) from continuing operations, net of taxes 71,138 72,172 (1,034 ) For the Nine Months Ended September 30, 2018 As Reported Amounts without Adoption of New Revenue Recognition Guidance Effect of Change Inc/(Dec) Consolidated Statement of Operations Operating Revenue $ 1,912,766 $ 1,914,701 $ (1,935 ) Operating Expenses Other 143,663 143,075 588 Income (loss) from continuing operations before income taxes 76,471 78,994 (2,523 ) Income tax expense 16,828 17,383 (555 ) Income (loss) from continuing operations, net of taxes 59,643 61,611 (1,968 ) As of September 30, 2018 As Reported Amounts without Adoption of New Revenue Recognition Guidance Effect of Change Inc/(Dec) Consolidated Balance Sheet Assets Accounts receivable, net $ 254,425 $ 255,002 $ (577 ) Liabilities and Equity Accrued liabilities 482,085 480,139 1,946 Deferred taxes 231,673 232,228 (555 ) Retained earnings 1,328,982 1,330,950 (1,968 ) |
Summary of Significant Changes in Deferred Revenue Liability Balances | 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 nine months ended September 30, 2018 were as follows: Deferred Revenue Balance at beginning of period $ 14,958 Revenue recognized (34,465 ) Amounts collected or invoiced 45,085 Balance at end of period $ 25,578 |
Amazon (Tables)
Amazon (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Warrants And Rights Note Disclosure [Abstract] | |
Summary of the Customer Incentive Asset | The following table provides a summary of the customer incentive asset: Balance at December 31, 2017 $ 106,538 Initial value for vested portion of warrant 76,419 Amortization of customer incentive asset (10,010 ) Balance at September 30, 2018 $ 172,947 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accrued Liabilities Current And Noncurrent [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of: September 30, 2018 December 31, 2017 Maintenance $ 162,194 $ 156,042 Customer maintenance reserves 100,350 89,037 Salaries, wages and benefits 62,903 65,546 U.S. class action settlement - 30,000 Aircraft fuel 37,602 22,196 Deferred revenue 36,685 20,986 Other 82,351 71,036 Accrued liabilities $ 482,085 $ 454,843 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Terms for Each Term Loan | The following table summarizes the terms for each term loan entered into during 2018 (in millions): Issue Face Collateral Original Fixed Interest Date Value Type Term Rate First 2018 Term Loan March 2018 $ 19.4 None 60 months 3.12% Second 2018 Term Loan May 2018 83.5 777-200 120 months 4.63% Third 2018 Term Loan May 2018 83.5 777-200 120 months 4.63% Fourth 2018 Term Loan May 2018 20.1 None 60 months 3.31% Fifth 2018 Term Loan June 2018 21.1 767-300 108 months 3.97% Sixth 2018 Term Loan June 2018 3.9 767-300 108 months 5.14% Seventh 2018 Term Loan June 2018 20.7 767-300 108 months 3.98% Eighth 2018 Term Loan June 2018 4.0 767-300 108 months 5.14% Ninth 2018 Term Loan June 2018 20.9 767-300 108 months 3.98% Tenth 2018 Term Loan June 2018 4.0 767-300 108 months 5.13% Eleventh 2018 Term Loan June 2018 4.0 767-300 98 months 5.10% Twelfth 2018 Term Loan June 2018 4.0 767-300 104 months 5.11% Thirteenth 2018 Term Loan June 2018 4.0 767-300 106 months 5.11% Fourteenth 2018 Term Loan June 2018 4.0 767-300 106 months 5.11% Fifteenth 2018 Term Loan June 2018 4.0 767-300 108 months 5.11% Sixteenth 2018 Term Loan June 2018 4.0 767-300 108 months 5.11% Seventeenth 2018 Term Loan July 2018 20.4 None 60 months 3.38% Eighteenth 2018 Term Loan September 2018 21.0 767-300 108 months 4.04% Nineteenth 2018 Term Loan September 2018 4.0 767-300 108 months 5.19% Twentieth 2018 Term Loan September 2018 21.0 767-300 108 months 4.04% Twenty-first 2018 Term Loan September 2018 4.0 767-300 108 months 5.19% Twenty-second 2018 Term Loan September 2018 21.0 767-300 108 months 4.04% Twenty-third 2018 Term Loan September 2018 4.0 767-300 108 months 5.19% Total $ 400.5 |
Schedule of Convertible Notes | The Convertible Notes consisted of the following as of September 30, 2018: 2017 Convertible Notes 2015 Convertible Notes Remaining life in months 68 44 Liability component: Gross proceeds $ 289,000 $ 224,500 Less: debt discount, net of amortization (58,841 ) (30,676 ) Less: debt issuance cost, net of amortization (4,640 ) (2,901 ) Net carrying amount $ 225,519 $ 190,923 Equity component (1) $ 70,140 $ 52,903 (1) Included in Additional paid-in capital on the consolidated balance sheet as of September 30, 2018. |
