Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Oct. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Aircastle LTD | ' |
Entity Central Index Key | '0001362988 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 80,776,975 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $238,150 | $618,217 |
Accounts receivable | 5,127 | 5,625 |
Restricted cash and cash equivalents | 191,843 | 111,942 |
Restricted liquidity facility collateral | 107,000 | 107,000 |
Flight equipment held for lease, net of accumulated depreciation of $1,305,064 and $1,424,057 | 4,938,113 | 4,662,661 |
Net investment in finance leases | 148,005 | 119,951 |
Other assets | 177,242 | 186,764 |
Total assets | 5,805,480 | 5,812,160 |
LIABILITIES | ' | ' |
Borrowings from secured financings (including borrowings of ACS Ireland VIEs of $207,926 and $168,107, respectively) | 1,581,118 | 1,848,034 |
Borrowings from unsecured financings | 1,750,556 | 1,750,642 |
Accounts payable, accrued expenses and other liabilities | 134,892 | 108,593 |
Lease rentals received in advance | 48,379 | 53,189 |
Liquidity facility | 107,000 | 107,000 |
Security deposits | 110,410 | 87,707 |
Maintenance payments | 428,615 | 379,391 |
Fair value of derivative liabilities | 44,307 | 61,978 |
Total liabilities | 4,205,277 | 4,396,534 |
Commitments and Contingencies | ' | ' |
SHAREHOLDERS’ EQUITY | ' | ' |
Preference shares, $.01 par value, 50,000,000 shares authorized, no shares issued and outstanding | ' | ' |
Common shares, $.01 par value, 250,000,000 shares authorized, 68,639,729 shares issued and outstanding at December 31, 2012; and 80,776,975 shares issued and outstanding at September 30, 2013 | 808 | 686 |
Additional paid-in capital | 1,560,509 | 1,360,555 |
Retained earnings | 126,140 | 180,675 |
Accumulated other comprehensive loss | -87,254 | -126,290 |
Total shareholders’ equity | 1,600,203 | 1,415,626 |
Total liabilities and shareholders’ equity | $5,805,480 | $5,812,160 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated depreciation on flight equipment held for lease | $1,424,057 | $1,305,064 |
Borrowings from secured financings | 1,581,118 | 1,848,034 |
Common shares, par value | $0.01 | $0.01 |
Common shares, shares authorized | 250,000,000 | 250,000,000 |
Common shares, shares issued | 80,776,975 | 68,639,729 |
Common shares, shares outstanding | 80,776,975 | 68,639,729 |
Preference shares, par value | $0.01 | $0.01 |
Preference shares, shares authorized | 50,000,000 | 50,000,000 |
Preference shares, shares issued | ' | ' |
Preference shares, shares outstanding | ' | ' |
Variable Interest Entity, Primary Beneficiary | ACS Ireland | ' | ' |
Borrowings from secured financings | $168,107 | $207,926 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Revenues: | ' | ' | ' | ' |
Lease rental revenue | $161,148 | $159,547 | $475,656 | $465,413 |
Finance lease revenue | 4,122 | 3,518 | 12,120 | 4,474 |
Amortization of lease premiums, discounts and lease incentives | -9,737 | -6,838 | -25,527 | -6,392 |
Maintenance revenue | 12,932 | 10,944 | 42,983 | 37,126 |
Total lease revenue | 168,465 | 167,171 | 505,232 | 500,621 |
Other revenue | 1,625 | 5,695 | 11,425 | 9,341 |
Total revenues | 170,090 | 172,866 | 516,657 | 509,962 |
Operating expenses: | ' | ' | ' | ' |
Depreciation | 70,469 | 68,413 | 212,448 | 200,024 |
Interest, net | 57,843 | 54,101 | 183,651 | 167,203 |
Selling, general and administrative (including non-cash share based payment expense of $1,128 and $1,067 for the three months ended, and $3,233 and $2,931 for the nine months ended September 30, 2012 and 2013, respectively) | 12,830 | 11,907 | 39,297 | 36,616 |
Impairment of Aircraft | 106,136 | 78,676 | 112,335 | 88,787 |
Maintenance and other costs | 1,914 | 3,926 | 11,464 | 11,943 |
Total expenses | 249,192 | 217,023 | 559,195 | 504,573 |
Other income: | ' | ' | ' | ' |
Gain on sale of flight equipment | 3,092 | 11 | 25,601 | 3,062 |
Other | 855 | 0 | 5,016 | 604 |
Total other income | 3,947 | 11 | 30,617 | 3,666 |
Income (loss) from continuing operations before income taxes | -75,155 | -44,146 | -11,921 | 9,055 |
Income tax provision (benefit) | -597 | 1,701 | 6,719 | 5,976 |
Net income (loss) | ($74,558) | ($45,847) | ($18,640) | $3,079 |
Earnings (loss) per common share — Basic: | ' | ' | ' | ' |
Net income (loss) per share (in dollars per share) | ($0.95) | ($0.65) | ($0.26) | $0.04 |
Earnings (loss) per common share — Diluted: | ' | ' | ' | ' |
Net income (loss) per share (in dollars per share) | ($0.95) | ($0.65) | ($0.26) | $0.04 |
Dividends declared per share (in dollars per share) | $0.17 | $0.15 | $0.50 | $0.45 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Non-cash share based payment expense | $1,067 | $1,128 | $2,931 | $3,233 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($74,558) | ($45,847) | ($18,640) | $3,079 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Net change in fair value of derivatives, net of tax expense of $37 and $78 for the three months ended and $465 and $389 for the nine months ended, September 30, 2012 and 2013, respectively | 1,798 | 1,426 | 13,751 | 23,708 |
Net derivative loss reclassified into earnings | 7,300 | 8,966 | 25,285 | 21,903 |
Other comprehensive income | 9,098 | 10,392 | 39,036 | 45,611 |
Total comprehensive income (loss) | ($65,460) | ($35,455) | $20,396 | $48,690 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net of tax expense | $78 | $37 | $389 | $465 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Statement of Cash Flows [Abstract] | ' | ' |
Net income (loss) | ($18,640) | $3,079 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 212,448 | 200,024 |
Amortization of deferred financing costs | 11,757 | 10,082 |
Amortization of net lease discounts and lease incentives | 25,527 | 6,392 |
Deferred income taxes | 3,419 | 3,609 |
Non-cash share based payment expense | 2,931 | 3,233 |
Cash flow hedges reclassified into earnings | 25,285 | 21,903 |
Ineffective portion of cash flow hedges | 197 | 1,840 |
Security deposits and maintenance payments included in earnings | -32,047 | -36,312 |
Gain on sale of flight equipment | -25,601 | -3,062 |
Impairment of Aircraft | 112,335 | 88,787 |
Other | -4,481 | 1,820 |
Changes in certain assets and liabilities: | ' | ' |
Accounts receivable | 1,588 | -9,180 |
Other assets | 1,155 | -3,278 |
Accounts payable, accrued expenses and other liabilities | 7,978 | 14,071 |
Lease rentals received in advance | -4,538 | 2,948 |
Net cash provided by operating activities | 319,313 | 305,956 |
Cash flows from investing activities: | ' | ' |
Acquisition and improvement of flight equipment and lease incentives | -837,183 | -450,962 |
Proceeds from sale of flight equipment | 285,199 | 54,439 |
Restricted cash and cash equivalents related to sale of flight equipment | -2,200 | 35,762 |
Aircraft purchase deposits and progress payments | -5,655 | -25,155 |
Net investment in finance leases | -11,595 | -91,500 |
Collections on finance leases | 6,658 | 2,041 |
Purchase of debt investment | 0 | -43,626 |
Principal repayments on debt investment | 42,001 | 3,245 |
Other | -852 | -544 |
Net cash used in investing activities | -523,627 | -516,300 |
Cash flows from financing activities: | ' | ' |
Issuance of shares net of repurchases | 197,478 | -30,692 |
Proceeds from notes and term debt financings | 78,230 | 877,100 |
Securitization and term debt financing repayments | -430,482 | -783,976 |
Deferred financing costs | -2,910 | -17,794 |
Restricted secured liquidity facility collateral | 0 | 3,000 |
Secured liquidity facility collateral | 0 | -3,000 |
Restricted cash and cash equivalents related to financing activities | -77,701 | 102,315 |
Security deposits received | 19,545 | 11,400 |
Security deposits returned | -3,890 | -3,217 |
Maintenance payments received | 134,758 | 103,527 |
Maintenance payments returned | -54,886 | -36,967 |
Payments for terminated cash flow hedges | 0 | -50,757 |
Dividends paid | -35,895 | -32,158 |
Net cash (used in) provided by financing activities | -175,753 | 138,781 |
Net increase (decrease) in cash and cash equivalents | -380,067 | -71,563 |
Cash and cash equivalents at beginning of period | 618,217 | 295,522 |
Cash and cash equivalents at end of period | 238,150 | 223,959 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for interest, net of capitalized interest | 136,799 | 114,538 |
Cash paid for income taxes | 701 | 1,765 |
Supplemental disclosures of non-cash investing activities: | ' | ' |
Purchase deposits, advance lease rentals, security deposits and maintenance payments assumed in asset acquisitions | 46,232 | 18,988 |
Term debt financings assumed in asset acquisitions | 84,721 | 0 |
Advance lease rentals, security deposits, and maintenance payments settled in sale of flight equipment | $41,659 | $7,817 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
Summary of Significant Accounting Policies | |
Organization and Basis of Presentation | |
Aircastle Limited (“Aircastle,” the “Company,” “we,” “us” or “our”) is a Bermuda exempted company that was incorporated on October 29, 2004 under the provisions of Section 14 of the Companies Act of 1981 of Bermuda. Aircastle’s business is investing in aviation assets, including leasing, managing and selling commercial jet aircraft to airlines throughout the world and investing in aircraft related debt investments. | |
Aircastle is a holding company that conducts its business through subsidiaries. Aircastle directly or indirectly owns all of the outstanding common shares of its subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”). We operate in a single segment. | |
The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC; however, we believe that the disclosures are adequate to make information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure since the balance sheet date of September 30, 2013 through the date on which the consolidated financial statements included in this Form 10-Q were issued. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Aircastle and all of its subsidiaries. Aircastle consolidates eight Variable Interest Entities (“VIEs”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. | |
We consolidate VIEs in which we have determined that we are the primary beneficiary. We use judgment when deciding (a) whether an entity is subject to consolidation as a VIE, (b) who the variable interest holders are, (c) the potential expected losses and residual returns of the variable interest holders, and (d) which variable interest holder is the primary beneficiary. When determining which enterprise is the primary beneficiary, we consider (1) the entity’s purpose and design, (2) which variable interest holder has the power to direct the activities that most significantly impact the entity’s economic performance, and (3) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. When certain events occur, we reconsider whether we are the primary beneficiary of VIEs. We do not reconsider whether we are a primary beneficiary solely because of operating losses incurred by an entity. | |
Effective January 1, 2013, the Company adopted Financial Accounting Standards Board (the "FASB") Accounting Standards Update ("ASU") 2013-02 (“ASU 2013-02”) Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This ASU requires that companies present reclassification adjustments for each component of accumulated other comprehensive income (“AOCI”) either on the face of the financial statements or in the notes, provided that all required information is presented in a single location. ASU 2013-02 is effective for interim and annual reporting periods beginning after December 15, 2012 and should be applied prospectively. The adoption of ASU 2013-02 did not have a material impact on the Company's consolidated financial statements. | |
Effective January 1, 2013, the Company adopted ASU 2011-11 (“ASU 2011-11”) Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. This ASU requires that companies disclose information to enable users of its financial statements to evaluate the effect or potential effect of netting arrangements on its financial position. ASU 2011-11 is effective for interim and annual reporting periods beginning on or after January 1, 2013 and should be applied retrospectively for all periods presented on the balance sheet. The adoption of ASU 2011-11 did not have a material impact on the Company's consolidated financial statements. | |
Risk and Uncertainties | |
In the normal course of business, Aircastle encounters several significant types of economic risk including credit, market, aviation industry and capital market risks. Credit risk is the risk of a lessee’s inability or unwillingness to make contractually required payments and to fulfill its other contractual obligations. Market risk reflects the change in the value of derivatives and financings due to changes in interest rate spreads or other market factors, including the value of collateral underlying derivatives and financings. Aviation industry risk is the risk of a downturn in the commercial aviation industry which could adversely impact a lessee’s ability to make payments, increase the risk of unscheduled lease terminations and depress lease rates and the value of the Company’s aircraft. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of our business or to refinance existing debt facilities. | |
Use of Estimates | |
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes that the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. | |
Proposed Accounting Pronouncements | |
In May 2013, the FASB issued re-exposure draft, “Leases” (the “Lease Re-ED”), which would replace the existing guidance in the Accounting Standards Codification (“ASC”) 840 (“ASC 840”), Leases. The FASB decided that leases would be classified as either leases of real property (Type B) or leases of assets other than real property (Type A). Leases of real property will continue to use operating lease accounting. Leases of other than real property would use the receivable residual approach. Under the receivable residual approach, a lease receivable would be recognized for the lessor's right to receive lease payments, a portion of the carrying amount of the underlying asset would be allocated between the right of use granted to the lessee and the lessor's residual value and profit or loss would only be recognized at commencement if it is reasonably assured. The comment period for the Lease Re-ED ended on September 13, 2013. We anticipate that the final standard may have an effective date no earlier than 2017. When and if the proposed guidance becomes effective, it may have a significant impact on the Company's consolidated financial statements. Although we believe the presentation of our financial statements, and those of our lessees could change, we do not believe the accounting pronouncement will change the fundamental economic reasons for which the airlines lease aircraft. Therefore, we do not believe it will have a material impact on our business. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||
Fair Value Measurements | ||||||||||||||||||
Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows: | ||||||||||||||||||
• | Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. | |||||||||||||||||
• | Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs. | |||||||||||||||||
• | Level 3: Unobservable inputs for which there is little or no market data and which require us to develop our own assumptions about how market participants price the asset or liability. | |||||||||||||||||
The valuation techniques that may be used to measure fair value are as follows: | ||||||||||||||||||
• | The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. | |||||||||||||||||
• | The income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectation about those future amounts. | |||||||||||||||||
• | The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). | |||||||||||||||||
The following tables set forth our financial assets and liabilities as of December 31, 2012 and September 30, 2013 that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. | ||||||||||||||||||
Fair Value Measurements at December 31, 2012 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of December 31, 2012 | Quoted Prices | Significant | Significant | Valuation | ||||||||||||||
In Active | Other | Unobservable | Technique | |||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||
Assets | (Level 2) | |||||||||||||||||
(Level 1) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 618,217 | $ | 618,217 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 111,942 | 111,942 | — | — | Market | |||||||||||||
Debt investments | 40,388 | — | — | 40,388 | Income | |||||||||||||
Total | $ | 770,547 | $ | 730,159 | $ | — | $ | 40,388 | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 61,978 | $ | — | $ | 61,978 | $ | — | Income | |||||||||
