Document_and_Entity_Informatio
Document and Entity Information | 12 Months Ended |
Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Fly Leasing Ltd |
Entity Central Index Key | 1407298 |
Document Type | 20-F |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Document Fiscal Year Focus | 2014 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 41,432,998 |
Manager Shares Outstanding | 100 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $337,560 | $404,472 |
Restricted cash and cash equivalents | 139,139 | 174,829 |
Rent receivables | 4,887 | 2,922 |
Investment in unconsolidated subsidiary | 4,002 | 8,179 |
Flight equipment held for operating leases, net | 3,705,407 | 3,034,912 |
Fair market value of derivative assets | 2,067 | 7,395 |
Other assets, net | 31,608 | 39,650 |
Total assets | 4,224,670 | 3,672,359 |
Liabilities | ||
Accounts payable and accrued liabilities | 18,431 | 16,592 |
Rentals received in advance | 19,751 | 17,422 |
Payable to related parties | 2,772 | 3,756 |
Security deposits | 64,058 | 52,837 |
Maintenance payment liability | 254,514 | 233,811 |
Unsecured borrowings, net | 689,452 | 291,567 |
Secured borrowings, net | 2,335,328 | 2,254,705 |
Deferred tax liability, net | 16,289 | 7,746 |
Fair market value of derivative liabilities | 23,311 | 24,577 |
Other liabilities | 41,890 | 20,523 |
Total liabilities | 3,465,796 | 2,923,536 |
Shareholders' equity | ||
Common shares, $0.001 par value; 499,999,900 shares authorized; 41,306,338 and 28,040,305 shares issued and outstanding at December 31, 2014 and 2013, respectively | 41 | 41 |
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | ||
Additional paid-in capital | 658,522 | 658,492 |
Retained earnings | 117,402 | 104,143 |
Accumulated other comprehensive loss, net | -17,091 | -13,853 |
Total shareholders' equity | 758,874 | 748,823 |
Total liabilities and shareholders' equity | $4,224,670 | $3,672,359 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Consolidated Balance Sheets [Abstract] | ||
Common shares, par value | $0.00 | $0.00 |
Common shares, shares authorized | 499,999,900 | 499,999,900 |
Common shares, shares issued | 41,432,998 | 41,306,338 |
Common shares, shares outstanding | 41,432,998 | 41,306,338 |
Manager shares, par value | $0.00 | $0.00 |
Manager shares, shares authorized | 100 | 100 |
Manager shares, shares issued | 100 | 100 |
Manager shares, shares outstanding | 100 | 100 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||
Operating lease revenue | $404,668 | $359,409 | $376,437 |
Equity earnings from unconsolidated subsidiaries | 2,456 | 1,871 | 9,383 |
Gain on sale of aircraft | 18,878 | 6,277 | 8,360 |
Gain on sale of investment in unconsolidated subsidiary | 36,882 | ||
Interest and other income | 662 | 1,930 | 1,634 |
Total revenues | 426,664 | 369,487 | 432,696 |
Expenses | |||
Depreciation | 175,547 | 146,400 | 136,633 |
Aircraft impairment | 8,825 | 11,382 | |
Interest expense | 142,519 | 120,399 | 142,491 |
Selling, general and administrative | 41,148 | 37,418 | 40,192 |
Ineffective, dedesignated and terminated derivatives | 72 | -1,263 | 31,871 |
Net (gain) loss on extinguishment of debt | -3,922 | -15,881 | 7,628 |
Maintenance and other costs | 6,960 | 15,454 | 10,968 |
Total expenses | 362,324 | 311,352 | 381,165 |
Net income before provision for income taxes | 64,340 | 58,135 | 51,531 |
Provision for income taxes | 8,263 | 5,659 | 3,862 |
Net income | $56,077 | $52,476 | $47,669 |
Weighted average number of shares: | |||
Basic | 41,405,211 | 34,129,880 | 25,792,932 |
Diluted | 41,527,584 | 34,243,456 | 25,961,605 |
Earnings per share: | |||
Basic | $1.32 | $1.51 | $1.81 |
Diluted | $1.32 | $1.50 | $1.80 |
Dividends declared and paid per share | $1 | $0.88 | $0.84 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Consolidated Statements of Comprehensive Income [Abstract] | ||||||
Net income | $56,077 | $52,476 | $47,669 | |||
Other comprehensive income, net of tax | ||||||
Change in fair value of derivatives, net of deferred tax (1) | -3,238 | [1],[2] | 22,093 | [1],[2] | 9,075 | [1],[2] |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, net of deferred tax | 27,479 | [3] | ||||
Reclassification from other comprehensive income into earnings, net of deferred tax | -1,302 | [4] | -290 | [4] | ||
Comprehensive income | $52,839 | $73,267 | $83,933 | |||
[1] | Deferred tax benefit was $0.6 million for the year ended December 31, 2014. Deferred tax expense was $3.5 million and $1.4 million for the years ended December 31, 2013 and 2012, respectively. | |||||
[2] | See Note 8 to Notes to Consolidated Financial Statements. | |||||
[3] | Deferred tax expense was $3.9 million for the year ended DecemberB 31, 2012. | |||||
[4] | Deferred tax benefit was $0.2 million and $41,000 for the years ended December 31, 2013 and 2012, respectively. |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Change in fair value of derivatives, deferred tax expense (benefit) | $3,486,000 | $1,456,000 |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | 3,926,000 | |
Reclassification from other comprehensive income into earnings, deferred tax benefit | $186,000 | $41,000 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Manager Shares [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | ||
In Thousands, except Share data | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||
Beginning balance at Dec. 31, 2011 | $26 | $455,186 | $57,982 | ($70,161) | $443,033 | |||
Beginning balance, shares at Dec. 31, 2011 | 100 | 25,685,527 | ||||||
Dividends to shareholders | -21,629 | -21,629 | ||||||
Dividend equivalents | -884 | -884 | ||||||
Shares issued in connection with vested share grants, shares | 163,718 | |||||||
New shares issued, value | 2 | 23,912 | 23,914 | |||||
New shares issued, shares | 2,191,060 | |||||||
Share-based compensation | 3,635 | 3,635 | ||||||
Net income | 47,669 | 47,669 | ||||||
Net change in the fair value of derivatives, net of deferred tax asset | [1] | 9,075 | 9,075 | [2] | ||||
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, net of deferred tax | 27,479 | 27,479 | [3] | |||||
Reclassification from other comprehensive income into earnings, net of deferred tax | -290 | -290 | [4] | |||||
Ending balance at Dec. 31, 2012 | 28 | 482,733 | 83,138 | -33,897 | 532,002 | |||
Ending balance, shares at Dec. 31, 2012 | 100 | 28,040,305 | ||||||
Dividends to shareholders | -30,531 | -30,531 | ||||||
Dividend equivalents | -940 | -940 | ||||||
Shares repurchased, shares | 0 | |||||||
Shares issued in connection with vested share grants, shares | 122,534 | |||||||
New shares issued, value | 13 | 172,582 | 172,595 | |||||
New shares issued, shares | 13,142,856 | |||||||
Shares issued in connection with SARs exercised, shares | 643 | |||||||
Share-based compensation | 3,177 | 3,177 | ||||||
Derivative instruments terminated in connection with aircraft sale , net of defered tax asset | -747 | -747 | ||||||
Net income | 52,476 | 52,476 | ||||||
Net change in the fair value of derivatives, net of deferred tax asset | [1] | 22,093 | 22,093 | [2] | ||||
Reclassification from other comprehensive income into earnings, net of deferred tax | -1,302 | -1,302 | [4] | |||||
Ending balance at Dec. 31, 2013 | 41 | 658,492 | 104,143 | -13,853 | 748,823 | |||
Ending balance, shares at Dec. 31, 2013 | 100 | 41,306,338 | ||||||
Dividends to shareholders | -41,392 | -41,392 | ||||||
Dividend equivalents | -1,426 | -1,426 | ||||||
Shares repurchased, shares | 0 | |||||||
Shares issued in connection with vested share grants, shares | 119,666 | |||||||
Shares issued in connection with SARs exercised, shares | 6,994 | |||||||
Share-based compensation | 30 | 30 | ||||||
Net income | 56,077 | 56,077 | ||||||
Net change in the fair value of derivatives, net of deferred tax asset | [1] | -3,238 | -3,238 | [2] | ||||
Ending balance at Dec. 31, 2014 | $41 | $658,522 | $117,402 | ($17,091) | $758,874 | |||
Ending balance, shares at Dec. 31, 2014 | 100 | 41,432,998 | ||||||
[1] | See Note 8 to Notes to Consolidated Financial Statements. | |||||||
[2] | Deferred tax benefit was $0.6 million for the year ended December 31, 2014. Deferred tax expense was $3.5 million and $1.4 million for the years ended December 31, 2013 and 2012, respectively. | |||||||
[3] | Deferred tax expense was $3.9 million for the year ended DecemberB 31, 2012. | |||||||
[4] | Deferred tax benefit was $0.2 million and $41,000 for the years ended December 31, 2013 and 2012, respectively. |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statement of Shareholders' Equity [Abstract] | ||
Derivative instruments terminated in connection with aircraft sale, tax | $320,000 | |
Change in fair value of derivatives, deferred tax expense (benefit) | 3,486,000 | 1,456,000 |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | 3,926,000 | |
Reclassification from other comprehensive income into earnings, deferred tax benefit | 186,000 | 41,000 |
Underwriting commission | $1,086,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net income | $56,077 | $52,476 | $47,669 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Equity earnings from unconsolidated subsidiaries | -2,456 | -1,871 | -9,383 |
Gain on sale of aircraft | -18,878 | -6,277 | -8,360 |
Gain on sale of investment in unconsolidated subsidiary | -36,882 | ||
Depreciation | 175,547 | 146,400 | 136,633 |
Aircraft impairment | 8,825 | 11,382 | |
Amortization of debt issuance costs | 5,380 | 5,735 | 3,202 |
Amortization of lease incentives | 18,934 | 9,019 | 6,989 |
Amortization of lease discounts/premiums and other items | 9,977 | 8,173 | 6,281 |
Amortization of GAAM acquisition date fair market value adjustments | 6,260 | 12,602 | 23,611 |
Net (gain) loss on extinguishment of debt | -3,960 | -15,881 | 7,387 |
Share-based compensation | 30 | 3,177 | 3,635 |
Deferred income taxes | 6,169 | 6,195 | -8,180 |
Unrealized loss (gain) on derivative instruments | 38 | -1,263 | 31,871 |
Security deposits and maintenance payment liability relieved | -30,376 | -31,360 | -47,694 |
Security deposits and maintenance payment claims applied towards operating lease revenues | -2,596 | -7,671 | |
Distributions from unconsolidated subsidiaries | 5,501 | ||
Changes in operating assets and liabilities: | |||
Rent receivables | -4,767 | -4,982 | -1,070 |
Other assets | -1,589 | -1,969 | 5,644 |
Payable to related parties | -12,848 | -10,544 | -4,837 |
Accounts payable and accrued liabilities | 7,407 | -1,305 | 8,148 |
Rentals received in advance | 2,699 | 2,344 | -1,240 |
Other liabilities | 8,020 | 4,576 | 13,247 |
Net cash flows provided by operating activities | 227,165 | 181,474 | 180,382 |
Cash Flows from Investing Activities | |||
Distributions from unconsolidated subsidiaries | 1,132 | 6,269 | |
Proceeds from sale of investment in BBAM LP | 49,500 | ||
Purchase of additional aircraft | -915,450 | -632,944 | -50,803 |
Proceeds from sale of aircraft | 88,617 | 48,539 | 67,740 |
Payment for aircraft improvement | -9,841 | ||
Lessor contribution to maintenance | -5,017 | -24,185 | -16,626 |
Net cash flows provided by (used in) investing activities | -840,559 | -608,590 | 56,080 |
Cash Flows from Financing Activities | |||
Restricted cash and cash equivalents | 35,690 | -39,731 | 160,947 |
Security deposits received | 18,134 | 13,910 | 9,398 |
Security deposits returned | -4,728 | -7,271 | -4,257 |
Maintenance payment liability receipts | 85,172 | 56,968 | 57,892 |
Maintenance payment liability disbursements | -45,412 | -16,612 | -28,150 |
Debt extinguishment costs | -3,856 | ||
Proceeds for unsecured borrowings | 396,563 | 291,389 | |
Proceeds from secured borrowings | 298,658 | 587,083 | 459,200 |
Proceeds from Term Loan upsizing | 101,892 | ||
Debt issuance costs | -1,803 | -11,825 | -16,483 |
Repayment of secured borrowings | -192,974 | -444,607 | -847,607 |
Proceeds from sale of notes payable | 87,282 | ||
Proceeds from (payment for) termination of interest rate swap contract | -35,066 | ||
Proceeds from issuance of shares, net of fees paid | 172,595 | 23,914 | |
Dividends | -41,392 | -30,531 | -21,629 |
Dividend equivalents | -1,426 | -940 | -884 |
Net cash flows proved by (used in) financing activities | 546,482 | 668,464 | -155,443 |
Net (decrease) increase in cash | -66,912 | 241,348 | 81,019 |
Cash at beginning of period | 404,472 | 163,124 | 82,105 |
Cash at end of period | 337,560 | 404,472 | 163,124 |
Cash paid during the period for: | |||
Interest | 119,745 | 97,451 | 118,672 |
Taxes | 188 | 84 | 2,057 |
Noncash Activities: | |||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 1,938 | 1,414 | 1,288 |
Other liabilities applied to maintenance payment liability and rent receivables | 979 | ||
Maintenance payment liability applied to rent receivables and rentals received in advance | 4,446 | 185 | |
Withholding taxes netted against distributions received from BBAM LP | 1,847 | ||
Security deposits and maintenance payment liability assumed | 16,559 | 1,774 | 9,562 |
Other liabilities applied to purchase of aircraft | 6,885 | ||
Rent receivable applied to purchase of aircraft | 1,567 | ||
Deposits applied to purchase of aircraft | 991 | ||
Security deposits and maintenance payment liability applied | 8,678 | 2,170 | |
Refundable deposits applied to sale of aircraft | 3,376 | ||
Rent receivable applied to sale of aircraft | 425 | ||
Secured borrowings assumed by buyer | 38,500 | ||
Derivative liabilities assumed by buyer | $5,000 |
Organization
Organization | 12 Months Ended |
Dec. 31, 2014 | |
Organization [Abstract] | |
ORGANIZATION | 1. ORGANIZATION |
Fly Leasing Limited (the “Company” or “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. The Company was formed to acquire, finance, lease and sell commercial jet aircraft directly or indirectly through its subsidiaries. | |
Although the Company is organized under the laws of Bermuda, it is a resident of Ireland for tax purposes and is subject to Irish corporation tax on its income in the same way, and to the same extent, as if the Company were organized under the laws of Ireland. | |
In accordance with the Company’s amended and restated bye-laws, Fly issued 100 shares (“Manager Shares”) with a par value of $0.001 to Fly Leasing Management Co. Limited (the “Manager”) for no consideration. Subject to the provisions of the Company’s amended and restated bye-laws, the Manager Shares have the right to appoint the nearest whole number of directors to the Company which is not more than 3/7th of the number of directors comprising the board of directors. The Manager Shares are not entitled to receive any dividends, are not convertible into common shares and, except as provided for in the Company’s amended and restated bye-laws, have no voting rights. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
BASIS OF PREPARATION | |
Fly is a holding company that conducts its business through its subsidiaries. The Company directly or indirectly owns all of the common shares of its consolidated subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Fly and all of its subsidiaries. In instances where it is the primary beneficiary, Fly will consolidate a Variable Interest Entity (“VIE”). All intercompany transactions and balances have been eliminated. The consolidated financial statements are stated in U.S. Dollars, which is the principal operating currency of the Company. | |
The Company has one operating and reportable segment which is aircraft leasing. | |
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, accruals 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 and market risks. Credit risk addresses a lessee’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects the change in the value of derivatives and credit facilities due to changes in interest rate spreads or other market factors, including the value of collateral underlying the Company’s credit facilities. | |
Other types of risk encountered by the Company include the following: | |
•The success of the Company is dependent on the performance of the commercial aviation industry. A downturn in the industry could adversely impact the 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. | |
•The Company will require access to the debt and equity markets to refinance its outstanding indebtedness and to grow its business through the acquisition of additional aircraft. | |
•The Company relies and is dependent upon an external servicer to manage its business and service its aircraft portfolio. | |
CASH AND CASH EQUIVALENTS | |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | |
RESTRICTED CASH AND CASH EQUIVALENTS | |
The Company’s restricted cash and cash equivalents consist primarily of (i) security deposits and certain maintenance payments received from lessees under the terms of various lease agreements, (ii) a portion of rents collected which may be required to be held as cash collateral under certain of the Company’s debt facilities and (iii) other cash, which may be subject to withdrawal restrictions pursuant to the Company’s credit agreements as further described in Note 7. | |
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, 2014 and 2013, the Company had no allowance for doubtful accounts. The Company had two lessees on non-accrual status during the years ended December 31, 2014 and 2013, and recognized revenue from these lessees when cash was received. | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES | |
Fly has a 57.4% interest in Fly-Z/C Aircraft Holdings LP (“Fly-Z/C LP”). On December 28, 2012, Fly sold its 15.0% interest in BBAM Limited Partnership (“BBAM LP”). | |
Fly accounts for its interest in unconsolidated subsidiaries using the equity method as the Company does not control the entities. 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 subsidiaries’ undistributed earnings and losses, and distributions of dividends and capital. | |
The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiaries, or whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification. | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE | |
Flight equipment held for operating lease are recorded at cost and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of 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. | |
•Planned dispositions of flight equipment prior to the end of its estimated useful life and at a residual value different from that used for newly acquired aircraft. | |
Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, at each reporting period. | |
Major aircraft improvements to be performed by the Company pursuant to any lease agreement are accounted for as lease incentives and are amortized against revenue over the term of the lease, assuming no lease renewals. Lessee specific modifications to the aircraft are capitalized and amortized against revenue over the term of the lease. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination. | |
Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the remaining life of the flight equipment. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. | |
At the time of an aircraft acquisition, the Company evaluates whether the lease acquired with the aircraft is at fair market value by comparing the contractual lease rates to the range of current lease rates of like aircraft. A lease premium is recognized when it is determined that the acquired lease’s terms are above market value; lease discounts are recognized when it is determined that the acquired lease’s terms are below fair market value. Lease discounts are recorded in other liabilities and accreted as additional rental revenue on a straight-line basis over the lease term. Lease premiums are recorded in other assets and amortized against rental revenue on a straight-line basis over the lease term. | |
IMPAIRMENT OF FLIGHT EQUIPMENT | |
The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company’s evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft, adverse changes in market conditions for specific aircraft types, third party appraisals of specific aircraft, published values for similar aircraft, any occurrences of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of our aircraft. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value. See Note 16 – Fair Value Measurements. | |
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. | |
The preparation of these impairment analyses requires 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 date in the future, estimated downtime between re-leasing events and the amount of re-leasing costs. For the year ended December 31, 2014, the Company did not recognize any impairment losses. For the year ended December 31, 2013, the Company recognized an impairment loss of $8.8 million in respect of an Airbus A319-100 aircraft manufactured in 2000. This aircraft was sold by the Company during the third quarter of 2014. For the year ended December 31, 2012, the Company recognized an impairment loss of $11.4 million in respect of two Boeing 737-500 aircraft manufactured in 1992 and one Airbus A320-200 aircraft manufactured in 2002. These three aircraft were sold during the first quarter of 2013. | |
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 hedge accounting provisions, changes in the fair value of the item being hedged are recognized into earnings in the same period and in the same income statement line as the change in the fair value of the derivative instrument. On the date that the Company enters into a derivative contract, the Company formally documents all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for undertaking each hedge transaction. | |
Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability. Changes in the fair value of a derivative that is designated and qualifies as an effective cash flow hedge are recorded in accumulated other comprehensive income, net of tax, until earnings are affected by the variability of cash flows of the hedged item. Any derivative gains and losses that are not effective in hedging the variability of expected cash flows of the hedged item or that do not qualify for hedge accounting treatment are recognized directly into income. | |
At the hedge’s inception and at least quarterly thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair market value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction. | |
OTHER ASSETS | |
Other assets consist primarily of debt issuance costs, unamortized lease premiums, initial direct lease costs and other miscellaneous receivables. The Company capitalizes costs incurred in arranging financing as debt issuance costs. Debt issuance costs are amortized to interest expense using the effective interest method over the terms of the credit facilities. Lease premiums are amortized into operating lease income over the lease term. | |
SECURITY DEPOSITS | |
In the normal course of leasing aircraft to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease. | |
MAINTENANCE PAYMENT LIABILITY | |
The Company’s flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly’s operating leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration requirements 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. 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. | |
In some leases, 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. Such payments made by the Company for minor maintenance, repairs and re-leasing of aircraft are expensed as incurred. | |
Maintenance payment liability balances at the end of a lease or any amount received as part of a redelivery adjustment are recorded as lease revenue at lease termination, including early termination upon a default. 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, they are deferred and recognized in the period in which the recognition criteria are met. Rental income from aircraft is recognized on a straight-line basis over the initial term of the respective lease. The operating lease agreements generally do not provide for purchase options, however, the leases may allow the lessee the option to extend the lease for an additional term. Contingent rents are recognized as revenue when the contingency is resolved. Revenue is not recognized when collection is not reasonably assured. | |
SHARE-BASED COMPENSATION | |
The Company has a 2010 Omnibus Incentive Plan (“2010 Plan”) which permitted 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. In May 2012, the Company made an additional aggregate grant of 300,000 SARs and RSUs to certain employees of BBAM LP, who provide services to the Company pursuant to management and servicing agreements. As of each of December 31, 2014 and 2013, the Company had made grants aggregating 1,500,000 under the 2010 Plan. There are no shares remaining available for grants under the 2010 Plan. | |
In accordance with GAAP, compensation expense associated with grants to employees are valued at the grant date and amortized on a straight-line basis over the service period. Grants to non-employees are initially measured at grant date, and then re-measured at each interim reporting period until the awards are vested. Determining the appropriate fair value model and calculation of the fair value of stock-based awards requires judgment, including estimating stock price volatility, forfeitures and expected grant life. | |
TAXES | |
The Company provides for income taxes by tax jurisdiction (see Note 10). 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 which management ultimately expects to be more-likely-than-not realized. | |
The Company applies a recognition threshold of more-likely-than-not to be sustained in the examination of tax uncertainty in income taxes. Measurement of the tax uncertainty occurs if the recognition threshold has been met. The Company has elected to classify any interest on unpaid income taxes and penalties as a component of the provision for income taxes. No interest on unpaid income taxes and penalties were incurred during the years ended December 31, 2014, 2013 and 2012. | |
NEW ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company adopted the provisions of ASU 2013-11 in 2014. The adoption of the standard did not have a material effect on the Company’s consolidated financial condition, result of operations or cash flows. | |
In April 2014, FASB issued ASU 2018-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), an accounting standard update that changed the criteria for classifying and reporting discontinued operations while enhancing disclosures. Under the new guidance, only disposals of a component of an entity, or a group of components of an entity, representing a strategic shift in operations should be presented as discontinued operations. Such a strategic shift should have, or will have, a major effect on the organization’s operations and financial results when the component or group of components meets the criteria to be classified as held for sale or when the component or group of components is disposed of by sale or other than by sale. In addition, the new guidance requires additional disclosures about discontinued operations and the disposal of an individually significant component of an entity that does not meet the criteria for discontinued operations. The Company adopted the standard prospectively commencing in 2014. The Company does not expect its aircraft dispositions to qualify as discontinued operations. | |
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), their final standard on revenue from contracts with customers. The guidance specifically notes that lease contracts with customers are a scope exception. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. ASU 2014-09 is effective for annual reporting periods (including interim periods), beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt the guidance effective January 1, 2017. The Company anticipates that the adoption of the standard will not have a material effect on i consolidated financial condition, result of operations or cash flows. | |
In August 2014, FASB issued ASU 2014-15, update to Accounting Standards Codification (ASC) subtopic 250-40, Presentation of Financial Statements-Going Concern. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principals that are currently in the U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term “substantial doubt”, (2) require an evaluation every reporting period including interim periods, (3) provide principals for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016, and early adoption is permitted. The Company will adopt the guidance effective January 1, 2017. The Company is currently assessing the impact on its consolidated financial statements and notes to its consolidated financial statements. | |
Flight_Equipment_Held_for_Oper
Flight Equipment Held for Operating Leases | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Flight Equipment Held for Operating Lease [Abstract] | ||||||||||||||||||||
FLIGHT EQUIPMENT HELD FOR OPERATING LEASES | 3. FLIGHT EQUIPMENT HELD FOR OPERATING LEASE | |||||||||||||||||||
As of December 31, 2014, the Company had 127 aircraft held for operating lease. Of these aircraft, 124 were on lease to 64 lessees in 36 countries, and three aircraft were off-lease. At December 31, 2013, the Company had 113 aircraft held for operating lease. Of these aircraft, 112 were on lease to 62 lessees in 34 countries, and one aircraft was off-lease. | ||||||||||||||||||||
