Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | Apr. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Aircastle LTD | |
Entity Central Index Key | 1362988 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 81,181,133 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and cash equivalents | $329,992 | $169,656 |
Accounts receivable | 2,386 | 3,334 |
Restricted cash and cash equivalents | 86,961 | 98,884 |
Restricted liquidity facility collateral | 65,000 | 65,000 |
Flight equipment held for lease, net of accumulated depreciation of $1,294,063 and $1,362,647 | 5,712,950 | 5,579,718 |
Net investment in finance leases | 104,377 | 106,651 |
Unconsolidated equity method investment | 47,842 | 46,453 |
Other assets | 174,858 | 157,317 |
Total assets | 6,524,366 | 6,227,013 |
LIABILITIES | ||
Borrowings from secured financings | 1,343,237 | 1,396,454 |
Borrowings from unsecured financings | 2,700,000 | 2,400,000 |
Accounts payable, accrued expenses and other liabilities | 157,175 | 140,863 |
Lease rentals received in advance | 53,300 | 53,216 |
Liquidity facility | 65,000 | 65,000 |
Security deposits | 107,016 | 117,689 |
Maintenance payments | 345,086 | 333,456 |
Total liabilities | 4,770,814 | 4,506,678 |
Commitments and Contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Common shares, $.01 par value, 250,000,000 shares authorized, 80,983,249 shares issued and outstanding at December 31, 2014; and 81,181,133 shares issued and outstanding at March 31, 2015 | 812 | 810 |
Additional paid-in capital | 1,564,881 | 1,565,180 |
Retained earnings | 218,214 | 192,805 |
Accumulated other comprehensive loss | -30,355 | -38,460 |
Total shareholders’ equity | 1,753,552 | 1,720,335 |
Total liabilities and shareholders’ equity | $6,524,366 | $6,227,013 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Accumulated depreciation on flight equipment held for lease | $1,362,647 | $1,294,063 |
Borrowings from secured financings | $1,343,237 | $1,396,454 |
Common shares, par value | $0.01 | $0.01 |
Common shares, shares authorized | 250,000,000 | 250,000,000 |
Common shares, shares issued | 81,181,133 | 80,983,249 |
Common shares, shares outstanding | 81,181,133 | 80,983,249 |
Preference shares, par value | $0.01 | $0.01 |
Preference shares, shares authorized | 50,000,000 | 50,000,000 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Revenues: | ||
Lease rental revenue | $177,146 | $174,335 |
Finance lease revenue | 1,607 | 3,987 |
Amortization of lease premiums, discounts and lease incentives | -3,824 | -6,591 |
Maintenance revenue | 18,073 | 3,042 |
Total lease revenue | 193,002 | 174,773 |
Other revenue | 1,294 | 1,830 |
Total revenues | 194,296 | 176,603 |
Operating expenses: | ||
Depreciation | 74,846 | 73,927 |
Interest, net | 62,131 | 64,263 |
Selling, general and administrative (including non-cash share based payment expense of $990 and $1,170 for the three months ended March 31, 2014 and 2015, respectively) | 13,932 | 13,944 |
Impairment of Aircraft | 0 | 18,263 |
Maintenance and other costs | 2,943 | 1,863 |
Total expenses | 153,852 | 172,260 |
Other income (expense): | ||
Gain on sale of flight equipment | 6,253 | 1,110 |
Other | -6 | 757 |
Total other income (expense) | 6,247 | 1,867 |
Income from continuing operations before income taxes | 46,691 | 6,210 |
Income tax provision | 4,863 | 883 |
Earnings of unconsolidated equity method investment, net of tax | 1,441 | 450 |
Net income | $43,269 | $5,777 |
Earnings per common share — Basic: | ||
Net income (loss) per share (in dollars per share) | $0.53 | $0.07 |
Earnings per common share — Diluted: | ||
Net income per share | $0.53 | $0.07 |
Dividends declared per share | $0.22 | $0.20 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement [Abstract] | ||
Maintenance Revenue | $18,073 | $3,042 |
Non-cash share based payment expense | $1,170 | $990 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net income | $43,269 | $5,777 |
Other comprehensive income, net of tax: | ||
Net change in fair value of derivatives, net of tax expense of $804 and tax benefit of $3 for the three months ended March 31, 2014 and 2015, respectively | -128 | 370 |
Net derivative loss reclassified into earnings | 8,233 | 9,327 |
Other comprehensive income | 8,105 | 9,697 |
Total comprehensive income | $51,374 | $15,474 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ||||
Net of tax expense | ($3) | $804 | $825 | $389 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Unconsolidated equity method investment | $47,842 | |
Net income | 43,269 | 5,777 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 74,846 | 73,927 |
Amortization of deferred financing costs | 3,699 | 3,420 |
Amortization of net lease discounts and lease incentives | 3,824 | 6,591 |
Deferred income taxes | 2,110 | 1,347 |
Non-cash share based payment expense | 1,170 | 990 |
Cash flow hedges reclassified into earnings | 8,233 | 9,327 |
Security deposits and maintenance payments included in earnings | -4,481 | -14,786 |
Gain on sale of flight equipment | -6,253 | -1,110 |
Impairment of Aircraft | 0 | 18,263 |
Other | 209 | -2,162 |
Changes in certain assets and liabilities: | ||
Accounts receivable | 948 | -1,496 |
Other assets | -7,176 | -1,171 |
Accounts payable, accrued expenses and other liabilities | 12,874 | 2,907 |
Lease rentals received in advance | -344 | 1,167 |
Net cash provided by operating activities | 132,928 | 102,991 |
Cash flows from investing activities: | ||
Acquisition and improvement of flight equipment and lease incentives | -264,271 | -663,038 |
Proceeds from sale of flight equipment | 50,525 | 28,018 |
Payments for (Proceeds from) Other Deposits | 1,250 | -3,280 |
Collections on finance leases | 2,274 | 2,773 |
Other | -372 | -19 |
Net cash used in investing activities | -213,094 | -628,986 |
Cash flows from financing activities: | ||
Issuance of shares net of repurchases | 1,960 | 2,091 |
Proceeds from notes and term debt financings | 500,000 | 803,200 |
Securitization and term debt financing repayments | -253,681 | -287,778 |
Deferred financing costs | -8,971 | -14,755 |
Restricted liquidity facility collateral | 0 | 42,000 |
Liquidity facility | 0 | -42,000 |
Restricted cash and cash equivalents related to financing activities | -11,923 | -20,310 |
Security deposits and maintenance payments received | 33,365 | 41,901 |
Security deposits and maintenance payments returned | 22,314 | 25,681 |
Payments for terminated cash flow hedges | 0 | -33,427 |
Dividends paid | -17,860 | -16,201 |
Net cash provided by financing activities | 240,502 | 485,478 |
Net increase (decrease) in cash and cash equivalents | 160,336 | -40,517 |
Cash and cash equivalents at beginning of period | 169,656 | 654,613 |
Cash and cash equivalents at end of period | 329,992 | 614,096 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net of capitalized interest | 23,858 | 36,089 |
Cash paid for income taxes | 2,662 | 1,467 |
Supplemental disclosures of non-cash investing activities: | ||
Purchase deposits, advance lease rentals, security deposits and maintenance payments assumed in asset acquisitions | 3,050 | 1,522 |
Term debt financings assumed in asset acquisitions | 0 | 39,061 |
Advance lease rentals, security deposits, and maintenance payments settled in sale of flight equipment | $11,162 | $3,655 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2015 | |
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. | |
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, 2014. | |
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, 2015 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 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 ASC 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 2018. 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. | |
On May 28, 2014, the FASB and the International Accounting Standards Board (the “IASB”) (collectively, the Boards), jointly issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Lease contracts within the scope of ASC 840, Leases, are specifically excluded from ASU No. 2014-09. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The standard is effective for public entities beginning after December 15, 2017. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. The Company is currently evaluating the impacts of adoption and the implementation approach to be used. | |
On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40). The standard requires management of public companies to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management should evaluate whether there are conditions or events, considered in the aggregate, that raises substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued, when applicable). The standard is effective for annual periods ending after December 15, 2016 and interim periods thereafter, and early adoption is permitted. We are currently evaluating the effect of the ASU on our consolidated financial statements and related disclosures. | |
On April 7, 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance in the new standard is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. We are currently evaluating the effect of the ASU on our consolidated financial statements and related disclosures. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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, 2014 and March 31, 2015 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, 2014 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of December 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 | $ | 169,656 | $ | 169,656 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 98,884 | 98,884 | — | — | Market | |||||||||||||
