Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 17, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document period end date | Dec. 31, 2019 | ||
Amendment flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Current fiscal year end date | --12-31 | ||
Entity central index key | 0001135185 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-16545 | ||
Entity registrant name | Atlas Air Worldwide Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 2000 Westchester Avenue | ||
Entity Address, Address Line Two | Purchase | ||
Entity Address, State or Province | NY | ||
Entity Address, City or Town | New York | ||
Entity Address, Postal Zip Code | 10577 | ||
City Area Code | 914 | ||
Local Phone Number | 701-8000 | ||
Entity Tax Identification Number | 13-4146982 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | AAWW | ||
Security Exchange Name | NASDAQ | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity filer category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity common stock shares outstanding | 25,956,509 | ||
Entity Public Float | $ 850.7 | ||
Documents Incorporated by Reference | Certain portions of the registrant’s Proxy Statement relating to the 2020 Annual Meeting of Stockholders, to be filed with the Securities and Exchange Commission, are incorporated by reference into Part III. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 103,029 | $ 221,501 |
Short-term investments | 879 | 15,624 |
Restricted cash | 10,401 | 11,240 |
Accounts receivable, net of allowance of $1,822 and $1,563, respectively | 290,119 | 269,320 |
Prepaid expenses, assets held for sale and other current assets | 228,103 | 112,146 |
Total current assets | 632,531 | 629,831 |
Property and Equipment | ||
Flight equipment | 4,880,424 | 5,213,734 |
Ground equipment | 83,584 | 75,939 |
Less: accumulated depreciation | (977,883) | (860,354) |
Flight equipment modifications in progress | 67,101 | 32,916 |
Property and equipment, net | 4,053,226 | 4,462,235 |
Other Assets | ||
Operating lease right-of-use assets | 231,133 | 0 |
Deferred costs and other assets | 391,895 | 345,037 |
Intangible assets, net and goodwill | 76,856 | 97,689 |
Total Assets | 5,385,641 | 5,534,792 |
Current Liabilities | ||
Accounts payable | 79,683 | 87,229 |
Accrued liabilities | 481,725 | 465,669 |
Current portion of long-term debt and finance leases | 395,781 | 264,835 |
Current portion of long-term operating leases | 141,973 | 0 |
Total current liabilities | 1,099,162 | 817,733 |
Other Liabilities | ||
Long-term debt and finance lease | 1,984,902 | 2,205,005 |
Long-term operating leases | 392,832 | 0 |
Deferred taxes | 74,040 | 256,970 |
Financial instruments and other liabilities | 42,526 | 187,120 |
Total other liabilities | 2,494,300 | 2,649,095 |
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; 31,048,842 and 30,582,571 shares issued, 25,870,876 and 25,590,293 shares outstanding (net of treasury stock), as of December 31, 2019 and December 31, 2018, respectively | 310 | 306 |
Additional paid-in-capital | 761,715 | 736,035 |
Treasury stock, at cost; 5,177,966 and 4,992,278 shares, respectively | (213,871) | (204,501) |
Accumulated other comprehensive loss | (2,818) | (3,832) |
Retained earnings | 1,246,843 | 1,539,956 |
Total stockholders’ equity | 1,792,179 | 2,067,964 |
Total Liabilities and Equity | $ 5,385,641 | $ 5,534,792 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1,822 | $ 1,563 |
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 | 31,048,842 | 30,582,571 |
Common stock shares outstanding | 25,870,876 | 25,590,293 |
Treasury stock shares | 5,177,966 | 4,992,278 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Revenue | $ 2,739,189 | $ 2,677,724 | $ 2,156,460 |
Operating Expenses | |||
Salaries, wages and benefits | 599,811 | 536,120 | 456,075 |
Aircraft fuel | 483,827 | 467,569 | 333,046 |
Travel | 189,211 | 166,487 | 144,699 |
Aircraft rent | 155,639 | 162,444 | 142,945 |
Navigation fees, landing fees and other rent | 144,809 | 158,911 | 116,318 |
Passenger and ground handling services | 130,698 | 118,973 | 107,787 |
Loss (gain) on disposal of aircraft | 5,309 | 0 | (31) |
Special charge | 638,373 | 9,374 | 106 |
Transaction-related expenses | 4,164 | 2,111 | 4,509 |
Other | 215,521 | 195,553 | 168,643 |
Total Operating Expenses | 3,200,160 | 2,394,182 | 1,914,486 |
Operating Income (Loss) | (460,971) | 283,542 | 241,974 |
Non-operating Expenses (Income) | |||
Interest income | (4,296) | (6,710) | (6,009) |
Interest expense | 120,330 | 119,378 | 99,687 |
Capitalized interest | (2,274) | (4,727) | (7,389) |
Loss on early extinguishment of debt | 804 | 0 | 167 |
Unrealized (gain) loss on financial instruments | (75,109) | (123,114) | 12,533 |
Other (income) expense, net | (27,668) | (10,659) | (387) |
Total Non-operating Expenses (Income) | 11,787 | (25,832) | 98,602 |
Income (loss) from continuing operations before income taxes | (472,758) | 309,374 | 143,372 |
Income tax (benefit) expense | (179,645) | 38,727 | (80,966) |
Income (loss) from continuing operations, net of taxes | (293,113) | 270,647 | 224,338 |
Loss from discontinued operations, net of taxes | 0 | (80) | (865) |
Net Income (Loss) | $ (293,113) | $ 270,567 | $ 223,473 |
Earnings (loss) per share from continuing operations: | |||
Basic | $ (11.35) | $ 10.60 | $ 8.89 |
Diluted | (11.35) | 5.22 | 8.68 |
Loss per share from discontinued operations: | |||
Basic | 0 | 0 | (0.03) |
Diluted | 0 | 0 | (0.03) |
Earnings (loss) per share: | |||
Basic | (11.35) | 10.60 | 8.85 |
Diluted | $ (11.35) | $ 5.22 | $ 8.64 |
Weighted average shares: | |||
Basic | 25,828 | 25,542 | 25,241 |
Diluted | 25,828 | 28,281 | 25,854 |
Service [Member] | |||
Operating Expenses | |||
Maintenance, materials and repairs | $ 381,701 | $ 359,300 | $ 273,676 |
Depreciation and amortization | $ 251,097 | $ 217,340 | $ 166,713 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ (293,113) | $ 270,567 | $ 223,473 |
Other comprehensive income: | |||
Reclassification to interest expense | 1,336 | 1,485 | 1,621 |
Income tax expense (benefit) | (322) | (354) | (621) |
Other comprehensive income | 1,014 | 1,131 | 1,000 |
Comprehensive Income (Loss) | $ (292,099) | $ 271,698 | $ 224,473 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||
Income (loss) from continuing operations, net of taxes | $ (293,113) | $ 270,647 | $ 224,338 |
Less: Loss from discontinued operations, net of taxes | 0 | (80) | (865) |
Net Income (Loss) | (293,113) | 270,567 | 223,473 |
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 316,821 | 265,553 | 197,463 |
Accretion of debt securities discount | (244) | (888) | (1,172) |
Provision for allowance for doubtful accounts | 41 | 12 | 198 |
Loss on early extinguishment of debt | 804 | 0 | 167 |
Special charge, net of cash payments | 638,373 | 9,374 | 106 |
Unrealized (gain) loss on financial instruments | (75,109) | (123,114) | 12,533 |
Loss (gain) on disposal of aircraft | 5,309 | 0 | (31) |
Deferred taxes | (180,553) | 42,580 | (81,330) |
Stock-based compensation | 25,189 | 20,305 | 22,319 |
Changes in: | |||
Accounts receivable | (22,524) | (74,038) | (33,201) |
Prepaid expenses, current assets and other assets | (66,843) | (57,081) | (67,341) |
Accounts payable and accrued liabilities | (47,807) | 72,310 | 58,535 |
Net cash provided by operating activities | 300,344 | 425,580 | 331,719 |
Investing Activities: | |||
Capital expenditures | (133,554) | (114,415) | (87,555) |
Payments for flight equipment and modifications | (214,236) | (599,401) | (458,464) |
Investment in joint ventures | (2,028) | (1,050) | 0 |
Proceeds from insurance | 38,133 | 0 | 0 |
Proceeds from investments | 15,624 | 13,604 | 4,462 |
Proceeds from disposal of engines | 10,300 | 0 | 0 |
Net cash used for investing activities | (285,761) | (701,262) | (541,557) |
Financing Activities: | |||
Proceeds from debt issuance | 115,992 | 471,625 | 620,568 |
Payment of debt issuance costs | (2,404) | (9,622) | (14,664) |
Payments of debt and finance lease obligations | (344,674) | (250,015) | (207,093) |
Proceeds from revolving credit facility | 100,000 | 135,000 | 150,000 |
Payment of revolving credit facility | 0 | (135,000) | (150,000) |
Customer maintenance reserves and deposits received | 14,736 | 15,590 | 25,784 |
Customer maintenance reserves paid | (8,174) | (250) | (18,538) |
Proceeds from sale of convertible note warrants | 0 | 0 | 38,148 |
Payments for convertible note hedges | 0 | 0 | (70,140) |
Purchase of treasury stock | (9,370) | (10,769) | (10,613) |
Net cash provided by (used for) financing activities | (133,894) | 216,559 | 363,452 |
Net increase (decrease) in cash, cash equivalents and restricted cash | (119,311) | (59,123) | 153,614 |
Cash, cash equivalents and restricted cash at the beginning of period | 232,741 | 291,864 | 138,250 |
Cash, cash equivalents and restricted cash at the end of period | 113,430 | 232,741 | 291,864 |
Noncash Investing and Financing Activities: | |||
Acquisition of flight equipment included in Accounts payable and accrued liabilities | 37,390 | 23,498 | 68,732 |
Acquisition of property and equipment acquired under operating leases | 28,827 | 0 | 0 |
Acquisition of flight equipment under finance lease | $ 10,825 | $ 0 | $ 30,419 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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 (Loss) | 223,473 | 0 | 0 | 0 | 0 | 223,473 |
Other comprehensive income | 1,000 | 0 | 0 | 0 | 1,000 | 0 |
Stock-based compensation | 22,319 | 0 | 0 | 22,319 | 0 | 0 |
Purchase of shares of treasury stock | (10,613) | 0 | (10,613) | 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 warrants | 38,148 | 0 | 0 | 38,148 | 0 | 0 |
Ending Balance at Dec. 31, 2017 | 1,789,856 | 301 | (193,732) | 715,735 | (3,993) | 1,271,545 |
Net Income (Loss) | 270,567 | 0 | 0 | 0 | 0 | 270,567 |
Other comprehensive income | 1,131 | 0 | 0 | 0 | 1,131 | 0 |
Cumulative effect of change in accounting principle | (3,126) | 0 | 0 | 0 | 0 | (3,126) |
Stock-based compensation | 20,305 | 0 | 0 | 20,305 | 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 Dec. 31, 2018 | 2,067,964 | 306 | (204,501) | 736,035 | (3,832) | 1,539,956 |
Net Income (Loss) | (293,113) | 0 | 0 | 0 | 0 | (293,113) |
Other comprehensive income | 1,014 | 0 | 0 | 0 | 1,014 | 0 |
Stock-based compensation | 25,189 | 0 | 0 | 25,189 | 0 | 0 |
Customer warrant | 495 | 0 | 0 | 495 | 0 | 0 |
Purchase of shares of treasury stock | (9,370) | 0 | (9,370) | 0 | 0 | 0 |
Issuance of shares of restricted stock | 0 | 4 | 0 | (4) | 0 | 0 |
Ending Balance at Dec. 31, 2019 | $ 1,792,179 | $ 310 | $ (213,871) | $ 761,715 | $ (2,818) | $ 1,246,843 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Stockholders Equity [Abstract] | |||
Purchase of shares of treasury stock | 185,688 | 180,084 | 195,831 |
Issuance of shares of restricted stock | 466,271 | 477,923 | 471,043 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2019 | |
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. Intercompany accounts and transactions have been eliminated. We account for investments in entities under the equity method of accounting when we hold between 20% and 50% ownership in the entity and exercise significant influence or when we are not the primary beneficiary of a variable interest entity. “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”). Except for per share data, all dollar amounts are in thousands unless otherwise noted. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and judgments that affect the amounts reported in these financial statements and the related disclosures. Actual results may differ from those estimates. Estimates are used in determining, among other items, asset lives and residual values, cash flows and fair values for impairments, operating lease right-of-use assets, heavy maintenance costs, income tax accounting, business combinations, intangible assets, warrants, contingent liabilities (including, but not limited to litigation accruals), valuation allowances (including, but not limited to, those related to receivables, expendable parts inventory and deferred taxes), revenue, stock-based compensation and self-insurance employee benefit accruals. Revenue Recognition 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 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. 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 generally 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 adjustment. 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 all are accounted for as operating leases. We record Dry Lease rental income from fixed payments on a straight-line basis over the term of the operating lease. To manage our residual value risk, we require lessees to perform maintenance on the Dry Leased assets and they may also be required to make maintenance payments to us during or at the end of the lease term. When an aircraft is returned at the end of lease, if we choose not to re-lease or sell the returned aircraft, we typically have the ability to operate the aircraft in our ACMI and Charter segments. Customer maintenance reserves are amounts received during the lease term that are subject to reimbursement to the lessee upon the completion of qualifying maintenance work on the specific Dry Leased asset and are included in Accrued liabilities. We defer revenue recognition for customer maintenance reserves until we are able to finalize the amount, if any, to be reimbursed to the lessee, which is typically at the end of the lease. End of lease maintenance payments are amounts received upon return of the Dry Leased asset based on the utilization of the asset during the lease term. Such payments made to us are recognized as revenue at the end of the lease. Other Services Other services primarily include administrative and management support services and flight simulator training. Revenue for these services is recognized when the services are provided. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and other cash investments that are highly liquid in nature and have original maturities of three months or less at acquisition. Short-term Investments Short-term investments are primarily comprised of certificates of deposit, current portions of debt securities and money market funds. Restricted Cash Cash that is restricted under secured aircraft debt agreements, whereby it can only be used to make principal and interest payments on the related debt secured by those aircraft, is classified as Restricted cash. Accounts Receivable We perform a monthly evaluation of our accounts receivable and establish an allowance for doubtful accounts based on our best estimate of probable credit losses resulting from the inability or unwillingness of our customers to make required payments. Account balances are charged off against the allowance when we determine that the receivable will not be recovered. Expendable Parts Expendable parts, materials and supplies for flight equipment are carried at average acquisition costs and are included in Prepaid expenses, held for sale and other current assets. When used in operations, they are charged to maintenance expense. Allowances for excess and obsolescence for expendable parts expected to be on hand at the date aircraft are retired from service are provided over the estimated useful lives of the related airframes and engines. These allowances are based on management estimates, which are subject to change as conditions in the business evolve. The net book value of expendable parts inventory was $48.3 million as of December 31, 2019 and $49.4 million at December 31, 2018, net of allowances for obsolescence of $30.4 million at December 31, 2019 and $33.0 million at December 31, 2018. Property and Equipment We record property and equipment at cost and depreciate these assets to their estimated residual values on a straight-line basis over their estimated useful lives or average remaining fleet lives. We review these assumptions at least annually and adjust depreciation on a prospective basis. Expenditures for major additions, improvements and flight equipment modifications are generally capitalized and depreciated over the shorter of the estimated life of the improvement, the modified assets’ remaining life or remaining lease term. Most of our flight equipment is specifically pledged as collateral for our indebtedness. The estimated useful lives of our property and equipment are as follows: Range Flight equipment 30 to 40 years Computer software and equipment 3 to 5 years Ground handling equipment and other 3 to 10 years Depreciation expense related to property and equipment was $220.2 million in 2019, $196.6 million in 2018 and $153.1 million in 2017. The net book value of flight equipment on dry lease to customers was $1,465.1 million as of December 31, 2019 and $1,717.5 million as of December 31, 2018. The accumulated depreciation for flight equipment on dry lease to customers was $260.4 million as of December 31, 2019 and $232.4 million as of December 31, 2018. Rotable parts are recorded in Property and equipment, net, and are depreciated over their average remaining fleet lives and written off when they are determined to be beyond economic repair. The net book value of rotable parts inventory was $244.8 million as of December 31, 2019 and $240.7 million as of December 31, 2018. During the fourth quarter of 2019, we recorded an impairment charge of $33.6 million to write down certain rotable parts related to our 747-400 freighter fleet. See Note 5 for further discussion. Capitalized Interest Interest on funds used to finance the acquisition of flight equipment up to the date the asset is ready for its intended use is capitalized and included in the cost of the asset. Included in capitalized interest is the interest paid on the purchase deposit borrowings directly associated with the acquisition of flight equipment. The remainder of capitalized interest recorded on the acquisition of flight equipment is determined by taking the weighted average cost of funds associated with our other debt and applying it against the amounts paid for flight equipment modifications and purchase deposits. Goodwill Goodwill represents the excess of an acquisition’s purchase price over the fair value of the identifiable net assets acquired and liabilities assumed. Goodwill is not amortized, but tested for impairment annually during the fourth quarter of each year, or more frequently if certain events or circumstances indicate that an impairment loss may have been incurred. Our goodwill is not deductible for tax purposes. We may elect to perform a qualitative analysis on the reporting unit that has goodwill to determine whether it is more likely than not that fair value of the reporting unit is less than its carrying value. If the qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we elect not to perform a qualitative analysis, we perform a quantitative analysis to determine whether a goodwill impairment exists. If the fair value of the reporting unit is less than the carrying amount, the difference is written off as an impairment up to the carrying amount of goodwill. Fair value is determined using a discounted cash flow analysis based on key assumptions including, but not limited to, (i) a projection of revenues, expenses and other cash flows; (ii) terminal period earnings; and (iii) an assumed discount rate. The total amount of goodwill was $40.4 million, which is included in Intangible assets, net and goodwill in the consolidated balance sheets as of December 31, 2019 and 2018 (see Note 6). During the fourth quarter of 2019, we performed a quantitative analysis and determined that goodwill was not impaired. Impairment of Long-Lived Assets We record impairment charges for long-lived assets when events and circumstances indicate that the assets may be impaired, the undiscounted cash flows estimated to be generated by those assets are less than the associated carrying amount and the net book value of the assets exceeds the associated estimated fair value. For flight equipment, operating lease right-of-use assets and finite-lived intangibles used in our ACMI and Charter segments, assets are grouped at the operating fleet level for impairment testing. For flight equipment and finite-lived intangibles used in our Dry Leasing segment, assets are assessed at the individual aircraft or engine level for impairment testing. For assets classified as held for sale, an impairment charge is recognized when the estimated fair value less the cost to sell the asset is less than its carrying amount. In developing estimates for flight equipment, operating lease right-of-use assets, and cash flows and our incremental borrowing rate, we use external appraisals, Variable Interest Entities and Off-Balance Sheet Arrangements Dry Leasing Joint Venture We hold a 10% interest in a joint venture with an unrelated third party, which we entered into in December 2019, to develop a diversified freighter aircraft dry leasing portfolio. Through Titan, we provide aircraft- and lease-management services to the joint venture for fees based upon aircraft assets under management, among other things. Our investment in the joint venture is accounted for under the equity method of accounting. Under the joint venture, we have a commitment to provide of up to $40.0 million of capital contributions before December 2022. Our investment in the joint venture was $1.5 million as of December 31, 2019 and our maximum exposure to losses from the entity is limited to our investment. The joint venture does not currently have any third-party debt obligations and no capital contributions have been made as of December 31, 2019. Parts Joint Venture We hold a 50% interest in a joint venture with an unrelated third party to purchase rotable parts and provide repair services for those parts, primarily for 747-8F aircraft. The joint venture is a . Our investment was $20.0 million as of December 31, 2019 and $22.3 million as of December 31, 2018 and our maximum exposure to losses from the entity is limited to our investment, which is composed primarily of rotable inventory parts. The joint venture does not have any third-party debt obligations. We had Accounts payable to the joint venture of $ million as of December 31, 2019 and 2018. EETCs A portion of our operating aircraft are owned or effectively owned and leased through trusts established specifically to purchase, finance and lease aircraft to us. In three separate transactions, we issued enhanced equipment trust certificates (“EETCs”) to finance the acquisition of five 747-400F aircraft as leveraged leases. In a leveraged lease, the owner trustee is the owner of record for the aircraft. Wells Fargo Bank Northwest, National Association (“Wells Fargo”) serves as the owner trustee with respect to the leveraged leases in each of our EETC transactions. As the owner trustee of the aircraft, Wells Fargo serves as the lessor of the aircraft under the EETC lease between us and the owner trustee. Wells Fargo also serves as trustee for the beneficial owner of the aircraft, the owner participant. The original owner participant for each aircraft invested (on an equity basis) approximately 20% of the original cost of the aircraft. The remaining approximately 80% of the aircraft cost was financed with debt issued by the owner trustee on a nonrecourse basis in the form of equipment notes. The equipment notes were generally issued in three series, for each aircraft, designated as Series A, B and C equipment notes. The loans evidenced by the equipment notes were funded by the public offering of EETCs. Like the equipment notes, the EETCs were issued in three series, with each EETC transaction designated as Series A, B and C EETCs. Each series of EETCs was issued by the trustee for separate Atlas pass-through trusts with the same designation as the series of EETCs issued (“PTCs”). Each of these pass-through trustees is also the holder and beneficial owner of the equipment notes bearing the same series designation. These leasing entities meet the criteria for variable interest entities. We have not consolidated any of the aircraft-leasing trusts because we are not the primary beneficiary. We account for these leases as operating leases, see Note 9 for further discussion. Discontinued Operations On April 7, 2016, we completed the acquisition of Southern Air and its subsidiaries, including Southern Air Inc. and Florida West International Airways, Inc. (“Florida West”). As part of integrating Southern Air, management decided and committed to pursue a plan to sell Florida West. As a result, the financial results for Florida West are presented as a discontinued operation. In February 2017, management determined that a sale of Florida West was no longer likely to occur and committed to a plan to wind down its operations. The wind-down of operations was completed in March 2017. Income Taxes Deferred income taxes are recognized for the tax consequences of reporting items in our income tax returns at different times than the items are reflected in our financial statements. These temporary differences result in deferred tax assets and liabilities that are calculated by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. If necessary, deferred income tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount, if any, of the valuation allowance. We have recorded reserves for income taxes that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, we have nevertheless established tax reserves in recognition that various taxing authorities may challenge certain of the positions taken by us, potentially resulting in additional liabilities for taxes. Heavy Maintenance Except 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 after considering multiple factors, including historical costs, experience and information provided by third-party maintenance providers. These estimates may be subsequently adjusted for changes and the final determination of actual costs incurred. 