Summary of Interest Expense Recognized | The following table presents the amount of interest expense recognized related to the Convertible Notes: For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Contractual interest coupon $ 2,618 $ 2,618 $ 7,853 $ 5,730 Amortization of debt discount 3,994 3,752 11,798 7,990 Amortization of debt issuance costs 397 352 1,119 776 Total interest expense recognized $ 7,009 $ 6,722 $ 20,770 $ 14,496 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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: September 30, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 214,961 $ 214,961 $ 214,961 $ - $ - Short-term investments 18,511 18,511 - - 18,511 Restricted cash 11,194 11,194 11,194 - - Long-term investments and accrued interest 1,722 2,649 - - 2,649 $ 246,388 $ 247,315 $ 226,155 $ - $ 21,160 Liabilities Term loans and notes $ 2,120,532 $ 2,083,788 $ - $ - $ 2,083,788 Convertible notes (1) 416,442 607,377 607,377 - - Amazon Warrant 215,865 215,865 - 215,865 - $ 2,752,839 $ 2,907,030 $ 607,377 $ 215,865 $ 2,083,788 December 31, 2017 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 280,809 $ 280,809 $ 280,809 $ - $ - Short-term investments 13,604 13,604 - - 13,604 Restricted cash 11,055 11,055 11,055 - - Long-term investments and accrued interest 15,371 18,074 - - 18,074 $ 320,839 $ 323,542 $ 291,864 $ - $ 31,678 Liabilities Term loans and notes $ 1,791,918 $ 1,844,445 $ - $ - $ 1,844,445 Convertible notes (1) 403,544 602,846 602,846 - - Amazon Warrant 127,755 127,755 - 127,755 - $ 2,323,217 $ 2,575,046 $ 602,846 $ 127,755 $ 1,844,445 (1) Carrying value is net of debt discounts and debt issuance costs. Hedge transactions associated with the Convertible Notes are reflected in additional paid-in-capital (see Note 8 to our Financial Statements). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 and Income (loss) from continuing operations before income taxes: For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2017* September 30, 2018 September 30, 2017* Operating Revenue: ACMI $ 288,602 $ 258,109 $ 832,777 $ 687,982 Charter 322,750 243,583 954,725 743,302 Dry Leasing 44,487 30,804 120,837 86,120 Customer incentive asset amortization (4,124 ) (1,531 ) (10,010 ) (2,873 ) Other 4,892 4,783 14,437 13,977 Total Operating Revenue $ 656,607 $ 535,748 $ 1,912,766 $ 1,528,508 Direct Contribution: ACMI $ 51,672 $ 51,185 $ 145,251 $ 139,858 Charter 44,370 34,510 129,738 87,911 Dry Leasing 12,645 10,245 36,195 29,629 Total Direct Contribution for Reportable Segments 108,687 95,940 311,184 257,398 Unallocated income and expenses, net (82,830 ) (63,703 ) (212,373 ) (181,176 ) Loss on early extinguishment of debt - (167 ) - (167 ) Unrealized gain (loss) on financial instruments 46,080 (44,775 ) (11,691 ) (36,225 ) Special charge - - (9,374 ) - Transaction-related expenses (765 ) (1,092 ) (1,275 ) (3,403 ) Loss on disposal of aircraft - (211 ) - (64 ) Income (loss) from continuing operations before income taxes 71,172 (14,008 ) 76,471 36,363 Add back (subtract): Interest income (1,592 ) (1,688 ) (4,704 ) (4,286 ) Interest expense 31,115 26,553 87,639 72,747 Capitalized interest (1,120 ) (1,922 ) (4,335 ) (5,633 ) Loss on early extinguishment of debt - 167 - 167 Unrealized loss (gain) on financial instruments (46,080 ) 44,775 11,691 36,225 Other expense (income) 975 (1,165 ) (10,777 ) (357 ) Operating Income $ 54,470 $ 52,712 $ 155,985 $ 135,226 * The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. |
Schedule of Disaggregated Charter Segment Revenue by Customer and Service Type | The following table disaggregates our Charter segment revenue by customer and service type: For the Three Months Ended September 30, 2018 September 30, 2017 Cargo Passenger Total Cargo Passenger Total Commercial customers $ 158,129 $ 11,651 $ 169,780 $ 113,125 $ 5,607 $ 118,732 AMC 85,267 67,703 152,970 40,164 84,687 124,851 Total Charter Revenue $ 243,396 $ 79,354 $ 322,750 $ 153,289 $ 90,294 $ 243,583 For the Nine Months Ended September 30, 2018 September 30, 2017 Cargo Passenger Total Cargo Passenger Total Commercial customers $ 440,881 $ 14,241 $ 455,122 $ 336,700 $ 9,118 $ 345,818 AMC 264,142 235,461 499,603 165,791 231,693 397,484 Total Charter Revenue $ 705,023 $ 249,702 $ 954,725 $ 502,491 $ 240,811 $ 743,302 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted EPS | 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 Three Months Ended For the Nine Months Ended Numerator: September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Income (loss) from continuing operations, net of taxes $ 71,138 $ (24,195 ) $ 59,643 $ 14,884 Less: Unrealized gain on financial instruments, net of tax (46,897 ) - - - Diluted income (loss) from continuing operations, net of tax $ 24,241 $ (24,195 ) $ 59,643 $ 14,884 Denominator: Basic EPS weighted average shares outstanding 25,575 25,262 25,526 25,229 Effect of dilutive warrant 2,471 - - - Effect of dilutive convertible notes 269 - 240 36 Effect of dilutive stock options and restricted stock 432 - 508 557 Diluted EPS weighted average shares outstanding 28,747 25,262 26,274 25,822 Earnings (loss) per share from continuing operations: Basic $ 2.78 $ (0.96 ) $ 2.34 $ 0.59 Diluted $ 0.84 $ (0.96 ) $ 2.27 $ 0.58 Loss per share from discontinued operations: Basic $ (0.00 ) $ 0.00 $ (0.00 ) $ (0.03 ) Diluted $ (0.00 ) $ 0.00 $ (0.00 ) $ (0.03 ) Earnings (loss) per share: Basic $ 2.78 $ (0.96 ) $ 2.33 $ 0.56 Diluted $ 0.84 $ (0.96 ) $ 2.27 $ 0.54 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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): Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2016 $ (5,002 ) $ 9 $ (4,993 ) Reclassification to interest expense 1,216 - 1,216 Tax effect (472 ) - (472 ) Balance as of September 30, 2017 $ (4,258 ) $ 9 $ (4,249 ) Balance as of December 31, 2017 $ (4,002 ) $ 9 $ (3,993 ) Reclassification to interest expense 1,120 - 1,120 Tax effect (265 ) - (265 ) Reclassification of taxes (970 ) - (970 ) Balance as of September 30, 2018 $ (4,117 ) $ 9 $ (4,108 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - Polar [Member] | 9 Months Ended |
