Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Aircastle LTD | ' |
Entity Central Index Key | '0001362988 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 81,004,031 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $614,096 | $654,613 |
Accounts receivable | 4,437 | 2,825 |
Restricted cash and cash equivalents | 102,463 | 122,773 |
Restricted Liquidity Facility Collateral | 65,000 | 107,000 |
Flight equipment held for lease, net of accumulated depreciation of $1,430,325 and $1,450,597 | 5,679,723 | 5,044,410 |
Net investment in finance leases | 142,400 | 145,173 |
Equity Method Investments | 21,440 | 21,123 |
Other assets | 148,706 | 153,976 |
Total assets | 6,778,265 | 6,251,893 |
LIABILITIES | ' | ' |
Borrowings from secured financings (including borrowings of ACS Ireland VIEs of $152,545 and $93,938, respectively) | 1,641,727 | 1,586,835 |
Borrowings from unsecured financings | 2,650,498 | 2,150,527 |
Accounts payable, accrued expenses and other liabilities | 156,765 | 111,661 |
Lease rentals received in advance | 51,660 | 49,235 |
Liquidity facility | 65,000 | 107,000 |
Security deposits | 117,024 | 118,804 |
Maintenance payments | 446,742 | 442,432 |
Fair value of derivative liabilities | 4,765 | 39,992 |
Total liabilities | 5,134,181 | 4,606,486 |
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, 80,806,975 shares issued and outstanding at December 31, 2013; and 81,004,031 shares issued and outstanding at March 31, 2014 | 810 | 808 |
Additional paid-in capital | 1,561,508 | 1,562,106 |
Retained earnings | 147,974 | 158,398 |
Accumulated other comprehensive loss | -66,208 | -75,905 |
Total shareholders’ equity | 1,644,084 | 1,645,407 |
Total liabilities and shareholders’ equity | $6,778,265 | $6,251,893 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated depreciation on flight equipment held for lease | $1,450,597 | $1,430,325 |
Borrowings from secured financings | 1,641,727 | ' |
Common shares, par value | $0.01 | $0.01 |
Common shares, shares authorized | 250,000,000 | 250,000,000 |
Common shares, shares issued | 80,004,031 | 80,806,975 |
Common shares, shares outstanding | 80,004,031 | 80,806,975 |
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 | $93,938 | $152,545 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Revenues: | ' | ' |
Lease rental revenue | $174,335 | $156,590 |
Finance lease revenue | 3,987 | 3,884 |
Amortization of lease premiums, discounts and lease incentives | -6,591 | -7,081 |
Maintenance revenue (including contra maintenance revenue of $0 and $16,382 for the three months ended March 31, 2013 and 2014, respectively) | 3,042 | 16,866 |
Total lease revenue | 174,773 | 170,259 |
Other revenue | 1,830 | 5,930 |
Total revenues | 176,603 | 176,189 |
Operating expenses: | ' | ' |
Depreciation | 73,927 | 69,900 |
Interest, net | 64,263 | 59,152 |
Selling, general and administrative (including non-cash share based payment expense of $811 and $990 for the three months ended March 31, 2013 and 2014, respectively) | 13,944 | 13,285 |
Impairment of Aircraft | 18,263 | 6,199 |
Maintenance and other costs | 1,863 | 3,412 |
Total expenses | 172,260 | 151,948 |
Other income: | ' | ' |
Gain on sale of flight equipment | 1,110 | 1,192 |
Other | 757 | 1,215 |
Total other income | 1,867 | 2,407 |
Income from continuing operations before income taxes | 6,210 | 26,648 |
Income tax provision | 883 | 3,584 |
Income (Loss) from Equity Method Investments | 450 | 0 |
Net income | $5,777 | $23,064 |
Earnings per common share — Basic: | ' | ' |
Net income (loss) per share (in dollars per share) | $0.07 | $0.34 |
Earnings per common share — Diluted: | ' | ' |
Net income (loss) per share (in dollars per share) | $0.07 | $0.34 |
Dividends declared per share (in dollars per share) | $0.20 | $0.17 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Income Statement [Abstract] | ' | ' |
Contra maintenance revenue | $16,382 | $0 |
Maintenance Revenue | 3,042 | 16,866 |
Non-cash share based payment expense | $990 | $811 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income (loss) | $5,777 | $23,064 |
Other comprehensive income, net of tax: | ' | ' |
Net change in fair value of derivatives, net of tax expense of $118 and $804 for the three months ended March 2013 and 2014, respectively | 370 | 3,826 |
Net derivative loss reclassified into earnings | 9,327 | 8,274 |
Other comprehensive income | 9,697 | 12,100 |
Total comprehensive income | $15,474 | $35,164 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net of tax expense | $389 | $118 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Equity Method Investments | $21,440 | ' |
Net income (loss) | 5,777 | 23,064 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 73,927 | 69,900 |
Amortization of deferred financing costs | 3,420 | 2,435 |
Amortization of net lease discounts and lease incentives | 6,591 | 7,081 |
Deferred income taxes | 1,347 | 2,194 |
Non-cash share based payment expense | 990 | 811 |
Cash flow hedges reclassified into earnings | 9,327 | 8,274 |
Security deposits and maintenance payments included in earnings | -14,786 | -23,259 |
Gain on sale of flight equipment | -1,110 | -1,192 |
Impairment of Aircraft | 18,263 | 6,199 |
Other | -2,162 | -2,773 |
Changes in certain assets and liabilities: | ' | ' |
Accounts receivable | -1,496 | 1,866 |
Other assets | -1,171 | -95 |
Accounts payable, accrued expenses and other liabilities | 2,907 | 1,144 |
Lease rentals received in advance | 1,167 | -2,902 |
Net cash provided by operating activities | 102,991 | 92,747 |
Cash flows from investing activities: | ' | ' |
Acquisition and improvement of flight equipment and lease incentives | -663,038 | -4,157 |
Proceeds from sale of flight equipment | 28,018 | 19,750 |
Aircraft purchase deposits and progress payments | 3,280 | -3,869 |
Net investment in finance leases | 0 | -11,595 |
Collections on finance leases | 2,773 | 1,845 |
Payments to Acquire Interest in Subsidiaries and Affiliates | -159 | 0 |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 388 | 0 |
Principal repayments on debt investment | 0 | 42,001 |
Other | -248 | 5 |
Net cash used in investing activities | -628,986 | 43,980 |
Cash flows from financing activities: | ' | ' |
Issuance of shares net of repurchases | -2,091 | -7,940 |
Proceeds from notes and term debt financings | 803,200 | 0 |
Securitization and term debt financing repayments | -287,778 | -82,681 |
Deferred financing costs | -14,755 | -441 |
Restricted secured liquidity facility collateral | 42,000 | 0 |
Secured liquidity facility collateral | -42,000 | 0 |
Restricted cash and cash equivalents related to financing activities | 20,310 | 2,819 |
Security deposits received | 636 | 11,349 |
Security deposits returned | -4,463 | -425 |
Maintenance payments received | 41,265 | 34,142 |
Maintenance payments returned | -21,218 | -7,196 |
Payments for terminated cash flow hedges | -33,427 | 0 |
Dividends paid | -16,201 | -11,268 |
Net cash (used in) provided by financing activities | 485,478 | -61,641 |
Net increase (decrease) in cash and cash equivalents | -40,517 | 75,086 |
Cash and cash equivalents at beginning of period | 654,613 | 618,217 |
Cash and cash equivalents at end of period | 614,096 | 693,303 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for interest, net of capitalized interest | 36,089 | 37,352 |
Cash paid for income taxes | 1,467 | 344 |
Supplemental disclosures of non-cash investing activities: | ' | ' |
Purchase deposits, advance lease rentals, security deposits and maintenance payments assumed in asset acquisitions | 1,522 | 0 |
Term debt financings assumed in asset acquisitions | 39,061 | 0 |
Advance lease rentals, security deposits, and maintenance payments settled in sale of flight equipment | $3,655 | $0 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | ' |
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 acquiring, leasing, managing and selling high utility commercial jet aircraft. From time to time, we also make investments in other aviation assets, including debt investments secured by commercial jet aircraft. | |
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 one 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, 2013. | |
The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure since the balance sheet date of March 31, 2014 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 seven 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 | |
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 Financial Accounting Standards Board (“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. In March 2014, the FASB decided that the accounting for leases by lessors would basically remain unchanged from the concepts existing in current ACS 840 accounting. In addition, the FASB decided that a lessor should be precluded from recognizing selling profit and revenue at lease commencement for any sales-type or direct finance lease that does not transfer control of the underlying asset to the lessee. This requirement aligns the notion of what constitutes a sale in the lessor accounting guidance with that in the forthcoming revenue recognition standard, which evaluates whether a sale has occurred from the customer’s perspective. We anticipate that the final standard may have an effective date no earlier than 2017. We believe that when and if the proposed guidance becomes effective, it will not have a material impact on the Company’s consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
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, 2013 and March 31, 2014 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, 2013 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of December 31, 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 | $ | 654,613 | $ | 654,613 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 122,773 | 122,773 | — | — | Market | |||||||||||||
Total | $ | 777,386 | $ | 777,386 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 39,992 | $ | — | $ | 39,992 | $ | — | Income | |||||||||
Fair Value Measurements at March 31, 2014 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of March 31, 2014 | 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 | $ | 614,096 | $ | 614,096 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 102,463 | 102,463 | — | — | Market | |||||||||||||
Total | $ | 716,559 | $ | 716,559 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 4,765 | $ | — | $ | 4,765 | $ | — | 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 months ended March 31, 2013 and 2014, respectively: | ||||||||||||||||||
Assets | ||||||||||||||||||
Debt Investments | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
2013 | 2014 | |||||||||||||||||
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 | $ | — | $ | — | ||||||||||||||
