Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Cover [Abstract] | |
Entity Registrant Name | Fly Leasing Ltd |
Entity Central Index Key | 0001407298 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 30,898,410 |
Document Type | 20-F |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 285,565 | $ 180,211 |
Restricted cash and cash equivalents | 52,738 | 100,869 |
Rent receivables | 14,264 | 9,307 |
Investment in finance lease, net | 11,639 | 12,822 |
Flight equipment held for sale, net | 144,119 | 259,644 |
Flight equipment held for operating lease, net | 2,720,000 | 3,228,018 |
Maintenance rights | 290,958 | 298,207 |
Deferred tax asset, net | 11,675 | 6,505 |
Fair value of derivative assets | 4,824 | 5,929 |
Other assets, net | 129,377 | 124,960 |
Total assets | 3,665,159 | 4,226,472 |
Liabilities | ||
Accounts payable and accrued liabilities | 22,746 | 23,146 |
Rentals received in advance | 16,391 | 21,322 |
Payable to related parties | 10,077 | 4,462 |
Security deposits | 40,726 | 60,097 |
Maintenance payment liability, net | 219,371 | 292,586 |
Unsecured borrowings, net | 619,407 | 617,664 |
Secured borrowings, net | 1,695,525 | 2,379,869 |
Deferred tax liability, net | 57,935 | 36,256 |
Fair value of derivative liabilities | 27,943 | 8,558 |
Other liabilities | 76,761 | 80,402 |
Total liabilities | 2,786,882 | 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 December 31, 2019 and 2018, respectively | 31 | 33 |
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 516,254 | 549,123 |
Retained earnings | 380,392 | 154,347 |
Accumulated other comprehensive loss, net | (18,400) | (1,393) |
Total shareholders' equity | 878,277 | 702,110 |
Total liabilities and shareholders' equity | $ 3,665,159 | $ 4,226,472 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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 - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | |||
Operating lease revenue | $ 464,399 | ||
Operating lease revenue | $ 399,514 | $ 346,894 | |
Finance lease revenue | 618 | ||
Finance lease revenue | 675 | 731 | |
Equity earnings (loss) from unconsolidated subsidiary | 2,717 | (54) | 496 |
Gain on sale of aircraft | 97,323 | 13,398 | 3,926 |
Interest and other income | 9,967 | 4,766 | 1,204 |
Total revenues | 575,024 | 418,299 | 353,251 |
Expenses | |||
Depreciation | 140,798 | 144,084 | 133,227 |
Aircraft impairment | 0 | 0 | 22,000 |
Interest expense | 137,133 | 144,742 | 127,782 |
Selling, general and administrative | 35,304 | 31,185 | 30,671 |
Loss (gain) on derivatives | 2,720 | (2,382) | (192) |
Loss on modification and extinguishment of debt | 9,590 | 2,474 | 23,309 |
Maintenance and other costs | 3,075 | 2,547 | 2,524 |
Total expenses | 328,620 | 322,650 | 339,321 |
Net income before provision for income taxes | 246,404 | 95,649 | 13,930 |
Provision for income taxes | 20,527 | 9,926 | 11,332 |
Net income | $ 225,877 | $ 85,723 | $ 2,598 |
Weighted average number of shares: | |||
Basic (in shares) | 31,607,781 | 29,744,083 | 30,307,357 |
Diluted (in shares) | 31,715,469 | 29,783,904 | 30,353,425 |
Earnings per share: | |||
Basic (in dollars per share) | $ 7.15 | $ 2.88 | $ 0.09 |
Diluted (in dollars per share) | $ 7.12 | $ 2.88 | $ 0.09 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 225,877 | $ 85,723 | $ 2,598 | |
Other components of comprehensive income (loss), net of tax: | ||||
Change in fair value of derivatives, net of deferred tax | [1],[2] | (19,668) | (530) | 3,926 |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1],[3] | 2,829 | 3,717 | 1,239 |
Comprehensive income | $ 209,038 | $ 88,910 | $ 7,763 | |
[1] | See Note 11 to Notes to Consolidated Financial Statements. | |||
[2] | The associated deferred tax benefit for the years ended December 31, 2019 and 2018 was $3.5 million and $0.7 million, respectively. The associated deferred tax expense was $0.6 million for the year ended December 31, 2017. | |||
[3] | The associated deferred tax expense was $0.4 million, $0.3 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other components of comprehensive income (loss), net of tax: | |||
Change in fair value of derivatives, deferred tax expense (benefit) | $ (3.5) | $ (0.7) | $ 0.6 |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 0.4 | $ 0.3 | $ 0.2 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Manager Shares [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss, Net [Member] | Total | ||||||
Beginning balance at Dec. 31, 2016 | $ 0 | $ 32 | $ 536,922 | $ 66,026 | $ (9,745) | $ 593,235 | ||||||
Beginning balance (in shares) at Dec. 31, 2016 | 100 | 32,256,440 | ||||||||||
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 | 1,481 | 1,481 | |||||||||
Shares repurchased | $ 0 | $ (4) | (57,285) | 0 | 0 | $ (57,289) | ||||||
Shares repurchased (in shares) | (4,274,569) | (4,274,569) | ||||||||||
Net income | 0 | $ 0 | 0 | 2,598 | 0 | $ 2,598 | ||||||
Net change in the fair value of derivatives, net of deferred tax | 0 | 0 | [1] | 0 | [1] | 0 | [1] | 3,926 | [1] | 3,926 | [1],[2] | |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | 0 | 0 | [1] | 0 | [1] | 0 | [1] | 1,239 | [1] | 1,239 | [1],[3] | |
Ending balance at Dec. 31, 2017 | $ 0 | $ 28 | 479,637 | 68,624 | (4,580) | $ 543,709 | ||||||
Ending balance (in shares) at Dec. 31, 2017 | 100 | 27,983,352 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Shares issued in connection with SARs exercised (in shares) | 0 | |||||||||||
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 | 85,723 | 0 | 85,723 | ||||||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (530) | (530) | [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 | 3,717 | 3,717 | [3] | ||||
Ending balance at Dec. 31, 2018 | $ 0 | $ 33 | 549,123 | 154,347 | (1,393) | 702,110 | ||||||
Ending 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 | 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 | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | ||||||
Shares issued in connection with SARs exercised (in shares) | 0 | 258,828 | 258,828 | |||||||||
Shares repurchased | $ 0 | $ (2) | (32,869) | 0 | 0 | $ (32,871) | ||||||
Shares repurchased (in shares) | 0 | (2,010,437) | (2,010,437) | |||||||||
Net income | $ 0 | $ 0 | 0 | 225,877 | 0 | $ 225,877 | ||||||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (19,668) | (19,668) | [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 | 2,829 | 2,829 | [3] | ||||
Ending balance at Dec. 31, 2019 | $ 0 | $ 31 | $ 516,254 | $ 380,392 | $ (18,400) | $ 878,277 | ||||||
Ending balance (in shares) at Dec. 31, 2019 | 100 | 30,898,410 | ||||||||||
[1] | See Note 11 to Notes to Consolidated Financial Statements. | |||||||||||
[2] | The associated deferred tax benefit for the years ended December 31, 2019 and 2018 was $3.5 million and $0.7 million, respectively. The associated deferred tax expense was $0.6 million for the year ended December 31, 2017. | |||||||||||
[3] | The associated deferred tax expense was $0.4 million, $0.3 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Consolidated Statements of Shareholders' Equity [Abstract] | |
Change in fair value of derivatives, deferred tax expense (benefit) | $ (3.5) |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | 0.4 |
Reclassification from prior period losses into other comprehensive loss due to adoption of new accounting guidance, deferred tax | $ 0.1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 225,877 | $ 85,723 | $ 2,598 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Finance lease revenue | (618) | ||
Finance lease revenue | (675) | (731) | |
Equity (earnings) loss from unconsolidated subsidiary | (2,717) | 54 | (496) |
Gain on sale of aircraft | (97,323) | (13,398) | (3,926) |
Depreciation | 140,798 | 144,084 | 133,227 |
Aircraft impairment | 0 | 0 | 22,000 |
Amortization of debt discounts and debt issuance costs | 9,906 | 9,455 | 7,955 |
Amortization of lease incentives and other items | 6,152 | 11,409 | 9,303 |
Loss on modification and extinguishment of debt | 9,590 | 2,474 | 23,309 |
Unrealized foreign exchange (gain) loss | (271) | (563) | 2,305 |
Provision for deferred income taxes | 20,449 | 9,864 | 5,178 |
Loss (gain) on derivative instruments | 3,224 | (1,269) | (478) |
Security deposits and maintenance payment liability recognized into earnings | (47,890) | (15,597) | (16,268) |
Distributions from unconsolidated subsidiary | 2,727 | 2,131 | 0 |
Cash receipts from maintenance rights | 4,637 | 3,013 | 0 |
Maintenance rights recognized into earnings | 0 | 0 | 465 |
Changes in operating assets and liabilities: | |||
Rent receivables | (10,668) | (12,866) | (4,251) |
Other assets | (2,160) | (4,119) | (2,599) |
Payable to related parties | 5,615 | 2,378 | (10,126) |
Accounts payable, accrued liabilities and other liabilities | 4,842 | 18,982 | 11,588 |
Net cash flows provided by operating activities | 272,170 | 241,080 | 179,053 |
Cash Flows from Investing Activities | |||
Distributions from unconsolidated subsidiary | 2,639 | 3,103 | 0 |
Rent received from finance lease | 1,800 | 1,800 | 1,880 |
Net payments for derivative settlements | (3,208) | 0 | 0 |
Investment income from equity certificates | 1,603 | 0 | 0 |
Purchase of equity certificates | (10,481) | (5,747) | 0 |
Purchase of flight equipment | (319,995) | (934,481) | (434,122) |
Proceeds from sale of aircraft, net | 824,116 | 177,702 | 21,750 |
Capitalized interest on Portfolio B orderbook | (4,893) | 0 | 0 |
Purchase price allocated to Portfolio B orderbook value | 0 | (80,450) | 0 |
Payments for aircraft improvement | (8,085) | (6,779) | (7,357) |
Payments for lessor maintenance obligations | (2,110) | (8,601) | (12,564) |
Net cash flows provided by (used in) investing activities | 481,386 | (853,453) | (430,413) |
Cash Flows from Financing Activities | |||
Security deposits received | 4,369 | 15,042 | 7,196 |
Security deposits returned | (4,617) | (8,716) | (3,554) |
Maintenance payment liability receipts | 60,744 | 84,102 | 75,765 |
Maintenance payment liability disbursements | (22,567) | (15,495) | (14,303) |
Net swap termination payments | 0 | 1,801 | 0 |
Debt modification and extinguishment costs | (2,052) | 301 | (17,396) |
Debt issuance costs | (342) | (3,619) | (1,464) |
Proceeds from unsecured borrowings | 0 | 0 | 295,150 |
Repayment of unsecured borrowings | 0 | 0 | (375,000) |
Proceeds from secured borrowings | 0 | 826,396 | 513,459 |
Repayment of secured borrowings | (698,989) | (482,703) | (326,909) |
Net proceeds from issuance of shares | 0 | 19,624 | 0 |
Shares repurchased | (32,871) | 0 | (57,286) |
Net cash flows (used in) provided by financing activities | (696,325) | 436,733 | 95,658 |
Effect of exchange rate changes on unrestricted and restricted cash and cash equivalents | (8) | (95) | 430 |
Net increase (decrease) in unrestricted and restricted cash and cash equivalents | 57,223 | (175,735) | (155,272) |
Unrestricted and restricted cash and cash equivalents at beginning of year | 281,080 | 456,815 | 612,087 |
Unrestricted and restricted cash and cash equivalents at end of year | 338,303 | 281,080 | 456,815 |
Reconciliation to Consolidated Balance Sheets: | |||
Cash and cash equivalents at end of year | 285,565 | 180,211 | 329,105 |
Restricted cash and cash equivalents | 52,738 | 100,869 | 127,710 |
Unrestricted and restricted cash and cash equivalents at end of year | $ 338,303 | $ 281,080 | $ 456,815 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 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 the Company was 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 | 12 Months Ended |
Dec. 31, 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 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 . RISKS AND UNCERTAINTIES The Company encounters several types of risk during the course of its business, including credit, market, aviation industry and capital market risks. Credit risk addresses a lessee’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects the change in the value of derivatives and credit facilities due to changes in interest rate spreads or other market factors, including the value of collateral underlying the Company’s credit facilities. Aviation industry risk is the risk of a downturn in the commercial aviation industry, as a result of global, regional or industry-specific factors, which could adversely impact a lessee’s ability to make payments, increase the risk of unscheduled lease terminations and depress lease rates and the value of the Company’s aircraft and aircraft equipment. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing credit facilities . CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents . RESTRICTED CASH AND CASH EQUIVALENTS The Company’s restricted cash and cash equivalents consist primarily of (i) security deposits and certain maintenance payments received from lessees under the terms of the lease agreements, (ii) a portion of rents collected which may be required to be held as cash collateral under certain of the Company’s debt facilities and (iii) other cash, which may be subject to withdrawal restrictions pursuant to the Company’s credit agreements. All restricted cash is held by major financial institutions in segregated accounts . RENT RECEIVABLES Rent receivables represent unpaid lessee obligations under existing lease contracts. Any allowance for doubtful accounts is established on a specific identification basis and is maintained at a level believed by management to be adequate to absorb probable losses associated with rent receivables. The assessment of credit risk is primarily based on the extent to which amounts outstanding exceed the value of security held, the financial strength and condition of a debtor and the current economic and regulatory conditions of the debtor’s operating environment. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows and consideration of current factors and economic trends impacting the lessees and their credit worthiness, all of which may be susceptible to significant change. Uncollectible rent receivables are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is recorded based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors . As of December 31, 2019 and 2018, the Company had no allowance for doubtful accounts. In addition, the Company places a lessee on non-accrual status once it determines that it is no longer probable that the Company will receive the economic benefits of the lease. The Company recognizes revenue from a lessee on non-accrual status to the extent cash is received . INVESTMENT IN FINANCE LEASE The Company has recorded one lease as an investment in finance lease. The investment in finance lease equals the sum of amounts to be received under the lease, plus the estimated residual value of the equipment at lease termination, less unearned income. Residual value reflects management’s estimate of the amounts to be received at lease termination from the re-lease or disposition of the leased equipment. Initial unearned income represents the amount by which the original sum of the lease receivable and the estimated residual value exceeds the original cost of the leased equipment. Unearned income is recognized as finance lease income over the lease term in a manner that produces a constant rate of return on the net investment in the lease based on an implicit interest rate. Initial direct costs and fees related to lease origination are deferred as part of the investment and amortized over the lease term . FLIGHT EQUIPMENT HELD FOR SALE Flight equipment is classified as held for sale when the Company commits to and commences a plan of sale that is reasonably expected to be completed within one year and satisfies other criteria. Flight equipment held for sale is recorded at the lesser of carrying value or fair value, less estimated cost to sell. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. An impairment loss is recorded for an asset or asset group held for sale when the carrying value of the asset or asset group exceeds its fair value, less estimated cost to sell. Aircraft classified as flight equipment held for sale are not depreciated . Subsequent changes to the asset’s fair value are recorded as adjustments to the carrying value of the flight equipment. However, any such adjustment will not cause the asset’s fair value to exceed its original carrying value . FLIGHT EQUIPMENT HELD FOR OPERATING LEASE Flight equipment held for operating lease is recorded at cost, net of any impairment charges, and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of the original manufacturer’s estimated realized price for the flight equipment when new. Management may, at its discretion, make exceptions to this policy on a case by case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of residual values. Examples of such situations include, but are not limited to : ● Flight equipment where original manufacturer’s prices are not relevant due to plane modifications and conversions . ● Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence . ● The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture . ● Flight equipment that management believes will be disposed of prior to the end of its estimated useful life . Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, during each reporting period . Major aircraft improvements or lessee-specific aircraft modifications to be performed by the Company pursuant to a lease agreement are accounted for as lease incentives and amortized against revenue over the term of the lease, assuming no lease renewal. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination . Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over a period to the next scheduled maintenance event. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred . IMPAIRMENT OF FLIGHT EQUIPMENT The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company’s evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft or aircraft equipment, adverse changes in market conditions for specific aircraft or engine types, third party appraisals of aircraft and aircraft equipment, published values for similar aircraft or aircraft equipment, any occurrence of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of the Company’s aircraft and aircraft equipment. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft or aircraft equipment are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value . Future cash flows are assumed to occur under current market conditions and assume adequate time for a sale between a willing and able buyer and a willing seller. Expected future lease rates are based on all relevant information available, including the existing lease, current contracted rates for similar aircraft, appraisal data and industry trends. Residual value assumptions generally reflect an aircraft’s salvage value, except where more recent industry information indicates a different value is appropriate . Impairment analyses require the use of assumptions and estimates, including the level of future rents, the residual value of the flight equipment to be realized upon sale at some future date, estimated downtime between re-leasing events and the amount of re-leasing costs . MAINTENANCE RIGHTS The Company identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft or aircraft equipment with in-place leases. A maintenance right asset represents the value of its contractual right under a lease to receive an aircraft or aircraft equipment in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company’s obligation to pay the lessee for the difference between the contractual maintenance condition of the aircraft or aircraft equipment at lease expiry and the actual maintenance condition of the aircraft or aircraft equipment on the acquisition date . The Company’s aircraft and aircraft equipment are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in its leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases) . EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft or aircraft equipment into a specified maintenance condition . Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft or aircraft equipment in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft or aircraft equipment is greater than the contractual return condition in the lease at lease expiry and the Company is required to pay the lessee in cash for the improved maintenance condition . When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft or aircraft equipment is returned at lease expiry in the contractually required maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company’s capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company’s capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with the Company’s policy with respect to major maintenance . When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft or aircraft equipment is returned at lease expiry in the contractually required maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement to the extent the improvement is substantiated and deemed to meet the Company’s capitalization policy . MR Leases Under MR Leases, the lessee is required to make periodic maintenance payments to the Company based upon usage of the aircraft or aircraft equipment. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee . Maintenance right assets in MR Leases represent the right to receive an aircraft or aircraft equipment in an improved condition relative to the actual condition on the acquisition date. The aircraft or aircraft equipment is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives . When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft or aircraft equipment is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded . There are no maintenance right liabilities for MR Leases . When flight equipment is sold, maintenance rights are released from the balance sheet as part of the disposition gain or loss . DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to manage its exposure to interest rate and foreign currency risks. All derivatives are recognized on the balance sheet at their fair values. Pursuant to U.S. GAAP, changes in the fair value of the item being hedged are recognized into earnings in the same period and in the same income statement line as the change in the fair value of the derivative instrument. On the date that the Company enters into a derivative contract, the Company typically documents all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for undertaking each hedge transaction . Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability. Changes in the fair value of a derivative that is designated and qualifies as an effective cash flow hedge are recorded in accumulated other comprehensive income, net of tax, until earnings are affected by the variability of cash flows of the hedged item. Any derivative gains and losses that are not effective in hedging the variability of expected cash flows of the hedged item or that do not qualify for hedge accounting treatment are recognized directly into income . At the hedge’s inception and at least every reporting period thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction . OTHER ASSETS Other assets consist primarily of the Company’s Portfolio B orderbook value (see Note 17 below), investment in equity certificates, net value added tax receivables, . Investment in equity certificates are initially accounted for at cost and subsequent changes in fair value are recognized into income. The Company accounts for its interest in the unconsolidated subsidiary using the equity method as it does not control the entity. Under the equity method, the Company’s investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated subsidiary’s undistributed earnings and losses, and distributions of dividends and capital . The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiary, including whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification . SECURITY DEPOSITS In the normal course of leasing flight equipment to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease . MAINTENANCE PAYMENT LIABILITY The Company’s flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly’s leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration and airworthiness directives . Under the terms of the lease agreements, cash collected from lessees for future maintenance of the aircraft is recorded as maintenance payment liabilities. The Company does not recognize such maintenance payments as revenue during the lease term. Maintenance payment liabilities are attributable to specific aircraft and are typically based on hours or cycles of utilization, depending upon the component. Upon the occurrence of qualified maintenance events, the lessee submits a request for reimbursement and upon disbursement of the funds, the liability is relieved . The lessor may be obligated to contribute to maintenance related expenses on an aircraft during the term of the lease. In other instances, the lessee or lessor may be obligated to make a payment to the other party at lease termination based on a computation stipulated in the lease agreement. The calculation is based on utilization and condition of the airframe, engines and other major life-limited components as determined at lease termination . The Company may also incur maintenance expenses on off-lease aircraft. Scheduled major maintenance or overhaul activities and costs for certain high-value components that are paid by the Company are capitalized and depreciated over the period until the next overhaul is required. Payments made by the Company for minor maintenance, repairs and re-leasing of aircraft are expensed as incurred . At lease termination, maintenance payment liabilities are offset against any maintenance right balance for the aircraft, and the remainder is recognized as end of lease income. When flight equipment is sold, the maintenance payment liability amounts may be remitted to the buyer in accordance with the terms of the related agreements and are released from the balance sheet as part of the disposition gain or loss . REVENUE RECOGNITION Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Where revenue amounts do not meet these recognition criteria, recognition is delayed until the criteria are met . ● Operating lease revenue . ● End of lease income . ● Lease incentives. . ● Lease premiums and lease discounts . ● Finance lease income . INCOME TAXES The Company provides for income taxes by tax jurisdiction. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statements and tax basis of existing assets and liabilities at the enacted tax rates expected to apply when the assets are recovered or liabilities are settled. A valuation allowance is used to reduce deferred tax assets to the amount that management ultimately expects to be more likely than not realized . The Company recognizes an uncertain tax benefit only to the extent that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The Company has elected to classify interest on unpaid income taxes and penalties as a component of the provision for income taxes. No interest on unpaid income taxes and penalties were incurred during each of the years ended December 31, 2019, 2018 and 2017 . NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (the “FASB”) issued its new lease accounting 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 financial statements. 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 is effective for fiscal years (including interim periods) beginning after December 15, 2019, and early adoption is permitted. The Company adopted the guidance effective January 1, 2020. The adoption of the standard did not have a material effect on the Company’s consolidated financial statements. |
SUPPLEMENTAL DISCLOSURE TO CONS
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS | 12 Months Ended |
Dec. 31, 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 Years ended 2019 2018 2017 (Dollars in thousands) Cash paid during the year for: Interest $ 126,659 $ 126,648 $ 113,710 Taxes 787 4,163 2,155 Noncash Activities: Security deposits applied to rent receivables and maintenance payment liability 3,224 1 2,045 Maintenance payment liability applied to rent receivables, maintenance rights, and other liabilities 9,133 25,837 68 Other liabilities applied to security deposits, maintenance payment liability and rent receivables 5,016 5,520 676 Noncash investing activities: Aircraft improvement 7,143 10,870 192 Noncash activities in connection with purchase of flight equipment 34,925 79,727 3,979 Noncash activities in connection with sale of flight equipment 20,480 2,648 — |
INVESTMENT IN FINANCE LEASE
INVESTMENT IN FINANCE LEASE | 12 Months Ended |
Dec. 31, 2019 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
INVESTMENT IN FINANCE LEASE | 4. INVESTMENT IN FINANCE LEASE At each of The Company’s net investment in finance lease consisted of the following (dollars in thousands): December 31, 2019 December 31, 2018 Total minimum lease payments receivable $ 9,600 $ 11,400 Estimated unguaranteed residual value of leased asset 4,227 4,227 Unearned finance income (2,188 ) (2,805 ) Net Investment in Finance Lease $ 11,639 $ 12,822 Presented below are the contracted future minimum rental payments due under the non-cancellable finance lease, as of December 31, 2019. Year ending December 31, (Dollars in thousands) 2020 $ 1,800 2021 1,800 2022 1,800 2023 1,800 2024 1,800 Thereafter 600 Future minimum rental payments under finance lease $ 9,600 |
FLIGHT EQUIPMENT HELD FOR SALE
FLIGHT EQUIPMENT HELD FOR SALE | 12 Months Ended |
Dec. 31, 2019 | |
FLIGHT EQUIPMENT HELD FOR SALE [Abstract] | |
FLIGHT EQUIPMENT HELD FOR SALE | 5. FLIGHT EQUIPMENT HELD FOR SALE At December 31, 2019 and 2018 , the Company had six aircraft and 12 aircraft classified as flight equipment held for sale, respectively. During the year ended December 31, 2019, the Company sold 25 aircraft classified as flight equipment held for sale During the year ended December 31, 2018, t he Company sold three aircraft classified as flight equipment held for sale 7.9 million . During the year ended December 31, 2017, t he Company sold one aircraft classified as flight equipment held for sale 3.9 million . |
FLIGHT EQUIPMENT HELD FOR OPERA
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE | 12 Months Ended |
Dec. 31, 2019 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE | 6. FLIGHT EQUIPMENT HELD FOR OPERATING LEASE As of December 31, 2019 , the Company had 81 aircraft and seven engines held for operating lease on lease to 39 lessees in 22 countries . As of , the Company had aircraft and seven engines held for operating lease on lease to lessees in countries . During the year ended December 31 , the Company . During the year ended December 31 , the Company . During the year ended December 31 , 2019, the Company sold ten aircraft held for operating lease and recognized an aggregate gain on sale of aircraft of $2.9 m illion . During the year ended December 31, 2018 , the Company sold aircraft held for operating lease and recognized an aggregate gain on sale of aircraft of $ million. The Company did not sell any aircraft held for operating lease during the year ended December 31, 2017. The Company did not recognize any aircraft impairment in 2019 or 2018. In August 2017, Air Berlin commenced insolvency proceedings in Germany and the United States. At that time, the Company had two aircraft on lease to Air Berlin. As a result of these insolvency proceedings, the Company recognized aircraft impairment of $22.0 million related to one of these aircraft . Flight equipment held for operating lease consists of the following (dollars in thousands): December 31, 2019 December 31, 2018 Cost $ 3,334,996 $ 3,900,938 Accumulated depreciation (614,996 ) (672,920 ) Flight equipment held for operating lease, net $ 2,720,000 $ 3,228,018 The Company capitalized and $ million of major maintenance for the years ended respectively The classification of the net book value of flight equipment held for operating lease, net and operating lease revenue by geographic region in the tables and discussion below is based on the principal operating location of the lessees. The distribution of the net book value of flight equipment held for operating lease by geographic region is as follows (dollars in thousands): December 31, 2019 December 31, 2018 Europe: Spain $ 161,474 6 % $ 168,534 5 % United Kingdom 52,212 2 % 169,763 5 % Turkey — — 22,843 1 % Other 259,176 9 % 242,711 8 % Europe — Total 472,862 17 % 603,851 19 % Asia and South Pacific: India 542,312 20 % 690,193 21 % Malaysia 406,777 15 % 394,441 12 % Philippines 264,814 10 % 276,237 9 % Indonesia 220,304 8 % 296,390 9 % China 168,703 6 % 177,393 5 % Other 113,713 4 % 161,330 6 % Asia and South Pacific — Total 1,716,623 63 % 1,995,984 62 % Mexico, South and Central America — Total 37,618 1 % 58,202 2 % North America: United States 95,910 4 % 126,498 4 % Other — — 49,320 1 % North America — Total 95,910 4 % 175,818 5 % Middle East and Africa: Ethiopia 303,057 11 % 312,977 10 % Other 51,815 2 % 81,186 2 % Middle East and Africa — Total 354,872 13 % 394,163 12 % Off-Lease — Total 42,115 2 % — — Total flight equipment held for operating lease, net $ 2,720,000 100 % $ 3,228,018 100 % The distribution of operating lease revenue by geographic region for the years ended December 31, 2019, 2018 and 2017 is as follows (dollars in thousands): Years ended 2019 2018 2017 Europe: Spain $ 17,475 4 % $ 17,267 4 % $ 11,199 3 % United Kingdom 79,022 17 % 31,259 8 % 29,182 8 % Turkey 2,041 — 12,114 3 % 17,103 5 % Germany 951 — — — 26,457 8 % Other 31,197 7 % 31,995 8 % 29,180 9 % Europe — Total 130,686 28 % 92,635 23 % 113,121 33 % Asia and South Pacific: India 103,422 22 % 87,492 22 % 64,381 18 % Malaysia 55,189 12 % 26,748 7 % 8,767 3 % Philippines 34,217 7 % 35,009 9 % 29,825 9 % Indonesia 32,882 7 % 32,336 8 % 16,308 5 % China 23,320 5 % 21,103 5 % 22,611 6 % Other 18,550 5 % 18,756 4 % 10,496 3 % Asia and South Pacific — Total 267,580 58 % 221,444 55 % 152,388 44 % Mexico, South and Central America — Total 5,425 1 % 11,415 3 % 17,565 5 % North America: United States 16,267 4 % 20,147 5 % 17,647 5 % Other 4,991 1 % 6,242 2 % 6,237 2 % North America — Total 21,258 5 % 26,389 7 % 23,884 7 % Middle East and Africa: Ethiopia 30,019 6 % 30,019 8 % 30,018 9 % Other 9,431 2 % 17,612 4 % 9,918 2 % Middle East and Africa — Total 39,450 8 % 47,631 12 % 39,936 11 % Total Operating Lease Revenue $ 464,399 100 % $ 399,514 100 % $ 346,894 100 % No customer accounted for 10% or more of total operating lease revenue for the year ended December 31, 2019. In each of the years ended December 31, 2018, and 2017, the Company had one customer (Air India) that accounted for 10% or more of total operating lease revenue. As of December 31, 2019, the Company had three , 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 year ended December 31, 2019, the Company recognized $13.6 million of operating lease revenue from these lessees. At December 31, 2018, the Company had two lessees, which leased a total of three aircraft, on non-accrual status. For the years ended December 31, 2019, 2018 and 2017, the Company recognized end of lease income, which is included in operating lease revenue, of $78.8 million, $20.3 million and $17.8 million, respectively. Approximately $52.8 million of end of lease income recognized in 2019 derived from four lessees in the United Kingdom. As of December 31, 2019 and 2018, the weighted average remaining lease term of the Company’s aircraft held for operating lease was 5.4 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. For the year ended December 31, 2019, the Company recognized $391.1 million of operating lease rental revenue, $71.4 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 December 31, 2019. For leases that have floating rental rates, the future minimum rental payments assume that LIBOR as of December 31, 2019 is held constant for the duration of the lease. Year ending December 31, (Dollars in thousands) 2020 $ 321,993 2021 288,459 2022 244,007 2023 201,380 2024 186,707 Thereafter 480,878 Future minimum rental payments under operating leases $ 1,723,424 For the years ended December 31, 2019, 2018 and 2017, amortization of lease incentives recorded as a reduction of operating lease revenue totaled $5.6 million, $9.7 million and $7.7 million, respectively. At December 31, 2019, lease incentive amortization for the next five years and thereafter is as follows (dollars in thousands): Year ending December 31, 2020 $ 2,573 2021 3,221 2022 2,821 2023 1,614 2024 736 Thereafter 303 Future amortization of lease incentives $ 11,268 |
MAINTENANCE RIGHTS
MAINTENANCE RIGHTS | 12 Months Ended |
Dec. 31, 2019 | |
MAINTENANCE RIGHTS [Abstract] | |
MAINTENANCE RIGHTS | 7. MAINTENANCE RIGHTS Changes in maintenance right assets, net of maintenance right liabilities, during the years ended December 31, 2019 and 2018 were as follows (dollars in thousands) : December 31, 2019 December 31, 2018 Maintenance rights, net beginning balance $ 298,207 $ 131,299 Acquisitions 94,664 189,864 Capitalized to aircraft improvements (6,739 ) (9,240 ) Maintenance rights (3,996 ) (2,369 ) Cash receipts from maintenance rights (4,637 ) (3,013 ) Maintenance rights associated with aircraft sold (86,541 ) (8,334 ) Maintenance rights, net ending balance $ 290,958 $ 298,207 |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ASSETS [Abstract] | |
OTHER ASSETS | 8. OTHER ASSETS The principal components of the Company’s other assets are as follows (dollars in thousands): December 31, 2019 December 31, 2018 Portfolio B orderbook value $ 100,935 $ 103,951 Equity certificates 16,048 5,747 Value added tax receivables, net 7,714 6,016 Investment in unconsolidated subsidiary 259 2,908 Other assets 4,421 6,338 Total other assets $ 129,377 $ 124,960 In 2019, the Company purchased $7.4 million, or 6%, and $3.1 million, or 3%, of the equity certificates issued by Horizon II Limited and Horizon III Limited, respectively. In 2018, the Company purchased $5.7 million, or 4%, of equity certificates issued by Horizon I Limited. The Company has entered into seven-year lock-up agreements in connection with the equity certificates. The Company has a 57.4% interest in Fly-Z/C Aircraft Holdings LP (“Fly-Z/C LP”). Summit Aviation Partners LLC (“Summit”) has a 10.2% interest in the joint venture. A subsidiary of BBAM Limited Partnership (“BBAM LP”) is the general partner of the joint venture. In 2019, the joint venture sold its last aircraft. During the years ended December 31, 2019 and 2018, the Company received cash distributions of $5.4 million and $5.2 million, respectively. During the year ended December 31, 2017, the Company received no distributions. |
UNSECURED BORROWINGS
UNSECURED BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
UNSECURED BORROWINGS [Abstract] | |
UNSECURED BORROWINGS | 9. UNSECURED BORROWINGS Balance as of December 31, 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 (5,593 ) (7,336 ) Unsecured borrowings, net $ 619,407 $ 617,664 On December 11, 2013, the Company sold $300.0 million aggregate principal amount of unsecured 6.75% Senior Notes due 2020 (together with the Additional 2020 Notes (as defined below), the “2020 Notes”). In connection with the issuance, the Company paid an underwriting discount totaling $8.5 million . On October 3, 2014, the Company sold $75.0 million aggregate principal amount of unsecured 6.75% Senior Notes due 2020 (the “Additional 2020 Notes”) and $325.0 million aggregate principal amount of 6.375% Senior Notes due 2021 (the “2021 Notes”). The Additional 2020 Notes were issued as additional notes under the 2020 Notes indenture and were sold at a price equal to 104.75% of the principal amount thereof. The 2021 Notes were issued under an indenture containing substantially similar terms as the indenture governing the 2020 Notes and were sold at par. In connection with these issuances, the Company paid a net underwriting discount totaling $3.4 million . On October 16, 2017, the Company sold $300.0 million aggregate principal amount of unsecured 5.250% Senior Notes due 2024 (the “2024 Notes”). The net proceeds to the Company were approximately $294.2 million, after deducting the underwriters’ discounts and commissions and offering expenses paid by the Company. The Company used the net proceeds from the sale of the 2024 Notes, together with cash on hand, to redeem all $375.0 million of its outstanding 2020 Notes on December 15, 2017. In connection with the redemption, the Company incurred debt extinguishment costs totaling $19.7 million . The 2021 Notes and 2024 Notes are senior unsecured obligations of the Company and rank pari passu . Interest on the 2021 Notes and 2024 Notes is payable semi-annually on April 15 and October 15 of each year . As of each of December 31, 2019 and 2018, accrued interest on unsecured borrowings totaled $7.7 million. 2021 Notes The Company may redeem the 2021 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date . If redeemed during the 12-month period commencing on October 15 of the years set forth below Redemption Price 2019 101.594 % 2020 and thereafter 100.000 % 2024 Notes At any time prior to October 15, 2020, the Company may redeem up to 35% of the original principal amount of the 2024 Notes with the proceeds of certain equity offerings at a redemption price of 105.250% of the principal amount thereof, together with accrued and unpaid interest to, but not including, the date of redemption. On and after October 15, 2020, the Company may redeem the 2024 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date . If redeemed during the 12-month period commencing on October 15 of the years set forth below Redemption Price 2020 102.625 % 2021 101.313 % 2022 and thereafter 100.000 % At any time prior to October 15, 2020, the Company may also redeem all or a portion of the 2024 Notes at par, plus accrued and unpaid interest to the redemption date and a “make-whole premium” equal to the present value of all future interest payments called for under the indenture . Pursuant to the indentures governing the 2021 Notes and 2024 Notes, the Company is subject to restrictive covenants which relate to dividend payments, incurrence of debt and issuance of guarantees, incurrence of liens, repurchases of common shares, investments, disposition of aircraft, consolidation, merger or sale of the Company and transactions with affiliates. The Company is also subject to certain operating covenants, including reporting requirements. The Company’s failure to comply with any of the covenants under the indentures governing the 2021 Notes or 2024 Notes could result in an event of default which, if not cured or waived, may result in the acceleration of the indebtedness thereunder and other indebtedness containing cross-default or cross-acceleration provisions. Certain of these covenants will be suspended if the 2021 Notes or 2024 Notes obtain an investment grade rating . The indentures governing the 2021 Notes and the 2024 Notes contain customary events of default with respect to the notes of each series, including (i) default in payment when due and payable of principal or premium, (ii) default for 30 days or more in payment when due of interest, (iii) failure by the Company or any restricted subsidiary for 60 days after receipt of written notice given by the trustee or the holders of at least 25% in aggregate principal amount of the notes of such series then issued and outstanding to comply with any of the other agreements under the indenture, (iv) default in any of the aircraft owning entities in respect of obligations in excess of $50.0 million, which holders of such obligation accelerate or demand repayment of amounts due thereunder, (v) failure by the Company or any significant subsidiary to pay final judgments aggregating in excess of $50.0 million for 60 days after such judgment becomes final, subject to certain non-recourse exceptions, and (vi) certain events of bankruptcy or insolvency with respect to Fly or a significant subsidiary . As of December 31, 2019, the Company was not in default under the indentures governing the 2021 Notes or the 2024 Notes. |
SECURED BORROWINGS
SECURED BORROWINGS | 12 Months Ended |
Dec. 31, 2019 | |
SECURED BORROWINGS [Abstract] | |
