Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2016shares | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Fly Leasing Ltd |
Entity Central Index Key | 1,407,298 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2016 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 32,256,440 |
Manager Shares Outstanding | 100 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 517,964 | $ 275,998 |
Restricted cash and cash equivalents | 94,123 | 174,933 |
Rent receivables | 419 | 124 |
Investment in unconsolidated subsidiary | 7,700 | 7,170 |
Investment in finance lease, net | 15,095 | 34,878 |
Flight equipment held for sale, net | 0 | 237,262 |
Flight equipment held for operating lease, net | 2,693,821 | 2,585,426 |
Maintenance rights, net | 101,969 | 94,493 |
Deferred tax assets, net | 7,445 | 7,505 |
Fair value of derivative assets | 1,905 | 241 |
Other assets, net | 6,568 | 6,450 |
Total assets | 3,447,009 | 3,424,480 |
Liabilities | ||
Accounts payable and accrued liabilities | 13,786 | 17,548 |
Rentals received in advance | 13,123 | 14,560 |
Payable to related parties | 5,042 | 7,170 |
Security deposits | 42,495 | 48,876 |
Maintenance payment liability | 182,571 | 194,543 |
Unsecured borrowings, net | 691,390 | 689,409 |
Secured borrowings, net | 1,831,985 | 1,695,711 |
Deferred tax liability, net | 19,847 | 28,246 |
Fair value of derivative liabilities | 13,281 | 19,327 |
Other liabilities | 40,254 | 52,126 |
Total liabilities | 2,853,774 | 2,767,516 |
Shareholders' equity | ||
Common shares, $0.001 par value; 499,999,900 shares authorized; 32,256,440 and 35,671,400 shares issued and outstanding at December 31, 2016 and 2015, respectively | 32 | 36 |
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 536,922 | 577,290 |
Retained earnings | 66,026 | 95,138 |
Accumulated other comprehensive loss, net | (9,745) | (15,500) |
Total shareholders' equity | 593,235 | 656,964 |
Total liabilities and shareholders' equity | $ 3,447,009 | $ 3,424,480 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Shareholders' equity | ||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, shares authorized (in shares) | 499,999,900 | 499,999,900 |
Common shares, shares issued (in shares) | 32,256,440 | 35,671,400 |
Common shares, shares outstanding (in shares) | 32,256,440 | 35,671,400 |
Manager shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Manager shares, shares authorized (in shares) | 100 | 100 |
Manager shares, shares issued (in shares) | 100 | 100 |
Manager shares, shares outstanding (in shares) | 100 | 100 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||
Operating lease revenue | $ 313,582 | $ 429,691 | $ 406,563 |
Finance lease income | 2,066 | 299 | 0 |
Equity earnings from unconsolidated subsidiary | 530 | 1,159 | 3,562 |
Gain on sale of aircraft | 27,195 | 28,959 | 14,761 |
Interest and other income | 1,666 | 2,289 | 662 |
Total revenues | 345,039 | 462,397 | 425,548 |
Expenses | |||
Depreciation | 120,452 | 159,732 | 166,983 |
Aircraft impairment | 96,122 | 66,093 | 1,200 |
Interest expense | 123,161 | 145,448 | 142,519 |
Selling, general and administrative | 30,077 | 33,674 | 41,033 |
Ineffective, dedesignated and terminated derivatives | 91 | 4,134 | 72 |
Net (gain) loss on extinguishment of debt | 9,246 | 17,491 | (2,194) |
Maintenance and other costs | 2,279 | 7,628 | 7,060 |
Total expenses | 381,428 | 434,200 | 356,673 |
Net income (loss) before provision for income taxes | (36,389) | 28,197 | 68,875 |
Provision (benefit) for income taxes | (7,277) | 5,399 | 8,691 |
Net income (loss) | $ (29,112) | $ 22,798 | $ 60,184 |
Weighted average number of shares: | |||
Basic (in shares) | 33,239,001 | 41,222,690 | 41,405,211 |
Diluted (in shares) | 33,239,001 | 41,315,149 | 41,527,584 |
Earnings (loss) per share: | |||
Basic (in dollars per shares) | $ (0.88) | $ 0.52 | $ 1.42 |
Diluted (in dollars per shares) | (0.88) | 0.52 | 1.42 |
Dividends declared and paid per share (in dollars per shares) | $ 0 | $ 1 | $ 1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||||
Consolidated Statements of Comprehensive Income [Abstract] | ||||||
Net income (loss) | $ (29,112) | $ 22,798 | $ 60,184 | |||
Other components of comprehensive income (loss), net of tax: | ||||||
Change in fair value of derivatives, net of deferred tax | [1],[2] | 5,036 | 158 | (3,238) | ||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax | [3] | (10) | [1] | (130) | [1] | 0 |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [4] | 729 | [1] | 1,563 | [1] | 0 |
Comprehensive income (loss) | $ (23,357) | $ 24,389 | $ 56,946 | |||
[1] | See Note 11 to Notes to Consolidated Financial Statements. | |||||
[2] | The associated deferred tax expense was $0.7 million and $0.3 million for the years ended December 31, 2016 and 2015, respectively. The associated deferred tax benefit was $0.6 million for the year ended December 31, 2014. | |||||
[3] | The associated deferred tax benefit was $1,000 and $19,000 for the years ended December 31, 2016 and 2015, respectively. | |||||
[4] | The associated deferred tax expense was $0.1 million and $0.2 million for the years ended December 31, 2016 and 2015, respectively. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other components of comprehensive income (loss), net of tax: | |||
Change in fair value of derivatives, deferred tax expense (benefit) | $ 700 | $ 300 | $ (600) |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | (1) | (19) | |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 100 | $ 200 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Manager Shares [Member] | Common Shares [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Other Comprehensive Loss, Net [Member] | Total | ||
Beginning balance at Dec. 31, 2013 | $ 0 | $ 41 | $ 658,492 | $ 97,416 | $ (13,853) | $ 742,096 | ||
Beginning balance (in shares) at Dec. 31, 2013 | 100 | 41,306,338 | ||||||
Dividends to shareholders | $ 0 | $ 0 | 0 | (41,392) | 0 | (41,392) | ||
Dividend equivalents | 0 | 0 | 0 | (1,426) | 0 | (1,426) | ||
Shares issued in connection with vested share grants | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||
Shares issued in connection with vested share grants (in shares) | 0 | 119,666 | ||||||
Shares issued in connection with SARs exercised | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | ||
Shares issued in connection with SARs exercised (in shares) | 0 | 6,994 | ||||||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | |||||||
Share-based compensation | $ 0 | $ 0 | 30 | 0 | 0 | $ 30 | ||
Net income (loss) | 0 | 0 | 0 | 60,184 | 0 | 60,184 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (3,238) | (3,238) | [2] |
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax | [3] | 0 | ||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [4] | 0 | ||||||
Ending balance at Dec. 31, 2014 | $ 0 | $ 41 | 658,522 | 114,782 | (17,091) | 756,254 | ||
Ending balance (in shares) at Dec. 31, 2014 | 100 | 41,432,998 | ||||||
Dividends to shareholders | $ 0 | $ 0 | 0 | (41,388) | 0 | (41,388) | ||
Dividend equivalents | 0 | 0 | 0 | (1,054) | 0 | (1,054) | ||
Shares issued in connection with vested share grants | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||
Shares issued in connection with vested share grants (in shares) | 0 | 36,075 | ||||||
Shares repurchased pursuant to share repurchase program | $ 0 | $ 0 | (5,529) | 0 | 0 | $ (5,529) | ||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | (421,329) | (5,797,673) | |||||
Shares repurchased pursuant to tender offer | $ 0 | $ (5) | (75,898) | 0 | 0 | $ (75,903) | ||
Shares repurchased pursuant to tender offer (in shares) | 0 | (5,376,344) | ||||||
Share-based compensation | $ 0 | $ 0 | 195 | 0 | 0 | 195 | ||
Net income (loss) | 0 | 0 | 0 | 22,798 | 0 | 22,798 | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 158 | 158 | [2] |
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (130) | (130) | [3] |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 1,563 | 1,563 | [4] |
Ending balance at Dec. 31, 2015 | $ 0 | $ 36 | 577,290 | 95,138 | (15,500) | 656,964 | ||
Ending balance (in shares) at Dec. 31, 2015 | 100 | 35,671,400 | ||||||
Shares repurchased pursuant to share repurchase program | $ 0 | $ (4) | (40,368) | 0 | 0 | $ (40,372) | ||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | (3,414,960) | (3,414,960) | |||||
Net income (loss) | $ 0 | $ 0 | 0 | (29,112) | 0 | $ (29,112) | ||
Net change in the fair value of derivatives, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 5,036 | 5,036 | [2] |
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax | [1] | 0 | 0 | 0 | 0 | (10) | (10) | [3] |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1] | 0 | 0 | 0 | 0 | 729 | 729 | [4] |
Ending balance at Dec. 31, 2016 | $ 0 | $ 32 | $ 536,922 | $ 66,026 | $ (9,745) | $ 593,235 | ||
Ending balance (in shares) at Dec. 31, 2016 | 100 | 32,256,440 | ||||||
[1] | See Note 11 to Notes to Consolidated Financial Statements. | |||||||
[2] | The associated deferred tax expense was $0.7 million and $0.3 million for the years ended December 31, 2016 and 2015, respectively. The associated deferred tax benefit was $0.6 million for the year ended December 31, 2014. | |||||||
[3] | The associated deferred tax benefit was $1,000 and $19,000 for the years ended December 31, 2016 and 2015, respectively. | |||||||
[4] | The associated deferred tax expense was $0.1 million and $0.2 million for the years ended December 31, 2016 and 2015, respectively. |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statement of Shareholders' Equity [Abstract] | |||
Change in fair value of derivatives, deferred tax expense (benefit) | $ 700 | $ 300 | $ (600) |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | (1) | (19) | |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 100 | $ 200 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities | |||
Net income (loss) | $ (29,112) | $ 22,798 | $ 60,184 |
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||
Equity in earnings from unconsolidated subsidiary | (530) | (1,159) | (3,562) |
Finance lease income | (2,066) | (299) | 0 |
Gain on sale of aircraft | (27,195) | (28,959) | (14,761) |
Depreciation | 120,452 | 159,732 | 166,983 |
Aircraft impairment | 96,122 | 66,093 | 1,200 |
Amortization of debt discounts and debt issuance costs | 9,375 | 11,922 | 12,516 |
Amortization of lease incentives | 8,898 | 20,527 | 18,934 |
Amortization of lease discounts, premiums and other items | 388 | 2,046 | 2,841 |
Amortization of GAAM acquisition date fair value adjustments | 1,621 | 3,650 | 6,260 |
Net loss (gain) on debt modification and extinguishment | 6,094 | 13,868 | (2,247) |
Share-based compensation | 0 | 195 | 30 |
Unrealized foreign exchange gain | (437) | (1,247) | 0 |
Provision for deferred income taxes | (9,158) | 4,919 | 5,733 |
Unrealized loss on derivative instruments | 76 | 4,134 | 38 |
Security deposits and maintenance payment liability recognized into earnings | (3,450) | (48,658) | (32,271) |
Security deposits and maintenance payment claims applied towards operating lease revenues | (684) | 0 | 0 |
Distributions from unconsolidated subsidiary | 0 | 0 | 5,501 |
Cash receipts in settlement of maintenance rights | 9,513 | 0 | 0 |
Changes in operating assets and liabilities: | |||
Rent receivables | (1,034) | 6,814 | (4,767) |
Other assets | (1,134) | 137 | (1,589) |
Payable to related parties | (17,163) | (19,407) | (12,848) |
Accounts payable, accrued liabilities and other liabilities | (10,965) | (2,183) | 18,990 |
Net cash flows (used in) provided by operating activities | 149,611 | 214,923 | 227,165 |
Cash Flows from Investing Activities | |||
Distributions from (investment in) unconsolidated subsidiary | 0 | (2,009) | 1,132 |
Rent received from finance lease | 2,970 | 424 | 0 |
Investment in finance lease | 0 | (33,596) | 0 |
Purchase of flight equipment | (552,166) | (567,523) | (915,450) |
Proceeds from sale of aircraft, net | 430,867 | 1,110,046 | 88,617 |
Payments for aircraft improvement | (2,230) | (8,196) | (9,841) |
Payments for maintenance | (2,712) | (18,609) | (5,017) |
Net cash flows provided by (used in) investing activities | (123,271) | 480,537 | (840,559) |
Cash Flows from Financing Activities | |||
Restricted cash and cash equivalents | 80,828 | (35,794) | 35,690 |
Security deposits received | 920 | 13,914 | 18,134 |
Security deposits returned | (7,438) | (7,788) | (4,728) |
Maintenance payment liability receipts | 71,514 | 84,491 | 85,172 |
Maintenance payment liability disbursements | (10,951) | (38,768) | (45,412) |
Net swap termination payments | (709) | (3,737) | 0 |
Debt issuance costs | (2,552) | (933) | (1,803) |
Proceeds from unsecured borrowings | 0 | 0 | 396,563 |
Proceeds from secured borrowings | 572,719 | 147,276 | 298,658 |
Repayment of secured borrowings | (448,346) | (791,385) | (192,974) |
Shares repurchased | (40,257) | (81,432) | 0 |
Dividends paid | 0 | (41,388) | (41,392) |
Dividend equivalents | 0 | (1,054) | (1,426) |
Net cash flows provided by (used in) financing activities | 215,728 | (756,598) | 546,482 |
Effect of exchange rate changes on cash and cash equivalents | (102) | (424) | 0 |
Net increase (decrease) in cash and cash equivalents | 241,966 | (61,562) | (66,912) |
Cash and cash equivalents at beginning of year | 275,998 | 337,560 | 404,472 |
Cash and cash equivalents at end of year | 517,964 | 275,998 | 337,560 |
Cash paid during the year for: | |||
Interest | 110,351 | 132,780 | 119,745 |
Taxes | 460 | 384 | 188 |
Noncash Activities: | |||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 0 | 3,292 | 1,938 |
Maintenance payment liability applied to rent receivables and rentals received in advance | 0 | 2,523 | 0 |
Other liabilities applied to maintenance payment liability and rent receivables | 2,550 | 240 | 979 |
Noncash investing activities: | |||
Aircraft improvement | 5,245 | 1,587 | 2,882 |
Noncash activities in connection with purchase of aircraft | 6,388 | 19,382 | 26,002 |
Noncash activities in connection with sale of aircraft | $ 78,722 | $ 93,819 | $ 12,479 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2016 | |
