Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 12, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document period end date | Dec. 31, 2020 | ||
Amendment flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 | ||
Current fiscal year end date | --12-31 | ||
Entity central index key | 0001135185 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 001-16545 | ||
Entity registrant name | Atlas Air Worldwide Holdings, Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Address, Address Line One | 2000 Westchester Avenue | ||
Entity Address, Address Line Two | Purchase | ||
Entity Address, State or Province | NY | ||
Entity Address, City or Town | New York | ||
Entity Address, Postal Zip Code | 10577 | ||
City Area Code | 914 | ||
Local Phone Number | 701-8000 | ||
Entity Tax Identification Number | 13-4146982 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | AAWW | ||
Security Exchange Name | NASDAQ | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity filer category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity common stock shares outstanding | 28,797,747 | ||
Entity Public Float | $ 810.9 | ||
Documents Incorporated by Reference | Certain portions of the registrant’s Proxy Statement relating to the 2021 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, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 845,589 | $ 103,029 |
Restricted cash | 10,692 | 10,401 |
Short-term investments | 0 | 879 |
Accounts receivable, net of allowance of $1,233 and $1,822, respectively | 265,521 | 290,119 |
Prepaid expenses, assets held for sale and other current assets | 95,919 | 228,103 |
Total current assets | 1,217,721 | 632,531 |
Property and Equipment | ||
Flight equipment | 5,061,387 | 4,880,424 |
Ground equipment | 86,670 | 83,584 |
Less: accumulated depreciation | (1,147,613) | (977,883) |
Flight equipment modifications in progress | 110,150 | 67,101 |
Property and equipment, net | 4,110,594 | 4,053,226 |
Other Assets | ||
Operating lease right-of-use assets | 255,805 | 231,133 |
Deferred costs and other assets | 374,242 | 391,895 |
Intangible assets, net and goodwill | 70,826 | 76,856 |
Total Assets | 6,029,188 | 5,385,641 |
Current Liabilities | ||
Accounts payable | 107,604 | 79,683 |
Accrued liabilities | 583,160 | 481,725 |
Current portion of long-term debt and finance leases | 298,690 | 395,781 |
Current portion of long-term operating leases | 157,732 | 141,973 |
Total current liabilities | 1,147,186 | 1,099,162 |
Other Liabilities | ||
Long-term debt and finance leases | 2,020,451 | 1,984,902 |
Long-term operating leases | 318,850 | 392,832 |
Deferred taxes | 203,586 | 74,040 |
Financial instruments and other liabilities | 77,576 | 42,526 |
Total other liabilities | 2,620,463 | 2,494,300 |
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; 32,877,533 and 31,048,842 shares issued, 27,517,297 and 25,870,876 shares outstanding (net of treasury stock), as of December 31, 2020 and December 31, 2019, respectively | 329 | 310 |
Additional paid-in capital | 873,874 | 761,715 |
Treasury stock, at cost; 5,360,236 and 5,177,966 shares, respectively | (217,889) | (213,871) |
Accumulated other comprehensive loss | (1,904) | (2,818) |
Retained earnings | 1,607,129 | 1,246,843 |
Total stockholders’ equity | 2,261,539 | 1,792,179 |
Total Liabilities and Equity | $ 6,029,188 | $ 5,385,641 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 1,233 | $ 1,822 |
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 | 32,877,533 | 31,048,842 |
Common stock shares outstanding | 27,517,297 | 25,870,876 |
Treasury stock shares | 5,360,236 | 5,177,966 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Revenue | $ 3,211,116 | $ 2,739,189 | $ 2,677,724 |
Operating Expenses | |||
Salaries, wages and benefits | 737,963 | 599,811 | 536,120 |
Aircraft fuel | 440,649 | 483,827 | 467,569 |
Navigation fees, landing fees and other rent | 155,107 | 144,809 | 158,911 |
Travel | 154,792 | 189,211 | 166,487 |
Passenger and ground handling services | 138,822 | 130,698 | 118,973 |
Aircraft rent | 96,865 | 155,639 | 162,444 |
Loss (gain) on disposal of aircraft | (7,248) | 5,309 | 0 |
Special charge | 16,265 | 638,373 | 9,374 |
Transaction-related expenses | 2,780 | 4,164 | 2,111 |
Other | 216,384 | 215,521 | 195,553 |
Total Operating Expenses | 2,716,348 | 3,200,160 | 2,394,182 |
Operating Income (Loss) | 494,768 | (460,971) | 283,542 |
Non-operating Expenses (Income) | |||
Interest income | (1,076) | (4,296) | (6,710) |
Interest expense | 114,635 | 120,330 | 119,378 |
Capitalized interest | (925) | (2,274) | (4,727) |
Loss on early extinguishment of debt | 81 | 804 | 0 |
Unrealized loss (gain) on financial instruments | 71,053 | (75,109) | (123,114) |
Other income, net | (185,742) | (27,668) | (10,659) |
Total Non-operating Expenses (Income) | (1,974) | 11,787 | (25,832) |
Income (loss) from continuing operations before income taxes | 496,742 | (472,758) | 309,374 |
Income tax expense (benefit) | 136,456 | (179,645) | 38,727 |
Income (loss) from continuing operations, net of taxes | 360,286 | (293,113) | 270,647 |
Loss from discontinued operations, net of taxes | 0 | 0 | (80) |
Net Income (Loss) | $ 360,286 | $ (293,113) | $ 270,567 |
Earnings (Loss) per share from continuing operations: | |||
Basic | $ 13.64 | $ (11.35) | $ 10.60 |
Diluted | 13.50 | (11.35) | 5.22 |
Loss per share from discontinued operations: | |||
Basic | 0 | 0 | 0 |
Diluted | 0 | 0 | 0 |
Earnings (loss) per share: | |||
Basic | 13.64 | (11.35) | 10.60 |
Diluted | $ 13.50 | $ (11.35) | $ 5.22 |
Weighted average shares: | |||
Basic | 26,408 | 25,828 | 25,542 |
Diluted | 26,690 | 25,828 | 28,281 |
Service [Member] | |||
Operating Expenses | |||
Maintenance, materials and repairs | $ 506,297 | $ 381,701 | $ 359,300 |
Depreciation and amortization | $ 257,672 | $ 251,097 | $ 217,340 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ 360,286 | $ (293,113) | $ 270,567 |
Other comprehensive income: | |||
Reclassification to interest expense | 1,178 | 1,336 | 1,485 |
Income tax benefit | (264) | (322) | (354) |
Other comprehensive income | 914 | 1,014 | 1,131 |
Comprehensive Income (Loss) | $ 361,200 | $ (292,099) | $ 271,698 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities: | |||
Income (loss) from continuing operations, net of taxes | $ 360,286 | $ (293,113) | $ 270,647 |
Less: Loss from discontinued operations, net of taxes | 0 | 0 | (80) |
Net Income (Loss) | 360,286 | (293,113) | 270,567 |
Adjustments to reconcile Net Income (Loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 328,101 | 316,821 | 265,553 |
Accretion of debt securities discount | (2) | (244) | (888) |
Provision for expected credit losses | 463 | 41 | 12 |
Loss on early extinguishment of debt | 81 | 804 | 0 |
Special charge, net of cash payments | 16,265 | 638,373 | 9,374 |
Unrealized loss (gain) on financial instruments | 71,053 | (75,109) | (123,114) |
Loss (gain) on disposal of aircraft | (7,248) | 5,309 | 0 |
Deferred taxes | 133,598 | (180,553) | 42,580 |
Stock-based compensation | 21,997 | 25,189 | 20,305 |
Changes in: | |||
Accounts receivable | 26,132 | (22,524) | (74,038) |
Prepaid expenses, current assets and other assets | (56,716) | (66,843) | (57,081) |
Accounts payable, accrued liabilities and other liabilities | 115,532 | (47,807) | 72,310 |
Net cash provided by operating activities | 1,009,542 | 300,344 | 425,580 |
Investing Activities: | |||
Capital expenditures | (78,933) | (133,554) | (114,415) |
Payments for flight equipment and modifications | (184,273) | (214,236) | (599,401) |
Investment in joint ventures | (9,298) | (2,028) | (1,050) |
Proceeds from insurance | 0 | 38,133 | 0 |
Proceeds from investments | 881 | 15,624 | 13,604 |
Proceeds from disposal of aircraft | 126,335 | 10,300 | 0 |
Net cash used for investing activities | (145,288) | (285,761) | (701,262) |
Financing Activities: | |||
Proceeds from debt issuance | 417,733 | 115,992 | 471,625 |
Payment of debt issuance costs | (6,100) | (2,404) | (9,622) |
Payments of debt and finance lease obligations | (429,749) | (344,674) | (250,015) |
Proceeds from revolving credit facility | 75,000 | 100,000 | 135,000 |
Payment of revolving credit facility | (175,000) | 0 | (135,000) |
Customer maintenance reserves and deposits received | 15,168 | 14,736 | 15,590 |
Customer maintenance reserves paid | (14,437) | (8,174) | (250) |
Treasury shares withheld for payment of taxes | (4,018) | (9,370) | (10,769) |
Net cash provided by (used for) financing activities | (121,403) | (133,894) | 216,559 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 742,851 | (119,311) | (59,123) |
Cash, cash equivalents and restricted cash at the beginning of period | 113,430 | 232,741 | 291,864 |
Cash, cash equivalents and restricted cash at the end of period | 856,281 | 113,430 | 232,741 |
Noncash Investing and Financing Activities: | |||
Acquisition of property and equipment included in Accounts payable and accrued liabilities | 36,619 | 37,390 | 23,498 |
Acquisition of property and equipment acquired under operating leases | 91,538 | 28,827 | 0 |
Acquisition of flight equipment under finance lease | 18,476 | 10,825 | 0 |
Customer maintenance reserves settled with sale of aircraft | 6,497 | 0 | 0 |
Issuance of shares related to settlement of warrant liability | $ 49,545 | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment [Member] | Common Stock [Member] | Common Stock [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Treasury Stock [Member] | Treasury Stock [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Additional Paid-In Capital [Member] | Additional Paid-In Capital [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] | Retained Earnings [Member] | Retained Earnings [Member]Cumulative Effect, Period of Adoption, Adjustment [Member] |
Beginning Balance at Dec. 31, 2017 | $ 1,789,856 | $ (3,126) | $ 301 | $ 0 | $ (193,732) | $ 0 | $ 715,735 | $ 0 | $ (3,993) | $ 0 | $ 1,271,545 | $ (3,126) |
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201409Member | |||||||||||
Net Income (Loss) | $ 270,567 | 0 | 0 | 0 | 0 | 270,567 | ||||||
Other comprehensive income | 1,131 | 0 | 0 | 0 | 1,131 | 0 | ||||||
Stock-based compensation | 20,305 | 0 | 0 | 20,305 | 0 | 0 | ||||||
Treasury shares withheld for payment of taxes | (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 | ||||||
Accounting Standards Update Extensible List | us-gaap:AccountingStandardsUpdate201602Member | |||||||||||
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 | ||||||
Issuance of warrants | 495 | 0 | 0 | 495 | 0 | 0 | ||||||
Treasury shares withheld for payment of taxes | (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 | ||||||
Net Income (Loss) | 360,286 | 0 | 0 | 0 | 0 | 360,286 | ||||||
Other comprehensive income | 914 | 0 | 0 | 0 | 914 | 0 | ||||||
Stock-based compensation | 21,997 | 0 | 0 | 21,997 | 0 | 0 | ||||||
Issuance of warrants | 40,636 | 0 | 0 | 40,636 | 0 | 0 | ||||||
Treasury shares withheld for payment of taxes | (4,018) | 0 | (4,018) | 0 | 0 | 0 | ||||||
Issuance of shares related to settlement of warrant | 49,545 | 14 | 0 | 49,531 | 0 | 0 | ||||||
Issuance of shares of restricted stock | 0 | 5 | 0 | (5) | 0 | 0 | ||||||
Ending Balance at Dec. 31, 2020 | $ 2,261,539 | $ 329 | $ (217,889) | $ 873,874 | $ (1,904) | $ 1,607,129 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Stockholders Equity [Abstract] | |||
Treasury shares withheld for payment of taxes | 182,270 | 185,688 | 180,084 |
Issuance of shares of restricted stock | 453,270 | 466,271 | 477,923 |
Issuance of shares related to settlement of warrant | 1,375,421 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 | |
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, long-term incentive compensation and self-insured 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, e-commerce retailers, manufacturers, sports teams and fans, and private charter customers. Our obligations are for one or more flights based on a specific origin and destination. We also provide limited airport-to-airport cargo services to select markets, including several cities in 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. Restricted Cash Cash that is restricted under secured aircraft debt agreements, whereby it can only be used to make principal and interest payments on the related debt secured by those aircraft, is classified as Restricted cash. Accounts Receivable We perform a monthly evaluation of our accounts receivable and establish an allowance for expected credit losses based on our best estimate, using a broad range of information including historical information, current conditions and forecasts. Account balances are written off against the allowance when we determine that the receivable will not be recovered (see Note 5). 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 $52.5 million as of December 31, 2020 and $48.3 million at December 31, 2019, net of allowances for obsolescence of $34.9 million at December 31, 2020 and $30.4 million at December 31, 2019. 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 $205.1 million in 2020, $220.2 million in 2019 and $196.6 million in 2018. The net book value of flight equipment on dry lease to customers was $1,395.8 million as of December 31, 2020 and $1,465.1 million as of December 31, 2019. The accumulated depreciation for flight equipment on dry lease to customers was $334.0 million as of December 31, 2020 and $260.4 million as of December 31, 2019. 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 $278.0 million as of December 31, 2020 and $244.8 million as of December 31, 2019. 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 6 for further discussion. Committed expenditures to acquire aircraft and spare engines are expected to be $264.7 million in 2021 and $458.3 million in 2022. These expenditures include our January 2021 agreement to purchase four 747-8F aircraft from Boeing that are expected to be delivered from May 2022 through October 2022, spare engines, and 747-400 passenger aircraft (to be used for both replacement of older passenger aircraft in service as well as spare engines and parts). 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, 2020 and 2019 (see Note 7). During the fourth quarter of 2020, we performed a qualitative analysis and determined that goodwill was not impaired. Impairment of Long-Lived Assets We record impairment charges for long-lived assets when events and circumstances indicate that the assets may be impaired, the undiscounted cash flows estimated to be generated by those assets are less than the associated carrying amount and the net book value of the assets exceeds the associated estimated fair value. For flight equipment, operating lease right-of-use assets and finite-lived intangibles used in our 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, 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, of which $4.7 million has been contributed as of December 31, 2020. Our maximum exposure to losses from the entity is limited to our investment. The joint venture has third-party debt obligations of $50.4 million that are not guaranteed by us. In November 2020, we completed a sale-leaseback transaction under an eight-year The following table summarizes our transactions with our dry leasing joint venture: For the Years Ended December 31, Revenue and Expenses: 2020 2019 Revenue from dry leasing joint venture $ 1,256 $ - Aircraft rent to dry leasing joint venture 1,275 - Aggregate Carrying Value of Joint Venture as of: December 31, 2020 December 31, 2019 Aggregate Carrying Value of Dry Leasing Joint Venture $ 4,438 $ 1,500 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 in the joint venture is accounted for under the equity method of accounting and was $21.0 million as of December 31, 2020 and $20.0 million as of December 31, 2019. 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, 2020 and $0.5 million as of December 31, 2019. 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. 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 10 for further discussion. Income Taxes Deferred income taxes are recognized for the tax consequences of reporting items in our income tax returns at different times than the items are reflected in our financial statements. These temporary differences result in deferred tax assets and liabilities that are calculated by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. If necessary, deferred income tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount, if any, of the valuation allowance. We have recorded reserves for income taxes that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, we have nevertheless established tax reserves in recognition that various taxing authorities may challenge certain of the positions taken by us, potentially resulting in additional liabilities for taxes. Heavy Maintenance Except as described in the paragraph below, we account for heavy maintenance costs for airframes and engines using the direct expense method. Under this method, heavy maintenance costs are charged to 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: 2020 2019 Beginning balance, net $ 184,279 $ 103,647 Deferred maintenance costs 50,322 113,076 Disposals - (10,450 ) Amortization of deferred maintenance (43,298 ) (21,994 ) Ending balance, net $ 191,303 $ 184,279 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). Long-term Incentive Compensation We have various long-term incentive compensation plans, including stock-based plans for certain employees and outside directors, which are described more fully in Note 15. 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. Recent Accounting Pronouncements Adopted in 2020 In November 2019, the Financial Accounting Standards Board (“FASB”) amended its accounting guidance for share-based payment awards issued to a customer. The amended 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 was effective for fiscal years beginning after December 15, 2019. Effective January 1, 2020 , we adopted the amended guidance and applied the modified retrospective approach to the most current period presented. As a result, $ 14.6 million, or approximately 60 % of our customer warrant liability of $ 24.3 million related to revenue contracts, which was included in Financial instruments and other liabilities as of December 31, 2019, was reclassified as Additional paid-in capital within Total stockholders’ equity on January 1, 2020. As a result, these customer warrants are no longer marked-to-market at the end of each reporting period with changes in fair value recorded as an unrealized loss (gain) on financial instruments. The amended guidance did not impact the accounting for the remaining portion of our customer warrant liability related to Dry Lease contracts, which was approximately $ 9.7 million or approximately 40 % of the total customer warrant liability , as of December 31, 2019. The new guidance did not impact how we account for the amortization of the customer incentive asset (see Note 8 for further discussion). In June 2016, the FASB amended its accounting guidance for the measurement of credit losses on financial instruments. The guidance requires entities to utilize an expected credit loss model for certain financial instruments, including most trade receivables, which replaces the incurred credit loss model previously used. Under this new model, we are required to recognize estimated credit losses expected to occur over time using a broad range of information including historical information, current conditions and reasonable and supportable forecasts. Receivables related to lease contracts are not within the scope of this amended guidance. Effective January 1, 2020, we adopted the amended guidance under the modified retrospective approach and it did not have a material impact on our consolidated financial statements and related disclosures (see Note 5). Recent Accounting Pronouncements Adopted in 2019 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. 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 10). Recent Accounting Pronouncements Not Yet Adopted In August 2020, the FASB amended its accounting guidance for certain financial instruments with characteristics of liabilities and equity, including convertible debt instruments. For convertible debt with a cash conversion feature, the amended guidance removes the current accounting model to separately account for the liability and equity components, which currently results in the amortization of a debt discount to interest expense. Under this amended guidance, such convertible debt will be accounted for as a single debt instrument with no amortization of a debt discount, unless certain other conditions are met. The amended guidance also requires the use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. The amended guidance is effective as of the beginning of 2022, with early adoption permitted no earlier than the beginning of 2021. The two permitted transition methods under the guidance are the full retrospective approach, under which the guidance is applied to all periods presented, or the modified retrospective approach, under which the guidance is applied only to the most current period presented. While we are still assessing the impact the amended guidance will have on our consolidated financial statements, we plan to adopt this amended guidance at the beginning of 2022 and expect it will result in a material reclassification from equity to debt and a reduction in interest expense. In addition, the amended guidance is expected to result in a material reduction of diluted earnings per share due to the use of the if-converted method rather than the treasury method currently used to calculate the dilutive impact of convertible debt. |