SECURED BORROWINGS | 10. SECURED BORROWINGS The Company’s secured borrowings, net balance as of December 31, 2019 and 2018 are presented below (dollars in thousands): Outstanding principal balance as of December 31, Weighted average interest rate (1) December 31, 2019 (2) 2018 (2) 2019 2018 Maturity date Securitization Notes $ — $ 85,584 — 3.08 % — Nord LB Facility 65,290 108,882 3.59 % 4.29 % May 2021 Term Loan 385,364 407,768 4.15 % 5.17 % August 2025 Magellan Acquisition Limited Facility 278,684 305,226 4.11 % 4.18 % December 2025 Fly Acquisition III Facility — 190,457 — 4.10 % — Fly Aladdin Acquisition Facility 272,343 467,179 4.85 % 4.59 % June 2023 Fly Aladdin Engine Funding Facility 42,339 43,829 4.95 % 4.95 % December 2021 – April 2022 Other Aircraft Secured Borrowings 673,463 807,882 4.07 % 4.44 % December 2020 – June 2028 Total outstanding principal balance 1,717,483 2,416,807 Unamortized debt discounts and loan costs (21,958 ) (36,938 ) Total secured borrowings, net $ 1,695,525 $ 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 December 31, 2019 and 2018, accrued interest on secured borrowings totaled $9.2 million and $10.9 million, respectively. The Company is subject to restrictive covenants under its secured borrowings which relate to the incurrence of debt, issuance of guarantees, incurrence of liens or other encumbrances, the acquisition, substitution, disposition and re-lease of aircraft, maintenance, registration and insurance of its aircraft, restrictions on modification of aircraft and capital expenditures, and requirements to maintain concentration limits . The Company’s loan agreements include events of default that are customary for these types of secured borrowings. The Company’s failure to comply with any restrictive covenants, or any other operating covenants, may trigger an event of default under the relevant loan agreement. In addition, certain of the Company’s loan agreements contain cross-default provisions that could be triggered by a default under another loan agreement . As of December 31, 2019, the Company was not in default under any of its secured borrowings. Securitization Notes On March 14, 2019, B&B Air Funding redeemed all remaining 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 December 31, 2019, the Company had $65.3 three aircraft. The Nord LB Facility is structured with loans secured by each aircraft individually. The loans are cross-collateralized and contain cross-default provisions. Borrowings are secured by Fly’s equity interests in the aircraft owning and leasing subsidiaries, the related leases, and certain deposits. Prior to November 14, 2018, the loans bore interest at one-month LIBOR plus a margin of 3.30%. Effective on November 14, 2018, the Company amended the loans under the Nord LB Facility to (i) extend the maturity date from November 14, 2018 to January 14, 2020 and (ii) reduce the margin to 1.85%. Under the terms of the Nord LB Facility, the Company applies 95% of lease rentals collected towards interest and principal. If no lease rental payments are collected in the applicable period for any financed aircraft, then no payment is due under the loan associated with that aircraft during such period. Any unpaid interest increases the principal amount of the associated loan . In the event the Company sells any of the financed aircraft, substantially all sale proceeds (after payment of certain expenses) must first be used to repay the debt associated with such aircraft and then to repay the outstanding amounts which finance the remaining aircraft. In addition, any maintenance reserve amounts retained by the Company will be used to prepay the Nord LB Facility, provided such reserves are not required for future maintenance of such aircraft. Upon termination or expiration of a lease other than by sale, no payments are due with respect to the outstanding loan associated with that aircraft until the earlier of (i) six months from such termination or expiration and (ii) the date on which the aircraft is re-leased. Interest during this period increases the outstanding balance under the facility. The Company must pay interest with respect to any aircraft that remains off-lease after six months, and if such aircraft continues to be off-lease after twelve months, the Company must pay debt service equal to 85% of the lease rate under the prior lease agreement. The lenders may require payment in full or foreclose on an aircraft that remains off-lease after 24 months but may not foreclose on any other aircraft in the facility. An event of default with respect to the loan on any aircraft will trigger an event of default on the loans with respect to every other financed aircraft. A default by any of the aircraft owning entities in respect of obligations in excess of $10.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder would constitute an event of default. Term Loan As of December 31, 2019, the Company had $385.4 million principal amount outstanding under its senior secured term loan (the “Term Loan”), which was secured by 27 aircraft. Fly has guaranteed all payments under the Term Loan. T Prior to November 22, 2019, the Term Loan bore interest at three-month LIBOR plus a margin of 2.00%. Effective on November 22, 2019, the Company amended the Term Loan to (i) reduce the margin to 1.75% and (ii) extend the maturity date from February 9, 2023 to August 9, 2025. The weighted average interest rate on all outstanding amounts was 4.15% as of December 31, 2019, excluding the amortization of debt discounts and debt issuance costs. The Term Loan requires quarterly principal payments of $5.6 million. In connection with the amendment completed in November 2019, the Company paid a one-time fee of 0.25% on the then outstanding principal amount to the Term Loan lenders and there was no prepayment penalty associated with this repricing. On April 28, 2017, the Company had amended the Term Loan to (i) reduce the margin from 2.75% to 2.25%, (ii) eliminate the LIBOR floor of 0.75% and (iii) extend the maturity date from February 2022 to February 2023. The Company had also upsized the Term Loan by $50.0 million. On November 1, 2017, the Company had further amended the Term Loan to reduce the margin to 2.00%. During the year ended December 31, 2017, the Company incurred debt extinguishment costs totaling $3.0 million in connection with these amendments. The Term Loan requires that the Company maintain a maximum loan-to-value ratio of 70.0% based on the lower of the mean or median of half-life adjusted base values of the financed aircraft as determined by three independent appraisers. The Term Loan contains certain concentration limits with respect to types of aircraft which can be financed in the Term Loan, as well as geographic and single lessee concentration limits. These concentration limits apply upon the acquisition, sale, removal or substitution of an aircraft. The Term Loan also includes certain customary covenants, including reporting requirements and maintenance of credit ratings. An event of default under the Term Loan includes any of the aircraft owning entities defaulting in respect of obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder. Magellan Acquisition Limited Facility As of December 31, 2019, the Company had $278.7 million principal amount outstanding in loans and notes under its term loan facility (“Magellan Acquisition Limited Facility”), which was secured by nine aircraft. Fly has guaranteed all payments under this facility. The Magellan Acquisition Limited Facility has a maturity date of December 8, 2025. 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 requires monthly principal payments of $2.2 million. 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 . Upon the sale of an aircraft, the borrower may substitute aircraft into the Magellan Acquisition Limited Facility subject to certain conditions. The substitute aircraft must be equal to or greater than the appraised value of the aircraft being substituted. The borrower must be in compliance with the concentration limits after such substitution. An event of default under the Magellan Acquisition Limited Facility includes a default in respect of Fly’s recourse obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder. Fly Acquisition III Facility 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 December 31, 2019, the Company had an were secured by Series B loans have a final maturity date of June 15, 2023 During the year ended December 31, 2019, the Company repaid Series A loans in full and a portion of Series B loans and expensed approximately $2.6 million of debt extinguishment costs. The Company paid aggregate arrangement and commitment fees of approximately $9.5 million to the lenders in 2018. During the fourth quarter of 2018, the Company prepaid $81.1 million of debt and wrote off approximately of unamortized loan costs and debt discounts as debt extinguishment costs. The 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 borrowers are required to maintain (i) a debt service coverage ratio of at least 1.15:1.00, (ii) a loan-to-value ratio equal to 71% and (iii) that 85% of aircraft financed under the facility (a) are on lease, (b) have been subject to a lease in the previous six months or (c) are subject to a letter of intent for a re-lease or sale. The tests in (ii) and (iii) are based on the average of the most recent half-life adjusted current market value of all aircraft financed under the facility, as determined by three independent appraisers on a semi-annual basis. Upon the occurrence of (i) a breach of the debt service coverage ratio continuing for two consecutive quarterly payment dates, (ii) an event of default that is continuing under the Fly Aladdin Acquisition Facility, or (iii) a default under any mortgage, indenture or instrument under which there is issued, or which secures or evidences, any recourse indebtedness of the Company in an aggregate principal amount exceeding $50.0 million, Fly will be required to deposit, or cause the borrowers to deposit, all maintenance reserves and security deposits received under the associated leases into pledged accounts. Upon the occurrence of a breach, on any payment date, of the loan-to-value ratio or the utilization test described above, and certain other events, all cash collected will be applied to repay the outstanding principal balance of the Series B loans until such breach is cured . The Fly Aladdin Acquisition Facility contains geographic and single lessee concentration limits, which apply upon the acquisition, sale, removal or substitution of an aircraft, as well as aircraft type eligibility for any aircraft substitution. Upon the sale of an aircraft, the borrowers may substitute an Airbus A320 or A321 model aircraft on operating lease to the AirAsia Group into the Fly Aladdin Acquisition Facility subject to certain conditions. The facility also includes certain customary covenants, including reporting requirements. A violation of any of these covenants could result in a default under the Fly Aladdin Acquisition Facility. Fly Aladdin Engine Funding Facility As of December 31, 2019, the Company had $42.3 million principal amount outstanding under a term loan facility (the “Fly Aladdin Engine Funding Facility”), which was secured by seven engines. Fly has guaranteed all payments under this facility. The loans have maturity dates ranging from December 31, 2021 to April 30, 2022. In October 2018, the Company drew down $43.9 million under the Fly Aladdin Engine Funding Facility and paid up-front fees of approximately $0.4 million. 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 Fly Aladdin Engine Funding 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 December 31, 2019, the Company had $673.5 million principal amount outstanding of other aircraft secured borrowings, which were secured by 14 aircraft. Of this amount, $372.1 million was recourse to Fly. 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. During the third quarter of 2018, the Company entered into a recourse secured borrowing in the amount of $122.5 million to finance an unencumbered aircraft. Future Minimum Principal Payments on Secured Borrowings During the year ended December 31, 2019, the Company made scheduled principal payments of $179.7 million on its secured borrowings. The anticipated future minimum principal payments due for its secured borrowings are as follows (dollars in thousands): Year ending December 31, 2020 $ 172,684 2021 241,435 2022 169,409 2023 408,302 2024 113,733 Thereafter 611,920 Future minimum principal payments due $ 1,717,483 |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2019 | |
DERIVATIVES [Abstract] | |
DERIVATIVES | 11. DERIVATIVES Derivatives are used by the Company to manage its exposure to identified risks, such as interest rate and foreign currency exchange fluctuations . T . As of December 31, 2019, the Company had $1.1 . Interest rate swap contracts allow the Company to pay fixed interest rates and receive variable interest rates with the swap counterparty based on either the one-month or three-month LIBOR applied to the notional amounts over the life of the contracts . As of December 31, 2019 and 2018, the Company had interest rate swap contracts with notional amounts aggregating $0.8 billion and $ billion, respectively. $3.2 million as of December 31, 2018. $27.9 million and $8.6 million as of December 31, 2019 and 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 $58.6 million in U.S. dollars. The unrealized fair value gain, reflected as a derivative asset, was $4.8 million and $2.7 million as of December 31, 2019 and 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), During the year ended December 31, 2019, the Company recorded $3.1 million interest expense in the consolidated statements of income from The Company also recognized $1.4 million of rental revenue, included in operating lease revenue in the consolidated statements of income, under d year ended December 31, 2019 During the year ended December 31, 2018, the Company recorded interest expense in the consolidated statements of income from The Company also recognized $0.8 million of rental revenue, included in operating lease revenue in the consolidated statements of income, under d year ended December 31, 2018 During the year ended December 31, 2017, the recorded interest expense in the consolidated statements of income from 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 December 31, 2019, ): Type Quantity Maturity Date Contracted Fixed Conversion Rate to U.S. Dollar Total Credit Risk Adjusted Fair Value Gain Recognized in Accumulated Comprehensive Loss Cross currency swap contract 1 11/26/25 1 EURO to $1.3068 $ 58,592 $ 4,805 $ 4,204 Accrued rent — 19 — Total - designated derivative asset 1 $ 58,592 $ 4,824 $ 4,204 As of December 31, 2019, ): Type Quantity Maturity Date Hedge Interest Rate Swap Contract Notional Amount Credit Risk Adjusted Fair Value Loss Recognized in Accumulated Comprehensive Loss Interest rate swap contracts 30 2/9/23-12/8/25 2.28%-3.13 % $ 792,636 $ (26,559 ) $ (22,615 ) Accrued interest — (932 ) — Total – designated derivative liabilities 30 $ 792,636 $ (27,491 ) $ (22,615 ) Dedesignated Derivatives Certain of the Company’s interest rate swap contracts no longer qualify for hedge accounting and have been dedesignated . As of , ): Type Quantity Maturity Date Hedge Interest Rate Swap Contract Notional Amount Credit Risk Adjusted Fair Value Interest rate swap contracts 3 6/15/23 2.66%-2.68 % $ 12,259 $ (434 ) Accrued interest — (18 ) Total – dedesignated derivative liabilities 3 $ 12,259 $ (452 ) At , During the year ended , the Company amortized $0.5 million from into interest expense. At December 31, 2018, the Company had an accumulated other comprehensive loss, net of tax, of $0.5 million, which will be amortized over the remaining term of the interest rate swap contracts due to dedesignation of interest rate swaps. During the year ended December 31, 2018, the Company amortized from into interest expense At December 31, 2017, the Company had an accumulated other comprehensive loss, net of tax, of $4.3 million, which will be amortized over the remaining term of the interest rate swap contracts. During the year ended December 31, 2017, the Company amortized from into interest expense During the year ended uring the year ended Fly did not designate as an accounting hedge the interest rate derivative contracts entered into during the year ended December 31, 2018 to partially lock-in the interest rate on anticipated future borrowings associated with the AirAsia transactions. Changes in the fair value of undesignated derivative instruments were recognized as gain or loss on derivatives in each reporting period. During the year ended December 31, 2018, the Company terminated these interest rate swap contracts and recognized a total gain of $1.8 million. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 12. 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 . Income tax expense (benefit) by jurisdiction is shown below (dollars in thousands ): Years ended 2019 2018 2017 Current tax expense (benefit): Ireland $ — $ — $ — Luxembourg 55 44 195 Australia — (138 ) 4,062 Other 23 50 43 Current tax expense (benefit) — total 78 (44 ) 4,300 Deferred tax expense (benefit): Ireland 21,359 9,865 8,710 Australia (910 ) 105 (1,743 ) Other — — 65 Deferred tax expense (benefit) — total 20,449 9,970 7,032 Total income tax expense (benefit) $ 20,527 $ 9,926 $ 11,332 The Company had no unrecognized tax benefits as of December 31, 2019 and 2018. The principal components of the Company’s net deferred tax asset (liability) were as follows (dollars in thousands): December 31, 2019 December 31, 2018 Deferred tax asset: Net operating loss carry forwards $ 142,685 $ 177,663 Net unrealized losses on derivative instruments 3,794 773 Basis difference on acquisition of GAAM Australian assets 6,575 6,619 Other 124 168 Valuation allowance (33,929 ) (37,429 ) Total deferred tax asset 119,249 147,794 Deferred tax liability: Excess of tax depreciation over book depreciation (165,343 ) (171,725 ) Miscellaneous book/tax differences (166 ) (112 ) Net earnings of non-European Union member subsidiaries — (3,654 ) Withholding tax on Australian unrepatriated earnings — (2,054 ) Total deferred tax liability (165,509 ) (177,545 ) Deferred tax liability, net $ (46,260 ) $ (29,751 ) The majority of the Company’s net operating loss carryforwards are attributable to Ireland. Under current tax rules in Ireland, the Company is allowed to carry forward its net operating losses for an indefinite period to offset any future income. The Company has recorded valuation allowances to reduce deferred tax assets to the extent it believes it is more likely than not that a portion of such assets will not be realized. In making such determinations, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and its ability to carry back losses to prior years. The Company is required to make assumptions and judgments about potential outcomes that may be outside its control. Critical factors include the projection, source, and character of future taxable income. Although realization is not assured, the Company believes it is more likely than not that deferred tax assets, net of the valuation allowance, will be realized. The amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward periods are reduced or current tax planning strategies are not implemented . At December 31, 2019 and 2018, the Company had a valuation allowance of $33.9 million and $37.4 million, respectively. For the years ended December 31, 2019 and 2018, the Company recorded net valuation allowance reversals of $3.4 million and $1.3 million, respectively. For the year ended December 31, 2017, the Company recorded a net valuation allowance provision of $8.4 million. For the years ended December 31, 2019, 2018 and 2017, the effective tax rate was 8.3%, respectively. : Years ended 2019 2018 2017 Irish statutory corporate tax rate on trading income 12.5 % 12.5 % 12.5 % Valuation allowances (1.4 )% (1.4 )% 59.9 % Tax impact of repurchased and resold Notes (0.1 )% 0.1 % (0.8 )% Foreign tax rate differentials (0.4 )% (2.8 )% (18.4 )% True-up of prior year tax provision (0.1 )% — 2.2 % Non-deductible interest expense, transaction fees and expenses 0.5 % 1.8 % 12.2 % Deductible interest paid in the period (2.7 )% — — Unrealized foreign exchange loss on re-valuation of deferred tax balances — 0.1 % 0.5 % Withholding tax — — 13.3 % Other — 0.1 % (0.1 )% Effective tax rate 8.3 % 10.4 % 81.3 % In earnings from Australia, which the Company reduced by $0.9 million in 2019. In 2019, t Under Irish tax legislation, Irish Revenue (“Revenue”) is entitled to make enquiries and/or raise an assessment of any corporation tax return submitted up to a period of four years from the end of the year in which the return is submitted. As such, Revenue is entitled to make enquiries and/or raise an assessment in respect of the corporation tax returns submitted by the Company’s Irish subsidiaries for each of the years ended December 31, 2015 to 2019 . Fly was notified by Revenue in November 2019 that a VAT audit for the period March 1, 2017 to June 30, 2018 will be conducted. Fly has not recorded any uncertain tax position liability or loss contingency related to this matter based on its position that Fly is able to reclaim any VAT that it is required to pay. In February 2018, Revenue issued a Value Added Tax (“VAT”) assessment to Fly for the period from January 1, 2014 to December 31, 2016 in the amount of 6.1 million Euros, representing a portion of the VAT refunded to Fly during that time period. Fly has had an ongoing dialogue with Revenue since January 2017, and in March 2018, Fly appealed the assessment and the case is currently progressing through the Tax Appeals Commission process. Fly has not recorded any liability related to this assessment based on the facts and circumstances, and as also supported by a relevant tax court case, the positions taken in Fly’s VAT returns are probable to be sustained upon ultimate resolution of this matter. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
OTHER LIABILITIES [Abstract] | |
OTHER LIABILITIES | 13. OTHER LIABILITIES The following table describes the principal components of the Company’s other liabilities (dollars in thousands): December 31, 2019 December 31, 2018 Current tax payable $ 308 $ 50 Lease discount 24,965 25,539 Lease incentive obligation 15,634 14,020 Deferred rent 15,715 15,067 Refundable deposits 3,210 3,420 Other 16,929 22,306 Total other liabilities $ 76,761 $ 80,402 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 14. SHARE-BASED COMPENSATION Description of Plan On April 29, 2010, the Company adopted the 2010 Omnibus Incentive Plan (“2010 Plan”) permitting the issuance of up to 1,500,000 share grants in the form of (i) 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 . SARs entitle the holder to receive any increase in value between the grant date price of Fly’s ADSs and their value on the exercise date. RSUs entitle the holder to receive a number of Fly’s ADSs equal to the number of RSUs awarded upon vesting. All awards are fully vested. The granted SARs and RSUs vested in three equal installments and expire on the tenth anniversary of the grant date. The Company satisfies SAR and RSU exercises with newly issued ADSs. The holder of a SAR or RSU is also entitled to dividend equivalent rights (“Dividend Equivalent”) on each SAR and RSU. For each Dividend Equivalent, the holder shall have the non-forfeitable right to receive a cash amount equal to the per share dividend paid by the Company during the period between the grant date and the earlier of the (i) award exercise or vesting date, (ii) termination date or (iii) expiration date. Dividend Equivalents expire at the same time and in the same proportion that the SARs and RSUs are exercised, cancelled, forfeited or expired. Grant Activity Since June 30, 2015, all SARs and RSUs granted under the 2010 Plan have vested . A summary of the Company’s SAR activity for the years ended December 31, 2019, 2018 and 2017 are presented as follows: Number of shares Weighted average exercised price Weighted average remaining contractual life (in years) Outstanding and vested at January 1, 2017 821,117 $ 12.74 4.1 SARs exercised 24,137 12.73 Outstanding at December 31, 2017 796,980 $ 12.74 3.1 SARs exercised — — Outstanding at December 31, 2018 796,980 $ 12.74 2.1 SARs exercised 782,955 12.73 Outstanding and exercisable at December 31, 2019 14,025 12.95 1.6 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | 15. SHAREHOLDERS’ EQUITY Share Repurchases 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 there was $50.0 million remaining under the current authorization. During the year ended December 31, 2019, the Company repurchased 2,010,437 shares at an average price of $16.29 per share, or $32.8 million, before commissions and fees. . Dividends No dividends were declared or paid during the years ended December 31, 2019, 2018 or 2017. Share Issuances During the years ended December 31, 2019 and 2017, t 1,481 shares, respectively, December 31, In connection with the AirAsia transactions (see Note 17), on July 13, 2018, the Company issued and sold a total of 1,333,334 common shares in the form of ADSs, at a purchase price of $15.00 per share, to Meridian Aviation Partners Limited and certain other affiliates of Onex Corporation (collectively, “Onex”) and members of the management team of BBAM LP in private placement transactions, for aggregate proceeds of $20.0 million. In addition, on August 30, 2018, the Company issued 3,333,333 common shares in the form of ADSs, valued at $15.00 per share, to AirAsia, as partial consideration in the AirAsia transactions. The Fly common shares issued to AirAsia are subject to lock-up restrictions until at least 2021, as well as voting and standstill undertakings until AirAsia and its affiliates own less than 10% of Fly’s outstanding shares. The Company registered the common shares issued to AirAsia for resale with the Securities and Exchange Commission . |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 16. 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, if any, are deducted from net income in determining net income attributable to common shareholders (dollars in thousands, except per share data : Years ended 2019 2018 2017 Numerator Net income attributable to common shareholders $ 225,877 $ 85,723 $ 2,598 Denominator Weighted average shares outstanding-Basic 31,607,781 29,744,083 30,307,357 Dilutive common equivalent shares: SARs 107,688 39,821 46,068 Weighted average shares outstanding-Diluted 31,715,469 29,783,904 30,353,425 Earnings per share: Basic Distributed earnings $ — $ — $ — Undistributed income $ 7.15 $ 2.88 $ 0.09 Basic earnings per share $ 7.15 $ 2.88 $ 0.09 Diluted Distributed earnings $ — $ — $ — Undistributed income $ 7.12 $ 2.88 $ 0.09 Diluted earnings per share $ 7.12 $ 2.88 $ 0.09 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 14). 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 | 12 Months Ended |