Total | $ | 268,540 | $ | 268,540 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 2,879 | $ | — | $ | 2,879 | $ | — | Income | |||||||||
Fair Value Measurements at March 31, 2015 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of March 31, 2015 | 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 | $ | 329,992 | $ | 329,992 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 86,961 | 86,961 | — | — | Market | |||||||||||||
Total | $ | 416,953 | $ | 416,953 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 3,121 | $ | — | $ | 3,121 | $ | — | 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. | ||||||||||||||||||
For the three months ended March 31, 2014 and 2015, we had no transfers into or out of Level 3. | ||||||||||||||||||
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 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 which we refer to as “Transactional Impairments.” 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. | ||||||||||||||||||
During the first quarter of 2015, we did not incur any impairment charges. | ||||||||||||||||||
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, 2014 and March 31, 2015 are as follows: | ||||||||||||||||||
December 31, 2014 | March 31, 2015 | |||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
of Asset | of Asset | of Asset | of Asset | |||||||||||||||
(Liability) | (Liability) | (Liability) | (Liability) | |||||||||||||||
Securitization | $ | (391,680 | ) | $ | (376,752 | ) | $ | (361,011 | ) | $ | (347,596 | ) | ||||||
Credit Facilities | (200,000 | ) | (200,000 | ) | — | — | ||||||||||||
ECA term financings | (449,886 | ) | (471,918 | ) | (438,673 | ) | (463,800 | ) | ||||||||||
Bank financings | (554,888 | ) | (560,285 | ) | (543,553 | ) | (551,017 | ) | ||||||||||
Senior Notes | (2,200,000 | ) | (2,300,615 | ) | (2,700,000 | ) | (2,913,534 | ) | ||||||||||
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, 2015 | ||||||||||||||||||||
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, 2015 were as follows: | ||||||||||||||||||||
Year Ending December 31, | Amount | |||||||||||||||||||
Remainder of 2015 | $ | 527,280 | ||||||||||||||||||
2016 | 644,305 | |||||||||||||||||||
2017 | 543,005 | |||||||||||||||||||
2018 | 446,092 | |||||||||||||||||||
2019 | 378,953 | |||||||||||||||||||
Thereafter | 1,139,065 | |||||||||||||||||||
Total | $ | 3,678,700 | ||||||||||||||||||
Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
Region | 2014 | 2015 | ||||||||||||||||||
Asia and Pacific | 42 | % | 42 | % | ||||||||||||||||
Europe | 29 | % | 29 | % | ||||||||||||||||
South America | 9 | % | 14 | % | ||||||||||||||||
Middle East and Africa | 10 | % | 9 | % | ||||||||||||||||
North America | 10 | % | 6 | % | ||||||||||||||||
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, 2014, one customer accounted for 6% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. | ||||||||||||||||||||
For the three months ended March 31, 2015, one customer accounted for 7% 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 based on each lessee’s principal place of business: | ||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||
Country | Revenue | Percent of | Number | Revenue | Percent of | Number | ||||||||||||||
Total | of | Total | of | |||||||||||||||||
Revenue | Lessees | Revenue | Lessees | |||||||||||||||||
Netherlands(1) | $ | — | — | % | — | $ | 22,947 | 12 | % | 1 | ||||||||||
China(2) | 21,601 | 12 | % | 4 | — | — | % | — | ||||||||||||
(1) Total revenue was less than 10% for the three months ended March 31, 2014. Total revenue for the three months ended March 31, 2015 includes $13,186 of maintenance revenue related to a lease termination. | ||||||||||||||||||||
(2) Total revenue for the three months ended March 31, 2014 includes $11,264 of maintenance revenue related to a lease termination. Total revenue was less than 10% for the three months ended March 31, 2015. | ||||||||||||||||||||
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, 2014 | March 31, 2015 | |||||||||||||||||||
Region | Number | Net Book | Number | Net Book | ||||||||||||||||
of | Value % | of | Value % | |||||||||||||||||
Aircraft | Aircraft | |||||||||||||||||||
Asia and Pacific | 46 | 40 | % | 44 | 39 | % | ||||||||||||||
Europe | 65 | 29 | % | 65 | 28 | % | ||||||||||||||
South America | 13 | 14 | % | 15 | 15 | % | ||||||||||||||
Middle East and Africa | 6 | 10 | % | 6 | 9 | % | ||||||||||||||
North America | 17 | 7 | % | 17 | 7 | % | ||||||||||||||
Off-lease | 1 | (1) | — | % | 5 | (2) | 2 | % | ||||||||||||
Total | 148 | 100 | % | 152 | 100 | % | ||||||||||||||
_______________ | ||||||||||||||||||||
-1 | Consisted of one Airbus A320-200 aircraft which was subject to a commitment to lease and was delivered to our customer in February 2015. | |||||||||||||||||||
-2 | Consisted of five 737-800 aircraft, all of which are all subject to lease commitments and are expected to be delivered to customers during the second quarter of 2015. | |||||||||||||||||||
At December 31, 2014 and March 31, 2015, 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, 2014 and March 31, 2015, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $22,833 and $24,944, respectively. |
Net_Investment_in_Finance_Leas
Net Investment in Finance Leases | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Leases [Abstract] | |||||
Net Investment in Finance Leases | Net Investment in Finance Leases | ||||
At March 31, 2015, our net investment in finance leases represents six aircraft leased to three customers in the United States, one aircraft leased to a customer in Canada and one aircraft leased to a customer in Croatia. The following table lists the components of our net investment in finance leases at March 31, 2015: | |||||
Amount | |||||
Total lease payments to be received | $ | 72,212 | |||
Less: Unearned income | (19,124 | ) | |||
Estimated residual values of leased flight equipment (unguaranteed) | 51,289 | ||||
Net investment in finance leases | $ | 104,377 | |||
At March 31, 2015, minimum future lease payments on finance leases are as follows: | |||||
Year Ending December 31, | Amount | ||||
Remainder of 2015 | $ | 12,128 | |||
2016 | 16,009 | ||||
2017 | 15,024 | ||||
2018 | 6,980 | ||||
2019 | 6,900 | ||||
Thereafter | 15,171 | ||||
Total | $ | 72,212 | |||
Unconsolidated_Equity_Method_I
Unconsolidated Equity Method Investment (Notes) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Equity Method Investments and Joint Ventures [Abstract] | |||||
Unconsolidated Equity Method Investment | Unconsolidated Equity Method Investment | ||||
On December 19, 2013, the Company and an affiliate of Ontario Teachers’ Pension Plan (“Teachers’”) formed a joint venture (the “JV”), in which we hold a 30% equity interest, to invest in leased aircraft. Teachers’ holds more than 9.7% of our outstanding common shares. | |||||
The Company has recorded a $4,613 guarantee liability, which is reflected in Maintenance payments on the balance sheet and a $5,400 guarantee liability, which is reflected in Security deposits on the balance sheet. | |||||
Investment in joint venture at December 31, 2014 | $ | 46,453 | |||
Investment in joint venture | 1,337 | ||||
Earnings from joint venture, net of tax | 1,441 | ||||
Distributions | (1,389 | ) | |||
Investment in joint venture at March 31, 2015 | $ | 47,842 | |||
Variable_Interest_Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2015 | |
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 14 aircraft discussed below. | |
Securitization | |
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, 2015, the assets of ACS Ireland 2 include six 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, 2015 are $168,500. 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, 2015 are $123,955. | |
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, 2015 of $637,982 were included in our flight equipment held for lease. The consolidated debt outstanding of the Air Knight VIEs as of March 31, 2015 is $438,673. |
Secured_and_Unsecured_Debt_Fin
Secured and Unsecured Debt Financings | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Secured and Unsecured Debt Financings | Secured and Unsecured Debt Financings | |||||||||||||
The outstanding amounts of our secured and unsecured term debt financings are as follows: | ||||||||||||||
At December 31, 2014 | At March 31, 2015 | |||||||||||||
Debt Obligation | Outstanding | Outstanding | Number of Aircraft | Interest Rate(1) | Final Stated | |||||||||
Borrowings | Borrowings | Maturity(2) | ||||||||||||
Secured Debt Financings: | ||||||||||||||
Securitization No. 2 | 391,680 | 361,011 | 32 | 0.49% | 6/14/37 | |||||||||
ECA Term Financings | 449,886 | 438,673 | 8 | 3.02% to 3.96% | 12/3/21 to 11/30/24 | |||||||||
Bank Financings | 554,888 | 543,553 | 13 | 1.18% to 5.09% | 09/15/15 to 04/19/25 | |||||||||
Total secured debt financings | 1,396,454 | 1,343,237 | 53 | |||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2017 | 500,000 | 500,000 | 6.75% | 4/15/17 | ||||||||||