COVID-19 Pandemic
COVID-19 Pandemic | 12 Months Ended |
Dec. 31, 2020 | |
Extraordinary And Unusual Items [Abstract] | |
COVID-19 Pandemic | 3. COVID-19 Pandemic COVID-19 In December 2019, COVID-19 was first reported in China and has since spread to most other regions of the world. In March 2020, COVID-19 was determined to be a global pandemic by the World Health Organization. During 2020, this public health crisis disrupted global manufacturing, supply chains, passenger travel and consumer spending, resulting in flight cancellations by certain of our ACMI customers and lower AMC passenger flying as the military took precautionary measures to limit the movement of personnel. A reduction of available cargo capacity provided by passenger airlines and increased demand for transporting goods due to the COVID-19 pandemic also resulted in increased commercial charter cargo yields, net of fuel, during 2020. We have incurred and expect to incur significant additional costs, including premium pay To mitigate the impact of any COVID-19 pandemic disruptions, we have: • significantly reduced nonessential employee travel; • reduced the use of contractors; • limited ground staff hiring; • secured vendor pricing discounts for engine overhauls and other maintenance; • implemented a number of other cost reduction initiatives; • taken other actions, such as the sale of certain nonessential assets; • entered into a Payroll Support Program Agreement (the “PSP Agreement”) with the U.S. Department of the Treasury (the “U.S. Treasury”), with respect to payroll support funding (the “Payroll Support Program”) available to cargo air carriers under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) (see discussion below); and • deferred payment of the employer portion of social security taxes as provided for under the CARES Act through the end of 2020. Payroll Support Program under the CARES Act As of May 29, 2020 (the “PSP Closing Date”), Atlas and Southern Air (the “PSP Recipients”) entered into a PSP Agreement with the U.S. Treasury. As of the PSP Closing Date, AAWW also entered into a Warrant Agreement (the “Warrant Agreement”) with the U.S. Treasury, and AAWW issued a senior unsecured promissory note to the U.S. Treasury (the “Promissory Note”), with Atlas and Southern Air as guarantors. In connection with the Payroll Support Program, we are required to comply with the relevant provisions of the CARES Act, including the requirement that funds provided pursuant to the PSP Agreement be used exclusively for the payment of certain employee wages, salaries and benefits of the PSP Recipients. The Payroll Support Program subjects the PSP Recipients and certain of their affiliates to a number of restrictions, including prohibitions against repurchasing shares in the open market of, or making dividend payments with respect to, our common stock through September 30, 2021, as well as certain limitations on executive compensation until March 24, 2022. Under the PSP Agreement, we must also maintain certain internal controls and records relating to the payroll support funding and we are subject to additional reporting obligations. Pursuant to the PSP Agreement, the U.S. Treasury provided us with payroll support funding in three installments totaling $406.8 million. The first installment of $203.4 million was received on June 1, 2020, the second installment of $101.7 million was received on June 29, 2020 and the third installment of $101.7 million was received on July 30, 2020. As compensation for payroll support funding under the PSP Agreement, we issued the Promissory Note to the U.S. Treasury, which provides for our unconditional promise to pay to the U.S. Treasury $199.8 million. The Promissory Note bears interest on the outstanding principal amount at a rate of 1.00% per annum until the fifth anniversary of the PSP Closing Date and the applicable Secured Overnight Financing Rate (“SOFR”) plus 2.00% per annum thereafter, and interest accrued thereon is payable in arrears on the last business day of March and September of each year. The aggregate principal amount outstanding under the Promissory Note, together with all accrued and unpaid interest thereon and all other amounts payable under the Promissory Note, will be due and payable in May 2030. The Promissory Note contains customary representations and warranties, covenants and events of default provisions. Interest expense is recognized using the effective interest method over the term of the Promissory Note. We may, at any time and from time to time, voluntarily prepay amounts outstanding under the Promissory Note, in whole or in part, without penalty or premium. If certain change of control triggering events occur, we would be required to prepay the aggregate outstanding principal amount of the Promissory Note within 30 days, together with any accrued interest or other amounts owing under the Promissory Note. As compensation for payroll support funding under the PSP Agreement, we also entered into a Warrant Agreement pursuant to which we granted the U.S. Treasury warrants to acquire shares of our common stock. In connection with the three payroll support funding installments from the U.S. Treasury, we issued warrants to acquire up to 625,452 shares of our common stock. The Warrant Agreement provides the U.S. Treasury certain registration rights with respect to each warrant and the underlying common stock. Each warrant is exercisable at an exercise price of $31.95 per share of common stock (which was the closing price of our common stock on the Nasdaq Global Select Market on May 1, 2020) and will expire on the fifth anniversary of the issue date of such warrant. Each warrant may be settled through net share settlement or net cash settlement, at our option. Each warrant includes customary antidilution provisions and is freely transferable with registration rights. The U.S. Treasury is not permitted to vote any shares it acquires upon exercise of each warrant. The grant date fair value, as determined using the Black-Scholes model, of each warrant was recognized as Additional paid-in capital and totaled $14.4 million. Each warrant will not be remeasured as long as it continues to meet the conditions for equity classification. As of December 31, 2020, no portion of the warrants have been exercised. We recognized deferred grant income within Accrued liabilities for the difference between the PSP proceeds received and the amounts recognized for the Promissory Note and the Warrant Agreement for each installment. Grant income is subsequently recognized within Other income, net in the consolidated statement of operations on a pro-rata basis over the periods that the qualifying employee wages, salaries and benefits are paid. For 2020, we recognized grant income of $151.6 million. We expect to recognize the remainder of the grant income through the first quarter of 2021. |
DHL Investment and Polar
DHL Investment and Polar | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
DHL Investment And Polar | 4. 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 routes, Polar also flies between the Asia Pacific region, the Middle East and Europe on behalf of DHL and other customers. The BSA established DHL’s capacity purchase commitments on Polar flights. 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 27, 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, 2020: Aircraft Service Total 747-8F ACMI 6 747-400F ACMI 3 777-200LRF CMI 6 777-200LRF CMI and Dry Leasing 2 777-200LRF Dry Leasing 2 767-300 CMI and Dry Leasing 2 767-300 CMI 2 767-200 CMI 7 Total 30 The following table summarizes our transactions with Polar: For the Years Ended December 31, Revenue and Expenses: 2020 2019 2018 Revenue from Polar $ 323,907 $ 374,236 $ 412,793 Ground handling and airport fees to Polar 3,302 2,202 2,301 Accounts receivable/payable as of: December 31, 2020 December 31, 2019 Receivables from Polar $ 31,079 $ 10,855 Payables to Polar 3,477 2,161 Aggregate Carrying Value of Polar Investment as of: December 31, 2020 December 31, 2019 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 In addition to the amounts in the table above, Atlas recognized revenue of $226.8 million in 2020, $101.3 million in 2019, and $106.9 million in 2018 from flying on behalf of Polar. |
Supplemental Balance Sheet and
Supplemental Balance Sheet and Cash Flow Information | 12 Months Ended |
Dec. 31, 2020 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |
Supplemental Balance Sheet and Cash Flow Information | 5. Supplemental Balance Sheet and Cash Flow Information Accounts Receivable Accounts receivable, net of allowances related to customer contracts, excluding Dry Leasing contracts, was $195.6 million as of December 31, 2020 and $247.5 million as of December 31, 2019. Allowance for expected credit losses, included within Accounts receivable, is as follows: 2020 2019 2018 Beginning balance $ 1,822 $ 1,563 $ 1,494 Bad debt expense 463 41 12 Amounts written off, net of recoveries (1,052 ) 218 57 Ending balance $ 1,233 $ 1,822 $ 1,563 Accrued Liabilities Accrued liabilities consisted of the following as of December 31: 2020 2019 Maintenance $ 142,374 $ 136,315 Salaries, wages and benefits 136,753 75,719 Customer maintenance reserves 93,092 110,355 Deferred revenue 41,665 26,357 Deferred grant income 40,944 - Aircraft fuel 24,578 28,821 Other 103,754 104,158 Accrued liabilities $ 583,160 $ 481,725 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, 2020 were as follows: Deferred Revenue Balance as of December 31, 2019 $ 19,234 Revenue recognized (228,365 ) Amounts collected or invoiced 239,422 Balance as of December 31, 2020 $ 30,291 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: 2020 2019 2018 Interest paid $ 76,310 $ 88,788 $ 86,168 Income taxes paid, net of refunds $ 1,170 $ (1,715 ) $ 695 The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: December 31, 2020 December 31, 2019 Cash and cash equivalents $ 845,589 $ 103,029 Restricted cash 10,692 10,401 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 856,281 $ 113,430 |
Special Charge and Other Income
Special Charge and Other Income | 12 Months Ended |
Dec. 31, 2020 | |
Aircraft And Aircraft Engines Held For Sale [Abstract] | |
Special Charge and Other Income | 6. Special Charge and Other Income 2020 Special Charge As described further in the 2019 Special Charge below, we had two 737-400 passenger aircraft that were previously used for training purposes, certain spare CF6-80 engines and three aircraft in our Dry Leasing portfolio classified as held for sale as of December 31, 2019. During 2020, we received net proceeds of $126.3 million from the completion of the sales of some of the spare CF6-80 engines and three aircraft in our Dry Leasing portfolio, and recognized a net gain of $7.2 million. During 2020, we recognized an impairment loss of $16.3 million related to fair value adjustments for assets held for sale, within Special charge in the consolidated statements of operations. We estimated the fair value of these assets, less costs to sell, based on bids received from independent third parties or recently completed sales. The carrying value of the assets held for sale as of December 31, 2020 was $14.1 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, 2020 (see Note 12). Sales of the remaining aircraft and engines held for sale are expected to be completed during 2021. 2019 Special Charge 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 of 2019, 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 in 2019 of all other asset groups, which included 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 12). 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 that were 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 $ 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. The following table summarizes the Special charge 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 2018 Special Charge During 2018, we recognized $9.4 million of impairment within Special charge in the consolidated statements of operations 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. Other Income During 2020, 2019 and 2018, we recognized refunds of $39.5 million, $27.6 million and $12.4 million, respectively, related to aircraft rent paid in previous years within Other income, net in the consolidated statements of operations. |
Intangible Assets, Net and Good
Intangible Assets, Net and Goodwill | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net and Goodwill | 7. Intangible Assets, Net and Goodwill The following table presents our Intangible assets, net and goodwill as of December 31: 2020 2019 Lease intangible $ 54,891 $ 54,891 Goodwill 40,361 40,361 Customer relationship 26,280 26,280 Less: accumulated amortization (50,706 ) (44,676 ) $ 70,826 $ 76,856 Lease intangibles resulted from the acquisition of various aircraft with in-place Dry Leases to customers on a long-term basis and are Amortization expense related to intangible assets was $6.0 million in 2020, $6.2 million in 2019 and $8.8 million in 2018. The estimated future amortization expense of intangible assets as of December 31, 2020 is as follows: 2021 $ 6,030 2022 6,030 2023 4,853 2024 1,643 2025 1,643 Thereafter 10,266 Total $ 30,465 |
Amazon
Amazon | 12 Months Ended |
Dec. 31, 2020 | |
Warrants And Rights Note Disclosure [Abstract] | |
Amazon | 8. 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 up to 20 Boeing 767-300 freighter aircraft for Amazon by Atlas, as well as Dry Leasing by Titan. The Dry Leases have a term of ten years from the commencement of each agreement, while the CMI operations are for seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years). Between August 2016 and November 2018, we placed all 20 767-300 freighter aircraft into service for Amazon. In February 2019, the number of 767-300 freighters in CMI and Dry Lease service for Amazon was reduced to 19 with the loss of an aircraft. In September 2019, the number of 767-300 freighters in CMI service for Amazon was reduced to 17 with the early termination of CMI services for two aircraft, which remain under dry lease. In conjunction with the agreements entered into in May 2016, we granted Amazon a warrant providing the right to acquire up to 20% of our outstanding common shares, as of the date of the agreements, after giving effect to the issuance of shares pursuant to the warrants, at an exercise price of $37.34 per share, as adjusted (“Warrant A”). As of December 31, 2018, this warrant to purchase 7.5 million shares, as adjusted, had vested in full. Warrant A is exercisable in accordance with its terms through May 2021. In October 2020, Amazon exercised 3,607,477 shares of Warrant A through a cashless exercise resulting in the issuance of 1,375,421 shares of our common stock. In January 2021, Amazon exercised the remaining 3,924,569 shares of Warrant A through a cashless exercise resulting in the issuance of 1,210,741 shares of our common stock. The agreements entered into in May 2016 also provided incentives for future growth of the relationship as Amazon may increase its business with us. In that regard, we granted Amazon a warrant to acquire up to an additional 10% of our outstanding common shares, as of the date of the agreements, after giving effect to the issuance of shares pursuant to the warrants, for an exercise price of $37.34 per share, as adjusted (“Warrant B”). This warrant to purchase 3.77 million shares, as adjusted, will vest in increments of 37,660 shares, as adjusted, each time Amazon has paid $4.2 million of revenue to us, up to a total of $420.0 million, for incremental business beyond the original 20 767-300 freighters. As of December 31, 2020, 451,920 shares, as adjusted, of Warrant B have vested. Upon vesting, Warrant B becomes exercisable in accordance with its terms through May 2023. As of December 31, 2020, no portion of Warrant B has been exercised. In January 2021, Amazon exercised 225,960 shares of Warrant B through a cashless exercise resulting in the issuance of 69,709 shares of our common stock. In March 2019, we amended the agreements entered into in 2016 with Amazon, pursuant to which we began providing CMI services using Boeing 737-800 freighter aircraft provided by Amazon. The 737-800 CMI operations are for a term of seven years from the commencement of each agreement (with an option for Amazon to extend the term to ten years). As of December 31, 2020, eight 737-800 freighter aircraft were operating in CMI service. Amazon may, in its sole discretion, place up to 12 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, as of the date of the agreements, after giving effect to the issuance of shares pursuant to the warrants, for an exercise price of $52.67 per share, as adjusted (“Warrant C”). When combined with Warrant A and Warrant B, this provided Amazon with warrants to acquire up to a total of 39.9% of our outstanding common shares, as of the date of the agreements. While Amazon would be entitled to vote the shares it owns