Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2019 | |
Cover [Abstract] | |
Entity Registrant Name | Fly Leasing Ltd |
Entity Central Index Key | 0001407298 |
Current Fiscal Year End Date | --12-31 |
Document Type | 6-K |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2019 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 432,747 | $ 180,211 |
Restricted cash and cash equivalents | 88,857 | 100,869 |
Rent receivables | 15,625 | 9,307 |
Investment in finance lease, net | 11,941 | 12,822 |
Flight equipment held for sale, net | 152,794 | 259,644 |
Flight equipment held for operating lease, net | 2,752,831 | 3,228,018 |
Maintenance rights | 256,404 | 298,207 |
Deferred tax asset, net | 17,552 | 6,505 |
Fair value of derivative assets | 6,656 | 5,929 |
Other assets, net | 134,207 | 124,960 |
Total assets | 3,869,614 | 4,226,472 |
Liabilities | ||
Accounts payable and accrued liabilities | 35,202 | 23,146 |
Rentals received in advance | 15,434 | 21,322 |
Payable to related parties | 7,038 | 4,462 |
Security deposits | 46,324 | 60,097 |
Maintenance payment liability, net | 252,099 | 292,586 |
Unsecured borrowings, net | 618,971 | 617,664 |
Secured borrowings, net | 1,915,435 | 2,379,869 |
Deferred tax liability, net | 59,256 | 36,256 |
Fair value of derivative liabilities | 37,618 | 8,558 |
Other liabilities | 83,465 | 80,402 |
Total liabilities | 3,070,842 | 3,524,362 |
Shareholders' equity | ||
Common shares, $0.001 par value; 499,999,900 shares authorized; 30,898,410 and 32,650,019 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively | 31 | 33 |
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 516,255 | 549,123 |
Retained earnings | 305,234 | 154,347 |
Accumulated other comprehensive loss, net | (22,748) | (1,393) |
Total shareholders' equity | 798,772 | 702,110 |
Total liabilities and shareholders' equity | $ 3,869,614 | $ 4,226,472 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
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) | 30,898,410 | 32,650,019 |
Common shares, shares outstanding (in shares) | 30,898,410 | 32,650,019 |
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 (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Operating lease revenue | $ 94,706 | $ 328,581 | ||
Operating lease revenue | $ 99,347 | $ 285,747 | ||
Finance lease revenue | 153 | 469 | ||
Finance lease revenue | 167 | 512 | ||
Equity earnings (loss) from unconsolidated subsidiary | 2,617 | 136 | 2,727 | (110) |
Gain on sale of aircraft | 38,934 | 2,579 | 82,632 | 5,524 |
Interest and other income | 2,624 | 2,337 | 6,361 | 4,321 |
Total revenues | 139,034 | 104,566 | 420,770 | 295,994 |
Expenses | ||||
Depreciation | 33,881 | 36,569 | 108,769 | 104,197 |
Interest expense | 33,580 | 37,472 | 107,198 | 104,039 |
Selling, general and administrative | 8,013 | 7,719 | 26,173 | 22,698 |
Loss (gain) on derivatives | 2,537 | (2,095) | 2,809 | (2,615) |
Loss on extinguishment of debt | 1,620 | 560 | 5,330 | 1,458 |
Maintenance and other costs | 623 | 323 | 2,846 | 2,037 |
Total expenses | 80,254 | 80,548 | 253,125 | 231,814 |
Net income before provision for income taxes | 58,780 | 24,018 | 167,645 | 64,180 |
Provision for income taxes | 7,076 | 3,278 | 16,926 | 9,466 |
Net income | $ 51,704 | $ 20,740 | $ 150,719 | $ 54,714 |
Weighted average number of shares: | ||||
Basic (in shares) | 30,873,297 | 30,302,193 | 31,846,836 | 28,764,793 |
Diluted (in shares) | 30,987,394 | 30,381,248 | 31,954,204 | 28,818,464 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 1.67 | $ 0.68 | $ 4.73 | $ 1.90 |
Diluted (in dollars per share) | $ 1.67 | $ 0.68 | $ 4.72 | $ 1.90 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||||
Consolidated Statements of Comprehensive Income (Unaudited) [Abstract] | |||||||
Net income | $ 51,704 | $ 20,740 | $ 150,719 | $ 54,714 | |||
Other comprehensive income, net of tax | |||||||
Change in fair value of derivatives, net of deferred tax | [2] | (2,917) | [1] | 2,624 | [1] | (23,968) | 11,425 |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [3] | 2,117 | [1] | 1,035 | [1] | 2,781 | 2,799 |
Comprehensive income | $ 50,904 | $ 24,399 | $ 129,532 | $ 68,938 | |||
[1] | See Note 10 to Notes to Consolidated Financial Statements. | ||||||
[2] | The associated deferred tax benefit was $0.5 million and $4.4 million for the three and nine months ended September 30, 2019, respectively. The associated deferred tax expense was $0.3 million and $1.5 million for the three and nine months ended September 30, 2018, respectively. | ||||||
[3] | The associated deferred tax expense was $0.3 million and $0.4 million for the three and nine months ended September 30, 2019, respectively. The associated deferred tax expense was $0.1 million and $0.2 million for the three and nine months ended September 30, 2018, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Other comprehensive income, net of tax | ||||||||
Change in fair value of derivatives, deferred tax expense (benefit) | $ (500,000) | $ (2,500,000) | $ (1,300,000) | $ 300,000 | $ 1,000,000 | $ 200,000 | $ (4,400,000) | $ 1,500,000 |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 300,000 | $ 100,000 | $ 37,000 | $ 100,000 | $ 100,000 | $ 100,000 | $ 400,000 | $ 200,000 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Manager Shares [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net [Member] | Total | ||
Beginning balance at Dec. 31, 2017 | $ 0 | $ 28 | $ 479,637 | $ 68,624 | $ (4,580) | $ 543,709 | ||
Beginning balance (in shares) at Dec. 31, 2017 | 100 | 27,983,352 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 0 | $ 0 | 0 | 9,630 | 0 | 9,630 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 1,451 | 1,451 | |
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 | 722 | 722 | |
Ending balance at Mar. 31, 2018 | $ 0 | $ 28 | 479,637 | 78,254 | (2,407) | 555,512 | ||
Ending balance (in shares) at Mar. 31, 2018 | 100 | 27,983,352 | ||||||
Beginning balance at Dec. 31, 2017 | $ 0 | $ 28 | 479,637 | 68,624 | (4,580) | $ 543,709 | ||
Beginning balance (in shares) at Dec. 31, 2017 | 100 | 27,983,352 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares repurchased (in shares) | 0 | |||||||
Net income | $ 54,714 | |||||||
Net change in the fair value of derivatives, net of deferred tax | [2] | 11,425 | ||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [3] | 2,799 | ||||||
Ending balance at Sep. 30, 2018 | $ 0 | $ 33 | 549,123 | 123,338 | 9,644 | 682,138 | ||
Ending balance (in shares) at Sep. 30, 2018 | 100 | 32,650,019 | ||||||
Beginning balance at Mar. 31, 2018 | $ 0 | $ 28 | 479,637 | 78,254 | (2,407) | 555,512 | ||
Beginning balance (in shares) at Mar. 31, 2018 | 100 | 27,983,352 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 0 | $ 0 | 0 | 24,344 | 0 | 24,344 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 7,350 | 7,350 | |
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 | 1,042 | 1,042 | |
Ending balance at Jun. 30, 2018 | $ 0 | $ 28 | 479,637 | 102,598 | 5,985 | $ 588,248 | ||
Ending balance (in shares) at Jun. 30, 2018 | 100 | 27,983,352 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares repurchased (in shares) | 0 | |||||||
Shares issued in connection with AirAsia transactions | $ 0 | $ 5 | 69,486 | 0 | 0 | $ 69,491 | ||
Shares issued in connection with AirAsia transactions (in shares) | 0 | 4,666,667 | ||||||
Net income | $ 0 | $ 0 | 0 | 20,740 | 0 | 20,740 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 2,624 | 2,624 | [2] |
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 | 1,035 | 1,035 | [3] |
Ending balance at Sep. 30, 2018 | $ 0 | $ 33 | 549,123 | 123,338 | 9,644 | 682,138 | ||
Ending balance (in shares) at Sep. 30, 2018 | 100 | 32,650,019 | ||||||
Beginning balance at Dec. 31, 2018 | $ 0 | $ 33 | 549,123 | 154,347 | (1,393) | 702,110 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 100 | 32,650,019 | ||||||
Reclassification from prior period losses into other comprehensive loss due to adoption of new accounting guidance, net of deferred tax of $0.1 million at Dec. 31, 2018 | $ 0 | $ 0 | 0 | 168 | (168) | 0 | ||
Adjusted beginning balance at Dec. 31, 2018 | 0 | 33 | 549,123 | 154,515 | (1,561) | 702,110 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares repurchased | $ 0 | $ (1) | (2,694) | 0 | 0 | (2,695) | ||
Shares repurchased (in shares) | 0 | (197,592) | ||||||
Net income | $ 0 | $ 0 | 0 | 44,965 | 0 | 44,965 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (6,938) | (6,938) | |
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 | 461 | 461 | |
Ending balance at Mar. 31, 2019 | $ 0 | $ 32 | 546,429 | 199,480 | (8,038) | 737,903 | ||
Ending balance (in shares) at Mar. 31, 2019 | 100 | 32,452,427 | ||||||
Beginning balance at Dec. 31, 2018 | $ 0 | $ 33 | 549,123 | 154,347 | (1,393) | 702,110 | ||
Beginning balance (in shares) at Dec. 31, 2018 | 100 | 32,650,019 | ||||||
Reclassification from prior period losses into other comprehensive loss due to adoption of new accounting guidance, net of deferred tax of $0.1 million at Dec. 31, 2018 | $ 0 | $ 0 | 0 | 168 | (168) | 0 | ||
Adjusted beginning balance at Dec. 31, 2018 | 0 | 33 | 549,123 | 154,515 | (1,561) | $ 702,110 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued in connection with SARs exercised (in shares) | 258,828 | |||||||
Shares repurchased (in shares) | (2,010,437) | |||||||
Net income | $ 150,719 | |||||||
Net change in the fair value of derivatives, net of deferred tax | [2] | (23,968) | ||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [3] | 2,781 | ||||||
Ending balance at Sep. 30, 2019 | $ 0 | $ 31 | 516,255 | 305,234 | (22,748) | 798,772 | ||
Ending balance (in shares) at Sep. 30, 2019 | 100 | 30,898,410 | ||||||
Beginning balance at Mar. 31, 2019 | $ 0 | $ 32 | 546,429 | 199,480 | (8,038) | 737,903 | ||
Beginning balance (in shares) at Mar. 31, 2019 | 100 | 32,452,427 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued in connection with SARs exercised | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||
Shares issued in connection with SARs exercised (in shares) | 0 | 56,218 | ||||||
Shares repurchased | $ 0 | $ (1) | (24,379) | 0 | 0 | (24,380) | ||
Shares repurchased (in shares) | 0 | (1,470,353) | ||||||
Net income | $ 0 | $ 0 | 0 | 54,050 | 0 | 54,050 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (14,113) | (14,113) | |
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 | 203 | 203 | |
Ending balance at Jun. 30, 2019 | $ 0 | $ 31 | 522,050 | 253,530 | (21,948) | 753,663 | ||
Ending balance (in shares) at Jun. 30, 2019 | 100 | 31,038,292 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Shares issued in connection with SARs exercised | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | ||
Shares issued in connection with SARs exercised (in shares) | 0 | 202,610 | 202,610 | |||||
Shares repurchased | $ 0 | $ 0 | (5,795) | 0 | 0 | $ (5,795) | ||
Shares repurchased (in shares) | 0 | (342,492) | (342,492) | |||||
Net income | $ 0 | $ 0 | 0 | 51,704 | 0 | $ 51,704 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (2,917) | (2,917) | [2] |
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 | 2,117 | 2,117 | [3] |
Ending balance at Sep. 30, 2019 | $ 0 | $ 31 | $ 516,255 | $ 305,234 | $ (22,748) | $ 798,772 | ||
Ending balance (in shares) at Sep. 30, 2019 | 100 | 30,898,410 | ||||||
[1] | See Note 10 to Notes to Consolidated Financial Statements. | |||||||
[2] | The associated deferred tax benefit was $0.5 million and $4.4 million for the three and nine months ended September 30, 2019, respectively. The associated deferred tax expense was $0.3 million and $1.5 million for the three and nine months ended September 30, 2018, respectively. | |||||||
[3] | The associated deferred tax expense was $0.3 million and $0.4 million for the three and nine months ended September 30, 2019, respectively. The associated deferred tax expense was $0.1 million and $0.2 million for the three and nine months ended September 30, 2018, respectively. |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Unaudited) (Parenthetical) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Consolidated Statement of Shareholders' Equity (Unaudited) [Abstract] | |
Reclassification from prior period losses into other comprehensive loss due to adoption of new accounting guidance, deferred tax | $ 100,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 150,719 | $ 54,714 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | ||
Finance lease revenue | (469) | |
Finance lease revenue | (512) | |
Equity (earnings) loss from unconsolidated subsidiary | (2,727) | 110 |
Gain on sale of aircraft | (82,632) | (5,524) |
Depreciation | 108,769 | 104,197 |
Amortization of debt discounts and debt issuance costs | 7,786 | 6,399 |
Amortization of other comprehensive income into interest expense | 0 | 3,026 |
Amortization of lease incentives and other items | 4,843 | 8,374 |
Loss on extinguishment of debt | 5,330 | 1,458 |
Unrealized foreign exchange gain | (449) | (481) |
Provision for deferred income taxes | 15,963 | 9,637 |
Loss (gain) on derivative instruments | 3,312 | (4,847) |
Security deposits and maintenance payment liability recognized into earnings | (26,145) | (11,846) |
Distributions from unconsolidated subsidiary | 2,727 | 2,075 |
Cash receipts from maintenance rights | 1,741 | 3,013 |
Changes in operating assets and liabilities: | ||
Rent receivables | (10,995) | (5,665) |
Other assets | (2,553) | (3,835) |
Payable to related parties | 2,576 | (11,159) |
Accounts payable, accrued liabilities and other liabilities | 12,468 | 20,161 |
Net cash flows provided by operating activities | 190,264 | 169,295 |
Cash Flows from Investing Activities | ||
Distributions from unconsolidated subsidiary | 2,639 | 1,874 |
Rent received from finance lease | 1,350 | 1,350 |
Net payments for derivative settlements | (512) | 0 |
Investment income from equity certificates | 934 | 0 |
Purchase of equity certificates | (7,425) | 0 |
Purchase of flight equipment | (114,826) | (617,370) |
Deposit on aircraft purchases | 0 | (299,945) |
Proceeds from sale of aircraft, net | 651,488 | 113,829 |
Capitalized interest on Portfolio B orderbook | (3,671) | 0 |
Payments for aircraft improvement | (3,059) | (170) |
Payments for lessor maintenance obligations | (1,843) | (8,229) |
