Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Fly Leasing Ltd |
Entity Central Index Key | 1,407,298 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 27,983,352 |
Manager Shares Outstanding | 100 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 329,105 | $ 517,964 |
Restricted cash and cash equivalents | 127,710 | 94,123 |
Rent receivables | 2,059 | 419 |
Investment in unconsolidated subsidiary | 8,196 | 7,700 |
Investment in finance lease, net | 13,946 | 15,095 |
Flight equipment held for operating lease, net | 2,961,744 | 2,693,821 |
Maintenance rights, net | 131,299 | 101,969 |
Deferred tax asset, net | 9,943 | 7,445 |
Fair value of derivative assets | 2,643 | 1,905 |
Other assets, net | 8,970 | 6,568 |
Total assets | 3,595,615 | 3,447,009 |
Liabilities | ||
Accounts payable and accrued liabilities | 18,305 | 13,786 |
Rentals received in advance | 14,968 | 13,123 |
Payable to related parties | 2,084 | 5,042 |
Security deposits | 49,689 | 42,495 |
Maintenance payment liability | 244,151 | 182,571 |
Unsecured borrowings, net | 615,922 | 691,390 |
Secured borrowings, net | 2,029,675 | 1,831,985 |
Deferred tax liability, net | 30,112 | 19,847 |
Fair value of derivative liabilities | 7,344 | 13,281 |
Other liabilities | 39,656 | 40,254 |
Total liabilities | 3,051,906 | 2,853,774 |
Shareholders' equity | ||
Common shares, $0.001 par value; 499,999,900 shares authorized; 27,983,352 and 32,256,440 shares issued and outstanding at December 31, 2017 and 2016, respectively | 28 | 32 |
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 479,637 | 536,922 |
Retained earnings | 68,624 | 66,026 |
Accumulated other comprehensive loss, net | (4,580) | (9,745) |
Total shareholders' equity | 543,709 | 593,235 |
Total liabilities and shareholders' equity | $ 3,595,615 | $ 3,447,009 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Shareholders' equity | ||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, shares authorized (in shares) | 499,999,900 | 499,999,900 |
Common shares, shares issued (in shares) | 27,983,352 | 32,256,440 |
Common shares, shares outstanding (in shares) | 27,983,352 | 32,256,440 |
Manager shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Manager shares, shares authorized (in shares) | 100 | 100 |
Manager shares, shares issued (in shares) | 100 | 100 |
Manager shares, shares outstanding (in shares) | 100 | 100 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Operating lease revenue | $ 346,894 | $ 313,582 | $ 429,691 |
Finance lease revenue | 731 | 2,066 | 299 |
Equity earnings from unconsolidated subsidiary | 496 | 530 | 1,159 |
Gain on sale of aircraft | 3,926 | 27,195 | 28,959 |
Interest and other income | 1,204 | 1,666 | 2,289 |
Total revenues | 353,251 | 345,039 | 462,397 |
Expenses | |||
Depreciation | 133,227 | 120,452 | 159,732 |
Aircraft impairment | 22,000 | 96,122 | 66,093 |
Interest expense | 127,782 | 123,161 | 145,448 |
Selling, general and administrative | 30,671 | 30,077 | 33,674 |
Ineffective, dedesignated and terminated derivatives | (192) | 91 | 4,134 |
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 17,491 |
Maintenance and other costs | 2,524 | 2,279 | 7,628 |
Total expenses | 339,321 | 381,428 | 434,200 |
Net income (loss) before provision (benefit) for income taxes | 13,930 | (36,389) | 28,197 |
Provision (benefit) for income taxes | 11,332 | (7,277) | 5,399 |
Net income (loss) | $ 2,598 | $ (29,112) | $ 22,798 |
Weighted average number of shares: | |||
Basic (in shares) | 30,307,357 | 33,239,001 | 41,222,690 |
Diluted (in shares) | 30,353,425 | 33,239,001 | 41,315,149 |
Earnings (loss) per share: | |||
Basic (in dollars per share) | $ 0.09 | $ (0.88) | $ 0.52 |
Diluted (in dollars per share) | 0.09 | (0.88) | 0.52 |
Dividends declared and paid per share (in dollars per share) | $ 0 | $ 0 | $ 1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | ||||||
Net income (loss) | $ 2,598 | $ (29,112) | $ 22,798 | |||
Other components of comprehensive income (loss), net of tax: | ||||||
Change in fair value of derivatives, net of deferred tax | [1],[2] | 3,926 | 5,036 | 158 | ||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax | [3] | 0 | (10) | [1] | (130) | [1] |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1],[4] | 1,239 | 729 | 1,563 | ||
Comprehensive income (loss) | $ 7,763 | $ (23,357) | $ 24,389 | |||
[1] | See Note 12 to Notes to Consolidated Financial Statements | |||||
[2] | The associated deferred tax expense was $0.6 million, $0.7 million and $0.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. | |||||
[3] | The associated deferred tax benefit was $1,000 and $19,000 for the years ended December 31, 2016 and 2015, respectively. | |||||
[4] | The associated deferred tax expense was $0.2 million, $0.1 million and $0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other components of comprehensive income (loss), net of tax: | |||
Change in fair value of derivatives, deferred tax expense (benefit) | $ 600 | $ 700 | $ 300 |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | (1) | (19) | |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 200 | $ 100 | $ 200 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Manager Shares [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss, Net [Member] | Total | ||
Beginning balance at Dec. 31, 2014 | $ 0 | $ 41 | $ 658,522 | $ 114,782 | $ (17,091) | $ 756,254 | ||
Beginning balance (in shares) at Dec. 31, 2014 | 100 | 41,432,998 | ||||||
Dividends to shareholders | $ 0 | $ 0 | 0 | (41,388) | 0 | (41,388) | ||
Dividend equivalents | 0 | 0 | 0 | (1,054) | 0 | (1,054) | ||
Shares issued in connection with vested share grants | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||
Shares issued in connection with vested share grants (in shares) | 0 | 36,075 | ||||||
Shares repurchased pursuant to share repurchase program | $ 0 | $ 0 | (5,529) | 0 | 0 | $ (5,529) | ||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | (421,329) | (5,797,673) | |||||
Shares repurchased pursuant to tender offer | $ 0 | $ (5) | (75,898) | 0 | 0 | $ (75,903) | ||
Shares repurchased pursuant to tender offer (in shares) | 0 | (5,376,344) | ||||||
Share-based compensation | $ 0 | $ 0 | 195 | 0 | 0 | 195 | ||
Net income (loss) | 0 | 0 | 0 | 22,798 | 0 | 22,798 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 158 | 158 | [2] |
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (130) | (130) | [3] |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 1,563 | 1,563 | [4] |
Ending balance at Dec. 31, 2015 | $ 0 | $ 36 | 577,290 | 95,138 | (15,500) | 656,964 | ||
Ending balance (in shares) at Dec. 31, 2015 | 100 | 35,671,400 | ||||||
Shares repurchased pursuant to share repurchase program | $ 0 | $ (4) | (40,368) | 0 | 0 | $ (40,372) | ||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | (3,414,960) | (3,414,960) | |||||
Net income (loss) | $ 0 | $ 0 | 0 | (29,112) | 0 | $ (29,112) | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 5,036 | 5,036 | [2] |
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (10) | (10) | [3] |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 729 | 729 | [4] |
Ending balance at Dec. 31, 2016 | $ 0 | $ 32 | 536,922 | 66,026 | (9,745) | 593,235 | ||
Ending balance (in shares) at Dec. 31, 2016 | 100 | 32,256,440 | ||||||
Shares repurchased pursuant to share repurchase program | $ 0 | $ (4) | (57,285) | 0 | 0 | $ (57,289) | ||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | (4,274,569) | (4,274,569) | |||||
Shares issued in connection with SARs exercised | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | ||
Shares issued in connection with SARs exercised (in shares) | 0 | 1,481 | ||||||
Net income (loss) | $ 0 | $ 0 | 0 | 2,598 | 0 | 2,598 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 3,926 | 3,926 | [2] |
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax | [3] | 0 | ||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 1,239 | 1,239 | [4] |
Ending balance at Dec. 31, 2017 | $ 0 | $ 28 | $ 479,637 | $ 68,624 | $ (4,580) | $ 543,709 | ||
Ending balance (in shares) at Dec. 31, 2017 | 100 | 27,983,352 | ||||||
[1] | See Note 12 to Notes to Consolidated Financial Statements | |||||||
[2] | The associated deferred tax expense was $0.6 million, $0.7 million and $0.3 million for the years ended December 31, 2017, 2016 and 2015, respectively. | |||||||
[3] | The associated deferred tax benefit was $1,000 and $19,000 for the years ended December 31, 2016 and 2015, respectively. | |||||||
[4] | The associated deferred tax expense was $0.2 million, $0.1 million and $0.2 million for the years ended December 31, 2017, 2016 and 2015, respectively. |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Consolidated Statement of Shareholders' Equity [Abstract] | |||
Change in fair value of derivatives, deferred tax expense (benefit) | $ 600 | $ 700 | $ 300 |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | (1) | (19) | |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 200 | $ 100 | $ 200 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ 2,598 | $ (29,112) | $ 22,798 |
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||
Equity earnings from unconsolidated subsidiary | (496) | (530) | (1,159) |
Finance lease revenue | (731) | (2,066) | (299) |
Gain on sale of aircraft | (3,926) | (27,195) | (28,959) |
Depreciation | 133,227 | 120,452 | 159,732 |
Aircraft impairment | 22,000 | 96,122 | 66,093 |
Amortization of debt discounts and debt issuance costs | 7,955 | 9,375 | 11,922 |
Amortization of lease incentives | 7,668 | 8,898 | 20,527 |
Amortization of lease premiums, discounts and other | 412 | 388 | 2,046 |
Amortization of GAAM acquisition fair value adjustments | 1,223 | 1,621 | 3,650 |
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 17,491 |
Share-based compensation | 0 | 0 | 195 |
Unrealized foreign exchange (gain) loss | 2,305 | (437) | (1,247) |
Provision (benefit) for deferred income taxes | 5,178 | (9,158) | 4,919 |
(Gain) loss on derivative instruments | (478) | 76 | 4,134 |
Security deposits and maintenance payment liability recognized into earnings | (16,268) | (3,450) | (48,658) |
Security deposits and maintenance payment claims applied towards operating lease revenue | 0 | (684) | 0 |
Cash receipts from maintenance rights | 0 | 9,513 | 0 |
Maintenance rights recognized into earnings | 465 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Rent receivables | (4,251) | (1,034) | 6,814 |
Other assets | (2,599) | (1,134) | 137 |
Payable to related parties | (10,126) | (17,163) | (19,407) |
Accounts payable, accrued liabilities and other liabilities | 11,588 | (10,964) | (2,183) |
Net cash flows provided by operating activities | 179,053 | 152,764 | 218,546 |
Cash Flows from Investing Activities | |||
Investment in unconsolidated subsidiary | 0 | 0 | (2,009) |
Rent received from finance lease | 1,880 | 2,970 | 424 |
Investment in finance lease | 0 | 0 | (33,596) |
Purchase of flight equipment | (434,122) | (552,166) | (567,523) |
Proceeds from sale of aircraft, net | 21,750 | 430,867 | 1,110,046 |
Payments for aircraft improvement | (7,357) | (2,230) | (8,196) |
Payments for lessor maintenance obligations | (12,564) | (2,712) | (18,609) |
Net cash flows (used in) provided by investing activities | (430,413) | (123,271) | 480,537 |
Cash Flows from Financing Activities | |||
Security deposits received | 7,196 | 920 | 13,914 |
Security deposits returned | (3,554) | (7,438) | (7,788) |
Maintenance payment liability receipts | 75,765 | 71,514 | 84,491 |
Maintenance payment liability disbursements | (14,303) | (10,951) | (38,768) |
Net swap termination payments | 0 | (709) | (3,737) |
Debt modification and extinguishment costs | (17,396) | (3,153) | (3,623) |
Debt issuance costs | (1,464) | (2,552) | (933) |
Proceeds from unsecured borrowings | 295,150 | 0 | 0 |
Repayment of unsecured borrowings | (375,000) | 0 | 0 |
Proceeds from secured borrowings | 513,459 | 572,719 | 147,276 |
Repayment of secured borrowings | (326,909) | (448,346) | (791,385) |
Shares repurchased | (57,286) | (40,257) | (81,432) |
Dividends paid | 0 | 0 | (41,388) |
Dividend equivalents | 0 | 0 | (1,054) |
Net cash flows provided by (used in) financing activities | 95,658 | 131,747 | (724,427) |
Effect of exchange rate changes on unrestricted and restricted cash and cash equivalents | 430 | (84) | (424) |
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | (155,272) | 161,156 | (25,768) |
Unrestricted and restricted cash and cash equivalents at beginning of period | 612,087 | 450,931 | 476,699 |
Unrestricted and restricted cash and cash equivalents at end of period | 456,815 | 612,087 | 450,931 |
Reconciliation to Consolidated Balance Sheets: | |||
Cash and cash equivalents at end of period | 329,105 | 517,964 | 275,998 |
Restricted cash and cash equivalents | 127,710 | 94,123 | 174,933 |
Unrestricted and restricted cash and cash equivalents at end of period | $ 456,815 | $ 612,087 | $ 450,931 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2017 | |
ORGANIZATION [Abstract] | |
ORGANIZATION | 1. ORGANIZATION Fly Leasing Limited ("Fly") is a Bermuda exempted company that was incorporated on May 3, 2007, under the provisions of Section 14 of the Companies Act 1981 of Bermuda. Fly was formed to acquire, finance, lease and sell commercial jet aircraft directly or indirectly through its subsidiaries (Fly and its subsidiaries collectively, the "Company"). Although the Company is organized under the laws of Bermuda, it is a resident of Ireland for tax purposes and is subject to Irish corporation tax on its income in the same way, and to the same extent, as if the Company were organized under the laws of Ireland. In accordance with the Company’s amended and restated bye-laws, Fly issued 100 shares (“Manager Shares”) with a par value of $0.001 to Fly Leasing Management Co. Limited (the “Manager”) for no consideration. Subject to the provisions of the Company’s amended and restated bye-laws, the Manager Shares have the right to appoint the nearest whole number of directors to the Company which is not more than 3/7th of the number of directors comprising the board of directors. The Manager Shares are not entitled to receive any dividends, are not convertible into common shares and, except as provided for in the Company’s amended and restated bye-laws, have no voting rights. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PREPARATION Fly is a holding company that conducts its business through its subsidiaries. The Company directly or indirectly owns all of the common shares of its consolidated subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Fly and all of its subsidiaries. In instances where it is the primary beneficiary, Fly will consolidate a Variable Interest Entity (“VIE”). Fly is deemed the primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the economic performance of such VIE, and it bears the significant risk of loss and participates in gains of the VIE. All intercompany transactions and balances have been eliminated. The consolidated financial statements are stated in U.S. Dollars, which is the principal operating currency of the Company. The Company has one operating and reportable segment which is aircraft leasing. Certain amounts in prior period consolidated financial statements have been reclassified to conform to the current period presentation. In 2017, the Company adopted ASU 2016-15 and ASU 2016-18, Statement of Cash Flows (Topic 230) USE OF ESTIMATES The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The use of estimates is or could be a significant factor affecting the reported carrying values of flight equipment, deferred tax assets, liabilities and reserves. To the extent available, the Company utilizes industry specific resources, third-party appraisers and other materials to support management’s estimates, particularly with respect to flight equipment. Actual results could differ from those estimates. RISKS AND UNCERTAINTIES The Company encounters several types of risk during the course of its business, including credit and market risks. Credit risk addresses a lessee’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects the change in the value of derivatives and credit facilities due to changes in interest rate spreads or other market factors, including the value of collateral underlying the Company’s credit facilities. CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. RESTRICTED CASH AND CASH EQUIVALENTS The Company’s restricted cash and cash equivalents consist primarily of (i) security deposits and certain maintenance payments received from lessees under the terms of various lease agreements, (ii) a portion of rents collected which may be required to be held as cash collateral under certain of the Company’s debt facilities and (iii) other cash, which may be subject to withdrawal restrictions pursuant to the Company’s credit agreements. All restricted cash is held by major financial institutions in segregated accounts. RENT RECEIVABLES Rent receivables represent unpaid lessee obligations under existing lease contracts. Any allowance for doubtful accounts is established on a specific identification basis and is maintained at a level believed by management to be adequate to absorb probable losses associated with rent receivables. The assessment of credit risk is primarily based on the extent to which amounts outstanding exceed the value of security held, the financial strength and condition of a debtor and the current economic and regulatory conditions of the debtor’s operating environment. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows and consideration of current factors and economic trends impacting the lessees and their credit worthiness, all of which may be susceptible to significant change. Uncollectible rent receivables are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is recorded based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. As of December 31, 2017 and 2016, the Company had no allowance for doubtful accounts. In addition, the Company places a lessee on non-accrual status once it determines that it is no longer probable that the Company will receive the economic benefits of the lease. The Company recognizes revenue from a lessee on non-accrual status only as cash is received. INVESTMENT IN UNCONSOLIDATED SUBSIDIARY Fly has a 57.4% interest in Fly-Z/C Aircraft Holdings LP (“Fly-Z/C LP”). Fly accounts for its interest in the unconsolidated subsidiary using the equity method as the Company does not control the entity. Under the equity method, the Company’s investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated subsidiary’s undistributed earnings and losses, and distributions of dividends and capital. The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiary, or whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification. INVESTMENT IN FINANCE LEASE The Company has recorded one lease as an investment in finance lease. The investment in finance lease equals the sum of amounts to be received under the lease, plus the estimated residual value of the equipment at lease termination, less unearned income. Residual value reflects management’s estimate of the amounts to be received at lease termination from the re-lease or disposition of the leased equipment. Initial unearned income represents the amount by which the original sum of the lease receivable and the estimated residual value exceeds the original cost of the leased equipment. Unearned income is recognized as finance lease income over the lease term in a manner that produces a constant rate of return on the net investment in the lease based on an implicit interest rate. Initial direct costs and fees related to lease origination are deferred as part of the investment and amortized over the lease term. FLIGHT EQUIPMENT HELD FOR SALE Flight equipment is classified as held for sale when the Company commits to and commences a plan of sale that is reasonably expected to be completed within one year and satisfies certain other held for sale criteria. Flight equipment held for sale is recorded at the lesser of carrying value or fair value, less estimated cost to sell. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. An impairment loss is recorded for an asset or asset group held for sale when the carrying value of the asset or asset group exceeds its fair value, less estimated cost to sell. Aircraft classified as held for sale is not depreciated. Subsequent changes to the asset’s fair value are recorded as adjustments to the carrying value of the flight equipment. However, any such adjustment will not cause the asset’s fair value to exceed its original carrying value. FLIGHT EQUIPMENT HELD FOR OPERATING LEASE Flight equipment held for operating lease are recorded at cost and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of the original manufacturer’s estimated realized price for the flight equipment when new. Management may, at its discretion, make exceptions to this policy on a case by case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of residual values. Examples of such situations include, but are not limited to: ● Flight equipment where original manufacturer’s prices are not relevant due to plane modifications and conversions. ● Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence. ● The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture. ● Flight equipment that management believes will be disposed of prior to the end of its estimated useful life. Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, during each reporting period. Major aircraft improvements or lessee-specific modifications to the aircraft to be performed by the Company pursuant to any lease agreement are accounted for as lease incentives and amortized against revenue over the term of the lease, assuming no lease renewals. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination. Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the remaining life of the flight equipment. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. IMPAIRMENT OF FLIGHT EQUIPMENT The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company’s evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft, adverse changes in market conditions for specific aircraft types, third party appraisals of aircraft, published values for similar aircraft, any occurrence of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of the Company’s aircraft. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value. Future cash flows are assumed to occur under current market conditions and assume adequate time for a sale between a willing and able buyer and a willing seller. Expected future lease rates are based on all relevant information available, including the existing lease, current contracted rates for similar aircraft, appraisal data and industry trends. Residual value assumptions generally reflect an aircraft’s salvage value, except where more recent industry information indicates a different value is appropriate. Impairment analyses require the use of assumptions and estimates, including the level of future rents, the residual value of the flight equipment to be realized upon sale at some future date, estimated downtime between re-leasing events and the amount of re-leasing costs. MAINTENANCE RIGHTS The Company identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft with in-place leases. A maintenance right asset represents the fair value of its contractual right under a lease to receive an aircraft in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company’s obligation to pay the lessee for the difference between the lease end contractual maintenance condition of the aircraft at lease expiry and the actual maintenance condition of the aircraft on the acquisition date. The Company’s aircraft are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in its leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases). EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft into a specified maintenance condition. Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft is greater than the contractual return condition in the lease at lease expiry and the Company is required to pay the lessee in cash for the improved maintenance condition. When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company’s capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company’s capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with our policy with respect to major maintenance. When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement. MR Leases Under MR Leases, the lessee is required to make periodic maintenance payments to us based upon usage of the aircraft. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee. Maintenance right assets in MR Leases represent the right to receive an aircraft in an improved condition relative to the actual condition on the acquisition date. The aircraft is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives. Maintenance right assets, net will be recorded as a separate line item on the Company’s balance sheet. When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income, which is consistent with the Company’s existing policy; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded. There are no maintenance right liabilities for MR Leases. When flight equipment is sold, maintenance rights are released from the balance sheet as part of the disposition gain or loss. DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to manage its exposure to interest rate and foreign currency risks. All derivatives are recognized on the balance sheet at their fair values. Pursuant to U.S. GAAP, changes in the fair value of the item being hedged are recognized into earnings in the same period and in the same income statement line as the change in the fair value of the derivative instrument. On the date that the Company enters into a derivative contract, the Company formally documents all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for undertaking each hedge transaction. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability. Changes in the fair value of a derivative that is designated and qualifies as an effective cash flow hedge are recorded in accumulated other comprehensive income, net of tax, until earnings are affected by the variability of cash flows of the hedged item. Any derivative gains and losses that are not effective in hedging the variability of expected cash flows of the hedged item or that do not qualify for hedge accounting treatment are recognized directly into income. At the hedge’s inception and at least every reporting period thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair market value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction. OTHER ASSETS Other assets consist primarily of unamortized lease premiums, initial direct lease costs and other miscellaneous receivables. Lease premiums are amortized into operating lease income over the lease term. SECURITY DEPOSITS In the normal course of leasing aircraft to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease. MAINTENANCE PAYMENT LIABILITY The Company’s flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly’s operating leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration and airworthiness directives. Under the terms of the lease agreements, cash collected from lessees for future maintenance of the aircraft is recorded as maintenance payment liabilities. The Company does not recognize such maintenance payments as revenue during the lease term. Maintenance payment liabilities are attributable to specific aircraft and are typically based on hours or cycles of utilization, depending upon the component. Upon the occurrence of qualified maintenance events, the lessee submits a request for reimbursement and upon disbursement of the funds, the liability is relieved. The lessor may be obligated to contribute to maintenance related expenses on an aircraft during the term of the lease. In other instances, the lessee or lessor may be obligated to make a payment to the other party at lease termination based on a computation stipulated in the lease agreement. The calculation is based on utilization and condition of the airframe, engines and other major life-limited components as determined at lease termination. The Company may also incur maintenance expenses on off-lease aircraft. Scheduled major maintenance or overhaul activities and costs for certain high-value components that are paid by the Company are capitalized and depreciated over the period until the next overhaul is required. Payments made by the Company for minor maintenance, repairs and re-leasing of aircraft are expensed as incurred. At lease termination, maintenance payment liabilities are offset against any maintenance right balance for the aircraft, and the remainder is recognized as end of lease income. When flight equipment is sold, the maintenance payment liability amounts may be remitted to the buyer in accordance with the terms of the related agreements and are released from the balance sheet as part of the disposition gain or loss. REVENUE RECOGNITION Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Where revenue amounts do not meet these recognition criteria, recognition is delayed until the criteria are met. ● Operating lease revenue. ● End of lease income. ● Lease incentives. ● Finance lease income. SHARE-BASED COMPENSATION The Company has a 2010 Omnibus Incentive Plan (“2010 Plan”) permitting the issuance of up to 1,500,000 share grants in the form of (i) stock appreciation rights (“SARs”); (ii) restricted stock units (“RSUs”); (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. Compensation expense associated with grants to employees were valued at the grant date and amortized on a straight-line basis over the service period. Grants to non-employees were initially measured at grant date, and then re-measured at each interim reporting period until the awards vested. Determining the appropriate fair value model and calculation of the fair value of stock-based awards required judgment, including estimating stock price volatility, forfeitures and expected grant life. INCOME TAXES The Company provides for income taxes by tax jurisdiction. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statements and tax basis of existing assets and liabilities at the enacted tax rates expected to apply when the assets are recovered or liabilities are settled. A valuation allowance is used to reduce deferred tax assets to the amount that management ultimately expects to be more-likely-than-not realized. The Company recognizes an uncertain tax benefit only to the extent that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The Company has elected to classify any interest on unpaid income taxes and penalties as a component of the provision for income taxes. No interest on unpaid income taxes and penalties were incurred during each of the years ended December 31, 2017, 2016 and 2015. NEW ACCOUNTING PRONOUNCEMENTS In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). In February 2016, FASB issued its new lease guidance, ASU 2016-02, Leases (Topic 842) In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) In October 2016, FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815). |
SUPPLEMENTAL DISCLOSURE TO CONS
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended |
Dec. 31, 2017 | |
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | |
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS | 3. SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended 2017 2016 2015 (Dollars in thousands) Cash paid during the year for: Interest $ 113,710 $ 110,351 $ 132,780 Taxes 2,155 460 384 Noncash Activities: Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance 2,045 — 3,292 Maintenance payment liability applied to rent receivables and rentals received in advance 68 — 2,523 Other liabilities applied to maintenance payment liability and rent receivables 676 2,550 240 Noncash investing activities: Aircraft improvement 192 5,245 1,587 Noncash activities in connection with purchase of aircraft 3,979 6,388 19,382 Noncash activities in connection with sale of aircraft — 78,722 93,819 |
INVESTMENT IN FINANCE LEASE
INVESTMENT IN FINANCE LEASE | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
INVESTMENT IN FINANCE LEASE | 4. INVESTMENT IN FINANCE LEASE At , the Company had one investment in finance lease As a result of this reclassification, the Company recognized a uring the year ended The Company’s net investment in finance lease consisted of the following (dollars in thousands): December 31, 2017 December 31, 2016 Total minimum lease payments receivable $ 13,200 $ 15,080 Estimated unguaranteed residual value of leased asset 4,227 4,227 Unearned finance income (3,481 ) (4,212 ) Net Investment in Finance Lease $ 13,946 $ 15,095 During the year ended Presented below are the contracted future minimum rental payments due under non-cancellable finance lease, as of December 31, 2017. Year ending December 31, (Dollars in thousands) 2018 $ 1,800 2019 1,800 2020 1,800 2021 1,800 2022 1,800 Thereafter 4,200 Future minimum rental payments under finance lease $ 13,200 |
FLIGHT EQUIPMENT HELD FOR SALE
FLIGHT EQUIPMENT HELD FOR SALE | 12 Months Ended |
Dec. 31, 2017 | |
FLIGHT EQUIPMENT HELD FOR SALE [Abstract] | |
FLIGHT EQUIPMENT HELD FOR SALE | 5. FLIGHT EQUIPMENT HELD FOR SALE In 2015, the Company agreed to sell 45 aircraft in two portfolio sales (the “Sale Transactions”). The Company delivered 32 of these aircraft to the purchasers and recognized a gain on sale of aircraft of $33.0 million in 2015. The Company delivered the remaining 13 aircraft and recognized a gain on sale of aircraft of $5.0 million in 2016. During the third quarter of 2017, the Company reclassified one aircraft to held for sale as the lessee of this narrow-body aircraft notified the Company of its election to purchase this aircraft. This aircraft was sold for a gain on sale of aircraft of $3.9 million in the fourth quarter of 2017. At December 31, 2017 and 2016, the Company had no flight equipment held for sale. |
FLIGHT EQUIPMENT HELD FOR OPERA
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE | 12 Months Ended |
Dec. 31, 2017 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE | 6. FLIGHT EQUIPMENT HELD FOR OPERATING LEASE As of , the Company had aircraft held for operating lease, of which aircraft were on lease to lessees in countries, and aircraft were off-lease. During the year ended December 31, 2017, the Company purchased ten aircraft held for operating lease, and capitalized lion. During the year ended December 31 , the Company purchas . Other than the one aircraft re-classified as flight equipment held for sale (see Note 5), the Company during the year ended December 31, 2017. December 31 During the year ended December 31, 2015, the Company sold 12 aircraft held for operating lease and recognized a loss on sale of aircraft of illion. In 2017, the Company had two aircraft on lease to Air Berlin, including one Airbus A321-200 aircraft (manufactured in 2015) and one Airbus A330-200 aircraft (manufactured in 2001). In August 2017, Air Berlin commenced insolvency proceedings in Germany and the United States. As a result of these insolvency proceedings, the Company assessed both aircraft leased to Air Berlin for impairment. During the year ended December 31, 2017, the Company recognized aircraft impairment of $22.0 million related to the Airbus A330-200 aircraft. The lease was terminated, and this aircraft was returned to the Company and redelivered to another airline in January 2018. The Company did not recognize aircraft impairment on the Airbus A321-200 aircraft. During the year ended December 31, 2016, the Company recognized aircraft impairment of $96.1 million related to one narrow-body aircraft and three wide-body aircraft. The Company sold the narrow-body aircraft in the third quarter of 2016, with proceeds paid to the lender in full satisfaction of the associated debt. During the year ended December 31, 2015, the Company recognized aircraft impairment of $66.1 million. The impairment charge related to three wide-body aircraft nearing the end of their economic lives and 11 narrow-body aircraft, ten of which were sold in 2015 and 2016. Flight equipment held for operating lease consists of the following (dollars in thousands): December 31, 2017 December 31, 2016 Cost $ 3,574,202 $ 3,180,160 Accumulated depreciation (612,458 ) (486,339 ) Flight equipment held for operating lease, net $ 2,961,744 $ 2,693,821 The Company capitalized and $ million of major maintenance expenditures for the years ended respectively The classification of the net book value of flight equipment held for operating lease, net and operating lease revenue by geographic region in the tables and discussion below is based on the principal operating location of the lessees. The distribution of the net book value of flight equipment held for operating lease by geographic region is as follows (dollars in thousands): December 31, 2017 December 31, 2016 Europe: Spain $ 175,593 6 % $ 57,845 2 % Turkey 135,764 5 % 142,787 5 % United Kingdom 128,116 4 % 143,560 5 % Germany — — 98,483 4 % Russia 16,332 — 17,582 1 % Other 235,013 8 % 179,155 7 % Europe — Total 690,818 23 % 639,412 24 % Asia and South Pacific: India 601,072 20 % 574,853 21 % Philippines 268,504 9 % 279,031 10 % Indonesia 204,840 7 % 62,921 2 % China 186,083 6 % 194,774 7 % Other 152,371 5 % 153,323 7 % Asia and South Pacific — Total 1,412,870 47 % 1,264,902 47 % Mexico, South and Central America: Chile 83,097 3 % 86,251 3 % Other 79,177 3 % 83,368 3 % Mexico, South and Central America — Total 162,274 6 % 169,619 6 % North America: United States 147,580 5 % 156,472 6 % Other 52,182 2 % 55,044 2 % North America — Total 199,762 7 % 211,516 8 % Middle East and Africa: Ethiopia 322,896 11 % 332,817 12 % Other 116,273 4 % 75,555 3 % Middle East and Africa — Total 439,169 15 % 408,372 15 % Off-Lease — Total 56,851 2 % — — Total flight equipment held for operating lease, net $ 2,961,744 100 % $ 2,693,821 100 % The distribution of operating lease revenue by geographic region for the years ended December 31, 2017, 2016 and 2015 is as follows (dollars in thousands): Years ended 2017 2016 2015 Europe: Spain $ 11,199 3 % $ 5,361 2 % $ 9,191 2 % Turkey 17,103 5 % 24,593 8 % 29,847 7 % United Kingdom 29,182 8 % 34,498 11 % 50,742 12 % Germany 26,457 8 % 13,836 4 % 18,201 4 % Russia 1,927 1 % 3,141 1 % 24,095 6 % Other 27,253 8 % 25,253 8 % 46,480 11 % Europe — Total 113,121 33 % 106,682 34 % 178,556 42 % Asia and South Pacific: India 64,381 18 % 39,640 13 % 19,572 4 % Philippines 29,825 9 % 29,129 9 % 38,677 9 % Indonesia 16,308 5 % 8,320 3 % 7,915 2 % China 22,611 6 % 23,882 8 % 37,943 9 % Other 19,263 6 % 18,967 5 % 31,141 7 % Asia and South Pacific — Total 152,388 44 % 119,938 38 % 135,248 31 % Mexico, South and Central America: Chile 8,939 3 % 8,939 3 % 24,336 6 % Other 8,626 2 % 8,768 3 % 16,732 4 % Mexico, South and Central America — Total 17,565 5 % 17,707 6 % 41,068 10 % North America: United States 17,647 5 % 24,591 8 % 37,316 9 % Other 6,237 2 % 6,223 2 % 6,380 1 % North America — Total 23,884 7 % 30,814 10 % 43,696 10 % Middle East and Africa: Ethiopia 30,018 9 % 30,084 10 % 22,808 5 % Other 9,918 2 % 8,357 2 % 8,315 2 % Middle East and Africa — Total 39,936 11 % 38,441 12 % 31,123 7 % Total Operating Lease Revenue $ 346,894 100 % $ 313,582 100 % $ 429,691 100 % For the year ended December 31, 2017, the Company had one customer (Air India) that accounted for 11% of total operating lease revenue. The Company places a lessee on non-accrual status when it has determined that it is not probable that the economic benefits of the lease will be received by the Company, principally due to (i) the lessees' failure to pay rent and overhaul payments and (ii) the Company’s evaluation of the lessees' payment history. Following the Air Berlin insolvency proceedings in August 2017, the Company had placed Air Berlin on non-accrual status and recognized revenue from the two aircraft leased to Air Berlin only as cash was received, including the application of any security deposits and letters of credit. Air Berlin returned both aircraft to the Company and the Company recognized $16.6 million of end of lease income from this lessee during the fourth quarter of 2017. At December 31, 2017 and 2016, no lessees were on non-accrual status. At December 31, 2015, the Company had two lessees on non-accrual status. For the years ended December 31, 2017, 2016 and 2015, the Company recognized end of lease income totaling $17.8 million, $8.9 million and $53.8 million, respectively. As of December 31, 2017 and 2016, the weighted average remaining lease term of the Company’s aircraft held for operating lease was 6.3 years and 6.8 years, respectively. Presented below are the contracted future minimum rental payments due under non-cancellable operating leases, as of December 31, 2017. For leases that have floating rental rates, the future minimum rental payments due assume that the rental payment due as of December 31, 2017 is held constant for the duration of the lease. Year ending December 31, (Dollars in thousands) 2018 $ 355,172 2019 320,670 2020 280,506 2021 245,208 2022 209,542 Thereafter 734,445 Future minimum rental payments under operating leases $ 2,145,543 For the years ended December 31, 2017, 2016 and 2015, amortization of lease incentives recorded as a reduction of operating lease revenue totaled $7.7 million, $8.9 million and $20.5 million, respectively. At December 31, 2017, lease incentive amortization for the next five years and thereafter is as follows (dollars in thousands): Year ending December 31, 2018 $ 9,137 2019 8,449 2020 5,849 2021 3,594 2022 2,218 Thereafter 1,044 Future amortization of lease incentives $ 30,291 |
MAINTENANCE RIGHTS
MAINTENANCE RIGHTS | 12 Months Ended |
Dec. 31, 2017 | |
MAINTENANCE RIGHTS [Abstract] | |
MAINTENANCE RIGHTS | 7. MAINTENANCE RIGHTS Changes in maintenance right assets, net of maintenance right liabilities, during the years ended December 31, 2017 and 2016 were as follows (dollars in thousands) : December 31, 2017 December 31, 2016 Maintenance rights, net beginning balance $ 101,969 $ 94,493 Acquisitions 25,033 28,412 Capitalized to aircraft improvements (192 ) (5,245 ) Maintenance rights recognized into earnings (465 ) — Cash receipts from maintenance rights — (9,513 ) Maintenance rights associated with aircraft sold 4,954 (6,178 ) Maintenance rights, net at end of year $ 131,299 $ 101,969 |
INVESTMENT IN UNCONSOLIDATED SU
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY [Abstract] | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | 8. INVESTMENT IN UNCONSOLIDATED SUBSIDIARY The Company has a 57.4% limited partnership interest in Fly-Z/C LP. Summit Aviation Partners LLC (“Summit”) has a 10.2% interest in the joint venture. A subsidiary of BBAM Limited Partnership (“BBAM LP”) is the general partner of the joint venture. The joint venture owns two aircraft. For each of the years ended December 31, 2017 and 2016, the Company recognized $0.5 million in equity earnings from its investment in Fly-Z/C LP. For the year ended December 31, 2015, the Company recognized $1.2 million in equity earnings from its investment in Fly-Z/C LP. During the year ended December 31, 2015, the Company contributed $2.0 million into Fly-Z/C LP. During the years ended December 31, 2017, 2016 and 2015, respectively, the Company received no distributions. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
OTHER ASSETS [Abstract] | |
OTHER ASSETS | 9. OTHER ASSETS The principal components of the Company’s other assets are as follows (dollars in thousands): December 31, 2017 December 31, 2016 Lease costs, net $ 2,045 $ 1,730 Value added tax and general sales tax receivables, net 2,915 2,994 Other assets 4,010 1,844 Total other assets $ 8,970 $ 6,568 |
UNSECURED BORROWINGS
UNSECURED BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
UNSECURED BORROWINGS [Abstract] | |
UNSECURED BORROWINGS | 10. UNSECURED BORROWINGS Balance as of December 31, 2017 December 31, 2016 (Dollars in thousands) Outstanding principal balance: 2020 Notes $ — $ 375,000 2021 Notes 325,000 325,000 2024 Notes 300,000 — Total outstanding principal balance 625,000 700,000 Unamortized debt discounts and loan costs (9,078 ) (8,610 ) Unsecured borrowings, net $ 615,922 $ 691,390 On December 11, 2013, the Company sold $300.0 million aggregate principal amount of unsecured 6.75% Senior Notes due 2020 (together with the Additional 2020 Notes (as defined below), the “2020 Notes”). In connection with the issuance, the Company paid an underwriting discount totaling $8.5 million. On October 3, 2014, the Company sold $75.0 million aggregate principal amount of unsecured 6.75% Senior Notes due 2020 (the “Additional 2020 Notes”) and $325.0 million aggregate principal amount of 6.375% Senior Notes due 2021 (the “2021 Notes”). The Additional 2020 Notes were issued as additional notes under the 2020 Notes indenture and were sold at a price equal to 104.75% of the principal amount thereof. The 2021 Notes were issued under an indenture containing substantially similar terms as the indenture governing the 2020 Notes and were sold at par. In connection with these issuances, the Company paid a net underwriting discount totaling $3.4 million. On October 16, 2017, the Company sold $300.0 million aggregate principal amount of unsecured 5.250% Senior Notes due 2024 (the “2024 Notes”). The net proceeds to the Company were approximately $294.2 million, after deducting the underwriters’ discounts and commissions and offering expenses paid by the Company. The Company used the net proceeds from the sale of the 2024 Notes, together with cash on hand, to redeem all $375.0 million of its outstanding 2020 Notes on December 15, 2017. In connection with the redemption, the Company incurred debt extinguishment costs totaling $19.7 million. The 2021 Notes and 2024 Notes are senior unsecured obligations of the Company and rank pari passu Interest on the 2021 Notes is payable semi-annually on April 15 and October 15 of each year. Interest on the 2024 Notes is payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2018. As of December 31, 2017 and 2016, accrued interest on unsecured borrowings totaled $7.7 million and $5.5 million, respectively. 2021 Notes The Company may redeem the 2021 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date. If redeemed during the 12-month period commencing on October 15 of the years set forth below Redemption Price 2017 104.781 % 2018 103.188 % 2019 101.594 % 2020 and thereafter 100.000 % 2024 Notes At any time prior to October 15, 2020, the Company may redeem up to 35% of the original principal amount of the 2024 Notes with the proceeds of certain equity offerings at a redemption price of 105.250% of the principal amount thereof, together with accrued and unpaid interest to, but not including, the date of redemption. On and after October 15, 2020, the Company may redeem the 2024 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date. If redeemed during the 12-month period commencing on October 15 of the years set forth below Redemption Price 2020 102.625 % 2021 101.313 % 2022 and thereafter 100.000 % At any time prior to October 15, 2020, the Company may also redeem all or a portion of the 2024 Notes at par, plus accrued and unpaid interest to the redemption date and a “make-whole premium” equal to the present value of all future interest payments called for under the indenture. Pursuant to the indentures governing the 2021 Notes and 2024 Notes, the Company is subject to restrictive covenants which relate to dividend payments, incurrence of debt and issuance of guarantees, incurrence of liens, repurchases of common shares, investments, disposition of aircraft, consolidation, merger or sale of the Company and transactions with affiliates. The Company is also subject to certain operating covenants, including reporting requirements. The Company’s failure to comply with any of the covenants under the indentures governing the 2021 Notes or 2024 Notes could result in an event of default which, if not cured or waived, may result in the acceleration of the indebtedness thereunder and other indebtedness containing cross-default or cross-acceleration provisions. Certain of these covenants will be suspended if the 2021 Notes or 2024 Notes obtain an investment grade rating. The indentures governing the 2021 Notes and the 2024 Notes contain customary events of default with respect to the notes of each series, including (i) default in payment when due and payable of principal or premium, (ii) default for 30 days or more in payment when due of interest, (iii) failure by the Company or any restricted subsidiary for 60 days after receipt of written notice given by the trustee or the holders of at least 25% in aggregate principal amount of the notes of such series then issued and outstanding to comply with any of the other agreements under the indenture, (iv) default in any of the aircraft owning entities in respect of obligations in excess of $50.0 million, which holders of such obligation accelerate or demand repayment of amounts due thereunder, (v) failure by the Company or any significant subsidiary to pay final judgments aggregating in excess of $50.0 million for 60 days after such judgment becomes final, subject to certain non-recourse exceptions, and (vi) certain events of bankruptcy or insolvency with respect to us or a significant subsidiary. As of December 31, 2017, the Company was not in default under the indentures governing the 2021 Notes or the 2024 Notes. |
SECURED BORROWINGS
SECURED BORROWINGS | 12 Months Ended |
Dec. 31, 2017 | |
SECURED BORROWINGS [Abstract] | |