up to 14.9% of our outstanding common shares, in its discretion, it would be required to vote any shares it owns in excess of 14.9% of our outstanding common shares in accordance with the recommendation of our board of directors. After Warrant B has vested in full, this warrant to purchase 6.66 million shares, as adjusted, would vest in increments of 45,623 shares, as adjusted, each time Amazon has paid $ 6.9 million of revenue to us, up to a total of $ 1.0 billion, for incremental business beyond Warrant A and Warrant B. As of December 31, 2020 , no portion of Warrant C has vested. Upon vesting, Warrant C would become exercisable in accordance with its terms through March 2026 . In May 2020, the warrants issued to the U.S. Treasury (see Note 3 for further discussion) triggered an antidilution adjustment to certain terms of the Amazon warrants as reflected above. Upon the vesting of Warrant A in previous years, the fair value of the warrant was recognized as a customer incentive asset within Deferred costs and other assets, net and is amortized as a reduction of Operating Revenue in proportion to the amount of revenue recognized over the terms of the Dry Leases and CMI agreements. Determining the amount of amortization related to the CMI agreements requires judgment to estimate the total number of Block Hours expected over the terms of those agreements. The fair value of Warrant A was also initially recorded as a warrant liability within Financial instruments and other liabilities (the “Amazon Warrant”). The Amazon Warrant liability is marked-to-market at the end of each reporting period with changes in fair value recorded in Unrealized loss (gain) on financial instruments. See Note 12 for determination of fair value. As described in Note 2, we adopted the new accounting guidance for share-based payment awards issued to a customer as of January 1, 2020. Under the amended guidance, approximately 60% of the Amazon Warrant liability related to the CMI agreements as of January 1, 2020 was reclassified to Additional paid-in capital and will no longer be marked-to-market at the end of each reporting period. The amended guidance does not impact the accounting for the remaining portion of the Amazon Warrant liability related to Dry Lease contracts. We recognized a net unrealized loss of $71.1 million in 2020 and net unrealized gains of $75.1 million in 2019 and $123.1 million in 2018 on the Amazon Warrant. The fair value of the Amazon Warrant liability was $31.5 million as of December 31, 2020 and $24.3 million as of December 31, 2019. In January 2021, the Amazon Warrant liability was fully settled due to the cashless exercise of the remaining shares of Warrant A described above. When it becomes probable that an increment of either Warrant B or C will vest and the related revenue begins to be recognized, the grant date fair value of such portion is recognized as a customer incentive asset within Deferred costs and other assets, net and is amortized as a reduction of Operating Revenue in proportion to the amount of related revenue recognized. The grant date fair value of such increment is also recorded as Additional paid-in capital. At the time of vesting, any amounts recorded in Additional paid-in capital related to Dry Lease contracts would be reclassified to the Amazon Warrant liability. We amortized $39.1 million, $33.1 million and $16.2 million of the customer incentive asset as a reduction of Operating Revenue for 2020, 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: 2020 2019 Beginning balance $ 152,534 $ 184,720 Initial value for vested portion of warrant 11,832 949 Amortization of customer incentive asset (39,090 ) (33,135 ) Ending balance $ 125,276 $ 152,534 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | 9. Debt Our debt obligations, as of December 31: 2020 2019 Range of Maturity Dates Interest Rates (1) Balance Interest Rates (1) Balance Ex-Im Guaranteed Notes 2024 to 2025 1.90% $ 307,223 1.90% $ 396,632 Term loans 2021 to 2030 3.94% 1,229,739 4.13% 1,319,754 Private Placement Facility 2025 to 2026 3.33% 98,070 3.26% 113,997 Convertible Notes 2022 to 2024 2.04% 513,500 2.04% 513,500 Revolving Credit Facility 2022 - - 3.54% 100,000 Promissory Note 2030 1.00% 199,832 - - Total principal amount of debt 2,348,364 2,443,883 Less: unamortized debt discount and issuance costs (79,905 ) (103,711 ) Total debt 2,268,459 2,340,172 Less current portion of debt (276,990 ) (384,895 ) Long-term debt $ 1,991,469 $ 1,955,277 (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. 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 2020 (in millions): Issue Face Collateral Original Fixed Interest Date Value Type Term Rate First 2020 Term Loan February 2020 $ 82.0 777-200 126 months 3.27 % Second 2020 Term Loan February 2020 82.0 777-200 130 months 3.28 % Third 2020 Term Loan April 2020 14.6 None 60 months 1.15 % Fourth 2020 Term Loan August 2020 22.9 None 60 months 0.95 % Fifth 2020 Term Loan October 2020 16.3 None 60 months 0.90 % Total $ 217.8 Promissory Note See Note 3 for a discussion of the Promissory Note we issued to the U.S. Treasury during 2020. Private Placement Facility In September 2017, we entered into a debt facility for a total of $145.8 million through private placement to finance the purchase and passenger-to-freighter conversion of six 767-300 freighter aircraft dry leased to a customer (the “Private Placement Facility”). The Private Placement Facility consists of six separate loans (the “Private Placement Loans”). Each Private Placement Loan is comprised of an equipment note and an equipment term loan, both secured by the cash flows from a 767-300 freighter aircraft dry lease and the underlying aircraft. The equipment notes require payment of principal and interest at a fixed interest rate. The equipment term loans accrue interest, at a fixed rate, which is added to the principal balance outstanding until each equipment note is paid in full. Subsequently, the equipment term loans require payment of principal and interest over the remaining term of the loans. The Private Placement Loans are cross-collateralized, but not cross-defaulted, with each other and, except for certain specified events, are not cross-defaulted with other debt facilities of the Company. In connection with entry into the Private Placement Facility, we paid 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: 2015 Convertible Note 2017 Convertible Note Fixed interest rate 2.25 % 1.88 % Earliest conversion date September 1, 2021 September 1, 2023 Initial conversion price per share $ 74.05 $ 61.08 Conversion rate (shares for each $1,000 of principal) 13.5036 16.3713 During 2017, we used the majority of the net proceeds from the 2017 Convertible Notes to repay $150.0 million then outstanding under our revolving credit facility and to fund the cost of the convertible note hedges described below. 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: 2015 Convertible Note 2017 Convertible Note Convertible Note Hedges: Number of shares (1) 3,031,558 4,731,306 Initial price per share $ 74.05 $ 61.08 Cost of hedge $ 52,903 $ 70,140 Convertible Note Warrants: Number of shares (1) 3,031,558 4,731,306 Initial price per share $ 95.01 $ 92.20 Proceeds from sale of warrants $ 36,290 $ 38,148 (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: 2020 2019 2015 Convertible Notes 2017 Convertible Notes 2015 Convertible Notes 2017 Convertible Notes Remaining life in months 17 41 29 53 Liability component: Gross proceeds $ 224,500 $ 289,000 $ 224,500 $ 289,000 Less: debt discount, net of amortization (12,716 ) (37,886 ) (21,019 ) (47,556 ) Less: debt issuance cost, net of amortization (1,172 ) (2,923 ) (1,959 ) (3,705 ) Net carrying amount $ 210,612 $ 248,191 $ 201,522 $ 237,739 Equity component (1) $ 52,903 $ 70,140 $ 52,903 $ 70,140 (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 Convertible Notes: 2020 2019 2018 Contractual interest coupon $ 10,470 $ 10,470 $ 10,470 Amortization of debt discount 17,971 16,880 15,855 Amortization of debt issuance costs 1,569 1,509 1,487 Total interest expense recognized $ 30,010 $ 28,859 $ 27,812 Revolving Credit Facility In December 2018, we amended and extended our previous three-year four-year Future Cash Payments for Debt The following table summarizes the cash required to be paid by year and the carrying value 2021 $ 288,639 2022 514,737 2023 470,247 2024 505,408 2025 102,834 Thereafter 466,499 Total debt cash payments 2,348,364 Less: unamortized debt discount and issuance costs (79,905 ) Debt $ 2,268,459 |
Leases and Guarantees
Leases and Guarantees | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases and Guarantees | 10. Leases and Guarantees Lessee The following table summarizes rental expenses in: 2020 2019 2018 Aircraft and engines $ 96,865 $ 155,639 $ 162,444 Purchased capacity, office, vehicles and other $ 18,708 $ 34,572 $ 63,650 As of December 31, 2020, we lease 20 February 2021 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 6 for further discussion. The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheets Classification on the Consolidated Balance Sheets 2020 2019 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 255,805 $ 231,133 Finance lease assets Property and equipment, net 46,024 38,373 Less: Accumulated amortization on finance lease assets Property and equipment, net (7,607 ) (6,038 ) Total lease assets $ 294,222 $ 263,468 Liabilities Current Operating lease liabilities Current portion of long-term operating leases $ 157,732 $ 141,973 Finance lease liabilities Current portion of long-term debt and finance leases 21,700 10,886 Noncurrent Operating lease liabilities Long-term operating leases 318,850 392,832 Finance lease liabilities Long-term debt and finance leases 28,982 29,625 Total lease liabilities $ 527,264 $ 575,316 Weighted Average Remaining Lease Term in years Operating Leases 4.34 3.94 Finance Leases 6.88 9.51 Weighted Average Discount Rate Operating Leases 4.22 % 4.52 % Finance Leases 13.84 % 15.77 % The following table presents information related to lease costs for finance and operating leases: 2020 2019 Fixed operating lease costs (1) $ 86,013 $ 148,812 Variable operating lease costs (1) 28,492 22,089 Finance lease costs: Amortization of leased assets (2) 3,224 2,508 Interest on lease liabilities (3) 5,640 5,492 Total lease cost $ 123,369 $ 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: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 161,645 $ 168,338 Operating cash flows for finance leases 5,619 5,492 Financing cash flows for finance leases 6,502 1,184 As of December 31, 2020, maturities of lease liabilities for the periods indicated were as follows: Operating Finance Leases Leases Total 2021 $ 174,146 $ 26,922 $ 201,068 2022 130,865 6,166 137,031 2023 78,308 6,087 84,395 2024 65,296 6,008 71,304 2025 20,280 6,007 26,287 Thereafter 49,812 38,500 88,312 Total minimum rental payments 518,707 89,690 608,397 Less: imputed interest 42,125 39,008 81,133 Total lease liabilities $ 476,582 $ 50,682 $ 527,264 Subsequent to December 31, 2020, we entered into a lease extension on an aircraft that resulted in additional commitments of $33.1 million. The lease extension will commence in 2021 for an additional term of 8.2 years and will be classified as a finance lease. Lessor As of December 31, 2020, 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: 2021 $ 161,297 2022 156,437 2023 123,698 2024 81,676 2025 81,119 Thereafter 214,877 Total minimum lease receipts $ 819,104 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, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. Income Taxes The significant components of the provision for (benefit from) income taxes are as follows: 2020 2019 2018 Current: Federal $ (71 ) $ - $ (4,518 ) State and local 680 22 68 Foreign 2,249 886 597 Total current expense (benefit) 2,858 908 (3,853 ) Deferred: Federal 116,263 (172,038 ) 43,167 State and local 8,346 (8,908 ) 1,780 Foreign 8,989 393 (2,367 ) Total deferred expense (benefit) 133,598 (180,553 ) 42,580 Total income tax expense (benefit) $ 136,456 $ (179,645 ) $ 38,727 The domestic and foreign earnings (loss) before income taxes are as follows: 2020 2019 2018 Domestic $ 443,087 $ (510,739 ) $ 257,726 Foreign 53,655 37,981 51,648 Income (Loss) before income taxes $ 496,742 $ (472,758 ) $ 309,374 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, 2020, 2019 and 2018, respectively, is as follows: 2020 2019 2018 U.S. federal statutory income tax rate 21.0 % (21.0 %) 21.0 % State and local taxes based on income, net of federal benefit 0.8 % (1.0 %) 0.8 % Change in deferred foreign and state tax rates 0.6 % (0.2 %) (3.0 %) Customer incentive 3.4 % (3.3 %) (5.1 %) Nondeductible compensation 1.2 % 1.1 % 1.0 % Other nondeductible expenses 0.8 % 0.3 % 0.2 % Favorable resolution of income tax examinations — (12.6 %) — Tax effect of foreign operations (1.2 %) (1.8 %) (2.2 %) Other 0.9 % 0.5 % (0.2 %) Effective income tax expense (benefit) rate 27.5 % (38.0 %) 12.5 % The effective income tax expense rate for the year ended December 31, 2020 differed from the U.S. statutory rate primarily due to nondeductible changes in the fair value of a customer warrant liability (see Note 8 for further discussion). The effective income tax benefit rate for 2019 differed from tax at the U.S. statutory rate primarily due to a tax benefit related to the favorable completion of an IRS examination of our 2015 income tax return, and to a lesser extent, a tax benefit due to nontaxable changes in the fair value of a customer warrant liability. The effective income tax expense rate for 2018 differed from tax at the U.S. statutory rate primarily due to nondeductible and nontaxable changes in the fair value of a customer warrant liability, and to a benefit on the remeasurement of our deferred income tax liability for Singapore. We repatriated a portion of the earnings of our overseas Dry Leasing subsidiaries in 2020 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) 2020 2019 Deferred tax assets: Net operating loss carryforwards and credits $ 468,585 $ 556,051 Accrued compensation 24,880 12,695 Aircraft and other leases 111,819 120,122 Deferred grant income 9,019 - Interest rate derivatives 593 857 Long-term debt 926 1,253 Obsolescence reserve 7,531 6,152 Stock-based compensation 1,814 3,123 Other 739 3,668 Total deferred tax assets 625,906 703,921 Valuation allowance (24,070 ) (24,513 ) Net deferred tax assets $ 601,836 $ 679,408 Deferred tax liabilities: Fixed assets $ (691,015 ) $ (650,595 ) Customer incentive (8,888 ) (12,518 ) Deferred maintenance (42,005 ) (40,227 ) Goodwill and other intangibles (6,235 ) (1,714 ) Operating lease right-of-use assets (56,346 ) (46,929 ) Total deferred tax liabilities $ (804,489 ) $ (751,983 ) Deferred taxes included within following balance sheet line items: Deferred taxes $ (203,586 ) $ (74,040 ) Deferred costs and other assets 933 1,465 Net deferred tax assets (liabilities) $ (202,653 ) $ (72,575 ) As of December 31, 2020 and 2019, we had U.S. net operating losses (“NOLs”), net of unrecognized tax benefits and valuation allowances, of approximately $1.8 billion and $2.2 billion, respectively, most of which will expire through 2037, if not utilized. In 2020, we received a $2.3 million refund of alternative minimum tax credits we had as of December 31, 2019. Additionally, we had foreign NOLs for Hong Kong and Singapore, net of unrecognized tax benefits, of approximately $622.1 million and $636.3 million as of December 31, 2020 and 2019, 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 (“Section 382”) imposes an annual limitation on the amount of a corporation’s U.S. federal taxable income that can be offset by NOLs if it experiences an “ownership change”, as defined. We experienced an ownership change in the past that limits the use of prior NOLs to offset taxable income. If certain changes in our ownership occur prospectively, there could be an additional limitation on the amount of utilizable NOLs. On each reporting date, management assesses whether we are more likely than not to realize some or all of our deferred tax assets. After our assessment, we maintained a valuation allowance of $24.1 million and $24.5 million against our deferred tax assets as of December 31, 2020 and 2019, respectively. The valuation allowance decreased by $0.4 million during the year ended December 31, 2020. 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 was $29.9 million at December 31, 2018 and decreased by $1.0 million during the year ended December 31, 2018. 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: 2020 2019 2018 Beginning balance $ 22,383 $ 74,275 $ 71,717 Additions for tax positions related to the current year 4,971 1,414 2,061 Additions for tax positions related to prior years 127 - 657 Reductions for tax positions related to prior years (41 ) (53,306 ) (160 ) Ending balance $ 27,440 $ 22,383 $ 74,275 The decrease in unrecognized income tax benefits during 2019 for tax positions related to prior years was 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 a $0.1 million interest benefit as of December 31, 2020, and no benefit as of December 31, 2019 and 2018. There was no cumulative liability for tax-related interest as of December 31, 2020 2019 For U.S. federal income tax purposes, the 2016 through 2020 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 2014 through 2020 Singapore and Hong Kong income tax years are subject to examination. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | 12. 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. Term loans and notes consist of term loans, the Ex-Im Guaranteed Notes, the Private Placement Facility and the Promissory Note. 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 is 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, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 845,589 $ 845,589 $ 845,589 $ - $ - Restricted cash 10,692 10,692 10,692 - - $ 856,281 $ 856,281 $ 856,281 $ - $ - Liabilities Term loans and notes $ 1,809,656 $ 1,909,942 $ - $ - $ 1,909,942 Convertible notes (1) 458,803 560,975 560,975 - - Customer warrant 31,470 31,470 - 31,470 - $ 2,299,929 $ 2,502,387 $ 560,975 $ 31,470 $ 1,909,942 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 (2) 24,345 24,345 - 24,345 - $ 2,364,517 $ 2,464,338 $ 450,668 $ 24,345 $ 1,989,325 (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). (2) Includes $14.6 million that was reclassified to Additional paid-in capital on January 1, 2020 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | 13. 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, Gain (losses) on the disposal of aircraft, Losses on early extinguishment of debt, Unrealized losses (gains) on financial instruments and Unallocated income and expenses, net. Direct operating and ownership costs include crew costs, maintenance, fuel, ground operations, sales costs, aircraft rent, interest expense on the portion of debt used for financing aircraft, interest income on debt securities and aircraft depreciation. Unallocated income and expenses, net include corporate overhead, nonaircraft depreciation, noncash expenses and income, customer incentive asset amortization, interest expense on the portion of debt used for general corporate purposes, interest income on nondebt securities, capitalized interest, foreign exchange gains and losses, other revenue, other non-operating costs and CARES Act grant income. 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, e-commerce retailers, manufacturers, sports teams and fans, and private charter customers. We also provide limited airport-to-airport cargo services to select markets, including several cities in South America. 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 aircraft 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: 2020 2019 2018 Operating Revenue: ACMI $ 1,211,169 $ 1,247,770 $ 1,192,704 Charter 1,855,230 1,305,860 1,313,484 Dry Leasing 165,181 200,781 168,470 Customer incentive asset amortization (39,090 ) (33,135 ) (16,176 ) Other 18,626 17,913 19,242 Total Operating Revenue $ 3,211,116 $ 2,739,189 $ 2,677,724 Direct Contribution: ACMI $ 179,946 $ 218,459 $ 235,706 Charter 559,673 149,372 211,661 Dry Leasing 41,070 70,386 48,904 Total Direct Contribution for Reportable Segments 780,689 438,217 496,271 Unallocated expenses and (income), net (201,016 ) (337,434 ) (298,526 ) Loss on early extinguishment of debt (81 ) (804 ) - Unrealized gain (loss) on financial instruments (71,053 ) 75,109 123,114 Special charge (16,265 ) (638,373 ) (9,374 ) Transaction-related expenses (2,780 ) (4,164 ) (2,111 ) Gain (loss) on disposal of aircraft 7,248 (5,309 ) - Income (loss) from continuing operations before income taxes 496,742 (472,758 ) 309,374 Add back (subtract): Interest income (1,076 ) (4,296 ) (6,710 ) Interest expense 114,635 120,330 119,378 Capitalized interest (925 ) (2,274 ) (4,727 ) Loss on early extinguishment of debt 81 804 - Unrealized (gain) loss on financial instruments 71,053 (75,109 ) (123,114 ) Other income, net (185,742 ) (27,668 ) (10,659 ) Operating Income (Loss) $ 494,768 $ (460,971 ) $ 283,542 The following table disaggregates our Charter segment revenue by customer and service type: For the Year Ended 2020 2019 2018 Cargo Passenger Total Cargo Passenger Total Cargo Passenger Total Commercial customers $ 1,328,332 $ 16,531 $ 1,344,863 $ 579,001 $ 51,729 $ 630,730 $ 644,344 $ 33,785 $ 678,129 AMC 217,522 292,845 510,367 313,236 361,894 675,130 327,751 307,604 635,355 Total Charter Revenue $ 1,545,854 $ 309,376 $ 1,855,230 $ 892,237 $ 413,623 $ 1,305,860 $ 972,095 $ 341,389 $ 1,313,484 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 $510.4 million for 2020, $675.1 million for 2019 and $635.4 million for 2018. Revenue from DHL was $563.6 million for 2020, $359.5 million for 2019 and $348.3 million for 2018. We have not experienced any credit issues with either of these customers. 2020 2019 2018 Depreciation and amortization expense: ACMI $ 109,686 $ 101,756 $ 93,706 Charter 56,083 50,705 38,531 Dry Leasing 78,241 81,384 73,868 Unallocated 13,662 17,252 11,235 Total Depreciation and Amortization $ 257,672 $ 251,097 $ 217,340 |