During the year ended December 31, 2014, the Company purchased 22 aircraft, which increased flight equipment held for operating lease by $951.5 million. During the year ended December 31, 2013, the Company purchased 14 aircraft, which increased flight equipment held for operating lease by $642.2 million. | ||||||||||||||||||||
During the year ended December 31, 2014, the Company sold eight aircraft and recognized a pre-tax gain on sale totaling $18.9 million. During the year ended December 31, 2013, the Company sold ten aircraft and recognized a pre-tax gain on sale totaling $6.3 million. The buyer of six of the aircraft sold in 2013 also assumed the underlying debt financing and derivative instruments associated with the aircraft. | ||||||||||||||||||||
On November 8, 2014, the Company entered into sale agreements for eight aircraft for an aggregate base sales price of $87.5 million. The sales are anticipated to be consummated in 2015 with the aircraft transferred to the buyer upon expiration of the underlying leases. The base sales price is subject to adjustments based on the maintenance condition of the aircraft. In connection with the transaction, the Company adjusted the holding period and residual value of these aircraft which resulted in additional depreciation expense of $2.4 million during the year ended December 31, 2014. | ||||||||||||||||||||
The Company did not recognize any impairment loss for the year ended December 31, 2014. For the year ended December 31, 2013, the Company recognized an impairment loss of $8.8 million in respect of an Airbus A319-100 aircraft manufactured in 2000. This aircraft was sold during the third quarter of 2014. For the year ended December 31, 2012, the Company recognized an impairment loss of $11.4 million in respect of two Boeing 737-500 aircraft manufactured in 1992 and one Airbus A320-200 aircraft manufactured in 2002. These three aircraft were sold during the first quarter of 2013. | ||||||||||||||||||||
Flight equipment held for operating lease consists of the following: | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Cost | $ | 4,428,783 | $ | 3,597,330 | ||||||||||||||||
Accumulated depreciation | -723,376 | -562,418 | ||||||||||||||||||
Flight equipment held for operating lease, net | 3,705,407 | 3,034,912 | ||||||||||||||||||
The Company capitalized $7.0 million and $17.2 million, respectively, of major maintenance expenditures for the years ended December 31, 2014 and 2013. These amounts have been included in flight equipment held for operating lease, net. | ||||||||||||||||||||
The classification of the net book value of flight equipment held for operating lease, net and operating lease revenues by geographic region in the tables and discussion below is based on the principal operating location of the aircraft lessee. | ||||||||||||||||||||
The distribution of the net book value of flight equipment held for operating lease, net by geographic region is as follows: | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Europe: | ||||||||||||||||||||
United Kingdom | $ | 397,761 | 11 | % | $ | 347,627 | 11 | % | ||||||||||||
Turkey | 296,574 | 8 | % | 191,527 | 6 | % | ||||||||||||||
Other | 653,469 | 17 | % | 612,137 | 20 | % | ||||||||||||||
Europe — Total | 1,347,804 | 36 | % | 1,151,291 | 37 | % | ||||||||||||||
Asia and South Pacific: | ||||||||||||||||||||
Philippines | 450,090 | 12 | % | — | — | |||||||||||||||
China | 301,137 | 8 | % | 353,868 | 12 | % | ||||||||||||||
India | 150,964 | 4 | % | 120,771 | 4 | % | ||||||||||||||
Other | 459,631 | 13 | % | 394,627 | 13 | % | ||||||||||||||
Asia and South Pacific — Total | 1,361,822 | 37 | % | 869,266 | 29 | % | ||||||||||||||
Mexico, South and Central America: | ||||||||||||||||||||
Chile | 247,165 | 7 | % | 255,832 | 9 | % | ||||||||||||||
Other | 185,220 | 5 | % | 226,336 | 7 | % | ||||||||||||||
Mexico, South and Central America — Total | 432,385 | 12 | % | 482,168 | 16 | % | ||||||||||||||
North America: | ||||||||||||||||||||
United States | 305,999 | 8 | % | 291,724 | 10 | % | ||||||||||||||
Other | 60,780 | 2 | % | 33,162 | 1 | % | ||||||||||||||
North America — Total | 366,779 | 10 | % | 324,886 | 11 | % | ||||||||||||||
Middle East and Africa — Total | 112,001 | 3 | % | 189,682 | 6 | % | ||||||||||||||
Off-Lease — Total | 84,616 | 2 | % | 17,619 | 1 | % | ||||||||||||||
Total flight equipment held for operating lease, net | $ | 3,705,407 | 100 | % | $ | 3,034,912 | 100 | % | ||||||||||||
Two aircraft on lease to a Russian lessee are subject to an arrest order in connection with legal proceedings involving representatives of the lessee in the Solntsevsky District Court of Moscow. The respective leases for the aircraft have recently been terminated and the Company has initiated legal proceedings in the United Kingdom for repossession of the aircraft. One aircraft on lease to an Indian lessee continues to be flown by such lessee after the termination of the related lease, pending resolution of related legal proceedings. | ||||||||||||||||||||
The distribution of operating lease revenue by geographic region for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Europe: | ||||||||||||||||||||
United Kingdom | $ | 46,281 | 11 | % | $ | 48,507 | 13 | % | $ | 45,916 | 12 | % | ||||||||
Turkey | 27,069 | 7 | % | 14,703 | 4 | % | 12,319 | 3 | % | |||||||||||
Other | 82,677 | 21 | % | 89,362 | 26 | % | 112,093 | 30 | % | |||||||||||
Europe — Total | 156,027 | 39 | % | 152,572 | 43 | % | 170,328 | 45 | % | |||||||||||
Asia and South Pacific: | ||||||||||||||||||||
Philippines | 12,947 | 3 | % | — | — | — | — | |||||||||||||
China | 47,049 | 12 | % | 41,332 | 12 | % | 36,918 | 10 | % | |||||||||||
India | 32,675 | 8 | % | 21,894 | 6 | % | 39,312 | 10 | % | |||||||||||
Other | 43,959 | 11 | % | 32,841 | 9 | % | 34,506 | 10 | % | |||||||||||
Asia and South Pacific — Total | 136,630 | 34 | % | 96,067 | 27 | % | 110,736 | 30 | % | |||||||||||
Mexico, South and Central America: | ||||||||||||||||||||
Chile | 28,116 | 7 | % | 10,055 | 3 | % | — | — | ||||||||||||
Other | 21,733 | 5 | % | 38,034 | 10 | % | 31,473 | 8 | % | |||||||||||
Mexico, South and Central America — Total | 49,849 | 12 | % | 48,089 | 13 | % | 31,473 | 8 | % | |||||||||||
North America: | ||||||||||||||||||||
United States | 41,531 | 10 | % | 40,482 | 11 | % | 41,311 | 11 | % | |||||||||||
Other | 3,429 | 1 | % | 3,891 | 1 | % | 3,891 | 1 | % | |||||||||||
North America — Total | 44,960 | 11 | % | 44,373 | 12 | % | 45,202 | 12 | % | |||||||||||
Middle East and Africa — Total | 17,202 | 4 | % | 18,308 | 5 | % | 18,698 | 5 | % | |||||||||||
Total Operating Lease Revenue | $ | 404,668 | 100 | % | $ | 359,409 | 100 | % | $ | 376,437 | 100 | % | ||||||||
The Company had no customer that accounted for 10% or more of total operating lease revenue for any of the years ended December 31, 2014, 2013 and 2012. During the years ended December 31, 2014, 2013 and 2012, the Company had two lessees on non-accrual status due to concerns about each lessee’s financial condition and only recognized revenue as cash was received. The Company had one lessee on non-accrual status as of December 31, 2014. During the years ended December 31, 2014, 2013 and 2012, the Company recognized revenue of $11.3 million, $3.3 million and $8.0 million, respectively, from these lessees. | ||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the Company recognized end of lease revenues totaling $39.8 million, $47.6 million and $49.8 million, respectively. | ||||||||||||||||||||
The amortization of lease premiums, net of lease discounts which have been included as a component of operating lease revenue, was $3.0 million, $3.4 million and $7.5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||
As of December 31, 2014 and 2013, the weighted average remaining lease term of the Company’s aircraft held for operating lease was 5.3 and 4.3 years, respectively. | ||||||||||||||||||||
Presented below are the contracted future minimum rental payments due under non-cancellable operating leases, as of December 31, 2014. For leases that have floating rental rates based on either the three or six-month LIBOR, the future minimum rental payments due assume that the rental payment due as of December 31, 2014 is held constant for the duration of the lease. | ||||||||||||||||||||
Year ending December 31, | (Dollars in thousands) | |||||||||||||||||||
2015 | $ | 395,801 | ||||||||||||||||||
2016 | 339,865 | |||||||||||||||||||
2017 | 306,923 | |||||||||||||||||||
2018 | 244,844 | |||||||||||||||||||
2019 | 180,155 | |||||||||||||||||||
Thereafter | 612,212 | |||||||||||||||||||
Future minimum rental payments under operating leases | $ | 2,079,800 | ||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, amortization of lease incentives recorded as a reduction of operating lease revenue totaled $18.9 million, $9.0 million and $7.0 million, respectively. At December 31, 2014, lease incentive amortization for the next five years and thereafter is as follows: | ||||||||||||||||||||
Year ending December 31, | (Dollars in thousands) | |||||||||||||||||||
2015 | $ | 19,548 | ||||||||||||||||||
2016 | 20,684 | |||||||||||||||||||
2017 | 19,630 | |||||||||||||||||||
2018 | 14,903 | |||||||||||||||||||
2019 | 6,851 | |||||||||||||||||||
Thereafter | 4,031 | |||||||||||||||||||
Future amortization of lease incentives | $ | 85,647 | ||||||||||||||||||
Investment_in_Unconsolidated_S
Investment in Unconsolidated Subsidiaries | 12 Months Ended |
Dec. 31, 2014 | |
Investment in Unconsolidated Subsidiaries [Abstract] | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES | 4. INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES |
Investment in BBAM LP | |
On April 29, 2010, the Company through its wholly-owned subsidiary, Fly-BBAM Holdings, Ltd. (“Fly-BBAM”), purchased a 15% interest in BBAM LP, a newly formed, privately-held aircraft leasing and management business for $8.75 million. BBAM LP provides management and administrative services to Fly, including servicing of its aircraft portfolio. Summit Aviation Partners LLC (“Summit”) owned the remaining 85% interest in BBAM LP. | |
On December 28, 2012, the Company sold its 15% interest in BBAM LP for $49.5 million and recognized a gain of $36.9 million. In June 2013, the Company received an additional $1.0 million of proceeds as a result of working capital adjustments pursuant to the purchase and sale agreement. | |
For the year ended December 31, 2012, the Company recognized $7.8 million in equity earnings from its investment in BBAM LP. The Company amortized the difference between the cost of its initial investment and its share of underlying equity in the net assets of BBAM LP against its equity earnings from BBAM LP. The Company received distributions totaling $6.0 million during the year ended December 31, 2012. | |
Investment in Fly-Z/C LP | |
The Company has a 57.4% limited partnership interest in Fly-Z/C LP. Summit has a 10.2% interest in the joint venture and the limited partners appointed a subsidiary of BBAM LP as the general partner of the joint venture. For the years ended December 31, 2014, 2013 and 2012, the Company recognized $2.5 million, $1.9 million and $1.6 million, respectively, in equity earnings from its investment in Fly-Z/C LP. The Company received distributions totaling $6.6 million during the year ended December 31, 2014. The Company did not receive any distributions during the year ended December 31, 2013. The Company received distributions totaling $0.5 million during the year ended December 31, 2012. | |
Other_Assets
Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Assets [Abstract] | |||||||||
OTHER ASSETS | 5. OTHER ASSETS | ||||||||
The principal components of the Company’s other assets are as follows: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(Dollars in thousands) | |||||||||
Loan issuance costs, net | $ | 21,928 | $ | 25,593 | |||||
Lease costs, net | 3,289 | 2,288 | |||||||
Unamortized lease premiums | 1,861 | 4,949 | |||||||
Other assets | 4,530 | 6,820 | |||||||
Total other assets | $ | 31,608 | $ | 39,650 | |||||
For the years ended December 31, 2014, 2013 and 2012, the Company amortized $5.4 million, $5.1 million and $3.2 million, respectively, of loan issuance cost into interest expense. | |||||||||
Unsecured_Borrowings
Unsecured Borrowings | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Unsecured Borrowings [Abstract] | |||||||||
UNSECURED BORROWINGS | 6. UNSECURED BORROWINGS | ||||||||
Balance as of | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
Outstanding principal balance: | |||||||||
2020 Notes | $ | 375,000 | $ | 300,000 | |||||
2021 Notes | 325,000 | — | |||||||
Unamortized discount | -10,548 | -8,433 | |||||||
Unsecured borrowings, net | $ | 689,452 | $ | 291,567 | |||||
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. | |||||||||
Pursuant to the indenture governing the 2020 Notes, the Company is subject to restrictive covenants which relate to dividend payments, incurrence of debt, repurchases of common shares, investments, disposition of aircraft and transactions with affiliates. Certain of these covenants will be suspended if the 2020 Notes obtain an investment grade rating. | |||||||||
On October 3, 2014, the Company sold $75.0 million aggregate principal amount of the 2020 Notes (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 of 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. The Company received net cash proceeds of $396.6 million after deducting the underwriting discounts. The Company intends to use the net proceeds from the offerings for general corporate purposes, including the acquisition of aircraft. | |||||||||
The 2020 Notes and 2021 Notes are unsecured obligations of the Company and rank pari passu in right of payment with any existing and future senior indebtedness of the Company. The 2020 Notes have a maturity date of December 15, 2020 and the 2021 Notes have a maturity date of October 15, 2021. | |||||||||
Interest on the 2020 Notes is payable semi-annually on June 15 and December 15 of each year. As of December 31, 2014, accrued interest on the 2020 Notes totaled $1.1 million. Interest on the 2021 Notes is payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2015. As of December 31, 2014, accrued interest on the 2021 Notes totaled $5.1 million. | |||||||||
At any time prior to December 15, 2016, the Company may redeem up to 35% of the original principal amount of the 2020 Notes with the proceeds of certain equity offerings at a redemption price of 106.75% of the principal amount thereof, together with accrued and unpaid interest to, but not including, the date of redemption. On and after December 15, 2016, the Company may redeem the 2020 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date. | |||||||||
Redeemed during the 12-month period commencing on December 15 of the years set forth below: | Redemption Price | ||||||||
2016 | 105.063% | ||||||||
2017 | 103.375% | ||||||||
2018 | 101.688% | ||||||||
2019 and thereafter | 100.000% | ||||||||
At any time prior to December 15, 2016, the Company may also redeem all or a portion of the 2020 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. | |||||||||
At any time prior to October 15, 2017, the Company may redeem up to 35% of the original principal amount of the 2021 Notes with the proceeds of certain equity offerings at a redemption price of 106.375% of the principal amount thereof, together with accrued and unpaid interest to, but not including, the date of redemption. On and after October 15, 2017, 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. | |||||||||
\ | |||||||||
Redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | ||||||||
2017 | 104.781% | ||||||||
2018 | 103.188% | ||||||||
2019 | 101.594% | ||||||||
2020 and thereafter | 100.000% | ||||||||
At any time prior to October 15, 2017, the Company may also redeem all or a portion of the 2021 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. | |||||||||
Should the Company experience a change of control (as defined in the indenture), holders of the 2020 Notes and the 2021 Notes have the right to require the Company to repurchase all or any part of their 2020 Notes and 2021 Notes for payment in cash equal to 101% of the aggregate principal amount of the 2020 Notes and 2021 Notes repurchased plus accrued and unpaid interest. | |||||||||
A default in any of the aircraft owning entities in respect of obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder, would constitute an event of default. As of December 31, 2014, the Company was not in default under the indentures governing the 2020 Notes or the 2021 Notes. | |||||||||
Secured_Borrowings
Secured Borrowings | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Secured Borrowings [Abstract] | |||||||||||||||||
SECURED BORROWINGS | 7. SECURED BORROWINGS | ||||||||||||||||
The Company’s secured borrowings balance, net of unamortized debt discounts, as of December 31, 2014 is presented below: | |||||||||||||||||
Weighted average | |||||||||||||||||
Net carrying value as of | interest rate(1) as of | ||||||||||||||||
December 31, | December 31, | December 31, | December 31, | Maturity | |||||||||||||
2014 | 2013 | 2014 | 2013 | date | |||||||||||||
(in thousands) | |||||||||||||||||
Securitization Notes | $ | 532,035 | $ | 575,326 | 3.04 | % | 3.63 | % | Nov-33 | ||||||||
Nord LB Facility | 408,484 | 440,456 | 4.15 | % | 4.15 | % | Nov-18 | ||||||||||
CBA Facility | 113,208 | 159,802 | 4.63 | % | 4.91 | % | June 2018 – October 2020 | ||||||||||
Term Loan | 443,383 | 465,103 | 5.19 | % | 4.50 | % | Aug-19 | ||||||||||
Fly Acquisition II Facility | 121,589 | 126,766 | 4.15 | % | 4.16 | % | Jul-18 | ||||||||||
Other Aircraft Secured Borrowings | 716,629 | 487,252 | 3.89 | % | 4.71 | % | December 2015 – December 2025 | ||||||||||
Total | $ | 2,335,328 | $ | 2,254,705 | |||||||||||||
____________ | |||||||||||||||||
(1) Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. | |||||||||||||||||
The Company is subject to certain operating covenants under its loan agreements relating to the maintenance, registration and insurance of its aircraft. The Company is also required to maintain lease concentration limits, and is subject to limitations on the re-leasing and disposition of aircraft in certain of these loan agreements. In addition, in certain of these loan agreements, the Company may be subject to additional operating covenants relating to the operations of the borrower entity; restrictions on the acquisition or substitution of aircraft; restrictions on the modification of aircraft and capital expenditures; limits on the amount and type of guarantees that can be provided or other indebtedness that can be incurred; and restrictions on the Company’s ability to grant liens or other encumbrances on the aircraft. The Company’s failure to comply with any one of these covenants may trigger an event of default under the relevant loan or facility agreement. Certain of these loan agreements contain cross-default provisions that could be triggered by a default under another loan agreement. | |||||||||||||||||
Generally, events of default under the Company’s loan or facility agreements include, among other things: | |||||||||||||||||
· | Failure to pay interest or principal when due or within a prescribed period of time following its due date; | ||||||||||||||||
· | Failure to make certain other payments and such payments are not made within a prescribed period of time following written notice; | ||||||||||||||||
· | Failure to maintain required insurance levels; | ||||||||||||||||
· | Failure to comply with certain other covenants and such noncompliance continues for a specified period of time following written notice; and | ||||||||||||||||
· | Any of the aircraft owning or borrower entities become the subject of insolvency proceedings. | ||||||||||||||||
As of December 31, 2014, the Company was not in default under any of its secured borrowings. | |||||||||||||||||
Securitization Notes | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance: | |||||||||||||||||
Notes issued | $ | 546,465 | $ | 592,903 | |||||||||||||
Unamortized discount | -14,430 | -17,577 | |||||||||||||||
Notes payable, net | $ | 532,035 | $ | 575,326 | |||||||||||||
On October 2, 2007, B&B Air Funding issued $853.0 million of aircraft lease-backed Class G-1 notes (the “Notes”) at an offering price of 99.71282%. The Notes are direct obligations of B&B Air Funding and are not obligations of, or guaranteed by, Fly. Interest is payable monthly based on the current one-month LIBOR plus a spread of 0.77%, which includes an amount payable to Ambac Assurance Corporation, the provider of a financial guaranty insurance policy (the “Policy Provider”) that supports payment of interest and in certain circumstances, principal on the Notes. As of each of December 31, 2014 and 2013, accrued interest on the Notes totaled $0.2 million. | |||||||||||||||||
The Notes are secured by (i) first priority, perfected security interests in and pledges or assignments of equity ownership and beneficial interests in the subsidiaries of B&B Air Funding; (ii) interests in the leases of the aircraft they own; (iii) cash held by or for them; and (iv) rights under agreements with BBAM, the initial liquidity facility provider, hedge counterparties and the insurance policy provider. Rentals paid under leases and proceeds from the sale of aircraft are placed in the collections account and paid out according to the priority of payments set forth in the indenture. The Notes are also secured by a lien or similar interest in any of the aircraft B&B Air Funding currently owns that are registered in the United States or Ireland. B&B Air Funding may not encumber the aircraft it currently owns or incur additional indebtedness except as permitted under the securitization related documents. | |||||||||||||||||
In 2009, the Company repurchased through a wholly-owned subsidiary $169.4 million principal amount of the Notes. In 2011, the Company sold $40.8 million principal amount of these repurchased Notes. During the first quarter of 2012, the Company sold the remaining $106.7 million principal amount of Notes for $87.3 million. | |||||||||||||||||
Prior to August 2012, a portion of the proceeds received from the sale of any aircraft financed by the Notes was applied to repay the debt allocated to such aircraft. Thereafter, all cash collected, including sale proceeds from the aircraft financed by the Notes was applied to service the outstanding balance of the Notes, after the payment of certain expenses and other costs, including the fees to the Policy Provider, interest and interest rate swap payments in accordance with those agreements. In 2012, three aircraft were sold and the Company repaid debt of $38.8 million associated with these aircraft. The Company wrote-off loan costs and unamortized discounts of $1.5 million associated with the repaid debt. During the year ended December 31, 2013, two aircraft financed by the Notes were sold. In 2014 and 2013, the Company made total principal payments of $46.4 million and $67.5 million, respectively. | |||||||||||||||||
At December 31, 2014, 35 aircraft were financed by the Notes, six of which were subject to sale agreements which are expected to be consummated in 2015. The final maturity date of the Notes is November 14, 2033. | |||||||||||||||||
The Company may, on a payment date, redeem the Notes in whole or in part, at the outstanding principal amount, together with accrued and unpaid interest. | |||||||||||||||||
B&B Air Funding is subject to financial and operating covenants which relate to, among other things, its operations, disposition of aircraft, lease concentration limits, restrictions on the acquisition of additional aircraft, and restrictions on the modification of aircraft and capital expenditures. A breach of the covenants could result in the acceleration of the Notes and exercise of remedies available in relation to the collateral, including the sale of aircraft at public or private sale. | |||||||||||||||||
On April 29, 2010, the servicing agreement for B&B Air Funding was amended to include the following servicer termination events: | |||||||||||||||||
• Bankruptcy or insolvency of BBAM LP; | |||||||||||||||||
•BBAM LP ceases to own, directly or indirectly, at least 50% of the Servicer; | |||||||||||||||||
• Summit ceases to own, directly or indirectly, at least 33.33% of the partnership interests in BBAM LP; provided that a sale that results in such ownership being at a level below 33.33% shall not constitute a servicer termination event if the sale is to a publicly listed entity or other person with a net worth of at least $100 million; and | |||||||||||||||||
• 50% or more of the Servicer’s key finance and legal team or technical and marketing team cease to be employed by BBAM LP and are not replaced with employees with reasonably comparable experience within 90 days. | |||||||||||||||||
On October 24, 2014, the indenture governing the Notes was amended with the requisite consent of the noteholders. Among other things, the amended indenture provides B&B Air Funding with greater flexibility in managing its aircraft portfolio, facilitates future aircraft sales and expands the scope of information reported to holders of the Notes on a monthly basis. In connection with the amendment to the indenture, the servicing agreement for B&B Air Funding was amended to clarify the calculation of the sales fee payable to the servicer upon disposition of an aircraft, and to conform its insurance requirements and concentration limits to the same terms in the amended indenture. | |||||||||||||||||
In connection with the issuance of the Notes, B&B Air Funding entered into a revolving credit facility (“Note Liquidity Facility”) that provides additional liquidity of up to $60.0 million. Subject to the terms and conditions of the Note Liquidity Facility, advances may be drawn for the benefit of the Note holders to cover certain expenses of B&B Air Funding, including maintenance expenses, interest rate swap payments and interest on the Notes. Advances shall bear interest at one-month LIBOR plus a spread of 1.20%. A commitment fee of 0.40% per annum is due and payable on each payment date based on the unused portion of the Note Liquidity Facility. As of December 31, 2014 and 2013, B&B Air Funding had not drawn on the Note Liquidity Facility. | |||||||||||||||||
The financial guaranty insurance policy (the “Policy”) issued by the Policy Provider supports the payment of interest due on the Notes and the payment of the outstanding principal balance of the Notes on the final maturity date and, under certain circumstances, prior thereto. A downgrade of the Policy Provider’s credit rating or its failure to meet its obligations under the Policy will not have a direct impact on B&B Air Funding’s obligations or rights under the Notes. | |||||||||||||||||
B&B Air Acquisition Facility | |||||||||||||||||
In November 2007, B&B Air Acquisition entered into a credit facility that provided for aircraft financing (“B&B Air Acquisition Facility”). The facility was funded in two tranches, Tranche A and B. Tranche A was senior to Tranche B. Borrowings under the B&B Air Acquisition Facility incurred interest at a rate based on one-month LIBOR plus an applicable margin. The applicable margins for Tranche A and B were 1.50% per annum and 4.00% per annum, respectively. | |||||||||||||||||
On August 9, 2012, the B&B Air Acquisition Facility, which financed 16 aircraft at that time, was repaid with proceeds from a new Term Loan (see below) and approximately $122.5 million of the Company’s cash. | |||||||||||||||||
Nord LB Facility | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance | $ | 416,249 | $ | 452,371 | |||||||||||||
Unamortized debt discount | -7,765 | -11,915 | |||||||||||||||
Nord LB Facility balance, net | $ | 408,484 | $ | 440,456 | |||||||||||||
The Company assumed a debt facility (the “Nord LB Facility”) provided by Norddeutsche Landesbank Gironzentrale (“Nord LB”) that financed 19 of the aircraft acquired in the GAAM Portfolio. The Nord LB Facility is structured as individual loans with each aircraft owning subsidiary acting as the borrower of its respective loan. Borrowings are secured by Fly’s equity interest in the subsidiaries which own the financed aircraft, the related leases, maintenance reserves and other deposits. The loans are cross-collateralized and contain cross-default provisions. | |||||||||||||||||
The loans under the Nord LB Facility bear interest at one month LIBOR plus 3.30% until the final maturity date of November 14, 2018. As of December 31, 2014, the blended weighted average interest rate for the facility was 4.15%, excluding the amortization of debt discount and debt issuance costs. As of each of December 31, 2014 and 2013, interest accrued on the facility totaled $0.7 million, respectively. | |||||||||||||||||
The Company applies 95% of lease rentals collected towards interest and principal. Upon termination or expiration of a lease, 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. In 2014, the Company made total principal payments of $36.1 million under the Nord LB Facility. In 2013, the Company made total principal payments of $57.9 million, which included repayment of debt associated with the sale of an aircraft financed under the Nord LB Facility. | |||||||||||||||||