Net cash flows provided by (used in) investing activities | 525,075 | (808,661) |
Cash Flows from Financing Activities | ||
Security deposits received | 1,169 | 10,907 |
Security deposits returned | (1,546) | (6,224) |
Maintenance payment liability receipts | 48,631 | 59,611 |
Maintenance payment liability disbursements | (14,975) | (8,902) |
Net swap termination proceeds | 0 | 1,136 |
Debt extinguishment costs | (194) | 436 |
Debt issuance costs | (342) | (2,216) |
Proceeds from secured borrowings | 0 | 705,201 |
Repayment of secured borrowings | (474,659) | (328,595) |
Net proceeds from issuance of shares | 0 | 19,394 |
Shares repurchased | (32,844) | 0 |
Net cash flows (used in) provided by financing activities | (474,760) | 450,748 |
Effect of exchange rate changes on unrestricted and restricted cash and cash equivalents | (55) | (61) |
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | 240,524 | (188,679) |
Unrestricted and restricted cash and cash equivalents at beginning of period | 281,080 | 456,815 |
Unrestricted and restricted cash and cash equivalents at end of period | 521,604 | 268,136 |
Reconciliation to Consolidated Balance Sheets: | ||
Cash and cash equivalents at end of period | 432,747 | 180,078 |
Restricted cash and cash equivalents | 88,857 | 88,058 |
Unrestricted and restricted cash and cash equivalents at end of period | $ 521,604 | $ 268,136 |
ORGANIZATION
ORGANIZATION | 9 Months Ended |
Sep. 30, 2019 | |
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 Fly 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 it were organized under the laws of Ireland . In accordance with Fly’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 Fly’s amended and restated bye-laws, the Manager Shares have the right to appoint the nearest whole number of directors to Fly 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 Fly’s amended and restated bye-laws, have no voting rights . |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2019 | |
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. Fly 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, the Company consolidates 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’s interim financial statements reflect all normally recurring adjustments that are necessary to fairly state the results for the interim periods presented. Certain information and footnote disclosures required by U.S. GAAP for complete annual financial statements have been omitted and, therefore, the Company’s interim financial statements should be read in conjunction with its Annual Report on Form 20-F for the year ended December 31, 2018, filed with the SEC on March 12, 2019 (the “2018 Annual Report”). The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of those for a full fiscal year. The Company has one operating and reportable segment which is aircraft and aircraft equipment leasing. Certain amounts in prior period consolidated financial statements have been reclassified to conform to the current period presentation. 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. Despite management’s best efforts to accurately estimate such amounts, actual results could differ from those estimates . NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (the “FASB”) issued its new lease guidance, ASU 2016-02, Leases (Topic 842) In July 2018, the FASB issued new guidance to provide entities with relief from the costs of implementing certain aspects of ASU 2016-02, Leases (Topic 842) The timing and pattern of transfer for the non-lease component and the associated lease component are the same; and The stand-alone lease component would be classified as an operating lease if accounted for separately. The Company adopted the guidance effective January 1, 2019 and elected the practical expedients and transition relief, which does not require the Company to restate comparative periods. Accordingly, the adoption did not result in any adjustment to the Company’s consolidated balance sheets, results of operations or cash flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815). In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; The policy for timing of transfers between levels; and The valuation processes for Level 3 fair value measurements. The following disclosure requirements were added to Topic 820: The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements at the end of the reporting period; and The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for fiscal years (including interim periods) beginning after December 15, 2019, and early adoption will be permitted. The Company is currently evaluating the impact of ASU 2018-13 and will adopt the guidance effective January 1, 2020. |
SUPPLEMENTAL DISCLOSURE TO CONS
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS | 9 Months Ended |
Sep. 30, 2019 | |
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 Nine months ended September 30, 2019 September 30, 2018 (Dollars in thousands) Cash paid during the period for: Interest $ 88,043 $ 81,947 Taxes 163 3,893 Noncash Activities: Security deposits applied to rent receivables 3,224 — Maintenance payment liability applied to rent receivables, maintenance rights and other liabilities 4,088 7,574 Other liabilities applied to maintenance payment liability and security deposits 2,457 1,140 Noncash investing activities: Aircraft improvement 4,940 8,257 Noncash activities in connection with purchase of flight equipment 11,807 75,638 Noncash activities in connection with sale of flight equipment 15,711 2,693 |
INVESTMENT IN FINANCE LEASE
INVESTMENT IN FINANCE LEASE | 9 Months Ended |
Sep. 30, 2019 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
INVESTMENT IN FINANCE LEASE | 4. INVESTMENT IN FINANCE LEASE At September 30, 2019 and December 31, 2018, the Company had one investment in finance lease, which had an implicit interest rate of 5%. During each of the three months ended September 30, 2019 and 2018, the Company recognized finance lease revenue totaling $0.2 million. During each of the nine months ended September 30, 2019 and 2018, the Company recognized finance lease revenue totaling $0.5 million. The Company’s net investment in finance lease consisted of the following (dollars in thousands): September 30, 2019 December 31, 2018 Total minimum lease payments receivable $ 10,050 $ 11,400 Estimated unguaranteed residual value of leased asset 4,227 4,227 Unearned finance income (2,336 ) (2,805 ) Net Investment in Finance Lease $ 11,941 $ 12,822 Presented below are the contracted future minimum rental payments due under the non-cancellable finance lease, as of September 30, 2019 (Dollars in thousands) October 1 through December 31, 2019 $ 450 Year ending December 31, 2020 1,800 2021 1,800 2022 1,800 2023 1,800 2024 1,800 Thereafter 600 Future minimum rental payments under finance lease $ 10,050 Presented below are the contracted future minimum rental payments due under the non-cancellable finance lease, as of December 31, 2018. Year ending December 31, (Dollars in thousands) 2019 $ 1,800 2020 1,800 2021 1,800 2022 1,800 2023 1,800 Thereafter 2,400 Future minimum rental payments under finance lease $ 11,400 |
FLIGHT EQUIPMENT HELD FOR SALE
FLIGHT EQUIPMENT HELD FOR SALE | 9 Months Ended |
Sep. 30, 2019 | |
FLIGHT EQUIPMENT HELD FOR SALE [Abstract] | |
FLIGHT EQUIPMENT HELD FOR SALE | 5. FLIGHT EQUIPMENT HELD FOR SALE At December 31, 2018, the Company had 12 aircraft classified as flight equipment held for sale, including nine aircraft contracted to be sold to Horizon Aircraft Finance I Limited and Horizon Aircraft Finance I LLC (together, “Horizon I”) and three aircraft contracted to be sold to another third party. during the On July 2, 2019, the Company agreed to sell 12 aircraft to Horizon Aircraft Finance II Limited and Horizon Aircraft Finance II LLC (together, “Horizon II”) for an aggregate base purchase price of approximately $359.6 million, subject to adjustment based on rents and maintenance reserves in respect of the aircraft (the “Horizon II Transaction”). The Company classified these aircraft as flight equipment held for sale as of June 30, 2019. The Company delivered seven of these aircraft to Horizon II during the third quarter of 2019 and four additional aircraft subsequent to September 30, 2019. The Company expects to deliver the last aircraft during the fourth quarter of 2019. During the third quarter of 2019, the Company agreed to sell one additional aircraft and classified this aircraft as flight equipment held for sale. At September 30, 2019 , the Company had a total of six aircraft classified as flight equipment held for sale. During the nine months ended September 30, 2019, the Company sold a total of 19 aircraft |
FLIGHT EQUIPMENT HELD FOR OPERA
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET | 9 Months Ended |
Sep. 30, 2019 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET [Abstract] | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET | 6. FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET As of September 30, 2019, the Company had 84 aircraft and seven engines held for operating lease on lease to 40 lessees in 21 countries . As of December 31, 2018 , the Company had 100 aircraft and seven engines held for operating lease on lease to 43 lessees in 24 countries. During the nine months ended September 30, 2019, the Company capitalized $89.8 million of flight equipment purchased. million of flight equipment purchased. During the nine months ended September 30, 2019, the Company sold six aircraft held for operating lease and recognized an aggregate gain on sale of aircraft of $14.8 m illion . During the , the Company sold aircraft held for operating lease and recognized an aggregate gain on sale of aircraft of $ million. No aircraft impairment was recognized during the nine months ended September 30, 2019 or 2018. Flight equipment held for operating lease, net, consists of the following (dollars in thousands): September 30, 2019 December 31, 2018 Cost $ 3,437,466 $ 3,900,938 Accumulated depreciation (684,635 ) (672,920 ) Flight equipment held for operating lease, net $ 2,752,831 $ 3,228,018 The Company capitalized $8.0 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): September 30, 2019 December 31, 2018 Europe: Spain $ 163,253 6 % $ 168,534 5 % United Kingdom 138,820 5 % 169,763 5 % Other 219,929 8 % 265,554 9 % Europe — Total 522,002 19 % 603,851 19 % Asia and South Pacific: India 573,904 21 % 690,193 21 % Malaysia 392,603 14 % 394,441 12 % Philippines 267,693 10 % 276,237 9 % Indonesia 222,507 8 % 296,390 9 % China 170,893 6 % 177,393 5 % Thailand 17,166 1 % 126,347 4 % Other 36,491 1 % 34,983 2 % Asia and South Pacific — Total 1,681,257 61 % 1,995,984 62 % Mexico, South and Central America — Total 38,280 1 % 58,202 2 % North America: United States 120,733 4 % 126,498 4 % Other 24,603 1 % 49,320 1 % North America — Total 145,336 5 % 175,818 5 % Middle East and Africa: Ethiopia 305,557 11 % 312,977 10 % Other 22,007 1 % 81,186 2 % Middle East and Africa — Total 327,564 12 % 394,163 12 % Off-lease 38,392 2 % — — Total flight equipment held for operating lease, net $ 2,752,831 100 % $ 3,228,018 100 % The distribution of operating lease revenue by geographic region for the three months ended September 30, 2019 and 2018 is as follows (dollars in thousands): Three months ended September 30, 2019 September 30, 2018 Europe: Spain $ 4,344 5 % $ 4,344 4 % United Kingdom 6,833 7 % 8,098 8 % Other 8,439 9 % 10,437 11 % Europe — Total 19,616 21 % 22,879 23 % Asia and South Pacific: India 19,660 21 % 18,549 19 % Malaysia 13,714 14 % 6,975 7 % Philippines 8,518 9 % 9,589 10 % Indonesia 7,545 8 % 7,433 7 % China 5,650 6 % 5,652 6 % Thailand 3,074 3 % 5,301 5 % Other 607 1 % 668 1 % Asia and South Pacific — Total 58,768 62 % 54,167 55 % Mexico, South and Central America — Total 1,036 1 % 2,157 2 % North America: United States 4,103 4 % 7,266 7 % Other 1,054 1 % 1,559 2 % North America — Total 5,157 5 % 8,825 9 % Middle East and Africa: Ethiopia 7,505 8 % 7,504 8 % Other 2,624 3 % 3,815 3 % Middle East and Africa — Total 10,129 11 % 11,319 11 % Total Operating Lease Revenue $ 94,706 100 % $ 99,347 100 % The distribution of operating lease revenue by geographic region for the nine months ended September 30, 2019 and 2018 is as follows (dollars in thousands): Nine months ended September 30, 2019 September 30, 2018 Europe: Spain $ 13,034 4 % $ 12,922 5 % United Kingdom 26,146 8 % 23,222 8 % Other 26,197 8 % 32,590 11 % Europe — Total 65,377 20 % 68,734 24 % Asia and South Pacific: India 85,015 26 % 66,353 23 % Malaysia 40,847 12 % 13,128 5 % Philippines 25,816 8 % 24,973 8 % Indonesia 26,101 8 % 21,598 8 % China 18,221 6 % 16,958 6 % Thailand 13,253 4 % 7,224 3 % Other 2,389 1 % 2,759 1 % Asia and South Pacific — Total 211,642 65 % 152,993 54 % Mexico, South and Central America — Total 4,391 1 % 9,325 3 % North America: United States 12,263 4 % 16,075 6 % Other 4,177 1 % 4,682 1 % North America — Total 16,440 5 % 20,757 7 % Middle East and Africa: Ethiopia 22,514 7 % 22,514 8 % Other 8,217 2 % 11,424 4 % Middle East and Africa — Total 30,731 9 % 33,938 12 % Total Operating Lease Revenue $ 328,581 100 % $ 285,747 100 % In the nine months ended September 30, 2019, the Company did not have any customers that accounted for 10% or more of total operating lease revenue. In each of the three months ended September 30, 2019 and 2018, and in the nine months ended , the Company had one customer (Air India) that accounted for 10% or more of total operating lease revenue. As of September 30, 2019, the Company had , on non-accrual status, as the Company had determined that it was not probable that the Company would receive the economic benefits of the leases, principally due to (i) the lessees’ failure to pay rent and overhaul payments and (ii) the Company’s evaluation of the lessees’ payment history. During the three and nine months ended September 30, 2019, the Company recognized $2.6 million and $9.0 million, respectively, of operating lease revenue from these lessees. End of lease income and amortization of lease incentives recognized during the three and nine months ended September 30, 2019 and 2018 are as follows (dollars in thousands): Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (Dollars in thousands) End of lease income $ — $ 3,072 $ 30,387 $ 16,069 Amortization of lease incentives (1,402 ) (2,480 ) (4,353 ) (7,124 ) As of September 30, 2019 and December 31, 2018, the weighted average remaining lease term of the Company’s aircraft held for operating lease was 5.0 years and 5.9 years, respectively. Leases are entered into with specified lease terms and may provide the lessee with an option to extend the lease term. The Company’s leases do not typically provide for early termination or purchase options. The Company receives lease revenue from flight equipment under operating leases. 