Fair Value Measurements at September 30, 2013 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of September 30, 2013 | Quoted Prices | Significant | Significant | Valuation | ||||||||||||||
In Active | Other | Unobservable | Technique | |||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||
Assets | (Level 2) | |||||||||||||||||
(Level 1) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 238,150 | $ | 238,150 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 191,843 | 191,843 | — | — | Market | |||||||||||||
Total | $ | 429,993 | $ | 429,993 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 44,307 | $ | — | $ | 44,307 | $ | — | Income | |||||||||
Our cash and cash equivalents, along with our restricted cash and cash equivalents balances, consist largely of money market securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. Our interest rate derivatives included in Level 2 consist of United States dollar-denominated interest rate derivatives, and their fair values are determined by applying standard modeling techniques under the income approach to relevant market interest rates (cash rates, futures rates, swap rates) in effect at the period close to determine appropriate reset and discount rates and incorporates an assessment of the risk of non-performance by the interest rate derivative counterparty in valuing derivative assets and an evaluation of the Company’s credit risk in valuing derivative liabilities. | ||||||||||||||||||
The following tables reflect the activity for the classes of our assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three and nine months ended September 30, 2012 and 2013, respectively: | ||||||||||||||||||
Assets | ||||||||||||||||||
Debt Investments | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | 40,388 | ||||||||||
Total gains/(losses), net: | ||||||||||||||||||
Included in other revenue | — | — | — | 1,613 | ||||||||||||||
Settlements | — | — | — | (42,001 | ) | |||||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — | ||||||||||
Liabilities | ||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | (56,229 | ) | $ | — | |||||||||
Total gains/(losses), net: | ||||||||||||||||||
Included in other income (expense) | — | — | 599 | — | ||||||||||||||
Included in interest expense | — | — | 73 | — | ||||||||||||||
Included in other comprehensive income | — | — | 4,800 | — | ||||||||||||||
Settlements | — | — | 50,757 | — | ||||||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — | ||||||||||
For the three and nine months ended September 30, 2012, we had no transfers into or out of Level 3; however we did terminate all Level 3 interest rate derivatives during the second quarter of 2012. For the three and nine months ended September 30, 2013, we had no transfers into or out of Level 3; however we did settle the debt investment during the first quarter of 2013. | ||||||||||||||||||
We measure the fair value of certain assets and liabilities on a non-recurring basis, when US GAAP requires the application of fair value, including events or changes in circumstances that indicate that the carrying amounts of assets may not be recoverable. Assets subject to these measurements include aircraft. We record aircraft at fair value when we determine the carrying value may not be recoverable. Fair value measurements for aircraft impaired are based on an income approach that uses Level 3 inputs, which include our assumptions and appraisal data as to future cash proceeds from leasing and selling aircraft. | ||||||||||||||||||
Aircraft Valuation | ||||||||||||||||||
We perform our annual fleet-wide recoverability assessment during the third quarter of each year. This recoverability assessment, as more fully described in our Annual Report on Form 10-K for the year ended December 31, 2012, is a comparison of the carrying value of each aircraft to its undiscounted expected future cash flows. We develop the assumptions used in the recoverability assessment, including those relating to current and future demand for each aircraft type, based on management's experience in the aircraft leasing industry as well as information received from third party sources. Estimates of the undiscounted cash flows for each aircraft type are impacted by changes in contracted and future expected lease rates, residual values, expected scrap values, economic conditions and other factors. | ||||||||||||||||||
Following completion of the recoverability analysis during the third quarter of 2013, we determined the cash flows expected to be generated by several of our aircraft did not support carrying values. As a result, as noted below, we impaired seven aircraft with an aggregate net book value as of June 30, 2013 that was $318,854, writing down their book values by a total of $97,592. For some of these aircraft we also shortened the expected lives and/or reduced the residual values. More specifically, we wrote down the values on: | ||||||||||||||||||
• | Six Boeing Model 747-400 converted freighter aircraft manufactured between 1990 and 1994 and recorded impairment charges total $88,647; and | |||||||||||||||||
• | One Boeing Model 737-700 aircraft manufactured in 1999 and recorded an impairment charge of $8,945. | |||||||||||||||||
During the third quarter of 2013, we elected not to invest in engine performance restoration maintenance visits for one Boeing Model 767-300ER aircraft and instead agreed with the lessee to terminate the lease prior to scheduled expiry and pursue a part-out sale. We recorded impairment charges of $8,544 and we recorded maintenance revenue of $12,056 and other revenue of $875 from an early termination payment for the three months ended September 30, 2013, for this aircraft. | ||||||||||||||||||
In addition, for two McDonnell Douglas MD-11F freighter aircraft manufactured in 1997 that passed the recoverability assessment, we shortened the expected lives from 35 years to 25 years from production date. | ||||||||||||||||||
For changes we made to our aircraft, our total depreciation expense will decrease by approximately $900 in the fourth quarter of 2013, as compared to the three months ended June 30, 2013. We estimate a decrease in depreciation expense for changes we made to our aircraft for the year ended December 31, 2014 of approximately $4,600. | ||||||||||||||||||
In this year's assessment, we lowered our assumptions for the freighter aircraft noted above to reflect the cumulative effect of increasing supply in the wake of stagnating demand over the past three years. More specifically, higher production levels for new, large freighter aircraft together with increased belly freight capacity from the latest generation of wide-body passenger aircraft have resulted in a glut of large freighter aircraft. At the same time, air freight demand has not increased due to modest economic growth rates in certain key economies and structural changes in the freight market (e.g., the evolution of smaller, smarter and lighter electronic devices and modal shifts). The combined effect of these developments has depressed lease rates and driven more converted freighter aircraft into storage, particularly over the past year. | ||||||||||||||||||
In addition to the changes noted above, we reduced projected rental levels for Boeing Model 737-700 aircraft to reflect lower demand for this smaller variant of the Boeing 737 "New Generation" family, as lower fare airline business models drive demand for shorter-haul operations to larger models having similar trip costs. | ||||||||||||||||||
Other than the aircraft discussed above, management believes that the net book value of each aircraft is currently supported by the estimated future undiscounted cash flows expected to be generated by that aircraft, and accordingly, no other aircraft were impaired as a consequence of this recoverability assessment. However, our lessees may face financial difficulties and return aircraft to us prior to the contractual lease expiry dates which may change our cash flow assumptions and require future impairment charges. While we believe that the estimates and related assumptions used in the recoverability assessment are appropriate, actual results could differ from those estimates. | ||||||||||||||||||
During the first quarter of 2013, we impaired two aircraft, one Airbus A319-100 aircraft and one Boeing 767-300ER aircraft, each of which was returned to us early by the respective lessee. The decision was made to sell these aircraft and the net book value of each was written down to the expected sale price. For these two aircraft, we recorded impairment charges totaling $6,199 and recorded maintenance revenue of $9,019 and other revenue of $876 during the nine months ended September 30, 2013. | ||||||||||||||||||
During the third quarter of 2012, following our recoverability assessment of the aircraft in our fleet at that time, we impaired four Boeing Model 767-300ER aircraft, eight Boeing 737 “Classic” aircraft, and one Airbus Model A310-300F freighter aircraft and recorded aggregate impairment charges of $67,370 to write these aircraft down to current market values. Also during the third quarter of 2012, we elected not to invest in engine performance restoration maintenance visits for two Airbus Model A320-200 “Classic” aircraft with older technology engines and instead agreed with the lessee to terminate the leases prior to scheduled expiry and pursue part-out sales. Following agreement with our customer to terminate the leases, these aircraft failed the recoverability assessment and we recorded impairment charges of $11,306 and we recorded $10,159 of maintenance revenue and reversed $1,157 of lease incentives for the three months ended September 30, 2012, for these two aircraft. | ||||||||||||||||||
During the second quarter of 2012, we impaired two aircraft, one Boeing Model 757-200 aircraft that we sold for less than its net book value and one Boeing Model 767-300ER aircraft which was returned to us following its scheduled lease expiration and which failed its recoverability assessment. For these two aircraft, we recorded impairment charges of $10,111, and we recorded $2,447 of maintenance revenue during the three months ended June 30, 2012. | ||||||||||||||||||
Financial Instruments | ||||||||||||||||||
Our financial instruments, other than cash, consist principally of cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, amounts borrowed under financings and interest rate derivatives. The fair value of cash, cash equivalents, restricted cash and cash equivalents, accounts receivable and accounts payable approximates the carrying value of these financial instruments because of their short-term nature. | ||||||||||||||||||
The fair values of our securitizations which contain third party credit enhancements are estimated using a discounted cash flow analysis, based on our current incremental borrowing rates of borrowing arrangements that do not contain third party credit enhancements. The fair values of our ECA term financings and bank financings are estimated using a discounted cash flow analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements. The fair value of our Senior Notes is estimated using quoted market prices. | ||||||||||||||||||
The carrying amounts and fair values of our financial instruments at December 31, 2012 and September 30, 2013 are as follows: | ||||||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
of Asset | of Asset | of Asset | of Asset | |||||||||||||||
(Liability) | (Liability) | (Liability) | (Liability) | |||||||||||||||
Securitizations and term debt financings | $ | (1,082,368 | ) | $ | (962,960 | ) | $ | (892,272 | ) | $ | (831,391 | ) | ||||||
ECA term financings | (652,916 | ) | (671,966 | ) | (504,419 | ) | (522,478 | ) | ||||||||||
Bank financings | (112,750 | ) | (116,272 | ) | (184,427 | ) | (189,094 | ) | ||||||||||
Senior Notes | (1,750,642 | ) | (1,905,565 | ) | (1,750,556 | ) | (1,899,575 | ) | ||||||||||
All of our financial instruments are classified as Level 2 with the exception of our Senior Notes, which are classified as Level 1. |
Lease_Rental_Revenues_and_Flig
Lease Rental Revenues and Flight Equipment Held for Lease | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Leases [Abstract] | ' | |||||||||||||||||||
Lease Rental Revenues and Flight Equipment Held for Lease | ' | |||||||||||||||||||
Lease Rental Revenues and Flight Equipment Held for Lease | ||||||||||||||||||||
Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at September 30, 2013 were as follows: | ||||||||||||||||||||
Year Ending December 31, | Amount | |||||||||||||||||||
Remainder of 2013 | $ | 166,891 | ||||||||||||||||||
2014 | 620,543 | |||||||||||||||||||
2015 | 554,155 | |||||||||||||||||||
2016 | 483,676 | |||||||||||||||||||
2017 | 354,261 | |||||||||||||||||||
Thereafter | 998,948 | |||||||||||||||||||
Total | $ | 3,178,474 | ||||||||||||||||||
Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
Region | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||
Europe | 37 | % | 33 | % | 40 | % | 33 | % | ||||||||||||
Asia and Pacific | 33 | % | 38 | % | 30 | % | 38 | % | ||||||||||||
North America | 12 | % | 10 | % | 12 | % | 9 | % | ||||||||||||
South America | 7 | % | 9 | % | 7 | % | 9 | % | ||||||||||||
Middle East and Africa | 11 | % | 10 | % | 11 | % | 11 | % | ||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
The classification of regions in the tables above and in the table and discussion below is determined based on the principal location of the lessee of each aircraft. | ||||||||||||||||||||
For the three months ended September 30, 2012, one customer accounted for 9% of lease rental revenue and four additional customers accounted for a combined 24% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. For the three months ended September 30, 2013, one customer accounted for 8% of lease rental revenue and three additional customers accounted for a combined 16% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. | ||||||||||||||||||||
For the nine months ended September 30, 2012, one customer accounted for 10% of lease rental revenue and four additional customers accounted for a combined 25% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. For the nine months ended September 30, 2013, one customer accounted for 8% of lease rental revenue and three additional customers accounted for a combined 17% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. | ||||||||||||||||||||
The following table sets forth revenue attributable to individual countries representing at least 10% of total revenue (including maintenance revenue) based on each lessee’s principal place of business: | ||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
Country | Revenue | Percent of | Number | Revenue | Percent of | Number | ||||||||||||||
Total | of | Total | of | |||||||||||||||||
Revenue | Lessees | Revenue | Lessees | |||||||||||||||||
China(1) | $ | 19,303 | 11 | % | 4 | $ | — | — | % | — | ||||||||||
United States(1) | 17,685 | 10 | % | 6 | — | — | % | — | ||||||||||||
Russia(1) | 17,472 | 10 | % | 8 | — | — | % | — | ||||||||||||
United Kingdom(2) | — | — | % | — | 16,293 | 10 | % | 2 | ||||||||||||
(1) Total revenue was less than 10% for the three months ended September 30, 2013. | ||||||||||||||||||||
(2) Total revenue includes $12,056 of maintenance revenue and $875 of other revenue related to an agreed upon lease termination prior to delivery date. | ||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
Country | Revenue | Percent of | Number | Revenue | Percent of | Number | ||||||||||||||
Total | of | Total | of | |||||||||||||||||
Revenue | Lessees | Revenue | Lessees | |||||||||||||||||
China | $ | 56,160 | 11 | % | 4 | $ | 49,148 | 10 | % | 4 | ||||||||||
United States(1) | 61,366 | 12 | % | 6 | — | — | % | — | ||||||||||||
Russia(1) | 50,280 | 10 | % | 8 | — | — | % | — | ||||||||||||
_______________ | ||||||||||||||||||||
(1) Total revenue was less than 10% for the nine months ended September 30, 2013. | ||||||||||||||||||||
Geographic concentration of net book value of flight equipment (includes net book value of flight equipment held for lease, net investment in finance leases and flight equipment held for sale) was as follows: | ||||||||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||||||||
Region | Number | Net Book | Number | Net Book | ||||||||||||||||
of | Value % | of | Value % | |||||||||||||||||
Aircraft | Aircraft | |||||||||||||||||||
Europe | 68 | 35 | % | 67 | 33 | % | ||||||||||||||
Asia and Pacific | 50 | 34 | % | 52 | 38 | % | ||||||||||||||
North America | 17 | 10 | % | 21 | 11 | % | ||||||||||||||
South America | 14 | 8 | % | 14 | 7 | % | ||||||||||||||
Middle East and Africa | 8 | 12 | % | 7 | 11 | % | ||||||||||||||
Off-lease | 2 | (1) | 1 | % | — | — | % | |||||||||||||
Total | 159 | 100 | % | 161 | 100 | % | ||||||||||||||
_______________ | ||||||||||||||||||||
-1 | Includes one Boeing 767-300ER that was sold in the first quarter of 2013 and one Boeing 747-400BDSF aircraft which was delivered to a lessee in the second quarter of 2013. | |||||||||||||||||||