Sep. 30, 2018 | |
Basis Of Presentation [Line Items] | |
Equity interest | 51.00% |
Voting interest | 75.00% |
Summary of Significant Account
Summary of Significant Account Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||
Deferred maintenance amortization expense | $ 3,300 | $ 1,800 | $ 8,604 | $ 3,700 | |
Federal corporate income tax rate | 21.00% | 35.00% |
Summary of Significant Accoun_4
Summary of Significant Account Policies - Schedule of Deferred Maintenance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Heavy Maintenance Abstract | ||||
Beginning Balance | $ 63,868 | |||
Deferred maintenance costs | 35,878 | |||
Amortization of deferred maintenance | $ (3,300) | $ (1,800) | (8,604) | $ (3,700) |
Ending Balance | $ 91,142 | $ 91,142 |
Summary of Significant Accoun_5
Summary of Significant Account Policies - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 214,961 | $ 280,809 | ||
Restricted cash | 11,194 | 11,055 | ||
Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows | $ 226,155 | $ 291,864 | $ 176,280 | $ 138,250 |
Related Parties - Polar - Addit
Related Parties - Polar - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Polar [Member] | |
Related Party Transaction [Line Items] | |
Equity interest | 51.00% |
Voting interest | 75.00% |
DHL [Member] | Polar [Member] | |
Related Party Transaction [Line Items] | |
Equity interest | 49.00% |
Voting interest | 25.00% |
Related Parties - Summary of Tr
Related Parties - Summary of Transactions with Polar (Details) - Polar [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||||
Revenue from related party | $ 99,671 | $ 105,985 | $ 305,401 | $ 317,144 | |
Ground handling and airport fees to Polar | 841 | $ 800 | 2,219 | $ 1,926 | |
Receivables from related party | 15,954 | 15,954 | $ 9,558 | ||
Payables to related party | 5,391 | 5,391 | 2,751 | ||
Aggregate Carrying Value of Polar Investment | $ 4,870 | $ 4,870 | $ 4,870 |
Related Parties - GATS - Additi
Related Parties - GATS - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
GATS [Member] | ||
Related Party Transaction [Line Items] | ||
Voting interest | 50.00% | |
Investment in joint venture | $ 22.4 | $ 22.1 |
GATS [Member] | ||
Related Party Transaction [Line Items] | ||
Payables to related party | $ 0.9 | $ 0.4 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of New Revenue Recognition Guidance using Modified Retrospective Method (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Revenue Recognition [Line Items] | |||
Accounts receivable | $ 254,425 | $ 194,478 | |
Accrued liabilities | 482,085 | 454,843 | |
Deferred taxes | 231,673 | 214,694 | |
Retained earnings | 1,328,982 | 1,271,545 | |
Accounting Standards Update 2014-09 [Member] | |||
Revenue Recognition [Line Items] | |||
Accounts receivable | $ 194,071 | ||
Accrued liabilities | 458,457 | ||
Deferred taxes | 213,799 | ||
Retained earnings | 1,268,419 | ||
Accounting Standards Update 2014-09 [Member] | Balances without Adoption of New Revenue Guidance [Member] | |||
Revenue Recognition [Line Items] | |||
Accounts receivable | 255,002 | 194,478 | |
Accrued liabilities | 480,139 | 454,843 | |
Deferred taxes | 232,228 | 214,694 | |
Retained earnings | 1,330,950 | $ 1,271,545 | |
Accounting Standards Update 2014-09 [Member] | Adjustments [Member] | |||
Revenue Recognition [Line Items] | |||
Accounts receivable | (577) | (407) | |
Accrued liabilities | 1,946 | 3,614 | |
Deferred taxes | (555) | (895) | |
Retained earnings | $ (1,968) | $ (3,126) |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Impact of Adoption of New Revenue Recognition Guidance on Consolidated Statement of Operation and Balance Sheet (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Jan. 01, 2018 | Dec. 31, 2017 | |||
Revenue Recognition [Line Items] | ||||||||
Operating Revenue | $ 656,607 | $ 535,748 | [1] | $ 1,912,766 | $ 1,528,508 | [1] | ||
Operating Expenses | ||||||||
Other | 46,318 | 42,598 | 143,663 | 123,121 | ||||
Income (loss) from continuing operations before income taxes | 71,172 | (14,008) | [1] | 76,471 | 36,363 | [1] | ||
Income tax expense | 34 | 10,187 | 16,828 | 21,479 | ||||
Income (loss) from continuing operations, net of taxes | 71,138 | $ (24,195) | 59,643 | $ 14,884 | ||||