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. If the revenue amounts do not meet these criteria, recognition is delayed until the criteria is met. Contingent rents are recognized as revenue when the contingency is resolved. Revenue is not recognized when collection is not reasonably assured. For the three months ended September 30, 2019, the Company recognized $96.1 million of operating lease rental revenue, $16.8 million of which was from leases with variable rates. For the nine months ended September 30, 2019, the Company recognized $302.5 million of operating lease rental revenue, $54.9 million of which was from leases with variable rates. Variable rates are rents that reset based on changes in LIBOR. Presented below are the contracted future minimum rental payments due under non-cancellable operating leases for flight equipment held for operating lease, as of September 30, 2019. For leases that have floating rental rates, the future minimum rental payments assume that LIBOR as of September 30, 2019 is held constant for the duration of the lease. (Dollars in thousands) October 1 through December 31, 2019 $ 83,271 Year ending December 31, 2020 309,754 2021 270,588 2022 223,538 2023 181,768 2024 167,551 Thereafter 384,096 Future minimum rental payments under operating leases $ 1,620,566 Presented below are the contracted future minimum rental payments due under non-cancellable operating leases for flight equipment held for operating lease, as of December 31, 2018. For leases that have floating rental rates, the future minimum rental payments assume that LIBOR as of December 31, 2018 is held constant for the duration of the lease. Year ending December 31, (Dollars in thousands) 2019 $ 403,535 2020 372,432 2021 323,232 2022 272,427 2023 227,535 Thereafter 661,006 Future minimum rental payments under operating leases $ 2,260,167 |
MAINTENANCE RIGHTS
MAINTENANCE RIGHTS | 9 Months Ended |
Sep. 30, 2019 | |
MAINTENANCE RIGHTS [Abstract] | |
MAINTENANCE RIGHTS | 7. MAINTENANCE RIGHTS Changes in maintenance right assets during the nine months ended September 30, 2019 and 2018 are as follows (dollars in thousands): Nine months ended September 30, 2019 September 30, 2018 Maintenance rights, beginning balance $ 298,207 $ 131,299 Acquisitions 36,798 152,930 Capitalized to aircraft improvements (3,661 ) (8,209 ) Maintenance rights settled with retained maintenance payments — (2,369 ) Cash receipts from maintenance rights (1,741 ) (3,013 ) Maintenance rights associated with aircraft sold (73,199 ) — Maintenance rights, ending balance $ 256,404 $ 270,638 |
UNSECURED BORROWINGS
UNSECURED BORROWINGS | 9 Months Ended |
Sep. 30, 2019 | |
UNSECURED BORROWINGS [Abstract] | |
UNSECURED BORROWINGS | 8. UNSECURED BORROWINGS Balance as of September 30, 2019 December 31, 2018 (dollars in thousands) Outstanding principal balance: 2021 Notes $ 325,000 $ 325,000 2024 Notes 300,000 300,000 Total outstanding principal balance 625,000 625,000 Unamortized debt discounts and loan costs (6,029 ) (7,336 ) Unsecured borrowings, net $ 618,971 $ 617,664 On October 3, 2014, Fly sold $325.0 million aggregate principal amount of 6.375% Senior Notes due 2021 (the “2021 Notes”). The 2021 Notes and 2024 Notes are senior unsecured obligations of Fly pari passu Fly. . Interest on the 2021 Notes and 2024 Notes is payable semi-annually on April 15 and October 15 of each year. As of September 30, 2019 and December 31, 2018, accrued interest on unsecured borrowings totaled $16.8 million and $7.7 million, respectively. 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. As of September 30, 2019, For more information about Fly’s unsecured borrowings, refer to Note 9 of the 2018 Annual Report. |
SECURED BORROWINGS
SECURED BORROWINGS | 9 Months Ended |
Sep. 30, 2019 | |
SECURED BORROWINGS [Abstract] | |
SECURED BORROWINGS | 9. SECURED BORROWINGS The Company’s secured borrowings, net as of September 30, 2019 and December 31, 2018 are presented below (dollars in thousands): Outstanding principal balance as of Weighted average (1) September 30, 2019 (2) December 31, 2018 (2) September 30, 2019 December 31, 2018 Maturity date Securitization Notes $ — $ 85,584 — 3.08 % — Nord LB Facility 98,282 108,882 3.88 % 4.29 % January 2020 Term Loan 390,965 407,768 4.51 % 5.17 % February 2023 Magellan Acquisition Limited Facility 285,320 305,226 4.14 % 4.18 % December 2025 Fly Acquisition III Facility (3) 100,157 190,457 4.45 % 4.10 % — Fly Aladdin Acquisition Facility 307,885 467,179 4.78 % 4.59 % June 2023 Fly Aladdin Engine Funding Facility 42,719 43,829 4.95 % 4.95 % December 2021 – April 2022 Other Aircraft Secured Borrowings 715,975 807,882 4.28 % 4.44 % December 2020 – June 2028 Total outstanding principal balance 1,941,303 2,416,807 Unamortized debt discounts and loan costs (25,868 ) (36,938 ) Total secured borrowings, net $ 1,915,435 $ 2,379,869 (1) Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. (2) As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and . (3) The Fly Acquisition III Facility was repaid in October 2019 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 September 30, 2019, the Company was not in default under any of its secured borrowings. For more information about the Company’s secured borrowings, refer to Note 10 of the 2018 Annual Report. Securitization Notes On March 14, 2019, B&B Air Funding redeemed in full its outstanding aircraft lease-backed Class G-1 notes (the “Securitization Notes”) issued on October 2, 2007 and with an original maturity date of Nord LB Facility As of September 30, 2019, the Company had $98.3 five aircraft. 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. Term Loan As of September 30, 2019, the Company had $391.0 T The Term Loan bears interest at three-month LIBOR plus a margin of 2.00%. The Term Loan can be prepaid in whole or in part at par. 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 also includes other customary covenants, including reporting requirements and maintenance of credit ratings. Magellan Acquisition Limited Facility As of September 30, 2019 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 is a fixed rate of 3.93% per annum. The facility contains financial and operating covenants, including a covenant that Fly maintain a tangible net worth of at least $325.0 million, as well as customary reporting requirements. The borrower is required to maintain an initial loan-to-value ratio of less than or equal to 75% based on the lower of the average half-life adjusted current market value and base value of all aircraft financed under the facility as determined by three independent appraisers. 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 Fly 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. Fly Acquisition III Facility As of September 30, 2019 On October 22, 2019, the Company The interest rate under the facility was based on one-month LIBOR plus an applicable margin of (i) 2.00%, from February 26, 2016 through February 26, 2019 and (ii) 2.50%, from February 27, 2019 through the repayment date of the facility. Fly Aladdin Acquisition Facility As of September 30, 2019, the Company had $307.9 During the nine months ended September 30, 2019, the Company repaid Series A loans in full and a portion of Series B loans and expensed approximately $2.0 million of debt extinguishment costs. The interest rate on Series A loans was based on three-month LIBOR, plus an applicable margin of 1.50% per annum. um. The Company makes scheduled quarterly payments of principal and interest on the loans in accordance with a fixed amortization schedule. Borrowings are secured by the aircraft and related leases, and the equity and beneficial interests in the aircraft owning and leasing subsidiaries. In addition, Fly has provided a guaranty of certain of the representations, warranties and covenants under the Fly Aladdin Acquisition Facility (including, without limitation, the borrowers’ special purpose covenants), as well as the obligations, upon the occurrence of certain conditions, to deposit maintenance reserves and security deposits received into pledged accounts. The facility contains operating covenants, including covenants that the borrowers maintain a specified debt service coverage ratio, and an initial loan-to-value ratio equal to 72.5% based on the average of the half-life adjusted current market value of all financed aircraft as determined by three independent appraisers. A violation of any of these covenants could result in an event of default under the facility. Upon the occurrence of certain events, including a breach of the debt service coverage ratio continuing for two consecutive payment dates, Fly will be required to deposit, or cause the borrowers to deposit, all maintenance reserves and security deposits received into pledged accounts. Also, upon the occurrence of a breach of the loan-to-value ratio and certain other events, all cash collected will be applied to repay the outstanding principal balance of Series B loans until such breach is cured. Fly Aladdin Engine Funding Facility As of September 30, 2019 The interest rates for the borrowings range from 4.94% to 4.96% per annum, per engine. The Company is required to make scheduled monthly payments of principal and interest in accordance with an amortization schedule. The loans are secured by the engines and related leases and the Company’s equity and beneficial interests in the engine owning entities. The Fly Aladdin Engine Funding Facility contains customary covenants, including various reporting requirements. A violation of any of these covenants could result in a default under the facility. 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 September 30, 2019, the Company had $716.0 million 15 aircraft. Of this amount, $405.4 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 December 2020 to June 2028 . |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2019 | |
DERIVATIVES [Abstract] | |
DERIVATIVES | 10. DERIVATIVES Derivatives are used by the Company to manage its exposure to identified risks, such as interest rate and foreign currency exchange fluctuations . T September 30, 2019, the Company had $1.3 . 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 September 30, 2019 and December 31, 2018, the Company had interest rate swap contracts with notional amounts aggregating $1.0 billion and $ billion, respectively. $0.5 million and $3.2 million as of September 30, 2019 and December 31, 2018, respectively. $37.6 million and $8.6 million as of September 30, 2019 and December 31, 2018, respectively. To mitigate its exposure to foreign currency exchange fluctuations, the Company entered into a cross currency swap contract in 2018 in conjunction with a lease in which a portion of the lease rental is denominated in Euros. Pursuant to such cross currency swap, the Company receives U.S. dollars based on a fixed conversion rate through the maturity date of the swap contract. Over the remaining life of the cross currency swap contract, the Company expects to receive $61.1 million in U.S. dollars. The unrealized fair value gain, reflected as a derivative asset, was $6.2 million and $2.7 million as of September 30, 2019 and December 31, 2018, 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. Effective January 1, 2019, the Company adopted ASU 2017-12, Derivatives and Hedging (Topic 815), The Company recognized $0.8 million and $1.5 million interest expense, included in interest expense in the consolidated statements of income, d three and nine months ended September 30, 2019, The Company also recognized $0.4 million and $1.0 million of rental revenue, included in operating lease revenue in the consolidated statements of income, under d three and nine months ended September 30, 2019, The Company recognized $1.4 million and $4.5 million interest expense, included in interest expense in the consolidated statements of income, d three and nine months ended September 30, 2018, The Company also recognized $0.3 million and $0.5 million of rental revenue, included in operating lease revenue in the consolidated statements of income, under d three and nine months ended September 30, 2018, respectively Designated Derivatives The Company’s cross currency swap and certain of its interest rate derivatives have been designated as cash flow hedges. 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 September 30, 2019, Type Quantity Maturity Date Contracted Fixed Conversion Rate to U.S. Dollar Total Contracted USD to be Received Credit Risk Adjusted Fair Value Gain Recognized in Accumulated Comprehensive Loss Cross currency swap contract 1 11/26/25 1 EURO to $1.3068 $ 61,067 $ 6,177 $ 5,405 Accrued rent — 23 — Total - designated derivative asset 1 $ 61,067 $ 6,200 $ 5,405 As of September 30, 2019, Type Quantity Maturity Date Hedge Swap Credit Risk Adjusted Fair Value Loss Recognized in Accumulated Comprehensive Loss Interest rate swap contracts 31 2/9/23-12/8/25 2.28%-3.13 % $ 826,565 $ (33,425 ) $ (28,496 ) Accrued interest — (662 ) — Total – designated derivative liabilities 31 $ 826,565 $ (34,087 ) $ (28,496 ) Dedesignated Derivatives Certain of the Company’s interest rate swap contracts no longer qualify for hedge accounting and have been dedesignated. At September 30, 2019 September 30, 2019, the Company amortized $0.5 million from into interest expense. As of September 30, 2019 Type Quantity Maturity Date Hedge Swap Credit Risk Adjusted Fair Value Loss Recognized in Accumulated Comprehensive Loss Interest rate swap contracts 2 2/15/22 0.99%-1.07 % $ 48,728 $ 436 $ — Accrued interest — 20 — Total – dedesignated derivative assets 2 $ 48,728 $ 456 $ — As of September 30, 2019 Type Quantity Maturity Date Hedge Swap Credit Risk Adjusted Fair Value Loss Recognized in Accumulated Comprehensive Loss Interest rate swap contracts 14 11/9/21-6/15/23 1.93%-3.03 % $ 102,955 $ (3,502 ) $ (249 ) Accrued interest — (29 ) — Total – dedesignated derivative liabilities 14 $ 102,955 $ (3,531 ) $ (249 ) During the nine months ended September 30, 2019 In 2019, the Company reclassified $2.1 million and $2.3 million of accumulated comprehensive loss, net of tax to loss on derivative instruments during the three and nine months ended September 30, 2019, respectively. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2019 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 11. INCOME TAXES Fly is a tax resident of Ireland and has wholly-owned subsidiaries in Ireland, France, Luxembourg, Australia and Malta 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. The Company’s effective tax rates were 12.0% and 10.1% for the three and nine months ended September 30, 2019, respectively, and 13.6% and 14.7% for the three and nine months ended September 30, 2018, respectively. September 30, 2019, t The Company recognizes a valuation allowance if, based on the weight of available evidence, it is more-likely-than-not (likelihood of more than 50 percent) that some portion, or all, of its deferred tax asset will not be realized. Future realization of a deferred tax asset depends on the existence of sufficient taxable income of the appropriate character in the carryforward period under the tax law . The Company had no unrecognized tax benefits as of September 30, 2019 or December 31, 2018. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2019 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 12. SHARE-BASED COMPENSATION 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) 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 . . During the three months ended September 30, 2019, 555,569 SARs were exercised at a weighted average price of $12.84 per share. During the nine months ended September 30, 2019, 782,955 SARs were exercised at a weighted average price of $12.73 per share. At September 30, 2019, there were 14,025 SARs outstanding and exercisable at a weighted average exercise price of $12.95 per share. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2019 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | 13. SHAREHOLDERS’ EQUITY In November 2018, the Company’s board of directors approved a $50.0 million share repurchase program expiring in December 2019. In August 2019, the Company’s board of directors approved . As of September 30, 2019, there was $50.0 million remaining under the new authorization. During the three months ended September 30, 2019, Fly repurchased 342,492 shares at an average price of $16.83 per share, or $5.8 million, before commissions and fees. During the nine months ended September 30, 2019, Fly repurchased 2,010,437 shares at an average price of $16.29 per share, or $32.8 million, before commissions and fees. During the three and nine months ended , Fly did not repurchase any shares. No dividends were declared or paid during the three and nine months ended September 30, 2019 or 2018 During the three and nine months ended September 30, 2019, t |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2019 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 14. EARNINGS PER SHARE The following table sets forth the calculation of basic and diluted earnings per common share using the two-class method, in which dividends attributable to SARs are deducted from net income in determining net income attributable to common shareholders (dollars in thousands, except per share data): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Numerator Net income attributable to common shareholders $ 51,704 $ 20,740 $ 150,719 $ 54,714 Denominator Weighted average shares outstanding-Basic 30,873,297 30,302,193 31,846,836 28,764,793 Dilutive common equivalent shares: SARs 114,097 79,055 107,368 53,671 Weighted average shares outstanding-Diluted 30,987,394 30,381,248 31,954,204 28,818,464 Earnings per share: Basic Distributed earnings $ — $ — $ — $ — Undistributed income $ 1.67 $ 0.68 $ 4.73 $ 1.90 Basic earnings per share $ 1.67 $ 0.68 $ 4.73 $ 1.90 Diluted Distributed earnings $ — $ — $ — $ — Undistributed income $ 1.67 $ 0.68 $ 4.72 $ 1.90 Diluted earnings per share $ 1.67 $ 0.68 $ 4.72 $ 1.90 Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income 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 12). Net income available to common shareholders is determined by reducing the Company’s net income for the period by dividend equivalents paid on vested SARs during the period. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 15. 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. On February 28, 2018, the Company agreed to acquire 21 Airbus A320neo family aircraft to be leased to AirAsia Group Berhad (“AirAsia”) and its affiliated airlines as the aircraft deliver from the manufacturer beginning in 2019 (“Portfolio B”). The first of these aircraft is expected to deliver in the fourth quarter of 2019. The Company also acquired options to purchase up to 20 Airbus A320neo family aircraft, not subject to lease, delivering from the manufacturer between 2019 and 2025 (“Portfolio C”). The Company did not exercise its options with respect to any of the Portfolio C aircraft delivering in 2019. In August 2019, the Company exercised options with respect to eight Portfolio C aircraft to be delivered in 2020 and 2021. The Company has options remaining to purchase up to nine Portfolio C aircraft delivering between 2021 and 2025. On July 2, 2019, the Company agreed to sell 12 aircraft to Horizon II (See Note 5). The Company also purchased $7.4 million, or 6%, of the equity certificates issued by Horizon II Limited in connection with the Horizon II Transaction, which are subject to a seven-year lock-up agreement. The investment initially will be accounted for at cost and changes in fair value will be recognized into income. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2019 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 16. RELATED PARTY TRANSACTIONS With respect to aircraft financed by the Securitization Notes, BBAM was entitled to receive (i) a rent fee equal to 3.5% of the aggregate amount of rents actually collected, plus $1,000 per aircraft per month and (ii) a sales fee of 1.5% of the aggregate gross proceeds in respect of any aircraft sold. BBAM was also entitled to an administrative agency fee from B&B Air Funding of $20,000 per month, subject to an annual CPI adjustment. 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 Fly Acquisition III Facility, the Magellan Acquisition Limited Facility and the Fly Aladdin Acquisition Facility, BBAM is also entitled to an administrative fee of $10,000 per month. Under the Fly Aladdin Engine Funding Facility, BBAM is entitled to receive a servicing fee equal to 3.5% of monthly rents actually collected and an administrative fee equal to $1,000 per month. For the three and nine months ended September 30, 2019, BBAM received servicing and administrative fees totaling $3.8 million and $11.8 million, respectively. . BBAM also is entitled to receive an acquisition fee of 1.5% of the gross acquisition cost for any aviation asset purchased by the Company, and a disposition fee of 1.5% of the gross proceeds for any aviation asset sold by the Company. During the three and nine months ended September 30, 2019, the Company incurred $0.8 million and $1.7 million of acquisition fees, payable to BBAM. During the three and nine months ended September 30, 2018, the Company incurred of acquisition fees, respectively, payable to BBAM. During the three and nine months ended September 30, 2019, the Company incurred During the three and nine months ended September 30, 2018, the Company incurred In addition, Fly 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. 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 is also subject to an annual CPI adjustment applicable to the prior calendar year. For the three and nine months ended September 30, 2019, the Company incurred management fees of $2.4 million and $7.2 million, respectively. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2019 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | 17. FAIR VALUE OF FINANCIAL INSTRUMENTS 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 — I . Level 2 — Level 3 — 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 investment in equity certificates, 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. The Company did not record any impairment during the three and nine months ended September 30, 2019 or 2018. The carrying amounts and fair values of certain of the Company’s debt instruments are as follows (dollars in thousands): As of September 30, 2019 As of December 31, 2018 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value Securitization Notes $ — $ — $ 85,584 $ 80,770 Term Loan 390,965 391,473 407,768 396,554 2021 Notes 325,000 330,688 325,000 329,875 2024 Notes 300,000 310,140 300,000 279,390 The principal amount outstanding on the Company’s remaining debt instruments approximates fair value at September 30, 2019 and December 31, 2018 As of September 30, 2019 and December 31, 2018, the categorized 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 September 30, 2019: Derivative assets — $ 6,656 — $ 6,656 Derivative liabilities — 37,618 — 37,618 Investment in equity certificates — 13,064 — 13,064 December 31, 2018: Derivative assets — $ 5,929 — $ 5,929 Derivative liabilities — 8,558 — 8,558 Investment in equity certificates — 5,747 — 5,747 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2019 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS Subsequent to September 30, 2019, t sold four aircraft. On October 22, 2019, the Company On October 31, 2019 , the Company he Company The Company |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION Fly is a holding company that conducts its business through its subsidiaries. Fly 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, the Company consolidates 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’s interim financial statements reflect all normally recurring adjustments that are necessary to fairly state the results for the interim periods presented. Certain information and footnote disclosures required by U.S. GAAP for complete annual financial statements have been omitted and, therefore, the Company’s interim financial statements should be read in conjunction with its Annual Report on Form 20-F for the year ended December 31, 2018, filed with the SEC on March 12, 2019 (the “2018 Annual Report”). The results of operations for the three and nine months ended September 30, 2019 are not necessarily indicative of those for a full fiscal year. The Company has one operating and reportable segment which is aircraft and aircraft equipment leasing. Certain amounts in prior period consolidated financial statements have been reclassified to conform to the current period presentation. |
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. Despite management’s best efforts to accurately estimate such amounts, actual results could differ from those estimates . |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (the “FASB”) issued its new lease guidance, ASU 2016-02, Leases (Topic 842) In July 2018, the FASB issued new guidance to provide entities with relief from the costs of implementing certain aspects of ASU 2016-02, Leases (Topic 842) The timing and pattern of transfer for the non-lease component and the associated lease component are the same; and The stand-alone lease component would be classified as an operating lease if accounted for separately. The Company adopted the guidance effective January 1, 2019 and elected the practical expedients and transition relief, which does not require the Company to restate comparative periods. Accordingly, the adoption did not result in any adjustment to the Company’s consolidated balance sheets, results of operations or cash flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815). In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments . In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; The policy for timing of transfers between levels; and The valuation processes for Level 3 fair value measurements. The following disclosure requirements were added to Topic 820: The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements at the end of the reporting period; and The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 will be effective for fiscal years (including interim periods) beginning after December 15, 2019, and early adoption will be permitted. The Company is currently evaluating the impact of ASU 2018-13 and will adopt the guidance effective January 1, 2020. |
SUPPLEMENTAL DISCLOSURE TO CO_2
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | |
Supplemental Disclosure to Consolidated Statements of Cash Flows | Nine months ended September 30, 2019 September 30, 2018 (Dollars in thousands) Cash paid during the period for: Interest $ 88,043 $ 81,947 Taxes 163 3,893 Noncash Activities: Security deposits applied to rent receivables 3,224 — Maintenance payment liability applied to rent receivables, maintenance rights and other liabilities 4,088 7,574 Other liabilities applied to maintenance payment liability and security deposits 2,457 1,140 Noncash investing activities: Aircraft improvement 4,940 8,257 Noncash activities in connection with purchase of flight equipment 11,807 75,638 Noncash activities in connection with sale of flight equipment 15,711 2,693 |
INVESTMENT IN FINANCE LEASE (Ta
INVESTMENT IN FINANCE LEASE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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): September 30, 2019 December 31, 2018 Total minimum lease payments receivable $ 10,050 $ 11,400 Estimated unguaranteed residual value of leased asset 4,227 4,227 Unearned finance income (2,336 ) (2,805 ) Net Investment in Finance Lease $ 11,941 $ 12,822 |
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease | Presented below are the contracted future minimum rental payments due under the non-cancellable finance lease, as of September 30, 2019 (Dollars in thousands) October 1 through December 31, 2019 $ 450 Year ending December 31, 2020 1,800 2021 1,800 2022 1,800 2023 1,800 2024 1,800 Thereafter 600 Future minimum rental payments under finance lease $ 10,050 |