The following table sets forth net book value of flight equipment (includes net book value of flight equipment held for lease and net investment in finance leases) attributable to individual countries representing at least 10% of net book value of flight equipment based on each lessee’s principal place of business as of: | ||||||||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||||||||
Country | Net Book | Net Book | Number of | Net Book | Net Book | Number of | ||||||||||||||
Value | Value % | Lessees | Value | Value % | Lessees | |||||||||||||||
China(1) | $ | 515,194 | 11 | % | 4 | $ | — | — | % | — | ||||||||||
_______________ | ||||||||||||||||||||
(1) The net book value of flight equipment was less than 10% as of September 30, 2013. | ||||||||||||||||||||
At December 31, 2012 and September 30, 2013, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $15,587 and $25,265, respectively. |
Net_Investment_in_Finance_Leas
Net Investment in Finance Leases | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Receivables [Abstract] | ' | ||||
Net Investment in Finance Leases | ' | ||||
Net Investment in Finance Leases | |||||
At September 30, 2013, our net investment in finance leases represents six aircraft leased to a customer in Germany, four aircraft leased to two customers in the United States and one aircraft leased to a customer in Canada. The following table lists the components of our net investment in finance leases at September 30, 2013: | |||||
Amount | |||||
Total lease payments to be received | $ | 144,341 | |||
Less: Unearned income | (66,795 | ) | |||
Estimated residual values of leased flight equipment (unguaranteed) | 70,459 | ||||
Net investment in finance leases | $ | 148,005 | |||
At September 30, 2013, minimum future lease payments on finance leases are as follows: | |||||
Year Ending December 31, | Amount | ||||
Remainder of 2013 | $ | 7,129 | |||
2014 | 27,042 | ||||
2015 | 27,042 | ||||
2016 | 27,042 | ||||
2017 | 26,127 | ||||
Thereafter | 29,959 | ||||
Total | $ | 144,341 | |||
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2013 | |
Variable Interest Entities [Abstract] | ' |
Variable Interest Entities | ' |
Variable Interest Entities | |
Aircastle consolidates eight VIEs of which it is the primary beneficiary. The operating activities of these VIEs are limited to acquiring, owning, leasing, maintaining, operating and, under certain circumstances, selling the 17 aircraft discussed below. | |
Securitizations | |
In connection with Securitization No. 1, two of our subsidiaries, ACS Aircraft Finance Ireland plc (“ACS Ireland”) and ACS Aircraft Finance Bermuda Limited (“ACS Bermuda”) issued Class A-1 notes, and each has fully and unconditionally guaranteed the other’s obligations under the notes. In connection with Securitization No. 2, two of our subsidiaries, ACS Aircraft Finance Ireland 2 Limited (“ACS Ireland 2”) and ACS 2007-1 Limited (“ACS Bermuda 2”) issued Class A-1 notes and each has fully and unconditionally guaranteed the other’s obligations under the notes. ACS Bermuda and ACS Bermuda 2 are collectively referred to as the “ACS Bermuda Group.” | |
Aircastle is the primary beneficiary of ACS Ireland and ACS Ireland 2 (collectively, the “ACS Ireland VIEs”), as we have both the power to direct the activities of the VIEs that most significantly impact the economic performance of such VIEs and we bear the significant risk of loss and participate in gains through Class E-1 Securities. Although Aircastle has not guaranteed the ACS Ireland VIEs debt, Aircastle wholly owns the ACS Bermuda Group which has fully and unconditionally guaranteed the ACS Ireland VIEs obligations. The activity that most significantly impacts the economic performance is the leasing of aircraft. Aircastle Advisor (Ireland) Limited (Aircastle’s wholly owned subsidiary) is the remarketing servicer and is responsible for the leasing of the aircraft. An Irish charitable trust owns 95% of the common shares of the ACS Ireland VIEs. The Irish charitable trust’s risk is limited to its annual dividend of $2 per VIE. At September 30, 2013, the assets of the two VIEs include 10 aircraft transferred into the VIEs at historical cost basis in connection with Securitization No. 1 and Securitization No. 2. | |
The combined assets of the ACS Ireland VIEs as of September 30, 2013 are $322,269. The combined liabilities of the ACS Ireland VIEs, net of $72,068 Class E-1 Securities held by the Company, which is eliminated in consolidation, as of September 30, 2013 are $267,810. | |
ECA Term Financings | |
Aircastle, through various subsidiaries, each of which is owned by a charitable trust (such entities, collectively the “Air Knight VIEs”), entered into eleven different twelve-year term loans, which are supported by guarantees from Compagnie Francaise d’ Assurance pour le Commerce Exterieur, (“COFACE”), the French government sponsored export credit agency (“ECA”). These loans provided for the financing for eleven new Airbus Model A330-200 aircraft. In June 2011, we repaid one of these loans from the proceeds of the sale of the related aircraft. In June 2013, we repaid two of these loans from the proceeds of the sale of the related aircraft. We sold an additional aircraft in June 2013, and we posted cash, which is reflected in restricted cash and cash equivalents on the consolidated balance sheet, as collateral for the related term loan until we pay-off the loan or substitute an aircraft. At September 30, 2013, Aircastle had eight outstanding term loans with guarantees from COFACE. We refer to these COFACE-supported financings as “ECA Term Financings.” | |
Aircastle is the primary beneficiary of the Air Knight VIEs, as we have the power to direct the activities of the VIEs that most significantly impact the economic performance of such VIEs and we bear the significant risk of loss and participate in gains through a finance lease. The activity that most significantly impacts the economic performance is the leasing of aircraft of which our wholly owned subsidiary is the servicer and is responsible for managing the relevant aircraft. There is a cross collateralization guarantee between the Air Knight VIEs. In addition, Aircastle guarantees the debt of the Air Knight VIEs. | |
The only assets that the Air Knight VIEs have on their books are financing leases that are eliminated in the consolidated financial statements and deferred financing costs. The related aircraft, with a net book value as of September 30, 2013 of $580,361 were included in our flight equipment held for lease. The related assets also include restricted cash and cash equivalents of $70,771. The consolidated debt outstanding of the Air Knight VIEs as of September 30, 2013 is $504,419. |
Secured_and_Unsecured_Debt_Fin
Secured and Unsecured Debt Financings | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Secured and Unsecured Debt Financings | ' | |||||||||||||
Secured and Unsecured Debt Financings | ||||||||||||||
The outstanding amounts of our secured and unsecured term debt financings were as follows: | ||||||||||||||
At December 31, 2012 | At 9/30/2013 | |||||||||||||
Debt Obligation | Outstanding | Outstanding | Interest Rate(1) | Final Stated | ||||||||||
Borrowings | Borrowings | Maturity(2) | ||||||||||||
Secured Debt Financings: | ||||||||||||||
Securitization No. 1 | $ | 309,505 | $ | 239,221 | 0.45% | 6/20/31 | ||||||||
Securitization No. 2 | 772,863 | 653,051 | 0.49% | 6/14/37 | ||||||||||
ECA Term Financings | 652,916 | 504,419 | 3.02% to 3.96% | 12/3/21 to 11/30/24 | ||||||||||
Bank Financings | 112,750 | 184,427 | 1.08% to 4.57% | 09/15/15 to 02/13/20 | ||||||||||
Total secured debt financings | 1,848,034 | 1,581,118 | ||||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2017 | 500,000 | 500,000 | 6.75% | 4/15/17 | ||||||||||
Senior Notes due 2018 | 450,642 | 450,556 | 9.75% | 8/1/18 | ||||||||||
Senior Notes due 2019 | 500,000 | 500,000 | 6.25% | 12/1/19 | ||||||||||
Senior Notes due 2020 | 300,000 | 300,000 | 7.63% | 4/15/20 | ||||||||||
2013 Revolving Credit Facility | — | — | N/A | 8/2/16 | ||||||||||
Total unsecured debt financings | 1,750,642 | 1,750,556 | ||||||||||||
Total secured and unsecured debt financings | $ | 3,598,676 | $ | 3,331,674 | ||||||||||
-1 | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 1, Securitization No. 2 and one of our Bank Financings. All other financings have a fixed rate. | |||||||||||||
-2 | For Securitizations No. 1 and No. 2, all cash flows available after expenses and interest are applied to debt amortization. | |||||||||||||
The following securitizations include liquidity facility commitments described in the table below: | ||||||||||||||
Available Liquidity | ||||||||||||||
Facility | Liquidity Facility Provider | December 31, | September 30, | Unused | Interest Rate | |||||||||
2012 | 2013 | Fee | on any Advances | |||||||||||
Securitization No. 1 | Crédit Agricole Corporate and Investment Bank | $ | 42,000 | $ | 42,000 | 0.45% | 1M Libor + 1.00 | |||||||
Securitization No. 2 | HSH Nordbank AG | 65,000 | 65,000 | 0.50% | 1M Libor + 0.75 | |||||||||
ECA Term Financings | ||||||||||||||
In June 2013, we repaid in full the outstanding principal balances on two of our ECA term financings in the total amount of $111,693, plus accrued interest, interest rate derivative breakage fees of $2,954, and accrued interest on the terminated interest rate derivatives. During the second quarter of 2013, we wrote off $3,825 of deferred financing fees which is reflected in interest expense on the consolidated statement of income. We sold an additional aircraft in June 2013, and we posted cash, which is reflected in restricted cash and cash equivalents on the consolidated balance sheet, as collateral for the related term loan until we pay-off the loan or substitute an aircraft. | ||||||||||||||
In August 2013, one of our subsidiaries issued a fixed rate ECA bond with a face value of $78,230 which is supported by a guarantee from COFACE and the proceeds were utilized to repay an interim floating rate bank financing that was drawn in connection with the acquisition of one Airbus Model A330-200 aircraft in 2012. The bond has a fixed coupon rate of 3.488% and a final maturity of November 30, 2024. | ||||||||||||||
Bank Financings | ||||||||||||||
In May 2013, we assumed three floating rate loans and one fixed rate loan totaling $91,797 in connection with the acquisition of two Airbus Model A320-200 aircraft and two Boeing Model 737-800 aircraft. During the quarter, we amended two of the floating rate loans to a fixed rate of 2.58% for the remaining debt term. At September 30, 2013, these four loans had a weighted average interest rate of 2.36% and mature in 2018 and 2020. | ||||||||||||||
We include these loan facilities in “Bank Financings”. Aircastle Limited has guaranteed the repayment of these Bank Financings. | ||||||||||||||
2013 Revolving Credit Facility | ||||||||||||||
In early August 2013, we amended and restructured our existing $150,000 revolving credit facility (the "2012 Revolving Credit Facility") with a new unsecured revolving credit facility (the "2013 Revolving Credit Facility”). The 2013 Revolving Credit Facility was initially sized at $335,000 and can be increased to a maximum of $400,000. The 2013 Revolving Credit Facility has a term of 3 years and is scheduled to expire in August 2016. | ||||||||||||||
As of September 30, 2013, we are in compliance with all applicable covenants in all of our financings. |
Dividends
Dividends | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Dividends [Abstract] | ' | |||||||||||
Dividends | ' | |||||||||||
Dividends | ||||||||||||
The following table sets forth the quarterly dividends declared by our board of directors for the periods covered in this report: | ||||||||||||
Declaration Date | Dividend | Aggregate | Record Date | Payment Date | ||||||||
per Common | Dividend | |||||||||||
Share | Amount | |||||||||||
February 17, 2012 | $ | 0.15 | $ | 10,865 | February 29, 2012 | March 15, 2012 | ||||||
2-May-12 | $ | 0.15 | $ | 10,847 | May 31, 2012 | June 15, 2012 | ||||||
1-Aug-12 | $ | 0.15 | $ | 10,464 | August 31, 2012 | September 14, 2012 | ||||||
5-Nov-12 | $ | 0.165 | $ | 11,493 | November 30, 2012 | December 14, 2012 | ||||||
18-Feb-13 | $ | 0.165 | $ | 11,268 | March 4, 2013 | March 15, 2013 | ||||||
1-May-13 | $ | 0.165 | $ | 11,297 | May 31, 2013 | June 14, 2013 | ||||||
2-Aug-13 | $ | 0.165 | $ | 13,330 | August 30, 2013 | September 13, 2013 | ||||||
Shareholders_Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2013 | |
Equity [Abstract] | ' |
Shareholders' Equity | ' |
Shareholders' Equity | |
During January 2013, we repurchased 679,292 common shares at an aggregate cost of $8,579 including commissions. The remaining dollar value of common shares that may be purchased under the repurchase program approved by the Company's Board of Directors on November 5, 2012 is $30,000. | |
In July 2013, we issued 12,320,000 of our common shares, par value US$0.01, at a price of $17.00 per share to an affiliate of Marubeni Corporation, a Japanese corporation (the "Investor"). In June 2013, we also entered into a Shareholder Agreement with the Investor, which became effective in July 2013 upon the closing of the issuance. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic earnings per share calculations using the two-class method. All of our restricted common shares are currently participating securities. | ||||||||||||||||
Under the two-class method, earnings per common share is computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period. Because the holders of the participating restricted common shares were not contractually required to share in the Company’s losses, in applying the two-class method to compute basic and diluted net loss per common share, no allocation to restricted common shares was made for the three months ended September 30, 2012 and 2013 and the nine months ended September 30, 2013. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Weighted-average shares: | ||||||||||||||||
Common shares outstanding | 70,349,265 | 78,544,380 | 71,248,765 | 71,462,264 | ||||||||||||
Restricted common shares | 571,326 | 669,489 | 596,749 | 562,612 | ||||||||||||
Total weighted-average shares | 70,920,591 | 79,213,869 | 71,845,514 | 72,024,876 | ||||||||||||
Percentage of weighted-average shares: | ||||||||||||||||
Common shares outstanding | 99.19 | % | 99.15 | % | 99.17 | % | 99.22 | % | ||||||||
Restricted common shares | 0.81 | % | 0.85 | % | 0.83 | % | 0.78 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
The calculations of both basic and diluted earnings per share are as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Earnings (loss) per share – Basic: | ||||||||||||||||
Net income (loss) | $ | (45,847 | ) | $ | (74,558 | ) | $ | 3,079 | $ | (18,640 | ) | |||||
Less: Distributed and undistributed earnings allocated to restricted common shares (a) | — | — | (25 | ) | — | |||||||||||
Earnings (loss) available to common shareholders – Basic | $ | (45,847 | ) | $ | (74,558 | ) | $ | 3,054 | $ | (18,640 | ) | |||||
Weighted-average common shares outstanding – Basic | 70,349,265 | 78,544,380 | 71,248,765 | 71,462,264 | ||||||||||||
Earnings (loss) per common share – Basic | $ | (0.65 | ) | $ | (0.95 | ) | $ | 0.04 | $ | (0.26 | ) | |||||
Earnings (loss) per share – Diluted: | ||||||||||||||||
Net income (loss) | $ | (45,847 | ) | $ | (74,558 | ) | $ | 3,079 | $ | (18,640 | ) | |||||
Less: Distributed and undistributed earnings allocated to restricted common shares(a) | — | — | (25 | ) | — | |||||||||||
Earnings (loss) available to common shareholders – Diluted | $ | (45,847 | ) | $ | (74,558 | ) | $ | 3,054 | $ | (18,640 | ) | |||||
Weighted-average common shares outstanding – Basic | 70,349,265 | 78,544,380 | 71,248,765 | 71,462,264 | ||||||||||||
Effect of dilutive shares(b) | — | — | — | — | ||||||||||||
Weighted-average common shares outstanding – Diluted | 70,349,265 | 78,544,380 | 71,248,765 | 71,462,264 | ||||||||||||
Earnings (loss) per common share – Diluted | $ | (0.65 | ) | $ | (0.95 | ) | $ | 0.04 | $ | (0.26 | ) | |||||
(a) | For the nine months ended September 30, 2012, distributed and undistributed earnings to restricted shares is 0.83% of net income. The amount of restricted share forfeitures for all periods present is immaterial to the allocation of distributed and undistributed earnings. | |||||||||||||||
(b) | For the three and nine months ended September 30, 2012 and 2013, we had no dilutive shares. |
Income_Taxes
Income Taxes | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Income Taxes | ' | |||||||||||||||
Income Taxes | ||||||||||||||||