Assets | ||||||||
Accounts receivable, net | 254,425 | 254,425 | $ 194,478 | |||||
Liabilities and Equity | ||||||||
Accrued liabilities | 482,085 | 482,085 | 454,843 | |||||
Deferred taxes | 231,673 | 231,673 | 214,694 | |||||
Retained earnings | 1,328,982 | 1,328,982 | 1,271,545 | |||||
Accounting Standards Update 2014-09 [Member] | ||||||||
Assets | ||||||||
Accounts receivable, net | $ 194,071 | |||||||
Liabilities and Equity | ||||||||
Accrued liabilities | 458,457 | |||||||
Deferred taxes | 213,799 | |||||||
Retained earnings | 1,268,419 | |||||||
Accounting Standards Update 2014-09 [Member] | Amounts without Adoption of New Revenue Recognition Guidance [Member] | ||||||||
Revenue Recognition [Line Items] | ||||||||
Operating Revenue | 658,655 | 1,914,701 | ||||||
Operating Expenses | ||||||||
Other | 47,041 | 143,075 | ||||||
Income (loss) from continuing operations before income taxes | 72,497 | 78,994 | ||||||
Income tax expense | 325 | 17,383 | ||||||
Income (loss) from continuing operations, net of taxes | 72,172 | 61,611 | ||||||
Assets | ||||||||
Accounts receivable, net | 255,002 | 255,002 | 194,478 | |||||
Liabilities and Equity | ||||||||
Accrued liabilities | 480,139 | 480,139 | 454,843 | |||||
Deferred taxes | 232,228 | 232,228 | 214,694 | |||||
Retained earnings | 1,330,950 | 1,330,950 | $ 1,271,545 | |||||
Accounting Standards Update 2014-09 [Member] | Effect of Change Inc/(Dec) [Member] | ||||||||
Revenue Recognition [Line Items] | ||||||||
Operating Revenue | (2,048) | (1,935) | ||||||
Operating Expenses | ||||||||
Other | (723) | 588 | ||||||
Income (loss) from continuing operations before income taxes | (1,325) | (2,523) | ||||||
Income tax expense | (291) | (555) | ||||||
Income (loss) from continuing operations, net of taxes | (1,034) | (1,968) | ||||||
Assets | ||||||||
Accounts receivable, net | (577) | (577) | (407) | |||||
Liabilities and Equity | ||||||||
Accrued liabilities | 1,946 | 1,946 | 3,614 | |||||
Deferred taxes | (555) | (555) | (895) | |||||
Retained earnings | $ (1,968) | $ (1,968) | $ (3,126) | |||||
[1] | The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Significant Changes in Deferred Revenue Liability Balances (Details) - Non-Dry Lease Revenue Contracts with Customers [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Revenue Recognition [Line Items] | |
Balance at beginning of period | $ 14,958 |
Revenue recognized | (34,465) |
Amounts collected or invoiced | 45,085 |
Balance at end of period | $ 25,578 |
Revenue Recognition - Addtional
Revenue Recognition - Addtional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Revenue Recognition [Line Items] | ||
Accounts receivable related to customer contracts excluding dry leasing contracts | $ 219 | $ 173.2 |
Maximum [Member] | Charter Services [Member] | ||
Revenue Recognition [Line Items] | ||
Amortization period of sales commissions incurred | 1 year | |
Maximum [Member] | Other Services [Member] | ||
Revenue Recognition [Line Items] | ||
Unsatisfied performance obligation, expected measurement period for revenue | 1 year |
Special Charge and Other Expe_2
Special Charge and Other Expense (Income) - Additional Information (Details) - CF6-80 Engines [Member] $ in Millions | 3 Months Ended | 9 Months Ended |
Jun. 30, 2018Engine | Sep. 30, 2018USD ($)Engine | |
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||
Number of assets held for sale | Engine | 5 | |
Number of assets traded | Engine | 4 | |
Number of remaining assets held for sale | Engine | 1 | |
Impairment loss recognized for held for sale assets | $ | $ 9.4 | |
Other Expense (Income) [Member] | ||
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||
Aircraft rent refund | $ | 12.4 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||
Carrying value of asset held for sale | $ | $ 1.3 |
Amazon - Additional Information
Amazon - Additional Information (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
May 31, 2016 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Class Of Warrant Or Right [Line Items] | ||||||
Right to acquire outstanding common shares | up to 20% of our outstanding common shares | |||||
Warrant exercise price | $ 37.50 | |||||
Warrant for number of shares vested immediately | 3,750,000 | |||||
Warrant to buy number of shares vesting | 3,750,000 | 750,000 | 2,250,000 | |||
Vesting increments of Amazon warrants | 375,000 | |||||
Warrant vesting year | 2,021 | |||||
Warrants exercised | 0 | |||||
Additional warrant to acquire outstanding shares | up to an additional 10% of our outstanding common shares | |||||
Additional warrant exercise price | $ 37.50 | |||||
Additional warrant to buy number of shares vesting | 3,750,000 | |||||
Portion of warrant vested | 0 | 0 | ||||
Additional warrant vesting year | 2,023 | |||||
Amortization of customer incentive asset | $ 4,100,000 | $ 1,500,000 | $ 10,010,000 | $ 2,900,000 | ||