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 is included in Depreciation and amortization. The following table provides a summary of Deferred maintenance included within Deferred costs and other assets as of December 31: 2019 2018 Beginning balance, net $ 103,647 $ 63,868 Deferred maintenance costs 113,076 53,343 Disposals (10,450 ) - Amortization of deferred maintenance (21,994 ) (13,564 ) Ending balance, net $ 184,279 $ 103,647 Prepaid Maintenance Deposits Certain of our aircraft financing agreements require security deposits to our finance providers to ensure that we perform major maintenance as required. These are substantially refundable to us and are accounted for as deposits and included in Prepaid maintenance and in Deferred costs and other assets. Such amounts were $2.2 million as of December 31, 2019 and $3.2 million at December 31, 2018. Foreign Currency While most of our revenues are denominated in U.S. dollars, our results of operations may be exposed to the effect of fluctuations in the U.S. dollar value of foreign currency-denominated operating revenues and expenses. Gains or losses resulting from foreign currency transactions are included within Non-operating Expense (Income). Stock-Based Compensation We have various stock-based compensation plans for certain employees and outside directors, which are described more fully in Note 14. We recognize based on the fair value on grant date We estimate restricted stock unit forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual forfeitures differ from those estimates. As a result, we record stock-based compensation expense only for those awards that are expected to vest. Liquidity During the year ended December 31, 2019, our earnings and cash flows were impacted by macroeconomic conditions affecting the global airfreight market, including tariffs and global trade tensions and geopolitical unrest in certain countries in South America, as well as labor-related service disruptions. Our ability to continue to service our debt and meet our lease and other obligations as they come due is dependent on our continued ability to generate earnings and cash flows. We have implemented certain initiatives, including cost savings and the sale of certain nonessential assets, to mitigate the impact of any continuation or worsening of the aforementioned factors, including the potential impact of the recent coronavirus disruptions. If we are unable to implement these or additional initiatives, it could have a material adverse effect on our financial position, results of operations, and cash flows. As discussed in Note 8, in February 2020, we refinanced two term loans that had payments of $126.2 million due in 2020, included in Current portion of long-term debt and finance leases as of December 31, 2019. We believe the Company will generate sufficient liquidity to satisfy its obligations over the next twelve months. Recent Accounting Pronouncements Adopted in 2019 In January 2017, the Financial Accounting Standards Board (“FASB”) amended its accounting guidance for goodwill impairment. The guidance eliminates the requirement to calculate the implied fair value of goodwill to measure an impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The amended guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We early adopted the new guidance effective as of January 1, 2019. The adoption of this guidance did not have any impact on our consolidated financial statements. 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 continues 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. We adopted the new guidance on January 1, 2019 using the modified retrospective approach, which was applied beginning on the adoption date. Comparative information has not been restated and continues to be reported under the accounting guidance in effect for those periods. The adoption did not have a material effect on our consolidated statements of operations or cash flows. We recognized operating lease right-of-use assets, net of pre-existing deferred rent and operating lease intangibles, and operating lease liabilities on our consolidated balance sheets of approximately $596.9 million and $650.0 million, respectively, on the adoption date (see Note 9). Recent Accounting Pronouncements Not Yet Adopted In November 2019, the FASB amended its accounting guidance for share-based payment awards issued to a customer. The guidance requires share-based payment awards issued to a customer to be recorded as a reduction of the transaction price in revenue based on the fair value at grant date and to be classified on the balance sheet using accounting guidance for stock-based compensation. The amended guidance is effective for fiscal years beginning after December 15, 2019. Effective January 1, 2020, we are adopting the amended guidance and applying the modified retrospective approach to the most current period presented. While we are still assessing the impact the amended guidance will have on our financial statements, we expect approximately $14 million or 60% of our customer warrant liability of $24 million related to revenue contracts, which is included in Financial instruments and other liabilities as of December 31, 2019, will be reclassified as Additional paid-in-capital within Total stockholders’ equity on January 1, 2020. As a result, these customer warrants will no longer be marked-to-market at the end of each reporting period with changes in fair value recorded as an unrealized (gain) loss on financial instruments. The amended guidance will not impact the accounting for the remaining portion of our customer warrant liability related to Dry Lease contracts, which was approximately $10 million or 40% of the total customer warrant liability as of December 31, 2019. The new guidance will not impact how we account for the amortization of the customer incentive asset. |
DHL Investment and Polar
DHL Investment and Polar | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
DHL Investment And Polar | 3. DHL Investment and Polar DHL Network Operations (USA), Inc. (“DHL”), a subsidiary of Deutsche Post AG (“DP”), holds a 49% equity interest and a 25% voting interest in Polar. Polar is a . Under a 20-year blocked space agreement, which began in 2008 (the “BSA”), In accordance with the DHL Agreements, Polar flies for DHL’s transpacific express network and DHL provides financial support and assumes the risks and rewards of the operations of Polar The BSA established DHL’s capacity purchase commitments on Polar flights. The BSA gives DHL the option to terminate the agreements for convenience by giving us a one-year notice on or before October 27, 2022, which would be effective on October 23, 2023. Either party may terminate for cause (as defined) at any time. With respect to DHL, “cause” includes Polar’s inability to meet certain departure and arrival criteria for an extended period of time and upon certain change-of-control events, in which case DHL may be entitled to liquidated damages from Polar. Except for any liquidated damages that we could incur as described above, we do not have any continuing financial exposure to fund debt obligations or operating losses of Polar. Combined with Polar, we provide ACMI, CMI, Charter and Dry Leasing services to support DHL’s transpacific express, North American, intra-Asian, and global networks. In addition, we fly between the Asia Pacific region, the Middle East and Europe on behalf of DHL and other customers. Atlas also provides incremental charter capacity to Polar and DHL from time to time. The following table summarizes the aircraft types, services and number of aircraft provided to Polar and DHL as of December 31, 2019: Aircraft Service Total 747-8F ACMI 6 747-400F ACMI 5 777-200LRF CMI 6 777-200LRF CMI and Dry Leasing 2 767-300 CMI and Dry Leasing 2 767-300 CMI 2 767-200 CMI 9 737-400F CMI 5 757-200F Dry Leasing 1 Total 38 The following table summarizes our transactions with Polar: For the Years Ended December 31, Revenue and Expenses: 2019 2018 2017 Revenue from Polar $ 374,236 $ 412,793 $ 420,564 Ground handling and airport fees to Polar 2,202 2,301 2,746 Accounts receivable/payable as of: December 31, 2019 December 31, 2018 Receivables from Polar 10,855 16,349 Payables to Polar 2,161 2,527 Aggregate Carrying Value of Polar Investment as of: December 31, 2019 December 31, 2018 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 In addition to the amounts in the table above, Atlas recognized revenue of $101.3 million in 2019, $106.9 million in 2018, and $33.5 million in 2017 from flying on behalf of Polar. |
Supplemental Balance Sheet and
Supplemental Balance Sheet and Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |
Supplemental Balance Sheet and Cash Flow Information | 4. Supplemental Balance Sheet and Cash Flow Information Accounts Receivable Accounts receivable, net of allowances related to customer contracts, excluding Dry Leasing contracts, was $247.5 million as of December 31, 2019 and $227.1 million as of December 31, 2018. Accrued Liabilities Accrued liabilities consisted of the following as of December 31: 2019 2018 Maintenance $ 136,315 $ 133,337 Customer maintenance reserves 110,355 104,454 Salaries, wages and benefits 75,719 82,809 Aircraft fuel 28,821 32,641 Deferred revenue 26,357 26,584 Other 104,158 85,844 Accrued liabilities $ 481,725 $ 465,669 Revenue Contract Liability Deferred revenue for customer contracts, excluding Dry Leasing contracts, represents amounts collected from, or invoiced to, customers in advance of revenue recognition. The balance of Deferred revenue will increase or decrease based on the timing of invoices and recognition of revenue. Significant changes in our Deferred Revenue liability balances during the year ended December 31, 2019 were as follows: Deferred Revenue Balance as of December 31, 2018 $ 13,007 Revenue recognized (172,119 ) Amounts collected or invoiced 178,346 Balance as of December 31, 2019 $ 19,234 Supplemental Cash Flow Information Cash interest paid to lenders is calculated on the face amount of our various debt instruments based on the contractual interest rates in effect during each payment period. The following table summarizes interest and income taxes paid: 2019 2018 2017 Interest paid $ 88,788 $ 86,168 $ 73,872 Income taxes paid, net of refunds $ (1,715 ) $ 695 $ 563 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: 2019 2018 Cash and cash equivalents $ 103,029 $ 221,501 Restricted cash 10,401 11,240 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 113,430 $ 232,741 |
Special Charge and Other Income
Special Charge and Other Income | 12 Months Ended |
Dec. 31, 2019 | |
Aircraft And Aircraft Engines Held For Sale [Abstract] | |
Special Charge and Other Income | 5. Special Charge and Other Income The impact of the global airfreight environment and macroeconomic conditions, including tariffs, global trade tensions and geopolitical unrest in certain countries in South America, especially during the fourth quarter, resulted in lower 747-400 commercial cargo yields and aircraft utilization. As a result, we concluded in November 2019 that the 747-400 freighter fleet may be impaired and performed an impairment test. Our reviews of all other asset groups, which includes the remainder of our flight equipment, did not identify any indicators of impairment. Despite the conditions described above that impacted our 747-400 freighter fleet used in our ACMI and Charter segments, demand remained strong and often increased for our other freighter fleet types used in those segments. These include 747-8F, 777-200LRF and 767-300 freighter aircraft, which are used primarily to provide ACMI and CMI services for express and e-commerce customers. For impairment testing, we view the 747-400 freighter fleet, as well as the related engines, operating lease right-of-use assets, rotable parts, and other related equipment as one asset group. The undiscounted cash flows estimated to be generated by those assets were less than the aggregate carrying value. Therefore, we concluded that the carrying amount was no longer recoverable. Consequently, during the fourth quarter of 2019, we recorded an impairment charge of $580.3 million to write down the 747-400 freighter asset group to its estimated fair value, which is included in Special charge included in Total operating expenses in the consolidated statements of operations. In determining fair value, we obtained appraisals or bids from independent third parties for these assets, which considered the effects of the current market environment, age of the assets, and marketability. For rotable parts, the appraisals considered the maintenance condition of the parts. For our owned 747-400 freighter aircraft and spare engines, we made adjustments to the appraisals to reflect the impact of their current maintenance condition to determine fair value . Our estimate of fair value was not based on distressed sales or forced liquidations. The fair value for operating lease right-of-use assets was based on the present value of current market fixed lease rates utilizing our incremental borrowing rate for the remaining term of each lease. Since the fair value was determined using unobservable inputs, the asset group was classified as Level 3 under the fair value hierarchy in November 2019 (see Note 11). During 2019, we also incurred impairment charges related to the write-down of certain CF6-80 engines in our Dry Leasing portfolio that were sold. In addition, we incurred impairment charges related to two 737-400 passenger aircraft previously used for training purposes, certain spare CF6-80 engines that were written down as part of the 747-400 freighter fleet discussed above and three aircraft in our Dry Leasing portfolio, which are all classified as held for sale as of December 31, 2019. Depreciation ceased on the assets when they were classified as held for sale. We estimated the fair value of these assets, less costs to sell, based on bids received from independent third parties. The carrying value of the assets held for sale as of December 31, 2019 was $155.9 million which was included within Prepaid expense, held for sale and other current assets in the consolidated balance sheets. These assets are classified as Level 3 under the fair value hierarchy as of December 31, 2019. In February 2020, we received $12.4 million in proceeds from the sale of one aircraft that was completed. Sale of the remaining aircraft and engines held for sale are expected to be completed in 2020. The following table summarizes the Special charge included in Total operating expenses in the consolidated statements of operations for the year ended December 31, 2019: Impairment of 747-400 freighter aircraft and related assets $ 580,279 Impairment of assets sold, held for sale and other 58,094 Special charge $ 638,373 During 2018, we recognized $9.4 million of impairment in Special charge for the write down of CF6-80 engines that were traded in as part of our engine acquisition program and had been classified as held for sale. Depreciation ceased on the engines when they were classified as held for sale. All of the engines were traded in as of December 31, 2018. During 2019 and 2018, we recognized refunds of $27.6 million and $12.4 million, respectively, related to aircraft rent paid in previous years within Other (income) expense, net. |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net and Goodwill | 6. Intangible Assets, Net and Goodwill The following table presents our Intangible assets, net and goodwill as of December 31: 2019 2018 Lease intangible $ 54,891 $ 54,891 Goodwill 40,361 40,361 Customer relationship 26,280 26,280 Fair value adjustments on leases — 45,531 Less: accumulated amortization (44,676 ) (69,374 ) $ 76,856 $ 97,689 Lease intangibles resulted from the acquisition of various aircraft with in-place Dry Leases to customers on a long-term basis and are accounting guidance on January 1, 2019, fair value adjustments related to operating leases are included in O perating lease r ight-of-use asset s (see Note 9 ) . Amortization expense related to intangible assets amounted to $6.2 million in 2019, $8.8 million in 2018 and $9.5 million in 2017. The estimated future amortization expense of intangible assets as of December 31, 2019 is as follows: 2020 $ 6,030 2021 6,030 2022 6,030 2023 4,853 2024 1,643 Thereafter 11,909 Total $ 36,495 |
Amazon
Amazon | 12 Months Ended |
Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | |
Amazon | 7. Amazon In May 2016, we entered into certain agreements with Amazon.com, Inc. and its subsidiary, Amazon Fulfillment Services, Inc., (collectively “Amazon”), which involve, 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 a total of ten years). Between August 2016 and November 2018, we placed all 20 freighter aircraft into service for Amazon. In conjunction with the agreements entered into in May 2016, we granted Amazon a warrant providing the right to acquire up to 20% of our outstanding common shares, after giving effect to the issuance of shares pursuant to the warrants, at an exercise price of $37.50 per share (“Warrant A”). As of December 31, 2019, this warrant to purchase 7.5 million shares had vested in full. Warrant A is exercisable in accordance with its terms through 2021. As of December 31, 2019, no portion of Warrant A has been exercised. The agreements entered into in May 2016 also provided incentives for future growth of the relationship as Amazon may increase its business with us. In that regard, we granted Amazon a warrant to acquire up to an additional 10% of our outstanding common shares, after giving effect to the issuance of shares pursuant to the warrants, for an exercise price of $37.50 per share (“Warrant B”). This warrant to purchase 3.75 million shares will vest in increments of 37,500 shares each time Amazon has paid $4.2 million of revenue to us, up to a total of $420.0 million, for incremental business beyond the original 20 767-300 freighters. As of December 31, 2019, 75,000 shares of Warrant B have vested. Upon vesting, Warrant B becomes exercisable in accordance with its terms through May 2023. In March 2019, we amended the agreements entered into in 2016 with Amazon, pursuant to which we will provide CMI services using Boeing 737-800 freighter aircraft provided by Amazon. The 737-800 CMI operations will be for a term of seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years). As of December 31, 2019, five 737-800 freighter aircraft entered CMI service. Amazon may, in its sole discretion, place up to 15 additional 737-800 freighter aircraft into service with us by May 31, 2021. In connection with the amended agreements, we granted Amazon a warrant to acquire up to an additional 9.9% of our outstanding common shares, after giving effect to the issuance of shares pursuant to the warrants, for an exercise price of $52.90 per share (“Warrant C”). When combined with Warrant A and Warrant B, this would allow Amazon to acquire up to a total of 39.9% (after the issuance) of our outstanding common shares and Amazon would be entitled to vote the shares it owns up to 14.9% of our outstanding common shares, in its discretion. Amazon would be required to vote any shares it owns in excess of 14.9% of our outstanding common shares in accordance with the recommendation of our board of directors. After Warrant B has vested in full, this warrant to purchase 6.6 million shares would vest in increments of 45,428 shares each time Amazon has paid $ 6.9 million of revenue to us, up to a total of $ 1.0 billion, for incremental business beyond Warrant A and Warrant B. As of December 31, 2019 , no portion of Warrant C has vested. Upon vesting, Warrant C would become exercisable in accordance with its terms through March 2026 . At the time of vesting, the fair value of the vested portion of the warrants issued to Amazon is recorded as a warrant liability within Financial instruments and other liabilities (the “Amazon Warrant”). The initial fair value of the vested portion of Warrant A was recognized as a customer incentive asset within Deferred costs and other assets, net and is amortized as a reduction of Operating Revenue in proportion to the amount of revenue recognized over the terms of the Dry Leases and CMI agreements. 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. When it becomes probable that an increment of either Warrant B or C will vest and the related revenue begins to be recognized, the fair value of such portion is recorded as Additional paid-in-capital. The initial fair value of such increment is also recognized as a customer incentive asset within Deferred costs and other assets, net and is amortized as a reduction of Operating Revenue in proportion to the amount of related revenue recognized. At the time of vesting, the amount recorded in Additional paid-in-capital would be reclassified to the Amazon Warrant liability. We amortized $33.1 million and $16.2 million of the customer incentive asset for 2019 and 2018, respectively. Amortization of the customer incentive asset in 2019 included $6.4 million of accelerated amortization related to a 767-300 aircraft that is no longer in CMI service. Customer incentive asset included within Deferred costs and other assets is as follows: 2019 2018 Beginning balance $ 184,720 $ 106,538 Initial value for vested portion of warrant 949 94,359 Amortization of customer incentive asset (33,135 ) (16,177 ) Ending balance $ 152,534 $ 184,720 The Amazon Warrant liability is marked-to-market at the end of each reporting period with changes in fair value recorded in Unrealized (gain) loss on financial instruments. We utilize a Monte Carlo simulation approach to estimate the fair value of the Amazon Warrant 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. We recognized net unrealized gains of $75.1 million in 2019, and $123.1 million in 2018 and a net unrealized loss of $12.5 million in 2017 on the Amazon Warrant. The fair value of the Amazon Warrant liability was $24.3 million as of December 31, 2019 and $99.0 million as of December 31, 2018. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | 8. Debt Our debt obligations, as of December 31: 2019 2018 Range of Maturity Dates Interest Rates (1) Balance Interest Rates (1) Balance Ex-Im Guaranteed Notes 2021 to 2025 1.90% $ 396,632 1.89% $ 481,226 Term loans 2020 to 2028 4.13% 1,319,754 4.18% 1,443,947 Private Placement Facility 2025 to 2026 3.26% 113,997 3.21% 129,482 Convertible Notes 2022 to 2024 2.04% 513,500 2.04% 513,500 Revolving Credit Facility 2022 3.54% 100,000 - - EETC 2019 - - 7.52% 2,158 Total principal amount of debt 2,443,883 2,570,313 Less: unamortized debt discount and issuance costs (103,711 ) (131,475 ) Total debt 2,340,172 2,438,838 Less current portion of debt (384,895 ) (264,835 ) Long-term debt $ 1,955,277 $ 2,174,003 (1) Interest rates reflect weighted-average rates as of year-end. Many of our financing instruments have cross-default provisions and contain limitations on our ability to, among other things, consummate certain asset sales, merge or consolidate with any other person or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of our assets. Description of our Debt Obligations Ex-Im Guaranteed Notes We have issued various notes guaranteed by the Export-Import Bank of the United States (“Ex-Im Bank”), each secured by a mortgage on a 747-8F or 777-200LRF aircraft (the “Ex-Im Guaranteed Notes”). In connection with the issuance of Ex-Im Guaranteed Notes, we paid usual and customary commitment and other fees associated with this type of financing. In addition, there are customary covenants, events of default and certain operating conditions that we must meet for the Ex-Im Guaranteed Notes. These notes accrue interest at a fixed rate with principal and interest payable quarterly. Term Loans We have entered into various term loans to finance the purchase of aircraft, passenger-to-freighter conversion of aircraft, and for GEnx engine performance upgrade kits and overhauls. Each term loan requires payment of principal and interest quarterly in arrears, and certain term loans require lump-sum principal payments at maturity. Funds drawn under each term loan are subject to usual and customary fees, and funds drawn typically bear interest at a fixed rate based on LIBOR, plus a margin. Each facility is guaranteed by us and subject to customary covenants and events of default. The following table summarizes the terms for each term loan entered into during 2019 (in millions): Issue Face Collateral Original Fixed Interest Date Value Type Term Rate First 2019 Term Loan March 2019 $ 19.7 None 60 months 2.73 % Second 2019 Term Loan August 2019 74.0 Genx engines 60 months 2.98 % Third 2019 Term Loan November 2019 22.3 None 60 months 2.10 % Total $ 116.0 In March 2019, we received $41.1 million in proceeds from insurance related to the loss of a 767-300 freighter aircraft and used $20.7 million of the proceeds to repay two term loans related to the aircraft. In connection with the repayment, we recognized a $ 0.2 million loss on early of extinguishment of debt. During 2019, we also recognized a net insurance recovery of $ 3.6 million resulting from the excess of insurance proceeds over the carrying amount of the aircraft and other related costs within Other ( income ) expense , net. In August 2019, we refinanced a higher-rate term loan with the Second 2019 Term Loan and recognized a $0.6 million loss on early extinguishment of debt. Private Placement Facility In September 2017, we entered into a debt facility for a total of $145.8 million through private placement to finance the purchase and passenger-to-freighter conversion of six 767-300 freighter aircraft dry leased to a customer (the “Private Placement Facility”). The Private Placement Facility consists of six separate loans (the “Private Placement Loans”). Each Private Placement Loan is comprised of an equipment note and an equipment term loan, both secured by the cash flows from a 767-300 freighter aircraft dry lease and the underlying aircraft. The equipment notes require payment of principal and interest at a fixed interest rate. The equipment term loans accrue interest, at a fixed rate, which is added to the principal balance outstanding until each equipment note is paid in full. Subsequently, the equipment term loans require payment of principal and interest over the remaining term of the loans. The Private Placement Loans are cross-collateralized, but not cross-defaulted, with each other and, except for certain specified events, are not cross-defaulted with other debt facilities of the Company. In connection with entry into the Private Placement Facility, we have agreed to pay usual and customary commitment and other fees associated with this type of financing. The Private Placement Facility is guaranteed by us and subject to customary covenants and events of default. Convertible Notes In May 2017, we issued $289.0 million aggregate principal amount of convertible senior notes that mature on June 1, 2024 (the “2017 Convertible Notes”) in an underwritten public offering. In June 2015, we issued $224.5 million aggregate principal amount of 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 following table lists certain key terms for the Convertible Notes: 2017 Convertible Note 2015 Convertible Note Fixed interest rate 1.88 % 2.25 % Earliest conversion date September 1, 2023 September 1, 2021 Initial conversion price per share $ 61.08 $ 74.05 Conversion rate (shares for each $1,000 of principal) 16.3713 13.5036 During 2017, we used the majority of the net proceeds from the 2017 Convertible Notes to repay $150.0 million then outstanding under our revolving credit facility and to fund the cost of the convertible note hedges described below. During 2015, we used the majority of the proceeds from the 2015 Convertible Notes to refinance higher-rate equipment notes funded by EETCs related to five 747-400 freighter aircraft owned by us in the aggregate amount of $187.8 million. The EETCs had an average cash coupon of 8.1%. The Convertible Notes will initially be convertible into shares of our common stock based on the respective conversion rates, which are equal to the respective initial conversion prices per share. The conversion rates will be subject to adjustment upon the occurrence of certain specified events but will not be adjusted for accrued and unpaid interest, except in certain limited circumstances. Upon the occurrence of a “make-whole fundamental change,” we will, in certain circumstances, increase the conversion rates by a number of additional shares of our common stock for the Convertible Notes converted in connection with such “make-whole fundamental change”. Additionally, if we undergo a “fundamental change,” holders will have the option to require us to repurchase all or a portion of their Convertible Notes for cash at a price equal to 100 % of the principal amount of the Convertible Notes being repurchased plus any accrued and unpaid interest through, but excluding, the fundamental change repurchase date. In connection with the offerings of the Convertible Notes, we entered into convertible note hedge transactions whereby we have the option to purchase a certain number of shares of our common stock at a fixed price per share. In addition, we sold warrants to the option counterparties whereby the holders of the warrants have the option to purchase a certain number of shares of our common stock at a fixed price per share. The following table summarizes the convertible note hedges and related warrants: 2017 Convertible Note 2015 Convertible Note Convertible Note Hedges: Number of shares (1) 4,731,306 3,031,558 Initial price per share $ 61.08 $ 74.05 Cost of hedge $ 70,140 $ 52,903 Convertible Note Warrants: Number of shares (1) 4,731,306 3,031,558 Initial price per share $ 92.20 $ 95.01 Proceeds from sale of warrants $ 38,148 $ 36,290 (1) Taken together, the purchases of the convertible note hedges and the sales of the warrants are intended to offset any economic dilution from the conversion of each of the Convertible Notes when the stock price is below the exercise price of the respective warrants and to effectively increase the overall conversion prices from $61.08 to $92.20 per share for the 2017 Convertible Notes and from $74.05 to $95.01 per share On or after the earliest conversion date until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or a portion of its Convertible Notes. Upon conversion, each of the Convertible Notes will be settled, at our election, in cash, shares of our common stock, or a combination of cash and shares of our common stock. Our current intent and policy is to settle conversions with a combination of cash and shares of common stock with the principal amounts of the Convertible Notes paid in cash. Holders may only convert their Convertible Notes at their option at any time prior to the earliest conversion dates, under the following circumstances: • during any calendar quarter (and only during such calendar quarter) if, for each of at least 20 trading days (whether or not consecutive) during the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter, the last reported sale price of our common stock for such trading day is equal to or greater than 130% of the conversion price on such trading day • during the five consecutive business day period immediately following any five consecutive trading day period (the “measurement period”) in which, for each trading day of the measurement period, the trading price per $1,000 principal amount of the convertible notes for such trading day was less than 98% of the product of the last reported sale price of our common stock for such trading day and the conversion rate on such trading day; or • upon the occurrence of specified corporate events. We separately account for the liability and equity components of convertible notes. The carrying amount of the liability component is determined by measuring the fair value of a similar liability that does not have an associated conversion feature, assuming our nonconvertible unsecured debt borrowing rate. The carrying value of the equity component, the conversion option, which is recognized as additional paid-in-capital, net of tax, creates a debt discount on the convertible notes. The debt discount is determined by deducting the relative fair value of the liability component from the proceeds of the convertible notes and is amortized to interest expense using an effective interest rate of 6.14% and 6.44% over the term of the 2017 Convertible Notes and the 2015 Convertible Notes, respectively. The equity components will not be remeasured as long as they continue to meet the conditions for equity classification. The debt issuance costs related to the issuance of the Convertible Notes were allocated to the liability and equity components based on their relative values, as determined above. Total debt issuance costs for the 2017 Convertible Notes were $7.5 million, of which $5.7 million was allocated to the liability component and $1.8 million was allocated to the equity component. Total debt issuance costs for the 2015 Convertible Notes were $6.8 million, of which $5.2 million was allocated to the liability component and $1.6 million was allocated to the equity component. The debt issuance costs allocated to the liability components are amortized to interest expense using the effective interest method over the term of each of the Convertible Notes. The Convertible Notes consisted of the following as of December 31: 2019 2018 2017 Convertible Notes 2015 Convertible Notes 2017 Convertible Notes 2015 Convertible Notes Remaining life in months 53 29 65 41 Liability component: Gross proceeds $ 289,000 $ 224,500 $ 289,000 $ 224,500 Less: debt discount, net of amortization (47,556 ) (21,019 ) (56,652 ) (28,807 ) Less: debt issuance cost, net of amortization (3,705 ) (1,959 ) (4,457 ) (2,716 ) Net carrying amount $ 237,739 $ 201,522 $ 227,891 $ 192,977 Equity component (1) $ 70,140 $ 52,903 $ 70,140 $ 52,903 (1) Included in Additional paid-in capital on the consolidated balance sheets. The following table presents the amount of interest expense recognized related to the 2017 Convertible Notes and the 2015 Convertible Notes: 2019 2018 2017 Contractual interest coupon $ 10,470 $ 10,470 $ 8,348 Amortization of debt discount 16,880 15,855 11,801 Amortization of debt issuance costs 1,509 1,487 1,132 Total interest expense recognized $ 28,859 $ 27,812 $ 21,281 EETC In 1999, we issued an EETC secured by a 747-400F aircraft in the amount of $109.9 million which matured in February 2019. Revolving Credit Facility In December 2018, we amended and extended our previous three-year four-year $ 100.0 million . The Revolver includes a facility fee of % on the undrawn portion. In connection with entry into the Revolver, we paid usual and customary fees. As of December 31, 2019, there was $ million outstanding and we had $ 86.8 million of unused availability under the Revolver, based on the collateral borrowing base. In January 2020, our unused availability under the Revolver, based on the collateral borrowing base , increased to $ 94.8 million. Future Cash Payments for Debt The following table summarizes the cash required to be paid by year and the carrying value 2020 $ 397,043 2021 269,481 2022 592,060 2023 447,151 2024 481,920 Thereafter 256,228 Total debt cash payments 2,443,883 Less: unamortized debt discount and issuance costs (103,711 ) Debt $ 2,340,172 In February 2020, we refinanced two term loans that had payments of $126.2 million due in 2020, included in the table above. See Note 20 for a discussion of the new term loans. |
Leases and Guarantees
Leases and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases and Guarantees | 9. Leases and Guarantees Adoption We adopted the new lease accounting guidance using the modified retrospective method and applied it to all leases based on the contract terms in effect as of January 1, 2019. For existing contracts, we carried forward our historical assessments of (1) whether contracts are or contain leases, (2) lease classification and (3) initial direct costs. Although our performance obligations under ACMI contracts include the provision of aircraft to customers, we do not separate any potential aircraft lease components from the nonlease components of these contracts as the provision of the crew, maintenance and insurance components are, in the aggregate, the predominant components. Such contracts are accounted for in their entirety under the amended guidance for revenue recognition. Lessee The following table summarizes rental expenses in: 2019 2018 2017 Aircraft and engines $ 155,639 $ 162,444 $ 142,945 Purchased capacity, office, vehicles and other $ 34,572 $ 63,650 $ 46,817 As of December 31, 2019, we lease 22 March 2020 Since our leases do not typically provide a readily determinable discount rate, we use our incremental borrowing rate to discount lease payments to present value During the fourth quarter of 2019, we recorded an impairment charge of $272.5 million to write down our operating lease right-of-use assets and finance lease assets related to our 747-400 freighter fleet. See Note 5 for further discussion. The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet: Classification on the Consolidated Balance Sheets 2019 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 231,133 Finance lease assets Property and equipment, net 38,373 Less: Accumulated amortization on finance lease assets Property and equipment, net (6,038 ) Total lease assets $ 263,468 Liabilities Current Operating lease liabilities Current portion of long-term operating leases $ 141,973 Finance lease liabilities Current portion of long-term debt and finance leases 10,886 Noncurrent Operating lease liabilities Long-term operating leases 392,832 Finance lease liabilities Long-term debt and finance lease 29,625 Total lease liabilities $ 575,316 Weighted Average Remaining Lease Term in years Operating Leases 3.94 Finance Leases 9.51 Weighted Average Discount Rate Operating Leases 4.52 % Finance Leases 15.77 % The following table presents information related to lease costs for finance and operating leases: 2019 Fixed operating lease costs (1) $ 148,812 Variable operating lease costs (1) 22,089 Finance lease costs: Amortization of leased assets (2) 2,508 Interest on lease liabilities (3) 5,492 Total lease cost $ 178,901 (1) Expenses are classified within Aircraft rent and Navigation fees, landing fees and other rent on the consolidated statement of operations. Short-term lease contracts are not material. (2) Expense is classified within Depreciation and amortization on the consolidated statement of operations. (3) Expense is classified within Interest expense on the consolidated statement of operations. The table below presents supplemental cash flow information related to leases as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 168,338 Operating cash flows for finance leases 5,492 Financing cash flows for finance leases 1,184 As of December 31, 2019, maturities of lease liabilities for the periods indicated were as follows: Operating Finance Leases Lease Total 2020 $ 162,713 $ 16,386 $ 179,099 2021 167,824 6,000 173,824 2022 119,092 6,000 125,092 2023 66,509 6,000 72,509 2024 53,440 6,000 59,440 Thereafter 13,722 44,500 58,222 Total minimum rental payments 583,300 84,886 668,186 Less: imputed interest 48,495 44,375 92,870 Total lease liabilities $ 534,805 $ 40,511 $ 575,316 As of December 31, 2019, we have commitments for additional leases that have not yet commenced of $20.2 million. These leases will commence in 2020 with lease terms of 1 year to 16 years. Lessor As of December 31, 2019, our contractual amount of minimum receipts, excluding taxes, for the periods indicated under Dry Leases reflecting the terms that were in effect were as follows: 2020 $ 166,890 2021 145,288 2022 137,604 2023 104,139 2024 62,117 Thereafter 184,349 Total minimum lease receipts $ 800,387 In February 2020, we extended dry leases with a customer for two 777-200LRF aircraft, each for a period of ten years from the end of the existing lease term. Guarantees and Indemnifications In the ordinary course of business, we enter into numerous leasing and financing arrangements for real estate, equipment, aircraft and engines that have various guarantees included in the contracts. These guarantees are primarily in the form of indemnities. In both leasing and financing transactions, we typically indemnify the lessors and any financing parties against tort liabilities that arise out of the use, occupancy, manufacture, design, operation or maintenance of the leased premises or financed aircraft, regardless of whether these liabilities relate to the negligence of the indemnified parties. Currently, we believe that any future payments required under many of these guarantees or indemnities would be immaterial, as most tort liabilities and related indemnities are covered by insurance (subject to deductibles). However, payments under certain tax indemnities related to certain of our financing arrangements, if applicable, could be material, and would not be covered by insurance, although we believe that these payments are not probable. Certain leased premises, such as maintenance and storage facilities, typically include indemnities of such parties for any environmental liability that may arise out of or relate to the use of the leased premises. We also provide standard indemnification agreements to officers and directors in the ordinary course of business. Financings and Guarantees Our financing arrangements typically contain a withholding tax provision that requires us to pay additional amounts to the applicable lender or other financing party, if withholding taxes are imposed on such lender or other financing party as a result of a change in the applicable tax law. These increased costs and withholding tax provisions continue for the entire term of the applicable transaction and there is no limitation on the maximum additional amount we could be required to pay under such provisions. Any failure to pay amounts due under such provisions generally would trigger an event of default and, in a secured financing transaction, would entitle the lender to foreclose upon the collateral to realize the amount due. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The significant components of the (benefit from) provision for income taxes are as follows: 2019 2018 2017 Current: Federal $ - $ (4,518 ) $ (133 ) State and local 22 68 (99 ) Foreign 886 597 596 Total current (benefit) expense 908 (3,853 ) 364 Deferred: Federal (172,038 ) 43,167 (87,185 ) State and local (8,908 ) 1,780 1,868 Foreign 393 (2,367 ) 3,987 Total deferred expense (benefit) (180,553 ) 42,580 (81,330 ) Total income tax expense (benefit) $ (179,645 ) $ 38,727 $ (80,966 ) The domestic and foreign earnings (loss) before income taxes are as follows: 2019 2018 2017 Domestic $ (510,739 ) $ 257,726 $ 104,321 Foreign 37,981 51,648 39,051 (Loss) Income before income taxes $ (472,758 ) $ 309,374 $ 143,372 A reconciliation of the provision (benefit) for income taxes applying the statutory federal income tax rate of 21.0% for the years ended December 31, 2019 and 2018, and 35.0% for the year ended December 31, 2017, respectively, is as follows: 2019 2018 2017 U.S. federal statutory income tax rate (21.0 %) 21.0 % 35.0 % State and local taxes based on income, net of federal benefit (1.0 %) 0.8 % 0.3 % Change in deferred foreign and state tax rates (0.2 %) (3.0 %) 0.6 % Customer incentive (3.3 %) (5.1 %) 5.0 % Nondeductible compensation 1.1 % 1.0 % 1.4 % Other nondeductible expenses 0.3 % 0.2 % — Favorable resolution of income tax examinations (12.6 %) — — Tax effect of foreign operations (1.8 %) (2.2 %) (7.7 %) Impact of U.S. Tax Cuts and Jobs Act — — (90.7 %) Other 0.5 % (0.2 %) (0.4 %) Effective income tax rate (38.0 %) 12.5 % (56.5 %) The effective income tax rate for the year ended December 31, 2019 differed from the U.S. statutory rate primarily due to the tax benefit related to the favorable completion of an IRS examination of our 2015 income tax return, and to a lesser extent, nontaxable changes in the fair value of a customer warrant liability (see Note 7). In 2018, we recorded nondeductible and nontaxable changes in the fair value of a custom er warrant liability (see Note 7 ), as well as a benefit on the remeasurement of our deferred income tax liability for Singapore. The United States enacted the U.S. Tax Cuts and Jobs Act on December 22, 2017, which in part reduced the U.S. federal corporate income tax rate, repealed the corporate alternative minimum tax, provided full expensing of new and used assets, modified certain deductions and credits, and modified the use of federal net operating loss carryforwards (“NOLs”). We recorded provisional income tax benefits in connection with the remeasurement of our U.S. net deferred tax liability in 2017 as a result. We repatriated a portion of the earnings of our overseas Dry Leasing subsidiaries in 2019 and recorded an immaterial amount of state income tax expense for the year. Deferred tax assets and liabilities represent the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. The net noncurrent deferred tax asset (liability) was comprised of the following as of December 31: Assets (Liabilities) 2019 2018 Deferred tax assets: Net operating loss carryforwards and credits $ 556,051 $ 357,022 Accrued compensation 12,695 13,176 Aircraft and other leases 120,122 17,688 Goodwill and other intangibles - 2,765 Interest rate derivatives 857 1,179 Long-term debt 1,253 1,593 Obsolescence reserve 6,152 6,771 Stock-based compensation 3,123 3,203 Other 3,668 528 Total deferred tax assets 703,921 403,925 Valuation allowance (24,513 ) (29,871 ) Net deferred tax assets $ 679,408 $ 374,054 Deferred tax liabilities: Fixed assets $ (650,595 ) $ (589,649 ) Customer incentive (12,518 ) (15,894 ) Deferred maintenance (40,227 ) (22,747 ) Goodwill and other intangibles (1,714 ) - Operating lease right-of-use assets (46,929 ) - Total deferred tax liabilities $ (751,983 ) $ (628,290 ) Deferred taxes included within following balance sheet line items: Deferred taxes $ (74,040 ) $ (256,970 ) Deferred costs and other assets 1,465 2,734 Net deferred tax assets (liabilities) $ (72,575 ) $ (254,236 ) As of December 31, 2019 and 2018, we had U.S. NOLs, net of unrecognized tax benefits and valuation allowances, of approximately $2.2 billion and $1.3 billion, respectively, most of which will expire through 2037, if not utilized. We had alternative minimum tax credits of $2.3 million and $4.5 million as of December 31, 2019 and December 31, 2018, respectively, which are refundable on our income tax returns through 2022. They are reflected as current and long-term receivables in the accompanying consolidated balance sheets. We received a $2.3 million refund for alternative minimum tax credits in 2019. Additionally, we had foreign NOLs for Hong Kong and Singapore, net of unrecognized tax benefits of approximately $636.3 million and $591.9 million as of December 31, 2019 and 2018, respectively, with no expiration date. Certain of our subsidiaries participate in an aircraft leasing incentive program in Singapore, which entitles us to a reduced income tax rate on our Singapore Dry Leasing income through July 31, 2023. If any of those subsidiaries are unable to remain in the program or the concessionary rate increases in the future, we could be subject to additional income taxes in Singapore, which could have a material effect on the results of our operations. Section 382 of the Internal Revenue Code imposes an annual limitation on the amount of a corporation’s U.S. federal taxable income that can be offset by NOLs if it experiences an “ownership change”, as defined. We experienced an ownership change in the past that limits the use of prior NOLs to offset taxable income. If certain changes in our ownership occur prospectively, there could be an additional limitation on the amount of utilizable NOLs. On each reporting date, management assesses whether we are more likely than not to realize some or all of our deferred tax assets. After our assessment, we maintained a valuation allowance of $24.5 million and $29.9 million against our deferred tax assets as of December 31, 2019 and 2018, respectively. The valuation allowance decreased by $5.4 million during the year ended December 31, 2019 primarily due to the favorable completion of an IRS examination of our 2015 income tax return. The valuation allowance decreased by $1.0 million during the year ended December 31, 2018. The valuation allowance was $30.9 million at December 31, 2017 and decreased by $18.5 million during the year ended December 31, 2017, primarily due to the change in the federal income tax rate under the U.S. Tax Cuts and Jobs Act. The valuation allowance is attributable to a limitation on NOL utilization resulting from the ownership change under Section 382. Due to this limitation, we expect a portion of our NOLs generated in 2004 and prior years to eventually expire unused. A reconciliation of the beginning and ending unrecognized income tax benefits is as follows: 2019 2018 2017 Beginning balance $ 74,275 $ 71,717 $ 113,892 Additions for tax positions related to the current year 1,414 2,061 1,366 Additions for tax positions related to prior years - 657 40 Reductions for tax positions related to prior years (53,306 ) (160 ) (43,581 ) Ending balance $ 22,383 $ 74,275 $ 71,717 The decrease in unrecognized income tax benefits during 2019 for tax positions related to prior years is primarily due to the favorable completion of an IRS examination of our 2015 income tax return. If recognized, all of the unrecognized income tax benefits would favorably impact the effective income tax rate. We will maintain a liability for unrecognized income tax benefits until these uncertain positions are resolved or until the expiration of the applicable statute of limitations, if earlier. Our policy is to record tax-related interest expense and penalties, if applicable, as a component of income tax expense. We recorded no interest benefit in 2019, 2018 or 2017. The cumulative liability for tax-related interest was $0.1 and 2018 For U.S. federal income tax purposes, the 2016 through 2019 income tax years remain subject to examination. There are no U.S. federal income tax examinations in progress. The Company files income tax returns in multiple states and foreign jurisdictions, primarily in Singapore and Hong Kong. The Company is currently undergoing income tax examinations in New York and Singapore. The 2013 through 2019 Singapore and Hong Kong income tax years are subject to examination. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 11. 