For the three months ended March 31, 2013 and 2014, we had no transfers into or out of Level 3; however, we settled 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 our investment in an unconsolidated joint venture and aircraft. We account for our investment in an unconsolidated joint venture under the equity method of accounting and record impairment when its fair value is less than its carrying value. We record aircraft at fair value when we determine the carrying value may not be recoverable. Fair value measurements for aircraft in impairment tests are based on an income approach which uses Level 3 inputs, which include the Company’s assumptions and appraisal data as to future cash proceeds from leasing and selling aircraft. | ||||||||||||||||||
Aircraft Valuation | ||||||||||||||||||
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. For these two aircraft, we recorded impairment charges totaling $6,199 and recorded maintenance revenue of $9,019 and other revenue of $764 during the three months ended March 31, 2013. | ||||||||||||||||||
During the first quarter of 2014, we impaired two aircraft, one Boeing 737-400, which was returned to us as scheduled by the lessee and one Boeing 747-400 converted freighter, for which we agreed to an early lease termination with our customer. For these two aircraft, we recorded impairment charges totaling $18,263 and recorded maintenance revenue of $17,176 during the three months ended March 31, 2014. | ||||||||||||||||||
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 value of our Securitization, which contains a third party credit enhancement, is 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, 2013 and March 31, 2014 are as follows: | ||||||||||||||||||
December 31, 2013 | March 31, 2014 | |||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
of Asset | of Asset | of Asset | of Asset | |||||||||||||||
(Liability) | (Liability) | (Liability) | (Liability) | |||||||||||||||
Securitizations | $ | (828,871 | ) | $ | (779,901 | ) | $ | (560,472 | ) | $ | (526,281 | ) | ||||||
ECA term financings | (493,708 | ) | (506,227 | ) | (482,882 | ) | (494,243 | ) | ||||||||||
Bank financings | (264,256 | ) | (268,435 | ) | (598,373 | ) | (603,141 | ) | ||||||||||
Senior Notes | (2,150,527 | ) | (2,325,965 | ) | (2,650,498 | ) | (2,843,412 | ) | ||||||||||
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 | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
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 March 31, 2014 were as follows: | ||||||||||||||||||||
Year Ending December 31, | Amount | |||||||||||||||||||
Remainder of 2014 | $ | 532,533 | ||||||||||||||||||
2015 | 664,294 | |||||||||||||||||||
2016 | 577,259 | |||||||||||||||||||
2017 | 434,309 | |||||||||||||||||||
2018 | 310,517 | |||||||||||||||||||
Thereafter | 798,400 | |||||||||||||||||||
Total | $ | 3,317,312 | ||||||||||||||||||
Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
Region | 2013 | 2014 | ||||||||||||||||||
Europe | 34 | % | 29 | % | ||||||||||||||||
Asia and Pacific | 37 | % | 42 | % | ||||||||||||||||
North America | 9 | % | 10 | % | ||||||||||||||||
South America | 9 | % | 9 | % | ||||||||||||||||
Middle East and Africa | 11 | % | 10 | % | ||||||||||||||||
Total | 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 March 31, 2013, one customer accounted for 6% of lease rental revenue and two additional customers accounted for a combined 12% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. | ||||||||||||||||||||
For the three months ended March 31, 2014, one customer accounted for 6% of lease rental revenue and a second customer separately accounted for 5% 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 March 31, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Country | Revenue | Percent of | Number | Revenue | Percent of | Number | ||||||||||||||
Total | of | Total | of | |||||||||||||||||
Revenue | Lessees | Revenue | Lessees | |||||||||||||||||
China(1) | $ | 19,303 | 11 | % | 4 | $ | 21,601 | 12 | % | 4 | ||||||||||
United States(2) | 17,919 | 10 | % | 6 | — | — | % | — | ||||||||||||
(1) Total revenue for the three months ended March 31, 2014 includes $11,264 of maintenance revenue related to an agreed early lease termination. | ||||||||||||||||||||
(2) Total revenue was less than 10% for the three months ended March 31, 2014. | ||||||||||||||||||||
Geographic concentration of net book value of flight equipment (includes net book value of flight equipment held for lease and net investment in finance leases) was as follows: | ||||||||||||||||||||
December 31, 2013 | March 31, 2014 | |||||||||||||||||||
Region | Number | Net Book | Number | Net Book | ||||||||||||||||
of | Value % | of | Value % | |||||||||||||||||
Aircraft | Aircraft | |||||||||||||||||||
Europe | 64 | 30 | % | 68 | 28 | % | ||||||||||||||
Asia and Pacific | 56 | 41 | % | 53 | 38 | % | ||||||||||||||
North America | 19 | 10 | % | 21 | 9 | % | ||||||||||||||
South America | 14 | 7 | % | 15 | 14 | % | ||||||||||||||
Middle East and Africa | 7 | 11 | % | 6 | 10 | % | ||||||||||||||
Off-lease | 2 | (1) | 1 | % | 1 | (2) | 1 | % | ||||||||||||
Total | 162 | 100 | % | 164 | 100 | % | ||||||||||||||
_______________ | ||||||||||||||||||||
-1 | Consists of two Boeing 747-400 converted freighter aircraft, one of which is subject to a commitment to lease and the other is being marketed. | |||||||||||||||||||
-2 | Consists of one Boeing 747-400 converted freighter which was returned to us in the fourth quarter of 2013 which is being marketed for lease or sale. | |||||||||||||||||||
At December 31, 2013 and March 31, 2014, no country represented at least 10% of net book value of flight equipment based on each lessee’s principal place of business. | ||||||||||||||||||||
At December 31, 2013 and March 31, 2014, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $28,611 and $28,805, respectively. |
Net_Investment_in_Finance_Leas
Net Investment in Finance Leases | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Leases [Abstract] | ' | ||||
Net Investment in Finance Leases | ' | ||||
Net Investment in Finance Leases | |||||
At March 31, 2014, 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 March 31, 2014: | |||||
Amount | |||||
Total lease payments to be received | $ | 130,687 | |||
Less: Unearned income | (58,746 | ) | |||
Estimated residual values of leased flight equipment (unguaranteed) | 70,459 | ||||
Net investment in finance leases | $ | 142,400 | |||
At March 31, 2014, minimum future lease payments on finance leases are as follows: | |||||
Year Ending December 31, | Amount | ||||
Remainder of 2014 | $ | 20,281 | |||
2015 | 27,042 | ||||
2016 | 27,042 | ||||
2017 | 26,128 | ||||
2018 | 15,287 | ||||
Thereafter | 14,907 | ||||
Total | $ | 130,687 | |||
Unconsolidated_Equity_Method_I
Unconsolidated Equity Method Investment (Notes) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investments | $21,440 | ' | $21,123 |
Income (Loss) from Equity Method Investments | 450 | 0 | ' |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 388 | 0 | ' |
OTTP [Member] | Equity Method Investee [Member] | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' |
Equity Method Investments | 21,440 | ' | 21,123 |
Equity Method Investments Before Earnings | 758 | ' | ' |
Income (Loss) from Equity Method Investments | 450 | ' | ' |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | ($891) | ' | ' |
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2014 | |
Variable Interest Entities [Abstract] | ' |
Variable Interest Entities | ' |
Variable Interest Entities | |
Aircastle consolidates seven 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 15 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 Ireland and ACS Ireland 2 are collectively referred to as the “ACS Ireland VIEs”. In February 2014, we repaid the outstanding amount plus accrued interest and fees due under Securitization No. 1 and ACS Ireland became a wholly owned subsidiary of Aircastle. | |
Aircastle is the primary beneficiary of ACS Ireland 2, as we have both the power to direct the activities of the VIE that most significantly impacts the economic performance of such VIE 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 2 debt, Aircastle wholly owns ACS Bermuda 2 which has fully and unconditionally guaranteed the ACS Ireland 2 VIE 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 ACS Ireland 2. The Irish charitable trust’s risk is limited to its annual dividend of $2. At March 31, 2014, the assets of ACS Ireland 2 include seven aircraft transferred into the VIE at historical cost basis in connection with Securitization No. 2. | |
The assets of the ACS Ireland 2 as of March 31, 2014 are $192,720. The liabilities of the ACS Ireland 2, net of $40,351 Class E-1 Securities held by the Company, which is eliminated in consolidation, as of March 31, 2014 are $161,283. | |
ECA Term Financings | |
Aircastle, through various subsidiaries, each of which is owned by a charitable trust (such entities, collectively the “Air Knight VIEs”), has entered into eight 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”). 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 March 31, 2014 of $662,512 were included in our flight equipment held for lease. The consolidated debt outstanding of the Air Knight VIEs as of March 31, 2014 is $482,882. |
Secured_and_Unsecured_Debt_Fin
Secured and Unsecured Debt Financings | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
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 12/31/2013 | At 3/31/2014 | |||||||||||||
Debt Obligation | Outstanding | Outstanding | Interest Rate(1) | Final Stated | ||||||||||
Borrowings | Borrowings | Maturity(2) | ||||||||||||
Secured Debt Financings: | ||||||||||||||
Securitization No. 1(3) | $ | 225,034 | $ | — | —% | - | ||||||||
Securitization No. 2 | 603,837 | 560,472 | 0.46% | 6/14/37 | ||||||||||
ECA Term Financings | 493,708 | 482,882 | 3.02% to 3.96% | 12/3/21 to 11/30/24 | ||||||||||
Bank Financings | 264,256 | 598,373 | 1.05% to 5.09% | 09/15/15 to 04/19/25 | ||||||||||
Total secured debt financings | 1,586,835 | 1,641,727 | ||||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2017 | 500,000 | 500,000 | 6.75% | 4/15/17 | ||||||||||
Senior Notes due 2018(4) | 450,527 | 450,498 | 9.75% | 8/1/18 | ||||||||||
Senior Notes due 2018 | 400,000 | 400,000 | 4.63% | 12/5/18 | ||||||||||
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 | ||||||||||
Senior Notes due 2021 | — | 500,000 | 5.13% | 3/15/21 | ||||||||||
2014 Revolving Credit Facility(5) | — | — | N/A | 3/31/18 | ||||||||||
Total unsecured debt financings | 2,150,527 | 2,650,498 | ||||||||||||
Total secured and unsecured debt financings | $ | 3,737,362 | $ | 4,292,225 | ||||||||||
-1 | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2 and six of our Bank Financings. All other financings have a fixed rate. | |||||||||||||
-2 | For Securitization No. 2, all cash flows available after expenses and interest are applied to debt amortization. | |||||||||||||
-3 | In February 2014, we repaid the outstanding amount plus accrued interest and fees due under Securitization No. 1 and terminated the related interest rate derivative, for a total cash payment of $255,186, with proceeds from our December 2013 issuance of our Senior Notes due 2018. | |||||||||||||