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 | 500,000 | 5.13% | 3/15/21 | ||||||||||
Senior Notes due 2022 | — | 500,000 | 5.50% | 2/15/22 | ||||||||||
Revolving Credit Facility | 200,000 | — | N/A | 3/31/18 | ||||||||||
Total unsecured debt financings | 2,400,000 | 2,700,000 | ||||||||||||
Total secured and unsecured debt financings | $ | 3,796,454 | $ | 4,043,237 | ||||||||||
-1 | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2, three of our Bank Financings, and our Revolving Credit Facility. 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. | |||||||||||||
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 | |||||||||
2014 | 2015 | Fee | on any Advances | |||||||||||
Securitization No. 2 | HSH Nordbank AG | $ | 65,000 | $ | 65,000 | 0.50% | 1M Libor + 0.75 | |||||||
Secured Debt Financings: | ||||||||||||||
ECA Term Financings | ||||||||||||||
As described in Note 6 - Variable Interest Entities, we refer to our COFACE-supported financings as “ECA Term Financings.” In addition, Aircastle Limited has guaranteed the repayment of the ECA Term Financings. The borrowings under these financings at March 31, 2015 have a weighted average rate of interest of 3.57%. | ||||||||||||||
Bank Financings | ||||||||||||||
Our Bank Financings contain, among other customary provisions, a $500,000 minimum net worth covenant and, in some cases, a cross-default to other financings with the same lender. In addition, Aircastle Limited has guaranteed the repayment of the Bank Financings. The borrowings under these financings at March 31, 2015 have a weighted average fixed rate of interest of 3.44%. | ||||||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2022 | ||||||||||||||
On January 15, 2015, Aircastle Limited issued $500,000 aggregate principal amount of Senior Notes due 2022 (the "2022 Senior Notes") at par. The 2022 Senior Notes will mature on February 15, 2022 and bear interest at the rate of 5.50% per annum, payable semi-annually on February 15 and August 15 of each year, commencing on August 15, 2015. Interest accrues on the 2022 Senior Notes from January 15, 2015. | ||||||||||||||
We may redeem the Senior Notes due 2022 at any time at a redemption price equal to (a) 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest thereon to, but not including, the redemption date and (b) the sum of the present values of the remaining scheduled payments of principal and interest on the notes from the redemption date through the maturity date of the notes (computed using a discount rate equal to the Treasury Rate (as defined in the indenture governing the notes) as of such redemption date plus 50 basis points). In addition, on or before February 15, 2018, we may redeem up to 35% of the aggregate principal amount of the notes issued under the indenture at a redemption price equal to 105.50% plus accrued and unpaid interest thereon to, but not including, the redemption date, with the net proceeds of certain equity offerings. If the Company undergoes a change of control, it must offer to repurchase the Senior Notes due 2022 at 101% of the principal amount, plus accrued and unpaid interest. The Senior Notes due 2022 are not guaranteed by any of the Company's subsidiaries or any third party. | ||||||||||||||
Revolving Credit Facility | ||||||||||||||
On January 26, 2015, we increased the size of our Revolving Credit Facility from $450,000 to $600,000. The facility was undrawn as of March 31, 2015. | ||||||||||||||
As of March 31, 2015, we are in compliance with all applicable covenants in all of our financings. |
Dividends
Dividends | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Dividends [Abstract] | ||||||||||||
Quarterly dividends declared by board of directors | Dividends | |||||||||||
The following table sets forth the quarterly dividends declared by our board of directors for the periods covered in this report: | ||||||||||||
Declaration Date | Dividend | Aggregate | Record Date | Payment Date | ||||||||
per Common | Dividend | |||||||||||
Share | Amount | |||||||||||
February 21, 2014 | $ | 0.2 | $ | 16,201 | March 7, 2014 | March 14, 2014 | ||||||
May 5, 2014 | $ | 0.2 | $ | 16,202 | May 30, 2014 | June 13, 2014 | ||||||
July 28, 2014 | $ | 0.2 | $ | 16,201 | August 29, 2014 | September 12, 2014 | ||||||
October 31, 2014 | $ | 0.22 | $ | 17,817 | November 28, 2014 | December 15, 2014 | ||||||
February 17, 2015 | $ | 0.22 | $ | 17,860 | March 6, 2015 | March 13, 2015 | ||||||
The following table sets forth the quarterly dividends declared by our board of directors for the periods covered in this report: | ||||||||||||
Declaration Date | Dividend | Aggregate | Record Date | Payment Date | ||||||||
per Common | Dividend | |||||||||||
Share | Amount | |||||||||||
February 21, 2014 | $ | 0.2 | $ | 16,201 | March 7, 2014 | March 14, 2014 | ||||||
May 5, 2014 | $ | 0.2 | $ | 16,202 | May 30, 2014 | June 13, 2014 | ||||||
July 28, 2014 | $ | 0.2 | $ | 16,201 | August 29, 2014 | September 12, 2014 | ||||||
October 31, 2014 | $ | 0.22 | $ | 17,817 | November 28, 2014 | December 15, 2014 | ||||||
February 17, 2015 | $ | 0.22 | $ | 17,860 | March 6, 2015 | March 13, 2015 | ||||||
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | ||||||||
2014 | 2015 | |||||||
Weighted-average shares: | ||||||||
Common shares outstanding | 80,387,371 | 80,564,440 | ||||||
Restricted common shares | 500,524 | 515,477 | ||||||
Total weighted-average shares | 80,887,895 | 81,079,917 | ||||||
Percentage of weighted-average shares: | ||||||||
Common shares outstanding | 99.38 | % | 99.36 | % | ||||
Restricted common shares | 0.62 | % | 0.64 | % | ||||
Total | 100 | % | 100 | % | ||||
The calculations of both basic and diluted earnings per share are as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Earnings per share – Basic: | ||||||||
Net income | $ | 5,777 | $ | 43,269 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares(a) | (36 | ) | (275 | ) | ||||
Earnings available to common shareholders – Basic | $ | 5,741 | $ | 42,994 | ||||
Weighted-average common shares outstanding – Basic | 80,387,371 | 80,564,440 | ||||||
Earnings per common share – Basic | $ | 0.07 | $ | 0.53 | ||||
Earnings per share – Diluted: | ||||||||
Net income | $ | 5,777 | $ | 43,269 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares(a) | (36 | ) | (275 | ) | ||||
Earnings available to common shareholders – Diluted | $ | 5,741 | $ | 42,994 | ||||
Weighted-average common shares outstanding – Basic | 80,387,371 | 80,564,440 | ||||||
Effect of dilutive shares(b) | — | — | ||||||
Weighted-average common shares outstanding – Diluted | 80,387,371 | 80,564,440 | ||||||
Earnings per common share – Diluted | $ | 0.07 | $ | 0.53 | ||||
(a) | For the three months ended March 31, 2014 and 2015, distributed and undistributed earnings to restricted shares is 0.62% and 0.64% 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, 2014 and 2015, we had no dilutive shares. |
Income_Taxes
Income Taxes | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 Singapore, Ireland 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, 2014 and 2015 were as follows: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
U.S. operations | $ | 765 | $ | 380 | ||||
Non-U.S. operations | 5,445 | 46,311 | ||||||
Total | $ | 6,210 | $ | 46,691 | ||||
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, 2014 and 2015 was determined based upon estimates of the Company’s consolidated effective income tax rates for the years ending December 31, 2014 and 2015, respectively. | ||||||||
The Company’s effective tax rate for the three months ended March 31, 2014 was 14.2% compared to 10.4% for the three months ended March 31, 2015. 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, | ||||||||
2014 | 2015 | |||||||
Notional U.S. federal income tax expense (benefit) at the statutory rate | $ | 2,173 | $ | 16,342 | ||||
U.S. state and local income tax, net | 79 | 42 | ||||||
Non-U.S. operations: | ||||||||
Bermuda | 3,429 | (8,527 | ) | |||||
Ireland | (3,289 | ) | (1,122 | ) | ||||
Singapore | (1,195 | ) | (1,356 | ) | ||||
Other | (598 | ) | (678 | ) | ||||
Non-deductible expenses in the U.S. | 299 | 170 | ||||||
Other | (15 | ) | (8 | ) | ||||
Income tax provision | $ | 883 | $ | 4,863 | ||||
Interest_Net
Interest, Net | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Interest Income (Expense), Net [Abstract] | ||||||||
Interest Net | Interest, Net | |||||||
The following table shows the components of interest, net: | ||||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities | $ | 51,685 | $ | 50,235 | ||||
Hedge ineffectiveness losses | 53 | — | ||||||
Amortization of interest rate derivatives related to deferred losses | 9,327 | 8,233 | ||||||
Amortization of deferred financing fees | 3,420 | 3,699 | ||||||
Interest Expense | 64,485 | 62,167 | ||||||
Less interest income | (222 | ) | (36 | ) | ||||
Interest, net | $ | 64,263 | $ | 62,131 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies |
At March 31, 2015, we had commitments to acquire 11 aircraft for $321,925. As of April 30, 2015, after taking into account additional commitments and aircraft acquisitions during April 2015, we have acquired or have commitments to acquire 25 aircraft for $769,225 that we expect to complete by September 30, 2015. |
Other_Assets