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 second to repay the outstanding amounts which finance the remaining aircraft. In addition, any security deposit and maintenance reserve amounts retained by the Company after termination of a lease will be used to prepay the Nord LB Facility, provided such reserves are not required for future maintenance of such aircraft. If the Company earns a 10% return on its equity investment after full repayment of the facility, the Company will pay Nord LB a fee equal to 10% of returns in excess of 10%, up to a maximum of $5.0 million. | |||||||||||||||||
In 2013, the Company sold one Boeing 737-700 aircraft financed under the Nord LB Facility. The Company repaid the debt associated with this aircraft and wrote off $0.9 million of unamortized discount. In 2012, the Company sold one Airbus A319-100 aircraft financed under the Nord LB Facility. The Company repaid the debt associated with the aircraft and wrote off $0.8 million of unamortized discount. | |||||||||||||||||
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. | |||||||||||||||||
The Nord LB Facility does not contain any financial covenants. As of December 31, 2014, 17 aircraft were financed under this facility. | |||||||||||||||||
CBA Facility | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance: | |||||||||||||||||
Senior tranches | $ | — | $ | 30,512 | |||||||||||||
Junior tranches | — | 5,900 | |||||||||||||||
Tranche A | 65,462 | 87,925 | |||||||||||||||
Tranche B | 49,350 | 37,486 | |||||||||||||||
Total outstanding principal balance | 114,812 | 161,823 | |||||||||||||||
Unamortized debt discount | -1,604 | -2,021 | |||||||||||||||
CBA Facility balance, net | $ | 113,208 | $ | 159,802 | |||||||||||||
The Company assumed a debt facility provided by Bank of Scotland plc (“BOS”), Commonwealth Bank of Australia and CommBank Europe Limited (together, “CBA”) (the “CBA Facility” which the Company formerly referred to as the “BOS Facility”) that financed 21 of the aircraft acquired in the GAAM Portfolio. Subsequent to the acquisition of the GAAM Portfolio, twelve aircraft were refinanced. | |||||||||||||||||
On November 15, 2013, the Company amended and extended the CBA Facility, which was then secured by nine aircraft. CBA provided for seven new loans on seven of the remaining nine aircraft which are cross-collateralized and contain cross-default provisions. One loan matures in 2018 and the remaining six loans mature in 2020. All payments under the CBA Facility are guaranteed by the Company. The Company sold the two remaining aircraft financed under the CBA Facility and recorded a gain on debt extinguishment of $4.0 million during the year ended December 31, 2014. The proceeds were paid to the lenders as full and final discharge of the loans secured by these two aircraft totaling $35.6 million. | |||||||||||||||||
The Company makes scheduled monthly payments of principal and interest on each loan in accordance with a fixed amortization schedule. In 2014 and 2013, total scheduled payments of $11.2 million and $13.5 million, respectively, were made by the Company. In addition, in 2013, the Company refinanced two aircraft, resulting in principal repayments of $54.5 million under the CBA Facility. | |||||||||||||||||
Borrowings under the CBA Facility accrue interest at either a fixed or variable interest rate. Variable borrowings bear interest based on one-month LIBOR plus an applicable composite margin of 2.50%. As of December 31, 2014 and 2013, the weighted average interest rates on the tranche loans, excluding the debt discount amortization, are presented below: | |||||||||||||||||
As of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Fixed rate loans: | |||||||||||||||||
Senior tranches | — | 5.62 | % | ||||||||||||||
Junior tranches | — | 7.91 | % | ||||||||||||||
Tranche A | 5.52 | % | 6.53 | % | |||||||||||||
Tranche B | 4.47 | % | 4.58 | % | |||||||||||||
Variable rate loans: | |||||||||||||||||
Tranche A | 2.66 | % | 2.66 | % | |||||||||||||
Tranche B | — | 2.66 | % | ||||||||||||||
Facility weighted average interest rate | 4.63 | % | 4.91 | % | |||||||||||||
As of December 31, 2014 and 2013, interest accrued on the facility totaled $44,000 and $0.2 million, respectively. | |||||||||||||||||
Borrowings under the CBA Facility are secured by the Company’s equity interest in the subsidiaries which own the aircraft and the related leases. If, upon the repayment of any loan, the ratio of the total principal amount outstanding under the CBA Facility to the aggregate appraised value of the aircraft is equal to or greater than 80%, the Company will be required to pay into a collateral account an amount as is necessary to reduce this ratio to less than 80%. | |||||||||||||||||
Term Loan | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance | $ | 451,547 | $ | 475,313 | |||||||||||||
Unamortized debt discount | -8,164 | -10,210 | |||||||||||||||
Term Loan balance, net | $ | 443,383 | $ | 465,103 | |||||||||||||
On August 9, 2012, the Company entered into a $395.0 million senior secured term loan (the “Term Loan”) with a consortium of lenders. The Term Loan was originally issued at an offering price of 96% of par value, or a discount of $15.8 million, bearing interest at LIBOR plus a margin of 5.50%, with a LIBOR floor of 1.25%. | |||||||||||||||||
Debt proceeds of $266.7 million, along with approximately $122.5 million of the Company’s cash, were applied towards full repayment of the B&B Air Acquisition Facility which financed 16 aircraft. The Company received the remaining proceeds of $112.5 million as seven additional aircraft, which were previously financed in the CBA Facility, were delivered into the Term Loan. These proceeds were applied towards full repayment of debt outstanding in the CBA Facility in respect of these seven aircraft, as well as associated break costs. | |||||||||||||||||
On December 18, 2012, the Company re-priced the Term Loan reducing the interest rate margin from 5.50% to 4.50%. In connection with the re-pricing, the Company paid the lenders a one-time prepayment penalty of 1.00% of the outstanding principal amount which totaled $3.9 million. The Company recorded debt extinguishment costs of $4.2 million associated with the lenders who did not participate in the re-pricing and whom were replaced with new lenders. | |||||||||||||||||
On May 21, 2013, the Company completed a second re-pricing of the Term Loan, further reducing the interest rate margin to 3.50% and the LIBOR floor by 0.25% to 1.00%. In connection with this re-pricing, the Company paid the lenders a prepayment penalty of 1.00% of the outstanding principal amount which totaled $3.8 million. | |||||||||||||||||
On November 21, 2013, the Company amended and upsized the Term Loan by $105.0 million. The incremental borrowing was priced at 99.75% of the principal amount. The Company received net proceeds of approximately $102.0 million, which were used to finance the acquisition of aircraft. At December 31, 2013, $33.6 million was held in an escrow account to finance the acquisition of two additional aircraft, which were acquired during the first quarter of 2014. In connection with this amendment, the Company recorded debt extinguishment costs of $1.2 million. | |||||||||||||||||
In connection with the upsizing, the maturity of the Term Loan was extended by one year from August 2018 to August 2019. In addition, the maximum Loan-to-Value ratio as measured on a quarterly basis, was increased from 67.5% to 70.0% of the lower of the mean or median of half-life adjusted base value of the financed aircraft as determined by three independent appraisers. The Company is required to seek new appraisals semi-annually. | |||||||||||||||||
During the year ended December 31, 2014, the Company sold four aircraft financed under the Term Loan, and substituted in three unencumbered aircraft as collateral. During the year ended December 31, 2013, the Company sold one aircraft financed under the Term Loan and substituted in an aircraft purchased during the third quarter of 2013. As of December 31, 2014, 29 aircraft were financed under the Term Loan. | |||||||||||||||||
The Term Loan requires quarterly principal payments of $5.9 million. In 2014 and 2013, the Company made principal payments of $23.8 million and $19.8 million, respectively. | |||||||||||||||||
The Term Loan can be prepaid in whole or in part without penalty. | |||||||||||||||||
The Term Loan is guaranteed by the Company. Borrowings are also secured by the Company’s equity interests in the aircraft owning and/or leasing subsidiaries, the aircraft and related leases and other deposits. 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 public 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. | |||||||||||||||||
As of each of December 31, 2014 and 2013, interest accrued on the Term Loan totaled $2.9 million. | |||||||||||||||||
Fly Acquisition II Facility | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance | $ | 121,589 | $ | 126,766 | |||||||||||||
On November 7, 2012, the Company entered into a revolving credit facility with a consortium of lenders (“Fly Acquisition II Facility”) providing loans in an aggregate amount of up to $250.0 million. On July 3, 2013, the Company increased total commitments under the facility to $450.0 million and the availability period was extended to July 3, 2015. The final maturity date was also extended to July 3, 2018. In January 2015, the Company exercised its right to terminate the availability period. The Company may not borrow any additional amounts and the final maturity date remains unchanged. | |||||||||||||||||
During the availability period, the Company paid a commitment fee of 0.75% per annum on a monthly basis to each lender on the undrawn amount of their commitment. | |||||||||||||||||
For the period following termination of the availability period through July 2016, the applicable margin has increased from 3.25% to 3.75% and will increase to 4.25% and 4.75% for each succeeding year until the final maturity date. As of each of December 31, 2014 and 2013, interest accrued on the Fly Acquisition II Facility totaled $0.2 million. | |||||||||||||||||
During the availability period, the Company was required to make monthly principal payments such that the aggregate outstanding principal amount of the loans was less than or equal to 72.5% of the aggregate purchase price of the aircraft depreciated on a straight line basis assuming a 25-year useful life of the aircraft. Following termination of the availability period, all available cash flow (other than proceeds from the sale or total loss of an aircraft) from the aircraft held by Fly Acquisition II is applied to the outstanding principal balance after payment of interest, certain fees and expenses and interest rate swap payments. | |||||||||||||||||
In 2013, the Company purchased eight aircraft using a combination of unrestricted cash and $240.0 million drawn under the Fly Acquisition II Facility. The Company made principal payments of $5.2 million and $3.1 million in 2014 and 2013, respectively. In addition, in 2013, four aircraft were refinanced, resulting in an aggregate repayment of $110.0 million. As of December 31, 2014, four aircraft were financed under the Fly Acquisition II Facility. | |||||||||||||||||
Borrowings are secured by the beneficial interests in the aircraft owning and leasing subsidiaries, the aircraft and related leases, certain cash collateral and other deposits. In addition, the Company is required to maintain cash collateral equal to 2% of the aggregate outstanding principal balance of the loans. | |||||||||||||||||
Events of default under the Fly Acquisition II Facility include, among other things: | |||||||||||||||||
•a final judgment for a payment obligation is rendered against Fly Acquisition II or any of its subsidiaries in an amount in excess of $2.5 million which remains undischarged for 45 days; and | |||||||||||||||||
•certain early termination events related to Fly Acquisition II’s swap contracts. | |||||||||||||||||
Other Aircraft Secured Borrowings | |||||||||||||||||
Balance as of | Weighted Average | ||||||||||||||||
December 31, | December 31, | Interest | |||||||||||||||
2014 | 2013 | Rates(1) | Maturity Date | ||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance | $ | 723,023 | $ | 490,106 | 3.89% | December 2015 – December 2025 | |||||||||||
Unamortized debt discount | -6,394 | -2,854 | |||||||||||||||
Other aircraft secured borrowings balance, net | $ | 716,629 | $ | 487,252 | |||||||||||||
(1)Represents the weighted average contracted interest rate as of December 31, 2014. | |||||||||||||||||
In addition to the debt facilities described above, the Company has entered into other aircraft secured borrowings to finance the acquisition of aircraft. These borrowings may finance the acquisition of one or more aircraft and are usually structured as individual loans which are secured by pledges of the Company’s rights, title and interest in the financed aircraft and leases. The maturity date on each loan generally matches the corresponding lease expiration date. The Company makes scheduled monthly payments of principal and interest on each loan in accordance with a fixed amortization schedule. In 2014, the Company made principal payments, including repayment of three loans, totaling $70.1 million. In 2013, the Company made principal payments totaling $28.7 million. As of each of December 31, 2014 and 2013, interest accrued on these loans totaled $1.1 million. As of December 31, 2014, 21 aircraft were financed by other aircraft secured borrowings. | |||||||||||||||||
At December 31, 2014 and 2013, $425.0 million and $134.9 million of other aircraft secured borrowings, respectively, were recourse to the Company. Although these recourse loans are secured by aircraft and their associated leases, the Company has guaranteed and will be responsible for timely payment of all debt service and other amounts due under these loans in the event that the underlying leases do not provide sufficient cash flow to meet required debt payments. In addition, certain of the Company’s secured, recourse borrowings contain cross default provisions to other recourse borrowings which if triggered could significantly increase the amount of indebtedness that is payable by the Company at the time of the default. | |||||||||||||||||
In 2014, the Company acquired five aircraft with a combination of unrestricted cash and proceeds from secured, recourse debt financing of $274.5 million. In addition, the Company financed one aircraft with secured, recourse debt of $28.5 million. | |||||||||||||||||
In 2013, the Company purchased four aircraft with unrestricted cash and secured debt financing in an aggregate amount of $237.5 million. Also in 2013, the Company refinanced four aircraft out of the Fly Acquisition II Facility with four aircraft notes payable totaling $112.0 million. | |||||||||||||||||
Other Secured Borrowing | |||||||||||||||||
The Company had an $85.0 million credit facility agreement with an international commercial bank. The outstanding principal balance of $34.5 million was fully repaid during the first quarter of 2012. | |||||||||||||||||
Borrowings Future Minimum Principal Payments | |||||||||||||||||
During the year ended December 31, 2014, the Company made scheduled principal payments on its secured borrowings totaling $163.7 million. The anticipated future minimum principal payments due for its borrowings are as follows: | |||||||||||||||||
Year ending December 31, | (Dollars in thousands) | ||||||||||||||||
2015 | $ | 242,795 | |||||||||||||||
2016 | 207,413 | ||||||||||||||||
2017 | 194,513 | ||||||||||||||||
2018 | 532,875 | ||||||||||||||||
2019 | 457,788 | ||||||||||||||||
Thereafter | 738,301 | ||||||||||||||||
Future minimum principal payments due | $ | 2,373,685 | |||||||||||||||
Derivatives
Derivatives | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Derivatives [Abstract] | ||||||||||||||||||||||||||||||||
DERIVATIVES | 8. DERIVATIVES | |||||||||||||||||||||||||||||||
Derivatives are used by the Company to manage its exposure to interest rate and foreign currency exchange fluctuations. The Company uses interest rate swap contracts to hedge variable interest payments due on loans associated with aircraft with fixed rate rentals. As of December 31, 2014, the Company’s total unsecured and secured debt balance, excluding unamortized debt discount, was $3.1 billion. Debt with floating interest rates totaled $2.1 billion, of which $1.7 billion was associated with aircraft with fixed rate rentals. | ||||||||||||||||||||||||||||||||
Interest rate swap contracts allow the Company to pay fixed interest rates and receive variable interest rates with the swap counterparty based on the one-month and three-month LIBOR on the notional amounts over the life of the contracts. As of December 31, 2014 and 2013, the Company had interest rate swap contracts with notional amounts aggregating $1.4 billion and $1.5 billion, respectively. The unrealized fair market value gain on the interest rate swap contracts, reflected as derivative assets, was $2.1 million and $7.4 million as of December 31, 2014 and 2013, respectively. The unrealized fair market value loss on the interest rate swap contracts, reflected as derivative liabilities, was $23.3 million and $24.6 million as of December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||||||||||
To mitigate its exposure to foreign currency exchange fluctuations, the Company enters into cross currency swap contracts in conjunction with leases in which a portion or all of the lease rentals are denominated in currency other than U.S. dollars (“USD”). Pursuant to such cross currency swaps, the Company receives USD based on a fixed conversion rate through the maturity date of the respective swap contract. As of December 31, 2013, the Company had one cross currency swap contract that was assumed in connection with the acquisition of the GAAM Portfolio. The unrealized fair market value loss on the Australian dollar (“AUD”) cross currency swap contract, reflected as a derivative liability, was approximately $35,000 as of December 31, 2013. | ||||||||||||||||||||||||||||||||
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, credit spreads and measures of volatility. | ||||||||||||||||||||||||||||||||
Designated Derivatives | ||||||||||||||||||||||||||||||||
The Company’s interest rate derivatives have been designated as cash flow hedges. The effective portion of changes in fair value of these derivatives are recorded as a component of accumulated other comprehensive income, net of a provision for income taxes. Changes in the fair value of these derivatives are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. For the year ended December 31, 2014, the Company recorded an unrealized loss of $3.2 million, net of the applicable net tax benefit of $0.6 million. For the year ended December 31, 2013, the Company recorded an unrealized gain of $22.1 million, net of the applicable net tax expense of $3.5 million. For the year ended December 31, 2012, the Company recorded a net unrealized gain of $9.1 million, after the applicable net tax expense of $1.4 million. | ||||||||||||||||||||||||||||||||
As of December 31, 2014, the Company had the following designated derivative instruments classified as derivative assets on the balance sheet (dollar amounts in thousands): | ||||||||||||||||||||||||||||||||
Fair | Adjusted | Gain | ||||||||||||||||||||||||||||||
Swap | Market | Fair Market | Recognized in | Gain | ||||||||||||||||||||||||||||
Hedge | Contract | Value of | Credit | Value of | Deferred | Accumulated | Recognized | |||||||||||||||||||||||||
Interest | Notional | Derivative | Risk | Derivative | Tax | Comprehensive | into | |||||||||||||||||||||||||
Type | Quantity | Maturity Dates | Rates | Amount | Asset | Adjustment | Asset | Expense | Loss | Earnings | ||||||||||||||||||||||
Interest rate swap contracts | 18 | 10/15/17-11/14/18 | 0.89% - 1.22% | $ | 376,619 | $ | 2,182 | $ | 36 | $ | 2,218 | $ | -273 | $ | 1,914 | $ | 30 | |||||||||||||||
Accrued interest | — | -151 | — | -151 | — | — | — | |||||||||||||||||||||||||
Total – designated derivative assets | 18 | $ | 376,619 | $ | 2,031 | $ | 36 | $ | 2,067 | $ | -273 | $ | 1,914 | $ | 30 | |||||||||||||||||
As of December 31, 2014, the Company had the following designated derivative instruments classified as derivative liabilities on the balance sheet (dollar amounts in thousands): | ||||||||||||||||||||||||||||||||
Fair | Adjusted | Loss | ||||||||||||||||||||||||||||||
Swap | Market | Fair Market | Recognized in | Loss | ||||||||||||||||||||||||||||
Hedge | Contract | Value of | Credit | Value of | Deferred | Accumulated | Recognized | |||||||||||||||||||||||||
Interest | Notional | Derivative | Risk | Derivative | Tax | Comprehensive | into | |||||||||||||||||||||||||
Type | Quantity | Maturity Dates | Rates | Amount | Liability | Adjustment | Liability | Benefit | Loss | Earnings | ||||||||||||||||||||||
Interest rate swap contracts | 18 | 1/14/15-9/27/25 | 1.00% - 6.22% | $ | 1,014,262 | $ | -23,618 | $ | 1,459 | $ | -22,159 | $ | 2,757 | $ | -19,005 | $ | -103 | |||||||||||||||
Accrued interest | — | -1,152 | — | -1,152 | — | — | — | |||||||||||||||||||||||||
Total – designated derivative liabilities | 18 | $ | 1,014,262 | $ | -24,770 | $ | 1,459 | $ | -23,311 | $ | 2,757 | $ | -19,005 | $ | -103 | |||||||||||||||||
In connection with the termination of the availability period under the Fly Acquisition II Facility in January 2015, and the sale and refinancing of aircraft secured by this facility, the Company terminated five interest rate swap contracts with notional amounts totaling $116.2 million. The resulting gain of $23,000, along with $0.1 million in other comprehensive income at December 31, 2014 will be recorded into income in 2015. | ||||||||||||||||||||||||||||||||
Terminated Derivatives | ||||||||||||||||||||||||||||||||
In 2010 and 2011, the Company terminated two interest rate swap contracts and received settlement proceeds totaling $2.1 million which were amortized into interest expense over the original term of the contracts. In 2013, of the remaining amount to be amortized, $0.3 million was amortized into interest expense and the balance of $1.0 million was written off as a loss on debt extinguishment upon repayment of the associated debt. | ||||||||||||||||||||||||||||||||
In connection with the sale of six aircraft by the Company during the first quarter of 2013, the buyer assumed the underlying debt financing and derivative contracts associated with the aircraft. As of the disposal date, the derivative contracts were classified as derivative liabilities and had a negative fair market value of $5.0 million. | ||||||||||||||||||||||||||||||||
During the year ended December 31, 2013, in connection with three cross currency swap contracts and one interest rate swap contract that was terminated, the Company recognized net fair value losses totaling $0.2 million. | ||||||||||||||||||||||||||||||||
During the year ended December 31, 2012, the Company terminated four cross currency swap contracts and received net settlement proceeds of $1.3 million. The gain associated with the terminated contracts totaled $0.7 million. | ||||||||||||||||||||||||||||||||
In connection with the repayment of the B&B Air Acquisition Facility, the Company terminated eleven swap contracts associated with the facility and made payments totaling $36.3 million in the third quarter of 2012. The loss recognized into earnings associated with the terminated swap contracts totaled $32.3 million. | ||||||||||||||||||||||||||||||||
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Share Based Compensation [Abstract] | ||||||||||
SHARE-BASED COMPENSATION | 9. SHARE-BASED COMPENSATION | |||||||||
Description of Plan | ||||||||||
On April 29, 2010, the Company adopted the 2010 Omnibus Incentive Plan (“2010 Plan”) and reserved 1,500,000 shares for issuance under the 2010 Plan. The 2010 Plan permitted the grant of (i) SARs; (ii) RSUs; (iii) nonqualified stock options; and (iv) other stock-based awards. By June 30, 2012, the Company had exhausted the 2010 Plan and no shares remain available for grant. | ||||||||||
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. The granted SARs and RSUs vest in three equal installments and expire on the tenth anniversary of the grant date. The Company settles SARs and RSUs 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 date or vesting date, (ii) termination date or (iii) expiration date (“Dividend Amount”). 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 | ||||||||||
A summary of the Company’s SAR activity for the years ended December 31, 2014, 2013 and 2012 are presented as follows: | ||||||||||
Weighted average | ||||||||||
remaining | ||||||||||
Number of | Weighted average | contractual | ||||||||
shares | exercise price | life (in years) | ||||||||
Outstanding at January 1, 2012 | 708,840 | $ | 12.85 | 8.8 | ||||||
SARs granted | 183,164 | 12.28 | — | |||||||
SARs exercised | — | — | — | |||||||
SARs canceled or forfeited | — | — | — | |||||||
Outstanding at December 31, 2012 | 892,004 | 12.74 | 8.1 | |||||||
SARs granted | — | — | — | |||||||
SARs exercised | -3,370 | 12.42 | — | |||||||
SARs canceled or forfeited | — | — | — | |||||||
Outstanding at December 31, 2013 | 888,634 | $ | 12.74 | 7.1 | ||||||
SARs granted | — | — | — | |||||||
SARs exercised | -58,519 | 12.80 | — | |||||||
SARs canceled or forfeited | -8,998 | 12.28 | — | |||||||
Outstanding at December 31, 2014 | 821,117 | 12.74 | 6.1 | |||||||
Exercisable at December 31, 2014 | 764,558 | $ | 12.77 | |||||||
SARs granted to employees and non-employees during the year ended December 31, 2012 totaled 33,096 and 150,068, respectively. | ||||||||||
The aggregate intrinsic value of the SARs is calculated as the difference between the exercise price of the underlying awards and the Company’s closing ADS price of $13.15, $16.07 and $12.32 as of December 31, 2014, 2013 and 2012, respectively. The SARs had an intrinsic value of $49,000 and $0.8 million as of December 31, 2014 and 2013, respectively. As of December 31, 2012, the unvested SARs had no intrinsic value. The grant date fair value of the SARs granted in 2012 was $1.4 million. | ||||||||||
A summary of the Company’s RSU activity for the years ended December 31, 2014, 2013 and 2012 is as follows: | ||||||||||
Weighted average | ||||||||||
Number of | grant date | |||||||||
shares | fair value | |||||||||
Outstanding and unvested at January 1, 2012 | 330,896 | $ | 13.09 | |||||||
RSUs granted | 116,836 | 12.28 | ||||||||
RSUs vested | -163,718 | 12.87 | ||||||||
RSUs canceled or forfeited | — | — | ||||||||
Outstanding and unvested at December 31, 2012 | 284,014 | 12.88 | ||||||||
RSUs granted | — | — | ||||||||
RSUs vested | -122,534 | 12.98 | ||||||||
RSUs canceled or forfeited | — | — | ||||||||
Outstanding and unvested at December 31, 2013 | 161,480 | $ | 12.81 | |||||||
RSUs granted | — | — | ||||||||
RSUs vested | -119,666 | 12.99 | ||||||||
RSUs canceled or forfeited | -5,739 | 12.28 | ||||||||
Outstanding and unvested at December 31, 2014 | 36,075 | $ | 12.28 | |||||||
RSUs granted to employees and non-employees during the year ended December 31, 2012 totaled 21,112 and 95,724, respectively. | ||||||||||
The weighted average grant date fair value of the RSUs was determined based on the closing market price of the Company’s ADSs on the date of the award. As of December 31, 2014, the aggregate intrinsic value of RSUs outstanding using the closing price of $13.15 per ADS was $0.5 million. The aggregate intrinsic value of RSUs outstanding using the closing price of $16.07 per ADS as of December 31, 2013 was $2.6 million. The aggregate intrinsic value of RSUs outstanding using the closing price of $12.32 per ADS as of December 31, 2012 was $3.5 million. | ||||||||||
Valuation Assumptions | ||||||||||
The Company accounts for grants to the CEO and CFO as grants to employees and grants to other BBAM LP employees as grants to non-employees. Grants to employees are valued at the grant date and amortized on a straight-line basis into share-based compensation expense over the service period. Grants to non-employees are initially measured at grant date, and then re-measured at each interim reporting period until the awards are vested. | ||||||||||
The Company uses the Black-Scholes option pricing model to determine the fair value of SARs. The fair value of SARs expected to vest is estimated on the date of grant, or if applicable, on the measurement date using the following assumptions: | ||||||||||
Year ended | Year ended | Year ended | ||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||
Risk-free interest rate | 0.90% –2.32% | 0.90% – 2.51% | 0.90% – 2.73% | |||||||
Volatility | 48% – 57% | 51% – 63% | 54% – 70% | |||||||
Expected life | 6 – 8 years | 6 – 8 years | 6 – 10 years | |||||||
The expected stock price volatility was determined based on the historical volatility of the Company’s common shares as well as other companies operating in similar businesses. The risk-free interest rate is based on the US Treasury yield curve in effect at the time of grant, or as applicable as of the measurement date, for the period corresponding with the expected life of the SAR. The dividend yield assumption was not factored into the valuation model as the SAR grant holder is entitled to the Dividend Amount. | ||||||||||