-4 | Proceeds from the issuance of our Senior Notes due 2021 were used to pay-off the balance of our 9.75% Senior Notes due 2018 plus accrued interest of $10,238 and the call premium of $32,835 on April 25, 2014. | |||||||||||||
-5 | On March 31, 2014, we amended and restructured our existing $335,000 2013 Revolving Credit Facility with a new unsecured revolving credit facility (the “2014 Revolving Credit Facility”). The 2014 Revolving Credit Facility was increased to $450,000, has a term of four years and is scheduled to expire in March 2018. | |||||||||||||
The following Securitization includes a liquidity facility commitment described in the table below: | ||||||||||||||
Available Liquidity | ||||||||||||||
Facility | Liquidity Facility Provider | December 31, | March 31, | Unused | Interest Rate | |||||||||
2013 | 2014 | Fee | on any Advances | |||||||||||
Securitization No. 2 | HSH Nordbank AG | $ | 65,000 | $ | 65,000 | 0.50% | 1M Libor + 0.75 | |||||||
Secured Debt Financings: | ||||||||||||||
Securitizations | ||||||||||||||
In February 2014, we repaid the outstanding amount plus accrued interest and fees due under Securitization No.1 and terminated the related interest rate derivative, for a total cash payment of $255,186, with proceeds from our December 2013 issuance of our Senior Notes due 2018. | ||||||||||||||
Bank Financings | ||||||||||||||
In February 2014, we entered into two floating rate loans and one fixed rate loan totaling $303,200 secured by two Boeing 777-300ER aircraft and one Airbus A330-200 aircraft we acquired in 2013. In March 2014, we assumed two floating rate loans totaling $40,809 in connection with the acquisition of two Boeing 737-800 aircraft. | ||||||||||||||
We include these loan facilities in “Bank Financings”. Aircastle Limited has guaranteed the repayment of these Bank Financings. | ||||||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2021 | ||||||||||||||
On March 26, 2014, Aircastle Limited issued $500,000 aggregate principal amount of Senior Notes due 2021 (the “2021 Senior Notes”). The 2021 Senior Notes will mature on March 15, 2021 and bear interest at the rate of 5.125% per annum, payable semi-annually on March 15 and September 15 of each year, commencing on September 15, 2014. Interest will accrue on the 2021 Senior Notes from March 26, 2014. Proceeds from the issuance were used to pay-off the balance of our 9.75% Senior Notes due 2018 plus accrued interest of $10,238, and the call premium of $32,835 on April 25, 2014. | ||||||||||||||
2014 Revolving Credit Facility | ||||||||||||||
On March 31, 2014, we amended and restructured our existing $335,000 2013 Revolving Credit Facility with a new unsecured revolving credit facility (the “2014 Revolving Credit Facility”). The 2014 Revolving Credit Facility was increased to $450,000, has a term of four years and is scheduled to expire in March 2018. As of March 31, 2014, we are in compliance with all applicable covenants in all of our financings. |
Dividends
Dividends | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
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 | |||||||||||
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 | ||||||
29-Oct-13 | $ | 0.2 | $ | 16,163 | November 29, 2013 | December 13, 2013 | ||||||
21-Feb-14 | $ | 0.2 | $ | 16,201 | March 7, 2014 | March 14, 2014 | ||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Weighted-average shares: | ||||||||
Common shares outstanding | 67,896,481 | 80,387,371 | ||||||
Restricted common shares | 492,906 | 500,524 | ||||||
Total weighted-average shares | 68,389,387 | 80,887,895 | ||||||
Percentage of weighted-average shares: | ||||||||
Common shares outstanding | 99.28 | % | 99.38 | % | ||||
Restricted common shares | 0.72 | % | 0.62 | % | ||||
Total | 100 | % | 100 | % | ||||
The calculations of both basic and diluted earnings per share are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Earnings per share – Basic: | ||||||||
Net income | $ | 23,064 | $ | 5,777 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares (a) | (166 | ) | (36 | ) | ||||
Earnings available to common shareholders – Basic | $ | 22,898 | $ | 5,741 | ||||
Weighted-average common shares outstanding – Basic | 67,896,481 | 80,387,371 | ||||||
Earnings per common share – Basic | $ | 0.34 | $ | 0.07 | ||||
Earnings per share – Diluted: | ||||||||
Net income | $ | 23,064 | $ | 5,777 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares(a) | (166 | ) | (36 | ) | ||||
Earnings available to common shareholders – Diluted | $ | 22,898 | $ | 5,741 | ||||
Weighted-average common shares outstanding – Basic | 67,896,481 | 80,387,371 | ||||||
Effect of dilutive shares(b) | — | — | ||||||
Weighted-average common shares outstanding – Diluted | 67,896,481 | 80,387,371 | ||||||
Earnings per common share – Diluted | $ | 0.34 | $ | 0.07 | ||||
(a) | For the three months ended March 31, 2013 and 2014, distributed and undistributed earnings to restricted shares is 0.72% and 0.62% 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 months ended March 31, 2013 and 2014, we had no dilutive shares. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 relates to income earned by certain subsidiaries of the Company which are located in, or earn income in, jurisdictions that impose income taxes, primarily Ireland, Singapore and the United States. | ||||||||
The sources of income from continuing operations before income taxes and earnings of unconsolidated equity method investment for the three months ended March 31, 2013 and 2014 were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
U.S. operations | $ | 405 | $ | 765 | ||||
Non-U.S. operations | 26,243 | 5,445 | ||||||
Total | $ | 26,648 | $ | 6,210 | ||||
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. The aircraft owning subsidiaries resident in Ireland, Mauritius and Singapore are subject to tax in those respective jurisdictions. | ||||||||
We 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. We also have Ireland and Singapore based subsidiaries which provide management services to our non-U.S. subsidiaries and are subject to tax in those respective jurisdictions. | ||||||||
The consolidated income tax expense for the three months ended March 31, 2013 and 2014 was determined based upon estimates of the Company's consolidated effective income tax rates for the years ending December 31, 2013 and 2014, respectively. | ||||||||
The Company's effective tax rate for the three months ended March 31, 2013 was 13.4% compared to 14.2% for the three months ended March 31, 2014. 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. | ||||||||
Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income consisted of the following: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Notional U.S. federal income tax expense (benefit) at the statutory rate | $ | 9,327 | $ | 2,173 | ||||
U.S. state and local income tax, net | 34 | 79 | ||||||
Non-U.S. operations: | ||||||||
Bermuda | (3,876 | ) | 3,429 | |||||
Ireland | (901 | ) | (3,289 | ) | ||||
Singapore | (24 | ) | (1,195 | ) | ||||
Other | (1,070 | ) | (598 | ) | ||||
Non-deductible expenses in the U.S. | 102 | 299 | ||||||
Other | (8 | ) | (15 | ) | ||||
Income tax provision | $ | 3,584 | $ | 883 | ||||
Interest_Net
Interest, Net | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Interest Income (Expense), Net [Abstract] | ' | |||||||
Interest Net | ' | |||||||
Interest, Net | ||||||||
The following table shows the components of interest, net: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities | $ | 48,591 | $ | 51,685 | ||||
Hedge ineffectiveness losses | 128 | 53 | ||||||
Amortization of interest rate derivatives related to deferred losses | 8,274 | 9,327 | ||||||
Amortization of deferred financing fees | 2,435 | 3,420 | ||||||
Interest Expense | 59,428 | 64,485 | ||||||
Less interest income | (276 | ) | (222 | ) | ||||
Interest, net | $ | 59,152 | $ | 64,263 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
Commitments and Contingencies | |
At March 31, 2014, we had commitments to acquire five aircraft for $406,974. One A320 family aircraft was acquired in the second quarter of 2014 and four 777-300ER aircraft are expected to be acquired once the seller, LATAM, repays its existing financings for these aircraft. |
Derivatives
Derivatives | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
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 March 31, 2014: | ||||||||||||||||||||||
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. 2 | $ | 447,284 | 12-Jun | 17-Jun | $ | 447,284 | 1M LIBOR | 1.26% | Fair value of | $ | 4,765 | |||||||||||
to | derivative | |||||||||||||||||||||
1.28% | liabilities | |||||||||||||||||||||
In connection with the repayment of Securitization No. 1., two interest rate derivatives hedging the facility were terminated on February 18, 2014, resulting in a net deferred loss of $26,863 which is being amortized into interest expense using the effective interest method over the original hedge term. | ||||||||||||||||||||||
The weighted average interest pay rates of these derivatives at December 31, 2013 and March 31, 2014 were 3.03% and 1.27%, respectively. | ||||||||||||||||||||||
For the three months ended March 31, 2014, 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 $2,820. 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 $4,836. | ||||||||||||||||||||||
Our interest rate derivatives involve counterparty credit risk. As of March 31, 2014, our interest rate derivatives are held with JP Morgan Chase Bank NA, and Wells Fargo Bank NA. Both of our counterparties or guarantors of these counterparties are considered investment grade (senior unsecured ratings of Aa3 or above) by Moody’s Investors Service. Both are also considered investment grade (long-term foreign issuer ratings of AA- or above) by Standard and Poor’s. We do not anticipate that either 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 March 31, 2014, accrued interest payable included in accounts payable, accrued expenses, and other liabilities on our consolidated balance sheet was $305 related to interest rate derivatives designated as cash flow hedges. | ||||||||||||||||||||||
Following is the effect of interest rate derivatives on the statement of financial performance for the three months ended March 31, 2014: | ||||||||||||||||||||||
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 | ($2,380) | Interest expense | ($12,077) | Interest expense | ($56) | |||||||||||||||||
(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 three months ended March 31, 2014. | |||||||||||||||||||||
(b) | This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the three months ended March 31, 2014 plus any effective amortization of net deferred interest rate derivative losses. | |||||||||||||||||||||
(c) | This represents both realized and unrealized ineffectiveness incurred during the three months ended March 31, 2014. | |||||||||||||||||||||