Impairment losses of customer incentive asset | 0 | 0 | ||||
Warrant liability unrealized losses (gains) | (46,100,000) | $ 44,800,000 | 11,700,000 | $ 36,200,000 | ||
Fair value of warrant liability | $ 215,900,000 | $ 127,800,000 | $ 215,900,000 | |||
Maximum [Member] | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Warrant providing right to acquire outstanding common shares percentage | 20.00% | |||||
Percentage of additional warrant to acquire outstanding common shares | 10.00% | |||||
Dry Leases [Member] | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Lease term | 10 years | 10 years | ||||
CMI Operation [Member] | ||||||
Class Of Warrant Or Right [Line Items] | ||||||
Lease term | 7 years | 7 years |
Amazon - Summary of the Custome
Amazon - Summary of the Customer Incentive Asset (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Warrants And Rights Note Disclosure [Abstract] | ||||
Balance at December 31, 2017 | $ 106,538 | |||
Initial value for vested portion of warrant | 76,419 | |||
Amortization of customer incentive asset | $ (4,100) | $ (1,500) | (10,010) | $ (2,900) |
Balance at September 30, 2018 | $ 172,947 | $ 172,947 |
Accrued Liabilities - Schedule
Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Accrued Liabilities Current And Noncurrent [Abstract] | ||
Maintenance | $ 162,194 | $ 156,042 |
Customer maintenance reserves | 100,350 | 89,037 |
Salaries, wages and benefits | 62,903 | 65,546 |
U.S. class action settlement | 0 | 30,000 |
Aircraft fuel | 37,602 | 22,196 |
Deferred revenue | 36,685 | 20,986 |
Other | 82,351 | 71,036 |
Accrued liabilities | $ 482,085 | $ 454,843 |
Debt - Term Loan - Additional I
Debt - Term Loan - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Unsecured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Debt instrument frequency of periodic payment | payment of principal and interest either monthly or quarterly in arrears at a fixed interest rate |
Debt - Schedule of Terms for Ea
Debt - Schedule of Terms for Each Term Loan (Details) - Term Loans [Member] | 9 Months Ended |
Sep. 30, 2018USD ($) | |
Debt Instrument [Line Items] | |
Face Value | $ 400,500,000 |
First 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-03 |
Face Value | $ 19,400,000 |
Collateral Type | None |
Original Term | 60 months |
Fixed Interest Rate | 3.12% |
Second 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-05 |
Face Value | $ 83,500,000 |
Collateral Type | 777-200 |
Original Term | 120 months |
Fixed Interest Rate | 4.63% |
Third 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-05 |
Face Value | $ 83,500,000 |
Collateral Type | 777-200 |
Original Term | 120 months |
Fixed Interest Rate | 4.63% |
Fourth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-05 |
Face Value | $ 20,100,000 |
Collateral Type | None |
Original Term | 60 months |
Fixed Interest Rate | 3.31% |
Fifth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 21,100,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 3.97% |
Sixth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 3,900,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 5.14% |
Seventh 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 20,700,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 3.98% |
Eighth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 5.14% |
Ninth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 20,900,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 3.98% |
Tenth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 5.13% |
Eleventh 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 98 months |
Fixed Interest Rate | 5.10% |
Twelfth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 104 months |
Fixed Interest Rate | 5.11% |
Thirteenth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 106 months |
Fixed Interest Rate | 5.11% |
Fourteenth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 106 months |
Fixed Interest Rate | 5.11% |
Fifteenth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 5.11% |
Sixteenth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-06 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 5.11% |
Seventeenth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-07 |
Face Value | $ 20,400,000 |
Collateral Type | None |
Original Term | 60 months |
Fixed Interest Rate | 3.38% |
Eighteenth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-09 |
Face Value | $ 21,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 4.04% |
Ninteenth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-09 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 5.19% |
Twentieth 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-09 |
Face Value | $ 21,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 4.04% |
Twenty-first 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-09 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 5.19% |
Twenty-second 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-09 |