Labor and Legal Proceedings
Labor and Legal Proceedings | 12 Months Ended |
Dec. 31, 2020 | |
Labor And Legal Proceedings [Abstract] | |
Labor and Legal Proceedings | 14. 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 have commenced promptly. As provided in the CBAs, once an integrated seniority list (“ISL”) of Atlas and Southern Air pilots is presented to the Company by the IBT, it triggers a nine-month agreed-upon timeframe to negotiate a new JCBA with any unresolved issues promptly submitted to binding arbitration. The IBT, however, refused to follow the merger provisions in the Atlas and Southern Air CBAs, which resulted in significant litigation, arbitrations and delay. The Company has prevailed in all of the prior merger-related proceedings. The IBT was ordered by two arbitrators and two federal district courts to comply with the merger provisions of the Atlas and Southern Air CBAs, which included providing the Company with the ISL by May 15, 2020. The IBT subsequently requested additional time from the Company to complete the ISL and the parties agreed to a joint stipulation. As a result, on April 24, 2020, the U.S. District Court for the District of Columbia (“DC District Court”) issued a modified order, providing that the nine-month timeframe to bargain for a new JCBA was triggered on May 15, 2020 and that the IBT must produce the ISL by March 31, 2021. Any remaining open issues as of February 15, 2021 are to be determined by binding interest arbitration pursuant to the merger provisions in the CBAs. On April 28, 2020, the IBT and Local 2750, representing the Atlas crewmembers, filed a Notice of Appeal of the DC District Court’s order (the “March 31 st th On June 8, 2020, the U.S. Court of Appeals for the District of Columbia Circuit (“DC Court of Appeals”) consolidated the January 28 th st (collectively referred to as the “Consolidated Appeals”) Consolidated Appeals be held in abeyance pending further order from the DC Court of Appeals. On Janua ry 28 , 2021, the IBT voluntarily dismissed its pending Consolidated Appeals in Atlas’ favor. The Company and the IBT have continued to meet virtually since March 2020 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. On February 15, 2021, the Company and IBT completed the contractually-mandated nine-month period for negotiations for a JCBA. All remaining open issues not resolved in negotiations are to be determined in binding interest arbitration scheduled to begin in mid-March 2021. A new JCBA could be completed during 2021 On May 7, 2020, the Company announced that Atlas and Southern Air reached an agreement with IBT Locals 2750 and 1224, which provides for a ten percent pay increase for all pilots, effective as of May 1, 2020. This pay increase provides interim additional compensation to our pilots until a new JCBA is reached. In late 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. The IBT appealed the DC District Court’s decision to the DC Court of Appeals, which, in a unanimous three-judge panel, affirmed the DC District Court’s ruling and denied the IBT’s appeal. On May 22, 2020, the IBT filed a motion to dismiss the Company’s action for a preliminary injunction, asserting the Company’s claim for injunctive relief was mooted by the DC District Court’s March 31, 2020 decision in a separate case enforcing the management grievance arbitration awards in the Company’s favor. The Company filed an opposition to the IBT’s motion on June 22, 2020, and the IBT’s reply was filed on July 3, 2020. The preliminary injunction remains in full force and effect pending the court’s decision. In April 2020, the Company entered into Coronavirus Memorandum of Understandings (“MOU”) with both Local 2750 and Local 1224, providing for premium pay and enhanced benefits for pilots flying into covered areas designated by the Centers for Disease Control and Prevention (“CDC”) as Red Level 3 Travel Health Notices on its website at the time, as well as providing for an increased per diem and other additional safety measures related to COVID-19. In August 2020, the CDC updated its Travel Health Notices, which affected covered areas eligible for premium pay and certain benefits under the MOU. In late November 2020, the CDC further updated its Travel Health Notices, which expanded the scope of covered areas under the MOU. This CDC change resulted in China, however, no longer being a covered area under the MOU. The Company voluntarily offered and the Union agreed to continue to provide premium pay and certain other benefits under the MOU for eligible areas through December 31, 2020. The MOU has continued in effect since December 31, 2020. 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 and rulings, some of which are awaiting court decisions on appeal. The ultimate outcome of the lawsuit is likely to be affected by a decision readopted by the European Commission in March 2017, finding EU competition law violations by British Airways, KLM, Martinair, Air France and Lufthansa, among others, but not Old Polar or Polar. If the Company, Old Polar or Polar were to incur an unfavorable outcome, such outcome may have a material adverse impact on our business, financial condition, results of operations or cash flows. We are unable to reasonably estimate a range of possible loss for this matter at this time. Brazilian Customs Claim Old Polar was cited for two alleged customs violations in Sao Paulo, Brazil, relating to shipments of goods dating back to 1999 and 2000. Each claim asserts that goods listed on the flight manifest of two separate Old Polar scheduled service flights were not properly presented to customs upon arrival and therefore were improperly brought into Brazil. The two claims, which also seek unpaid customs duties, taxes and penalties from the date of the alleged infraction, are approximately $4.0 million in aggregate based on December 31, 2020 exchange rates. Old Polar has presented evidence that certain of the alleged missing goods were in fact never onboard the aircraft (due to a change in plans by the relevant shipper) and thus no customs duties should be due. Further, in both cases, we believe that the amounts claimed are substantially overstated due to a calculation error when considering the type and amount of goods allegedly missing, among other things. In the pending claim for one of the cases, we have received an administrative decision dismissing the claim in its entirety, which remains subject to a mandatory appeal by the Brazil customs authorities. In the other case, there was an administrative decision in favor of the Brazil customs authorities and we are in the process of appealing this decision to the Brazil courts. As required to defend such claims, we have made deposits pending resolution of these matters. The balance was $3.3 million as of December 31, 2020 and $4.1 million as of December 31, 2019, 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. |
Long-term Incentive Compensatio
Long-term Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Long-term Incentive Compensation Plans | 15. 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 May 2019, the stockholders approved a revised Long-Term Incentive Plan (the “2019 Plan”), which replaced previous plans. An aggregate of 2.4 million shares of common stock were reserved for issuance to participants under the 2019 Plan. No new awards have been made under previous plans since the adoption of the 2019 Plan. In June 2020, the stockholders approved a revised Long-Term Incentive Plan (the “2020 Plan”), which replaced the 2019 Plan. An aggregate of 2.4 million shares of common stock were reserved for issuance to participants under the 2020 Plan. No new awards have been made under the 2019 Plan since the adoption of the 2020 Plan. The portion of the 2020 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 2020 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 2020 Plan. As of December 31, 2020, the 2020 Plan had a total of 1.9 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 $21.4 million in 2020, $24.1 million in 2019 and $19.1 million in 2018 compensation was $ 7.4 million in 2020 . Income tax benefits recognized for share-based compensation arrangements were $ million in 2019 and $ 4.8 million in 201 8 . 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- or three- year periods. As of December 31, 2020 Unrecognized December 31, 2020 In 2020, 2019 and 2018, we granted time-based cash awards to employees and recognized compensation expense totaling $5.7 million in 2020, $6.2 million in 2019 and $2.1 million in 2018. A summary of our restricted shares as of December 31, 2020 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, 2019 528,895 $ 52.39 Granted 266,153 27.74 Vested (308,653 ) 50.82 Forfeited (5,631 ) 54.87 Unvested as of December 31, 2020 480,764 $ 39.73 The total fair value of shares vested on various vesting dates was $15.7 million in 2020 in 2019 in 2018 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. Performance share and performance cash awards include a relative total shareholder return (“TSR”) modifier which may impact the number of shares or cash earned at the end of the performance period. For these awards, the number of shares or cash earned based on the achievement of the predefined performance criteria will be reduced or increased if the Company's TSR over the performance period relative to a predefined comparator group of companies falls within defined ranges. The fair value of performance share units that include the TSR modifier is determined using a Monte Carlo valuation model on the date of grant, 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. We assess the TSR component for performance cash awards each quarter and record any change to compensation cost. As of December 31, 2020, a total of 2.2 million performance shares have been granted. Unrecognized compensation cost as of December 31, 2020 is $8.8 million and will be recognized over the remaining weighted average life of 1.5 years. For the performance cash awards, we had accruals of $25.8 million as of December 31, 2020 and $15.2 million as of December 31, 2019. A summary of our performance shares as of December 31, 2020 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, 2019 257,159 $ 98.97 Granted 192,809 53.62 Vested (144,617 ) 54.20 Forfeited (3,997 ) 102.41 Unvested as of December 31, 2020 301,354 $ 91.58 The total fair value of shares vested on various vesting dates in 2020 was $7.8 million, $6.9 million in 2019 and $7.7 million in 2018. Weighted average grant date fair value was $56.17 in 2019 and $45.37 in 2018. |
Profit Sharing, Incentive and R
Profit Sharing, Incentive and Retirement Plans | 12 Months Ended |
Dec. 31, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Profit Sharing, Incentive and Retirement Plans | 16. 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 $58.3 million as of December 31, 2020 and $28.6 million as of December 31, 2019. We recognized compensation expense associated with both plans totaling $54.9 million in 2020, $28.5 million in 2019 and $35.8 million in 2018. 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 $18.9 million in 2020, $15.9 million in 2019 and $13.9 |
Stock Repurchases
Stock Repurchases | 12 Months Ended |
Dec. 31, 2020 | |
Treasury Stock [Abstract] | |
Stock Repurchases | 17. 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, 2020, 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. In connection with our participation in the Payroll Support Program, we agreed not to repurchase shares in the open market of, or make dividend payments with respect to, our common stock through September 30, 2021. In addition, we withheld 182,270 and 185,688 treasury shares of common stock from management in 2020 and 2019, respectively, in connection with the vesting of equity awards to pay the statutory tax withholdings of employees, at an average price of $22.04 per share in 2020 in 2019 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 18. 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: Numerator: 2020 2019 2018 Income (loss) from continuing operations, net of taxes $ 360,286 $ (293,113 ) $ 270,647 Less: Unrealized gain on financial instruments, net of tax - - (123,114 ) Diluted income (loss) from continuing operations, net of tax $ 360,286 $ (293,113 ) $ 147,533 Denominator: Basic EPS weighted average shares outstanding 26,408 25,828 25,542 Effect of dilutive warrants 133 - 2,078 Effect of dilutive convertible notes - - 180 Effect of dilutive restricted stock 149 - 481 Diluted EPS weighted average shares outstanding 26,690 25,828 28,281 Earnings (loss) per share from continuing operations: Basic $ 13.64 $ (11.35 ) $ 10.60 Diluted $ 13.50 $ (11.35 ) $ 5.22 Loss per share from discontinued operations: Basic $ - $ - $ (0.00 ) Diluted $ - $ - $ (0.00 ) Earnings (loss) per share: Basic $ 13.64 $ (11.35 ) $ 10.60 Diluted $ 13.50 $ (11.35 ) $ 5.22 Anti-dilutive shares related to warrants issued in connection with our Convertible Notes or to customers that were out of the money and excluded were 12.1 million |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Income Loss [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 19. 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, 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 ) Balance as of December 31, 2019 $ (2,827 ) $ 9 $ (2,818 ) Reclassification to interest expense 1,178 - 1,178 Tax effect (264 ) - (264 ) Balance as of December 31, 2020 $ (1,913 ) $ 9 $ (1,904 ) Interest Rate Derivatives As of December 31, 2020, there was $2.5 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 $1.2 million and $1.3 million for 2020 and 2019, respectively. Net realized losses expected to be reclassified into earnings within the next 12 months are $1.0 million as of December 31, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires us to make estimates and judgments that affect the amounts reported in these financial statements and the related disclosures. Actual results may differ from those estimates. Estimates are used in determining, among other items, asset lives and residual values, cash flows and fair values for impairments, operating lease right-of-use assets, heavy maintenance costs, income tax accounting, business combinations, intangible assets, warrants, contingent liabilities (including, but not limited to litigation accruals), valuation allowances (including, but not limited to, those related to receivables, expendable parts inventory and deferred taxes), revenue, long-term incentive compensation and self-insured 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, e-commerce retailers, manufacturers, sports teams and fans, and private charter customers. Our obligations are for one or more flights based on a specific origin and destination. We also provide limited airport-to-airport cargo services to select markets, including several cities in 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. |
Restricted Cash | Restricted Cash Cash that is restricted under secured aircraft debt agreements, whereby it can only be used to make principal and interest payments on the related debt secured by those aircraft, is classified as Restricted cash. |
Accounts Receivable | Accounts Receivable We perform a monthly evaluation of our accounts receivable and establish an allowance for expected credit losses based on our best estimate, using a broad range of information including historical information, current conditions and forecasts. Account balances are written off against the allowance when we determine that the receivable will not be recovered (see Note 5). |
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 $52.5 million as of December 31, 2020 and $48.3 million at December 31, 2019, net of allowances for obsolescence of $34.9 million at December 31, 2020 and $30.4 million at December 31, 2019. |
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 $205.1 million in 2020, $220.2 million in 2019 and $196.6 million in 2018. The net book value of flight equipment on dry lease to customers was $1,395.8 million as of December 31, 2020 and $1,465.1 million as of December 31, 2019. The accumulated depreciation for flight equipment on dry lease to customers was $334.0 million as of December 31, 2020 and $260.4 million as of December 31, 2019. 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 $278.0 million as of December 31, 2020 and $244.8 million as of December 31, 2019. 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 6 for further discussion. Committed expenditures to acquire aircraft and spare engines are expected to be $264.7 million in 2021 and $458.3 million in 2022. These expenditures include our January 2021 agreement to purchase four 747-8F aircraft from Boeing that are expected to be delivered from May 2022 through October 2022, spare engines, and 747-400 passenger aircraft (to be used for both replacement of older passenger aircraft in service as well as spare engines and parts). |