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease | Presented below are the contracted future minimum rental payments due under the non-cancellable finance lease, as of December 31, 2018. Year ending December 31, (Dollars in thousands) 2019 $ 1,800 2020 1,800 2021 1,800 2022 1,800 2023 1,800 Thereafter 2,400 Future minimum rental payments under finance lease $ 11,400 |
FLIGHT EQUIPMENT HELD FOR OPE_2
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET [Abstract] | |
Flight Equipment Held for Operating Lease | Flight equipment held for operating lease, net, consists of the following (dollars in thousands): September 30, 2019 December 31, 2018 Cost $ 3,437,466 $ 3,900,938 Accumulated depreciation (684,635 ) (672,920 ) Flight equipment held for operating lease, net $ 2,752,831 $ 3,228,018 |
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): September 30, 2019 December 31, 2018 Europe: Spain $ 163,253 6 % $ 168,534 5 % United Kingdom 138,820 5 % 169,763 5 % Other 219,929 8 % 265,554 9 % Europe — Total 522,002 19 % 603,851 19 % Asia and South Pacific: India 573,904 21 % 690,193 21 % Malaysia 392,603 14 % 394,441 12 % Philippines 267,693 10 % 276,237 9 % Indonesia 222,507 8 % 296,390 9 % China 170,893 6 % 177,393 5 % Thailand 17,166 1 % 126,347 4 % Other 36,491 1 % 34,983 2 % Asia and South Pacific — Total 1,681,257 61 % 1,995,984 62 % Mexico, South and Central America — Total 38,280 1 % 58,202 2 % North America: United States 120,733 4 % 126,498 4 % Other 24,603 1 % 49,320 1 % North America — Total 145,336 5 % 175,818 5 % Middle East and Africa: Ethiopia 305,557 11 % 312,977 10 % Other 22,007 1 % 81,186 2 % Middle East and Africa — Total 327,564 12 % 394,163 12 % Off-lease 38,392 2 % — — Total flight equipment held for operating lease, net $ 2,752,831 100 % $ 3,228,018 100 % |
Operating Lease Revenue by Geographic Region | The distribution of operating lease revenue by geographic region for the three months ended September 30, 2019 and 2018 is as follows (dollars in thousands): Three months ended September 30, 2019 September 30, 2018 Europe: Spain $ 4,344 5 % $ 4,344 4 % United Kingdom 6,833 7 % 8,098 8 % Other 8,439 9 % 10,437 11 % Europe — Total 19,616 21 % 22,879 23 % Asia and South Pacific: India 19,660 21 % 18,549 19 % Malaysia 13,714 14 % 6,975 7 % Philippines 8,518 9 % 9,589 10 % Indonesia 7,545 8 % 7,433 7 % China 5,650 6 % 5,652 6 % Thailand 3,074 3 % 5,301 5 % Other 607 1 % 668 1 % Asia and South Pacific — Total 58,768 62 % 54,167 55 % Mexico, South and Central America — Total 1,036 1 % 2,157 2 % North America: United States 4,103 4 % 7,266 7 % Other 1,054 1 % 1,559 2 % North America — Total 5,157 5 % 8,825 9 % Middle East and Africa: Ethiopia 7,505 8 % 7,504 8 % Other 2,624 3 % 3,815 3 % Middle East and Africa — Total 10,129 11 % 11,319 11 % Total Operating Lease Revenue $ 94,706 100 % $ 99,347 100 % The distribution of operating lease revenue by geographic region for the nine months ended September 30, 2019 and 2018 is as follows (dollars in thousands): Nine months ended September 30, 2019 September 30, 2018 Europe: Spain $ 13,034 4 % $ 12,922 5 % United Kingdom 26,146 8 % 23,222 8 % Other 26,197 8 % 32,590 11 % Europe — Total 65,377 20 % 68,734 24 % Asia and South Pacific: India 85,015 26 % 66,353 23 % Malaysia 40,847 12 % 13,128 5 % Philippines 25,816 8 % 24,973 8 % Indonesia 26,101 8 % 21,598 8 % China 18,221 6 % 16,958 6 % Thailand 13,253 4 % 7,224 3 % Other 2,389 1 % 2,759 1 % Asia and South Pacific — Total 211,642 65 % 152,993 54 % Mexico, South and Central America — Total 4,391 1 % 9,325 3 % North America: United States 12,263 4 % 16,075 6 % Other 4,177 1 % 4,682 1 % North America — Total 16,440 5 % 20,757 7 % Middle East and Africa: Ethiopia 22,514 7 % 22,514 8 % Other 8,217 2 % 11,424 4 % Middle East and Africa — Total 30,731 9 % 33,938 12 % Total Operating Lease Revenue $ 328,581 100 % $ 285,747 100 % |
End of Lease Income and Amortization of Lease Incentives Recognized | End of lease income and amortization of lease incentives recognized during the three and nine months ended September 30, 2019 and 2018 are as follows (dollars in thousands): Three months ended Nine months ended September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 (Dollars in thousands) End of lease income $ — $ 3,072 $ 30,387 $ 16,069 Amortization of lease incentives (1,402 ) (2,480 ) (4,353 ) (7,124 ) |
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 for flight equipment held for operating lease, as of September 30, 2019. For leases that have floating rental rates, the future minimum rental payments assume that LIBOR as of September 30, 2019 is held constant for the duration of the lease. (Dollars in thousands) October 1 through December 31, 2019 $ 83,271 Year ending December 31, 2020 309,754 2021 270,588 2022 223,538 2023 181,768 2024 167,551 Thereafter 384,096 Future minimum rental payments under operating leases $ 1,620,566 |
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 for flight equipment held for operating lease, as of December 31, 2018. For leases that have floating rental rates, the future minimum rental payments assume that LIBOR as of December 31, 2018 is held constant for the duration of the lease. Year ending December 31, (Dollars in thousands) 2019 $ 403,535 2020 372,432 2021 323,232 2022 272,427 2023 227,535 Thereafter 661,006 Future minimum rental payments under operating leases $ 2,260,167 |
MAINTENANCE RIGHTS (Tables)
MAINTENANCE RIGHTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
MAINTENANCE RIGHTS [Abstract] | |
Changes in Maintenance Rights, Net | Changes in maintenance right assets during the nine months ended September 30, 2019 and 2018 are as follows (dollars in thousands): Nine months ended September 30, 2019 September 30, 2018 Maintenance rights, beginning balance $ 298,207 $ 131,299 Acquisitions 36,798 152,930 Capitalized to aircraft improvements (3,661 ) (8,209 ) Maintenance rights settled with retained maintenance payments — (2,369 ) Cash receipts from maintenance rights (1,741 ) (3,013 ) Maintenance rights associated with aircraft sold (73,199 ) — Maintenance rights, ending balance $ 256,404 $ 270,638 |
UNSECURED BORROWINGS (Tables)
UNSECURED BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
UNSECURED BORROWINGS [Abstract] | |
Borrowings | Balance as of September 30, 2019 December 31, 2018 (dollars in thousands) Outstanding principal balance: 2021 Notes $ 325,000 $ 325,000 2024 Notes 300,000 300,000 Total outstanding principal balance 625,000 625,000 Unamortized debt discounts and loan costs (6,029 ) (7,336 ) Unsecured borrowings, net $ 618,971 $ 617,664 |
SECURED BORROWINGS (Tables)
SECURED BORROWINGS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
SECURED BORROWINGS [Abstract] | |
Secured Borrowings | The Company’s secured borrowings, net as of September 30, 2019 and December 31, 2018 are presented below (dollars in thousands): Outstanding principal balance as of Weighted average (1) September 30, 2019 (2) December 31, 2018 (2) September 30, 2019 December 31, 2018 Maturity date Securitization Notes $ — $ 85,584 — 3.08 % — Nord LB Facility 98,282 108,882 3.88 % 4.29 % January 2020 Term Loan 390,965 407,768 4.51 % 5.17 % February 2023 Magellan Acquisition Limited Facility 285,320 305,226 4.14 % 4.18 % December 2025 Fly Acquisition III Facility (3) 100,157 190,457 4.45 % 4.10 % — Fly Aladdin Acquisition Facility 307,885 467,179 4.78 % 4.59 % June 2023 Fly Aladdin Engine Funding Facility 42,719 43,829 4.95 % 4.95 % December 2021 – April 2022 Other Aircraft Secured Borrowings 715,975 807,882 4.28 % 4.44 % December 2020 – June 2028 Total outstanding principal balance 1,941,303 2,416,807 Unamortized debt discounts and loan costs (25,868 ) (36,938 ) Total secured borrowings, net $ 1,915,435 $ 2,379,869 (1) Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. (2) As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and . (3) The Fly Acquisition III Facility was repaid in October 2019 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
DERIVATIVES [Abstract] | |
Designated Derivative Assets | As of September 30, 2019, Type Quantity Maturity Date Contracted Fixed Conversion Rate to U.S. Dollar Total Contracted USD to be Received Credit Risk Adjusted Fair Value Gain Recognized in Accumulated Comprehensive Loss Cross currency swap contract 1 11/26/25 1 EURO to $1.3068 $ 61,067 $ 6,177 $ 5,405 Accrued rent — 23 — Total - designated derivative asset 1 $ 61,067 $ 6,200 $ 5,405 |
Designated Derivative Liabilities | As of September 30, 2019, Type Quantity Maturity Date Hedge Swap Credit Risk Adjusted Fair Value Loss Recognized in Accumulated Comprehensive Loss Interest rate swap contracts 31 2/9/23-12/8/25 2.28%-3.13 % $ 826,565 $ (33,425 ) $ (28,496 ) Accrued interest — (662 ) — Total – designated derivative liabilities 31 $ 826,565 $ (34,087 ) $ (28,496 ) |
Dedesignated Derivative Assets and Liabilities | As of September 30, 2019 Type Quantity Maturity Date Hedge Swap Credit Risk Adjusted Fair Value Loss Recognized in Accumulated Comprehensive Loss Interest rate swap contracts 2 2/15/22 0.99%-1.07 % $ 48,728 $ 436 $ — Accrued interest — 20 — Total – dedesignated derivative assets 2 $ 48,728 $ 456 $ — As of September 30, 2019 Type Quantity Maturity Date Hedge Swap Credit Risk Adjusted Fair Value Loss Recognized in Accumulated Comprehensive Loss Interest rate swap contracts 14 11/9/21-6/15/23 1.93%-3.03 % $ 102,955 $ (3,502 ) $ (249 ) Accrued interest — (29 ) — Total – dedesignated derivative liabilities 14 $ 102,955 $ (3,531 ) $ (249 ) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
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, in which dividends attributable to SARs are deducted from net income in determining net income attributable to common shareholders (dollars in thousands, except per share data): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Numerator Net income attributable to common shareholders $ 51,704 $ 20,740 $ 150,719 $ 54,714 Denominator Weighted average shares outstanding-Basic 30,873,297 30,302,193 31,846,836 28,764,793 Dilutive common equivalent shares: SARs 114,097 79,055 107,368 53,671 Weighted average shares outstanding-Diluted 30,987,394 30,381,248 31,954,204 28,818,464 Earnings per share: Basic Distributed earnings $ — $ — $ — $ — Undistributed income $ 1.67 $ 0.68 $ 4.73 $ 1.90 Basic earnings per share $ 1.67 $ 0.68 $ 4.73 $ 1.90 Diluted Distributed earnings $ — $ — $ — $ — Undistributed income $ 1.67 $ 0.68 $ 4.72 $ 1.90 Diluted earnings per share $ 1.67 $ 0.68 $ 4.72 $ 1.90 |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of certain of the Company’s debt instruments are as follows (dollars in thousands): As of September 30, 2019 As of December 31, 2018 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value Securitization Notes $ — $ — $ 85,584 $ 80,770 Term Loan 390,965 391,473 407,768 396,554 2021 Notes 325,000 330,688 325,000 329,875 2024 Notes 300,000 310,140 300,000 279,390 |
Asset and Liabilities Measured at Fair Value on Recurring Basis | As of September 30, 2019 and December 31, 2018, the categorized 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 September 30, 2019: Derivative assets — $ 6,656 — $ 6,656 Derivative liabilities — 37,618 — 37,618 Investment in equity certificates — 13,064 — 13,064 December 31, 2018: Derivative assets — $ 5,929 — $ 5,929 Derivative liabilities — 8,558 — 8,558 Investment in equity certificates — 5,747 — 5,747 |
ORGANIZATION (Details)
ORGANIZATION (Details) | 9 Months Ended | |
Sep. 30, 2019Director$ / sharesshares | Dec. 31, 2018$ / 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 ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended |
Sep. 30, 2019Segment | |
Basis of Preparation [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
SUPPLEMENTAL DISCLOSURE TO CO_3
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash paid during the period for [Abstract] | ||
Interest | $ 88,043 | $ 81,947 |
Taxes | 163 | 3,893 |
Noncash Activities [Abstract] | ||
Security deposits applied to rent receivables | 3,224 | 0 |
Maintenance payment liability applied to rent receivables, maintenance rights and other liabilities | 4,088 | 7,574 |
Other liabilities applied to maintenance payment liability and security deposits | 2,457 | 1,140 |
Noncash investing activities [Abstract] | ||
Aircraft improvement | 4,940 | 8,257 |
Noncash activities in connection with purchase of flight equipment | 11,807 | 75,638 |
Noncash activities in connection with sale of flight equipment | $ 15,711 | $ 2,693 |
INVESTMENT IN FINANCE LEASE (De
INVESTMENT IN FINANCE LEASE (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)Lease | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Lease | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)Lease | |
INVESTMENT IN FINANCE LEASE [Abstract] | |||||
Number of leases recorded as investment in finance lease | Lease | 1 | 1 | |||
Number of leases recorded as investment in finance lease | Lease | 1 | ||||
Implicit interest rate | 5.00% | ||||
Implicit interest rate | 5.00% | ||||
Finance lease revenue | $ 153 | $ 469 | |||
Finance lease revenue | $ 167 | $ 512 | |||
Net Investment in Finance Lease [Abstract] | |||||
Total minimum lease payments receivable | 10,050 | 10,050 | |||
Estimated unguaranteed residual value of leased asset | 4,227 | 4,227 | |||
Unearned finance income | (2,336) | (2,336) | |||
Net Investment in Finance Lease | 11,941 | 11,941 | |||
Total minimum lease payments receivable | $ 11,400 | ||||
Estimated unguaranteed residual value of leased asset | 4,227 | ||||
Unearned finance income | (2,805) | ||||
Net Investment in Finance Lease | 11,941 | 11,941 | 12,822 | ||
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease [Abstract] | |||||
October 1 through December 31, 2019 | 450 | 450 | |||
2020 | 1,800 | 1,800 | |||
2021 | 1,800 | 1,800 | |||
2022 | 1,800 | 1,800 | |||
2023 | 1,800 | 1,800 | |||
2024 | 1,800 | 1,800 | |||
Thereafter | 600 | 600 | |||
Future minimum rental payments under finance lease | $ 10,050 | $ 10,050 | |||
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease [Abstract] | |||||
2019 | 1,800 | ||||
2020 | 1,800 | ||||
2021 | 1,800 | ||||
2022 | 1,800 | ||||
2023 | 1,800 | ||||
Thereafter | 2,400 | ||||
Future minimum rental payments under finance lease | $ 11,400 |
FLIGHT EQUIPMENT HELD FOR SALE