Share-based compensation expense related to SARs and RSUs is recorded as a component of selling, general and administrative expenses, and totaled $30,000, $3.2 million and $3.6 million for the years ended December 31, 2014, 2013 and 2012, respectively. Unamortized share-based compensation expense totaled $0.1 million, $0.9 million and $2.6 million at December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, 2013 and 2012, unvested RSUs and SARs had weighted average remaining vesting terms of approximately four months, six months and eleven months, respectively. | ||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes [Abstract] | |||||||||||
INCOME TAXES | 10. INCOME TAXES | ||||||||||
Fly is a tax resident of Ireland and has wholly-owned subsidiaries in Ireland, France, Luxembourg, Australia, Singapore and Labuan that are tax residents in those jurisdictions. In general, Irish resident companies pay corporation tax at the rate of 12.5% on trading income and 25.0% on non-trading income. 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. In calculating net trading income, Fly and its Irish tax resident subsidiaries are entitled to a deduction for trading expenses and tax depreciation on their aircraft. | |||||||||||
Fly’s Australian resident subsidiaries pay a corporation tax of 30.0% and Fly’s French resident subsidiaries pay a corporation tax of 33.33% on their net trading income. Repatriated earnings and any undistributed earnings from the Company’s Cayman and Australian subsidiaries will be taxed at the 25.0% and 12.5% tax rate, respectively. As of December 31, 2014, the Company has undistributed earnings from its Australian subsidiary of approximately $18.2 million. The Company has the ability and intends to reinvest these undistributed earnings. Distributions from the Australian subsidiary may be subject to an Australian withholding tax of 15%, which could result in an additional tax liability of approximately $2.7 million. | |||||||||||
Income tax expense (benefit) by jurisdiction is shown below: | |||||||||||
Year ended | Year ended | Year ended | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in thousands) | |||||||||||
Current tax (benefit) expense: | |||||||||||
Ireland | $ | — | $ | 400 | $ | 10,201 | |||||
Luxembourg | 210 | 175 | 26 | ||||||||
United States | 2 | -1,131 | 1,783 | ||||||||
Other | 48 | 20 | 32 | ||||||||
Current tax expense (benefit) — total | 260 | -536 | 12,042 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Ireland | 7,448 | 3,470 | -10,118 | ||||||||
Australia | 573 | 2,738 | 2,101 | ||||||||
Other | -18 | -13 | -163 | ||||||||
Deferred tax expense (benefit) — total | 8,003 | 6,195 | -8,180 | ||||||||
Total income tax expense | $ | 8,263 | $ | 5,659 | $ | 3,862 | |||||
In the year ended December 31, 2013, the Company recognized a tax benefit of $1.1 million related to 2012 U.S. Federal and State taxes primarily resulting from the re-allocation of BBAM LP’s U.S. sourced income among its partners. | |||||||||||
The Company had no unrecognized tax benefits as of December 31, 2014 and 2013. The principal components of the Company’s net deferred tax asset (liability) were as follows: | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
(Dollars in thousands) | |||||||||||
Deferred tax asset: | |||||||||||
Net operating loss carry forwards | $ | 220,247 | $ | 193,006 | |||||||
Net unrealized losses on derivative instruments | 2,483 | 1,932 | |||||||||
Basis difference on acquisition of GAAM Australian assets | 9,597 | 9,597 | |||||||||
Other | 309 | 202 | |||||||||
Valuation allowance | -22,268 | -19,412 | |||||||||
Total deferred tax asset | 210,368 | 185,325 | |||||||||
Deferred tax liability: | |||||||||||
Excess of tax depreciation over book depreciation | -207,071 | -171,969 | |||||||||
Book/tax differences identified in connection with GAAM Portfolio acquisition: | |||||||||||
Debt | -1,270 | -1,859 | |||||||||
Security deposits and maintenance reserve liability | -350 | -388 | |||||||||
Lease premiums, net | -14 | -142 | |||||||||
Net earnings of non-European Union member subsidiaries | -17,952 | -18,713 | |||||||||
Total deferred tax liability | -226,657 | -193,071 | |||||||||
Deferred tax liability, net | $ | -16,289 | $ | -7,746 | |||||||
The Company records 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, 2014 and 2013, the Company had a valuation allowance of $22.3 million and $19.4 million, respectively. | |||||||||||
The Company had recorded valuation allowances against a deferred tax asset in connection with basis differences on the acquisition of GAAM’s Australian assets. In connection with the sale of aircraft owned by a wholly-owned Australian subsidiary in 2013, the Company generated capital gains and has utilized approximately $2.3 million of the deferred tax asset. | |||||||||||
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. However, the Company has recorded a net valuation allowance of $2.9 million and $1.7 million for the years ended December 31, 2014 and 2013, respectively. | |||||||||||
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 (benefit): | |||||||||||
Year ended | Year ended | Year ended | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2013 | 2012 | |||||||||
(Percentage) | |||||||||||
Irish statutory corporate tax rate on trading income | 12.5 | % | 12.5 | % | 12.5 | % | |||||
Valuation allowances | 4.4 | % | 1.6 | % | — | ||||||
Equity earnings from Fly-Z/C LP | -0.5 | % | -0.4 | % | -0.4 | % | |||||
Tax on investment in BBAM LP | — | — | 1.3 | % | |||||||
Tax impact of repurchased and resold Notes | -0.6 | % | -0.8 | % | -1.2 | % | |||||
Share-based compensation | — | 0.7 | % | 0.9 | % | ||||||
Tax on gain on sale of investment in BBAM LP | — | — | 9.1 | % | |||||||
Deductible intra-group interest | — | -2.2 | % | -12.9 | % | ||||||
Foreign tax rate differentials | -4.7 | % | 3.3 | % | -2.4 | % | |||||
True-up of prior year tax provision | 0.3 | % | 0.2 | % | 1.1 | % | |||||
Non-taxable gain on debt extinguishment | -1.3 | % | -5.1 | % | — | ||||||
Non-deductible interest expense, transaction fees and expenses | 2.7 | % | 0.1 | % | — | ||||||
Other | — | -0.2 | % | -0.5 | % | ||||||
Income tax expense | 12.8 | % | 9.7 | % | 7.5 | % | |||||
The tax years from 2010 onwards are open for examination by the tax authorities. | |||||||||||
Other_Liabilities
Other Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities [Abstract] | |||||||||
OTHER LIABILITIES | 11. OTHER LIABILITIES | ||||||||
The following table describes the principal components of the Company’s other liabilities: | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(Dollars in thousands) | |||||||||
Net current tax provision | $ | 581 | $ | 1,517 | |||||
Lease incentive obligation | 25,503 | 8,534 | |||||||
Deferred rent payable | 11,461 | 9,169 | |||||||
Refundable deposits | 4,079 | 1,045 | |||||||
Other | 266 | 258 | |||||||
Total other liabilities | $ | 41,890 | $ | 20,523 | |||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2014 | |
Shareholders' Equity [Abstract] | |
SHAREHOLDERS' EQUITY | 12. SHAREHOLDERS’ EQUITY |
On May 7, 2014, the Company’s Board of Directors approved a $30.0 million share repurchase program expiring in May 2015. Under this program, the Company may make share repurchases from time to time in the open market or in privately negotiated transactions. The timing of the repurchases under this program will depend upon a variety of factors, including market conditions, and the program may be suspended or discontinued at any time. No shares were repurchased during the years ended December 31, 2014 and 2013. | |
In 2010, Summit purchased 1,000,000 common shares of the Company in the form of ADSs from Babcock & Brown. The Company has a right of first refusal on any sale of these shares by Summit until April 2015. | |
On December 28, 2012, Summit and Onex Corporation and its affiliates (collectively, “Onex”) purchased 2,191,060 newly issued common shares of the Company in the form of ADSs for an aggregate of $25.0 million, or $11.41 per ADS. The share price represents a 5% discount to the volume-weighted average price of the Company’s common shares in the five-day period ended November 29, 2012. The shares are subject to lock-up provisions. | |
In July 2013, the Company sold 13,142,856 common shares in the form of ADSs at a price of $14.00 per ADS in an underwritten public offering generating net proceeds of approximately $172.6 million. During the year ended December 31, 2014, the Company issued 126,660 shares in connection with RSUs that vested and SARs that were exercised. As of December 31, 2014, there were 41,432,998 shares outstanding. | |
During the year ended December 31, 2014, the Company declared and paid dividends of $1.00 per share or $42.8 million. During the years ended December 31, 2013 and 2012, the Company declared and paid dividends of $0.88 per share or $31.5 million and $0.84 per share or $22.5 million, respectively. On January 14, 2015, the Company declared a dividend of $0.25 per share or approximately $10.4 million, including dividend equivalents paid to vested SARs, which was paid on February 20, 2015 to shareholders of record at January 30, 2015. | |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
EARNINGS PER SHARE | 13. EARNINGS PER SHARE | ||||||||||
The following table sets forth the calculation of basic and diluted earnings per share: | |||||||||||
Year ended | Year ended | Year ended | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in thousands, except share and per share data) | |||||||||||
Numerator | |||||||||||
Net income | $ | 56,077 | $ | 52,476 | $ | 47,669 | |||||
Less: Dividend equivalents paid to vested RSUs and SARs | -1,426 | -940 | -884 | ||||||||
Net income available to common shareholders | $ | 54,651 | $ | 51,536 | $ | 46,785 | |||||
Denominator | |||||||||||
Weighted average shares outstanding-Basic | 41,405,211 | 34,129,880 | 25,792,932 | ||||||||
Dilutive common equivalent shares: | |||||||||||
RSUs | 48,674 | 102,914 | 164,998 | ||||||||
SARs | 73,699 | 10,662 | 3,675 | ||||||||
Weighted average shares outstanding-Diluted | 41,527,584 | 34,243,456 | 25,961,605 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.32 | $ | 1.51 | $ | 1.81 | |||||
Diluted | $ | 1.32 | $ | 1.50 | $ | 1.80 | |||||
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 and RSUs granted by the Company that contain non-forfeitable rights to receive dividend equivalents are deemed participating securities (see Note 9). Net income available to common shareholders is determined by reducing the Company’s net income for the period by dividend equivalents paid on vested RSUs and SARs during the period. | |||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. 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. | |
At December 31, 2014, the Company had a commitment to purchase and lease two aircraft, both of which have been delivered during the first quarter of 2015. The Company also had a commitment to sell eight aircraft expected to be consummated in 2015. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||
RELATED PARTY TRANSACTIONS | 15. RELATED PARTY TRANSACTIONS | ||||||||||||||||||||||
Fly has no employees and has outsourced the daily operations of the Company by entering into management, servicing and administrative agreements (the “Agreements”) with BBAM. Services to be rendered under these agreements include acquiring and disposing of aircraft; marketing of aircraft for lease and re-lease; collecting rent and other payments from the lessees; monitoring maintenance, insurance and other obligations under the leases; enforcing the Company’s rights under the lease terms; and maintaining the books and records of the Company and its subsidiaries. The Manager manages the Company under the direction of its chief executive officer and chief financial officer. Pursuant to the terms of the Agreements, certain fees and expenses that may be payable to the Manager may be reduced for any like payments made to other BBAM affiliates. | |||||||||||||||||||||||
On December 28, 2012, in connection with the sale of the Company’s 15% interest in BBAM to Onex, the Management Agreement was amended and the term of the agreement was extended to December 28, 2022, with an automatic five year renewal period unless the Company pays a termination fee to the Manager of $8.4 million, subject to an annual CPI adjustment. In connection with the sale of its 15% interest in BBAM LP, the Company paid BBAM a fee equal to 1.5% of the selling price or $0.7 million. | |||||||||||||||||||||||
Pursuant to the Agreements, BBAM is entitled to receive servicing fees. On October 24, 2014, in connection with the amendment to the indenture governing the Notes, the servicing agreement for B&B Air Funding was also amended to clarify the calculation of the sales fee payable to the servicer upon disposition of an aircraft, and to conform its insurance requirements and concentration limits to the same terms in the amended indenture. With respect to aircraft financed by the Notes, BBAM is entitled to receive a base fee of $150,000 per month, subject to certain adjustments, and a rent fee equal to 1.0% of the aggregate amount of aircraft rent due and 1.0% of rent actually collected. With respect to all other aircraft, BBAM is entitled to receive a servicing fee equal to 3.5% of the aggregate amount of rent actually received for such aircraft. For the years ended December 31, 2014, 2013 and 2012, base and rent fees incurred amounted to $14.4 million, $12.1 million and $12.6 million, respectively. | |||||||||||||||||||||||
BBAM is entitled to an administrative agency fee from B&B Air Funding equal to $750,000 per annum, subject to an annual CPI adjustment. Prior to August 2012, BBAM was entitled to an administrative fee from B&B Air Acquisition of $240,000 per annum. For all other aircraft, BBAM is entitled to an administrative fee of $1,000 per month per aircraft. In addition, BBAM is entitled to a servicer administrative fee of $10,000 per month under each of the Term Loan and Fly Acquisition II Facility. For the years ended December 31, 2014, 2013 and 2012, $2.1 million, $1.9 million and $1.8 million of administrative fees were paid in each respective period. | |||||||||||||||||||||||
For its role as exclusive arranger, BBAM receives a fee equal to 1.5% of the purchase price of aircraft acquired. BBAM also receives 1.5% of the sale proceeds of all disposed aircraft. However, in connection with the GAAM Portfolio, the Company paid the Manager a disposition fee equal to 2% of the gross proceeds in respect of the disposition of nine aircraft completed prior to October 14, 2013. The disposition fee payable on the remaining aircraft is 1.5% of the aggregate gross proceeds on disposition. With respect to aircraft acquired in the first quarter of 2014, the Manager waived the origination fees that it was entitled to receive from the Company. For the year ended December 31, 2014, the Company incurred $12.8 million of origination fees, of which $3.1 million were expensed. For the year ended December 31, 2014, $2.2 million of fees were incurred for aircraft sold. For the year ended December 31, 2013, $9.5 million and $2.0 million of fees were incurred for aircraft acquired and sold, respectively. For the year ended December 31, 2012, $0.9 million and $1.2 million of fees were incurred for aircraft acquired and sold, respectively. | |||||||||||||||||||||||
The Company makes quarterly payments of $2.5 million, subject to an annual adjustment tied to the Consumer Price Index applicable to the prior calendar year, 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 (“Management Expenses”). The amount is subject to adjustment by notice from the Manager and the approval of the independent members of the Company’s board of directors. For the years ended December 31, 2014, 2013 and 2012, the Company incurred $10.6 million, $10.5 million and $10.3 million of Management Expenses, respectively. | |||||||||||||||||||||||
In connection with its services, the Manager may incur expenses such as travel, insurance and other professional fees on behalf of the Company. The Company had $0.3 million and $0.8 million of reimbursable expenses due to the Manager at December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||
In 2010, Summit purchased 1,000,000 common shares of the Company in the form of ADSs from Babcock & Brown. The Company has a right of first refusal on any sale of these shares by Summit until April 2015. | |||||||||||||||||||||||
In connection with the repricing of the Term loan on December 18, 2012, the Company paid a one-time success fee to BBAM of $0.2 million. | |||||||||||||||||||||||
On December 28, 2012, Summit and Onex purchased 2,191,060 newly issued common shares of the Company in the form of ADSs for an aggregate of $25.0 million, or $11.41 per ADS. The share price represents a 5% discount to the volume-weighted average price of the Company’s common shares in the five-day period ended November 29, 2012. The shares are subject to lock-up provisions. The Company paid a 4.0% commission or $1.0 million to BBAM in connection with the issuance of these shares. | |||||||||||||||||||||||
In connection with the Company’s underwritten public offering in July 2013, the Company sold 142,857 common shares in the form of ADSs to certain officers and directors of Fly and BBAM LP at the public offering price of $14.00 per ADS, generating proceeds of $2.0 million. | |||||||||||||||||||||||
The Company’s minimum long-term contractual obligations with BBAM LP as of December 31, 2014, excluding rent fees, consisted of the following: | |||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Fixed base fee payments(1) | $ | 2,029 | $ | 2,029 | $ | 2,029 | $ | 2,029 | $ | 2,029 | $ | 10,479 | $ | 20,624 | |||||||||
Fixed administrative agency fee payments due by B&B Air Funding(1) | 845 | 845 | 845 | 845 | 845 | 4,368 | 8,593 | ||||||||||||||||
Fixed administrative agency fee payments due by Fly Acquisition II | 168 | 168 | 168 | 109 | 48 | 236 | 897 | ||||||||||||||||
Fixed administrative services fee due by Fly Peridot | 418 | 333 | 299 | 240 | 158 | 91 | 1,539 | ||||||||||||||||
Fixed administrative agency fee payments due by other subsidiaries | 708 | 632 | 566 | 436 | 326 | 1,080 | 3,748 | ||||||||||||||||
Fixed payments for Management Expenses(1)(2) | 10,713 | 10,713 | 10,713 | 10,713 | 10,713 | 40,498 | 94,063 | ||||||||||||||||
Total | $ | 14,881 | $ | 14,720 | $ | 14,620 | $ | 14,372 | $ | 14,119 | $ | 56,752 | $ | 129,464 | |||||||||
(1)Amounts in the table assume Consumer Price Index (“CPI”) rates in effect as of December 31, 2014 remain constant in future periods. | |||||||||||||||||||||||
(2)The initial term of the Management Agreement is for ten years from December 28, 2012, with an automatic five year renewal period. The agreement provides for an early termination fee of $8.4 million, subject to an annual CPI adjustment. The table assumes termination of the agreement after the initial ten year term and payment of the applicable termination fee. | |||||||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||
FAIR VALUE MEASUREMENTS | 16. FAIR VALUE MEASUREMENTS | ||||||||||||||||
Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. The hierarchy levels give the highest priority to quoted prices in active markets and the lowest priority to unobservable data. Fair value measurements are disclosed by level within the following fair value hierarchy: | |||||||||||||||||
Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. | |||||||||||||||||
Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. | |||||||||||||||||
Level 3 — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. | |||||||||||||||||
The Company’s financial instruments consist principally of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, derivative instruments, accounts payable and borrowings. Fair value of an asset is defined as the price a seller would receive in a current transaction between knowledgeable, willing and able parties. A liability’s fair value is defined as the amount that an obligor would pay to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. | |||||||||||||||||
The fair value of the Company’s cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying value. (The fair values of cash, restricted cash and cash equivalents are a Level 1 hierarchy. The fair values of accounts receivable and accounts payable are Level 2 hierarchy.) Where available, the fair value of the Company’s notes payable and debt facilities are 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 Fly’s 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 leases. 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 (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 uses Level 3 inputs which include assumptions as to future cash proceeds from the leasing and eventual disposition of the aircraft. For the years ended December 31, 2013 and 2012, the Company wrote down aircraft to their net realizable value and recognized a charge of $8.8 million and $11.4 million, respectively (See Note 3). | |||||||||||||||||
The carrying amounts and fair values of the Company’s financial instruments are as follows: | |||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Securitization Notes | $ | 532,035 | $ | 467,228 | $ | 575,326 | $ | 498,038 | |||||||||
Nord LB Facility | 408,484 | 408,484 | 440,456 | 440,456 | |||||||||||||
CBA Facility | 113,208 | 113,208 | 159,802 | 153,390 | |||||||||||||
Term Loan | 443,383 | 449,289 | 465,103 | 478,877 | |||||||||||||
Fly Acquisition II Facility | 121,589 | 128,080 | 126,766 | 134,320 | |||||||||||||
Other Aircraft Secured Borrowings | 716,629 | 718,722 | 487,252 | 488,267 | |||||||||||||
2020 Notes | 369,942 | 380,625 | 291,567 | 305,250 | |||||||||||||
2021 Notes | 319,510 | 321,750 | — | — | |||||||||||||
Derivative asset | 2,067 | 2,067 | 7,395 | 7,395 | |||||||||||||
Derivative liabilities | 23,311 | 23,311 | 24,577 | 24,577 | |||||||||||||
As of December 31, 2014 and 2013, the categorized asset and liabilities measured at fair value on a recurring basis, based upon the lowest level of significant inputs to the valuations are as follows: | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2014: | |||||||||||||||||
Derivative asset | — | $ | 2,067 | — | $ | 2,067 | |||||||||||
Derivative liabilities | — | 23,311 | — | 23,311 | |||||||||||||
December 31, 2013: | |||||||||||||||||
Derivative asset | — | $ | 7,395 | — | $ | 7,395 | |||||||||||
Derivative liabilities | — | 24,577 | — | 24,577 | |||||||||||||
Unaudited_Quarterly_Condensed_
Unaudited Quarterly Condensed Consolidated Financial Information | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Unaudited Quarterly Condensed Consolidated Financial Information [Abstract] | ||||||||||||||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 17. UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION | |||||||||||||
The unaudited quarterly financial statements for the year ended December 31, 2014 are presented below: | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
(Dollars in thousands, except per share data) | 2014 | 2014 | 2014 | 2014 | ||||||||||
Total revenues | $ | 91,319 | $ | 109,514 | $ | 105,543 | $ | 120,288 | ||||||
Net income | $ | 3,563 | $ | 21,674 | $ | 15,361 | $ | 15,479 | ||||||
Earnings per share — Basic | $ | 0.07 | $ | 0.51 | $ | 0.37 | $ | 0.37 | ||||||
Earnings per share — Diluted | $ | 0.07 | $ | 0.51 | $ | 0.37 | $ | 0.37 | ||||||
The unaudited quarterly financial statements for the year ended December 31, 2013 are presented below: | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
(Dollars in thousands, except per share data) | 2013 | 2013 | 2013 | 2013 | ||||||||||
Total revenues | $ | 114,365 | $ | 90,538 | $ | 79,115 | $ | 85,469 | ||||||
Net income | $ | 32,845 | $ | 5,915 | $ | 304 | $ | 13,412 | ||||||
Earnings per share — Basic | $ | 1.15 | $ | 0.20 | $ | 0.00 | $ | 0.32 | ||||||
Earnings per share — Diluted | $ | 1.15 | $ | 0.20 | $ | 0.00 | $ | 0.32 | ||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 18. SUBSEQUENT EVENTS |
On January 14, 2015, the Company declared a dividend of $0.25 per share or approximately $10.4 million, which was paid on February 20, 2015 to shareholders of record at January 30, 2015. | |
In the first quarter of 2015, the Company acquired two Airbus A321-200 aircraft and two Airbus A320-200 aircraft and sold three Boeing 737-800 aircraft. | |
Consolidated_Financial_Informa
Consolidated Financial Information Of Parent | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Consolidated Financial Information of Parent [Abstract] | |||||||||||
Consolidated Financial Information Of Parent | Schedule I — Consolidated financial information of parent | ||||||||||
Fly Leasing Limited | |||||||||||
Condensed Balance Sheets | |||||||||||
AS OF DECEMBER 31, 2014 AND 2013 | |||||||||||
(Dollar amounts in thousands) | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
Assets | |||||||||||
Cash and cash equivalents | $ | 218,538 | $ | 277,267 | |||||||
Receivable from subsidiaries | — | 309 | |||||||||
Notes receivable from subsidiaries | 591,025 | 56,132 | |||||||||
Investments in subsidiaries | 799,009 | 742,668 | |||||||||
Investment in unconsolidated subsidiary | 4,002 | 8,179 | |||||||||
Other assets, net | 4,097 | 1,524 | |||||||||
Total assets | 1,616,671 | 1,086,079 | |||||||||
Liabilities | |||||||||||
Payable to related parties | 917 | 24,051 | |||||||||
Payable to subsidiaries | 140,583 | — | |||||||||
Unsecured borrowings, net | 689,452 | 291,567 | |||||||||
Deferred tax liability, net | 15,951 | 17,955 | |||||||||
Accrued and other liabilities | 10,894 | 3,683 | |||||||||
Total liabilities | 857,797 | 337,256 | |||||||||
Shareholders’ equity | 758,874 | 748,823 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,616,671 | $ | 1,086,079 | |||||||
Fly Leasing Limited | |||||||||||
Condensed Statements of Income | |||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 | |||||||||||
(Dollar amounts in thousands, except per share data) | |||||||||||
Year ended | Year ended | Year ended | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2013 | 2012 | |||||||||
Revenues | |||||||||||
Equity in earnings of subsidiaries | $ | 56,446 | $ | 51,136 | $ | 47,602 | |||||
Equity in earnings from unconsolidated subsidiary | 2,456 | 1,871 | 1,631 | ||||||||
Intercompany management fee income | 16,921 | 15,780 | 16,154 | ||||||||
Intercompany interest income | 22,394 | 1,407 | — | ||||||||
Interest and other income | 215 | 185 | 176 | ||||||||
Total revenues | 98,432 | 70,379 | 65,563 | ||||||||
Expense | |||||||||||
Interest expense | 28,089 | 1,887 | — | ||||||||
Selling, general and administrative | 15,520 | 17,644 | 19,053 | ||||||||
Total expenses | 43,609 | 19,531 | 19,053 | ||||||||
Net income before provision for income taxes | 54,823 | 50,848 | 46,510 | ||||||||
Income tax benefit | -1,254 | -1,628 | -1,159 | ||||||||
Net income | $ | 56,077 | $ | 52,476 | $ | 47,669 | |||||
Weighted average number of shares: | |||||||||||
Basic | 41,405,211 | 34,129,880 | 25,792,932 | ||||||||
Diluted | 41,527,584 | 34,243,456 | 25,961,605 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.32 | $ | 1.51 | $ | 1.81 | |||||
Diluted | $ | 1.32 | $ | 1.50 | $ | 1.80 | |||||
Schedule I — Consolidated financial information of parent | |||||||||||
Fly Leasing Limited | |||||||||||
Condensed Statements of Cash Flows | |||||||||||
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012 | |||||||||||
(Dollar amounts in thousands) | |||||||||||
Year ended | Year ended | Year ended | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2013 | 2012 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Net Income | $ | 56,077 | $ | 52,476 | $ | 47,669 | |||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||
Equity in earnings of subsidiaries | -56,446 | -51,136 | -47,602 | ||||||||
Equity in earnings of unconsolidated subsidiary | -2,456 | -1,871 | -1,631 | ||||||||
Deferred income taxes | -2,004 | -1,654 | -1,203 | ||||||||
Share-based compensation | 30 | 3,177 | 3,635 | ||||||||
Amortization of debt discount and others | 1,537 | 76 | — | ||||||||
Distributions from unconsolidated subsidiary | 5,501 | — | — | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivable/(payable) to subsidiaries | 117,806 | 12,797 | -3,330 | ||||||||
Other assets | -1,672 | 45 | 7 | ||||||||
Payable to related parties | -48 | -1,435 | 1,121 | ||||||||
Accrued and other liabilities | 7,211 | 670 | 1,316 | ||||||||
Net cash flows provided by (used in) operating activities | 125,536 | 13,145 | -18 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Capital contributions to subsidiaries | -5,058 | -256,515 | -21,000 | ||||||||
Distributions received from subsidiaries | 1,925 | 6,000 | 41,462 | ||||||||
Distributions received from unconsolidated subsidiary | 1,132 | — | 458 | ||||||||
Notes receivable from subsidiaries | -628,994 | — | — | ||||||||
Notes payable to subsidiaries | 94,101 | — | — | ||||||||
Net cash flows (used in) provided by investing activities | -536,894 | -250,515 | 20,920 | ||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from issuance of shares, net of fees paid | — | 172,595 | 23,914 | ||||||||
Proceeds from issuance of unsecured borrowings | 396,563 | 291,389 | — | ||||||||
Debt issuance costs | -1,116 | — | — | ||||||||
Dividends | -41,392 | -30,531 | -21,629 | ||||||||