Dec. 31, 2019 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. 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 (“Portfolio B”). The first of these aircraft was delivered 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 (“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 October 31, 2019 , the Company two aircraft subsequent to year end. The remaining three aircraft are expected to be sold in the first quarter of 2020. The Company In 2019, the Company also agreed to sell two engines as the result of an aircraft part out and one other aircraft. These flight equipment were sold in January 2020. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 18. 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 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 Acquisition III Facility, BBAM was also entitled to an administrative fee of $10,000 per month. In connection with the repayment of the , the servicing agreement was terminated. . For the years ended December 31, 2019, 2018 and 2017, BBAM received servicing and administrative fees totaling $15.4 million, $15.8 million and $13.1 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 years ended December 31, 2019, 2018 and 2017, the Company incurred $16.1 million and $6.8 million of origination fees, respectively, payable to BBAM. 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 years ended December 31, 2019, 2018 and 2017, the Company incurred Management Expenses of $9.6 million, $7.3 million and $6.3 million, respectively. The management agreement is scheduled to terminate on July 1, 2025 and shall be automatically extended for one additional term of five years unless terminated by either party with 12 months’ notice or otherwise terminated earlier in accordance with the terms therein. If the management agreement is not renewed on July 1, 2025, Fly will pay the Manager a non-renewal fee on such termination date in an amount equal to (i) $6.0 million plus (ii) so long as the Management Expense Amount does not exceed $12.0 million, 50% of the excess (if any) of the Management Expense Amount over $6.0 million in respect of the last fiscal year prior to such termination date. The Company’s minimum long-term contractual obligations with BBAM LP as of December 31, 2019, excluding rent fees, consisted of the following (dollars in thousands): 2020 2021 2022 2023 2024 Thereafter Total Fixed administrative agency fee payments due by B&B Air Funding (1) $ 51 $ 36 $ 34 $ 24 $ 14 $ 84 $ 243 Fixed administrative services fee due under the Term Loan (2) 384 337 236 173 149 100 1,379 Fixed administrative services fee due under the Magellan Acquisition Limited Facility (2) 204 204 203 192 192 386 1,381 Fixed administrative services fee due under Fly Acquisition III Facility (2) 48 48 48 44 36 84 308 Fixed administrative services fee due under Fly Aladdin Acquisition Facility (2) 288 278 254 140 78 92 1,130 Fixed administrative services fee due under Fly Aladdin Engine Funding Facility (2) 12 12 12 10 — — 46 Fixed administrative agency fee payments due by other subsidiaries (2) 336 284 250 212 192 586 1,860 Fixed payments for Management Expenses (1) (3) 7,840 7,840 7,840 7,840 7,840 43,121 82,321 Acquisition fees related to Portfolio B in the AirAsia transactions (4) 5,273 8,568 1,485 — — — 15,326 Disposition fees on flight equipment held for sale 2,768 — — — — — 2,768 Total $ 17,204 $ 17,607 $ 10,362 $ 8,635 $ 8,501 $ 44,453 $ 106,762 (1) Assumes Consumer Price Index (“CPI”) rates in effect as of December 31, 2019 remain constant in future periods. (2) Assumes number of aircraft and engines at December 31, 2019 remain constant in future periods. (3) Assumes automatic extension for one additional term of five years to June 30, 2030. Also assumes net book values of aircraft and engines at December 31, 2019 remains constant in future periods. (4) Based on nu . |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 19. FAIR VALUE MEASUREMENTS Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. The hierarchy levels give the highest priority to quoted prices in active markets and the lowest priority to unobservable data. Fair value measurements are disclosed by level within the following fair value hierarchy : Level 1 — . 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 sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset. For the year ended December 31, 2017, the Company wrote down aircraft to their net realizable value and recognized a charge of $ million (See Note 6). The Company did not record any impairment during the years ended December 31, 2019 and 2018. The carrying amounts and fair values of certain of the Company’s debt instruments are as follows (dollars in thousands ): As of December 31, 2019 As of December 31, 2018 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value Securitization Notes $ — $ — $ 85,584 $ 80,770 Term Loan 385,364 385,364 407,768 396,554 2021 Notes 325,000 331,207 325,000 329,875 2024 Notes 300,000 314,070 300,000 279,390 The Company’s principal amount outstanding on its remaining debt instruments approximates fair value at December 31, 2019 and 2018. As of December 31, 2019 and 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 December 31, 2019: Derivative assets — $ 4,824 — $ 4,824 Derivative liabilities — 27,943 — 27,943 Investment in equity certificates — 16,048 — 16,048 December 31, 2018: Derivative assets — $ 5,929 — $ 5,929 Derivative liabilities — 8,558 — 8,558 Investment in equity certificates — 5,747 — 5,747 |
UNAUDITED QUARTERLY CONDENSED C
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 20. UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION The unaudited quarterly financial information for each of the quarters in the years ended December 31, 2019 and 2018 ): March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Total revenues $ 134,703 $ 147,033 $ 139,034 $ 154,254 Net income $ 44,965 $ 54,050 $ 51,704 $ 75,158 Earnings per share — Basic $ 1.38 $ 1.69 $ 1.67 $ 2.43 Earnings per share — Diluted $ 1.38 $ 1.68 $ 1.67 $ 2.43 March 31, 2018 June 30, 2018 September 30, 2018 December 31, Total revenues $ 88,755 $ 102,673 $ 104,566 $ 122,305 Net income $ 9,630 $ 24,344 $ 20,740 $ 31,009 Earnings per share — Basic $ 0.34 $ 0.87 $ 0.68 $ 0.95 Earnings per share — Diluted $ 0.34 $ 0.87 $ 0.68 $ 0.95 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS Subsequent to December 31, 2019, the Company purchased one aircraft. Subsequent to December 31, 2019, the Company sold two engines as the result of an aircraft part out and three aircraft. Subsequent to December 31, 2019, the Company repurchased 114,354 shares at an average price of $16.85 per share, or $1.9 million. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information of Parent [Abstract] | |
Condensed Financial Information of Parent | Schedule I — Condensed financial information of parent Fly Leasing Limited Condensed Balance Sheets AS OF DECEMBER 31, 2019 AND 2018 (Dollars in thousands) December 31, 2019 2018 Assets Cash and cash equivalents $ 229,431 $ 43,233 Notes receivable from subsidiaries 440,801 466,729 Investments in subsidiaries 1,197,465 1,019,048 Deferred tax asset, net 145 — Other assets, net 19,553 11,019 Total assets $ 1,887,395 $ 1,540,029 Liabilities Payable to related parties $ 823 $ 729 Payable to subsidiaries 256,473 202,298 Unsecured borrowings, net 734,053 617,664 Deferred tax liability, net — 3,066 Accrued and other liabilities 17,769 14,162 Total liabilities 1,009,118 837,919 Shareholders’ equity 878,277 702,110 Total liabilities and shareholders’ equity $ 1,887,395 $ 1,540,029 These condensed financial statements should be read in conjunction with the notes to consolidated financial statements. Fly Leasing Limited Condensed Statements of Income FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017 (Dollars in thousands, except per share data) Years ended 2019 2018 2017 Revenues Equity earnings from subsidiaries $ 219,720 $ 90,175 $ 35,208 Equity earnings (loss) from unconsolidated subsidiary 2,717 (54 ) 496 Intercompany management fee income 16,452 16,844 12,124 Intercompany interest income 33,290 25,740 34,068 Interest and other income 6,066 1,072 809 Total revenues 278,245 133,777 82,705 Expense Interest expense 38,211 38,211 45,970 Selling, general and administrative 14,102 12,314 12,630 Ineffective, dedesignated and terminated derivatives — (1,798 ) — Loss on modification and extinguishment of debt — — 19,655 Total expenses 52,313 48,727 78,255 Net income before provision for income taxes 225,932 85,050 4,450 Provision (benefit) for income taxes 55 (673 ) 1,852 Net income $ 225,877 $ 85,723 $ 2,598 Weighted average number of shares: Basic 31,607,781 29,744,083 30,307,357 Diluted 31,715,469 29,783,904 30,353,425 Earnings per share: Basic $ 7.15 $ 2.88 $ 0.09 Diluted $ 7.12 $ 2.88 $ 0.09 These condensed financial statements should be read in conjunction with the notes to consolidated financial statements. Schedule I — Condensed financial information of parent Fly Leasing Limited Condensed Statements of Cash Flows FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017 (Dollars in thousands) Years ended 2019 2018 2017 Cash Flows from Operating Activities Net income $ 225,877 $ 85,723 $ 2,598 Adjustments to reconcile net income to net cash flows provided by operating activities: Equity earnings from subsidiaries (219,720 ) (90,175 ) (35,208 ) Equity (earnings) loss from unconsolidated subsidiary (2,717 ) 54 (496 ) Deferred income taxes (3,793 ) (673 ) 1,852 Amortization of debt discount and other 1,742 1,742 1,931 Loss on modification and extinguishment of debt — — 19,655 Distributions from unconsolidated subsidiary 2,727 2,131 — Changes in operating assets and liabilities: Receivable from subsidiaries 240,470 (104,303 ) 6,144 Other assets (2,305 ) (709 ) (1,121 ) Payable to related parties 94 506 (683 ) Accrued and other liabilities 3,605 (477 ) (9,478 ) Net cash flows used in operating activities 245,980 (106,181 ) (14,806 ) Cash Flows from Investing Activities Capital contributions to subsidiaries (46,601 ) (8,986 ) — Distributions received from subsidiaries — 25,792 — Distributions received from unconsolidated subsidiary 2,639 3,103 — Advances of notes receivable to subsidiaries (271,084 ) (265,311 ) (48,335 ) Repayment of notes receivable from subsidiaries 297,013 223,925 144,718 Investment income from equity certificates 1,603 — — Investment in equity certificates (10,481 ) (5,747 ) — Net cash flows (used in) provided by investing activities (26,911 ) (27,224 ) 96,383 Cash Flows from Financing Activities Proceeds from issuance of unsecured borrowings — — 295,150 Repayment of unsecured borrowings — — (375,000 ) Debt modification and extinguishment costs — — (16,287 ) Debt issuance costs — — (917 ) Shares issued — 19,624 — Shares repurchased (32,871 ) — (57,286 ) Net cash flows (used in) provided by financing activities (32,871 ) 19,624 (154,340 ) Net increase (decrease) in cash and cash equivalents 186,198 (113,781 ) (72,763 ) Cash and cash equivalents at beginning of year 43,233 157,014 229,777 Cash and cash equivalents at end of year $ 229,431 $ 43,233 $ 157,014 Supplemental Disclosure: Cash paid during the year for: Interest $ 36,469 $ 36,425 $ 41,883 Taxes — — — Noncash Activities : Noncash investing activities: Capital contribution to subsidiaries 142,246 7 109,391 Distributions from subsidiaries 213,312 3,386 76,451 Intercompany sale of subsidiaries — 39,605 — These condensed financial statements should be read in conjunction with the notes to consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 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 . |
Segment | The Company has one operating and reportable segment which is aircraft and aircraft equipment leasing. |
Reclassifications | 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 . |
Risks and Uncertainties | RISKS AND UNCERTAINTIES The Company encounters several types of risk during the course of its business, including credit, market, aviation industry and capital market risks. Credit risk addresses a lessee’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects the change in the value of derivatives and credit facilities due to changes in interest rate spreads or other market factors, including the value of collateral underlying the Company’s credit facilities. Aviation industry risk is the risk of a downturn in the commercial aviation industry, as a result of global, regional or industry-specific factors, which could adversely impact a lessee’s ability to make payments, increase the risk of unscheduled lease terminations and depress lease rates and the value of the Company’s aircraft and aircraft equipment. Capital market risk is the risk that the Company is unable to obtain capital at reasonable rates to fund the growth of its business or to refinance existing credit facilities . |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents . |
Restricted Cash and Cash Equivalents | RESTRICTED CASH AND CASH EQUIVALENTS The Company’s restricted cash and cash equivalents consist primarily of (i) security deposits and certain maintenance payments received from lessees under the terms of the lease agreements, (ii) a portion of rents collected which may be required to be held as cash collateral under certain of the Company’s debt facilities and (iii) other cash, which may be subject to withdrawal restrictions pursuant to the Company’s credit agreements. All restricted cash is held by major financial institutions in segregated accounts . |
Rent Receivables | RENT RECEIVABLES Rent receivables represent unpaid lessee obligations under existing lease contracts. Any allowance for doubtful accounts is established on a specific identification basis and is maintained at a level believed by management to be adequate to absorb probable losses associated with rent receivables. The assessment of credit risk is primarily based on the extent to which amounts outstanding exceed the value of security held, the financial strength and condition of a debtor and the current economic and regulatory conditions of the debtor’s operating environment. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows and consideration of current factors and economic trends impacting the lessees and their credit worthiness, all of which may be susceptible to significant change. Uncollectible rent receivables are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is recorded based on management’s periodic evaluation of the factors previously mentioned, as well as other pertinent factors . As of December 31, 2019 and 2018, the Company had no allowance for doubtful accounts. In addition, the Company places a lessee on non-accrual status once it determines that it is no longer probable that the Company will receive the economic benefits of the lease. The Company recognizes revenue from a lessee on non-accrual status to the extent cash is received . |
Investment in Finance Lease | INVESTMENT IN FINANCE LEASE The Company has recorded one lease as an investment in finance lease. The investment in finance lease equals the sum of amounts to be received under the lease, plus the estimated residual value of the equipment at lease termination, less unearned income. Residual value reflects management’s estimate of the amounts to be received at lease termination from the re-lease or disposition of the leased equipment. Initial unearned income represents the amount by which the original sum of the lease receivable and the estimated residual value exceeds the original cost of the leased equipment. Unearned income is recognized as finance lease income over the lease term in a manner that produces a constant rate of return on the net investment in the lease based on an implicit interest rate. Initial direct costs and fees related to lease origination are deferred as part of the investment and amortized over the lease term . |
Flight Equipment Held for Sale | FLIGHT EQUIPMENT HELD FOR SALE Flight equipment is classified as held for sale when the Company commits to and commences a plan of sale that is reasonably expected to be completed within one year and satisfies other criteria. Flight equipment held for sale is recorded at the lesser of carrying value or fair value, less estimated cost to sell. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. An impairment loss is recorded for an asset or asset group held for sale when the carrying value of the asset or asset group exceeds its fair value, less estimated cost to sell. Aircraft classified as flight equipment held for sale are not depreciated . Subsequent changes to the asset’s fair value are recorded as adjustments to the carrying value of the flight equipment. However, any such adjustment will not cause the asset’s fair value to exceed its original carrying value . |
Flight Equipment Held for Operating Lease | FLIGHT EQUIPMENT HELD FOR OPERATING LEASE Flight equipment held for operating lease is recorded at cost, net of any impairment charges, and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of the original manufacturer’s estimated realized price for the flight equipment when new. Management may, at its discretion, make exceptions to this policy on a case by case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of residual values. Examples of such situations include, but are not limited to : ● Flight equipment where original manufacturer’s prices are not relevant due to plane modifications and conversions . ● Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence . ● The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture . ● Flight equipment that management believes will be disposed of prior to the end of its estimated useful life . Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, during each reporting period . Major aircraft improvements or lessee-specific aircraft modifications to be performed by the Company pursuant to a lease agreement are accounted for as lease incentives and amortized against revenue over the term of the lease, assuming no lease renewal. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination . Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over a period to the next scheduled maintenance event. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred . |
Impairment of Flight Equipment | IMPAIRMENT OF FLIGHT EQUIPMENT The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company’s evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft or aircraft equipment, adverse changes in market conditions for specific aircraft or engine types, third party appraisals of aircraft and aircraft equipment, published values for similar aircraft or aircraft equipment, any occurrence of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of the Company’s aircraft and aircraft equipment. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft or aircraft equipment are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value . Future cash flows are assumed to occur under current market conditions and assume adequate time for a sale between a willing and able buyer and a willing seller. Expected future lease rates are based on all relevant information available, including the existing lease, current contracted rates for similar aircraft, appraisal data and industry trends. Residual value assumptions generally reflect an aircraft’s salvage value, except where more recent industry information indicates a different value is appropriate . Impairment analyses require the use of assumptions and estimates, including the level of future rents, the residual value of the flight equipment to be realized upon sale at some future date, estimated downtime between re-leasing events and the amount of re-leasing costs . |