FLIGHT EQUIPMENT HELD FOR SALE (Details) $ in Thousands | Jul. 02, 2019USD ($)Aircraft | Nov. 08, 2019Aircraft | Dec. 31, 2019Aircraft | Sep. 30, 2019USD ($)Aircraft | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Aircraft | Sep. 30, 2018USD ($) | Dec. 31, 2018Aircraft |
Flight Equipment Held for Sale [Abstract] | ||||||||
Number of aircraft held for sale | 6 | 6 | 12 | |||||
Number of aircraft committed to be sold | 1 | |||||||
Gain on sale of aircraft | $ | $ 38,934 | $ 2,579 | $ 82,632 | $ 5,524 | ||||
Subsequent Event [Member] | ||||||||
Flight Equipment Held for Sale [Abstract] | ||||||||
Number of aircraft sold | 4 | |||||||
Horizon I [Member] | ||||||||
Flight Equipment Held for Sale [Abstract] | ||||||||
Number of aircraft committed to be sold | 9 | |||||||
Third Party [Member] | ||||||||
Flight Equipment Held for Sale [Abstract] | ||||||||
Number of aircraft committed to be sold | 3 | |||||||
Horizon II [Member] | ||||||||
Flight Equipment Held for Sale [Abstract] | ||||||||
Number of aircraft committed to be sold | 12 | |||||||
Sales price of aircraft | $ | $ 359,600 | |||||||
Number of aircraft delivered to purchaser | 7 | |||||||
Horizon II [Member] | Subsequent Event [Member] | ||||||||
Flight Equipment Held for Sale [Abstract] | ||||||||
Number of aircraft delivered to purchaser | 4 | |||||||
Horizon II [Member] | Forecast [Member] | ||||||||
Flight Equipment Held for Sale [Abstract] | ||||||||
Number of aircraft delivered to purchaser | 1 | |||||||
Flight Equipment Held For Sale [Member] | ||||||||
Flight Equipment Held for Sale [Abstract] | ||||||||
Number of aircraft sold | 19 | |||||||
Gain on sale of aircraft | $ | $ 67,800 |
FLIGHT EQUIPMENT HELD FOR OPE_3
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET, Flight Equipment Held for Operating Lease (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019USD ($)AircraftEngineLesseeCountry | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)AircraftEngineLesseeCountry | Sep. 30, 2018USD ($)Aircraft | Dec. 31, 2018USD ($)AircraftEngineLesseeCountry | |
Flight Equipment Held for Operating Leases [Abstract] | |||||
Number of aircraft held | Aircraft | 84 | 84 | 100 | ||
Number of engines held for operating lease | Engine | 7 | 7 | 7 | ||
Number of lessees | Lessee | 40 | 40 | 43 | ||
Number of countries in which lessees operate | Country | 21 | 21 | 24 | ||
Number of aircraft off-lease | Aircraft | 1 | 1 | |||
Capitalized cost of flight equipment purchased | $ 89,800 | $ 693,000 | |||
Gain on sale of aircraft | $ 38,934 | $ 2,579 | 82,632 | 5,524 | |
Aircraft impairment | 0 | $ 0 | 0 | $ 0 | |
Flight Equipment Held for Operating Leases, Net [Abstract] | |||||
Flight equipment held for operating lease, net | 2,752,831 | $ 2,752,831 | $ 3,228,018 | ||
Flight Equipment Held For Operating Lease [Member] | |||||
Flight Equipment Held for Operating Leases [Abstract] | |||||
Number of aircraft sold | Aircraft | 6 | 3 | |||
Gain on sale of aircraft | $ 14,800 | $ 5,500 | |||
Flight Equipment Held for Operating Leases, Net [Abstract] | |||||
Cost | 3,437,466 | 3,437,466 | 3,900,938 | ||
Accumulated depreciation | (684,635) | (684,635) | (672,920) | ||
Flight equipment held for operating lease, net | $ 2,752,831 | 2,752,831 | $ 3,228,018 | ||
Major maintenance expenditures capitalized | $ 8,000 | $ 8,400 |
FLIGHT EQUIPMENT HELD FOR OPE_4
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET, Flight Equipment Held for Operating Lease by Geographic Region (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 2,752,831 | $ 3,228,018 |
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 | $ 2,752,831 | $ 3,228,018 |
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 | $ 38,392 | $ 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 | $ 522,002 | $ 603,851 |
Concentration percentage | 19.00% | 19.00% |
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 | $ 163,253 | $ 168,534 |
Concentration percentage | 6.00% | 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 | $ 138,820 | $ 169,763 |
Concentration percentage | 5.00% | 5.00% |
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 | $ 219,929 | $ 265,554 |
Concentration percentage | 8.00% | 9.00% |
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 | $ 1,681,257 | $ 1,995,984 |
Concentration percentage | 61.00% | 62.00% |
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 | $ 573,904 | $ 690,193 |
Concentration percentage | 21.00% | 21.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Malaysia [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 392,603 | $ 394,441 |
Concentration percentage | 14.00% | 12.00% |
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 | $ 267,693 | $ 276,237 |
Concentration percentage | 10.00% | 9.00% |
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 | $ 222,507 | $ 296,390 |
Concentration percentage | 8.00% | 9.00% |
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 | $ 170,893 | $ 177,393 |
Concentration percentage | 6.00% | 5.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Thailand [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 17,166 | $ 126,347 |
Concentration percentage | 1.00% | 4.00% |
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 | $ 36,491 | $ 34,983 |
Concentration percentage | 1.00% | 2.00% |
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 | $ 38,280 | $ 58,202 |
Concentration percentage | 1.00% | 2.00% |
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 | $ 145,336 | $ 175,818 |
Concentration percentage | 5.00% | 5.00% |
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 | $ 120,733 | $ 126,498 |
Concentration percentage | 4.00% | 4.00% |
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 | $ 24,603 | $ 49,320 |
Concentration percentage | 1.00% | 1.00% |
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 | $ 327,564 | $ 394,163 |
Concentration percentage | 12.00% | 12.00% |
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 | $ 305,557 | $ 312,977 |
Concentration percentage | 11.00% | 10.00% |
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 | $ 22,007 | $ 81,186 |
Concentration percentage | 1.00% | 2.00% |
FLIGHT EQUIPMENT HELD FOR OPE_5
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET, Operating Lease Revenue by Geographic Region (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)AircraftLesseeCustomer | Sep. 30, 2018USD ($)LesseeCustomer | Sep. 30, 2019USD ($)AircraftLesseeCustomer | Sep. 30, 2018USD ($)LesseeCustomer | |
Revenues [Abstract] | ||||
Operating lease revenue | $ 94,706 | $ 328,581 | ||
Operating lease revenue | $ 99,347 | $ 285,747 | ||
Number of major customers | Customer | 1 | 1 | 0 | 1 |
Number of lessees on non-accrual status | Lessee | 2 | 0 | 2 | 0 |
Number of aircraft on non-accrual status | Aircraft | 3 | 3 | ||
Operating lease revenue recognized from lessees on non-accrual status | $ 2,600 | $ 9,000 | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 94,706 | $ 328,581 | ||
Operating lease revenue | $ 99,347 | $ 285,747 | ||
Concentration percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Europe [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 19,616 | $ 65,377 | ||
Operating lease revenue | $ 22,879 | $ 68,734 | ||
Concentration percentage | 21.00% | 23.00% | 20.00% | 24.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Spain [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 4,344 | $ 13,034 | ||
Operating lease revenue | $ 4,344 | $ 12,922 | ||
Concentration percentage | 5.00% | 4.00% | 4.00% | 5.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United Kingdom [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 6,833 | $ 26,146 | ||
Operating lease revenue | $ 8,098 | $ 23,222 | ||
Concentration percentage | 7.00% | 8.00% | 8.00% | 8.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 8,439 | $ 26,197 | ||
Operating lease revenue | $ 10,437 | $ 32,590 | ||
Concentration percentage | 9.00% | 11.00% | 8.00% | 11.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Asia and South Pacific [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 58,768 | $ 211,642 | ||
Operating lease revenue | $ 54,167 | $ 152,993 | ||
Concentration percentage | 62.00% | 55.00% | 65.00% | 54.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | India [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 19,660 | $ 85,015 | ||
Operating lease revenue | $ 18,549 | $ 66,353 | ||
Concentration percentage | 21.00% | 19.00% | 26.00% | 23.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Malaysia [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 13,714 | $ 40,847 | ||
Operating lease revenue | $ 6,975 | $ 13,128 | ||
Concentration percentage | 14.00% | 7.00% | 12.00% | 5.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Philippines [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 8,518 | $ 25,816 | ||
Operating lease revenue | $ 9,589 | $ 24,973 | ||
Concentration percentage | 9.00% | 10.00% | 8.00% | 8.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Indonesia [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 7,545 | $ 26,101 | ||
Operating lease revenue | $ 7,433 | $ 21,598 | ||
Concentration percentage | 8.00% | 7.00% | 8.00% | 8.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | China [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 5,650 | $ 18,221 | ||
Operating lease revenue | $ 5,652 | $ 16,958 | ||
Concentration percentage | 6.00% | 6.00% | 6.00% | 6.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Thailand [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 3,074 | $ 13,253 | ||
Operating lease revenue | $ 5,301 | $ 7,224 | ||
Concentration percentage | 3.00% | 5.00% | 4.00% | 3.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 607 | $ 2,389 | ||
Operating lease revenue | $ 668 | $ 2,759 | ||
Concentration percentage | 1.00% | 1.00% | 1.00% | 1.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Mexico, South and Central America [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 1,036 | $ 4,391 | ||
Operating lease revenue | $ 2,157 | $ 9,325 | ||
Concentration percentage | 1.00% | 2.00% | 1.00% | 3.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | North America [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 5,157 | $ 16,440 | ||
Operating lease revenue | $ 8,825 | $ 20,757 | ||
Concentration percentage | 5.00% | 9.00% | 5.00% | 7.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United States [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 4,103 | $ 12,263 | ||
Operating lease revenue | $ 7,266 | $ 16,075 | ||
Concentration percentage | 4.00% | 7.00% | 4.00% | 6.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 1,054 | $ 4,177 | ||
Operating lease revenue | $ 1,559 | $ 4,682 | ||
Concentration percentage | 1.00% | 2.00% | 1.00% | 1.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Middle East and Africa [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 10,129 | $ 30,731 | ||
Operating lease revenue | $ 11,319 | $ 33,938 | ||
Concentration percentage | 11.00% | 11.00% | 9.00% | 12.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Ethiopia [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 7,505 | $ 22,514 | ||
Operating lease revenue | $ 7,504 | $ 22,514 | ||
Concentration percentage | 8.00% | 8.00% | 7.00% | 8.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | ||||
Revenues [Abstract] | ||||
Operating lease revenue | $ 2,624 | $ 8,217 | ||
Operating lease revenue | $ 3,815 | $ 11,424 | ||
Concentration percentage | 3.00% | 3.00% | 2.00% | 4.00% |
FLIGHT EQUIPMENT HELD FOR OPE_6
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET, End of Lease Income and Amortization of Lease Incentives Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET [Abstract] | |||||
End of lease income | $ 0 | $ 3,072 | $ 30,387 | $ 16,069 | |
Amortization of lease incentives | $ (1,402) | $ (2,480) | $ (4,353) | $ (7,124) | |
Weighted average remaining lease term | 5 years | 5 years | 5 years 10 months 24 days |
FLIGHT EQUIPMENT HELD FOR OPE_7
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET, Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, NET [Abstract] | |||
Operating lease rental revenue | $ 96,100 | $ 302,500 | |
Amount from leases with variable rates | 16,800 | 54,900 | |
Future Minimum Rental Payments Due [Abstract] | |||
October 1 through December 31, 2019 | 83,271 | 83,271 | |
2020 | 309,754 | 309,754 | |
2021 | 270,588 | 270,588 | |
2022 | 223,538 | 223,538 | |
2023 | 181,768 | 181,768 | |
2024 | 167,551 | 167,551 | |
Thereafter | 384,096 | 384,096 | |
Future minimum rental payments under operating leases | $ 1,620,566 | $ 1,620,566 | |
Contracted Future Minimum Rental Payments Due [Abstract] | |||
2019 | $ 403,535 | ||
2020 | 372,432 | ||
2021 | 323,232 | ||
2022 | 272,427 | ||
2023 | 227,535 | ||
Thereafter | 661,006 | ||
Future minimum rental payments under operating leases | $ 2,260,167 |
MAINTENANCE RIGHTS (Details)
MAINTENANCE RIGHTS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
MAINTENANCE RIGHTS [Abstract] | ||
Maintenance rights, beginning balance | $ 298,207 | $ 131,299 |
Acquisitions | 36,798 | 152,930 |
Capitalized to aircraft improvements | (3,661) | (8,209) |
Maintenance rights settled with retained maintenance payments | 0 | (2,369) |
Cash receipts from maintenance rights | (1,741) | (3,013) |
Maintenance rights associated with aircraft sold | (73,199) | 0 |
Maintenance rights, ending balance | $ 256,404 | $ 270,638 |
UNSECURED BORROWINGS (Details)
UNSECURED BORROWINGS (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2019 | Dec. 31, 2018 | Oct. 16, 2017 | Oct. 03, 2014 | |
Unsecured Borrowings [Abstract] | ||||
Unsecured borrowings, net | $ 618,971 | $ 617,664 | ||
Unsecured Borrowings [Member] | ||||
Unsecured Borrowings [Abstract] | ||||
Outstanding principal balance | 625,000 | 625,000 | ||
Unamortized debt discount and loan costs | (6,029) | (7,336) | ||
Unsecured borrowings, net | 618,971 | 617,664 | ||
Accrued interest | 16,800 | 7,700 | ||
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 | $ 300,000 | ||
Notes issued | $ 300,000 | |||
Interest rate | 5.25% | |||
Maturity date | Oct. 15, 2024 |
SECURED BORROWINGS, Secured Bor
SECURED BORROWINGS, Secured Borrowings (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | ||
Secured Borrowings [Abstract] | |||
Total secured borrowings, net | $ 1,915,435 | $ 2,379,869 | |
Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | 1,941,303 | 2,416,807 |
Unamortized debt discount and loan costs | [1] | (25,868) | (36,938) |
Total secured borrowings, net | [1] | 1,915,435 | 2,379,869 |
Accrued interest | 11,400 | 10,900 | |
Secured Borrowings [Member] | Securitization Notes [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | $ 0 | $ 85,584 |
Weighted average interest rate | [2] | 0.00% | 3.08% |
Secured Borrowings [Member] | Nord LB Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | $ 98,282 | $ 108,882 |
Weighted average interest rate | [2] | 3.88% | 4.29% |
Maturity date | Jan. 14, 2020 | ||
Secured Borrowings [Member] | Term Loan [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | $ 390,965 | $ 407,768 |
Weighted average interest rate | [2] | 4.51% | 5.17% |
Maturity date | Feb. 9, 2023 | ||
Secured Borrowings [Member] | Magellan Acquisition Limited Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | $ 285,320 | $ 305,226 |
Weighted average interest rate | [2] | 4.14% | 4.18% |
Maturity date | Dec. 8, 2025 | ||
Secured Borrowings [Member] | Fly Acquisition III Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | $ 100,157 | $ 190,457 |
Weighted average interest rate | [2] | 4.45% | 4.10% |
Maturity date | [3] | ||
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | $ 307,885 | $ 467,179 |
Weighted average interest rate | [2] | 4.78% | 4.59% |
Maturity date | Jun. 15, 2023 | ||
Secured Borrowings [Member] | Fly Aladdin Engine Funding Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | $ 42,719 | $ 43,829 |
Weighted average interest rate | [2] | 4.95% | 4.95% |
Maturity date, range start date | Dec. 31, 2021 | ||
Maturity date, range end date | Apr. 30, 2022 | ||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | [1] | $ 715,975 | $ 807,882 |
Weighted average interest rate | [2] | 4.28% | 4.44% |
Maturity date, range start date | Dec. 31, 2020 | ||
Maturity date, range end date | Jun. 30, 2028 | ||
[1] | As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and $10.9 million, respectively. | ||
[2] | Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. | ||
[3] | The Fly Acquisition III Facility was repaid in October 2019. |
SECURED BORROWINGS, Securitizat
SECURED BORROWINGS, Securitization Notes (Details) - USD ($) $ in Thousands | Mar. 14, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Secured Borrowings [Abstract] | |||||
Loss on extinguishment of debt | $ (1,620) | $ (560) | $ (5,330) | $ (1,458) | |
B&B Air Funding [Member] | Secured Borrowings [Member] | Securitization Notes [Member] | |||||
Secured Borrowings [Abstract] | |||||
Redemption date | Mar. 14, 2019 | ||||
Maturity date | Nov. 14, 2033 | ||||
Principal amount redeemed | $ 63,800 | ||||
Loss on extinguishment of debt | $ (1,900) |
SECURED BORROWINGS, Nord LB Fac
SECURED BORROWINGS, Nord LB Facility (Details) - Secured Borrowings [Member] $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)Aircraft | Dec. 31, 2018USD ($) | ||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 1,941,303 | $ 2,416,807 |
Nord LB Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 98,282 | $ 108,882 |
Number of aircraft serving as security | Aircraft | 5 | ||
Maturity date | Jan. 14, 2020 | ||
Percentage of lease rentals collected applied to interest and principal | 95.00% | ||
Nord LB Facility [Member] | LIBOR [Member] | |||
Secured Borrowings [Abstract] | |||
Term of variable rate | 1 month | ||
Basis spread on variable rate | 1.85% | ||
[1] | As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and $10.9 million, respectively. |
SECURED BORROWINGS, Term Loan (
SECURED BORROWINGS, Term Loan (Details) - Secured Borrowings [Member] $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)AircraftAppraiser | Dec. 31, 2018USD ($) | ||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 1,941,303 | $ 2,416,807 |
Term Loan [Member] | |||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 390,965 | $ 407,768 |
Number of aircraft serving as security | Aircraft | 31 | ||
Maturity date | Feb. 9, 2023 | ||
Number of independent appraisers | Appraiser | 3 | ||
Term Loan [Member] | Maximum [Member] | |||
Secured Borrowings [Abstract] | |||
Loan-to-value ratio | 70.00% | ||
Term Loan [Member] | LIBOR [Member] | |||
Secured Borrowings [Abstract] | |||
Term of variable rate | 3 months | ||
Basis spread on variable rate | 2.00% | ||
[1] | As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and $10.9 million, respectively. |
SECURED BORROWINGS, Magellan Ac
SECURED BORROWINGS, Magellan Acquisition Limited Facility (Details) - Secured Borrowings [Member] $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)AircraftAppraiser | Dec. 31, 2018USD ($) | ||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 1,941,303 | $ 2,416,807 |
Magellan Acquisition Limited Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 285,320 | $ 305,226 |
Number of aircraft serving as security | Aircraft | 8 | ||
Maturity date | Dec. 8, 2025 | ||
Minimum tangible net worth required for compliance | $ 325,000 | ||
Number of independent appraisers | Appraiser | 3 | ||
Minimum liquidity required for compliance | $ 25,000 | ||
Magellan Acquisition Limited Facility [Member] | Maximum [Member] | |||
Secured Borrowings [Abstract] | |||
Loan-to-value ratio | 75.00% | ||
Magellan Acquisition Limited Facility Loans [Member] | LIBOR [Member] | |||
Secured Borrowings [Abstract] | |||
Term of variable rate | 1 month | ||
Basis spread on variable rate | 1.65% | ||
Magellan Acquisition Limited Facility Notes [Member] | |||
Secured Borrowings [Abstract] | |||
Interest rate | 3.93% | ||
[1] | As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and $10.9 million, respectively. |
SECURED BORROWINGS, Fly Acquisi
SECURED BORROWINGS, Fly Acquisition III Facility (Details) - Secured Borrowings [Member] $ in Thousands | 8 Months Ended | 9 Months Ended | 36 Months Ended | ||
Oct. 22, 2019 | Sep. 30, 2019USD ($)Aircraft | Feb. 26, 2019 | Dec. 31, 2018USD ($) | ||
Secured Borrowings [Abstract] | |||||
Principal amount outstanding | [1] | $ 1,941,303 | $ 2,416,807 | ||
Fly Acquisition III Facility [Member] | |||||
Secured Borrowings [Abstract] | |||||
Principal amount outstanding | [1] | $ 100,157 | $ 190,457 | ||
Maturity date | [2] | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | |||||
Secured Borrowings [Abstract] | |||||
Principal amount outstanding | $ 100,157 | ||||
Number of aircraft serving as security | Aircraft | 5 | ||||
Maturity date | Feb. 26, 2022 | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | Minimum [Member] | |||||
Secured Borrowings [Abstract] | |||||
Commitment fee percentage | 0.50% | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | Maximum [Member] | |||||
Secured Borrowings [Abstract] | |||||
Commitment fee percentage | 0.75% | ||||
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] | Subsequent Event [Member] | |||||
Secured Borrowings [Abstract] | |||||
Basis spread on variable rate | 2.50% | ||||
[1] | As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and $10.9 million, respectively. | ||||
[2] | The Fly Acquisition III Facility was repaid in October 2019. |
SECURED BORROWINGS, Fly Aladdin
SECURED BORROWINGS, Fly Aladdin Acquisition Facility (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)AircraftAppraiserPayment | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Secured Borrowings [Abstract] | ||||||
Loss on extinguishment of debt | $ (1,620) | $ (560) | $ (5,330) | $ (1,458) | ||
Secured Borrowings [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Principal amount outstanding | [1] | 1,941,303 | 1,941,303 | $ 2,416,807 | ||
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Principal amount outstanding | [1] | $ 307,885 | $ 307,885 | $ 467,179 | ||
Number of aircraft serving as security | Aircraft | 17 | |||||
Maturity date | Jun. 15, 2023 | |||||
Loss on extinguishment of debt | $ (2,000) | |||||
Loan-to-value ratio | 72.50% | |||||
Number of independent appraisers | Appraiser | 3 | |||||
Number of consecutive quarterly payments for breach of debt service coverage ratio | Payment | 2 | |||||
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility [Member] | LIBOR [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Term of variable rate | 3 months | |||||
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility, Series A Loan [Member] | LIBOR [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Basis spread on variable rate | 1.50% | |||||
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility, Series B Loan [Member] | LIBOR [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Basis spread on variable rate | 1.80% | |||||
[1] | As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and $10.9 million, respectively. |
SECURED BORROWINGS, Fly Aladd_2
SECURED BORROWINGS, Fly Aladdin Engine Funding Facility (Details) - Secured Borrowings [Member] $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)Engine | Dec. 31, 2018USD ($) | ||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 1,941,303 | $ 2,416,807 |
Fly Aladdin Engine Funding Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 42,719 | $ 43,829 |
Number of engines serving as security | Engine | 7 | ||
Maturity date, range start date | Dec. 31, 2021 | ||
Maturity date, range end date | Apr. 30, 2022 | ||
Fly Aladdin Engine Funding Facility [Member] | Minimum [Member] | |||
Secured Borrowings [Abstract] | |||
Interest rate | 4.94% | ||
Fly Aladdin Engine Funding Facility [Member] | Maximum [Member] | |||
Secured Borrowings [Abstract] | |||
Interest rate | 4.96% | ||
[1] | As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and $10.9 million, respectively. |
SECURED BORROWINGS, Other Aircr
SECURED BORROWINGS, Other Aircraft Secured Borrowings (Details) - Secured Borrowings [Member] $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019USD ($)AircraftLoan | Dec. 31, 2018USD ($) | ||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | [1] | $ 1,941,303 | $ 2,416,807 |
Other Aircraft Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Number of loans denominated in Euros | Loan | 1 | ||
Principal amount outstanding | [1] | $ 715,975 | $ 807,882 |
Number of aircraft serving as security | Aircraft | 15 | ||
Recourse debt | $ 405,400 | ||
Maturity date, range start date | Dec. 31, 2020 | ||
Maturity date, range end date | Jun. 30, 2028 | ||
[1] | As of September 30, 2019 and December 31, 2018, accrued interest on secured borrowings totaled $11.4 million and $10.9 million, respectively. |
DERIVATIVES, Derivatives (Detai
DERIVATIVES, Derivatives (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Derivatives [Abstract] | |||||
Fair value of derivative assets | $ 6,656 | $ 6,656 | $ 5,929 | ||
Fair value of derivative liabilities | 37,618 | 37,618 | 8,558 | ||
Reclassification of prior period losses into other comprehensive loss due to adoption of new accounting guidance | 0 | ||||
Interest expense | 33,580 | $ 37,472 | 107,198 | $ 104,039 | |
Operating lease revenue | 94,706 | 328,581 | |||
Operating lease revenue | 99,347 | 285,747 | |||
Retained Earnings [Member] | |||||
Derivatives [Abstract] | |||||
Reclassification of prior period losses into other comprehensive loss due to adoption of new accounting guidance | 168 | ||||
Accumulated Other Comprehensive Loss, Net [Member] | |||||
Derivatives [Abstract] | |||||
Reclassification of prior period losses into other comprehensive loss due to adoption of new accounting guidance | (168) | ||||
ASU 2017-12 [Member] | Retained Earnings [Member] | |||||
Derivatives [Abstract] | |||||
Reclassification of prior period losses into other comprehensive loss due to adoption of new accounting guidance | 168 | ||||
ASU 2017-12 [Member] | Accumulated Other Comprehensive Loss, Net [Member] | |||||
Derivatives [Abstract] | |||||
Reclassification of prior period losses into other comprehensive loss due to adoption of new accounting guidance | (168) | ||||
Debt with Floating Interest Rates Associated with Aircraft with Fixed Rate Rentals [Member] | |||||
Derivatives [Abstract] | |||||
Debt | 1,300,000 | 1,300,000 | |||
Interest Rate Swap Contracts [Member] | |||||
Derivatives [Abstract] | |||||
Notional amounts | 1,000,000 | 1,000,000 | 1,100,000 | ||
Fair value of derivative assets | 500 | 500 | 3,200 | ||
Fair value of derivative liabilities | 37,600 | 37,600 | 8,600 | ||
Interest expense | 800 | 1,400 | $ 1,500 | 4,500 | |
Interest Rate Swap Contracts [Member] | LIBOR [Member] | Minimum [Member] | |||||
Derivatives [Abstract] | |||||
Term of variable rate | 1 month | ||||
Interest Rate Swap Contracts [Member] | LIBOR [Member] | Maximum [Member] | |||||
Derivatives [Abstract] | |||||
Term of variable rate | 3 months | ||||
Cross Currency Swap Contract [Member] | |||||
Derivatives [Abstract] | |||||
Notional amounts | 61,100 | $ 61,100 | |||
Fair value of derivative assets | 6,200 | 6,200 | $ 2,700 | ||
Operating lease revenue | $ 400 | $ 1,000 | |||
Operating lease revenue | $ 300 | $ 500 |
DERIVATIVES, Designated Derivat
DERIVATIVES, Designated Derivative Assets (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)Instrument | Dec. 31, 2018USD ($) | |
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ 6,656 | $ 5,929 |
Cross Currency Swap Contract [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ 6,200 | $ 2,700 |
Designated Derivatives [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 1 | |
Designated Derivatives [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ 6,200 | |
Gain recognized in accumulated comprehensive loss | $ 5,405 | |
Designated Derivatives [Member] | Cross Currency Swap Contract [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 1 | |
Maturity date | Nov. 26, 2025 | |
Contracted fixed conversion rate | 1.3068 | |
Contract notional amount | $ 61,067 | |
Gain recognized in accumulated comprehensive loss | 5,405 | |
Designated Derivatives [Member] | Cross Currency Swap Contract [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | 6,177 | |
Accrued rent | $ 23 |
DERIVATIVES, Designated Deriv_2
DERIVATIVES, Designated Derivative Liabilities (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)Instrument | Dec. 31, 2018USD ($) | |
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ (37,618) | $ (8,558) |
Designated Derivatives [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 31 | |