Other Assets | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | |||||||
2014 | 2015 | |||||||
Deferred debt issuance costs, net of amortization of $53,094 and $56,329, respectively | $ | 51,867 | $ | 57,595 | ||||
Deferred federal income tax asset | 567 | 490 | ||||||
Lease incentives and lease premiums, net of amortization of $26,477 and $30,664, respectively | 75,587 | 77,173 | ||||||
Flight equipment held for sale | 7,455 | 5,180 | ||||||
Other assets | 21,841 | 34,420 | ||||||
Total other assets | $ | 157,317 | $ | 174,858 | ||||
Accounts_Payable_Accrued_Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | |||||||
2014 | 2015 | |||||||
Accounts payable and accrued expenses | $ | 40,765 | $ | 30,708 | ||||
Deferred federal income tax liability | 37,340 | 39,370 | ||||||
Accrued interest payable | 27,795 | 54,348 | ||||||
Lease discounts, net of amortization of $9,247 and $11,704 respectively | 32,084 | 29,628 | ||||||
Fair value of derivative liabilities | 2,879 | 3,121 | ||||||
Total accounts payable, accrued expenses and other liabilities | $ | 140,863 | $ | 157,175 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Notes) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | 2015 | |||||||
Beginning balance | $ | (75,905 | ) | $ | (38,460 | ) | ||
Amount recognized in other comprehensive loss on derivatives, net of tax expense of $736 and tax benefit of $14, respectively | (2,380 | ) | (1,078 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss into income, net of tax expense of $68 and $11, respectively | 12,077 | 9,183 | ||||||
Net current period other comprehensive income | 9,697 | 8,105 | ||||||
Ending balance | $ | (66,208 | ) | $ | (30,355 | ) | ||
(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 | 2015 | |||||||
Amount of effective amortization of net deferred interest rate derivative losses(b) | $ | 9,327 | $ | 8,233 | ||||
Effective amount of net settlements of interest rate derivatives, net of tax expense of $68 and $11, respectively(b) | 2,750 | 950 | ||||||
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | $ | 12,077 | $ | 9,183 | ||||
(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. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
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, 2014. | |
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 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 ASC 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 2018. 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. | |
On May 28, 2014, the FASB and the International Accounting Standards Board (the “IASB”) (collectively, the Boards), jointly issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). Lease contracts within the scope of ASC 840, Leases, are specifically excluded from ASU No. 2014-09. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The standard is effective for public entities beginning after December 15, 2017. The standard allows for either “full retrospective” adoption, meaning the standard is applied to all of the periods presented, or “modified retrospective” adoption, meaning the standard is applied only to the most current period presented in the financial statements. We are evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. The Company is currently evaluating the impacts of adoption and the implementation approach to be used. | |
On August 27, 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40). The standard requires management of public companies to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern and, if so, disclose that fact. Management should evaluate whether there are conditions or events, considered in the aggregate, that raises substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued (or available to be issued, when applicable). The standard is effective for annual periods ending after December 15, 2016 and interim periods thereafter, and early adoption is permitted. We are currently evaluating the effect of the ASU on our consolidated financial statements and related disclosures. | |
On April 7, 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance in the new standard is limited to the presentation of debt issuance costs and does not affect the recognition and measurement of debt issuance costs. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. We are currently evaluating the effect of the ASU on our consolidated financial statements and related disclosures. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||
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, 2014 and March 31, 2015 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, 2014 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of December 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 | $ | 169,656 | $ | 169,656 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 98,884 | 98,884 | — | — | Market | |||||||||||||
Total | $ | 268,540 | $ | 268,540 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 2,879 | $ | — | $ | 2,879 | $ | — | Income | |||||||||
Fair Value Measurements at March 31, 2015 Using Fair Value Hierarchy | ||||||||||||||||||
Fair Value as of March 31, 2015 | 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 | $ | 329,992 | $ | 329,992 | $ | — | $ | — | Market | |||||||||
Restricted cash and cash equivalents | 86,961 | 86,961 | — | — | Market | |||||||||||||
Total | $ | 416,953 | $ | 416,953 | $ | — | $ | — | ||||||||||
Liabilities: | ||||||||||||||||||
Derivative liabilities | $ | 3,121 | $ | — | $ | 3,121 | $ | — | Income | |||||||||
Carrying amounts and fair values of financial instruments | The carrying amounts and fair values of our financial instruments at December 31, 2014 and March 31, 2015 are as follows: | |||||||||||||||||
December 31, 2014 | March 31, 2015 | |||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||
of Asset | of Asset | of Asset | of Asset | |||||||||||||||
(Liability) | (Liability) | (Liability) | (Liability) | |||||||||||||||
Securitization | $ | (391,680 | ) | $ | (376,752 | ) | $ | (361,011 | ) | $ | (347,596 | ) | ||||||
Credit Facilities | (200,000 | ) | (200,000 | ) | — | — | ||||||||||||
ECA term financings | (449,886 | ) | (471,918 | ) | (438,673 | ) | (463,800 | ) | ||||||||||
Bank financings | (554,888 | ) | (560,285 | ) | (543,553 | ) | (551,017 | ) | ||||||||||
Senior Notes | (2,200,000 | ) | (2,300,615 | ) | (2,700,000 | ) | (2,913,534 | ) |
Lease_Rental_Revenues_and_Flig1
Lease Rental Revenues and Flight Equipment Held for Lease (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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, 2015 were as follows: | |||||||||||||||||||
Year Ending December 31, | Amount | |||||||||||||||||||
Remainder of 2015 | $ | 527,280 | ||||||||||||||||||
2016 | 644,305 | |||||||||||||||||||
2017 | 543,005 | |||||||||||||||||||
2018 | 446,092 | |||||||||||||||||||
2019 | 378,953 | |||||||||||||||||||
Thereafter | 1,139,065 | |||||||||||||||||||
Total | $ | 3,678,700 | ||||||||||||||||||
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 | 2014 | 2015 | ||||||||||||||||||
Asia and Pacific | 42 | % | 42 | % | ||||||||||||||||
Europe | 29 | % | 29 | % | ||||||||||||||||
South America | 9 | % | 14 | % | ||||||||||||||||
Middle East and Africa | 10 | % | 9 | % | ||||||||||||||||
North America | 10 | % | 6 | % | ||||||||||||||||
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 based on each lessee’s principal place of business: | |||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||
2014 | 2015 | |||||||||||||||||||
Country | Revenue | Percent of | Number | Revenue | Percent of | Number | ||||||||||||||
Total | of | Total | of | |||||||||||||||||
Revenue | Lessees | Revenue | Lessees | |||||||||||||||||
Netherlands(1) | $ | — | — | % | — | $ | 22,947 | 12 | % | 1 | ||||||||||
China(2) | 21,601 | 12 | % | 4 | — | — | % | — | ||||||||||||
(1) Total revenue was less than 10% for the three months ended March 31, 2014. Total revenue for the three months ended March 31, 2015 includes $13,186 of maintenance revenue related to a lease termination. | ||||||||||||||||||||
(2) Total revenue for the three months ended March 31, 2014 includes $11,264 of maintenance revenue related to a lease termination. Total revenue was less than 10% for the three months ended March 31, 2015. | ||||||||||||||||||||
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, 2014 | March 31, 2015 | |||||||||||||||||||
Region | Number | Net Book | Number | Net Book | ||||||||||||||||
of | Value % | of | Value % | |||||||||||||||||
Aircraft | Aircraft | |||||||||||||||||||
Asia and Pacific | 46 | 40 | % | 44 | 39 | % | ||||||||||||||
Europe | 65 | 29 | % | 65 | 28 | % | ||||||||||||||
South America | 13 | 14 | % | 15 | 15 | % | ||||||||||||||
Middle East and Africa | 6 | 10 | % | 6 | 9 | % | ||||||||||||||
North America | 17 | 7 | % | 17 | 7 | % | ||||||||||||||
Off-lease | 1 | (1) | — | % | 5 | (2) | 2 | % | ||||||||||||
Total | 148 | 100 | % | 152 | 100 | % | ||||||||||||||
_______________ | ||||||||||||||||||||
-1 | Consisted of one Airbus A320-200 aircraft which was subject to a commitment to lease and was delivered to our customer in February 2015. | |||||||||||||||||||
-2 | Consisted of five 737-800 aircraft, all of which are all subject to lease commitments and are expected to be delivered to customers during the second quarter of 2015. | |||||||||||||||||||
Net_Investment_in_Finance_Leas1