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, 2020 and 2019 (see Note 7). During the fourth quarter of 2020, we performed a qualitative analysis and determined that goodwill was not impaired. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We record impairment charges for long-lived assets when events and circumstances indicate that the assets may be impaired, the undiscounted cash flows estimated to be generated by those assets are less than the associated carrying amount and the net book value of the assets exceeds the associated estimated fair value. For flight equipment, operating lease right-of-use assets and finite-lived intangibles used in our 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, 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, of which $4.7 million has been contributed as of December 31, 2020. Our maximum exposure to losses from the entity is limited to our investment. The joint venture has third-party debt obligations of $50.4 million that are not guaranteed by us. In November 2020, we completed a sale-leaseback transaction under an eight-year The following table summarizes our transactions with our dry leasing joint venture: For the Years Ended December 31, Revenue and Expenses: 2020 2019 Revenue from dry leasing joint venture $ 1,256 $ - Aircraft rent to dry leasing joint venture 1,275 - Aggregate Carrying Value of Joint Venture as of: December 31, 2020 December 31, 2019 Aggregate Carrying Value of Dry Leasing Joint Venture $ 4,438 $ 1,500 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 in the joint venture is accounted for under the equity method of accounting and was $21.0 million as of December 31, 2020 and $20.0 million as of December 31, 2019. 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, 2020 and $0.5 million as of December 31, 2019. 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. 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 10 for further discussion. |
Income Taxes | Income Taxes Deferred income taxes are recognized for the tax consequences of reporting items in our income tax returns at different times than the items are reflected in our financial statements. These temporary differences result in deferred tax assets and liabilities that are calculated by applying enacted statutory tax rates applicable to future years to differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities. If necessary, deferred income tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount, if any, of the valuation allowance. We have recorded reserves for income taxes that may become payable in future years. Although management believes that its positions taken on income tax matters are reasonable, we have nevertheless established tax reserves in recognition that various taxing authorities may challenge certain of the positions taken by us, potentially resulting in additional liabilities for taxes. |
Heavy Maintenance | Heavy Maintenance Except as described in the paragraph below, we account for heavy maintenance costs for airframes and engines using the direct expense method. Under this method, heavy maintenance costs are charged to 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: 2020 2019 Beginning balance, net $ 184,279 $ 103,647 Deferred maintenance costs 50,322 113,076 Disposals - (10,450 ) Amortization of deferred maintenance (43,298 ) (21,994 ) Ending balance, net $ 191,303 $ 184,279 |
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). |
Long-term Incentive Compensation | Long-term Incentive Compensation We have various long-term incentive compensation plans, including stock-based plans for certain employees and outside directors, which are described more fully in Note 15. 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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted in 2020 In November 2019, the Financial Accounting Standards Board (“FASB”) amended its accounting guidance for share-based payment awards issued to a customer. The amended 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 was effective for fiscal years beginning after December 15, 2019. Effective January 1, 2020 , we adopted the amended guidance and applied the modified retrospective approach to the most current period presented. As a result, $ 14.6 million, or approximately 60 % of our customer warrant liability of $ 24.3 million related to revenue contracts, which was included in Financial instruments and other liabilities as of December 31, 2019, was reclassified as Additional paid-in capital within Total stockholders’ equity on January 1, 2020. As a result, these customer warrants are no longer marked-to-market at the end of each reporting period with changes in fair value recorded as an unrealized loss (gain) on financial instruments. The amended guidance did not impact the accounting for the remaining portion of our customer warrant liability related to Dry Lease contracts, which was approximately $ 9.7 million or approximately 40 % of the total customer warrant liability , as of December 31, 2019. The new guidance did not impact how we account for the amortization of the customer incentive asset (see Note 8 for further discussion). In June 2016, the FASB amended its accounting guidance for the measurement of credit losses on financial instruments. The guidance requires entities to utilize an expected credit loss model for certain financial instruments, including most trade receivables, which replaces the incurred credit loss model previously used. Under this new model, we are required to recognize estimated credit losses expected to occur over time using a broad range of information including historical information, current conditions and reasonable and supportable forecasts. Receivables related to lease contracts are not within the scope of this amended guidance. Effective January 1, 2020, we adopted the amended guidance under the modified retrospective approach and it did not have a material impact on our consolidated financial statements and related disclosures (see Note 5). Recent Accounting Pronouncements Adopted in 2019 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. 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 10). Recent Accounting Pronouncements Not Yet Adopted In August 2020, the FASB amended its accounting guidance for certain financial instruments with characteristics of liabilities and equity, including convertible debt instruments. For convertible debt with a cash conversion feature, the amended guidance removes the current accounting model to separately account for the liability and equity components, which currently results in the amortization of a debt discount to interest expense. Under this amended guidance, such convertible debt will be accounted for as a single debt instrument with no amortization of a debt discount, unless certain other conditions are met. The amended guidance also requires the use of the if-converted method when calculating the dilutive impact of convertible debt on earnings per share. The amended guidance is effective as of the beginning of 2022, with early adoption permitted no earlier than the beginning of 2021. The two permitted transition methods under the guidance are the full retrospective approach, under which the guidance is applied to all periods presented, or the modified retrospective approach, under which the guidance is applied only to the most current period presented. While we are still assessing the impact the amended guidance will have on our consolidated financial statements, we plan to adopt this amended guidance at the beginning of 2022 and expect it will result in a material reclassification from equity to debt and a reduction in interest expense. In addition, the amended guidance is expected to result in a material reduction of diluted earnings per share due to the use of the if-converted method rather than the treasury method currently used to calculate the dilutive impact of convertible debt. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Estimated Useful Lives of Property and Equipment | The estimated useful lives of our property and equipment are as follows: Range Flight equipment 30 to 40 years Computer software and equipment 3 to 5 years Ground handling equipment and other 3 to 10 years |
Summary of Transactions with Dry Leasing Joint Ventures | The following table summarizes our transactions with our dry leasing joint venture: For the Years Ended December 31, Revenue and Expenses: 2020 2019 Revenue from dry leasing joint venture $ 1,256 $ - Aircraft rent to dry leasing joint venture 1,275 - Aggregate Carrying Value of Joint Venture as of: December 31, 2020 December 31, 2019 Aggregate Carrying Value of Dry Leasing Joint Venture $ 4,438 $ 1,500 The following table summarizes our transactions with Polar: For the Years Ended December 31, Revenue and Expenses: 2020 2019 2018 Revenue from Polar $ 323,907 $ 374,236 $ 412,793 Ground handling and airport fees to Polar 3,302 2,202 2,301 Accounts receivable/payable as of: December 31, 2020 December 31, 2019 Receivables from Polar $ 31,079 $ 10,855 Payables to Polar 3,477 2,161 Aggregate Carrying Value of Polar Investment as of: December 31, 2020 December 31, 2019 Aggregate Carrying Value of Polar Investment $ 4,870 $ 4,870 |
Schedule of Deferred Maintenance | The following table provides a summary of Deferred maintenance included within Deferred costs and other assets as of December 31: 2020 2019 Beginning balance, net $ 184,279 $ 103,647 Deferred maintenance costs 50,322 113,076 Disposals - (10,450 ) Amortization of deferred maintenance (43,298 ) (21,994 ) Ending balance, net $ 191,303 $ 184,279 |
DHL Investment and Polar (Table
DHL Investment and Polar (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020: Aircraft Service Total 747-8F ACMI 6 747-400F ACMI 3 777-200LRF CMI 6 777-200LRF CMI and Dry Leasing 2 777-200LRF Dry Leasing 2 767-300 CMI and Dry Leasing 2 767-300 CMI 2 767-200 CMI 7 Total 30 |
Summary of Transactions with Dry Leasing Joint Ventures | The following table summarizes our transactions with our dry leasing joint venture: For the Years Ended December 31, Revenue and Expenses: 2020 2019 Revenue from dry leasing joint venture $ 1,256 $ - Aircraft rent to dry leasing joint venture 1,275 - Aggregate Carrying Value of Joint Venture as of: December 31, 2020 December 31, 2019 Aggregate Carrying Value of Dry Leasing Joint Venture $ 4,438 $ 1,500 The following table summarizes our transactions with Polar: For the Years Ended December 31, Revenue and Expenses: 2020 2019 2018 Revenue from Polar $ 323,907 $ 374,236 $ 412,793 Ground handling and airport fees to Polar 3,302 2,202 2,301 Accounts receivable/payable as of: December 31, 2020 December 31, 2019 Receivables from Polar $ 31,079 $ 10,855 Payables to Polar 3,477 2,161 Aggregate Carrying Value of Polar Investment as of: December 31, 2020 December 31, 2019 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, 2020 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |
Summary of Allowance for Expected Credit Losses | Allowance for expected credit losses, included within Accounts receivable, is as follows: 2020 2019 2018 Beginning balance $ 1,822 $ 1,563 $ 1,494 Bad debt expense 463 41 12 Amounts written off, net of recoveries (1,052 ) 218 57 Ending balance $ 1,233 $ 1,822 $ 1,563 |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following as of December 31: 2020 2019 Maintenance $ 142,374 $ 136,315 Salaries, wages and benefits 136,753 75,719 Customer maintenance reserves 93,092 110,355 Deferred revenue 41,665 26,357 Deferred grant income 40,944 - Aircraft fuel 24,578 28,821 Other 103,754 104,158 Accrued liabilities $ 583,160 $ 481,725 |
Summary of Significant Changes in Deferred Revenue Liability Balances | Significant changes in our Deferred Revenue liability balances during the year ended December 31, 2020 were as follows: Deferred Revenue Balance as of December 31, 2019 $ 19,234 Revenue recognized (228,365 ) Amounts collected or invoiced 239,422 Balance as of December 31, 2020 $ 30,291 |
Summary of Interest and Income Taxes Paid | The following table summarizes interest and income taxes paid: 2020 2019 2018 Interest paid $ 76,310 $ 88,788 $ 86,168 Income taxes paid, net of refunds $ 1,170 $ (1,715 ) $ 695 |
Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total shown in the consolidated statements of cash flows: December 31, 2020 December 31, 2019 Cash and cash equivalents $ 845,589 $ 103,029 Restricted cash 10,692 10,401 Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows $ 856,281 $ 113,430 |
Special Charge and Other Inco_2
Special Charge and Other Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Aircraft And Aircraft Engines Held For Sale [Abstract] | |
Summary of Special Charge | The following table summarizes the Special charge 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, 2020 | |
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: 2020 2019 Lease intangible $ 54,891 $ 54,891 Goodwill 40,361 40,361 Customer relationship 26,280 26,280 Less: accumulated amortization (50,706 ) (44,676 ) $ 70,826 $ 76,856 |
Schedule of Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of December 31, 2020 is as follows: 2021 $ 6,030 2022 6,030 2023 4,853 2024 1,643 2025 1,643 Thereafter 10,266 Total $ 30,465 |
Amazon (Tables)
Amazon (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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: 2020 2019 Beginning balance $ 152,534 $ 184,720 Initial value for vested portion of warrant 11,832 949 Amortization of customer incentive asset (39,090 ) (33,135 ) Ending balance $ 125,276 $ 152,534 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Instrument [Line Items] | |
Debt Obligations | Our debt obligations, as of December 31: 2020 2019 Range of Maturity Dates Interest Rates (1) Balance Interest Rates (1) Balance Ex-Im Guaranteed Notes 2024 to 2025 1.90% $ 307,223 1.90% $ 396,632 Term loans 2021 to 2030 3.94% 1,229,739 4.13% 1,319,754 Private Placement Facility 2025 to 2026 3.33% 98,070 3.26% 113,997 Convertible Notes 2022 to 2024 2.04% 513,500 2.04% 513,500 Revolving Credit Facility 2022 - - 3.54% 100,000 Promissory Note 2030 1.00% 199,832 - - Total principal amount of debt 2,348,364 2,443,883 Less: unamortized debt discount and issuance costs (79,905 ) (103,711 ) Total debt 2,268,459 2,340,172 Less current portion of debt (276,990 ) (384,895 ) Long-term debt $ 1,991,469 $ 1,955,277 (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: 2020 2019 2015 Convertible Notes 2017 Convertible Notes 2015 Convertible Notes 2017 Convertible Notes Remaining life in months 17 41 29 53 Liability component: Gross proceeds $ 224,500 $ 289,000 $ 224,500 $ 289,000 Less: debt discount, net of amortization (12,716 ) (37,886 ) (21,019 ) (47,556 ) Less: debt issuance cost, net of amortization (1,172 ) (2,923 ) (1,959 ) (3,705 ) Net carrying amount $ 210,612 $ 248,191 $ 201,522 $ 237,739 Equity component (1) $ 52,903 $ 70,140 $ 52,903 $ 70,140 (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: 2015 Convertible Note 2017 Convertible Note Convertible Note Hedges: Number of shares (1) 3,031,558 4,731,306 Initial price per share $ 74.05 $ 61.08 Cost of hedge $ 52,903 $ 70,140 Convertible Note Warrants: Number of shares (1) 3,031,558 4,731,306 Initial price per share $ 95.01 $ 92.20 Proceeds from sale of warrants $ 36,290 $ 38,148 (1) |
Summary of Interest Expense Recognized | The following table presents the amount of interest expense recognized related to the Convertible Notes: 2020 2019 2018 Contractual interest coupon $ 10,470 $ 10,470 $ 10,470 Amortization of debt discount 17,971 16,880 15,855 Amortization of debt issuance costs 1,569 1,509 1,487 Total interest expense recognized $ 30,010 $ 28,859 $ 27,812 |
Schedule of Future Cash Payments for Debt | The following table summarizes the cash required to be paid by year and the carrying value 2021 $ 288,639 2022 514,737 2023 470,247 2024 505,408 2025 102,834 Thereafter 466,499 Total debt cash payments 2,348,364 Less: unamortized debt discount and issuance costs (79,905 ) Debt $ 2,268,459 |
Term Loans [Member] | |
Debt Instrument [Line Items] | |
Schedule of Term Loans | The following table summarizes the terms for each term loan entered into during 2020 (in millions): Issue Face Collateral Original Fixed Interest Date Value Type Term Rate First 2020 Term Loan February 2020 $ 82.0 777-200 126 months 3.27 % Second 2020 Term Loan February 2020 82.0 777-200 130 months 3.28 % Third 2020 Term Loan April 2020 14.6 None 60 months 1.15 % Fourth 2020 Term Loan August 2020 22.9 None 60 months 0.95 % Fifth 2020 Term Loan October 2020 16.3 None 60 months 0.90 % Total $ 217.8 |
Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Schedule of Convertible Notes | The following table lists certain key terms for the Convertible Notes: 2015 Convertible Note 2017 Convertible Note Fixed interest rate 2.25 % 1.88 % Earliest conversion date September 1, 2021 September 1, 2023 Initial conversion price per share $ 74.05 $ 61.08 Conversion rate (shares for each $1,000 of principal) 13.5036 16.3713 |
Leases and Guarantees (Tables)
Leases and Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Rental Expenses | The following table summarizes rental expenses in: 2020 2019 2018 Aircraft and engines $ 96,865 $ 155,639 $ 162,444 Purchased capacity, office, vehicles and other $ 18,708 $ 34,572 $ 63,650 |
Summary of Lease-Related Assets and Liabilities Recorded on Consolidated Balance Sheet | The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheets Classification on the Consolidated Balance Sheets 2020 2019 Assets Operating lease right-of-use assets Operating lease right-of-use assets $ 255,805 $ 231,133 Finance lease assets Property and equipment, net 46,024 38,373 Less: Accumulated amortization on finance lease assets Property and equipment, net (7,607 ) (6,038 ) Total lease assets $ 294,222 $ 263,468 Liabilities Current Operating lease liabilities Current portion of long-term operating leases $ 157,732 $ 141,973 Finance lease liabilities Current portion of long-term debt and finance leases 21,700 10,886 Noncurrent Operating lease liabilities Long-term operating leases 318,850 392,832 Finance lease liabilities Long-term debt and finance leases 28,982 29,625 Total lease liabilities $ 527,264 $ 575,316 Weighted Average Remaining Lease Term in years Operating Leases 4.34 3.94 Finance Leases 6.88 9.51 Weighted Average Discount Rate Operating Leases 4.22 % 4.52 % Finance Leases 13.84 % 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: 2020 2019 Fixed operating lease costs (1) $ 86,013 $ 148,812 Variable operating lease costs (1) 28,492 22,089 Finance lease costs: Amortization of leased assets (2) 3,224 2,508 Interest on lease liabilities (3) 5,640 5,492 Total lease cost $ 123,369 $ 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: 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases $ 161,645 $ 168,338 Operating cash flows for finance leases 5,619 5,492 Financing cash flows for finance leases 6,502 1,184 |