SECURED BORROWINGS | 11. SECURED BORROWINGS The Company’s secured borrowings balance, net as of December 31, 2017 and 2016 are presented below (dollars in thousands): Outstanding principal balance as of December 31, Weighted average interest rate (1) December 31, 2017 2016 2017 2016 Maturity date Securitization Notes $ 101,551 $ 139,741 3.06 % 3.36 % November 2033 Nord LB Facility 153,176 171,509 4.47 % 4.14 % November 2018 CBA Facility 49,080 56,146 5.53 % 5.45 % October 2020 Term Loan 431,271 404,016 4.25 % 4.41 % February 2023 Magellan Acquisition Limited Facility 331,768 — 3.15 % — December 2025 Fly Acquisition III Facility 86,520 113,045 3.41 % 2.88 % February 2022 Other Aircraft Secured Borrowings 905,525 980,967 3.83 % 3.50 % September 2019 – June 2028 Unamortized debt discounts and loan costs (29,216 ) (33,439 ) Total $ 2,029,675 $ 1,831,985 (1) Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. The Company is subject to restrictive covenants under its secured borrowings which relate to the incurrence of debt, issuance of guarantees, incurrence of liens or other encumbrances, the acquisition, substitution, disposition and re-lease of aircraft, maintenance, registration and insurance of its aircraft, restrictions on modification of aircraft and capital expenditures, and requirements to maintain concentration limits. The Company’s loan agreements include events of default that are customary for these types of secured borrowings. The Company’s failure to comply with any restrictive covenants, or any other operating covenants, may trigger an event of default under the relevant loan agreement. In addition, certain of the Company’s loan agreements contain cross-default provisions that could be triggered by a default under another loan agreement. As of December 31, 2017 and 2016, accrued interest on secured borrowings totaled $6.6 million and $5.2 million, respectively. As of December 31, 2017, the Company was not in default under any of its secured borrowings. Securitization Notes At December 31, 2017, Fly's subsidiary, B&B Air Funding, had $101.6 million principal amount outstanding on its aircraft lease-backed Class G-1 notes (the “Securitization Notes”), which were secured by nine aircraft. The final maturity date of the Securitization Notes is November 14, 2033. The Securitization Notes bear interest at an adjustable interest rate equal to the current one-month LIBOR plus 0.77%. Interest expense also includes amounts payable to the provider of a financial guaranty insurance policy and the liquidity facility provider thereunder, as well as accretion on the Securitization Notes re-issued at a discount. Interest and any principal payments due are payable monthly. All cash collected, including sale proceeds from the aircraft financed by the Securitization Notes, is applied to service the outstanding balance of the Securitization Notes, after the payment of certain expenses and other costs, including interest, interest rate swap payments, and the fees to the policy provider in accordance with those agreements. B&B Air Funding may, on any future payment date, redeem the Securitization Notes in whole or from time to time in part for an amount equal to 100% of the outstanding principal amount, together with accrued and unpaid interest to, but excluding, the date fixed for redemption. Redemption prior to acceleration of the Securitization Notes may be of all or any part of the Securitization Notes. Redemption after acceleration of the Securitization Notes upon default may only be for all of the Securitization Notes. The Securitization Notes are secured by (i) first priority, perfected security interests in and pledges or assignments of equity ownership and beneficial interests in the subsidiaries of B&B Air Funding; (ii) interests in the leases of the associated aircraft; (iii) cash held by the subsidiaries of B&B Air Funding; and (iv) rights under agreements with BBAM, the initial liquidity facility provider, hedge counterparties and the policy provider. Rentals paid under leases are placed in the collections account and paid out according to a priority of payments set forth in the indenture. The Securitization Notes are also secured by a lien or similar interest in any of the aircraft B&B Air Funding currently owns that are registered in the United States or Ireland. B&B Air Funding may not encumber the aircraft it currently owns or incur additional indebtedness except as permitted under the securitization-related documents. B&B Air Funding is subject to operating covenants which relate to, among other things, its operations, disposition of aircraft, lease concentration limits, and restrictions on the modification of aircraft and capital expenditures. A breach of the covenants could result in the acceleration of the Securitization Notes and exercise of remedies available in relation to the collateral, including the sale of aircraft at public or private sale. In connection with the issuance of the Securitization Notes, B&B Air Funding entered into a revolving credit facility (“Securitization Note Liquidity Facility”) that provides additional liquidity of up to $60.0 million. Subject to the terms and conditions of the Securitization Note Liquidity Facility, advances may be drawn for the benefit of the Securitization Note holders to cover certain expenses of B&B Air Funding, including maintenance expenses, interest rate swap payments and interest on the Securitization Notes. Advances shall bear interest at one-month LIBOR plus a spread of 1.20%. A commitment fee of 0.40% per annum is due and payable on each payment date based on the unused portion of the Securitization Note Liquidity Facility. As of each of December 31, 2017 and 2016, B&B Air Funding had not drawn on the Securitization Note Liquidity Facility. The financial guaranty insurance policy (the “Policy”) issued by the Policy Provider supports the payment of interest due on the Notes and the payment of the outstanding principal balance of the Securitization Notes on the final maturity date and, under certain circumstances, prior thereto. A downgrade of the policy provider’s credit rating or its failure to meet its obligations under the Policy will not have a direct impact on B&B Air Funding’s obligations or rights under the Securitization Notes. Nord LB Facility As of December 31, 2017, the Company had $153.2 million principal amount outstanding under its debt facility with Norddeutsche Landesbank Gironzentrale (the “Nord LB Facility”), which was secured by six aircraft. The Nord LB Facility is structured with loans secured by each aircraft individually. The loans are cross-collateralized and contain cross-default provisions. Borrowings are secured by Fly’s equity interests in the aircraft owning and leasing subsidiaries, the related leases, and certain deposits. The loans under the Nord LB Facility bear interest at one-month LIBOR plus 3.30% until the final maturity date of November 14, 2018. Under the terms of the Nord LB Facility, the Company applies 95% of lease rentals collected towards interest and principal. If no lease rental payments are collected in the applicable period for any financed aircraft, then no payment is due under the loan associated with that aircraft during such period. Any unpaid interest increases the principal amount of the associated loan. In the event the Company sells any of the financed aircraft, substantially all sale proceeds (after payment of certain expenses) must first be used to repay the debt associated with such aircraft and then to repay the outstanding amounts which finance the remaining aircraft. In addition, any maintenance reserve amounts retained by the Company will be used to prepay the Nord LB Facility, provided such reserves are not required for future maintenance of such aircraft. Upon termination or expiration of a lease other than by sale, no payments are due with respect to the outstanding loan associated with that aircraft until the earlier of (i) six months from such termination or expiration and (ii) the date on which the aircraft is re-leased. Interest during this period increases the outstanding balance under the facility. The Company must pay interest with respect to any aircraft that remains off-lease after six months, and if such aircraft continues to be off-lease after twelve months, the Company must pay debt service equal to 85% of the lease rate under the prior lease agreement. The lenders may require payment in full or foreclose on an aircraft that remains off-lease after 24 months but may not foreclose on any other aircraft in the facility. If the Company earns a 10% return on its equity investment after full repayment of the facility, the Company will pay Nord LB a fee equal to 10% of returns in excess of 10%, up to a maximum of $5.0 million. An event of default with respect to the loan on any aircraft will trigger an event of default on the loans with respect to every other financed aircraft. A default by any of the aircraft owning entities in respect of obligations in excess of $10.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder would constitute an event of default. CBA Facility As of December 31, 2017, the Company had $49.1 million principal amount outstanding under its debt facility with Commonwealth Bank of Australia and CommBank Europe Limited (the “CBA Facility”), which was secured by four aircraft. Fly has guaranteed all payments under the CBA Facility. These loans are cross-collateralized and contain cross-default provisions. The final maturity date of each of the four loans is October 28, 2020. The Company makes scheduled monthly payments of principal and interest on each loan in accordance with a fixed amortization schedule. If, upon the repayment of any loan, the ratio of the remaining principal amount outstanding under the CBA Facility to the aggregate appraised value of the financed aircraft is equal to or greater than 80%, the Company will be required to pay cash collateral in an amount sufficient to reduce this ratio to less than 80%. Borrowings under the CBA Facility accrue interest at a fixed interest rate. The CBA Facility includes certain operating covenants, including reporting requirements. A breach of the covenants could result in the acceleration of outstanding indebtedness under the CBA Facility, and exercise of remedies available in relation to the collateral. Term Loan As of December 31, 2017, the Company had $431.3 million principal amount outstanding under its senior secured term loan (the “Term Loan”), which was secured by 30 aircraft. Fly has guaranteed all payments under the Term Loan. The Term Loan bears interest at three-month LIBOR, plus a margin of 2.00%. On October 19, 2016, the Company amended the Term Loan to extend the maturity date from August 2019 to February 2022. In connection with this amendment, the Company paid a one-time fee of 0.25% on the then outstanding principal amount under the Term Loan to its lenders. The Company also expensed $2.3 million as debt extinguishment costs. On April 28, 2017, the Company completed an amendment of the Term Loan to (i) reduce the margin from 2.75% to 2.25%, (ii) eliminate the LIBOR floor of 0.75% and (iii) extend the maturity date from February 2022 to February 2023. The Company also upsized the Term Loan by $50.0 million. On November 1, 2017, the Company completed another amendment of the Term Loan to further reduce the margin from 2.25% to 2.00%. Until May 2018, the Term Loan can be prepaid in whole or in part for an amount equal to 101% of the outstanding principal amount being repaid. Thereafter, the Term Loan can be prepaid in whole or in part at par. During the year ended December 31, 2017, the Company incurred debt extinguishment costs totaling $3.0 million in connection with these amendments. The Term Loan requires that the Company maintain a maximum loan-to-value ratio of 70.0% based on the lower of the mean or median of half-life adjusted base values of the financed aircraft as determined by three independent appraisers. The Term Loan contains certain concentration limits with respect to types of aircraft which can be financed in the Term Loan, as well as geographic and single lessee concentration limits. These concentration limits apply upon the acquisition, sale, removal or substitution of an aircraft. The Term Loan also includes certain customary covenants, including reporting requirements and maintenance of credit ratings. An event of default under the Term Loan includes any of the aircraft owning entities defaulting in respect of obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder. Magellan Acquisition Limited Facility On December 8, 2017, the Company, through a wholly-owned subsidiary, entered into a term loan facility with a consortium of lenders ("Magellan Acquisition Limited Facility") that provides for loans and notes in an aggregate amount of $331.8 million with a final maturity date of December 8, 2025. The Company paid an upfront fee of approximately $3.0 million to the lenders concurrent with the closing. As of December 31, 2017, the Company received an aggregate of $273.7 million to finance seven aircraft, and the remaining $58.1 million was held in an escrow account to be used to finance two additional aircraft, which were subsequently financed in the first quarter of 2018. The Magellan Acquisition Limited Facility is secured by nine aircraft with an initial loan-to-value ratio of less than 75%. Fly has guaranteed all payments under this facility. The interest rate on the loans is based on one-month LIBOR plus an applicable margin of 1.65% per annum. The interest rate on the notes issued under the facility is a fixed rate of 3.93% per annum. The facility contains financial and operating covenants, including a covenant that the Company maintain a tangible net worth of at least $325.0 million, as well as customary reporting requirements. A violation of any of these covenants could result in a default under the Magellan Acquisition Limited Facility. In addition, upon the occurrence of certain conditions including a failure by the Company to maintain a minimum liquidity of at least $25.0 million, the borrower will be required to deposit certain amounts of maintenance reserves and security deposits received into accounts pledged to the security trustee. Upon the sale of an aircraft, the borrower may substitute aircraft into the Magellan Acquisition Limited Facility subject to certain conditions. The substitute aircraft must be equal to or greater than the appraised value of the aircraft being substituted. The borrower must be in compliance with the concentration limits after such substitution. An event of default under the Magellan Acquisition Limited Facility includes a default in respect of the Company's recourse obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder. Fly Acquisition III Facility In February 2016, the Company, through a wholly-owned subsidiary, entered into a revolving $385.0 million credit facility (the “Fly Acquisition III Facility”) to finance the acquisition of eligible aircraft. Borrowings are secured by the beneficial interests in Fly Acquisition III and each of its subsidiaries, the aircraft and related leases. The Fly Acquisition III Facility has an availability period expiring on February 26, 2019 and a maturity date of February 26, 2022. Fly has guaranteed Fly Acquisition III’s obligations under the facility. As of December 31, 2017, the Company had $86.5 million principal amount outstanding, which was secured by four aircraft. The Company pays a commitment fee of 0.50% per annum on a monthly basis to each lender on the undrawn amount of its commitment until the termination of the availability period; provided that at any time from and after March 26, 2017 through the end of the availability period, the commitment fee will increase to 0.75% per annum if at least 50% of the total amount of commitments have not been drawn. The interest rate under the facility is based on one-month LIBOR plus an applicable margin. The applicable margin is 2.00% through the expiration of the availability period and will increase to 2.50% from February 27, 2019 through February 26, 2020 and 3.00% from February 27, 2020 through the maturity date of the facility. The Fly Acquisition III Facility contains financial and operating covenants, including a covenant that the Company maintain a tangible net worth of at least $325.0 million and a specified interest coverage ratio, as well as customary reporting requirements. Violation of any of these covenants could result in an event of default under the facility. Also, upon the occurrence of certain conditions, including a failure by the Company to maintain a minimum liquidity of at least $25.0 million, Fly Acquisition III will be required to deposit maintenance reserves and security deposits received from lessees into accounts pledged to the security trustee. An event of default under the Fly Acquisition III Facility includes a default in respect of the Company's recourse obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder. Other Aircraft Secured Borrowings The Company has entered into other aircraft secured borrowings to finance the acquisition of aircraft, one of which is denominated in Euros. As of December 31, 2017, the Company had $905.5 million principal amount of other aircraft secured borrowings outstanding, which was secured by 19 aircraft. Of this amount, $473.6 million was recourse to the Company. These borrowings are structured as individual loans secured by pledges of the Company’s rights, title and interests in the financed aircraft and leases. In addition, Fly may provide guarantees of its subsidiaries’ obligations under certain of these loans and may be subject to financial and operating covenants in connection therewith. The maturity dates of these loans range from September 2019 to June 2028. Future Minimum Principal Payments on Secured Borrowings During the year ended December 31, 2017, the Company made scheduled principal payments of $154.3 million on its secured borrowings. The anticipated future minimum principal payments due for its secured borrowings are as follows (dollars in thousands): Year ending December 31, 2018 $ 309,914 2019 169,230 2020 187,184 2021 152,497 2022 174,436 Thereafter 1,065,630 Future minimum principal payments due $ 2,058,891 |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVES [Abstract] | |
DERIVATIVES | 12. DERIVATIVES Derivatives are used by the Company to manage its exposure to interest rate fluctuations. The Company uses interest rate swap contracts to hedge variable interest payments due on borrowings associated with aircraft with fixed rate rentals. As of December 31, 2017, the Company had $1.1 billion of floating rate debt associated with aircraft with fixed rate rentals. Interest rate swap contracts allow the Company to pay fixed interest rates and receive variable interest rates with the swap counterparty based on either the one-month or three-month LIBOR applied to the notional amounts over the life of the contracts. As of December 31, 2017 and 2016, the Company had interest rate swap contracts with notional amounts aggregating $0.7 billion and $0.8 billion, respectively. The unrealized fair value gain on the interest rate swap contracts, reflected as derivative assets, was $2.6 million and $1.9 million as of December 31, 2017 and 2016, respectively. The unrealized fair value loss on the interest rate swap contracts, reflected as derivative liabilities, was $7.3 million and $13.3 million as of December 31, 2017 and 2016, respectively. The Company determines the fair value of derivative instruments using a discounted cash flow model. The model incorporates an assessment of the risk of non-performance by the swap counterparty in valuing derivative assets and an evaluation of the Company’s credit risk in valuing derivative liabilities. The Company considers in its assessment of non-performance risk, if applicable, netting arrangements under master netting agreements, any collateral requirement, and the derivative payment priority in the Company’s debt agreements. The valuation model uses various inputs including contractual terms, interest rate curves and credit spreads. Designated Derivatives Certain of the Company’s interest rate derivatives have been designated as cash flow hedges. The effective portion of changes in fair value of these derivatives are recorded as a component of accumulated other comprehensive income, net of a provision for income taxes. Changes in the fair value of these derivatives are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. As of December 31, 2017, the Company had the following designated derivative instruments classified as derivative assets on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Credit Risk Adjusted Fair Market Value Gain Recognized in Accumulated Comprehensive Loss Loss Recognized into Earnings Interest rate swap contracts 9 11/14/2018-1/11/23 0.90% - 4.30 % $ 175,552 $ 2,625 $ 2,090 $ (16 ) Accrued interest — 18 — — Total – designated derivative assets 9 $ 175,552 $ 2,643 $ 2,090 $ (16 ) As of December 31, 2017, the Company had the following designated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Credit Risk Adjusted Fair Market Value Loss Recognized in Accumulated Comprehensive Loss Gain Recognized into Earnings Interest rate swap contracts 7 3/14/18-9/27/25 1.98% - 6.22 % $ 206,447 $ (2,735 ) $ (2,393 ) $ 4 Accrued interest — (113 ) — — Total – designated derivative liabilities 7 $ 206,447 $ (2,848 ) $ (2,393 ) $ 4 Dedesignated Derivatives Certain of the Company’s interest rate swap contracts no longer qualify for hedge accounting and have been dedesignated. At December 31, 2017, the Company had an accumulated other comprehensive loss, net of tax, of $4.3 million associated with these contracts, which is being amortized over the term. During the year ended December 31, 2017, $1.4 million was recognized as interest expense. As of December 31, 2017, the Company had the following dedesignated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Credit Risk Adjusted Fair Market Value Gain Recognized into Earnings Interest rate swap contracts 4 2/9/2018-2/9/2019 1.69% - 3.47 % $ 318,747 $ (4,312 ) $ 204 Accrued interest — (184 ) — Total – dedesignated derivative liabilities 4 $ 318,747 $ (4,496 ) $ 204 Terminated Derivatives In 2016, the Company terminated four interest rate swap contracts and recognized a loss into earnings totaling $0.6 million. In 2015, the Company terminated 14 interest rate swap contracts and recognized a loss into earnings totaling $2.4 million. In addition, the Company recognized a net loss of $1.1 million on swap ineffectiveness. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 13. INCOME TAXES Fly is a tax resident of Ireland and has wholly-owned subsidiaries in Ireland, France, Luxembourg, Australia, Singapore and Labuan that are tax residents in those jurisdictions. In general, Irish resident companies pay corporation tax at the rate of 12.5% on trading income and 25.0% on non-trading income. Historically, most of the Company’s operating income has been trading income in Ireland. Income tax expense (benefit) by jurisdiction is shown below (dollars in thousands): Years ended 2017 2016 2015 Current tax expense: Ireland $ — $ — $ 33 Luxembourg 195 145 252 Australia 4,062 1,742 138 Other 43 33 57 Current tax expense — total 4,300 1,920 480 Deferred tax (benefit) expense: Ireland 8,710 (10,812 ) 4,558 Australia (1,743 ) 1,615 334 Other 65 — 27 Deferred tax (benefit) expense — total 7,032 (9,197 ) 4,919 Total income tax (benefit) expense $ 11,332 $ (7,277 ) $ 5,399 The Company had no unrecognized tax benefits as of December 31, 2017 and 2016. The principal components of the Company’s net deferred tax asset (liability) were as follows (dollars in thousands): December 31, 2017 December 31, 2016 Deferred tax asset: Net operating loss carry forwards $ 170,960 $ 151,575 Net unrealized losses on derivative instruments 390 1,181 Basis difference on acquisition of GAAM Australian assets 7,314 6,786 Other 55 224 Valuation allowance (39,484 ) (30,524 ) Total deferred tax asset 139,235 129,242 Deferred tax liability: Excess of tax depreciation over book depreciation (153,447 ) (137,249 ) Book/tax differences identified in connection with GAAM Portfolio acquisition (412 ) (438 ) Net earnings of non-European Union member subsidiaries (3,745 ) (3,957 ) Withholding tax on Australian unrepatriated earnings (1,800 ) — Total deferred tax liability (159,404 ) (141,644 ) Deferred tax liability, net $ (20,169 ) $ (12,402 ) The majority of the Company's net operating loss carry forwards are attributable to Ireland. Under current tax rules in Ireland, the Company is allowed to carry forward its net operating losses for an indefinite period to offset any future income. The Company has recorded valuation allowances to reduce deferred tax assets to the extent it believes it is more likely than not that a portion of such assets will not be realized. In making such determinations, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and its ability to carry back losses to prior years. The Company is required to make assumptions and judgments about potential outcomes that may be outside its control. Critical factors include the projection, source, and character of future taxable income. Although realization is not assured, the Company believes it is more likely than not that deferred tax assets, net of the valuation allowance, will be realized. The amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward periods are reduced or current tax planning strategies are not implemented. At December 31, 2017 and 2016, the Company had a valuation allowance of $39.5 million and $30.5 million, respectively. For the years ended December 31, 2017, 2016 and 2015, the Company recorded net valuation allowance provisions of $8.4 million, $7.2 million and $3.4 million, respectively. The Company has undistributed earnings from its Australian subsidiary. The Company does not intend to indefinitely reinvest its subsidiary's earnings back into Australia. A withholding tax of 15.0% is applied to distributions of earnings which have not been taxed in Australia. In 2017, the Company recorded a deferred tax liability of $1.8 million in connection with its unrepatriated Australian earnings. For the year ended December 31, 2017, the effective tax rate was 81.3%. The effective tax rate in any period is impacted by the source and amount of income earned and expenses incurred in different tax jurisdictions and valuation allowances the Company has recorded. The table below is a reconciliation of the Irish statutory corporation tax rate of 12.5% on trading income to the Company’s recorded income tax expense or benefit: Years ended 2017 2016 2015 Irish statutory corporate tax rate on trading income 12.5 % 12.5 % 12.5 % Valuation allowances 59.9 % (19.8 )% 12.0 % Equity earnings from Fly-Z/C LP (0.4 )% 0.2 % (0.5 )% Tax impact of repurchased and resold Notes (0.8 )% 1.3 % (3.2 )% Foreign tax rate differentials (18.4 )% 7.8 % (9.7 )% True-up of prior year tax provision 2.2 % — 1.4 % Non-taxable gain on debt extinguishment — 0.3 % — Non-deductible interest expense, transaction fees and expenses 12.2 % (4.8 )% 6.1 % Deductible intra-group interest — 30.9 % — Unrealized foreign exchange loss on re-valuation of deferred tax balances 0.5 % (8.6 )% — Withholding tax 13.3 % 0.0 % 0.0 % Other 0.3 % 0.2 % 0.5 % Effective tax rate 81.3 % 20.0 % 19.1 % Under Irish tax legislation, Irish Revenue (“Revenue”) is entitled to make enquiries and/or raise an assessment of any corporation tax return submitted up to a period of four years from the end of the year in which the return is submitted. As such, Revenue is entitled to make enquiries and/or raise an assessment in respect of the corporation tax returns submitted by the Company’s Irish subsidiaries for each of the years ended December 31, 2013 to 2017. In February 2018, Revenue issued a Value Added Tax (“VAT”) assessment to Fly for the period from January 1, 2014 to December 31, 2016 in the amount of 6.1 million Euros, representing a portion of the VAT refunded to Fly during that time period. Fly has had an ongoing dialogue with Revenue since January 2017 regarding its VAT returns and believes the assessment was raised as a protective measure by Revenue to avoid missing the statute of limitations for any claims. Fly has not recorded any uncertain tax position liability related to this assessment as Fly has been notified by its tax advisors that based on the facts and circumstances, and as also supported by a relevant tax court case, the positions taken in its VAT returns are more likely than not to be sustained upon ultimate resolution of this matter. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LIABILITIES [Abstract] | |