Income taxes have been provided for based upon the tax laws and rates in countries in which our operations are conducted and income is earned. The Company received an assurance from the Bermuda Minister of Finance that it would be exempted from local income, withholding and capital gains taxes until March 2035. Consequently, the provision for income taxes recorded relates to income earned by certain subsidiaries of the Company which are located in, or earn income in, jurisdictions that impose income taxes, primarily the United States and Ireland. | ||||||||||||||||
The sources of income (loss) from continuing operations before income taxes for the three and nine months ended September 30, 2012 and 2013 were as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
U.S. operations | $ | 572 | $ | 488 | $ | 1,253 | $ | 1,684 | ||||||||
Non-U.S. operations | (44,718 | ) | (75,643 | ) | 7,802 | (13,605 | ) | |||||||||
Total | $ | (44,146 | ) | $ | (75,155 | ) | $ | 9,055 | $ | (11,921 | ) | |||||
All of our aircraft-owning subsidiaries that are recognized as corporations for U.S. tax purposes are non-U.S. corporations. These non-U.S. subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes unless they operate within the U.S., in which case they may be subject to federal, state and local income taxes. We also have a U.S. based subsidiary which provides management services to our non-U.S. subsidiaries and is subject to U.S. federal, state and local income taxes. | ||||||||||||||||
The consolidated income tax expense (benefit) for the three and nine months ended September 30, 2012 and 2013 was determined based upon estimates of the Company's consolidated effective income tax rates for the years ending December 31, 2012 and 2013, respectively. | ||||||||||||||||
The Company's effective tax rate for the three and nine months ended September 30, 2012 was (3.9)% and 66.0%, respectively, compared to 0.8% and (56.4)%, respectively, for the three and nine months ended September 30, 2013. Movements in the effective tax rates are generally caused by changes in the proportion of the Company's pre-tax earnings in taxable and non-tax jurisdictions. For the three and nine months ended September 30, 2012 and 2013, the interim period effective tax rate reflects the portfolio impairment of aircraft in the amount of $78,676 and $97,592, respectively, which was treated as a discrete item. | ||||||||||||||||
Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income consisted of the following: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Notional U.S. federal income tax expense (benefit) at the statutory rate | $ | (15,451 | ) | $ | (26,305 | ) | $ | 3,169 | $ | (4,173 | ) | |||||
U.S. state and local income tax, net | 37 | 39 | 86 | 125 | ||||||||||||
Non-U.S. operations: | ||||||||||||||||
Bermuda | 20,203 | 26,613 | 9,439 | 13,748 | ||||||||||||
Ireland | (2,101 | ) | (53 | ) | (3,776 | ) | (544 | ) | ||||||||
Other | (1,051 | ) | (990 | ) | (3,109 | ) | (2,719 | ) | ||||||||
Non-deductible expenses in the U.S. | 71 | 107 | 183 | 306 | ||||||||||||
Other | (7 | ) | (8 | ) | (16 | ) | (24 | ) | ||||||||
Income tax provision (benefit) | $ | 1,701 | $ | (597 | ) | $ | 5,976 | $ | 6,719 | |||||||
Interest_Net
Interest, Net | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Interest Income (Expense), Net [Abstract] | ' | |||||||||||||||
Interest, Net | ' | |||||||||||||||
Interest, Net | ||||||||||||||||
The following table shows the components of interest, net: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities(1) | $ | 41,373 | $ | 47,682 | $ | 135,140 | $ | 147,096 | ||||||||
Hedge ineffectiveness (gains) losses | 1,474 | 93 | 1,840 | 197 | ||||||||||||
Amortization of interest rate derivatives related to deferred losses | 8,966 | 7,300 | 21,903 | 25,285 | ||||||||||||
Amortization of deferred financing fees (2) | 2,391 | 2,976 | 10,082 | 11,757 | ||||||||||||
Interest Expense | 54,204 | 58,051 | 168,965 | 184,335 | ||||||||||||
Less interest income | (103 | ) | (208 | ) | (447 | ) | (684 | ) | ||||||||
Less capitalized interest | — | — | (1,315 | ) | — | |||||||||||
Interest, net | $ | 54,101 | $ | 57,843 | $ | 167,203 | $ | 183,651 | ||||||||
(1) For the nine months ended September 30, 2013, includes the loan termination fee of $2,954 related to two ECA aircraft sold in June 2013. | ||||||||||||||||
(2) For the nine months ended September 30, 2012, includes the write-off of deferred financings fees of $2,914 related to the repayment of Term Financing No. 1. For the nine months ended September 30, 2013, includes the write-off of deferred financings fees of $3,975 related to the repayment of two ECA Financings. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
At September 30, 2013, we had commitments to acquire five aircraft during the remainder of 2013 for $256,320. |
Derivatives
Derivatives | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||
Derivatives | ' | |||||||||||||||||||||
Derivatives | ||||||||||||||||||||||
The objective of our hedging policy is to adopt a risk averse position with respect to changes in interest rates. Accordingly, we have entered into a number of interest rate derivatives to hedge the current and expected future interest rate payments on our variable rate debt. Interest rate derivatives are agreements in which a series of interest rate cash flows are exchanged with a third party over a prescribed period. The notional amount on an interest rate derivative is not exchanged. Our interest rate derivatives typically provide that we make fixed rate payments and receive floating rate payments to convert our floating rate borrowings to fixed rate obligations to better match the largely fixed rate cash flows from our investments in flight equipment. | ||||||||||||||||||||||
We held the following interest rate derivatives as of September 30, 2013: | ||||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||||
Hedged Item | Current | Effective | Maturity | Future | Floating | Fixed | Balance Sheet | Fair | ||||||||||||||
Notional | Date | Date | Maximum | Rate | Rate | Location | Value | |||||||||||||||
Amount | Notional | |||||||||||||||||||||
Amount | ||||||||||||||||||||||
Interest rate derivatives designated as cash flow hedges: | ||||||||||||||||||||||
Securitization No. 1 | $ | 222,487 | 6-Jun | 16-Jun | $ | 222,487 | 1M LIBOR | 5.78% | Fair value of | $ | 27,122 | |||||||||||
0.27% | derivative | |||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Securitization No. 2 | 499,338 | 12-Jun | 17-Jun | 499,338 | 1M LIBOR | 1.26% | Fair value of | 6,510 | ||||||||||||||
to | derivative | |||||||||||||||||||||
1.28% | liabilities | |||||||||||||||||||||
Total interest rate derivatives designated as cash flow hedges | $ | 721,825 | $ | 721,825 | $ | 33,632 | ||||||||||||||||
Interest rate derivatives not designated as cash flow hedges: | ||||||||||||||||||||||
Securitization No. 1 | 87,575 | 6-Jun | 16-Jun | 87,575 | 1M LIBOR + 0.27% | 5.78% | Fair value of derivative liabilities | 10,675 | ||||||||||||||
Total interest rate derivatives not designated as cash flow hedges | 87,575 | 87,575 | 10,675 | |||||||||||||||||||
Total interest rate derivative liabilities | $ | 809,400 | $ | 809,400 | $ | 44,307 | ||||||||||||||||
The weighted average interest pay rates of these derivatives at December 31, 2012 and September 30, 2013 were 2.91% and 3%, respectively. | ||||||||||||||||||||||
For the nine months ended September 30, 2013, the amount of loss reclassified from accumulated other comprehensive income (“OCI”) into interest expense related to net interest settlements on active interest rate derivatives was $13,717. The amount of loss expected to be reclassified from OCI into interest expense over the next 12 months related to net interest settlements on active interest rate derivatives is $16,077. | ||||||||||||||||||||||
Our interest rate derivatives involve counterparty credit risk. As of September 30, 2013, our interest rate derivatives are held with the following counterparties: JP Morgan Chase Bank NA, Citibank Canada NA, and Wells Fargo Bank NA. All of our counterparties or guarantors of these counterparties are considered investment grade (senior unsecured ratings of Baa2 or above) by Moody’s Investors Service. All are also considered investment grade (long-term foreign issuer ratings of A- or above) by Standard and Poor’s. We do not anticipate that any of these counterparties will fail to meet their obligations. | ||||||||||||||||||||||
In addition to the derivative liability above, another component of the fair value of our interest rate derivatives is accrued interest. As of September 30, 2013, accrued interest payable included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheet was $827 related to interest rate derivatives designated as cash flow hedges and $194 related to interest rate derivatives not designated as cash flow hedges. | ||||||||||||||||||||||
Following is the effect of interest rate derivatives on the statement of financial performance for the nine months ended September 30, 2013: | ||||||||||||||||||||||
Effective Portion | Ineffective Portion | |||||||||||||||||||||
Derivatives in | Amount of | Location of | Amount of | Location of | Amount of | |||||||||||||||||
ASC 815 | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | |||||||||||||||||
Cash Flow | Recognized in | Reclassified from | Reclassified from | Recognized in | Recognized in | |||||||||||||||||
Hedging | OCI on | Accumulated | Accumulated | Income on Derivative | Income on | |||||||||||||||||
Relationships | Derivative | OCI into Income | OCI into Income (b) | Derivative | ||||||||||||||||||
(a) | (c) | |||||||||||||||||||||
Interest rate derivatives | $403 | Interest expense | ($38,633) | Interest expense | ($203) | |||||||||||||||||
(a) | This represents the change in fair market value of our interest rate derivatives since year end, net of taxes, offset by the amount of actual cash paid related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013. | |||||||||||||||||||||
(b) | This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013 plus any effective amortization of net deferred interest rate derivative losses. | |||||||||||||||||||||
(c) | This represents both realized and unrealized ineffectiveness incurred during the nine months ended September 30, 2013. | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under ASC 815 | Location of Gain | Amount of Gain | ||||||||||||||||||||
or (Loss) | or (Loss) | |||||||||||||||||||||
Recognized in Income | Recognized in Income on | |||||||||||||||||||||
On Derivative | Derivative | |||||||||||||||||||||
Interest rate derivatives | Other income (expense) | $ | 3,727 | |||||||||||||||||||
On an ongoing basis, terminated swap notionals are evaluated against debt forecasts. To the extent that interest payments are deemed remote to occur, deferred gains or losses are accelerated into interest expense as applicable. | ||||||||||||||||||||||
For the nine months ended September 30, 2013, the amount of deferred net loss (including $2,027 of accelerated amortization driven by aircraft sales in 2013) reclassified from OCI into interest expense related to our terminated interest rate derivatives was $24,117. The amount of deferred net loss expected to be reclassified from OCI into interest expense over the next 12 months related to our terminated interest rate derivatives is $24,603 of which $15,908 relates to Term Financing No. 1 interest rate derivatives terminated in 2012, $1,336 relates to Term Financing No. 1 derivatives terminated in 2008, $6,030 relates to ECA Term Financings for New A330 Aircraft and $1,329 relates to other financings. | ||||||||||||||||||||||
For the nine months ended September 30, 2013, the amount of effective deferred loss reclassified from OCI into interest expense related to our undesignated active interest rate derivative was $1,168. The amount of effective deferred loss expected to be reclassified from OCI into interest expense over the next 12 months related to our undesignated active interest rate derivative under our Securitization No. 1 is $1,678. | ||||||||||||||||||||||
The following table summarizes amounts charged directly to the consolidated statement of income for the three and nine months ended September 30, 2012 and 2013, respectively, related to our interest rate derivatives: | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Hedge ineffectiveness losses | $ | 1,474 | $ | 93 | $ | 1,840 | $ | 197 | ||||||||||||||
Amortization: | ||||||||||||||||||||||
Accelerated amortization of deferred losses(1) | — | (2 | ) | — | 2,025 | |||||||||||||||||
Amortization of loss of designated interest rate derivative | — | 423 | — | 1,168 | ||||||||||||||||||
Amortization of deferred losses | 8,966 | 6,879 | 21,903 | 22,092 | ||||||||||||||||||
Total Amortization | 8,966 | 7,300 | 21,903 | 25,285 | ||||||||||||||||||
Total charged to interest expense | $ | 10,440 | $ | 7,393 | $ | 23,743 | $ | 25,482 | ||||||||||||||
Other income: | ||||||||||||||||||||||
Mark to market gains on undesignated interest rate derivatives | $ | — | $ | 855 | $ | 599 | $ | 3,727 | ||||||||||||||
Total charged to other income | $ | — | $ | 855 | $ | 599 | $ | 3,727 | ||||||||||||||
__________ | ||||||||||||||||||||||
(1) For the nine months ended September 30, 2013, represents accelerated amortization of deferred hedge losses related to two aircraft sold in June 2013. |
Other_Assets
Other Assets | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Other Assets | ' | |||||||
Other Assets | ||||||||
The following table describes the principal components of other assets on our consolidated balance sheet as of: | ||||||||
December 31, | September 30, | |||||||
2012 | 2013 | |||||||
Debt investments | $ | 40,388 | $ | — | ||||
Deferred debt issuance costs, net of amortization of $54,146 and $58,802, respectively | 55,087 | 47,103 | ||||||
Deferred federal income tax asset | 22,207 | 26,414 | ||||||
Lease incentives and lease premiums, net of amortization of $26,902 and $36,787, respectively | 62,822 | 84,860 | ||||||
Flight equipment held for sale | — | 300 | ||||||
Other assets | 6,260 | 18,565 | ||||||
Total other assets | $ | 186,764 | $ | 177,242 | ||||
Accounts_Payable_Accrued_Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities | ' | |||||||
Accounts Payable, Accrued Expenses and Other Liabilities | ||||||||
The following table describes the principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheet as of: | ||||||||
December 31, | September 30, | |||||||
2012 | 2013 | |||||||
Accounts payable and accrued expenses | $ | 21,507 | $ | 22,014 | ||||
Deferred federal income tax liability | 48,217 | 56,231 | ||||||
Accrued interest payable | 38,273 | 48,638 | ||||||
Lease discounts, net of amortization of $7,328 and $5,528 respectively | 596 | 8,009 | ||||||
Total accounts payable, accrued expenses and other liabilities | $ | 108,593 | $ | 134,892 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Equity [Abstract] | ' | |||||||
Accumulated Other Comprehensive Loss | ' | |||||||
Accumulated Other Comprehensive Loss | ||||||||
The following table describes the principal components of accumulated other comprehensive loss recorded on our consolidated balance sheet as of: | ||||||||
Changes in accumulated other comprehensive loss by component(a) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2013 | 2013 | |||||||
Beginning balance | $ | (96,352 | ) | $ | (126,290 | ) | ||
Amount recognized in other comprehensive loss on derivatives, net of tax benefit of $43 and tax expense of $21, respectively | (2,556 | ) | 403 | |||||
Amounts reclassified from accumulated other comprehensive loss into income, net of tax expense of $121 and $368, respectively | 11,654 | 38,633 | ||||||
Net current period other comprehensive income | 9,098 | 39,036 | ||||||
Ending balance | $ | (87,254 | ) | $ | (87,254 | ) | ||
(a) All amounts are net of tax. Amounts in parentheses indicate debits. | ||||||||
Reclassifications from accumulated other comprehensive loss(a) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2013 | 2013 | |||||||
Losses on cash flow hedges | ||||||||
Amount of effective amortization of net deferred interest rate derivative losses(b) | $ | 7,300 | $ | 25,285 | ||||
Effective amount of net settlements of interest rate derivatives, net of tax expense of $121 and $368, respectively(b) | 4,354 | 13,348 | ||||||
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | $ | 11,654 | $ | 38,633 | ||||
(a) All amounts are net of tax. | ||||||||
(b) Included in interest expense. | ||||||||
(c) This represents the effective amounts of actual cash paid related to the net settlements of the interest rate derivatives plus any effective amortization of net deferred interest rate derivative losses (see Note 13. - Derivatives). |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Organization and Basis of Presentation | ' |
Aircastle is a holding company that conducts its business through subsidiaries. Aircastle directly or indirectly owns all of the outstanding common shares of its subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“US GAAP”). We operate in a single segment. | |