Schedule of Maturities of Lease Liabilities | As of December 31, 2020, maturities of lease liabilities for the periods indicated were as follows: Operating Finance Leases Leases Total 2021 $ 174,146 $ 26,922 $ 201,068 2022 130,865 6,166 137,031 2023 78,308 6,087 84,395 2024 65,296 6,008 71,304 2025 20,280 6,007 26,287 Thereafter 49,812 38,500 88,312 Total minimum rental payments 518,707 89,690 608,397 Less: imputed interest 42,125 39,008 81,133 Total lease liabilities $ 476,582 $ 50,682 $ 527,264 |
Summary of Contractual Amount of Minimum Receipts Excluding Taxes Under Dry Leases | As of December 31, 2020, 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: 2021 $ 161,297 2022 156,437 2023 123,698 2024 81,676 2025 81,119 Thereafter 214,877 Total minimum lease receipts $ 819,104 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of the (Benefit from) Provision for Income Taxes | The significant components of the provision for (benefit from) income taxes are as follows: 2020 2019 2018 Current: Federal $ (71 ) $ - $ (4,518 ) State and local 680 22 68 Foreign 2,249 886 597 Total current expense (benefit) 2,858 908 (3,853 ) Deferred: Federal 116,263 (172,038 ) 43,167 State and local 8,346 (8,908 ) 1,780 Foreign 8,989 393 (2,367 ) Total deferred expense (benefit) 133,598 (180,553 ) 42,580 Total income tax expense (benefit) $ 136,456 $ (179,645 ) $ 38,727 |
Domestic and Foreign Earnings (Loss) before Income Taxes | The domestic and foreign earnings (loss) before income taxes are as follows: 2020 2019 2018 Domestic $ 443,087 $ (510,739 ) $ 257,726 Foreign 53,655 37,981 51,648 Income (Loss) before income taxes $ 496,742 $ (472,758 ) $ 309,374 |
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, 2020, 2019 and 2018, respectively, is as follows: 2020 2019 2018 U.S. federal statutory income tax rate 21.0 % (21.0 %) 21.0 % State and local taxes based on income, net of federal benefit 0.8 % (1.0 %) 0.8 % Change in deferred foreign and state tax rates 0.6 % (0.2 %) (3.0 %) Customer incentive 3.4 % (3.3 %) (5.1 %) Nondeductible compensation 1.2 % 1.1 % 1.0 % Other nondeductible expenses 0.8 % 0.3 % 0.2 % Favorable resolution of income tax examinations — (12.6 %) — Tax effect of foreign operations (1.2 %) (1.8 %) (2.2 %) Other 0.9 % 0.5 % (0.2 %) Effective income tax expense (benefit) rate 27.5 % (38.0 %) 12.5 % |
Deferred Tax Assets (Liabilities) | The net noncurrent deferred tax asset (liability) was comprised of the following as of December 31: Assets (Liabilities) 2020 2019 Deferred tax assets: Net operating loss carryforwards and credits $ 468,585 $ 556,051 Accrued compensation 24,880 12,695 Aircraft and other leases 111,819 120,122 Deferred grant income 9,019 - Interest rate derivatives 593 857 Long-term debt 926 1,253 Obsolescence reserve 7,531 6,152 Stock-based compensation 1,814 3,123 Other 739 3,668 Total deferred tax assets 625,906 703,921 Valuation allowance (24,070 ) (24,513 ) Net deferred tax assets $ 601,836 $ 679,408 Deferred tax liabilities: Fixed assets $ (691,015 ) $ (650,595 ) Customer incentive (8,888 ) (12,518 ) Deferred maintenance (42,005 ) (40,227 ) Goodwill and other intangibles (6,235 ) (1,714 ) Operating lease right-of-use assets (56,346 ) (46,929 ) Total deferred tax liabilities $ (804,489 ) $ (751,983 ) Deferred taxes included within following balance sheet line items: Deferred taxes $ (203,586 ) $ (74,040 ) Deferred costs and other assets 933 1,465 Net deferred tax assets (liabilities) $ (202,653 ) $ (72,575 ) |
Unrecognized Income Tax Benefits | A reconciliation of the beginning and ending unrecognized income tax benefits is as follows: 2020 2019 2018 Beginning balance $ 22,383 $ 74,275 $ 71,717 Additions for tax positions related to the current year 4,971 1,414 2,061 Additions for tax positions related to prior years 127 - 657 Reductions for tax positions related to prior years (41 ) (53,306 ) (160 ) Ending balance $ 27,440 $ 22,383 $ 74,275 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 2020 Carrying Value Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 845,589 $ 845,589 $ 845,589 $ - $ - Restricted cash 10,692 10,692 10,692 - - $ 856,281 $ 856,281 $ 856,281 $ - $ - Liabilities Term loans and notes $ 1,809,656 $ 1,909,942 $ - $ - $ 1,909,942 Convertible notes (1) 458,803 560,975 560,975 - - Customer warrant 31,470 31,470 - 31,470 - $ 2,299,929 $ 2,502,387 $ 560,975 $ 31,470 $ 1,909,942 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 (2) 24,345 24,345 - 24,345 - $ 2,364,517 $ 2,464,338 $ 450,668 $ 24,345 $ 1,989,325 (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, 2020 | |
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: 2020 2019 2018 Operating Revenue: ACMI $ 1,211,169 $ 1,247,770 $ 1,192,704 Charter 1,855,230 1,305,860 1,313,484 Dry Leasing 165,181 200,781 168,470 Customer incentive asset amortization (39,090 ) (33,135 ) (16,176 ) Other 18,626 17,913 19,242 Total Operating Revenue $ 3,211,116 $ 2,739,189 $ 2,677,724 Direct Contribution: ACMI $ 179,946 $ 218,459 $ 235,706 Charter 559,673 149,372 211,661 Dry Leasing 41,070 70,386 48,904 Total Direct Contribution for Reportable Segments 780,689 438,217 496,271 Unallocated expenses and (income), net (201,016 ) (337,434 ) (298,526 ) Loss on early extinguishment of debt (81 ) (804 ) - Unrealized gain (loss) on financial instruments (71,053 ) 75,109 123,114 Special charge (16,265 ) (638,373 ) (9,374 ) Transaction-related expenses (2,780 ) (4,164 ) (2,111 ) Gain (loss) on disposal of aircraft 7,248 (5,309 ) - Income (loss) from continuing operations before income taxes 496,742 (472,758 ) 309,374 Add back (subtract): Interest income (1,076 ) (4,296 ) (6,710 ) Interest expense 114,635 120,330 119,378 Capitalized interest (925 ) (2,274 ) (4,727 ) Loss on early extinguishment of debt 81 804 - Unrealized (gain) loss on financial instruments 71,053 (75,109 ) (123,114 ) Other income, net (185,742 ) (27,668 ) (10,659 ) Operating Income (Loss) $ 494,768 $ (460,971 ) $ 283,542 |
Schedule of Disaggregated Charter Segment Revenue by Customer and Service Type | The following table disaggregates our Charter segment revenue by customer and service type: For the Year Ended 2020 2019 2018 Cargo Passenger Total Cargo Passenger Total Cargo Passenger Total Commercial customers $ 1,328,332 $ 16,531 $ 1,344,863 $ 579,001 $ 51,729 $ 630,730 $ 644,344 $ 33,785 $ 678,129 AMC 217,522 292,845 510,367 313,236 361,894 675,130 327,751 307,604 635,355 Total Charter Revenue $ 1,545,854 $ 309,376 $ 1,855,230 $ 892,237 $ 413,623 $ 1,305,860 $ 972,095 $ 341,389 $ 1,313,484 |
Depreciation and Amortization by Reportable Business Segments | 2020 2019 2018 Depreciation and amortization expense: ACMI $ 109,686 $ 101,756 $ 93,706 Charter 56,083 50,705 38,531 Dry Leasing 78,241 81,384 73,868 Unallocated 13,662 17,252 11,235 Total Depreciation and Amortization $ 257,672 $ 251,097 $ 217,340 |
Long-term Incentive Compensat_2
Long-term Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stock Based Compensation Plans Tables [Abstract] | |
Summary of Our Restricted Shares | A summary of our restricted shares as of December 31, 2020 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, 2019 528,895 $ 52.39 Granted 266,153 27.74 Vested (308,653 ) 50.82 Forfeited (5,631 ) 54.87 Unvested as of December 31, 2020 480,764 $ 39.73 |
Summary of Our Performance Shares | A summary of our performance shares as of December 31, 2020 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, 2019 257,159 $ 98.97 Granted 192,809 53.62 Vested (144,617 ) 54.20 Forfeited (3,997 ) 102.41 Unvested as of December 31, 2020 301,354 $ 91.58 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted EPS | The calculations of basic and diluted EPS were as follows: Numerator: 2020 2019 2018 Income (loss) from continuing operations, net of taxes $ 360,286 $ (293,113 ) $ 270,647 Less: Unrealized gain on financial instruments, net of tax - - (123,114 ) Diluted income (loss) from continuing operations, net of tax $ 360,286 $ (293,113 ) $ 147,533 Denominator: Basic EPS weighted average shares outstanding 26,408 25,828 25,542 Effect of dilutive warrants 133 - 2,078 Effect of dilutive convertible notes - - 180 Effect of dilutive restricted stock 149 - 481 Diluted EPS weighted average shares outstanding 26,690 25,828 28,281 Earnings (loss) per share from continuing operations: Basic $ 13.64 $ (11.35 ) $ 10.60 Diluted $ 13.50 $ (11.35 ) $ 5.22 Loss per share from discontinued operations: Basic $ - $ - $ (0.00 ) Diluted $ - $ - $ (0.00 ) Earnings (loss) per share: Basic $ 13.64 $ (11.35 ) $ 10.60 Diluted $ 13.50 $ (11.35 ) $ 5.22 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
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, 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 ) Balance as of December 31, 2019 $ (2,827 ) $ 9 $ (2,818 ) Reclassification to interest expense 1,178 - 1,178 Tax effect (264 ) - (264 ) Balance as of December 31, 2020 $ (1,913 ) $ 9 $ (1,904 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - Polar [Member] | 12 Months Ended |
Dec. 31, 2020 | |
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) $ in Thousands | Jan. 02, 2020USD ($) | Jan. 31, 2021Aircraftss | Nov. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2022USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jan. 01, 2019USD ($) |
Significant Accounting Policies [Line Items] | ||||||||||
Expendable parts net book value | $ 48,300 | $ 52,500 | $ 48,300 | |||||||
Allowance for expendable obsolescence | 30,400 | 34,900 | 30,400 | |||||||
Depreciation expense | 205,100 | 220,200 | $ 196,600 | |||||||
Net book value on flight equipment dry leased to customers | 1,465,100 | 1,395,800 | 1,465,100 | |||||||
Accumulated depreciation on flight equipment on dry lease | 260,400 | 334,000 | 260,400 | |||||||
Rotable parts inventory, net book value | 244,800 | 278,000 | 244,800 | |||||||
Rotable parts impairment charges | 33,600 | |||||||||
Goodwill total balance | 40,400 | 40,400 | 40,400 | |||||||
Customer warrant liability reclassified as additional paid in capital | $ 14,600 | |||||||||
Percentage of customer warrant liability | 60.00% | |||||||||
Customer warrant liability | $ 24,300 | |||||||||
Operating lease right-of-use assets | 231,133 | 255,805 | $ 231,133 | $ 596,900 | ||||||
Operating lease liabilities | $ 476,582 | $ 650,000 | ||||||||
Accounting Standards Update 2019-08 [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Change in accounting principle, adopted | true | |||||||||
Change in accounting principle, adoption date | Jan. 1, 2020 | |||||||||
Change in accounting principle, immaterial effect | true | |||||||||
Accounting Standards Update 2016-13 [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Change in accounting principle, adopted | true | |||||||||
Change in accounting principle, adoption date | Jan. 1, 2020 | |||||||||
Change in accounting principle, immaterial effect | true | |||||||||
Accounting Standards Update 2016-02 [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Change in accounting principle, adopted | true | |||||||||
Change in accounting principle, adoption date | Jan. 1, 2019 | |||||||||
Change in accounting principle, immaterial effect | true | |||||||||
Dry Leases [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Percentage of customer warrant liability | 40.00% | |||||||||
Customer warrant liability | $ 9,700 | |||||||||
Dry Leasing Joint Venture [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Voting interest | 10.00% | |||||||||
Investment in joint venture | $ 4,700 | |||||||||
Debt obligations to related party | 50,400 | |||||||||
Sale-leaseback transaction operating lease, term | 8 years | |||||||||
Sale-lease back transaction joint venture and received proceeds | $ 80,700 | |||||||||
Dry Leasing Joint Venture [Member] | Maximum [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Commitment to capital contributions | $ 40,000 | |||||||||
Parts Joint Venture [Member] | Variable Interest Entity Not Primary Beneficiary [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Voting interest | 50.00% | |||||||||
Investment in joint venture | 20,000 | $ 21,000 | $ 20,000 | |||||||
Payables to related party | $ 500 | $ 900 | $ 500 | |||||||
Aircraft 747-8F [Member] | Subsequent Event [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Number of aircraft purchase | Aircraftss | 4 | |||||||||
Forecast [Member] | Aircraft 747-8F [Member] | ||||||||||
Significant Accounting Policies [Line Items] | ||||||||||
Committed expenditures to acquire aircraft and spare engines | $ 458,300 | $ 264,700 | ||||||||
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, 2020 | |
Minimum [Member] | Flight equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 30 years |
Minimum [Member] | Computer software and equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 3 years |
Minimum [Member] | Ground handling equipment and other [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 3 years |
Maximum [Member] | Flight equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 40 years |
Maximum [Member] | Computer software and equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 5 years |
Maximum [Member] | Ground handling equipment and other [Member] | |
Property Plant And Equipment [Line Items] | |
Property and Equipment, depreciable life | 10 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Transactions with Dry Leasing Joint Ventures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Aircraft rent to dry leasing joint venture | $ 96,865 | $ 155,639 | $ 162,444 |
Dry Leasing Joint Venture [Member] | |||
Related Party Transaction [Line Items] | |||
Revenue from dry leasing joint venture | 1,256 | ||
Aircraft rent to dry leasing joint venture | 1,275 | ||
Aggregate Carrying Value of Dry Leasing Joint Venture | $ 4,438 | $ 1,500 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Schedule of Deferred Maintenance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Beginning balance, net | $ 184,279 | $ 103,647 |
Deferred maintenance costs | 50,322 | 113,076 |
Disposals | (10,450) | |
Amortization of deferred maintenance | (43,298) | (21,994) |
Ending balance, net | $ 191,303 | $ 184,279 |
COVID-19 Pandemic - Additional
COVID-19 Pandemic - Additional Information (Details) $ / shares in Units, $ in Thousands | Jul. 30, 2020USD ($) | Jun. 29, 2020USD ($) | Jun. 01, 2020USD ($) | May 29, 2020USD ($)Installment | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Operating Revenue | $ 3,211,116 | $ 2,739,189 | $ 2,677,724 | ||||
Payroll Support Program Agreement [Member] | Grant [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Operating Revenue | $ 151,600 | ||||||
Payroll Support Program Agreement [Member] | US Treasury [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Number of installment | Installment | 3 | ||||||
Payroll support funding | $ 406,800 | ||||||
Exercise price of warrants exercisable | $ / shares | $ 31.95 | ||||||
Warrants grant date fair value recognized as additional paid in capital | $ 14,400 | ||||||
Number of warrant exercised | shares | 0 | ||||||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Maximum [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Number of warrants issued to acquire common stock | shares | 625,452 | ||||||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Commercial Paper | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Proceeds from line of credit | $ 199,800 | ||||||
Interest on outstanding principal amount until fifth anniversary | 1.00% | ||||||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Commercial Paper | SOFR [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Percentage of additional bears interest after fifth anniversary | 2.00% | ||||||
Payroll Support Program Agreement [Member] | US Treasury [Member] | First Installment on June 1, 2020 [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Payroll support funding received | $ 203,400 | ||||||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Second Installment on June 29, 2020 [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Payroll support funding received | $ 101,700 | ||||||
Payroll Support Program Agreement [Member] | US Treasury [Member] | Third Installment on July 30, 2020 [Member] | |||||||
Collaborative Arrangements And Noncollaborative Arrangement Transactions [Line Items] | |||||||
Payroll support funding received | $ 101,700 |
DHL Investment and Polar - Addi
DHL Investment and Polar - Additional Information (Details) - DHL [Member] - Polar [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Equity interest | 49.00% | ||
Voting interest | 25.00% | ||
Revenue recognized | $ 226.8 | $ 101.3 | $ 106.9 |
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, 2020 | |
Service [Member] | |
Aircraft Type [Line Items] | |
747-8F | ACMI |
747-400F | ACMI |
777-200LRF | CMI |
777-200LRF | CMI and Dry Leasing |
777-200LRF | Dry Leasing |
767-300 | CMI and Dry Leasing |
767-300 | CMI |
767-200 | CMI |
Total Aircraft [Member] | |
Aircraft Type [Line Items] | |
747-8F | 6 |
747-400F | 3 |
777-200LRF | 6 |
777-200LRF | 2 |
777-200LRF | 2 |
767-300 | 2 |
767-300 | 2 |
767-200 | 7 |
Total | 30 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transaction [Line Items] | |||
Revenue from related party | $ 323,907 | $ 374,236 | $ 412,793 |
Ground handling and airport fees to Polar | 3,302 | 2,202 | $ 2,301 |
Receivables from related party | 31,079 | 10,855 | |
Payables to related party | 3,477 | 2,161 | |
Aggregate Carrying Value of Polar Investment | $ 4,870 | $ 4,870 |
Supplemental Balance Sheet an_3
Supplemental Balance Sheet and Cash Flow Information - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||
Accounts receivable related to customer contracts excluding dry leasing contracts | $ 195.6 | $ 247.5 |
Supplemental Balance Sheet an_4
Supplemental Balance Sheet and Cash Flow Information - Summary of Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |||
Beginning balance | $ 1,822 | $ 1,563 | $ 1,494 |
Bad debt expense | 463 | 41 | 12 |
Amounts written off, net of recoveries | (1,052) | 218 | 57 |
Ending balance | $ 1,233 | $ 1,822 | $ 1,563 |
Supplemental Balance Sheet an_5
Supplemental Balance Sheet and Cash Flow Information - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||
Maintenance | $ 142,374 | $ 136,315 |
Salaries, wages and benefits | 136,753 | 75,719 |
Customer maintenance reserves | 93,092 | 110,355 |
Deferred revenue | 41,665 | 26,357 |
Deferred grant income | 40,944 | |
Aircraft fuel | 24,578 | 28,821 |
Other | 103,754 | 104,158 |
Accrued liabilities | $ 583,160 | $ 481,725 |
Supplemental Balance Sheet an_6
Supplemental Balance Sheet and Cash Flow information - Summary of Significant Changes in Deferred Revenue liability Balances (Details) - Non-Dry Lease Revenue Contracts with Customers [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue Recognition [Line Items] | |
Balance as of December 31, 2019 | $ 19,234 |
Revenue recognized | (228,365) |
Amounts collected or invoiced | 239,422 |
Balance as of December 31, 2020 | $ 30,291 |
Supplemental Balance Sheet an_7
Supplemental Balance Sheet and Cash Flow information - Summary of Interest and Income Taxes Paid (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | |||
Interest paid | $ 76,310 | $ 88,788 | $ 86,168 |
Income taxes paid, net of refunds | $ 1,170 | $ (1,715) | $ 695 |