OTHER LIABILITIES | 14. OTHER LIABILITIES The following table describes the principal components of the Company’s other liabilities (dollars in thousands): December 31, 2017 December 31, 2016 Current tax payable $ 4,226 $ 2,036 Lease incentive obligation 20,306 24,757 Deferred rent 8,444 3,792 Refundable deposits 805 350 Other 5,875 9,319 Total other liabilities $ 39,656 $ 40,254 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | 15. SHAREHOLDERS’ EQUITY Share Repurchases In July 2016, the Company’s board of directors approved a $75.0 million share repurchase program, which expired in December 2017. I n November 2017, the Company’s board of directors approved a $50.0 million share repurchase program expiring in December 2018. During the year ended December 31, 2017, the Company repurchased 4,274,569 shares at an average price of $13.35 per share, or $57.1 million, before commissions and fees. As of December 31, 2017, there were 27,983,352 shares outstanding. During the year ended December 31, 2016, the Company repurchased 3,414,960 shares at an average price of $11.73 per share, or $40.1 million, before commissions and fees. During the year ended December 31, 2015, the Company repurchased a total of 5,797,673 shares at an average price of $13.89 per share, or $80.5 million, before commissions and fees. Dividends In November 2015, the Company announced that its board of directors approved the elimination of dividend payments on its shares. No dividends were declared or paid during the years ended December 31, 2017 or 2016. During the year ended December 31, 2015, the Company declared and paid dividends of $1.00 per share or $42.4 million. Share Issuances During the year ended December 31, 2017, the Company issued 1,481 shares in connection with SARs that were exercised. During the year ended December 31, 2016 or 2015, the Company issued no shares. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 16. SHARE-BASED COMPENSATION Description of Plan On April 29, 2010, the Company adopted the 2010 Omnibus Incentive Plan (“2010 Plan”) permitting the issuance of up to 1,500,000 share grants in the form of (i) SARs; (ii) RSUs; (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. SARs entitle the holder to receive any increase in value between the grant date price of Fly’s ADSs and their value on the exercise date. RSUs entitle the holder to receive a number of Fly’s ADSs equal to the number of RSUs awarded upon vesting. All awards are fully vested. The granted SARs and RSUs vested in three equal installments and expire on the tenth anniversary of the grant date. The Company satisfies SAR and RSU exercises with newly issued ADSs. The holder of a SAR or RSU is also entitled to dividend equivalent rights (“Dividend Equivalent”) on each SAR and RSU. For each Dividend Equivalent, the holder shall have the non-forfeitable right to receive a cash amount equal to the per share dividend paid by the Company during the period between the grant date and the earlier of the (i) award exercise or vesting date, (ii) termination date or (iii) expiration date. Dividend Equivalents expire at the same time and in the same proportion that the SARs and RSUs are exercised, cancelled, forfeited or expired. Grant Activity Since June 30, 2015, all SARs and RSUs granted under the 2010 Plan have vested. At December 31, 2016 and 2015, there were 821,117 SARs outstanding and exercisable at a weighted average exercise price of $12.74. During the year ended December 31, 2017, 24,137 SARs were exercised at a weighted average price of $12.73. At December 31, 2017, there were 796,980 SARs outstanding and exercisable at a weighted average exercise price of $12.74. At December 31, 2017, the weighted average remaining contractual life of the SARs was 3.1 years. During the year ended December 31, 2015, 36,075 RSUs vested at a weighted average price of $12.28. At December 31, 2015, there were no RSUs outstanding or unvested. Share-based compensation expense related to SARs and RSUs is recorded as a component of selling, general and administrative expenses, and totaled $0.2 million for the year ended December 31, 2015. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 17. EARNINGS PER SHARE The following table sets forth the calculation of basic and diluted earnings per common share using the two-class method (dollars in thousands, except per share data): Years ended 2017 2016 2015 Numerator Net income (loss) $ 2,598 $ (29,112 ) $ 22,798 Less: Dividends declared and paid to shareholders — — (41,388 ) Dividend equivalents paid to vested RSUs and SARs — — (1,054 ) Net income (loss) attributable to common shareholders $ 2,598 $ (29,112 ) $ (19,644 ) Denominator Weighted average shares outstanding-Basic 30,307,357 33,239,001 41,222,690 Dilutive common equivalent shares: RSUs — — 7,950 SARs 46,068 — 84,509 Weighted average shares outstanding-Diluted 30,353,425 33,239,001 41,315,149 Earnings (loss) per share: Basic Distributed earnings $ — $ — $ 1.00 Undistributed income (excess distribution) $ 0.09 $ (0.88 ) $ (0.48 ) Basic earnings (loss) per share $ 0.09 $ (0.88 ) $ 0.52 Diluted Distributed earnings $ — $ — $ 1.00 Undistributed income (excess distribution) $ 0.09 $ (0.88 ) $ (0.48 ) Diluted earnings (loss) per share $ 0.09 $ (0.88 ) $ 0.52 Basic earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) available to common shareholders by the sum of the weighted average number of common shares outstanding and the potential number of dilutive common shares outstanding during the period, excluding the effect of any anti-dilutive securities. SARs granted by the Company that contain non-forfeitable rights to receive dividend equivalents are deemed participating securities (see Note 16). Net income (loss) available to common shareholders is determined by reducing the Company’s net income (loss) for the period by dividend equivalents paid on vested SARs during the period. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES From time to time, the Company contracts with third-party service providers to perform maintenance or overhaul activities on its off-lease aircraft. In 2016, the Company entered into agreements with third-party lessors to guarantee the residual value of three aircraft subject to twelve-year leases (“RVGs”). The Company received residual value guarantee fees totaling $6.6 million, which are being amortized over a twelve-year period. The third-party lessors may exercise their rights under the RVGs by issuing a notice to the Company eleven months before each lease expiry date requiring the Company to purchase the aircraft on such date. The RVGs will terminate if not exercised accordingly. During the year ended December 31, 2017, the Company recognized $0.6 million of income. As of December 31, 2017, the Company had a commitment to purchase one aircraft, which was delivered in January 2018. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS With respect to aircraft financed by the Securitization Notes, through December 31, 2016, BBAM was entitled to receive (i) a base fee of $150,000 per month, subject to certain adjustments, (ii) a rent fee equal to 1.0% of the aggregate amount of rents due and 1.0% of the aggregate amount of rents actually collected and (iii) a sales fee of 1.5% of the aggregate gross proceeds in respect of any aircraft sold. BBAM also was entitled, until December 31, 2016, to an administrative agency fee from B&B Air Funding equal to $750,000 per annum, subject to an annual CPI adjustment. Effective January 1, 2017, the servicing agreement between B&B Air Funding and BBAM relating to aircraft financed by the Securitization Notes was amended, thereby (i) amending the rent fee to 3.5% of the aggregate amount of rents actually collected, plus $1,000 per aircraft per month, and (ii) eliminating the base fee of $150,000 per month. In connection with this amendment, effective January 1, 2017, the administrative agency fee also was reduced, through a rebate, to $20,000 per month, subject to an annual CPI adjustment. With respect to all other aircraft, BBAM is entitled to receive a servicing fee equal to 3.5% of the aggregate amount of rents actually collected, plus an administrative fee of $1,000 per aircraft per month. Under the Term Loan, the Magellan Acquisition Limited Facility and the Fly Acquisition III Facility, BBAM is also entitled to an administrative fee of $10,000 per month. In addition, BBAM is entitled to receive an acquisition fee of 1.5% of the purchase price of any aircraft purchased and a disposition fee of 1.5% of the gross proceeds of any aircraft sold. For the years ended December 31, 2017, 2016 and 2015, BBAM received servicing and administrative fees totaling $13.1 million, $14.6 million and $17.3 million, respectively. During the years ended December 31, 2017, 2016 and 2015, the Company incurred $6.8 million, $8.4 million and $9.2 million of origination fees, respectively, payable to BBAM. The Company pays an annual management fee to the Manager as compensation for providing the services of the chief executive officer, the chief financial officer and other personnel, and for certain corporate overhead costs related to the Company. In connection with an amendment to the management agreement effective as of July 1, 2015, the annual management fee was reduced from $10.7 million to $5.7 million. The management fee is adjusted each calendar year by (i) 0.3% of the change in the book value of the Company’s aircraft portfolio during the preceding year, up to a $2.0 billion increase over $2.7 billion and (ii) 0.25% of the change in the book value of the Company’s aircraft portfolio in excess of $2.0 billion, with a minimum management fee of $5.0 million. The management fee also is subject to an annual CPI adjustment applicable to the prior calendar year. For the years ended December 31, 2017 and 2016, the Company incurred Management Expenses of $6.3 million. For the year ended December 31, 2015, the Company incurred Management Expenses of $8.2 million. In connection with the July 2015 amendment, the Company and the Manager also agreed to reduce the disposition fee in respect of the ECAF-I Transaction to an aggregate amount equal to 1.2% of the aggregate gross proceeds for such aircraft. During the years ended December 31, 2017, 2016 and 2015, the Company incurred disposition fees of $0.3 million, $7.5 million and $15.6 million, respectively. The Company further amended the management agreement, effective as of January 1, 2017, to reflect the amendments made to the servicing and administrative fees payable in respect of the aircraft financed by the Securitization Notes. The management agreement is scheduled to terminate on July 1, 2025 and shall be automatically extended for one additional term of five years unless terminated by either party with 12 months’ notice or otherwise terminated earlier in accordance with the terms therein. If the management agreement is not renewed on July 1, 2025, the Company will pay the Manager a non-renewal fee on such termination date in an amount equal to (i) $6.0 million plus (ii) so long as the Management Expense Amount does not exceed $12.0 million, 50% of the excess (if any) of the Management Expense Amount over $6.0 million in respect of the last fiscal year prior to such termination date. The Company’s minimum long-term contractual obligations with BBAM LP as of December 31, 2017, excluding rent fees, consisted of the following (dollars in thousands): 2018 2019 2020 2021 2022 Thereafter Total Fixed base fee payments (1) $ 245 $ 245 $ 245 $ 245 $ 245 $ 1,470 $ 2,695 Fixed administrative agency fee payments due by B&B Air Funding (1) 108 69 31 12 12 13 245 Fixed administrative services fee due under the Term Loan (2) 472 452 373 288 200 134 1,919 Fixed administrative services fee due under the Magellan Acquisition Limited Facility (2) 204 204 204 202 192 758 1,764 Fixed administrative services fee due under Fly Acquisition III (2) 168 153 144 144 31 7 647 Fixed administrative agency fee payments due by other subsidiaries (2) 401 362 325 271 262 622 2,243 Fixed payments for Management Expenses (1) (3) 7,307 7,307 7,307 7,307 7,307 54,799 91,334 Total $ 8,905 $ 8,792 $ 8,629 $ 8,469 $ 8,249 $ 57,803 $ 100,847 (1) Assumes Consumer Price Index (“CPI”) rates in effect as of December 31, 2017 remain constant in future periods. (2) Assumes number of aircraft at December 31, 2017 remains constant in future periods. (3) Assumes an automatic extension for one additional term of five years to July 1, 2030. Also assumes net book value of aircraft at December 31, 2017 and Consumer Price Index rates in effect as of December 31, 2017 remain constant in future periods. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 20. FAIR VALUE MEASUREMENTS Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. The hierarchy levels give the highest priority to quoted prices in active markets and the lowest priority to unobservable data. Fair value measurements are disclosed by level within the following fair value hierarchy: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The Company’s financial instruments consist principally of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, derivative instruments, accounts payable and borrowings. Fair value of an asset is defined as the price a seller would receive in a current transaction between knowledgeable, willing and able parties. A liability’s fair value is defined as the amount that an obligor would pay to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, the fair value of the Company’s notes payable and debt facilities is based on observable market prices or parameters or derived from such prices or parameters (Level 2). Where observable prices or inputs are not available, valuation models are applied, using the net present value of cash flow streams over the term using estimated market rates for similar instruments and remaining terms (Level 3). These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. The Company determines the fair value of its derivative instruments using a discounted cash flow model which incorporates an assessment of the risk of non-performance by the swap counterparty and an evaluation of its credit risk in valuing derivative liabilities. The valuation model uses various inputs including contractual terms, interest rate curves, credit spreads and measures of volatility. The Company also measures the fair value for certain assets and liabilities on a non-recurring basis, when 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 Fly’s investment in an unconsolidated subsidiary and flight equipment held for operating lease, net. Fly accounts for its investment in an unconsolidated subsidiary under the equity method and records impairment when its fair value is less than its carrying value and the Company determines that the decline is other-than-temporary (Level 3). The Company records flight equipment at fair value when the carrying value may not be recoverable. Such fair value measurements are based on management’s best estimates and judgment and use Level 3 inputs which include assumptions as to future cash flows associated with the use of an aircraft and eventual disposition of such aircraft. The Company will record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. For the years ended December 31, 2017, 2016 and 2015, the Company wrote down aircraft to their net realizable value and recognized charges of $22.0 million, $96.1 million and $66.1 million, respectively (See Note 6). The carrying amounts and fair values of the Company’s debt instruments are as follows (dollars in thousands): As of December 31, 2017 As of December 31, 2016 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value Securitization Notes $ 101,551 $ 95,839 $ 139,741 $ 134,850 Nord LB Facility 153,176 153,176 171,509 171,509 CBA Facility 49,080 49,080 56,146 56,146 Term Loan 431,271 431,271 404,016 406,804 Magellan Acquisition Limited Facility 331,768 331,768 — — Fly Acquisition III Facility 86,520 86,520 113,045 113,045 Other Aircraft Secured Borrowings 905,525 905,525 980,967 980,967 2020 Notes — — 375,000 394,219 2021 Notes 325,000 339,235 325,000 340,438 2024 Notes 300,000 301,500 — — As of December 31, 2017 and 2016, the categorized derivative assets and liabilities measured at fair value on a recurring basis, based upon the lowest level of significant inputs to the valuations are as follows (dollars in thousands): Level 1 Level 2 Level 3 Total December 31, 2017: Derivative assets — $ 2,643 — $ 2,643 Derivative liabilities — 7,344 — 7,344 December 31, 2016: Derivative assets — $ 1,905 — $ 1,905 Derivative liabilities — 13,281 — 13,281 |
UNAUDITED QUARTERLY CONDENSED C
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 21. UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION The unaudited quarterly financial information for each of the quarters in the years ended December 31, 2017 and 2016 is presented below (dollars in thousands, except per share data): March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Total revenues $ 79,266 $ 79,832 $ 86,219 $ 107,934 Net income (loss) $ 5,052 $ 2,880 $ (12,504 ) $ 7,170 Earnings (loss) per share — Basic $ 0.16 $ 0.09 $ (0.43 ) $ 0.25 Earnings (loss) per share — Diluted $ 0.16 $ 0.09 $ (0.43 ) $ 0.25 March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Total revenues $ 81,208 $ 77,934 $ 85,297 $ 100,600 Net income (loss) $ 7,100 $ 4,677 $ 22,942 $ (63,831 ) Earnings (loss) per share — Basic $ 0.21 $ 0.14 $ 0.70 $ (1.98 ) Earnings (loss) per share — Diluted $ 0.21 $ 0.14 $ 0.70 $ (1.98 ) |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 22. SUBSEQUENT EVENTS Aircraft Acquisition Subsequent to December 31, 2017, the Company purchased one narrow-body aircraft. AirAsia Transactions Subsequent to December 31, 2017, the Company entered into definitive agreements with AirAsia Berhad (“AirAsia”) and its subsidiary, Asia Aviation Capital Limited (“AACL”), pursuant to which the Company will acquire 55 Airbus narrowbody aircraft and seven engines on operating leases, between 2018 and 2021. The Company also will acquire the option to purchase an additional 20 Airbus A320neo family aircraft, not subject to lease, which begin delivering as early as 2019 (collectively, the “AirAsia Transactions”). The AirAsia Transactions remain subject to approval by AirAsia shareholders, receipt of regulatory approvals and satisfaction of other closing conditions set forth in the sale and purchase agreement, and the termination rights of the parties thereunder. In addition, subsequent to December 31, 2017, the Company entered into a commitment letter with BNP Paribas, Citi, Commonwealth Bank of Australia and Deutsche Bank (the “Underwriters”) pursuant to which the Underwriters have agreed to provide $582.2 million in senior, secured debt financing for the AirAsia Transactions (the “Acquisition Credit Facility”). The Underwriters have agreed to provide $145.5 million under a two-year loan facility, and $436.7 million under a five-year loan facility, subject to the terms and conditions of the commitment letter to finance the acquisition of 30 aircraft in 2018. Four aircraft are expected to be financed under the Company’s existing warehouse facility. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent [Abstract] | |
Condensed Financial Information of Parent | Schedule I — Condensed financial information of parent Fly Leasing Limited Condensed Balance Sheets AS OF DECEMBER 31, 2017 AND 2016 (Dollars in thousands) December 31, 2017 2016 Assets Cash and cash equivalents $ 157,014 $ 229,777 Notes receivable from subsidiaries 375,477 441,451 Investments in subsidiaries 985,476 912,163 Investment in unconsolidated subsidiary 8,196 7,700 Other assets, net 1,655 534 Total assets $ 1,527,818 $ 1,591,625 Liabilities Payable to related parties $ 223 $ 906 Payable to subsidiaries 349,585 280,034 Unsecured borrowings, net 615,922 691,390 Deferred tax liability, net 3,739 1,946 Accrued and other liabilities 14,640 24,114 Total liabilities 984,109 998,390 Shareholders’ equity 543,709 593,235 Total liabilities and shareholders’ equity $ 1,527,818 $ 1,591,625 The accompanying note is an integral part of these consolidated financial statements. Fly Leasing Limited Condensed Statements of Income (Loss) FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015 (Dollars in thousands, except per share data) Years ended 2017 2016 2015 Revenues Equity earnings (loss) from subsidiaries $ 35,208 $ (24,385 ) $ 17,065 Equity earnings from unconsolidated subsidiary 496 530 1,159 Intercompany management fee income 12,124 8,866 15,053 Intercompany interest income 34,068 44,394 48,077 Interest and other income 809 410 224 Total revenues 82,705 29,815 81,578 Expense Interest expense 45,970 48,013 48,013 Selling, general and administrative 12,630 11,803 12,987 Loss on modification and extinguishment of debt 19,655 — — Total expenses 78,255 59,816 61,000 Net income (loss) before provision (benefit) for income taxes 4,450 (30,001 ) 20,578 Provision (benefit) for income taxes 1,852 (889 ) (2,220 ) Net income (loss) $ 2,598 $ (29,112 ) $ 22,798 Weighted average number of shares: Basic 30,307,357 33,239,001 41,222,690 Diluted 30,353,425 33,239,001 41,315,149 Earnings (loss) per share: Basic $ 0.09 $ (0.88 ) $ 0.52 Diluted $ 0.09 $ (0.88 ) $ 0.52 The accompanying note is an integral part of these consolidated financial statements. Schedule I — Condensed financial information of parent Fly Leasing Limited Condensed Statements of Cash Flows FOR THE YEARS ENDED DECEMBER 31, 2017, 2016 AND 2015 (Dollars in thousands) Years ended 2017 2016 2015 Cash Flows from Operating Activities Net income (loss) $ 2,598 $ (29,112 ) $ 22,798 Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: Equity earnings (loss) from subsidiaries (35,208 ) 24,385 (17,065 ) Equity earnings from unconsolidated subsidiary (496 ) (530 ) (1,159 ) Deferred income taxes 1,852 (12,139 ) (2,276 ) Share-based compensation — — 195 Amortization of debt discount and other 1,931 1,982 1,982 Loss on modification and extinguishment of debt 19,655 — — Changes in operating assets and liabilities: Payable to subsidiaries 6,144 (162,229 ) 132,843 Other assets (1,121 ) 476 1,060 Payable to related parties (683 ) 856 (867 ) Accrued and other liabilities (9,478 ) 12,622 483 Net cash flows provided by (used in) operating activities (14,806 ) (163,689 ) 137,994 Cash Flows from Investing Activities Distributions received from subsidiaries — — 53,500 Capital contributions to unconsolidated subsidiary — — (2,009 ) Notes receivable from subsidiaries (48,335 ) (40,172 ) (650,083 ) Notes payable to subsidiaries 144,718 334,556 505,273 Net cash flows provided by (used in) investing activities 96,383 294,384 (93,319 ) Cash Flows from Financing Activities Proceeds from issuance of unsecured borrowings 295,150 — — Repayment of unsecured borrowings (375,000 ) — — Debt modification and extinguishment costs (16,287 ) — — Debt issuance costs (917 ) — — Shares repurchased (57,286 ) (40,257 ) (81,432 ) Dividends paid — — (41,388 ) Dividend equivalents — — (1,054 ) Net cash flows used in financing activities (154,340 ) (40,257 ) (123,874 ) Net increase (decrease) in cash and cash equivalents (72,763 ) 90,438 (79,199 ) Cash and cash equivalents at beginning of period 229,777 139,339 218,538 Cash and cash equivalents at end of period $ 157,014 $ 229,777 $ 139,339 Supplemental Disclosure: Cash paid during the year for: Interest $ 41,883 $ 46,032 $ 46,723 Taxes — — — Noncash Activities : Noncash investing activities: Capital contribution to subsidiaries 109,391 207,340 17,246 Distributions from subsidiaries 76,451 55,039 711 The accompanying note is an integral part of these consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Preparation | Fly is a holding company that conducts its business through its subsidiaries. The Company directly or indirectly owns all of the common shares of its consolidated subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Fly and all of its subsidiaries. In instances where it is the primary beneficiary, Fly will consolidate a Variable Interest Entity (“VIE”). Fly is deemed the primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the economic performance of such VIE, and it bears the significant risk of loss and participates in gains of the VIE. All intercompany transactions and balances have been eliminated. The consolidated financial statements are stated in U.S. Dollars, which is the principal operating currency of the Company. |
Segment | The Company has one operating and reportable segment which is aircraft leasing. |
Reclassifications | Certain amounts in prior period consolidated financial statements have been reclassified to conform to the current period presentation. In 2017, the Company adopted ASU 2016-15 and ASU 2016-18, Statement of Cash Flows (Topic 230) |
Use of Estimates | USE OF ESTIMATES The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The use of estimates is or could be a significant factor affecting the reported carrying values of flight equipment, deferred tax assets, liabilities and reserves. To the extent available, the Company utilizes industry specific resources, third-party appraisers and other materials to support management’s estimates, particularly with respect to flight equipment. Actual results could differ from those estimates. |