Maintenance Rights | MAINTENANCE RIGHTS The Company identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft or aircraft equipment with in-place leases. A maintenance right asset represents the value of its contractual right under a lease to receive an aircraft or aircraft equipment in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company’s obligation to pay the lessee for the difference between the contractual maintenance condition of the aircraft or aircraft equipment at lease expiry and the actual maintenance condition of the aircraft or aircraft equipment on the acquisition date . The Company’s aircraft and aircraft equipment are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in its leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases) . EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft or aircraft equipment into a specified maintenance condition . Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft or aircraft equipment in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft or aircraft equipment is greater than the contractual return condition in the lease at lease expiry and the Company is required to pay the lessee in cash for the improved maintenance condition . When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft or aircraft equipment is returned at lease expiry in the contractually required maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company’s capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company’s capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with the Company’s policy with respect to major maintenance . When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft or aircraft equipment is returned at lease expiry in the contractually required maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement to the extent the improvement is substantiated and deemed to meet the Company’s capitalization policy . MR Leases Under MR Leases, the lessee is required to make periodic maintenance payments to the Company based upon usage of the aircraft or aircraft equipment. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee . Maintenance right assets in MR Leases represent the right to receive an aircraft or aircraft equipment in an improved condition relative to the actual condition on the acquisition date. The aircraft or aircraft equipment is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives . When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft or aircraft equipment is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded . There are no maintenance right liabilities for MR Leases . When flight equipment is sold, maintenance rights are released from the balance sheet as part of the disposition gain or loss . |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to manage its exposure to interest rate and foreign currency risks. All derivatives are recognized on the balance sheet at their fair values. Pursuant to U.S. GAAP, changes in the fair value of the item being hedged are recognized into earnings in the same period and in the same income statement line as the change in the fair value of the derivative instrument. On the date that the Company enters into a derivative contract, the Company typically documents all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for undertaking each hedge transaction . Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability. Changes in the fair value of a derivative that is designated and qualifies as an effective cash flow hedge are recorded in accumulated other comprehensive income, net of tax, until earnings are affected by the variability of cash flows of the hedged item. Any derivative gains and losses that are not effective in hedging the variability of expected cash flows of the hedged item or that do not qualify for hedge accounting treatment are recognized directly into income . At the hedge’s inception and at least every reporting period thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction . |
Other Assets | OTHER ASSETS Other assets consist primarily of the Company’s Portfolio B orderbook value (see Note 17 below), investment in equity certificates, net value added tax receivables, . Investment in equity certificates are initially accounted for at cost and subsequent changes in fair value are recognized into income. The Company accounts for its interest in the unconsolidated subsidiary using the equity method as it does not control the entity. Under the equity method, the Company’s investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated subsidiary’s undistributed earnings and losses, and distributions of dividends and capital . The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiary, including whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification . |
Security Deposits | SECURITY DEPOSITS In the normal course of leasing flight equipment to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease . |
Maintenance Payment Liability | MAINTENANCE PAYMENT LIABILITY The Company’s flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly’s leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration and airworthiness directives . Under the terms of the lease agreements, cash collected from lessees for future maintenance of the aircraft is recorded as maintenance payment liabilities. The Company does not recognize such maintenance payments as revenue during the lease term. Maintenance payment liabilities are attributable to specific aircraft and are typically based on hours or cycles of utilization, depending upon the component. Upon the occurrence of qualified maintenance events, the lessee submits a request for reimbursement and upon disbursement of the funds, the liability is relieved . The lessor may be obligated to contribute to maintenance related expenses on an aircraft during the term of the lease. In other instances, the lessee or lessor may be obligated to make a payment to the other party at lease termination based on a computation stipulated in the lease agreement. The calculation is based on utilization and condition of the airframe, engines and other major life-limited components as determined at lease termination . The Company may also incur maintenance expenses on off-lease aircraft. Scheduled major maintenance or overhaul activities and costs for certain high-value components that are paid by the Company are capitalized and depreciated over the period until the next overhaul is required. Payments made by the Company for minor maintenance, repairs and re-leasing of aircraft are expensed as incurred . At lease termination, maintenance payment liabilities are offset against any maintenance right balance for the aircraft, and the remainder is recognized as end of lease income. When flight equipment is sold, the maintenance payment liability amounts may be remitted to the buyer in accordance with the terms of the related agreements and are released from the balance sheet as part of the disposition gain or loss . |
Revenue Recognition | REVENUE RECOGNITION Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Where revenue amounts do not meet these recognition criteria, recognition is delayed until the criteria are met . ● Operating lease revenue . ● End of lease income . ● Lease incentives. . ● Lease premiums and lease discounts . ● Finance lease income . |
Income Taxes | INCOME TAXES The Company provides for income taxes by tax jurisdiction. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statements and tax basis of existing assets and liabilities at the enacted tax rates expected to apply when the assets are recovered or liabilities are settled. A valuation allowance is used to reduce deferred tax assets to the amount that management ultimately expects to be more likely than not realized . The Company recognizes an uncertain tax benefit only to the extent that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities, based on the technical merits of the position. The Company has elected to classify interest on unpaid income taxes and penalties as a component of the provision for income taxes. No interest on unpaid income taxes and penalties were incurred during each of the years ended December 31, 2019, 2018 and 2017 . |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (the “FASB”) issued its new lease accounting 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 financial statements. 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 is effective for fiscal years (including interim periods) beginning after December 15, 2019, and early adoption is permitted. The Company adopted the guidance effective January 1, 2020. The adoption of the standard did not have a material effect on the Company’s consolidated financial statements. |
SUPPLEMENTAL DISCLOSURE TO CO_2
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS [Abstract] | |
Supplemental Disclosure to Consolidated Statements of Cash Flows | Years ended 2019 2018 2017 (Dollars in thousands) Cash paid during the year for: Interest $ 126,659 $ 126,648 $ 113,710 Taxes 787 4,163 2,155 Noncash Activities: Security deposits applied to rent receivables and maintenance payment liability 3,224 1 2,045 Maintenance payment liability applied to rent receivables, maintenance rights, and other liabilities 9,133 25,837 68 Other liabilities applied to security deposits, maintenance payment liability and rent receivables 5,016 5,520 676 Noncash investing activities: Aircraft improvement 7,143 10,870 192 Noncash activities in connection with purchase of flight equipment 34,925 79,727 3,979 Noncash activities in connection with sale of flight equipment 20,480 2,648 — |
INVESTMENT IN FINANCE LEASE (Ta
INVESTMENT IN FINANCE LEASE (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2019 December 31, 2018 Total minimum lease payments receivable $ 9,600 $ 11,400 Estimated unguaranteed residual value of leased asset 4,227 4,227 Unearned finance income (2,188 ) (2,805 ) Net Investment in Finance Lease $ 11,639 $ 12,822 |
Future Minimum Rental Payments Due Under Finance Lease | Presented below are the contracted future minimum rental payments due under the non-cancellable finance lease, as of December 31, 2019. Year ending December 31, (Dollars in thousands) 2020 $ 1,800 2021 1,800 2022 1,800 2023 1,800 2024 1,800 Thereafter 600 Future minimum rental payments under finance lease $ 9,600 |
FLIGHT EQUIPMENT HELD FOR OPE_2
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |
Flight Equipment Held for Operating Lease | Flight equipment held for operating lease consists of the following (dollars in thousands): December 31, 2019 December 31, 2018 Cost $ 3,334,996 $ 3,900,938 Accumulated depreciation (614,996 ) (672,920 ) Flight equipment held for operating lease, net $ 2,720,000 $ 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): December 31, 2019 December 31, 2018 Europe: Spain $ 161,474 6 % $ 168,534 5 % United Kingdom 52,212 2 % 169,763 5 % Turkey — — 22,843 1 % Other 259,176 9 % 242,711 8 % Europe — Total 472,862 17 % 603,851 19 % Asia and South Pacific: India 542,312 20 % 690,193 21 % Malaysia 406,777 15 % 394,441 12 % Philippines 264,814 10 % 276,237 9 % Indonesia 220,304 8 % 296,390 9 % China 168,703 6 % 177,393 5 % Other 113,713 4 % 161,330 6 % Asia and South Pacific — Total 1,716,623 63 % 1,995,984 62 % Mexico, South and Central America — Total 37,618 1 % 58,202 2 % North America: United States 95,910 4 % 126,498 4 % Other — — 49,320 1 % North America — Total 95,910 4 % 175,818 5 % Middle East and Africa: Ethiopia 303,057 11 % 312,977 10 % Other 51,815 2 % 81,186 2 % Middle East and Africa — Total 354,872 13 % 394,163 12 % Off-Lease — Total 42,115 2 % — — Total flight equipment held for operating lease, net $ 2,720,000 100 % $ 3,228,018 100 % |
Operating Lease Revenue by Geographic Region | The distribution of operating lease revenue by geographic region for the years ended December 31, 2019, 2018 and 2017 is as follows (dollars in thousands): Years ended 2019 2018 2017 Europe: Spain $ 17,475 4 % $ 17,267 4 % $ 11,199 3 % United Kingdom 79,022 17 % 31,259 8 % 29,182 8 % Turkey 2,041 — 12,114 3 % 17,103 5 % Germany 951 — — — 26,457 8 % Other 31,197 7 % 31,995 8 % 29,180 9 % Europe — Total 130,686 28 % 92,635 23 % 113,121 33 % Asia and South Pacific: India 103,422 22 % 87,492 22 % 64,381 18 % Malaysia 55,189 12 % 26,748 7 % 8,767 3 % Philippines 34,217 7 % 35,009 9 % 29,825 9 % Indonesia 32,882 7 % 32,336 8 % 16,308 5 % China 23,320 5 % 21,103 5 % 22,611 6 % Other 18,550 5 % 18,756 4 % 10,496 3 % Asia and South Pacific — Total 267,580 58 % 221,444 55 % 152,388 44 % Mexico, South and Central America — Total 5,425 1 % 11,415 3 % 17,565 5 % North America: United States 16,267 4 % 20,147 5 % 17,647 5 % Other 4,991 1 % 6,242 2 % 6,237 2 % North America — Total 21,258 5 % 26,389 7 % 23,884 7 % Middle East and Africa: Ethiopia 30,019 6 % 30,019 8 % 30,018 9 % Other 9,431 2 % 17,612 4 % 9,918 2 % Middle East and Africa — Total 39,450 8 % 47,631 12 % 39,936 11 % Total Operating Lease Revenue $ 464,399 100 % $ 399,514 100 % $ 346,894 100 % |
Future Minimum Rental Payments Due Under 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, 2019. For leases that have floating rental rates, the future minimum rental payments assume that LIBOR as of December 31, 2019 is held constant for the duration of the lease. Year ending December 31, (Dollars in thousands) 2020 $ 321,993 2021 288,459 2022 244,007 2023 201,380 2024 186,707 Thereafter 480,878 Future minimum rental payments under operating leases $ 1,723,424 |
Lease Incentive Amortization | At December 31, 2019, lease incentive amortization for the next five years and thereafter is as follows (dollars in thousands): Year ending December 31, 2020 $ 2,573 2021 3,221 2022 2,821 2023 1,614 2024 736 Thereafter 303 Future amortization of lease incentives $ 11,268 |
MAINTENANCE RIGHTS (Tables)
MAINTENANCE RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
MAINTENANCE RIGHTS [Abstract] | |
Changes in Maintenance Rights, Net | Changes in maintenance right assets, net of maintenance right liabilities, during the years ended December 31, 2019 and 2018 were as follows (dollars in thousands) : December 31, 2019 December 31, 2018 Maintenance rights, net beginning balance $ 298,207 $ 131,299 Acquisitions 94,664 189,864 Capitalized to aircraft improvements (6,739 ) (9,240 ) Maintenance rights (3,996 ) (2,369 ) Cash receipts from maintenance rights (4,637 ) (3,013 ) Maintenance rights associated with aircraft sold (86,541 ) (8,334 ) Maintenance rights, net ending balance $ 290,958 $ 298,207 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER ASSETS [Abstract] | |
Other Assets | The principal components of the Company’s other assets are as follows (dollars in thousands): December 31, 2019 December 31, 2018 Portfolio B orderbook value $ 100,935 $ 103,951 Equity certificates 16,048 5,747 Value added tax receivables, net 7,714 6,016 Investment in unconsolidated subsidiary 259 2,908 Other assets 4,421 6,338 Total other assets $ 129,377 $ 124,960 |
UNSECURED BORROWINGS (Tables)
UNSECURED BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Unsecured Borrowings [Abstract] | |
Borrowings | Balance as of December 31, 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 (5,593 ) (7,336 ) Unsecured borrowings, net $ 619,407 $ 617,664 |
2021 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Unsecured Debt Redemption Prices | The Company may redeem the 2021 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date . If redeemed during the 12-month period commencing on October 15 of the years set forth below Redemption Price 2019 101.594 % 2020 and thereafter 100.000 % |
2024 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Unsecured Debt Redemption Prices | On and after October 15, 2020, the Company may redeem the 2024 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date If redeemed during the 12-month period commencing on October 15 of the years set forth below Redemption Price 2020 102.625 % 2021 101.313 % 2022 and thereafter 100.000 % |
SECURED BORROWINGS (Tables)
SECURED BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SECURED BORROWINGS [Abstract] | |
Secured Borrowings | The Company’s secured borrowings, net balance as of December 31, 2019 and 2018 are presented below (dollars in thousands): Outstanding principal balance as of December 31, Weighted average interest rate (1) December 31, 2019 (2) 2018 (2) 2019 2018 Maturity date Securitization Notes $ — $ 85,584 — 3.08 % — Nord LB Facility 65,290 108,882 3.59 % 4.29 % May 2021 Term Loan 385,364 407,768 4.15 % 5.17 % August 2025 Magellan Acquisition Limited Facility 278,684 305,226 4.11 % 4.18 % December 2025 Fly Acquisition III Facility — 190,457 — 4.10 % — Fly Aladdin Acquisition Facility 272,343 467,179 4.85 % 4.59 % June 2023 Fly Aladdin Engine Funding Facility 42,339 43,829 4.95 % 4.95 % December 2021 – April 2022 Other Aircraft Secured Borrowings 673,463 807,882 4.07 % 4.44 % December 2020 – June 2028 Total outstanding principal balance 1,717,483 2,416,807 Unamortized debt discounts and loan costs (21,958 ) (36,938 ) Total secured borrowings, net $ 1,695,525 $ 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 December 31, 2019 and 2018, accrued interest on secured borrowings totaled $9.2 million and $10.9 million, respectively. |
Future Minimum Principal Payments on Secured Borrowings | During the year ended December 31, 2019, the Company made scheduled principal payments of $179.7 million on its secured borrowings. The anticipated future minimum principal payments due for its secured borrowings are as follows (dollars in thousands): Year ending December 31, 2020 $ 172,684 2021 241,435 2022 169,409 2023 408,302 2024 113,733 Thereafter 611,920 Future minimum principal payments due $ 1,717,483 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
DERIVATIVES [Abstract] | |
Designated Derivative Assets | As of December 31, 2019, ): Type Quantity Maturity Date Contracted Fixed Conversion Rate to U.S. Dollar Total Credit Risk Adjusted Fair Value Gain Recognized in Accumulated Comprehensive Loss Cross currency swap contract 1 11/26/25 1 EURO to $1.3068 $ 58,592 $ 4,805 $ 4,204 Accrued rent — 19 — Total - designated derivative asset 1 $ 58,592 $ 4,824 $ 4,204 |
Designated Derivative Liabilities | As of December 31, 2019, ): Type Quantity Maturity Date Hedge Interest Rate Swap Contract Notional Amount Credit Risk Adjusted Fair Value Loss Recognized in Accumulated Comprehensive Loss Interest rate swap contracts 30 2/9/23-12/8/25 2.28%-3.13 % $ 792,636 $ (26,559 ) $ (22,615 ) Accrued interest — (932 ) — Total – designated derivative liabilities 30 $ 792,636 $ (27,491 ) $ (22,615 ) |
Dedesignated Derivatives | As of December 31, 2019 , ): Type Quantity Maturity Date Hedge Interest Rate Swap Contract Notional Amount Credit Risk Adjusted Fair Value Interest rate swap contracts 3 6/15/23 2.66%-2.68 % $ 12,259 $ (434 ) Accrued interest — (18 ) Total – dedesignated derivative liabilities 3 $ 12,259 $ (452 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
INCOME TAXES [Abstract] | |
Income Tax Expense (Benefit) by Jurisdiction | Income tax expense (benefit) by jurisdiction is shown below (dollars in thousands ): Years ended 2019 2018 2017 Current tax expense (benefit): Ireland $ — $ — $ — Luxembourg 55 44 195 Australia — (138 ) 4,062 Other 23 50 43 Current tax expense (benefit) — total 78 (44 ) 4,300 Deferred tax expense (benefit): Ireland 21,359 9,865 8,710 Australia (910 ) 105 (1,743 ) Other — — 65 Deferred tax expense (benefit) — total 20,449 9,970 7,032 Total income tax expense (benefit) $ 20,527 $ 9,926 $ 11,332 |
Net Deferred Tax Asset (Liability) | The principal components of the Company’s net deferred tax asset (liability) were as follows (dollars in thousands): December 31, 2019 December 31, 2018 Deferred tax asset: Net operating loss carry forwards $ 142,685 $ 177,663 Net unrealized losses on derivative instruments 3,794 773 Basis difference on acquisition of GAAM Australian assets 6,575 6,619 Other 124 168 Valuation allowance (33,929 ) (37,429 ) Total deferred tax asset 119,249 147,794 Deferred tax liability: Excess of tax depreciation over book depreciation (165,343 ) (171,725 ) Miscellaneous book/tax differences (166 ) (112 ) Net earnings of non-European Union member subsidiaries — (3,654 ) Withholding tax on Australian unrepatriated earnings — (2,054 ) Total deferred tax liability (165,509 ) (177,545 ) Deferred tax liability, net $ (46,260 ) $ (29,751 ) |
Reconciliation of Statutory to Effective Tax Rate | The table below is a reconciliation of the Irish statutory corporation tax rate of 12.5% on trading income to the Company’s recorded income tax expense or benefit Years ended 2019 2018 2017 Irish statutory corporate tax rate on trading income 12.5 % 12.5 % 12.5 % Valuation allowances (1.4 )% (1.4 )% 59.9 % Tax impact of repurchased and resold Notes (0.1 )% 0.1 % (0.8 )% Foreign tax rate differentials (0.4 )% (2.8 )% (18.4 )% True-up of prior year tax provision (0.1 )% — 2.2 % Non-deductible interest expense, transaction fees and expenses 0.5 % 1.8 % 12.2 % Deductible interest paid in the period (2.7 )% — — Unrealized foreign exchange loss on re-valuation of deferred tax balances — 0.1 % 0.5 % Withholding tax — — 13.3 % Other — 0.1 % (0.1 )% Effective tax rate 8.3 % 10.4 % 81.3 % |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
OTHER LIABILITIES [Abstract] | |
Other Liabilities | The following table describes the principal components of the Company’s other liabilities (dollars in thousands): December 31, 2019 December 31, 2018 Current tax payable $ 308 $ 50 Lease discount 24,965 25,539 Lease incentive obligation 15,634 14,020 Deferred rent 15,715 15,067 Refundable deposits 3,210 3,420 Other 16,929 22,306 Total other liabilities $ 76,761 $ 80,402 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
SHARE-BASED COMPENSATION [Abstract] | |
Stock Appreciation Rights | A summary of the Company’s SAR activity for the years ended December 31, 2019, 2018 and 2017 are presented as follows: Number of shares Weighted average exercised price Weighted average remaining contractual life (in years) Outstanding and vested at January 1, 2017 821,117 $ 12.74 4.1 SARs exercised 24,137 12.73 Outstanding at December 31, 2017 796,980 $ 12.74 3.1 SARs exercised — — Outstanding at December 31, 2018 796,980 $ 12.74 2.1 SARs exercised 782,955 12.73 Outstanding and exercisable at December 31, 2019 14,025 12.95 1.6 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 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, if any, are deducted from net income in determining net income attributable to common shareholders (dollars in thousands, except per share data : Years ended 2019 2018 2017 Numerator Net income attributable to common shareholders $ 225,877 $ 85,723 $ 2,598 Denominator Weighted average shares outstanding-Basic 31,607,781 29,744,083 30,307,357 Dilutive common equivalent shares: SARs 107,688 39,821 46,068 Weighted average shares outstanding-Diluted 31,715,469 29,783,904 30,353,425 Earnings per share: Basic Distributed earnings $ — $ — $ — Undistributed income $ 7.15 $ 2.88 $ 0.09 Basic earnings per share $ 7.15 $ 2.88 $ 0.09 Diluted Distributed earnings $ — $ — $ — Undistributed income $ 7.12 $ 2.88 $ 0.09 Diluted earnings per share $ 7.12 $ 2.88 $ 0.09 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Minimum Long-Term Contractual Obligations With BBAM LP, Excluding Rent Fees | The Company’s minimum long-term contractual obligations with BBAM LP as of December 31, 2019, excluding rent fees, consisted of the following (dollars in thousands): 2020 2021 2022 2023 2024 Thereafter Total Fixed administrative agency fee payments due by B&B Air Funding (1) $ 51 $ 36 $ 34 $ 24 $ 14 $ 84 $ 243 Fixed administrative services fee due under the Term Loan (2) 384 337 236 173 149 100 1,379 Fixed administrative services fee due under the Magellan Acquisition Limited Facility (2) 204 204 203 192 192 386 1,381 Fixed administrative services fee due under Fly Acquisition III Facility (2) 48 48 48 44 36 84 308 Fixed administrative services fee due under Fly Aladdin Acquisition Facility (2) 288 278 254 140 78 92 1,130 Fixed administrative services fee due under Fly Aladdin Engine Funding Facility (2) 12 12 12 10 — — 46 Fixed administrative agency fee payments due by other subsidiaries (2) 336 284 250 212 192 586 1,860 Fixed payments for Management Expenses (1) (3) 7,840 7,840 7,840 7,840 7,840 43,121 82,321 Acquisition fees related to Portfolio B in the AirAsia transactions (4) 5,273 8,568 1,485 — — — 15,326 Disposition fees on flight equipment held for sale 2,768 — — — — — 2,768 Total $ 17,204 $ 17,607 $ 10,362 $ 8,635 $ 8,501 $ 44,453 $ 106,762 (1) Assumes Consumer Price Index (“CPI”) rates in effect as of December 31, 2019 remain constant in future periods. (2) Assumes number of aircraft and engines at December 31, 2019 remain constant in future periods. (3) Assumes automatic extension for one additional term of five years to June 30, 2030. Also assumes net book values of aircraft and engines at December 31, 2019 remains constant in future periods. (4) Based on nu . |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Carrying Amounts and Fair Values of Certain Debt Instruments | The carrying amounts and fair values of certain of the Company’s debt instruments are as follows (dollars in thousands ): As of December 31, 2019 As of December 31, 2018 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value Securitization Notes $ — $ — $ 85,584 $ 80,770 Term Loan 385,364 385,364 407,768 396,554 2021 Notes 325,000 331,207 325,000 329,875 2024 Notes 300,000 314,070 300,000 279,390 |