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 ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PREPARATION Fly is a holding company that conducts its business through its subsidiaries. The Company directly or indirectly owns all of the common shares of its consolidated subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). The consolidated financial statements include the accounts of Fly and all of its subsidiaries. In instances where it is the primary beneficiary, Fly will consolidate a Variable Interest Entity (“VIE”). Fly is deemed the primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the economic performance of such VIE, and it bears the significant risk of loss and participates in gains of the VIE. All intercompany transactions and balances have been eliminated. The consolidated financial statements are stated in U.S. Dollars, which is the principal operating currency of the Company. The Company has one operating and reportable segment which is aircraft leasing. PRIOR PERIOD RECLASSIFICATION In 2016, the Company corrected how it presents its consolidated deferred tax balance on its Consolidated Balance Sheet from prior periods. The Company has grouped and showed separately on the Consolidated Balance Sheet, as either an asset or liability, its subsidiaries that have a net deferred tax asset and those that have a net deferred tax liability balance as of the period end. As a result, the Company reclassified $7.5 million from the previously reported net deferred tax liability balance to deferred tax assets, net, as of December 31, 2015, to conform to the current period presentation. The reclassification had no impact to the Company’s previously reported net income, including earnings per share or shareholders’ equity. 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 or its deferred tax arrangements. 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, 2016 and 2015, the Company had no allowance for doubtful accounts. In addition, the Company places a lessee on non-accrual status once it determines that it is no longer probable that the Company will receive the economic benefits of the lease. The Company recognizes revenue from a lessee on non-accrual status only as cash is received. INVESTMENT IN UNCONSOLIDATED SUBSIDIARY Fly has a 57.4% interest in Fly-Z/C Aircraft Holdings LP (“Fly-Z/C LP”). Fly accounts for its interest in the unconsolidated subsidiary using the equity method as the Company does not control the entity. Under the equity method, the Company’s investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated subsidiary’s undistributed earnings and losses, and distributions of dividends and capital. The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiary, or whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification. INVESTMENT IN FINANCE LEASE The Company has recorded one lease as an investment in finance lease. The investment in finance lease equals the sum of amounts to be received under the lease, plus the estimated residual value of the equipment at lease termination, less unearned income. Residual value reflects management’s estimate of the amounts to be received at lease termination from the re-lease or disposition of the leased equipment. Initial unearned income represents the amount by which the original sum of the lease receivable and the estimated residual value exceeds the original cost of the leased equipment. Unearned income is recognized as finance lease income over the lease term in a manner that produces a constant rate of return on the net investment in the lease based on an implicit interest rate. Initial direct costs and fees related to lease origination are deferred as part of the investment and amortized over the lease term. FLIGHT EQUIPMENT HELD FOR SALE In accordance with guidance provided by the Financial Accounting Standards Board (“FASB”), flight equipment is classified as held for sale when the Company commits to and commences a plan of sale that is reasonably expected to be completed within one year and satisfies certain other held for sale criteria. Flight equipment held for sale is recorded at the lesser of carrying value or fair value, less estimated cost to sell. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. Rent collected from the sale contract date through the aircraft disposition date reduces the sale proceeds and gain on sale of aircraft. Imputed interest earned from the sale contract date through the aircraft disposition date increases the selling price of an aircraft. An impairment loss is recorded for an asset or asset group held for sale when the carrying value of the asset or asset group exceeds its fair value, less estimated cost to sell. An aircraft classified as held for sale is not depreciated. Subsequent changes to the asset’s fair value are recorded as adjustments to the carrying value of the flight equipment. However, any such adjustment will not cause the asset’s fair value to exceed its original carrying value. FLIGHT EQUIPMENT HELD FOR OPERATING LEASE Flight equipment held for operating lease are recorded at cost and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of the original manufacturer’s estimated realized price for the flight equipment when new. Management may, at its discretion, make exceptions to this policy on a case by case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of residual values. Examples of such situations include, but are not limited to: • Flight equipment where original manufacturer’s prices are not relevant due to plane modifications and conversions. • Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence. • The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture. • Flight equipment that management believes will be disposed of prior to the end of its estimated useful life. Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, during each reporting period. Major aircraft improvements or lessee-specific modifications to the aircraft to be performed by the Company pursuant to any lease agreement are accounted for as lease incentives and amortized against revenue over the term of the lease, assuming no lease renewals. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination.Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the remaining life of the flight equipment. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. IMPAIRMENT OF FLIGHT EQUIPMENT The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company’s evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft, adverse changes in market conditions for specific aircraft types, third party appraisals of aircraft, published values for similar aircraft, any occurrence of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of the Company’s aircraft. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value. Future cash flows are assumed to occur under current market conditions and assume adequate time for a sale between a willing and able buyer and a willing seller. Expected future lease rates are based on all relevant information available, including the existing lease, current contracted rates for similar aircraft, appraisal data and industry trends. Residual value assumptions generally reflect an aircraft’s salvage value, except where more recent industry information indicates a different value is appropriate. 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. MAINTENANCE RIGHTS The Company identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft with in-place leases. A maintenance right asset represents the fair value of its contractual right under a lease to receive an aircraft in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company’s obligation to pay the lessee for the difference between the lease end contractual maintenance condition of the aircraft at lease expiry and the actual maintenance condition of the aircraft on the acquisition date. The Company’s aircraft are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in its leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases). EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft into a specified maintenance condition. Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft is greater than the contractual return condition in the lease at lease expiry and the Company is required to pay the lessee in cash for the improved maintenance condition. Maintenance right assets, net are recorded as a separate line item on the Company’s balance sheet. When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company’s capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company’s capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with our policy with respect to major maintenance. When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement. MR Leases Under MR Leases, the lessee is required to make periodic payments to us for maintenance based upon usage of the aircraft. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee. Maintenance right assets in MR Leases represent the right to receive an aircraft in an improved condition relative to the actual condition on the acquisition date. The aircraft is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives. Maintenance right assets, net will be recorded as a separate line item on the Company’s balance sheet. When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income, which is consistent with the Company’s existing policy; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded. There are no maintenance right liabilities for MR Leases. When flight equipment is sold, maintenance rights are released from the balance sheet as part of the disposition gain or loss. DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to manage its exposure to interest rate and foreign currency risks. All derivatives are recognized on the balance sheet at their fair values. Pursuant to 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 every reporting period thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair market value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction. OTHER ASSETS Other assets consist primarily of unamortized lease premiums, initial direct lease costs and other miscellaneous receivables. Lease premiums are amortized into operating lease income over the lease term. SECURITY DEPOSITS In the normal course of leasing aircraft to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease. MAINTENANCE PAYMENT LIABILITY The Company’s flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly’s operating leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration and airworthiness directives. Under the terms of the lease agreements, cash collected from lessees for future maintenance of the aircraft is recorded as maintenance payment liabilities. The Company does not recognize such maintenance payments as revenue during the lease. 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, recognition is delayed until the criteria are met. • Operating lease revenue. • End of lease income. • Lease incentives. • Finance lease income. SHARE-BASED COMPENSATION The Company has a 2010 Omnibus Incentive Plan (“2010 Plan”) permitting the issuance of up to 1,500,000 share grants in the form of (i) stock appreciation rights (“SARs”); (ii) restricted stock units (“RSUs”); (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. Compensation expense associated with grants to employees were valued at the grant date and amortized on a straight-line basis over the service period. Grants to non-employees were initially measured at grant date, and then re-measured at each interim reporting period until the awards vested. Determining the appropriate fair value model and calculation of the fair value of stock-based awards required judgment, including estimating stock price volatility, forfeitures and expected grant life. INCOME TAXES The Company provides for income taxes by tax jurisdiction. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statements and tax basis of existing assets and liabilities at the enacted tax rates expected to apply when the assets are recovered or liabilities are settled. A valuation allowance is used to reduce deferred tax assets to the amount that management ultimately expects to be more-likely-than-not realized. The Company applies a recognition threshold of more-likely-than-not to be sustained in the examination of income tax on uncertainties. 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, 2016, 2015 and 2014. NEW ACCOUNTING PRONOUNCEMENTS In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, FASB issued its new lease standard, ASU 2016-02, Leases Leases In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In October 2016, FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In January 2017, FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business |
INVESTMENT IN FINANCE LEASE
INVESTMENT IN FINANCE LEASE | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
INVESTMENT IN FINANCE LEASE | 3. INVESTMENT IN FINANCE LEASE At December 31, 2016 and 2015, the Company had one investment in finance lease. At December 31, 2016, the Company’s investment in finance lease was the result of an amendment to an existing operating lease which was then reclassified as a finance lease, resulting in a gain of $2.7 million. The implicit interest rate in this finance lease was 5%. At December 31, 2015, the Company’s investment in finance lease was attributable to one aircraft, which was then sold in 2016, recognizing a $4.2 million gain on sale of aircraft. The implicit interest rate in this finance lease was 10%. During the years ended December 31, 2016 and 2015, the Company recognized finance lease income totaling $2.1 million and $0.3 million, respectively. The Company’s net investment in finance lease consisted of the following (dollars in thousands): December 31, 2016 December 31, 2015 Total minimum lease payments receivable $ 15,080 $ 45,901 Estimated unguaranteed residual value of leased asset 4,227 15,000 Unearned finance income (4,212 ) (26,023 ) Net Investment in Finance Lease $ 15,095 $ 34,878 Presented below are the contracted future minimum rental payments due under non-cancellable finance lease, as of December 31, 2016. Year ending December 31, (Dollars in thousands) 2017 $ 1,880 2018 1,800 2019 1,800 2020 1,800 2021 1,800 Thereafter 6,000 Future minimum rental payments under finance lease $ 15,080 |
FLIGHT EQUIPMENT HELD FOR SALE
FLIGHT EQUIPMENT HELD FOR SALE | 12 Months Ended |
Dec. 31, 2016 | |
FLIGHT EQUIPMENT HELD FOR SALE [Abstract] | |
FLIGHT EQUIPMENT HELD FOR SALE | 4. FLIGHT EQUIPMENT HELD FOR SALE In 2015, the Company agreed to sell 45 aircraft in two portfolio sales (the “Sale Transactions”). The Company delivered 32 of these aircraft to the purchasers and recognized a gain on sale of aircraft of $33.0 million in 2015. The Company delivered the remaining 13 aircraft and recognized a gain on sale of aircraft of $5.0 million in 2016. At December 31, 2015, the Company had 13 aircraft held for sale with a total net book value of $237.3 million. At December 31, 2016, the Company had no flight equipment held for sale. |
FLIGHT EQUIPMENT HELD FOR OPERA
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE | 12 Months Ended |
Dec. 31, 2016 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASES | 5. FLIGHT EQUIPMENT HELD FOR OPERATING LEASE As of December 31, 2016, the Company had 75 aircraft held for operating lease, on lease to 41 lessees in 26 countries. As of December 31, 2015, the Company had 79 aircraft held for operating lease, of which 77 aircraft were on lease to 43 lessees in 27 countries, and two aircraft were off-lease. During the year ended December 31, 2016, the Company purchased ten aircraft held for operating lease, and capitalized $545.8 million. During the year ended December 31, 2015, the Company purchased nine aircraft held for operating lease, and capitalized $585.4 million. During the year ended December 31, 2016, the Company sold 13 aircraft held for operating lease, 12 of which generated a $15.2 million gain on sale of aircraft. The Company recorded a gain on debt extinguishment of $0.6 million with the sale of the last aircraft, which was financed by a secured borrowing. The sale proceeds were paid to the lender as full and final discharge of the associated loan. During the year ended December 31, 2015, the Company sold 12 aircraft held for operating lease and recognized a loss on sale of aircraft of $4.0 million. During the year ended December 31, 2014, the Company sold eight aircraft held for operating lease, six of which generated a gain on sale of aircraft of $14.8 million. The Company recorded a gain on debt extinguishment of $2.3 million in connection with the sale of the other two aircraft. The sale proceeds were paid to the lenders as full and final discharge of the loans secured by these two aircraft. During the year ended December 31, 2016, the Company recognized aircraft impairment of $96.1 million related to one narrow-body aircraft and three wide-body aircraft. The Company sold the narrow-body aircraft in the third quarter of 2016, with proceeds paid to the lender in full satisfaction of the associated debt. During the year ended December 31, 2015, the Company recognized aircraft impairment of $66.1 million. The impairment charge related to three wide-body aircraft nearing the end of their economic lives and 11 narrow-body aircraft, ten of which were sold in 2015 and 2016. For the year ended December 31, 2014, the Company recognized an impairment loss of $1.2 million in respect of a wide-body aircraft. This aircraft was sold during the first quarter of 2016. Flight equipment held for operating lease consists of the following (dollars in thousands): December 31, 2016 December 31, 2015 Cost $ 3,180,160 $ 3,059,974 Accumulated depreciation (486,339 ) (474,548 ) Flight equipment held for operating lease, net $ 2,693,821 $ 2,585,426 The Company capitalized $5.7 million and $26.1 million of major maintenance expenditures for the years ended December 31, 2016 and 2015, respectively. In 2016, the full amount of the maintenance expenditures was capitalized in flight equipment held for operating lease. Of the amount capitalized in 2015, $16.6 million was included in flight equipment held for operating lease, and $9.5 million was included in flight equipment held for sale. 