Net Investment in Finance Leases (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Leases [Abstract] | |||||
Schedule Of Components Of Investment In Finance Leases | The following table lists the components of our net investment in finance leases at March 31, 2015: | ||||
Amount | |||||
Total lease payments to be received | $ | 72,212 | |||
Less: Unearned income | (19,124 | ) | |||
Estimated residual values of leased flight equipment (unguaranteed) | 51,289 | ||||
Net investment in finance leases | $ | 104,377 | |||
Schedule of Future Minimum Lease Payments for Capital Leases | At March 31, 2015, minimum future lease payments on finance leases are as follows: | ||||
Year Ending December 31, | Amount | ||||
Remainder of 2015 | $ | 12,128 | |||
2016 | 16,009 | ||||
2017 | 15,024 | ||||
2018 | 6,980 | ||||
2019 | 6,900 | ||||
Thereafter | 15,171 | ||||
Total | $ | 72,212 | |||
Unconsolidated_Equity_Method_I1
Unconsolidated Equity Method Investment (Tables) | 3 Months Ended | ||||
Mar. 31, 2015 | |||||
Equity Method Investments and Joint Ventures [Abstract] | |||||
Equity Method Investments | The Company has recorded a $4,613 guarantee liability, which is reflected in Maintenance payments on the balance sheet and a $5,400 guarantee liability, which is reflected in Security deposits on the balance sheet. | ||||
Investment in joint venture at December 31, 2014 | $ | 46,453 | |||
Investment in joint venture | 1,337 | ||||
Earnings from joint venture, net of tax | 1,441 | ||||
Distributions | (1,389 | ) | |||
Investment in joint venture at March 31, 2015 | $ | 47,842 | |||
Secured_and_Unsecured_Debt_Fin1
Secured and Unsecured Debt Financings (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||
Outstanding amounts of secured and unsecured term debt financings | 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 | |||||||||
2014 | 2015 | Fee | on any Advances | |||||||||||
Securitization No. 2 | HSH Nordbank AG | $ | 65,000 | $ | 65,000 | 0.50% | 1M Libor + 0.75 | |||||||
The outstanding amounts of our secured and unsecured term debt financings are as follows: | ||||||||||||||
At December 31, 2014 | At March 31, 2015 | |||||||||||||
Debt Obligation | Outstanding | Outstanding | Number of Aircraft | Interest Rate(1) | Final Stated | |||||||||
Borrowings | Borrowings | Maturity(2) | ||||||||||||
Secured Debt Financings: | ||||||||||||||
Securitization No. 2 | 391,680 | 361,011 | 32 | 0.49% | 6/14/37 | |||||||||
ECA Term Financings | 449,886 | 438,673 | 8 | 3.02% to 3.96% | 12/3/21 to 11/30/24 | |||||||||
Bank Financings | 554,888 | 543,553 | 13 | 1.18% to 5.09% | 09/15/15 to 04/19/25 | |||||||||
Total secured debt financings | 1,396,454 | 1,343,237 | 53 | |||||||||||
Unsecured Debt Financings: | ||||||||||||||
Senior Notes due 2017 | 500,000 | 500,000 | 6.75% | 4/15/17 | ||||||||||
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 | 500,000 | 5.13% | 3/15/21 | ||||||||||
Senior Notes due 2022 | — | 500,000 | 5.50% | 2/15/22 | ||||||||||
Revolving Credit Facility | 200,000 | — | N/A | 3/31/18 | ||||||||||
Total unsecured debt financings | 2,400,000 | 2,700,000 | ||||||||||||
Total secured and unsecured debt financings | $ | 3,796,454 | $ | 4,043,237 | ||||||||||
-1 | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2, three of our Bank Financings, and our Revolving Credit Facility. 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. | |||||||||||||
Dividends_Tables
Dividends (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Dividends [Abstract] | ||||||||||||
Quarterly dividends declared by board of directors | Dividends | |||||||||||
The following table sets forth the quarterly dividends declared by our board of directors for the periods covered in this report: | ||||||||||||
Declaration Date | Dividend | Aggregate | Record Date | Payment Date | ||||||||
per Common | Dividend | |||||||||||
Share | Amount | |||||||||||
February 21, 2014 | $ | 0.2 | $ | 16,201 | March 7, 2014 | March 14, 2014 | ||||||
May 5, 2014 | $ | 0.2 | $ | 16,202 | May 30, 2014 | June 13, 2014 | ||||||
July 28, 2014 | $ | 0.2 | $ | 16,201 | August 29, 2014 | September 12, 2014 | ||||||
October 31, 2014 | $ | 0.22 | $ | 17,817 | November 28, 2014 | December 15, 2014 | ||||||
February 17, 2015 | $ | 0.22 | $ | 17,860 | March 6, 2015 | March 13, 2015 | ||||||
The following table sets forth the quarterly dividends declared by our board of directors for the periods covered in this report: | ||||||||||||
Declaration Date | Dividend | Aggregate | Record Date | Payment Date | ||||||||
per Common | Dividend | |||||||||||
Share | Amount | |||||||||||
February 21, 2014 | $ | 0.2 | $ | 16,201 | March 7, 2014 | March 14, 2014 | ||||||
May 5, 2014 | $ | 0.2 | $ | 16,202 | May 30, 2014 | June 13, 2014 | ||||||
July 28, 2014 | $ | 0.2 | $ | 16,201 | August 29, 2014 | September 12, 2014 | ||||||
October 31, 2014 | $ | 0.22 | $ | 17,817 | November 28, 2014 | December 15, 2014 | ||||||
February 17, 2015 | $ | 0.22 | $ | 17,860 | March 6, 2015 | March 13, 2015 | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | ||||||||
2014 | 2015 | |||||||
Weighted-average shares: | ||||||||
Common shares outstanding | 80,387,371 | 80,564,440 | ||||||
Restricted common shares | 500,524 | 515,477 | ||||||
Total weighted-average shares | 80,887,895 | 81,079,917 | ||||||
Percentage of weighted-average shares: | ||||||||
Common shares outstanding | 99.38 | % | 99.36 | % | ||||
Restricted common shares | 0.62 | % | 0.64 | % | ||||
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, | ||||||||
2014 | 2015 | |||||||
Earnings per share – Basic: | ||||||||
Net income | $ | 5,777 | $ | 43,269 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares(a) | (36 | ) | (275 | ) | ||||
Earnings available to common shareholders – Basic | $ | 5,741 | $ | 42,994 | ||||
Weighted-average common shares outstanding – Basic | 80,387,371 | 80,564,440 | ||||||
Earnings per common share – Basic | $ | 0.07 | $ | 0.53 | ||||
Earnings per share – Diluted: | ||||||||
Net income | $ | 5,777 | $ | 43,269 | ||||
Less: Distributed and undistributed earnings allocated to restricted common shares(a) | (36 | ) | (275 | ) | ||||
Earnings available to common shareholders – Diluted | $ | 5,741 | $ | 42,994 | ||||
Weighted-average common shares outstanding – Basic | 80,387,371 | 80,564,440 | ||||||
Effect of dilutive shares(b) | — | — | ||||||
Weighted-average common shares outstanding – Diluted | 80,387,371 | 80,564,440 | ||||||
Earnings per common share – Diluted | $ | 0.07 | $ | 0.53 | ||||
(a) | For the three months ended March 31, 2014 and 2015, distributed and undistributed earnings to restricted shares is 0.62% and 0.64% 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, 2014 and 2015, we had no dilutive shares. |
Income_Taxes_Tables
Income Taxes (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, 2014 and 2015 were as follows: | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
U.S. operations | $ | 765 | $ | 380 | ||||
Non-U.S. operations | 5,445 | 46,311 | ||||||
Total | $ | 6,210 | $ | 46,691 | ||||
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, | ||||||||
2014 | 2015 | |||||||
Notional U.S. federal income tax expense (benefit) at the statutory rate | $ | 2,173 | $ | 16,342 | ||||
U.S. state and local income tax, net | 79 | 42 | ||||||
Non-U.S. operations: | ||||||||
Bermuda | 3,429 | (8,527 | ) | |||||
Ireland | (3,289 | ) | (1,122 | ) | ||||
Singapore | (1,195 | ) | (1,356 | ) | ||||
Other | (598 | ) | (678 | ) | ||||
Non-deductible expenses in the U.S. | 299 | 170 | ||||||
Other | (15 | ) | (8 | ) | ||||
Income tax provision | $ | 883 | $ | 4,863 | ||||
Interest_Net_Tables
Interest, Net (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Interest Income (Expense), Net [Abstract] | ||||||||
Components of Interest | The following table shows the components of interest, net: | |||||||
Three Months Ended March 31, | ||||||||
2014 | 2015 | |||||||
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities | $ | 51,685 | $ | 50,235 | ||||
Hedge ineffectiveness losses | 53 | — | ||||||
Amortization of interest rate derivatives related to deferred losses | 9,327 | 8,233 | ||||||
Amortization of deferred financing fees | 3,420 | 3,699 | ||||||
Interest Expense | 64,485 | 62,167 | ||||||
Less interest income | (222 | ) | (36 | ) | ||||
Interest, net | $ | 64,263 | $ | 62,131 | ||||
Other_Assets_Tables
Other Assets (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | |||||||
2014 | 2015 | |||||||
Deferred debt issuance costs, net of amortization of $53,094 and $56,329, respectively | $ | 51,867 | $ | 57,595 | ||||
Deferred federal income tax asset | 567 | 490 | ||||||
Lease incentives and lease premiums, net of amortization of $26,477 and $30,664, respectively | 75,587 | 77,173 | ||||||
Flight equipment held for sale | 7,455 | 5,180 | ||||||
Other assets | 21,841 | 34,420 | ||||||
Total other assets | $ | 157,317 | $ | 174,858 | ||||
Accounts_Payable_Accrued_Expen1
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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, | |||||||
2014 | 2015 | |||||||
Accounts payable and accrued expenses | $ | 40,765 | $ | 30,708 | ||||
Deferred federal income tax liability | 37,340 | 39,370 | ||||||
Accrued interest payable | 27,795 | 54,348 | ||||||
Lease discounts, net of amortization of $9,247 and $11,704 respectively | 32,084 | 29,628 | ||||||