The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with US GAAP have been omitted in accordance with the rules and regulations of the SEC; however, we believe that the disclosures are adequate to make information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
Principles of Consolidation | ' |
The consolidated financial statements include the accounts of Aircastle and all of its subsidiaries. Aircastle consolidates eight Variable Interest Entities (“VIEs”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. | |
We consolidate VIEs in which we have determined that we are the primary beneficiary. We use judgment when deciding (a) whether an entity is subject to consolidation as a VIE, (b) who the variable interest holders are, (c) the potential expected losses and residual returns of the variable interest holders, and (d) which variable interest holder is the primary beneficiary. When determining which enterprise is the primary beneficiary, we consider (1) the entity’s purpose and design, (2) which variable interest holder has the power to direct the activities that most significantly impact the entity’s economic performance, and (3) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. When certain events occur, we reconsider whether we are the primary beneficiary of VIEs. We do not reconsider whether we are a primary beneficiary solely because of operating losses incurred by an entity. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes that the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||
Fair value assets and liabilities measured on recurring basis | ' | |||||||||||||||||
The following tables set forth our financial assets and liabilities as of December 31, 2012 and September 30, 2013 that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. | ||||||||||||||||||
Fair Value Measurements at December 31, 2012 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of December 31, 2012 | Quoted Prices | Significant | Significant | Valuation | ||||||||||||||
In Active | Other | Unobservable | Technique | |||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||
Assets | (Level 2) | |||||||||||||||||
(Level 1) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 618,217 | $ | 618,217 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 111,942 | 111,942 | — | — | Market | |||||||||||||
Debt investments | 40,388 | — | — | 40,388 | Income | |||||||||||||
Total | $ | 770,547 | $ | 730,159 | $ | — | $ | 40,388 | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 61,978 | $ | — | $ | 61,978 | $ | — | Income | |||||||||
Fair Value Measurements at September 30, 2013 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of September 30, 2013 | Quoted Prices | Significant | Significant | Valuation | ||||||||||||||
In Active | Other | Unobservable | Technique | |||||||||||||||
Markets for | Observable | Inputs | ||||||||||||||||
Identical | Inputs | (Level 3) | ||||||||||||||||
Assets | (Level 2) | |||||||||||||||||
(Level 1) | ||||||||||||||||||
Assets: | ||||||||||||||||||
Cash and cash equivalents | $ | 238,150 | $ | 238,150 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 191,843 | 191,843 | — | — | Market | |||||||||||||
Total | $ | 429,993 | $ | 429,993 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 44,307 | $ | — | $ | 44,307 | $ | — | Income | |||||||||
Fair value assets on a recurring basis using significant unobservable inputs | ' | |||||||||||||||||
Assets | ||||||||||||||||||
Debt Investments | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | — | $ | 40,388 | ||||||||||
Total gains/(losses), net: | ||||||||||||||||||
Included in other revenue | — | — | — | 1,613 | ||||||||||||||
Settlements | — | — | — | (42,001 | ) | |||||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — | ||||||||||
Fair value liabilities on a recurring basis using significant unobservable inputs | ' | |||||||||||||||||
Liabilities | ||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||
Balance at beginning of period | $ | — | $ | — | $ | (56,229 | ) | $ | — | |||||||||
Total gains/(losses), net: | ||||||||||||||||||
Included in other income (expense) | — | — | 599 | — | ||||||||||||||
Included in interest expense | — | — | 73 | — | ||||||||||||||
Included in other comprehensive income | — | — | 4,800 | — | ||||||||||||||
Settlements | — | — | 50,757 | — | ||||||||||||||
Balance at end of period | $ | — | $ | — | $ | — | $ | — | ||||||||||
Carrying amounts and fair values of financial instruments | ' | |||||||||||||||||
The carrying amounts and fair values of our financial instruments at December 31, 2012 and September 30, 2013 are as follows: | ||||||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
of Asset | of Asset | of Asset | of Asset | |||||||||||||||
(Liability) | (Liability) | (Liability) | (Liability) | |||||||||||||||
Securitizations and term debt financings | $ | (1,082,368 | ) | $ | (962,960 | ) | $ | (892,272 | ) | $ | (831,391 | ) | ||||||
ECA term financings | (652,916 | ) | (671,966 | ) | (504,419 | ) | (522,478 | ) | ||||||||||
Bank financings | (112,750 | ) | (116,272 | ) | (184,427 | ) | (189,094 | ) | ||||||||||
Senior Notes | (1,750,642 | ) | (1,905,565 | ) | (1,750,556 | ) | (1,899,575 | ) |
Lease_Rental_Revenues_and_Flig1
Lease Rental Revenues and Flight Equipment Held for Lease (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Leases [Abstract] | ' | |||||||||||||||||||
Annual future minimum lease rentals receivable | ' | |||||||||||||||||||
Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at September 30, 2013 were as follows: | ||||||||||||||||||||
Year Ending December 31, | Amount | |||||||||||||||||||
Remainder of 2013 | $ | 166,891 | ||||||||||||||||||
2014 | 620,543 | |||||||||||||||||||
2015 | 554,155 | |||||||||||||||||||
2016 | 483,676 | |||||||||||||||||||
2017 | 354,261 | |||||||||||||||||||
Thereafter | 998,948 | |||||||||||||||||||
Total | $ | 3,178,474 | ||||||||||||||||||
Geographic concentration of lease rental revenue earnings | ' | |||||||||||||||||||
Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: | ||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||
Region | 2012 | 2013 | 2012 | 2013 | ||||||||||||||||
Europe | 37 | % | 33 | % | 40 | % | 33 | % | ||||||||||||
Asia and Pacific | 33 | % | 38 | % | 30 | % | 38 | % | ||||||||||||
North America | 12 | % | 10 | % | 12 | % | 9 | % | ||||||||||||
South America | 7 | % | 9 | % | 7 | % | 9 | % | ||||||||||||
Middle East and Africa | 11 | % | 10 | % | 11 | % | 11 | % | ||||||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||||||
Revenue attributable to individual countries | ' | |||||||||||||||||||
The following table sets forth revenue attributable to individual countries representing at least 10% of total revenue (including maintenance revenue) based on each lessee’s principal place of business: | ||||||||||||||||||||
Three Months Ended September 30, | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
Country | Revenue | Percent of | Number | Revenue | Percent of | Number | ||||||||||||||
Total | of | Total | of | |||||||||||||||||
Revenue | Lessees | Revenue | Lessees | |||||||||||||||||
China(1) | $ | 19,303 | 11 | % | 4 | $ | — | — | % | — | ||||||||||
United States(1) | 17,685 | 10 | % | 6 | — | — | % | — | ||||||||||||
Russia(1) | 17,472 | 10 | % | 8 | — | — | % | — | ||||||||||||
United Kingdom(2) | — | — | % | — | 16,293 | 10 | % | 2 | ||||||||||||
(1) Total revenue was less than 10% for the three months ended September 30, 2013. | ||||||||||||||||||||
(2) Total revenue includes $12,056 of maintenance revenue and $875 of other revenue related to an agreed upon lease termination prior to delivery date. | ||||||||||||||||||||
Nine Months Ended September 30, | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
Country | Revenue | Percent of | Number | Revenue | Percent of | Number | ||||||||||||||
Total | of | Total | of | |||||||||||||||||
Revenue | Lessees | Revenue | Lessees | |||||||||||||||||
China | $ | 56,160 | 11 | % | 4 | $ | 49,148 | 10 | % | 4 | ||||||||||
United States(1) | 61,366 | 12 | % | 6 | — | — | % | — | ||||||||||||
Russia(1) | 50,280 | 10 | % | 8 | — | — | % | — | ||||||||||||
_______________ | ||||||||||||||||||||
(1) Total revenue was less than 10% for the nine months ended September 30, 2013. | ||||||||||||||||||||
The following table sets forth net book value of flight equipment (includes net book value of flight equipment held for lease and net investment in finance leases) attributable to individual countries representing at least 10% of net book value of flight equipment based on each lessee’s principal place of business as of: | ||||||||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||||||||
Country | Net Book | Net Book | Number of | Net Book | Net Book | Number of | ||||||||||||||
Value | Value % | Lessees | Value | Value % | Lessees | |||||||||||||||
China(1) | $ | 515,194 | 11 | % | 4 | $ | — | — | % | — | ||||||||||
Geographic concentration of net book value of flight equipment held for lease | ' | |||||||||||||||||||
Geographic concentration of net book value of flight equipment (includes net book value of flight equipment held for lease, net investment in finance leases and flight equipment held for sale) was as follows: | ||||||||||||||||||||
December 31, 2012 | September 30, 2013 | |||||||||||||||||||
Region | Number | Net Book | Number | Net Book | ||||||||||||||||
of | Value % | of | Value % | |||||||||||||||||
Aircraft | Aircraft | |||||||||||||||||||
Europe | 68 | 35 | % | 67 | 33 | % | ||||||||||||||
Asia and Pacific | 50 | 34 | % | 52 | 38 | % | ||||||||||||||
North America | 17 | 10 | % | 21 | 11 | % | ||||||||||||||
South America | 14 | 8 | % | 14 | 7 | % | ||||||||||||||
Middle East and Africa | 8 | 12 | % | 7 | 11 | % | ||||||||||||||
Off-lease | 2 | (1) | 1 | % | — | — | % | |||||||||||||
Total | 159 | 100 | % | 161 | 100 | % | ||||||||||||||
_______________ | ||||||||||||||||||||
-1 | Includes one Boeing 767-300ER that was sold in the first quarter of 2013 and one Boeing 747-400BDSF aircraft which was delivered to a lessee in the second quarter of 2013. | |||||||||||||||||||
Net_Investment_in_Finance_Leas1
Net Investment in Finance Leases (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Receivables [Abstract] | ' | ||||
Components Of Investment In Finance Leases | ' | ||||
The following table lists the components of our net investment in finance leases at September 30, 2013: | |||||
Amount | |||||
Total lease payments to be received | $ | 144,341 | |||
Less: Unearned income | (66,795 | ) | |||
Estimated residual values of leased flight equipment (unguaranteed) | 70,459 | ||||
Net investment in finance leases | $ | 148,005 | |||
Schedule of Future Minimum Lease Payments for Capital Leases | ' | ||||
At September 30, 2013, minimum future lease payments on finance leases are as follows: | |||||
Year Ending December 31, | Amount | ||||
Remainder of 2013 | $ | 7,129 | |||
2014 | 27,042 | ||||
2015 | 27,042 | ||||
2016 | 27,042 | ||||
2017 | 26,127 | ||||
Thereafter | 29,959 | ||||
Total | $ | 144,341 | |||
Secured_and_Unsecured_Debt_Fin1
Secured and Unsecured Debt Financings (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Outstanding amounts of secured and unsecured term debt financings | ' | |||||||||||||
The following securitizations include liquidity facility commitments described in the table below: | ||||||||||||||
Available Liquidity | ||||||||||||||
Facility | Liquidity Facility Provider | December 31, | September 30, | Unused | Interest Rate | |||||||||
2012 | 2013 | Fee | on any Advances | |||||||||||
Securitization No. 1 | Crédit Agricole Corporate and Investment Bank | $ | 42,000 | $ | 42,000 | 0.45% | 1M Libor + 1.00 | |||||||
Securitization No. 2 | HSH Nordbank AG | 65,000 | 65,000 | 0.50% | 1M Libor + 0.75 | |||||||||
The outstanding amounts of our secured and unsecured term debt financings were as follows: | ||||||||||||||
At December 31, 2012 | At 9/30/2013 | |||||||||||||
Debt Obligation | Outstanding | Outstanding | Interest Rate(1) | Final Stated | ||||||||||
Borrowings | Borrowings | Maturity(2) | ||||||||||||
Secured Debt Financings: | ||||||||||||||
Securitization No. 1 | $ | 309,505 | $ | 239,221 | 0.45% | 6/20/31 | ||||||||
Securitization No. 2 | 772,863 | 653,051 | 0.49% | 6/14/37 | ||||||||||
ECA Term Financings | 652,916 | 504,419 | 3.02% to 3.96% | 12/3/21 to 11/30/24 | ||||||||||
Bank Financings | 112,750 | 184,427 | 1.08% to 4.57% | 09/15/15 to 02/13/20 | ||||||||||
Total secured debt financings | 1,848,034 | 1,581,118 | ||||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2017 | 500,000 | 500,000 | 6.75% | 4/15/17 | ||||||||||
Senior Notes due 2018 | 450,642 | 450,556 | 9.75% | 8/1/18 | ||||||||||
Senior Notes due 2019 | 500,000 | 500,000 | 6.25% | 12/1/19 | ||||||||||
Senior Notes due 2020 | 300,000 | 300,000 | 7.63% | 4/15/20 | ||||||||||
2013 Revolving Credit Facility | — | — | N/A | 8/2/16 | ||||||||||
Total unsecured debt financings | 1,750,642 | 1,750,556 | ||||||||||||
Total secured and unsecured debt financings | $ | 3,598,676 | $ | 3,331,674 | ||||||||||
-1 | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 1, Securitization No. 2 and one of our Bank Financings. All other financings have a fixed rate. | |||||||||||||
-2 | For Securitizations No. 1 and No. 2, all cash flows available after expenses and interest are applied to debt amortization. |
Dividends_Tables
Dividends (Tables) | 9 Months Ended | |||||||||||
Sep. 30, 2013 | ||||||||||||
Dividends [Abstract] | ' | |||||||||||
Quarterly dividends declared by board of directors | ' | |||||||||||
The following table sets forth the quarterly dividends declared by our board of directors for the periods covered in this report: | ||||||||||||
Declaration Date | Dividend | Aggregate | Record Date | Payment Date | ||||||||
per Common | Dividend | |||||||||||
Share | Amount | |||||||||||
February 17, 2012 | $ | 0.15 | $ | 10,865 | February 29, 2012 | March 15, 2012 | ||||||
2-May-12 | $ | 0.15 | $ | 10,847 | May 31, 2012 | June 15, 2012 | ||||||
1-Aug-12 | $ | 0.15 | $ | 10,464 | August 31, 2012 | September 14, 2012 | ||||||
5-Nov-12 | $ | 0.165 | $ | 11,493 | November 30, 2012 | December 14, 2012 | ||||||
18-Feb-13 | $ | 0.165 | $ | 11,268 | March 4, 2013 | March 15, 2013 | ||||||
1-May-13 | $ | 0.165 | $ | 11,297 | May 31, 2013 | June 14, 2013 | ||||||
2-Aug-13 | $ | 0.165 | $ | 13,330 | August 30, 2013 | September 13, 2013 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Allocation of distributed and undistributed earnings to both common shares and restricted common shares | ' | |||||||||||||||
In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period. Because the holders of the participating restricted common shares were not contractually required to share in the Company’s losses, in applying the two-class method to compute basic and diluted net loss per common share, no allocation to restricted common shares was made for the three months ended September 30, 2012 and 2013 and the nine months ended September 30, 2013. | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Weighted-average shares: | ||||||||||||||||
Common shares outstanding | 70,349,265 | 78,544,380 | 71,248,765 | 71,462,264 | ||||||||||||
Restricted common shares | 571,326 | 669,489 | 596,749 | 562,612 | ||||||||||||
Total weighted-average shares | 70,920,591 | 79,213,869 | 71,845,514 | 72,024,876 | ||||||||||||
Percentage of weighted-average shares: | ||||||||||||||||
Common shares outstanding | 99.19 | % | 99.15 | % | 99.17 | % | 99.22 | % | ||||||||
Restricted common shares | 0.81 | % | 0.85 | % | 0.83 | % | 0.78 | % | ||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | ||||||||
Basic and Diluted earnings per share | ' | |||||||||||||||
The calculations of both basic and diluted earnings per share are as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Earnings (loss) per share – Basic: | ||||||||||||||||
Net income (loss) | $ | (45,847 | ) | $ | (74,558 | ) | $ | 3,079 | $ | (18,640 | ) | |||||
Less: Distributed and undistributed earnings allocated to restricted common shares (a) | — | — | (25 | ) | — | |||||||||||
Earnings (loss) available to common shareholders – Basic | $ | (45,847 | ) | $ | (74,558 | ) | $ | 3,054 | $ | (18,640 | ) | |||||
Weighted-average common shares outstanding – Basic | 70,349,265 | 78,544,380 | 71,248,765 | 71,462,264 | ||||||||||||
Earnings (loss) per common share – Basic | $ | (0.65 | ) | $ | (0.95 | ) | $ | 0.04 | $ | (0.26 | ) | |||||
Earnings (loss) per share – Diluted: | ||||||||||||||||
Net income (loss) | $ | (45,847 | ) | $ | (74,558 | ) | $ | 3,079 | $ | (18,640 | ) | |||||
Less: Distributed and undistributed earnings allocated to restricted common shares(a) | — | — | (25 | ) | — | |||||||||||
Earnings (loss) available to common shareholders – Diluted | $ | (45,847 | ) | $ | (74,558 | ) | $ | 3,054 | $ | (18,640 | ) | |||||