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 PTCs related to EETCs issued by Atlas in 1998 and 1999. Interest on debt securities and accretion of discounts using the effective interest method are included in Interest income. Term loans and notes consist of term loans, the Ex-Im Guaranteed Notes, the Private Placement Facility and EETCs. The fair values of these debt instruments and the Revolver 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 a customer warrant liability 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: December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 103,029 $ 103,029 $ 103,029 $ - $ - Short-term investments 879 879 - - 879 Restricted cash 10,401 10,401 10,401 - - $ 114,309 $ 114,309 $ 113,430 $ - $ 879 Liabilities Term loans and notes $ 1,800,911 $ 1,885,750 $ - $ - $ 1,885,750 Revolver 100,000 103,575 - - 103,575 Convertible notes (1) 439,261 450,668 450,668 - - Customer warrant 24,345 24,345 - 24,345 - $ 2,364,517 $ 2,464,338 $ 450,668 $ 24,345 $ 1,989,325 December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 221,501 $ 221,501 $ 221,501 $ - $ - Short-term investments 15,624 15,624 - - 15,624 Restricted cash 11,240 11,240 11,240 - - Long-term investments and accrued interest 635 1,138 - - 1,138 $ 249,000 $ 249,503 $ 232,741 $ - $ 16,762 Liabilities Term loans and notes $ 2,048,972 $ 1,976,373 $ - $ - $ 1,976,373 Convertible notes (1) 420,868 490,070 490,070 - - Customer warrant 99,000 99,000 - 99,000 - $ 2,568,840 $ 2,565,443 $ 490,070 $ 99,000 $ 1,976,373 (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). |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Reporting | 12. 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 called Direct Contribution, which shows the profitability of each segment after allocation of direct operating and ownership costs. Direct Contribution includes Income (loss) from continuing operations before income taxes and excludes 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. Management allocates the costs attributable to aircraft operation and ownership for our operating fleet among the various segments based on the aircraft type and activity levels in each segment. Depreciation and amortization expense, aircraft rent, maintenance expense, and other aircraft-related expenses are allocated to segments based upon aircraft utilization because certain individual aircraft are utilized across segments interchangeably. Other allocation methods are standard activity-based methods that are commonly used in the industry. The ACMI segment provides aircraft, crew, maintenance and insurance services to customers. Also included in the ACMI segment is CMI, whereby we provide crew, maintenance and insurance services but not the aircraft. Under ACMI and CMI contracts, customers generally guarantee a monthly level of operation at a predetermined rate for a defined period of time. The customer bears the commercial revenue risk and the obligation for other direct operating costs, including fuel. The Charter segment provides full-planeload air cargo and passenger aircraft charters to customers, including the AMC, brokers, freight forwarders, direct shippers, airlines, sports teams and fans, and private charter customers. Charter customers generally pay a fixed charter fee or a variable fee generally based on the weight of cargo flown and we bear the direct operating costs. The Dry Leasing segment provides for the leasing of ai rcraft and engines to customers, and aircraft- and lease-management services . Other represents revenue for services that are not allocated to any segment, including administrative and management support services and flight simulator training. The following table sets forth Operating Revenue and Direct Contribution for our reportable segments reconciled to Operating Income (loss) and Income (loss) from continuing operations before income taxes: 2019 2018 2017 Operating Revenue: ACMI $ 1,247,770 $ 1,192,704 $ 988,741 Charter 1,305,860 1,313,484 1,034,562 Dry Leasing 200,781 168,470 119,820 Customer incentive asset amortization (33,135 ) (16,176 ) (5,261 ) Other 17,913 19,242 18,598 Total Operating Revenue $ 2,739,189 $ 2,677,724 $ 2,156,460 Direct Contribution: ACMI $ 218,459 $ 235,706 $ 229,498 Charter 149,372 211,661 150,144 Dry Leasing 70,386 48,904 39,939 Total Direct Contribution for Reportable Segments 438,217 496,271 419,581 Unallocated expenses and (income), net (337,434 ) (298,526 ) (258,925 ) Loss on early extinguishment of debt (804 ) - (167 ) Unrealized gain (loss) on financial instruments 75,109 123,114 (12,533 ) Special charge (638,373 ) (9,374 ) (106 ) Transaction-related expenses (4,164 ) (2,111 ) (4,509 ) Loss (gain) on disposal of aircraft (5,309 ) - 31 Income (loss) from continuing operations before income taxes (472,758 ) 309,374 143,372 Add back (subtract): Interest income (4,296 ) (6,710 ) (6,009 ) Interest expense 120,330 119,378 99,687 Capitalized interest (2,274 ) (4,727 ) (7,389 ) Loss on early extinguishment of debt 804 - 167 Unrealized (gain) loss on financial instruments (75,109 ) (123,114 ) 12,533 Other (income) expense, net (27,668 ) (10,659 ) (387 ) Operating Income (Loss) $ (460,971 ) $ 283,542 $ 241,974 The following table disaggregates our Charter segment revenue by customer and service type: 2019 2018 2017 Cargo Passenger Total Cargo Passenger Total Cargo Passenger Total Commercial customers $ 579,001 $ 51,729 $ 630,730 $ 644,344 $ 33,785 $ 678,129 $ 519,507 $ 18,713 $ 538,220 AMC 313,236 361,894 675,130 327,751 307,604 635,355 205,776 290,566 496,342 Total Charter Revenue $ 892,237 $ 413,623 $ 1,305,860 $ 972,095 $ 341,389 $ 1,313,484 $ 725,283 $ 309,279 $ 1,034,562 Given the nature of our business and international flying, geographic information for revenue, long-lived assets and total assets is not presented because it is impracticable to do so. We are exposed to a concentration of revenue from the AMC, Polar and DHL (see Note 3 for further discussion regarding Polar). No other customer accounted for more than 10.0% of our Total Operating Revenue. Revenue from the AMC was $675.1 million for 2019, $635.4 million for 2018 and $496.3 million for 2017. Revenue from DHL was $359.5 million for 2019, $348.3 million for 2018 and $262.6 million for 2017. We have not experienced any credit issues with either of these customers. 2019 2018 2017 Depreciation and amortization expense: ACMI $ 101,756 $ 93,706 $ 71,097 Charter 50,705 38,531 36,539 Dry Leasing 81,384 73,868 47,426 Unallocated 17,252 11,235 11,651 Total Depreciation and Amortization $ 251,097 $ 217,340 $ 166,713 |
Labor and Legal Proceedings
Labor and Legal Proceedings | 12 Months Ended |
Dec. 31, 2019 | |
Labor And Legal Proceedings [Abstract] | |
Labor and Legal Proceedings | 13. 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 four-year five-year 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. The Atlas and Southern Air CBAs both have a defined and streamlined process for negotiating a joint CBA (“JCBA”) when a merger occurs, as in the case with the Atlas and Southern Air merger. Pursuant to the merger provisions in both CBAs, joint negotiations for a single CBA for Atlas and Southern Air should commence promptly. Further, once an integrated seniority list (“ISL”) of Atlas and Southern Air pilots is presented to the Company by the union, it triggers a nine month agreed-upon timeframe to negotiate a new JCBA with any unresolved issues promptly submitted to binding arbitration. 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 enhanced the wages and work rules of the Southern Air pilots and provides similar terms and conditions of employment to those provided to Atlas pilots in the Atlas CBA. The Southern Air pilot agreement became effective in September 2018. The IBT has refused to follow the merger provisions in the Atlas and Southern Air CBAs. This has resulted in significant litigation, arbitrations and delay. As more fully stated below, the Company has prevailed in all of the merger related proceedings. After the merger process began, the IBT also 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 NMB conducted a premediation investigation on the IBT’s Atlas application in June 2016, which has remained pending (along with the IBT’s Southern Air application) since 2016. Due to the IBT’s refusal to adhere to the merger provisions of the respective CBAs, in February 2017, the Company 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 District Court”) ruled in the Company’s favor and ordered arbitration of this issue. The IBT appealed the NY District Court’s decision, and on November 21, 2019, the Second Circuit Court issued its decision in the Company’s favor affirming the NY District Court’s decision. The Company and the IBT conducted the Atlas and Southern Air arbitrations for this issue in October 2018. The Company prevailed in both the Atlas and Southern Air management grievance arbitrations against the IBT, with decisions rendered on June 12, 2019 and August 26, 2019, respectively. Both arbitrators ruled that the IBT violated the CBAs by refusing to follow merger provisions in the parties’ respective CBAs, which require formulation of a JCBA covering the combined pilot group. The arbitrators each ordered the IBT to promptly comply with the CBAs by submitting an ISL to the Company within 45 days of each arbitration decision, respectively. The IBT failed to comply with both deadlines for submitting the ISL, which passed on July 27, 2019 for Southern Air, and on October 10, 2019 for Atlas. As a result, on October 25, 2019, the Company filed an action in the U.S. District Court for the District of Columbia (“DC District Court”) to enforce the Atlas and Southern Air arbitration decisions , which is currently pending . In connection with its opposition to the merger provisions, the IBT commenced lawsuits in the DC District Court seeking to vacate both arbitration awards. On January 28, 2020, the DC District Court ruled in the Company’s favor, granting its motions to dismiss both of the IBT’s lawsuits. Notwithstanding these pending proceedings, the Company and the IBT continue to meet to move the process forward and bargain in good faith for a new JCBA. Substantive progress has been made with tentative agreements for more than half of the articles in a new JCBA. Despite repeated requests from the Company, the IBT has yet to provide the Company with a comprehensive economic proposal. In late September 2019, the IBT notified the Company that Atlas pilots represented by the IBT were departing from IBT Local 1224 and forming a new local union, IBT Local 2750 to represent them. The Company has been informed the Southern Air pilots will continue to be represented by IBT Local 1224. The Company continues to work with both Local 2750 and Local 1224 leadership groups. In November 2017, the DC District Court granted the Company’s request to issue a preliminary injunction to stop an illegal work slowdown and require the IBT to meet its obligations under the Railway Labor Act. Specifically, the DC District Court ordered the IBT to 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 District Court’s decision to the U.S. Court of Appeals for the District of Columbia Circuit (“Court of Appeals”). On July 5, 2019, the Court of Appeals, in a unanimous three judge panel, affirmed the DC District Court’s ruling and denied the IBT’s appeal. Therefore, the preliminary injunction remains in full force and 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 such defendants. In response, British Airways, KLM, Martinair, Air France and Lufthansa filed third-party indemnification lawsuits against Polar Air Cargo, LLC (“Old Polar”), a consolidated subsidiary of the Company, and Polar, seeking indemnification in the event the defendants are found to be liable in the main proceedings. Another defendant, Thai Airways, filed a similar indemnification claim. Activities in the case have focused on various procedural issues, some of which 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 properly presented to customs upon arrival and therefore were improperly brought into Brazil. The two claims, which also seek unpaid customs duties, taxes and penalties from the date of the alleged infraction, are approximately $5.1 million in aggregate based on December 31, 2019 exchange rates. Old Polar has presented evidence that certain of the alleged missing goods were in fact never onboard the aircraft (due to a change in plans by the relevant shipper) and thus no customs duties should be due. Further, in both cases, we believe that the amounts claimed are substantially overstated due to a calculation error when considering the type and amount of goods allegedly missing, among other things. In the pending claim for one of the cases, we have received an administrative decision dismissing the claim in its entirety, which remains subject to a mandatory appeal by the Brazil customs authorities. In the other case, there was an administrative decision in favor of the Brazil customs authorities and we are in the process of appealing this decision to the Brazil courts. As required to defend such claims, we have made deposits pending resolution of these matters. The balance was $4.1 million as of December 31, 2019 and 2018, 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. |
Stock-Based and Long-term Incen
Stock-Based and Long-term Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-Based and Long-term Incentive Compensation Plans | 14. Stock-Based and Long-term Incentive Compensation Plans In 2007, our stockholders approved a Long-Term Incentive Plan (the “2007 Plan”). An aggregate of 0.6 million shares of common stock were reserved for issuance to participants under the 2007 Plan. The 2007 Plan provided for stock awards of up to approximately 2.8 million shares of AAWW’s common stock to employees in various forms, including cash awards and performance cash awards. Stock awards included nonqualified options, incentive stock options, share appreciation rights, restricted shares, restricted share units, performance shares and performance units, dividend equivalents and other share-based awards. In 2018, the stockholders approved a revised Long-Term Incentive Plan (the “2018 Plan”), which replaced previous plans. An aggregate of 0.5 million shares of common stock were reserved for issuance to participants under the 2018 Plan. No new awards have been made under previous plans since the adoption of the 2018 Plan in May 2018. In 2019, the stockholders approved a revised Long-Term Incentive Plan (the “2019 Plan”), which replaced the 2018 Plan. An aggregate of 1.4 million shares of common stock were reserved for issuance to participants under the 2019 Plan. No new awards have been made under the 2018 Plan since the adoption of the 2019 Plan in May 2019. The portion of the 2019 Plan and previous plans applicable to employees is administered by the compensation committee of the board of directors, which also establishes the terms of the awards. Awards outstanding under the previous plans will continue to be governed by the terms of those plans and agreements under which they were granted. The 2019 Plan limits the terms of awards to ten years and prohibits the granting of awards more than ten years after the effective date of the 2019 Plan. As of December 31, 2019, the 2019 Plan had a total of 0.9 million shares of common stock available for future award grants to management and members of the board of directors. Our compensation expense for all plans was $24.1 million in 2019, $19.1 million in 2018 and $20.9 million in 2017 $ million in 2019, $4.8 million in 2018 and $5.3 million in 2017 Restricted Share and Time-based Cash Awards Restricted share awards, which have been granted in units, and time-based cash awards generally vest and are expensed over one-, three- or four- year periods. As of December 31, 2019 Unrecognized December 31, 2019 In 2019 and 2018, we granted time-based cash awards to employees and recognized compensation expense totaling $6.2 million in 2019 and $2.1 million in 2018. A summary of our restricted shares as of December 31, 2019 and changes during the year then ended are presented below: Weighted-Average Restricted Share Awards Number of Shares Grant-Date Fair Value Unvested as of December 31, 2018 604,795 $ 50.34 Granted 207,180 52.61 Vested (271,605 ) 48.30 Forfeited (9,874 ) 47.90 Unvested as of December 31, 2019 530,496 $ 52.31 The total fair value of shares vested on various vesting dates was $13.1 million in 2019 in 2018 in 2017 Performance Share and Performance Cash Awards Performance share awards, which have been granted in units, and performance cash awards granted are expensed over three years, which generally is the requisite service period. Awards generally become vested if (1) we achieve certain specified performance levels compared with predetermined performance thresholds during a three-year period starting in the grant year and ending on December 31 three years later, and (2) the employee remains employed by us through the determination date which can be no later than four months following the end of the Performance Period. Full or partial vesting may occur for certain employee terminations. For performance share and performance cash awards granted in 2019 and 2018, the Company included a relative total shareholder return (“TSR”) modifier which may impact the number of shares or cash earned at the end of the performance period. For these awards, the number of shares or cash earned based on the achievement of the predefined performance criteria will be reduced or increased if the Company's TSR over the performance period relative to a predefined comparator group of companies falls within defined ranges. The fair value of performance share units that include the TSR modifier is determined using a Monte Carlo valuation model on the date of grant. For the remaining awards that do not include a TSR modifier, the fair value of the performance share units is the quoted market value of the Company's stock on the date of grant and the fair value of performance cash awards is the value of the cash award on the date of grant. The estimated compensation expense recognized for performance share and performance cash awards is net of estimated forfeitures. We assess the performance levels quarterly and record any change to compensation cost. For performance cash awards that include a TSR modifier, we assess the TSR component each quarter and record any change to compensation cost. As of December 31, 2019, a total of 2.0 million performance shares have been granted. Unrecognized compensation cost as of is $5.5 million and will be recognized over the remaining weighted average life of 1.5 years. For the performance cash awards, we had accruals of $15.2 million as of December 31, 2019 and $13.4 million as of December 31, 2018 in Other liabilities. A summary of our performance shares as of December 31, 2019 and changes during the year then ended are presented below: Weighted-Average Performance Share Awards Number of Shares Grant-Date Fair Value Unvested as of December 31, 2018 358,386 $ 45.37 Granted 97,072 54.54 Vested (194,666 ) 35.47 Forfeited (3,633 ) 56.98 Unvested as of December 31, 2019 257,159 $ 56.17 The total fair value of shares vested on various vesting dates in 2019 was $6.9 million, $7.7 million in 2018 and $10.6 million in 2017. Weighted average grant date fair value was $45.37 in 2018 and $54.20 in 2017. |
Profit Sharing, Incentive and R
Profit Sharing, Incentive and Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Profit Sharing, Incentive and Retirement Plans | 15. Profit Sharing, Incentive and Retirement Plans Profit Sharing and Incentive Plans We have an annual incentive compensation program for management employees. The program provides for payments to eligible employees based upon our financial performance, service performance and attainment of individual performance goals, among other things. In addition, our profit sharing plan allows IBT-represented Atlas crewmembers to receive payments from the plan based upon Atlas’ financial performance. The profit sharing plan is subject to a minimum financial performance threshold. For both plans, we had accruals of $28.6 million as of December 31, 2019 and $36.0 million as of December 31, 2018 in Accrued liabilities. We recognized compensation expense associated with both plans totaling $28.5 million in 2019, $35.8 million in 2018 and $26.9 million in 2017. 401(k) and 401(m) Plans Participants in our retirement plan may contribute a portion of their annual compensation to a 401(k) plan on a pretax basis, subject to aggregate limits under the Code. In addition to 401(k) contributions, participants may contribute a portion of their eligible compensation to a 401(m) plan on an after-tax basis. On behalf of participants in the plan who make elective compensation deferrals, we provide a matching contribution subject to certain limitations. Employee contributions in the plan are vested at all times and our matching contributions are subject to a three-year cliff vesting provision, except for employees who are represented by a collective bargaining agreement and are subject to a three-year graded vesting provision. We recognized compensation expense associated with the plan matching contributions totaling $15.9 million in 2019, $13.9 million in 2018 and $10.9 |
Stock Repurchases
Stock Repurchases | 12 Months Ended |
Dec. 31, 2019 | |
Treasury Stock [Abstract] | |
Stock Repurchases | 16. Stock Repurchases We record the repurchase of our shares of common stock at cost based on the settlement date of the transaction. These shares are classified as treasury stock, which is a reduction to stockholders’ equity. Treasury shares are included in authorized and issued shares but excluded from outstanding shares. In 2008, we established a stock repurchase program authorizing the repurchase of up to $100.0 million of our common stock. In November 2013, we announced an increase of $51.0 million to our stock repurchase program. As of December 31, 2019, we had repurchased a total of 3,307,911 shares of our common stock for approximately $126.0 million under this program, resulting in $25.0 million of available authorization remaining. Purchases may be made at our discretion in the form of open market repurchase programs, privately negotiated transactions, accelerated share repurchase programs or a combination of these methods. The actual timing and amount of our repurchases will depend on Company and market conditions. In addition, we repurchased 185,688 and 180,084 shares of common stock from management in 2019 and 2018, respectively, in connection with the vesting of equity awards to pay the statutory tax withholdings of employees, at an average price of $50.47 per share in 2019 in 2018, |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 17. Earnings Per Share Basic earnings per share (“EPS”) represents income (loss) divided by the weighted average number of common shares outstanding during the measurement period. Diluted EPS represents income (loss) divided by the weighted average number of common shares outstanding during the measurement period while also giving effect to all potentially dilutive common shares that were outstanding during the period using the treasury stock method. The calculations of basic and diluted EPS were as follows: For the Years Ended December 31, Numerator: 2019 2018 2017 Income (loss) from continuing operations, net of taxes $ (293,113 ) $ 270,647 $ 224,338 Less: Unrealized gain on financial instruments, net of tax - (123,114 ) - Diluted income (loss) from continuing operations, net of tax $ (293,113 ) $ 147,533 $ 224,338 Denominator: Basic EPS weighted average shares outstanding 25,828 25,542 25,241 Effect of dilutive warrant - 2,078 - Effect of dilutive convertible notes - 180 27 Effect of dilutive restricted stock - 481 586 Diluted EPS weighted average shares outstanding 25,828 28,281 25,854 Earnings (loss) per share from continuing operations: Basic $ (11.35 ) $ 10.60 $ 8.89 Diluted $ (11.35 ) $ 5.22 $ 8.68 Loss per share from discontinued operations: Basic $ - $ (0.00 ) $ (0.03 ) Diluted $ - $ (0.00 ) $ (0.03 ) Earnings (loss) per share: Basic $ (11.35 ) $ 10.60 $ 8.85 Diluted $ (11.35 ) $ 5.22 $ 8.64 Anti-dilutive shares related to warrants issued in connection with our Convertible Notes that were out of the money and excluded were 15.3 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 18. Accumulated Other Comprehensive Income (Loss) The following table summarizes t he components of Accumulated other comprehensive income (loss): Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2017 $ (4,002 ) $ 9 $ (3,993 ) Reclassification to interest expense 1,485 - 1,485 Tax effect (354 ) - (354 ) Reclassification of taxes (970 ) - (970 ) Balance as of December 31, 2018 $ (3,841 ) $ 9 $ (3,832 ) Reclassification to interest expense 1,336 - 1,336 Tax effect (322 ) - (322 ) Balance as of December 31, 2019 $ (2,827 ) $ 9 $ (2,818 ) Interest Rate Derivatives As of December 31, 2019, there was $3.7 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 were $1.3 million and $1.5 million for 2019 and 2018, respectively. Net realized losses expected to be reclassified into earnings within the next 12 months are $1.2 million as of December 31, 2019. |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (unaudited) | 19. Selected Quarterly Financial Information (unaudited) The following table summarizes the 2019 and 2018 quarterly results: First Second Third Fourth 2019* Quarter Quarter Quarter Quarter Total Operating Revenue $ 679,683 $ 663,918 $ 648,539 $ 747,049 Operating Income (loss) 46,874 8,970 (879 ) (515,936 ) Income (Loss) from continuing operations, net of taxes (29,710 ) 86,868 59,974 (410,245 ) Net Income (Loss) $ (29,710 ) $ 86,868 $ 59,974 $ (410,245 ) Earnings (Loss) per share from continuing operations: Basic $ (1.15 ) $ 3.36 $ 2.32 $ (15.86 ) Diluted** $ (1.15 ) $ 1.61 $ 2.32 $ (15.86 ) Earnings (Loss) per share: Basic $ (1.15 ) $ 3.36 $ 2.32 $ (15.86 ) Diluted** $ (1.15 ) $ 1.61 $ 2.32 $ (15.86 ) First Second Third Fourth 2018*** Quarter Quarter Quarter Quarter Total Operating Revenue $ 590,014 $ 666,145 $ 656,607 $ 764,958 Operating Income 40,569 60,946 54,470 127,557 Income (Loss) from continuing operations, net of taxes 9,628 (21,123 ) 71,138 211,004 Loss from discontinued operations, net of taxes (16 ) (27 ) (7 ) (30 ) Net Income (Loss) $ 9,612 $ (21,150 ) $ 71,131 $ 210,974 Earnings (Loss) per share from continuing operations: Basic $ 0.38 $ (0.83 ) $ 2.78 $ 8.25 Diluted**** $ 0.37 $ (0.83 ) $ 0.84 $ 2.73 Loss per share from discontinued operations: Basic $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Earnings (Loss) per share: Basic $ 0.38 $ (0.83 ) $ 2.78 $ 8.25 Diluted**** $ 0.37 $ (0.83 ) $ 0.84 $ 2.73 * ** In 2019, the sum of quarterly diluted EPS amounts differs from the full year diluted EPS. The difference primarily relates to the exclusion from the calculation of diluted EPS of unrealized gains on financial instruments in the third and fourth quarters, and anti-dilutive shares in the second quarter, both related to a warrant issued to a customer. *** Included in the first and second quarters were unrealized losses on financial instruments of $ 7.7 million and $ 50.0 million, respectively. Included in the third and fourth quarters were unrealized gains on financial instruments of $ 46.1 million and $ 134.8 million, respectively. **** In 2018, the sum of quarterly diluted EPS amounts differs from the full year diluted EPS. The difference primarily relates to the exclusion from the calculation of diluted EPS of unrealized gains on financial instruments in the third and fourth quarters, and anti-dilutive shares in the third quarter, both related to a warrant issued to a customer. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 20. Subsequent Events In February 2020, we extended dry leases with a customer for two 777-200LRF aircraft, each for a period of ten years from the end of the existing lease term. In connection with the lease extensions, we refinanced two secured term loans that were due in 2020 with two new term loans. One term loan is for 126 months in the amount of $82.0 million at a fixed interest rate of 3.27% with a final payment of $12.5 million due in July 2030. The other term loan is for 130 months in the amount of $82.0 million at a fixed interest rate of 3.28% with a final payment of $12.5 million due in November 2030. The new term loans are each secured by a mortgage against a 777-200LRF aircraft and contain customary covenants and events of default with principal and interest payable quarterly. In connection with entry into these term loans, we paid usual and customary fees. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts (in thousands) Additions Description Balance at Beginning of Period Charged to Costs and Expenses Deductions, net of recoveries Balance at End of Period For the Year ended December 31, 2019 Allowances deducted in the balance sheet from the assets to which they apply: Allowance for doubtful accounts $ 1,563 $ 41 $ 218 $ 1,822 For the Year ended December 31, 2018 Allowances deducted in the balance sheet from the assets to which they apply: Allowance for doubtful accounts $ 1,494 $ 12 $ 57 $ 1,563 For the Year ended December 31, 2017 Allowances deducted in the balance sheet from the assets to which they apply: Allowance for doubtful accounts $ 997 $ 198 $ 299 $ 1,494 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and judgments that affect the amounts reported in these financial statements and the related disclosures. Actual results may differ from those estimates. Estimates are used in determining, among other items, asset lives and residual values, cash flows and fair values for impairments, operating lease right-of-use assets, heavy maintenance costs, income tax accounting, business combinations, intangible assets, warrants, contingent liabilities (including, but not limited to litigation accruals), valuation allowances (including, but not limited to, those related to receivables, expendable parts inventory and deferred taxes), revenue, stock-based compensation and self-insurance employee benefit accruals. |
Revenue Recognition | Revenue Recognition 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 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. 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 generally 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 adjustment. 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 all are accounted for as operating leases. We record Dry Lease rental income from fixed payments on a straight-line basis over the term of the operating lease. To manage our residual value risk, we require lessees to perform maintenance on the Dry Leased assets and they may also be required to make maintenance payments to us during or at the end of the lease term. When an aircraft is returned at the end of lease, if we choose not to re-lease or sell the returned aircraft, we typically have the ability to operate the aircraft in our ACMI and Charter segments. Customer maintenance reserves are amounts received during the lease term that are subject to reimbursement to the lessee upon the completion of qualifying maintenance work on the specific Dry Leased asset and are included in Accrued liabilities. We defer revenue recognition for customer maintenance reserves until we are able to finalize the amount, if any, to be reimbursed to the lessee, which is typically at the end of the lease. End of lease maintenance payments are amounts received upon return of the Dry Leased asset based on the utilization of the asset during the lease term. Such payments made to us are recognized as revenue at the end of the lease. Other Services Other services primarily include administrative and management support services and flight simulator training. Revenue for these services is recognized when the services are provided. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, demand deposits and other cash investments that are highly liquid in nature and have original maturities of three months or less at acquisition. |
Short-Term Investments | Short-term Investments Short-term investments are primarily comprised of certificates of deposit, current portions of debt securities and money market funds. |
Restricted Cash | Restricted Cash Cash that is restricted under secured aircraft debt agreements, whereby it can only be used to make principal and interest payments on the related debt secured by those aircraft, is classified as Restricted cash. |
Accounts Receivable | Accounts Receivable We perform a monthly evaluation of our accounts receivable and establish an allowance for doubtful accounts based on our best estimate of probable credit losses resulting from the inability or unwillingness of our customers to make required payments. Account balances are charged off against the allowance when we determine that the receivable will not be recovered. |
Expendable Parts | Expendable Parts Expendable parts, materials and supplies for flight equipment are carried at average acquisition costs and are included in Prepaid expenses, held for sale and other current assets. When used in operations, they are charged to maintenance expense. Allowances for excess and obsolescence for expendable parts expected to be on hand at the date aircraft are retired from service are provided over the estimated useful lives of the related airframes and engines. These allowances are based on management estimates, which are subject to change as conditions in the business evolve. The net book value of expendable parts inventory was $48.3 million as of December 31, 2019 and $49.4 million at December 31, 2018, net of allowances for obsolescence of $30.4 million at December 31, 2019 and $33.0 million at December 31, 2018. |
Property and Equipment | Property and Equipment We record property and equipment at cost and depreciate these assets to their estimated residual values on a straight-line basis over their estimated useful lives or average remaining fleet lives. We review these assumptions at least annually and adjust depreciation on a prospective basis. Expenditures for major additions, improvements and flight equipment modifications are generally capitalized and depreciated over the shorter of the estimated life of the improvement, the modified assets’ remaining life or remaining lease term. Most of our flight equipment is specifically pledged as collateral for our indebtedness. The estimated useful lives of our property and equipment are as follows: Range Flight equipment 30 to 40 years Computer software and equipment 3 to 5 years Ground handling equipment and other 3 to 10 years Depreciation expense related to property and equipment was $220.2 million in 2019, $196.6 million in 2018 and $153.1 million in 2017. The net book value of flight equipment on dry lease to customers was $1,465.1 million as of December 31, 2019 and $1,717.5 million as of December 31, 2018. The accumulated depreciation for flight equipment on dry lease to customers was $260.4 million as of December 31, 2019 and $232.4 million as of December 31, 2018. Rotable parts are recorded in Property and equipment, net, and are depreciated over their average remaining fleet lives and written off when they are determined to be beyond economic repair. The net book value of rotable parts inventory was $244.8 million as of December 31, 2019 and $240.7 million as of December 31, 2018. During the fourth quarter of 2019, we recorded an impairment charge of $33.6 million to write down certain rotable parts related to our 747-400 freighter fleet. See Note 5 for further discussion. |
Capitalized Interest | Capitalized Interest Interest on funds used to finance the acquisition of flight equipment up to the date the asset is ready for its intended use is capitalized and included in the cost of the asset. Included in capitalized interest is the interest paid on the purchase deposit borrowings directly associated with the acquisition of flight equipment. The remainder of capitalized interest recorded on the acquisition of flight equipment is determined by taking the weighted average cost of funds associated with our other debt and applying it against the amounts paid for flight equipment modifications and purchase deposits. |
Goodwill | Goodwill Goodwill represents the excess of an acquisition’s purchase price over the fair value of the identifiable net assets acquired and liabilities assumed. Goodwill is not amortized, but tested for impairment annually during the fourth quarter of each year, or more frequently if certain events or circumstances indicate that an impairment loss may have been incurred. Our goodwill is not deductible for tax purposes. We may elect to perform a qualitative analysis on the reporting unit that has goodwill to determine whether it is more likely than not that fair value of the reporting unit is less than its carrying value. If the qualitative analysis indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if we elect not to perform a qualitative analysis, we perform a quantitative analysis to determine whether a goodwill impairment exists. If the fair value of the reporting unit is less than the carrying amount, the difference is written off as an impairment up to the carrying amount of goodwill. Fair value is determined using a discounted cash flow analysis based on key assumptions including, but not limited to, (i) a projection of revenues, expenses and other cash flows; (ii) terminal period earnings; and (iii) an assumed discount rate. The total amount of goodwill was $40.4 million, which is included in Intangible assets, net and goodwill in the consolidated balance sheets as of December 31, 2019 and 2018 (see Note 6). During the fourth quarter of 2019, we performed a quantitative analysis and determined that goodwill was not impaired. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We record impairment charges for long-lived assets when events and circumstances indicate that the assets may be impaired, the undiscounted cash flows estimated to be generated by those assets are less than the associated carrying amount and the net book value of the assets exceeds the associated estimated fair value. For flight equipment, operating lease right-of-use assets and finite-lived intangibles used in our ACMI and Charter segments, assets are grouped at the operating fleet level for impairment testing. For flight equipment and finite-lived intangibles used in our Dry Leasing segment, assets are assessed at the individual aircraft or engine level for impairment testing. For assets classified as held for sale, an impairment charge is recognized when the estimated fair value less the cost to sell the asset is less than its carrying amount. In developing estimates for flight equipment, operating lease right-of-use assets, and cash flows and our incremental borrowing rate, we use external appraisals, |
Variable Interest Entities and Off-Balance-Sheet Arrangements | Variable Interest Entities and Off-Balance Sheet Arrangements Dry Leasing Joint Venture We hold a 10% interest in a joint venture with an unrelated third party, which we entered into in December 2019, to develop a diversified freighter aircraft dry leasing portfolio. Through Titan, we provide aircraft- and lease-management services to the joint venture for fees based upon aircraft assets under management, among other things. Our investment in the joint venture is accounted for under the equity method of accounting. Under the joint venture, we have a commitment to provide of up to $40.0 million of capital contributions before December 2022. Our investment in the joint venture was $1.5 million as of December 31, 2019 and our maximum exposure to losses from the entity is limited to our investment. The joint venture does not currently have any third-party debt obligations and no capital contributions have been made as of December 31, 2019. Parts Joint Venture We hold a 50% interest in a joint venture with an unrelated third party to purchase rotable parts and provide repair services for those parts, primarily for 747-8F aircraft. The joint venture is a . Our investment was $20.0 million as of December 31, 2019 and $22.3 million as of December 31, 2018 and our maximum exposure to losses from the entity is limited to our investment, which is composed primarily of rotable inventory parts. The joint venture does not have any third-party debt obligations. We had Accounts payable to the joint venture of $ million as of December 31, 2019 and 2018. EETCs A portion of our operating aircraft are owned or effectively owned and leased through trusts established specifically to purchase, finance and lease aircraft to us. In three separate transactions, we issued enhanced equipment trust certificates (“EETCs”) to finance the acquisition of five 747-400F aircraft as leveraged leases. In a leveraged lease, the owner trustee is the owner of record for the aircraft. Wells Fargo Bank Northwest, National Association (“Wells Fargo”) serves as the owner trustee with respect to the leveraged leases in each of our EETC transactions. As the owner trustee of the aircraft, Wells Fargo serves as the lessor of the aircraft under the EETC lease between us and the owner trustee. Wells Fargo also serves as trustee for the beneficial owner of the aircraft, the owner participant. The original owner participant for each aircraft invested (on an equity basis) approximately 20% of the original cost of the aircraft. The remaining approximately 80% of the aircraft cost was financed with debt issued by the owner trustee on a nonrecourse basis in the form of equipment notes. The equipment notes were generally issued in three series, for each aircraft, designated as Series A, B and C equipment notes. The loans evidenced by the equipment notes were funded by the public offering of EETCs. Like the equipment notes, the EETCs were issued in three series, with each EETC transaction designated as Series A, B and C EETCs. Each series of EETCs was issued by the trustee for separate Atlas pass-through trusts with the same designation as the series of EETCs issued (“PTCs”). Each of these pass-through trustees is also the holder and beneficial owner of the equipment notes bearing the same series designation. These leasing entities meet the criteria for variable interest entities. We have not consolidated any of the aircraft-leasing trusts because we are not the primary beneficiary. We account for these leases as operating leases, see Note 9 for further discussion. |
Discontinued Operations | Discontinued Operations On April 7, 2016, we completed the acquisition of Southern Air and its subsidiaries, including Southern Air Inc. and Florida West International Airways, Inc. (“Florida West”). As part of integrating Southern Air, management decided and committed to pursue a plan to sell Florida West. As a result, the financial results for Florida West are presented as a discontinued operation. In February 2017, management determined that a sale of Florida West was no longer likely to occur and committed to a plan to wind down its operations. The wind-down of operations was completed in March 2017. |
Income Taxes | Income Taxes Deferred income taxes are recognized for the tax consequences of reporting items in our income tax returns at different times than the items are reflected in our financial statements. These temporary differences result in deferred tax assets and liabilities that are calculated by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. If necessary, deferred income tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount, if any, of the valuation allowance. We have recorded reserves for income taxes that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, we have nevertheless established tax reserves in recognition that various taxing authorities may challenge certain of the positions taken by us, potentially resulting in additional liabilities for taxes. |
Heavy Maintenance | Heavy Maintenance Except 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 after considering multiple factors, including historical costs, experience and information provided by third-party maintenance providers. These estimates may be subsequently adjusted for changes and the final determination of actual costs incurred. 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 is included in Depreciation and amortization. The following table provides a summary of Deferred maintenance included within Deferred costs and other assets as of December 31: 2019 2018 Beginning balance, net $ 103,647 $ 63,868 Deferred maintenance costs 113,076 53,343 Disposals (10,450 ) - Amortization of deferred maintenance (21,994 ) (13,564 ) Ending balance, net $ 184,279 $ 103,647 |
Prepaid Maintenance Deposits | Prepaid Maintenance Deposits Certain of our aircraft financing agreements require security deposits to our finance providers to ensure that we perform major maintenance as required. These are substantially refundable to us and are accounted for as deposits and included in Prepaid maintenance and in Deferred costs and other assets. Such amounts were $2.2 million as of December 31, 2019 and $3.2 million at December 31, 2018. |
Foreign Currency | Foreign Currency While most of our revenues are denominated in U.S. dollars, our results of operations may be exposed to the effect of fluctuations in the U.S. dollar value of foreign currency-denominated operating revenues and expenses. Gains or losses resulting from foreign currency transactions are included within Non-operating Expense (Income). |
Stock-Based Compensation | Stock-Based Compensation We have various stock-based compensation plans for certain employees and outside directors, which are described more fully in Note 14. We recognize based on the fair value on grant date We estimate restricted stock unit forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual forfeitures differ from those estimates. As a result, we record stock-based compensation expense only for those awards that are expected to vest. |
Liquidity | Liquidity During the year ended December 31, 2019, our earnings and cash flows were impacted by macroeconomic conditions affecting the global airfreight market, including tariffs and global trade tensions and geopolitical unrest in certain countries in South America, as well as labor-related service disruptions. Our ability to continue to service our debt and meet our lease and other obligations as they come due is dependent on our continued ability to generate earnings and cash flows. We have implemented certain initiatives, including cost savings and the sale of certain nonessential assets, to mitigate the impact of any continuation or worsening of the aforementioned factors, including the potential impact of the recent coronavirus disruptions. If we are unable to implement these or additional initiatives, it could have a material adverse effect on our financial position, results of operations, and cash flows. As discussed in Note 8, in February 2020, we refinanced two term loans that had payments of $126.2 million due in 2020, included in Current portion of long-term debt and finance leases as of December 31, 2019. We believe the Company will generate sufficient liquidity to satisfy its obligations over the next twelve months. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2019 In January 2017, the Financial Accounting Standards Board (“FASB”) amended its accounting guidance for goodwill impairment. The guidance eliminates the requirement to calculate the implied fair value of goodwill to measure an impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The amended guidance is effective for fiscal years beginning after December 15, 2019, with early adoption permitted. We early adopted the new guidance effective as of January 1, 2019. The adoption of this guidance did not have any impact on our consolidated financial statements. 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 continues 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. We adopted the new guidance on January 1, 2019 using the modified retrospective approach, which was applied beginning on the adoption date. Comparative information has not been restated and continues to be reported under the accounting guidance in effect for those periods. The adoption did not have a material effect on our consolidated statements of operations or cash flows. We recognized operating lease right-of-use assets, net of pre-existing deferred rent and operating lease intangibles, and operating lease liabilities on our consolidated balance sheets of approximately $596.9 million and $650.0 million, respectively, on the adoption date (see Note 9). Recent Accounting Pronouncements Not Yet Adopted In November 2019, the FASB amended its accounting guidance for share-based payment awards issued to a customer. The guidance requires share-based payment awards issued to a customer to be recorded as a reduction of the transaction price in revenue based on the fair value at grant date and to be classified on the balance sheet using accounting guidance for stock-based compensation. The amended guidance is effective for fiscal years beginning after December 15, 2019. Effective January 1, 2020, we are adopting the amended guidance and applying the modified retrospective approach to the most current period presented. While we are still assessing the impact the amended guidance will have on our financial statements, we expect approximately $14 million or 60% of our customer warrant liability of $24 million related to revenue contracts, which is included in Financial instruments and other liabilities as of December 31, 2019, will be reclassified as Additional paid-in-capital within Total stockholders’ equity on January 1, 2020. As a result, these customer warrants will no longer be marked-to-market at the end of each reporting period with changes in fair value recorded as an unrealized (gain) loss on financial instruments. The amended guidance will not impact the accounting for the remaining portion of our customer warrant liability related to Dry Lease contracts, which was approximately $10 million or 40% of the total customer warrant liability as of December 31, 2019. The new guidance will not impact how we account for the amortization of the customer incentive asset. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of our property and equipment are as follows: Range Flight equipment 30 to 40 years Computer software and equipment 3 to 5 years Ground handling equipment and other 3 to 10 years |
Schedule of Deferred Maintenance | The following table provides a summary of Deferred maintenance included within Deferred costs and other assets as of December 31: 2019 2018 Beginning balance, net $ 103,647 $ 63,868 Deferred maintenance costs 113,076 53,343 Disposals (10,450 ) - Amortization of deferred maintenance (21,994 ) (13,564 ) Ending balance, net $ 184,279 $ 103,647 |
DHL Investment and Polar (Table
DHL Investment and Polar (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Aircraft Types, Services and Number of Aircraft Provided to Polar and DHL | The following table summarizes the aircraft types, services and number of aircraft provided to Polar and DHL as of December 31, 2019: Aircraft Service Total 747-8F ACMI 6 747-400F ACMI 5 777-200LRF CMI 6 777-200LRF CMI and Dry Leasing 2 767-300 CMI and Dry Leasing 2 767-300 CMI 2 767-200 CMI 9 737-400F CMI 5 757-200F Dry Leasing 1 Total 38 |
Summary of Transactions with Polar | The following table summarizes our transactions with Polar: For the Years Ended December 31, Revenue and Expenses: 2019 2018 2017 Revenue from Polar $ 374,236 $ 412,793 $ 420,564 Ground handling and airport fees to Polar 2,202 2,301 2,746 Accounts receivable/payable as of: December 31, 2019 December 31, 2018 Receivables from Polar 10,855 16,349 Payables to Polar 2,161 2,527 Aggregate Carrying Value of Polar Investment as of: December 31, 2019 December 31, 2018 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 |