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) | $ | 681 | |||||||||||||||||||
On an ongoing basis, terminated interest rate derivative 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 three months ended March 31, 2014, the amount of deferred net loss reclassified from OCI into interest expense related to our terminated interest rate derivatives was $8,779. 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 $33,615, of which $13,877 relates to Term Financing No. 1 interest rate derivatives terminated in 2012, $11,380 relates to Securitization No. l interest rate derivatives terminated in 2014, $5,797 relates to ECA Term Financings for New A330 Aircraft, $1,298 relates to other financings and $1,263 relates to Term Financing No. 1 derivatives terminated in 2008. | ||||||||||||||||||||||
For the three months ended March 31, 2014, the amount of effective deferred loss reclassified from OCI into interest expense related to our designated active interest rate derivative was $548. | ||||||||||||||||||||||
The following table summarizes amounts charged directly to the consolidated statement of income for the three months ended March 31, 2013 and 2014, respectively, related to our interest rate derivatives: | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Hedge ineffectiveness losses | $ | 128 | $ | 53 | ||||||||||||||||||
Amortization: | ||||||||||||||||||||||
Amortization of loss on designated interest rate derivative | 341 | 548 | ||||||||||||||||||||
Amortization of deferred losses | 7,933 | 8,779 | ||||||||||||||||||||
Total Amortization | 8,274 | 9,327 | ||||||||||||||||||||
Total charged to interest expense | $ | 8,402 | $ | 9,380 | ||||||||||||||||||
Other income: | ||||||||||||||||||||||
Mark to market gains on undesignated interest rate derivatives | $ | 1,215 | $ | 681 | ||||||||||||||||||
Total charged to other income | $ | 1,215 | $ | 681 | ||||||||||||||||||
Other_Assets
Other Assets | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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, | March 31, | |||||||
2013 | 2014 | |||||||
Deferred debt issuance costs, net of amortization of $61,104 and $49,993, respectively | $ | 52,464 | $ | 64,069 | ||||
Deferred federal income tax asset | 1,218 | 942 | ||||||
Lease incentives and lease premiums, net of amortization of $41,136 and $44,607, respectively | 72,181 | 66,635 | ||||||
Flight equipment held for sale | 9,474 | 7,100 | ||||||
Aircraft purchase deposits | 10,000 | 220 | ||||||
Other assets | 8,639 | 9,740 | ||||||
Total other assets | $ | 153,976 | $ | 148,706 | ||||
Accounts_Payable_Accrued_Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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, | March 31, | |||||||
2013 | 2014 | |||||||
Accounts payable and accrued expenses | $ | 30,204 | $ | 17,845 | ||||
Deferred federal income tax liability | 33,178 | 36,106 | ||||||
Accrued interest payable | 39,213 | 55,109 | ||||||
Lease discounts, net of amortization of $6,458 and $7,969 respectively | 9,066 | 47,705 | ||||||
Total accounts payable, accrued expenses and other liabilities | $ | 111,661 | $ | 156,765 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
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 March 31, | |||
2014 | ||||
Beginning balance | $ | (75,905 | ) | |
Amount recognized in other comprehensive loss on derivatives, net of tax expense of $736 | (2,380 | ) | ||
Amounts reclassified from accumulated other comprehensive loss into income, net of tax expense of $68 | 12,077 | |||
Net current period other comprehensive income | 9,697 | |||
Ending balance | $ | (66,208 | ) | |
(a) All amounts are net of tax. Amounts in parentheses indicate debits. | ||||
Reclassifications from accumulated other comprehensive loss(a) | Three Months Ended March 31, | |||
2014 | ||||
Amount of effective amortization of net deferred interest rate derivative losses(b) | $ | 9,327 | ||
Effective amount of net settlements of interest rate derivatives, net of tax expense of $68(b) | 2,750 | |||
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | $ | 12,077 | ||
(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) | 3 Months Ended |
Mar. 31, 2014 | |
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 one 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, 2013. | |
Principles of Consolidation | ' |
The consolidated financial statements include the accounts of Aircastle and all of its subsidiaries. Aircastle consolidates seven 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. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Proposed Accounting Pronouncements | |
In May 2013, the Financial Accounting Standards Board (“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. In March 2014, the FASB decided that the accounting for leases by lessors would basically remain unchanged from the concepts existing in current ACS 840 accounting. In addition, the FASB decided that a lessor should be precluded from recognizing selling profit and revenue at lease commencement for any sales-type or direct finance lease that does not transfer control of the underlying asset to the lessee. This requirement aligns the notion of what constitutes a sale in the lessor accounting guidance with that in the forthcoming revenue recognition standard, which evaluates whether a sale has occurred from the customer’s perspective. We anticipate that the final standard may have an effective date no earlier than 2017. We believe that when and if the proposed guidance becomes effective, it will not have a material impact on the Company’s consolidated financial statements. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||
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, 2013 and March 31, 2014 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, 2013 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of December 31, 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 | $ | 654,613 | $ | 654,613 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 122,773 | 122,773 | — | — | Market | |||||||||||||
Total | $ | 777,386 | $ | 777,386 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 39,992 | $ | — | $ | 39,992 | $ | — | Income | |||||||||
Fair Value Measurements at March 31, 2014 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of March 31, 2014 | 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 | $ | 614,096 | $ | 614,096 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 102,463 | 102,463 | — | — | Market | |||||||||||||
Total | $ | 716,559 | $ | 716,559 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 4,765 | $ | — | $ | 4,765 | $ | — | Income | |||||||||
Fair value assets on a recurring basis using significant unobservable inputs | ' | |||||||||||||||||
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 months ended March 31, 2013 and 2014, respectively: | ||||||||||||||||||
Assets | ||||||||||||||||||
Debt Investments | ||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||
2013 | 2014 | |||||||||||||||||
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 | $ | — | $ | — | ||||||||||||||
Carrying amounts and fair values of financial instruments | ' | |||||||||||||||||
The carrying amounts and fair values of our financial instruments at December 31, 2013 and March 31, 2014 are as follows: | ||||||||||||||||||
December 31, 2013 | March 31, 2014 | |||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
of Asset | of Asset | of Asset | of Asset | |||||||||||||||
(Liability) | (Liability) | (Liability) | (Liability) | |||||||||||||||
Securitizations | $ | (828,871 | ) | $ | (779,901 | ) | $ | (560,472 | ) | $ | (526,281 | ) | ||||||
ECA term financings | (493,708 | ) | (506,227 | ) | (482,882 | ) | (494,243 | ) | ||||||||||
Bank financings | (264,256 | ) | (268,435 | ) | (598,373 | ) | (603,141 | ) | ||||||||||
Senior Notes | (2,150,527 | ) | (2,325,965 | ) | (2,650,498 | ) | (2,843,412 | ) |
Lease_Rental_Revenues_and_Flig1
Lease Rental Revenues and Flight Equipment Held for Lease (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||
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 March 31, 2014 were as follows: | ||||||||||||||||||||
Year Ending December 31, | Amount | |||||||||||||||||||
Remainder of 2014 | $ | 532,533 | ||||||||||||||||||
2015 | 664,294 | |||||||||||||||||||
2016 | 577,259 | |||||||||||||||||||
2017 | 434,309 | |||||||||||||||||||
2018 | 310,517 | |||||||||||||||||||
Thereafter | 798,400 | |||||||||||||||||||
Total | $ | 3,317,312 | ||||||||||||||||||
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 March 31, | ||||||||||||||||||||
Region | 2013 | 2014 | ||||||||||||||||||
Europe | 34 | % | 29 | % | ||||||||||||||||
Asia and Pacific | 37 | % | 42 | % | ||||||||||||||||
North America | 9 | % | 10 | % | ||||||||||||||||
South America | 9 | % | 9 | % | ||||||||||||||||
Middle East and Africa | 11 | % | 10 | % | ||||||||||||||||
Total | 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 March 31, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Country | Revenue | Percent of | Number | Revenue | Percent of | Number | ||||||||||||||
Total | of | Total | of | |||||||||||||||||
Revenue | Lessees | Revenue | Lessees | |||||||||||||||||
China(1) | $ | 19,303 | 11 | % | 4 | $ | 21,601 | 12 | % | 4 | ||||||||||
United States(2) | 17,919 | 10 | % | 6 | — | — | % | — | ||||||||||||
(1) Total revenue for the three months ended March 31, 2014 includes $11,264 of maintenance revenue related to an agreed early lease termination. | ||||||||||||||||||||
(2) Total revenue was less than 10% for the three months ended March 31, 2014. | ||||||||||||||||||||
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 and net investment in finance leases) was as follows: | ||||||||||||||||||||
December 31, 2013 | March 31, 2014 | |||||||||||||||||||
Region | Number | Net Book | Number | Net Book | ||||||||||||||||
of | Value % | of | Value % | |||||||||||||||||
Aircraft | Aircraft | |||||||||||||||||||
Europe | 64 | 30 | % | 68 | 28 | % | ||||||||||||||
Asia and Pacific | 56 | 41 | % | 53 | 38 | % | ||||||||||||||
North America | 19 | 10 | % | 21 | 9 | % | ||||||||||||||
South America | 14 | 7 | % | 15 | 14 | % | ||||||||||||||
Middle East and Africa | 7 | 11 | % | 6 | 10 | % | ||||||||||||||
Off-lease | 2 | (1) | 1 | % | 1 | (2) | 1 | % | ||||||||||||
Total | 162 | 100 | % | 164 | 100 | % | ||||||||||||||
_______________ | ||||||||||||||||||||
-1 | Consists of two Boeing 747-400 converted freighter aircraft, one of which is subject to a commitment to lease and the other is being marketed. | |||||||||||||||||||
-2 | Consists of one Boeing 747-400 converted freighter which was returned to us in the fourth quarter of 2013 which is being marketed for lease or sale. | |||||||||||||||||||
Net_Investment_in_Finance_Leas1
Net Investment in Finance Leases (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Leases [Abstract] | ' | ||||
Schedule Of Components Of Investment In Finance Leases [Table Text Block] | ' | ||||
The following table lists the components of our net investment in finance leases at March 31, 2014: | |||||