Weighted-average common shares outstanding – Basic | 70,349,265 | 78,544,380 | 71,248,765 | 71,462,264 | ||||||||||||
Effect of dilutive shares(b) | — | — | — | — | ||||||||||||
Weighted-average common shares outstanding – Diluted | 70,349,265 | 78,544,380 | 71,248,765 | 71,462,264 | ||||||||||||
Earnings (loss) per common share – Diluted | $ | (0.65 | ) | $ | (0.95 | ) | $ | 0.04 | $ | (0.26 | ) | |||||
(a) | For the nine months ended September 30, 2012, distributed and undistributed earnings to restricted shares is 0.83% of net income. The amount of restricted share forfeitures for all periods present is immaterial to the allocation of distributed and undistributed earnings. | |||||||||||||||
(b) | For the three and nine months ended September 30, 2012 and 2013, we had no dilutive shares. |
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||
Sources of income from continuing operations before income taxes | ' | |||||||||||||||
The sources of income (loss) from continuing operations before income taxes for the three and nine months ended September 30, 2012 and 2013 were as follows: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
U.S. operations | $ | 572 | $ | 488 | $ | 1,253 | $ | 1,684 | ||||||||
Non-U.S. operations | (44,718 | ) | (75,643 | ) | 7,802 | (13,605 | ) | |||||||||
Total | $ | (44,146 | ) | $ | (75,155 | ) | $ | 9,055 | $ | (11,921 | ) | |||||
Analysis of effective income tax rate for continuing operations | ' | |||||||||||||||
Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income consisted of the following: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Notional U.S. federal income tax expense (benefit) at the statutory rate | $ | (15,451 | ) | $ | (26,305 | ) | $ | 3,169 | $ | (4,173 | ) | |||||
U.S. state and local income tax, net | 37 | 39 | 86 | 125 | ||||||||||||
Non-U.S. operations: | ||||||||||||||||
Bermuda | 20,203 | 26,613 | 9,439 | 13,748 | ||||||||||||
Ireland | (2,101 | ) | (53 | ) | (3,776 | ) | (544 | ) | ||||||||
Other | (1,051 | ) | (990 | ) | (3,109 | ) | (2,719 | ) | ||||||||
Non-deductible expenses in the U.S. | 71 | 107 | 183 | 306 | ||||||||||||
Other | (7 | ) | (8 | ) | (16 | ) | (24 | ) | ||||||||
Income tax provision (benefit) | $ | 1,701 | $ | (597 | ) | $ | 5,976 | $ | 6,719 | |||||||
Interest_Net_Tables
Interest, Net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Interest Income (Expense), Net [Abstract] | ' | |||||||||||||||
Components of Interest | ' | |||||||||||||||
The following table shows the components of interest, net: | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities(1) | $ | 41,373 | $ | 47,682 | $ | 135,140 | $ | 147,096 | ||||||||
Hedge ineffectiveness (gains) losses | 1,474 | 93 | 1,840 | 197 | ||||||||||||
Amortization of interest rate derivatives related to deferred losses | 8,966 | 7,300 | 21,903 | 25,285 | ||||||||||||
Amortization of deferred financing fees (2) | 2,391 | 2,976 | 10,082 | 11,757 | ||||||||||||
Interest Expense | 54,204 | 58,051 | 168,965 | 184,335 | ||||||||||||
Less interest income | (103 | ) | (208 | ) | (447 | ) | (684 | ) | ||||||||
Less capitalized interest | — | — | (1,315 | ) | — | |||||||||||
Interest, net | $ | 54,101 | $ | 57,843 | $ | 167,203 | $ | 183,651 | ||||||||
(1) For the nine months ended September 30, 2013, includes the loan termination fee of $2,954 related to two ECA aircraft sold in June 2013. | ||||||||||||||||
(2) For the nine months ended September 30, 2012, includes the write-off of deferred financings fees of $2,914 related to the repayment of Term Financing No. 1. For the nine months ended September 30, 2013, includes the write-off of deferred financings fees of $3,975 related to the repayment of two ECA Financings. |
Derivatives_Tables
Derivatives (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||
Interest rate derivatives | ' | |||||||||||||||||||||
We held the following interest rate derivatives as of September 30, 2013: | ||||||||||||||||||||||
Derivative Liabilities | ||||||||||||||||||||||
Hedged Item | Current | Effective | Maturity | Future | Floating | Fixed | Balance Sheet | Fair | ||||||||||||||
Notional | Date | Date | Maximum | Rate | Rate | Location | Value | |||||||||||||||
Amount | Notional | |||||||||||||||||||||
Amount | ||||||||||||||||||||||
Interest rate derivatives designated as cash flow hedges: | ||||||||||||||||||||||
Securitization No. 1 | $ | 222,487 | 6-Jun | 16-Jun | $ | 222,487 | 1M LIBOR | 5.78% | Fair value of | $ | 27,122 | |||||||||||
0.27% | derivative | |||||||||||||||||||||
liabilities | ||||||||||||||||||||||
Securitization No. 2 | 499,338 | 12-Jun | 17-Jun | 499,338 | 1M LIBOR | 1.26% | Fair value of | 6,510 | ||||||||||||||
to | derivative | |||||||||||||||||||||
1.28% | liabilities | |||||||||||||||||||||
Total interest rate derivatives designated as cash flow hedges | $ | 721,825 | $ | 721,825 | $ | 33,632 | ||||||||||||||||
Interest rate derivatives not designated as cash flow hedges: | ||||||||||||||||||||||
Securitization No. 1 | 87,575 | 6-Jun | 16-Jun | 87,575 | 1M LIBOR + 0.27% | 5.78% | Fair value of derivative liabilities | 10,675 | ||||||||||||||
Total interest rate derivatives not designated as cash flow hedges | 87,575 | 87,575 | 10,675 | |||||||||||||||||||
Total interest rate derivative liabilities | $ | 809,400 | $ | 809,400 | $ | 44,307 | ||||||||||||||||
Consolidated statement of income related to interest rate derivative contracts | ' | |||||||||||||||||||||
Following is the effect of interest rate derivatives on the statement of financial performance for the nine months ended September 30, 2013: | ||||||||||||||||||||||
Effective Portion | Ineffective Portion | |||||||||||||||||||||
Derivatives in | Amount of | Location of | Amount of | Location of | Amount of | |||||||||||||||||
ASC 815 | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | Gain or (Loss) | |||||||||||||||||
Cash Flow | Recognized in | Reclassified from | Reclassified from | Recognized in | Recognized in | |||||||||||||||||
Hedging | OCI on | Accumulated | Accumulated | Income on Derivative | Income on | |||||||||||||||||
Relationships | Derivative | OCI into Income | OCI into Income (b) | Derivative | ||||||||||||||||||
(a) | (c) | |||||||||||||||||||||
Interest rate derivatives | $403 | Interest expense | ($38,633) | Interest expense | ($203) | |||||||||||||||||
(a) | This represents the change in fair market value of our interest rate derivatives since year end, net of taxes, offset by the amount of actual cash paid related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013. | |||||||||||||||||||||
(b) | This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013 plus any effective amortization of net deferred interest rate derivative losses. | |||||||||||||||||||||
(c) | This represents both realized and unrealized ineffectiveness incurred during the nine months ended September 30, 2013. | |||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under ASC 815 | Location of Gain | Amount of Gain | ||||||||||||||||||||
or (Loss) | or (Loss) | |||||||||||||||||||||
Recognized in Income | Recognized in Income on | |||||||||||||||||||||
On Derivative | Derivative | |||||||||||||||||||||
Interest rate derivatives | Other income (expense) | $ | 3,727 | |||||||||||||||||||
The following table summarizes amounts charged directly to the consolidated statement of income for the three and nine months ended September 30, 2012 and 2013, respectively, related to our interest rate derivatives: | ||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2012 | 2013 | 2012 | 2013 | |||||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Hedge ineffectiveness losses | $ | 1,474 | $ | 93 | $ | 1,840 | $ | 197 | ||||||||||||||
Amortization: | ||||||||||||||||||||||
Accelerated amortization of deferred losses(1) | — | (2 | ) | — | 2,025 | |||||||||||||||||
Amortization of loss of designated interest rate derivative | — | 423 | — | 1,168 | ||||||||||||||||||
Amortization of deferred losses | 8,966 | 6,879 | 21,903 | 22,092 | ||||||||||||||||||
Total Amortization | 8,966 | 7,300 | 21,903 | 25,285 | ||||||||||||||||||
Total charged to interest expense | $ | 10,440 | $ | 7,393 | $ | 23,743 | $ | 25,482 | ||||||||||||||
Other income: | ||||||||||||||||||||||
Mark to market gains on undesignated interest rate derivatives | $ | — | $ | 855 | $ | 599 | $ | 3,727 | ||||||||||||||
Total charged to other income | $ | — | $ | 855 | $ | 599 | $ | 3,727 | ||||||||||||||
__________ | ||||||||||||||||||||||
(1) For the nine months ended September 30, 2013, represents accelerated amortization of deferred hedge losses related to two aircraft sold in June 2013. |
Other_Assets_Tables
Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | |||||||
Principal components of other assets | ' | |||||||
The following table describes the principal components of other assets on our consolidated balance sheet as of: | ||||||||
December 31, | September 30, | |||||||
2012 | 2013 | |||||||
Debt investments | $ | 40,388 | $ | — | ||||
Deferred debt issuance costs, net of amortization of $54,146 and $58,802, respectively | 55,087 | 47,103 | ||||||
Deferred federal income tax asset | 22,207 | 26,414 | ||||||
Lease incentives and lease premiums, net of amortization of $26,902 and $36,787, respectively | 62,822 | 84,860 | ||||||
Flight equipment held for sale | — | 300 | ||||||
Other assets | 6,260 | 18,565 | ||||||
Total other assets | $ | 186,764 | $ | 177,242 | ||||
Accounts_Payable_Accrued_Expen1
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheet | ' | |||||||
The following table describes the principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheet as of: | ||||||||
December 31, | September 30, | |||||||
2012 | 2013 | |||||||
Accounts payable and accrued expenses | $ | 21,507 | $ | 22,014 | ||||
Deferred federal income tax liability | 48,217 | 56,231 | ||||||
Accrued interest payable | 38,273 | 48,638 | ||||||
Lease discounts, net of amortization of $7,328 and $5,528 respectively | 596 | 8,009 | ||||||
Total accounts payable, accrued expenses and other liabilities | $ | 108,593 | $ | 134,892 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Equity [Abstract] | ' | |||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | |||||||
Reclassifications from accumulated other comprehensive loss(a) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2013 | 2013 | |||||||
Losses on cash flow hedges | ||||||||
Amount of effective amortization of net deferred interest rate derivative losses(b) | $ | 7,300 | $ | 25,285 | ||||
Effective amount of net settlements of interest rate derivatives, net of tax expense of $121 and $368, respectively(b) | 4,354 | 13,348 | ||||||
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | $ | 11,654 | $ | 38,633 | ||||
(a) All amounts are net of tax. | ||||||||
(b) Included in interest expense. | ||||||||
(c) This represents the effective amounts of actual cash paid related to the net settlements of the interest rate derivatives plus any effective amortization of net deferred interest rate derivative losses (see Note 13. - Derivatives). | ||||||||
The following table describes the principal components of accumulated other comprehensive loss recorded on our consolidated balance sheet as of: | ||||||||
Changes in accumulated other comprehensive loss by component(a) | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
2013 | 2013 | |||||||
Beginning balance | $ | (96,352 | ) | $ | (126,290 | ) | ||
Amount recognized in other comprehensive loss on derivatives, net of tax benefit of $43 and tax expense of $21, respectively | (2,556 | ) | 403 | |||||
Amounts reclassified from accumulated other comprehensive loss into income, net of tax expense of $121 and $368, respectively | 11,654 | 38,633 | ||||||
Net current period other comprehensive income | 9,098 | 39,036 | ||||||
Ending balance | $ | (87,254 | ) | $ | (87,254 | ) | ||
(a) All amounts are net of tax. Amounts in parentheses indicate debits. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) (Variable Interest Entity, Primary Beneficiary) | 9 Months Ended |
Sep. 30, 2013 | |
Entity | |
Variable Interest Entity, Primary Beneficiary | ' |
Variable Interest Entity [Line Items] | ' |
Number of Consolidated Variable Interest Entities | 8 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Debt investments | $0 | $40,388 |
Liabilities: | ' | ' |
Derivative liabilities | 44,307 | 61,978 |
Recurring | Estimate of Fair Value Measurement | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 238,150 | 618,217 |
Restricted cash and cash equivalents | 191,843 | 111,942 |
Debt investments | ' | 40,388 |
Total | 429,993 | 770,547 |
Liabilities: | ' | ' |
Derivative liabilities | 44,307 | 61,978 |
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 238,150 | 618,217 |
Restricted cash and cash equivalents | 191,843 | 111,942 |
Debt investments | ' | 0 |
Total | 429,993 | 730,159 |
Liabilities: | ' | ' |
Derivative liabilities | 0 | 0 |
Recurring | Significant Other Observable Inputs (Level 2) | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Debt investments | ' | 0 |
Total | 0 | 0 |
Liabilities: | ' | ' |
Derivative liabilities | 44,307 | 61,978 |
Recurring | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Debt investments | ' | 40,388 |
Total | 0 | 40,388 |
Liabilities: | ' | ' |
Derivative liabilities | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Recurring, Available-for-sale Securities, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Recurring | Available-for-sale Securities | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $0 | $0 | $40,388 | $0 |
Total gains/(losses), net: | ' | ' | ' | ' |
Included in other revenue | 0 | 0 | 1,613 | 0 |
Settlements | 0 | 0 | -42,001 | 0 |
Balance at end of period | $0 | $0 | $0 | $0 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 2) (Recurring, Derivative Liabilities, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Balance at beginning of period | $0 | $0 | $0 | ($56,229) |
Included in other comprehensive income | 0 | 0 | 0 | 4,800 |
Settlements | 0 | 0 | 0 | 50,757 |
Balance at end of period | 0 | 0 | 0 | 0 |
Other Income | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Included in other income (expense) and interest expense | 0 | 0 | 0 | 599 |
Interest Expense | ' | ' | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' | ' | ' |
Included in other income (expense) and interest expense | $0 | $0 | $0 | $73 |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details 3) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Secured Debt | Significant Other Observable Inputs (Level 2) | Securitizations and term debt financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | ($831,391) | ' |
Secured Debt | Significant Other Observable Inputs (Level 2) | ECA term financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -522,478 | -671,966 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Bank financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -189,094 | -116,272 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Securitizations and term debt financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -892,272 | -1,082,368 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | ECA term financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -504,419 | -652,916 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Bank financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -184,427 | -112,750 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Securitizations and term debt financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | ' | -962,960 |
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Level 1) | Senior Notes | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -1,899,575 | -1,905,565 |
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Level 1) | Reported Value Measurement | Senior Notes | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | ($1,750,556) | ($1,750,642) |
Fair_Value_Measurements_Detail4
Fair Value Measurements (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2012 | Jun. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2014 |
Aircraft | Aircraft | B-747-400 | A319-100 & B 767-300ER | A319-100 & B 767-300ER | A-319-100 | B-767-300ER | B-767-300ER | B-767-300ER | B-767-300ER | B-737 Classic | McDonnell Douglas MD-11F Freighter Aircraft | B-737-700 | A-310-300F | B-767-300ER & B-737-700 & A-310-300F | A-320-200 | B-757-200 | B-757-200 & B-767-300ER | Aircraft | Aircraft | Maximum | Minimum | Forecast Scenario | Forecast Scenario | |||||
Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | |||||||||||||
McDonnell Douglas MD-11F Freighter Aircraft | McDonnell Douglas MD-11F Freighter Aircraft | |||||||||||||||||||||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Aircraft Impaired | 7 | 2 | ' | ' | ' | ' | 6 | 2 | 2 | 1 | 1 | 1 | 1 | 4 | 8 | 2 | 1 | 1 | ' | 2 | 1 | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '35 years | '25 years | ' | ' |