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 lessees. The distribution of the net book value of flight equipment held for operating lease by geographic region is as follows (dollars in thousands): December 31, 2016 December 31, 2015 Europe: United Kingdom $ 143,560 5 % $ 244,179 9 % Turkey 142,787 5 % 171,861 7 % Russia 17,582 1 % — — Other 335,483 13 % 359,929 14 % Europe — Total 639,412 24 % 775,969 30 % Asia and South Pacific: India 574,853 21 % 208,009 8 % Philippines 279,031 10 % 289,558 11 % China 194,774 7 % 221,576 9 % Other 216,244 9 % 224,015 8 % Asia and South Pacific — Total 1,264,902 47 % 943,158 36 % Mexico, South and Central America: Chile 86,251 3 % 89,406 4 % Other 83,368 3 % 87,561 3 % Mexico, South and Central America — Total 169,619 6 % 176,967 7 % North America: United States 156,472 6 % 218,363 9 % Other 55,044 2 % 57,906 2 % North America — Total 211,516 8 % 276,269 11 % Middle East and Africa: Ethiopia 332,817 12 % 342,736 13 % Other 75,555 3 % 51,056 2 % Middle East and Africa — Total 408,372 15 % 393,792 15 % Off-Lease — Total — — 19,271 1 % Total flight equipment held for operating lease, net $ 2,693,821 100 % $ 2,585,426 100 % The distribution of operating lease revenue by geographic region for the years ended December 31, 2016, 2015 and 2014 is as follows (dollars in thousands): Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 As restated Europe: United Kingdom $ 34,498 11 % $ 50,742 12 % $ 46,281 11 % Turkey 24,593 8 % 29,847 7 % 27,069 7 % Russia 3,141 1 % 24,095 6 % 9,017 2 % Other 44,450 14 % 73,872 17 % 73,660 19 % Europe — Total 106,682 34 % 178,556 42 % 156,027 39 % Asia and South Pacific: India 39,640 13 % 19,572 4 % 32,675 8 % Philippines 29,129 9 % 38,677 9 % 12,947 3 % China 23,882 8 % 37,943 9 % 47,049 12 % Other 27,287 8 % 39,056 9 % 45,855 11 % Asia and South Pacific — Total 119,938 38 % 135,248 31 % 138,526 34 % Mexico, South and Central America: Chile 8,939 3 % 24,336 6 % 28,116 7 % Other 8,768 3 % 16,732 4 % 21,733 5 % Mexico, South and Central America — Total 17,707 6 % 41,068 10 % 49,849 12 % North America: United States 24,591 8 % 37,316 9 % 41,531 10 % Other 6,223 2 % 6,380 1 % 3,429 1 % North America — Total 30,814 10 % 43,696 10 % 44,960 11 % Middle East and Africa: Ethiopia 30,084 10 % 22,808 5 % 4,501 1 % Other 8,357 2 % 8,315 2 % 12,700 3 % Middle East and Africa — Total 38,441 12 % 31,123 7 % 17,201 4 % Total Operating Lease Revenue $ 313,582 100 % $ 429,691 100 % $ 406,563 100 % No customer accounted for 10% or more of total operating lease revenue for any of the years ended December 31, 2016, 2015 and 2014. At December 31, 2016, no lessees were on non-accrual status. At each of December 31, 2015 and 2014, the Company had two lessees on non-accrual status, as the Company had determined that it was not probable that the economic benefits of the lease would be received by the Company, principally due to (i) the lessees' failure to pay rent and overhaul payments and (ii) the Company’s evaluation of the lessees' payment history. For the years ended December 31, 2016, 2015 and 2014, the Company recognized end of lease revenues totaling $8.9 million, $53.8 million and $41.7 million, respectively. For the year ended December 31, 2016, there was no amortization of lease premiums and discounts. For the years ended December 31, 2015 and 2014, the amortization of lease premiums, net of lease discounts which were included as a component of operating lease revenue, was $1.4 million and $3.0 million, respectively. As of December 31, 2016 and 2015, the weighted average remaining lease term of the Company’s aircraft held for operating lease was 6.8 years and 6.6 years, respectively. Presented below are the contracted future minimum rental payments due under non-cancellable operating leases, as of December 31, 2016. For leases that have floating rental rates, the future minimum rental payments due assume that the rental payment due as of December 31, 2016 is held constant for the duration of the lease. Year ending December 31, (Dollars in thousands) 2017 $ 319,070 2018 292,188 2019 248,419 2020 220,893 2021 199,212 Thereafter 699,356 Future minimum rental payments under operating leases $ 1,979,138 For the years ended December 31, 2016, 2015 and 2014, amortization of lease incentives recorded as a reduction of operating lease revenue totaled $8.9 million, $20.5 million and $18.9 million, respectively. At December 31, 2016, lease incentive amortization for the next five years and thereafter is as follows (dollars in thousands): Year ending December 31, 2017 $ 6,528 2018 6,854 2019 6,130 2020 4,352 2021 2,502 Thereafter 1,164 Future amortization of lease incentives $ 27,530 |
MAINTENANCE RIGHTS
MAINTENANCE RIGHTS | 12 Months Ended |
Dec. 31, 2016 | |
MAINTENANCE RIGHTS [Abstract] | |
MAINTENANCE RIGHTS | 6. MAINTENANCE RIGHTS Changes in maintenance right assets, net of maintenance right liabilities, during the years ended December 31, 2016 and 2015 were as follows (dollars in thousands): December 31, 2016 December 31, 2015 Maintenance rights, net beginning balance $ 94,493 $ 144,920 Acquisitions 28,412 8,606 Capitalized to aircraft improvements (5,245 ) (6,591 ) Maintenance rights written off against end of lease income — (5,781 ) Cash receipts in settlement of maintenance rights (9,513 ) (5,253 ) Maintenance rights associated with aircraft sold (6,178 ) (41,408 ) Maintenance rights, net at end of period $ 101,969 $ 94,493 |
INVESTMENT IN UNCONSOLIDATED SU
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY [Abstract] | |
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY | 7. INVESTMENT IN UNCONSOLIDATED SUBSIDIARY The Company has a 57.4% limited partnership interest in Fly-Z/C LP. Summit Aviation Partners LLC has a 10.2% interest in the joint venture and the limited partners appointed a subsidiary of BBAM Limited Partnership as the general partner of the joint venture. For the years ended December 31, 2016, 2015 and 2014, the Company recognized $0.5 million, $1.2 million and $3.6 million, respectively, in equity earnings from its investment in Fly-Z/C LP. During the year ended December 31, 2015, the Company contributed $2.0 million into Fly-Z/C LP. During the year ended December 31, 2014, the Company received distributions totaling $6.6 million. During the years ended December 31, 2016 and 2015, respectively, the Company received no distributions. |
OTHER ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 31, 2016 | |
OTHER ASSETS [Abstract] | |
OTHER ASSETS | 8. OTHER ASSETS The principal components of the Company’s other assets are as follows (dollars in thousands): December 31, 2016 December 31, 2015 Lease costs, net $ 1,730 $ 2,176 Other assets 4,838 4,274 Total other assets $ 6,568 $ 6,450 |
UNSECURED BORROWINGS
UNSECURED BORROWINGS | 12 Months Ended |
Dec. 31, 2016 | |
UNSECURED BORROWINGS [Abstract] | |
UNSECURED BORROWINGS | 9. UNSECURED BORROWINGS Balance as of December 31, 2016 December 31, 2015 (Dollars in thousands) Outstanding principal balance: 2020 Notes $ 375,000 $ 375,000 2021 Notes 325,000 325,000 Total outstanding principal balance 700,000 700,000 Unamortized debt discounts and loan costs (8,610 ) (10,591 ) Unsecured borrowings, net $ 691,390 $ 689,409 On December 11, 2013, the Company sold $300.0 million aggregate principal amount of unsecured 6.75% Senior Notes due 2020 (together with the Additional 2020 Notes (as defined below), the “2020 Notes”). In connection with the issuance, the Company paid an underwriting discount totaling $8.5 million. On October 3, 2014, the Company sold $75.0 million aggregate principal amount of unsecured 6.75% Senior Notes due 2020 (the “Additional 2020 Notes”) and $325.0 million aggregate principal amount of 6.375% Senior Notes due 2021 (the “2021 Notes”). The Additional 2020 Notes were issued as additional notes under the 2020 Notes indenture, and were sold at a price equal to 104.75% of the principal amount thereof. The 2021 Notes were issued under an indenture containing substantially similar terms as the indenture governing the 2020 Notes and were sold at par. In connection with these issuances, the Company paid a net underwriting discount totaling $3.4 million. The 2020 Notes and 2021 Notes are unsecured obligations of the Company and rank pari passu Interest on the 2020 Notes is payable semi-annually on June 15 and December 15 of each year. Interest on the 2021 Notes is payable semi-annually on April 15 and October 15 of each year. 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. If 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 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. If redeemed during the 12-month period commencing on October 15 of the years set forth below: Redemption Price 2017 104.781 % 2018 103.188 % 2019 101.594 % 2020 and thereafter 100.000 % 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 indentures governing the 2020 Notes and the 2021 Notes), 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. Pursuant to the indentures governing the 2020 Notes and 2021 Notes, the Company is subject to restrictive covenants which relate to dividend payments, incurrence of debt and issuance of guarantees, incurrence of liens, repurchases of common shares, investments, disposition of aircraft, consolidation, merger or sale of the Company and transactions with affiliates. The Company is also subject to certain operating covenants, including reporting requirements. The Company’s failure to comply with any of the covenants under the indentures governing the 2020 Notes or 2021 Notes could result in an event of default which, if not cured or waived, may result in the acceleration of the indebtedness thereunder and other indebtedness containing cross-default or cross-acceleration provisions. Certain of these covenants will be suspended if the 2020 Notes or 2021 Notes obtain an investment grade rating. The indentures governing the 2020 Notes and the 2021 Notes contain customary events of default with respect to the notes of each series, including (i) default in payment when due and payable of principal or premium, (ii) default for 30 days or more in payment when due of interest, (iii) failure by us or any restricted subsidiary for 60 days after receipt of written notice given by the trustee or the holders of at least 25% in aggregate principal amount of the notes of such series then issued and outstanding to comply with any of the other agreements under the indenture, (iv) default in any of the aircraft owning entities in respect of obligations in excess of $50.0 million, which holders of such obligation accelerate or demand repayment of amounts due thereunder, (v) failure by us or any significant subsidiary to pay final judgments aggregating in excess of $50.0 million for 60 days after such judgment becomes final, subject to certain non-recourse exceptions, and (vi) certain events of bankruptcy or insolvency with respect to us or a significant subsidiary. As of December 31, 2016, 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, 2016 | |
SECURED BORROWINGS [Abstract] | |
SECURED BORROWINGS | 10. SECURED BORROWINGS The Company’s secured borrowings balance, net as of December 31, 2016 and 2015 are presented below (dollars in thousands): Outstanding principal balance as of Weighted average interest rate (1) as of Maturity date December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Securitization Notes $ 139,741 $ 295,786 3.36 % 3.38 % November 2033 Nord LB Facility 171,509 255,278 4.14 % 4.04 % November 2018 CBA Facility 56,146 88,190 5.45 % 5.02 % October 2020 Term Loan 404,016 427,781 4.41 % 4.39 % February 2022 Fly Acquisition III Facility 113,045 — 2.88 % — February 2022 Other Aircraft Secured Borrowings 980,967 663,069 3.50 % 3.63 % September 2019 – June 2028 Unamortized debt discounts and loan costs (33,439 ) (34,393 ) Total $ 1,831,985 $ 1,695,711 (1) Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. The Company is subject to restrictive covenants under its secured borrowings which relate to the incurrence of debt, issuance of guarantees, incurrence of liens or other encumbrances, the acquisition, substitution, disposition and re-lease of aircraft, maintenance, registration and insurance of its aircraft, restrictions on modification of aircraft and capital expenditures, and requirements to maintain concentration limits. The Company’s loan agreements include events of default that are customary for these types of secured borrowings. The Company’s failure to comply with any restrictive covenants, or any other operating covenants, may trigger an event of default under the relevant loan agreement. In addition, certain of the Company’s loan agreements contain cross-default provisions that could be triggered by a default under another loan agreement. As of December 31, 2016, the Company was not in default under any of its secured borrowings. Securitization Notes At December 31, 2016, the Company’s subsidiary, B&B Air Funding, had $139.7 million principal amount outstanding on its aircraft lease-backed Class G-1 notes (the “Securitization Notes”), which were secured by nine aircraft. The final maturity date of the Securitization Notes is November 14, 2033. The Securitization Notes bear interest at an adjustable interest rate equal to the current one-month LIBOR plus 0.77%. Interest expense also includes amounts payable to the provider of a financial guaranty insurance policy and the liquidity facility provider thereunder, as well as accretion on the Securitization Notes re-issued at a discount. Interest and any principal payments due are payable monthly. The Company has entered into interest rate swap contracts to mitigate the interest rate fluctuation risk associated with the Securitization Notes. All cash collected, including sale proceeds from the aircraft financed by the Securitization Notes, is applied to service the outstanding balance of the Securitization Notes, after the payment of certain expenses and other costs, including interest, interest rate swap payments, and the fees to the policy provider in accordance with those agreements. The Company may, on any future payment date, redeem the Securitization Notes in whole or from time to time in part for an amount equal to 100% of the outstanding principal amount, together with accrued and unpaid interest to, but excluding, the date fixed for redemption. Redemption prior to acceleration of the Securitization Notes may be of all or any part of the Securitization Notes. Redemption after acceleration of the Securitization Notes upon default may only be for all of the Securitization Notes. The Securitization Notes are secured by (i) first priority, perfected security interests in and pledges or assignments of equity ownership and beneficial interests in the subsidiaries of B&B Air Funding; (ii) interests in the leases of the associated aircraft; (iii) cash held by the subsidiaries of B&B Air Funding; and (iv) rights under agreements with BBAM, the initial liquidity facility provider, hedge counterparties and the policy provider. Rentals paid under leases are placed in the collections account and paid out according to a priority of payments set forth in the indenture. The Securitization Notes are also secured by a lien or similar interest in any of the aircraft B&B Air Funding currently owns that are registered in the United States or Ireland. B&B Air Funding may not encumber the aircraft it currently owns or incur additional indebtedness except as permitted under the securitization-related documents. B&B Air Funding is subject to operating covenants which relate to, among other things, its operations, disposition of aircraft, lease concentration limits, and restrictions on the modification of aircraft and capital expenditures. A breach of the covenants could result in the acceleration of the Securitization Notes and exercise of remedies available in relation to the collateral, including the sale of aircraft at public or private sale. In addition, the servicing agreement for B&B Air Funding includes servicer termination events as specified in the agreement. In connection with the issuance of the Securitization Notes, B&B Air Funding entered into a revolving credit facility (“Securitization Note Liquidity Facility”) that provides additional liquidity of up to $60.0 million. Subject to the terms and conditions of the Securitization Note Liquidity Facility, advances may be drawn for the benefit of the Securitization Note holders to cover certain expenses of B&B Air Funding, including maintenance expenses, interest rate swap payments and interest on the Securitization Notes. Advances shall bear interest at one-month LIBOR plus a spread of 1.20%. A commitment fee of 0.40% per annum is due and payable on each payment date based on the unused portion of the Securitization Note Liquidity Facility. As of each of December 31, 2016 and 2015, B&B Air Funding had not drawn on the Securitization Note Liquidity Facility. The financial guaranty insurance policy (the “Policy”) issued by the Policy Provider supports the payment of interest due on the Notes and the payment of the outstanding principal balance of the Securitization Notes on the final maturity date and, under certain circumstances, prior thereto. A downgrade of the policy provider’s credit rating or its failure to meet its obligations