Dividend equivalents | -1,426 | -940 | -884 | ||||||||
Net cash flows provided by financing activities | 352,629 | 432,513 | 1,401 | ||||||||
Net (decrease) increase in cash | -58,729 | 195,143 | 22,303 | ||||||||
Cash at beginning of period | 277,267 | 82,124 | 59,821 | ||||||||
Cash at end of period | $ | 218,538 | $ | 277,267 | $ | 82,124 | |||||
Supplemental Disclosure: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 21,488 | $ | — | $ | — | |||||
Taxes | — | — | — | ||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Summary of Significant Accounting Policies [Abstract] | |
BASIS OF PREPARATION | BASIS OF PREPARATION |
Fly is a holding company that conducts its business through its subsidiaries. The Company directly or indirectly owns all of the common shares of its consolidated subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Fly and all of its subsidiaries. In instances where it is the primary beneficiary, Fly will consolidate a Variable Interest Entity (“VIE”). All intercompany transactions and balances have been eliminated. The consolidated financial statements are stated in U.S. Dollars, which is the principal operating currency of the Company. | |
The Company has one operating and reportable segment which is aircraft leasing. | |
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, accruals 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 and market risks. Credit risk addresses a lessee’s or derivative counterparty’s inability or unwillingness to make contractually required payments. Market risk reflects the change in the value of derivatives and credit facilities due to changes in interest rate spreads or other market factors, including the value of collateral underlying the Company’s credit facilities. | |
Other types of risk encountered by the Company include the following: | |
•The success of the Company is dependent on the performance of the commercial aviation industry. A downturn in the industry could adversely impact the 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. | |
•The Company will require access to the debt and equity markets to refinance its outstanding indebtedness and to grow its business through the acquisition of additional aircraft. | |
•The Company relies and is dependent upon an external servicer to manage its business and service its aircraft portfolio. | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS |
The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | |
RESTRICTED CASH AND CASH EQUIVALENTS | RESTRICTED CASH AND CASH EQUIVALENTS |
The Company’s restricted cash and cash equivalents consist primarily of (i) security deposits and certain maintenance payments received from lessees under the terms of various lease agreements, (ii) a portion of rents collected which may be required to be held as cash collateral under certain of the Company’s debt facilities and (iii) other cash, which may be subject to withdrawal restrictions pursuant to the Company’s credit agreements as further described in Note 7. | |
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, 2014 and 2013, the Company had no allowance for doubtful accounts. The Company had two lessees on non-accrual status during the years ended December 31, 2014 and 2013, and recognized revenue from these lessees when cash was received. | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES | INVESTMENT IN UNCONSOLIDATED SUBSIDIARIES |
Fly has a 57.4% interest in Fly-Z/C Aircraft Holdings LP (“Fly-Z/C LP”). On December 28, 2012, Fly sold its 15.0% interest in BBAM Limited Partnership (“BBAM LP”). | |
Fly accounts for its interest in unconsolidated subsidiaries using the equity method as the Company does not control the entities. 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 subsidiaries’ undistributed earnings and losses, and distributions of dividends and capital. | |
The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiaries, or whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification. | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASES | FLIGHT EQUIPMENT HELD FOR OPERATING LEASE |
Flight equipment held for operating lease are recorded at cost and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of 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. | |
•Planned dispositions of flight equipment prior to the end of its estimated useful life and at a residual value different from that used for newly acquired aircraft. | |
Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, at each reporting period. | |
Major aircraft improvements to be performed by the Company pursuant to any lease agreement are accounted for as lease incentives and are amortized against revenue over the term of the lease, assuming no lease renewals. Lessee specific modifications to the aircraft are capitalized and amortized against revenue over the term of the lease. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination. | |
Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the remaining life of the flight equipment. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. | |
At the time of an aircraft acquisition, the Company evaluates whether the lease acquired with the aircraft is at fair market value by comparing the contractual lease rates to the range of current lease rates of like aircraft. A lease premium is recognized when it is determined that the acquired lease’s terms are above market value; lease discounts are recognized when it is determined that the acquired lease’s terms are below fair market value. Lease discounts are recorded in other liabilities and accreted as additional rental revenue on a straight-line basis over the lease term. Lease premiums are recorded in other assets and amortized against rental revenue on a straight-line basis over the lease term. | |
IMPAIRMENT OF FLIGHT EQUIPMENT | IMPAIRMENT OF FLIGHT EQUIPMENT |
The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company’s evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft, adverse changes in market conditions for specific aircraft types, third party appraisals of specific aircraft, published values for similar aircraft, any occurrences of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of our aircraft. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value. See Note 16 – Fair Value Measurements. | |
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. | |
The preparation of these impairment analyses requires 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 date in the future, estimated downtime between re-leasing events and the amount of re-leasing costs. For the year ended December 31, 2014, the Company did not recognize any impairment losses. For the year ended December 31, 2013, the Company recognized an impairment loss of $8.8 million in respect of an Airbus A319-100 aircraft manufactured in 2000. This aircraft was sold by the Company during the third quarter of 2014. For the year ended December 31, 2012, the Company recognized an impairment loss of $11.4 million in respect of two Boeing 737-500 aircraft manufactured in 1992 and one Airbus A320-200 aircraft manufactured in 2002. These three aircraft were sold during the first quarter of 2013. | |
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 hedge accounting provisions, changes in the fair value of the item being hedged are recognized into earnings in the same period and in the same income statement line as the change in the fair value of the derivative instrument. On the date that the Company enters into a derivative contract, the Company formally documents all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for undertaking each hedge transaction. | |
Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability. Changes in the fair value of a derivative that is designated and qualifies as an effective cash flow hedge are recorded in accumulated other comprehensive income, net of tax, until earnings are affected by the variability of cash flows of the hedged item. Any derivative gains and losses that are not effective in hedging the variability of expected cash flows of the hedged item or that do not qualify for hedge accounting treatment are recognized directly into income. | |
At the hedge’s inception and at least quarterly thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair market value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction. | |
OTHER ASSETS | OTHER ASSETS |
Other assets consist primarily of debt issuance costs, unamortized lease premiums, initial direct lease costs and other miscellaneous receivables. The Company capitalizes costs incurred in arranging financing as debt issuance costs. Debt issuance costs are amortized to interest expense using the effective interest method over the terms of the credit facilities. Lease premiums are amortized into operating lease income over the lease term. | |
SECURITY DEPOSITS | SECURITY DEPOSITS |
In the normal course of leasing aircraft to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease. | |
MAINTENANCE PAYMENT LIABILITY | MAINTENANCE PAYMENT LIABILITY |
The Company’s flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly’s operating leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration requirements 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. 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. | |
In some leases, 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. Such payments made by the Company for minor maintenance, repairs and re-leasing of aircraft are expensed as incurred. | |
Maintenance payment liability balances at the end of a lease or any amount received as part of a redelivery adjustment are recorded as lease revenue at lease termination, including early termination upon a default. 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, they are deferred and recognized in the period in which the recognition criteria are met. Rental income from aircraft is recognized on a straight-line basis over the initial term of the respective lease. The operating lease agreements generally do not provide for purchase options, however, the leases may allow the lessee the option to extend the lease for an additional term. Contingent rents are recognized as revenue when the contingency is resolved. Revenue is not recognized when collection is not reasonably assured. | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION |
The Company has a 2010 Omnibus Incentive Plan (“2010 Plan”) which permitted 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. In May 2012, the Company made an additional aggregate grant of 300,000 SARs and RSUs to certain employees of BBAM LP, who provide services to the Company pursuant to management and servicing agreements. As of each of December 31, 2014 and 2013, the Company had made grants aggregating 1,500,000 under the 2010 Plan. There are no shares remaining available for grants under the 2010 Plan. | |
In accordance with GAAP, compensation expense associated with grants to employees are valued at the grant date and amortized on a straight-line basis over the service period. Grants to non-employees are initially measured at grant date, and then re-measured at each interim reporting period until the awards are vested. Determining the appropriate fair value model and calculation of the fair value of stock-based awards requires judgment, including estimating stock price volatility, forfeitures and expected grant life. | |
TAXES | TAXES |
The Company provides for income taxes by tax jurisdiction (see Note 10). 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 which management ultimately expects to be more-likely-than-not realized. | |
The Company applies a recognition threshold of more-likely-than-not to be sustained in the examination of tax uncertainty in income taxes. Measurement of the tax uncertainty occurs if the recognition threshold has been met. The Company has elected to classify any interest on unpaid income taxes and penalties as a component of the provision for income taxes. No interest on unpaid income taxes and penalties were incurred during the years ended December 31, 2014, 2013 and 2012. | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS |
In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. ASU 2013-11 requires an unrecognized tax benefit, or a portion of an unrecognized tax benefit, to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company adopted the provisions of ASU 2013-11 in 2014. The adoption of the standard did not have a material effect on the Company’s consolidated financial condition, result of operations or cash flows. | |
In April 2014, FASB issued ASU 2018-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360), an accounting standard update that changed the criteria for classifying and reporting discontinued operations while enhancing disclosures. Under the new guidance, only disposals of a component of an entity, or a group of components of an entity, representing a strategic shift in operations should be presented as discontinued operations. Such a strategic shift should have, or will have, a major effect on the organization’s operations and financial results when the component or group of components meets the criteria to be classified as held for sale or when the component or group of components is disposed of by sale or other than by sale. In addition, the new guidance requires additional disclosures about discontinued operations and the disposal of an individually significant component of an entity that does not meet the criteria for discontinued operations. The Company adopted the standard prospectively commencing in 2014. The Company does not expect its aircraft dispositions to qualify as discontinued operations. | |
In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), their final standard on revenue from contracts with customers. The guidance specifically notes that lease contracts with customers are a scope exception. ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. ASU 2014-09 is effective for annual reporting periods (including interim periods), beginning after December 15, 2016, and early adoption is not permitted. The Company will adopt the guidance effective January 1, 2017. The Company anticipates that the adoption of the standard will not have a material effect on i consolidated financial condition, result of operations or cash flows. | |
In August 2014, FASB issued ASU 2014-15, update to Accounting Standards Codification (ASC) subtopic 250-40, Presentation of Financial Statements-Going Concern. The amendments require management to assess an entity’s ability to continue as a going concern by incorporating and expanding upon certain principals that are currently in the U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term “substantial doubt”, (2) require an evaluation every reporting period including interim periods, (3) provide principals for considering the mitigating effect of management’s plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management’s plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 is effective for annual reporting periods ending after December 15, 2016, and early adoption is permitted. The Company will adopt the guidance effective January 1, 2017. The Company is currently assessing the impact on its consolidated financial statements and notes to its consolidated financial statements. | |
Flight_Equipment_Held_for_Oper1
Flight Equipment Held for Operating Leases (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Flight Equipment Held for Operating Lease [Abstract] | ||||||||||||||||||||
Flight equipment held for operating leases | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Cost | $ | 4,428,783 | $ | 3,597,330 | ||||||||||||||||
Accumulated depreciation | -723,376 | -562,418 | ||||||||||||||||||
Flight equipment held for operating lease, net | 3,705,407 | 3,034,912 | ||||||||||||||||||
Summary of net book value of flight equipment held for operating leases by geographic region | ||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Europe: | ||||||||||||||||||||
United Kingdom | $ | 397,761 | 11 | % | $ | 347,627 | 11 | % | ||||||||||||
Turkey | 296,574 | 8 | % | 191,527 | 6 | % | ||||||||||||||
Other | 653,469 | 17 | % | 612,137 | 20 | % | ||||||||||||||
Europe — Total | 1,347,804 | 36 | % | 1,151,291 | 37 | % | ||||||||||||||
Asia and South Pacific: | ||||||||||||||||||||
Philippines | 450,090 | 12 | % | — | — | |||||||||||||||
China | 301,137 | 8 | % | 353,868 | 12 | % | ||||||||||||||
India | 150,964 | 4 | % | 120,771 | 4 | % | ||||||||||||||
Other | 459,631 | 13 | % | 394,627 | 13 | % | ||||||||||||||
Asia and South Pacific — Total | 1,361,822 | 37 | % | 869,266 | 29 | % | ||||||||||||||
Mexico, South and Central America: | ||||||||||||||||||||
Chile | 247,165 | 7 | % | 255,832 | 9 | % | ||||||||||||||
Other | 185,220 | 5 | % | 226,336 | 7 | % | ||||||||||||||
Mexico, South and Central America — Total | 432,385 | 12 | % | 482,168 | 16 | % | ||||||||||||||
North America: | ||||||||||||||||||||
United States | 305,999 | 8 | % | 291,724 | 10 | % | ||||||||||||||
Other | 60,780 | 2 | % | 33,162 | 1 | % | ||||||||||||||
North America — Total | 366,779 | 10 | % | 324,886 | 11 | % | ||||||||||||||
Middle East and Africa — Total | 112,001 | 3 | % | 189,682 | 6 | % | ||||||||||||||
Off-Lease — Total | 84,616 | 2 | % | 17,619 | 1 | % | ||||||||||||||
Total flight equipment held for operating lease, net | $ | 3,705,407 | 100 | % | $ | 3,034,912 | 100 | % | ||||||||||||
Summary of distribution of operating lease revenue by geographic region | ||||||||||||||||||||
Year ended | Year ended | Year ended | ||||||||||||||||||
December 31, | December 31, | December 31, | ||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Europe: | ||||||||||||||||||||
United Kingdom | $ | 46,281 | 11 | % | $ | 48,507 | 13 | % | $ | 45,916 | 12 | % | ||||||||
Turkey | 27,069 | 7 | % | 14,703 | 4 | % | 12,319 | 3 | % | |||||||||||
Other | 82,677 | 21 | % | 89,362 | 26 | % | 112,093 | 30 | % | |||||||||||
Europe — Total | 156,027 | 39 | % | 152,572 | 43 | % | 170,328 | 45 | % | |||||||||||
Asia and South Pacific: | ||||||||||||||||||||
Philippines | 12,947 | 3 | % | — | — | — | — | |||||||||||||
China | 47,049 | 12 | % | 41,332 | 12 | % | 36,918 | 10 | % | |||||||||||
India | 32,675 | 8 | % | 21,894 | 6 | % | 39,312 | 10 | % | |||||||||||
Other | 43,959 | 11 | % | 32,841 | 9 | % | 34,506 | 10 | % | |||||||||||
Asia and South Pacific — Total | 136,630 | 34 | % | 96,067 | 27 | % | 110,736 | 30 | % | |||||||||||
Mexico, South and Central America: | ||||||||||||||||||||
Chile | 28,116 | 7 | % | 10,055 | 3 | % | — | — | ||||||||||||
Other | 21,733 | 5 | % | 38,034 | 10 | % | 31,473 | 8 | % | |||||||||||
Mexico, South and Central America — Total | 49,849 | 12 | % | 48,089 | 13 | % | 31,473 | 8 | % | |||||||||||
North America: | ||||||||||||||||||||
United States | 41,531 | 10 | % | 40,482 | 11 | % | 41,311 | 11 | % | |||||||||||
Other | 3,429 | 1 | % | 3,891 | 1 | % | 3,891 | 1 | % | |||||||||||
North America — Total | 44,960 | 11 | % | 44,373 | 12 | % | 45,202 | 12 | % | |||||||||||
Middle East and Africa — Total | 17,202 | 4 | % | 18,308 | 5 | % | 18,698 | 5 | % | |||||||||||
Total Operating Lease Revenue | $ | 404,668 | 100 | % | $ | 359,409 | 100 | % | $ | 376,437 | 100 | % | ||||||||
Schedule of contracted future minimum rental payments due under non-cancellable operating leases | ||||||||||||||||||||
Year ending December 31, | (Dollars in thousands) | |||||||||||||||||||
2015 | $ | 395,801 | ||||||||||||||||||
2016 | 339,865 | |||||||||||||||||||
2017 | 306,923 | |||||||||||||||||||
2018 | 244,844 | |||||||||||||||||||
2019 | 180,155 | |||||||||||||||||||
Thereafter | 612,212 | |||||||||||||||||||
Future minimum rental payments under operating leases | $ | 2,079,800 | ||||||||||||||||||
Summary of lease incentive amortization | ||||||||||||||||||||
Year ending December 31, | (Dollars in thousands) | |||||||||||||||||||
2015 | $ | 19,548 | ||||||||||||||||||
2016 | 20,684 | |||||||||||||||||||
2017 | 19,630 | |||||||||||||||||||
2018 | 14,903 | |||||||||||||||||||
2019 | 6,851 | |||||||||||||||||||
Thereafter | 4,031 | |||||||||||||||||||
Future amortization of lease incentives | $ | 85,647 | ||||||||||||||||||
Other_Assets_Tables
Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Assets [Abstract] | |||||||||
Principal components of other assets | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(Dollars in thousands) | |||||||||
Loan issuance costs, net | $ | 21,928 | $ | 25,593 | |||||
Lease costs, net | 3,289 | 2,288 | |||||||
Unamortized lease premiums | 1,861 | 4,949 | |||||||
Other assets | 4,530 | 6,820 | |||||||
Total other assets | $ | 31,608 | $ | 39,650 | |||||
Unsecured_Borrowings_Tables
Unsecured Borrowings (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Unsecured Borrowings [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Schedule Of Unsecured Borrowings | |||||||||
Balance as of | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(in thousands) | |||||||||
Outstanding principal balance: | |||||||||
2020 Notes | $ | 375,000 | $ | 300,000 | |||||
2021 Notes | 325,000 | — | |||||||
Unamortized discount | -10,548 | -8,433 | |||||||
Unsecured borrowings, net | $ | 689,452 | $ | 291,567 | |||||
2020 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Schedule Of Unsecured Debt Redemption Prices | |||||||||
Redeemed during the 12-month period commencing on December 15 of the years set forth below: | Redemption Price | ||||||||
2016 | 105.063% | ||||||||
2017 | 103.375% | ||||||||
2018 | 101.688% | ||||||||
2019 and thereafter | 100.000% | ||||||||
2021 Notes [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Schedule Of Unsecured Debt Redemption Prices | |||||||||
Redeemed during the 12-month period commencing on October 15 of the years set forth below: | Redemption Price | ||||||||
2017 | 104.781% | ||||||||
2018 | 103.188% | ||||||||
2019 | 101.594% | ||||||||
2020 and thereafter | 100.000% | ||||||||
Secured_Borrowings_Tables
Secured Borrowings (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Secured Borrowings Balance, Net Of Unamortized Debt Discounts | |||||||||||||||||
Weighted average | |||||||||||||||||
Net carrying value as of | interest rate(1) as of | ||||||||||||||||
December 31, | December 31, | December 31, | December 31, | Maturity | |||||||||||||
2014 | 2013 | 2014 | 2013 | date | |||||||||||||
(in thousands) | |||||||||||||||||
Securitization Notes | $ | 532,035 | $ | 575,326 | 3.04 | % | 3.63 | % | Nov-33 | ||||||||
Nord LB Facility | 408,484 | 440,456 | 4.15 | % | 4.15 | % | Nov-18 | ||||||||||
CBA Facility | 113,208 | 159,802 | 4.63 | % | 4.91 | % | June 2018 – October 2020 | ||||||||||
Term Loan | 443,383 | 465,103 | 5.19 | % | 4.50 | % | Aug-19 | ||||||||||
Fly Acquisition II Facility | 121,589 | 126,766 | 4.15 | % | 4.16 | % | Jul-18 | ||||||||||
Other Aircraft Secured Borrowings | 716,629 | 487,252 | 3.89 | % | 4.71 | % | December 2015 – December 2025 | ||||||||||
Total | $ | 2,335,328 | $ | 2,254,705 | |||||||||||||
____________ | |||||||||||||||||
(1) Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. | |||||||||||||||||
Schedule Of Future Minimum Principal Payments | |||||||||||||||||
Year ending December 31, | (Dollars in thousands) | ||||||||||||||||
2015 | $ | 242,795 | |||||||||||||||
2016 | 207,413 | ||||||||||||||||
2017 | 194,513 | ||||||||||||||||
2018 | 532,875 | ||||||||||||||||
2019 | 457,788 | ||||||||||||||||
Thereafter | 738,301 | ||||||||||||||||
Future minimum principal payments due | $ | 2,373,685 | |||||||||||||||
Nord LB Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Schedule Of Borrowings | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance | $ | 416,249 | $ | 452,371 | |||||||||||||
Unamortized debt discount | -7,765 | -11,915 | |||||||||||||||
Nord LB Facility balance, net | $ | 408,484 | $ | 440,456 | |||||||||||||
CBA Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Schedule Of Borrowings | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance: | |||||||||||||||||
Senior tranches | $ | — | $ | 30,512 | |||||||||||||
Junior tranches | — | 5,900 | |||||||||||||||
Tranche A | 65,462 | 87,925 | |||||||||||||||
Tranche B | 49,350 | 37,486 | |||||||||||||||
Total outstanding principal balance | 114,812 | 161,823 | |||||||||||||||
Unamortized debt discount | -1,604 | -2,021 | |||||||||||||||
CBA Facility balance, net | $ | 113,208 | $ | 159,802 | |||||||||||||
Weighted Average Interest Rates On Senior And Junior Tranche Loans, Excluding Debt Discount Amortization | |||||||||||||||||
As of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
Fixed rate loans: | |||||||||||||||||
Senior tranches | — | 5.62 | % | ||||||||||||||
Junior tranches | — | 7.91 | % | ||||||||||||||
Tranche A | 5.52 | % | 6.53 | % | |||||||||||||
Tranche B | 4.47 | % | 4.58 | % | |||||||||||||
Variable rate loans: | |||||||||||||||||
Tranche A | 2.66 | % | 2.66 | % | |||||||||||||
Tranche B | — | 2.66 | % | ||||||||||||||
Facility weighted average interest rate | 4.63 | % | 4.91 | % | |||||||||||||
Fly Acquisition II Facility [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Schedule Of Borrowings | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance | $ | 121,589 | $ | 126,766 | |||||||||||||
Class G One Notes Payable [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Schedule Of Borrowings | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance: | |||||||||||||||||
Notes issued | $ | 546,465 | $ | 592,903 | |||||||||||||
Unamortized discount | -14,430 | -17,577 | |||||||||||||||
Notes payable, net | $ | 532,035 | $ | 575,326 | |||||||||||||
Term Loan [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Schedule Of Borrowings | |||||||||||||||||
Balance as of | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance | $ | 451,547 | $ | 475,313 | |||||||||||||
Unamortized debt discount | -8,164 | -10,210 | |||||||||||||||
Term Loan balance, net | $ | 443,383 | $ | 465,103 | |||||||||||||
Other Aircraft Secured Borrowings [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Schedule Of Borrowings | Balance as of | Weighted Average | |||||||||||||||
December 31, | December 31, | Interest | |||||||||||||||
2014 | 2013 | Rates(1) | Maturity Date | ||||||||||||||
(in thousands) | |||||||||||||||||
Outstanding principal balance | $ | 723,023 | $ | 490,106 | 3.89% | December 2015 – December 2025 | |||||||||||
Unamortized debt discount | -6,394 | -2,854 | |||||||||||||||
Other aircraft secured borrowings balance, net | $ | 716,629 | $ | 487,252 | |||||||||||||
(1)Represents the weighted average contracted interest rate as of December 31, 2014. | |||||||||||||||||
Derivatives_Tables
Derivatives (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Derivatives [Abstract] | ||||||||||||||||||||||||||||||||
Schedule Of Designated Instruments Classified As Derivative Assets | ||||||||||||||||||||||||||||||||
Fair | Adjusted | Gain | ||||||||||||||||||||||||||||||
Swap | Market | Fair Market | Recognized in | Gain | ||||||||||||||||||||||||||||
Hedge | Contract | Value of | Credit | Value of | Deferred | Accumulated | Recognized | |||||||||||||||||||||||||
Interest | Notional | Derivative | Risk | Derivative | Tax | Comprehensive | into | |||||||||||||||||||||||||
Type | Quantity | Maturity Dates | Rates | Amount | Asset | Adjustment | Asset | Expense | Loss | Earnings | ||||||||||||||||||||||
Interest rate swap contracts | 18 | 10/15/17-11/14/18 | 0.89% - 1.22% | $ | 376,619 | $ | 2,182 | $ | 36 | $ | 2,218 | $ | -273 | $ | 1,914 | $ | 30 | |||||||||||||||
Accrued interest | — | -151 | — | -151 | — | — | — | |||||||||||||||||||||||||
Total – designated derivative assets | 18 | $ | 376,619 | $ | 2,031 | $ | 36 | $ | 2,067 | $ | -273 | $ | 1,914 | $ | 30 | |||||||||||||||||
Schedule Of Designated Instruments Classified As Derivative Liabilities | ||||||||||||||||||||||||||||||||
Fair | Adjusted | Loss | ||||||||||||||||||||||||||||||
Swap | Market | Fair Market | Recognized in | Loss | ||||||||||||||||||||||||||||
Hedge | Contract | Value of | Credit | Value of | Deferred | Accumulated | Recognized | |||||||||||||||||||||||||
Interest | Notional | Derivative | Risk | Derivative | Tax | Comprehensive | into | |||||||||||||||||||||||||
Type | Quantity | Maturity Dates | Rates | Amount | Liability | Adjustment | Liability | Benefit | Loss | Earnings | ||||||||||||||||||||||
Interest rate swap contracts | 18 | 1/14/15-9/27/25 | 1.00% - 6.22% | $ | 1,014,262 | $ | -23,618 | $ | 1,459 | $ | -22,159 | $ | 2,757 | $ | -19,005 | $ | -103 | |||||||||||||||
Accrued interest | — | -1,152 | — | -1,152 | — | — | — | |||||||||||||||||||||||||
Total – designated derivative liabilities | 18 | $ | 1,014,262 | $ | -24,770 | $ | 1,459 | $ | -23,311 | $ | 2,757 | $ | -19,005 | $ | -103 | |||||||||||||||||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Share Based Compensation [Abstract] | ||||||||||
Summary of the Company's SAR activity | ||||||||||
Weighted average | ||||||||||
remaining | ||||||||||
Number of | Weighted average | contractual | ||||||||
shares | exercise price | life (in years) | ||||||||
Outstanding at January 1, 2012 | 708,840 | $ | 12.85 | 8.8 | ||||||
SARs granted | 183,164 | 12.28 | — | |||||||
SARs exercised | — | — | — | |||||||
SARs canceled or forfeited | — | — | — | |||||||
Outstanding at December 31, 2012 | 892,004 | 12.74 | 8.1 | |||||||
SARs granted | — | — | — | |||||||
SARs exercised | -3,370 | 12.42 | — | |||||||