Supplemental Balance Sheet an_8
Supplemental Balance Sheet and Cash Flow information - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Supplemental Balance Sheet And Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 845,589 | $ 103,029 | ||
Restricted cash | 10,692 | 10,401 | ||
Total Cash, cash equivalents and restricted cash shown in Consolidated Statements of Cash Flows | $ 856,281 | $ 113,430 | $ 232,741 | $ 291,864 |
Special Charge and Other Inco_3
Special Charge and Other Income - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019USD ($)Engine | Dec. 31, 2020USD ($)Engine | Dec. 31, 2019USD ($)EnginePassengerAircraft | Dec. 31, 2018USD ($) | |
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||||
Net gain from sale of aircraft | $ 7,248 | $ (5,309) | $ 0 | |
Net proceeds from sale of aircraft | 126,335 | $ 10,300 | 0 | |
Number of aircraft held for sale | Engine | 3 | 3 | ||
Impairment loss on assets held for sale | 16,265 | $ 638,373 | 9,374 | |
Impairment of 747-400 freighter asset group | $ 580,300 | $ 580,279 | ||
Number of passenger aircraft used for training purposes | PassengerAircraft | 2 | |||
Prepaid Expenses and Other Current Assets [Member] | ||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||||
Carrying value of asset held for sale | 14,100 | |||
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 | ||
Certain Spare CF6-80 Engines [Member] | ||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||||
Number of aircraft held for sale | Engine | 2 | 2 | ||
CF6-80 Engines [Member] | ||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||||
Impairment loss recognized for held for sale assets | 9,400 | |||
CF6-80 Engines [Member] | Other Income, Net [Member] | ||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||||
Aircraft rent refund | $ 39,500 | $ 27,600 | $ 12,400 | |
Dry Leasing Portfolio [Member] | ||||
Impairment Of Aircraft Engines Held For Sale [Line Items] | ||||
Number of aircraft held for sale | Engine | 3 | 3 | 3 |
Special Charge and Other Inco_4
Special Charge and Other Income - Summary of Special Charge (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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 | $ 16,265 | $ 638,373 | $ 9,374 |
Intangible Assets, Net and Go_3
Intangible Assets, Net and Goodwill - Schedule of Intangible Assets, Net and Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Intangible Assets Table Details [Abstract] | ||
Lease intangible | $ 54,891 | $ 54,891 |
Goodwill | 40,361 | 40,361 |
Customer relationship | 26,280 | 26,280 |
Less: accumulated amortization | (50,706) | (44,676) |
Intangible assets, net | $ 70,826 | $ 76,856 |
Intangible Assets, Net and Go_4
Intangible Assets, Net and Goodwill - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets Amortization Expense Details [Abstract] | |||
Amortization of Intangible Assets | $ 6 | $ 6.2 | $ 8.8 |
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, 2020USD ($) |
Schedule Of Estimated Amortization Expense Table Details [Abstract] | |
2021 | $ 6,030 |
2022 | 6,030 |
2023 | 4,853 |
2024 | 1,643 |
2025 | 1,643 |
Thereafter | 10,266 |
Total | $ 30,465 |
Amazon - Additional Information
Amazon - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 02, 2020 | Jan. 01, 2019 | Jan. 31, 2021 | Oct. 31, 2020 | Mar. 31, 2019 | May 31, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Class Of Warrant Or Right [Line Items] | |||||||||
Issuance of shares related to settlement of warrant | 1,375,421 | ||||||||
Operating Revenue | $ 3,211,116 | $ 2,739,189 | $ 2,677,724 | ||||||
Percentage of customer warrant liability | 60.00% | ||||||||
Warrant liability unrealized (gains) losses | 71,100 | 75,100 | 123,100 | ||||||
Fair value of warrant liability | 31,500 | 24,300 | |||||||
Amortization of customer incentive asset | $ 39,090 | 33,135 | $ 16,200 | ||||||
Accelerated amortization of the customer incentive asset | $ 6,400 | ||||||||
Warrant A [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Right to acquire outstanding common shares | up to 20% of our outstanding common shares, as of the date of the agreements | ||||||||
Exercise price of warrants exercisable | $ 37.34 | ||||||||
Warrant for number of shares fully vested | 7,500,000 | ||||||||
Warrant vesting year | 2021-05 | ||||||||
Warrants exercised | 3,607,477 | ||||||||
Warrant A [Member] | Subsequent Event [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants exercised | 3,924,569 | ||||||||
Common Stock [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Issuance of shares related to settlement of warrant | 1,375,421 | ||||||||
Common Stock [Member] | Subsequent Event [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants exercised through cashless issuance of shares | 1,210,741 | ||||||||
Warrants exercised through cashless issuance of shares | 69,709 | ||||||||
Warrant B [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Exercise price of warrants exercisable | $ 37.34 | ||||||||
Warrants exercised | 0 | ||||||||
Additional warrant to acquire outstanding shares | up to an additional 10% of our outstanding common shares, as of the date of the agreements, | ||||||||
Additional warrant to buy number of shares vesting | 3,770,000 | ||||||||
Vesting increments of Amazon warrants | 37,660 | ||||||||
Operating Revenue | $ 4,200 | ||||||||
Warrant vested | 451,920 | ||||||||
Additional warrant vesting year | 2023-05 | ||||||||
Warrant B [Member] | Subsequent Event [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Warrants exercised | 225,960 | ||||||||
Warrant C [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Right to acquire outstanding common shares | up to an additional 9.9% of our outstanding common shares, as of the date of the agreements | ||||||||
Exercise price of warrants exercisable | $ 52.67 | ||||||||
Warrant vesting year | 2026-03 | ||||||||
Vesting increments of Amazon warrants | 45,623 | ||||||||
Operating Revenue | $ 6,900 | ||||||||
Warrant vested | 0 | ||||||||
Incremental warrant to buy number of shares vesting. | 6,660,000 | ||||||||
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% of our outstanding common shares, as of the date of the agreements | ||||||||
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% | ||||||||
Operating Revenue | $ 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% | ||||||||
Operating Revenue | $ 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 | 7 years | ||||||||
Percentage of customer warrant liability | 40.00% | ||||||||
CMI Operation [Member] | |||||||||
Class Of Warrant Or Right [Line Items] | |||||||||
Lease term | 7 years | 10 years | |||||||
Lease term option to extend | true | true | |||||||
Lease term of extension | 10 years | 10 years | |||||||
Percentage of customer warrant liability | 60.00% |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Warrants And Rights Note Disclosure [Abstract] | |||
Beginning balance | $ 152,534 | $ 184,720 | |
Initial value for vested portion of warrant | 11,832 | 949 | |
Amortization of customer incentive asset | (39,090) | (33,135) | $ (16,200) |
Ending balance | $ 125,276 | $ 152,534 | $ 184,720 |
Debt - Debt Obligations (Detail
Debt - Debt Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Debt Instrument [Line Items] | |||
Total principal amount of debt | $ 2,348,364 | $ 2,443,883 | |
Less: unamortized debt discount and issuance costs | (79,905) | (103,711) | |
Total debt | 2,268,459 | 2,340,172 | |
Less current portion of debt | (276,990) | (384,895) | |
Long-term debt | 1,991,469 | 1,955,277 | |
Ex-Im Guaranteed Notes [Member] | |||
Debt Instrument [Line Items] | |||
Ex-Im Guaranteed Notes | $ 307,223 | $ 396,632 | |
Interest Rates | [1] | 1.90% | 1.90% |
Ex-Im Guaranteed Notes [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2024 | ||
Ex-Im Guaranteed Notes [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2025 | ||
Term Loans [Member] | |||
Debt Instrument [Line Items] | |||
Term loans | $ 1,229,739 | $ 1,319,754 | |
Interest Rates | [1] | 3.94% | 4.13% |
Term Loans [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2021 | ||
Term Loans [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2030 | ||
Private Placement Facility [Member] | |||
Debt Instrument [Line Items] | |||
Private Placement Facility | $ 98,070 | $ 113,997 | |
Interest Rates | [1] | 3.33% | 3.26% |
Private Placement Facility [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2025 | ||
Private Placement Facility [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Range of Maturity Dates | 2026 | ||
Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 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 | ||
Promissory Note [Member] | |||
Debt Instrument [Line Items] | |||
Notes payable | $ 199,832 | $ 0 | |
Range of Maturity Dates | 2030 | ||
Interest Rates | [1] | 1.00% | 0.00% |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Revolving Credit Facility | $ 0 | $ 100,000 | |
Range of Maturity Dates | 2022 | ||
Interest Rates | [1] | 3.54% | |
[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, 2020USD ($) | |
Debt Instrument [Line Items] | |
Face Value | $ 217,800,000 |
First 2020 Term Loan [Member] | Secured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2020-02 |
Face Value | $ 82,000,000 |
Collateral Type | 777-200 |
Original Term | 126 months |
Fixed Interest Rate | 3.27% |
Second 2020 Term Loan [Member] | Secured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2020-02 |
Face Value | $ 82,000,000 |
Collateral Type | 777-200 |
Original Term | 130 months |
Fixed Interest Rate | 3.28% |
Third 2020 Term Loan [Member] | Unsecured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2020-04 |
Face Value | $ 14,600,000 |
Collateral Type | None |
Original Term | 60 months |
Fixed Interest Rate | 1.15% |
Fourth 2020 Term Loan [Member] | Unsecured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2020-08 |
Face Value | $ 22,900,000 |
Collateral Type | None |
Original Term | 60 months |
Fixed Interest Rate | 0.95% |
Fifth 2020 Term Loan [Member] | Unsecured Term Loan [Member] | |
Debt Instrument [Line Items] | |
Issue Date | 2020-10 |
Face Value | $ 16,300,000 |
Collateral Type | None |
Original Term | 60 months |
Fixed Interest Rate | 0.90% |
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, 2020USD ($)Day$ / shares | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Refinanced enhanced equipment trust certificates (EETCs) | $ 187,800 | |||||
Aggregate amount of EETCs refinanced interest rate | 8.10% | |||||
Debt instrument, convertible, conversion price | $ / 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 | |||||
Debt instrument, convertible, conversion price | $ / 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, 2020$ / shares | |
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 |
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 $1,000 of principal) | 16.3713 |
Debt - Certain Key Terms for _2
Debt - Certain Key Terms for Convertible Note (Parenthetical) (Details) | Dec. 31, 2020$ / shares |
Debt Disclosure [Abstract] | |
Debt instrument, convertible, conversion price | $ 1,000 |
Debt - Summary of Convertible N
Debt - Summary of Convertible Note Hedges and Related Warrants (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)$ / sharesshares | ||
2015 Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Number of shares | shares | 3,031,558 | [1] |
Initial price per share | $ / shares | $ 74.05 | |
Cost of hedge | $ | $ 52,903 | |
2017 Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Number of shares | shares | 4,731,306 | [1] |
Initial price per share | $ / shares | $ 61.08 | |
Cost of hedge | $ | $ 70,140 | |
Warrants [Member] | 2015 Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Number of shares | shares | 3,031,558 | [1] |
Initial price per share | $ / shares | $ 95.01 | |
Proceeds from sale of warrants | $ | $ 36,290 | |
Warrants [Member] | 2017 Convertible Notes [Member] | ||
Debt Instrument [Line Items] | ||
Number of shares | shares | 4,731,306 | [1] |
Initial price per share | $ / shares | $ 92.20 | |
Proceeds from sale of warrants | $ | $ 38,148 | |
[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, 2020 | Dec. 31, 2019 | May 31, 2017 | Jun. 30, 2015 | ||
Debt Instrument [Line Items] | |||||
Less: debt discount, net of amortization | $ (79,905) | ||||
2015 Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining life in months | 17 months | 29 months | |||
Gross proceeds | $ 224,500 | $ 224,500 | $ 224,500 | ||
Less: debt discount, net of amortization | (12,716) | (21,019) | |||
Less: debt issuance cost, net of amortization | (1,172) | (1,959) | |||
Net carrying amount | 210,612 | 201,522 | |||
Equity component | [1] | $ 52,903 | $ 52,903 | ||
2017 Convertible Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining life in months | 41 months | 53 months | |||
Gross proceeds | $ 289,000 | $ 289,000 | $ 289,000 | ||
Less: debt discount, net of amortization | (37,886) | (47,556) | |||
Less: debt issuance cost, net of amortization | (2,923) | (3,705) | |||
Net carrying amount | 248,191 | 237,739 | |||
Equity component | [1] | $ 70,140 | $ 70,140 | ||
[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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Total interest expense recognized | $ 114,635 | $ 120,330 | $ 119,378 |
Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Contractual interest coupon | 10,470 | 10,470 | 10,470 |
Amortization of debt discount | 17,971 | 16,880 | 15,855 |
Amortization of debt issuance costs | 1,569 | 1,509 | 1,487 |
Total interest expense recognized | $ 30,010 | $ 28,859 | $ 27,812 |
Debt - Revolving Credit Facilit
Debt - Revolving Credit Facility - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Debt instrument face amount | $ 217,800,000 | |||
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 | $ 0 | $ 100,000,000 | ||
Unused availability | $ 200,000,000 | |||
Revolver [Member] | Debt Instrument Face Amount for First $100 Million [Million] | ||||
Debt Instrument [Line Items] | ||||
Percentage of additional bears interest after fifth anniversary | 1.75% | |||
Revolver [Member] | Utilization Greater than $100 Million [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage of additional bears interest after fifth anniversary | 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 |
Debt - Schedule of Future Cash
Debt - Schedule of Future Cash Payments for Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Long Term Debt By Maturity [Abstract] | ||
2021 | $ 288,639 | |
2022 | 514,737 | |
2023 | 470,247 | |
2024 | 505,408 | |
2025 | 102,834 | |
Thereafter | 466,499 | |
Total debt cash payments | 2,348,364 | |
Less: unamortized debt discount and issuance costs | (79,905) | |
Total debt | $ 2,268,459 | $ 2,340,172 |
Leases and Guarantees - Summary
Leases and Guarantees - Summary of Rental Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Aircraft and engines | $ 96,865 | $ 155,639 | $ 162,444 |
Purchased capacity, office, vehicles and other | $ 18,708 | $ 34,572 | $ 63,650 |
Leases and Guarantees - Additio
Leases and Guarantees - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2019USD ($) | Dec. 31, 2020USD ($)LeasedAircraft | |
Lessee Lease Description [Line Items] | ||
Number of aircraft | LeasedAircraft | 20 | |
Number of aircraft operated under operating lease | LeasedAircraft | 18 | |
Lessee, operating lease, description | As of December 31, 2020, we lease 20 aircraft, of which 18 are operating leases. Lease expirations for our leased aircraft range from May 2021 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 February 2021 to March 2036. | |
Impairment charge on operating lease right-of-use assets and finance lease assets related to 747-400 freighter fleet | $ | $ 272.5 | |
Commitments for additional leases not yet commenced | $ | $ 33.1 | |
Additional leases commencement year | 2021 | |
Contract terms for leases not yet commenced | 8 years 2 months 12 days | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease expiration period | 2021-05 | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease expiration period | 2032-06 | |
Office Space, Airport Station Locations, Warehouse Space, Vehicles and Equipment [Member] | Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease expiration period | 2021-02 | |
Office Space, Airport Station Locations, Warehouse Space, Vehicles and Equipment [Member] | Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating lease expiration period | 2036-03 |
Leases and Guarantees - Summa_2
Leases and Guarantees - Summary of Lease-Related Assets and Liabilities Recorded on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | |||
Operating lease right-of-use assets | $ 255,805 | $ 231,133 | $ 596,900 |
Finance lease assets | $ 46,024 | $ 38,373 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | us-gaap:PropertyPlantAndEquipmentNet | |
Less: Accumulated amortization on finance lease assets | $ (7,607) | $ (6,038) | |
Total lease assets | 294,222 | 263,468 | |
Operating lease liabilities | 157,732 | 141,973 | |
Finance lease liabilities | 21,700 | 10,886 | |
Operating lease liabilities | 318,850 | 392,832 | |
Finance lease liabilities | 28,982 | 29,625 | |
Total lease liabilities | $ 527,264 | $ 575,316 |
Leases and Guarantees - Summa_3
Leases and Guarantees - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Weighted Average Remaining Lease Term in years | ||
Operating Leases | 4 years 4 months 2 days | 3 years 11 months 8 days |
Finance Leases | 6 years 10 months 17 days | 9 years 6 months 3 days |
Weighted Average Discount Rate | ||
Operating Leases | 4.22% | 4.52% |
Finance Leases | 13.84% | 15.77% |
Leases and Guarantees - Summa_4
Leases and Guarantees - Summary of Lease Costs for Finance and Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Fixed operating lease costs | $ 86,013 | $ 148,812 |
Variable operating lease costs | 28,492 | 22,089 |
Finance lease costs: | ||
Amortization of leased assets | 3,224 | 2,508 |
Interest on lease liabilities | 5,640 | 5,492 |
Total lease cost | $ 123,369 | $ 178,901 |
Leases and Guarantees - Schedul
Leases and Guarantees - Schedule of Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows for operating leases | $ 161,645 | $ 168,338 |
Operating cash flows for finance leases | 5,619 | 5,492 |
Financing cash flows for finance leases | $ 6,502 | $ 1,184 |
Leases and Guarantees - Sched_2
Leases and Guarantees - Schedule of Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Operating Leases [Abstract] | |||
Operating Leases, 2021 | $ 174,146 | ||
Operating Leases, 2022 | 130,865 | ||
Operating Leases, 2023 | 78,308 | ||
Operating Leases, 2024 | 65,296 | ||
Operating Leases, 2025 | 20,280 | ||
Operating Leases, Thereafter | 49,812 | ||
Operating Leases, Total minimum rental payments | 518,707 | ||
Operating Leases, Less: imputed interest | 42,125 | ||
Operating Leases | 476,582 | $ 650,000 | |
Finance Leases [Abstract] | |||
Finance Leases, 2021 | 26,922 | ||
Finance Leases, 2022 | 6,166 | ||
Finance Leases, 2023 | 6,087 | ||
Finance Leases, 2024 | 6,008 | ||
Finance Leases, 2025 | 6,007 | ||
Finance Leases, Thereafter | 38,500 | ||
Finance Leases, Total minimum rental payments | 89,690 | ||
Finance Leases, Less: imputed interest | 39,008 | ||
Finance Leases | 50,682 | ||
Total [Abstract] | |||
2021 | 201,068 | ||
2022 | 137,031 | ||
2023 | 84,395 | ||
2024 | 71,304 | ||
2025 | 26,287 | ||