Amount | |||||
Total lease payments to be received | $ | 130,687 | |||
Less: Unearned income | (58,746 | ) | |||
Estimated residual values of leased flight equipment (unguaranteed) | 70,459 | ||||
Net investment in finance leases | $ | 142,400 | |||
Schedule of Future Minimum Lease Payments for Capital Leases | ' | ||||
At March 31, 2014, minimum future lease payments on finance leases are as follows: | |||||
Year Ending December 31, | Amount | ||||
Remainder of 2014 | $ | 20,281 | |||
2015 | 27,042 | ||||
2016 | 27,042 | ||||
2017 | 26,128 | ||||
2018 | 15,287 | ||||
Thereafter | 14,907 | ||||
Total | $ | 130,687 | |||
Secured_and_Unsecured_Debt_Fin1
Secured and Unsecured Debt Financings (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Debt Disclosure [Abstract] | ' | |||||||||||||
Outstanding amounts of secured and unsecured term debt financings | ' | |||||||||||||
The outstanding amounts of our secured and unsecured term debt financings were as follows: | ||||||||||||||
At 12/31/2013 | At 3/31/2014 | |||||||||||||
Debt Obligation | Outstanding | Outstanding | Interest Rate(1) | Final Stated | ||||||||||
Borrowings | Borrowings | Maturity(2) | ||||||||||||
Secured Debt Financings: | ||||||||||||||
Securitization No. 1(3) | $ | 225,034 | $ | — | —% | - | ||||||||
Securitization No. 2 | 603,837 | 560,472 | 0.46% | 6/14/37 | ||||||||||
ECA Term Financings | 493,708 | 482,882 | 3.02% to 3.96% | 12/3/21 to 11/30/24 | ||||||||||
Bank Financings | 264,256 | 598,373 | 1.05% to 5.09% | 09/15/15 to 04/19/25 | ||||||||||
Total secured debt financings | 1,586,835 | 1,641,727 | ||||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2017 | 500,000 | 500,000 | 6.75% | 4/15/17 | ||||||||||
Senior Notes due 2018(4) | 450,527 | 450,498 | 9.75% | 8/1/18 | ||||||||||
Senior Notes due 2018 | 400,000 | 400,000 | 4.63% | 12/5/18 | ||||||||||
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 | ||||||||||
Senior Notes due 2021 | — | 500,000 | 5.13% | 3/15/21 | ||||||||||
2014 Revolving Credit Facility(5) | — | — | N/A | 3/31/18 | ||||||||||
Total unsecured debt financings | 2,150,527 | 2,650,498 | ||||||||||||
Total secured and unsecured debt financings | $ | 3,737,362 | $ | 4,292,225 | ||||||||||
-1 | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2 and six of our Bank Financings. All other financings have a fixed rate. | |||||||||||||
-2 | For Securitization No. 2, all cash flows available after expenses and interest are applied to debt amortization. | |||||||||||||
-3 | In February 2014, we repaid the outstanding amount plus accrued interest and fees due under Securitization No. 1 and terminated the related interest rate derivative, for a total cash payment of $255,186, with proceeds from our December 2013 issuance of our Senior Notes due 2018. | |||||||||||||
-4 | Proceeds from the issuance of our Senior Notes due 2021 were used to pay-off the balance of our 9.75% Senior Notes due 2018 plus accrued interest of $10,238 and the call premium of $32,835 on April 25, 2014. | |||||||||||||
-5 | On March 31, 2014, we amended and restructured our existing $335,000 2013 Revolving Credit Facility with a new unsecured revolving credit facility (the “2014 Revolving Credit Facility”). The 2014 Revolving Credit Facility was increased to $450,000, has a term of four years and is scheduled to expire in March 2018. | |||||||||||||
The following Securitization includes a liquidity facility commitment described in the table below: | ||||||||||||||
Available Liquidity | ||||||||||||||
Facility | Liquidity Facility Provider | December 31, | March 31, | Unused | Interest Rate | |||||||||
2013 | 2014 | Fee | on any Advances | |||||||||||
Securitization No. 2 | HSH Nordbank AG | $ | 65,000 | $ | 65,000 | 0.50% | 1M Libor + 0.75 | |||||||
Dividends_Tables
Dividends (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2014 | ||||||||||||
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 | |||||||||||
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 | ||||||
29-Oct-13 | $ | 0.2 | $ | 16,163 | November 29, 2013 | December 13, 2013 | ||||||
21-Feb-14 | $ | 0.2 | $ | 16,201 | March 7, 2014 | March 14, 2014 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Weighted-average shares: | ||||||||
Common shares outstanding | 67,896,481 | 80,387,371 | ||||||
Restricted common shares | 492,906 | 500,524 | ||||||
Total weighted-average shares | 68,389,387 | 80,887,895 | ||||||
Percentage of weighted-average shares: | ||||||||
Common shares outstanding | 99.28 | % | 99.38 | % | ||||
Restricted common shares | 0.72 | % | 0.62 | % | ||||
Total | 100 | % | 100 | % | ||||
Basic and Diluted earnings per share | ' | |||||||
The calculations of both basic and diluted earnings per share are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Earnings per share – Basic: | ||||||||
Net income | $ | 23,064 | $ | 5,777 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares (a) | (166 | ) | (36 | ) | ||||
Earnings available to common shareholders – Basic | $ | 22,898 | $ | 5,741 | ||||
Weighted-average common shares outstanding – Basic | 67,896,481 | 80,387,371 | ||||||
Earnings per common share – Basic | $ | 0.34 | $ | 0.07 | ||||
Earnings per share – Diluted: | ||||||||
Net income | $ | 23,064 | $ | 5,777 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares(a) | (166 | ) | (36 | ) | ||||
Earnings available to common shareholders – Diluted | $ | 22,898 | $ | 5,741 | ||||
Weighted-average common shares outstanding – Basic | 67,896,481 | 80,387,371 | ||||||
Effect of dilutive shares(b) | — | — | ||||||
Weighted-average common shares outstanding – Diluted | 67,896,481 | 80,387,371 | ||||||
Earnings per common share – Diluted | $ | 0.34 | $ | 0.07 | ||||
(a) | For the three months ended March 31, 2013 and 2014, distributed and undistributed earnings to restricted shares is 0.72% and 0.62% 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 months ended March 31, 2013 and 2014, we had no dilutive shares. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Sources of income from continuing operations before income taxes | ' | |||||||
The sources of income from continuing operations before income taxes and earnings of unconsolidated equity method investment for the three months ended March 31, 2013 and 2014 were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
U.S. operations | $ | 405 | $ | 765 | ||||
Non-U.S. operations | 26,243 | 5,445 | ||||||
Total | $ | 26,648 | $ | 6,210 | ||||
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 March 31, | ||||||||
2013 | 2014 | |||||||
Notional U.S. federal income tax expense (benefit) at the statutory rate | $ | 9,327 | $ | 2,173 | ||||
U.S. state and local income tax, net | 34 | 79 | ||||||
Non-U.S. operations: | ||||||||
Bermuda | (3,876 | ) | 3,429 | |||||
Ireland | (901 | ) | (3,289 | ) | ||||
Singapore | (24 | ) | (1,195 | ) | ||||
Other | (1,070 | ) | (598 | ) | ||||
Non-deductible expenses in the U.S. | 102 | 299 | ||||||
Other | (8 | ) | (15 | ) | ||||
Income tax provision | $ | 3,584 | $ | 883 | ||||
Interest_Net_Tables
Interest, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Interest Income (Expense), Net [Abstract] | ' | |||||||
Components of Interest | ' | |||||||
The following table shows the components of interest, net: | ||||||||
Three Months Ended March 31, | ||||||||
2013 | 2014 | |||||||
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities | $ | 48,591 | $ | 51,685 | ||||
Hedge ineffectiveness losses | 128 | 53 | ||||||
Amortization of interest rate derivatives related to deferred losses | 8,274 | 9,327 | ||||||
Amortization of deferred financing fees | 2,435 | 3,420 | ||||||
Interest Expense | 59,428 | 64,485 | ||||||
Less interest income | (276 | ) | (222 | ) | ||||
Interest, net | $ | 59,152 | $ | 64,263 | ||||
Derivatives_Tables
Derivatives (Tables) | 3 Months Ended | |||||||||||||||||||||
Mar. 31, 2014 | ||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||
Interest rate derivatives | ' | |||||||||||||||||||||
We held the following interest rate derivatives as of March 31, 2014: | ||||||||||||||||||||||
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. 2 | $ | 447,284 | 12-Jun | 17-Jun | $ | 447,284 | 1M LIBOR | 1.26% | Fair value of | $ | 4,765 | |||||||||||
to | derivative | |||||||||||||||||||||
1.28% | liabilities | |||||||||||||||||||||
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 three months ended March 31, 2014: | ||||||||||||||||||||||
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 | ($2,380) | Interest expense | ($12,077) | Interest expense | ($56) | |||||||||||||||||
(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 three months ended March 31, 2014. | |||||||||||||||||||||
(b) | This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the three months ended March 31, 2014 plus any effective amortization of net deferred interest rate derivative losses. | |||||||||||||||||||||
(c) | This represents both realized and unrealized ineffectiveness incurred during the three months ended March 31, 2014. | |||||||||||||||||||||
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) | $ | 681 | |||||||||||||||||||
The following table summarizes amounts charged directly to the consolidated statement of income for the three months ended March 31, 2013 and 2014, respectively, related to our interest rate derivatives: | ||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||
Hedge ineffectiveness losses | $ | 128 | $ | 53 | ||||||||||||||||||
Amortization: | ||||||||||||||||||||||
Amortization of loss on designated interest rate derivative | 341 | 548 | ||||||||||||||||||||
Amortization of deferred losses | 7,933 | 8,779 | ||||||||||||||||||||
Total Amortization | 8,274 | 9,327 | ||||||||||||||||||||
Total charged to interest expense | $ | 8,402 | $ | 9,380 | ||||||||||||||||||
Other income: | ||||||||||||||||||||||
Mark to market gains on undesignated interest rate derivatives | $ | 1,215 | $ | 681 | ||||||||||||||||||
Total charged to other income | $ | 1,215 | $ | 681 | ||||||||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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, | March 31, | |||||||
2013 | 2014 | |||||||
Deferred debt issuance costs, net of amortization of $61,104 and $49,993, respectively | $ | 52,464 | $ | 64,069 | ||||
Deferred federal income tax asset | 1,218 | 942 | ||||||
Lease incentives and lease premiums, net of amortization of $41,136 and $44,607, respectively | 72,181 | 66,635 | ||||||
Flight equipment held for sale | 9,474 | 7,100 | ||||||
Aircraft purchase deposits | 10,000 | 220 | ||||||
Other assets | 8,639 | 9,740 | ||||||
Total other assets | $ | 153,976 | $ | 148,706 | ||||
Accounts_Payable_Accrued_Expen1
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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, | March 31, | |||||||
2013 | 2014 | |||||||
Accounts payable and accrued expenses | $ | 30,204 | $ | 17,845 | ||||
Deferred federal income tax liability | 33,178 | 36,106 | ||||||
Accrued interest payable | 39,213 | 55,109 | ||||||