Asset and Liabilities Measured at Fair Value on Recurring Basis | As of December 31, 2019 and 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 December 31, 2019: Derivative assets — $ 4,824 — $ 4,824 Derivative liabilities — 27,943 — 27,943 Investment in equity certificates — 16,048 — 16,048 December 31, 2018: Derivative assets — $ 5,929 — $ 5,929 Derivative liabilities — 8,558 — 8,558 Investment in equity certificates — 5,747 — 5,747 |
UNAUDITED QUARTERLY CONDENSED_2
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |
Unaudited Quarterly Financial Information | The unaudited quarterly financial information for each of the quarters in the years ended December 31, 2019 and 2018 ): March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Total revenues $ 134,703 $ 147,033 $ 139,034 $ 154,254 Net income $ 44,965 $ 54,050 $ 51,704 $ 75,158 Earnings per share — Basic $ 1.38 $ 1.69 $ 1.67 $ 2.43 Earnings per share — Diluted $ 1.38 $ 1.68 $ 1.67 $ 2.43 March 31, 2018 June 30, 2018 September 30, 2018 December 31, Total revenues $ 88,755 $ 102,673 $ 104,566 $ 122,305 Net income $ 9,630 $ 24,344 $ 20,740 $ 31,009 Earnings per share — Basic $ 0.34 $ 0.87 $ 0.68 $ 0.95 Earnings per share — Diluted $ 0.34 $ 0.87 $ 0.68 $ 0.95 |
ORGANIZATION (Details)
ORGANIZATION (Details) | 12 Months Ended | |
Dec. 31, 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) | 12 Months Ended | ||
Dec. 31, 2019USD ($)LeaseSegment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Basis of Preparation [Abstract] | |||
Number of operating segments | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
Rent Receivables [Abstract] | |||
Allowance for doubtful accounts | $ | $ 0 | $ 0 | |
Investment in Finance Lease [Abstract] | |||
Number of leases classified as investment in finance lease | Lease | 1 | ||
Flight Equipment Held for Operating Lease [Abstract] | |||
Useful life of flight equipment | 25 years | ||
Residual value percentage | 15.00% | ||
Taxes [Abstract] | |||
Interest on unpaid income taxes and penalties | $ | $ 0 | $ 0 | $ 0 |
SUPPLEMENTAL DISCLOSURE TO CO_3
SUPPLEMENTAL DISCLOSURE TO CONSOLIDATED STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid during the period for [Abstract] | |||
Interest | $ 126,659 | $ 126,648 | $ 113,710 |
Taxes | 787 | 4,163 | 2,155 |
Noncash Activities [Abstract] | |||
Security deposits applied to rent receivables and maintenance payment liability | 3,224 | 1 | 2,045 |
Maintenance payment liability applied to rent receivables, maintenance rights, and other liabilities | 9,133 | 25,837 | 68 |
Other liabilities applied to security deposits, maintenance payment liability and rent receivables | 5,016 | 5,520 | 676 |
Noncash Investing Activities [Abstract] | |||
Aircraft improvement | 7,143 | 10,870 | 192 |
Noncash activities in connection with purchase of flight equipment | 34,925 | 79,727 | 3,979 |
Noncash activities in connection with sale of flight equipment | $ 20,480 | $ 2,648 | $ 0 |
INVESTMENT IN FINANCE LEASE (De
INVESTMENT IN FINANCE LEASE (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Lease | Dec. 31, 2018USD ($)Lease | Dec. 31, 2017USD ($) | |
INVESTMENT IN FINANCE LEASE [Abstract] | |||
Number of leases classified as investment in finance lease | Lease | 1 | ||
Number of leases classified as investment in finance lease | Lease | 1 | ||
Implicit interest rate | 5.00% | ||
Implicit interest rate | 5.00% | ||
Finance lease revenue | $ 618 | ||
Finance lease revenue | $ 675 | $ 731 | |
Net Investment in Finance Lease [Abstract] | |||
Total minimum lease payments receivable | 9,600 | 11,400 | |
Estimated unguaranteed residual value of leased asset | 4,227 | 4,227 | |
Unearned finance income | (2,188) | (2,805) | |
Net Investment in Finance Lease | 11,639 | 12,822 | |
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease [Abstract] | |||
2020 | 1,800 | ||
2021 | 1,800 | ||
2022 | 1,800 | ||
2023 | 1,800 | ||
2024 | 1,800 | ||
Thereafter | 600 | ||
Future minimum rental payments under finance lease | $ 9,600 | $ 11,400 |
FLIGHT EQUIPMENT HELD FOR SALE
FLIGHT EQUIPMENT HELD FOR SALE (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||
Jan. 31, 2020AircraftEngine | Feb. 28, 2020Aircraft | Dec. 31, 2019USD ($)AircraftEngine | Dec. 31, 2018USD ($)Aircraft | Dec. 31, 2017USD ($)Aircraft | |
Flight Equipment Held for Sale [Abstract] | |||||
Number of aircraft held for sale | Aircraft | 6 | 12 | |||
Gain on sale of aircraft | $ | $ 97,323 | $ 13,398 | $ 3,926 | ||
Subsequent Event [Member] | |||||
Flight Equipment Held for Sale [Abstract] | |||||
Number of engines sold | Engine | 2 | ||||
Number of aircraft sold | Aircraft | 1 | 3 | |||
Flight Equipment Held For Sale [Member] | |||||
Flight Equipment Held for Sale [Abstract] | |||||
Number of engines held for sale | Engine | 2 | ||||
Number of aircraft sold | Aircraft | 25 | 3 | 1 | ||
Gain on sale of aircraft | $ | $ 94,400 | $ 7,900 | $ 3,900 | ||
Flight Equipment Held For Sale [Member] | Subsequent Event [Member] | |||||
Flight Equipment Held for Sale [Abstract] | |||||
Number of engines sold | Engine | 2 |
FLIGHT EQUIPMENT HELD FOR OPE_3
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Flight Equipment Held for Operating Lease (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)AircraftEngineLesseeCountry | Dec. 31, 2018USD ($)AircraftEngineLesseeCountry | Dec. 31, 2017USD ($)Aircraft | |
Flight Equipment Held for Operating Leases [Abstract] | |||
Number of aircraft held | Aircraft | 81 | 100 | |
Number of engines held for operating lease | Engine | 7 | 7 | |
Number of lessees | Lessee | 39 | 43 | |
Number of countries in which lessees operate | Country | 22 | 24 | |
Number of aircraft off-lease | Aircraft | 1 | ||
Capitalized cost of aircraft and engines purchased | $ 260,300 | $ 820,900 | |
Gain on sale of aircraft | 97,323 | 13,398 | $ 3,926 |
Aircraft impairment | 0 | 0 | $ 22,000 |
Flight equipment held for operating lease, net | $ 2,720,000 | $ 3,228,018 | |
Flight Equipment Held For Operating Lease [Member] | |||
Flight Equipment Held for Operating Leases [Abstract] | |||
Number of aircraft sold | Aircraft | 10 | 3 | 0 |
Gain on sale of aircraft | $ 2,900 | $ 5,500 | |
Aircraft impairment | 0 | 0 | |
Cost | 3,334,996 | 3,900,938 | |
Accumulated depreciation | (614,996) | (672,920) | |
Flight equipment held for operating lease, net | 2,720,000 | 3,228,018 | |
Major maintenance expenditures capitalized | $ 16,300 | $ 16,400 | |
Air Berlin [Member] | |||
Flight Equipment Held for Operating Leases [Abstract] | |||
Number of aircraft on lease | Aircraft | 2 | ||
Air Berlin [Member] | Flight Equipment Held For Operating Lease [Member] | |||
Flight Equipment Held for Operating Leases [Abstract] | |||
Aircraft impairment | $ 22,000 | ||
Number of impaired aircraft | Aircraft | 1 |
FLIGHT EQUIPMENT HELD FOR OPE_4
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Flight Equipment Held for Operating Lease by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 2,720,000 | $ 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 | $ 2,720,000 | $ 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 | $ 42,115 | $ 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 | $ 472,862 | $ 603,851 |
Concentration percentage | 17.00% | 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 | $ 161,474 | $ 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 | $ 52,212 | $ 169,763 |
Concentration percentage | 2.00% | 5.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Turkey [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 0 | $ 22,843 |
Concentration percentage | 0.00% | 1.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 259,176 | $ 242,711 |
Concentration percentage | 9.00% | 8.00% |
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 | $ 1,716,623 | $ 1,995,984 |
Concentration percentage | 63.00% | 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 | $ 542,312 | $ 690,193 |
Concentration percentage | 20.00% | 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 | $ 406,777 | $ 394,441 |
Concentration percentage | 15.00% | 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 | $ 264,814 | $ 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 | $ 220,304 | $ 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 | $ 168,703 | $ 177,393 |
Concentration percentage | 6.00% | 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 | $ 113,713 | $ 161,330 |
Concentration percentage | 4.00% | 6.00% |
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 | $ 37,618 | $ 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 | $ 95,910 | $ 175,818 |
Concentration percentage | 4.00% | 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 | $ 95,910 | $ 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 | $ 0 | $ 49,320 |
Concentration percentage | 0.00% | 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 | $ 354,872 | $ 394,163 |
Concentration percentage | 13.00% | 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 | $ 303,057 | $ 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 | $ 51,815 | $ 81,186 |
Concentration percentage | 2.00% | 2.00% |
FLIGHT EQUIPMENT HELD FOR OPE_5
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Operating Lease Revenue by Geographic Region (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)LesseeCustomer | Dec. 31, 2018USD ($)LesseeCustomer | Dec. 31, 2017USD ($)Customer | |
Revenues [Abstract] | |||
Operating lease revenue | $ 464,399 | ||
Operating lease revenue | $ 399,514 | $ 346,894 | |
Number of major customers | Customer | 0 | 1 | 1 |
Number of lessees on non-accrual status | Lessee | 3 | 2 | |
Number of aircraft on non-accrual status | Lessee | 4 | 3 | |
Operating lease revenue recognized from lessees on non-accrual status | $ 13,600 | $ 9,300 | |
End of lease income | $ 78,800 | $ 20,300 | $ 17,800 |
Number of lessees | Lessee | 39 | 43 | |
Weighted average remaining lease term | 5 years 4 months 24 days | 5 years 10 months 24 days | |
United Kingdom [Member] | |||
Revenues [Abstract] | |||
End of lease income | $ 52,800 | ||
Number of lessees | Lessee | 4 | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 464,399 | ||
Operating lease revenue | $ 399,514 | $ 346,894 | |
Concentration percentage | 100.00% | 100.00% | 100.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Europe [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 130,686 | ||
Operating lease revenue | $ 92,635 | $ 113,121 | |
Concentration percentage | 28.00% | 23.00% | 33.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Spain [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 17,475 | ||
Operating lease revenue | $ 17,267 | $ 11,199 | |
Concentration percentage | 4.00% | 4.00% | 3.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United Kingdom [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 79,022 | ||
Operating lease revenue | $ 31,259 | $ 29,182 | |
Concentration percentage | 17.00% | 8.00% | 8.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Turkey [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 2,041 | ||
Operating lease revenue | $ 12,114 | $ 17,103 | |
Concentration percentage | 0.00% | 3.00% | 5.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Germany [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 951 | ||
Operating lease revenue | $ 0 | $ 26,457 | |
Concentration percentage | 0.00% | 0.00% | 8.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 31,197 | ||
Operating lease revenue | $ 31,995 | $ 29,180 | |
Concentration percentage | 7.00% | 8.00% | 9.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Asia and South Pacific [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 267,580 | ||
Operating lease revenue | $ 221,444 | $ 152,388 | |
Concentration percentage | 58.00% | 55.00% | 44.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | India [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 103,422 | ||
Operating lease revenue | $ 87,492 | $ 64,381 | |
Concentration percentage | 22.00% | 22.00% | 18.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Malaysia [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 55,189 | ||
Operating lease revenue | $ 26,748 | $ 8,767 | |
Concentration percentage | 12.00% | 7.00% | 3.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Philippines [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 34,217 | ||
Operating lease revenue | $ 35,009 | $ 29,825 | |
Concentration percentage | 7.00% | 9.00% | 9.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Indonesia [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 32,882 | ||
Operating lease revenue | $ 32,336 | $ 16,308 | |
Concentration percentage | 7.00% | 8.00% | 5.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | China [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 23,320 | ||
Operating lease revenue | $ 21,103 | $ 22,611 | |
Concentration percentage | 5.00% | 5.00% | 6.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 18,550 | ||
Operating lease revenue | $ 18,756 | $ 10,496 | |
Concentration percentage | 5.00% | 4.00% | 3.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Mexico, South and Central America [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 5,425 | ||
Operating lease revenue | $ 11,415 | $ 17,565 | |
Concentration percentage | 1.00% | 3.00% | 5.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | North America [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 21,258 | ||
Operating lease revenue | $ 26,389 | $ 23,884 | |
Concentration percentage | 5.00% | 7.00% | 7.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United States [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 16,267 | ||
Operating lease revenue | $ 20,147 | $ 17,647 | |
Concentration percentage | 4.00% | 5.00% | 5.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 4,991 | ||
Operating lease revenue | $ 6,242 | $ 6,237 | |
Concentration percentage | 1.00% | 2.00% | 2.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Middle East and Africa [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 39,450 | ||
Operating lease revenue | $ 47,631 | $ 39,936 | |
Concentration percentage | 8.00% | 12.00% | 11.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Ethiopia [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 30,019 | ||
Operating lease revenue | $ 30,019 | $ 30,018 | |
Concentration percentage | 6.00% | 8.00% | 9.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 9,431 | ||
Operating lease revenue | $ 17,612 | $ 9,918 | |
Concentration percentage | 2.00% | 4.00% | 2.00% |
FLIGHT EQUIPMENT HELD FOR OPE_6
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |
Operating lease rental revenue | $ 391,100 |
Amount from leases with variable rates | 71,400 |
Future Minimum Rental Payments Due [Abstract] | |
2020 | 321,993 |
2021 | 288,459 |
2022 | 244,007 |
2023 | 201,380 |
2024 | 186,707 |
Thereafter | 480,878 |
Future minimum rental payments under operating leases | $ 1,723,424 |
FLIGHT EQUIPMENT HELD FOR OPE_7
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Amortization of Lease Incentives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |||
Amortization of lease incentives | $ 5,600 | $ 9,700 | $ 7,700 |
Amortization of Lease Incentives [Abstract] | |||
2020 | 2,573 | ||
2021 | 3,221 | ||
2022 | 2,821 | ||
2023 | 1,614 | ||
2024 | 736 | ||
Thereafter | 303 | ||
Future amortization of lease incentives | $ 11,268 |
MAINTENANCE RIGHTS (Details)
MAINTENANCE RIGHTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
MAINTENANCE RIGHTS [Abstract] | ||
Maintenance rights, net beginning balance | $ 298,207 | $ 131,299 |
Acquisitions | 94,664 | 189,864 |
Capitalized to aircraft improvements | (6,739) | (9,240) |
Maintenance rights settled with retained maintenance payments | (3,996) | (2,369) |
Cash receipts from maintenance rights | (4,637) | (3,013) |
Maintenance rights associated with aircraft sold | (86,541) | (8,334) |
Maintenance rights, net ending balance | $ 290,958 | $ 298,207 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Oct. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Other Assets [Abstract] | ||||
Portfolio B orderbook value | $ 100,935 | $ 103,951 | ||
Equity certificates | 16,048 | 5,747 | ||
Value added tax receivables, net | 7,714 | 6,016 | ||
Investment in unconsolidated subsidiary | 259 | 2,908 | ||
Other assets | 4,421 | 6,338 | ||
Total other assets | 129,377 | 124,960 | ||
Other Assets [Abstract] | ||||
Purchase of equity certificates | $ 10,481 | 5,747 | $ 0 | |
Fly-Z/C LP [Member] | ||||
Other Assets [Abstract] | ||||
Limited partnership interest percentage | 57.40% | |||
Distributions from unconsolidated subsidiary | $ 5,400 | 5,200 | $ 0 | |
Summit Aviation Partners LLC [Member] | Fly-Z/C LP [Member] | ||||
Other Assets [Abstract] | ||||
Limited partnership interest percentage | 10.20% | |||
Horizon II [Member] | ||||
Other Assets [Abstract] | ||||
Purchase of equity certificates | $ 7,400 | |||
Percentage of equity certificates purchased | 6.00% | |||
Term of lock-up period | 7 years | |||
Horizon III [Member] | ||||
Other Assets [Abstract] | ||||
Purchase of equity certificates | $ 3,100 | $ 3,100 | ||
Percentage of equity certificates purchased | 3.00% | 3.10% | ||
Term of lock-up period | 7 years | |||
Horizon I [Member] | ||||
Other Assets [Abstract] | ||||
Purchase of equity certificates | $ 5,700 | |||
Percentage of equity certificates purchased | 4.00% | |||
Term of lock-up period | 7 years |
UNSECURED BORROWINGS, Unsecured
UNSECURED BORROWINGS, Unsecured Debt, Net (Details) - USD ($) $ in Thousands | Dec. 15, 2017 | Oct. 16, 2017 | Oct. 03, 2014 | Dec. 11, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Unsecured Borrowings [Abstract] | |||||||
Unsecured borrowings, net | $ 619,407 | $ 617,664 | |||||
Proceeds from unsecured borrowings | 0 | 0 | $ 295,150 | ||||
Repayment of unsecured borrowings | 0 | 0 | 375,000 | ||||
Loss on modification and extinguishment of debt | (9,590) | (2,474) | $ (23,309) | ||||
Unsecured Borrowings [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Outstanding principal balance | 625,000 | 625,000 | |||||
Unamortized debt discount and loan costs | (5,593) | (7,336) | |||||
Unsecured borrowings, net | 619,407 | 617,664 | |||||
Accrued interest | 7,700 | 7,700 | |||||
Unsecured Borrowings [Member] | 2020 Notes [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Notes issued | $ 75,000 | $ 300,000 | |||||
Interest rate | 6.75% | 6.75% | |||||
Underwriting debt discount paid | $ 8,500 | ||||||
Percentage of principal paid as premium at time of issuance | 104.75% | ||||||
Repayment of unsecured borrowings | $ 375,000 | ||||||
Loss on modification and extinguishment of debt | $ 19,700 | ||||||
Unsecured Borrowings [Member] | 2021 Notes [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Outstanding principal balance | $ 325,000 | 325,000 | |||||
Notes issued | $ 325,000 | ||||||
Interest rate | 6.375% | ||||||
Maturity date | Oct. 15, 2021 | ||||||
Unsecured Borrowings [Member] | 2024 Notes [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Outstanding principal balance | $ 300,000 | $ 300,000 | |||||
Notes issued | $ 300,000 | ||||||
Interest rate | 5.25% | ||||||
Proceeds from unsecured borrowings | $ 294,200 | ||||||
Maturity date | Oct. 15, 2024 | ||||||
Unsecured Borrowings [Member] | Additional 2020 Notes and 2021 Notes [Member] | |||||||
Unsecured Borrowings [Abstract] | |||||||
Underwriting debt discount paid | $ 3,400 |
UNSECURED BORROWINGS, Redemptio
UNSECURED BORROWINGS, Redemption Prices (Details) - Unsecured Borrowings [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2019 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2019 |
Redemption price percentage | 101.594% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2020 and Thereafter [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2020 |
Redemption price percentage | 100.00% |
2024 Notes [Member] | Twelve Month Period Commencing October 15, 2018 [Member] | |
Unsecured Borrowings [Abstract] | |
End date of redemption period | Oct. 14, 2020 |
Redemption percentage of principal amount | 35.00% |
2024 Notes [Member] | Any Time Prior to October 15, 2020 [Member] | |
Unsecured Borrowings [Abstract] | |
Redemption price percentage | 105.25% |
2024 Notes [Member] | Twelve Month Period Commencing October 15, 2020 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2020 |
Redemption price percentage | 102.625% |
2024 Notes [Member] | Twelve Month Period Commencing October 15, 2021 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2021 |
Redemption price percentage | 101.313% |
2024 Notes [Member] | Twelve Month Period Commencing October 15, 2022 and Thereafter [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2022 |
Redemption price percentage | 100.00% |
2021 Notes and 2024 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Period of default for payment of interest | 30 days |
Period of default after receipt of written notice to comply with agreements under indenture | 60 days |
Percentage of aggregate principal amount held by holders | 25.00% |
Obligations in default constituting event of default | $ 50 |
Period to pay final judgments after judgment becomes final | 60 days |
SECURED BORROWINGS, Secured Bor