under the Policy will not have a direct impact on B&B Air Funding’s obligations or rights under the Securitization Notes. Nord LB Facility As of December 31, 2016, the Company had $171.5 million principal amount outstanding under its debt facility with Norddeutsche Landesbank Gironzentrale (the “Nord LB Facility”), which was secured by six aircraft. The Nord LB Facility is structured with loans secured by each aircraft individually. The loans are cross-collateralized and contain cross-default provisions. Borrowings are secured by Fly’s equity interests in the aircraft owning and leasing subsidiaries, the related leases, and certain deposits. The loans under the Nord LB Facility bear interest at one-month LIBOR plus 3.30% until the final maturity date of November 14, 2018. Under the terms of the Nord LB Facility, the Company applies 95% of lease rentals collected towards interest and principal. If no lease rental payments are collected in the applicable period for any financed aircraft, then no payment is due under the loan associated with that aircraft during such period. Any unpaid interest increases the principal amount of the associated loan. In the event the Company sells any of the financed aircraft, substantially all sale proceeds (after payment of certain expenses) must first be used to repay the debt associated with such aircraft and second to repay the outstanding amounts which finance the remaining aircraft. In addition, any maintenance reserve amounts retained by the Company will be used to prepay the Nord LB Facility, provided such reserves are not required for future maintenance of such aircraft. Upon termination or expiration of a lease other than by sale, no payments are due with respect to the outstanding loan associated with that aircraft until the earlier of (i) six months from such termination or expiration and (ii) the date on which the aircraft is re-leased. Interest during this period increases the outstanding balance under the facility. The Company must pay interest with respect to any aircraft that remains off-lease after six months, and if such aircraft continues to be off-lease after twelve months, the Company must pay debt service equal to 85% of the lease rate under the prior lease agreement. The lenders may require payment in full or foreclose on an aircraft that remains off-lease after 24 months, but may not foreclose on any other aircraft in the facility. If the Company earns a 10% return on its equity investment after full repayment of the facility, the Company will pay Nord LB a fee equal to 10% of returns in excess of 10%, up to a maximum of $5.0 million. An event of default with respect to the loan on any aircraft will trigger an event of default on the loans with respect to every other financed aircraft. A default by any of the aircraft owning entities in respect of obligations in excess of $10.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder would constitute an event of default. CBA Facility As of December 31, 2016, the Company had $56.1 million principal amount outstanding under its debt facility with Commonwealth Bank of Australia and CommBank Europe Limited (the “CBA Facility”), which was secured by four aircraft. Fly has guaranteed all payments under the CBA Facility. These loans are cross-collateralized and contain cross-default provisions. The final maturity date of each of the four loans is October 28, 2020. The Company makes scheduled monthly payments of principal and interest on each loan in accordance with a fixed amortization schedule. If, upon the repayment of any loan, the ratio of the remaining principal amount outstanding under the CBA Facility to the aggregate appraised value of the financed aircraft is equal to or greater than 80%, the Company will be required to pay cash collateral in an amount sufficient to reduce this ratio to less than 80%. Borrowings under the CBA Facility accrue interest at a fixed interest rate. As of December 31, 2016 and 2015, the weighted average interest rates on all outstanding amounts, excluding the amortization of debt discount and loan cost was 5.45% and 5.02%, respectively. The CBA Facility includes certain operating covenants, including reporting requirements. A breach of the covenants could result in the acceleration of outstanding indebtedness under the CBA Facility, and exercise of remedies available in relation to the collateral. Term Loan As of December 31, 2016, the Company had $404.0 million principal amount outstanding under its senior secured term loan (the “Term Loan”), which was secured by 26 aircraft. Fly has guaranteed all payments under the Term Loan. The Term Loan bears interest at three-month LIBOR, plus a margin of 2.75%, with a LIBOR floor of 0.75%. On October 19, 2016, the Company amended the Term Loan to extend the maturity date from August 2019 to February 2022. In addition, until April 2017, the Term Loan can be prepaid in whole or in part for an amount equal to 101% of the outstanding principal amount being repaid. Thereafter, the Term Loan can be prepaid at par. In connection with this amendment, the Company paid a one-time fee of 0.25% on the then outstanding principal amount under the Term Loan to its lenders. The Company also expensed $2.3 million as debt extinguishment costs. During the year ended December 31, 2015, the Company wrote off approximately $2.1 million of unamortized loan costs and debt discounts as debt extinguishment costs in connection with a re-pricing of the Term Loan. There was no prepayment penalty associated with the re-pricing. The Term Loan requires that the Company maintain a maximum loan-to-value ratio of 70.0% based on the lower of the mean or median of half-life adjusted base values of the financed aircraft as determined by three independent appraisers. The Term Loan also includes other customary covenants, including reporting requirements and maintenance of credit ratings. The Term Loan contains certain concentration limits with respect to types of aircraft which can be financed in the Term Loan, as well as geographic and single lessee concentration limits. These concentration limits apply upon the acquisition, sale, removal or substitution of an aircraft. The Term Loan also includes certain customary covenants, including reporting requirements and maintenance of credit ratings. An event of default under the Term Loan includes any of the aircraft owning entities defaulting in respect of obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder. Fly Acquisition III Facility In February 2016, the Company, through a wholly-owned subsidiary, Fly Acquisition III Limited, entered into a revolving $385 million credit facility (the “Fly Acquisition III Facility”) to finance the acquisition of eligible aircraft. Borrowings are secured by the beneficial interests in Fly Acquisition III and each of its subsidiaries, the aircraft and related leases. The Fly Acquisition III Facility has an availability period expiring on February 26, 2019 and a maturity date of February 26, 2022. Fly has guaranteed Fly Acquisition III’s obligations under the facility. As of December 31, 2016, the Company had $113.0 million principal amount outstanding, which was secured by four aircraft. The Company pays a commitment fee of 0.50% per annum on a monthly basis to each lender on the undrawn amount of its commitment until the termination of the availability period; provided that at any time from and after March 26, 2017 through the end of the availability period, the commitment fee will increase to 0.75% per annum if at least 50% of the total amount of commitments have not been drawn. The interest rate under the facility is based on one-month LIBOR plus an applicable margin. The applicable margin is 2.00% through the expiration of the availability period, and will increase to 2.50% from February 27, 2019 through February 26, 2020 and 3.00% from February 27, 2020 through the maturity date of the facility. The Fly Acquisition III Facility contains financial and operating covenants, including a covenant that the Company maintain a tangible net worth of at least $325.0 million and a specified interest coverage ratio, as well as customary reporting requirements. Violation of any of these covenants could result in an event of default under the facility. Also, upon the occurrence of certain conditions, including a failure by the Company to maintain a minimum liquidity of at least $25.0 million, Fly Acquisition III will be required to deposit certain amounts of maintenance reserves and security deposits received under the respective leases into accounts pledged to the security trustee. An event of default under the Fly Acquisition III Facility includes a default by the Company in respect of its recourse obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder. Other Aircraft Secured Borrowings The Company has entered into other aircraft secured borrowings to finance the acquisition of aircraft, one of which is denominated in Euros. As of December 31, 2016, the Company had $981.0 million principal amount outstanding, which was secured by 19 aircraft. Of this amount, $509.8 million was recourse to the Company. These borrowings are structured as individual loans secured by pledges of the Company’s rights, title and interests in the financed aircraft and leases. In addition, Fly may provide guarantees of its subsidiaries’ obligations under certain of these loans, and may be subject to financial and operating covenants in connection therewith. The maturity dates of these loans range from September 2019 to June 2028. During the year ended December 31, 2016, the Company entered into five other aircraft secured borrowings totaling $469.6 million. Future Minimum Principal Payments on Borrowings During the year ended December 31, 2016, the Company made scheduled principal payments of $130.6 million on its secured borrowings and made additional payments of $318.5 million in connection with aircraft sold. The anticipated future minimum principal payments due for its secured borrowings are as follows (dollars in thousands): Year ending December 31, 2017 $ 169,572 2018 288,150 2019 147,762 2020 162,914 2021 123,506 Thereafter 973,520 Future minimum principal payments due $ 1,865,424 |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2016 | |
DERIVATIVES [Abstract] | |
DERIVATIVES | 11. DERIVATIVES Derivatives are used by the Company to manage its exposure to interest rate fluctuations. The Company uses interest rate swap contracts to hedge variable interest payments due on loans associated with aircraft with fixed rate rentals. As of December 31, 2016, the Company had $0.9 billion of floating rate debt associated with aircraft with fixed rate rentals. Interest rate swap contracts allow the Company to pay fixed interest rates and receive variable interest rates with the swap counterparty based on either the one-month or three-month LIBOR applied to the notional amounts over the life of the contracts. As of December 31, 2016 and 2015, the Company had interest rate swap contracts with notional amounts aggregating $0.8 billion and $1.0 billion, respectively. The unrealized fair value gain on the interest rate swap contracts, reflected as derivative assets, was $1.9 million and $0.2 million as of December 31, 2016 and 2015, respectively. The unrealized fair value loss on the interest rate swap contracts, reflected as derivative liabilities, was $13.3 million and $19.3 million as of December 31, 2016 and 2015, respectively. The Company determines the fair value of derivative instruments using a discounted cash flow model. The model incorporates an assessment of the risk of non-performance by the swap counterparty in valuing derivative assets and an evaluation of the Company’s credit risk in valuing derivative liabilities. The Company considers in its assessment of non-performance risk, if applicable, netting arrangements under master netting agreements, any collateral requirement, and the derivative payment priority in the Company’s debt agreements. The valuation model uses various inputs including contractual terms, interest rate curves, credit spreads and measures of volatility. Designated Derivatives Certain of the Company’s interest rate derivatives have been designated as cash flow hedges. The effective portion of changes in fair value of these derivatives are recorded as a component of accumulated other comprehensive income, net of a provision for income taxes. Changes in the fair value of these derivatives are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. As of December 31, 2016, the Company had the following designated derivative instruments classified as derivative assets on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Fair Value of Derivative Asset Credit Risk Adjustment Adjusted Fair Value of Derivative Asset Gain Recognized in Accumulated Comprehensive Loss Loss Recognized into Earnings Interest rate swap contracts 6 11/14/2018-2/15/22 0.90% - 1.18% $ 127,411 $ 1,956 $ (32 ) $ 1,924 $ 1,463 $ 252 Accrued interest — (19 ) — (19 ) — — Total – designated derivative assets 6 $ 127,411 $ 1,937 $ (32 ) $ 1,905 $ 1,463 $ 252 As of December 31, 2016, the Company had the following designated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Fair Value of Derivative Liability Credit Risk Adjustment Adjusted Fair Value of Derivative Liability Loss Recognized in Accumulated Comprehensive Loss Loss Recognized into Earnings Interest rate swap contracts 10 2/9/18-9/27/25 1.69% - 6.22% $ 350,437 $ (11,471 ) $ 279 $ (11,192 ) $ (10,286 ) $ 478 Accrued interest — (316 ) — (316 ) — — Total – designated derivative liabilities 10 $ 350,437 $ (11,787 ) $ 279 $ (11,508 ) $ (10,286 ) $ 478 Dedesignated Derivatives Certain of the Company’s interest rate swap contracts no longer qualify for hedge accounting and have been dedesignated. The accumulated other comprehensive loss of $2.3 million associated with these contracts is being amortized over the term of the interest rate swap contracts. During the year ended December 31, 2016, $0.8 million was recognized as interest expense. As of December 31, 2016, the Company had the following dedesignated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Fair Value of Derivative Liability Credit Risk Adjustment Adjusted Fair Value of Derivative Liability Loss Recognized into Earnings Interest rate swap contracts 2 2/9/2018 1.82% - 1.83% $ 295,509 $ (1,542 ) $ 16 $ (1,526 ) $ (171 ) Accrued interest — (247 ) — (247 ) — Total – dedesignated derivative liabilities 2 $ 295,509 $ (1,789 ) $ 16 $ (1,773 ) $ (171 ) Terminated Derivatives The Company terminated four interest rate swap contracts and recognized $0.6 million of loss during the year ended December 31, 2016. In 2015, the Company terminated 14 interest rate swap contracts and recognized a loss into earnings totaling $2.4 million. In addition, the Company recognized a net loss of $1.1 million on swap ineffectiveness. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | 12. INCOME TAXES Fly is a tax resident of Ireland and has wholly-owned subsidiaries in Ireland, France, Luxembourg, Australia, Singapore and Labuan that are tax residents in those jurisdictions. In general, Irish resident companies pay corporation tax at the rate of 12.5% on trading income and 25.0% on non-trading income. Historically, most of the Company’s operating income has been trading income in Ireland. Income tax expense (benefit) by jurisdiction is shown below (dollars in thousands): Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 Current tax expense: Ireland $ — $ 33 $ — Luxembourg 145 252 210 United States — — 2 Australia 1,742 138 — Other 33 57 48 Current tax expense — total 1,920 480 260 Deferred tax (benefit) expense: Ireland (10,812 ) 4,558 8,208 Australia 1,615 334 241 Other — 27 (18 ) Deferred tax (benefit) expense — total (9,197 ) 4,919 8,431 Total income tax (benefit) expense $ (7,277 ) $ 5,399 $ 8,691 In 2016, the Company recorded a net tax benefit of $7.3 million. In 2016, the Company recognized a deduction for an interest payment made by a subsidiary that was previously uncertain to be made and therefore no tax benefit had been recognized. The Company intends to utilize this benefit as group relief to offset income tax on repatriated earnings of a Cayman Islands subsidiary for which a deferred tax provision was previously recorded. Cash taxes will not be due on the repatriated earnings. In addition, the Company's Australian tax provision includes a cumulative out of period adjustment of $3.3 million related to foreign exchange loss. The Company had no unrecognized tax benefits as of December 31, 2016 and 2015. The principal components of the Company’s net deferred tax asset (liability) were as follows (dollars in thousands): December 31, 2016 December 31, 2015 Deferred tax asset: Net operating loss carry forwards $ 151,575 $ 181,370 Net unrealized losses on derivative instruments 1,181 1,999 Basis difference on acquisition of GAAM Australian assets 6,786 6,844 Other 224 240 Valuation allowance (30,524 ) (23,029 ) Total deferred tax asset 129,242 167,424 Deferred tax liability: Excess of tax depreciation over book depreciation (137,249 ) (171,084 ) Book/tax differences identified in connection with GAAM Portfolio acquisition (438 ) (911 ) Net earnings of non-European Union member subsidiaries (3,957 ) (16,170 ) Total deferred tax liability (141,644 ) (188,165 ) Deferred tax liability, net $ (12,402 ) $ (20,741 ) Under current tax rules in Ireland, the Company is allowed to carry forward its net operating losses for an indefinite period to offset any future income. The Company has recorded valuation allowances to reduce deferred tax assets to the extent it believes it is more likely than not that a portion of such assets will not be realized. In making such determinations, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and its ability to carry back losses to prior years. The Company is required to make assumptions and judgments about potential outcomes that may be outside its control. Critical factors include the projection, source, and character of future taxable income. Although realization is not assured, the Company believes it is more likely than not that deferred tax assets, net of the valuation allowance, will be realized. The amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward periods are reduced or current tax planning strategies are not implemented. At December 31, 2016 and 2015, the Company had a valuation allowance of $30.5 million and $23.0 million, respectively. For the years ended December 31, 2016, 2015 and 2014, the Company recorded net valuation allowance provisions of $7.2 million, $3.4 million and $2.5 million, respectively. The Company has undistributed earnings from its Australian subsidiary. During the third quarter of 2016, the Company changed its assertion to indefinitely reinvest these undistributed earnings back into Australia. A withholding tax of 15.0% will be applied to distributions of earnings which have yet to be taxed in Australia. For the year ended December 31, 2016, the effective tax rate was 20.0%. The effective tax rate in any period is impacted by the source and amount of income earned and expenses incurred by the Company in different tax jurisdictions. 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 December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 Irish statutory corporate tax rate on trading income 12.5 % 12.5 % 12.5 % Valuation allowances (19.8 )% 12.0 % 3.6 % Equity earnings from Fly-Z/C LP 0.2 % (0.5 )% (0.4 )% Tax impact of repurchased and resold Notes 1.3 % (3.2 )% (0.6 )% Share-based compensation — 0.1 % — Foreign tax rate differentials 7.8 % (9.7 )% (3.9 )% Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 True-up of prior year tax provision — 1.4 % 0.2 % Non-taxable gain on debt extinguishment 0.3 % — (1.2 )% Non-deductible interest expense, transaction fees and expenses (4.8 )% 6.1 % 2.4 % Deductible intra-group interest 30.9 % — — Unrealized foreign exchange loss on re-valuation of deferred tax balances (8.6 )% — — Other 0.2 % 0.4 % — Effective tax rate 20.0 % 19.1 % 12.6 % Under Irish tax legislation, the Irish Revenue is entitled to make enquiries and/or raise an assessment of any corporation tax return submitted up to a period of four years from the end of the year in which the return is submitted. As such, the Irish Revenue is entitled to make enquiries and/or raise an assessment in respect of the corporation tax returns submitted by the Company’s Irish subsidiaries for each of the years ended December 31, 2012 to 2016. |
OTHER LIABILITIES
OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2016 | |
OTHER LIABILITIES [Abstract] | |
OTHER LIABILITIES | 13. OTHER LIABILITIES The following table describes the principal components of the Company’s other liabilities (dollars in thousands): December 31, 2016 December 31, 2015 Net current tax provision $ 2,036 $ 645 Lease incentive obligation 24,757 21,217 Deferred rent payable 3,792 11,974 Refundable deposits 350 4,240 Other 9,319 14,050 Total other liabilities $ 40,254 $ 52,126 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2016 | |
SHAREHOLDERS' EQUITY [Abstract] | |
SHAREHOLDERS' EQUITY | 14. SHAREHOLDERS’ EQUITY Share Repurchases In July 2016, the Company’s board of directors approved a $75.0 million share repurchase program expiring in December 2017. Under this program, the Company may make share repurchases from time to time in the open market or in privately negotiated transactions. As of December 31, 2016, there was $66.7 million remaining under this authorization. During the year ended December 31, 2016, the Company repurchased 3,414,960 shares at an average price of $11.73 per share, or $40.1 million, before commissions and fees. As of December 31, 2016, there were 32,256,440 shares outstanding. During the year ended December 31, 2015, the Company repurchased a total of 5,797,673 shares at an average price of $13.89 per share, or $80.5 million, before commissions and fees. No shares were repurchased during the year ended December 31, 2014. Dividends On November 12, 2015, the Company announced that its board of directors approved the elimination of dividend payments on its shares. No dividends were declared or paid during the year ended December 31, 2016. During the year ended December 31, 2015, the Company declared and paid dividends of $1.00 per share or $42.4 million. During the year ended December 31, 2014, the Company declared and paid dividends of $1.00 per share or $42.8 million. Share Issuances During the years ended December 31, 2016 and 2015, respectively, the Company issued no shares. During the year ended December 31, 2014, the Company issued 126,660 shares in connection with RSUs that vested and SARs that were exercised. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION [Abstract] | |
SHARE-BASED COMPENSATION | 15. SHARE-BASED COMPENSATION Description of Plan On April 29, 2010, the Company adopted the 2010 Omnibus Incentive Plan (“2010 Plan”) permitting the issuance of up to 1,500,000 share grants in the form of (i) SARs; (ii) RSUs; (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. SARs entitle the holder to receive any increase in value between the grant date price of Fly’s ADSs and their value on the exercise date. RSUs entitle the holder to receive a number of Fly’s ADSs equal to the number of RSUs awarded upon vesting. 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 or vesting date, (ii) termination date or (iii) expiration date. Dividend Equivalents expire at the same time and in the same proportion that the SARs and RSUs are exercised, cancelled, forfeited or expired. Grant Activity Since June 30, 2015, all SARs and RSUs granted under the 2010 Plan have vested. At December 31, 2016, 2015 and 2014, there were 821,117 shares of SARs outstanding and exercisable at a weighted average exercise price of $12.74. At December 31, 2016, the weighted average remaining contractual life of the SARs was 4.1 years. During the year ended December 31, 2014, 58,519 SARs were exercised at a weighted average price of $12.80 and 8,998 SARs were canceled or forfeited at a weighted average price of $12.28. A summary of the Company’s RSU activity for the year ended December 31, 2015 and 2014 is as follows: Number of shares Weighted average grant date fair value Outstanding and unvested at December 31, 2013 161,480 12.81 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 vested (36,075 ) 12.28 Outstanding and unvested at December 31, 2015 — $ — Share-based compensation expense related to SARs and RSUs is recorded as a component of selling, general and administrative expenses, and totaled $0.2 million and $30,000 for the years ended December 31, 2015 and 2014, respectively. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER SHARE [Abstract] | |
EARNINGS PER SHARE | 16. EARNINGS PER SHARE The following table sets forth the calculation of basic and diluted earnings per common share using the two-class method (dollars in thousands, except per share data): Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 Numerator Net income (loss) $ (29,112 ) $ 22,798 $ 60,184 Less: Dividends declared and paid to shareholders — (41,388 ) (41,392 ) Dividend equivalents paid to vested RSUs and SARs — (1,054 ) (1,426 ) Net income (loss) attributable to common shareholders $ (29,112 ) $ (19,644 ) $ 17,366 Denominator Weighted average shares outstanding-Basic 33,239,001 41,222,690 41,405,211 Dilutive common equivalent shares: RSUs — 7,950 48,674 SARs — 84,509 73,699 Weighted average shares outstanding-Diluted 33,239,001 41,315,149 41,527,584 Earnings per (loss) share: Basic Distributed earnings $ — $ 1.00 $ 1.00 Undistributed income (excess distribution) $ (0.88 ) $ (0.48 ) $ 0.42 Basic earnings (loss) per share $ (0.88 ) $ 0.52 $ 1.42 Diluted Distributed earnings $ — $ 1.00 $ 1.00 Undistributed income (excess distribution) $ (0.88 ) $ (0.48 ) $ 0.42 Diluted earnings (loss) per share $ (0.88 ) $ 0.52 $ 1.42 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 15). 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, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 17. COMMITMENTS AND CONTINGENCIES From time to time, the Company contracts with third-party service providers to perform maintenance or overhaul activities on its off-lease aircraft. In 2016, the Company entered into agreements with third-party lessors to guarantee the residual value of three aircraft subject to twelve-year leases ("RVGs"). The Company received residual value guarantee fees totaling $6.6 million, which are being amortized over a twelve-year period. The third-party lessors may exercise their rights under the RVGs by issuing a notice to the Company eleven months before each lease expiry date requiring the Company to purchase the aircraft on such date, otherwise the RVGs will terminate if not exercised accordingly. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | 18. RELATED PARTY TRANSACTIONS With respect to aircraft financed by the Securitization Notes, until December 31, 2016, BBAM was entitled to receive (i) a base fee of $150,000 per month, subject to certain adjustments, (ii) a rent fee equal to 1.0% of the aggregate amount of rents due and 1.0% of the aggregate amount of rents actually collected and (iii) a sales fee of 1.5% of the aggregate gross proceeds in respect of any aircraft sold. BBAM also was entitled, until December 31, 2016, to an administrative agency fee from B&B Air Funding equal to $750,000 per annum, subject to an annual CPI adjustment. Effective January 1, 2017, the servicing agreement between B&B Air Funding and BBAM relating to aircraft financed by the Securitization Notes was amended, thereby (i) amending the rent fee to 3.5% of the aggregate amount of rents actually collected, plus $1,000 per aircraft per month and (ii) eliminating the base fee of $150,000 per month. In connection with this amendment, effective January 1, 2017, the administrative agency fee also was reduced, through a rebate, to $20,000 per month, subject to an annual CPI adjustment. With respect to all other aircraft, BBAM is entitled to receive a servicing fee equal to 3.5% of the aggregate amount of rents actually collected and an administrative fee of $1,000 per month per aircraft. Under the Term Loan and the Fly Acquisition III Facility, BBAM is entitled to an administrative fee of $10,000 per month. Prior to the termination of the Fly Acquisition II Facility, BBAM was entitled to an administrative fee of $10,000 per month. In addition, BBAM is entitled to receive a sales fee of 1.5% of the gross consideration collected for any aircraft sold. For the years ended December 31, 2016, 2015 and 2014, BBAM received base, rent and servicing fees pursuant to the Agreements totaling $12.7 million, $15.2 million, and $14.4 million, respectively. BBAM also received administrative fees totaling $1.9 million during the year ended December 31, 2016, and $2.1 million for each of the years ended December 31, 2015 and 2014. During the year ended December 31, 2016, the Company incurred $8.4 million of origination fees, of which $0.9 million was expensed. During the year ended December 31, 2015, the Company incurred $9.2 million of origination fees, of which $1.0 million was expensed. 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 was expensed. The Company pays an annual management fee to the Manager as compensation for providing the services of the chief executive officer, the chief financial officer and other personnel, and for certain corporate overhead costs related to the Company. In connection with an amendment to the management agreement effective as of July 1, 2015, the annual management fee was reduced from $10.7 million to $5.7 million. The management fee is adjusted each calendar year by (i) 0.3% of the change in the book value of the Company’s aircraft portfolio during the preceding year, up to a $2.0 billion increase over $2.7 billion and (ii) 0.25% of the change in the book value of the Company’s aircraft portfolio in excess of $2.0 billion, with a minimum management fee of $5.0 million. The management fee is subject to an annual adjustment tied to the Consumer Price Index applicable to the prior calendar year. For the years ended December 31, 2016, 2015 and 2014, the Company incurred management fees of $6.3 million, $8.2 million and $10.6 million, respectively. In connection with the July 2015 amendment to the management agreement, the Company and the Manager also agreed to reduce the disposition fee in respect of the ECAF-I Transaction to an aggregate amount equal to 1.2% of the aggregate gross proceeds for such aircraft. During the years ended December 31, 2016, 2015 and 2014, the Company incurred disposition fees of $7.5 million, $15.6 million and $2.2 million, respectively. The Company further amended the management agreement, effective as of January 1, 2017 to reflect the amended rent fee and administrative agency fee, as well as the elimination of the base fee, in respect of the aircraft financed by the Securitization Notes. The management agreement is scheduled to terminate on July 1, 2025, and shall be automatically extended for one additional term of five years unless terminated by either party witu 12 months’ notice or otherwise terminated earlier in accordance with the terms therein. If the Management Agreement is not renewed on July 1, 2025, the Company will pay the Manager a non-renewal fee on such termination date in an amount equal to (i) $6.0 million plus (ii) so long as the Management Expense Amount does not exceed $12.0 million, 50% of the excess (if any) of the Management Expense Amount over $6.0 million in respect of the last fiscal year prior to such termination date. The Company’s minimum long-term contractual obligations with BBAM LP as of December 31, 2016, excluding rent fees, consisted of the following (dollars in thousands): 2017 2018 2019 2020 2021 Thereafter Total Fixed base fee payments (1) $ 240 $ 240 $ 240 $ 240 $ 240 $ 1,440 $ 2,640 Fixed administrative agency fee payments due by B&B Air Funding (1)(2) 108 108 63 25 1 — 305 Fixed administrative services fee due under the Term Loan (3) 418 361 288 172 142 164 1,545 Fixed administrative services fee due under Fly Acquisition III (3) 168 168 168 168 155 165 992 Fixed administrative agency fee payments due by other subsidiaries (3) 458 406 338 322 289 929 2,742 Fixed payments for Management Expenses (1) 6,304 6,304 6,304 6,304 6,304 28,369 59,889 Total $ 7,696 $ 7,587 $ 7,401 $ 7,231 $ 7,131 $ 31,067 $ 68,113 (1) Amounts in the table assume Consumer Price Index (“CPI”) rates in effect as of December 31, 2016 remain constant in future periods. (2) On February 1, 2017, B&B Air Funding amended its servicing agreement with respect to aircraft financed by the Securitization Notes thereby (i) amending the rent fee to 3.5% of the aggregate amount of rents actually collected, plus $1,000 per aircraft per month and (ii) eliminating the base fee of $150,000 per month, both effective as of January 1, 2017. In connection with this amendment, the administrative agency fee has also been reduced, through a rebate, to $20,000 per month, subject to an annual CPI adjustment. (3) Assumes number of aircraft at December 31, 2016 remains the same for future periods. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | 19. FAIR VALUE MEASUREMENTS Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. The hierarchy levels give the highest priority to quoted prices in active markets and the lowest priority to unobservable data. Fair value measurements are disclosed by level within the following fair value hierarchy: Level 1 — 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 is based on observable market prices or parameters or derived from such prices or parameters (Level 2). Where observable prices or inputs are not available, valuation models are applied, using the net present value of cash flow streams over the term using estimated market rates for similar instruments and remaining terms (Level 3). These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity. The Company determines the fair value of its derivative instruments using a discounted cash flow model which incorporates an assessment of the risk of non-performance by the swap counterparty and an evaluation of its credit risk in valuing derivative liabilities. The valuation model uses various inputs including contractual terms, interest rate curves, credit spreads and measures of volatility. The Company also measures the fair value for certain assets and liabilities on a non-recurring basis, when GAAP requires the application of fair value, including events or changes in circumstances that indicate that the carrying amounts of assets may not be recoverable. Assets subject to these measurements include Fly’s investment in an unconsolidated subsidiary and flight equipment held for operating lease, net. Fly accounts for its investment in an unconsolidated subsidiary under the equity method and records impairment when its fair value is less than its carrying value (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 flows associated with the use of an aircraft and eventual disposition of such aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. For the years ended December 31, 2016, 2015 and 2014, the Company wrote down aircraft to their net realizable value and recognized charges of $96.1 million, $66.1 million and $1.2 million, respectively (See Note 5). The carrying amounts and fair values of the Company’s financial instruments are as follows (dollars in thousands): As of December 31, 2016 As of December 31, 2015 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value Securitization Notes $ 139,741 $ 134,850 $ 295,786 $ 252,897 Nord LB Facility 171,509 171,509 255,278 251,849 CBA Facility 56,146 56,146 88,190 87,070 Term Loan 404,016 406,804 427,781 421,921 Fly Acquisition III Facility 113,045 113,045 — — Other Aircraft Secured Borrowings 980,967 980,967 663,069 653,992 2020 Notes 375,000 394,219 375,000 375,000 2021 Notes 325,000 340,438 325,000 333,125 Derivative asset 1,905 1,905 241 241 Derivative liabilities 13,281 13,281 19,327 19,327 As of December 31, 2016 and 2015, 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 (dollars in thousands): Level 1 Level 2 Level 3 Total December 31, 2016: Derivative asset — $ 1,905 — $ 1,905 Derivative liabilities — 13,281 — 13,281 December 31, 2015: Derivative asset — $ 241 — $ 241 Derivative liabilities — 19,327 — 19,327 |
UNAUDITED QUARTERLY CONDENSED C
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION | 20. UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION The unaudited quarterly financial information for each of the quarters in the year ended December 31, 2016 is presented below (dollars in thousands, except per share data): March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Total revenues $ 81,208 $ 77,934 $ 85,297 $ 100,600 Net income (loss) $ 7,100 $ 4,677 $ 22,942 $ (63,831 ) Earnings (loss) per share — Basic $ 0.21 $ 0.14 $ 0.70 $ (1.98 ) Earnings (loss) per share — Diluted $ 0.21 $ 0.14 $ 0.70 $ (1.98 ) The unaudited quarterly financial information for each of the quarters in the year ended December 31, 2015 is presented below (dollars in thousands, except per share data): March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Total revenues $ 123,286 $ 102,822 $ 112,655 $ 123,634 Net income (loss) $ 19,865 $ (43,695 ) $ 27,483 $ 19,145 Earnings (loss) per share — Basic $ 0.47 $ (1.06 ) $ 0.66 $ 0.47 Earnings (loss) per share — Diluted $ 0.47 $ (1.06 ) $ 0.66 $ 0.47 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2016 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | 21. SUBSEQUENT EVENTS On February 1, 2017, the servicing agreement between B&B Air Funding and BBAM relating to aircraft financed by the Securitization Notes was amended, thereby (i) amending the rent fee to 3.5% of the aggregate amount of rents actually collected, plus $1,000 per aircraft per month and (ii) eliminating the base fee of $150,000 per month, both effective as of January 1, 2017. In connection with this amendment, effective January 1, 2017, the administrative agency fee has also been reduced, through a rebate, to $20,000 per month, subject to an annual CPI adjustment. On February 1, 2017, the Company also amended the management agreement with the Manager to accommodate these changes to the servicing and administrative fees relating to the aircraft financed by the Securitization Notes. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Parent | 12 Months Ended |
Dec. 31, 2016 | |
Consolidated Financial Information of Parent [Abstract] | |
Condensed Financial Information of Parent | Schedule I — Condensed financial information of parent Fly Leasing Limited AS OF DECEMBER 31, 2016 AND 2015 (Dollars in thousands) December 31, 2016 2015 Assets Cash and cash equivalents $ 229,777 $ 139,339 Notes receivable from subsidiaries 441,451 735,835 Investments in subsidiaries 912,163 778,080 Investment in unconsolidated subsidiary 7,700 7,170 Other assets, net 534 2,712 Total assets 1,591,625 1,663,136 Liabilities Payable to related parties 906 50 Payable to subsidiaries 280,034 289,961 Unsecured borrowings, net 691,390 691,109 Deferred tax liability, net 1,946 13,675 Accrued and other liabilities 24,114 11,377 Total liabilities 998,390 1,006,172 Shareholders’ equity 593,235 656,964 Total liabilities and shareholders’ equity $ 1,591,625 $ 1,663,136 The accompanying note is an integral part of these consolidated financial statements. Schedule I — Condensed financial information of parent Fly Leasing Limited FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014 (Dollars in thousands, except per share data) Years ended 2016 2015 2014 Revenues Equity in earnings (loss) of subsidiaries $ (24,385 ) $ 17,065 $ 59,447 Equity in earnings from unconsolidated subsidiary 530 1,159 3,562 Intercompany management fee income 8,866 15,053 16,921 Intercompany interest income 44,394 48,077 22,394 Interest and other income 410 224 215 Total revenues 29,815 81,578 102,539 Expense Interest expense 48,013 48,013 28,089 Selling, general and administrative 11,803 12,987 15,520 Total expenses 59,816 61,000 43,609 Net income (loss) before provision for income taxes (30,001 ) 20,578 58,930 Income tax benefit (889 ) (2,220 ) (1,254 ) Net income (loss) $ (29,112 ) $ 22,798 $ 60,184 Weighted average number of shares: Basic 33,239,001 41,222,690 41,405,211 Diluted 33,239,001 41,315,149 41,527,584 Earnings (loss) per share: Basic $ (0.88 ) $ 0.52 $ 1.42 Diluted $ (0.88 ) $ 0.52 $ 1.42 The accompanying note is an integral part of these consolidated financial statements. Schedule I — Condensed financial information of parent Fly Leasing Limited FOR THE YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014 (Dollars in thousands) Years ended 2016 2015 2014 Cash Flows from Operating Activities Net Income (loss) $ (29,112 ) $ 22,798 $ 60,184 Adjustments to reconcile net income to net cash flows provided by operating activities: Equity in earnings of subsidiaries 24,385 (17,065 ) (59,447 ) Equity in earnings of unconsolidated subsidiary (530 ) (1,159 ) (3,562 ) Deferred income taxes (12,139 ) (2,276 ) (2,004 ) Share-based compensation — 195 30 Amortization of debt discount and others 1,982 1,982 1,537 Distributions from unconsolidated subsidiary — — 5,501 Changes in operating assets and liabilities: Receivable from subsidiaries (162,229 ) 132,843 117,806 Other assets 476 1,060 (1,672 ) Payable to related parties 856 (867 ) (48 ) Accrued and other liabilities 12,622 483 7,211 Net cash flows (used in) provided by operating activities (163,689 ) 137,994 125,536 Cash Flows from Investing Activities Capital contributions to subsidiaries — — (5,058 ) Distributions received from subsidiaries — 53,500 1,925 Capital contributions to unconsolidated subsidiary — (2,009 ) — Distributions received from unconsolidated subsidiary — — 1,132 Notes receivable from subsidiaries (40,172 ) (650,083 ) (628,994 ) Notes payable to subsidiaries 334,556 505,273 94,101 Net cash flows provided by (used in) investing activities 294,384 (93,319 ) (536,894 ) Cash Flows from Financing Activities Proceeds from issuance of unsecured borrowings — — 396,563 Debt issuance costs — — (1,116 ) Shares repurchased (40,257 ) (81,432 ) — Dividends paid — (41,388 ) (41,392 ) Dividend equivalents — (1,054 ) (1,426 ) Net cash flows (used in) provided by financing activities (40,257 ) (123,874 ) 352,629 Net increase (decrease) in cash and cash equivalents 90,438 (79,199 ) (58,729 ) Cash and cash equivalents at beginning of year 139,339 218,538 277,267 Cash and cash equivalents at end of year $ 229,777 $ 139,339 $ 218,538 Supplemental Disclosure: Cash paid during the year for: Interest $ 46,032 $ 46,723 $ 21,488 Taxes — — — Noncash Activities: Noncash investing activities: Capital contribution to subsidiaries 207,340 17,246 — Distributions paid to subsidiaries 55,039 711 — The accompanying note is an integral part of these consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN32
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
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”). Fly is deemed the primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the economic performance of such VIE, and it bears the significant risk of loss and participates in gains of the VIE. All intercompany transactions and balances have been eliminated. The consolidated financial statements are stated in U.S. Dollars, which is the principal operating currency of the Company. The Company has one operating and reportable segment which is aircraft leasing. |
Prior Period Reclassification | PRIOR PERIOD RECLASSIFICATION In 2016, the Company corrected how it presents its consolidated deferred tax balance on its Consolidated Balance Sheet from prior periods. The Company has grouped and showed separately on the Consolidated Balance Sheet, as either an asset or liability, its subsidiaries that have a net deferred tax asset and those that have a net deferred tax liability balance as of the period end. As a result, the Company reclassified $7.5 million from the previously reported net deferred tax liability balance to deferred tax assets, net, as of December 31, 2015, to conform to the current period presentation. The reclassification had no impact to the Company’s previously reported net income, including earnings per share or shareholders’ equity. |
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. |
Risk 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 or its deferred tax arrangements. 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, 2016 and 2015, the Company had no allowance for doubtful accounts. In addition, the Company places a lessee on non-accrual status once it determines that it is no longer probable that the Company will receive the economic benefits of the lease. The Company recognizes revenue from a lessee on non-accrual status only as cash is received. |
Investment in Unconsolidated Subsidiary | INVESTMENT IN UNCONSOLIDATED SUBSIDIARY Fly has a 57.4% interest in Fly-Z/C Aircraft Holdings LP (“Fly-Z/C LP”). Fly accounts for its interest in the unconsolidated subsidiary using the equity method as the Company does not control the entity. Under the equity method, the Company’s investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated subsidiary’s undistributed earnings and losses, and distributions of dividends and capital. The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiary, or whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification. |
Investment in Finance Lease | INVESTMENT IN FINANCE LEASE The Company has recorded one lease as an investment in finance lease. The investment in finance lease equals the sum of amounts to be received under the lease, plus the estimated residual value of the equipment at lease termination, less unearned income. Residual value reflects management’s estimate of the amounts to be received at lease termination from the re-lease or disposition of the leased equipment. Initial unearned income represents the amount by which the original sum of the lease receivable and the estimated residual value exceeds the original cost of the leased equipment. Unearned income is recognized as finance lease income over the lease term in a manner that produces a constant rate of return on the net investment in the lease based on an implicit interest rate. Initial direct costs and fees related to lease origination are deferred as part of the investment and amortized over the lease term. |
Flight Equipment Held for Sale | FLIGHT EQUIPMENT HELD FOR SALE In accordance with guidance provided by the Financial Accounting Standards Board (“FASB”), flight equipment is classified as held for sale when the Company commits to and commences a plan of sale that is reasonably expected to be completed within one year and satisfies certain other held for sale criteria. Flight equipment held for sale is recorded at the lesser of carrying value or fair value, less estimated cost to sell. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. Rent collected from the sale contract date through the aircraft disposition date reduces the sale proceeds and gain on sale of aircraft. Imputed interest earned from the sale contract date through the aircraft disposition date increases the selling price of an aircraft. An impairment loss is recorded for an asset or asset group held for sale when the carrying value of the asset or asset group exceeds its fair value, less estimated cost to sell. An aircraft classified as held for sale is not depreciated. Subsequent changes to the asset’s fair value are recorded as adjustments to the carrying value of the flight equipment. However, any such adjustment will not cause the asset’s fair value to exceed its original carrying value. |
Flight Equipment Held for Operating Lease | FLIGHT EQUIPMENT HELD FOR OPERATING LEASE Flight equipment held for operating lease are recorded at cost and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of the original manufacturer’s estimated realized price for the flight equipment when new. Management may, at its discretion, make exceptions to this policy on a case by case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of residual values. Examples of such situations include, but are not limited to: • Flight equipment where original manufacturer’s prices are not relevant due to plane modifications and conversions. • Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence. • The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture. • Flight equipment that management believes will be disposed of prior to the end of its estimated useful life. Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, during each reporting period. Major aircraft improvements or lessee-specific modifications to the aircraft to be performed by the Company pursuant to any lease agreement are accounted for as lease incentives and amortized against revenue over the term of the lease, assuming no lease renewals. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination.Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the remaining life of the flight equipment. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. |