Lease discounts, net of amortization of $6,458 and $7,969 respectively | 9,066 | 47,705 | ||||||
Total accounts payable, accrued expenses and other liabilities | $ | 111,661 | $ | 156,765 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Equity [Abstract] | ' | |||
Schedule of Accumulated Other Comprehensive Income (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 March 31, | |||
2014 | ||||
Beginning balance | $ | (75,905 | ) | |
Amount recognized in other comprehensive loss on derivatives, net of tax expense of $736 | (2,380 | ) | ||
Amounts reclassified from accumulated other comprehensive loss into income, net of tax expense of $68 | 12,077 | |||
Net current period other comprehensive income | 9,697 | |||
Ending balance | $ | (66,208 | ) | |
(a) All amounts are net of tax. Amounts in parentheses indicate debits. | ||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||
Reclassifications from accumulated other comprehensive loss(a) | Three Months Ended March 31, | |||
2014 | ||||
Amount of effective amortization of net deferred interest rate derivative losses(b) | $ | 9,327 | ||
Effective amount of net settlements of interest rate derivatives, net of tax expense of $68(b) | 2,750 | |||
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | $ | 12,077 | ||
(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_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2014 | |
segment | |
Variable Interest Entity [Line Items] | ' |
Number of Operating Segments | 1 |
Variable Interest Entity, Primary Beneficiary | ' |
Variable Interest Entity [Line Items] | ' |
Number of Consolidated Variable Interest Entities | 7 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Liabilities: | ' | ' |
Derivative liabilities | $4,765 | $39,992 |
Recurring | Estimate of Fair Value Measurement | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 614,096 | 654,613 |
Restricted cash and cash equivalents | 102,463 | 122,773 |
Total | 716,559 | 777,386 |
Liabilities: | ' | ' |
Derivative liabilities | 4,765 | 39,992 |
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 614,096 | 654,613 |
Restricted cash and cash equivalents | 102,463 | 122,773 |
Total | 716,559 | 777,386 |
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 |
Total | 0 | 0 |
Liabilities: | ' | ' |
Derivative liabilities | 4,765 | 39,992 |
Recurring | Significant Unobservable Inputs (Level 3) | ' | ' |
Assets: | ' | ' |
Cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Total | 0 | 0 |
Liabilities: | ' | ' |
Derivative liabilities | $0 | $0 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (Recurring, Available-for-sale Securities, USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Recurring | Available-for-sale Securities | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ' | ' |
Balance at beginning of period | $0 | $40,388 |
Total gains/(losses), net: | ' | ' |
Included in other revenue | 0 | 1,613 |
Settlements | 0 | -42,001 |
Balance at end of period | $0 | $0 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Securitizations | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | ($560,472) | ($828,871) |
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 | -482,882 | -493,708 |
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 | -598,373 | -264,256 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Securitizations | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -526,281 | -779,901 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ECA Term Financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -494,243 | -506,227 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement | Bank financings | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | -603,141 | -268,435 |
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 | -2,650,498 | -2,150,527 |
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | Senior Notes | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Debt Instrument, Fair Value Disclosure | ($2,843,412) | ($2,325,965) |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details Textual) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' |
Impairment of Aircraft | $18,263 | $6,199 |
Maintenance Revenue | 3,042 | 16,866 |
Other revenue | 1,830 | 5,930 |
A319-100 & B 767-300ER | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' |
Number of Aircraft Impaired | 2 | ' |
Impairment of Aircraft | 6,199 | ' |
Maintenance Revenue | 9,019 | ' |
Other revenue | 764 | ' |
A-319-100 | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' |
Number of Aircraft Impaired | ' | 1 |
B-767-300ER | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' |
Number of Aircraft Impaired | ' | 1 |
B-737 Classic | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' |
Number of Aircraft Impaired | 1 | ' |
B-737-400 & B747-400BCF [Member] | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' |
Number of Aircraft Impaired | 2 | ' |
Impairment of Aircraft | 18,263 | ' |
Maintenance Revenue | $17,176 | ' |
B-747-400BCF [Member] | ' | ' |
Impaired Long-Lived Assets Held and Used [Line Items] | ' | ' |
Number of Aircraft Impaired | 1 | ' |
Lease_Rental_Revenues_and_Flig2
Lease Rental Revenues and Flight Equipment Held for Lease (Details) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Annual future minimum lease rentals receivable | ' |
Remainder of 2014 | $532,533 |
2014 | 664,294 |
2015 | 577,259 |
2016 | 434,309 |
2017 | 310,517 |
Thereafter | 798,400 |
Total | $3,317,312 |
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 | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 100.00% | 100.00% |
Europe | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 29.00% | 34.00% |
Asia and Pacific | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 42.00% | 37.00% |
North America | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 10.00% | 9.00% |
South America | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 9.00% | 9.00% |
Middle East and Africa | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 10.00% | 11.00% |
Lease_Rental_Revenues_and_Flig4
Lease Rental Revenues and Flight Equipment Held for Lease (Details 2) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Revenue attributable to individual countries | ' | ' | ||
Revenue | $174,335 | $156,590 | ||
Maintenance revenue (including contra maintenance revenue of $0 and $16,382 for the three months ended March 31, 2013 and 2014, respectively) | 3,042 | 16,866 | ||
China | ' | ' | ||
Revenue attributable to individual countries | ' | ' | ||
Revenue | 21,601 | [1] | 19,303 | [1] |
Number of Lessees | 4 | [1] | 4 | [1] |
United States | ' | ' | ||
Revenue attributable to individual countries | ' | ' | ||
Revenue | 0 | [1] | 17,919 | [1] |
Number of Lessees | 0 | [1] | 6 | [1] |
United Kingdom | ' | ' | ||
Revenue attributable to individual countries | ' | ' | ||
Maintenance revenue (including contra maintenance revenue of $0 and $16,382 for the three months ended March 31, 2013 and 2014, respectively) | $11,264 | ' | ||
Geographic Concentration Risk | Total Revenue | China | ' | ' | ||
Revenue attributable to individual countries | ' | ' | ||
Percentage of geographic concentration | 12.00% | [1] | 11.00% | [1] |
Geographic Concentration Risk | Total Revenue | United States | ' | ' | ||
Revenue attributable to individual countries | ' | ' | ||
Percentage of geographic concentration | 0.00% | [1] | 10.00% | [1] |
[1] | . |
Lease_Rental_Revenues_and_Flig5
Lease Rental Revenues and Flight Equipment Held for Lease (Details 3) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2014 | Dec. 31, 2013 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Number of Aircraft | 164 | 162 | |
Europe | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Number of Aircraft | 68 | 64 | |
Asia and Pacific | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Number of Aircraft | 53 | 56 | |
North America | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Number of Aircraft | 21 | 19 | |
South America | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Number of Aircraft | 15 | 14 | |
Middle East and Africa | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Number of Aircraft | 6 | 7 | |
Off Lease | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Number of Aircraft | 1 | 2 | [1] |
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 | Europe | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Percentage of geographic concentration | 28.00% | 30.00% | |
Geographic Concentration Risk | Net Book Value | Asia and Pacific | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Percentage of geographic concentration | 38.00% | 41.00% | |
Geographic Concentration Risk | Net Book Value | North America | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Percentage of geographic concentration | 9.00% | 10.00% | |
Geographic Concentration Risk | Net Book Value | South America | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Percentage of geographic concentration | 14.00% | 7.00% | |
Geographic Concentration Risk | Net Book Value | Middle East and Africa | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Percentage of geographic concentration | 10.00% | 11.00% | |
Geographic Concentration Risk | Net Book Value | Off Lease | ' | ' | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | |
Percentage of geographic concentration | 1.00% | 1.00% | |
[1] | {F|ahBzfndlYmZpbGluZ3MtaHJkcmoLEgZYTUxEb2MiXlhCUkxEb2NHZW5JbmZvOmMyYzc1Y2ZmOWQxOTRmYWI5ZDhmZThjZGMyODM1N2ZmfFRleHRTZWxlY3Rpb246RjE1MjQ2RUVBNEUwQTIyRUU3OEE0MjE4QkM5OENFQTAM} |
Lease_Rental_Revenues_and_Flig6
Lease Rental Revenues and Flight Equipment Held for Lease (Details 4) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2014 | Dec. 31, 2013 | |
Geographic Concentration Risk | Net Book Value | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Percentage of geographic concentration | 100.00% | 100.00% |
B-747-400 [Member] | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' |
Number of Offlease Aircraft being Marketed for Lease or Sale | ' | 2 |
Number of Offlease Aircraft Marketed for Lease | 1 | 1 |
Lease_Rental_Revenues_and_Flig7
Lease Rental Revenues and Flight Equipment Held for Lease (Details Textual) (USD $) | 3 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 |
Customer Group One | Customer Group One | Customer Group Two | Other Customers | Other Customers | Lease Rental Revenue | Lease Rental Revenue | Lease Rental Revenue | Lease Rental Revenue | Maintenance Payments | Maintenance Payments | |
Lessee | Lessee | Lessee | Lessee | Lessee | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | Customer Concentration Risk | |||
Customer Group One | Customer Group One | Customer Group Two | Customer Group Two | ||||||||
Revenue, Major Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Entity-Wide Revenue, Major Customer, Number | 1 | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of geographic concentration | ' | ' | ' | ' | ' | 6.00% | 6.00% | 5.00% | 12.00% | ' | ' |
Percentage of lease rental revenues accounted by customers | ' | ' | ' | 5.00% | 5.00% | ' | ' | ' | ' | ' | ' |