SECURED BORROWINGS, Secured Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Secured Borrowings [Abstract] | |||
Total secured borrowings, net | $ 1,695,525 | $ 2,379,869 | |
Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | 1,717,483 | 2,416,807 | |
Unamortized debt discount and loan costs | (21,958) | (36,938) | |
Total secured borrowings, net | [1] | 1,695,525 | 2,379,869 |
Accrued interest | 9,200 | 10,900 | |
Secured Borrowings [Member] | Securitization Notes [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 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 | $ 65,290 | $ 108,882 | |
Weighted average interest rate | [2] | 3.59% | 4.29% |
Maturity date | May 14, 2021 | ||
Secured Borrowings [Member] | Term Loan [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 385,364 | $ 407,768 | |
Weighted average interest rate | [2] | 4.15% | 5.17% |
Maturity date | Aug. 9, 2025 | ||
Secured Borrowings [Member] | Magellan Acquisition Limited Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 278,684 | $ 305,226 | |
Weighted average interest rate | [2] | 4.11% | 4.18% |
Maturity date | Dec. 8, 2025 | ||
Secured Borrowings [Member] | Fly Acquisition III Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 0 | $ 190,457 | |
Weighted average interest rate | [2] | 0.00% | 4.10% |
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 272,343 | $ 467,179 | |
Weighted average interest rate | [2] | 4.85% | 4.59% |
Maturity date, range start date | Jun. 15, 2023 | ||
Secured Borrowings [Member] | Fly Aladdin Engine Funding Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 42,339 | $ 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 | $ 673,463 | $ 807,882 | |
Weighted average interest rate | [2] | 4.07% | 4.44% |
Maturity date, range start date | Dec. 31, 2020 | ||
Maturity date, range end date | Jun. 30, 2028 | ||
[1] | As of December 31, 2019 and 2018, accrued interest on secured borrowings totaled $9.2 million and $10.9 million, respectively. | ||
[2] | Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. |
SECURED BORROWINGS, Securitizat
SECURED BORROWINGS, Securitization Notes (Details) - B&B Air Funding [Member] - Secured Borrowings [Member] - Securitization Notes [Member] - USD ($) $ in Thousands | Mar. 14, 2019 | Dec. 31, 2019 |
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 | 2 Months Ended | 10 Months Ended | 12 Months Ended |
Dec. 31, 2018USD ($) | Nov. 13, 2018 | Dec. 31, 2019USD ($)Aircraft | |
Secured Borrowings [Abstract] | |||
Principal amount outstanding | $ 2,416,807 | $ 1,717,483 | |
Nord LB Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | $ 108,882 | $ 65,290 | |
Number of aircraft serving as security | Aircraft | 3 | ||
Maturity date | May 14, 2021 | ||
Percentage of lease rentals collected applied to interest and principal | 95.00% | ||
Period after termination or expiration of lease when payments become due | 6 months | ||
Period aircraft remains off-lease before interest is charged | 6 months | ||
Period aircraft remains off-lease before debt service is charged | 12 months | ||
Percentage of lease rate paid as debt service fee | 85.00% | ||
Period aircraft remains off-lease before payment in full is required or foreclosure on aircraft occurs | 24 months | ||
Nord LB Facility [Member] | Minimum [Member] | |||
Secured Borrowings [Abstract] | |||
Obligations in default constituting event of default | $ 10,000 | ||
Nord LB Facility [Member] | LIBOR [Member] | |||
Secured Borrowings [Abstract] | |||
Term of variable rate | 1 month | ||
Basis spread on variable rate | 1.85% | 3.30% |
SECURED BORROWINGS, Term Loan (
SECURED BORROWINGS, Term Loan (Details) $ in Thousands | Nov. 22, 2019USD ($) | Apr. 28, 2017USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2017 | Apr. 27, 2017 | Oct. 31, 2017 | Dec. 31, 2019USD ($)AircraftAppraiser | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 21, 2019 | |
Secured Borrowings [Abstract] | |||||||||||
Proceeds from secured borrowings | $ 0 | $ 826,396 | $ 513,459 | ||||||||
Secured Borrowings [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Principal amount outstanding | $ 1,717,483 | 1,717,483 | 2,416,807 | ||||||||
Secured Borrowings [Member] | Term Loan [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Principal amount outstanding | $ 385,364 | $ 385,364 | $ 407,768 | ||||||||
Number of aircraft serving as security | Aircraft | 27 | ||||||||||
Maturity date | Aug. 9, 2025 | ||||||||||
Redemption price percentage | 101.00% | ||||||||||
Weighted average interest rate | [1] | 4.15% | 4.15% | 5.17% | |||||||
Frequency of periodic payment | Quarterly | ||||||||||
Principal payment | $ 5,600 | ||||||||||
One-time percentage fee paid in connection with amending the loan | 0.25% | ||||||||||
Prepayment penalty | $ 0 | ||||||||||
Proceeds from secured borrowings | $ 50,000 | ||||||||||
Loss on extinguishment of debt | $ 3,000 | ||||||||||
Number of independent appraisers | Appraiser | 3 | ||||||||||
Secured Borrowings [Member] | Term Loan [Member] | Maximum [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Loan-to-value ratio | 70.00% | ||||||||||
Secured Borrowings [Member] | Term Loan [Member] | Minimum [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Obligations in default constituting event of default | $ 50,000 | ||||||||||
Secured Borrowings [Member] | Term Loan [Member] | LIBOR [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Term of variable rate | 3 months | ||||||||||
Basis spread on variable rate | 1.75% | 2.00% | 2.75% | 2.25% | 2.00% | ||||||
Floor interest rate | 0.75% | ||||||||||
[1] | Represents the contractual interest rates and effect of derivative instruments and excludes the amortization of debt discounts and debt issuance costs. |
SECURED BORROWINGS, Magellan Ac
SECURED BORROWINGS, Magellan Acquisition Limited Facility (Details) - Secured Borrowings [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)AircraftAppraiser | Dec. 31, 2018USD ($) | |
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 1,717,483 | $ 2,416,807 |
Magellan Acquisition Limited Facility [Member] | ||
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 278,684 | $ 305,226 |
Number of aircraft serving as security | Aircraft | 9 | |
Maturity date | Dec. 8, 2025 | |
Frequency of periodic payment | monthly | |
Principal payment | $ 2,200 | |
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 [Member] | Minimum [Member] | ||
Secured Borrowings [Abstract] | ||
Obligations in default constituting event of default | $ 50,000 | |
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% |
SECURED BORROWINGS, Fly Acquisi
SECURED BORROWINGS, Fly Acquisition III Facility (Details) - Secured Borrowings [Member] - Revolving Credit Facility [Member] - Fly Acquisition III Facility [Member] | 8 Months Ended | 12 Months Ended | 36 Months Ended |
Oct. 22, 2019 | Dec. 31, 2019 | Feb. 26, 2019 | |
Secured Borrowings [Abstract] | |||
Maturity date | Feb. 26, 2022 | ||
Minimum [Member] | |||
Secured Borrowings [Abstract] | |||
Commitment fee percentage | 0.50% | ||
Maximum [Member] | |||
Secured Borrowings [Abstract] | |||
Commitment fee percentage | 0.75% | ||
LIBOR [Member] | |||
Secured Borrowings [Abstract] | |||
Term of variable rate | 1 month | ||
Basis spread on variable rate | 2.50% | 2.00% |
SECURED BORROWINGS, Fly Aladdin
SECURED BORROWINGS, Fly Aladdin Acquisition Facility (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)AircraftAppraiserqtr | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Secured Borrowings [Abstract] | ||||
Repayment of debt | $ 698,989 | $ 482,703 | $ 326,909 | |
Secured Borrowings [Member] | ||||
Secured Borrowings [Abstract] | ||||
Principal amount outstanding | $ 2,416,807 | 1,717,483 | 2,416,807 | |
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility [Member] | ||||
Secured Borrowings [Abstract] | ||||
Principal amount outstanding | 467,179 | $ 272,343 | 467,179 | |
Number of aircraft serving as security | Aircraft | 15 | |||
Loss on extinguishment of debt | $ 2,600 | |||
Commitment fee | $ 9,500 | |||
Repayment of debt | 81,100 | |||
Write off of debt issuance cost | $ 900 | |||
Debt service coverage ratio | 1.15 | |||
Loan-to-value ratio | 71.00% | |||
Percentage of aircraft financed under facility | 85.00% | |||
Period aircraft financed under facility have been subject to lease | 6 months | |||
Number of independent appraisers | Appraiser | 3 | |||
Number of consecutive quarterly payments for breach of debt service coverage ratio | qtr | 2 | |||
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility [Member] | Minimum [Member] | ||||
Secured Borrowings [Abstract] | ||||
Obligations in default constituting event of default | $ 50,000 | |||
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] | ||||
Secured Borrowings [Abstract] | ||||
Principal amount outstanding | $ 272,300 | |||
Maturity date | Jun. 15, 2023 | |||
Secured Borrowings [Member] | Fly Aladdin Acquisition Facility, Series B Loan [Member] | LIBOR [Member] | ||||
Secured Borrowings [Abstract] | ||||
Basis spread on variable rate | 1.80% |
SECURED BORROWINGS, Fly Aladd_2
SECURED BORROWINGS, Fly Aladdin Engine Funding Facility (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2018USD ($) | Dec. 31, 2019USD ($)Engine | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Secured Borrowings [Abstract] | ||||
Proceeds from secured borrowings | $ 0 | $ 826,396 | $ 513,459 | |
Secured Borrowings [Member] | ||||
Secured Borrowings [Abstract] | ||||
Principal amount outstanding | 1,717,483 | 2,416,807 | ||
Secured Borrowings [Member] | Fly Aladdin Engine Funding Facility [Member] | ||||
Secured Borrowings [Abstract] | ||||
Principal amount outstanding | $ 42,339 | $ 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 | |||
Proceeds from secured borrowings | $ 43,900 | |||
Upfront fee paid | $ 400 | |||
Secured Borrowings [Member] | Fly Aladdin Engine Funding Facility [Member] | Minimum [Member] | ||||
Secured Borrowings [Abstract] | ||||
Interest rate | 4.94% | |||
Secured Borrowings [Member] | Fly Aladdin Engine Funding Facility [Member] | Maximum [Member] | ||||
Secured Borrowings [Abstract] | ||||
Interest rate | 4.96% |
SECURED BORROWINGS, Other Aircr
SECURED BORROWINGS, Other Aircraft Secured Borrowings (Details) - Secured Borrowings [Member] $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)AircraftLoan | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | |
Secured Borrowings [Abstract] | |||
Principal amount outstanding | $ 1,717,483 | $ 2,416,807 | |
Other Aircraft Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Number of loans denominated in Euros | Loan | 1 | ||
Principal amount outstanding | $ 673,463 | $ 807,882 | |
Number of aircraft serving as security | Aircraft | 14 | ||
Maturity date, range start date | Dec. 31, 2020 | ||
Maturity date, range end date | Jun. 30, 2028 | ||
Recourse debt | $ 372,100 | ||
Recourse Secured Borrowing [Member] | |||
Secured Borrowings [Abstract] | |||
Face amount | $ 122,500 |
SECURED BORROWINGS, Future Mini
SECURED BORROWINGS, Future Minimum Principal Payments on Secured Borrowings (Details) - Secured Borrowings [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Secured Borrowings [Abstract] | ||
Scheduled principal payments | $ 179,700 | |
Future Minimum Principal Payments [Abstract] | ||
2020 | 172,684 | |
2021 | 241,435 | |
2022 | 169,409 | |
2023 | 408,302 | |
2024 | 113,733 | |
Thereafter | 611,920 | |
Future minimum principal payments due | $ 1,717,483 | $ 2,416,807 |
DERIVATIVES, Derivatives (Detai
DERIVATIVES, Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivatives [Abstract] | |||
Fair value of derivative assets | $ 4,824 | $ 5,929 | |
Fair value of derivative liabilities | 27,943 | 8,558 | |
Reclassification of prior period losses into other comprehensive loss due to adoption of new accounting guidance | 0 | ||
Interest expense | 137,133 | 144,742 | $ 127,782 |
Operating lease revenue | 464,399 | ||
Operating lease revenue | 399,514 | 346,894 | |
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 | 1,100,000 | ||
Interest Rate Swap Contracts [Member] | |||
Derivatives [Abstract] | |||
Notional amounts | 800,000 | 1,100,000 | |
Fair value of derivative assets | 3,200 | ||
Fair value of derivative liabilities | 27,900 | 8,600 | |
Interest expense | $ 3,100 | 5,900 | $ 5,300 |
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 | $ 58,600 | ||
Fair value of derivative assets | 4,800 | 2,700 | |
Operating lease revenue | $ 1,400 | ||
Operating lease revenue | $ 800 |
DERIVATIVES, Designated Derivat
DERIVATIVES, Designated Derivative Assets (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Instrument$ / € | Dec. 31, 2018USD ($) | |
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ 4,824 | $ 5,929 |
Cross Currency Swap Contract [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ 4,800 | $ 2,700 |
Designated Derivatives [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 1 | |
Designated Derivatives [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ 4,824 | |
Designated Derivatives [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Gain recognized in accumulated comprehensive loss | $ 4,204 | |
Designated Derivatives [Member] | Cross Currency Swap Contract [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 1 | |
Maturity date | Nov. 26, 2025 | |
Contracted fixed conversion rate to U.S. Dollar | $ / € | 1.3068 | |
Contracted USD to be received | $ 58,592 | |
Gain recognized in accumulated comprehensive loss | 4,204 | |
Designated Derivatives [Member] | Cross Currency Swap Contract [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | 4,805 | |
Accrued rent | $ 19 |
DERIVATIVES, Designated Deriv_2
DERIVATIVES, Designated Derivative Liabilities (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)Instrument | Dec. 31, 2018USD ($) | |
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ (27,943) | $ (8,558) |
Interest Rate Swap Contracts [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ (27,900) | $ (8,600) |
Designated Derivatives [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 30 | |
Contract notional amount | $ 792,636 | |
Designated Derivatives [Member] | Derivative Liabilities [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | (27,491) | |
Designated Derivatives [Member] | Derivative Liabilities [Member] | ||
Derivatives [Abstract] | ||
Loss recognized in accumulated comprehensive loss, net of tax | $ (22,615) | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 30 | |
Contract notional amount | $ 792,636 | |
Loss recognized in accumulated comprehensive loss, net of tax | $ (22,615) | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Minimum [Member] | ||
Derivatives [Abstract] | ||
Maturity date | Feb. 9, 2023 | |
Hedge interest rate | 2.28% | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Maximum [Member] | ||
Derivatives [Abstract] | ||
Maturity date | Dec. 8, 2025 | |
Hedge interest rate | 3.13% | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | ||
Derivatives [Abstract] | ||
Credit risk adjusted fair value | $ (26,559) | |
Accrued interest | $ (932) |
DERIVATIVES, Dedesignated Deriv
DERIVATIVES, Dedesignated Derivatives (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)InstrumentContract | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Derivatives [Abstract] | ||||
Credit risk adjusted fair value | $ (27,943) | $ (8,558) | ||
Reclassification from other comprehensive loss into earnings, net of deferred tax | [1],[2] | (2,829) | (3,717) | $ (1,239) |
Gain on derivatives | (2,720) | 2,382 | 192 | |
Interest Rate Swap Contracts [Member] | ||||
Derivatives [Abstract] | ||||
Credit risk adjusted fair value | $ (27,900) | (8,600) | ||
Number of contracts matured | Contract | 1 | |||
Dedesignated Derivatives [Member] | ||||
Derivatives [Abstract] | ||||
Quantity | Instrument | 3 | |||
Contract notional amount | $ 12,259 | |||
Credit risk adjusted fair value | $ (452) | |||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | ||||
Derivatives [Abstract] | ||||
Quantity | Instrument | 3 | |||
Maturity date | Jun. 15, 2023 | |||
Contract notional amount | $ 12,259 | |||
Credit risk adjusted fair value | (434) | |||
Accrued interest | (18) | |||
Loss recognized in accumulated comprehensive loss, net of tax, to be amortized | (400) | (500) | (4,300) | |
Interest expense | $ 500 | 4,100 | $ 1,400 | |
Number of contracts terminated | Contract | 16 | |||
Reclassification from other comprehensive loss into earnings, net of deferred tax | $ 2,400 | |||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Minimum [Member] | ||||
Derivatives [Abstract] | ||||
Hedge interest rate | 2.66% | |||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Maximum [Member] | ||||
Derivatives [Abstract] | ||||
Hedge interest rate | 2.68% | |||
Dedesignated Derivatives [Member] | Interest Rate Lock Derivative Contracts [Member] | ||||
Derivatives [Abstract] | ||||
Gain on derivatives | $ 1,800 | |||
[1] | See Note 11 to Notes to Consolidated Financial Statements. | |||
[2] | The associated deferred tax expense was $0.4 million, $0.3 million and $0.2 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
INCOME TAXES, Income Tax Expens
INCOME TAXES, Income Tax Expense (Benefits) by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Corporation tax rate on trading income | 12.50% | 12.50% | 12.50% |
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense (benefit) | $ 78 | $ (44) | $ 4,300 |
Deferred tax expense (benefit) | 20,449 | 9,970 | 7,032 |
Total income tax expense (benefit) | $ 20,527 | 9,926 | 11,332 |
Ireland [Member] | |||
Income Taxes [Abstract] | |||
Corporation tax rate on trading income | 12.50% | ||
Corporation tax rate on non-trading income | 25.00% | ||
Ireland [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense (benefit) | $ 0 | 0 | 0 |
Deferred tax expense (benefit) | 21,359 | 9,865 | 8,710 |
Luxembourg [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense (benefit) | 55 | 44 | 195 |
Australia [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense (benefit) | 0 | (138) | 4,062 |
Deferred tax expense (benefit) | (910) | 105 | (1,743) |
Other [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense (benefit) | 23 | 50 | 43 |
Deferred tax expense (benefit) | $ 0 | $ 0 | $ 65 |
INCOME TAXES, Net Deferred Tax
INCOME TAXES, Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Deferred Tax Asset [Abstract] | |||
Net operating loss carry forwards | 142,685 | 177,663 | |
Net unrealized losses on derivative instruments | 3,794 | 773 | |
Basis difference on acquisition of GAAM Australian assets | 6,575 | 6,619 | |
Other | 124 | 168 | |
Valuation allowance | (33,929) | (37,429) | |
Total deferred tax asset | 119,249 | 147,794 | |
Deferred Tax Liability [Abstract] | |||
Excess of tax depreciation over book depreciation | (165,343) | (171,725) | |
Miscellaneous book/tax differences | (166) | (112) | |
Net earnings of non-European Union member subsidiaries | 0 | (3,654) | |
Withholding tax on Australian unrepatriated earnings | 0 | (2,054) | |
Total deferred tax liability | (165,509) | (177,545) | |
Deferred tax liability, net | (46,260) | (29,751) | |
Net valuation allowance recorded for net operating losses | $ (3,400) | $ (1,300) | $ 8,400 |
INCOME TAXES, Reconciliation of
INCOME TAXES, Reconciliation of Statutory to Effective Tax Rate (Details) $ in Thousands, € in Millions | 1 Months Ended | 12 Months Ended | ||
Feb. 28, 2018EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017 | |
Reconciliation of Income Tax Expense (Benefit) [Abstract] | ||||
Irish statutory corporate tax rate on trading income | 12.50% | 12.50% | 12.50% | |
Valuation allowances | (1.40%) | (1.40%) | 59.90% | |
Tax impact of repurchased and resold Notes | (0.10%) | 0.10% | (0.80%) | |
Foreign tax rate differentials | (0.40%) | (2.80%) | (18.40%) | |
True-up of prior year tax provision | (0.10%) | 0.00% | 2.20% | |
Non-deductible interest expense, transaction fees and expenses | 0.50% | 1.80% | 12.20% | |
Deductible interest paid in the period | (2.70%) | 0.00% | 0.00% | |
Unrealized foreign exchange loss on re-valuation of deferred tax balances | 0.00% | 0.10% | 0.50% | |
Withholding tax | 0.00% | 0.00% | 13.30% | |
Other | 0.00% | 0.10% | (0.10%) | |
Effective tax rate | 8.30% | 10.40% | 81.30% | |
Income Taxes [Abstract] | ||||
Tax liability in connection with unrepatriated Australian earnings | $ 0 | $ 2,054 | ||
Decrease in tax liability in connection with unrepatriated Australian earnings | (900) | |||
Income tax benefit from deductible interest paid in the period | $ (6,700) | |||
Irish Revenue [Member] | ||||
Reconciliation of Income Tax Expense (Benefit) [Abstract] | ||||
Irish statutory corporate tax rate on trading income | 12.50% | |||
Foreign [Member] | Irish Revenue [Member] | ||||
Income Taxes [Abstract] | ||||
Period in which enquiries and/or assessments can be raised by taxing authority after return is submitted | 4 years | |||
Open tax year | 2015 2016 2017 2018 2019 | |||
Value Added Tax assessment | € | € 6.1 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
OTHER LIABILITIES [Abstract] | ||
Current tax payable | $ 308 | $ 50 |
Lease discount | 24,965 | 25,539 |
Lease incentive obligation | 15,634 | 14,020 |
Deferred rent | 15,715 | 15,067 |
Refundable deposits | 3,210 | 3,420 |
Other | 16,929 | 22,306 |
Total other liabilities | $ 76,761 | $ 80,402 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - 2010 Omnibus Incentive Plan [Member] | 12 Months Ended | ||||
Dec. 31, 2019Installment$ / sharesshares | Dec. 31, 2018$ / sharesshares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / sharesshares | Apr. 29, 2010shares | |
Description of Plan [Abstract] | |||||
Number of shares authorized (in shares) | 1,500,000 | ||||
SARs [Member] | |||||
Description of Plan [Abstract] | |||||
Number of equal installments for awards to vest | Installment | 3 | ||||
Expiration period | 10 years | ||||
Grant Activity [Abstract] | |||||
Outstanding and vested (in shares) | 796,980 | 796,980 | 821,117 | ||
SARs exercised (in shares) | 782,955 | 0 | 24,137 | ||
Outstanding (in shares) | 14,025 | 796,980 | 796,980 | 821,117 | |
Exercisable (in shares) | 14,025 | ||||
Outstanding (in dollars per share) | $ / shares | $ 12.74 | $ 12.74 | $ 12.74 | ||
SARs exercised (in dollars per share) | $ / shares | 12.73 | 0 | 12.73 | ||
Outstanding (in dollars per share) | $ / shares | 12.95 | $ 12.74 | $ 12.74 | $ 12.74 | |
Exercisable (in dollars per share) | $ / shares | $ 12.95 | ||||
Weighted average remaining contractual life | 1 year 7 months 6 days | 2 years 1 month 6 days | 3 years 1 month 6 days | 4 years 1 month 6 days | |
RSUs [Member] | |||||
Description of Plan [Abstract] | |||||
Number of equal installments for awards to vest | Installment | 3 | ||||
Expiration period | 10 years |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) | Aug. 30, 2018 | Jul. 13, 2018 | Feb. 28, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2019 | Nov. 30, 2018 |
Shareholders' Equity [Abstract] | ||||||||