Thereafter | 88,312 | ||
Total minimum rental payments | 608,397 | ||
Less: imputed interest | 81,133 | ||
Total lease liabilities | $ 527,264 | $ 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, 2020USD ($) |
Lessor Lease Description [Line Items] | |
2021 | $ 161,297 |
2022 | 156,437 |
2023 | 123,698 |
2024 | 81,676 |
2025 | 81,119 |
Thereafter | 214,877 |
Total minimum lease receipts | $ 819,104 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
Federal | $ (71) | $ (4,518) | |
State and local | 680 | $ 22 | 68 |
Foreign | 2,249 | 886 | 597 |
Total current expense (benefit) | 2,858 | 908 | (3,853) |
Deferred: | |||
Federal | 116,263 | (172,038) | 43,167 |
State and local | 8,346 | (8,908) | 1,780 |
Foreign | 8,989 | 393 | (2,367) |
Total deferred expense (benefit) | 133,598 | (180,553) | 42,580 |
Total income tax expense (benefit) | $ 136,456 | $ (179,645) | $ 38,727 |
Income Taxes - Domestic and For
Income Taxes - Domestic and Foreign Earnings (Loss) before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Domestic and foreign earnings before income taxes | |||
Domestic | $ 443,087 | $ (510,739) | $ 257,726 |
Foreign | 53,655 | 37,981 | 51,648 |
Income (loss) from continuing operations before income taxes | $ 496,742 | $ (472,758) | $ 309,374 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Line Items] | |||
U.S. federal corporate income tax rate | 21.00% | 21.00% | 21.00% |
Tax credit receivable refund amount | $ 2.3 | ||
Foreign NOLs for HK and Singapore net of unrecognized tax benefits | $ 622.1 | $ 636.3 | |
Aircraft leasing incentive program participation expire date | Jul. 31, 2023 | ||
Valuation allowance | $ 24.1 | 24.5 | $ 29.9 |
Adjustment to the valuation allowance | 0.4 | 5.4 | 1 |
Tax-related interest benefit | 0.1 | 0 | $ 0 |
Cumulative liability for tax-related interest | 0 | 0.1 | |
U.S. Federal [Member] | |||
Income Taxes [Line Items] | |||
U.S. net operating losses | $ 1,800 | $ 2,200 | |
NOL Expirations | 2037 | ||
Income tax year subject to examination | 2016 2017 2018 2019 2020 | ||
Foreign [Member] | Singapore [Member] | |||
Income Taxes [Line Items] | |||
Income tax year subject to examination | 2014 2015 2016 2017 2018 2019 2020 | ||
Foreign [Member] | Hong Kong [Member] | |||
Income Taxes [Line Items] | |||
Income tax year subject to examination | 2014 2015 2016 2017 2018 2019 2020 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
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% | 21.00% |
State and local taxes based on income, net of federal benefit | 0.80% | 1.00% | 0.80% |
Change in deferred foreign and state tax rates | 0.60% | 0.20% | (3.00%) |
Customer incentive | 3.40% | 3.30% | (5.10%) |
Nondeductible compensation | 1.20% | (1.10%) | 1.00% |
Other nondeductible expenses | 0.80% | (0.30%) | 0.20% |
Favorable resolution of income tax examinations | 12.60% | ||
Tax effect of foreign operations | (1.20%) | 1.80% | (2.20%) |
Other | 0.90% | (0.50%) | (0.20%) |
Effective income tax expense (benefit) rate | 27.50% | 38.00% | 12.50% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred tax assets: | ||
Net operating loss carryforwards and credits | $ 468,585 | $ 556,051 |
Accrued compensation | 24,880 | 12,695 |
Aircraft and other leases | 111,819 | 120,122 |
Deferred grant income | 9,019 | |
Interest rate derivatives | 593 | 857 |
Long-term debt | 926 | 1,253 |
Obsolescence reserve | 7,531 | 6,152 |
Stock-based compensation | 1,814 | 3,123 |
Other | 739 | 3,668 |
Total deferred tax assets | 625,906 | 703,921 |
Valuation allowance | (24,070) | (24,513) |
Net deferred tax assets | 601,836 | 679,408 |
Deferred tax liabilities: | ||
Fixed assets | (691,015) | (650,595) |
Customer incentive | (8,888) | (12,518) |
Deferred maintenance | (42,005) | (40,227) |
Goodwill and other intangibles | (6,235) | (1,714) |
Operating lease right-of-use assets | (56,346) | (46,929) |
Total deferred tax liabilities | (804,489) | (751,983) |
Deferred taxes included within following balance sheet line items: | ||
Deferred taxes | (203,586) | (74,040) |
Deferred costs and other assets | 933 | 1,465 |
Net deferred tax assets (liabilities) | $ (202,653) | $ (72,575) |
Income Taxes - Unrecognized Inc
Income Taxes - Unrecognized Income Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 22,383 | $ 74,275 | $ 71,717 |
Additions for tax positions related to the current year | 4,971 | 1,414 | 2,061 |
Additions for tax positions related to prior years | 127 | 657 | |
Reductions for tax positions related to prior years | (41) | (53,306) | (160) |
Ending balance | $ 27,440 | $ 22,383 | $ 74,275 |
Financial Instruments - Summary
Financial Instruments - Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | ||||
Short-term investments | $ 0 | $ 879 | ||
Restricted cash | 10,692 | 10,401 | ||
Liabilities | ||||
Customer warrant | 125,276 | 152,534 | $ 184,720 | |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||||
Assets | ||||
Cash and cash equivalents | 845,589 | 103,029 | ||
Short-term investments | 879 | |||
Restricted cash | 10,692 | 10,401 | ||
Financial instruments assets | 856,281 | 114,309 | ||
Liabilities | ||||
Term loans and notes | 1,809,656 | 1,800,911 | ||
Revolver | 100,000 | |||
Convertible notes | [1] | 458,803 | 439,261 | |
Customer warrant | 31,470 | 24,345 | ||
Financial instruments liabilities | 2,299,929 | 2,364,517 | ||
Estimate of Fair Value, Fair Value Disclosure [Member] | ||||
Assets | ||||
Cash and cash equivalents | 845,589 | 103,029 | ||
Short-term investments | 879 | |||
Restricted cash | 10,692 | 10,401 | ||
Financial instruments assets | 856,281 | 114,309 | ||
Liabilities | ||||
Term loans and notes | 1,909,942 | 1,885,750 | ||
Revolver | 103,575 | |||
Convertible notes | [1] | 560,975 | 450,668 | |
Customer warrant | 31,470 | 24,345 | ||
Financial instruments liabilities | 2,502,387 | 2,464,338 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 845,589 | 103,029 | ||
Short-term investments | 0 | |||
Restricted cash | 10,692 | 10,401 | ||
Financial instruments assets | 856,281 | 113,430 | ||
Liabilities | ||||
Term loans and notes | 0 | 0 | ||
Revolver | 0 | |||
Convertible notes | [1] | 560,975 | 450,668 | |
Customer warrant | 0 | 0 | ||
Financial instruments liabilities | 560,975 | 450,668 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 0 | |||
Restricted cash | 0 | 0 | ||
Financial instruments assets | 0 | 0 | ||
Liabilities | ||||
Term loans and notes | 0 | 0 | ||
Revolver | 0 | |||
Convertible notes | [1] | 0 | 0 | |
Customer warrant | 31,470 | 24,345 | ||
Financial instruments liabilities | 31,470 | 24,345 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Assets | ||||
Cash and cash equivalents | 0 | 0 | ||
Short-term investments | 879 | |||
Restricted cash | 0 | 0 | ||
Financial instruments assets | 0 | 879 | ||
Liabilities | ||||
Term loans and notes | 1,909,942 | 1,885,750 | ||
Revolver | 103,575 | |||
Convertible notes | [1] | 0 | 0 | |
Customer warrant | 0 | 0 | ||
Financial instruments liabilities | $ 1,909,942 | $ 1,989,325 | ||
[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). |
Financial Instruments - Summa_2
Financial Instruments - Summary of Carrying Value, Estimated Fair Value and Classification of Financial Instruments (Parenthetical) (Details) $ in Millions | Jan. 02, 2020USD ($) |
Long Term Investments Details [Abstract] | |
Customer warrant liability reclassified as additional paid in capital | $ 14.6 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)Segment | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments | Segment | 3 | ||
Operating Revenue | $ 3,211,116 | $ 2,739,189 | $ 2,677,724 |
DHL [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 563,600 | 359,500 | 348,300 |
AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | $ 510,400 | $ 675,100 | $ 635,400 |
Segment Reporting - Operating R
Segment Reporting - Operating Revenue and Direct Contribution For Our Reportable Business Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Revenue: | |||
Customer incentive asset amortization | $ (39,090) | $ (33,135) | $ (16,176) |
Other | 18,626 | 17,913 | 19,242 |
Total Operating Revenue | 3,211,116 | 2,739,189 | 2,677,724 |
Direct Contribution: | |||
Total Direct Contribution for Reportable Segments | 780,689 | 438,217 | 496,271 |
Unallocated expenses and (income), net | (201,016) | (337,434) | (298,526) |
Loss on early extinguishment of debt | (81) | (804) | 0 |
Unrealized gain (loss) on financial instruments | (71,053) | 75,109 | 123,114 |
Special charge | (16,265) | (638,373) | (9,374) |
Transaction-related expenses | (2,780) | (4,164) | (2,111) |
Gain (loss) on disposal of aircraft | 7,248 | (5,309) | 0 |
Income (loss) from continuing operations before income taxes | 496,742 | (472,758) | 309,374 |
Interest income | (1,076) | (4,296) | (6,710) |
Interest expense | 114,635 | 120,330 | 119,378 |
Capitalized interest | (925) | (2,274) | (4,727) |
Loss on early extinguishment of debt | 81 | 804 | 0 |
Unrealized (gain) loss on financial instruments | 71,053 | (75,109) | (123,114) |
Other income, net | (185,742) | (27,668) | (10,659) |
Operating Income (Loss) | 494,768 | (460,971) | 283,542 |
ACMI [Member] | |||
Operating Revenue: | |||
Operating Revenue | 1,211,169 | 1,247,770 | 1,192,704 |
Direct Contribution: | |||
Total Direct Contribution for Reportable Segments | 179,946 | 218,459 | 235,706 |
Charter [Member] | |||
Operating Revenue: | |||
Operating Revenue | 1,855,230 | 1,305,860 | 1,313,484 |
Direct Contribution: | |||
Total Direct Contribution for Reportable Segments | 559,673 | 149,372 | 211,661 |
Dry Leasing [Member] | |||
Operating Revenue: | |||
Operating Revenue | 165,181 | 200,781 | 168,470 |
Direct Contribution: | |||
Total Direct Contribution for Reportable Segments | $ 41,070 | $ 70,386 | $ 48,904 |
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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | $ 1,855,230 | $ 1,305,860 | $ 1,313,484 |
Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 1,344,863 | 630,730 | 678,129 |
AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 510,367 | 675,130 | 635,355 |
Cargo [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 1,545,854 | 892,237 | 972,095 |
Cargo [Member] | Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 1,328,332 | 579,001 | 644,344 |
Cargo [Member] | AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 217,522 | 313,236 | 327,751 |
Passenger [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 309,376 | 413,623 | 341,389 |
Passenger [Member] | Commercial Customers [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | 16,531 | 51,729 | 33,785 |
Passenger [Member] | AMC [Member] | |||
Segment Reporting Information [Line Items] | |||
Total Charter Revenue | $ 292,845 | $ 361,894 | $ 307,604 |
Segment Reporting - Depreciatio
Segment Reporting - Depreciation and Amortization by Reportable Business Segments (Details) - Service [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Depreciation and amortization expense: | |||
Depreciation and Amortization | $ 257,672 | $ 251,097 | $ 217,340 |
Unallocated Depreciation and Amortization | 13,662 | 17,252 | 11,235 |
ACMI [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | 109,686 | 101,756 | 93,706 |
Charter [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | 56,083 | 50,705 | 38,531 |
Dry Leasing [Member] | |||
Depreciation and amortization expense: | |||
Depreciation and Amortization | $ 78,241 | $ 81,384 | $ 73,868 |
Labor and Legal Proceedings - A
Labor and Legal Proceedings - Additional Information (Details) - USD ($) $ in Millions | May 01, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Brazilian Customs Claim [Member] | |||
Loss Contingencies [Line Items] | |||
Brazilian claims in the aggregate | $ 4 | ||
Amounts on deposit for Brazilian claims included in deferred costs and other assets | $ 3.3 | $ 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 | ||
All Pilots [Member] | |||
Loss Contingencies [Line Items] | |||
Percentage of pay increase to pilots | 10.00% |
Long-term Incentive Compensat_3
Long-term Incentive Compensation Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | May 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
LTIP compensation expense | $ 21.4 | $ 24.1 | $ 19.1 | ||
Tax benefit recognized for stock-based compensation arrangements | $ 7.4 | 1.8 | 4.8 | ||
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- or three- year periods. | ||||
Restricted shares unrecognized stock compensation cost | $ 9.1 | ||||
Restricted shares remaining weighted average life (in years) | 1 year 6 months | ||||
Total fair value, on vesting date, of restricted shares vested | $ 15.7 | 13.1 | 13.4 | ||
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 | 2,200,000 | ||||
Performance shares unrecognized compensation cost | $ 8.8 | ||||
Performance shares remaining weighted average life (in years) | 1 year 6 months | ||||
Total fair value, on vesting date, of performance shares vested | $ 7.8 | $ 6.9 | $ 7.7 | ||
Restricted Share Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 266,153 | ||||
Weighted average grant date fair value | $ 27.74 | $ 52.31 | $ 50.34 | ||
Time-based Cash Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognized compensation expenses | $ 5.7 | $ 6.2 | $ 2.1 | ||
Accruals | 3.9 | 4.1 | |||
Performance Cash Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Recognized compensation expenses | 18.9 | 7.6 | $ 6.8 | ||
Accruals | $ 25.8 | $ 15.2 | |||
Performance Share Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 192,809 | ||||
Weighted average grant date fair value | $ 53.62 | $ 56.17 | $ 45.37 | ||
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 May 2019, the stockholders approved a revised Long-Term Incentive Plan (the “2019 Plan”), which replaced previous plans. | ||||
LTIP number of shares available for future award grants | 2,400,000 | ||||
Previous Plans [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares authorized under the LTIP | 0 | ||||
2020 Plan [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Shares reserved for issuance under the LTIP | 2,400,000 | ||||
Description of revised LTIP | In June 2020, the stockholders approved a revised Long-Term Incentive Plan (the “2020 Plan”), which replaced the 2019 Plan. | ||||
Maximum term of award under the 2019 LTIP | ten years | ||||
Shares of common stock available for future award grants | 1,900,000 | ||||
2007, 2016, 2018, 2019 and 2020 Plans [Member] | Restricted Share Awards [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares, granted | 4,500,000 |
Long-term Incentive Compensat_4
Long-term Incentive Compensation Plans - Summary of Our Restricted Shares (Details) - Restricted Share Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Unvested beginning balance | 528,895 | ||
Number of Shares, Granted | 266,153 | ||
Number of Shares, Vested | (308,653) | ||
Number of Shares, Forfeited | (5,631) | ||
Number of Shares, Unvested ending balance | 480,764 | 528,895 | |
Weighted-Average Grant-Date Fair Value, Unvested beginning balance | $ 52.39 | ||
Weighted-Average Grant-Date Fair Value, Granted | 27.74 | $ 52.31 | $ 50.34 |
Weighted-Average Grant-Date Fair Value, Vested | 50.82 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 54.87 | ||
Weighted-Average Grant-Date Fair Value, Unvested ending balance | $ 39.73 | $ 52.39 |
Long-term Incentive Compensat_5
Long-term Incentive Compensation Plans - Summary of Our Performance Shares (Details) - Performance Share Awards [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Shares, Unvested beginning balance | 257,159 | ||
Number of Shares, Granted | 192,809 | ||
Number of Shares, Vested | (144,617) | ||
Number of Shares, Forfeited | (3,997) | ||
Number of Shares, Unvested ending balance | 301,354 | 257,159 | |
Weighted-Average Grant-Date Fair Value, Unvested beginning balance | $ 98.97 | ||
Weighted-Average Grant-Date Fair Value, Granted | 53.62 | $ 56.17 | $ 45.37 |
Weighted-Average Grant-Date Fair Value, Vested | 54.20 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 102.41 | ||
Weighted-Average Grant-Date Fair Value, Unvested ending balance | $ 91.58 | $ 98.97 |
Profit Sharing, Incentive and_2
Profit Sharing, Incentive and Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Profit Sharing And Incentive Plans Details [Abstract] | |||
Accrual for profit sharing and incentive plans liabilities | $ 58.3 | $ 28.6 | |
Profit sharing and incentive plans expense recognized | $ 54.9 | 28.5 | $ 35.8 |
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 | $ 18.9 | $ 15.9 | $ 13.9 |
Stock Repurchases - Additional
Stock Repurchases - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2020 | Dec. 31, 2020 | 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 shares withheld for payment of taxes | 182,270 | 185,688 | 180,084 | |||
Treasury shares withheld for payment of taxes per share | $ 22.04 | $ 50.47 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculations of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||
Income (loss) from continuing operations, net of taxes | $ 360,286 | $ (293,113) | $ 270,647 |
Less: Unrealized gain on financial instruments, net of tax | 0 | 0 | (123,114) |
Diluted income (loss) from continuing operations, net of tax | $ 360,286 | $ (293,113) | $ 147,533 |
Denominator: | |||
Basic EPS weighted average shares outstanding | 26,408 | 25,828 | 25,542 |
Effect of dilutive warrants | 133 | 0 | 2,078 |
Effect of dilutive convertible notes | 0 | 0 | 180 |
Effect of dilutive restricted stock | 149 | 481 | |
Diluted EPS weighted average shares outstanding | 26,690 | 25,828 | 28,281 |
Earnings (Loss) per share from continuing operations: | |||
Basic | $ 13.64 | $ (11.35) | $ 10.60 |
Diluted | 13.50 | (11.35) | 5.22 |
Loss per share from discontinued operations: | |||
Basic | 0 | 0 | 0 |
Diluted | 0 | 0 | 0 |
Earnings (loss) per share: | |||
Basic | 13.64 | (11.35) | 10.60 |
Diluted | $ 13.50 | $ (11.35) | $ 5.22 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Restricted shares and units in which performance or market conditions were not satisfied | 10.3 | 10.6 | 3.9 |
Warrants [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive shares excluded from the calculation of diluted EPS | 12.1 | 15.3 | 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, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | $ 1,792,179 | $ 2,067,964 | $ 1,789,856 |
Reclassification to interest expense | 1,178 | 1,336 | 1,485 |
Tax effect | (264) | (322) | |
Ending Balance | 2,261,539 | 1,792,179 | 2,067,964 |
Interest Rate Derivatives [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (2,827) | (3,841) | |
Reclassification to interest expense | 1,178 | 1,336 | |
Tax effect | (264) | (322) | |
Ending Balance | (1,913) | (2,827) | (3,841) |
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 | |
Ending Balance | 9 | 9 | 9 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning Balance | (2,818) | (3,832) | (3,993) |
Ending Balance | $ (1,904) | $ (2,818) | $ (3,832) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss [Abstract] | ||
Unamortized realized loss in Accumulated other comprehensive income (loss) related to forward-starting interest rate swaps | $ 2.5 | |
Net realized losses reclassified into earnings | 1.2 | $ 1.3 |
Realized losses related to forward-starting interest rate swaps expected to be reclassified into earnings within the next 12 months | $ 1 |