Fair value of derivative liabilities | 2,879 | 3,121 | ||||||
Total accounts payable, accrued expenses and other liabilities | $ | 140,863 | $ | 157,175 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
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 | 2015 | |||||||
Beginning balance | $ | (75,905 | ) | $ | (38,460 | ) | ||
Amount recognized in other comprehensive loss on derivatives, net of tax expense of $736 and tax benefit of $14, respectively | (2,380 | ) | (1,078 | ) | ||||
Amounts reclassified from accumulated other comprehensive loss into income, net of tax expense of $68 and $11, respectively | 12,077 | 9,183 | ||||||
Net current period other comprehensive income | 9,697 | 8,105 | ||||||
Ending balance | $ | (66,208 | ) | $ | (30,355 | ) | ||
(a) All amounts are net of tax. Amounts in parentheses indicate debits. | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||||
Reclassifications from accumulated other comprehensive loss(a) | Three Months Ended March 31, | |||||||
2014 | 2015 | |||||||
Amount of effective amortization of net deferred interest rate derivative losses(b) | $ | 9,327 | $ | 8,233 | ||||
Effective amount of net settlements of interest rate derivatives, net of tax expense of $68 and $11, respectively(b) | 2,750 | 950 | ||||||
Amount of loss reclassified from accumulated other comprehensive loss into income(c) | $ | 12,077 | $ | 9,183 | ||||
(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. | ||||||||
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 $19,749, of which $2,441 relates to Term Financing No. 1 interest rate derivatives, $10,787 relates to Securitization No. l interest rate derivatives, $5,282 relates to ECA Term Financings for New A330 Aircraft, and $1,239 relates to other financings. | ||||||||
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 $2,632. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2015 | |
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, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Liabilities: | ||
Derivative liabilities | $3,121 | $2,879 |
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 329,992 | 169,656 |
Restricted cash and cash equivalents | 86,961 | 98,884 |
Total | 416,953 | 268,540 |
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 | 2,879 | |
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 |
Recurring | Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 329,992 | 169,656 |
Restricted cash and cash equivalents | 86,961 | 98,884 |
Total | 416,953 | 268,540 |
Liabilities: | ||
Derivative liabilities | $3,121 | $2,879 |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Liability | $3,121 | $2,879 | ||
Restricted Cash and Cash Equivalents | 86,961 | 98,884 | ||
Cash and Cash Equivalents, at Carrying Value | 329,992 | 169,656 | 614,096 | 654,613 |
Fair Value, Inputs, Level 1 [Member] | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Liability | 0 | 0 | ||
Estimate of Fair Value Measurement [Member] | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Liability | $3,121 | $2,879 |
Fair_Value_Measurements_Detail2
Fair Value Measurements (Details 3) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Securitization | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | ($361,011) | ($391,680) |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Revolving Credit Facility [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | -200,000 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | ECA Term Financings {Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | -438,673 | -449,886 |
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 | -543,553 | -554,888 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | Securitization | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | -347,596 | -376,752 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | Revolving Credit Facility [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | -200,000 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | ECA Term Financings {Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | -463,800 | -471,918 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | Bank financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | -551,017 | -560,285 |
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 | -2,700,000 | -2,200,000 |
Unsecured Debt | Quoted Prices In Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement [Member] | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | ($2,913,534) | ($2,300,615) |
Fair_Value_Measurements_Detail3
Fair Value Measurements (Details Textual) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Property Subject to or Available for Operating Lease, Net | $5,712,950 | $5,579,718 | |
Impairment of Aircraft | 0 | 18,263 | |
Maintenance Revenue | 18,073 | 3,042 | |
Other revenue | 1,294 | 1,830 | |
Transactional [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Number of Aircraft Impaired | 2 | ||
Impairment of Aircraft | 18,263 | ||
Maintenance Revenue | $17,176 | ||
Transactional [Member] | Passenger Aircraft impaired [Member] | |||
Impaired Long-Lived Assets Held and Used [Line Items] | |||
Number of Aircraft Impaired | 1 | ||
Transactional [Member] | freighter aircraft impaired [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, 2015 |
In Thousands, unless otherwise specified | |
Annual future minimum lease rentals receivable | |
Remainder of 2015 | $527,280 |
2014 | 644,305 |
2015 | 543,005 |
2016 | 446,092 |
2017 | 378,953 |
Thereafter | 1,139,065 |
Total | $3,678,700 |
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, 2015 | Mar. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 100.00% | 100.00% |
Asia and Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 29.00% | 29.00% |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 42.00% | 42.00% |
Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 6.00% | 10.00% |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 14.00% | 9.00% |
Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 9.00% | 10.00% |
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, 2015 | Mar. 31, 2014 |
Revenue attributable to individual countries | ||
Revenue | $177,146 | $174,335 |
Maintenance revenue | 18,073 | 3,042 |
NETHERLANDS | ||
Revenue attributable to individual countries | ||
Revenue | 22,947 | 0 |
Percentage of geographic concentration | 12.00% | 0.00% |
Number of Lessees | 1 | 0 |
Maintenance revenue | 13,186 | |
China | ||
Revenue attributable to individual countries | ||
Revenue | 0 | 21,601 |
Percentage of geographic concentration | 0.00% | 12.00% |
Number of Lessees | 0 | 4 |
Maintenance revenue | $11,264 |
Lease_Rental_Revenues_and_Flig5
Lease Rental Revenues and Flight Equipment Held for Lease (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Aircraft | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $177,146 | $174,335 | ||
Maintenance Revenue | 18,073 | 3,042 | ||
Number of Aircraft | 152 | 148 | ||
Other Revenue, Net | 1,294 | 1,830 | ||
NETHERLANDS | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 22,947 | 0 | ||
Maintenance Revenue | 13,186 | |||
Percentage of geographic concentration | 12.00% | 0.00% | ||
Number of Lessees | 1 | 0 | ||
Asia and Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Aircraft | 65 | 65 | ||
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Aircraft | 44 | 46 | ||
Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Aircraft | 17 | 17 | ||
China | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 0 | 21,601 | ||
Maintenance Revenue | $11,264 | |||
Percentage of geographic concentration | 0.00% | 12.00% | ||
Number of Lessees | 0 | 4 | ||
North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Aircraft | 15 | 13 | ||
Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Aircraft | 6 | 6 | ||
Off Lease | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Number of Aircraft | 5 | 1 | [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 | Asia and Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 28.00% | 29.00% | ||
Geographic Concentration Risk | Net Book Value | Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 39.00% | 40.00% | ||
Geographic Concentration Risk | Net Book Value | Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 7.00% | 7.00% | ||
Geographic Concentration Risk | Net Book Value | North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 15.00% | 14.00% | ||
Geographic Concentration Risk | Net Book Value | Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 9.00% | 10.00% | ||
Geographic Concentration Risk | Net Book Value | Off Lease | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 2.00% | 0.00% | [1] | |
[1] | Consisted of one Airbus A320-200 aircraft which was subject to a commitment to lease and was delivered to our customer in February 2015. |
Lease_Rental_Revenues_and_Flig6
Lease Rental Revenues and Flight Equipment Held for Lease (Details 4) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Offlease Aircraft Marketed for Lease | 5 | 1 | |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 0.00% | 12.00% | |
Geographic Concentration Risk | Net Book Value | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 100.00% | 100.00% |
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, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Lessee | Lessee | ||