Supplemental Balance Sheet an_2
Supplemental Balance Sheet and Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of December 31: 2019 2018 Maintenance $ 136,315 $ 133,337 Customer maintenance reserves 110,355 104,454 Salaries, wages and benefits 75,719 82,809 Aircraft fuel 28,821 32,641 Deferred revenue 26,357 26,584 Other 104,158 85,844 Accrued liabilities $ 481,725 $ 465,669 |
Summary of Significant Changes in Deferred Revenue Liability Balances | Significant changes in our Deferred Revenue liability balances during the year ended December 31, 2019 were as follows: Deferred Revenue Balance as of December 31, 2018 $ 13,007 Revenue recognized (172,119 ) Amounts collected or invoiced 178,346 Balance as of December 31, 2019 $ 19,234 |
Summary of Interest and Income Taxes Paid | The following table summarizes interest and income taxes paid: 2019 2018 2017 Interest paid $ 88,788 $ 86,168 $ 73,872 Income taxes paid, net of refunds $ (1,715 ) $ 695 $ 563 |
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: 2019 2018 Cash and cash equivalents $ 103,029 $ 221,501 Restricted cash 10,401 11,240 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 113,430 $ 232,741 |
Special Charge and Other Inco_2
Special Charge and Other Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Aircraft And Aircraft Engines Held For Sale [Abstract] | |
Summary of Special Charge Included in Total Operating Expenses | The following table summarizes the Special charge included in Total operating expenses in the consolidated statements of operations for the year ended December 31, 2019: Impairment of 747-400 freighter aircraft and related assets $ 580,279 Impairment of assets sold, held for sale and other 58,094 Special charge $ 638,373 |
Intangible Assets, Net and Go_2
Intangible Assets, Net and Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net and Goodwill | The following table presents our Intangible assets, net and goodwill as of December 31: 2019 2018 Lease intangible $ 54,891 $ 54,891 Goodwill 40,361 40,361 Customer relationship 26,280 26,280 Fair value adjustments on leases — 45,531 Less: accumulated amortization (44,676 ) (69,374 ) $ 76,856 $ 97,689 |
Schedule of Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of December 31, 2019 is as follows: 2020 $ 6,030 2021 6,030 2022 6,030 2023 4,853 2024 1,643 Thereafter 11,909 Total $ 36,495 |
Amazon (Tables)
Amazon (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Warrants And Rights Note Disclosure [Abstract] | |
Summary of Customer Incentive Asset within Deferred Costs and Other Assets | Customer incentive asset included within Deferred costs and other assets is as follows: 2019 2018 Beginning balance $ 184,720 $ 106,538 Initial value for vested portion of warrant 949 94,359 Amortization of customer incentive asset (33,135 ) (16,177 ) Ending balance $ 152,534 $ 184,720 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
Debt Obligations | Our debt obligations, as of December 31: 2019 2018 Range of Maturity Dates Interest Rates (1) Balance Interest Rates (1) Balance Ex-Im Guaranteed Notes 2021 to 2025 1.90% $ 396,632 1.89% $ 481,226 Term loans 2020 to 2028 4.13% 1,319,754 4.18% 1,443,947 Private Placement Facility 2025 to 2026 3.26% 113,997 3.21% 129,482 Convertible Notes 2022 to 2024 2.04% 513,500 2.04% 513,500 Revolving Credit Facility 2022 3.54% 100,000 - - EETC 2019 - - 7.52% 2,158 Total principal amount of debt 2,443,883 2,570,313 Less: unamortized debt discount and issuance costs (103,711 ) (131,475 ) Total debt 2,340,172 2,438,838 Less current portion of debt (384,895 ) (264,835 ) Long-term debt $ 1,955,277 $ 2,174,003 (1) Interest rates reflect weighted-average rates as of year-end. |
Schedule of Convertible Notes | The Convertible Notes consisted of the following as of December 31: 2019 2018 2017 Convertible Notes 2015 Convertible Notes 2017 Convertible Notes 2015 Convertible Notes Remaining life in months 53 29 65 41 Liability component: Gross proceeds $ 289,000 $ 224,500 $ 289,000 $ 224,500 Less: debt discount, net of amortization (47,556 ) (21,019 ) (56,652 ) (28,807 ) Less: debt issuance cost, net of amortization (3,705 ) (1,959 ) (4,457 ) (2,716 ) Net carrying amount $ 237,739 $ 201,522 $ 227,891 $ 192,977 Equity component (1) $ 70,140 $ 52,903 $ 70,140 $ 52,903 (1) Included in Additional paid-in capital on the consolidated balance sheets. |
Summary of Convertible Note Hedges and Related Warrants | The following table summarizes the convertible note hedges and related warrants: 2017 Convertible Note 2015 Convertible Note Convertible Note Hedges: Number of shares (1) 4,731,306 3,031,558 Initial price per share $ 61.08 $ 74.05 Cost of hedge $ 70,140 $ 52,903 Convertible Note Warrants: Number of shares (1) 4,731,306 3,031,558 Initial price per share $ 92.20 $ 95.01 Proceeds from sale of warrants $ 38,148 $ 36,290 (1) |
Summary of Interest Expense Recognized | The following table presents the amount of interest expense recognized related to the 2017 Convertible Notes and the 2015 Convertible Notes: 2019 2018 2017 Contractual interest coupon $ 10,470 $ 10,470 $ 8,348 Amortization of debt discount 16,880 15,855 11,801 Amortization of debt issuance costs 1,509 1,487 1,132 Total interest expense recognized $ 28,859 $ 27,812 $ 21,281 |
Schedule of Future Cash Payments for Debt | The following table summarizes the cash required to be paid by year and the carrying value 2020 $ 397,043 2021 269,481 2022 592,060 2023 447,151 2024 481,920 Thereafter 256,228 Total debt cash payments 2,443,883 Less: unamortized debt discount and issuance costs (103,711 ) Debt $ 2,340,172 |
Term Loans [Member] | |
Debt Instrument [Line Items] | |
Schedule of Term Loans | The following table summarizes the terms for each term loan entered into during 2019 (in millions): Issue Face Collateral Original Fixed Interest Date Value Type Term Rate First 2019 Term Loan March 2019 $ 19.7 None 60 months 2.73 % Second 2019 Term Loan August 2019 74.0 Genx engines 60 months 2.98 % Third 2019 Term Loan November 2019 22.3 None 60 months 2.10 % Total $ 116.0 |
Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Convertible Notes | The following table lists certain key terms for the Convertible Notes: 2017 Convertible Note 2015 Convertible Note Fixed interest rate 1.88 % 2.25 % Earliest conversion date September 1, 2023 September 1, 2021 Initial conversion price per share $ 61.08 $ 74.05 Conversion rate (shares for each $1,000 of principal) 16.3713 13.5036 |
Leases and Guarantees (Tables)
Leases and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Rental Expenses | The following table summarizes rental expenses in: 2019 2018 2017 Aircraft and engines $ 155,639 $ 162,444 $ 142,945 Purchased capacity, office, vehicles and other $ 34,572 $ 63,650 $ 46,817 |
Summary of Lease-Related Assets and Liabilities Recorded on Consolidated Balance Sheet | The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet: Classification on the Consolidated Balance Sheets 2019 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 231,133 Finance lease assets Property and equipment, net 38,373 Less: Accumulated amortization on finance lease assets Property and equipment, net (6,038 ) Total lease assets $ 263,468 Liabilities Current Operating lease liabilities Current portion of long-term operating leases $ 141,973 Finance lease liabilities Current portion of long-term debt and finance leases 10,886 Noncurrent Operating lease liabilities Long-term operating leases 392,832 Finance lease liabilities Long-term debt and finance lease 29,625 Total lease liabilities $ 575,316 Weighted Average Remaining Lease Term in years Operating Leases 3.94 Finance Leases 9.51 Weighted Average Discount Rate Operating Leases 4.52 % Finance Leases 15.77 % |
Summary of Lease Costs for Finance and Operating Leases | The following table presents information related to lease costs for finance and operating leases: 2019 Fixed operating lease costs (1) $ 148,812 Variable operating lease costs (1) 22,089 Finance lease costs: Amortization of leased assets (2) 2,508 Interest on lease liabilities (3) 5,492 Total lease cost $ 178,901 (1) Expenses are classified within Aircraft rent and Navigation fees, landing fees and other rent on the consolidated statement of operations. Short-term lease contracts are not material. (2) Expense is classified within Depreciation and amortization on the consolidated statement of operations. (3) Expense is classified within Interest expense on the consolidated statement of operations. |
Schedule of Supplemental Cash Flow Information | The table below presents supplemental cash flow information related to leases as follows: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 168,338 Operating cash flows for finance leases 5,492 Financing cash flows for finance leases 1,184 |
Schedule of Maturities of Lease Liabilities | As of December 31, 2019, maturities of lease liabilities for the periods indicated were as follows: Operating Finance Leases Lease Total 2020 $ 162,713 $ 16,386 $ 179,099 2021 167,824 6,000 173,824 2022 119,092 6,000 125,092 2023 66,509 6,000 72,509 2024 53,440 6,000 59,440 Thereafter 13,722 44,500 58,222 Total minimum rental payments 583,300 84,886 668,186 Less: imputed interest 48,495 44,375 92,870 Total lease liabilities $ 534,805 $ 40,511 $ 575,316 |
Summary of Contractual Amount of Minimum Receipts Excluding Taxes Under Dry Leases | As of December 31, 2019, our contractual amount of minimum receipts, excluding taxes, for the periods indicated under Dry Leases reflecting the terms that were in effect were as follows: 2020 $ 166,890 2021 145,288 2022 137,604 2023 104,139 2024 62,117 Thereafter 184,349 Total minimum lease receipts $ 800,387 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of the (Benefit from) Provision for Income Taxes | The significant components of the (benefit from) provision for income taxes are as follows: 2019 2018 2017 Current: Federal $ - $ (4,518 ) $ (133 ) State and local 22 68 (99 ) Foreign 886 597 596 Total current (benefit) expense 908 (3,853 ) 364 Deferred: Federal (172,038 ) 43,167 (87,185 ) State and local (8,908 ) 1,780 1,868 Foreign 393 (2,367 ) 3,987 Total deferred expense (benefit) (180,553 ) 42,580 (81,330 ) Total income tax expense (benefit) $ (179,645 ) $ 38,727 $ (80,966 ) |
Domestic and Foreign Earnings (Loss) before Income Taxes | The domestic and foreign earnings (loss) before income taxes are as follows: 2019 2018 2017 Domestic $ (510,739 ) $ 257,726 $ 104,321 Foreign 37,981 51,648 39,051 (Loss) Income before income taxes $ (472,758 ) $ 309,374 $ 143,372 |
Effective Income Tax Rate Reconciliation | A reconciliation of the provision (benefit) for income taxes applying the statutory federal income tax rate of 21.0% for the years ended December 31, 2019 and 2018, and 35.0% for the year ended December 31, 2017, respectively, is as follows: 2019 2018 2017 U.S. federal statutory income tax rate (21.0 %) 21.0 % 35.0 % State and local taxes based on income, net of federal benefit (1.0 %) 0.8 % 0.3 % Change in deferred foreign and state tax rates (0.2 %) (3.0 %) 0.6 % Customer incentive (3.3 %) (5.1 %) 5.0 % Nondeductible compensation 1.1 % 1.0 % 1.4 % Other nondeductible expenses 0.3 % 0.2 % — Favorable resolution of income tax examinations (12.6 %) — — Tax effect of foreign operations (1.8 %) (2.2 %) (7.7 %) Impact of U.S. Tax Cuts and Jobs Act — — (90.7 %) Other 0.5 % (0.2 %) (0.4 %) Effective income tax rate (38.0 %) 12.5 % (56.5 %) |
Deferred Tax Assets (Liabilities) | The net noncurrent deferred tax asset (liability) was comprised of the following as of December 31: Assets (Liabilities) 2019 2018 Deferred tax assets: Net operating loss carryforwards and credits $ 556,051 $ 357,022 Accrued compensation 12,695 13,176 Aircraft and other leases 120,122 17,688 Goodwill and other intangibles - 2,765 Interest rate derivatives 857 1,179 Long-term debt 1,253 1,593 Obsolescence reserve 6,152 6,771 Stock-based compensation 3,123 3,203 Other 3,668 528 Total deferred tax assets 703,921 403,925 Valuation allowance (24,513 ) (29,871 ) Net deferred tax assets $ 679,408 $ 374,054 Deferred tax liabilities: Fixed assets $ (650,595 ) $ (589,649 ) Customer incentive (12,518 ) (15,894 ) Deferred maintenance (40,227 ) (22,747 ) Goodwill and other intangibles (1,714 ) - Operating lease right-of-use assets (46,929 ) - Total deferred tax liabilities $ (751,983 ) $ (628,290 ) Deferred taxes included within following balance sheet line items: Deferred taxes $ (74,040 ) $ (256,970 ) Deferred costs and other assets 1,465 2,734 Net deferred tax assets (liabilities) $ (72,575 ) $ (254,236 ) |
Unrecognized Income Tax Benefits | A reconciliation of the beginning and ending unrecognized income tax benefits is as follows: 2019 2018 2017 Beginning balance $ 74,275 $ 71,717 $ 113,892 Additions for tax positions related to the current year 1,414 2,061 1,366 Additions for tax positions related to prior years - 657 40 Reductions for tax positions related to prior years (53,306 ) (160 ) (43,581 ) Ending balance $ 22,383 $ 74,275 $ 71,717 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments | The following table summarizes the carrying value, estimated fair value and classification of our financial instruments as of: December 31, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 103,029 $ 103,029 $ 103,029 $ - $ - Short-term investments 879 879 - - 879 Restricted cash 10,401 10,401 10,401 - - $ 114,309 $ 114,309 $ 113,430 $ - $ 879 Liabilities Term loans and notes $ 1,800,911 $ 1,885,750 $ - $ - $ 1,885,750 Revolver 100,000 103,575 - - 103,575 Convertible notes (1) 439,261 450,668 450,668 - - Customer warrant 24,345 24,345 - 24,345 - $ 2,364,517 $ 2,464,338 $ 450,668 $ 24,345 $ 1,989,325 December 31, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 221,501 $ 221,501 $ 221,501 $ - $ - Short-term investments 15,624 15,624 - - 15,624 Restricted cash 11,240 11,240 11,240 - - Long-term investments and accrued interest 635 1,138 - - 1,138 $ 249,000 $ 249,503 $ 232,741 $ - $ 16,762 Liabilities Term loans and notes $ 2,048,972 $ 1,976,373 $ - $ - $ 1,976,373 Convertible notes (1) 420,868 490,070 490,070 - - Customer warrant 99,000 99,000 - 99,000 - $ 2,568,840 $ 2,565,443 $ 490,070 $ 99,000 $ 1,976,373 (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). |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting Tables [Abstract] | |
Operating Revenue and Direct Contribution For Our Reportable Business Segments | The following table sets forth Operating Revenue and Direct Contribution for our reportable segments reconciled to Operating Income (loss) and Income (loss) from continuing operations before income taxes: 2019 2018 2017 Operating Revenue: ACMI $ 1,247,770 $ 1,192,704 $ 988,741 Charter 1,305,860 1,313,484 1,034,562 Dry Leasing 200,781 168,470 119,820 Customer incentive asset amortization (33,135 ) (16,176 ) (5,261 ) Other 17,913 19,242 18,598 Total Operating Revenue $ 2,739,189 $ 2,677,724 $ 2,156,460 Direct Contribution: ACMI $ 218,459 $ 235,706 $ 229,498 Charter 149,372 211,661 150,144 Dry Leasing 70,386 48,904 39,939 Total Direct Contribution for Reportable Segments 438,217 496,271 419,581 Unallocated expenses and (income), net (337,434 ) (298,526 ) (258,925 ) Loss on early extinguishment of debt (804 ) - (167 ) Unrealized gain (loss) on financial instruments 75,109 123,114 (12,533 ) Special charge (638,373 ) (9,374 ) (106 ) Transaction-related expenses (4,164 ) (2,111 ) (4,509 ) Loss (gain) on disposal of aircraft (5,309 ) - 31 Income (loss) from continuing operations before income taxes (472,758 ) 309,374 143,372 Add back (subtract): Interest income (4,296 ) (6,710 ) (6,009 ) Interest expense 120,330 119,378 99,687 Capitalized interest (2,274 ) (4,727 ) (7,389 ) Loss on early extinguishment of debt 804 - 167 Unrealized (gain) loss on financial instruments (75,109 ) (123,114 ) 12,533 Other (income) expense, net (27,668 ) (10,659 ) (387 ) Operating Income (Loss) $ (460,971 ) $ 283,542 $ 241,974 |
Schedule of Disaggregated Charter Segment Revenue by Customer and Service Type | The following table disaggregates our Charter segment revenue by customer and service type: 2019 2018 2017 Cargo Passenger Total Cargo Passenger Total Cargo Passenger Total Commercial customers $ 579,001 $ 51,729 $ 630,730 $ 644,344 $ 33,785 $ 678,129 $ 519,507 $ 18,713 $ 538,220 AMC 313,236 361,894 675,130 327,751 307,604 635,355 205,776 290,566 496,342 Total Charter Revenue $ 892,237 $ 413,623 $ 1,305,860 $ 972,095 $ 341,389 $ 1,313,484 $ 725,283 $ 309,279 $ 1,034,562 |
Depreciation and Amortization by Reportable Business Segments | 2019 2018 2017 Depreciation and amortization expense: ACMI $ 101,756 $ 93,706 $ 71,097 Charter 50,705 38,531 36,539 Dry Leasing 81,384 73,868 47,426 Unallocated 17,252 11,235 11,651 Total Depreciation and Amortization $ 251,097 $ 217,340 $ 166,713 |
Stock-Based and Long-term Inc_2
Stock-Based and Long-term Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock Based Compensation Plans Tables [Abstract] | |
Summary of Our Restricted Shares | A summary of our restricted shares as of December 31, 2019 and changes during the year then ended are presented below: Weighted-Average Restricted Share Awards Number of Shares Grant-Date Fair Value Unvested as of December 31, 2018 604,795 $ 50.34 Granted 207,180 52.61 Vested (271,605 ) 48.30 Forfeited (9,874 ) 47.90 Unvested as of December 31, 2019 530,496 $ 52.31 |
Summary of Our Performance Shares | A summary of our performance shares as of December 31, 2019 and changes during the year then ended are presented below: Weighted-Average Performance Share Awards Number of Shares Grant-Date Fair Value Unvested as of December 31, 2018 358,386 $ 45.37 Granted 97,072 54.54 Vested (194,666 ) 35.47 Forfeited (3,633 ) 56.98 Unvested as of December 31, 2019 257,159 $ 56.17 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted EPS | The calculations of basic and diluted EPS were as follows: For the Years Ended December 31, Numerator: 2019 2018 2017 Income (loss) from continuing operations, net of taxes $ (293,113 ) $ 270,647 $ 224,338 Less: Unrealized gain on financial instruments, net of tax - (123,114 ) - Diluted income (loss) from continuing operations, net of tax $ (293,113 ) $ 147,533 $ 224,338 Denominator: Basic EPS weighted average shares outstanding 25,828 25,542 25,241 Effect of dilutive warrant - 2,078 - Effect of dilutive convertible notes - 180 27 Effect of dilutive restricted stock - 481 586 Diluted EPS weighted average shares outstanding 25,828 28,281 25,854 Earnings (loss) per share from continuing operations: Basic $ (11.35 ) $ 10.60 $ 8.89 Diluted $ (11.35 ) $ 5.22 $ 8.68 Loss per share from discontinued operations: Basic $ - $ (0.00 ) $ (0.03 ) Diluted $ - $ (0.00 ) $ (0.03 ) Earnings (loss) per share: Basic $ (11.35 ) $ 10.60 $ 8.85 Diluted $ (11.35 ) $ 5.22 $ 8.64 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The following table summarizes t he components of Accumulated other comprehensive income (loss): Interest Rate Foreign Currency Derivatives Translation Total Balance as of December 31, 2017 $ (4,002 ) $ 9 $ (3,993 ) Reclassification to interest expense 1,485 - 1,485 Tax effect (354 ) - (354 ) Reclassification of taxes (970 ) - (970 ) Balance as of December 31, 2018 $ (3,841 ) $ 9 $ (3,832 ) Reclassification to interest expense 1,336 - 1,336 Tax effect (322 ) - (322 ) Balance as of December 31, 2019 $ (2,827 ) $ 9 $ (2,818 ) |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | The following table summarizes the 2019 and 2018 quarterly results: First Second Third Fourth 2019* Quarter Quarter Quarter Quarter Total Operating Revenue $ 679,683 $ 663,918 $ 648,539 $ 747,049 Operating Income (loss) 46,874 8,970 (879 ) (515,936 ) Income (Loss) from continuing operations, net of taxes (29,710 ) 86,868 59,974 (410,245 ) Net Income (Loss) $ (29,710 ) $ 86,868 $ 59,974 $ (410,245 ) Earnings (Loss) per share from continuing operations: Basic $ (1.15 ) $ 3.36 $ 2.32 $ (15.86 ) Diluted** $ (1.15 ) $ 1.61 $ 2.32 $ (15.86 ) Earnings (Loss) per share: Basic $ (1.15 ) $ 3.36 $ 2.32 $ (15.86 ) Diluted** $ (1.15 ) $ 1.61 $ 2.32 $ (15.86 ) First Second Third Fourth 2018*** Quarter Quarter Quarter Quarter Total Operating Revenue $ 590,014 $ 666,145 $ 656,607 $ 764,958 Operating Income 40,569 60,946 54,470 127,557 Income (Loss) from continuing operations, net of taxes 9,628 (21,123 ) 71,138 211,004 Loss from discontinued operations, net of taxes (16 ) (27 ) (7 ) (30 ) Net Income (Loss) $ 9,612 $ (21,150 ) $ 71,131 $ 210,974 Earnings (Loss) per share from continuing operations: Basic $ 0.38 $ (0.83 ) $ 2.78 $ 8.25 Diluted**** $ 0.37 $ (0.83 ) $ 0.84 $ 2.73 Loss per share from discontinued operations: Basic $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Diluted $ (0.00 ) $ (0.00 ) $ (0.00 ) $ (0.00 ) Earnings (Loss) per share: Basic $ 0.38 $ (0.83 ) $ 2.78 $ 8.25 Diluted**** $ 0.37 $ (0.83 ) $ 0.84 $ 2.73 * ** In 2019, the sum of quarterly diluted EPS amounts differs from the full year diluted EPS. The difference primarily relates to the exclusion from the calculation of diluted EPS of unrealized gains on financial instruments in the third and fourth quarters, and anti-dilutive shares in the second quarter, both related to a warrant issued to a customer. *** Included in the first and second quarters were unrealized losses on financial instruments of $ 7.7 million and $ 50.0 million, respectively. Included in the third and fourth quarters were unrealized gains on financial instruments of $ 46.1 million and $ 134.8 million, respectively. **** In 2018, the sum of quarterly diluted EPS amounts differs from the full year diluted EPS. The difference primarily relates to the exclusion from the calculation of diluted EPS of unrealized gains on financial instruments in the third and fourth quarters, and anti-dilutive shares in the third quarter, both related to a warrant issued to a customer. |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - Polar [Member] | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Presentation [Line Items] | |
Equity interest | 51.00% |
Voting interest | 75.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Feb. 20, 2020USD ($)TermLoan | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)IssuanceSeriesNumber | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) |
Significant Accounting Policies [Line Items] | |||||||
Expendable parts net book value | $ 48,300,000 | $ 48,300,000 | $ 49,400,000 | ||||
Allowance for expendable obsolescence | 30,400,000 | 30,400,000 | 33,000,000 | ||||
Depreciation expense | 220,200,000 | 196,600,000 | $ 153,100,000 | ||||
Net book value on flight equipment dry leased to customers | 1,465,100,000 | 1,465,100,000 | 1,717,500,000 | ||||
Accumulated depreciation on flight equipment on dry lease | 260,400,000 | 260,400,000 | 232,400,000 | ||||
Rotable parts inventory, net book value | 244,800,000 | 244,800,000 | 240,700,000 | ||||
Rotable parts impairment charges | 33,600,000 | ||||||
Goodwill total balance | 40,400,000 | $ 40,400,000 | 40,400,000 | ||||
Number of series equipment notes are issued | IssuanceSeriesNumber | 3 | ||||||
Prepaid maintenance deposits | 2,200,000 | $ 2,200,000 | 3,200,000 | ||||
Operating lease right of use assets, net | 231,133,000 | 231,133,000 | 0 | $ 596,900,000 | |||
Operating lease liabilities | 534,805,000 | $ 534,805,000 | $ 650,000,000 | ||||
Subsequent Event [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Customer warrant liability reclassified as additional paid in capital | $ 14,000,000 | ||||||
Percentage of customer warrant liability | 60.00% | ||||||
Customer warrant liability | $ 24,000,000 | ||||||
Subsequent Event [Member] | Dry Leases [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of customer warrant liability | 40.00% | ||||||
Customer warrant liability | $ 10,000,000 | ||||||
Subsequent Event [Member] | Secured Term Loan [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Repayments of term loan | $ 126,200,000 | ||||||
Number of refinanced term loans | TermLoan | 2 | ||||||
Dry Leasing Joint Venture [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Voting interest | 10.00% | ||||||
Investment in joint venture | 1,500,000 | $ 1,500,000 | |||||
Capital contributions | 0 | 0 | |||||
Dry Leasing Joint Venture [Member] | Maximum [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Commitment to capital contributions | 40,000,000 | $ 40,000,000 | |||||
Parts Joint Venture [Member] | Variable Interest Entity Not Primary Beneficiary [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Voting interest | 50.00% | ||||||
Investment in joint venture | 20,000,000 | $ 20,000,000 | 22,300,000 | ||||
Payables to related party | $ 500,000 | $ 500,000 | $ 500,000 | ||||
Original Owner Participant [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of each aircraft cost invested on an equity basis | 20.00% | 20.00% | |||||
Wells Fargo [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Percentage of each aircraft cost financed with nonrecourse debt | 80.00% | ||||||
Charter Services [Member] | |||||||
Significant Accounting Policies [Line Items] | |||||||
Sales commissions, description | We generally expense sales commissions when incurred because the amortization period is less than one year. |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Property and Equipment Depreciable Lives (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Minimum [Member] | Flight equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 30 years |
Minimum [Member] | Computer software and equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 3 years |