Risks and Uncertainties | RISKS AND UNCERTAINTIES The Company encounters several types of risk during the course of its business, including credit and market risks. Credit risk addresses a lessee’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects the change in the value of derivatives and credit facilities due to changes in interest rate spreads or other market factors, including the value of collateral underlying the Company’s credit facilities. |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. |
Restricted Cash and Cash Equivalents | RESTRICTED CASH AND CASH EQUIVALENTS The Company’s restricted cash and cash equivalents consist primarily of (i) security deposits and certain maintenance payments received from lessees under the terms of various lease agreements, (ii) a portion of rents collected which may be required to be held as cash collateral under certain of the Company’s debt facilities and (iii) other cash, which may be subject to withdrawal restrictions pursuant to the Company’s credit agreements. All restricted cash is held by major financial institutions in segregated accounts. |
Rent Receivables | RENT RECEIVABLES Rent receivables represent unpaid lessee obligations under existing lease contracts. Any allowance for doubtful accounts is established on a specific identification basis and is maintained at a level believed by management to be adequate to absorb probable losses associated with rent receivables. The assessment of credit risk is primarily based on the extent to which amounts outstanding exceed the value of security held, the financial strength and condition of a debtor and the current economic and regulatory conditions of the debtor’s operating environment. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows and consideration of current factors and economic trends impacting the lessees and their credit worthiness, all of which may be susceptible to significant change. Uncollectible rent receivables are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is recorded based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors. As of December 31, 2017 and 2016, the Company had no allowance for doubtful accounts. In addition, the Company places a lessee on non-accrual status once it determines that it is no longer probable that the Company will receive the economic benefits of the lease. The Company recognizes revenue from a lessee on non-accrual status only as cash is received. |
Investment in Unconsolidated Subsidiary | INVESTMENT IN UNCONSOLIDATED SUBSIDIARY Fly has a 57.4% interest in Fly-Z/C Aircraft Holdings LP (“Fly-Z/C LP”). Fly accounts for its interest in the unconsolidated subsidiary using the equity method as the Company does not control the entity. Under the equity method, the Company’s investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated subsidiary’s undistributed earnings and losses, and distributions of dividends and capital. The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiary, or whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification. |
Investment in Finance Lease | INVESTMENT IN FINANCE LEASE The Company has recorded one lease as an investment in finance lease. The investment in finance lease equals the sum of amounts to be received under the lease, plus the estimated residual value of the equipment at lease termination, less unearned income. Residual value reflects management’s estimate of the amounts to be received at lease termination from the re-lease or disposition of the leased equipment. Initial unearned income represents the amount by which the original sum of the lease receivable and the estimated residual value exceeds the original cost of the leased equipment. Unearned income is recognized as finance lease income over the lease term in a manner that produces a constant rate of return on the net investment in the lease based on an implicit interest rate. Initial direct costs and fees related to lease origination are deferred as part of the investment and amortized over the lease term. |
Flight Equipment Held for Sale | FLIGHT EQUIPMENT HELD FOR SALE Flight equipment is classified as held for sale when the Company commits to and commences a plan of sale that is reasonably expected to be completed within one year and satisfies certain other held for sale criteria. Flight equipment held for sale is recorded at the lesser of carrying value or fair value, less estimated cost to sell. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. An impairment loss is recorded for an asset or asset group held for sale when the carrying value of the asset or asset group exceeds its fair value, less estimated cost to sell. Aircraft classified as held for sale is not depreciated. Subsequent changes to the asset’s fair value are recorded as adjustments to the carrying value of the flight equipment. However, any such adjustment will not cause the asset’s fair value to exceed its original carrying value. |
Flight Equipment Held for Operating Lease | FLIGHT EQUIPMENT HELD FOR OPERATING LEASE Flight equipment held for operating lease are recorded at cost and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of the original manufacturer’s estimated realized price for the flight equipment when new. Management may, at its discretion, make exceptions to this policy on a case by case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of residual values. Examples of such situations include, but are not limited to: ● Flight equipment where original manufacturer’s prices are not relevant due to plane modifications and conversions. ● Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence. ● The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture. ● Flight equipment that management believes will be disposed of prior to the end of its estimated useful life. Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, during each reporting period. Major aircraft improvements or lessee-specific modifications to the aircraft to be performed by the Company pursuant to any lease agreement are accounted for as lease incentives and amortized against revenue over the term of the lease, assuming no lease renewals. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination. Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the remaining life of the flight equipment. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. |
Impairment of Flight Equipment | IMPAIRMENT OF FLIGHT EQUIPMENT The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company’s evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft, adverse changes in market conditions for specific aircraft types, third party appraisals of aircraft, published values for similar aircraft, any occurrence of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of the Company’s aircraft. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value. Future cash flows are assumed to occur under current market conditions and assume adequate time for a sale between a willing and able buyer and a willing seller. Expected future lease rates are based on all relevant information available, including the existing lease, current contracted rates for similar aircraft, appraisal data and industry trends. Residual value assumptions generally reflect an aircraft’s salvage value, except where more recent industry information indicates a different value is appropriate. Impairment analyses require the use of assumptions and estimates, including the level of future rents, the residual value of the flight equipment to be realized upon sale at some future date, estimated downtime between re-leasing events and the amount of re-leasing costs. |
Maintenance Rights | MAINTENANCE RIGHTS The Company identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft with in-place leases. A maintenance right asset represents the fair value of its contractual right under a lease to receive an aircraft in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company’s obligation to pay the lessee for the difference between the lease end contractual maintenance condition of the aircraft at lease expiry and the actual maintenance condition of the aircraft on the acquisition date. The Company’s aircraft are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in its leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases). EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft into a specified maintenance condition. Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft is greater than the contractual return condition in the lease at lease expiry and the Company is required to pay the lessee in cash for the improved maintenance condition. When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company’s capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company’s capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with our policy with respect to major maintenance. When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement. MR Leases Under MR Leases, the lessee is required to make periodic maintenance payments to us based upon usage of the aircraft. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee. Maintenance right assets in MR Leases represent the right to receive an aircraft in an improved condition relative to the actual condition on the acquisition date. The aircraft is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives. Maintenance right assets, net will be recorded as a separate line item on the Company’s balance sheet. When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income, which is consistent with the Company’s existing policy; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded. There are no maintenance right liabilities for MR Leases. When flight equipment is sold, maintenance rights are released from the balance sheet as part of the disposition gain or loss. |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to manage its exposure to interest rate and foreign currency risks. All derivatives are recognized on the balance sheet at their fair values. Pursuant to U.S. GAAP, changes in the fair value of the item being hedged are recognized into earnings in the same period and in the same income statement line as the change in the fair value of the derivative instrument. On the date that the Company enters into a derivative contract, the Company formally documents all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for undertaking each hedge transaction. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability. Changes in the fair value of a derivative that is designated and qualifies as an effective cash flow hedge are recorded in accumulated other comprehensive income, net of tax, until earnings are affected by the variability of cash flows of the hedged item. Any derivative gains and losses that are not effective in hedging the variability of expected cash flows of the hedged item or that do not qualify for hedge accounting treatment are recognized directly into income. At the hedge’s inception and at least every reporting period thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair market value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction. |
Other Assets | OTHER ASSETS Other assets consist primarily of unamortized lease premiums, initial direct lease costs and other miscellaneous receivables. Lease premiums are amortized into operating lease income over the lease term. |
Security Deposits | SECURITY DEPOSITS In the normal course of leasing aircraft to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease. |
Maintenance Payment Liability | MAINTENANCE PAYMENT LIABILITY The Company’s flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly’s operating leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration and airworthiness directives. Under the terms of the lease agreements, cash collected from lessees for future maintenance of the aircraft is recorded as maintenance payment liabilities. The Company does not recognize such maintenance payments as revenue during the lease term. Maintenance payment liabilities are attributable to specific aircraft and are typically based on hours or cycles of utilization, depending upon the component. Upon the occurrence of qualified maintenance events, the lessee submits a request for reimbursement and upon disbursement of the funds, the liability is relieved. The lessor may be obligated to contribute to maintenance related expenses on an aircraft during the term of the lease. In other instances, the lessee or lessor may be obligated to make a payment to the other party at lease termination based on a computation stipulated in the lease agreement. The calculation is based on utilization and condition of the airframe, engines and other major life-limited components as determined at lease termination. The Company may also incur maintenance expenses on off-lease aircraft. Scheduled major maintenance or overhaul activities and costs for certain high-value components that are paid by the Company are capitalized and depreciated over the period until the next overhaul is required. Payments made by the Company for minor maintenance, repairs and re-leasing of aircraft are expensed as incurred. At lease termination, maintenance payment liabilities are offset against any maintenance right balance for the aircraft, and the remainder is recognized as end of lease income. When flight equipment is sold, the maintenance payment liability amounts may be remitted to the buyer in accordance with the terms of the related agreements and are released from the balance sheet as part of the disposition gain or loss. |
Revenue Recognition | REVENUE RECOGNITION Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Where revenue amounts do not meet these recognition criteria, recognition is delayed until the criteria are met. ● Operating lease revenue. ● End of lease income. ● Lease incentives. ● Finance lease income. |
Share-Based Compensation | SHARE-BASED COMPENSATION The Company has a 2010 Omnibus Incentive Plan (“2010 Plan”) permitting the issuance of up to 1,500,000 share grants in the form of (i) stock appreciation rights (“SARs”); (ii) restricted stock units (“RSUs”); (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. Compensation expense associated with grants to employees were valued at the grant date and amortized on a straight-line basis over the service period. Grants to non-employees were initially measured at grant date, and then re-measured at each interim reporting period until the awards vested. Determining the appropriate fair value model and calculation of the fair value of stock-based awards required judgment, including estimating stock price volatility, forfeitures and expected grant life. |
Income Taxes | INCOME TAXES The Company provides for income taxes by tax jurisdiction. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statements and tax basis of existing assets and liabilities at the enacted tax rates expected to apply when the assets are recovered or liabilities are settled. A valuation allowance is used to reduce deferred tax assets to the amount that management ultimately expects to be more-likely-than-not realized. The Company recognizes an uncertain tax benefit only to the extent that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The Company has elected to classify any interest on unpaid income taxes and penalties as a component of the provision for income taxes. No interest on unpaid income taxes and penalties were incurred during each of the years ended December 31, 2017, 2016 and 2015. |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). In February 2016, FASB issued its new lease guidance, ASU 2016-02, Leases (Topic 842) In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) In October 2016, FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In August 2017, FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815). |
SUPPLEMENTAL DISCLOSURE TO CO34
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | |
Supplemental Disclosure to Consolidated Statements of Cash Flows | Years ended 2017 2016 2015 (Dollars in thousands) Cash paid during the year for: Interest $ 113,710 $ 110,351 $ 132,780 Taxes 2,155 460 384 Noncash Activities: Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance 2,045 — 3,292 Maintenance payment liability applied to rent receivables and rentals received in advance 68 — 2,523 Other liabilities applied to maintenance payment liability and rent receivables 676 2,550 240 Noncash investing activities: Aircraft improvement 192 5,245 1,587 Noncash activities in connection with purchase of aircraft 3,979 6,388 19,382 Noncash activities in connection with sale of aircraft — 78,722 93,819 |
INVESTMENT IN FINANCE LEASE (Ta
INVESTMENT IN FINANCE LEASE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
Net Investment in Finance Lease | The Company’s net investment in finance lease consisted of the following (dollars in thousands): December 31, 2017 December 31, 2016 Total minimum lease payments receivable $ 13,200 $ 15,080 Estimated unguaranteed residual value of leased asset 4,227 4,227 Unearned finance income (3,481 ) (4,212 ) Net Investment in Finance Lease $ 13,946 $ 15,095 |
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease | Presented below are the contracted future minimum rental payments due under non-cancellable finance lease, as of December 31, 2017. Year ending December 31, (Dollars in thousands) 2018 $ 1,800 2019 1,800 2020 1,800 2021 1,800 2022 1,800 Thereafter 4,200 Future minimum rental payments under finance lease $ 13,200 |
FLIGHT EQUIPMENT HELD FOR OPE36
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |
Flight Equipment Held for Operating Lease | Flight equipment held for operating lease consists of the following (dollars in thousands): December 31, 2017 December 31, 2016 Cost $ 3,574,202 $ 3,180,160 Accumulated depreciation (612,458 ) (486,339 ) Flight equipment held for operating lease, net $ 2,961,744 $ 2,693,821 |
Flight Equipment Held for Operating Lease by Geographic Region | The distribution of the net book value of flight equipment held for operating lease by geographic region is as follows (dollars in thousands): December 31, 2017 December 31, 2016 Europe: Spain $ 175,593 6 % $ 57,845 2 % Turkey 135,764 5 % 142,787 5 % United Kingdom 128,116 4 % 143,560 5 % Germany — — 98,483 4 % Russia 16,332 — 17,582 1 % Other 235,013 8 % 179,155 7 % Europe — Total 690,818 23 % 639,412 24 % Asia and South Pacific: India 601,072 20 % 574,853 21 % Philippines 268,504 9 % 279,031 10 % Indonesia 204,840 7 % 62,921 2 % China 186,083 6 % 194,774 7 % Other 152,371 5 % 153,323 7 % Asia and South Pacific — Total 1,412,870 47 % 1,264,902 47 % Mexico, South and Central America: Chile 83,097 3 % 86,251 3 % Other 79,177 3 % 83,368 3 % Mexico, South and Central America — Total 162,274 6 % 169,619 6 % North America: United States 147,580 5 % 156,472 6 % Other 52,182 2 % 55,044 2 % North America — Total 199,762 7 % 211,516 8 % Middle East and Africa: Ethiopia 322,896 11 % 332,817 12 % Other 116,273 4 % 75,555 3 % Middle East and Africa — Total 439,169 15 % 408,372 15 % Off-Lease — Total 56,851 2 % — — Total flight equipment held for operating lease, net $ 2,961,744 100 % $ 2,693,821 100 % |
Operating Lease Revenue by Geographic Region | The distribution of operating lease revenue by geographic region for the years ended December 31, 2017, 2016 and 2015 is as follows (dollars in thousands): Years ended 2017 2016 2015 Europe: Spain $ 11,199 3 % $ 5,361 2 % $ 9,191 2 % Turkey 17,103 5 % 24,593 8 % 29,847 7 % United Kingdom 29,182 8 % 34,498 11 % 50,742 12 % Germany 26,457 8 % 13,836 4 % 18,201 4 % Russia 1,927 1 % 3,141 1 % 24,095 6 % Other 27,253 8 % 25,253 8 % 46,480 11 % Europe — Total 113,121 33 % 106,682 34 % 178,556 42 % Asia and South Pacific: India 64,381 18 % 39,640 13 % 19,572 4 % Philippines 29,825 9 % 29,129 9 % 38,677 9 % Indonesia 16,308 5 % 8,320 3 % 7,915 2 % China 22,611 6 % 23,882 8 % 37,943 9 % Other 19,263 6 % 18,967 5 % 31,141 7 % Asia and South Pacific — Total 152,388 44 % 119,938 38 % 135,248 31 % Mexico, South and Central America: Chile 8,939 3 % 8,939 3 % 24,336 6 % Other 8,626 2 % 8,768 3 % 16,732 4 % Mexico, South and Central America — Total 17,565 5 % 17,707 6 % 41,068 10 % North America: United States 17,647 5 % 24,591 8 % 37,316 9 % Other 6,237 2 % 6,223 2 % 6,380 1 % North America — Total 23,884 7 % 30,814 10 % 43,696 10 % Middle East and Africa: Ethiopia 30,018 9 % 30,084 10 % 22,808 5 % Other 9,918 2 % 8,357 2 % 8,315 2 % Middle East and Africa — Total 39,936 11 % 38,441 12 % 31,123 7 % Total Operating Lease Revenue $ 346,894 100 % $ 313,582 100 % $ 429,691 100 % |
Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases | Presented below are the contracted future minimum rental payments due under non-cancellable operating leases, as of December 31, 2017. For leases that have floating rental rates, the future minimum rental payments due assume that the rental payment due as of December 31, 2017 is held constant for the duration of the lease. Year ending December 31, (Dollars in thousands) 2018 $ 355,172 2019 320,670 2020 280,506 2021 245,208 2022 209,542 Thereafter 734,445 Future minimum rental payments under operating leases $ 2,145,543 |
Lease Incentive Amortization | At December 31, 2017, lease incentive amortization for the next five years and thereafter is as follows (dollars in thousands): Year ending December 31, 2018 $ 9,137 2019 8,449 2020 5,849 2021 3,594 2022 2,218 Thereafter 1,044 Future amortization of lease incentives $ 30,291 |
MAINTENANCE RIGHTS (Tables)
MAINTENANCE RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
MAINTENANCE RIGHTS [Abstract] | |
Changes in Maintenance Rights, Net | Changes in maintenance right assets, net of maintenance right liabilities, during the years ended December 31, 2017 and 2016 were as follows (dollars in thousands) : December 31, 2017 December 31, 2016 Maintenance rights, net beginning balance $ 101,969 $ 94,493 Acquisitions 25,033 28,412 Capitalized to aircraft improvements (192 ) (5,245 ) Maintenance rights recognized into earnings (465 ) — Cash receipts from maintenance rights — (9,513 ) Maintenance rights associated with aircraft sold 4,954 (6,178 ) Maintenance rights, net at end of year $ 131,299 $ 101,969 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER ASSETS [Abstract] | |
Other Assets | The principal components of the Company’s other assets are as follows (dollars in thousands): December 31, 2017 December 31, 2016 Lease costs, net $ 2,045 $ 1,730 Value added tax and general sales tax receivables, net 2,915 2,994 Other assets 4,010 1,844 Total other assets $ 8,970 $ 6,568 |
UNSECURED BORROWINGS (Tables)
UNSECURED BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Unsecured Borrowings [Abstract] | |
Borrowings | Balance as of December 31, 2017 December 31, 2016 (Dollars in thousands) Outstanding principal balance: 2020 Notes $ — $ 375,000 2021 Notes 325,000 325,000 2024 Notes 300,000 — Total outstanding principal balance 625,000 700,000 Unamortized debt discounts and loan costs (9,078 ) (8,610 ) Unsecured borrowings, net $ 615,922 $ 691,390 |
Unsecured Borrowings [Member] | 2021 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Unsecured Debt Redemption Prices | The Company may redeem the 2021 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date. If redeemed during the 12-month period commencing on October 15 of the years set forth below Redemption Price 2017 104.781 % 2018 103.188 % 2019 101.594 % 2020 and thereafter 100.000 % |
Unsecured Borrowings [Member] | 2024 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Unsecured Debt Redemption Prices | On and after October 15, 2020, the Company may redeem the 2024 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date. If redeemed during the 12-month period commencing on October 15 of the years set forth below Redemption Price 2020 102.625 % 2021 101.313 % 2022 and thereafter 100.000 % |
SECURED BORROWINGS (Tables)
SECURED BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
SECURED BORROWINGS [Abstract] | |
Secured Borrowings | The Company’s secured borrowings balance, net as of December 31, 2017 and 2016 are presented below (dollars in thousands): Outstanding principal balance as of December 31, Weighted average interest rate (1) December 31, 2017 2016 2017 2016 Maturity date Securitization Notes $ 101,551 $ 139,741 3.06 % 3.36 % November 2033 Nord LB Facility 153,176 171,509 4.47 % 4.14 % November 2018 CBA Facility 49,080 56,146 5.53 % 5.45 % October 2020 Term Loan 431,271 404,016 4.25 % 4.41 % February 2023 Magellan Acquisition Limited Facility 331,768 — 3.15 % — December 2025 Fly Acquisition III Facility 86,520 113,045 3.41 % 2.88 % February 2022 Other Aircraft Secured Borrowings 905,525 980,967 3.83 % 3.50 % September 2019 – June 2028 Unamortized debt discounts and loan costs (29,216 ) (33,439 ) Total $ 2,029,675 $ 1,831,985 (1) Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. |
Future Minimum Principal Payments on Secured Borrowings | The anticipated future minimum principal payments due for its secured borrowings are as follows (dollars in thousands): Year ending December 31, 2018 $ 309,914 2019 169,230 2020 187,184 2021 152,497 2022 174,436 Thereafter 1,065,630 Future minimum principal payments due $ 2,058,891 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
DERIVATIVES [Abstract] | |
Designated Derivative Assets | As of December 31, 2017, the Company had the following designated derivative instruments classified as derivative assets on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Credit Risk Adjusted Fair Market Value Gain Recognized in Accumulated Comprehensive Loss Loss Recognized into Earnings Interest rate swap contracts 9 11/14/2018-1/11/23 0.90% - 4.30 % $ 175,552 $ 2,625 $ 2,090 $ (16 ) Accrued interest — 18 — — Total – designated derivative assets 9 $ 175,552 $ 2,643 $ 2,090 $ (16 ) |