Customer Group One | |||
Revenue, Major Customer [Line Items] | |||
Entity-Wide Revenue, Major Customer, Number | 1 | 1 | |
Other Customers | |||
Revenue, Major Customer [Line Items] | |||
Percentage of lease rental revenues accounted by customers | 5.00% | 5.00% | |
Lease Rental Revenue | Customer Concentration Risk | Customer Group One | |||
Revenue, Major Customer [Line Items] | |||
Percentage of geographic concentration | 7.00% | 6.00% | |
Maintenance Payments {Member] | |||
Revenue, Major Customer [Line Items] | |||
Amounts of lease incentive liabilities recorded in the consolidated balance sheets | 24,944 | $22,833 |
Net_Investment_in_Finance_Leas2
Net Investment in Finance Leases Narrative (Details) | Mar. 31, 2015 |
Aircraft | |
Customer | |
United States | |
Capital Leased Assets [Line Items] | |
Capital Leased Assets, Number of Units | 6 |
Capital Leased Assets, Number of Customers | 3 |
CANADA | |
Capital Leased Assets [Line Items] | |
Capital Leased Assets, Number of Units | 1 |
CROATIA | |
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, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Capital Leases, Future Minimum Payments Receivable, Next Twelve Months | $12,128 | |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ||
Total lease payments to be received | 72,212 | |
Less: Unearned income | -19,124 | |
Estimated residual values of leased flight equipment (unguaranteed) | 51,289 | |
Net investment in finance leases | 104,377 | 106,651 |
2014 | 16,009 | |
2015 | 15,024 | |
2016 | 6,980 | |
2017 | 6,900 | |
Thereafter | 15,171 | |
Capital Leases, Future Minimum Payments Receivable | $72,212 |
Unconsolidated_Equity_Method_I2
Unconsolidated Equity Method Investment (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Unconsolidated equity method investment | $47,842 | $46,453 | |
Customer Advances and Deposits | 345,086 | 333,456 | |
Earnings of unconsolidated equity method investment, net of tax | 1,441 | 450 | |
Related Party Transaction, Percentage Ownership of Company Outstanding Shares | 9.70% | ||
Equity Method Investee | OTTP | |||
Unconsolidated equity method investment | 47,842 | 46,453 | |
Equity Method Investment, Ownership Percentage | 30.00% | ||
Equity Method Investments Before Earnings | 1,337 | ||
Earnings of unconsolidated equity method investment, net of tax | 1,441 | ||
Distributions from unconsolidated equity method investment in excess of earnings | -1,389 | ||
Maintenance Payments {Member] | Equity Method Investee | OTTP | |||
Customer Advances and Deposits | 4,613 | ||
security deposit [Member] | Equity Method Investee | OTTP | |||
Customer Advances and Deposits | $5,400 |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Entity | ||
Aircraft | ||
Variable Interest Entity [Line Items] | ||
Borrowings from secured financings | 1,343,237 | $1,396,454 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of Consolidated Variable Interest Entities | 7 | |
Number of Aircrafts | 14 | |
ACS Ireland VIEs | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Percentage of common shares owned | 95.00% | |
Limitation of trust risk to annual dividend | 2 | |
Number of aircraft transferred to historical cost basis | 6 | |
Combined assets | 168,500 | |
Combined Liabilities | 123,955 | |
ACS Ireland VIEs | Variable Interest Entity, Primary Beneficiary | Class E-1 Securities | ||
Variable Interest Entity [Line Items] | ||
Borrowings from secured financings | 40,351 | |
Air Knight VIEs | Variable Interest Entity, Primary Beneficiary | ECA Term Financings {Member] | ||
Variable Interest Entity [Line Items] | ||
Type of term loans | 8 | |
Debt instrument, term | 12 years | |
Net book value of flight equipment held for lease | 637,982 | |
Consolidated debt outstanding | 438,673 |
Secured_and_Unsecured_Debt_Fin2
Secured and Unsecured Debt Financings (Details) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jan. 26, 2015 | |
Aircraft | |||||
Debt Instrument [Line Items] | |||||
Repayments of Long-term Debt | $253,681 | $287,778 | |||
Term debt financings assumed in asset acquisitions | 0 | 39,061 | |||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from secured financings | 1,343,237 | 1,396,454 | |||
Number of Aircraft Financed | 53 | ||||
Borrowings from unsecured financings | 2,700,000 | 2,400,000 | |||
Total secured and unsecured debt financings | 4,043,237 | 3,796,454 | |||
Line of Credit | Revolving Credit Facility [Member] | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from unsecured financings | 0 | 200,000 | |||
2013 Revolving Credit Facility | Line of Credit | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | 450,000 | 600,000 | |||
Securitization No. 2 | Secured Debt | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from secured financings | 361,011 | 391,680 | |||
Number of Aircraft Financed | 32 | ||||
Interest rate | 0.49% | [1] | |||
ECA Term Financings {Member] | Secured Debt | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Number of Aircraft Financed | 8 | ||||
ECA Term Financings {Member] | Notes Payable, Other Payables | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from secured financings | 438,673 | 449,886 | |||
Minimum effective interest rate | 3.02% | [1] | |||
Maximum effective interest rate | 3.96% | [1] | |||
Bank Financings | Secured Debt | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Number of Aircraft Financed | 13 | ||||
Bank Financings | Notes Payable to Banks | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from secured financings | 543,553 | 554,888 | |||
Minimum effective interest rate | 1.18% | [1] | |||
Maximum effective interest rate | 5.09% | [1] | |||
Senior Notes Due 2017 | Senior Notes | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from unsecured financings | 500,000 | 500,000 | |||
Interest rate | 6.75% | [1] | |||
Senior Notes Due 2018 with 4.625 Interest Rate | Senior Notes | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from unsecured financings | 400,000 | 400,000 | |||
Interest rate | 4.63% | [1] | |||
Senior Notes Due 2019 | Senior Notes | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from unsecured financings | 500,000 | 500,000 | |||
Interest rate | 6.25% | [1] | |||
Senior Notes Due 2020 | Senior Notes | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from unsecured financings | 300,000 | 300,000 | |||
Interest rate | 7.63% | [1] | |||
Senior Notes due 2021 | Senior Notes | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from unsecured financings | 500,000 | 500,000 | |||
Interest rate | 5.13% | [1] | |||
Senior Notes Due 2022 [Member] | Senior Notes | |||||
Outstanding amounts of secured and unsecured term debt financings | |||||
Borrowings from unsecured financings | $500,000 | $0 | |||
Interest rate | 5.50% | [1] | |||
London Interbank Offered Rate (LIBOR) [Member] | Securitization No. 2 | Secured Debt | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 75.00% | ||||
[1] | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2, three of our Bank Financings, and our Revolving Credit Facility. All other financings have a fixed rate. |
Secured_and_Unsecured_Debt_Fin3
Secured and Unsecured Debt Financings (Details 1) (USD $) | 3 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jan. 26, 2015 | |
Debt Instrument [Line Items] | |||||
Repayments of Long-term Debt | $253,681 | $287,778 | |||
Term debt financings assumed in asset acquisitions | 0 | 39,061 | |||
Borrowings from unsecured financings | 2,700,000 | 2,400,000 | |||
Secured Debt | Securitization No. 2 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 0.49% | [1] | |||
Secured Debt | Securitization No. 2 | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 75.00% | ||||
Notes Payable, Other Payables | ECA Term Financings {Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 3.57% | ||||
Notes Payable, Other Payables | Bank Financings | |||||
Debt Instrument [Line Items] | |||||
Debt, Weighted Average Interest Rate | 3.44% | ||||
Debt Instrument, Minimum Net Worth Covenant Required | 500,000 | ||||
Senior Notes | Senior Notes Due 2020 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 7.63% | [1] | |||
Borrowings from unsecured financings | 300,000 | 300,000 | |||
Senior Notes | Senior Notes due 2021 | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.13% | [1] | |||
Borrowings from unsecured financings | 500,000 | 500,000 | |||
Senior Notes | Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.50% | [1] | |||
Borrowings from unsecured financings | 500,000 | 0 | |||
Line of Credit | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Borrowings from unsecured financings | 0 | 200,000 | |||
Line of Credit | 2013 Revolving Credit Facility | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | 450,000 | 600,000 | |||
Senior Notes Due 2022 [Member] | Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 5.50% | ||||
Borrowings from unsecured financings | 500,000 | ||||
Debt Instrument, Redemption, Period One [Member] | Senior Notes Due 2022 [Member] | Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 5000.00% | ||||
Debt Instrument, Redemption Price, Percentage | 105.50% | ||||
Debt Instrument, Redemption, Period Two [Member] | Senior Notes Due 2022 [Member] | Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage | 101.00% | ||||