Number of Lessees With 5% of Lease Rental Revenue | ' | ' | 2 | 0 | 0 | ' | ' | ' | ' | ' | ' |
Amounts of lease incentive liabilities recorded in the consolidated balance sheets | ' | ' | ' | ' | ' | ' | ' | ' | ' | $28,805 | $28,611 |
Net_Investment_in_Finance_Leas2
Net Investment in Finance Leases Narrative (Details) | Mar. 31, 2014 |
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 $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months | $20,281 | ' |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ' | ' |
Total lease payments to be received | 130,687 | ' |
Less: Unearned income | -58,746 | ' |
Estimated residual values of leased flight equipment (unguaranteed) | 70,459 | ' |
Net investment in finance leases | 142,400 | 145,173 |
2014 | 27,042 | ' |
2015 | 27,042 | ' |
2016 | 26,128 | ' |
2017 | 15,287 | ' |
Thereafter | 14,907 | ' |
Capital Leases, Future Minimum Payments Receivable | $130,687 | ' |
Unconsolidated_Equity_Method_I1
Unconsolidated Equity Method Investment (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Equity Method Investments | $21,440 | ' | $21,123 |
Customer Advances and Deposits | 446,742 | ' | 442,432 |
Income (Loss) from Equity Method Investments | 450 | 0 | ' |
Equity Method Investee [Member] | OTTP [Member] | ' | ' | ' |
Equity Method Investments | 21,440 | ' | 21,123 |
Equity Method Investment, Ownership Percentage | 30.00% | ' | ' |
Equity Method Investments Before Earnings | 758 | ' | ' |
Income (Loss) from Equity Method Investments | 450 | ' | ' |
A-330-200 [Member] | Equity Method Investee [Member] | OTTP [Member] | ' | ' | ' |
Customer Advances and Deposits | $1,481 | ' | ' |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
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 | ||
Entity | Securitization No. 1 | Securitization No. 2 | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | Variable Interest Entity, Primary Beneficiary | |||
Aircraft | Class A-1 Notes | Class A-1 Notes | Aircraft | Class E-1 Securities | ECA Term Financings | |||
Subsidiary | Subsidiary | Term_Loan | ||||||
Variable Interest Entity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of VIE's consolidated | ' | ' | 7 | ' | ' | ' | ' | ' |
Number of Aircrafts | ' | ' | 15 | ' | ' | ' | ' | ' |
Number of Subsidiaries in Securitization No.2 | ' | ' | ' | 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 | ' | ' | ' | ' | ' | 7 | ' | ' |
Combined assets | ' | ' | ' | ' | ' | $192,720 | ' | ' |
Borrowings from secured financings | 1,641,727 | 1,586,835 | ' | ' | ' | ' | 40,351 | ' |
Combined Liabilities | ' | ' | ' | ' | ' | 161,283 | ' | ' |
Type of term loans | ' | ' | ' | ' | ' | ' | ' | 8 |
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | '12 years |
Net book value of flight equipment held for lease | ' | ' | ' | ' | ' | ' | ' | 662,512 |
Consolidated debt outstanding | ' | ' | ' | ' | ' | ' | ' | $482,882 |
Secured_and_Unsecured_Debt_Fin2
Secured and Unsecured Debt Financings (Details) (USD $) | 3 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | |||||||||||||||||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Aug. 02, 2013 | Feb. 28, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | ||||||||||
Line of Credit | Line of Credit | Bank Financings, March 2014 [Member] | 2014 Revolving Credit Facility [Member] | 2013 Revolving Credit Facility | Securitization No. 1 | Securitization No. 1 | Securitization No. 1 | Securitization No. 2 | Securitization No. 2 | ECA Term Financings | ECA Term Financings | Bank Financings | Bank Financings | Senior Notes Due 2017 | Senior Notes Due 2017 | Senior Notes due 2018 | Senior Notes due 2018 | Senior Notes Due 2018 with 4.625 Interest Rate [Member] | Senior Notes Due 2018 with 4.625 Interest Rate [Member] | Senior Notes Due 2019 | Senior Notes Due 2019 | Senior Notes Due 2020 [Member] | Senior Notes Due 2020 [Member] | Senior Notes due 2021 [Member] | Senior Notes due 2021 [Member] | ||||||||||||||
Revolving Credit Facility | Revolving Credit Facility | Notes Payable to Banks | Line of Credit | Line of Credit | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Notes Payable, Other Payables | Notes Payable, Other Payables | Notes Payable to Banks | Notes Payable to Banks | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | Senior Notes | ||||||||||||||
B-737-800 [Member] | Revolving Credit Facility | Revolving Credit Facility | |||||||||||||||||||||||||||||||||||||
variable_loan | |||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Line of credit facility, current borrowing capacity | ' | ' | ' | ' | ' | ' | $450,000 | $335,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Repayments of Long-term Debt | 287,778 | 82,681 | ' | ' | ' | ' | ' | ' | 255,186 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Number of debt instruments | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Term debt financings assumed in asset acquisitions | 39,061 | 0 | ' | ' | ' | 40,809 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Outstanding amounts of secured and unsecured term debt financings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Borrowings from secured financings | 1,641,727 | ' | 1,586,835 | ' | ' | ' | ' | ' | ' | 0 | 225,034 | 560,472 | 603,837 | 482,882 | 493,708 | 598,373 | 264,256 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Borrowings from unsecured financings | 2,650,498 | ' | 2,150,527 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | 500,000 | 450,498 | 450,527 | 400,000 | 400,000 | 500,000 | 500,000 | 300,000 | 300,000 | 500,000 | 0 | ||||||||||
Total secured and unsecured debt financings | $4,292,225 | ' | $3,737,362 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | [1] | ' | 0.46% | [1] | ' | ' | ' | ' | ' | 6.75% | [1] | ' | 9.75% | [1] | ' | 4.63% | [1] | ' | 6.25% | [1] | ' | 7.63% | [1] | ' | 5.13% | [1] | ' | ||
Minimum effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.02% | [1] | ' | 1.05% | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Maximum effective interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.96% | [1] | ' | 5.09% | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Debt instrument, term | ' | ' | ' | ' | ' | ' | '4 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
[1] | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2 and six of our Bank Financings. All other financings have a fixed rate. |
Secured_and_Unsecured_Debt_Fin3
Secured and Unsecured Debt Financings (Details 1) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | 3 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | |||||||||||||||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | 31-May-13 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Aug. 02, 2013 | Jun. 30, 2014 | Apr. 25, 2014 | |||||
Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | 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 | Senior Notes | Senior Notes | Senior Notes | Line of Credit | Subsequent Event [Member] | Subsequent Event [Member] | ||||||||
Securitization No. 1 | Securitization No. 1 | Securitization No. 2 | Securitization No. 2 | Securitization No. 2 | Securitization No. 2 | Bank Financings, May 2013 [Member] | Bank Financings, February 2014, Fixed Rate Loans [Member] | Bank Financings, December 2013 [Member] | Bank Financings, February 2014, Floating Rate Loans [Member] | Bank Financings, February 2014 [Member] | Bank Financings, February 2014 [Member] | Bank Financings, March 2014 [Member] | Senior Notes Due 2020 [Member] | Senior Notes due 2021 [Member] | 2013 Revolving Credit Facility | A-320-200 | Senior Notes | |||||||||
HSH Nordbank AG | HSH Nordbank AG | London Interbank Offered Rate (LIBOR) | A-320-200 | B-777-300 & A-330-200 [Member] | B-777-300 [Member] | B-777-300 & A-330-200 [Member] | B-777-300 & A-330-200 [Member] | A-320-200 | B-737-800 [Member] | Revolving Credit Facility | Aircraft | Securitization No. 1 | ||||||||||||||
Aircraft | fixed_loan | Aircraft | variable_loan | Aircraft | variable_loan | |||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Available Liquidity | ' | ' | ' | ' | ' | $65,000 | $65,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Unused Fee | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Debt instrument, basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | 75.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Number of debt instruments | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | 2 | ' | ' | 2 | ' | ' | ' | ' | ' | ' | |||||
Interest rate | ' | ' | ' | 0.00% | [1] | 0.46% | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7.63% | [1] | 5.13% | [1] | 9.75% | [1] | ' | ' | ' |
Repayments of Long-term Debt | 287,778 | 82,681 | 255,186 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Debt Instrument, Accrued Interest Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,238 | |||||
Debt Instrument, Call Premium | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,835 | |||||
Debt Instrument, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 303,200 | ' | ' | ' | 500,000 | ' | ' | ' | ' | |||||
Term debt financings assumed in asset acquisitions | 39,061 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,809 | ' | ' | ' | ' | ' | ' | |||||
Number of aircraft acquired | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | 2 | ' | ' | 1 | ' | ' | ' | ' | ' | 1 | ' | |||||
Line of credit facility, current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $335,000 | ' | ' | |||||
[1] | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2 and six of our Bank Financings. All other financings have a fixed rate. |
Dividends_Details
Dividends (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Feb. 21, 2014 | Oct. 29, 2013 | Aug. 02, 2013 | 1-May-13 | Feb. 18, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Dividends [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Common Stock, Dividends, Per Share, Declared | $200 | $200 | $0.17 | $0.17 | $0.17 | $0.20 | $0.17 |
Aggregate Dividend Amount | $16,201 | $16,163 | $13,330 | $11,297 | $11,268 | ' | ' |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Weighted-average shares: | ' | ' |
Common shares outstanding | 80,387,371 | 67,896,481 |
Restricted common shares | 500,524 | 492,906 |
Total Weighted Average Shares | 80,887,895 | 68,389,387 |
Percentage of weighted-average shares: | ' | ' |
Common shares outstanding | 99.38% | 99.28% |
Restricted common shares | 0.62% | 0.72% |
Total | 100.00% | 100.00% |
Earnings_Per_Share_Details_1
Earnings Per Share (Details 1) (USD $) | 3 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | ||
Earnings per share – Basic: | ' | ' | ||
Net income (loss) | $5,777 | $23,064 | ||
Less: Distributed and undistributed earnings allocated to restricted common shares (a) | -36 | [1] | -166 | [1] |
Earnings available to common shareholders – Basic | 5,741 | 22,898 | ||
Weighted-average common shares outstanding – Basic | 80,387,371 | 67,896,481 | ||
Earnings per common share – Basic | $0.07 | $0.34 | ||