SARs canceled or forfeited | — | — | — | |||||||
Outstanding at December 31, 2013 | 888,634 | $ | 12.74 | 7.1 | ||||||
SARs granted | — | — | — | |||||||
SARs exercised | -58,519 | 12.80 | — | |||||||
SARs canceled or forfeited | -8,998 | 12.28 | — | |||||||
Outstanding at December 31, 2014 | 821,117 | 12.74 | 6.1 | |||||||
Exercisable at December 31, 2014 | 764,558 | $ | 12.77 | |||||||
Summary of the Company's RSU activity | ||||||||||
Weighted average | ||||||||||
Number of | grant date | |||||||||
shares | fair value | |||||||||
Outstanding and unvested at January 1, 2012 | 330,896 | $ | 13.09 | |||||||
RSUs granted | 116,836 | 12.28 | ||||||||
RSUs vested | -163,718 | 12.87 | ||||||||
RSUs canceled or forfeited | — | — | ||||||||
Outstanding and unvested at December 31, 2012 | 284,014 | 12.88 | ||||||||
RSUs granted | — | — | ||||||||
RSUs vested | -122,534 | 12.98 | ||||||||
RSUs canceled or forfeited | — | — | ||||||||
Outstanding and unvested at December 31, 2013 | 161,480 | $ | 12.81 | |||||||
RSUs granted | — | — | ||||||||
RSUs vested | -119,666 | 12.99 | ||||||||
RSUs canceled or forfeited | -5,739 | 12.28 | ||||||||
Outstanding and unvested at December 31, 2014 | 36,075 | $ | 12.28 | |||||||
Schedule Of Valuation Assumptions | ||||||||||
Year ended | Year ended | Year ended | ||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | ||||||||
Risk-free interest rate | 0.90% –2.32% | 0.90% – 2.51% | 0.90% – 2.73% | |||||||
Volatility | 48% – 57% | 51% – 63% | 54% – 70% | |||||||
Expected life | 6 – 8 years | 6 – 8 years | 6 – 10 years | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Income Taxes [Abstract] | |||||||||||
Income tax expense by jurisdiction | |||||||||||
Year ended | Year ended | Year ended | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in thousands) | |||||||||||
Current tax (benefit) expense: | |||||||||||
Ireland | $ | — | $ | 400 | $ | 10,201 | |||||
Luxembourg | 210 | 175 | 26 | ||||||||
United States | 2 | -1,131 | 1,783 | ||||||||
Other | 48 | 20 | 32 | ||||||||
Current tax expense (benefit) — total | 260 | -536 | 12,042 | ||||||||
Deferred tax expense (benefit): | |||||||||||
Ireland | 7,448 | 3,470 | -10,118 | ||||||||
Australia | 573 | 2,738 | 2,101 | ||||||||
Other | -18 | -13 | -163 | ||||||||
Deferred tax expense (benefit) — total | 8,003 | 6,195 | -8,180 | ||||||||
Total income tax expense | $ | 8,263 | $ | 5,659 | $ | 3,862 | |||||
Components of the Company's net deferred tax asset | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||
(Dollars in thousands) | |||||||||||
Deferred tax asset: | |||||||||||
Net operating loss carry forwards | $ | 220,247 | $ | 193,006 | |||||||
Net unrealized losses on derivative instruments | 2,483 | 1,932 | |||||||||
Basis difference on acquisition of GAAM Australian assets | 9,597 | 9,597 | |||||||||
Other | 309 | 202 | |||||||||
Valuation allowance | -22,268 | -19,412 | |||||||||
Total deferred tax asset | 210,368 | 185,325 | |||||||||
Deferred tax liability: | |||||||||||
Excess of tax depreciation over book depreciation | -207,071 | -171,969 | |||||||||
Book/tax differences identified in connection with GAAM Portfolio acquisition: | |||||||||||
Debt | -1,270 | -1,859 | |||||||||
Security deposits and maintenance reserve liability | -350 | -388 | |||||||||
Lease premiums, net | -14 | -142 | |||||||||
Net earnings of non-European Union member subsidiaries | -17,952 | -18,713 | |||||||||
Total deferred tax liability | -226,657 | -193,071 | |||||||||
Deferred tax liability, net | $ | -16,289 | $ | -7,746 | |||||||
Reconciliation of the income tax expense (benefit) | |||||||||||
Year ended | Year ended | Year ended | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2013 | 2012 | |||||||||
(Percentage) | |||||||||||
Irish statutory corporate tax rate on trading income | 12.5 | % | 12.5 | % | 12.5 | % | |||||
Valuation allowances | 4.4 | % | 1.6 | % | — | ||||||
Equity earnings from Fly-Z/C LP | -0.5 | % | -0.4 | % | -0.4 | % | |||||
Tax on investment in BBAM LP | — | — | 1.3 | % | |||||||
Tax impact of repurchased and resold Notes | -0.6 | % | -0.8 | % | -1.2 | % | |||||
Share-based compensation | — | 0.7 | % | 0.9 | % | ||||||
Tax on gain on sale of investment in BBAM LP | — | — | 9.1 | % | |||||||
Deductible intra-group interest | — | -2.2 | % | -12.9 | % | ||||||
Foreign tax rate differentials | -4.7 | % | 3.3 | % | -2.4 | % | |||||
True-up of prior year tax provision | 0.3 | % | 0.2 | % | 1.1 | % | |||||
Non-taxable gain on debt extinguishment | -1.3 | % | -5.1 | % | — | ||||||
Non-deductible interest expense, transaction fees and expenses | 2.7 | % | 0.1 | % | — | ||||||
Other | — | -0.2 | % | -0.5 | % | ||||||
Income tax expense | 12.8 | % | 9.7 | % | 7.5 | % | |||||
Other_Liabilities_Tables
Other Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Other Liabilities [Abstract] | |||||||||
Principal Components Of The Company's Other Liabilities | |||||||||
31-Dec-14 | 31-Dec-13 | ||||||||
(Dollars in thousands) | |||||||||
Net current tax provision | $ | 581 | $ | 1,517 | |||||
Lease incentive obligation | 25,503 | 8,534 | |||||||
Deferred rent payable | 11,461 | 9,169 | |||||||
Refundable deposits | 4,079 | 1,045 | |||||||
Other | 266 | 258 | |||||||
Total other liabilities | $ | 41,890 | $ | 20,523 | |||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Earnings Per Share [Abstract] | |||||||||||
Calculation Of Basic And Diluted Earnings Per Share | |||||||||||
Year ended | Year ended | Year ended | |||||||||
December 31, | December 31, | December 31, | |||||||||
2014 | 2013 | 2012 | |||||||||
(Dollars in thousands, except share and per share data) | |||||||||||
Numerator | |||||||||||
Net income | $ | 56,077 | $ | 52,476 | $ | 47,669 | |||||
Less: Dividend equivalents paid to vested RSUs and SARs | -1,426 | -940 | -884 | ||||||||
Net income available to common shareholders | $ | 54,651 | $ | 51,536 | $ | 46,785 | |||||
Denominator | |||||||||||
Weighted average shares outstanding-Basic | 41,405,211 | 34,129,880 | 25,792,932 | ||||||||
Dilutive common equivalent shares: | |||||||||||
RSUs | 48,674 | 102,914 | 164,998 | ||||||||
SARs | 73,699 | 10,662 | 3,675 | ||||||||
Weighted average shares outstanding-Diluted | 41,527,584 | 34,243,456 | 25,961,605 | ||||||||
Earnings per share: | |||||||||||
Basic | $ | 1.32 | $ | 1.51 | $ | 1.81 | |||||
Diluted | $ | 1.32 | $ | 1.50 | $ | 1.80 | |||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||||||||||
Minimum Long-Term Contractual Obligations With BBAM LP, Excluding Rent Fees | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Fixed base fee payments(1) | $ | 2,029 | $ | 2,029 | $ | 2,029 | $ | 2,029 | $ | 2,029 | $ | 10,479 | $ | 20,624 | |||||||||
Fixed administrative agency fee payments due by B&B Air Funding(1) | 845 | 845 | 845 | 845 | 845 | 4,368 | 8,593 | ||||||||||||||||
Fixed administrative agency fee payments due by Fly Acquisition II | 168 | 168 | 168 | 109 | 48 | 236 | 897 | ||||||||||||||||
Fixed administrative services fee due by Fly Peridot | 418 | 333 | 299 | 240 | 158 | 91 | 1,539 | ||||||||||||||||
Fixed administrative agency fee payments due by other subsidiaries | 708 | 632 | 566 | 436 | 326 | 1,080 | 3,748 | ||||||||||||||||
Fixed payments for Management Expenses(1)(2) | 10,713 | 10,713 | 10,713 | 10,713 | 10,713 | 40,498 | 94,063 | ||||||||||||||||
Total | $ | 14,881 | $ | 14,720 | $ | 14,620 | $ | 14,372 | $ | 14,119 | $ | 56,752 | $ | 129,464 | |||||||||
(1)Amounts in the table assume Consumer Price Index (“CPI”) rates in effect as of December 31, 2014 remain constant in future periods. | |||||||||||||||||||||||
(2)The initial term of the Management Agreement is for ten years from December 28, 2012, with an automatic five year renewal period. The agreement provides for an early termination fee of $8.4 million, subject to an annual CPI adjustment. The table assumes termination of the agreement after the initial ten year term and payment of the applicable termination fee. | |||||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||
Carrying Amounts And Fair Values Of Financial Instruments | |||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Securitization Notes | $ | 532,035 | $ | 467,228 | $ | 575,326 | $ | 498,038 | |||||||||
Nord LB Facility | 408,484 | 408,484 | 440,456 | 440,456 | |||||||||||||
CBA Facility | 113,208 | 113,208 | 159,802 | 153,390 | |||||||||||||
Term Loan | 443,383 | 449,289 | 465,103 | 478,877 | |||||||||||||
Fly Acquisition II Facility | 121,589 | 128,080 | 126,766 | 134,320 | |||||||||||||
Other Aircraft Secured Borrowings | 716,629 | 718,722 | 487,252 | 488,267 | |||||||||||||
2020 Notes | 369,942 | 380,625 | 291,567 | 305,250 | |||||||||||||
2021 Notes | 319,510 | 321,750 | — | — | |||||||||||||
Derivative asset | 2,067 | 2,067 | 7,395 | 7,395 | |||||||||||||
Derivative liabilities | 23,311 | 23,311 | 24,577 | 24,577 | |||||||||||||
Asset And Liabilities Measured At Fair Value On A Recurring Basis | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
(Dollars in thousands) | |||||||||||||||||
December 31, 2014: | |||||||||||||||||
Derivative asset | — | $ | 2,067 | — | $ | 2,067 | |||||||||||
Derivative liabilities | — | 23,311 | — | 23,311 | |||||||||||||
December 31, 2013: | |||||||||||||||||
Derivative asset | — | $ | 7,395 | — | $ | 7,395 | |||||||||||
Derivative liabilities | — | 24,577 | — | 24,577 | |||||||||||||
Unaudited_Quarterly_Condensed_1
Unaudited Quarterly Condensed Consolidated Financial Information (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Unaudited Quarterly Condensed Consolidated Financial Information [Abstract] | ||||||||||||||
Unaudited quarterly financial statements | March 31, | June 30, | September 30, | December 31, | ||||||||||
(Dollars in thousands, except per share data) | 2014 | 2014 | 2014 | 2014 | ||||||||||
Total revenues | $ | 91,319 | $ | 109,514 | $ | 105,543 | $ | 120,288 | ||||||
Net income | $ | 3,563 | $ | 21,674 | $ | 15,361 | $ | 15,479 | ||||||
Earnings per share — Basic | $ | 0.07 | $ | 0.51 | $ | 0.37 | $ | 0.37 | ||||||
Earnings per share — Diluted | $ | 0.07 | $ | 0.51 | $ | 0.37 | $ | 0.37 | ||||||
The unaudited quarterly financial statements for the year ended December 31, 2013 are presented below: | ||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||
(Dollars in thousands, except per share data) | 2013 | 2013 | 2013 | 2013 | ||||||||||
Total revenues | $ | 114,365 | $ | 90,538 | $ | 79,115 | $ | 85,469 | ||||||
Net income | $ | 32,845 | $ | 5,915 | $ | 304 | $ | 13,412 | ||||||
Earnings per share — Basic | $ | 1.15 | $ | 0.20 | $ | 0.00 | $ | 0.32 | ||||||
Earnings per share — Diluted | $ | 1.15 | $ | 0.20 | $ | 0.00 | $ | 0.32 | ||||||
Organization_Narrative_Details
Organization (Narrative) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Organization [Abstract] | ||
Manager shares, shares issued | 100 | 100 |
Manager shares, par value | $0.00 | $0.00 |
Consideration for Manager shares | $0 | |
Manager shares right to appoint directors description | not more than 3/7th of the number of directors | |
Manager share voting rights | no voting rights |
Recovered_Sheet1
Summary Of Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 31-May-12 | Apr. 29, 2010 | Dec. 28, 2012 |
item | item | item | |||||
segment | |||||||
Summary of Significant Accounting Policies (Narrative) [Abstract] | |||||||
Number of operating and reportable segment | 1 | ||||||
Maturity period of highly liquid investments | 3 months | ||||||
Allowances for doubtful accounts | $0 | $0 | |||||
Number of aircraft sold | 9 | 8 | 10 | ||||
Aggregate initial grants | 116,836 | ||||||
Interest on unpaid income taxes and penalties | $0 | $0 | |||||
2010 Plan [Member] | |||||||
Summary of Significant Accounting Policies (Narrative) [Abstract] | |||||||
Additional aggregate grants of SAR and RSU | 300,000 | ||||||
Aggregate initial grants | 1,500,000 | 1,500,000 | |||||
Issue of shares | 1,500,000 | ||||||
A-320-200 [Member] | |||||||
Summary of Significant Accounting Policies (Narrative) [Abstract] | |||||||
Number of aircraft for which impairment loss recognized | 1 | ||||||
B-737-500 [Member] | |||||||
Summary of Significant Accounting Policies (Narrative) [Abstract] | |||||||
Number of aircraft for which impairment loss recognized | 2 | ||||||
B-737-500 And A320-200 [Member] | |||||||
Summary of Significant Accounting Policies (Narrative) [Abstract] | |||||||
Number of aircraft sold | 3 | ||||||
Fly ZC Aircraft Holdings LP [Member] | |||||||
Summary of Significant Accounting Policies (Narrative) [Abstract] | |||||||
Percentage of limited partnership interest | 57.40% | ||||||
BBAM Limited Partnership [Member] | |||||||
Summary of Significant Accounting Policies (Narrative) [Abstract] | |||||||
Percentage of limited partnership interest | 15.00% | ||||||
Company sold its interest in BBAM LP, percentage | 15.00% | ||||||
Flight Equipment Held for Operating Leases [Member] | |||||||
Summary of Significant Accounting Policies (Narrative) [Abstract] | |||||||
Useful life | 25 years | ||||||
Percentage of residual values | 15.00% | ||||||
Total useful life | 25 years |
Flight_Equipment_Held_for_Oper2
Flight Equipment Held for Operating Lease (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
Nov. 08, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Dec. 31, 2011 | |
item | country | item | item | item | item | ||
item | country | ||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft purchased during the period | 22 | 14 | |||||
Gain on sale of aircraft | $18,878,000 | $6,277,000 | $8,360,000 | ||||
Number of major customer | 0 | 0 | 0 | ||||
Number of aircraft sold | 9 | 8 | 10 | ||||
Acquisition cost of aircraft purchased | 951,500,000 | 642,200,000 | |||||
Major maintenance expenditures capitalized | 7,000,000 | 17,200,000 | |||||
Number of lessees in operating lease | 64 | 62 | |||||
Number of countries aircraft held for operating lease to lessees | 36 | 34 | |||||
Number of aircraft on non-accural status | 2 | 2 | 2 | ||||
Number of aircraft on lease | 124 | 112 | |||||
Number of aircraft off lease | 3 | 1 | |||||
Revenue recognized | 11,300,000 | 3,300,000 | 8,000,000 | ||||
Revenue recognized at the end of lease | 39,800,000 | 47,600,000 | 49,800,000 | ||||
Recognized impairment charge of aircraft | 0 | 8,800,000 | 11,400,000 | ||||
Amortization of lease premiums net of lease discounts | 3,000,000 | 3,400,000 | 7,500,000 | ||||
Weighted average remaining lease term of the Company's aircraft held for operating leases | 5 years 3 months 18 days | 4 years 3 months 18 days | |||||
Number of aircraft under sale agreements | 8 | ||||||
Selling price of aircraft under sale agreements | 87,500,000 | ||||||
Additional depreciation for aircraft under sale agreements | 2,400,000 | ||||||
Amortization of lease incentives | 18,934,000 | 9,019,000 | 6,989,000 | ||||
Number of aircraft held for operating leases | 127 | 113 | |||||
INDIA [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft on lease | 1 | ||||||
A-319-100 [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of impaired aircraft sold | 1 | ||||||
Recognized impairment charge of aircraft | 8,800,000 | ||||||
Number of aircraft written down | 1 | ||||||
A-320-200 [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft written down | 1 | ||||||
B-737-500 [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft written down | 2 | ||||||
B-737-500 And A320-200 [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft sold | 3 | ||||||
Number of impaired aircraft sold | 3 | ||||||
Recognized impairment charge of aircraft | $11,400,000 | ||||||
Aircraft [Member] | |||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||
Number of aircraft sold | 6 |
Flight_Equipment_Held_for_Oper3
Flight Equipment Held for Operating Lease (Flight Equipment Held For Operating Leases) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Flight equipment held for operating leases | ||
Cost | $4,428,783 | $3,597,330 |
Accumulated depreciation | -723,376 | -562,418 |
Net flight equipment held for operating leases | $3,705,407 | $3,034,912 |
Flight_Equipment_Held_for_Oper4
Flight Equipment Held for Operating Lease (Summary Of Net Book Value Of Flight Equipment Held For Operating Leases By Geographic Region) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | $3,705,407 | $3,034,912 |
Property on lease held by geographic region, percentage | 100.00% | 100.00% |
Off Lease [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 84,616 | 17,619 |
Property on lease held by geographic region, percentage | 2.00% | 1.00% |
Europe [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 1,347,804 | 1,151,291 |
Property on lease held by geographic region, percentage | 36.00% | 37.00% |
Europe [Member] | UNITED KINGDOM [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 397,761 | 347,627 |
Property on lease held by geographic region, percentage | 11.00% | 11.00% |
Europe [Member] | TURKEY [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 296,574 | 191,527 |
Property on lease held by geographic region, percentage | 8.00% | 6.00% |
Europe [Member] | Other Country [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 653,469 | 612,137 |
Property on lease held by geographic region, percentage | 17.00% | 20.00% |
Asia and South Pacific [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 1,361,822 | 869,266 |
Property on lease held by geographic region, percentage | 37.00% | 29.00% |
Asia and South Pacific [Member] | PHILIPPINES [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 450,090 | |
Property on lease held by geographic region, percentage | 12.00% | |
Asia and South Pacific [Member] | CHINA [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 301,137 | 353,868 |
Property on lease held by geographic region, percentage | 8.00% | 12.00% |
Asia and South Pacific [Member] | INDIA [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 150,964 | 120,771 |
Property on lease held by geographic region, percentage | 4.00% | 4.00% |
Asia and South Pacific [Member] | Other Country [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 459,631 | 394,627 |
Property on lease held by geographic region, percentage | 13.00% | 13.00% |
North America [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 366,779 | 324,886 |
Property on lease held by geographic region, percentage | 10.00% | 11.00% |
North America [Member] | UNITED STATES [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 305,999 | 291,724 |
Property on lease held by geographic region, percentage | 8.00% | 10.00% |
North America [Member] | Other Country [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 60,780 | 33,162 |
Property on lease held by geographic region, percentage | 2.00% | 1.00% |
Mexico South and Central America [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 432,385 | 482,168 |
Property on lease held by geographic region, percentage | 12.00% | 16.00% |
Mexico South and Central America [Member] | CHILE [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 247,165 | 255,832 |
Property on lease held by geographic region, percentage | 7.00% | 9.00% |
Mexico South and Central America [Member] | Other Country [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | 185,220 | 226,336 |
Property on lease held by geographic region, percentage | 5.00% | 7.00% |
Middle East and Africa [Member] | ||
Summary of net book value of flight equipment held for operating leases by geographic region | ||
Property on lease held by geographic region | $112,001 | $189,682 |
Property on lease held by geographic region, percentage | 3.00% | 6.00% |
Flight_Equipment_Held_for_Oper5
Flight Equipment Held for Operating Lease (Summary Of Distribution Of Operating Lease Revenue By Geographic Region) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | $404,668 | $359,409 | $376,437 |
Operating lease revenue, Percentage | 100.00% | 100.00% | 100.00% |
Europe [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 156,027 | 152,572 | 170,328 |
Operating lease revenue, Percentage | 39.00% | 43.00% | 45.00% |
Europe [Member] | UNITED KINGDOM [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 46,281 | 48,507 | 45,916 |
Operating lease revenue, Percentage | 11.00% | 13.00% | 12.00% |
Europe [Member] | TURKEY [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 27,069 | 14,703 | 12,319 |
Operating lease revenue, Percentage | 7.00% | 4.00% | 3.00% |
Europe [Member] | Other Country [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 82,677 | 89,362 | 112,093 |
Operating lease revenue, Percentage | 21.00% | 26.00% | 30.00% |
Asia and South Pacific [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 136,630 | 96,067 | 110,736 |
Operating lease revenue, Percentage | 34.00% | 27.00% | 30.00% |
Asia and South Pacific [Member] | INDIA [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 32,675 | 21,894 | 39,312 |
Operating lease revenue, Percentage | 8.00% | 6.00% | 10.00% |
Asia and South Pacific [Member] | PHILIPPINES [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 12,947 | ||
Operating lease revenue, Percentage | 3.00% | ||
Asia and South Pacific [Member] | CHINA [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 47,049 | 41,332 | 36,918 |
Operating lease revenue, Percentage | 12.00% | 12.00% | 10.00% |
Asia and South Pacific [Member] | Other Country [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 43,959 | 32,841 | 34,506 |
Operating lease revenue, Percentage | 11.00% | 9.00% | 10.00% |
North America [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 44,960 | 44,373 | 45,202 |
Operating lease revenue, Percentage | 11.00% | 12.00% | 12.00% |
North America [Member] | UNITED STATES [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 41,531 | 40,482 | 41,311 |
Operating lease revenue, Percentage | 10.00% | 11.00% | 11.00% |
North America [Member] | Other Country [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 3,429 | 3,891 | 3,891 |
Operating lease revenue, Percentage | 1.00% | 1.00% | 1.00% |
Mexico South and Central America [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 49,849 | 48,089 | 31,473 |
Operating lease revenue, Percentage | 12.00% | 13.00% | 8.00% |
Mexico South and Central America [Member] | CHILE [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 28,116 | 10,055 | |
Operating lease revenue, Percentage | 7.00% | 3.00% | |
Mexico South and Central America [Member] | Other Country [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | 21,733 | 38,034 | 31,473 |
Operating lease revenue, Percentage | 5.00% | 10.00% | 8.00% |
Middle East and Africa [Member] | |||
Summary of distribution of operating lease revenue by geographic region | |||
Operating lease revenue | $17,202 | $18,308 | $18,698 |
Operating lease revenue, Percentage | 4.00% | 5.00% | 5.00% |
Flight_Equipment_Held_for_Oper6
Flight Equipment Held for Operating Lease (Schedule Of Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Contracted future minimum rentals due under operating leases | |
2015 | $395,801 |
2016 | 339,865 |
2017 | 306,923 |
2018 | 244,844 |
2019 | 180,155 |
Thereafter | 612,212 |
Future minimum rental payments under operating leases | $2,079,800 |
Flight_Equipment_Held_for_Oper7
Flight Equipment Held for Operating Lease (Summary Of Lease Incentive Amortization) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Summary of lease incentive amortization | |
2015 | $19,548 |
2016 | 20,684 |
2017 | 19,630 |
2018 | 14,903 |
2019 | 6,851 |
Thereafter | 4,031 |
Future amortization of lease incentives | $85,647 |
Recovered_Sheet2
Investment In Unconsolidated Subsidiaries (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 28, 2012 | Apr. 29, 2010 | |
Investment in Unconsolidated Subsidiaries (Textual) [Abstract] | |||||
Gain on sale of investment in unconsolidated subsidiary | $36,882,000 | ||||
Equity earnings from investment | 2,456,000 | 1,871,000 | 9,383,000 | ||
Distributions from unconsolidated subsidiaries | 5,501,000 | ||||
BBAM Limited Partnership [Member] | |||||
Investment in Unconsolidated Subsidiaries (Textual) [Abstract] | |||||
Percentage of limited partnership interest | 15.00% | ||||
Privately-held aircraft leasing and management business | 8,750,000 | ||||
Company sold its interest in BBAM LP, percentage | 15.00% | ||||
Proceeds as a result of working capital adjustments | 1,000,000 | ||||
Company sold its interest in BBAM LP | 49,500,000 | ||||
Equity earnings from investment | 7,800,000 | ||||
Distributions from unconsolidated subsidiaries | 6,000,000 | ||||
Fly ZC Aircraft Holdings LP [Member] | |||||
Investment in Unconsolidated Subsidiaries (Textual) [Abstract] | |||||
Percentage of limited partnership interest | 57.40% | ||||
Equity earnings from investment | 1,600,000 | ||||
Distributions from unconsolidated subsidiaries | $6,600,000 | $0 | $500,000 | ||
Summit [Member] | BBAM Limited Partnership [Member] | |||||
Investment in Unconsolidated Subsidiaries (Textual) [Abstract] | |||||
Percentage of limited partnership interest | 85.00% | ||||
Summit [Member] | Fly ZC Aircraft Holdings LP [Member] | Summit [Member] | |||||
Investment in Unconsolidated Subsidiaries (Textual) [Abstract] | |||||
Noncontrolling interest ownership percentage | 10.20% |
Other_Assets_Narrative_Details
Other Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Other Assets [Abstract] | |||
Amortized of loan issuance cost into interest expense | $5.40 | $5.10 | $3.20 |
Other_Assets_Principal_Compone
Other Assets (Principal Components Of Other Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Principal components of other assets | ||
Loan issuance costs, net | $21,928 | $25,593 |
Lease costs, net | 3,289 | 2,288 |
Unamortized lease premuims | 1,861 | 4,949 |
Other assets | 4,530 | 6,820 |
Total other assets | $31,608 | $39,650 |
Unsecured_Borrowings_Narrative
Unsecured Borrowings (Narrative) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Oct. 03, 2014 | Dec. 11, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 03, 2014 | Dec. 11, 2013 | |
Debt Instrument [Line Items] | ||||||
Outstanding principal balance | $75,000,000 | $3,100,000,000 | $75,000,000 | |||
Proceeds for unsecured borrowings | 396,563,000 | 291,389,000 | ||||
Mininmum default for accelerated or demand repayment | 50,000,000 | |||||
Unsecured Borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of aggregate principal of debt to be paid upon change in contro | 101.00% | |||||
Proceeds for unsecured borrowings | 396,600,000 | |||||
2020 Notes [Member] | Unsecured Borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal balance | 75,000,000 | 300,000,000 | 375,000,000 | 300,000,000 | 75,000,000 | 300,000,000 |
Interest rate | 6.75% | 6.75% | ||||
Underwriter's discount | 8,500,000 | |||||
Redemption percentage of principal amount | 35.00% | |||||
Redemption price percentage | 104.75% | 106.75% | ||||
Accrued interest on the notes | 1,100,000 | |||||
Maturity date of the notes | 15-Dec-20 | |||||
2021 Notes [Member] | Unsecured Borrowings [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal balance | 325,000,000 | |||||
Interest rate | 6.38% | 6.38% | ||||
Redemption percentage of principal amount | 35.00% | |||||
Redemption price percentage | 106.38% | |||||
Accrued interest on the notes | $5,100,000 | |||||
Maturity date of the notes | 15-Oct-21 |
Unsecured_Borrowings_Schedule_
Unsecured Borrowings (Schedule Of Unsecured Debt) (Details) (USD $) | Dec. 31, 2014 | Oct. 03, 2014 | Dec. 31, 2013 | Dec. 11, 2013 |
In Thousands, unless otherwise specified | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal balance | $3,100,000 | $75,000 | ||
Unamortized discount | -10,548 | -8,433 | ||
Unsecured borrowings, net | 689,452 | 291,567 | ||
Unsecured Borrowings [Member] | 2020 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal balance | 375,000 | 75,000 | 300,000 | 300,000 |
Unsecured Borrowings [Member] | 2021 Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Outstanding principal balance | $325,000 |
Unsecured_Borrowings_Schedule_1
Unsecured Borrowings (Schedule Of Unsecured Debt Redemption Prices) (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended |
Dec. 31, 2014 | Oct. 03, 2014 | Dec. 31, 2013 | |
2020 Notes [Member] | 2016 [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 105.06% | ||
2020 Notes [Member] | 2017 [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 103.38% | ||
2020 Notes [Member] | 2018 [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 101.69% | ||
2020 Notes [Member] | 2019 [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 100.00% | ||
2020 Notes [Member] | Unsecured Borrowings [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 104.75% | 106.75% | |
2021 Notes [Member] | 2017 [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 104.78% | ||
2021 Notes [Member] | 2018 [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 103.19% | ||
2021 Notes [Member] | 2019 [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 101.59% | ||
2021 Notes [Member] | 2020 and thereafter | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 100.00% | ||
2021 Notes [Member] | Unsecured Borrowings [Member] | |||
Debt Instrument, Redemption [Line Items] | |||
Redemption price percentage | 106.38% |
Secured_Borrowings_Notes_Payab
Secured Borrowings (Notes Payable Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 02, 2007 | Apr. 30, 2010 | Mar. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2009 | Dec. 31, 2015 | Apr. 29, 2010 | |
item | ||||||||||