Designated Derivative Liabilities | As of December 31, 2017, the Company had the following designated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Credit Risk Adjusted Fair Market Value Loss Recognized in Accumulated Comprehensive Loss Gain Recognized into Earnings Interest rate swap contracts 7 3/14/18-9/27/25 1.98% - 6.22 % $ 206,447 $ (2,735 ) $ (2,393 ) $ 4 Accrued interest — (113 ) — — Total – designated derivative liabilities 7 $ 206,447 $ (2,848 ) $ (2,393 ) $ 4 |
Dedesignated Derivative Liabilities | As of December 31, 2017, the Company had the following dedesignated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Credit Risk Adjusted Fair Market Value Gain Recognized into Earnings Interest rate swap contracts 4 2/9/2018-2/9/2019 1.69% - 3.47 % $ 318,747 $ (4,312 ) $ 204 Accrued interest — (184 ) — Total – dedesignated derivative liabilities 4 $ 318,747 $ (4,496 ) $ 204 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |
Income Tax Expense (Benefit) by Jurisdiction | Income tax expense (benefit) by jurisdiction is shown below (dollars in thousands): Years ended 2017 2016 2015 Current tax expense: Ireland $ — $ — $ 33 Luxembourg 195 145 252 Australia 4,062 1,742 138 Other 43 33 57 Current tax expense — total 4,300 1,920 480 Deferred tax (benefit) expense: Ireland 8,710 (10,812 ) 4,558 Australia (1,743 ) 1,615 334 Other 65 — 27 Deferred tax (benefit) expense — total 7,032 (9,197 ) 4,919 Total income tax (benefit) expense $ 11,332 $ (7,277 ) $ 5,399 |
Net Deferred Tax Asset (Liability) | The principal components of the Company’s net deferred tax asset (liability) were as follows (dollars in thousands): December 31, 2017 December 31, 2016 Deferred tax asset: Net operating loss carry forwards $ 170,960 $ 151,575 Net unrealized losses on derivative instruments 390 1,181 Basis difference on acquisition of GAAM Australian assets 7,314 6,786 Other 55 224 Valuation allowance (39,484 ) (30,524 ) Total deferred tax asset 139,235 129,242 Deferred tax liability: Excess of tax depreciation over book depreciation (153,447 ) (137,249 ) Book/tax differences identified in connection with GAAM Portfolio acquisition (412 ) (438 ) Net earnings of non-European Union member subsidiaries (3,745 ) (3,957 ) Withholding tax on Australian unrepatriated earnings (1,800 ) — Total deferred tax liability (159,404 ) (141,644 ) Deferred tax liability, net $ (20,169 ) $ (12,402 ) |
Reconciliation of Statutory to Effective Tax Rate | The table below is a reconciliation of the Irish statutory corporation tax rate of 12.5% on trading income to the Company’s recorded income tax expense or benefit: Years ended 2017 2016 2015 Irish statutory corporate tax rate on trading income 12.5 % 12.5 % 12.5 % Valuation allowances 59.9 % (19.8 )% 12.0 % Equity earnings from Fly-Z/C LP (0.4 )% 0.2 % (0.5 )% Tax impact of repurchased and resold Notes (0.8 )% 1.3 % (3.2 )% Foreign tax rate differentials (18.4 )% 7.8 % (9.7 )% True-up of prior year tax provision 2.2 % — 1.4 % Non-taxable gain on debt extinguishment — 0.3 % — Non-deductible interest expense, transaction fees and expenses 12.2 % (4.8 )% 6.1 % Deductible intra-group interest — 30.9 % — Unrealized foreign exchange loss on re-valuation of deferred tax balances 0.5 % (8.6 )% — Withholding tax 13.3 % 0.0 % 0.0 % Other 0.3 % 0.2 % 0.5 % Effective tax rate 81.3 % 20.0 % 19.1 % |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
OTHER LIABILITIES [Abstract] | |
Other Liabilities | The following table describes the principal components of the Company’s other liabilities (dollars in thousands): December 31, 2017 December 31, 2016 Current tax payable $ 4,226 $ 2,036 Lease incentive obligation 20,306 24,757 Deferred rent 8,444 3,792 Refundable deposits 805 350 Other 5,875 9,319 Total other liabilities $ 39,656 $ 40,254 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
EARNINGS PER SHARE [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per common share using the two-class method (dollars in thousands, except per share data): Years ended 2017 2016 2015 Numerator Net income (loss) $ 2,598 $ (29,112 ) $ 22,798 Less: Dividends declared and paid to shareholders — — (41,388 ) Dividend equivalents paid to vested RSUs and SARs — — (1,054 ) Net income (loss) attributable to common shareholders $ 2,598 $ (29,112 ) $ (19,644 ) Denominator Weighted average shares outstanding-Basic 30,307,357 33,239,001 41,222,690 Dilutive common equivalent shares: RSUs — — 7,950 SARs 46,068 — 84,509 Weighted average shares outstanding-Diluted 30,353,425 33,239,001 41,315,149 Earnings (loss) per share: Basic Distributed earnings $ — $ — $ 1.00 Undistributed income (excess distribution) $ 0.09 $ (0.88 ) $ (0.48 ) Basic earnings (loss) per share $ 0.09 $ (0.88 ) $ 0.52 Diluted Distributed earnings $ — $ — $ 1.00 Undistributed income (excess distribution) $ 0.09 $ (0.88 ) $ (0.48 ) Diluted earnings (loss) per share $ 0.09 $ (0.88 ) $ 0.52 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Minimum Long-Term Contractual Obligations With BBAM LP, Excluding Rent Fees | The Company’s minimum long-term contractual obligations with BBAM LP as of December 31, 2017, excluding rent fees, consisted of the following (dollars in thousands): 2018 2019 2020 2021 2022 Thereafter Total Fixed base fee payments (1) $ 245 $ 245 $ 245 $ 245 $ 245 $ 1,470 $ 2,695 Fixed administrative agency fee payments due by B&B Air Funding (1) 108 69 31 12 12 13 245 Fixed administrative services fee due under the Term Loan (2) 472 452 373 288 200 134 1,919 Fixed administrative services fee due under the Magellan Acquisition Limited Facility (2) 204 204 204 202 192 758 1,764 Fixed administrative services fee due under Fly Acquisition III (2) 168 153 144 144 31 7 647 Fixed administrative agency fee payments due by other subsidiaries (2) 401 362 325 271 262 622 2,243 Fixed payments for Management Expenses (1) (3) 7,307 7,307 7,307 7,307 7,307 54,799 91,334 Total $ 8,905 $ 8,792 $ 8,629 $ 8,469 $ 8,249 $ 57,803 $ 100,847 (1) Assumes Consumer Price Index (“CPI”) rates in effect as of December 31, 2017 remain constant in future periods. (2) Assumes number of aircraft at December 31, 2017 remains constant in future periods. (3) Assumes an automatic extension for one additional term of five years to July 1, 2030. Also assumes net book value of aircraft at December 31, 2017 and Consumer Price Index rates in effect as of December 31, 2017 remain constant in future periods. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company’s debt instruments are as follows (dollars in thousands): As of December 31, 2017 As of December 31, 2016 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value Securitization Notes $ 101,551 $ 95,839 $ 139,741 $ 134,850 Nord LB Facility 153,176 153,176 171,509 171,509 CBA Facility 49,080 49,080 56,146 56,146 Term Loan 431,271 431,271 404,016 406,804 Magellan Acquisition Limited Facility 331,768 331,768 — — Fly Acquisition III Facility 86,520 86,520 113,045 113,045 Other Aircraft Secured Borrowings 905,525 905,525 980,967 980,967 2020 Notes — — 375,000 394,219 2021 Notes 325,000 339,235 325,000 340,438 2024 Notes 300,000 301,500 — — |
Asset and Liabilities Measured at Fair Value on Recurring Basis | As of December 31, 2017 and 2016, the categorized derivative assets and liabilities measured at fair value on a recurring basis, based upon the lowest level of significant inputs to the valuations are as follows (dollars in thousands): Level 1 Level 2 Level 3 Total December 31, 2017: Derivative assets — $ 2,643 — $ 2,643 Derivative liabilities — 7,344 — 7,344 December 31, 2016: Derivative assets — $ 1,905 — $ 1,905 Derivative liabilities — 13,281 — 13,281 |
UNAUDITED QUARTERLY CONDENSED47
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |
Unaudited Quarterly Financial Information | The unaudited quarterly financial information for each of the quarters in the years ended December 31, 2017 and 2016 is presented below (dollars in thousands, except per share data): March 31, 2017 June 30, 2017 September 30, 2017 December 31, 2017 Total revenues $ 79,266 $ 79,832 $ 86,219 $ 107,934 Net income (loss) $ 5,052 $ 2,880 $ (12,504 ) $ 7,170 Earnings (loss) per share — Basic $ 0.16 $ 0.09 $ (0.43 ) $ 0.25 Earnings (loss) per share — Diluted $ 0.16 $ 0.09 $ (0.43 ) $ 0.25 March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Total revenues $ 81,208 $ 77,934 $ 85,297 $ 100,600 Net income (loss) $ 7,100 $ 4,677 $ 22,942 $ (63,831 ) Earnings (loss) per share — Basic $ 0.21 $ 0.14 $ 0.70 $ (1.98 ) Earnings (loss) per share — Diluted $ 0.21 $ 0.14 $ 0.70 $ (1.98 ) |
ORGANIZATION (Details)
ORGANIZATION (Details) | 12 Months Ended | |
Dec. 31, 2017Director$ / sharesshares | Dec. 31, 2016$ / sharesshares | |
Organization [Abstract] | ||
Manager shares, issued (in shares) | shares | 100 | 100 |
Manager shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Maximum [Member] | ||
Organization [Abstract] | ||
Number of directors that can be appointed by Manager Shares | Director | 0.43 |
SUMMARY OF SIGNIFICANT ACCOUN49
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($)LeaseSegmentshares | Dec. 31, 2016USD ($)Lease | Dec. 31, 2015USD ($) | Apr. 29, 2010shares | |
Basis of Preparation [Abstract] | ||||
Number of operating segments | Segment | 1 | |||
Number of reportable segments | Segment | 1 | |||
Rent Receivables [Abstract] | ||||
Allowance for doubtful accounts | $ 0 | $ 0 | ||
Investment in Direct Finance Lease [Abstract] | ||||
Number of leases recorded as investment in finance lease | Lease | 1 | 1 | ||
Flight Equipment Held for Operating Lease [Abstract] | ||||
Useful life of flight equipment | 25 years | |||
Residual value percentage | 15.00% | |||
Taxes [Abstract] | ||||
Interest on unpaid income taxes and penalties | $ 0 | $ 0 | $ 0 | |
New Accounting Pronouncements [Abstract] | ||||
Unamortized lease costs | $ 2,000,000 | |||
2010 Omnibus Incentive Plan [Member] | ||||
Share-Based Compensation [Abstract] | ||||
Number of share grants authorized (in shares) | shares | 1,500,000 | 1,500,000 | ||
Fly-Z/C Aircraft Holdings LP [Member] | ||||
Investment in Unconsolidated Subsidiary [Abstract] | ||||
Limited partnership interest percentage | 57.40% |
SUPPLEMENTAL DISCLOSURE TO CO50
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash paid during the year for [Abstract] | |||
Interest | $ 113,710 | $ 110,351 | $ 132,780 |
Taxes | 2,155 | 460 | 384 |
Noncash Activities [Abstract] | |||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 2,045 | 0 | 3,292 |
Maintenance payment liability applied to rent receivables and rentals received in advance | 68 | 0 | 2,523 |
Other liabilities applied to maintenance payment liability and rent receivables | 676 | 2,550 | 240 |
Noncash Investing Activities [Abstract] | |||
Aircraft improvement | 192 | 5,245 | 1,587 |
Noncash activities in connection with purchase of aircraft | 3,979 | 6,388 | 19,382 |
Noncash activities in connection with sale of aircraft | $ 0 | $ 78,722 | $ 93,819 |
INVESTMENT IN FINANCE LEASE (De
INVESTMENT IN FINANCE LEASE (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Lease | Dec. 31, 2016USD ($)Lease | Dec. 31, 2015USD ($) | |
INVESTMENT IN FINANCE LEASE [Abstract] | |||
Number of leases recorded as investment in finance lease | Lease | 1 | 1 | |
Gain on reclassification of operating lease to finance lease | $ 2,700 | ||
Implicit interest rate | 5.00% | ||
Investment in Finance Lease [Abstract] | |||
Gain on sale of aircraft | $ 3,926 | $ 27,195 | $ 28,959 |
Finance lease revenue | 731 | 2,066 | $ 299 |
Net Investment in Finance Lease [Abstract] | |||
Total minimum lease payments receivable | 13,200 | 15,080 | |
Estimated unguaranteed residual value of leased asset | 4,227 | 4,227 | |
Unearned finance income | (3,481) | (4,212) | |
Net Investment in Finance Lease | 13,946 | 15,095 | |
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease [Abstract] | |||
2,018 | 1,800 | ||
2,019 | 1,800 | ||
2,020 | 1,800 | ||
2,021 | 1,800 | ||
2,022 | 1,800 | ||
Thereafter | 4,200 | ||
Future minimum rental payments under finance lease | $ 13,200 | 15,080 | |
Investment in Finance Lease [Member] | |||
Investment in Finance Lease [Abstract] | |||
Gain on sale of aircraft | $ 4,200 |
FLIGHT EQUIPMENT HELD FOR SALE
FLIGHT EQUIPMENT HELD FOR SALE (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)Aircraft | Dec. 31, 2015USD ($)AircraftPortfolio | Sep. 30, 2017Aircraft | |
Flight Equipment Held for Sale [Abstract] | |||||
Gain on sale of aircraft | $ | $ 3,926 | $ 27,195 | $ 28,959 | ||
Number of aircraft agreed to be sold | Aircraft | 45 | ||||
Number of portfolio sales | Portfolio | 2 | ||||
Number of aircraft delivered to purchaser | Aircraft | 13 | 32 | |||
Number of aircraft held for sale | Aircraft | 1 | ||||
Flight equipment held for sale, net | $ | $ 0 | $ 0 | $ 0 | ||
Flight Equipment Held For Sale [Member] | |||||
Flight Equipment Held for Sale [Abstract] | |||||
Gain on sale of aircraft | $ | $ 3,900 | $ 5,000 | $ 33,000 |
FLIGHT EQUIPMENT HELD FOR OPE53
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Flight Equipment Held for Operating Lease (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||||
Dec. 31, 2017USD ($)AircraftLessee | Sep. 30, 2016Aircraft | Dec. 31, 2017USD ($)AircraftLesseeCountry | Dec. 31, 2016USD ($)AircraftLesseeCountry | Dec. 31, 2015USD ($)Aircraft | Dec. 31, 2016USD ($)AircraftLessee | Sep. 30, 2017Aircraft | |
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft held | Aircraft | 84 | 84 | 75 | 75 | |||
Number of aircraft on lease | Aircraft | 82 | 75 | |||||
Number of lessees | Lessee | 43 | 43 | 41 | 41 | |||
Number of countries in which lessees operate | Country | 27 | 26 | |||||
Number of aircraft off lease | Aircraft | 2 | 2 | |||||
Number of aircraft held for sale | Aircraft | 1 | ||||||
Gain (loss) on sale of aircraft | $ | $ 3,926 | $ 27,195 | $ 28,959 | ||||
Aircraft impairment | $ | 22,000 | 96,122 | $ 66,093 | ||||
Cost | $ | $ 3,574,202 | 3,574,202 | 3,180,160 | $ 3,180,160 | |||
Accumulated depreciation | $ | (612,458) | (612,458) | (486,339) | (486,339) | |||
Flight equipment held for operating lease, net | $ | 2,961,744 | 2,961,744 | 2,693,821 | $ 2,693,821 | |||
Major maintenance expenditures capitalized | $ | $ 7,400 | $ 5,700 | |||||
Air Berlin [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft on lease | Aircraft | 2 | ||||||
Air Berlin [Member] | A321-200 [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft on lease | Aircraft | 1 | ||||||
Aircraft impairment | $ | $ 0 | ||||||
Air Berlin [Member] | A330-200 [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft on lease | Aircraft | 1 | ||||||
Aircraft impairment | $ | $ 22,000 | ||||||
Flight Equipment Held For Operating Lease [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft purchased | Aircraft | 10 | 10 | |||||
Capitalized cost of aircraft purchased | $ | $ 438,100 | $ 545,800 | |||||
Number of aircraft sold | Aircraft | 0 | 13 | 12 | ||||
Number of aircraft sold for gain | Aircraft | 12 | ||||||
Gain (loss) on sale of aircraft | $ | $ 15,200 | $ (4,000) | |||||
Gain on extinguishment of debt | $ | 600 | ||||||
Aircraft impairment | $ | $ 96,122 | $ 66,093 | |||||
Flight Equipment Held For Operating Lease [Member] | Narrow-Body Aircraft [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of impaired aircraft | Aircraft | 1 | 11 | |||||
Number of impaired aircraft sold | Aircraft | 1 | 10 | |||||
Flight Equipment Held For Operating Lease [Member] | Wide-Body Aircraft [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of impaired aircraft | Aircraft | 3 | 3 | |||||
Flight Equipment Held For Sale [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Gain (loss) on sale of aircraft | $ | $ 3,900 | $ 5,000 | $ 33,000 |
FLIGHT EQUIPMENT HELD FOR OPE54
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Flight Equipment Held for Operating Lease by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 2,961,744 | $ 2,693,821 |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 2,961,744 | $ 2,693,821 |
Concentration percentage | 100.00% | 100.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Off-Lease [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 56,851 | $ 0 |
Concentration percentage | 2.00% | 0.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Europe [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 690,818 | $ 639,412 |
Concentration percentage | 23.00% | 24.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Spain [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 175,593 | $ 57,845 |
Concentration percentage | 6.00% | 2.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Turkey [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 135,764 | $ 142,787 |
Concentration percentage | 5.00% | 5.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | United Kingdom [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 128,116 | $ 143,560 |
Concentration percentage | 4.00% | 5.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Germany [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 0 | $ 98,483 |
Concentration percentage | 0.00% | 4.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Russia [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 16,332 | $ 17,582 |
Concentration percentage | 0.00% | 1.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 235,013 | $ 179,155 |
Concentration percentage | 8.00% | 7.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Asia and South Pacific [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 1,412,870 | $ 1,264,902 |
Concentration percentage | 47.00% | 47.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | India [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 601,072 | $ 574,853 |
Concentration percentage | 20.00% | 21.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Philippines [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 268,504 | $ 279,031 |
Concentration percentage | 9.00% | 10.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Indonesia [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 204,840 | $ 62,921 |
Concentration percentage | 7.00% | 2.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | China [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 186,083 | $ 194,774 |
Concentration percentage | 6.00% | 7.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 152,371 | $ 153,323 |
Concentration percentage | 5.00% | 7.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Mexico, South and Central America [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 162,274 | $ 169,619 |
Concentration percentage | 6.00% | 6.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Chile [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 83,097 | $ 86,251 |
Concentration percentage | 3.00% | 3.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 79,177 | $ 83,368 |
Concentration percentage | 3.00% | 3.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | North America [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 199,762 | $ 211,516 |
Concentration percentage | 7.00% | 8.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | United States [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 147,580 | $ 156,472 |
Concentration percentage | 5.00% | 6.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 52,182 | $ 55,044 |
Concentration percentage | 2.00% | 2.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Middle East and Africa [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 439,169 | $ 408,372 |
Concentration percentage | 15.00% | 15.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Ethiopia [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 322,896 | $ 332,817 |
Concentration percentage | 11.00% | 12.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 116,273 | $ 75,555 |
Concentration percentage | 4.00% | 3.00% |
FLIGHT EQUIPMENT HELD FOR OPE55
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Operating Lease Revenue by Geographic Region (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)AircraftLesseeCustomer | Dec. 31, 2016USD ($)AircraftLesseeCustomer | Dec. 31, 2015USD ($)LesseeCustomer | |
Revenues [Abstract] | ||||
Operating lease revenue | $ 346,894 | $ 313,582 | $ 429,691 | |
Number of major customers | Customer | 1 | 0 | 0 | |
Number of aircraft on lease | Aircraft | 82 | 75 | ||
End of lease income | $ 17,800 | $ 8,900 | $ 53,800 | |
Number of lessees leasing aircraft on non-accrual status | Lessee | 0 | 0 | 2 | |
Weighted average remaining lease term | 6 years 3 months 18 days | 6 years 9 months 18 days | ||
Air Berlin [Member] | ||||
Revenues [Abstract] | ||||
Number of aircraft on lease | Aircraft | 2 | |||
End of lease income | $ 16,600 | |||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 346,894 | $ 313,582 | $ 429,691 | |
Concentration percentage | 100.00% | 100.00% | 100.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Europe [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 113,121 | $ 106,682 | $ 178,556 | |
Concentration percentage | 33.00% | 34.00% | 42.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Spain [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 11,199 | $ 5,361 | $ 9,191 | |
Concentration percentage | 3.00% | 2.00% | 2.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Turkey [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 17,103 | $ 24,593 | $ 29,847 | |
Concentration percentage | 5.00% | 8.00% | 7.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United Kingdom [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 29,182 | $ 34,498 | $ 50,742 | |
Concentration percentage | 8.00% | 11.00% | 12.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Germany [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 26,457 | $ 13,836 | $ 18,201 | |
Concentration percentage | 8.00% | 4.00% | 4.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Russia [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 1,927 | $ 3,141 | $ 24,095 | |
Concentration percentage | 1.00% | 1.00% | 6.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 27,253 | $ 25,253 | $ 46,480 | |
Concentration percentage | 8.00% | 8.00% | 11.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Asia and South Pacific [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 152,388 | $ 119,938 | $ 135,248 | |
Concentration percentage | 44.00% | 38.00% | 31.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | India [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 64,381 | $ 39,640 | $ 19,572 | |
Concentration percentage | 18.00% | 13.00% | 4.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Philippines [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 29,825 | $ 29,129 | $ 38,677 | |
Concentration percentage | 9.00% | 9.00% | 9.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Indonesia [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 16,308 | $ 8,320 | $ 7,915 | |
Concentration percentage | 5.00% | 3.00% | 2.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | China [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 22,611 | $ 23,882 | $ 37,943 | |
Concentration percentage | 6.00% | 8.00% | 9.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 19,263 | $ 18,967 | $ 31,141 | |
Concentration percentage | 6.00% | 5.00% | 7.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Mexico, South and Central America [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 17,565 | $ 17,707 | $ 41,068 | |
Concentration percentage | 5.00% | 6.00% | 10.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Chile [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 8,939 | $ 8,939 | $ 24,336 | |
Concentration percentage | 3.00% | 3.00% | 6.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 8,626 | $ 8,768 | $ 16,732 | |
Concentration percentage | 2.00% | 3.00% | 4.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | North America [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 23,884 | $ 30,814 | $ 43,696 | |
Concentration percentage | 7.00% | 10.00% | 10.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United States [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 17,647 | $ 24,591 | $ 37,316 | |
Concentration percentage | 5.00% | 8.00% | 9.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 6,237 | $ 6,223 | $ 6,380 | |
Concentration percentage | 2.00% | 2.00% | 1.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Middle East and Africa [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 39,936 | $ 38,441 | $ 31,123 | |
Concentration percentage | 11.00% | 12.00% | 7.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Ethiopia [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 30,018 | $ 30,084 | $ 22,808 | |
Concentration percentage | 9.00% | 10.00% | 5.00% | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 9,918 | $ 8,357 | $ 8,315 | |
Concentration percentage | 2.00% | 2.00% | 2.00% | |
Operating Lease Revenue [Member] | Customer Concentration [Member] | Air India [Member] | ||||
Revenues [Abstract] | ||||
Concentration percentage | 11.00% |
FLIGHT EQUIPMENT HELD FOR OPE56
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Contracted Future Minimum Rental Payments Due [Abstract] | |
2,018 | $ 355,172 |
2,019 | 320,670 |
2,020 | 280,506 |
2,021 | 245,208 |
2,022 | 209,542 |
Thereafter | 734,445 |
Future minimum rental payments under operating leases | $ 2,145,543 |
FLIGHT EQUIPMENT HELD FOR OPE57
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Amortization of Lease Incentives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |||
Amortization of lease incentives | $ 7,668 | $ 8,898 | $ 20,527 |
Amortization of Lease Incentives [Abstract] | |||
2,018 | 9,137 | ||
2,019 | 8,449 | ||
2,020 | 5,849 | ||
2,021 | 3,594 | ||
2,022 | 2,218 | ||
Thereafter | 1,044 | ||
Future amortization of lease incentives | $ 30,291 |
MAINTENANCE RIGHTS (Details)
MAINTENANCE RIGHTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
MAINTENANCE RIGHTS [Abstract] | |||
Maintenance rights, net beginning balance | $ 101,969 | $ 94,493 | |
Acquisitions | 25,033 | 28,412 | |
Capitalized to aircraft improvements | (192) | (5,245) | |
Maintenance rights recognized into earnings | (465) | 0 | $ 0 |
Cash receipts from maintenance rights | 0 | (9,513) | |