Face Value | $ 21,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 4.04% |
Twenty-third 2018 Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2018-09 |
Face Value | $ 4,000,000 |
Collateral Type | 767-300 |
Original Term | 108 months |
Fixed Interest Rate | 5.19% |
Debt - Convertible Notes - Addi
Debt - Convertible Notes - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | ||
May 31, 2017 | Jun. 30, 2015 | Sep. 30, 2018 | |
2017 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible notes aggregate principal amount | $ 289,000 | $ 289,000 | |
Convertable notes, interest rate | 1.875% | ||
Convertable notes, date of matruity | Jun. 1, 2024 | ||
2015 Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible notes aggregate principal amount | $ 224,500 | $ 224,500 | |
Convertable notes, interest rate | 2.25% | ||
Convertable notes, date of matruity | Jun. 1, 2022 |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2018 | May 31, 2017 | Jun. 30, 2015 | ||
2017 Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Remaining life in months | 68 months | |||
Gross proceeds | $ 289,000 | $ 289,000 | ||
Less: debt discount, net of amortization | (58,841) | |||
Less: debt issuance cost, net of amortization | (4,640) | |||
Net carrying amount | 225,519 | |||
Equity component | [1] | $ 70,140 | ||
2015 Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Remaining life in months | 44 months | |||
Gross proceeds | $ 224,500 | $ 224,500 | ||
Less: debt discount, net of amortization | (30,676) | |||
Less: debt issuance cost, net of amortization | (2,901) | |||
Net carrying amount | 190,923 | |||
Equity component | [1] | $ 52,903 | ||
[1] | Included in Additional paid-in capital on the consolidated balance sheet as of September 30, 2018. |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Short Term Debt [Line Items] | ||||||
Total interest expense recognized | $ 31,115 | $ 26,553 | [1] | $ 87,639 | $ 72,747 | [1] |
Convertible Notes [Member] | ||||||
Short Term Debt [Line Items] | ||||||
Contractual interest coupon | 2,618 | 2,618 | 7,853 | 5,730 | ||
Amortization of debt discount | 3,994 | 3,752 | 11,798 | 7,990 | ||
Amortization of debt issuance costs | 397 | 352 | 1,119 | 776 | ||
Total interest expense recognized | $ 7,009 | $ 6,722 | $ 20,770 | $ 14,496 | ||
[1] | The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility - Additional Information (Details) - Revolver [Member] - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Sep. 30, 2018 | |
Debt Instrument [Line Items] | ||
Term of revolving credit facility | 3 years | |
Borrowing capacity | $ 150 | |
Outstanding balance | $ 75 | |
Interest rate | 4.49% | |
Unused availability | $ 60.6 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Reconciliation of differences between the U.S. federal statutory income tax rate and the effective income tax rates | |||||
Effective income tax expense rate | 0.00% | 72.70% | 22.00% | 59.10% | |
Federal corporate income tax rate | 21.00% | 35.00% | |||
Deferred income tax benefit related to remeasurement of deferred tax liability | $ 8.7 | $ 8.7 | |||
Aircraft leasing incentive program, reduced income tax rate | 10.00% | ||||
Aircraft leasing incentive program participation expire date | Jul. 31, 2018 | ||||
Aircraft leasing incentive program, reduced income tax rate upon renewal | 8.00% | ||||
Aircraft leasing incentive program participation expiration date upon renewal | Jul. 31, 2023 | ||||
U.S. Internal Revenue Service [Member] | |||||
Reconciliation of differences between the U.S. federal statutory income tax rate and the effective income tax rates | |||||
Income tax examination tax year under examination | 2,015 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Long Term Investments Details [Abstract] | ||
Long-term investments maturing period | 5 years | |
Gross unrealized gains on long-term investments and accrued interest | $ 0.9 | $ 2.7 |
Financial Instruments - Summary
Financial Instruments - Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | |
Assets | |||
Short-term investments | $ 18,511 | $ 13,604 | |
Restricted cash | 11,194 | 11,055 | |
Long-term investments and accrued interest | 1,722 | 15,371 | |
Liabilities | |||
Amazon Warrant | 172,947 | 106,538 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | |||
Assets | |||
Cash and cash equivalents | 214,961 | 280,809 | |
Short-term investments | 18,511 | 13,604 | |
Restricted cash | 11,194 | 11,055 | |
Long-term investments and accrued interest | 1,722 | 15,371 | |
Financial instruments assets | 246,388 | 320,839 | |
Liabilities | |||
Term loans and notes | 2,120,532 | 1,791,918 | |
Convertible notes (1) | [1] | 416,442 | 403,544 |
Amazon Warrant | 215,865 | 127,755 | |
Financial instruments liabilities | 2,752,839 | 2,323,217 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | |||
Assets | |||
Cash and cash equivalents | 214,961 | 280,809 | |