Minimum [Member] | Ground handling equipment and other [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 3 years |
Maximum [Member] | Flight equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 40 years |
Maximum [Member] | Computer software and equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 5 years |
Maximum [Member] | Ground handling equipment and other [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Deferred Maintenance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||
Beginning balance, net | $ 103,647 | $ 63,868 |
Deferred maintenance costs | 113,076 | 53,343 |
Disposals | (10,450) | |
Amortization of deferred maintenance | (21,994) | (13,564) |
Ending balance, net | $ 184,279 | $ 103,647 |
DHL Investment and Polar - Addi
DHL Investment and Polar - Additional Information (Details) - DHL [Member] - Polar [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Equity interest | 49.00% | ||
Voting interest | 25.00% | ||
Revenue recognized | $ 101.3 | $ 106.9 | $ 33.5 |
DHL Investment and Polar - Summ
DHL Investment and Polar - Summary of Aircraft Types, Services and Number of Aircraft Provided to Polar and DHL (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Service [Member] | |
Aircraft type [Line Items] | |
747-8F | ACMI |
747-400F | ACMI |
777-200LRF | CMI |
777-200LRF | CMI and Dry Leasing |
767-300 | CMI and Dry Leasing |
767-300 | CMI |
767-200 | CMI |
737-400F | CMI |
757-200F | Dry Leasing |
Total Aircraft [Member] | |
Aircraft type [Line Items] | |
747-8F | 6 |
747-400F | 5 |
777-200LRF | 6 |
777-200LRF | 2 |
767-300 | 2 |
767-300 | 2 |
767-200 | 9 |
737-400F | 5 |
757-200F | 1 |
Total | 38 |
DHL Investment and Polar - Su_2
DHL Investment and Polar - Summary of Transactions with Polar (Details) - Polar [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Revenue from related party | $ 374,236 | $ 412,793 | $ 420,564 |
Ground handling and airport fees to Polar | 2,202 | 2,301 | 2,746 |
Receivables from related party | 10,855 | 16,349 | 0 |
Payables to related party | 2,161 | 2,527 | 0 |
Aggregate Carrying Value of Polar Investment | $ 4,870 | $ 4,870 | $ 0 |
Supplemental Balance Sheet an_3
Supplemental Balance Sheet and Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||
Accounts receivable related to customer contracts excluding dry leasing contracts | $ 247.5 | $ 227.1 |
Supplemental Balance Sheet an_4
Supplemental Balance Sheet and Cash Flow Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||
Maintenance | $ 136,315 | $ 133,337 |
Customer maintenance reserves | 110,355 | 104,454 |
Salaries, wages and benefits | 75,719 | 82,809 |
Aircraft fuel | 28,821 | 32,641 |
Deferred revenue | 26,357 | 26,584 |
Other | 104,158 | 85,844 |
Accrued liabilities | $ 481,725 | $ 465,669 |
Supplemental Balance Sheet an_5
Supplemental Balance Sheet and Cash Flow information - Summary of Significant Changes in Deferred Revenue liability Balances (Details) - Non-Dry Lease Revenue Contracts with Customers [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue Recognition [Line Items] | |
Balance as of December 31, 2018 | $ 13,007 |
Revenue recognized | (172,119) |
Amounts collected or invoiced | 178,346 |
Balance as of December 31, 2019 | $ 19,234 |
Supplemental Balance Sheet an_6
Supplemental Balance Sheet and Cash Flow information - Summary of Interest and Income Taxes Paid (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |||
Interest paid | $ 88,788 | $ 86,168 | $ 73,872 |
Income taxes paid, net of refunds | $ (1,715) | $ 695 | $ 563 |
Supplemental Balance Sheet an_7
Supplemental Balance Sheet and Cash Flow information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 103,029 | $ 221,501 | ||
Restricted cash | 10,401 | 11,240 | ||
Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows | $ 113,430 | $ 232,741 | $ 291,864 | $ 138,250 |
Special Charge and Other Inco_3
Special Charge and Other Income - Additional Information (Details) $ in Thousands | Feb. 20, 2020USD ($)Engine | Dec. 31, 2019USD ($)Engine | Dec. 31, 2019USD ($)PassengerAircraftEngine | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||||
Impairment of 747-400 freighter asset group | $ 580,300 | $ 580,279 | |||
Number of passenger aircraft used for training purposes | PassengerAircraft | 2 | ||||
Proceeds from sale of aircraft | $ 10,300 | $ 0 | $ 0 | ||
Number of aircraft held for sale | Engine | 3 | 3 | |||
CF6-80 Engines [Member] | |||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||||
Impairment loss recognized for held for sale assets | 9,400 | ||||
Other Expense (Income), Net [Member] | CF6-80 Engines [Member] | |||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||||
Aircraft rent refund | $ 27,600 | $ 12,400 | |||
Subsequent Event [Member] | |||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||||
Proceeds from sale of aircraft | $ 12,400 | ||||
Number of aircraft disposed | Engine | 1 | ||||
Prepaid Expenses and Other Current Assets [Member] | Level 3 [Member] | |||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | |||||
Carrying value of asset held for sale | $ 155,900 | $ 155,900 |
Special Charge and Other Inco_4
Special Charge and Other Income - Summary of Special Charge Included in Total Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Asset Impairment Charges [Abstract] | |||||
Impairment of 747-400 freighter aircraft and related assets | $ 580,300 | $ 580,279 | |||
Impairment of assets sold, held for sale and other | 58,094 | ||||
Special charge | $ 616,200 | $ 22,200 | $ 638,373 | $ 9,374 | $ 106 |
Intangible Assets, Net and Go_3
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Intangible Assets Table Details [Abstract] | ||
Lease intangible | $ 54,891 | $ 54,891 |
Goodwill | 40,361 | 40,361 |
Customer relationship | 26,280 | 26,280 |
Fair value adjustments on leases | 45,531 | |
Less: accumulated amortization | (44,676) | (69,374) |
Intangible assets, net | $ 76,856 | $ 97,689 |
Intangible Assets, Net and Go_4
Intangible Assets, Net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible Assets Amortization Expense Details [Abstract] | |||
Amortization of Intangible Assets | $ 6.2 | $ 8.8 | $ 9.5 |
Intangible Assets, Net and Go_5
Intangible Assets, Net and Goodwill - Schedule of Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Schedule Of Estimated Amortization Expense Table Details [Abstract] | |
2020 | $ 6,030 |
2021 | 6,030 |
2022 | 6,030 |
2023 | 4,853 |
2024 | 1,643 |
Thereafter | 11,909 |
Total | $ 36,495 |
Amazon - Additional Information
Amazon - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | May 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Class Of Warrant Or Right [Line Items] | |||||
Revenues | $ 2,739,189 | $ 2,677,724 | $ 2,156,460 | ||
Amortization of customer incentive asset | 33,135 | 16,177 | |||
Accelerated amortization of the customer incentive asset | 6,400 | ||||
Warrant liability unrealized (gains) losses | (75,100) | (123,100) | $ 12,500 | ||
Fair value of warrant liability | $ 24,300 | $ 99,000 | |||
Warrant A [Member] | |||||
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 fully vested | 7,500,000 | ||||
Warrant vesting year | 2021 | ||||
Warrants exercised | 0 | ||||
Warrant B [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
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 | ||||
Vesting increments of Amazon warrants | 37,500 | ||||
Revenues | $ 4,200 | ||||
Warrant vested | 75,000 | ||||
Additional warrant vesting year | 2023-05 | ||||
Warrant C [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Right to acquire outstanding common shares | up to an additional 9.9% of our outstanding common shares | ||||
Warrant exercise price | $ 52.90 | ||||
Vesting increments of Amazon warrants | 45,428 | ||||
Revenues | $ 6,900 | ||||
Warrant vested | 0 | ||||
Incremental warrant to buy number of shares vesting. | 6,600,000 | ||||
Warrant vesting year | 2026-03 | ||||
Warrant A, B and C [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Right to acquire outstanding common shares | up to a total of 39.9% (after the issuance) of our outstanding common shares | ||||
Maximum [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Amazon entitled to vote shares of it owns of outstanding common shares percentage | 14.90% | ||||
Maximum [Member] | Warrant A [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrant providing right to acquire outstanding common shares percentage | 20.00% | ||||
Maximum [Member] | Warrant B [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Percentage of additional warrant to acquire outstanding common shares | 10.00% | ||||
Revenues | $ 420,000 | ||||
Maximum [Member] | Warrant C [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrant providing right to acquire outstanding common shares percentage | 9.90% | ||||
Revenues | $ 1,000,000 | ||||
Maximum [Member] | Warrant A, B and C [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Warrant providing right to acquire outstanding common shares percentage | 39.90% | ||||
Dry Leases [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Lease term | 10 years | ||||
CMI Operation [Member] | |||||
Class Of Warrant Or Right [Line Items] | |||||
Lease term | 7 years | 7 years |
Amazon - Summary of Customer In
Amazon - Summary of Customer Incentive Asset within Deferred Costs and Other Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Warrants And Rights Note Disclosure [Abstract] | ||
Beginning balance | $ 184,720 | $ 106,538 |
Initial value for vested portion of warrant | 949 | 94,359 |
Amortization of customer incentive asset | (33,135) | (16,177) |
Ending balance | $ 152,534 | $ 184,720 |
Debt - Debt Obligations (Detail
Debt - Debt Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | |||
Total principal amount of debt | $ 2,443,883 | $ 2,570,313 | |
Less: unamortized debt discount and issuance costs | (103,711) | (131,475) | |
Total debt | 2,340,172 | 2,438,838 | |
Less current portion of debt | (384,895) | (264,835) | |
Long-term debt | 1,955,277 | 2,174,003 | |
Ex-Im Guaranteed Notes [Member] | |||
Debt Instrument [Line Items] | |||
Ex-Im Guaranteed Notes | $ 396,632 | $ 481,226 | |
Interest Rates | [1] | 1.90% | 1.89% |
Ex-Im Guaranteed Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2021 | ||
Ex-Im Guaranteed Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2025 | ||
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Term loans | $ 1,319,754 | $ 1,443,947 | |
Interest Rates | [1] | 4.13% | 4.18% |
Term Loans [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2020 | ||
Term Loans [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2028 | ||
Private Placement Facility [Member] | |||
Debt Instrument [Line Items] | |||
Private Placement Facility | $ 113,997 | $ 129,482 | |
Interest Rates | [1] | 3.26% | 3.21% |
Private Placement Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2025 | ||
Private Placement Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2026 | ||
Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Convertible Notes | $ 513,500 | $ 513,500 | |
Interest Rates | [1] | 2.04% | 2.04% |
Convertible Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2022 | ||
Convertible Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2024 | ||
EETCs [Member] | |||
Debt Instrument [Line Items] | |||
EETC | $ 0 | $ 2,158 | |
Range of Maturity Dates | 2019 | ||
Interest Rates | [1] | 0.00% | 7.52% |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving Credit Facility | $ 100,000 | $ 0 | |
Range of Maturity Dates | 2022 | ||
Interest Rates | [1] | 3.54% | 0.00% |
[1] | Interest rates reflect weighted-average rates as of year-end |
Debt - Schedule of Term Loans (
Debt - Schedule of Term Loans (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | |
Face Value | $ 116,000,000 |
First 2019 Term Loan [Member] | Unsecured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2019-03 |
Face Value | $ 19,700,000 |
Collateral Type | None |
Original Term | 60 months |
Fixed Interest Rate | 2.73% |
Second 2019 Term Loan [Member] | Secured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2019-08 |
Face Value | $ 74,000,000 |
Collateral Type | Genx engines |
Original Term | 60 months |
Fixed Interest Rate | 2.98% |
Third 2019 Term Loan [Member] | Unsecured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2019-11 |
Face Value | $ 22,300,000 |
Collateral Type | None |
Original Term | 60 months |
Fixed Interest Rate | 2.10% |
Debt - Term Loans - Additional
Debt - Term Loans - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Aug. 31, 2019USD ($) | Mar. 31, 2019USD ($)TermLoan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||||
Proceeds from insurance | $ 38,133 | $ 0 | $ 0 | ||
Loss on early extinguishment of debt | (804) | $ 0 | $ (167) | ||
Second 2019 Term Loan [Member] | Secured Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Loss on early extinguishment of debt | $ 600 | ||||
767-300 Freighter Aircraft [Member] | |||||
Debt Instrument [Line Items] | |||||
Proceeds from insurance | $ 41,100 | ||||
Repayments of debt | $ 20,700 | ||||
Number of term loans | TermLoan | 2 | ||||
Loss on early extinguishment of debt | $ 200 | ||||
Insurance recoveries, net | $ 3,600 |
Debt - Private Placement Facili
Debt - Private Placement Facility - Additional Information (Details) - Private Placement Facility [Member] | 1 Months Ended |
Sep. 30, 2017USD ($)FreighterAircraft | |
Debt Instrument [Line Items] | |
Debt facility amount | $ | $ 145,800,000 |
Number of freighter aircraft dry leased | FreighterAircraft | 6 |
Debt - Convertible Notes - Addi
Debt - Convertible Notes - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
May 31, 2017USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2019USD ($)Day$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||
Refinanced enhanced equipment trust certificates (EETCs) | $ 187,800 | |||||
Aggregate amount of EETCs refinanced interest rate | 8.10% | |||||
Trading price per convertible notes payable | $ / shares | $ 1,000 | |||||
Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, repurchase percentage | 100.00% | |||||
Debt instrument, convertible, threshold trading days | Day | 20 | |||||
Debt instrument, convertible, threshold consecutive trading days | Day | 30 | |||||
Debt instrument, convertible, threshold percentage of stock price trigger | 130.00% | |||||
Debt instrument, convertible, threshold business days | 5 days | |||||
Debt instrument, convertible, threshold consecutive measurement period | 5 days | |||||
Trading price per convertible notes payable | $ / shares | $ 1,000 | |||||
Debt instrument, convertible, threshold percentage of stock price trigger in measurement period | 98.00% | |||||
2017 Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible notes aggregate principal amount | $ 289,000 | $ 289,000 | $ 289,000 | |||
Convertible notes, date of maturity | Jun. 1, 2024 | |||||
Debt instrument, conversion price | $ / shares | $ 61.08 | |||||
Effective interest rate of debt | 6.14% | |||||
Debt issuance costs | $ 7,500 | |||||
Liability issuance costs | 5,700 | |||||
Equity issuance costs | $ 1,800 | |||||
2017 Convertible Notes [Member] | Warrants [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, conversion price | $ / shares | $ 92.20 | |||||
2017 Convertible Notes [Member] | Long-term Debt and Capital Lease [Member] | Revolver [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayment line of credit outstanding balance | $ 150,000 | |||||
2015 Convertible Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Convertible notes aggregate principal amount | $ 224,500 | $ 224,500 | $ 224,500 | |||
Convertible notes, date of maturity | Jun. 1, 2022 | |||||
Debt instrument, conversion price | $ / shares | $ 74.05 | |||||
Effective interest rate of debt | 6.44% | |||||
Debt issuance costs | $ 6,800 | |||||
Liability issuance costs | 5,200 | |||||
Equity issuance costs | $ 1,600 | |||||
2015 Convertible Notes [Member] | Warrants [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, conversion price | $ / shares | $ 95.01 |
Debt - Certain Key Terms for Co
Debt - Certain Key Terms for Convertible Note (Details) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
2017 Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Fixed interest rate | 1.88% |
Earliest conversion date | Sep. 1, 2023 |
Initial conversion price per share | $ 61.08 |
Conversion rate (shares for each $1,000 of principal) | 16.3713 |
2015 Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Fixed interest rate | 2.25% |
Earliest conversion date | Sep. 1, 2021 |
Initial conversion price per share | $ 74.05 |
Conversion rate (shares for each $1,000 of principal) | 13.5036 |
Debt - Certain Key Terms for _2
Debt - Certain Key Terms for Convertible Note (Parenthetical) (Details) | Dec. 31, 2019$ / shares |
Debt Disclosure [Abstract] | |
Debt instrument, convertible, conversion price | $ 1,000 |
Debt - Summary of Convertible N
Debt - Summary of Convertible Note Hedges and Related Warrants (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | ||||
Proceeds from sale of convertible note warrants | $ 0 | $ 0 | $ 38,148 | |
2017 Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of shares | [1] | 4,731,306 | ||
Initial price per share | $ 61.08 | |||
Cost of hedge | $ 70,140 | |||
2017 Convertible Notes [Member] | Warrants [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of shares | [1] | 4,731,306 | ||
Initial price per share | $ 92.20 | |||
Proceeds from sale of convertible note warrants | $ 38,148 | |||
2015 Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of shares | [1] | 3,031,558 | ||
Initial price per share | $ 74.05 | |||
Cost of hedge | $ 52,903 | |||
2015 Convertible Notes [Member] | Warrants [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of shares | [1] | 3,031,558 | ||
Initial price per share | $ 95.01 | |||
Proceeds from sale of convertible note warrants | $ 36,290 | |||
[1] | Subject to adjustment for certain specified events |
Debt - Schedule of Convertible
Debt - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | May 31, 2017 | Jun. 30, 2015 | ||
Debt Instrument [Line Items] | |||||
Less: debt discount, net of amortization | $ (103,711) | ||||
2017 Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining life in months | 53 months | 65 months | |||
Gross proceeds | $ 289,000 | $ 289,000 | $ 289,000 | ||
Less: debt discount, net of amortization | (47,556) | (56,652) | |||
Less: debt issuance cost, net of amortization | (3,705) | (4,457) | |||
Net carrying amount | 237,739 | 227,891 | |||
Equity component | [1] | $ 70,140 | $ 70,140 | ||
2015 Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining life in months | 29 months | 41 months | |||
Gross proceeds | $ 224,500 | $ 224,500 | $ 224,500 | ||
Less: debt discount, net of amortization | (21,019) | (28,807) | |||
Less: debt issuance cost, net of amortization | (1,959) | (2,716) | |||
Net carrying amount | 201,522 | 192,977 | |||
Equity component | [1] | $ 52,903 | $ 52,903 | ||
[1] | Included in Additional paid-in capital on the consolidated balance sheets. |
Debt - Summary of Interest Expe
Debt - Summary of Interest Expense Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Total interest expense recognized | $ 120,330 | $ 119,378 | $ 99,687 |
Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest coupon | 10,470 | 10,470 | 8,348 |
Amortization of debt discount | 16,880 | 15,855 | 11,801 |
Amortization of debt issuance costs | 1,509 | 1,487 | 1,132 |
Total interest expense recognized | $ 28,859 | $ 27,812 | $ 21,281 |
Debt - EETC - Additional Inform
Debt - EETC - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Face value | $ 116,000,000 | |
EETC [Member] | ||
Debt Instrument [Line Items] | ||
Issue date | 1999 | |
Face value | $ 109,900,000 | |
Debt instrument maturity date | 2019-02 | |
Collateral type | 747-400F |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2016 | Jan. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 116,000,000 | |||
Revolver [Member] | ||||
Debt Instrument [Line Items] | ||||
Term of revolving credit facility | 4 years | 3 years | ||
Borrowing capacity | $ 200,000,000 | $ 150,000,000 | ||
Revolver collateral | several 747-400 and 767-300 aircraft | |||
Revolver interest rate description | LIBOR or an agreed upon rate plus a margin of 1.75% per annum | |||
Interest rate of undrawn portion | 0.35% | |||
Outstanding balance | $ 100,000,000 | $ 0 | ||
Unused availability | $ 86,800,000 | |||
Revolver [Member] | Debt Instrument Face Amount for First $100 Million [Million] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis spread on variable Interest rate | 1.75% | |||
Revolver [Member] | Utilization Greater than $100 Million [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Basis spread on variable Interest rate | 2.00% | |||
Revolver [Member] | 1.75% [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 100,000 | |||
Revolver [Member] | 2.00% [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 100,000 | |||
Revolver [Member] | Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Unused availability | $ 94,800,000 |
Debt - Schedule of Future Cash
Debt - Schedule of Future Cash Payments for Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long Term Debt By Maturity [Abstract] | ||
2020 | $ 397,043 | |
2021 | 269,481 | |
2022 | 592,060 | |
2023 | 447,151 | |
2024 | 481,920 | |
Thereafter | 256,228 | |
Total debt cash payments | 2,443,883 | |
Less: unamortized debt discount and issuance costs | (103,711) | |
Total debt | $ 2,340,172 | $ 2,438,838 |
Debt - Future Cash Payments for
Debt - Future Cash Payments for Debt - Additional Information (Details) - Subsequent Event [Member] - Secured Term Loan [Member] $ in Millions | Feb. 20, 2020USD ($)TermLoan |
Debt Instrument [Line Items] | |
Repayments of term loan | $ | $ 126.2 |
Number of refinanced term loans | TermLoan | 2 |
Leases and Guarantees - Summary
Leases and Guarantees - Summary of Rental Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Aircraft and engines | $ 155,639 | $ 162,444 | $ 142,945 |
Purchased capacity, office, vehicles and other | $ 34,572 | $ 63,650 | $ 46,817 |
Leases and Guarantees - Additio
Leases and Guarantees - Additional Information (Details) | Feb. 20, 2020LeasedAircraft | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)LeasedAircraft |
Lessee Lease Description [Line Items] | |||
Number of aircraft | 22 | ||
Number of aircraft operated under operating lease | 20 | ||
Lessee, operating lease, description | As of December 31, 2019, we lease 22 aircraft, of which 20 are operating leases. Lease expirations for our leased aircraft range from March 2020 to June 2032. In addition, we lease a variety of office space, airport station locations, warehouse space, vehicles and equipment, with lease expirations ranging from March 2020 to May 2027. | ||
Impairment charge on operating lease right-of-use assets and finance lease assets related to 747-400 freighter fleet | $ | $ 272,500,000 | ||
Commitments for additional leases not yet commenced | $ | $ 20,200 | $ 20,200 | |
Additional leases commencement year | 2020 | ||
Dry Leases [Member] | Subsequent Event [Member] | |||
Lessee Lease Description [Line Items] | |||
Number of aircrafts | 2 | ||
Lease extension period | 10 years | ||
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease expiration period | 2020-03 | ||
Contract terms for leases not yet commenced | 1 year | 1 year | |
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease expiration period | 2032-06 | ||
Contract terms for leases not yet commenced | 16 years | 16 years | |
Office Space, Airport Station Locations, Warehouse Space, Vehicles and Equipment [Member] | Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease expiration period | 2020-03 | ||
Office Space, Airport Station Locations, Warehouse Space, Vehicles and Equipment [Member] | Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating lease expiration period | 2027-05 |
Leases and Guarantees - Summa_2
Leases and Guarantees - Summary of Lease-Related Assets and Liabilities Recorded on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 231,133 | $ 596,900 | $ 0 |
Finance lease assets | $ 38,373 | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | ||
Less: Accumulated amortization on finance lease assets | $ (6,038) | ||
Total lease assets | 263,468 | ||
Operating lease liabilities | 141,973 | 0 | |
Finance lease liabilities | 10,886 | ||
Operating lease liabilities | 392,832 | $ 0 | |
Finance lease liabilities | 29,625 | ||
Total lease liabilities | $ 575,316 |
Leases and Guarantees - Summa_3
Leases and Guarantees - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2019 |
Weighted Average Remaining Lease Term in years | |
Operating Leases | 3 years 11 months 8 days |
Finance Leases | 9 years 6 months 3 days |
Weighted Average Discount Rate | |
Operating Leases | 4.52% |
Finance Leases | 15.77% |
Leases and Guarantees - Summa_4
Leases and Guarantees - Summary of Lease Costs for Finance and Operating Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Fixed operating lease costs | $ 148,812 |
Variable operating lease costs | 22,089 |
Finance lease costs: | |
Amortization of leased assets | 2,508 |
Interest on lease liabilities | 5,492 |
Total lease cost | $ 178,901 |
Leases and Guarantees - Schedul
Leases and Guarantees - Schedule of Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows for operating leases | $ 168,338 |
Operating cash flows for finance leases | 5,492 |
Financing cash flows for finance leases | $ 1,184 |
Leases and Guarantees - Sched_2
Leases and Guarantees - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Leases [Abstract] | ||
Operating Leases, 2020 | $ 162,713 | |
Operating Leases, 2021 | 167,824 | |
Operating Leases, 2022 | 119,092 | |
Operating Leases, 2023 | 66,509 | |
Operating Leases, 2024 | 53,440 | |