Increase (Decrease) in Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $900 | $4,600 |
Net Book Value | 4,938,113 | ' | ' | 4,938,113 | ' | 4,662,661 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 318,854 | ' | ' | ' | ' |
Asset impairment charges, fleet review | 78,676 | ' | 78,676 | 97,592 | 97,592 | ' | 88,647 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,945 | ' | ' | ' | ' | ' | 97,592 | ' | ' | ' | ' | ' |
Impairment of Aircraft | 106,136 | ' | 78,676 | 112,335 | 88,787 | ' | ' | ' | 6,199 | ' | 8,544 | ' | ' | ' | ' | ' | ' | ' | 67,370 | 11,306 | ' | 10,111 | ' | ' | ' | ' | ' | ' |
Maintenance Revenue | 12,932 | ' | 10,944 | 42,983 | 37,126 | ' | ' | ' | 9,019 | ' | 12,056 | ' | ' | ' | ' | ' | ' | ' | ' | 10,159 | ' | 2,447 | ' | ' | ' | ' | ' | ' |
Other revenue | $1,625 | ' | $5,695 | $11,425 | $9,341 | ' | ' | ' | $876 | ' | $875 | ' | ' | ' | ' | ' | ' | ' | ' | $1,157 | ' | ' | ' | ' | ' | ' | ' | ' |
Lease_Rental_Revenues_and_Flig2
Lease Rental Revenues and Flight Equipment Held for Lease (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Annual future minimum lease rentals receivable | ' |
Remainder of 2013 | $166,891 |
2014 | 620,543 |
2015 | 554,155 |
2016 | 483,676 |
2017 | 354,261 |
Thereafter | 998,948 |
Total | $3,178,474 |
Lease_Rental_Revenues_and_Flig3
Lease Rental Revenues and Flight Equipment Held for Lease (Details 1) (Lease Rental Revenue, Geographic Concentration Risk) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of geographic concentration | 100.00% | 100.00% | 100.00% | 100.00% |
Europe | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of geographic concentration | 33.00% | 37.00% | 33.00% | 40.00% |
Asia and Pacific | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of geographic concentration | 38.00% | 33.00% | 38.00% | 30.00% |
North America | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of geographic concentration | 10.00% | 12.00% | 9.00% | 12.00% |
South America | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of geographic concentration | 9.00% | 7.00% | 9.00% | 7.00% |
Middle East and Africa | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Percentage of geographic concentration | 10.00% | 11.00% | 11.00% | 11.00% |
Lease_Rental_Revenues_and_Flig4
Lease Rental Revenues and Flight Equipment Held for Lease (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Revenue | $161,148 | $159,547 | $475,656 | $465,413 | ||||
Maintenance revenue | 12,932 | 10,944 | 42,983 | 37,126 | ||||
Other revenue | 1,625 | 5,695 | 11,425 | 9,341 | ||||
China | ' | ' | ' | ' | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Revenue | 0 | [1] | 19,303 | [1] | 49,148 | 56,160 | ||
Number of Lessees | 0 | [1] | 4 | [1] | 4 | 4 | ||
United States | ' | ' | ' | ' | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Revenue | 0 | [1] | 17,685 | [1] | 0 | [2] | 61,366 | [2] |
Number of Lessees | 0 | [1] | 6 | [1] | 0 | [2] | 6 | [2] |
Russia | ' | ' | ' | ' | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Revenue | 0 | [1] | 17,472 | [1] | 0 | [2] | 50,280 | [2] |
Number of Lessees | 0 | [1] | 8 | [1] | 0 | [2] | 8 | [2] |
United Kingdom | ' | ' | ' | ' | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Revenue | 16,293 | [3] | 0 | [3] | ' | ' | ||
Number of Lessees | 2,000 | [3] | 0 | [3] | ' | ' | ||
Maintenance revenue | 12,056 | ' | ' | ' | ||||
Other revenue | $875 | ' | ' | ' | ||||
Geographic Concentration Risk | Total Revenue | China | ' | ' | ' | ' | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Percentage of geographic concentration | 0.00% | [1] | 11.00% | [1] | 10.00% | 11.00% | ||
Geographic Concentration Risk | Total Revenue | United States | ' | ' | ' | ' | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Percentage of geographic concentration | 0.00% | [1] | 10.00% | [1] | 0.00% | [2] | 12.00% | [2] |
Geographic Concentration Risk | Total Revenue | Russia | ' | ' | ' | ' | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Percentage of geographic concentration | 0.00% | [1] | 10.00% | [1] | 0.00% | [2] | 10.00% | [2] |
Geographic Concentration Risk | Total Revenue | United Kingdom | ' | ' | ' | ' | ||||
Revenue attributable to individual countries | ' | ' | ' | ' | ||||
Percentage of geographic concentration | 10.00% | [3] | 0.00% | [3] | ' | ' | ||
[1] | Total revenue was less than 10% for the three months ended September 30, 2013. | |||||||
[2] | Total revenue was less than 10% for the nine months ended September 30, 2013. | |||||||
[3] | Total revenue includes $12,056 of maintenance revenue and $875 of other revenue related to an agreed upon lease termination prior to delivery date. |
Lease_Rental_Revenues_and_Flig5
Lease Rental Revenues and Flight Equipment Held for Lease (Details 3) | Sep. 30, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Aircraft | Aircraft | B-767-300ER | B-747-400BDSF | Europe | Europe | Asia and Pacific | Asia and Pacific | North America | North America | South America | South America | Middle East and Africa | Middle East and Africa | Off Lease | Off Lease | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | Geographic Concentration Risk | ||
Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Aircraft | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | Net Book Value | ||||
Europe | Europe | Asia and Pacific | Asia and Pacific | North America | North America | CHINA | CHINA | South America | South America | Middle East and Africa | Middle East and Africa | Off Lease | Off Lease | ||||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Number of Aircraft | 161 | 159 | ' | ' | 67 | 68 | 52 | 50 | 21 | 17 | 14 | 14 | 7 | 8 | 0 | 2 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of geographic concentration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 33.00% | 35.00% | 38.00% | 34.00% | 11.00% | 10.00% | 0.00% | 11.00% | 7.00% | 8.00% | 11.00% | 12.00% | 0.00% | 1.00% | |
Number of Offlease Aircraft being Marketed for Lease or Sale | ' | ' | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Includes one Boeing 767-300ER that was sold in the first quarter of 2013 and one Boeing 747-400BDSF aircraft which was delivered to a lessee in the second quarter of 2013. |
Lease_Rental_Revenues_and_Flig6
Lease Rental Revenues and Flight Equipment Held for Lease (Details 4) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net Book Value | 4,938,113 | 4,662,661 |
China | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Net Book Value | 0 | 515,194 |
Number of Lessees | 0 | 4 |
Geographic Concentration Risk | Net Book Value | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 100.00% | 100.00% |
Geographic Concentration Risk | Net Book Value | China | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 0.00% | 11.00% |
Lease_Rental_Revenues_and_Flig7
Lease Rental Revenues and Flight Equipment Held for Lease (Details Textual) (USD $) | 6 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
Lessee | Lessee | Customer Group One | Customer Group One | Customer Group Two | Customer Group Two | Customer Group Two | Customer Group Two | Other Customers | Other Customers | Other Customers | Lease Rental Revenue | Lease Rental Revenue | Lease Rental Revenue | Lease Rental Revenue | Lease Rental Revenue | Lease Rental Revenue | Lease Rental Revenue | Lease Rental Revenue | Minimum | Minimum | Maintenance Payments | Maintenance Payments | |
Lessee | Lessee | Lessee | Lessee | Lessee | Lessee | Lessee | Lessee | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Lease Rental Revenue | Lease Rental Revenue | ||||||
Customer Group One | Customer Group One | Customer Group One | Customer Group One | Customer Group Two | Customer Group Two | Customer Group Two | Customer Group Two | Customer Concentration Risk | Customer Concentration Risk | ||||||||||||||
Other Customers | Other Customers | ||||||||||||||||||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Number | 1 | 1 | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of geographic concentration | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | 9.00% | 10.00% | 8.00% | 16.00% | 24.00% | 25.00% | 17.00% | 5.00% | 5.00% | ' | ' |
Percentage of lease rental revenues accounted by customers | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Lessees With 5% of Lease Rental Revenue | ' | ' | ' | ' | 3 | 4 | 4 | 3 | ' | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amounts of lease incentive liabilities recorded in the consolidated balance sheets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $25,265 | $15,587 |
Net_Investment_in_Finance_Leas2
Net Investment in Finance Leases Narrative (Details) | Sep. 30, 2013 |
Aircraft | |
GERMANY | ' |
Capital Leased Assets [Line Items] | ' |
Capital Leased Assets, Number of Units | 6 |
United States | ' |
Capital Leased Assets [Line Items] | ' |
Capital Leased Assets, Number of Units | 4 |
Capital Leased Assets, Number of Customers | 2 |
CANADA | ' |
Capital Leased Assets [Line Items] | ' |
Capital Leased Assets, Number of Units | 1 |
Net_Investment_in_Finance_Leas3
Net Investment in Finance Leases Net Investment in Finance Leases (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ' | ' |
Total lease payments to be received | $144,341 | ' |
Less: Unearned income | -66,795 | ' |
Estimated residual values of leased flight equipment (unguaranteed) | 70,459 | ' |
Net investment in finance leases | 148,005 | 119,951 |
Remainder of 2013 | 7,129 | ' |
2014 | 27,042 | ' |
2015 | 27,042 | ' |
2016 | 27,042 | ' |
2017 | 26,127 | ' |
Thereafter | 29,959 | ' |
Capital Leases, Future Minimum Payments Receivable | $144,341 | ' |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Jun. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, except Per Share data, unless otherwise specified | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | ACS Ireland VIEs | ACS Ireland VIEs | Air Knight VIEs | Air Knight VIEs | Air Knight VIEs | A-330-200 | ||
Entity | ECA Term Financings | Securitization No. 2 | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Air Knight VIEs | |||
Aircraft | Class A-1 Notes | Entity | Class E-1 Securities | ECA Term Financings | ECA Term Financings | ECA Term Financings | Variable Interest Entity, Primary Beneficiary | ||||
Subsidiary | Aircraft | Term_Loan | Term_Loan | Term_Loan | ECA Term Financings | ||||||
Aircraft | |||||||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of VIE's consolidated | ' | ' | 8 | ' | ' | 2 | ' | ' | ' | ' | ' |
Number of Aircrafts | ' | ' | 17 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Subsidiaries in Securitization No.2 | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' |
Percentage of common shares owned | ' | ' | ' | ' | ' | 95.00% | ' | ' | ' | ' | ' |
Limitation of trust risk to annual dividend | ' | ' | ' | ' | ' | $2 | ' | ' | ' | ' | ' |
Number of aircraft transferred to historical cost basis | ' | ' | ' | ' | ' | 10 | ' | ' | ' | ' | ' |
Combined assets | ' | ' | ' | ' | ' | $322,269 | ' | ' | ' | ' | ' |
Borrowings from secured financings | 1,581,118 | 1,848,034 | ' | ' | ' | ' | 72,068 | ' | ' | ' | ' |
Combined Liabilities | ' | ' | ' | ' | ' | 267,810 | ' | ' | ' | ' | ' |
Type of term loans | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 | ' |
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | '12 years | ' |
Number of new airbuses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11 |
Number of VIE ECA Loans Repaid | ' | ' | ' | ' | ' | ' | ' | 2 | 1 | ' | ' |
Number of outstanding term loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8 | ' |
Net book value of flight equipment held for lease | ' | ' | ' | ' | ' | ' | ' | ' | ' | 580,361 | ' |
Restricted Cash and Cash Equivalents | 191,843 | 111,942 | ' | 70,771 | ' | ' | ' | ' | ' | ' | ' |
Consolidated debt outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | $504,419 | ' |
Secured_and_Unsecured_Debt_Fin2
Secured and Unsecured Debt Financings (Details) (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Aug. 31, 2013 | Dec. 31, 2012 | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from secured financings | $1,581,118 | ' | $1,848,034 | |
Borrowings from unsecured financings | 1,750,556 | ' | 1,750,642 | |
Total secured and unsecured debt financings | 3,331,674 | ' | 3,598,676 | |
Line of Credit | Revolving Credit Facility | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from unsecured financings | 0 | ' | 0 | |
Securitization No. 1 | Secured Debt | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from secured financings | 239,221 | ' | 309,505 | |
Interest rate | 0.45% | [1] | ' | ' |
Securitization No. 2 | Secured Debt | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from secured financings | 653,051 | ' | 772,863 | |
Interest rate | 0.49% | [1] | ' | ' |
ECA Term Financings | Notes Payable, Other Payables | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from secured financings | 504,419 | ' | 652,916 | |
Interest rate | ' | 3.49% | ' | |
Minimum effective interest rate | 3.02% | [1] | ' | ' |
Maximum effective interest rate | 3.96% | [1] | ' | ' |
Bank Financings | Notes Payable to Banks | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from secured financings | 184,427 | ' | 112,750 | |
Interest rate | 2.58% | ' | ' | |
Minimum effective interest rate | 1.08% | [1] | ' | ' |
Maximum effective interest rate | 4.57% | [1] | ' | ' |
Senior Notes Due 2017 | Senior Notes | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from unsecured financings | 500,000 | ' | 500,000 | |
Interest rate | 6.75% | [1] | ' | ' |
Senior Notes due 2018 | Senior Notes | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from unsecured financings | 450,556 | ' | 450,642 | |
Interest rate | 9.75% | [1] | ' | ' |
Senior Notes Due 2019 | Senior Notes | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from unsecured financings | 500,000 | ' | 500,000 | |
Interest rate | 6.25% | [1] | ' | ' |
Senior Notes Due 2020 | Senior Notes | ' | ' | ' | |
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | |
Borrowings from unsecured financings | $300,000 | ' | $300,000 | |
Interest rate | 7.63% | [1] | ' | ' |
[1] | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 1, Securitization No. 2 and one of our Bank Financings. All other financings have a fixed rate. |
Secured_and_Unsecured_Debt_Fin3
Secured and Unsecured Debt Financings (Details 1) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Jun. 30, 2013 | Aug. 31, 2013 | Dec. 31, 2012 | 31-May-13 | Sep. 30, 2013 | 31-May-13 | 31-May-13 | 31-May-13 | Sep. 30, 2013 | 31-May-13 | Aug. 02, 2013 | Aug. 02, 2013 | |||
ECA Term Financings | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Notes Payable, Other Payables | Notes Payable, Other Payables | Notes Payable, Other Payables | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Notes Payable to Banks | Line of Credit | Line of Credit | |||||
Securitization No. 1 | Securitization No. 1 | Securitization No. 1 | Securitization No. 1 | Securitization No. 2 | Securitization No. 2 | Securitization No. 2 | Securitization No. 2 | ECA Term Financings | ECA Term Financings | ECA Term Financings | Bank Financings | Bank Financings | Bank Financings | Bank Financings | Bank Financings, Variable Rate | Bank Financings, Variable Rate | Bank Financings, Fixed Rate | 2012 Revolving Credit Facility | 2013 Revolving Credit Facility | ||||||
Credit Agricole Corporate And Investment Bank [Member] | Credit Agricole Corporate And Investment Bank [Member] | London Interbank Offered Rate (LIBOR) | HSH Nordbank AG [Member] | HSH Nordbank AG [Member] | London Interbank Offered Rate (LIBOR) | Term_Loan | Subsidiary | A-320-200 | loan | A-320-200 | B-737-800 | variable_loan | variable_loan | fixed_loan | Revolving Credit Facility | Revolving Credit Facility | |||||||||
Aircraft | Aircraft | Aircraft | |||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Available Liquidity | ' | ' | ' | ' | $42,000,000 | $42,000,000 | ' | ' | $65,000,000 | $65,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Unused Fee | ' | ' | ' | ' | 0.45% | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of debt instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | 4 | ' | ' | 3 | 2 | 1 | ' | ' | ||
Interest rate | ' | ' | ' | 0.45% | [1] | ' | ' | ' | 0.49% | [1] | ' | ' | ' | ' | 3.49% | ' | ' | 2.58% | ' | ' | ' | ' | ' | ' | ' |
Repayments of Long-term Debt | 430,482,000 | 783,976,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 111,693,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Loan termination fee | ' | ' | 2,954,000 | ' | ' | ' | ' | ' | ' | ' | ' | 2,954,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt instrument, fee | ' | ' | 3,975,000 | ' | ' | ' | ' | ' | ' | ' | ' | 3,825,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Debt instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 78,230,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Term debt financings assumed in asset acquisitions | 84,721,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 91,797,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of aircraft acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | 2 | 2 | ' | ' | ' | ' | ' | ||