Maintenance rights associated with aircraft sold | 4,954 | (6,178) | |
Maintenance rights, net at end of year | $ 131,299 | $ 101,969 | $ 94,493 |
INVESTMENT IN UNCONSOLIDATED 59
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Aircraft | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Investment in Unconsolidated Subsidiary [Abstract] | |||
Equity earnings from unconsolidated subsidiary | $ 496 | $ 530 | $ 1,159 |
Fly-Z/C LP [Member] | |||
Investment in Unconsolidated Subsidiary [Abstract] | |||
Limited partnership interest percentage | 57.40% | ||
Number of aircraft owned | Aircraft | 2 | ||
Equity earnings from unconsolidated subsidiary | $ 500 | 500 | 1,200 |
Contributions to unconsolidated subsidiary | 2,000 | ||
Distributions from unconsolidated subsidiary | $ 0 | $ 0 | $ 0 |
Fly-Z/C LP [Member] | Summit Aviation Partners LLC [Member] | |||
Investment in Unconsolidated Subsidiary [Abstract] | |||
Limited partnership interest percentage | 10.20% |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Other Assets [Abstract] | ||
Lease costs, net | $ 2,045 | $ 1,730 |
Value added tax and general sales tax receivables, net | 2,915 | 2,994 |
Other assets | 4,010 | 1,844 |
Total other assets | $ 8,970 | $ 6,568 |
UNSECURED BORROWINGS, Unsecured
UNSECURED BORROWINGS, Unsecured Debt, Net (Details) - USD ($) $ in Thousands | Dec. 15, 2017 | Oct. 16, 2017 | Oct. 03, 2014 | Dec. 11, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Unsecured Borrowings [Abstract] | |||||||
Unsecured borrowings, net | $ 615,922 | $ 691,390 | |||||
Proceeds from unsecured borrowings | 295,150 | 0 | $ 0 | ||||
Repayment of unsecured borrowings | 375,000 | 0 | 0 | ||||
Debt extinguishment costs | (23,309) | (9,246) | $ (17,491) | ||||
Unsecured Borrowings [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Outstanding principal balance | 625,000 | 700,000 | |||||
Unamortized debt discount and loan costs | (9,078) | (8,610) | |||||
Unsecured borrowings, net | 615,922 | 691,390 | |||||
Accrued interest | 7,700 | 5,500 | |||||
Unsecured Borrowings [Member] | 2020 Notes [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Outstanding principal balance | 0 | 375,000 | |||||
Notes issued | $ 75,000 | $ 300,000 | |||||
Interest rate | 6.75% | 6.75% | |||||
Underwriting debt discount paid | $ 8,500 | ||||||
Percentage of principal paid as premium at time of issuance | 104.75% | ||||||
Repayment of unsecured borrowings | $ 375,000 | ||||||
Debt extinguishment costs | $ 19,700 | ||||||
Unsecured Borrowings [Member] | 2021 Notes [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Outstanding principal balance | $ 325,000 | 325,000 | |||||
Notes issued | $ 325,000 | ||||||
Interest rate | 6.375% | ||||||
Maturity date | Oct. 15, 2021 | ||||||
Unsecured Borrowings [Member] | 2024 Notes [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Outstanding principal balance | $ 300,000 | $ 0 | |||||
Notes issued | $ 300,000 | ||||||
Interest rate | 5.25% | ||||||
Proceeds from unsecured borrowings | $ 294,200 | ||||||
Maturity date | Oct. 15, 2024 | ||||||
Unsecured Borrowings [Member] | Additional 2020 Notes and 2021 Notes [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Underwriting debt discount paid | $ 3,400 |
UNSECURED BORROWINGS, Redemptio
UNSECURED BORROWINGS, Redemption Prices (Details) - Unsecured Borrowings [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2017 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2017 |
Redemption price percentage | 104.781% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2018 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2018 |
Redemption price percentage | 103.188% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2019 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2019 |
Redemption price percentage | 101.594% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2020 and Thereafter [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2020 |
Redemption price percentage | 100.00% |
2024 Notes [Member] | Twelve Month Period Commencing October 15, 2018 [Member] | |
Unsecured Borrowings [Abstract] | |
End date of redemption period | Oct. 14, 2020 |
Redemption percentage of principal amount | 35.00% |
2024 Notes [Member] | Any Time Prior to October 15, 2020 [Member] | |
Unsecured Borrowings [Abstract] | |
Redemption price percentage | 105.25% |
2024 Notes [Member] | Twelve Month Period Commencing October 15, 2020 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2020 |
Redemption price percentage | 102.625% |
2024 Notes [Member] | Twelve Month Period Commencing October 15, 2021 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2021 |
Redemption price percentage | 101.313% |
2024 Notes [Member] | Twelve Month Period Commencing October 15, 2022 and Thereafter [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2022 |
Redemption price percentage | 100.00% |
2021 Notes and 2024 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Period of default for payment of interest | 30 days |
Period of default after receipt of written notice to comply with agreements under indenture | 60 days |
Percentage of aggregate principal amount held by holders | 25.00% |
Obligations in default constituting event of default | $ 50 |
Period to pay final judgments after judgment becomes final | 60 days |
SECURED BORROWINGS, Secured Bor
SECURED BORROWINGS, Secured Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Secured Borrowings [Abstract] | |||
Net carrying value | $ 2,029,675 | $ 1,831,985 | |
Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | 2,058,891 | ||
Unamortized debt discount and loan costs | (29,216) | (33,439) | |
Net carrying value | 2,029,675 | 1,831,985 | |
Accrued interest | 6,600 | 5,200 | |
Secured Borrowings [Member] | Securitization Notes [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 101,551 | $ 139,741 | |
Weighted average interest rate | [1] | 3.06% | 3.36% |
Maturity date | Nov. 14, 2033 | ||
Secured Borrowings [Member] | Nord LB Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 153,176 | $ 171,509 | |
Weighted average interest rate | [1] | 4.47% | 4.14% |
Maturity date | Nov. 14, 2018 | ||
Secured Borrowings [Member] | CBA Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 49,080 | $ 56,146 | |
Weighted average interest rate | [1] | 5.53% | 5.45% |
Maturity date | Oct. 28, 2020 | ||
Secured Borrowings [Member] | Term Loan [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 431,271 | $ 404,016 | |
Weighted average interest rate | [1] | 4.25% | 4.41% |
Maturity date | Feb. 28, 2023 | ||
Secured Borrowings [Member] | Magellan Acquisition Limited Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 331,768 | $ 0 | |
Weighted average interest rate | [1] | 3.15% | 0.00% |
Maturity date | Dec. 8, 2025 | ||
Secured Borrowings [Member] | Fly Acquisition III Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 86,520 | $ 113,045 | |
Weighted average interest rate | [1] | 3.41% | 2.88% |
Maturity date | Feb. 26, 2022 | ||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 905,525 | $ 980,967 | |
Weighted average interest rate | [1] | 3.83% | 3.50% |
Maturity date, range start date | Sep. 30, 2019 | ||
Maturity date, range end date | Jun. 30, 2028 | ||
[1] | Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
SECURED BORROWINGS, Securitizat
SECURED BORROWINGS, Securitization Notes (Details) - Secured Borrowings [Member] | 12 Months Ended | |
Dec. 31, 2017USD ($)Aircraft | Dec. 31, 2016USD ($) | |
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 2,058,891,000 | |
Securitization Notes [Member] | ||
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 101,551,000 | $ 139,741,000 |
Maturity date | Nov. 14, 2033 | |
B&B Air Funding [Member] | Securitization Notes [Member] | ||
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 101,551,000 | |
Number of aircraft serving as security | Aircraft | 9 | |
Maturity date | Nov. 14, 2033 | |
Redemption price percentage | 100.00% | |
B&B Air Funding [Member] | Securitization Notes [Member] | LIBOR [Member] | ||
Secured Borrowings [Abstract] | ||
Term of variable rate | 1 month | |
Basis spread on variable rate | 0.77% | |
B&B Air Funding [Member] | Revolving Credit Facility [Member] | Securitization Note Liquidity Facility [Member] | ||
Secured Borrowings [Abstract] | ||
Maximum borrowing capacity | $ 60,000,000 | |
Commitment fee percentage | 0.40% | |
Balance | $ 0 | $ 0 |
B&B Air Funding [Member] | Revolving Credit Facility [Member] | Securitization Note Liquidity Facility [Member] | LIBOR [Member] | ||
Secured Borrowings [Abstract] | ||
Term of variable rate | 1 month | |
Basis spread on variable rate | 1.20% |
SECURED BORROWINGS, Nord LB Fac
SECURED BORROWINGS, Nord LB Facility (Details) - Secured Borrowings [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Aircraft | Dec. 31, 2016USD ($) | |
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 2,058,891 | |
Nord LB Facility [Member] | ||
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 153,176 | $ 171,509 |
Number of aircraft serving as security | Aircraft | 6 | |
Maturity date | Nov. 14, 2018 | |
Percentage of lease rentals collected applied to interest and principal | 95.00% | |
Period after termination or expiration of lease when payments become due | 6 months | |
Period aircraft remains off-lease before interest is charged | 6 months | |
Period aircraft remains off-lease before debt service is charged | 12 months | |
Percentage of lease rate paid as debt service fee | 85.00% | |
Period aircraft remains off-lease before payment in full is required or foreclosure on aircraft occurs | 24 months | |
Percentage return on equity investment after full repayment of facility | 10.00% | |
Fee percentage payable in excess of 10% return | 10.00% | |
Nord LB Facility [Member] | Maximum [Member] | ||
Secured Borrowings [Abstract] | ||
Fee payable after full repayment of facility | $ 5,000 | |
Nord LB Facility [Member] | Minimum [Member] | ||
Secured Borrowings [Abstract] | ||
Obligations in default constituting event of default | $ 10,000 | |
Nord LB Facility [Member] | LIBOR [Member] | ||
Secured Borrowings [Abstract] | ||
Term of variable rate | 1 month | |
Basis spread on variable rate | 3.30% |
SECURED BORROWINGS, CBA Facilit
SECURED BORROWINGS, CBA Facility (Details) - Secured Borrowings [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)AircraftLoan | Dec. 31, 2016USD ($) | |
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 2,058,891 | |
CBA Facility [Member] | ||
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 49,080 | $ 56,146 |
Number of aircraft serving as security | Aircraft | 4 | |
Number of loans maturing in 2020 | Loan | 4 | |
Maturity date | Oct. 28, 2020 | |
Debt ratio used to determine payment into collateral account | 80.00% |
SECURED BORROWINGS, Term Loan (
SECURED BORROWINGS, Term Loan (Details) $ in Thousands | Oct. 19, 2016 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Apr. 27, 2017 | Oct. 31, 2017 | Dec. 31, 2017USD ($)AircraftAppraiser | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Secured Borrowings [Abstract] | ||||||||
Proceeds from secured borrowings | $ 513,459 | $ 572,719 | $ 147,276 | |||||
Secured Borrowings [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Principal amount outstanding | $ 2,058,891 | 2,058,891 | ||||||
Secured Borrowings [Member] | Term Loan [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Principal amount outstanding | $ 431,271 | $ 404,016 | $ 431,271 | $ 404,016 | ||||
Number of aircraft serving as security | Aircraft | 30 | |||||||
Maturity date | Feb. 28, 2023 | |||||||
Proceeds from secured borrowings | $ 50,000 | |||||||
Redemption price percentage | 101.00% | |||||||
One-time percentage fee paid in connection with amending the loan | 0.25% | |||||||
Loss on extinguishment of debt | $ 2,300 | $ 3,000 | ||||||
Number of independent appraisers | Appraiser | 3 | |||||||
Secured Borrowings [Member] | Term Loan [Member] | Maximum [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Loan-to-Value Ratio | 70.00% | |||||||
Secured Borrowings [Member] | Term Loan [Member] | Minimum [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Obligations in default constituting event of default | $ 50,000 | |||||||
Secured Borrowings [Member] | Term Loan [Member] | LIBOR [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Term of variable rate | 3 months | |||||||
Basis spread on variable rate | 2.00% | 2.75% | 2.25% | 2.00% | ||||
Floor interest rate | 0.75% |
SECURED BORROWINGS, Magellan Ac
SECURED BORROWINGS, Magellan Acquisition Limited Facility (Details) $ in Thousands | Dec. 08, 2017USD ($) | Dec. 31, 2017USD ($)Aircraft | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Secured Borrowings [Abstract] | ||||
Proceeds from secured borrowings | $ 513,459 | $ 572,719 | $ 147,276 | |
Secured Borrowings [Member] | Magellan Acquisition Limited Facility [Member] | ||||
Secured Borrowings [Abstract] | ||||
Face amount | $ 331,768 | |||
Maturity date | Dec. 8, 2025 | |||
Upfront fee paid | $ 3,000 | |||
Proceeds from secured borrowings | $ 273,700 | |||
Number of aircraft financed with borrowings | Aircraft | 7 | |||
Amount held in escrow account | $ 58,100 | |||
Number of aircraft to be financed with funds held in escrow | Aircraft | 2 | |||
Number of aircraft serving as security | Aircraft | 9 | |||
Minimum tangible net worth required for compliance | $ 325,000 | |||
Minimum liquidity required for compliance | 25,000 | |||
Obligations in default constituting event of default | $ 50,000 | |||
Secured Borrowings [Member] | Magellan Acquisition Limited Facility [Member] | Maximum [Member] | ||||
Secured Borrowings [Abstract] | ||||
Loan-to-Value Ratio | 75.00% | |||
Secured Borrowings [Member] | Magellan Acquisition Limited Facility Loans [Member] | LIBOR [Member] | ||||
Secured Borrowings [Abstract] | ||||
Term of variable rate | 1 month | |||
Basis spread on variable rate | 1.65% | |||
Secured Borrowings [Member] | Magellan Acquisition Limited Facility Notes [Member] | ||||
Secured Borrowings [Abstract] | ||||
Interest rate | 3.93% |
SECURED BORROWINGS, Fly Acquisi
SECURED BORROWINGS, Fly Acquisition III Facility (Details) - Secured Borrowings [Member] $ in Thousands | 12 Months Ended | 23 Months Ended | 24 Months Ended | ||
Feb. 26, 2020 | Dec. 31, 2017USD ($)Aircraft | Feb. 26, 2019 | Feb. 26, 2022 | Dec. 31, 2016USD ($) | |
Secured Borrowings [Abstract] | |||||
Principal amount outstanding | $ 2,058,891 | ||||
Fly Acquisition III Facility [Member] | |||||
Secured Borrowings [Abstract] | |||||
Maturity date | Feb. 26, 2022 | ||||
Principal amount outstanding | $ 86,520 | $ 113,045 | |||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | |||||
Secured Borrowings [Abstract] | |||||
Maximum borrowing capacity | $ 385,000 | ||||
Maturity date | Feb. 26, 2022 | ||||
Principal amount outstanding | $ 86,520 | ||||
Number of aircraft serving as security | Aircraft | 4 | ||||
Commitment fee percentage | 0.50% | ||||
Minimum tangible net worth required for compliance | $ 325,000 | ||||
Minimum liquidity required for compliance | 25,000 | ||||
Obligations in default constituting event of default | $ 50,000 | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | Plan [Member] | |||||
Secured Borrowings [Abstract] | |||||
Commitment fee percentage | 0.75% | ||||
Minimum percentage of total commitments that have not been drawn before commitment fee percentage increases | 50.00% | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | LIBOR [Member] | |||||
Secured Borrowings [Abstract] | |||||
Term of variable rate | 1 month | ||||
Basis spread on variable rate | 2.00% | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | LIBOR [Member] | Plan [Member] | |||||
Secured Borrowings [Abstract] | |||||
Basis spread on variable rate | 2.50% | 3.00% |
SECURED BORROWINGS, Other Aircr
SECURED BORROWINGS, Other Aircraft Secured Borrowings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)AircraftLoan | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Secured Borrowings [Abstract] | |||
Proceeds from secured borrowings | $ 513,459 | $ 572,719 | $ 147,276 |
Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | $ 2,058,891 | ||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Number of loans denominated in Euros | Loan | 1 | ||
Principal amount outstanding | $ 905,525 | $ 980,967 | |
Number of aircraft serving as security | Aircraft | 19 | ||
Recourse debt | $ 473,600 | ||
Maturity date, range start date | Sep. 30, 2019 | ||
Maturity date, range end date | Jun. 30, 2028 |
SECURED BORROWINGS, Future Mini
SECURED BORROWINGS, Future Minimum Principal Payments on Secured Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Secured Borrowings [Abstract] | |||
Repayment of debt | $ 326,909 | $ 448,346 | $ 791,385 |
Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Repayment of debt | 154,300 | ||
Future Minimum Principal Payments [Abstract] | |||
2,018 | 309,914 | ||
2,019 | 169,230 | ||
2,020 | 187,184 | ||
2,021 | 152,497 | ||
2,022 | 174,436 | ||
Thereafter | 1,065,630 | ||
Future minimum principal payments due | $ 2,058,891 |
DERIVATIVES, Derivatives (Detai
DERIVATIVES, Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Derivatives [Abstract] | ||
Fair value of derivative assets | $ 2,643 | $ 1,905 |
Fair value of derivative liabilities | $ 7,344 | 13,281 |
LIBOR [Member] | Minimum [Member] | ||
Derivatives [Abstract] | ||
Term of variable rate | 1 month | |
LIBOR [Member] | Maximum [Member] | ||
Derivatives [Abstract] | ||
Term of variable rate | 3 months | |
Debt with Floating Interest Rates Associated with Aircraft with Fixed Rate Rentals [Member] | ||
Derivatives [Abstract] | ||
Debt | $ 1,100,000 | |
Interest Rate Swap Contracts [Member] | ||
Derivatives [Abstract] | ||
Notional amounts | 700,000 | 800,000 |
Fair value of derivative assets | 2,600 | 1,900 |
Fair value of derivative liabilities | $ 7,300 | $ 13,300 |
DERIVATIVES, Derivative Assets
DERIVATIVES, Derivative Assets (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Instrument | Dec. 31, 2016USD ($) | |
Derivatives [Abstract] | ||
Credit risk adjusted fair market value | $ 2,643 | $ 1,905 |
Interest Rate Swap Contracts [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair market value | $ 2,600 | $ 1,900 |
Designated Derivatives [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 9 | |
Swap contract notional amount | $ 175,552 | |
Credit risk adjusted fair market value | 2,643 | |
Accrued interest | 18 | |
Gain recognized in accumulated comprehensive loss | 2,090 | |
Loss recognized into earnings | $ (16) | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 9 | |
Swap contract notional amount | $ 175,552 | |
Credit risk adjusted fair market value | 2,625 | |
Gain recognized in accumulated comprehensive loss | 2,090 | |
Loss recognized into earnings | $ (16) | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | Minimum [Member] | ||
Derivatives [Abstract] | ||
Maturity date | Nov. 14, 2018 | |
Hedge interest rate | 0.90% | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | Maximum [Member] | ||
Derivatives [Abstract] | ||
Maturity date | Jan. 11, 2023 | |
Hedge interest rate | 4.30% |
DERIVATIVES, Derivative Liabili
DERIVATIVES, Derivative Liabilities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Instrument | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Derivatives [Abstract] | |||
Credit risk adjusted fair market value | $ (7,344) | $ (13,281) | |
Interest expense | 127,782 | 123,161 | $ 145,448 |
Interest Rate Swap Contracts [Member] | |||
Derivatives [Abstract] | |||
Credit risk adjusted fair market value | $ (7,300) | $ (13,300) | |
Designated Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 7 | ||
Swap contract notional amount | $ 206,447 | ||
Credit risk adjusted fair market value | (2,848) | ||
Accrued interest | (113) | ||
Loss recognized in accumulated comprehensive loss, net of tax | (2,393) | ||
Gain recognized into earnings | $ 4 | ||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 7 | ||
Swap contract notional amount | $ 206,447 | ||
Credit risk adjusted fair market value | (2,735) | ||
Loss recognized in accumulated comprehensive loss, net of tax | (2,393) | ||
Gain recognized into earnings | $ 4 | ||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Minimum [Member] | |||
Derivatives [Abstract] | |||
Maturity date | Mar. 14, 2018 | ||
Hedge interest rate | 1.98% | ||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Maximum [Member] | |||
Derivatives [Abstract] | |||
Maturity date | Sep. 27, 2025 | ||
Hedge interest rate | 6.22% | ||
Dedesignated Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 4 | ||
Swap contract notional amount | $ 318,747 | ||
Credit risk adjusted fair market value | (4,496) | ||
Accrued interest | (184) | ||
Gain recognized into earnings | 204 | ||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | |||
Derivatives [Abstract] | |||
Loss recognized in accumulated comprehensive loss, net of tax | (4,300) | ||
Interest expense | $ 1,400 | ||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 4 | ||
Swap contract notional amount | $ 318,747 | ||
Credit risk adjusted fair market value | (4,312) | ||
Gain recognized into earnings | $ 204 | ||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Minimum [Member] | |||
Derivatives [Abstract] | |||
Maturity date | Feb. 9, 2018 | ||
Hedge interest rate | 1.69% | ||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Maximum [Member] | |||
Derivatives [Abstract] | |||
Maturity date | Feb. 9, 2019 | ||
Hedge interest rate | 3.47% |
DERIVATIVES, Terminated Derivat
DERIVATIVES, Terminated Derivatives (Details) - Interest Rate Swap Contracts [Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | |
Derivatives [Abstract] | ||
Number of contracts terminated | Contract | 4 | 14 |
Loss associated with terminated contracts | $ (0.6) | $ (2.4) |
Loss recognized into earnings | $ (1.1) |
INCOME TAXES, Income Tax Expens
INCOME TAXES, Income Tax Expense (Benefits) by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Corporation tax rate on trading income | 12.50% | 12.50% | 12.50% |
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | $ 4,300 | $ 1,920 | $ 480 |
Deferred tax (benefit) expense | 7,032 | (9,197) | 4,919 |
Total income tax (benefit) expense | $ 11,332 | (7,277) | 5,399 |
Ireland [Member] | |||
Income Taxes [Abstract] | |||
Corporation tax rate on trading income | 12.50% | ||
Corporation tax rate on non-trading income | 25.00% | ||
Ireland [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | $ 0 | 0 | 33 |
Deferred tax (benefit) expense | 8,710 | (10,812) | 4,558 |
Luxembourg [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | 195 | 145 | 252 |
Australia [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | 4,062 | 1,742 | 138 |
Deferred tax (benefit) expense | (1,743) | 1,615 | 334 |
Other [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | 43 | 33 | 57 |
Deferred tax (benefit) expense | $ 65 | $ 0 | $ 27 |
INCOME TAXES, Net Deferred Tax
INCOME TAXES, Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Abstract] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Deferred Tax Asset [Abstract] | |||
Net operating loss carry forwards | 170,960 | 151,575 | |
Net unrealized losses on derivative instruments | 390 | 1,181 | |
Basis difference on acquisition of GAAM Australian assets | 7,314 | 6,786 | |
Other | 55 | 224 | |
Valuation allowance | (39,484) | (30,524) | |
Total deferred tax asset | 139,235 | 129,242 | |
Deferred Tax Liability [Abstract] | |||
Excess of tax depreciation over book depreciation | (153,447) | (137,249) | |
Book/tax differences identified in connection with GAAM Portfolio acquisition | (412) | (438) | |
Net earnings of non-European Union member subsidiaries | (3,745) | (3,957) | |
Withholding tax on Australian unrepatriated earnings | (1,800) | 0 | |
Total deferred tax liability | (159,404) | (141,644) | |
Deferred tax liability, net | (20,169) | (12,402) | |
Net valuation allowance recorded for net operating losses | $ 8,400 | $ 7,200 | $ 3,400 |
Australia [Member] | |||
Income Taxes [Abstract] | |||
Withholding tax rate | 15.00% |
INCOME TAXES, Reconciliation of
INCOME TAXES, Reconciliation of Statutory to Effective Tax Rate (Details) - EUR (€) € in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Income Tax Expense (Benefit) [Abstract] | ||||
Irish statutory corporate tax rate on trading income | 12.50% | 12.50% | 12.50% | |
Valuation allowances | 59.90% | (19.80%) | 12.00% | |
Equity earnings from Fly-Z/C LP | (0.40%) | 0.20% | (0.50%) | |
Tax impact of repurchased and resold Notes | (0.80%) | 1.30% | (3.20%) | |
Foreign tax rate differentials | (18.40%) | 7.80% | (9.70%) | |
True-up of prior year tax provision | 2.20% | 0.00% | 1.40% | |
Non-taxable gain on debt extinguishment | 0.00% | 0.30% | 0.00% | |
Non-deductible interest expense, transaction fees and expenses | 12.20% | (4.80%) | 6.10% | |
Deductible intra-group interest | 0.00% | 30.90% | 0.00% | |
Unrealized foreign exchange loss on re-valuation of deferred tax balances | 0.50% | (8.60%) | 0.00% | |
Withholding tax | 13.30% | 0.00% | 0.00% | |
Other | 0.30% | 0.20% | 0.50% | |
Effective tax rate | 81.30% | 20.00% | 19.10% | |
Irish Revenue [Member] | ||||
Reconciliation of Income Tax Expense (Benefit) [Abstract] | ||||
Irish statutory corporate tax rate on trading income | 12.50% | |||
Foreign [Member] | Irish Revenue [Member] | ||||
Income Taxes [Abstract] | ||||
Period in which enquiries and/or assessments can be raised by taxing authority after return is submitted | 4 years | |||
Foreign [Member] | Irish Revenue [Member] | Subsequent Event [Member] | ||||
Income Taxes [Abstract] | ||||
Value Added Tax assessment | € 6.1 | |||
Foreign [Member] | Irish Revenue [Member] | Minimum [Member] | ||||
Income Taxes [Abstract] | ||||
Open tax year | 2,013 | |||
Foreign [Member] | Irish Revenue [Member] | Maximum [Member] | ||||
Income Taxes [Abstract] | ||||
Open tax year | 2,017 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
OTHER LIABILITIES [Abstract] | ||