Shares repurchased (in shares) | 114,354 | 2,010,437 | 0 | 4,274,569 | ||||
Average price per share repurchased (in dollars per share) | $ 16.29 | $ 13.35 | ||||||
Repurchase of shares before commissions and fees | $ 32,800,000 | $ 57,100,000 | ||||||
Dividends declared and paid | $ 0 | $ 0 | $ 0 | |||||
Shares issued in connection with AirAsia Transactions (in shares) | 3,333,333 | 1,333,334 | ||||||
Proceeds from common stock | $ 20,000,000 | |||||||
Share price (in dollars per share) | $ 15 | $ 15 | $ 16.85 | |||||
Shares issued in connection with SARs exercised (in shares) | 258,828 | 0 | 1,481 | |||||
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 | |||||||
AirAsia Group [Member] | Fly [Member] | Maximum [Member] | ||||||||
SHAREHOLDERS' EQUITY [Abstract] | ||||||||
Percentage of outstanding shares owned | 10.00% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator [Abstract] | |||||||||||
Net income attributable to common shareholders | $ 225,877 | $ 85,723 | $ 2,598 | ||||||||
Denominator [Abstract] | |||||||||||
Weighted average shares outstanding-Basic (in shares) | 31,607,781 | 29,744,083 | 30,307,357 | ||||||||
Weighted average shares outstanding-Diluted (in shares) | 31,715,469 | 29,783,904 | 30,353,425 | ||||||||
Basic [Abstract] | |||||||||||
Distributed earnings (in dollars per share) | $ 0 | $ 0 | $ 0 | ||||||||
Undistributed income (in dollars per share) | 7.15 | 2.88 | 0.09 | ||||||||
Basic earnings per share (in dollars per share) | $ 2.43 | $ 1.67 | $ 1.69 | $ 1.38 | $ 0.95 | $ 0.68 | $ 0.87 | $ 0.34 | 7.15 | 2.88 | 0.09 |
Diluted [Abstract] | |||||||||||
Distributed earnings (in dollars per share) | 0 | 0 | 0 | ||||||||
Undistributed income (in dollars per share) | 7.12 | 2.88 | 0.09 | ||||||||
Diluted earnings per share (in dollars per share) | $ 2.43 | $ 1.67 | $ 1.68 | $ 1.38 | $ 0.95 | $ 0.68 | $ 0.87 | $ 0.34 | $ 7.12 | $ 2.88 | $ 0.09 |
SARs [Member] | |||||||||||
Denominator [Abstract] | |||||||||||
Dilutive common equivalent shares (in shares) | 107,688 | 39,821 | 46,068 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Oct. 31, 2019USD ($)Aircraft | Jan. 31, 2020AircraftEngine | Feb. 28, 2020Aircraft | Mar. 31, 2020Aircraft | Dec. 31, 2019USD ($)Aircraft | Dec. 31, 2018USD ($)Aircraft | Dec. 31, 2017USD ($)Aircraft | Aug. 31, 2019Aircraft | Feb. 28, 2018Aircraft |
Commitments and Contingencies [Abstract] | |||||||||
Purchase of equity certificates | $ | $ 10,481 | $ 5,747 | $ 0 | ||||||
Subsequent Event [Member] | |||||||||
Commitments and Contingencies [Abstract] | |||||||||
Number of aircraft sold | 1 | 3 | |||||||
Number of engines sold | Engine | 2 | ||||||||
Horizon III [Member] | |||||||||
Commitments and Contingencies [Abstract] | |||||||||
Number of aircraft committed to be sold | 6 | ||||||||
Aggregate base purchase price | $ | $ 150,500 | ||||||||
Number of aircraft sold | 1 | ||||||||
Purchase of equity certificates | $ | $ 3,100 | $ 3,100 | |||||||
Percentage of equity certificates purchased | 3.00% | 3.10% | |||||||
Term of lock-up period | 7 years | ||||||||
Horizon III [Member] | Plan [Member] | |||||||||
Commitments and Contingencies [Abstract] | |||||||||
Number of aircraft sold | 3 | ||||||||
Horizon III [Member] | Subsequent Event [Member] | |||||||||
Commitments and Contingencies [Abstract] | |||||||||
Number of aircraft sold | 2 | ||||||||
Flight Equipment Held For Operating Lease [Member] | |||||||||
Commitments and Contingencies [Abstract] | |||||||||
Number of aircraft sold | 10 | 3 | 0 | ||||||
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, and delivered between 2021 and 2025 | 9 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)Extension | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | ||
Manager [Member] | Fixed Management Fee [Member] | ||||
Related Party Transactions [Abstract] | ||||
Adjustment for percentage change in book value of aircraft portfolio during preceding year | 0.30% | |||
Base amount used to calculate management fee adjustment | $ 2,700,000,000 | |||
Adjustment for percentage change in book value of aircraft portfolio in excess of base amount | 0.25% | |||
Number of automatic extensions | Extension | 1 | |||
Term of extension | 5 years | |||
Termination notice period | 12 months | |||
Manager [Member] | Fixed Management Fee [Member] | Minimum [Member] | ||||
Related Party Transactions [Abstract] | ||||
Charges from related party | $ 5,000,000 | |||
Manager [Member] | Fixed Management Fee [Member] | Maximum [Member] | ||||
Related Party Transactions [Abstract] | ||||
Charges from related party | 12,000,000 | |||
Adjustment increase over $2.7 billion | 2,000,000,000 | |||
Manager [Member] | Non-Renewal Fee [Member] | ||||
Related Party Transactions [Abstract] | ||||
Charges from related party | $ 6,000,000 | |||
Adjustment percentage of excess Management Expenses over threshold | 50.00% | |||
Manager [Member] | Fixed Management Expenses [Member] | ||||
Related Party Transactions [Abstract] | ||||
Expenses with related party | $ 9,600,000 | $ 7,300,000 | $ 6,300,000 | |
BBAM [Member] | ||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | 17,204,000 | |||
2021 | 17,607,000 | |||
2022 | 10,362,000 | |||
2023 | 8,635,000 | |||
2024 | 8,501,000 | |||
Thereafter | 44,453,000 | |||
Total | $ 106,762,000 | |||
BBAM [Member] | Rent Fee for Aircraft Financed by Securitization Notes [Member] | ||||
Related Party Transactions [Abstract] | ||||
Percentage of aircraft rent collected | 3.50% | |||
Monthly fee 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 with related party | $ 1,000 | |||
BBAM [Member] | Fixed Administrative Agency Fee [Member] | B&B Air Funding [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee per aircraft with related party | 20,000 | |||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [1] | 51,000 | ||
2021 | [1] | 36,000 | ||
2022 | [1] | 34,000 | ||
2023 | [1] | 24,000 | ||
2024 | [1] | 14,000 | ||
Thereafter | [1] | 84,000 | ||
Total | [1] | 243,000 | ||
BBAM [Member] | Fixed Administrative Agency Fee [Member] | Other Subsidiaries [Member] | ||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [2] | 336,000 | ||
2021 | [2] | 284,000 | ||
2022 | [2] | 250,000 | ||
2023 | [2] | 212,000 | ||
2024 | [2] | 192,000 | ||
Thereafter | [2] | 586,000 | ||
Total | [2] | $ 1,860,000 | ||
BBAM [Member] | Servicing Fee [Member] | ||||
Related Party Transactions [Abstract] | ||||
Percentage of aircraft rent collected | 3.50% | |||
BBAM [Member] | Servicing and Administrative Fees [Member] | ||||
Related Party Transactions [Abstract] | ||||
Expenses with related party | $ 15,400,000 | 15,800,000 | 13,100,000 | |
BBAM [Member] | Origination Fees [Member] | ||||
Related Party Transactions [Abstract] | ||||
Expenses with related party | $ 5,000,000 | 16,100,000 | 6,800,000 | |
BBAM [Member] | Acquisition Fees [Member] | ||||
Related Party Transactions [Abstract] | ||||
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 | $ 15,400,000 | $ 3,100,000 | $ 300,000 | |
BBAM [Member] | Fixed Administrative Services Fee Under Term Loan [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee per aircraft with related party | 10,000 | |||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [2] | 384,000 | ||
2021 | [2] | 337,000 | ||
2022 | [2] | 236,000 | ||
2023 | [2] | 173,000 | ||
2024 | [2] | 149,000 | ||
Thereafter | [2] | 100,000 | ||
Total | [2] | 1,379,000 | ||
BBAM [Member] | Fixed Administrative Services Fee Under Magellan Acquisition Limited Facility [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee per aircraft with related party | 10,000 | |||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [2] | 204,000 | ||
2021 | [2] | 204,000 | ||
2022 | [2] | 203,000 | ||
2023 | [2] | 192,000 | ||
2024 | [2] | 192,000 | ||
Thereafter | [2] | 386,000 | ||
Total | [2] | 1,381,000 | ||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Acquisition III Facility [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee per aircraft with related party | 10,000 | |||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [2] | 48,000 | ||
2021 | [2] | 48,000 | ||
2022 | [2] | 48,000 | ||
2023 | [2] | 44,000 | ||
2024 | [2] | 36,000 | ||
Thereafter | [2] | 84,000 | ||
Total | [2] | 308,000 | ||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Aladdin Acquisition Facility [Member] | ||||
Related Party Transactions [Abstract] | ||||
Monthly fee per aircraft with related party | 10,000 | |||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [2] | 288,000 | ||
2021 | [2] | 278,000 | ||
2022 | [2] | 254,000 | ||
2023 | [2] | 140,000 | ||
2024 | [2] | 78,000 | ||
Thereafter | [2] | 92,000 | ||
Total | [2] | $ 1,130,000 | ||
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 per aircraft with related party | $ 1,000 | |||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [2] | 12,000 | ||
2021 | [2] | 12,000 | ||
2022 | [2] | 12,000 | ||
2023 | [2] | 10,000 | ||
2024 | [2] | 0 | ||
Thereafter | [2] | 0 | ||
Total | [2] | 46,000 | ||
BBAM [Member] | Fixed Management Expenses [Member] | ||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [1],[3] | 7,840,000 | ||
2021 | [1],[3] | 7,840,000 | ||
2022 | [1],[3] | 7,840,000 | ||
2023 | [1],[3] | 7,840,000 | ||
2024 | [1],[3] | 7,840,000 | ||
Thereafter | [1],[3] | 43,121,000 | ||
Total | [1],[3] | 82,321,000 | ||
BBAM [Member] | Acquisition Fees Related to Portfolio B in the AirAsia Transactions [Member] | ||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | [4] | 5,273,000 | ||
2021 | [4] | 8,568,000 | ||
2022 | [4] | 1,485,000 | ||
2023 | [4] | 0 | ||
2024 | [4] | 0 | ||
Thereafter | [4] | 0 | ||
Total | [4] | 15,326,000 | ||
BBAM [Member] | Disposition Fees on Flight Equipment Held for Sale [Member] | ||||
Minimum Long-Term Contractual Obligations [Abstract] | ||||
2020 | 2,768,000 | |||
2021 | 0 | |||
2022 | 0 | |||
2023 | 0 | |||
2024 | 0 | |||
Thereafter | 0 | |||
Total | $ 2,768,000 | |||
[1] | Assumes Consumer Price Index ("CPI") rates in effect as of December 31, 2019 remain constant in future periods. | |||
[2] | Assumes number of aircraft and engines at December 31, 2019 remain constant in future periods. | |||
[3] | Assumes automatic extension for one additional term of five years to June 30, 2030. Also assumes net book values of aircraft and engines at December 31, 2019 remains constant in future periods. | |||
[4] | Based on number of aircraft expected to be purchased. |
FAIR VALUE MEASUREMENTS, Carryi
FAIR VALUE MEASUREMENTS, Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
FAIR VALUE MEASUREMENTS [Abstract] | |||
Aircraft impairment | $ 0 | $ 0 | $ 22,000 |
Carrying Amount [Member] | Securitization Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 0 | 85,584 | |
Carrying Amount [Member] | Term Loan [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 385,364 | 407,768 | |
Carrying Amount [Member] | 2021 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 325,000 | 325,000 | |
Carrying Amount [Member] | 2024 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 300,000 | 300,000 | |
Fair Value [Member] | Securitization Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 0 | 80,770 | |
Fair Value [Member] | Term Loan [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 385,364 | 396,554 | |
Fair Value [Member] | 2021 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 331,207 | 329,875 | |
Fair Value [Member] | 2024 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | $ 314,070 | $ 279,390 |
FAIR VALUE MEASUREMENTS, Asset
FAIR VALUE MEASUREMENTS, Asset and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | $ 4,824 | $ 5,929 |
Derivative liabilities | 27,943 | 8,558 |
Recurring [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative assets | 4,824 | 5,929 |
Derivative liabilities | 27,943 | 8,558 |
Investment in equity certificates | 16,048 | 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 | 4,824 | 5,929 |
Derivative liabilities | 27,943 | 8,558 |
Investment in equity certificates | 16,048 | 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 |
UNAUDITED QUARTERLY CONDENSED_3
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |||||||||||
Total revenues | $ 154,254 | $ 139,034 | $ 147,033 | $ 134,703 | $ 122,305 | $ 104,566 | $ 102,673 | $ 88,755 | $ 575,024 | $ 418,299 | $ 353,251 |
Net income | $ 75,158 | $ 51,704 | $ 54,050 | $ 44,965 | $ 31,009 | $ 20,740 | $ 24,344 | $ 9,630 | $ 225,877 | $ 85,723 | $ 2,598 |
Earnings per share - Basic (in dollars per share) | $ 2.43 | $ 1.67 | $ 1.69 | $ 1.38 | $ 0.95 | $ 0.68 | $ 0.87 | $ 0.34 | $ 7.15 | $ 2.88 | $ 0.09 |
Earnings per share - Diluted (in dollars per share) | $ 2.43 | $ 1.67 | $ 1.68 | $ 1.38 | $ 0.95 | $ 0.68 | $ 0.87 | $ 0.34 | $ 7.12 | $ 2.88 | $ 0.09 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 2 Months Ended | 12 Months Ended | ||||
Jan. 31, 2020AircraftEngine | Feb. 28, 2020USD ($)Aircraft$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018shares | Dec. 31, 2017USD ($)shares | Aug. 30, 2018$ / shares | Jul. 13, 2018$ / shares | |
Subsequent Event [Abstract] | |||||||
Shares repurchased (in shares) | shares | 114,354 | 2,010,437 | 0 | 4,274,569 | |||
Share price (in dollars per share) | $ / shares | $ 16.85 | $ 15 | $ 15 | ||||
Shares repurchased | $ | $ 1,900 | $ 32,871 | $ 57,289 | ||||
Subsequent Event [Member] | |||||||
Subsequent Event [Abstract] | |||||||
Number of aircraft purchased | 1 | ||||||
Number of engines sold | Engine | 2 | ||||||
Number of aircraft sold | 1 | 3 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Parent, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 285,565 | $ 180,211 | $ 329,105 | |
Deferred tax asset, net | 11,675 | 6,505 | ||
Other assets, net | 129,377 | 124,960 | ||
Total assets | 3,665,159 | 4,226,472 | ||
Liabilities [Abstract] | ||||
Payable to related parties | 10,077 | 4,462 | ||
Unsecured borrowings, net | 619,407 | 617,664 | ||
Deferred tax liability, net | 57,935 | 36,256 | ||
Total liabilities | 2,786,882 | 3,524,362 | ||
Shareholders' equity | 878,277 | 702,110 | 543,709 | $ 593,235 |
Total liabilities and shareholders' equity | 3,665,159 | 4,226,472 | ||
Fly Leasing Limited [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 229,431 | 43,233 | $ 157,014 | $ 229,777 |
Notes receivable from subsidiaries | 440,801 | 466,729 | ||
Investments in subsidiaries | 1,197,465 | 1,019,048 | ||
Deferred tax asset, net | 145 | 0 | ||
Other assets, net | 19,553 | 11,019 | ||
Total assets | 1,887,395 | 1,540,029 | ||
Liabilities [Abstract] | ||||
Payable to related parties | 823 | 729 | ||
Payable to subsidiaries | 256,473 | 202,298 | ||
Unsecured borrowings, net | 734,053 | 617,664 | ||
Deferred tax liability, net | 0 | 3,066 | ||
Accrued and other liabilities | 17,769 | 14,162 | ||
Total liabilities | 1,009,118 | 837,919 | ||
Shareholders' equity | 878,277 | 702,110 | ||
Total liabilities and shareholders' equity | $ 1,887,395 | $ 1,540,029 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Parent, Condensed Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues [Abstract] | |||||||||||
Equity earnings (loss) from unconsolidated subsidiary | $ 2,717 | $ (54) | $ 496 | ||||||||
Interest and other income | 9,967 | 4,766 | 1,204 | ||||||||
Total revenues | $ 154,254 | $ 139,034 | $ 147,033 | $ 134,703 | $ 122,305 | $ 104,566 | $ 102,673 | $ 88,755 | 575,024 | 418,299 | 353,251 |
Expense [Abstract] | |||||||||||
Interest expense | 137,133 | 144,742 | 127,782 | ||||||||
Selling, general and administrative | 35,304 | 31,185 | 30,671 | ||||||||
Ineffective, dedesignated and terminated derivatives | 2,720 | (2,382) | (192) | ||||||||
Loss on modification and extinguishment of debt | 9,590 | 2,474 | 23,309 | ||||||||
Total expenses | 328,620 | 322,650 | 339,321 | ||||||||
Net income before provision for income taxes | 246,404 | 95,649 | 13,930 | ||||||||
Provision (benefit) for income taxes | 20,527 | 9,926 | 11,332 | ||||||||
Net income | $ 75,158 | $ 51,704 | $ 54,050 | $ 44,965 | $ 31,009 | $ 20,740 | $ 24,344 | $ 9,630 | $ 225,877 | $ 85,723 | $ 2,598 |
Weighted average number of shares [Abstract] | |||||||||||
Basic (in shares) | 31,607,781 | 29,744,083 | 30,307,357 | ||||||||
Diluted (in shares) | 31,715,469 | 29,783,904 | 30,353,425 | ||||||||
Earnings per share [Abstract] | |||||||||||
Basic (in dollars per share) | $ 2.43 | $ 1.67 | $ 1.69 | $ 1.38 | $ 0.95 | $ 0.68 | $ 0.87 | $ 0.34 | $ 7.15 | $ 2.88 | $ 0.09 |
Diluted (in dollars per share) | $ 2.43 | $ 1.67 | $ 1.68 | $ 1.38 | $ 0.95 | $ 0.68 | $ 0.87 | $ 0.34 | $ 7.12 | $ 2.88 | $ 0.09 |
Fly Leasing Limited [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Equity earnings from subsidiaries | $ 219,720 | $ 90,175 | $ 35,208 | ||||||||
Equity earnings (loss) from unconsolidated subsidiary | 2,717 | (54) | 496 | ||||||||
Intercompany management fee income | 16,452 | 16,844 | 12,124 | ||||||||
Intercompany interest income | 33,290 | 25,740 | 34,068 | ||||||||
Interest and other income | 6,066 | 1,072 | 809 | ||||||||
Total revenues | 278,245 | 133,777 | 82,705 | ||||||||
Expense [Abstract] | |||||||||||
Interest expense | 38,211 | 38,211 | 45,970 | ||||||||
Selling, general and administrative | 14,102 | 12,314 | 12,630 | ||||||||
Ineffective, dedesignated and terminated derivatives | 0 | (1,798) | 0 | ||||||||
Loss on modification and extinguishment of debt | 0 | 0 | 19,655 | ||||||||
Total expenses | 52,313 | 48,727 | 78,255 | ||||||||
Net income before provision for income taxes | 225,932 | 85,050 | 4,450 | ||||||||
Provision (benefit) for income taxes | 55 | (673) | 1,852 | ||||||||
Net income | $ 225,877 | $ 85,723 | $ 2,598 | ||||||||
Weighted average number of shares [Abstract] | |||||||||||
Basic (in shares) | 31,607,781 | 29,744,083 | 30,307,357 | ||||||||
Diluted (in shares) | 31,715,469 | 29,783,904 | 30,353,425 | ||||||||
Earnings per share [Abstract] | |||||||||||
Basic (in dollars per share) | $ 7.15 | $ 2.88 | $ 0.09 | ||||||||
Diluted (in dollars per share) | $ 7.12 | $ 2.88 | $ 0.09 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Parent, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net income | $ 75,158 | $ 51,704 | $ 54,050 | $ 44,965 | $ 31,009 | $ 20,740 | $ 24,344 | $ 9,630 | $ 225,877 | $ 85,723 | $ 2,598 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Equity (earnings) loss from unconsolidated subsidiary | (2,717) | 54 | (496) | ||||||||
Deferred income taxes | 20,449 | 9,970 | 7,032 | ||||||||
Loss on modification and extinguishment of debt | 9,590 | 2,474 | 23,309 | ||||||||
Distributions from unconsolidated subsidiary | 2,727 | 2,131 | 0 | ||||||||
Changes in operating assets and liabilities [Abstract] | |||||||||||
Other assets | (2,160) | (4,119) | (2,599) | ||||||||
Payable to related parties | 5,615 | 2,378 | (10,126) | ||||||||
Net cash flows provided by operating activities | 272,170 | 241,080 | 179,053 | ||||||||
Cash Flows from Investing Activities [Abstract] | |||||||||||
Distributions received from unconsolidated subsidiary | 2,639 | 3,103 | 0 | ||||||||
Investment income from equity certificates | 1,603 | 0 | 0 | ||||||||
Investment in equity certificates | (10,481) | (5,747) | 0 | ||||||||
Net cash flows provided by (used in) investing activities | 481,386 | (853,453) | (430,413) | ||||||||
Cash Flows from Financing Activities [Abstract] | |||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 0 | 295,150 | ||||||||
Repayment of unsecured borrowings | 0 | 0 | (375,000) | ||||||||
Debt modification and extinguishment costs | (2,052) | 301 | (17,396) | ||||||||
Debt issuance costs | (342) | (3,619) | (1,464) | ||||||||
Shares issued | 0 | 19,624 | 0 | ||||||||
Shares repurchased | (32,871) | 0 | (57,286) | ||||||||
Net cash flows (used in) provided by financing activities | (696,325) | 436,733 | 95,658 | ||||||||
Cash and cash equivalents at beginning of year | 180,211 | 329,105 | 180,211 | 329,105 | |||||||
Cash and cash equivalents at end of year | 285,565 | 180,211 | 285,565 | 180,211 | 329,105 | ||||||
Cash paid during the period for [Abstract] | |||||||||||
Interest | 126,659 | 126,648 | 113,710 | ||||||||
Taxes | 787 | 4,163 | 2,155 | ||||||||
Fly Leasing Limited [Member] | |||||||||||
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net income | 225,877 | 85,723 | 2,598 | ||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Equity earnings from subsidiaries | (219,720) | (90,175) | (35,208) | ||||||||
Equity (earnings) loss from unconsolidated subsidiary | (2,717) | 54 | (496) | ||||||||
Deferred income taxes | (3,793) | (673) | 1,852 | ||||||||
Amortization of debt discount and other | 1,742 | 1,742 | 1,931 | ||||||||
Loss on modification and extinguishment of debt | 0 | 0 | 19,655 | ||||||||
Distributions from unconsolidated subsidiary | 2,727 | 2,131 | 0 | ||||||||
Changes in operating assets and liabilities [Abstract] | |||||||||||
Receivable from subsidiaries | 240,470 | (104,303) | 6,144 | ||||||||
Other assets | (2,305) | (709) | (1,121) | ||||||||
Payable to related parties | 94 | 506 | (683) | ||||||||
Accrued and other liabilities | 3,605 | (477) | (9,478) | ||||||||
Net cash flows provided by operating activities | 245,980 | (106,181) | (14,806) | ||||||||
Cash Flows from Investing Activities [Abstract] | |||||||||||
Capital contributions to subsidiaries | (46,601) | (8,986) | 0 | ||||||||
Distributions received from subsidiaries | 0 | 25,792 | 0 | ||||||||
Distributions received from unconsolidated subsidiary | 2,639 | 3,103 | 0 | ||||||||
Advances of notes receivable to subsidiaries | (271,084) | (265,311) | (48,335) | ||||||||
Repayment of notes receivable from subsidiaries | 297,013 | 223,925 | 144,718 | ||||||||
Investment income from equity certificates | 1,603 | 0 | 0 | ||||||||
Investment in equity certificates | (10,481) | (5,747) | 0 | ||||||||
Net cash flows provided by (used in) investing activities | (26,911) | (27,224) | 96,383 | ||||||||
Cash Flows from Financing Activities [Abstract] | |||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 0 | 295,150 | ||||||||
Repayment of unsecured borrowings | 0 | 0 | (375,000) | ||||||||
Debt modification and extinguishment costs | 0 | 0 | (16,287) | ||||||||
Debt issuance costs | 0 | 0 | (917) | ||||||||
Shares issued | 0 | 19,624 | 0 | ||||||||
Shares repurchased | (32,871) | 0 | (57,286) | ||||||||
Net cash flows (used in) provided by financing activities | (32,871) | 19,624 | (154,340) | ||||||||
Net increase (decrease) in cash and cash equivalents | 186,198 | (113,781) | (72,763) | ||||||||
Cash and cash equivalents at beginning of year | $ 43,233 | $ 157,014 | 43,233 | 157,014 | 229,777 | ||||||
Cash and cash equivalents at end of year | $ 229,431 | $ 43,233 | 229,431 | 43,233 | 157,014 | ||||||
Cash paid during the period for [Abstract] | |||||||||||
Interest | 36,469 | 36,425 | 41,883 | ||||||||
Taxes | 0 | 0 | 0 | ||||||||
Noncash Investing Activities [Abstract] | |||||||||||
Capital contribution to subsidiaries | 142,246 | 7 | 109,391 | ||||||||
Distributions from subsidiaries | 213,312 | 3,386 | 76,451 | ||||||||
Intercompany sale of subsidiaries | $ 0 | $ 39,605 | $ 0 |