Secured Borrowings (Textual) [Abstract] | ||||||||||
Secured borrowings, net | $2,335,328,000 | $2,254,705,000 | ||||||||
Repayment of debt | 192,974,000 | 444,607,000 | 847,607,000 | |||||||
Class G One Notes Payable [Member] | ||||||||||
Secured Borrowings (Textual) [Abstract] | ||||||||||
Notes issued | 853,000,000 | |||||||||
B&B Air Funding issued aircraft lease-backed Class G-1 notes at offering price | 99.71% | |||||||||
Interest payable based on LIBOR | 0.77% | |||||||||
Accrued interest on the notes | 200,000 | 200,000 | ||||||||
Principal amount of notes repurchased | 169,400,000 | |||||||||
Principal amounts of repurchased Notes sold to third parties | 106,700,000 | 40,800,000 | ||||||||
Proceeds from the sale of repurchased notes | 87,300,000 | |||||||||
Secured borrowings, net | 532,035,000 | 575,326,000 | ||||||||
Repayment of debt | 46,400,000 | 67,500,000 | ||||||||
Number Of aircraft financed sold | 2 | |||||||||
Maturity date of the notes | 14-Nov-33 | |||||||||
Number of aircraft financed | 35 | 3 | ||||||||
Repayment of debt by selling financed aircrafts | 38,800,000 | |||||||||
Write off of unamortized discount | 1,500,000 | |||||||||
Service Termination employment percentage of finance, legal and marketing | 50.00% | |||||||||
Minimum Period of time to hire replacements for finance, legal and marketing | 90 days | |||||||||
Percentage of Servicer that BBAM LP ceases to own, directly or indirectly | 50.00% | |||||||||
Percentage of the partnership interests in BBAM LP Summit ceases to own, directly or indirectly | 33.33% | |||||||||
Publicly listed entity or other person net worth to not constitute a servicer termination event | 100,000,000 | |||||||||
Class G One Notes Payable [Member] | Forecast [Member] | ||||||||||
Secured Borrowings (Textual) [Abstract] | ||||||||||
Number of aircraft subject to sale agreements | 6 | |||||||||
Note Liquidity Facility [Member] | ||||||||||
Secured Borrowings (Textual) [Abstract] | ||||||||||
Interest payable based on LIBOR | 1.20% | |||||||||
Maximum additional liquidity of credit facility | $60,000,000 | |||||||||
Commitment fee, percentage | 0.40% |
Secured_Borrowings_BB_Air_Acqu
Secured Borrowings (B&B Air Acquisition Facility Narrative) (Details) (B and B Air Acquisition Facility [Member], USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Aug. 09, 2012 | Nov. 07, 2007 |
item | ||
Secured Borrowings (Textual) [Abstract] | ||
Number of tranches funded | 2 | |
Number of aircraft financed | 16 | |
Repayment of outstanding amount in cash | $122.50 | |
Tranche A [Member] | ||
Secured Borrowings (Textual) [Abstract] | ||
Interest payable based on LIBOR | 1.50% | |
Tranche B [Member] | ||
Secured Borrowings (Textual) [Abstract] | ||
Interest payable based on LIBOR | 4.00% |
Secured_Borrowings_Nord_LB_Fac
Secured Borrowings (Nord LB Facility Narrative) (Details) (Nord LB Facility [Member], USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
item | |||||
Secured Borrowings (Textual) [Abstract] | |||||
Number of aircraft financed | 17 | ||||
Interest payable based on LIBOR | 3.30% | ||||
Weighted average interest rate | 4.15% | [1] | 4.15% | [1] | |
Accrued interest on the notes | $700,000 | $700,000 | |||
Percentage of lease rate paid to debt service | 95.00% | ||||
Period consider for no interest payment after termination of lease contract | 6 months | ||||
Period consider for interest payment after termination of lease contract | 12 months | ||||
Percentage of lease rate paid to debt service for aircraft remaining off-lease after twelve months | 85.00% | ||||
Period after lenders may require payment in full | 24 months | ||||
Total principal payments under the Nord facility | 36,100,000 | 57,900,000 | |||
Percentage of return on full equity investment | 10.00% | ||||
Lender fee percentage | 10.00% | ||||
Percentage of return on equity investment | 10.00% | ||||
Maximum amount of fee payable | 5,000,000 | ||||
Write off of unamortized discount | 900,000 | 800,000 | |||
Entities default obligation | $10,000,000 | ||||
Global Aviation Asset Management Portfolio [Member] | |||||
Secured Borrowings (Textual) [Abstract] | |||||
Number of aircraft financed | 19 | ||||
[1] | Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
Secured_Borrowings_CBA_Facilit
Secured Borrowings (CBA Facility Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | ||
Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2013 | |
item | item | item | loan | ||
Secured Borrowings (Textual) [Abstract] | |||||
Payments of debt extinguishment costs | $3,856,000 | ||||
Repayment of debt | 192,974,000 | 444,607,000 | 847,607,000 | ||
Net gain on forgiveness of debt | 3,960,000 | 15,881,000 | -7,387,000 | ||
Secured borrowings, net | 2,335,328,000 | 2,254,705,000 | |||
Number of aircraft sold | 9 | 8 | 10 | ||
BOS Facility [Member] | |||||
Secured Borrowings (Textual) [Abstract] | |||||
Number of aircraft financed | 21 | ||||
Number of aircraft refinanced | 12 | ||||
Net gain on forgiveness of debt | 4,000,000 | ||||
CBA Facility [Member] | |||||
Secured Borrowings (Textual) [Abstract] | |||||
Number of aircraft financed | 9 | ||||
Number of aircraft refinanced | 2 | ||||
Facility principal repayments due to refinancing | 54,500,000 | ||||
Repayment of debt | 11,200,000 | 13,500,000 | |||
Repayments of Lines of Credit | 35,600,000 | ||||
Number of new loans | 7 | ||||
Number of loans maturing 2018 | 1 | ||||
Number of loans maturing 2020 | 6 | ||||
Secured borrowings, net | 113,208,000 | 159,802,000 | |||
Number of aircraft sold | 2 | ||||
Interest payable based on LIBOR | 2.50% | ||||
Accrued interest on the notes | $44,000 | $200,000 | |||
Debt instrument, collateral percentage | 80.00% |
Secured_Borrowings_Term_Loan_N
Secured Borrowings (Term Loan Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 21, 2013 | 21-May-13 | Dec. 18, 2012 | Aug. 09, 2012 | Mar. 31, 2014 | Aug. 31, 2012 | |
item | item | item | item | item | ||||||
Secured Borrowings (Textual) [Abstract] | ||||||||||
Amount of amortized discount | $10,548,000 | $8,433,000 | ||||||||
Payments of debt extinguishment costs | 3,856,000 | |||||||||
Number of aircraft purchased during the period | 22 | 14 | ||||||||
Repayment of debt | 192,974,000 | 444,607,000 | 847,607,000 | |||||||
Number of aircraft sold | 9 | 8 | 10 | |||||||
Term Loan [Member] | ||||||||||
Secured Borrowings (Textual) [Abstract] | ||||||||||
Notes issued | 395,000,000 | |||||||||
Term loan issued at offering price | 96.00% | |||||||||
Amount of amortized discount | 8,164,000 | 10,210,000 | 15,800,000 | |||||||
Interest payable based on LIBOR | 3.50% | 5.50% | ||||||||
Reduction in interest rate amrgin | 0.25% | |||||||||
Debt instrument LIBOR floor rate | 1.00% | 1.25% | ||||||||
Debt proceeds used to repay B&B Air Acquisition Facility | 266,700,000 | |||||||||
Repayment of B&B air acquisition facility | 122,500,000 | |||||||||
Number of aircraft financed | 29 | 16 | ||||||||
Remaining debt proceeds | 112,500,000 | |||||||||
Financed additional aircraft | 7 | |||||||||
Prepayment penalty | 1.00% | 1.00% | ||||||||
Prepayment penalty, amount | 3,800,000 | 3,900,000 | ||||||||
Incremental borrowing, percentage of principal amount | 99.75% | |||||||||
Proceeds from issuance of debt | 102,000,000 | |||||||||
Payments of debt extinguishment costs | 1,200,000 | 4,200,000 | ||||||||
Number of aircraft used as collateral | 3 | |||||||||
Proceeds held in escrow account | 33,600,000 | |||||||||
Number of aircraft purchased during the period | 2 | |||||||||
Loan to value ratio | 70.00% | 67.50% | ||||||||
Quarterly principal payments | 5,900,000 | |||||||||
Repayment of debt | 23,800,000 | 19,800,000 | ||||||||
Increase in term loan amount | 105,000,000 | |||||||||
Entities default obligation | 50,000,000 | |||||||||
Accrued interest on the notes | $2,900,000 | $2,900,000 | ||||||||
Number of aircraft sold | 4 | 1 | ||||||||
Minimum [Member] | Term Loan [Member] | ||||||||||
Secured Borrowings (Textual) [Abstract] | ||||||||||
Interest payable based on LIBOR | 4.50% | |||||||||
Maximum [Member] | Term Loan [Member] | ||||||||||
Secured Borrowings (Textual) [Abstract] | ||||||||||
Interest payable based on LIBOR | 5.50% |
Secured_Borrowings_Fly_Acquisi
Secured Borrowings (Fly Acquisition II Facility Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 07, 2012 | Jul. 03, 2013 | |
item | ||||
Fly Acquisition II Facility [Member] | ||||
Secured Borrowings (Textual) [Abstract] | ||||
Additional borrowings from credit facility | $240,000,000 | |||
Repayments of credit facility | 5,200,000 | 3,100,000 | ||
Number of aircraft financed | 8 | |||
Number of aircraft refinanced | 4 | |||
Required to maintain a cash collateral account with an amount equal the outstanding loan balance | 2.00% | |||
Fly Acquisition II and any of its subsidiaries defaults in respect of obligations in excess | 2,500,000 | |||
Obligation remains undischarged for a period | 45 days | |||
Four Aircraft Fly Acquisition II Facility [Member] | ||||
Secured Borrowings (Textual) [Abstract] | ||||
Repayments of credit facility | 110,000,000 | |||
Revolving Credit Facility [Member] | Fly Acquisition II Facility [Member] | ||||
Secured Borrowings (Textual) [Abstract] | ||||
Initiation date | 7-Nov-12 | |||
Maximum borrowing capacity | 250,000,000 | 450,000,000 | ||
Extended availability period | 3-Jul-15 | |||
Final debt maturity date | 3-Jul-18 | |||
Commitment fee, percentage | 0.75% | |||
Accrued interest on the notes | $200,000 | $200,000 | ||
Interest at LIBOR plus a margin for available period | 3.25% | |||
Interest at LIBOR plus a margin for year 3 of loan term | 3.75% | |||
Interest at LIBOR plus a margin for year 4 of loan term | 4.25% | |||
Interest at LIBOR plus a margin for year 5 of loan term | 4.75% | |||
Percentage of depreciated purchase price consider for loan availability | 72.50% | |||
Useful life | 25 years |
Secured_Borrowings_Other_Aircr
Secured Borrowings (Other Aircraft Secured Debt Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | ||
Secured Borrowings (Textual) [Abstract] | |||
Repayment of debt | $192,974,000 | $444,607,000 | $847,607,000 |
Number of aircraft purchased during the period | 22 | 14 | |
Purchase of aircraft | 915,450,000 | 632,944,000 | 50,803,000 |
Other Aircraft Secured Borrowings [Member] | |||
Secured Borrowings (Textual) [Abstract] | |||
Repayment of debt | 70,100,000 | 28,700,000 | |
Number of aircraft purchased during the period | 5 | 4 | |
Purchase of aircraft | 274,500,000 | 237,500,000 | |
Recourse debt | 425,000,000 | 134,900,000 | |
One Aircraft recourse debt | 28,500,000 | ||
Refinanced amount | 112,000,000 | ||
Number of aircraft financed | 21 | ||
Number of loans repaid | 3 | ||
Accrued interest on the notes | $1,100,000 | $1,100,000 |
Secured_Borrowings_Other_Secur
Secured Borrowings (Other Secured Borrowing Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | |
Secured Borrowings (Textual) [Abstract] | ||||
Repayment of debt | $192,974,000 | $444,607,000 | $847,607,000 | |
Other Secured Borrowings [Member] | ||||
Secured Borrowings (Textual) [Abstract] | ||||
Credit facility agreement with an international commercial bank | 85,000,000 | |||
Credit facility agreement outstanding principal balance | 34,500,000 | |||
Repayment of debt | $34,500,000 |
Secured_Borrowings_Schedule_Of
Secured Borrowings (Schedule Of Secured Borrowings Balance, Net Of Unamortized Debt Discounts) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Secured borrowings balance, net of unamortized debt discounts | ||||
Net carrying value of secured borrowings | $2,335,328 | $2,254,705 | ||
Class G One Notes Payable [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Net carrying value of secured borrowings | 532,035 | 575,326 | ||
Weighted average interest rate | 3.04% | [1] | 3.63% | [1] |
Maturity Date | 14-Nov-33 | |||
Nord LB Facility [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Net carrying value of secured borrowings | 408,484 | 440,456 | ||
Weighted average interest rate | 4.15% | [1] | 4.15% | [1] |
Maturity Date | 1-Nov-18 | |||
CBA Facility [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Net carrying value of secured borrowings | 113,208 | 159,802 | ||
Weighted average interest rate | 4.63% | [1] | 4.91% | [1] |
CBA Facility [Member] | Minimum [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Maturity Date | 1-Jun-18 | |||
CBA Facility [Member] | Maximum [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Maturity Date | 1-Oct-20 | |||
Term Loan [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Net carrying value of secured borrowings | 443,383 | 465,103 | ||
Weighted average interest rate | 5.19% | [1] | 4.50% | [1] |
Maturity Date | 1-Aug-19 | |||
Fly Acquisition II [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Net carrying value of secured borrowings | 121,589 | 126,766 | ||
Weighted average interest rate | 4.15% | [1] | 4.16% | [1] |
Maturity Date | 1-Jul-18 | |||
Other Aircraft Secured Borrowings [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Net carrying value of secured borrowings | $716,629 | $487,252 | ||
Weighted average interest rate | 3.89% | [1] | 4.71% | [1] |
Other Aircraft Secured Borrowings [Member] | Minimum [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Maturity Date | 1-Dec-15 | |||
Other Aircraft Secured Borrowings [Member] | Maximum [Member] | ||||
Secured borrowings balance, net of unamortized debt discounts | ||||
Maturity Date | 1-Dec-25 | |||
[1] | Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
Secured_Borrowings_Schedule_Of1
Secured Borrowings (Schedule Of Notes Payable) (Details) (USD $) | Dec. 31, 2014 | Oct. 03, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Outstanding principal balance: | |||
Notes issued | $3,100,000 | $75,000 | |
Unamortized discount | -10,548 | -8,433 | |
Secured borrowings, net | 2,335,328 | 2,254,705 | |
Class G One Notes Payable [Member] | |||
Outstanding principal balance: | |||
Notes issued | 546,465 | 592,903 | |
Unamortized discount | -14,430 | -17,577 | |
Secured borrowings, net | $532,035 | $575,326 |
Secured_Borrowings_Schedule_Of2
Secured Borrowings (Schedule Of Nord LB Facility) (Details) (USD $) | Dec. 31, 2014 | Oct. 03, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instruments | |||
Outstanding principal balance | $3,100,000 | $75,000 | |
Unamortized debt discount | -10,548 | -8,433 | |
Secured borrowings, net | 2,335,328 | 2,254,705 | |
Nord LB Facility [Member] | |||
Debt Instruments | |||
Outstanding principal balance | 416,249 | 452,371 | |
Unamortized debt discount | -7,765 | -11,915 | |
Secured borrowings, net | $408,484 | $440,456 |
Secured_Borrowings_Schedule_Of3
Secured Borrowings (Schedule Of CBA Facility) (Details) (USD $) | Dec. 31, 2014 | Oct. 03, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instruments | |||
Outstanding principal balance | $3,100,000 | $75,000 | |
Unamortized debt discount | -10,548 | -8,433 | |
Secured borrowings, net | 2,335,328 | 2,254,705 | |
CBA Facility [Member] | |||
Debt Instruments | |||
Outstanding principal balance | 114,812 | 161,823 | |
Unamortized debt discount | -1,604 | -2,021 | |
Secured borrowings, net | 113,208 | 159,802 | |
CBA Facility [Member] | Senior Tranches [Member] | |||
Debt Instruments | |||
Outstanding principal balance | 30,512 | ||
CBA Facility [Member] | Junior Tranches [Member] | |||
Debt Instruments | |||
Outstanding principal balance | 5,900 | ||
CBA Facility [Member] | Tranche A [Member] | |||
Debt Instruments | |||
Outstanding principal balance | 65,462 | 87,925 | |
CBA Facility [Member] | Tranche B [Member] | |||
Debt Instruments | |||
Outstanding principal balance | $49,350 | $37,486 |
Secured_Borrowings_Schedule_Of4
Secured Borrowings (Schedule Of Weighted Average Interest Rates On Senior And Junior Tranche Loans, Excluding Debt Discount Amortization) (Details) (CBA Facility [Member]) | Dec. 31, 2014 | Dec. 31, 2013 | ||
Variable rate loans: | ||||
Variable rate loans | 2.66% | 2.66% | ||
Facility weighted average interest rate | 4.63% | [1] | 4.91% | [1] |
Senior Tranches [Member] | ||||
Fixed rate loans: | ||||
Fixed rate loans | 5.62% | |||
Junior Tranches [Member] | ||||
Fixed rate loans: | ||||
Fixed rate loans | 7.91% | |||
Tranche A [Member] | ||||
Fixed rate loans: | ||||
Fixed rate loans | 5.52% | 6.53% | ||
Tranche B [Member] | ||||
Fixed rate loans: | ||||
Fixed rate loans | 4.47% | 4.58% | ||
Variable rate loans: | ||||
Variable rate loans | 2.66% | |||
[1] | Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
Secured_Borrowings_Schedule_Of5
Secured Borrowings (Schedule Of Term Loan) (Details) (USD $) | Dec. 31, 2014 | Oct. 03, 2014 | Dec. 31, 2013 | Aug. 09, 2012 |
In Thousands, unless otherwise specified | ||||
Debt Instruments | ||||
Outstanding principal balance | $3,100,000 | $75,000 | ||
Unamortized debt discount | -10,548 | -8,433 | ||
Secured borrowings, net | 2,335,328 | 2,254,705 | ||
Term Loan [Member] | ||||
Debt Instruments | ||||
Outstanding principal balance | 451,547 | 475,313 | ||
Unamortized debt discount | -8,164 | -10,210 | -15,800 | |
Secured borrowings, net | $443,383 | $465,103 |
Secured_Borrowings_Schedule_Of6
Secured Borrowings (Schedule Of Fly Acquisition II Facility) (Details) (USD $) | Dec. 31, 2014 | Oct. 03, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instruments | |||
Outstanding principal balance | $3,100,000 | $75,000 | |
Fly Acquisition II Facility [Member] | |||
Debt Instruments | |||
Outstanding principal balance | $121,589 | $126,766 |
Secured_Borrowings_Schedule_Of7
Secured Borrowings (Schedule Of Other Aircraft Secured Debt) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 03, 2014 | ||
item | item | item | ||||
Debt Instruments | ||||||
Outstanding principal balance | $3,100,000 | $75,000 | ||||
Unamortized discount | -10,548 | -8,433 | ||||
Secured borrowings, net | 2,335,328 | 2,254,705 | ||||
Number of Aircraft Sold | 9 | 8 | 10 | |||
Other Aircraft Secured Borrowings [Member] | ||||||
Debt Instruments | ||||||
Weighted average interest rate | 3.89% | [1] | 4.71% | [1] | ||
Outstanding principal balance | 723,023 | 490,106 | ||||
Unamortized discount | -6,394 | -2,854 | ||||
Secured borrowings, net | $716,629 | $487,252 | ||||
Other Aircraft Secured Borrowings [Member] | Minimum [Member] | ||||||
Debt Instruments | ||||||
Maturity Date | Dec-15 | |||||
Other Aircraft Secured Borrowings [Member] | Maximum [Member] | ||||||
Debt Instruments | ||||||
Maturity Date | Dec-25 | |||||
[1] | Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
Secured_Borrowings_Schedule_Of8
Secured Borrowings (Schedule Of Future Minimum Principal Payments) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Future minimum principal payments | |
2015 | $242,795,000 |
2016 | 207,413,000 |
2017 | 194,513,000 |
2018 | 532,875,000 |
2019 | 457,788,000 |
Thereafter | 738,301,000 |
Future minimum principal payments due | 2,373,685,000 |
Repayment of debt | $163,700,000 |
Derivatives_Narrative_Details
Derivatives (Narrative) (Details) (USD $) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2015 | Oct. 03, 2014 | Jan. 31, 2015 | ||||
contract | item | ||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Unsecured and secured debt balance, excluding unamortized debt discount | $3,100,000,000 | $75,000,000 | |||||||||
Long term debt | 2,373,685,000 | ||||||||||
Change in fair value of derivatives, net of deferred tax (1) | -3,238,000 | [1],[2] | 22,093,000 | [1],[2] | 9,075,000 | [1],[2] | |||||
Change in fair value of derivatives, deferred tax expense (benefit) | 3,486,000 | 1,456,000 | |||||||||
Loss on extinguishment of debt | -3,960,000 | -15,881,000 | 7,387,000 | ||||||||
Derivative liability | 5,000,000 | ||||||||||
Floating Rate [Member] | |||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Long term debt | 2,100,000,000 | ||||||||||
Fixed Rates [Member] | |||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Long term debt | 1,700,000,000 | ||||||||||
Interest Rate Swap [Member] | |||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Interest rate swap contracts with notional amount | 1,014,262,000 | ||||||||||
Derivative, Notional Amount | 1,400,000,000 | 1,500,000,000 | |||||||||
Fair market value gain on interest rate swap contracts reflected as derivative assets | 2,100,000 | 7,400,000 | |||||||||
Fair market value loss on interest rate swap contracts reflected as derivative liabilities | 23,300,000 | 24,600,000 | |||||||||
Change in fair value of derivatives, net of deferred tax (1) | -19,005,000 | ||||||||||
Number of terminated interest rate swap | 1 | 2 | 2 | ||||||||
Received settlement proceeds | 2,100,000 | 2,100,000 | |||||||||
Interest expense amortization of terminated derivative | 300,000 | ||||||||||
Loss on extinguishment of debt | 1,000,000 | ||||||||||
Loss recognized into earnings associated with the terminated contracts | 200,000 | ||||||||||
Cross Currency Interest Rate Contract [Member] | |||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Number of cross currency swap contracts which in connection with acquisition of GAAM Portfolio | 1 | ||||||||||
Number of terminated cross currency swap contracts | 3 | 4 | |||||||||
Received settlement proceeds | 1,300,000 | ||||||||||
Gain associated with the terminated contracts | 700,000 | ||||||||||
Australian Dollar Cross Currency Swap [Member] | Cross Currency Interest Rate Contract [Member] | |||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Fair market value loss on the Australian dollar (AUD) cross currency swap contracts, reflected as derivative liabilities | 35,000 | ||||||||||
B and B Air Acquisition Facility [Member] | Interest Rate Swap [Member] | |||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Payment made for termination of swaps | 36,300,000 | ||||||||||
Number of interest rate swap contract terminated associated with faclity repayment | 11 | ||||||||||
Loss recognized into earnings associated with the terminated contracts | 32,300,000 | ||||||||||
Fly Acquisition II Facility [Member] | Interest Rate Swap [Member] | |||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Change in fair value of derivatives, net of deferred tax (1) | 100,000 | ||||||||||
Number of terminated interest rate swap | 5 | ||||||||||
Gain associated with the terminated contracts | 23,000 | ||||||||||
Fly Acquisition II Facility [Member] | Interest Rate Swap [Member] | Subsequent Event [Member] | |||||||||||
Derivatives (Textual) [Abstract] | |||||||||||
Notional amount of terminated interest rate swap contracts | $116,200,000 | ||||||||||
[1] | Deferred tax benefit was $0.6 million for the year ended December 31, 2014. Deferred tax expense was $3.5 million and $1.4 million for the years ended December 31, 2013 and 2012, respectively. | ||||||||||
[2] | See Note 8 to Notes to Consolidated Financial Statements. |
Derivatives_Schedule_Of_Design
Derivatives (Schedule Of Designated Instruments Classified As Derivative Assets) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivatives Fair Value [Line Items] | ||||||
Gain Recognized in Accumulated Comprehensive Loss | ($3,238) | [1],[2] | $22,093 | [1],[2] | $9,075 | [1],[2] |
Gain Recognized into Earnings | -27,479 | [3] | ||||
Derivative Assets [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Quantity | 18 | |||||
Swap Contract Notional Amount | 376,619 | |||||
Fair Market Value of Derivative Asset | 2,031 | |||||
Credit Risk Adjustment | 36 | |||||
Adjusted Fair Market Value of Derivative Asset | 2,067 | |||||
Deferred Tax Expense | -273 | |||||
Gain Recognized in Accumulated Comprehensive Loss | 1,914 | |||||
Gain Recognized into Earnings | 30 | |||||
Accrued Interest [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Fair Market Value of Derivative Asset | -151 | |||||
Adjusted Fair Market Value of Derivative Asset | -151 | |||||
Interest Rate Swap [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Gain Recognized in Accumulated Comprehensive Loss | -19,005 | |||||
Gain Recognized into Earnings | -103 | |||||
Interest Rate Swap [Member] | Derivative Assets [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Quantity | 18 | |||||
Hedge Interest Rates, Lower Range | 0.89% | |||||
Hedge Interest Rates, Higher Range | 1.22% | |||||
Swap Contract Notional Amount | 376,619 | |||||
Fair Market Value of Derivative Asset | 2,182 | |||||
Credit Risk Adjustment | 36 | |||||
Adjusted Fair Market Value of Derivative Asset | 2,218 | |||||
Deferred Tax Expense | -273 | |||||
Gain Recognized in Accumulated Comprehensive Loss | 1,914 | |||||
Gain Recognized into Earnings | $30 | |||||
Interest Rate Swap [Member] | Minimum [Member] | Derivative Assets [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Maturity Dates | 15-Oct-17 | |||||
Interest Rate Swap [Member] | Maximum [Member] | Derivative Assets [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Maturity Dates | 14-Nov-18 | |||||
[1] | Deferred tax benefit was $0.6 million for the year ended December 31, 2014. Deferred tax expense was $3.5 million and $1.4 million for the years ended December 31, 2013 and 2012, respectively. | |||||
[2] | See Note 8 to Notes to Consolidated Financial Statements. | |||||
[3] | Deferred tax expense was $3.9 million for the year ended DecemberB 31, 2012. |
Derivatives_Designated_Derivat
Derivatives (Designated Derivative Instruments Classified As Derivative Liabilities) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivatives Fair Value [Line Items] | ||||||
Deferred Tax Benefit | $2,483 | $1,932 | ||||
Loss Recognized in Accumulated Comprehensive Loss | -3,238 | [1],[2] | 22,093 | [1],[2] | 9,075 | [1],[2] |
Loss Recognized into Earnings | -27,479 | [3] | ||||
Derivative Liabilities [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Quantity | 18 | |||||
Swap Contract Notional Amount | 1,014,262 | |||||
Fair Market Value of Derivative Liability | -24,770 | |||||
Credit Risk Adjustment | -1,459 | |||||
Adjusted Fair Market Value of Derivative Liability | -23,311 | |||||
Deferred Tax Benefit | 2,757 | |||||
Loss Recognized in Accumulated Comprehensive Loss | -19,005 | |||||
Loss Recognized into Earnings | -103 | |||||
Accrued Interest [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Fair Market Value of Derivative Liability | -1,152 | |||||
Adjusted Fair Market Value of Derivative Liability | -1,152 | |||||
Interest Rate Swap [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Quantity | 18 | |||||
Swap Contract Notional Amount | 1,014,262 | |||||
Fair Market Value of Derivative Liability | -23,618 | |||||
Credit Risk Adjustment | -1,459 | |||||
Adjusted Fair Market Value of Derivative Liability | -22,159 | |||||
Loss Recognized in Accumulated Comprehensive Loss | -19,005 | |||||
Loss Recognized into Earnings | -103 | |||||
Interest Rate Swap [Member] | Derivative Liabilities [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Maturity Dates | 14-Jan-15 | |||||
Hedge Interest Rates, Lower Range | 1.00% | |||||
Hedge Interest Rates, Higher Range | 6.22% | |||||
Deferred Tax Benefit | $2,757 | |||||
Interest Rate Swap [Member] | Maximum [Member] | Derivative Liabilities [Member] | ||||||
Derivatives Fair Value [Line Items] | ||||||
Maturity Dates | 27-Sep-25 | |||||
[1] | Deferred tax benefit was $0.6 million for the year ended December 31, 2014. Deferred tax expense was $3.5 million and $1.4 million for the years ended December 31, 2013 and 2012, respectively. | |||||
[2] | See Note 8 to Notes to Consolidated Financial Statements. | |||||
[3] | Deferred tax expense was $3.9 million for the year ended DecemberB 31, 2012. |
Share_Based_Compensation_Narra
Share Based Compensation (Narrative) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 29, 2010 | Dec. 31, 2011 | |
Share Based Compensation (Textual) [Abstract] | |||||
Share-based compensation related to SARs and RSUs granted under the 2010 Plan | $30,000 | $3,177,000 | $3,635,000 | ||
Number of shares, granted | 116,836 | ||||
Unamortized share-based compensation expense total | 100,000 | 900,000 | 2,600,000 | ||
2010 Plan [Member] | |||||
Share Based Compensation (Textual) [Abstract] | |||||
Shares for issuance | 1,500,000 | ||||
Number of shares, granted | 1,500,000 | 1,500,000 | |||
Stock Appreciation Rights (SARs) [Member] | |||||
Share Based Compensation (Textual) [Abstract] | |||||
Rights or units granted to employees | 33,096 | ||||
Rights or units granted to non-employees | 150,068 | ||||
Closing ADS Price | $13.15 | $16.07 | $12.32 | ||
Intrinsic value of unvested rights or units | 49,000 | 800,000 | 0 | 0 | |
Grant date fair value of the rights or units granted | 1,400,000 | ||||
Weighted average remaining vesting term | 6 months | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share Based Compensation (Textual) [Abstract] | |||||
Rights or units granted to employees | 21,112 | ||||
Rights or units granted to non-employees | 95,724 | ||||
Closing ADS Price | $13.15 | $16.07 | $12.32 | ||
Intrinsic value of unvested rights or units | $500,000 | $2,600,000 | $3,500,000 | ||
Stock Appreciation Right and Restricted Stock Unit [Member] | |||||
Share Based Compensation (Textual) [Abstract] | |||||
Number of equal installments | 3 | ||||
Weighted average remaining vesting term | 4 months | 11 months |
ShareBased_Compensation_Summar
Share-Based Compensation (Summary Of The Company's SAR Activity) (Details) (Stock Appreciation Rights (SARs) [Member], USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Appreciation Rights (SARs) [Member] | ||||
Summary of the Company's SAR activity | ||||
Number of shares, Outstanding, Beginning Balance | 888,634 | 892,004 | 708,840 | |
Number of shares, granted | 183,164 | |||
Number of shares, exercised | -58,519 | -3,370 | ||
Number of shares, canceled or forfeited | -8,998 | |||
Number of shares, Outstanding, Ending Balance | 821,117 | 888,634 | 892,004 | 708,840 |
Number of shares, Exercisable | 764,558 | |||
Weighted average exercise price, Outstanding Beginning Balance | $12.74 | $12.74 | $12.85 | |
Weighted average exercise price, granted | $12.28 | |||
Weighted average exercise price, exercised | $12.80 | $12.42 | ||
Weighted average exercise price, canceled or forfeited | $12.28 | |||
Weighted average exercise price, Outstanding Ending Balance | $12.74 | $12.74 | $12.74 | $12.85 |
Weighted average exercise price, Exercisable | $12.77 | |||
Weighted average remaining contractual life (in years) | 6 years 1 month 6 days | 7 years 1 month 6 days | 8 years 1 month 6 days | 8 years 9 months 18 days |
ShareBased_Compensation_Summar1
Share-Based Compensation (Summary Of The Company's RSU Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of the Company's SAR activity | |||
Number of shares, Outstanding, Beginning Balance | 161,480 | 284,014 | 330,896 |
Number of shares, granted | 116,836 | ||
Number of shares, RSUs vested | -119,666 | -122,534 | -163,718 |
Number of shares, SARs canceled or forfeited | -5,739 | ||
Number of shares, Outstanding, Ending Balance | 36,075 | 161,480 | 284,014 |
Weighted average grant date fair value, Beginning Balance | $12.81 | $12.88 | $13.09 |
Weighted average grant date fair value , RSUs granted | $12.28 | ||
Weighted average grant date fair value , RSUs vested | $12.99 | $12.98 | $12.87 |
Weighted average grant date fair value , RSUs canceled or forfeited | $12.28 | ||
Weighted average grant date fair value, Ending Balance | $12.28 | $12.81 | $12.88 |
ShareBased_Compensation_The_Fa
Share-Based Compensation (The Fair Value Of SARs Expected To Vest Estimated On The Following Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
The fair value of SARs expected to vest is estimated on the following assumptions | |||
Risk-free interest rate, Minimum | 0.90% | 0.90% | 0.90% |
Risk-free interest rate, Maximum | 2.32% | 2.51% | 2.73% |
Volatility, Minimum | 48.00% | 51.00% | 54.00% |
Volatility, Maximum | 57.00% | 63.00% | 70.00% |
Minimum [Member] | |||
The fair value of SARs expected to vest is estimated on the following assumptions | |||
Expected life | 6 years | 6 years | 6 years |
Maximum [Member] | |||
The fair value of SARs expected to vest is estimated on the following assumptions | |||
Expected life | 8 years | 8 years | 10 years |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Expense (Benefit) [Line Items] | |||
Corporation tax at the rate on trading income | 12.50% | 12.50% | 12.50% |
Federal and state income tax benefit | $1,100,000 | ||
Valuation allowance | 22,268,000 | 19,412,000 | |
Unrecognized tax benefits | 0 | 0 | |
Deferred tax asset from the sale of aircraft owned by Australian subsidiary | 210,368,000 | 185,325,000 | |
Australian Subsidiary [Member] | |||
Income Tax Expense (Benefit) [Line Items] | |||
Undistributed foreign subisidiary earnings | 18,200,000 | ||
Forecast [Member] | Australian Subsidiary [Member] | |||
Income Tax Expense (Benefit) [Line Items] | |||
Additional tax liability | 2,700,000 | ||
Cayman Islands Tax Information Authority [Member] | |||
Income Tax Expense (Benefit) [Line Items] | |||
Tax rate for repatriated and undistributed earnings | 25.00% | ||
Australian Taxation Office [Member] | |||
Income Tax Expense (Benefit) [Line Items] | |||
Corporation tax at the rate on trading income | 30.00% | ||
Tax rate for repatriated and undistributed earnings | 12.50% | ||
Deferred tax asset from the sale of aircraft owned by Australian subsidiary | 2,300,000 | ||
Withholding tax percentage | 15.00% | ||
Revenue Commissioners, Ireland [Member] | |||
Income Tax Expense (Benefit) [Line Items] | |||
Corporation tax at the rate on trading income | 12.50% | ||
Corporation tax at the rate on non trading income | 25.00% | ||
Valuation allowance | $2,900,000 | $1,700,000 | |
Ministry of the Economy, Finance and Industry, France [Member] | |||
Income Tax Expense (Benefit) [Line Items] | |||
Corporation tax at the rate on trading income | 33.33% |
Income_Taxes_Income_Tax_Expens
Income Taxes (Income Tax Expense By Jurisdiction) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current tax expense: | |||
Current tax expense total | $260 | ($536) | $12,042 |
Deferred tax expense (benefit): | |||
Deferred tax expense (benefit) total | 8,003 | 6,195 | -8,180 |
Income Tax Expense (Benefit), Total | 8,263 | 5,659 | 3,862 |
IRELAND [Member] | |||
Current tax expense: | |||
Current tax expense total | 400 | 10,201 | |
Deferred tax expense (benefit): | |||
Deferred tax expense (benefit) total | 7,448 | 3,470 | -10,118 |
LUXEMBOURG [Member] | |||
Current tax expense: | |||
Current tax expense total | 210 | 175 | 26 |
AUSTRALIA [Member] | |||
Deferred tax expense (benefit): | |||
Deferred tax expense (benefit) total | 573 | 2,738 | 2,101 |
UNITED STATES [Member] | |||
Current tax expense: | |||
Current tax expense total | 2 | -1,131 | 1,783 |
Other Country [Member] | |||
Current tax expense: | |||
Current tax expense total | 48 | 20 | 32 |
Deferred tax expense (benefit): | |||
Deferred tax expense (benefit) total | ($18) | ($13) | ($163) |
Income_Taxes_Components_Of_The
Income Taxes (Components Of The Company's Net Deferred Tax Asset) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax asset: | ||
Net operating loss carry forwards | $220,247 | $193,006 |
Net unrealized losses on derivative instruments | 2,483 | 1,932 |
Basis difference on acquisition of GAAM Australian assets | 9,597 | 9,597 |
Other | 309 | 202 |
Valuation allowance | -22,268 | -19,412 |
Total deferred tax asset | 210,368 | 185,325 |
Deferred tax liability: | ||
Excess of tax depreciation over book depreciation | -207,071 | -171,969 |
Book/tax differences identified in connection with GAAM Portfolio acquisition: | ||
Debt | -1,270 | -1,859 |
Security deposits and maintenance reserve liability | -350 | -388 |
Lease premiums, net | -14 | -142 |
Net earnings of non-European Union member subsidiaries | -17,952 | -18,713 |
Total deferred tax liability | -226,657 | -193,071 |
Deferred tax (liability) asset, net | ($16,289) | ($7,746) |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of The Income Tax Expense (Benefit)) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of the income tax expense (benefit) | |||
Irish statutory corporate tax rate on trading income | 12.50% | 12.50% | 12.50% |
Valuation allowance | 4.40% | 1.60% | |
Equity earnings from FLY-Z/C LP | -0.50% | -0.40% | -0.40% |
Tax on investment in BBAM LP | 1.30% | ||
Tax impact on repurchased and resold Notes | -0.60% | -0.80% | -1.20% |
Share-based compensation | 0.70% | 0.90% | |
Tax on gain on sale of investment in BBAM LP | 9.10% | ||
Deductible intra-group interest | -2.20% | -12.90% | |
Foreign tax rate differentials | -4.70% | 3.30% | -2.40% |
True-up of prior year tax provision | 0.30% | 0.20% | 1.10% |
Non-taxable gain on debt extinguishment | -1.30% | -5.10% | |
Non-deductible transaction fees and expenses | 2.70% | 0.10% | |
Other | -0.20% | -0.50% | |
Income tax expense | 12.80% | 9.70% | 7.50% |
Other_Liabilities_Principal_Co
Other Liabilities (Principal Components Of The Company's Other Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Principal components of the Company's other liabilities | ||
Net current tax provision | $581 | $1,517 |
Lease incentive obligation | 25,503 | 8,534 |
Deferred rent payable | 11,461 | 9,169 |
Refundable deposits | 4,079 | 1,045 |
Other | 266 | 258 |
Total other liabilities | $41,890 | $20,523 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | ||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Jul. 31, 2013 | Mar. 31, 2015 | Dec. 28, 2012 | Dec. 28, 2012 | Nov. 29, 2012 | 7-May-14 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Maximum amount that can be purchased under the program | $30,000,000 | |||||||||
New shares issued, shares | 1,000,000 | |||||||||
New shares issued, value | 172,595,000 | 23,914,000 | ||||||||
Dividends paid per share | $1 | $0.88 | $0.84 | |||||||
Dividends paid amount | 42,800,000 | 31,500,000 | 22,500,000 | |||||||
Shares outstanding | 41,432,998 | 41,306,338 | ||||||||
Shares repurchased, shares | 0 | 0 | ||||||||
American Depository Shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
New shares issued, shares | 13,142,856 | |||||||||
New shares issued, value | 172,600,000 | |||||||||
Share offering price | $14 | |||||||||
Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Dividends paid per share | $0.25 | |||||||||
Dividends paid amount | 10,400,000 | |||||||||
Dividend payment date | 20-Feb-15 | |||||||||
Dividend record date | 30-Jan-15 | |||||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
New shares issued, shares | 126,660 | |||||||||
Summit and Onex [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
New shares issued, shares | 2,191,060 | 2,191,060 | ||||||||
New shares issued, value | $25,000,000 | |||||||||
Share offering price | $11.41 | $11.41 | ||||||||
Discount to the volume weighted average price of the Company's common shares | 5.00% | 5.00% | ||||||||
Period of volume weighted average price | 5 days | 5 days |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator | |||||||||||
Net income | $15,479 | $15,361 | $21,674 | $3,563 | $13,412 | $304 | $5,915 | $32,845 | $56,077 | $52,476 | $47,669 |
Less: Dividend equivalents paid to vested RSUs and SARs | -1,426 | -940 | -884 | ||||||||
Net income available to common shareholders | $54,651 | $51,536 | $46,785 | ||||||||
Denominator | |||||||||||
Weighted average shares outstanding-Basic | 41,405,211 | 34,129,880 | 25,792,932 | ||||||||
Weighted average shares outstanding-Diluted | 41,527,584 | 34,243,456 | 25,961,605 | ||||||||
Earnings per share: | |||||||||||
Basic | $0.37 | $0.37 | $0.51 | $0.07 | $0.32 | $0 | $0.20 | $1.15 | $1.32 | $1.51 | $1.81 |
Diluted | $0.37 | $0.37 | $0.51 | $0.07 | $0.32 | $0 | $0.20 | $1.15 | $1.32 | $1.50 | $1.80 |
Restricted Stock Units (RSUs) [Member] | |||||||||||
Denominator | |||||||||||
Dilutive common equivalent shares | 48,674 | 102,914 | 164,998 | ||||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||||
Denominator | |||||||||||
Dilutive common equivalent shares | 73,699 | 10,662 | 3,675 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
item | |
Commitments and Contingencies [Abstract] | |
Number of aircrafts to be purchased | 2 |
Commitment to sell aircraft | 8 |
Related_Party_Transactions_Nar
Related Party Transactions (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | ||||||||
Dec. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | Jul. 31, 2013 | Dec. 28, 2012 | Dec. 28, 2012 | Nov. 29, 2012 | Oct. 24, 2014 | Aug. 28, 2012 | Aug. 31, 2012 | |
employee | item | item | item | ||||||||||
employee | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Number of Employees | 0 | 0 | |||||||||||
Number of aircraft sold | 9 | 8 | 10 | ||||||||||
Fee incurred for aircraft acquired | $9,500,000 | $900,000 | |||||||||||
Fee incurred for aircraft disposed | 2,200,000 | 2,000,000 | 1,200,000 | ||||||||||
Number of shares issued | 41,432,998 | 41,432,998 | 41,306,338 | ||||||||||
New shares issued, shares | 1,000,000 | ||||||||||||
Issued shares value | 41,000 | 41,000 | 41,000 | ||||||||||
Management expenses, quarterly payments | 2,500,000 | 10,600,000 | 10,500,000 | 10,300,000 | |||||||||
Reimbursable expenses due to the Manager | 300,000 | 300,000 | 800,000 | ||||||||||
Proceeds from issuance of shares | 172,595,000 | 23,914,000 | |||||||||||
Payment of one-time success fee to BBAM | 200,000 | 200,000 | |||||||||||
Summit purchased, shares from Babcock & Brown | 1,000,000 | ||||||||||||
American Depository Shares [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
New shares issued, shares | 13,142,856 | ||||||||||||
Share offering price | $14 | ||||||||||||
Certain Officers And Directors [Member] | American Depository Shares [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
New shares issued, shares | 142,857 | ||||||||||||
Share offering price | $14 | ||||||||||||
Proceeds from issuance of shares | 2,000,000 | ||||||||||||
GAAM Portfolio [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of sales proceeds BBAM receives in connection with GAAM Portfolio | 2.00% | ||||||||||||
Summit and Onex [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
New shares issued, shares | 2,191,060 | 2,191,060 | |||||||||||
Period of volume weighted average price | 5 days | 5 days | |||||||||||
Issued shares value | 25,000,000 | 25,000,000 | |||||||||||
Discount to the volume weighted average price of the Company's common shares | 5.00% | 5.00% | |||||||||||
Share offering price | $11.41 | $11.41 | |||||||||||
BBAM Limited Partnership [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Sale of interest in BBAM Limited Partnership | 15.00% | 15.00% | |||||||||||
Management agreement renewal period | 5 years | 5 years | |||||||||||
Payment to the manager | 8,400,000 | 8,400,000 | |||||||||||
Percentage of selling price fee paid to BBAM | 1.50% | ||||||||||||
Fees related to disposition of interest in equity investment joint venture | 700,000 | ||||||||||||
Receive a base fee per month | 150,000 | ||||||||||||
Percentage of rent fee on aggregate amount of aircraft rent due | 1.00% | ||||||||||||
Percentage of actual rent collected | 1.00% | ||||||||||||
Base and rent fees incurred by B&B Air Funding | 14,400,000 | 12,100,000 | 12,600,000 | ||||||||||
Administrative agency fee from B&B air funding per annum | 750,000 | ||||||||||||
Administrative fee from B&B Air Acquisition per annum | 240,000 | ||||||||||||
Administrative fee per month per aircraft | 1,000 | ||||||||||||
Administrative fees paid under the Term Loan and Fly Acquisition II Facility | 2,100,000 | 1,900,000 | 1,800,000 | ||||||||||
Percentage of purchase price BBAM receives for aircraft acquired | 1.50% | ||||||||||||
Percentage of sales proceeds BBAM receives in connection with GAAM Portfolio | 1.50% | ||||||||||||
Fee incurred for aircraft acquired | 12,800,000 | ||||||||||||
Percentage of commission of issuance and sale of shares | 4.00% | ||||||||||||
Commission of issuance and sale of shares | 1,000,000 | ||||||||||||
Origination fees expenses | 3,100,000 | ||||||||||||
BBAM Limited Partnership [Member] | Other Aircraft [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of actual rent collected | 3.50% | ||||||||||||
BBAM Limited Partnership [Member] | Fly Acquisition Second Fly Period [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Administrative fee per month from Fly Acquisition II and Fly Period | $10,000 |
Related_Party_Transactions_Min
Related Party Transactions (Minimum Long-Term Contractual Obligations With BBAM LP, Excluding Rent Fees) (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Dec. 28, 2012 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | |||
2014 | $14,881,000 | ||
2015 | 14,720,000 | ||
2016 | 14,620,000 | ||
2017 | 14,372,000 | ||
2018 | 14,119,000 | ||
Thereafter | 56,752,000 | ||
Total | 129,464,000 | ||
Management agreement period | 10 years | ||
Fixed Base Fee Payments [Member] | |||
Related Party Transaction [Line Items] | |||
2014 | 2,029,000 | [1] | |
2015 | 2,029,000 | [1] | |
2016 | 2,029,000 | [1] | |
2017 | 2,029,000 | [1] | |
2018 | 2,029,000 | [1] | |
Thereafter | 10,479,000 | [1] | |
Total | 20,624,000 | [1] | |
Fixed Administrative Agency Fee Payments Due by B and B Air Funding [Member] | |||
Related Party Transaction [Line Items] | |||
2014 | 845,000 | [1] | |
2015 | 845,000 | [1] | |
2016 | 845,000 | [1] | |
2017 | 845,000 | [1] | |
2018 | 845,000 | [1] | |
Thereafter | 4,368,000 | [1] | |
Total | 8,593,000 | [1] | |
Fixed Administrative Agency Fee Payments Due By Fly Acquisition II [Member] | |||
Related Party Transaction [Line Items] | |||
2014 | 168,000 | ||
2015 | 168,000 | ||
2016 | 168,000 | ||
2017 | 109,000 | ||
2018 | 48,000 | ||
Thereafter | 236,000 | ||
Total | 897,000 | ||
Fixed Administrative Services Fee Due by Fly Peridot [Member] | |||
Related Party Transaction [Line Items] | |||
2014 | 418,000 | ||
2015 | 333,000 | ||
2016 | 299,000 | ||
2017 | 240,000 | ||
2018 | 158,000 | ||
Thereafter | 91,000 | ||
Total | 1,539,000 | ||
Fixed Administrative Agency Fee Payments Due by Other Subsidiaries [Member] | |||
Related Party Transaction [Line Items] | |||
2014 | 708,000 | ||
2015 | 632,000 | ||
2016 | 566,000 | ||
2017 | 436,000 | ||
2018 | 326,000 | ||
Thereafter | 1,080,000 | ||
Total | 3,748,000 | ||
Fixed Payments for Management Expenses [Member] | |||
Related Party Transaction [Line Items] | |||
2014 | 10,713,000 | [1],[2] | |
2015 | 10,713,000 | [1],[2] | |
2016 | 10,713,000 | [1],[2] | |
2017 | 10,713,000 | [1],[2] | |
2018 | 10,713,000 | [1],[2] | |
Thereafter | 40,498,000 | [1],[2] | |
Total | 94,063,000 | [1],[2] | |
BBAM Limited Partnership [Member] | |||
Related Party Transaction [Line Items] | |||
Management agreement renewal period | 5 years | 5 years | |
Early termination fee | $8,400,000 | $8,400,000 | |
[1] | Amounts in the table assume Consumer Price Index (bCPIb) rates in effect as of December 31, 2014 remain constant in future periods. | ||
[2] | The initial term of the Management Agreement is for ten years from December 28, 2012, with an automatic five year renewal period. The agreement provides for an early termination fee of $8.4 million, subject to an annual CPI adjustment. The table assumes termination of the agreement after the initial ten year term and payment of the applicable termination fee. |
Fair_Value_Measurements_Narrat
Fair Value Measurements (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Measurements [Abstract] | |||
Recognized impairment charge of aircraft | $0 | $8.80 | $11.40 |
Fair_Value_Measurements_Carryi
Fair Value Measurements (Carrying Amounts And Fair Values Of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Derivative asset | $2,067 | $7,395 |
Derivative liabilities | 23,311 | 24,577 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securitization Notes, fair value | 532,035 | 575,326 |
Derivative asset | 2,067 | 7,395 |
Derivative liabilities | 23,311 | 24,577 |
Carrying Amount [Member] | Nord LB Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 408,484 | 440,456 |
Carrying Amount [Member] | CBA Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 113,208 | 159,802 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securitization Notes, fair value | 467,228 | 498,038 |
Derivative asset | 2,067 | 7,395 |
Derivative liabilities | 23,311 | 24,577 |
Fair Value [Member] | Nord LB Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 408,484 | 440,456 |
Fair Value [Member] | CBA Facility [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 113,208 | 153,390 |
Term Loan [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 443,383 | 465,103 |
Term Loan [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 449,289 | 478,877 |
Fly Acquisition II [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 121,589 | 126,766 |
Fly Acquisition II [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 128,080 | 134,320 |
Other Aircraft Secured Borrowings [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 716,629 | 487,252 |
Other Aircraft Secured Borrowings [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Debt, fair value | 718,722 | 488,267 |
2020 Notes [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securitization Notes, fair value | 369,942 | 291,567 |
2020 Notes [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securitization Notes, fair value | 380,625 | 305,250 |
2021 Notes [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securitization Notes, fair value | 319,510 | |
2021 Notes [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securitization Notes, fair value | $321,750 |
Fair_Value_Measurements_Asset_
Fair Value Measurements (Asset And Liabilities Measured At Fair Value On A Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value Assets and Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative asset | $2,067 | $7,395 |
Derivative liabilities | 23,311 | 24,577 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets and Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative asset | 2,067 | 7,395 |
Derivative liabilities | $23,311 | $24,577 |
Unaudited_Quarterly_Condensed_2
Unaudited Quarterly Condensed Consolidated Financial Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Unaudited Quarterly Condensed Consolidated Financial Information [Abstract] | |||||||||||
Total revenues | $120,288 | $105,543 | $109,514 | $91,319 | $85,469 | $79,115 | $90,538 | $114,365 | $426,664 | $369,487 | $432,696 |
Net income (loss) | $15,479 | $15,361 | $21,674 | $3,563 | $13,412 | $304 | $5,915 | $32,845 | $56,077 | $52,476 | $47,669 |
Earnings (loss) per share - Basic | $0.37 | $0.37 | $0.51 | $0.07 | $0.32 | $0 | $0.20 | $1.15 | $1.32 | $1.51 | $1.81 |
Earnings (loss) per share - Diluted | $0.37 | $0.37 | $0.51 | $0.07 | $0.32 | $0 | $0.20 | $1.15 | $1.32 | $1.50 | $1.80 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 |
item | item | item | |||
Subsequent Event [Line Items] | |||||
Dividends declared and paid per share | $1 | $0.88 | $0.84 | ||
Dividends paid amount | $42.80 | $31.50 | $22.50 | ||
Number of aircraft sold | 9 | 8 | 10 | ||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends declared and paid per share | $0.25 | ||||
Dividends paid amount | $10.40 | ||||
Dividend declared date | 14-Jan-15 | ||||
Dividends payable date | 20-Feb-15 | ||||
Dividend record date | 30-Jan-15 | ||||
A-321-200 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of aircraft purchased | 2 | ||||
A-320-200 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of aircraft purchased | 2 | ||||
B-737-800 [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of aircraft sold | 3 |
Consolidated_Financial_Informa1
Consolidated Financial Information of Parent (Consoidated Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Assets | ||||
Cash and cash equivalents | $337,560 | $404,472 | $163,124 | $82,105 |
Investment in unconsolidated subsidiary | 4,002 | 8,179 | ||
Other assets, net | 31,608 | 39,650 | ||
Total assets | 4,224,670 | 3,672,359 | ||
Liabilities | ||||
Payable to related parties | 2,772 | 3,756 | ||
Unsecured borrowings, net | 689,452 | 291,567 | ||
Deferred tax liability, net | 16,289 | 7,746 | ||
Total liabilities | 3,465,796 | 2,923,536 | ||
Shareholders' equity | 758,874 | 748,823 | 532,002 | 443,033 |
Total liabilities and shareholders' equity | 4,224,670 | 3,672,359 | ||
Parent Company [Member] | ||||
Assets | ||||
Cash and cash equivalents | 218,538 | 277,267 | 82,124 | 59,821 |
Receivable From Subsidiaries | 309 | |||
Notes receivable from subsidiaries | 591,025 | 56,132 | ||
Investments in subsidiaries | 799,009 | 742,668 | ||
Investment in unconsolidated subsidiary | 4,002 | 8,179 | ||
Other assets, net | 4,097 | 1,524 | ||
Total assets | 1,616,671 | 1,086,079 | ||
Liabilities | ||||
Payable to related parties | 917 | 24,051 | ||
Payable to subsidiaries | 140,583 | |||
Unsecured borrowings, net | 689,452 | 291,567 | ||
Deferred tax liability, net | 15,951 | 17,955 | ||
Accrued and other liabilities | 10,894 | 3,683 | ||
Total liabilities | 857,797 | 337,256 | ||
Shareholders' equity | 758,874 | 748,823 | ||
Total liabilities and shareholders' equity | $1,616,671 | $1,086,079 |
Consolidated_Financial_Informa2
Consolidated Financial Information of Parent (Statements Of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | |||||||||||
Equity earnings from unconsolidated subsidiaries | $2,456 | $1,871 | $9,383 | ||||||||
Interest and other income | 662 | 1,930 | 1,634 | ||||||||
Total revenues | 120,288 | 105,543 | 109,514 | 91,319 | 85,469 | 79,115 | 90,538 | 114,365 | 426,664 | 369,487 | 432,696 |
Expenses | |||||||||||
Interest expense | 142,519 | 120,399 | 142,491 | ||||||||
Selling, general and administrative | 41,148 | 37,418 | 40,192 | ||||||||
Total expenses | 362,324 | 311,352 | 381,165 | ||||||||
Net income from continuing operations before provision for income taxes | 64,340 | 58,135 | 51,531 | ||||||||
Income tax benefit | 8,263 | 5,659 | 3,862 | ||||||||
Net income | 15,479 | 15,361 | 21,674 | 3,563 | 13,412 | 304 | 5,915 | 32,845 | 56,077 | 52,476 | 47,669 |
Weighted average number of shares: | |||||||||||
Basic | 41,405,211 | 34,129,880 | 25,792,932 | ||||||||
Diluted | 41,527,584 | 34,243,456 | 25,961,605 | ||||||||
Earnings per share: | |||||||||||
Basic | $0.37 | $0.37 | $0.51 | $0.07 | $0.32 | $0 | $0.20 | $1.15 | $1.32 | $1.51 | $1.81 |
Diluted | $0.37 | $0.37 | $0.51 | $0.07 | $0.32 | $0 | $0.20 | $1.15 | $1.32 | $1.50 | $1.80 |
Parent Company [Member] | |||||||||||
Revenues | |||||||||||
Equity in earnings of subsidiaries | 56,446 | 51,136 | 47,602 | ||||||||
Equity earnings from unconsolidated subsidiaries | 2,456 | 1,871 | 1,631 | ||||||||
Intercompany management fee income | 16,921 | 15,780 | 16,154 | ||||||||
Intercompany interest income | 22,394 | 1,407 | |||||||||
Interest and other income | 215 | 185 | 176 | ||||||||
Total revenues | 98,432 | 70,379 | 65,563 | ||||||||
Expenses | |||||||||||
Interest expense | 28,089 | 1,887 | |||||||||
Selling, general and administrative | 15,520 | 17,644 | 19,053 | ||||||||
Total expenses | 43,609 | 19,531 | 19,053 | ||||||||
Net income from continuing operations before provision for income taxes | 54,823 | 50,848 | 46,510 | ||||||||
Income tax benefit | -1,254 | -1,628 | -1,159 | ||||||||
Net income | $56,077 | $52,476 | $47,669 | ||||||||
Weighted average number of shares: | |||||||||||
Basic | 41,405,211 | 34,129,880 | 25,792,932 | ||||||||
Diluted | 41,527,584 | 34,243,456 | 25,961,605 | ||||||||
Earnings per share: | |||||||||||
Basic | $1.32 | $1.51 | $1.81 | ||||||||
Diluted | $1.32 | $1.50 | $1.80 |
Consolidated_Financial_Informa3
Consolidated Financial Information of Parent (Statements Of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net income | $56,077 | $52,476 | $47,669 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Equity earnings from unconsolidated subsidiaries | -2,456 | -1,871 | -9,383 |
Deferred income taxes | 6,169 | 6,195 | -8,180 |
Share-based compensation | 30 | 3,177 | 3,635 |
Distributions from unconsolidated subsidiaries | 5,501 | ||
Changes in operating assets and liabilities: | |||
Other assets | -1,589 | -1,969 | 5,644 |
Payable to related parties | -12,848 | -10,544 | -4,837 |
Accrued and other liabilities | 8,020 | 4,576 | 13,247 |
Net cash flows (used in) provided by operating activities | 227,165 | 181,474 | 180,382 |
Cash Flows from Investing Activities | |||
Net cash flows provided by (used in) investing activities | -840,559 | -608,590 | 56,080 |
Cash Flows from Financing Activities | |||
Proceeds for unsecured borrowings | 396,563 | 291,389 | |
Debt issuance costs | -1,803 | -11,825 | -16,483 |
Dividends | -41,392 | -30,531 | -21,629 |
Dividend equivalents | -1,426 | -940 | -884 |
Net cash flows provided by (used in) financing activities | 546,482 | 668,464 | -155,443 |
Net (decrease) increase in cash | -66,912 | 241,348 | 81,019 |
Cash at beginning of period | 404,472 | 163,124 | 82,105 |
Cash at end of period | 337,560 | 404,472 | 163,124 |
Supplemental Disclosure of Non Cash Activities: | |||
Taxes paid | 188 | 84 | 2,057 |
Parent Company [Member] | |||
Cash Flows from Operating Activities | |||
Net income | 56,077 | 52,476 | 47,669 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Equity in earnings of subsidiaries | -56,446 | -51,136 | -47,602 |
Equity earnings from unconsolidated subsidiaries | -2,456 | -1,871 | -1,631 |
Deferred income taxes | -2,004 | -1,654 | -1,203 |
Share-based compensation | 30 | 3,177 | 3,635 |
Amortization of debt discount and others | 1,537 | 76 | |
Distributions from unconsolidated subsidiaries | 5,501 | ||
Changes in operating assets and liabilities: | |||
Receivable/(payable) to subsidiaries | 117,806 | 12,797 | -3,330 |
Other assets | -1,672 | 45 | 7 |
Payable to related parties | -48 | -1,435 | 1,121 |
Accrued and other liabilities | 7,211 | 670 | 1,316 |
Net cash flows (used in) provided by operating activities | 125,536 | 13,145 | -18 |
Cash Flows from Investing Activities | |||
Capital contributions to subsidiaries | -5,058 | -256,515 | -21,000 |
Distributions received from subsidiaries | 1,925 | 6,000 | 41,462 |
Distributions received from unconsolidated subsidiary | 1,132 | 458 | |
Notes receivable from subsidiaries | -628,994 | ||
Notes payable to subsidiaries | 94,101 | ||
Net cash flows provided by (used in) investing activities | -536,894 | -250,515 | 20,920 |
Cash Flows from Financing Activities | |||
Proceeds from issuance of shares, net of fees paid | 172,595 | 23,914 | |
Proceeds for unsecured borrowings | 396,563 | 291,389 | |
Debt issuance costs | -1,116 | ||
Dividends | -41,392 | -30,531 | -21,629 |
Dividend equivalents | -1,426 | -940 | -884 |
Net cash flows provided by (used in) financing activities | 352,629 | 432,513 | 1,401 |
Net (decrease) increase in cash | -58,729 | 195,143 | 22,303 |
Cash at beginning of period | 277,267 | 82,124 | 59,821 |
Cash at end of period | 218,538 | 277,267 | 82,124 |
Supplemental Disclosure of Non Cash Activities: | |||
Interest | $21,488 |