Operating Leases, Thereafter | 13,722 | |
Operating Leases, Total minimum rental payments | 583,300 | |
Operating Leases, Less: imputed interest | 48,495 | |
Operating Leases | 534,805 | $ 650,000 |
Finance Lease [Abstract] | ||
Finance Lease, 2020 | 16,386 | |
Finance Lease, 2021 | 6,000 | |
Finance Lease, 2022 | 6,000 | |
Finance Lease, 2023 | 6,000 | |
Finance Lease, 2024 | 6,000 | |
Finance Lease, Thereafter | 44,500 | |
Finance Lease, Total minimum rental payments | 84,886 | |
Finance Lease, Less: imputed interest | 44,375 | |
Finance Lease | 40,511 | |
Total [Abstract] | ||
2020 | 179,099 | |
2021 | 173,824 | |
2022 | 125,092 | |
2023 | 72,509 | |
2024 | 59,440 | |
Thereafter | 58,222 | |
Total minimum rental payments | 668,186 | |
Less: imputed interest | 92,870 | |
Total lease liabilities | $ 575,316 |
Leases and Guarantees - Summa_5
Leases and Guarantees - Summary of Contractual Amount of Minimum Receipts Excluding Taxes Under Dry Leases (Details) - Dry Leases [Member] $ in Thousands | Dec. 31, 2019USD ($) |
Lessor Lease Description [Line Items] | |
2020 | $ 166,890 |
2021 | 145,288 |
2022 | 137,604 |
2023 | 104,139 |
2024 | 62,117 |
Thereafter | 184,349 |
Total minimum lease receipts | $ 800,387 |
Income Taxes - Components of th
Income Taxes - Components of the (Benefit from) Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ (4,518) | $ (133) | |
State and local | $ 22 | 68 | (99) |
Foreign | 886 | 597 | 596 |
Total current (benefit) expense | 908 | (3,853) | 364 |
Deferred: | |||
Federal | (172,038) | 43,167 | (87,185) |
State and local | (8,908) | 1,780 | 1,868 |
Foreign | 393 | (2,367) | 3,987 |
Total deferred expense (benefit) | (180,553) | 42,580 | (81,330) |
Total income tax expense (benefit) | $ (179,645) | $ 38,727 | $ (80,966) |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Earnings (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Domestic and foreign earnings before income taxes | |||
Domestic | $ (510,739) | $ 257,726 | $ 104,321 |
Foreign | 37,981 | 51,648 | 39,051 |
Income (loss) from continuing operations before income taxes | $ (472,758) | $ 309,374 | $ 143,372 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
U.S. federal corporate income tax rate | 21.00% | 21.00% | 35.00% |
U.S. federal tax credits | $ 2.3 | $ 4.5 | |
Credits refundable on income tax returns period description | They are reflected as current and long-term receivables in the accompanying consolidated balance sheets. | ||
Tax credit receivable refund amount | $ 2.3 | ||
Foreign NOLs for HK and Singapore net of unrecognized tax benefits | $ 636.3 | 591.9 | |
Aircraft leasing incentive program participation expire date | Jul. 31, 2023 | ||
Valuation allowance | $ 24.5 | 29.9 | $ 30.9 |
Adjustment to the valuation allowance primarily due to change in federal income tax rate under U.S. Tax Cuts and Jobs Act | 5.4 | 1 | 18.5 |
Tax-related interest benefit | 0 | 0 | $ 0 |
Cumulative liability for tax-related interest | 0.1 | 0.1 | |
U.S. Federal [Member] | |||
Income Taxes [Line Items] | |||
U.S. NOLs | $ 2,200 | $ 1,300 | |
NOL Expirations | 2037 | ||
Income tax year subject to examination | 2016 2017 2018 2019 | ||
Foreign [Member] | Singapore [Member] | |||
Income Taxes [Line Items] | |||
Income tax year subject to examination | 2013 2014 2015 2016 2017 2018 2019 | ||
Foreign [Member] | Hong Kong [Member] | |||
Income Taxes [Line Items] | |||
Income tax year subject to examination | 2013 2014 2015 2016 2017 2018 2019 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of differences between the U.S. federal statutory income tax rate and the effective income tax rates | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
State and local taxes based on income, net of federal benefit | 1.00% | 0.80% | 0.30% |
Change in deferred foreign and state tax rates | 0.20% | (3.00%) | 0.60% |
Customer incentive | 3.30% | (5.10%) | 5.00% |
Nondeductible compensation | (1.10%) | 1.00% | 1.40% |
Other nondeductible expenses | (0.30%) | 0.20% | |
Favorable resolution of income tax examinations | 12.60% | ||
Tax effect of foreign operations | 1.80% | (2.20%) | (7.70%) |
Impact of U.S. Tax Cuts and Jobs Act | (90.70%) | ||
Other | (0.50%) | (0.20%) | (0.40%) |
Effective income tax rate | 38.00% | 12.50% | (56.50%) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Net operating loss carryforwards and credits | $ 556,051 | $ 357,022 |
Accrued compensation | 12,695 | 13,176 |
Aircraft and other leases | 120,122 | 17,688 |
Goodwill and other intangibles | 2,765 | |
Interest rate derivatives | 857 | 1,179 |
Long-term debt | 1,253 | 1,593 |
Obsolescence reserve | 6,152 | 6,771 |
Stock-based compensation | 3,123 | 3,203 |
Other | 3,668 | 528 |
Total deferred tax assets | 703,921 | 403,925 |
Valuation allowance | (24,513) | (29,871) |
Net deferred tax assets | 679,408 | 374,054 |
Deferred tax liabilities: | ||
Fixed assets | (650,595) | (589,649) |
Customer incentive | (12,518) | (15,894) |
Deferred maintenance | (40,227) | (22,747) |
Goodwill and other intangibles | (1,714) | |
Operating lease right-of-use assets | (46,929) | |
Total deferred tax liabilities | (751,983) | (628,290) |
Deferred taxes included within following balance sheet line items: | ||
Deferred taxes | (74,040) | (256,970) |
Deferred costs and other assets | 1,465 | 2,734 |
Net deferred tax assets (liabilities) | $ (72,575) | $ (254,236) |
Income Taxes - Unrecognized Inc
Income Taxes - Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 74,275 | $ 71,717 | $ 113,892 |
Additions for tax positions related to the current year | 1,414 | 2,061 | 1,366 |
Additions for tax positions related to prior years | 657 | 40 | |
Reductions for tax positions related to prior years | (53,306) | (160) | (43,581) |
Ending balance | $ 22,383 | $ 74,275 | $ 71,717 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Long Term Investments Details [Abstract] | |
Long-term investments maturing period | 5 years |
Financial Instruments - Summary
Financial Instruments - Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | ||||
Short-term investments | $ 879 | $ 15,624 | ||
Restricted cash | 10,401 | 11,240 | ||
Liabilities | ||||
Customer warrant | 152,534 | 184,720 | $ 106,538 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Assets | ||||
Cash and cash equivalents | 103,029 | 221,501 | ||
Short-term investments | 879 | 15,624 | ||
Restricted cash | 10,401 | 11,240 | ||
Long-term investments and accrued interest | 635 | |||
Financial instruments assets | 114,309 | 249,000 | ||
Liabilities | ||||
Term loans and notes | 1,800,911 | 2,048,972 | ||
Revolver | 100,000 | |||
Convertible notes | [1] | 439,261 | 420,868 | |
Customer warrant | 24,345 | 99,000 | ||
Financial instruments liabilities | 2,364,517 | 2,568,840 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Assets | ||||
Cash and cash equivalents | 103,029 | 221,501 | ||
Short-term investments | 879 | 15,624 | ||
Restricted cash | 10,401 | 11,240 | ||
Long-term investments and accrued interest | 1,138 | |||
Financial instruments assets | 114,309 | 249,503 | ||
Liabilities | ||||
Term loans and notes | 1,885,750 | 1,976,373 | ||
Revolver | 103,575 | |||
Convertible notes | [1] | 450,668 | 490,070 | |
Customer warrant | 24,345 | 99,000 | ||
Financial instruments liabilities | 2,464,338 | 2,565,443 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 103,029 | 221,501 | ||
Short-term investments | 0 | 0 | ||
Restricted cash | 10,401 | 11,240 | ||
Long-term investments and accrued interest | 0 | |||
Financial instruments assets | 113,430 | 232,741 | ||
Liabilities | ||||
Term loans and notes | 0 | 0 | ||
Revolver | 0 | |||
Convertible notes | [1] | 450,668 | 490,070 | |
Customer warrant | 0 | 0 | ||
Financial instruments liabilities | 450,668 | 490,070 | ||
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 | |||
Financial instruments assets | 0 | 0 | ||
Liabilities | ||||
Term loans and notes | 0 | 0 | ||
Revolver | 0 | |||
Convertible notes | [1] | 0 | 0 | |
Customer warrant | 24,345 | 99,000 | ||
Financial instruments liabilities | 24,345 | 99,000 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 879 | 15,624 | ||
Restricted cash | 0 | 0 | ||
Long-term investments and accrued interest | 1,138 | |||
Financial instruments assets | 879 | 16,762 | ||
Liabilities | ||||
Term loans and notes | 1,885,750 | 1,976,373 | ||
Revolver | 103,575 | |||
Convertible notes | [1] | 0 | 0 | |
Customer warrant | 0 | 0 | ||
Financial instruments liabilities | $ 1,989,325 | $ 1,976,373 | ||
[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). |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Operating Revenue | $ 2,739,189 | $ 2,677,724 | $ 2,156,460 |
DHL [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 359,500 | 348,300 | 262,600 |
AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | $ 675,100 | $ 635,400 | $ 496,300 |
Segment Reporting - Operating R
Segment Reporting - Operating Revenue and Direct Contribution For Our Reportable Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Revenue: | |||||
Customer incentive asset amortization | $ (33,135) | $ (16,176) | $ (5,261) | ||
Other | 17,913 | 19,242 | 18,598 | ||
Total Operating Revenue | 2,739,189 | 2,677,724 | 2,156,460 | ||
Direct Contribution: | |||||
Total Direct Contribution for Reportable Segments | 438,217 | 496,271 | 419,581 | ||
Unallocated expenses and (income), net | (337,434) | (298,526) | (258,925) | ||
Loss on early extinguishment of debt | (804) | 0 | (167) | ||
Unrealized gain (loss) on financial instruments | 75,109 | 123,114 | (12,533) | ||
Special charge | $ (616,200) | $ (22,200) | (638,373) | (9,374) | (106) |
Transaction-related expenses | (4,164) | (2,111) | (4,509) | ||
Loss (gain) on disposal of aircraft | (5,309) | 0 | 31 | ||
Income (loss) from continuing operations before income taxes | (472,758) | 309,374 | 143,372 | ||
Interest income | (4,296) | (6,710) | (6,009) | ||
Interest expense | 120,330 | 119,378 | 99,687 | ||
Capitalized interest | (2,274) | (4,727) | (7,389) | ||
Loss on early extinguishment of debt | 804 | 0 | 167 | ||
Unrealized (gain) loss on financial instruments | (75,109) | (123,114) | 12,533 | ||
Other (income) expense, net | (27,668) | (10,659) | (387) | ||
Operating Income (Loss) | (460,971) | 283,542 | 241,974 | ||
ACMI [Member] | |||||
Operating Revenue: | |||||
Operating Revenue | 1,247,770 | 1,192,704 | 988,741 | ||
Direct Contribution: | |||||
Total Direct Contribution for Reportable Segments | 218,459 | 235,706 | 229,498 | ||
Charter [Member] | |||||
Operating Revenue: | |||||
Operating Revenue | 1,305,860 | 1,313,484 | 1,034,562 | ||
Direct Contribution: | |||||
Total Direct Contribution for Reportable Segments | 149,372 | 211,661 | 150,144 | ||
Dry Leasing [Member] | |||||
Operating Revenue: | |||||
Operating Revenue | 200,781 | 168,470 | 119,820 | ||
Direct Contribution: | |||||
Total Direct Contribution for Reportable Segments | $ 70,386 | $ 48,904 | $ 39,939 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Disaggregated Charter Segment Revenue by Customer and Service Type (Details) - Charter [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | $ 1,305,860 | $ 1,313,484 | $ 1,034,562 |
Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 630,730 | 678,129 | 538,220 |
AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 675,130 | 635,355 | 496,342 |
Cargo [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 892,237 | 972,095 | 725,283 |
Cargo [Member] | Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 579,001 | 644,344 | 519,507 |
Cargo [Member] | AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 313,236 | 327,751 | 205,776 |
Passenger [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 413,623 | 341,389 | 309,279 |
Passenger [Member] | Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 51,729 | 33,785 | 18,713 |
Passenger [Member] | AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | $ 361,894 | $ 307,604 | $ 290,566 |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization by Reportable Business Segments (Details) - Service [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation and amortization expense: | |||
Depreciation and Amortization | $ 251,097 | $ 217,340 | $ 166,713 |
Unallocated Depreciation and Amortization | 17,252 | 11,235 | 11,651 |
ACMI [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | 101,756 | 93,706 | 71,097 |
Charter [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | 50,705 | 38,531 | 36,539 |
Dry Leasing [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | $ 81,384 | $ 73,868 | $ 47,426 |
Labor and Legal Proceedings - A
Labor and Legal Proceedings - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Brazilian Customs Claim [Member] | ||
Loss Contingencies [Line Items] | ||
Brazilian claims in the aggregate | $ 5.1 | |
Amounts on deposit for Brazilian claims included in deferred costs and other assets | $ 4.1 | $ 4.1 |
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 |
Stock-Based and Long-term Inc_3
Stock-Based and Long-term Incentive Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
LTIP compensation expense | $ 24.1 | $ 19.1 | $ 20.9 | |
Tax benefit recognized for stock-based compensation arrangements | $ 1.8 | 4.8 | 5.3 | |
Restricted shares awards and time-based cash awards vesting period | Restricted share awards, which have been granted in units, and time-based cash awards generally vest and are expensed over one-, three- or four- year periods. | |||
Restricted shares unrecognized stock compensation cost | $ 12.9 | |||
Restricted shares remaining weighted average life (in years) | 1 year 6 months | |||
Total fair value, on vesting date, of restricted shares vested | $ 13.1 | 13.4 | 14.8 | |
Performance shares vesting period | Performance share awards, which have been granted in units, and performance cash awards granted are expensed over three years, which generally is the requisite service period. Awards generally become vested if (1) we achieve certain specified performance levels compared with predetermined performance thresholds during a three-year period starting in the grant year and ending on December 31 three years later, and (2) the employee remains employed by us through the determination date which can be no later than four months following the end of the Performance Period. Full or partial vesting may occur for certain employee terminations. | |||
Total performance shares granted | 2,000,000 | |||
Performance shares unrecognized compensation cost | $ 5.5 | |||
Performance shares remaining weighted average life (in years) | 1 year 6 months | |||
Total fair value, on vesting date, of performance shares vested | $ 6.9 | $ 7.7 | $ 10.6 | |
Restricted Share Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | 207,180 | |||
Weighted average grant date fair value | $ 52.61 | $ 50.34 | $ 54.40 | |
Time-based Cash Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Recognized compensation expenses | $ 6.2 | $ 2.1 | ||
Accruals | 4.1 | 2.1 | ||
Performance Cash Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Recognized compensation expenses | 7.6 | 6.8 | $ 7.1 | |
Accruals | $ 15.2 | $ 13.4 | ||
Performance Share Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | 97,072 | |||
Weighted average grant date fair value | $ 54.54 | $ 45.37 | $ 54.20 | |
2007 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares reserved for issuance under the LTIP | 600,000 | |||
Number of shares authorized under the LTIP | 2,800,000 | |||
2018 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized under the LTIP | 0 | |||
Description of revised LTIP | In 2018, the stockholders approved a revised Long-Term Incentive Plan (the “2018 Plan”), which replaced previous plans. | |||
LTIP number of shares available for future award grants | 500,000 | |||
Previous Plans [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares authorized under the LTIP | 0 | |||
2019 Plan [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares reserved for issuance under the LTIP | 1,400,000 | |||
Description of revised LTIP | In 2019, the stockholders approved a revised Long-Term Incentive Plan (the “2019 Plan”), which replaced the 2018 Plan. | |||
Maximum term of award under the 2019 LTIP | ten years | |||
Shares of common stock available for future award grants | 900,000 | |||
2007, 2016, 2018 and 2019 Plans [Member] | Restricted Share Awards [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares, granted | 4,200,000 |
Stock-Based and Long-term Inc_4
Stock-Based and Long-term Incentive Compensation Plans - Summary of Our Restricted Shares (Details) - Restricted Share Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Unvested beginning balance | 604,795 | ||
Number of Shares, Granted | 207,180 | ||
Number of Shares, Vested | (271,605) | ||
Number of Shares, Forfeited | (9,874) | ||
Number of Shares, Unvested ending balance | 530,496 | 604,795 | |
Weighted-Average Grant-Date Fair Value, Unvested beginning balance | $ 50.34 | ||
Weighted-Average Grant-Date Fair Value, Granted | 52.61 | $ 50.34 | $ 54.40 |
Weighted-Average Grant-Date Fair Value, Vested | 48.30 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 47.90 | ||
Weighted-Average Grant-Date Fair Value, Unvested ending balance | $ 52.31 | $ 50.34 |
Stock-Based and Long-term Inc_5
Stock-Based and Long-term Incentive Compensation Plans - Summary of Our Performance Shares (Details) - Performance Share Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Unvested beginning balance | 358,386 | ||
Number of Shares, Granted | 97,072 | ||
Number of Shares, Vested | (194,666) | ||
Number of Shares, Forfeited | (3,633) | ||
Number of Shares, Unvested ending balance | 257,159 | 358,386 | |
Weighted-Average Grant-Date Fair Value, Unvested beginning balance | $ 45.37 | ||
Weighted-Average Grant-Date Fair Value, Granted | 54.54 | $ 45.37 | $ 54.20 |
Weighted-Average Grant-Date Fair Value, Vested | 35.47 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 56.98 | ||
Weighted-Average Grant-Date Fair Value, Unvested ending balance | $ 56.17 | $ 45.37 |
Profit Sharing, Incentive and_2
Profit Sharing, Incentive and Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Profit Sharing And Incentive Plans Details [Abstract] | |||
Accrual for profit sharing and incentive plans liabilities | $ 28.6 | $ 36 | |
Profit sharing and incentive plans expense recognized | $ 28.5 | 35.8 | $ 26.9 |
Retirement Plans Details [Abstract] | |||
Matching contributions vesting period | Employee contributions in the plan are vested at all times and our matching contributions are subject to a three-year cliff vesting provision, except for employees who are represented by a collective bargaining agreement and are subject to a three-year graded vesting provision. | ||
401(k) compensation expense | $ 15.9 | $ 13.9 | $ 10.9 |
Stock Repurchases - Additional
Stock Repurchases - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2013 | Dec. 31, 2008 |
Treasury Stock Details [Abstract] | |||||
Amount authorized for the repurchase of common stock | $ 100 | ||||
Treasury stock repurchase incremental authorization | $ 51 | ||||
Shares of treasury stock acquired under the repurchase program | 3,307,911 | ||||
Cumulative cost of treasury shares repurchased | $ 126 | $ 126 | |||
Treasury stock repurchase remaining authorization | $ 25 | $ 25 | |||
Treasury stock shares acquired from management vests | 185,688 | 180,084 | |||
Average cost per share of treasury stock acquired from management | $ 50.47 | $ 59.80 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Income (loss) from continuing operations, net of taxes | $ (293,113) | $ 270,647 | $ 224,338 | ||||||||
Less: Unrealized gain on financial instruments, net of tax | 0 | (123,114) | 0 | ||||||||
Diluted income (loss) from continuing operations, net of tax | $ (293,113) | $ 147,533 | $ 224,338 | ||||||||
Denominator: | |||||||||||
Basic EPS weighted average shares outstanding | 25,828 | 25,542 | 25,241 | ||||||||
Effect of dilutive warrant | 0 | 2,078 | 0 | ||||||||
Effect of dilutive convertible notes | 0 | 180 | 27 | ||||||||
Effect of dilutive restricted stock | 481 | 586 | |||||||||
Diluted EPS weighted average shares outstanding | 25,828 | 28,281 | 25,854 | ||||||||
Earnings (loss) per share from continuing operations: | |||||||||||
Basic | $ (15.86) | $ 2.32 | $ 3.36 | $ (1.15) | $ 8.25 | $ 2.78 | $ (0.83) | $ 0.38 | $ (11.35) | $ 10.60 | $ 8.89 |
Diluted | (15.86) | 2.32 | 1.61 | (1.15) | 2.73 | 0.84 | (0.83) | 0.37 | (11.35) | 5.22 | 8.68 |
Loss per share from discontinued operations: | |||||||||||
Basic | 0 | 0 | 0 | 0 | 0 | 0 | (0.03) | ||||
Diluted | 0 | 0 | 0 | 0 | 0 | 0 | (0.03) | ||||
Earnings (loss) per share: | |||||||||||
Basic | (15.86) | 2.32 | 3.36 | (1.15) | 8.25 | 2.78 | (0.83) | 0.38 | (11.35) | 10.60 | 8.85 |
Diluted | $ (15.86) | $ 2.32 | $ 1.61 | $ (1.15) | $ 2.73 | $ 0.84 | $ (0.83) | $ 0.37 | $ (11.35) | $ 5.22 | $ 8.64 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 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 | 10.6 | 3.9 | 6.8 |
Warrants [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the calculation of diluted EPS | 15.3 | 7.8 | 7.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 2,067,964 | $ 1,789,856 | $ 1,517,338 |
Reclassification to interest expense | 1,336 | 1,485 | 1,621 |
Tax effect | (322) | (354) | |
Reclassification of taxes | (970) | ||
Ending Balance | 1,792,179 | 2,067,964 | 1,789,856 |
Interest Rate Derivatives [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (3,841) | (4,002) | |
Reclassification to interest expense | 1,336 | 1,485 | |
Tax effect | (322) | (354) | |
Reclassification of taxes | (970) | ||
Ending Balance | (2,827) | (3,841) | (4,002) |
Foreign Currency Translation [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | 9 | 9 | |
Reclassification to interest expense | 0 | 0 | |
Tax effect | 0 | 0 | |
Reclassification of taxes | 0 | ||
Ending Balance | 9 | 9 | 9 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (3,832) | (3,993) | (4,993) |
Ending Balance | $ (2,818) | $ (3,832) | $ (3,993) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Abstract] | ||
Unamortized realized loss in Accumulated other comprehensive income (loss) related to forward-starting interest rate swaps | $ 3.7 | |
Net realized losses reclassified into earnings | 1.3 | $ 1.5 |
Realized losses related to forward-starting interest rate swaps expected to be reclassified into earnings within the next 12 months | $ 1.2 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Unaudited) - Summary of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information Detail [Abstract] | |||||||||||
Total Operating Revenue | $ 747,049 | $ 648,539 | $ 663,918 | $ 679,683 | $ 764,958 | $ 656,607 | $ 666,145 | $ 590,014 | |||
Operating Income (loss) | (515,936) | (879) | 8,970 | 46,874 | 127,557 | 54,470 | 60,946 | 40,569 | |||
Income (Loss) from continuing operations, net of taxes | (410,245) | 59,974 | 86,868 | (29,710) | 211,004 | 71,138 | (21,123) | 9,628 | |||
Loss from discontinued operations, net of taxes | (30) | (7) | (27) | (16) | $ 0 | $ (80) | $ (865) | ||||
Net Income (Loss) | $ (410,245) | $ 59,974 | $ 86,868 | $ (29,710) | $ 210,974 | $ 71,131 | $ (21,150) | $ 9,612 | |||
Earnings (Loss) per share from continuing operations: | |||||||||||
Basic | $ (15.86) | $ 2.32 | $ 3.36 | $ (1.15) | $ 8.25 | $ 2.78 | $ (0.83) | $ 0.38 | $ (11.35) | $ 10.60 | $ 8.89 |
Diluted | (15.86) | 2.32 | 1.61 | (1.15) | 2.73 | 0.84 | (0.83) | 0.37 | (11.35) | 5.22 | 8.68 |
Loss per share from discontinued operations: | |||||||||||
Basic | 0 | 0 | 0 | 0 | 0 | 0 | (0.03) | ||||
Diluted | 0 | 0 | 0 | 0 | 0 | 0 | (0.03) | ||||
Earnings (Loss) per share: | |||||||||||
Basic | (15.86) | 2.32 | 3.36 | (1.15) | 8.25 | 2.78 | (0.83) | 0.38 | (11.35) | 10.60 | 8.85 |
Diluted | $ (15.86) | $ 2.32 | $ 1.61 | $ (1.15) | $ 2.73 | $ 0.84 | $ (0.83) | $ 0.37 | $ (11.35) | $ 5.22 | $ 8.64 |
Selected Quarterly Financial _4
Selected Quarterly Financial Information (Unaudited) - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information Narrative Detail [Abstract] | |||||||||||
Unrealized gain (loss) on financial instruments | $ (3,800) | $ 83,200 | $ 42,300 | $ (46,600) | $ 134,800 | $ 46,100 | $ (50,000) | $ (7,700) | |||
Asset impairment charges | $ 616,200 | $ 22,200 | $ 638,373 | $ 9,374 | $ 106 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Feb. 20, 2020USD ($)TermLoanLeasedAircraft | Dec. 31, 2019USD ($) |
Subsequent Event [Line Items] | ||
Debt instrument face amount | $ 116,000,000 | |
Subsequent Event [Member] | Dry Leases [Member] | ||
Subsequent Event [Line Items] | ||
Number of aircrafts for extended dry leases | LeasedAircraft | 2 | |
Extended dry leases term | 10 years | |
Subsequent Event [Member] | Secured Term Loan [Member] | ||
Subsequent Event [Line Items] | ||
Number of refinanced term loans | TermLoan | 2 | |
Number of term loans | TermLoan | 2 | |
Subsequent Event [Member] | Secured Term Loan [Member] | Term Loan One [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, term | 126 months | |
Debt instrument face amount | $ 82,000,000 | |
Fixed interest rate | 3.27% | |
Debt instrument final payment | $ 12,500,000 | |
Debt instrument maturity date | 2030-07 | |
Subsequent Event [Member] | Secured Term Loan [Member] | Term Loan Two [Member] | ||
Subsequent Event [Line Items] | ||
Debt instrument, term | 130 months | |
Debt instrument face amount | $ 82,000,000 | |
Fixed interest rate | 3.28% | |
Debt instrument final payment | $ 12,500,000 | |
Debt instrument maturity date | 2030-11 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 1,563 | $ 1,494 | $ 997 |
Additions Charged to Costs and Expenses | 41 | 12 | 198 |
Deductions, net of recoveries | 218 | 57 | 299 |
Balance at End of Period | $ 1,822 | $ 1,563 | $ 1,494 |