Short-term investments | 18,511 | 13,604 | |
Restricted cash | 11,194 | 11,055 | |
Long-term investments and accrued interest | 2,649 | 18,074 | |
Financial instruments assets | 247,315 | 323,542 | |
Liabilities | |||
Term loans and notes | 2,083,788 | 1,844,445 | |
Convertible notes (1) | [1] | 607,377 | 602,846 |
Amazon Warrant | 215,865 | 127,755 | |
Financial instruments liabilities | 2,907,030 | 2,575,046 | |
Fair Value, Inputs, Level 1 [Member] | |||
Assets | |||
Cash and cash equivalents | 214,961 | 280,809 | |
Short-term investments | 0 | 0 | |
Restricted cash | 11,194 | 11,055 | |
Long-term investments and accrued interest | 0 | 0 | |
Financial instruments assets | 226,155 | 291,864 | |
Liabilities | |||
Term loans and notes | 0 | 0 | |
Convertible notes (1) | [1] | 607,377 | 602,846 |
Amazon Warrant | 0 | 0 | |
Financial instruments liabilities | 607,377 | 602,846 | |
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 and notes | 0 | 0 | |
Convertible notes (1) | [1] | 0 | 0 |
Amazon Warrant | 215,865 | 127,755 | |
Financial instruments liabilities | 215,865 | 127,755 | |
Fair Value, Inputs, Level 3 [Member] | |||
Assets | |||
Cash and cash equivalents | 0 | 0 | |
Short-term investments | 18,511 | 13,604 | |
Restricted cash | 0 | 0 | |
Long-term investments and accrued interest | 2,649 | 18,074 | |
Financial instruments assets | 21,160 | 31,678 | |
Liabilities | |||
Term loans and notes | 2,083,788 | 1,844,445 | |
Convertible notes (1) | [1] | 0 | 0 |
Amazon Warrant | 0 | 0 | |
Financial instruments liabilities | $ 2,083,788 | $ 1,844,445 | |
[1] | Carrying value is net of debt discounts and debt issuance costs. Hedge transactions associated with the Convertible Notes are reflected in additional paid-in-capital (see Note 8 to our Financial Statements). |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($)Segment | Sep. 30, 2017USD ($) | |||
Segment Reporting Information [Line Items] | ||||||
Number of operating segments | Segment | 3 | |||||
Operating Revenue | $ 656,607 | $ 535,748 | [1] | $ 1,912,766 | $ 1,528,508 | [1] |
DHL [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Operating Revenue | $ 90,900 | $ 62,100 | $ 242,800 | $ 177,600 | ||
[1] | The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. |
Segment Reporting - Operating R
Segment Reporting - Operating Revenue and Direct Contribution For Our Reportable Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | [1] | Sep. 30, 2018 | Sep. 30, 2017 | [1] | |
Operating Revenue: | ||||||
Customer incentive asset amortization | $ (4,124) | $ (1,531) | $ (10,010) | $ (2,873) | ||
Other | 4,892 | 4,783 | 14,437 | 13,977 | ||
Operating Revenue | 656,607 | 535,748 | 1,912,766 | 1,528,508 | ||
Direct Contribution: | ||||||
Total Direct Contribution for Reportable Segments | 108,687 | 95,940 | 311,184 | 257,398 | ||
Unallocated income and expenses, net | (82,830) | (63,703) | (212,373) | (181,176) | ||
Loss on early extinguishment of debt | 0 | (167) | 0 | (167) | ||
Unrealized gain (loss) on financial instruments | 46,080 | (44,775) | (11,691) | (36,225) | ||
Special charge | 0 | 0 | (9,374) | 0 | ||
Transaction-related expenses | (765) | (1,092) | (1,275) | (3,403) | ||
Loss on disposal of aircraft | 0 | (211) | 0 | (64) | ||
Income (loss) from continuing operations before income taxes | 71,172 | (14,008) | 76,471 | 36,363 | ||
Interest income | (1,592) | (1,688) | (4,704) | (4,286) | ||
Interest expense | 31,115 | 26,553 | 87,639 | 72,747 | ||
Capitalized interest | (1,120) | (1,922) | (4,335) | (5,633) | ||
Unrealized loss (gain) on financial instruments | (46,080) | 44,775 | 11,691 | 36,225 | ||
Other expense (income) | 975 | (1,165) | (10,777) | (357) | ||
Operating Income | 54,470 | 52,712 | 155,985 | 135,226 | ||
ACMI [Member] | ||||||
Operating Revenue: | ||||||
Operating Revenue | 288,602 | 258,109 | 832,777 | 687,982 | ||
Direct Contribution: | ||||||
Total Direct Contribution for Reportable Segments | 51,672 | 51,185 | 145,251 | 139,858 | ||
Charter [Member] | ||||||
Operating Revenue: | ||||||
Operating Revenue | 322,750 | 243,583 | 954,725 | 743,302 | ||
Direct Contribution: | ||||||
Total Direct Contribution for Reportable Segments | 44,370 | 34,510 | 129,738 | 87,911 | ||
Dry Leasing [Member] | ||||||
Operating Revenue: | ||||||
Operating Revenue | 44,487 | 30,804 | 120,837 | 86,120 | ||
Direct Contribution: | ||||||
Total Direct Contribution for Reportable Segments | $ 12,645 | $ 10,245 | $ 36,195 | $ 29,629 | ||
[1] | The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Disaggregated Charter Segment Revenue by Customer and Service Type (Details) - Charter [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | $ 322,750 | $ 243,583 | [1] | $ 954,725 | $ 743,302 | [1] |
Commercial Customers [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | 169,780 | 118,732 | 455,122 | 345,818 | ||