Earnings per share – Diluted: | ' | ' | ||
Net income (loss) | 5,777 | 23,064 | ||
Less: Distributed and undistributed earnings allocated to restricted common shares (a) | -36 | [1] | -166 | [1] |
Earnings available to common shareholders – Diluted | $5,741 | $22,898 | ||
Weighted-average common shares outstanding – Basic | 80,387,371 | 67,896,481 | ||
Effect of dilutive shares(b) | 0 | [2] | 0 | [2] |
Weighted-average common shares outstanding – Diluted | 80,387,371 | 67,896,481 | ||
Earnings per common share – Diluted | $0.07 | $0.34 | ||
[1] | For the three months ended March 31, 2013 and 2014, distributed and undistributed earnings to restricted shares is 0.72% and 0.62% 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 months ended March 31, 2013 and 2014, we had no dilutive shares. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Sources of income from continuing operations before income taxes | ' | ' |
U.S. operations | $765 | $405 |
Non-U.S. operations | 5,445 | 26,243 |
Income from continuing operations before income taxes | $6,210 | $26,648 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Analysis of effective income tax rate for continuing operations | ' | ' |
Notional U.S. federal income tax expense (benefit) at the statutory rate | $2,173 | $9,327 |
U.S. state and local income tax, net | 79 | 34 |
Non-deductible expenses in the U.S. | 299 | 102 |
Other | -15 | -8 |
Income tax provision | 883 | 3,584 |
SINGAPORE | Foreign Tax Authority [Member] | ' | ' |
Analysis of effective income tax rate for continuing operations | ' | ' |
Non-U.S. operations: | -1,195 | -24 |
Other Foreign Country [Member] | Foreign Tax Authority [Member] | ' | ' |
Analysis of effective income tax rate for continuing operations | ' | ' |
Non-U.S. operations: | -598 | -1,070 |
IRELAND | Foreign Tax Authority [Member] | ' | ' |
Analysis of effective income tax rate for continuing operations | ' | ' |
Non-U.S. operations: | -3,289 | -901 |
BERMUDA | Foreign Tax Authority [Member] | ' | ' |
Analysis of effective income tax rate for continuing operations | ' | ' |
Non-U.S. operations: | $3,429 | ($3,876) |
Income_Taxes_Income_Taxes_Text
Income Taxes Income Taxes (Textual) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' |
Effective Income Tax Rate, Continuing Operations | 14.20% | 13.40% |
Asset impairment charges, fleet review | ' | ' |
Interest_Net_Details
Interest, Net (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Income (Expense), Net [Abstract] | ' | ' |
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities | $51,685 | $48,591 |
Hedge ineffectiveness losses | 53 | 128 |
Cash flow hedges reclassified into earnings | 9,327 | 8,274 |
Amortization of deferred financing costs | 3,420 | 2,435 |
Interest Expense | 64,485 | 59,428 |
Less interest income | -222 | -276 |
Interest, net | $64,263 | $59,152 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
In Thousands, unless otherwise specified | Aircraft | A-320-200 | B-777-300 [Member] |
Subsequent Event [Member] | Subsequent Event [Member] | ||
Aircraft | Aircraft | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 5 | ' | ' |
Unrecorded Unconditional Purchase Obligation | $406,974 | ' | ' |
Types of Commercial Aircraft [Line Items] | ' | ' | ' |
Number of aircraft acquired | ' | 1 | ' |
Aircraft Expected to be Acquired | ' | ' | 4 |
Derivatives_Details
Derivatives (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
In Thousands, unless otherwise specified | Interest rate derivatives designated as cash flow hedges | Not Designated as Hedging Instrument | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | Cash Flow Hedging | ||
Securitization No. 1 | Securitization No. 1 | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | |||
London Interbank Offered Rate (LIBOR) | London Interbank Offered Rate (LIBOR) | 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. 2 | Securitization No. 2 | Securitization No. 2 | Derivative Liabilities | |||||
Minimum | Maximum | Securitization No. 2 | ||||||
Derivatives, Fair Value [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Current Notional Amount | ' | ' | ' | ' | $447,284 | ' | ' | ' |
Future Maximum Notional Amount | ' | ' | ' | ' | 447,284 | ' | ' | ' |
Floating Rate | ' | ' | ' | ' | '1M LIBOR | ' | ' | ' |
Fixed Rate | ' | ' | ' | ' | ' | 1.26% | 1.28% | ' |
Derivative liabilities | $4,765 | $39,992 | ' | ' | ' | ' | ' | $4,765 |
Derivative, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' |
Derivatives_Details_1
Derivatives (Details 1) (Interest Rate Contract, USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (b) | $2,820 | ' | |
Interest Expense | ' | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | |
Amount of Gain or (Loss) Recognized in Income on Derivative (c) | -53 | -128 | |
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) | 681 | ' | |
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) | -2,380 | [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) | -12,077 | [2] | ' |
Amount of Gain or (Loss) Recognized in Income on Derivative (c) | ($56) | [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 three months ended March 31, 2014. | ||
[2] | This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the three months ended March 31, 2014 plus any effective amortization of net deferred interest rate derivative losses. | ||
[3] | This represents both realized and unrealized ineffectiveness incurred during the three months ended March 31, 2014. |
Derivatives_Details_2
Derivatives (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Amortization: | ' | ' |
Total Amortization | ($9,327) | ($8,274) |
Interest Expense | Interest Rate Contract | ' | ' |
Interest expense: | ' | ' |
Hedge ineffectiveness losses | 53 | 128 |
Amortization: | ' | ' |
Amortization of loss of designated interest rate derivative | 548 | 341 |
Amortization of deferred losses | 8,779 | 7,933 |
Total Amortization | 9,327 | 8,274 |
Total charged to interest expense | 9,380 | 8,402 |
Other income: | ' | ' |
Total charged to interest expense | 9,380 | 8,402 |
Other Income | Interest Rate Contract | ' | ' |
Amortization: | ' | ' |
Total charged to interest expense | 681 | 1,215 |
Other income: | ' | ' |
Mark to market gains on undesignated interest rate derivatives | 681 | 1,215 |
Total charged to interest expense | $681 | $1,215 |
Derivatives_Details_Textual
Derivatives (Details Textual) (USD $) | 3 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2012 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Feb. 18, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
Interest rate derivatives designated as cash flow hedges | Interest Rate Contract | Interest Rate Contract | Interest Rate Contract | Terminated Interest Rate Contract | Term Financing No.1 -- terminated 2012 | Securitization Number One [Member] | Securitization Number One [Member] | Term Financing No.1 -- terminated 2008 | ECA Term Financings | Other Financings | |
Interest rate derivatives designated as cash flow hedges | Terminated Interest Rate Contract | Terminated Interest Rate Contract | 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 | ' | 1.27% | 3.03% | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | ' | $4,836 | ' | ' | ' | $13,877 | $26,863 | $11,380 | $1,263 | $5,797 | $1,298 |
Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (b) | ' | 2,820 | ' | ' | 8,779 | ' | ' | ' | ' | ' | ' |
Interest Rate Derivatives Deferred Gain Or Loss Expected To Be Amortized In Next Twelve Months | ' | ' | ' | ' | 33,615 | ' | ' | ' | ' | ' | ' |
Derivative Instruments, Loss Reclassified from Accumulated OCI into Income, Effective Portion | 548 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative Instruments Accrued Interest Payable Interest Rate Cash Flow Hedge Liability At Fair Value | ' | ' | ' | $305 | ' | ' | ' | ' | ' | ' | ' |
Other_Assets_Details
Other Assets (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Principal components of other assets | ' | ' | ' |
Deferred debt issuance costs, net of amortization of $61,104 and $49,993, respectively | $64,069 | $52,464 | ' |
Deferred federal income tax asset | 942 | 1,218 | ' |
Lease incentives and lease premiums, net of amortization of $41,136 and $44,607, respectively | 66,635 | 72,181 | ' |
Flight equipment held for sale | 7,100 | 9,474 | ' |
Deposits Assets | 220 | 10,000 | ' |
Other assets | 9,740 | 8,639 | ' |
Total other assets | 148,706 | 153,976 | ' |
Amortization of deferred debt issuance costs | 49,993 | ' | 61,104 |
Amortization of lease incentives and lease premiums | $44,607 | ' | $41,136 |
Accounts_Payable_Accrued_Expen2
Accounts Payable, Accrued Expenses and Other Liabilities (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Payables and Accruals [Abstract] | ' | ' | ' |
Accounts payable and accrued expenses | $17,845 | $30,204 | ' |
Deferred federal income tax liability | 36,106 | 33,178 | ' |
Accrued interest payable | 55,109 | 39,213 | ' |
Lease discounts, net of amortization of $6,458 and $7,969 respectively | 47,705 | 9,066 | ' |
Total accounts payable, accrued expenses and other liabilities | 156,765 | 111,661 | ' |
Deferred Revenue, Leases, Accumulated Amortization | $7,969 | ' | $6,458 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | |
Beginning balance | ($75,905) | ' | |
Net current period other comprehensive income | 9,697 | 12,100 | |
Ending balance | -66,208 | ' | |
Tax Expense from Amount Recognized in Other Comprehensive Income Related to Derivatives | 389 | 118 | |
Interest Expense | 64,485 | 59,428 | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Contract | ' | ' | |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | |
Beginning balance | -75,905 | ' | |
Amount recognized in other comprehensive loss on derivatives, net of tax expense of $736 | -2,380 | [1] | ' |
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | 12,077 | [2] | ' |
Net current period other comprehensive income | 9,697 | ' | |
Ending balance | -66,208 | ' | |
Tax Expense from Amount Recognized in Other Comprehensive Income Related to Derivatives | 736 | ' | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | |
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | 12,077 | [2] | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges Amortization [Member] | Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | |
Interest Expense | 9,327 | ' | |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges, Net Settlements [Member] | Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | |
Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | |
Tax Expense from Amount Reclassified from Accumulated Other Comprehensive Income into Income | 68 | ' | |
Interest Expense | $2,750 | ' | |
[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 three months ended March 31, 2014. | ||
[2] | This represents the amount of actual cash paid, net of taxes, related to the net settlements of the interest rate derivatives for the three months ended March 31, 2014 plus any effective amortization of net deferred interest rate derivative losses. |