Current tax payable | $ 4,226 | $ 2,036 |
Lease incentive obligation | 20,306 | 24,757 |
Deferred rent | 8,444 | 3,792 |
Refundable deposits | 805 | 350 |
Other | 5,875 | 9,319 |
Total other liabilities | $ 39,656 | $ 40,254 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Nov. 30, 2017 | Jul. 31, 2016 | |
SHAREHOLDERS' EQUITY [Abstract] | |||||
Approved share repurchase program | $ 50 | $ 75 | |||
Shares repurchased (in shares) | 4,274,569 | 3,414,960 | 5,797,673 | ||
Average price per share repurchased (in dollars per share) | $ 13.35 | $ 11.73 | $ 13.89 | ||
Repurchase of shares before commissions and fees | $ 57.1 | $ 40.1 | $ 80.5 | ||
Shares outstanding (in shares) | 27,983,352 | 32,256,440 | |||
Dividends declared and paid per share (in dollars per share) | $ 0 | $ 0 | $ 1 | ||
Dividends declared and paid | $ 0 | $ 0 | $ 42.4 | ||
New shares issued (in shares) | 0 | 0 | |||
Shares issued in connection with RSUs that vested and SARs that were exercised (in shares) | 1,481 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017Installment$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2016$ / sharesshares | Apr. 29, 2010shares | |
2010 Omnibus Incentive Plan [Member] | ||||
Description of Plan [Abstract] | ||||
Number of shares authorized (in shares) | 1,500,000 | 1,500,000 | ||
2010 Omnibus Incentive Plan [Member] | SARs [Member] | ||||
Description of Plan [Abstract] | ||||
Number of equal installments for awards to vest | Installment | 3 | |||
Expiration period | 10 years | |||
Grant Activity [Abstract] | ||||
Outstanding (in shares) | 796,980 | 821,117 | 821,117 | |
Exercisable (in shares) | 796,980 | 821,117 | 821,117 | |
Outstanding (in dollars per share) | $ / shares | $ 12.74 | $ 12.74 | $ 12.74 | |
Exercisable (in dollars per share) | $ / shares | $ 12.74 | $ 12.74 | $ 12.74 | |
Exercised (in shares) | (24,137) | |||
Exercised (in dollars per share) | $ / shares | $ 12.73 | |||
Weighted average remaining contractual life | 3 years 1 month 6 days | |||
Vested (in shares) | (36,075) | |||
Vested (in dollars per share) | $ / shares | $ 12.28 | |||
2010 Omnibus Incentive Plan [Member] | RSUs [Member] | ||||
Description of Plan [Abstract] | ||||
Number of equal installments for awards to vest | Installment | 3 | |||
Expiration period | 10 years | |||
Grant Activity [Abstract] | ||||
Outstanding or unvested (in shares) | 0 | |||
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Expense [Abstract] | ||||
Share-based compensation expense | $ | $ 0.2 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator [Abstract] | |||||||||||
Net income (loss) | $ 7,170 | $ (12,504) | $ 2,880 | $ 5,052 | $ (63,831) | $ 22,942 | $ 4,677 | $ 7,100 | $ 2,598 | $ (29,112) | $ 22,798 |
Less [Abstract] | |||||||||||
Dividends declared and paid to shareholders | 0 | 0 | (41,388) | ||||||||
Dividend equivalents paid to vested RSUs and SARs | 0 | 0 | (1,054) | ||||||||
Net income (loss) attributable to common shareholders | $ 2,598 | $ (29,112) | $ (19,644) | ||||||||
Denominator [Abstract] | |||||||||||
Weighted average shares outstanding-Basic (in shares) | 30,307,357 | 33,239,001 | 41,222,690 | ||||||||
Weighted average shares outstanding-Diluted (in shares) | 30,353,425 | 33,239,001 | 41,315,149 | ||||||||
Basic [Abstract] | |||||||||||
Distributed earnings (in dollars per share) | $ 0 | $ 0 | $ 1 | ||||||||
Undistributed income (excess distribution) (in dollars per share) | 0.09 | (0.88) | (0.48) | ||||||||
Basic earnings (loss) per share (in dollars per share) | $ 0.25 | $ (0.43) | $ 0.09 | $ 0.16 | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | 0.09 | (0.88) | 0.52 |
Diluted [Abstract] | |||||||||||
Distributed earnings (in dollars per share) | 0 | 0 | 1 | ||||||||
Undistributed income (excess distribution) (in dollars per share) | 0.09 | (0.88) | (0.48) | ||||||||
Diluted earnings (loss) per share (in dollars per share) | $ 0.25 | $ (0.43) | $ 0.09 | $ 0.16 | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.09 | $ (0.88) | $ 0.52 |
RSUs [Member] | |||||||||||
Denominator [Abstract] | |||||||||||
Dilutive common equivalent shares (in shares) | 0 | 0 | 7,950 | ||||||||
SARs [Member] | |||||||||||
Denominator [Abstract] | |||||||||||
Dilutive common equivalent shares (in shares) | 46,068 | 0 | 84,509 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2017USD ($)Aircraft | Dec. 31, 2016USD ($)Aircraft | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
Number of aircraft with guaranteed residual value | Aircraft | 3 | |
Term of lease | 12 years | |
Residual value guarantee fees received | $ | $ 6.6 | |
Amortization period for residual value guarantee fees | 12 years | |
Notice period for lessor to exercise rights to residual value guarantee | 11 months | |
Residual value guarantee fees recognized as income | $ | $ 0.6 | |
Number of aircraft committed to be purchased | Aircraft | 1 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 6 Months Ended | 12 Months Ended | ||||
Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2017USD ($)Extension | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Fixed Management Expenses [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Annual fee with related party | $ 5,700,000 | $ 10,700,000 | ||||
Manager [Member] | Origination Fees [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Charges from related party | $ 6,800,000 | $ 8,400,000 | $ 9,200,000 | |||
Manager [Member] | Disposition Fees [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Expenses with related party | 300,000 | 7,500,000 | 15,600,000 | |||
Manager [Member] | Fixed Management Expenses [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Expenses with related party | $ 6,300,000 | 6,300,000 | 8,200,000 | |||
Manager [Member] | Fixed Management Fee [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Adjustment for percentage change in book value of aircraft portfolio during preceding year | 0.30% | |||||
Base amount used to calculate management fee adjustment | $ 2,700,000,000 | |||||
Adjustment for percentage change in book value of aircraft portfolio in excess of base amount | 0.25% | |||||
Number of automatic extensions | Extension | 1 | |||||
Term of extension | 5 years | |||||
Termination notice period | 12 months | |||||
Manager [Member] | Fixed Management Fee [Member] | Minimum [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Charges from related party | $ 5,000,000 | |||||
Manager [Member] | Fixed Management Fee [Member] | Maximum [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Charges from related party | 12,000,000 | |||||
Adjustment increase over $2.7 billion | 2,000,000,000 | |||||
Manager [Member] | Non-Renewal Fee [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Charges from related party | $ 6,000,000 | |||||
Adjustment percentage of excess Management Expenses over threshold | 50.00% | |||||
Manager [Member] | Disposition Fees for ECAF-I Transaction [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Percentage of aggregate gross proceeds from disposition of aircraft | 1.20% | |||||
BBAM [Member] | ||||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||||
2,017 | $ 8,905,000 | |||||
2,018 | 8,792,000 | |||||
2,019 | 8,629,000 | |||||
2,020 | 8,469,000 | |||||
2,021 | 8,249,000 | |||||
Thereafter | 57,803,000 | |||||
Total | 100,847,000 | |||||
BBAM [Member] | Fixed Base Fees [Member] | ||||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||||
2,017 | [1] | 245,000 | ||||
2,018 | [1] | 245,000 | ||||
2,019 | [1] | 245,000 | ||||
2,020 | [1] | 245,000 | ||||
2,021 | [1] | 245,000 | ||||
Thereafter | [1] | 1,470,000 | ||||
Total | [1] | 2,695,000 | ||||
BBAM [Member] | Fixed Administrative Services Fees [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Expenses with related party | $ 13,100,000 | $ 14,600,000 | $ 17,300,000 | |||
BBAM [Member] | Acquisition Fees [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Percentage of purchase price of aircraft purchased | 1.50% | |||||
BBAM [Member] | Disposition Fees [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Percentage of aggregate gross proceeds from disposition of aircraft | 1.50% | 1.50% | ||||
BBAM [Member] | Fixed Administrative Services Fee Under Term Loan [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Monthly fee with related party | $ 10,000 | |||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||||
2,017 | [2] | 472,000 | ||||
2,018 | [2] | 452,000 | ||||
2,019 | [2] | 373,000 | ||||
2,020 | [2] | 288,000 | ||||
2,021 | [2] | 200,000 | ||||
Thereafter | [2] | 134,000 | ||||
Total | [2] | 1,919,000 | ||||
BBAM [Member] | Fixed Administrative Services Fee Under Magellan Acquisition Limited Facility [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Monthly fee with related party | 10,000 | |||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||||
2,017 | [2] | 204,000 | ||||
2,018 | [2] | 204,000 | ||||
2,019 | [2] | 204,000 | ||||
2,020 | [2] | 202,000 | ||||
2,021 | [2] | 192,000 | ||||
Thereafter | [2] | 758,000 | ||||
Total | [2] | 1,764,000 | ||||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Acquisition III Facility [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Monthly fee with related party | 10,000 | |||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||||
2,017 | [2] | 168,000 | ||||
2,018 | [2] | 153,000 | ||||
2,019 | [2] | 144,000 | ||||
2,020 | [2] | 144,000 | ||||
2,021 | [2] | 31,000 | ||||
Thereafter | [2] | 7,000 | ||||
Total | [2] | 647,000 | ||||
BBAM [Member] | Fixed Administrative Agency Fee [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Monthly fee per aircraft with related party | 1,000 | |||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||||
2,017 | [2] | 401,000 | ||||
2,018 | [2] | 362,000 | ||||
2,019 | [2] | 325,000 | ||||
2,020 | [2] | 271,000 | ||||
2,021 | [2] | 262,000 | ||||
Thereafter | [2] | 622,000 | ||||
Total | [2] | 2,243,000 | ||||
BBAM [Member] | Fixed Management Expenses [Member] | ||||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||||
2,017 | [1],[3] | 7,307,000 | ||||
2,018 | [1],[3] | 7,307,000 | ||||
2,019 | [1],[3] | 7,307,000 | ||||
2,020 | [1],[3] | 7,307,000 | ||||
2,021 | [1],[3] | 7,307,000 | ||||
Thereafter | [1],[3] | 54,799,000 | ||||
Total | [1],[3] | $ 91,334,000 | ||||
BBAM [Member] | Servicing Fee for All Other Aircraft [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Percentage of aircraft rent collected | 3.50% | |||||
B&B Air Funding [Member] | BBAM [Member] | Fixed Base Fees [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Monthly fee with related party | $ 150,000 | |||||
B&B Air Funding [Member] | BBAM [Member] | Fixed Administrative Services Fees [Member] | ||||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||||
2,017 | [1] | $ 108,000 | ||||
2,018 | [1] | 69,000 | ||||
2,019 | [1] | 31,000 | ||||
2,020 | [1] | 12,000 | ||||
2,021 | [1] | 12,000 | ||||
Thereafter | [1] | 13,000 | ||||
Total | [1] | 245,000 | ||||
B&B Air Funding [Member] | BBAM [Member] | Fixed Administrative Agency Fee [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Monthly fee with related party | 20,000 | |||||
Charges from related party | $ 750,000 | |||||
Monthly fee per aircraft with related party | $ 1,000 | |||||
B&B Air Funding [Member] | BBAM [Member] | Rent Fee for Aircraft Financed by Securitization Notes [Member] | ||||||
Related Party Transactions [Abstract] | ||||||
Percentage of aircraft rent due | 1.00% | |||||
Percentage of aircraft rent collected | 3.50% | 1.00% | ||||
[1] | Assumes Consumer Price Index ("CPI") rates in effect as of December 31, 2017 remain constant in future periods. | |||||
[2] | Assumes number of aircraft at December 31, 2017 remains constant in future periods. | |||||
[3] | Assumes an automatic extension for one additional term of five years to July 1, 2030. Also assumes net book value of aircraft at December 31, 2017 and Consumer Price Index rates in effect as of December 31, 2017 remain constant in future periods. |
FAIR VALUE MEASUREMENTS, Carryi
FAIR VALUE MEASUREMENTS, Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |||
Aircraft impairment | $ 22,000 | $ 96,122 | $ 66,093 |
Carrying Amount [Member] | Securitization Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 101,551 | 139,741 | |
Carrying Amount [Member] | Nord LB Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 153,176 | 171,509 | |
Carrying Amount [Member] | CBA Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 49,080 | 56,146 | |
Carrying Amount [Member] | Term Loan [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 431,271 | 404,016 | |
Carrying Amount [Member] | Magellan Acquisition Limited Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 331,768 | 0 | |
Carrying Amount [Member] | Fly Acquisition III Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 86,520 | 113,045 | |
Carrying Amount [Member] | Other Aircraft Secured Borrowings [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 905,525 | 980,967 | |
Carrying Amount [Member] | 2020 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 0 | 375,000 | |
Carrying Amount [Member] | 2021 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 325,000 | 325,000 | |
Carrying Amount [Member] | 2024 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 300,000 | 0 | |
Fair Value [Member] | Securitization Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 95,839 | 134,850 | |
Fair Value [Member] | Nord LB Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 153,176 | 171,509 | |
Fair Value [Member] | CBA Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 49,080 | 56,146 | |
Fair Value [Member] | Term Loan [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 431,271 | 406,804 | |
Fair Value [Member] | Magellan Acquisition Limited Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 331,768 | 0 | |
Fair Value [Member] | Fly Acquisition III Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 86,520 | 113,045 | |
Fair Value [Member] | Other Aircraft Secured Borrowings [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 905,525 | 980,967 | |
Fair Value [Member] | 2020 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 0 | 394,219 | |
Fair Value [Member] | 2021 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 339,235 | 340,438 | |
Fair Value [Member] | 2024 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | $ 301,500 | $ 0 |
FAIR VALUE MEASUREMENTS, Asset
FAIR VALUE MEASUREMENTS, Asset and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | $ 2,643 | $ 1,905 |
Derivative liabilities | 7,344 | 13,281 |
Recurring [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 2,643 | 1,905 |
Derivative liabilities | 7,344 | 13,281 |
Recurring [Member] | Level 1 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 2,643 | 1,905 |
Derivative liabilities | 7,344 | 13,281 |
Recurring [Member] | Level 3 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
UNAUDITED QUARTERLY CONDENSED87
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |||||||||||
Total revenues | $ 107,934 | $ 86,219 | $ 79,832 | $ 79,266 | $ 100,600 | $ 85,297 | $ 77,934 | $ 81,208 | $ 353,251 | $ 345,039 | $ 462,397 |
Net income (loss) | $ 7,170 | $ (12,504) | $ 2,880 | $ 5,052 | $ (63,831) | $ 22,942 | $ 4,677 | $ 7,100 | $ 2,598 | $ (29,112) | $ 22,798 |
Earnings (loss) per share - Basic (in dollars per share) | $ 0.25 | $ (0.43) | $ 0.09 | $ 0.16 | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.09 | $ (0.88) | $ 0.52 |
Earnings (loss) per share - Diluted (in dollars per share) | $ 0.25 | $ (0.43) | $ 0.09 | $ 0.16 | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.09 | $ (0.88) | $ 0.52 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] $ in Millions | 2 Months Ended |
Mar. 13, 2018USD ($)AircraftEngine | |
Subsequent Event [Abstract] | |
Number of engines to be acquired on operating leases | Engine | 7 |
Acquisition Credit Facility [Member] | |
Subsequent Event [Abstract] | |
Senior secured debt financing to be provided pursuant to commitment letter | $ | $ 582.2 |
Number of aircraft to be financed with borrowings | 30 |
Two-Year Loan Facility [Member] | |
Subsequent Event [Abstract] | |
Senior secured debt financing to be provided pursuant to commitment letter | $ | $ 145.5 |
Term of loan facility | 2 years |
Five-Year Loan Facility [Member] | |
Subsequent Event [Abstract] | |
Senior secured debt financing to be provided pursuant to commitment letter | $ | $ 436.7 |
Term of loan facility | 5 years |
Warehouse Facility [Member] | |
Subsequent Event [Abstract] | |
Number of aircraft to be financed with borrowings | 4 |
Narrow-Body Aircraft [Member] | |
Subsequent Event [Abstract] | |
Number of aircraft purchased | 1 |
Number of aircraft to be acquired on operating leases | 55 |
A320neo [Member] | |
Subsequent Event [Abstract] | |
Number of aircraft to be acquired, not subject to lease | 20 |
Schedule I - Condensed Financ89
Schedule I - Condensed Financial Information of Parent, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 329,105 | $ 517,964 | $ 275,998 | |
Investment in unconsolidated subsidiary | 8,196 | 7,700 | ||
Other assets, net | 8,970 | 6,568 | ||
Total assets | 3,595,615 | 3,447,009 | ||
Liabilities [Abstract] | ||||
Payable to related parties | 2,084 | 5,042 | ||
Unsecured borrowings, net | 615,922 | 691,390 | ||
Deferred tax liability, net | 30,112 | 19,847 | ||
Total liabilities | 3,051,906 | 2,853,774 | ||
Shareholders' equity | 543,709 | 593,235 | 656,964 | $ 756,254 |
Total liabilities and shareholders' equity | 3,595,615 | 3,447,009 | ||
Fly Leasing Limited [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 157,014 | 229,777 | $ 139,339 | $ 218,538 |
Notes receivable from subsidiaries | 375,477 | 441,451 | ||
Investments in subsidiaries | 985,476 | 912,163 | ||
Investment in unconsolidated subsidiary | 8,196 | 7,700 | ||
Other assets, net | 1,655 | 534 | ||
Total assets | 1,527,818 | 1,591,625 | ||
Liabilities [Abstract] | ||||
Payable to related parties | 223 | 906 | ||
Payable to subsidiaries | 349,585 | 280,034 | ||
Unsecured borrowings, net | 615,922 | 691,390 | ||
Deferred tax liability, net | 3,739 | 1,946 | ||
Accrued and other liabilities | 14,640 | 24,114 | ||
Total liabilities | 984,109 | 998,390 | ||
Shareholders' equity | 543,709 | 593,235 | ||
Total liabilities and shareholders' equity | $ 1,527,818 | $ 1,591,625 |
Schedule I - Condensed Financ90
Schedule I - Condensed Financial Information of Parent, Condensed Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues [Abstract] | |||||||||||
Equity earnings from unconsolidated subsidiary | $ 496 | $ 530 | $ 1,159 | ||||||||
Interest and other income | 1,204 | 1,666 | 2,289 | ||||||||
Total revenues | $ 107,934 | $ 86,219 | $ 79,832 | $ 79,266 | $ 100,600 | $ 85,297 | $ 77,934 | $ 81,208 | 353,251 | 345,039 | 462,397 |
Expense [Abstract] | |||||||||||
Interest expense | 127,782 | 123,161 | 145,448 | ||||||||
Selling, general and administrative | 30,671 | 30,077 | 33,674 | ||||||||
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 17,491 | ||||||||
Total expenses | 339,321 | 381,428 | 434,200 | ||||||||
Net income (loss) before provision (benefit) for income taxes | 13,930 | (36,389) | 28,197 | ||||||||
Provision (benefit) for income taxes | 11,332 | (7,277) | 5,399 | ||||||||
Net income (loss) | $ 7,170 | $ (12,504) | $ 2,880 | $ 5,052 | $ (63,831) | $ 22,942 | $ 4,677 | $ 7,100 | $ 2,598 | $ (29,112) | $ 22,798 |
Weighted average number of shares [Abstract] | |||||||||||
Basic (in shares) | 30,307,357 | 33,239,001 | 41,222,690 | ||||||||
Diluted (in shares) | 30,353,425 | 33,239,001 | 41,315,149 | ||||||||
Earnings (loss) per share [Abstract] | |||||||||||
Basic (in dollars per share) | $ 0.25 | $ (0.43) | $ 0.09 | $ 0.16 | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.09 | $ (0.88) | $ 0.52 |
Diluted (in dollars per share) | $ 0.25 | $ (0.43) | $ 0.09 | $ 0.16 | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.09 | $ (0.88) | $ 0.52 |
Fly Leasing Limited [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Equity earnings (loss) from subsidiaries | $ 35,208 | $ (24,385) | $ 17,065 | ||||||||
Equity earnings from unconsolidated subsidiary | 496 | 530 | 1,159 | ||||||||
Intercompany management fee income | 12,124 | 8,866 | 15,053 | ||||||||
Intercompany interest income | 34,068 | 44,394 | 48,077 | ||||||||
Interest and other income | 809 | 410 | 224 | ||||||||
Total revenues | 82,705 | 29,815 | 81,578 | ||||||||
Expense [Abstract] | |||||||||||
Interest expense | 45,970 | 48,013 | 48,013 | ||||||||
Selling, general and administrative | 12,630 | 11,803 | 12,987 | ||||||||
Loss on modification and extinguishment of debt | 19,655 | 0 | 0 | ||||||||
Total expenses | 78,255 | 59,816 | 61,000 | ||||||||
Net income (loss) before provision (benefit) for income taxes | 4,450 | (30,001) | 20,578 | ||||||||
Provision (benefit) for income taxes | 1,852 | (889) | (2,220) | ||||||||
Net income (loss) | $ 2,598 | $ (29,112) | $ 22,798 | ||||||||
Weighted average number of shares [Abstract] | |||||||||||
Basic (in shares) | 30,307,357 | 33,239,001 | 41,222,690 | ||||||||
Diluted (in shares) | 30,353,425 | 33,239,001 | 41,315,149 | ||||||||
Earnings (loss) per share [Abstract] | |||||||||||
Basic (in dollars per share) | $ 0.09 | $ (0.88) | $ 0.52 | ||||||||
Diluted (in dollars per share) | $ 0.09 | $ (0.88) | $ 0.52 |
Schedule I - Condensed Financ91
Schedule I - Condensed Financial Information of Parent, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net income (loss) | $ 7,170 | $ (12,504) | $ 2,880 | $ 5,052 | $ (63,831) | $ 22,942 | $ 4,677 | $ 7,100 | $ 2,598 | $ (29,112) | $ 22,798 |
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||||||||||
Equity earnings from unconsolidated subsidiary | (496) | (530) | (1,159) | ||||||||
Deferred income taxes | 7,032 | (9,197) | 4,919 | ||||||||
Share-based compensation | 0 | 0 | 195 | ||||||||
Loss on modification and extinguishment of debt | 23,309 | 9,246 | 17,491 | ||||||||
Changes in operating assets and liabilities [Abstract] | |||||||||||
Other assets | (2,599) | (1,134) | 137 | ||||||||
Payable to related parties | (10,126) | (17,163) | (19,407) | ||||||||
Net cash flows provided by operating activities | 179,053 | 152,764 | 218,546 | ||||||||
Cash Flows from Investing Activities [Abstract] | |||||||||||
Net cash flows (used in) provided by investing activities | (430,413) | (123,271) | 480,537 | ||||||||
Cash Flows from Financing Activities [Abstract] | |||||||||||
Proceeds from issuance of unsecured borrowings | 295,150 | 0 | 0 | ||||||||
Repayment of unsecured borrowings | (375,000) | 0 | 0 | ||||||||
Debt modification and extinguishment costs | (17,396) | (3,153) | (3,623) | ||||||||
Debt issuance costs | (1,464) | (2,552) | (933) | ||||||||
Shares repurchased | (57,286) | (40,257) | (81,432) | ||||||||
Dividends paid | 0 | 0 | (41,388) | ||||||||
Dividend equivalents | 0 | 0 | (1,054) | ||||||||
Net cash flows provided by (used in) financing activities | 95,658 | 131,747 | (724,427) | ||||||||
Cash and cash equivalents at beginning of period | 517,964 | 275,998 | 517,964 | 275,998 | |||||||
Cash and cash equivalents at end of period | 329,105 | 517,964 | 329,105 | 517,964 | 275,998 | ||||||
Cash paid during the year for [Abstract] | |||||||||||
Taxes | 2,155 | 460 | 384 | ||||||||
Fly Leasing Limited [Member] | |||||||||||
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net income (loss) | 2,598 | (29,112) | 22,798 | ||||||||
Adjustments to reconcile net income (loss) to net cash flows provided by operating activities: | |||||||||||
Equity earnings (loss) from subsidiaries | (35,208) | 24,385 | (17,065) | ||||||||
Equity earnings from unconsolidated subsidiary | (496) | (530) | (1,159) | ||||||||
Deferred income taxes | 1,852 | (12,139) | (2,276) | ||||||||
Share-based compensation | 0 | 0 | 195 | ||||||||
Amortization of debt discount and other | 1,931 | 1,982 | 1,982 | ||||||||
Loss on modification and extinguishment of debt | 19,655 | 0 | 0 | ||||||||
Changes in operating assets and liabilities [Abstract] | |||||||||||
Payable to subsidiaries | 6,144 | (162,229) | 132,843 | ||||||||
Other assets | (1,121) | 476 | 1,060 | ||||||||
Payable to related parties | (683) | 856 | (867) | ||||||||
Accrued and other liabilities | (9,478) | 12,622 | 483 | ||||||||
Net cash flows provided by operating activities | (14,806) | (163,689) | 137,994 | ||||||||
Cash Flows from Investing Activities [Abstract] | |||||||||||
Distributions received from subsidiaries | 0 | 0 | 53,500 | ||||||||
Capital contributions to unconsolidated subsidiary | 0 | 0 | (2,009) | ||||||||
Notes receivable from subsidiaries | (48,335) | (40,172) | (650,083) | ||||||||
Notes payable to subsidiaries | 144,718 | 334,556 | 505,273 | ||||||||
Net cash flows (used in) provided by investing activities | 96,383 | 294,384 | (93,319) | ||||||||
Cash Flows from Financing Activities [Abstract] | |||||||||||
Proceeds from issuance of unsecured borrowings | 295,150 | 0 | 0 | ||||||||
Repayment of unsecured borrowings | (375,000) | 0 | 0 | ||||||||
Debt modification and extinguishment costs | (16,287) | 0 | 0 | ||||||||
Debt issuance costs | (917) | 0 | 0 | ||||||||
Shares repurchased | (57,286) | (40,257) | (81,432) | ||||||||
Dividends paid | 0 | 0 | (41,388) | ||||||||
Dividend equivalents | 0 | 0 | (1,054) | ||||||||
Net cash flows provided by (used in) financing activities | (154,340) | (40,257) | (123,874) | ||||||||
Net increase (decrease) in cash and cash equivalents | (72,763) | 90,438 | (79,199) | ||||||||
Cash and cash equivalents at beginning of period | $ 229,777 | $ 139,339 | 229,777 | 139,339 | 218,538 | ||||||
Cash and cash equivalents at end of period | $ 157,014 | $ 229,777 | 157,014 | 229,777 | 139,339 | ||||||
Cash paid during the year for [Abstract] | |||||||||||
Interest | 41,883 | 46,032 | 46,723 | ||||||||
Taxes | 0 | 0 | 0 | ||||||||
Noncash Investing Activities [Abstract] | |||||||||||
Capital contribution to subsidiaries | 109,391 | 207,340 | 17,246 | ||||||||
Distributions from subsidiaries | $ 76,451 | $ 55,039 | $ 711 |