Debt weighted average interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.36% | ' | ' | ' | ' | ' | ' | ' | ||
Line of credit facility, maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | 400,000,000 | ||
Line of credit facility, current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $335,000,000 | ' | ||
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ||
[1] | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 1, Securitization No. 2 and one of our Bank Financings. All other financings have a fixed rate. |
Dividends_Details
Dividends (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, except Per Share data, unless otherwise specified | Aug. 02, 2013 | 1-May-13 | Feb. 18, 2013 | Nov. 05, 2012 | Aug. 01, 2012 | 2-May-12 | Feb. 17, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.17 | $0.17 | $0.17 | $0.17 | $0.15 | $0.15 | $0.15 | $0.17 | $0.15 | $0.50 | $0.45 |
Aggregate Dividend Amount | $13,330 | $11,297 | $11,268 | $11,493 | $10,464 | $10,847 | $10,865 | ' | ' | ' | ' |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 9 Months Ended | 1 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Jul. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Sep. 30, 2013 |
Common Stock | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' |
Stock repurchased and retired during period (in shares) | ' | ' | ' | ' | 679,292 |
chased and retired during period | $8,579 | ' | ' | ' | ' |
Stock repurchase program, remaining authorized repurchase amount | $30,000 | ' | ' | ' | ' |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | 12,320,000 | ' |
Common shares, par value | $0.01 | $0.01 | $0.01 | ' | ' |
Shares issued, price per share | ' | ' | ' | $17 | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Weighted-average shares: | ' | ' | ' | ' |
Common shares outstanding | 78,544,380 | 70,349,265 | 71,462,264 | 71,248,765 |
Restricted common shares | 669,489 | 571,326 | 562,612 | 596,749 |
Total Weighted Average Shares | 79,213,869 | 70,920,591 | 72,024,876 | 71,845,514 |
Percentage of weighted-average shares: | ' | ' | ' | ' |
Common shares outstanding | 99.15% | 99.19% | 99.22% | 99.17% |
Restricted common shares | 0.85% | 0.81% | 0.78% | 0.83% |
Total | 100.00% | 100.00% | 100.00% | 100.00% |
Earnings_Per_Share_Details_1
Earnings Per Share (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | ||||
Earnings (loss) per share – Basic: | ' | ' | ' | ' | ||||
Net income (loss) | ($74,558) | ($45,847) | ($18,640) | $3,079 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares (a) | 0 | [1] | 0 | [1] | 0 | [1] | -25 | [1] |
Earnings (loss) available to common shareholders – Basic | -74,558 | -45,847 | -18,640 | 3,054 | ||||
Weighted-average common shares outstanding – Basic | 78,544,380 | 70,349,265 | 71,462,264 | 71,248,765 | ||||
Earnings (loss) per common share – Basic | ($0.95) | ($0.65) | ($0.26) | $0.04 | ||||
Earnings (loss) per share – Diluted: | ' | ' | ' | ' | ||||
Net income (loss) | -74,558 | -45,847 | -18,640 | 3,079 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares (a) | 0 | [1] | 0 | [1] | 0 | [1] | -25 | [1] |
Earnings (loss) available to common shareholders – Diluted | ($74,558) | ($45,847) | ($18,640) | $3,054 | ||||
Weighted-average common shares outstanding – Basic | 78,544,380 | 70,349,265 | 71,462,264 | 71,248,765 | ||||
Effect of dilutive shares(b) | 0 | [2] | 0 | [2] | 0 | [2] | 0 | [2] |
Weighted-average common shares outstanding – Diluted | 78,544,380 | 70,349,265 | 71,462,264 | 71,248,765 | ||||
Earnings (loss) per common share – Diluted | ($0.95) | ($0.65) | ($0.26) | $0.04 | ||||
[1] | For the nine months ended September 30, 2012, distributed and undistributed earnings to restricted shares is 0.83% of net income. The amount of restricted share forfeitures for all periods present is immaterial to the allocation of distributed and undistributed earnings. | |||||||
[2] | For the three and nine months ended September 30, 2012 and 2013, we had no dilutive shares. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Sources of income from continuing operations before income taxes | ' | ' | ' | ' |
U.S. operations | $488 | $572 | $1,684 | $1,253 |
Non-U.S. operations | -75,643 | -44,718 | -13,605 | 7,802 |
Income (loss) from continuing operations before income taxes | ($75,155) | ($44,146) | ($11,921) | $9,055 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Analysis of effective income tax rate for continuing operations | ' | ' | ' | ' |
Notional U.S. federal income tax expense (benefit) at the statutory rate | ($26,305) | ($15,451) | ($4,173) | $3,169 |
U.S. state and local income tax, net | 39 | 37 | 125 | 86 |
Non-deductible expenses in the U.S. | 107 | 71 | 306 | 183 |
Other | -8 | -7 | -24 | -16 |
Income tax provision (benefit) | -597 | 1,701 | 6,719 | 5,976 |
Bermuda [Member] | ' | ' | ' | ' |
Analysis of effective income tax rate for continuing operations | ' | ' | ' | ' |
Non-U.S. operations: | 26,613 | 20,203 | 13,748 | 9,439 |
Ireland [Member] | ' | ' | ' | ' |
Analysis of effective income tax rate for continuing operations | ' | ' | ' | ' |
Non-U.S. operations: | -53 | -2,101 | -544 | -3,776 |
Other [Member] | ' | ' | ' | ' |
Analysis of effective income tax rate for continuing operations | ' | ' | ' | ' |
Non-U.S. operations: | ($990) | ($1,051) | ($2,719) | ($3,109) |
Income_Taxes_Income_Taxes_Text
Income Taxes Income Taxes (Textual) (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Effective Income Tax Rate, Continuing Operations | 0.80% | -3.90% | 66.00% | -56.40% | ' |
Asset impairment charges, fleet review | $78,676 | $78,676 | ' | $97,592 | $97,592 |
Interest_Net_Details
Interest, Net (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Interest Income (Expense), Net [Abstract] | ' | ' | ' | ' |
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities(1) | $47,682 | $41,373 | $147,096 | $135,140 |
Hedge ineffectiveness (gains) losses | 93 | 1,474 | 197 | 1,840 |
Cash flow hedges reclassified into earnings | 7,300 | 8,966 | 25,285 | 21,903 |
Amortization of deferred financing costs | 2,976 | 2,391 | 11,757 | 10,082 |
Interest Expense | 58,051 | 54,204 | 184,335 | 168,965 |
Less interest income | -208 | -103 | -684 | -447 |
Less capitalized interest | 0 | 0 | 0 | -1,315 |
Interest, net | $57,843 | $54,101 | $183,651 | $167,203 |
Interest_Net_Narrative_Details
Interest, Net Narrative (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
ECA Term Financings | ECA Term Financings | Term Financing No. 1 | |
Aircraft | Term_Loan | ||
Debt Instrument [Line Items] | ' | ' | ' |
Loan termination fee | ' | $2,954 | ' |
Property, Plant and Equipment, Number of Aircraft Sold | 2 | ' | ' |
Debt instrument, fee | ' | $3,975 | $2,914 |
Debt Instrument, Number of Instruments Repurchased | ' | 2 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Aircraft |
Commitments and Contingencies Disclosure [Abstract] | ' |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 5 |
Unrecorded Unconditional Purchase Obligation | $256,320 |
Derivatives_Details
Derivatives (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Interest rate derivatives designated as cash flow hedges | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Interest Rate Contract | Interest Rate Contract | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | ||
Securitization No. 1 | Securitization No. 1 | Derivative Liabilities | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Interest rate derivatives designated as cash flow hedges | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | ||||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | Derivative Liabilities | Interest rate derivatives designated as cash flow hedges | Interest rate derivatives designated as cash flow hedges | Interest rate derivatives designated as cash flow hedges | Interest rate derivatives designated as cash flow hedges | Interest rate derivatives designated as cash flow hedges | Interest rate derivatives designated as cash flow hedges | |||||||
Securitization No. 1 | Securitization No. 2 | Securitization No. 2 | Securitization No. 2 | Derivative Liabilities | Derivative Liabilities | ||||||||||
Minimum | Maximum | Securitization No. 1 | Securitization No. 2 | ||||||||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current Notional Amount | $809,400 | ' | ' | $87,575 | ' | ' | $87,575 | ' | $721,825 | $222,487 | $499,338 | ' | ' | ' | ' |
Future Maximum Notional Amount | 809,400 | ' | ' | 87,575 | ' | ' | 87,575 | ' | 721,825 | 222,487 | 499,338 | ' | ' | ' | ' |
Floating Rate | ' | ' | ' | ' | ' | ' | '1M LIBOR + 0.27% | ' | ' | '1MÂ LIBOR + 0.27% | '1M LIBOR | ' | ' | ' | ' |
Fixed Rate | ' | ' | ' | ' | ' | ' | 5.78% | ' | ' | 5.78% | ' | 1.26% | 1.28% | ' | ' |
Derivative liabilities | $44,307 | $61,978 | ' | ' | ' | $10,675 | ' | $10,675 | $33,632 | ' | ' | ' | ' | $27,122 | $6,510 |
Derivative, Basis Spread on Variable Rate | ' | ' | 27.00% | ' | 27.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_Details_1
Derivatives (Details 1) (Interest Rate Contract, USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (b) | ' | ' | $13,717 | ' | |
Interest Expense | ' | ' | ' | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | |
Amount of Gain or (Loss) Recognized in Income on Derivative (c) | -93 | -1,474 | -197 | -1,840 | |
Not Designated as Hedging Instrument | Other income (expense) [Member] | ' | ' | ' | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | |
Amount of Gain or (Loss) Recognized in Income on Derivative (c) | ' | ' | 3,727 | ' | |
Interest rate derivatives designated as cash flow hedges | Derivatives in ASC 815 Cash Flow Hedging Relationship [Member] | ' | ' | ' | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | |
Amount of Gain or (Loss) Recognized in OCI on Derivative (a) | ' | ' | 403 | [1] | ' |
Interest rate derivatives designated as cash flow hedges | Derivatives in ASC 815 Cash Flow Hedging Relationship [Member] | Interest Expense | ' | ' | ' | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (b) | ' | ' | -38,633 | [2] | ' |
Amount of Gain or (Loss) Recognized in Income on Derivative (c) | ' | ' | ($203) | [3] | ' |
[1] | This represents the change in fair market value of our interest rate derivatives since year end, net of taxes, offset by the amount of actual cash paid related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013. | ||||
[2] | This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013 plus any effective amortization of net deferred interest rate derivative losses. | ||||
[3] | This represents both realized and unrealized ineffectiveness incurred during the nine months ended September 30, 2013. |
Derivatives_Details_2
Derivatives (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Amortization: | ' | ' | ' | ' |
Total Amortization | ($7,300) | ($8,966) | ($25,285) | ($21,903) |
Interest Expense | Interest Rate Contract | ' | ' | ' | ' |
Interest expense: | ' | ' | ' | ' |
Hedge ineffectiveness losses | 93 | 1,474 | 197 | 1,840 |
Amortization: | ' | ' | ' | ' |
Accelerated amortization of deferred losses | -2 | 0 | 2,025 | 0 |
Amortization of loss of designated interest rate derivative | 423 | 0 | 1,168 | 0 |
Amortization of deferred losses | 6,879 | 8,966 | 22,092 | 21,903 |
Total Amortization | 7,300 | 8,966 | 25,285 | 21,903 |
Total charged to interest expense | 7,393 | 10,440 | 25,482 | 23,743 |
Other income: | ' | ' | ' | ' |
Total charged to interest expense | 7,393 | 10,440 | 25,482 | 23,743 |
Other Income | Interest Rate Contract | ' | ' | ' | ' |
Amortization: | ' | ' | ' | ' |
Total charged to interest expense | 855 | 0 | 3,727 | 599 |
Other income: | ' | ' | ' | ' |
Mark to market gains on undesignated interest rate derivatives | 855 | 0 | 3,727 | 599 |
Total charged to interest expense | $855 | $0 | $3,727 | $599 |
Derivatives_Details_Textual
Derivatives (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Aircraft | Not Designated as Hedging Instrument | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Terminated Interest Rate Contract | Terminated Interest Rate Contract | Term Financing No.1 -- terminated 2012 | Term Financing No.1 -- terminated 2008 | ECA Term Financings | Other Financings | |
Interest rate derivatives designated as cash flow hedges | Not Designated as Hedging Instrument | Terminated Interest Rate Contract | Terminated Interest Rate Contract | Terminated Interest Rate Contract | Terminated Interest Rate Contract | |||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted Average Interest Pay Rate Of Derivatives | ' | ' | 3.00% | 2.91% | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | ' | $1,678 | $16,077 | ' | ' | ' | ' | ' | $15,908 | $1,336 | $6,030 | $1,329 |
Accrued interest payable interest rate cash flow hedge liability at fair value | ' | ' | ' | ' | 827 | 194 | ' | ' | ' | ' | ' | ' |
Accelerated amortization of deferred losses | ' | ' | ' | ' | ' | ' | 2,027 | ' | ' | ' | ' | ' |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (b) | ' | ' | 13,717 | ' | ' | ' | ' | 24,117 | ' | ' | ' | ' |
Interest Rate Derivatives Deferred Gain Or Loss Expected To Be Amortized In Next Twelve Months | ' | ' | ' | ' | ' | ' | ' | 24,603 | ' | ' | ' | ' |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | ' | $1,168 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Aircraft Sold With Accelerated Amortization of Hedge Losses | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other_Assets_Details
Other Assets (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Principal components of other assets | ' | ' |
Debt investments | $0 | $40,388 |
Deferred debt issuance costs, net of amortization of $54,146 and $58,802, respectively | 47,103 | 55,087 |
Deferred federal income tax asset | 26,414 | 22,207 |
Lease incentives and lease premiums, net of amortization of $26,902 and $36,787, respectively | 84,860 | 62,822 |
Flight equipment held for sale | 300 | 0 |
Other assets | 18,565 | 6,260 |
Total other assets | 177,242 | 186,764 |
Amortization of deferred debt issuance costs | 58,802 | 54,146 |
Amortization of lease incentives and lease premiums | $36,787 | $26,902 |
Accounts_Payable_Accrued_Expen2
Accounts Payable, Accrued Expenses and Other Liabilities (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accounts payable and accrued expenses | $22,014 | $21,507 |
Deferred federal income tax liability | 56,231 | 48,217 |
Accrued interest payable | 48,638 | 38,273 |
Lease discounts, net of amortization of $7,328 and $5,528 respectively | 8,009 | 596 |
Total accounts payable, accrued expenses and other liabilities | 134,892 | 108,593 |
Deferred Revenue, Leases, Accumulated Amortization | $5,528 | $7,328 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges Amortization [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges Amortization [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges, Net Settlements [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges, Net Settlements [Member] | |||||||||
Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||||
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Beginning balance | ' | ' | ($126,290) | ' | ' | ' | ($126,290) | ($96,352) | ' | ' | ' | ' | ' | ' | ||||
Amount recognized in other comprehensive loss on derivatives, net of tax benefit of $43 and tax expense of $21, respectively | ' | ' | ' | ' | ' | -2,556 | [1] | 403 | [1] | ' | ' | ' | ' | ' | ' | ' | ||
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | ' | ' | ' | ' | ' | 11,654 | [2] | 38,633 | [2] | ' | 11,654 | [2] | 38,633 | [2] | ' | ' | ' | ' |
Net current period other comprehensive income | 9,098 | 10,392 | 39,036 | 45,611 | ' | 9,098 | 39,036 | ' | ' | ' | ' | ' | ' | ' | ||||
Ending balance | -87,254 | ' | -87,254 | ' | ' | -87,254 | -87,254 | -96,352 | ' | ' | ' | ' | ' | ' | ||||
Tax Expense from Amount Recognized in Other Comprehensive Income Related to Derivatives | 78 | 37 | 389 | 465 | 21 | 43 | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Tax Expense from Amount Reclassified from Accumulated Other Comprehensive Income into Income | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 121 | 368 | ||||
Interest Expense | $58,051 | $54,204 | $184,335 | $168,965 | ' | ' | ' | ' | ' | ' | $7,300 | $25,285 | $4,354 | $13,348 | ||||
[1] | This represents the change in fair market value of our interest rate derivatives since year end, net of taxes, offset by the amount of actual cash paid related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013. | |||||||||||||||||
[2] | This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the nine months ended September 30, 2013 plus any effective amortization of net deferred interest rate derivative losses. |