AMC [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | 152,970 | 124,851 | 499,603 | 397,484 | ||
Cargo [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | 243,396 | 153,289 | 705,023 | 502,491 | ||
Cargo [Member] | Commercial Customers [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | 158,129 | 113,125 | 440,881 | 336,700 | ||
Cargo [Member] | AMC [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | 85,267 | 40,164 | 264,142 | 165,791 | ||
Passenger [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | 79,354 | 90,294 | 249,702 | 240,811 | ||
Passenger [Member] | Commercial Customers [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | 11,651 | 5,607 | 14,241 | 9,118 | ||
Passenger [Member] | AMC [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Total Charter Revenue | $ 67,703 | $ 84,687 | $ 235,461 | $ 231,693 | ||
[1] | The direct contribution amounts for the ACMI and Charter segments and the unallocated income and expenses, net above have been revised to reflect immaterial adjustments. The Company does not believe the impact to the previously issued consolidated financial statements was material. |
Labor and Legal Proceedings - A
Labor and Legal Proceedings - Additional Information (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2018 | Dec. 31, 2017 | |
Brazilian Customs Claim [Member] | ||
Loss Contingencies [Line Items] | ||
Brazilian claims in the aggregate | $ 7.5 | |
Amounts on deposit for Brazilian claims included in deferred costs and other assets | $ 3.9 | $ 5.1 |
Atlas Pilots [Member] | ||
Loss Contingencies [Line Items] | ||
Collective bargaining agreement period | 5 years | |
Southern Air Pilots [Member] | ||
Loss Contingencies [Line Items] | ||
Collective bargaining agreement period | 4 years | |
Atlas and Polar Dispatchers [Member] | ||
Loss Contingencies [Line Items] | ||
Collective bargaining agreement period | 5 years |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Numerator: | ||||
Income (loss) from continuing operations, net of taxes | $ 71,138 | $ (24,195) | $ 59,643 | $ 14,884 |
Less: Unrealized gain on financial instruments, net of tax | (46,897) | |||
Diluted income (loss) from continuing operations, net of tax | $ 24,241 | $ (24,195) | $ 59,643 | $ 14,884 |
Denominator: | ||||
Basic EPS weighted average shares outstanding | 25,575 | 25,262 | 25,526 | 25,229 |
Effect of dilutive warrant | 2,471 | 0 | 0 | 0 |
Effect of dilutive convertible notes | 269 | 0 | 240 | 36 |
Effect of dilutive stock options and restricted stock | 432 | 0 | 508 | 557 |
Diluted EPS weighted average shares outstanding | 28,747 | 25,262 | 26,274 | 25,822 |
Earnings (loss) per share from continuing operations: | ||||
Basic | $ 2.78 | $ (0.96) | $ 2.34 | $ 0.59 |
Diluted | 0.84 | (0.96) | 2.27 | 0.58 |
Loss per share from discontinued operations: | ||||
Basic | 0 | 0 | 0 | (0.03) |
Diluted | 0 | 0 | 0 | (0.03) |
Earnings (loss) per share: | ||||
Basic | 2.78 | (0.96) | 2.33 | 0.56 |
Diluted | $ 0.84 | $ (0.96) | $ 2.27 | $ 0.54 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Restricted shares and units in which performance or market conditions were not satisfied | 4.7 | 7.6 | 4.7 | 7.6 |
Warrants Issued to Customer and Restricted Share Units [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation of diluted EPS | 2.2 | |||
Warrants [Member] | ||||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the calculation of diluted EPS | 3 | 3 | 3 | 3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | $ 1,789,856 | $ 1,517,338 | ||
Reclassification to interest expense | $ 370 | $ 396 | 1,120 | 1,216 |
Income tax expense | (88) | (154) | (265) | (472) |
Reclassification of taxes | (970) | |||
Ending Balance | 1,851,785 | 1,575,169 | 1,851,785 | 1,575,169 |
Interest Rate Derivatives [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (4,002) | (5,002) | ||
Reclassification to interest expense | 1,120 | 1,216 | ||
Income tax expense | (265) | (472) | ||
Reclassification of taxes | (970) | |||
Ending Balance | (4,117) | (4,258) | (4,117) | (4,258) |
Foreign Currency Translation [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | 9 | 9 | ||
Reclassification to interest expense | 0 | 0 | ||
Income tax expense | 0 | 0 | ||
Reclassification of taxes | 0 | |||
Ending Balance | 9 | 9 | 9 | 9 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income Loss [Line Items] | ||||
Beginning Balance | (3,993) | (4,993) | ||
Ending Balance | $ (4,108) | $ (4,249) | $ (4,108) | $ (4,249) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Accumulated Other Comprehensive Income Loss [Abstract] | ||||
Unamortized realized loss in Accumulated other comprehensive income (loss) related to forward-starting interest rate swaps | $ 5.4 | $ 5.4 | ||
Net realized losses reclassified into earnings | 0.4 | $ 0.4 | 1.1 | $ 1.2 |
Realized losses related to forward-starting interest rate swaps expected to be reclassified into earnings within the next 12 months | $ 1.4 | $ 1.4 |