Maximum [Member] | Debt Instrument, Redemption, Period One [Member] | Senior Notes Due 2022 [Member] | Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||
Maximum [Member] | Debt Instrument, Redemption, Period Two [Member] | Senior Notes Due 2022 [Member] | Senior Notes Due 2022 [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | ||||
HSH Nordbank Ag [Member] | Secured Debt | Securitization No. 2 | |||||
Debt Instrument [Line Items] | |||||
Available Liquidity | $65,000 | $65,000 | |||
Unused Fee | 0.50% | ||||
[1] | Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2, three of our Bank Financings, and our Revolving Credit Facility. 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. 18, 2015 | Oct. 31, 2014 | Jul. 28, 2014 | 5-May-14 | Feb. 21, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Dividends [Abstract] | |||||||
Common Stock, Dividends, Per Share, Declared | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.22 | $0.20 |
Aggregate Dividend Amount | $17,860 | $17,817 | $16,201 | $16,202 | $16,201 |
Earnings_Per_Share_Details
Earnings Per Share (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Weighted-average shares: | ||
Common shares outstanding | 80,564,440 | 80,387,371 |
Restricted common shares | 515,477 | 500,524 |
Total Weighted Average Shares | 81,079,917 | 80,887,895 |
Percentage of weighted-average shares: | ||
Common shares outstanding | 99.36% | 99.38% |
Restricted common shares | 0.64% | 0.62% |
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, 2015 | Mar. 31, 2014 | ||
Earnings Per Share [Abstract] | ||||
Participating Securities, Distributed and Undistributed Earnings of Net Income, Percent | 0.64% | 0.62% | ||
Earnings per share – Basic: | ||||
Net income | $43,269 | $5,777 | ||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | 275 | [1] | 36 | [1] |
Earnings available to common shareholders – Basic | 42,994 | 5,741 | ||
Weighted-average common shares outstanding – Basic | 80,564,440 | 80,387,371 | ||
Earnings per common share – Basic | $0.53 | $0.07 | ||
Earnings per share – Diluted: | ||||
Net income | 43,269 | 5,777 | ||
Participating Securities, Distributed and Undistributed Earnings (Loss), Diluted | 275 | [1] | 36 | [1] |
Earnings available to common shareholders – Diluted | $42,994 | $5,741 | ||
Weighted-average common shares outstanding – Basic | 80,564,440 | 80,387,371 | ||
Effect of dilutive shares(b) | 0 | [2] | 0 | [2] |
Weighted-average common shares outstanding – Diluted | 80,564,440 | 80,387,371 | ||
Earnings per common share – Diluted | $0.53 | $0.07 | ||
[1] | For the three months ended March 31, 2014 and 2015, distributed and undistributed earnings to restricted shares is 0.62% and 0.64% 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, 2014 and 2015, we had no dilutive shares. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Sources of income from continuing operations before income taxes | ||
U.S. operations | $380 | $765 |
Non-U.S. operations | 46,311 | 5,445 |
Income from continuing operations before income taxes | $46,691 | $6,210 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Analysis of effective income tax rate for continuing operations | ||
Notional U.S. federal income tax expense (benefit) at the statutory rate | $16,342 | $2,173 |
U.S. state and local income tax, net | 42 | 79 |
Non-deductible expenses in the U.S. | 170 | 299 |
Other | -8 | -15 |
Income tax provision | 4,863 | 883 |
Singapore | Foreign Tax Authority | ||
Analysis of effective income tax rate for continuing operations | ||
Non-U.S. operations: | -1,356 | -1,195 |
Other Foreign Country | Foreign Tax Authority | ||
Analysis of effective income tax rate for continuing operations | ||
Non-U.S. operations: | -678 | -598 |
Ireland | Foreign Tax Authority | ||
Analysis of effective income tax rate for continuing operations | ||
Non-U.S. operations: | -1,122 | -3,289 |
Bermuda | Foreign Tax Authority | ||
Analysis of effective income tax rate for continuing operations | ||
Non-U.S. operations: | ($8,527) | $3,429 |
Income_Taxes_Income_Taxes_Text
Income Taxes Income Taxes (Textual) (Details) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Effective Income Tax Rate, Continuing Operations | 10.40% | 14.20% |
Interest_Net_Details
Interest, Net (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Interest Income (Expense), Net [Abstract] | ||
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities | $50,235 | $51,685 |
Hedge ineffectiveness losses | 0 | 53 |
Cash flow hedges reclassified into earnings | 8,233 | 9,327 |
Amortization of deferred financing costs | 3,699 | 3,420 |
Interest Expense | 62,167 | 64,485 |
Less interest income | -36 | -222 |
Interest, net | $62,131 | $64,263 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | Mar. 31, 2015 | Apr. 30, 2015 |
In Thousands, unless otherwise specified | Aircraft | Aircraft |
Types of Commercial Aircraft [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | 11 | |
Unrecorded Unconditional Purchase Obligation | $321,925 | |
Subsequent Event | ||
Types of Commercial Aircraft [Line Items] | ||
Number of aircraft purchased and committed to purchase year to date | 25 | |
Aggregate purchase price of purchased aircraft and aircraft commitments year to date | $769,225 |
Other_Assets_Details
Other Assets (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Principal components of other assets | ||
Deferred debt issuance costs, net of amortization of $53,094 and $56,329, respectively | $57,595 | $51,867 |
Deferred federal income tax asset | 490 | 567 |
Lease incentives and lease premiums, net of amortization of $26,477 and $30,664, respectively | 77,173 | 75,587 |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 5,180 | 7,455 |
Other assets | 34,420 | 21,841 |
Total other assets | 174,858 | 157,317 |
Amortization of deferred debt issuance costs | 56,329 | 53,094 |
Amortization of lease incentives and lease premiums | $30,664 | $26,477 |
Accounts_Payable_Accrued_Expen2
Accounts Payable, Accrued Expenses and Other Liabilities (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $30,708 | $40,765 |
Deferred federal income tax liability | 39,370 | 37,340 |
Accrued interest payable | 54,348 | 27,795 |
Lease discounts, net of amortization of $9,247 and $11,704 respectively | 29,628 | 32,084 |
Derivative Liability | 3,121 | 2,879 |
Total accounts payable, accrued expenses and other liabilities | 157,175 | 140,863 |
Deferred Revenue, Leases, Accumulated Amortization | $11,704 | $9,247 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Derivative Liability | $3,121 | $2,879 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Beginning balance | -38,460 | |||||
Net current period other comprehensive income | 8,105 | 9,697 | ||||
Ending balance | -30,355 | |||||
Tax Expense from Amount Recognized in Other Comprehensive Income Related to Derivatives | -3 | 804 | 825 | 389 | ||
Interest Expense | 62,167 | 64,485 | ||||
Terminated Interest Rate Contract [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Interest Rate, Designated Derivatives, Deferred Gain or Loss Expected to be Amortized In Next Twelve Months | 19,749 | |||||
Interest Rate Contract | ||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 2,632 | |||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges Amortization [Member] | Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Interest Expense | 8,233 | 9,327 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Contract | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | -1,078 | -2,380 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 9,183 | 12,077 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Beginning balance | -38,460 | -75,905 | -75,905 | |||
Net current period other comprehensive income | 8,105 | [1] | 9,697 | |||
Ending balance | -30,355 | -66,208 | ||||
Tax Expense from Amount Recognized in Other Comprehensive Income Related to Derivatives | -14 | 736 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 9,183 | 12,077 | ||||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges, Net Settlements | Interest Rate Contract | Reclassification out of Accumulated Other Comprehensive Income | ||||||
Accumulated Other Comprehensive Income [Roll Forward] | ||||||
Tax Expense from Amount Reclassified from Accumulated Other Comprehensive Income into Income | 11 | 68 | ||||
Interest Expense | 950 | 2,750 | ||||
Term Financing No.1 -- terminated 2012 [Member] | Terminated Interest Rate Contract [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Interest Rate, Designated Derivatives, Deferred Gain or Loss Expected to be Amortized In Next Twelve Months | 2,441 | |||||
Securitization Number One [Member] | Terminated Interest Rate Contract [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Interest Rate, Designated Derivatives, Deferred Gain or Loss Expected to be Amortized In Next Twelve Months | 10,787 | |||||
ECA Term Financings {Member] | Terminated Interest Rate Contract [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Interest Rate, Designated Derivatives, Deferred Gain or Loss Expected to be Amortized In Next Twelve Months | 5,282 | |||||
Other Financings [Member] | Terminated Interest Rate Contract [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Interest Rate, Designated Derivatives, Deferred Gain or Loss Expected to be Amortized In Next Twelve Months | $1,239 | |||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |