Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Aircastle LTD | |
Entity Central Index Key | 1,362,988 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 81,187,495 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 149,041 | $ 169,656 |
Accounts receivable | 3,046 | 3,334 |
Restricted cash and cash equivalents | 84,258 | 98,884 |
Restricted liquidity facility collateral | 65,000 | 65,000 |
Flight equipment held for lease, net of accumulated depreciation of $1,403,443 and $1,294,063, respectively | 5,885,807 | 5,579,718 |
Net investment in finance leases | 120,882 | 106,651 |
Unconsolidated equity method investment | 49,131 | 46,453 |
Other assets | 131,231 | 105,450 |
Total assets | 6,488,396 | 6,175,146 |
LIABILITIES | ||
Borrowings from secured financings, net of debt issuance costs | 1,277,361 | 1,373,131 |
Borrowings from unsecured financings, net of debt issuance costs | 2,717,859 | 2,371,456 |
Accounts payable, accrued expenses and other liabilities | 154,209 | 140,863 |
Lease rentals received in advance | 60,447 | 53,216 |
Liquidity facility | 65,000 | 65,000 |
Security deposits | 114,594 | 117,689 |
Maintenance payments | 338,515 | 333,456 |
Total liabilities | $ 4,727,985 | $ 4,454,811 |
Commitments and Contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Common shares, $.01 par value, 250,000,000 shares authorized, 81,181,495 shares issued and outstanding at September 30, 2015; and 80,983,249 shares issued and outstanding at December 31, 2014 | $ 812 | $ 810 |
Additional paid-in capital | 1,567,692 | 1,565,180 |
Retained earnings | 210,310 | 192,805 |
Accumulated other comprehensive loss | (18,403) | (38,460) |
Total shareholders’ equity | 1,760,411 | 1,720,335 |
Total liabilities and shareholders’ equity | $ 6,488,396 | $ 6,175,146 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accumulated depreciation on flight equipment held for lease | $ 1,403,443 | $ 1,294,063 |
Borrowings from secured financings | $ 1,277,361 | $ 1,373,131 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 250,000,000 | 250,000,000 |
Common shares, shares issued | 81,181,495 | 80,983,249 |
Common shares, shares outstanding | 81,181,495 | 80,983,249 |
Preference shares, par value | $ 0.01 | $ 0.01 |
Preference shares, shares authorized | 50,000,000 | 50,000,000 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Lease rental revenue | $ 188,038 | $ 178,886 | $ 550,023 | $ 536,452 |
Finance lease revenue | 1,868 | 1,463 | 5,352 | 9,347 |
Amortization of lease premiums, discounts and lease incentives | (2,113) | (1,075) | (10,288) | (7,252) |
Maintenance revenue | 15,726 | (4,189) | 55,148 | 35,035 |
Total lease revenue | 203,519 | 175,085 | 600,235 | 573,582 |
Other revenue | 8,555 | 2,511 | 10,700 | 6,763 |
Total revenues | 212,074 | 177,596 | 610,935 | 580,345 |
Operating expenses: | ||||
Depreciation | 85,324 | 75,519 | 237,538 | 225,230 |
Interest, net | 60,381 | 56,794 | 184,063 | 181,551 |
Selling, general and administrative (including non-cash share based payment expense of $1,424 and $949 for the three months ended and $3,981 and $3,167 for the nine months ended September 30, 2015 and 2014, respectively) | 14,032 | 13,817 | 42,663 | 41,818 |
Impairment of Aircraft | 78,403 | 20,436 | 102,358 | 67,005 |
Maintenance and other costs | 2,520 | 713 | 9,126 | 5,222 |
Total expenses | 240,660 | 167,279 | 575,748 | 520,826 |
Other income (expense): | ||||
Gain on sale of flight equipment | 15,679 | 11,390 | 43,034 | 13,384 |
Gains (Losses) on Extinguishment of Debt | 0 | 0 | 0 | (36,570) |
Other | 70 | 1 | 341 | 758 |
Total other income (expense) | 15,749 | 11,391 | 43,375 | (22,428) |
Income (loss) from continuing operations before income taxes | (12,837) | 21,708 | 78,562 | 37,091 |
Income tax provision | 2,709 | 3,484 | 12,037 | 10,925 |
Earnings of unconsolidated equity method investment, net of tax | 1,557 | 927 | 4,563 | 1,898 |
Net income (loss) | $ (13,989) | $ 19,151 | $ 71,088 | $ 28,064 |
Earnings (loss) per common share — Basic: | ||||
Net income (loss) per share (in dollars per share) | $ (0.17) | $ 0.24 | $ 0.88 | $ 0.35 |
Earnings (loss) per common share — Diluted: | ||||
Net income (loss) per share | (0.17) | 0.24 | 0.88 | 0.35 |
Dividends declared per share | $ 0.22 | $ 0.20 | $ 0.66 | $ 0.60 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Maintenance Revenue | $ 15,726 | $ (4,189) | $ 55,148 | $ 35,035 |
Non-cash share based payment expense | $ 1,424 | $ 949 | $ 3,981 | $ 3,167 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (13,989) | $ 19,151 | $ 71,088 | $ 28,064 |
Other comprehensive income, net of tax: | ||||
Net change in fair value of derivatives, net of tax expense of $3 and $21 for the three months ended and tax expense of $26 and $825 for the nine months ended September 30, 2015 and 2014, respectively | 272 | 1,643 | 708 | 2,025 |
Net derivative loss reclassified into earnings | 5,006 | 8,549 | 19,349 | 26,730 |
Other comprehensive income | 5,278 | 10,192 | 20,057 | 28,755 |
Total comprehensive income (loss) | $ (8,711) | $ 29,343 | $ 91,145 | $ 56,819 |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net of tax expense | $ 3 | $ 21 | $ 26 | $ 825 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Cash Flows [Abstract] | ||
Net income (loss) | $ 71,088 | $ 28,064 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 237,538 | 225,230 |
Amortization of deferred financing costs | 11,211 | 10,493 |
Amortization of net lease discounts and lease incentives | 10,288 | 7,252 |
Deferred income taxes | (1,455) | (2,623) |
Non-cash share based payment expense | 3,981 | 3,167 |
Cash flow hedges reclassified into earnings | 19,349 | 26,730 |
Security deposits and maintenance payments included in earnings | (20,645) | (38,257) |
Gain on sale of flight equipment | (43,034) | (13,384) |
Gains (Losses) on Extinguishment of Debt | 0 | 36,570 |
Impairment of Aircraft | 102,358 | 67,005 |
Other | 269 | (2,278) |
Changes in certain assets and liabilities: | ||
Accounts receivable | 253 | (1,603) |
Other assets | (4,382) | (1,691) |
Accounts payable, accrued expenses and other liabilities | 14,085 | 17,138 |
Lease rentals received in advance | 7,566 | 4,162 |
Net cash provided by operating activities | 408,470 | 365,975 |
Cash flows from investing activities: | ||
Acquisition and improvement of flight equipment and lease incentives | (1,034,578) | (939,651) |
Proceeds from sale of flight equipment | 343,020 | 563,882 |
Increase (Decrease) in Restricted Cash | 0 | (24,606) |
Payments for (Proceeds from) Other Deposits | 4,421 | (1,315) |
Payments to Acquire Finance Receivables | (24,000) | (14,258) |
Collections on finance leases | 6,768 | 8,096 |
Payments to Acquire Interest in Subsidiaries and Affiliates | 0 | (8,592) |
Proceeds from Equity Method Investment, Dividends or Distributions, Return of Capital | 0 | 997 |
Other | (260) | (466) |
Net cash used in investing activities | (713,471) | (413,283) |
Cash flows from financing activities: | ||
Issuance of shares net of repurchases | 1,960 | 2,092 |
Proceeds from secured and unsecured debt financings | 800,000 | 803,200 |
Repayments of secured and unsecured debt financings | (548,359) | (895,459) |
Payments of Debt Extinguishment Costs | 0 | (32,835) |
Deferred financing costs | (12,185) | (15,843) |
Restricted liquidity facility collateral | 0 | 42,000 |
Liquidity facility | 0 | (42,000) |
Restricted cash and cash equivalents related to financing activities | (14,626) | (32,987) |
Security deposits and maintenance payments received | 114,644 | 131,136 |
Security deposits and maintenance payments returned | 28,797 | 72,030 |
Payments for terminated cash flow hedges | 0 | (33,427) |
Dividends paid | (53,583) | (48,604) |
Net cash provided by (used in) financing activities | 284,386 | (132,967) |
Net increase (decrease) in cash and cash equivalents | (20,615) | (180,275) |
Cash and cash equivalents at beginning of period | 169,656 | 654,613 |
Cash and cash equivalents at end of period | 149,041 | 474,338 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 129,696 | 135,880 |
Cash paid for income taxes | 9,665 | 4,382 |
Supplemental disclosures of non-cash investing activities: | ||
Purchase deposits, advance lease rentals, security deposits and maintenance payments assumed in asset acquisitions | 8,461 | 20,837 |
Term debt financings assumed in asset acquisitions | 0 | 39,061 |
Advance lease rentals, security deposits, and maintenance payments settled in sale of flight equipment | $ 77,624 | $ 65,831 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 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 September 30, 2015 through the date on which the consolidated financial statements included in this Form 10-Q were issued. Effective July 1, 2015, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“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 is applied on a retrospective basis. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. 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 impact of the ASU on its consolidated financial statements and related disclosures. 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 do not believe the standard will have a material impact on our consolidated financial statements and related disclosures when adopted. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014 that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Measurements at September 30, 2015 Using Fair Value Hierarchy Fair Value as of September 30, 2015 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique Assets: Cash and cash equivalents $ 149,041 $ 149,041 $ — $ — Market Restricted cash and cash equivalents 84,258 84,258 — — Market Total $ 233,299 $ 233,299 $ — $ — Liabilities: Derivative liabilities $ 2,433 $ — $ 2,433 $ — Income Fair Value Measurements at December 31, 2014 Using Fair Value Hierarchy Fair Value as of December 31, 2014 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique 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 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 and nine months ended September 30, 2015 and 2014 , 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 Annual Fleet-Wide Review We perform our annual fleet-wide recoverability assessment during the third quarter of each year. This recoverability assessment is a comparison of the carrying value of each aircraft to its undiscounted expected future cash flows. We develop the assumptions used in the recoverability assessment, including those relating to current and future demand for each aircraft type, based on management's experience in the aircraft leasing industry, as well as information received from third party sources. Estimates of the undiscounted cash flows for each aircraft type are impacted by changes in contracted and future expected lease rates, residual values, expected scrap values, economic conditions and other factors. In our 2015 assessment, we reduced forecasted future cash flows for our six Boeing 747-400 converted freighter aircraft not subject to sales agreements, all of which are more than twenty years old. Our new forecast reflects the persisting glut of supply in the air cargo market resulting from weak growth in demand combined with the growth in capacity arising from new production air freighters and higher belly capacity in latest generation wide-body passenger aircraft. In addition to these market-wide impacts, our older freighters were affected specifically by the imposition of age limits in certain countries and by lower utilization levels. As a result, we determined that each of our older converted freighter aircraft was on its last lease, and we reduced our residual value assumptions for these aircraft and expect to scrap them following lease expiry. During the third quarter of 2015, we therefore impaired four of these aircraft, which had an aggregate net book value as of August 31, 2015 of $115,888 , writing down their book values by a total of $34,575 , with a fair value date of September 1, 2015. For one of these aircraft, we recorded maintenance revenue of $5,858 , as we no longer plan to reinvest these funds. In the 2014 assessment, we determined that the cash flows expected to be generated by two of our McDonnell Douglas MD-11 freighter aircraft did not support their carrying values. As a result, during the third quarter of 2014, we impaired these two aircraft, which had an aggregate net book value as of June 30, 2014 of $53,777 , writing down their book values by a total of $19,515 . We also shortened their expected lives from 25 to 21 years and reduced their residual values. Other Impairments In September 2015, Malaysian Airline System (“MAS”) informed us that it was effectively rejecting the lease on our Boeing 777-200ER aircraft as part of its restructuring. This aircraft, which was manufactured in 1998, is the only one of its type in our fleet and the only aircraft we had on lease to MAS. We repossessed it in October 2015. We reduced the carrying value of this aircraft to our best estimate of scrap value. While we haven’t made a decision to dispose of the aircraft, this write-down was driven by weak overall demand tor older widebody aircraft, an increase in the supply of competing aircraft and the difficulty of recovering high redeployment costs given the proliferation of aircraft age limits across the world. This write-down resulted in an impairment of $37,770 , partially offset by $1,200 of other revenue from a letter of credit we drew following the lease rejection. Also in September 2015, we modified the lease agreement with respect to one Airbus A321-200 aircraft. We elected not to reinvest in certain major maintenance events during the lease term, and the lessee agreed to release its rights to certain maintenance payments. As a result, we recorded an impairment of $6,058 and maintenance revenue of $7,109 for this aircraft. In the second quarter of 2015, we impaired two McDonnell Douglas MD-11 freighter aircraft and one Boeing 737-800 aircraft and recorded impairment charges totaling $23,955 and maintenance revenue of $18,234 . During the nine months ended September 30, 2014 , we impaired three Boeing 747-400 converted freighter aircraft and one Boeing 737-400 aircraft and recorded impairment charges totaling $46,570 . For these aircraft, we recorded maintenance revenue of $24,262 and other revenue of $137 and reversed lease incentives of $3,626 . Other than the aircraft discussed above, management believes that the net book value of each of our aircraft is currently supported by the estimated future undiscounted cash flows expected to be generated by that aircraft, and accordingly, no other aircraft were impaired as a consequence of this recoverability assessment. However, if our estimates or assumptions change, we may revise our cash flow assumptions and record future impairment charges. While we believe that the estimates and related assumptions used in the recoverability assessment are appropriate, actual results could differ from those estimates. 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 No. 2, 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 September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 December 31, 2014 Carrying Amount of Asset (Liability) Fair Value of Asset (Liability) Carrying Amount of Asset (Liability) Fair Value of Asset (Liability) Securitization No. 2 $ (229,969 ) $ (226,385 ) $ (391,680 ) $ (376,752 ) Credit Facilities (50,000 ) (50,000 ) (200,000 ) (200,000 ) ECA term financings (415,988 ) (441,218 ) (449,886 ) (471,918 ) Bank financings (653,486 ) (674,706 ) (554,888 ) (560,285 ) Senior Notes (2,700,000 ) (2,820,988 ) (2,200,000 ) (2,300,615 ) 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 Fligh
Lease Rental Revenues and Flight Equipment Held for Lease | 9 Months Ended |
Sep. 30, 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 September 30, 2015 were as follows: Year Ending December 31, Amount Remainder of 2015 $ 182,038 2016 701,166 2017 614,693 2018 535,419 2019 469,377 Thereafter 1,531,375 Total $ 4,034,068 Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended September 30, Nine Months Ended September 30, Region 2015 2014 2015 2014 Asia and Pacific 43 % 39 % 42 % 40 % Europe 28 % 29 % 28 % 29 % South America 16 % 13 % 15 % 12 % Middle East and Africa 9 % 9 % 9 % 9 % North America 4 % 10 % 6 % 10 % Total 100 % 100 % 100 % 100 % The classification of regions in the tables above and in the table and discussion below is determined based on the principal location of the lessee of each aircraft. For the three months ended September 30, 2015 , our two largest customers each accounted for more than 5% of lease rental revenue for a combined 12% . No other customer accounted for more than 5% of lease rental revenue. For the three months ended September 30, 2014 , our four largest customers each accounted for more than 5% of lease rental revenue for a combined 24% . No other customer accounted for more than 5% of lease rental revenue. For the nine months ended September 30, 2015 , our three largest customers each accounted for more than 5% of lease rental revenue for a combined 17% . No other customer accounted for more than 5% of lease rental revenue. For the nine months ended September 30, 2014 , our three largest customers each accounted for more than 5% of lease rental revenue for a combined 17% . No other customer accounted for more than 5% of lease rental revenue. For the three and nine months ended September 30, 2015 and 2014 , respectively, no country represented at least 10% of total revenue based on each lessee’s principal place of business. 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: September 30, 2015 December 31, 2014 Region Number of Aircraft Net Book Value % Number of Aircraft Net Book Value % Asia and Pacific 54 42 % 46 40 % Europe 66 27 % 65 29 % South America 18 17 % 13 14 % Middle East and Africa 6 9 % 6 10 % North America 15 5 % 17 7 % Off-lease 1 (1) — % 1 (2) — % Total 160 100 % 148 100 % _______________ (1) Consists of one Boeing 777-200ER aircraft, which we are marketing for lease or sale. (2) Consisted of one Airbus A320-200 aircraft, which was subject to a commitment to lease and was delivered to our customer in February 2015. The following table sets forth net book value of flight equipment (includes net book value of flight equipment held for lease and net investment in finance leases) attributable to individual countries representing at least 10% of net book value of flight equipment based on each lessee’s principal place of business as of: September 30, 2015 December 31, 2014 Region Net Book Value Net Book Value % Number of Lessees Net Book Value Net Book Value % Number of Lessees Indonesia $ 637,810 11 % 3 $ — — % — At September 30, 2015 and December 31, 2014 , the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $27,500 and $22,833 , respectively. |
Net Investment in Finance Lease
Net Investment in Finance Leases | 9 Months Ended |
Sep. 30, 2015 | |
Leases [Abstract] | |
Net Investment in Finance Leases | Net Investment in Finance Leases At September 30, 2015 , our net investment in finance leases represents six aircraft leased to two customers in the United States, one aircraft leased to a customer in Canada, and one aircraft leased to a customer in Germany. The following table lists the components of our net investment in finance leases at September 30, 2015 : Amount Total lease payments to be received $ 93,976 Less: Unearned income (37,227 ) Estimated residual values of leased flight equipment (unguaranteed) 64,133 Net investment in finance leases $ 120,882 At September 30, 2015 , minimum future lease payments on finance leases are as follows: Year Ending December 31, Amount Remainder of 2015 $ 3,842 2016 15,365 2017 14,843 2018 9,715 2019 9,695 Thereafter 40,516 Total $ 93,976 |
Unconsolidated Equity Method In
Unconsolidated Equity Method Investment (Notes) | 9 Months Ended |
Sep. 30, 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 9.7% of our outstanding common shares. The Company recorded a $6,270 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 2,994 Earnings from joint venture, net of tax 4,563 Distributions (4,879 ) Investment in joint venture at September 30, 2015 $ 49,131 |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 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 12 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 September 30, 2015 , the assets of ACS Ireland 2 include four aircraft transferred into the VIE at historical cost basis in connection with Securitization No. 2. The assets of the ACS Ireland 2, net of intercompany receivables, as of September 30, 2015 are $88,771 . The liabilities of the ACS Ireland 2, net of $40,351 Class E-1 Securities held by the Company and intercompany payables, which are eliminated in consolidation, as of September 30, 2015 are $64,787 . 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. The related aircraft, with a net book value as of September 30, 2015 of $625,680 were included in our flight equipment held for lease. The consolidated debt outstanding, net of debt issuance costs, of the Air Knight VIEs as of September 30, 2015 is $401,339 . |
Secured and Unsecured Debt Fina
Secured and Unsecured Debt Financings | 9 Months Ended |
Sep. 30, 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 September 30, 2015 At December 31, 2014 Debt Obligation Outstanding Borrowings Number of Aircraft Interest Rate (1) Final Stated Maturity (2) Outstanding Secured Debt Financings: Securitization No. 2 $ 229,969 30 0.51% 06/14/37 $ 391,680 ECA Term Financings 415,988 8 3.02% to 3.96% 12/3/21 to 11/30/24 449,886 Bank Financings 653,486 13 1.21% to 5.09% 10/26/17 to 01/19/26 554,888 Less: Debt Issuance Costs (22,082 ) — (23,323 ) Total secured debt financings, net of debt issuance costs 1,277,361 51 1,373,131 Unsecured Debt Financings: Senior Notes due 2017 500,000 6.75% 04/15/17 500,000 Senior Notes due 2018 400,000 4.625% 12/05/18 400,000 Senior Notes due 2019 500,000 6.250% 12/01/19 500,000 Senior Notes due 2020 300,000 7.625% 04/15/20 300,000 Senior Notes due 2021 500,000 5.125% 03/15/21 500,000 Senior Notes due 2022 500,000 5.50% 02/15/22 — Revolving Credit Facility 50,000 2.44% 05/13/19 200,000 Less: Debt Issuance Costs (32,141 ) (28,544 ) Total unsecured debt financings, net of debt issuance costs 2,717,859 2,371,456 Total secured and unsecured debt financings, net of debt issuance costs $ 3,995,220 $ 3,744,587 (1) Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2, five 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 September 30, December 31, Unused Fee Interest Rate 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 has guaranteed the repayment of the ECA Term Financings. The borrowings under these financings at September 30, 2015 have a weighted average rate of interest of 3.57% . Bank Financings In May 2015, we entered into two floating rate loans with The Bank of Tokyo-Mitsubishi UFJ, Ltd. and Development Bank of Japan Inc. These loans, which total $150,000 , are secured by two A330-300 aircraft that we acquired in the fourth quarter of 2014. 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 has guaranteed the repayment of the Bank Financings. The borrowings under these financings at September 30, 2015 have a weighted average fixed rate of interest of 3.15% . Unsecured Debt Financings: Senior Notes due 2022 On January 15, 2015, Aircastle 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 . On May 13, 2015, we extended the maturity of our Revolving Credit Facility to May 13, 2019. At September 30, 2015 , we had $ 50,000 drawn on the facility. As of September 30, 2015 , we are in compliance with all applicable covenants in all of our financings. |
Dividends
Dividends | 9 Months Ended |
Sep. 30, 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 per Common Share Aggregate Dividend Amount Record Date Payment Date August 4, 2015 $ 0.220 $ 17,860 August 31, 2015 September 15, 2015 May 4, 2015 $ 0.220 $ 17,863 May 29, 2015 June 15, 2015 February 17, 2015 $ 0.220 $ 17,860 March 6, 2015 March 13, 2015 October 31, 2014 $ 0.220 $ 17,817 November 28, 2014 December 15, 2014 July 28, 2014 $ 0.200 $ 16,201 August 29, 2014 September 12, 2014 May 5, 2014 $ 0.200 $ 16,202 May 30, 2014 June 13, 2014 February 21, 2014 $ 0.200 $ 16,201 March 7, 2014 March 14, 2014 The following table sets forth the quarterly dividends declared by our board of directors for the periods covered in this report: Declaration Date Dividend per Common Share Aggregate Dividend Amount Record Date Payment Date August 4, 2015 $ 0.220 $ 17,860 August 31, 2015 September 15, 2015 May 4, 2015 $ 0.220 $ 17,863 May 29, 2015 June 15, 2015 February 17, 2015 $ 0.220 $ 17,860 March 6, 2015 March 13, 2015 October 31, 2014 $ 0.220 $ 17,817 November 28, 2014 December 15, 2014 July 28, 2014 $ 0.200 $ 16,201 August 29, 2014 September 12, 2014 May 5, 2014 $ 0.200 $ 16,202 May 30, 2014 June 13, 2014 February 21, 2014 $ 0.200 $ 16,201 March 7, 2014 March 14, 2014 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic earnings per share calculations using the two-class method. All of our restricted common shares are currently participating securities. Under the two-class method, earnings per common share is computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted average shares outstanding during the period. Because the holders of the participating restricted common shares were not contractually required to share in the Company’s losses, in applying the two-class method to compute the basic and diluted net loss per common share, no allocation to restricted common shares was made for the three months ended September 30, 2015. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted average shares: Common shares outstanding 80,566,400 80,389,996 80,565,754 80,389,131 Restricted common shares 645,427 600,581 604,179 581,932 Total weighted average shares 81,211,827 80,990,577 81,169,933 80,971,063 Percentage of weighted average shares: Common shares outstanding 99.21 % 99.26 % 99.26 % 99.28 % Restricted common shares 0.79 % 0.74 % 0.74 % 0.72 % Total 100.00 % 100.00 % 100.00 % 100.00 % The calculations of both basic and diluted earnings per share are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Earnings (loss) per share – Basic: Net income (loss) $ (13,989 ) $ 19,151 $ 71,088 $ 28,064 Less: Distributed and undistributed earnings allocated to restricted common shares (a) — (142 ) (529 ) (202 ) Earnings (loss) available to common shareholders – Basic $ (13,989 ) $ 19,009 $ 70,559 $ 27,862 Weighted average common shares outstanding – Basic 80,566,400 80,389,996 80,565,754 80,389,131 Earnings (loss) per common share – Basic $ (0.17 ) $ 0.24 $ 0.88 $ 0.35 Earnings (loss) per share – Diluted: Net income (loss) $ (13,989 ) $ 19,151 $ 71,088 $ 28,064 Less: Distributed and undistributed earnings allocated to restricted common shares (a) — (142 ) (529 ) (202 ) Earnings (loss) available to common shareholders – Diluted $ (13,989 ) $ 19,009 $ 70,559 $ 27,862 Weighted average common shares outstanding – Basic 80,566,400 80,389,996 80,565,754 80,389,131 Effect of dilutive shares (b) — — — — Weighted average common shares outstanding – Diluted 80,566,400 80,389,996 80,565,754 80,389,131 Earnings (loss) per common share – Diluted $ (0.17 ) $ 0.24 $ 0.88 $ 0.35 (a) For the three months ended September 30, 2014 , distributed and undistributed earnings to restricted shares is 0.74% of net income. For the nine months ended September 30, 2015 and 2014 , distributed and undistributed earnings to restricted shares is 0.74% and 0.72% of net income, respectively. The amount of restricted share forfeitures for all periods present is immaterial to the allocation of distributed and undistributed earnings. (b) For the three and nine months ended September 30, 2015 and 2014 , we had no dilutive shares. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 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 Ireland, Singapore and the United States. The sources of income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 U.S. operations $ 597 $ 772 $ 1,817 $ 2,293 Non-U.S. operations (13,434 ) 20,936 76,745 34,798 Total $ (12,837 ) $ 21,708 $ 78,562 $ 37,091 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 and nine months ended September 30, 2015 and 2014 was determined based upon estimates of the Company’s consolidated effective income tax rates for the years ending December 31, 2015 and 2014, respectively. The Company’s effective tax rate for the three and nine months ended September 30, 2015 was 21.1% and 15.3% respectively, compared to 16.0% and 29.5% for the three and nine months ended September 30, 2014 , respectively. Movements in the effective tax rates are generally caused by changes in the proportion of the Company’s pre-tax earnings in taxable and non-tax jurisdictions. For the three and nine months ended September 30, 2015 , the interim period effective tax rate reflects impairments of $78,403 and $102,358 , respectively, which resulted in a higher effective tax rate. For the nine months ended September 30, 2014 , the interim period effective tax rate reflects the loss on extinguishment of debt in the amount of $36,570 related to Bermuda operations, which was treated as a discrete item with no tax benefit. Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Notional U.S. federal income tax expense (benefit) at the statutory rate $ (4,493 ) $ 7,598 $ 27,497 $ 12,982 U.S. state and local income tax, net 57 57 167 176 Non-U.S. operations: Bermuda 6,696 215 (9,199 ) 6,455 Ireland 2,500 (2,411 ) (407 ) (3,163 ) Singapore (1,385 ) (1,418 ) (4,116 ) (3,895 ) Other (860 ) (692 ) (2,439 ) (2,061 ) Non-deductible expenses in the U.S. 205 146 566 464 Other (11 ) (11 ) (32 ) (33 ) Income tax provision $ 2,709 $ 3,484 $ 12,037 $ 10,925 |
Interest, Net
Interest, Net | 9 Months Ended |
Sep. 30, 2015 | |
Interest Income (Expense), Net [Abstract] | |
Interest Net | Interest, Net The following table shows the components of interest, net: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest on borrowings, net settlements on interest rate derivatives, and other liabilities $ 51,428 $ 44,820 $ 153,076 $ 144,677 Hedge ineffectiveness losses 215 (4 ) 509 55 Amortization of interest rate derivatives related to deferred losses 5,006 8,549 19,349 26,730 Amortization of deferred financing fees and debt discount 3,746 3,506 11,211 10,493 Interest Expense 60,395 56,871 184,145 181,955 Less interest income (14 ) (77 ) (82 ) (404 ) Interest, net $ 60,381 $ 56,794 $ 184,063 $ 181,551 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies On June 12, 2015, Aircastle entered into a purchase agreement with Embraer S.A. (“Embraer”) under which we agreed to acquire 25 new E-Jet E2 aircraft with purchase rights for an additional 25 E-Jet E2 aircraft. Deliveries of the 25 aircraft are scheduled to begin in 2018 for the E190-E2 aircraft and 2019 for the E195-E2 aircraft with the last delivery scheduled in March 2021. At September 30, 2015 , the table below includes $142,170 of progress payments, which begin in May 2016. At September 30, 2015 , we had commitments to acquire 34 aircraft, including the above referenced 25 Embraer E-2 aircraft, for $1,336,950 . Commitments, including contractual price escalations and other adjustments, for these aircraft at September 30, 2015 , net of amounts already paid, are as follows: Year Ending December 31, Amount Remainder of 2015 $ 130,500 2016 132,122 2017 170,252 2018 258,130 2019 293,267 Thereafter 352,679 Total $ 1,336,950 |
Other Assets
Other Assets | 9 Months Ended |
Sep. 30, 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: September 30, December 31, Deferred federal income tax asset $ 1,072 $ 567 Lease incentives and lease premiums, net of amortization of $29,813 and $26,477, respectively 96,214 75,587 Flight equipment held for sale 5,212 7,455 Other assets 28,733 21,841 Total other assets $ 131,231 $ 105,450 |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 9 Months Ended |
Sep. 30, 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: September 30, December 31, Accounts payable and accrued expenses $ 38,561 $ 40,765 Deferred federal income tax liability 36,416 37,340 Accrued interest payable 51,728 27,795 Lease discounts, net of amortization of $16,775 and $9,247, respectively 25,071 32,084 Fair value of derivative liabilities 2,433 2,879 Total accounts payable, accrued expenses and other liabilities $ 154,209 $ 140,863 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Notes) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Beginning balance $ (23,681 ) $ (57,342 ) $ (38,460 ) $ (75,905 ) Amount recognized in other comprehensive loss on derivatives, net of tax expense of $10 and $7 for the three months and tax expense of $10 and $728 for the nine months ended September 30, 2015 and 2014, respectively (545 ) 509 (1,940 ) (3,068 ) Amounts reclassified from accumulated other comprehensive loss into income, net of tax benefit of $7 and expense of $14 for the three months and tax expense of $16 and $97 for the nine months ended September 30, 2015 and 2014, respectively 5,823 9,683 21,997 31,823 Net current period other comprehensive income 5,278 10,192 20,057 28,755 Ending balance $ (18,403 ) $ (47,150 ) $ (18,403 ) $ (47,150 ) (a) All amounts are net of tax. Amounts in parentheses indicate debits. Reclassifications from accumulated other comprehensive loss (a) Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Amount of effective amortization of net deferred interest rate derivative losses (b) $ 5,006 $ 8,549 $ 19,349 $ 26,730 Effective amount of net settlements of interest rate derivatives, net of tax benefit of $7 and expense of $14 for the three months and tax expense of $16 and $97 for the nine months ended September 30, 2015 and 2014, respectively (b) 817 1,134 2,648 5,093 Amount of loss reclassified from accumulated other comprehensive loss into income (c) $ 5,823 $ 9,683 $ 21,997 $ 31,823 (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. At September 30, 2015 , the amount of deferred net loss expected to be reclassified from OCI into interest expense over the next twelve months related to our terminated interest rate derivatives is $12,883 , of which $1,154 relates to Senior Notes due 2017 and 2020 interest rate derivatives, $7,547 relates to Senior Notes due 2018 interest rate derivatives, $2,865 relates to ECA Term Financings for New A330 Aircraft, and $1,317 relates to other financings. At September 30, 2015 , the amount of loss expected to be reclassified from OCI into interest expense over the next twelve months related to net interest settlements on active interest rate derivatives was $1,987 . |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 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 impact of the ASU on its consolidated financial statements and related disclosures. 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 do not believe the standard will have a material impact on our consolidated financial statements and related disclosures when adopted. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 and December 31, 2014 that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets and liabilities measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Measurements at September 30, 2015 Using Fair Value Hierarchy Fair Value as of September 30, 2015 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique Assets: Cash and cash equivalents $ 149,041 $ 149,041 $ — $ — Market Restricted cash and cash equivalents 84,258 84,258 — — Market Total $ 233,299 $ 233,299 $ — $ — Liabilities: Derivative liabilities $ 2,433 $ — $ 2,433 $ — Income Fair Value Measurements at December 31, 2014 Using Fair Value Hierarchy Fair Value as of December 31, 2014 Quoted Prices In Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique 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 |
Carrying amounts and fair values of financial instruments | The carrying amounts and fair values of our financial instruments at September 30, 2015 and December 31, 2014 are as follows: September 30, 2015 December 31, 2014 Carrying Amount of Asset (Liability) Fair Value of Asset (Liability) Carrying Amount of Asset (Liability) Fair Value of Asset (Liability) Securitization No. 2 $ (229,969 ) $ (226,385 ) $ (391,680 ) $ (376,752 ) Credit Facilities (50,000 ) (50,000 ) (200,000 ) (200,000 ) ECA term financings (415,988 ) (441,218 ) (449,886 ) (471,918 ) Bank financings (653,486 ) (674,706 ) (554,888 ) (560,285 ) Senior Notes (2,700,000 ) (2,820,988 ) (2,200,000 ) (2,300,615 ) |
Lease Rental Revenues and Fli26
Lease Rental Revenues and Flight Equipment Held for Lease (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 were as follows: Year Ending December 31, Amount Remainder of 2015 $ 182,038 2016 701,166 2017 614,693 2018 535,419 2019 469,377 Thereafter 1,531,375 Total $ 4,034,068 |
Geographic concentration of lease rental revenue earnings | Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended September 30, Nine Months Ended September 30, Region 2015 2014 2015 2014 Asia and Pacific 43 % 39 % 42 % 40 % Europe 28 % 29 % 28 % 29 % South America 16 % 13 % 15 % 12 % Middle East and Africa 9 % 9 % 9 % 9 % North America 4 % 10 % 6 % 10 % Total 100 % 100 % 100 % 100 % |
Revenue attributable to individual countries | |
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: September 30, 2015 December 31, 2014 Region Number of Aircraft Net Book Value % Number of Aircraft Net Book Value % Asia and Pacific 54 42 % 46 40 % Europe 66 27 % 65 29 % South America 18 17 % 13 14 % Middle East and Africa 6 9 % 6 10 % North America 15 5 % 17 7 % Off-lease 1 (1) — % 1 (2) — % Total 160 100 % 148 100 % _______________ (1) Consists of one Boeing 777-200ER aircraft, which we are marketing for lease or sale. (2) Consisted of one Airbus A320-200 aircraft, which was subject to a commitment to lease and was delivered to our customer in February 2015. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | The following table sets forth net book value of flight equipment (includes net book value of flight equipment held for lease and net investment in finance leases) attributable to individual countries representing at least 10% of net book value of flight equipment based on each lessee’s principal place of business as of: September 30, 2015 December 31, 2014 Region Net Book Value Net Book Value % Number of Lessees Net Book Value Net Book Value % Number of Lessees Indonesia $ 637,810 11 % 3 $ — — % — |
Net Investment in Finance Lea27
Net Investment in Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, 2015 : Amount Total lease payments to be received $ 93,976 Less: Unearned income (37,227 ) Estimated residual values of leased flight equipment (unguaranteed) 64,133 Net investment in finance leases $ 120,882 |
Schedule of Future Minimum Lease Payments for Capital Leases | At September 30, 2015 , minimum future lease payments on finance leases are as follows: Year Ending December 31, Amount Remainder of 2015 $ 3,842 2016 15,365 2017 14,843 2018 9,715 2019 9,695 Thereafter 40,516 Total $ 93,976 |
Unconsolidated Equity Method 28
Unconsolidated Equity Method Investment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | The Company recorded a $6,270 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 2,994 Earnings from joint venture, net of tax 4,563 Distributions (4,879 ) Investment in joint venture at September 30, 2015 $ 49,131 |
Secured and Unsecured Debt Fi29
Secured and Unsecured Debt Financings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Outstanding amounts of secured and unsecured term debt financings | The outstanding amounts of our secured and unsecured term debt financings are as follows: At September 30, 2015 At December 31, 2014 Debt Obligation Outstanding Borrowings Number of Aircraft Interest Rate (1) Final Stated Maturity (2) Outstanding Secured Debt Financings: Securitization No. 2 $ 229,969 30 0.51% 06/14/37 $ 391,680 ECA Term Financings 415,988 8 3.02% to 3.96% 12/3/21 to 11/30/24 449,886 Bank Financings 653,486 13 1.21% to 5.09% 10/26/17 to 01/19/26 554,888 Less: Debt Issuance Costs (22,082 ) — (23,323 ) Total secured debt financings, net of debt issuance costs 1,277,361 51 1,373,131 Unsecured Debt Financings: Senior Notes due 2017 500,000 6.75% 04/15/17 500,000 Senior Notes due 2018 400,000 4.625% 12/05/18 400,000 Senior Notes due 2019 500,000 6.250% 12/01/19 500,000 Senior Notes due 2020 300,000 7.625% 04/15/20 300,000 Senior Notes due 2021 500,000 5.125% 03/15/21 500,000 Senior Notes due 2022 500,000 5.50% 02/15/22 — Revolving Credit Facility 50,000 2.44% 05/13/19 200,000 Less: Debt Issuance Costs (32,141 ) (28,544 ) Total unsecured debt financings, net of debt issuance costs 2,717,859 2,371,456 Total secured and unsecured debt financings, net of debt issuance costs $ 3,995,220 $ 3,744,587 (1) Reflects the floating rate in effect at the applicable reset date plus the margin for Securitization No. 2, five 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 September 30, December 31, Unused Fee Interest Rate on any Advances Securitization No. 2 HSH Nordbank AG $ 65,000 $ 65,000 0.50% 1M Libor + 0.75 |
Dividends (Tables)
Dividends (Tables) | 9 Months Ended |
Sep. 30, 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 per Common Share Aggregate Dividend Amount Record Date Payment Date August 4, 2015 $ 0.220 $ 17,860 August 31, 2015 September 15, 2015 May 4, 2015 $ 0.220 $ 17,863 May 29, 2015 June 15, 2015 February 17, 2015 $ 0.220 $ 17,860 March 6, 2015 March 13, 2015 October 31, 2014 $ 0.220 $ 17,817 November 28, 2014 December 15, 2014 July 28, 2014 $ 0.200 $ 16,201 August 29, 2014 September 12, 2014 May 5, 2014 $ 0.200 $ 16,202 May 30, 2014 June 13, 2014 February 21, 2014 $ 0.200 $ 16,201 March 7, 2014 March 14, 2014 The following table sets forth the quarterly dividends declared by our board of directors for the periods covered in this report: Declaration Date Dividend per Common Share Aggregate Dividend Amount Record Date Payment Date August 4, 2015 $ 0.220 $ 17,860 August 31, 2015 September 15, 2015 May 4, 2015 $ 0.220 $ 17,863 May 29, 2015 June 15, 2015 February 17, 2015 $ 0.220 $ 17,860 March 6, 2015 March 13, 2015 October 31, 2014 $ 0.220 $ 17,817 November 28, 2014 December 15, 2014 July 28, 2014 $ 0.200 $ 16,201 August 29, 2014 September 12, 2014 May 5, 2014 $ 0.200 $ 16,202 May 30, 2014 June 13, 2014 February 21, 2014 $ 0.200 $ 16,201 March 7, 2014 March 14, 2014 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 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. Because the holders of the participating restricted common shares were not contractually required to share in the Company’s losses, in applying the two-class method to compute the basic and diluted net loss per common share, no allocation to restricted common shares was made for the three months ended September 30, 2015. Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Weighted average shares: Common shares outstanding 80,566,400 80,389,996 80,565,754 80,389,131 Restricted common shares 645,427 600,581 604,179 581,932 Total weighted average shares 81,211,827 80,990,577 81,169,933 80,971,063 Percentage of weighted average shares: Common shares outstanding 99.21 % 99.26 % 99.26 % 99.28 % Restricted common shares 0.79 % 0.74 % 0.74 % 0.72 % Total 100.00 % 100.00 % 100.00 % 100.00 % |
Basic and Diluted earnings per share | The calculations of both basic and diluted earnings per share are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Earnings (loss) per share – Basic: Net income (loss) $ (13,989 ) $ 19,151 $ 71,088 $ 28,064 Less: Distributed and undistributed earnings allocated to restricted common shares (a) — (142 ) (529 ) (202 ) Earnings (loss) available to common shareholders – Basic $ (13,989 ) $ 19,009 $ 70,559 $ 27,862 Weighted average common shares outstanding – Basic 80,566,400 80,389,996 80,565,754 80,389,131 Earnings (loss) per common share – Basic $ (0.17 ) $ 0.24 $ 0.88 $ 0.35 Earnings (loss) per share – Diluted: Net income (loss) $ (13,989 ) $ 19,151 $ 71,088 $ 28,064 Less: Distributed and undistributed earnings allocated to restricted common shares (a) — (142 ) (529 ) (202 ) Earnings (loss) available to common shareholders – Diluted $ (13,989 ) $ 19,009 $ 70,559 $ 27,862 Weighted average common shares outstanding – Basic 80,566,400 80,389,996 80,565,754 80,389,131 Effect of dilutive shares (b) — — — — Weighted average common shares outstanding – Diluted 80,566,400 80,389,996 80,565,754 80,389,131 Earnings (loss) per common share – Diluted $ (0.17 ) $ 0.24 $ 0.88 $ 0.35 (a) For the three months ended September 30, 2014 , distributed and undistributed earnings to restricted shares is 0.74% of net income. For the nine months ended September 30, 2015 and 2014 , distributed and undistributed earnings to restricted shares is 0.74% and 0.72% of net income, respectively. The amount of restricted share forfeitures for all periods present is immaterial to the allocation of distributed and undistributed earnings. (b) For the three and nine months ended September 30, 2015 and 2014 , we had no dilutive shares. |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Sources of income from continuing operations before income taxes | The sources of income (loss) from continuing operations before income taxes and earnings of unconsolidated equity method investment for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 U.S. operations $ 597 $ 772 $ 1,817 $ 2,293 Non-U.S. operations (13,434 ) 20,936 76,745 34,798 Total $ (12,837 ) $ 21,708 $ 78,562 $ 37,091 |
Analysis of effective income tax rate for continuing operations | Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income consisted of the following: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Notional U.S. federal income tax expense (benefit) at the statutory rate $ (4,493 ) $ 7,598 $ 27,497 $ 12,982 U.S. state and local income tax, net 57 57 167 176 Non-U.S. operations: Bermuda 6,696 215 (9,199 ) 6,455 Ireland 2,500 (2,411 ) (407 ) (3,163 ) Singapore (1,385 ) (1,418 ) (4,116 ) (3,895 ) Other (860 ) (692 ) (2,439 ) (2,061 ) Non-deductible expenses in the U.S. 205 146 566 464 Other (11 ) (11 ) (32 ) (33 ) Income tax provision $ 2,709 $ 3,484 $ 12,037 $ 10,925 |
Interest, Net (Tables)
Interest, Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Interest Income (Expense), Net [Abstract] | |
Components of Interest | The following table shows the components of interest, net: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Interest on borrowings, net settlements on interest rate derivatives, and other liabilities $ 51,428 $ 44,820 $ 153,076 $ 144,677 Hedge ineffectiveness losses 215 (4 ) 509 55 Amortization of interest rate derivatives related to deferred losses 5,006 8,549 19,349 26,730 Amortization of deferred financing fees and debt discount 3,746 3,506 11,211 10,493 Interest Expense 60,395 56,871 184,145 181,955 Less interest income (14 ) (77 ) (82 ) (404 ) Interest, net $ 60,381 $ 56,794 $ 184,063 $ 181,551 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment [Table Text Block] | Commitments, including contractual price escalations and other adjustments, for these aircraft at September 30, 2015 , net of amounts already paid, are as follows: Year Ending December 31, Amount Remainder of 2015 $ 130,500 2016 132,122 2017 170,252 2018 258,130 2019 293,267 Thereafter 352,679 Total $ 1,336,950 |
Other Assets (Tables)
Other Assets (Tables) | 9 Months Ended |
Sep. 30, 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: September 30, December 31, Deferred federal income tax asset $ 1,072 $ 567 Lease incentives and lease premiums, net of amortization of $29,813 and $26,477, respectively 96,214 75,587 Flight equipment held for sale 5,212 7,455 Other assets 28,733 21,841 Total other assets $ 131,231 $ 105,450 |
Accounts Payable, Accrued Exp36
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 9 Months Ended |
Sep. 30, 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: September 30, December 31, Accounts payable and accrued expenses $ 38,561 $ 40,765 Deferred federal income tax liability 36,416 37,340 Accrued interest payable 51,728 27,795 Lease discounts, net of amortization of $16,775 and $9,247, respectively 25,071 32,084 Fair value of derivative liabilities 2,433 2,879 Total accounts payable, accrued expenses and other liabilities $ 154,209 $ 140,863 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Beginning balance $ (23,681 ) $ (57,342 ) $ (38,460 ) $ (75,905 ) Amount recognized in other comprehensive loss on derivatives, net of tax expense of $10 and $7 for the three months and tax expense of $10 and $728 for the nine months ended September 30, 2015 and 2014, respectively (545 ) 509 (1,940 ) (3,068 ) Amounts reclassified from accumulated other comprehensive loss into income, net of tax benefit of $7 and expense of $14 for the three months and tax expense of $16 and $97 for the nine months ended September 30, 2015 and 2014, respectively 5,823 9,683 21,997 31,823 Net current period other comprehensive income 5,278 10,192 20,057 28,755 Ending balance $ (18,403 ) $ (47,150 ) $ (18,403 ) $ (47,150 ) (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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Amount of effective amortization of net deferred interest rate derivative losses (b) $ 5,006 $ 8,549 $ 19,349 $ 26,730 Effective amount of net settlements of interest rate derivatives, net of tax benefit of $7 and expense of $14 for the three months and tax expense of $16 and $97 for the nine months ended September 30, 2015 and 2014, respectively (b) 817 1,134 2,648 5,093 Amount of loss reclassified from accumulated other comprehensive loss into income (c) $ 5,823 $ 9,683 $ 21,997 $ 31,823 (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 Accoun38
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2015Entitysegment | |
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 | Entity | 7 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Liabilities: | ||
Derivative liabilities | $ 2,433 | $ 2,879 |
Recurring | Quoted Prices In Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | 149,041 | 169,656 |
Restricted cash and cash equivalents | 84,258 | 98,884 |
Total | 233,299 | 268,540 |
Liabilities: | ||
Derivative liabilities | 0 | |
Recurring | Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | |
Restricted cash and cash equivalents | 0 | |
Total | 0 | |
Liabilities: | ||
Derivative liabilities | 2,433 | 2,879 |
Recurring | Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | |
Restricted cash and cash equivalents | 0 | |
Total | 0 | |
Liabilities: | ||
Derivative liabilities | 0 | |
Recurring | Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 149,041 | 169,656 |
Restricted cash and cash equivalents | 84,258 | 98,884 |
Total | 233,299 | 268,540 |
Liabilities: | ||
Derivative liabilities | $ 2,433 | $ 2,879 |
Fair Value Measurements (Deta40
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Liability | $ 2,433 | $ 2,879 | ||
Restricted Cash and Cash Equivalents | 84,258 | 98,884 | ||
Cash and Cash Equivalents, at Carrying Value | 149,041 | 169,656 | $ 474,338 | $ 654,613 |
Fair Value, Inputs, Level 1 [Member] | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Liability | 0 | |||
Estimate of Fair Value Measurement [Member] | Recurring | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Derivative Liability | $ 2,433 | $ 2,879 |
Fair Value Measurements (Deta41
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Securitization No. 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ (229,969) | $ (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 | (50,000) | (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 | (415,988) | (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 | (653,486) | (554,888) |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | Securitization No. 2 | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | (226,385) | (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 | (50,000) | (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 | (441,218) | (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 | (674,706) | (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 | $ (2,820,988) | $ (2,300,615) |
Fair Value Measurements (Deta42
Fair Value Measurements (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015USD ($)Aircraft | Sep. 30, 2014USD ($)Aircraft | Jun. 30, 2015USD ($)Aircraft | Jun. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($)Aircraft | Aug. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Property Subject to or Available for Operating Lease, Net | $ 5,885,807 | $ 53,777 | $ 5,885,807 | $ 115,888 | $ 5,579,718 | |||
Impairment of Aircraft | 78,403 | $ 20,436 | 102,358 | $ 67,005 | ||||
Maintenance Revenue | 15,726 | (4,189) | 55,148 | 35,035 | ||||
Other revenue | 8,555 | 2,511 | $ 10,700 | 6,763 | ||||
Fleet Review [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Impairment of Aircraft | 34,575 | $ 19,515 | ||||||
Maintenance Revenue | $ 5,858 | |||||||
Fleet Review [Member] | B747-400 Converted Freighter [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Aircraft with Reduced Cash Flow Forecasts due to Annual Fleet Review | Aircraft | 6 | |||||||
Number of Aircraft Impaired | Aircraft | 4 | 2 | ||||||
Transactional [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Impairment of Aircraft | $ 23,955 | $ 46,570 | ||||||
Maintenance Revenue | $ 18,234 | 24,262 | ||||||
Other revenue | 137 | |||||||
Lease Incentive Reversal | $ 3,626 | |||||||
Transactional [Member] | A321-200 [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Number of Aircraft Impaired | Aircraft | 1 | |||||||
Impairment of Aircraft | $ 6,058 | |||||||
Maintenance Revenue | 7,109 | |||||||
Transactional [Member] | B-777-200 [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Impairment of Aircraft | 37,770 | |||||||
Other revenue | $ 1,200 | |||||||
Transactional [Member] | McDonnell Douglas MD-11F Freighter Aircraft [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Number of Aircraft Impaired | Aircraft | 2 | |||||||
Transactional [Member] | B-737-800 [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Number of Aircraft Impaired | Aircraft | 1 | |||||||
Transactional [Member] | B747-400 Converted Freighter [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Number of Aircraft Impaired | Aircraft | 3 | |||||||
Transactional [Member] | B-737 Classic [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Number of Aircraft Impaired | Aircraft | 1 | |||||||
B747-400 Converted Freighter [Member] | Maximum [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 25 years | |||||||
B747-400 Converted Freighter [Member] | Minimum [Member] | ||||||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 21 years |
Lease Rental Revenues and Fli43
Lease Rental Revenues and Flight Equipment Held for Lease (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Annual future minimum lease rentals receivable | |
Remainder of 2015 | $ 182,038 |
2,014 | 701,166 |
2,015 | 614,693 |
2,016 | 535,419 |
2,017 | 469,377 |
Thereafter | 1,531,375 |
Total | $ 4,034,068 |
Lease Rental Revenues and Fli44
Lease Rental Revenues and Flight Equipment Held for Lease (Details 1) - Lease Rental Revenue - Geographic Concentration Risk | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 100.00% | 100.00% | 100.00% | 100.00% |
Asia and Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 28.00% | 29.00% | 28.00% | 29.00% |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 43.00% | 39.00% | 42.00% | 40.00% |
Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 4.00% | 10.00% | 6.00% | 10.00% |
North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 16.00% | 13.00% | 15.00% | 12.00% |
Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 9.00% | 9.00% | 9.00% | 9.00% |
Lease Rental Revenues and Fli45
Lease Rental Revenues and Flight Equipment Held for Lease (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue attributable to individual countries | ||||
Revenue | $ 188,038 | $ 178,886 | $ 550,023 | $ 536,452 |
Maintenance revenue | $ 15,726 | $ (4,189) | $ 55,148 | $ 35,035 |
Lease Rental Revenues and Fli46
Lease Rental Revenues and Flight Equipment Held for Lease (Details 3) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015USD ($)Aircraft | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)Aircraft | Sep. 30, 2014USD ($) | Dec. 31, 2014Aircraft | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | $ | $ 188,038 | $ 178,886 | $ 550,023 | $ 536,452 | ||
Maintenance Revenue | $ | $ 15,726 | (4,189) | $ 55,148 | 35,035 | ||
Number of Aircraft | 160 | 160 | 148 | |||
Number of Offlease Aircraft Marketed for Lease | 1 | 1 | 1 | |||
Other Revenue, Net | $ | $ 8,555 | $ 2,511 | $ 10,700 | $ 6,763 | ||
Asia and Pacific | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of Aircraft | 66 | 66 | 65 | |||
Europe | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of Aircraft | 54 | 54 | 46 | |||
Middle East and Africa | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of Aircraft | 15 | 15 | 17 | |||
North America | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of Aircraft | 18 | 18 | 13 | |||
Middle East and Africa | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Number of Aircraft | 6 | 6 | 6 | |||
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 | 27.00% | 29.00% | ||||
Geographic Concentration Risk | Net Book Value | Europe | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Percentage of geographic concentration | 42.00% | 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 | 5.00% | 7.00% | ||||
Geographic Concentration Risk | Net Book Value | North America | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Percentage of geographic concentration | 17.00% | 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 | 0.00% | [1] | 0.00% | |||
[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 Fli47
Lease Rental Revenues and Flight Equipment Held for Lease (Details 4) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015USD ($)AircraftLessee | Dec. 31, 2014USD ($)AircraftLessee | Aug. 31, 2015USD ($) | Jun. 30, 2014USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 5,885,807 | $ 5,579,718 | $ 115,888 | $ 53,777 |
Number of Offlease Aircraft Marketed for Lease | Aircraft | 1 | 1 | ||
INDONESIA | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Property Subject to or Available for Operating Lease, Net | $ 637,810 | $ 0 | ||
property subject to or available for operating lease, net (percentage) | 11.00% | 0.00% | ||
number of lessees | Lessee | 3,000 | 0 | ||
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 Fli48
Lease Rental Revenues and Flight Equipment Held for Lease (Details Textual) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($)Lessee | Sep. 30, 2014Lessee | Sep. 30, 2015USD ($)Lessee | Sep. 30, 2014Lessee | Dec. 31, 2014USD ($) | |
Customer Group One | |||||
Revenue, Major Customer [Line Items] | |||||
Entity-Wide Revenue, Major Customer, Number | 2 | 4 | 3 | 3 | |
Other Customers | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of lease rental revenues accounted by customers | 5.00% | 5.00% | 5.00% | 5.00% | |
Lease Rental Revenue | Customer Concentration Risk | Customer Group One | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of geographic concentration | 12.00% | 24.00% | 17.00% | 17.00% | |
Maintenance Payments {Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Amounts of lease incentive liabilities recorded in the consolidated balance sheets | $ | $ 27,500 | $ 27,500 | $ 22,833 |
Net Investment in Finance Lea49
Net Investment in Finance Leases Narrative (Details) | Sep. 30, 2015AircraftCustomer |
United States | |
Capital Leased Assets [Line Items] | |
Capital Leased Assets, Number of Units | 6 |
Capital Leased Assets, Number of Customers | Customer | 2 |
CANADA | |
Capital Leased Assets [Line Items] | |
Capital Leased Assets, Number of Units | 1 |
GERMANY | |
Capital Leased Assets [Line Items] | |
Capital Leased Assets, Number of Units | 1 |
Net Investment in Finance Lea50
Net Investment in Finance Leases Net Investment in Finance Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ||
Total lease payments to be received | $ 93,976 | |
Less: Unearned income | (37,227) | |
Estimated residual values of leased flight equipment (unguaranteed) | 64,133 | |
Net investment in finance leases | 120,882 | $ 106,651 |
2,015 | 3,842 | |
2,016 | 15,365 | |
2,017 | 14,843 | |
2,018 | 9,715 | |
2,019 | 9,695 | |
Thereafter | 40,516 | |
Total | $ 93,976 |
Unconsolidated Equity Method 51
Unconsolidated Equity Method Investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Unconsolidated equity method investment | $ 49,131 | $ 49,131 | $ 46,453 | ||
Customer Advances and Deposits | 338,515 | 338,515 | 333,456 | ||
Earnings of unconsolidated equity method investment, net of tax | $ 1,557 | $ 927 | 4,563 | $ 1,898 | |
Distributions from unconsolidated equity method investment in excess of earnings | $ 0 | $ (997) | |||
Related Party Transaction, Percentage Ownership of Company Outstanding Shares | 9.70% | 9.70% | |||
Equity Method Investee | OTTP | |||||
Unconsolidated equity method investment | $ 49,131 | $ 49,131 | $ 46,453 | ||
Equity Method Investment, Ownership Percentage | 30.00% | 30.00% | |||
Equity Method Investments Before Earnings | $ 2,994 | ||||
Earnings of unconsolidated equity method investment, net of tax | 4,563 | ||||
Distributions from unconsolidated equity method investment in excess of earnings | (4,879) | ||||
Maintenance Payments {Member] | Equity Method Investee | OTTP | |||||
Customer Advances and Deposits | $ 6,270 | 6,270 | |||
security deposit [Member] | Equity Method Investee | OTTP | |||||
Customer Advances and Deposits | $ 5,400 | $ 5,400 |
Variable Interest Entities (Det
Variable Interest Entities (Details) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($)AircraftTerm_LoanEntity$ / shares | Dec. 31, 2014USD ($) | |
Variable Interest Entity [Line Items] | ||
Borrowings from secured financings | $ 1,277,361 | $ 1,373,131 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of Consolidated Variable Interest Entities | Entity | 7 | |
Number of Aircrafts | Aircraft | 12 | |
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 | $ / shares | $ 2 | |
Number of aircraft transferred to historical cost basis | Aircraft | 4 | |
Combined assets | $ 88,771 | |
Combined Liabilities | 64,787 | |
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 | Term_Loan | 8 | |
Debt instrument, term | 12 years | |
Net book value of flight equipment held for lease | $ 625,680 | |
Consolidated debt outstanding | $ 401,339 |
Secured and Unsecured Debt Fi53
Secured and Unsecured Debt Financings (Details) $ in Thousands | 9 Months Ended | |||||
Sep. 30, 2015USD ($)Aircraft | Sep. 30, 2014USD ($) | Jan. 26, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2014USD ($) | ||
Debt Instrument [Line Items] | ||||||
Repayments of Long-term Debt | $ 548,359 | $ 895,459 | ||||
Term debt financings assumed in asset acquisitions | 0 | $ 39,061 | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from secured financings | $ 1,277,361 | $ 1,373,131 | ||||
Number of Aircraft Financed | Aircraft | 51 | |||||
Borrowings from unsecured financings, net of debt issuance costs | $ 2,717,859 | 2,371,456 | ||||
Total secured and unsecured debt financings | 3,995,220 | 3,744,587 | ||||
Line of Credit | Revolving Credit Facility [Member] | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs | 200,000 | |||||
2013 Revolving Credit Facility | Line of Credit | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, current borrowing capacity | $ 600,000 | $ 450,000 | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 50,000 | |||||
Revolving Credit Facility [Member] | Line of Credit | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | [1] | 2.4365% | ||||
Securitization No. 2 | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from secured financings | $ 229,969 | 391,680 | ||||
Number of Aircraft Financed | Aircraft | 30 | |||||
Interest rate | [1] | 0.5143% | ||||
ECA Term Financings {Member] | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Number of Aircraft Financed | Aircraft | 8 | |||||
ECA Term Financings {Member] | Notes Payable, Other Payables | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from secured financings | $ 415,988 | 449,886 | ||||
Minimum effective interest rate | [1] | 3.0153% | ||||
Maximum effective interest rate | [1] | 3.96% | ||||
Bank Financings | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Number of Aircraft Financed | Aircraft | 13 | |||||
Bank Financings | Notes Payable to Banks | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from secured financings | $ 653,486 | 554,888 | ||||
Minimum effective interest rate | [1] | 1.2064% | ||||
Maximum effective interest rate | [1] | 5.085% | ||||
Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Issuance Cost | $ (22,082) | (23,323) | ||||
Senior Notes Due 2017 | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 | ||||
Interest rate | [1] | 6.75% | ||||
Senior Notes Due 2018 with 4.625 Interest Rate | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 400,000 | 400,000 | ||||
Interest rate | [1] | 4.625% | ||||
Senior Notes Due 2019 | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 | ||||
Interest rate | [1] | 6.25% | ||||
Senior Notes Due 2020 | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 300,000 | 300,000 | ||||
Interest rate | [1] | 7.625% | ||||
Senior Notes due 2021 | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 | ||||
Interest rate | [1] | 5.125% | ||||
Senior Notes Due 2022 [Member] | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 0 | ||||
Interest rate | [1] | 5.50% | ||||
Unsecured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Issuance Cost | $ (32,141) | $ (28,544) | ||||
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, five of our Bank Financings, and our Revolving Credit Facility. All other financings have a fixed rate. |
Secured and Unsecured Debt Fi54
Secured and Unsecured Debt Financings (Details 1) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
May. 31, 2015AircraftBankfinancings | Mar. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jan. 26, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2014USD ($) | ||
Debt Instrument [Line Items] | |||||||||
Repayments of Long-term Debt | $ 548,359 | $ 895,459 | |||||||
Term debt financings assumed in asset acquisitions | 0 | $ 39,061 | |||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 2,717,859 | $ 2,371,456 | |||||||
Secured Debt | Securitization No. 2 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [1] | 0.5143% | |||||||
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 | 3.15% | ||||||||
Debt Instrument, Minimum Net Worth Covenant Required | $ 500,000 | ||||||||
Notes Payable to Banks | Bank Financings, Floating Rate [Member] | A330-300 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Number of debt instruments | Bankfinancings | 2 | ||||||||
Debt Instrument, Face Amount | $ 150,000 | ||||||||
Number Of Aircraft | Aircraft | 2 | ||||||||
Senior Notes | Senior Notes Due 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [1] | 7.625% | |||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 300,000 | 300,000 | |||||||
Senior Notes | Senior Notes due 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [1] | 5.125% | |||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 | |||||||
Senior Notes | Senior Notes Due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | [1] | 5.50% | |||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 0 | |||||||
Line of Credit | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowings from unsecured financings, net of debt issuance costs | 200,000 | ||||||||
Line of Credit | 2013 Revolving Credit Facility | Revolving Credit Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, current borrowing capacity | $ 600,000 | $ 450,000 | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 50,000 | ||||||||
Senior Notes Due 2022 [Member] | Senior Notes Due 2022 [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest rate | 5.50% | ||||||||
Borrowings from unsecured financings, net of debt issuance costs | $ 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, five of our Bank Financings, and our Revolving Credit Facility. All other financings have a fixed rate. |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Aug. 04, 2015 | May. 04, 2015 | Feb. 18, 2015 | Oct. 31, 2014 | Jul. 28, 2014 | May. 05, 2014 | Feb. 21, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Dividends [Abstract] | |||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.00220 | $ 0.00220 | $ 0.00220 | $ 0.00220 | $ 0.00200 | $ 0.00200 | $ 0.00200 | $ 0.22 | $ 0.20 | $ 0.66 | $ 0.60 |
Aggregate Dividend Amount | $ 17,860 | $ 17,863 | $ 17,860 | $ 17,817 | $ 16,201 | $ 16,202 | $ 16,201 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Weighted-average shares: | ||||
Common shares outstanding | 80,566,400 | 80,389,996 | 80,565,754 | 80,389,131 |
Restricted common shares | 645,427 | 600,581 | 604,179 | 581,932 |
Total Weighted Average Shares | 81,211,827 | 80,990,577 | 81,169,933 | 80,971,063 |
Percentage of weighted-average shares: | ||||
Common shares outstanding | 99.21% | 99.26% | 99.26% | 99.28% |
Restricted common shares | 0.79% | 0.74% | 0.74% | 0.72% |
Total | 100.00% | 100.00% | 100.00% | 100.00% |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Earnings Per Share [Abstract] | |||||
Participating Securities, Distributed and Undistributed Earnings of Net Income, Percent | 0.79% | 0.74% | 0.74% | 0.72% | |
Earnings (loss) per share – Basic: | |||||
Net income (loss) | $ (13,989) | $ 19,151 | $ 71,088 | $ 28,064 | |
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | [1] | 0 | 142 | 529 | 202 |
Earnings (loss) available to common shareholders – Basic | $ (13,989) | $ 19,009 | $ 70,559 | $ 27,862 | |
Weighted average common shares outstanding – Basic | 80,566,400 | 80,389,996 | 80,565,754 | 80,389,131 | |
Earnings (loss) per common share – Basic | $ (0.17) | $ 0.24 | $ 0.88 | $ 0.35 | |
Earnings (loss) per share – Diluted: | |||||
Net income (loss) | $ (13,989) | $ 19,151 | $ 71,088 | $ 28,064 | |
Earnings (loss) available to common shareholders – Diluted | $ (13,989) | $ 19,009 | $ 70,559 | $ 27,862 | |
Weighted average common shares outstanding – Basic | 80,566,400 | 80,389,996 | 80,565,754 | 80,389,131 | |
Effect of dilutive shares(b) | [2] | 0 | 0 | 0 | 0 |
Weighted average common shares outstanding – Diluted | 80,566,400 | 80,389,996 | 80,565,754 | 80,389,131 | |
Earnings (loss) per common share – Diluted | $ (0.17) | $ 0.24 | $ 0.88 | $ 0.35 | |
[1] | For the three months ended September 30, 2014, distributed and undistributed earnings to restricted shares is 0.74% of net income. For the nine months ended September 30, 2015 and 2014, distributed and undistributed earnings to restricted shares is 0.74% and 0.72% of net income, respectively. The amount of restricted share forfeitures for all periods present is immaterial to the allocation of distributed and undistributed earnings. | ||||
[2] | For the three and nine months ended September 30, 2015 and 2014, we had no dilutive shares. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Sources of income from continuing operations before income taxes | ||||
U.S. operations | $ 597 | $ 772 | $ 1,817 | $ 2,293 |
Non-U.S. operations | (13,434) | 20,936 | 76,745 | 34,798 |
Income (loss) from continuing operations before income taxes | $ (12,837) | $ 21,708 | $ 78,562 | $ 37,091 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Analysis of effective income tax rate for continuing operations | ||||
Notional U.S. federal income tax expense (benefit) at the statutory rate | $ (4,493) | $ 7,598 | $ 27,497 | $ 12,982 |
U.S. state and local income tax, net | 57 | 57 | 167 | 176 |
Non-deductible expenses in the U.S. | 205 | 146 | 566 | 464 |
Other | (11) | (11) | (32) | (33) |
Income tax provision | 2,709 | 3,484 | 12,037 | 10,925 |
Bermuda | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (9,199) | 6,455 | ||
Ireland | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (407) | (3,163) | ||
Other | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (2,439) | (2,061) | ||
Singapore | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (1,385) | (1,418) | $ (4,116) | $ (3,895) |
Other | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (860) | (692) | ||
Ireland | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | 2,500 | (2,411) | ||
Bermuda | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | $ 6,696 | $ 215 |
Income Taxes Income Taxes (Text
Income Taxes Income Taxes (Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | 21.10% | 16.00% | 15.30% | 29.50% |
Impairment of Aircraft | $ 78,403 | $ 20,436 | $ 102,358 | $ 67,005 |
Gains (Losses) on Extinguishment of Debt | $ 0 | $ 0 | $ 0 | $ 36,570 |
Interest, Net (Details)
Interest, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest Income (Expense), Net [Abstract] | ||||
Interest on borrowings, net settlements on interest rate derivatives, and other liabilities | $ 51,428 | $ 44,820 | $ 153,076 | $ 144,677 |
Hedge ineffectiveness losses | 215 | (4) | 509 | 55 |
Cash flow hedges reclassified into earnings | 5,006 | 8,549 | 19,349 | 26,730 |
Amortization of deferred financing costs | 3,746 | 3,506 | 11,211 | 10,493 |
Interest Expense | 60,395 | 56,871 | 184,145 | 181,955 |
Less interest income | (14) | (77) | (82) | (404) |
Interest, net | $ 60,381 | $ 56,794 | $ 184,063 | $ 181,551 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015Aircraft | Sep. 30, 2015USD ($)Aircraft | |
Types of Commercial Aircraft [Line Items] | ||
Long-term Purchase Commitment, Minimum Quantity Required | Aircraft | 25 | |
Long Term Purchase Rights | Aircraft | 25 | |
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year | $ 130,500 | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | Aircraft | 34 | |
Unrecorded Unconditional Purchase Obligation | $ 1,336,950 | |
Purchase Obligation, Due in Second Year | 132,122 | |
Purchase Obligation, Due in Third Year | 170,252 | |
Purchase Obligation, Due in Fourth Year | 258,130 | |
Purchase Obligation, Due in Fifth Year | 293,267 | |
Purchase Obligation, Due after Fifth Year | 352,679 | |
Purchase Obligation | 1,336,950 | |
Pre-Delivery Payments [Member] | ||
Types of Commercial Aircraft [Line Items] | ||
Purchase Obligation | $ 142,170 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Principal components of other assets | ||
Deferred federal income tax asset | $ 1,072 | $ 567 |
Lease incentives and lease premiums, net of amortization of $29,813 and $26,477, respectively | 96,214 | 75,587 |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 5,212 | 7,455 |
Other assets | 28,733 | 21,841 |
Total other assets | 131,231 | 105,450 |
Amortization of lease incentives and lease premiums | $ 29,813 | $ 26,477 |
Accounts Payable, Accrued Exp64
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 38,561 | $ 40,765 |
Deferred federal income tax liability | 36,416 | 37,340 |
Accrued interest payable | 51,728 | 27,795 |
Lease discounts, net of amortization of $16,775 and $9,247, respectively | 25,071 | 32,084 |
Derivative Liability | 2,433 | 2,879 |
Total accounts payable, accrued expenses and other liabilities | 154,209 | 140,863 |
Deferred Revenue, Leases, Accumulated Amortization | $ 16,775 | $ 9,247 |
Accumulated Other Comprehensi65
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Derivative Liability | $ 2,433 | $ 2,433 | $ 2,879 | ||||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Beginning balance | (38,460) | ||||||
Net current period other comprehensive income | 5,278 | $ 10,192 | 20,057 | $ 28,755 | |||
Ending balance | (18,403) | (18,403) | |||||
Tax Expense from Amount Recognized in Other Comprehensive Income Related to Derivatives | 3 | 21 | 26 | 825 | |||
Interest Expense | 60,395 | 56,871 | 184,145 | 181,955 | |||
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 | 12,883 | ||||||
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 | 1,987 | ||||||
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 | 5,006 | 8,549 | 19,349 | 26,730 | |||
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 | (545) | 509 | (1,940) | (3,068) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 5,823 | 9,683 | 21,997 | 31,823 | |||
Accumulated Other Comprehensive Income [Roll Forward] | |||||||
Beginning balance | (23,681) | (57,342) | (38,460) | (75,905) | |||
Net current period other comprehensive income | 5,278 | 10,192 | [1] | 20,057 | 28,755 | [1] | |
Ending balance | (18,403) | (47,150) | (18,403) | (47,150) | |||
Tax Expense from Amount Recognized in Other Comprehensive Income Related to Derivatives | 10 | 7 | 10 | 728 | |||
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 | 5,823 | 9,683 | 21,997 | 31,823 | |||
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 | (7) | 14 | 16 | 97 | |||
Interest Expense | $ 817 | $ 1,134 | 2,648 | $ 5,093 | |||
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 | 1,154 | ||||||
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 | 7,547 | ||||||
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 | 2,865 | ||||||
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 | $ 1,317 | ||||||
[1] | All amounts are net of tax. Amounts in parentheses indicate debits. |