Contract notional amount | $ 826,565 | |
Designated Derivatives [Member] | Derivative Liabilities [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | (34,087) | |
Loss recognized in accumulated comprehensive loss, net of tax | $ (28,496) | |
Designated Derivatives [Member] | Interest Rate Swap Contracts Liability [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 31 | |
Contract notional amount | $ 826,565 | |
Loss recognized in accumulated comprehensive loss, net of tax | $ (28,496) | |
Designated Derivatives [Member] | Interest Rate Swap Contracts Liability [Member] | Minimum [Member] | ||
Derivatives [Abstract] | ||
Maturity date | Feb. 9, 2023 | |
Hedge interest rate | 2.28% | |
Designated Derivatives [Member] | Interest Rate Swap Contracts Liability [Member] | Maximum [Member] | ||
Derivatives [Abstract] | ||
Maturity date | Dec. 8, 2025 | |
Hedge interest rate | 3.13% | |
Designated Derivatives [Member] | Interest Rate Swap Contracts Liability [Member] | Derivative Liabilities [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ (33,425) | |
Accrued interest | $ (662) |
DERIVATIVES, Dedesignated Deriv
DERIVATIVES, Dedesignated Derivatives (Details) - Dedesignated Derivatives [Member] - Interest Rate Swap Contracts [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Derivatives [Abstract] | |
Loss recognized in accumulated comprehensive loss, net of tax | $ (249) |
Amortization from accumulated comprehensive loss to interest expense | $ 500 |
DERIVATIVES, Dedesignated Der_2
DERIVATIVES, Dedesignated Derivative Assets (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019USD ($)Instrument | Dec. 31, 2018USD ($) | |
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ 6,656 | $ 5,929 |
Dedesignated Derivatives [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 2 | |
Contract notional amount | $ 48,728 | |
Credit risk adjusted fair value | 456 | |
Dedesignated Derivatives [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Loss recognized in accumulated comprehensive loss | $ 0 | |
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 2 | |
Maturity date | Feb. 15, 2022 | |
Contract notional amount | $ 48,728 | |
Credit risk adjusted fair value | 436 | |
Accrued interest | 20 | |
Loss recognized in accumulated comprehensive loss | $ 0 | |
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Minimum [Member] | ||
Derivatives [Abstract] | ||
Hedge interest rate | 0.99% | |
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Maximum [Member] | ||
Derivatives [Abstract] | ||
Hedge interest rate | 1.07% |
DERIVATIVES, Dedesignated Der_3
DERIVATIVES, Dedesignated Derivative Liabilities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019USD ($)Instrument | Sep. 30, 2019USD ($)InstrumentContract | Dec. 31, 2018USD ($) | |
Derivatives [Abstract] | |||
Credit risk adjusted fair value | $ (37,618) | $ (37,618) | $ (8,558) |
Reclassification of accumulated comprehensive loss, net of tax to loss on derivative instruments | $ 2,100 | $ 2,300 | |
Interest Rate Swap Contracts [Member] | |||
Derivatives [Abstract] | |||
Number of contracts matured | Contract | 1 | ||
Number of contracts terminated | Contract | 2 | ||
Dedesignated Derivatives [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 14 | 14 | |
Contract notional amount | $ 102,955 | $ 102,955 | |
Credit risk adjusted fair value | (3,531) | (3,531) | |
Dedesignated Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Loss recognized in accumulated comprehensive loss | $ (249) | $ (249) | |
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 14 | 14 | |
Contract notional amount | $ 102,955 | $ 102,955 | |
Credit risk adjusted fair value | (3,502) | (3,502) | |
Accrued interest | (29) | (29) | |
Loss recognized in accumulated comprehensive loss | $ (249) | $ (249) | |
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Minimum [Member] | |||
Derivatives [Abstract] | |||
Maturity date | Nov. 9, 2021 | ||
Hedge interest rate | 1.93% | 1.93% | |
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Maximum [Member] | |||
Derivatives [Abstract] | |||
Maturity date | Jun. 15, 2023 | ||
Hedge interest rate | 3.03% | 3.03% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income Taxes [Abstract] | |||||
Effective tax rate | 12.00% | 13.60% | 10.10% | 14.70% | |
Decrease in tax liability in connection with unrepatriated Australian earnings | $ (1,000) | $ (1,000) | |||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 | ||
Ireland [Member] | |||||
Income Taxes [Abstract] | |||||
Corporation tax rate on trading income | 12.50% | ||||
Corporation tax rate on non-trading income | 25.00% |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - 2010 Omnibus Incentive Plan [Member] - $ / shares | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Apr. 29, 2010 | |
Description of Plan [Abstract] | |||
Number of shares authorized (in shares) | 1,500,000 | ||
SARs [Member] | |||
Description of Plan [Abstract] | |||
Exercised (in shares) | 555,569 | 782,955 | |
Exercised (in dollars per share) | $ 12.84 | $ 12.73 | |
Outstanding (in shares) | 14,025 | 14,025 | |
Exercisable (in shares) | 14,025 | 14,025 | |
Outstanding (in dollars per share) | $ 12.95 | $ 12.95 | |
Exercisable (in dollars per share) | $ 12.95 | $ 12.95 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Aug. 31, 2019 | Nov. 30, 2018 | |
Shareholders' Equity [Abstract] | ||||||
Shares repurchased (in shares) | 342,492 | 0 | 2,010,437 | 0 | ||
Average price per share repurchased (in dollars per share) | $ 16.83 | $ 16.29 | ||||
Repurchase of shares before commissions and fees | $ 5,800,000 | $ 32,800,000 | ||||
Dividends declared and paid | $ 0 | $ 0 | $ 0 | $ 0 | ||
Shares issued in connection with SARs exercised (in shares) | 202,610 | 258,828 | ||||
November 2018 Repurchase Program [Member] | ||||||
Shareholders' Equity [Abstract] | ||||||
Approved share repurchase program | $ 50,000,000 | |||||
August 2019 Repurchase Program [Member] | ||||||
Shareholders' Equity [Abstract] | ||||||
Approved share repurchase program | $ 50,000,000 | |||||
Remaining amount authorized | $ 50,000,000 | $ 50,000,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator [Abstract] | ||||
Net income attributable to common shareholders | $ 51,704 | $ 20,740 | $ 150,719 | $ 54,714 |
Denominator [Abstract] | ||||
Weighted average shares outstanding-Basic (in shares) | 30,873,297 | 30,302,193 | 31,846,836 | 28,764,793 |
Weighted average shares outstanding-Diluted (in shares) | 30,987,394 | 30,381,248 | 31,954,204 | 28,818,464 |
Basic [Abstract] | ||||
Distributed earnings (in dollars per share) | $ 0 | $ 0 | $ 0 | $ 0 |
Undistributed income (in dollars per share) | 1.67 | 0.68 | 4.73 | 1.90 |
Basic earnings per share (in dollars per share) | 1.67 | 0.68 | 4.73 | 1.90 |
Diluted [Abstract] | ||||
Distributed earnings (in dollars per share) | 0 | 0 | 0 | 0 |
Undistributed income (in dollars per share) | 1.67 | 0.68 | 4.72 | 1.90 |
Diluted earnings per share (in dollars per share) | $ 1.67 | $ 0.68 | $ 4.72 | $ 1.90 |
SARs [Member] | ||||
Denominator [Abstract] | ||||
Dilutive common equivalent shares (in shares) | 114,097 | 79,055 | 107,368 | 53,671 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Jul. 02, 2019USD ($)Aircraft | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Aug. 31, 2019Aircraft | Feb. 28, 2018Aircraft |
Commitments and Contingencies [Abstract] | |||||
Purchase of equity certificates | $ | $ 7,425 | $ 0 | |||
Horizon II [Member] | |||||
Commitments and Contingencies [Abstract] | |||||
Number of aircraft committed to be sold | 12 | ||||
Purchase of equity certificates | $ | $ 7,400 | ||||
Percentage of equity certificates purchased | 6.00% | ||||
Term of lock-up period | 7 years | ||||
Portfolio B [Member] | A320neo [Member] | |||||
Commitments and Contingencies [Abstract] | |||||
Number of aircraft to be acquired on operating leases | 21 | ||||
Portfolio C [Member] | A320neo [Member] | |||||
Commitments and Contingencies [Abstract] | |||||
Number of aircraft to be delivered in 2020 and 2021 after exercise of options | 8 | ||||
Portfolio C [Member] | A320neo [Member] | Maximum [Member] | |||||
Commitments and Contingencies [Abstract] | |||||
Number of aircraft to be acquired under options, not subject to lease, and delivered between 2019 and 2025 | 20 | ||||
Number of aircraft to be acquired under options, not subject to lease, to be delivered between 2021 and 2025 | 9 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
BBAM [Member] | Rent Fee for Aircraft Financed by Securitization Notes [Member] | ||||
Related Party Transactions [Abstract] | ||||
Percentage of aircraft rent collected | 3.50% | |||
Monthly fee per aircraft with related party | $ 1,000 | |||
BBAM [Member] | Sales Fee for Aircraft Financed by Securitization Notes [Member] | ||||
Related Party Transactions [Abstract] | ||||
Percentage of aggregate gross proceeds from disposition of aircraft or aviation asset | 1.50% | |||
BBAM [Member] | Fixed Administrative Agency Fee [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee per aircraft with related party | $ 1,000 | |||
BBAM [Member] | Fixed Administrative Agency Fee [Member] | B&B Air Funding [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee with related party | $ 20,000 | |||
BBAM [Member] | Servicing Fee [Member] | ||||
Related Party Transactions [Abstract] | ||||
Percentage of aircraft rent collected | 3.50% | |||
BBAM [Member] | Fixed Administrative Services Fee Under Term Loan [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee with related party | $ 10,000 | |||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Acquisition III Facility [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee with related party | 10,000 | |||
BBAM [Member] | Fixed Administrative Services Fee Under Magellan Acquisition Limited Facility [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee with related party | 10,000 | |||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Aladdin Acquisition Facility [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee with related party | $ 10,000 | |||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Aladdin Engine Funding Facility [Member] | ||||
Related Party Transactions [Abstract] | ||||
Percentage of aircraft rent collected | 3.50% | |||
Monthly fee with related party | $ 1,000 | |||
BBAM [Member] | Servicing and Administrative Fees [Member] | ||||
Related Party Transactions [Abstract] | ||||
Expenses with related party | $ 3,800,000 | $ 4,000,000 | 11,800,000 | $ 11,300,000 |
BBAM [Member] | Acquisition Fees [Member] | ||||
Related Party Transactions [Abstract] | ||||
Expenses with related party | 800,000 | 12,300,000 | $ 1,700,000 | 13,300,000 |
Percentage of gross acquisition cost of aircraft or aviation asset purchased | 1.50% | |||
BBAM [Member] | Disposition Fees [Member] | ||||
Related Party Transactions [Abstract] | ||||
Percentage of aggregate gross proceeds from disposition of aircraft or aviation asset | 1.50% | |||
Expenses with related party | 4,300,000 | 300,000 | $ 11,400,000 | 2,000,000 |
Manager [Member] | Fixed Management Fee [Member] | ||||
Related Party Transactions [Abstract] | ||||
Expenses with related party | $ 2,400,000 | $ 1,800,000 | $ 7,200,000 | $ 5,500,000 |
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% | |||
Manager [Member] | Fixed Management Fee [Member] | Maximum [Member] | ||||
Related Party Transactions [Abstract] | ||||
Adjustment increase over $2.7 billion | $ 2,000,000,000 | |||
Manager [Member] | Fixed Management Fee [Member] | Minimum [Member] | ||||
Related Party Transactions [Abstract] | ||||
Charges from related party | $ 5,000,000 |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS, Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||
Aircraft impairment | $ 0 | $ 0 | $ 0 | $ 0 | |
Carrying Amount [Member] | Securitization Notes [Member] | |||||
Financial Instruments [Abstract] | |||||
Debt | 0 | 0 | $ 85,584 | ||
Carrying Amount [Member] | Term Loan [Member] | |||||
Financial Instruments [Abstract] | |||||
Debt | 390,965 | 390,965 | 407,768 | ||
Carrying Amount [Member] | 2021 Notes [Member] | |||||
Financial Instruments [Abstract] | |||||
Debt | 325,000 | 325,000 | 325,000 | ||
Carrying Amount [Member] | 2024 Notes [Member] | |||||
Financial Instruments [Abstract] | |||||
Debt | 300,000 | 300,000 | 300,000 | ||
Fair Value [Member] | Securitization Notes [Member] | |||||
Financial Instruments [Abstract] | |||||
Debt | 0 | 0 | 80,770 | ||
Fair Value [Member] | Term Loan [Member] | |||||
Financial Instruments [Abstract] | |||||
Debt | 391,473 | 391,473 | 396,554 | ||
Fair Value [Member] | 2021 Notes [Member] | |||||
Financial Instruments [Abstract] | |||||
Debt | 330,688 | 330,688 | 329,875 | ||
Fair Value [Member] | 2024 Notes [Member] | |||||
Financial Instruments [Abstract] | |||||
Debt | $ 310,140 | $ 310,140 | $ 279,390 |
FAIR VALUE OF FINANCIAL INSTR_4
FAIR VALUE OF FINANCIAL INSTRUMENTS, Asset and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | $ 6,656 | $ 5,929 |
Derivative liabilities | 37,618 | 8,558 |
Recurring [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 6,656 | 5,929 |
Derivative liabilities | 37,618 | 8,558 |
Investment in equity certificates | 13,064 | 5,747 |
Recurring [Member] | Level 1 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Investment in equity certificates | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 6,656 | 5,929 |
Derivative liabilities | 37,618 | 8,558 |
Investment in equity certificates | 13,064 | 5,747 |
Recurring [Member] | Level 3 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Investment in equity certificates | $ 0 | $ 0 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | Oct. 31, 2019USD ($)Aircraft | Nov. 08, 2019Aircraft | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Subsequent Event [Abstract] | ||||
Purchase of equity certificates | $ 7,425 | $ 0 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Abstract] | ||||
Number of aircraft sold | Aircraft | 4 | |||
Subsequent Event [Member] | Horizon III [Member] | ||||
Subsequent Event [Abstract] | ||||
Number of aircraft committed to be sold | Aircraft | 6 | |||
Aggregate base purchase price | $ 150,500 | |||
Purchase of equity certificates | $ 3,100 | |||
Percentage of equity certificates purchased | 3.00% | |||
Term of lock-up period | 7 years |