Impairment of Flight Equipment | IMPAIRMENT OF FLIGHT EQUIPMENT The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company’s evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft, adverse changes in market conditions for specific aircraft types, third party appraisals of aircraft, published values for similar aircraft, any occurrence of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of the Company’s aircraft. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value. Future cash flows are assumed to occur under current market conditions and assume adequate time for a sale between a willing and able buyer and a willing seller. Expected future lease rates are based on all relevant information available, including the existing lease, current contracted rates for similar aircraft, appraisal data and industry trends. Residual value assumptions generally reflect an aircraft’s salvage value, except where more recent industry information indicates a different value is appropriate. 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. |
Maintenance Rights | MAINTENANCE RIGHTS The Company identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft with in-place leases. A maintenance right asset represents the fair value of its contractual right under a lease to receive an aircraft in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company’s obligation to pay the lessee for the difference between the lease end contractual maintenance condition of the aircraft at lease expiry and the actual maintenance condition of the aircraft on the acquisition date. The Company’s aircraft are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in its leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases). EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft into a specified maintenance condition. Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft in an improved maintenance condition at lease expiry as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft is greater than the contractual return condition in the lease at lease expiry and the Company is required to pay the lessee in cash for the improved maintenance condition. Maintenance right assets, net are recorded as a separate line item on the Company’s balance sheet. When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company’s capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company’s capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with our policy with respect to major maintenance. When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement. MR Leases Under MR Leases, the lessee is required to make periodic payments to us for maintenance based upon usage of the aircraft. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee. Maintenance right assets in MR Leases represent the right to receive an aircraft in an improved condition relative to the actual condition on the acquisition date. The aircraft is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives. Maintenance right assets, net will be recorded as a separate line item on the Company’s balance sheet. When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income, which is consistent with the Company’s existing policy; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded. There are no maintenance right liabilities for MR Leases. When flight equipment is sold, maintenance rights are released from the balance sheet as part of the disposition gain or loss. |
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to manage its exposure to interest rate and foreign currency risks. All derivatives are recognized on the balance sheet at their fair values. Pursuant to 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 every reporting period thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair market value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction. |
Other Assets | OTHER ASSETS Other assets consist primarily of unamortized lease premiums, initial direct lease costs and other miscellaneous receivables. Lease premiums are amortized into operating lease income over the lease term. |
Security Deposits | SECURITY DEPOSITS In the normal course of leasing aircraft to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease. |
Maintenance Payment Liability | MAINTENANCE PAYMENT LIABILITY The Company’s flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly’s operating leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration and airworthiness directives. Under the terms of the lease agreements, cash collected from lessees for future maintenance of the aircraft is recorded as maintenance payment liabilities. The Company does not recognize such maintenance payments as revenue during the lease. 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, recognition is delayed until the criteria are met. • Operating lease revenue. • End of lease income. • Lease incentives. • Finance lease income. |
Share-Based Compensation | SHARE-BASED COMPENSATION The Company has a 2010 Omnibus Incentive Plan (“2010 Plan”) permitting the issuance of up to 1,500,000 share grants in the form of (i) stock appreciation rights (“SARs”); (ii) restricted stock units (“RSUs”); (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. Compensation expense associated with grants to employees were valued at the grant date and amortized on a straight-line basis over the service period. Grants to non-employees were initially measured at grant date, and then re-measured at each interim reporting period until the awards vested. Determining the appropriate fair value model and calculation of the fair value of stock-based awards required judgment, including estimating stock price volatility, forfeitures and expected grant life. |
Income Taxes | INCOME TAXES The Company provides for income taxes by tax jurisdiction. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statements and tax basis of existing assets and liabilities at the enacted tax rates expected to apply when the assets are recovered or liabilities are settled. A valuation allowance is used to reduce deferred tax assets to the amount that management ultimately expects to be more-likely-than-not realized. The Company applies a recognition threshold of more-likely-than-not to be sustained in the examination of income tax on uncertainties. 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, 2016, 2015 and 2014. |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) In February 2016, FASB issued its new lease standard, ASU 2016-02, Leases Leases In August 2016, FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) In November 2016, FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In October 2016, FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory In January 2017, FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business |
INVESTMENT IN FINANCE LEASE (Ta
INVESTMENT IN FINANCE LEASE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INVESTMENT IN FINANCE LEASE [Abstract] | |
Net Investment in Finance Lease | The Company’s net investment in finance lease consisted of the following (dollars in thousands): December 31, 2016 December 31, 2015 Total minimum lease payments receivable $ 15,080 $ 45,901 Estimated unguaranteed residual value of leased asset 4,227 15,000 Unearned finance income (4,212 ) (26,023 ) Net Investment in Finance Lease $ 15,095 $ 34,878 |
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease | Presented below are the contracted future minimum rental payments due under non-cancellable finance lease, as of December 31, 2016. Year ending December 31, (Dollars in thousands) 2017 $ 1,880 2018 1,800 2019 1,800 2020 1,800 2021 1,800 Thereafter 6,000 Future minimum rental payments under finance lease $ 15,080 |
FLIGHT EQUIPMENT HELD FOR OPE34
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |
Flight Equipment Held for Operating Lease | Flight equipment held for operating lease consists of the following (dollars in thousands): December 31, 2016 December 31, 2015 Cost $ 3,180,160 $ 3,059,974 Accumulated depreciation (486,339 ) (474,548 ) Flight equipment held for operating lease, net $ 2,693,821 $ 2,585,426 |
Flight Equipment Held for Operating Lease by Geographic Region | The distribution of the net book value of flight equipment held for operating lease by geographic region is as follows (dollars in thousands): December 31, 2016 December 31, 2015 Europe: United Kingdom $ 143,560 5 % $ 244,179 9 % Turkey 142,787 5 % 171,861 7 % Russia 17,582 1 % — — Other 335,483 13 % 359,929 14 % Europe — Total 639,412 24 % 775,969 30 % Asia and South Pacific: India 574,853 21 % 208,009 8 % Philippines 279,031 10 % 289,558 11 % China 194,774 7 % 221,576 9 % Other 216,244 9 % 224,015 8 % Asia and South Pacific — Total 1,264,902 47 % 943,158 36 % Mexico, South and Central America: Chile 86,251 3 % 89,406 4 % Other 83,368 3 % 87,561 3 % Mexico, South and Central America — Total 169,619 6 % 176,967 7 % North America: United States 156,472 6 % 218,363 9 % Other 55,044 2 % 57,906 2 % North America — Total 211,516 8 % 276,269 11 % Middle East and Africa: Ethiopia 332,817 12 % 342,736 13 % Other 75,555 3 % 51,056 2 % Middle East and Africa — Total 408,372 15 % 393,792 15 % Off-Lease — Total — — 19,271 1 % Total flight equipment held for operating lease, net $ 2,693,821 100 % $ 2,585,426 100 % |
Operating Lease Revenue by Geographic Region | The distribution of operating lease revenue by geographic region for the years ended December 31, 2016, 2015 and 2014 is as follows (dollars in thousands): Year Ended December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2014 As restated Europe: United Kingdom $ 34,498 11 % $ 50,742 12 % $ 46,281 11 % Turkey 24,593 8 % 29,847 7 % 27,069 7 % Russia 3,141 1 % 24,095 6 % 9,017 2 % Other 44,450 14 % 73,872 17 % 73,660 19 % Europe — Total 106,682 34 % 178,556 42 % 156,027 39 % Asia and South Pacific: India 39,640 13 % 19,572 4 % 32,675 8 % Philippines 29,129 9 % 38,677 9 % 12,947 3 % China 23,882 8 % 37,943 9 % 47,049 12 % Other 27,287 8 % 39,056 9 % 45,855 11 % Asia and South Pacific — Total 119,938 38 % 135,248 31 % 138,526 34 % Mexico, South and Central America: Chile 8,939 3 % 24,336 6 % 28,116 7 % Other 8,768 3 % 16,732 4 % 21,733 5 % Mexico, South and Central America — Total 17,707 6 % 41,068 10 % 49,849 12 % North America: United States 24,591 8 % 37,316 9 % 41,531 10 % Other 6,223 2 % 6,380 1 % 3,429 1 % North America — Total 30,814 10 % 43,696 10 % 44,960 11 % Middle East and Africa: Ethiopia 30,084 10 % 22,808 5 % 4,501 1 % Other 8,357 2 % 8,315 2 % 12,700 3 % Middle East and Africa — Total 38,441 12 % 31,123 7 % 17,201 4 % Total Operating Lease Revenue $ 313,582 100 % $ 429,691 100 % $ 406,563 100 % |
Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases | Presented below are the contracted future minimum rental payments due under non-cancellable operating leases, as of December 31, 2016. For leases that have floating rental rates, the future minimum rental payments due assume that the rental payment due as of December 31, 2016 is held constant for the duration of the lease. Year ending December 31, (Dollars in thousands) 2017 $ 319,070 2018 292,188 2019 248,419 2020 220,893 2021 199,212 Thereafter 699,356 Future minimum rental payments under operating leases $ 1,979,138 |
Lease Incentive Amortization | At December 31, 2016, lease incentive amortization for the next five years and thereafter is as follows (dollars in thousands): Year ending December 31, 2017 $ 6,528 2018 6,854 2019 6,130 2020 4,352 2021 2,502 Thereafter 1,164 Future amortization of lease incentives $ 27,530 |
MAINTENANCE RIGHTS (Tables)
MAINTENANCE RIGHTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
MAINTENANCE RIGHTS [Abstract] | |
Changes in Maintenance Rights, Net | Changes in maintenance right assets, net of maintenance right liabilities, during the years ended December 31, 2016 and 2015 were as follows (dollars in thousands): December 31, 2016 December 31, 2015 Maintenance rights, net beginning balance $ 94,493 $ 144,920 Acquisitions 28,412 8,606 Capitalized to aircraft improvements (5,245 ) (6,591 ) Maintenance rights written off against end of lease income — (5,781 ) Cash receipts in settlement of maintenance rights (9,513 ) (5,253 ) Maintenance rights associated with aircraft sold (6,178 ) (41,408 ) Maintenance rights, net at end of period $ 101,969 $ 94,493 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER ASSETS [Abstract] | |
Other Assets | The principal components of the Company’s other assets are as follows (dollars in thousands): December 31, 2016 December 31, 2015 Lease costs, net $ 1,730 $ 2,176 Other assets 4,838 4,274 Total other assets $ 6,568 $ 6,450 |
UNSECURED BORROWINGS (Tables)
UNSECURED BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Unsecured Borrowings [Abstract] | |
Borrowings | Balance as of December 31, 2016 December 31, 2015 (Dollars in thousands) Outstanding principal balance: 2020 Notes $ 375,000 $ 375,000 2021 Notes 325,000 325,000 Total outstanding principal balance 700,000 700,000 Unamortized debt discounts and loan costs (8,610 ) (10,591 ) Unsecured borrowings, net $ 691,390 $ 689,409 |
Unsecured Borrowings [Member] | 2020 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Unsecured Debt Redemption Prices | 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. If 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 % |
Unsecured Borrowings [Member] | 2021 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Unsecured Debt Redemption Prices | 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. If redeemed during the 12-month period commencing on October 15 of the years set forth below: Redemption Price 2017 104.781 % 2018 103.188 % 2019 101.594 % 2020 and thereafter 100.000 % |
SECURED BORROWINGS (Tables)
SECURED BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SECURED BORROWINGS [Abstract] | |
Secured Borrowings | The Company’s secured borrowings balance, net as of December 31, 2016 and 2015 are presented below (dollars in thousands): Outstanding principal balance as of Weighted average interest rate (1) as of Maturity date December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Securitization Notes $ 139,741 $ 295,786 3.36 % 3.38 % November 2033 Nord LB Facility 171,509 255,278 4.14 % 4.04 % November 2018 CBA Facility 56,146 88,190 5.45 % 5.02 % October 2020 Term Loan 404,016 427,781 4.41 % 4.39 % February 2022 Fly Acquisition III Facility 113,045 — 2.88 % — February 2022 Other Aircraft Secured Borrowings 980,967 663,069 3.50 % 3.63 % September 2019 – June 2028 Unamortized debt discounts and loan costs (33,439 ) (34,393 ) Total $ 1,831,985 $ 1,695,711 (1) Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
Future Minimum Principal Payments on Secured Borrowings | The anticipated future minimum principal payments due for its secured borrowings are as follows (dollars in thousands): Year ending December 31, 2017 $ 169,572 2018 288,150 2019 147,762 2020 162,914 2021 123,506 Thereafter 973,520 Future minimum principal payments due $ 1,865,424 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
DERIVATIVES [Abstract] | |
Designated Derivative Assets | As of December 31, 2016, the Company had the following designated derivative instruments classified as derivative assets on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Fair Value of Derivative Asset Credit Risk Adjustment Adjusted Fair Value of Derivative Asset Gain Recognized in Accumulated Comprehensive Loss Loss Recognized into Earnings Interest rate swap contracts 6 11/14/2018-2/15/22 0.90% - 1.18% $ 127,411 $ 1,956 $ (32 ) $ 1,924 $ 1,463 $ 252 Accrued interest — (19 ) — (19 ) — — Total – designated derivative assets 6 $ 127,411 $ 1,937 $ (32 ) $ 1,905 $ 1,463 $ 252 |
Designated Derivative Liabilities | As of December 31, 2016, the Company had the following designated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Fair Value of Derivative Liability Credit Risk Adjustment Adjusted Fair Value of Derivative Liability Loss Recognized in Accumulated Comprehensive Loss Loss Recognized into Earnings Interest rate swap contracts 10 2/9/18-9/27/25 1.69% - 6.22% $ 350,437 $ (11,471 ) $ 279 $ (11,192 ) $ (10,286 ) $ 478 Accrued interest — (316 ) — (316 ) — — Total – designated derivative liabilities 10 $ 350,437 $ (11,787 ) $ 279 $ (11,508 ) $ (10,286 ) $ 478 |
Dedesignated Derivative Liabilities | As of December 31, 2016, the Company had the following dedesignated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands): Type Quantity Maturity Dates Hedge Interest Rates Swap Contract Notional Amount Fair Value of Derivative Liability Credit Risk Adjustment Adjusted Fair Value of Derivative Liability Loss Recognized into Earnings Interest rate swap contracts 2 2/9/2018 1.82% - 1.83% $ 295,509 $ (1,542 ) $ 16 $ (1,526 ) $ (171 ) Accrued interest — (247 ) — (247 ) — Total – dedesignated derivative liabilities 2 $ 295,509 $ (1,789 ) $ 16 $ (1,773 ) $ (171 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
INCOME TAXES [Abstract] | |
Income Tax Expense (Benefit) by Jurisdiction | Income tax expense (benefit) by jurisdiction is shown below (dollars in thousands): Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 Current tax expense: Ireland $ — $ 33 $ — Luxembourg 145 252 210 United States — — 2 Australia 1,742 138 — Other 33 57 48 Current tax expense — total 1,920 480 260 Deferred tax (benefit) expense: Ireland (10,812 ) 4,558 8,208 Australia 1,615 334 241 Other — 27 (18 ) Deferred tax (benefit) expense — total (9,197 ) 4,919 8,431 Total income tax (benefit) expense $ (7,277 ) $ 5,399 $ 8,691 |
Net Deferred Tax Asset (Liability) | The principal components of the Company’s net deferred tax asset (liability) were as follows (dollars in thousands): December 31, 2016 December 31, 2015 Deferred tax asset: Net operating loss carry forwards $ 151,575 $ 181,370 Net unrealized losses on derivative instruments 1,181 1,999 Basis difference on acquisition of GAAM Australian assets 6,786 6,844 Other 224 240 Valuation allowance (30,524 ) (23,029 ) Total deferred tax asset 129,242 167,424 Deferred tax liability: Excess of tax depreciation over book depreciation (137,249 ) (171,084 ) Book/tax differences identified in connection with GAAM Portfolio acquisition (438 ) (911 ) Net earnings of non-European Union member subsidiaries (3,957 ) (16,170 ) Total deferred tax liability (141,644 ) (188,165 ) Deferred tax liability, net $ (12,402 ) $ (20,741 ) |
Reconciliation of Statutory to Effective Tax Rate | The table below is a reconciliation of the Irish statutory corporation tax rate of 12.5% on trading income to the Company’s recorded income tax expense (benefit): Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 Irish statutory corporate tax rate on trading income 12.5 % 12.5 % 12.5 % Valuation allowances (19.8 )% 12.0 % 3.6 % Equity earnings from Fly-Z/C LP 0.2 % (0.5 )% (0.4 )% Tax impact of repurchased and resold Notes 1.3 % (3.2 )% (0.6 )% Share-based compensation — 0.1 % — Foreign tax rate differentials 7.8 % (9.7 )% (3.9 )% Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 True-up of prior year tax provision — 1.4 % 0.2 % Non-taxable gain on debt extinguishment 0.3 % — (1.2 )% Non-deductible interest expense, transaction fees and expenses (4.8 )% 6.1 % 2.4 % Deductible intra-group interest 30.9 % — — Unrealized foreign exchange loss on re-valuation of deferred tax balances (8.6 )% — — Other 0.2 % 0.4 % — Effective tax rate 20.0 % 19.1 % 12.6 % |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
OTHER LIABILITIES [Abstract] | |
Other Liabilities | The following table describes the principal components of the Company’s other liabilities (dollars in thousands): December 31, 2016 December 31, 2015 Net current tax provision $ 2,036 $ 645 Lease incentive obligation 24,757 21,217 Deferred rent payable 3,792 11,974 Refundable deposits 350 4,240 Other 9,319 14,050 Total other liabilities $ 40,254 $ 52,126 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
SHARE-BASED COMPENSATION [Abstract] | |
RSU Activity | A summary of the Company’s RSU activity for the year ended December 31, 2015 and 2014 is as follows: Number of shares Weighted average grant date fair value Outstanding and unvested at December 31, 2013 161,480 12.81 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 vested (36,075 ) 12.28 Outstanding and unvested at December 31, 2015 — $ — |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
EARNINGS PER SHARE [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per common share using the two-class method (dollars in thousands, except per share data): Year ended December 31, 2016 Year ended December 31, 2015 Year ended December 31, 2014 Numerator Net income (loss) $ (29,112 ) $ 22,798 $ 60,184 Less: Dividends declared and paid to shareholders — (41,388 ) (41,392 ) Dividend equivalents paid to vested RSUs and SARs — (1,054 ) (1,426 ) Net income (loss) attributable to common shareholders $ (29,112 ) $ (19,644 ) $ 17,366 Denominator Weighted average shares outstanding-Basic 33,239,001 41,222,690 41,405,211 Dilutive common equivalent shares: RSUs — 7,950 48,674 SARs — 84,509 73,699 Weighted average shares outstanding-Diluted 33,239,001 41,315,149 41,527,584 Earnings per (loss) share: Basic Distributed earnings $ — $ 1.00 $ 1.00 Undistributed income (excess distribution) $ (0.88 ) $ (0.48 ) $ 0.42 Basic earnings (loss) per share $ (0.88 ) $ 0.52 $ 1.42 Diluted Distributed earnings $ — $ 1.00 $ 1.00 Undistributed income (excess distribution) $ (0.88 ) $ (0.48 ) $ 0.42 Diluted earnings (loss) per share $ (0.88 ) $ 0.52 $ 1.42 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
Minimum Long-Term Contractual Obligations With BBAM LP, Excluding Rent Fees | The Company’s minimum long-term contractual obligations with BBAM LP as of December 31, 2016, excluding rent fees, consisted of the following (dollars in thousands): 2017 2018 2019 2020 2021 Thereafter Total Fixed base fee payments (1) $ 240 $ 240 $ 240 $ 240 $ 240 $ 1,440 $ 2,640 Fixed administrative agency fee payments due by B&B Air Funding (1)(2) 108 108 63 25 1 — 305 Fixed administrative services fee due under the Term Loan (3) 418 361 288 172 142 164 1,545 Fixed administrative services fee due under Fly Acquisition III (3) 168 168 168 168 155 165 992 Fixed administrative agency fee payments due by other subsidiaries (3) 458 406 338 322 289 929 2,742 Fixed payments for Management Expenses (1) 6,304 6,304 6,304 6,304 6,304 28,369 59,889 Total $ 7,696 $ 7,587 $ 7,401 $ 7,231 $ 7,131 $ 31,067 $ 68,113 (1) Amounts in the table assume Consumer Price Index (“CPI”) rates in effect as of December 31, 2016 remain constant in future periods. (2) On February 1, 2017, B&B Air Funding amended its servicing agreement with respect to aircraft financed by the Securitization Notes thereby (i) amending the rent fee to 3.5% of the aggregate amount of rents actually collected, plus $1,000 per aircraft per month and (ii) eliminating the base fee of $150,000 per month, both effective as of January 1, 2017. In connection with this amendment, the administrative agency fee has also been reduced, through a rebate, to $20,000 per month, subject to an annual CPI adjustment. (3) Assumes number of aircraft at December 31, 2016 remains the same for future periods. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company’s financial instruments are as follows (dollars in thousands): As of December 31, 2016 As of December 31, 2015 Principal Amount Outstanding Fair Value Principal Amount Outstanding Fair Value Securitization Notes $ 139,741 $ 134,850 $ 295,786 $ 252,897 Nord LB Facility 171,509 171,509 255,278 251,849 CBA Facility 56,146 56,146 88,190 87,070 Term Loan 404,016 406,804 427,781 421,921 Fly Acquisition III Facility 113,045 113,045 — — Other Aircraft Secured Borrowings 980,967 980,967 663,069 653,992 2020 Notes 375,000 394,219 375,000 375,000 2021 Notes 325,000 340,438 325,000 333,125 Derivative asset 1,905 1,905 241 241 Derivative liabilities 13,281 13,281 19,327 19,327 |
Asset and Liabilities Measured at Fair Value on Recurring Basis | As of December 31, 2016 and 2015, 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 (dollars in thousands): Level 1 Level 2 Level 3 Total December 31, 2016: Derivative asset — $ 1,905 — $ 1,905 Derivative liabilities — 13,281 — 13,281 December 31, 2015: Derivative asset — $ 241 — $ 241 Derivative liabilities — 19,327 — 19,327 |
UNAUDITED QUARTERLY CONDENSED46
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |
Unaudited Quarterly Financial Statements | The unaudited quarterly financial information for each of the quarters in the year ended December 31, 2016 is presented below (dollars in thousands, except per share data): March 31, 2016 June 30, 2016 September 30, 2016 December 31, 2016 Total revenues $ 81,208 $ 77,934 $ 85,297 $ 100,600 Net income (loss) $ 7,100 $ 4,677 $ 22,942 $ (63,831 ) Earnings (loss) per share — Basic $ 0.21 $ 0.14 $ 0.70 $ (1.98 ) Earnings (loss) per share — Diluted $ 0.21 $ 0.14 $ 0.70 $ (1.98 ) The unaudited quarterly financial information for each of the quarters in the year ended December 31, 2015 is presented below (dollars in thousands, except per share data): March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 Total revenues $ 123,286 $ 102,822 $ 112,655 $ 123,634 Net income (loss) $ 19,865 $ (43,695 ) $ 27,483 $ 19,145 Earnings (loss) per share — Basic $ 0.47 $ (1.06 ) $ 0.66 $ 0.47 Earnings (loss) per share — Diluted $ 0.47 $ (1.06 ) $ 0.66 $ 0.47 |
ORGANIZATION (Details)
ORGANIZATION (Details) | 12 Months Ended | |
Dec. 31, 2016Director$ / sharesshares | Dec. 31, 2015$ / sharesshares | |
Organization [Abstract] | ||
Manager shares, issued (in shares) | shares | 100 | 100 |
Manager shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Maximum [Member] | ||
Organization [Abstract] | ||
Number of directors that can be appointed by Manager Shares | Director | 0.43 |
SUMMARY OF SIGNIFICANT ACCOUN48
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016USD ($)Leaseshares | Dec. 31, 2016USD ($)LeaseSegmentshares | Dec. 31, 2015USD ($)Lease | Dec. 31, 2014USD ($) | Apr. 29, 2010shares | |
Basis of Preparation [Abstract] | |||||
Number of operating segments | Segment | 1 | ||||
Number of reportable segments | Segment | 1 | ||||
Prior Period Reclassification [Abstract] | |||||
Deferred tax liability, net | $ 19,847,000 | $ 19,847,000 | $ 28,246,000 | ||
Deferred tax assets, net | 7,445,000 | 7,445,000 | 7,505,000 | ||
Rent Receivables [Abstract] | |||||
Allowance for doubtful accounts | $ 0 | $ 0 | $ 0 | ||
Investment in Direct Finance Lease [Abstract] | |||||
Number of leases recorded as investment in finance lease | Lease | 1 | 1 | 1 | ||
Flight Equipment Held for Operating Lease [Abstract] | |||||
Useful life of flight equipment | 25 years | ||||
Residual value percentage | 15.00% | ||||
Taxes [Abstract] | |||||
Interest on unpaid income taxes and penalties | $ 0 | $ 0 | $ 0 | ||
Reclassification [Member] | |||||
Prior Period Reclassification [Abstract] | |||||
Deferred tax liability, net | (7,505,000) | ||||
Deferred tax assets, net | $ 7,505,000 | ||||
2010 Omnibus Incentive Plan [Member] | |||||
Share-Based Compensation [Abstract] | |||||
Number of share grants authorized (in shares) | shares | 1,500,000 | 1,500,000 | 1,500,000 | ||
Fly-Z/C Aircraft Holdings LP [Member] | |||||
Investment in Unconsolidated Subsidiary [Abstract] | |||||
Limited partnership interest percentage | 57.40% | 57.40% | |||
ASU 2017-01 [Member] | |||||
New Accounting Pronouncements [Abstract] | |||||
Capitalized acquisition fees | $ 800,000 |
INVESTMENT IN FINANCE LEASE (De
INVESTMENT IN FINANCE LEASE (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)LeaseAircraft | Dec. 31, 2015USD ($)Lease | Dec. 31, 2014USD ($) | |
INVESTMENT IN FINANCE LEASE [Abstract] | |||
Number of leases recorded as investment in finance lease | Lease | 1 | 1 | |
Gain on reclassification of operating lease to finance lease | $ 2,700 | ||
Implicit interest rate | 5.00% | 10.00% | |
Investment in Finance Lease [Abstract] | |||
Gain on sale of aircraft | $ 27,195 | $ 28,959 | $ 14,761 |
Finance lease income | 2,066 | 299 | $ 0 |
Net Investment in Finance Lease [Abstract] | |||
Total minimum lease payments receivable | 15,080 | 45,901 | |
Estimated unguaranteed residual value of leased asset | 4,227 | 15,000 | |
Unearned finance income | (4,212) | (26,023) | |
Net Investment in Finance Lease | 15,095 | 34,878 | |
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease [Abstract] | |||
2,017 | 1,880 | ||
2,018 | 1,800 | ||
2,019 | 1,800 | ||
2,020 | 1,800 | ||
2,021 | 1,800 | ||
Thereafter | 6,000 | ||
Future minimum rental payments under finance lease | $ 15,080 | $ 45,901 | |
Investment in Finance Lease [Member] | |||
Investment in Finance Lease [Abstract] | |||
Number of aircraft sold | Aircraft | 1 | ||
Gain on sale of aircraft | $ 4,200 |
FLIGHT EQUIPMENT HELD FOR SALE
FLIGHT EQUIPMENT HELD FOR SALE (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Aircraft | Dec. 31, 2015USD ($)AircraftPortfolio | Dec. 31, 2014USD ($) | |
Types Of Commercial Aircraft [Line Items] | |||
Gain on sale of aircraft | $ | $ 27,195 | $ 28,959 | $ 14,761 |
Flight Equipment Held for Sale [Abstract] | |||
Number of aircraft agreed to be sold | Aircraft | 45 | ||
Number of portfolio sales | Portfolio | 2 | ||
Number of aircraft delivered to purchaser | Aircraft | 13 | 32 | |
Flight equipment held for sale, net | $ | $ 0 | $ 237,262 | |
Flight Equipment Held For Sale [Member] | |||
Types Of Commercial Aircraft [Line Items] | |||
Gain on sale of aircraft | $ | $ 5,000 | $ 33,000 | |
Flight Equipment Held for Sale [Abstract] | |||
Number of aircraft held for sale | Aircraft | 0 | 13 |
FLIGHT EQUIPMENT HELD FOR OPE51
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Flight Equipment Held for Operating Lease (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | |||
Sep. 30, 2016Aircraft | Mar. 31, 2016Aircraft | Dec. 31, 2016USD ($)AircraftLesseeCountry | Dec. 31, 2015USD ($)AircraftLesseeCountry | Dec. 31, 2014USD ($)Aircraft | Dec. 31, 2016USD ($)AircraftLessee | |
Flight Equipment Held for Operating Leases [Abstract] | ||||||
Number of aircraft held | Aircraft | 75 | 79 | 75 | |||
Number of aircraft on lease | Aircraft | 75 | 77 | ||||
Number of lessees | Lessee | 41 | 43 | 41 | |||
Number of countries in which lessees operate | Country | 26 | 27 | ||||
Number of aircraft off lease | Aircraft | 2 | |||||
Gain (loss) on sale of aircraft | $ 27,195 | $ 28,959 | $ 14,761 | |||
Gain on extinguishment of debt | (9,246) | (17,491) | 2,194 | |||
Aircraft impairment | 96,122 | 66,093 | $ 1,200 | |||
Number of impaired aircraft sold | Aircraft | 1 | 1 | 10 | |||
Cost | 3,180,160 | 3,059,974 | $ 3,180,160 | |||
Accumulated depreciation | (486,339) | (474,548) | (486,339) | |||
Flight equipment held for operating lease, net | 2,693,821 | 2,585,426 | $ 2,693,821 | |||
Major maintenance expenditures capitalized | $ 5,700 | $ 26,100 | ||||
Narrow-Body Aircraft [Member] | ||||||
Flight Equipment Held for Operating Leases [Abstract] | ||||||
Number of impaired aircraft | Aircraft | 1 | 11 | 1 | |||
Wide-Body Aircraft [Member] | ||||||
Flight Equipment Held for Operating Leases [Abstract] | ||||||
Number of impaired aircraft | Aircraft | 3 | 3 | ||||
Flight Equipment Held For Operating Lease [Member] | ||||||
Flight Equipment Held for Operating Leases [Abstract] | ||||||
Number of aircraft purchased | Aircraft | 10 | 9 | ||||
Capitalized cost of aircraft purchased | $ 545,800 | $ 585,400 | ||||
Number of aircraft sold | Aircraft | 13 | 12 | 8 | |||
Number of aircraft sold for gain | Aircraft | 12 | 6 | ||||
Gain (loss) on sale of aircraft | $ 15,200 | $ (4,000) | $ 14,800 | |||
Gain on extinguishment of debt | $ 600 | $ 2,300 | ||||
Number of aircraft sold with gain on debt extinguishment | Aircraft | 1 | 2 | ||||
Aircraft impairment | $ 96,122 | 66,093 | $ 1,200 | |||
Major maintenance expenditures capitalized | 5,700 | 16,600 | ||||
Flight Equipment Held For Sale [Member] | ||||||
Flight Equipment Held for Operating Leases [Abstract] | ||||||
Gain (loss) on sale of aircraft | $ 5,000 | $ 33,000 | ||||
Number of impaired aircraft | Aircraft | 10 | 10 | ||||
Major maintenance expenditures capitalized | $ 9,500 |
FLIGHT EQUIPMENT HELD FOR OPE52
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Flight Equipment Held for Operating Lease by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 2,693,821 | $ 2,585,426 |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 2,693,821 | $ 2,585,426 |
Concentration percentage | 100.00% | 100.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Off-Lease [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 0 | $ 19,271 |
Concentration percentage | 0.00% | 1.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Europe [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 639,412 | $ 775,969 |
Concentration percentage | 24.00% | 30.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | United Kingdom [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 143,560 | $ 244,179 |
Concentration percentage | 5.00% | 9.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Turkey [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 142,787 | $ 171,861 |
Concentration percentage | 5.00% | 7.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Russia [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 17,582 | $ 0 |
Concentration percentage | 1.00% | 0.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 335,483 | $ 359,929 |
Concentration percentage | 13.00% | 14.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Asia and South Pacific [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 1,264,902 | $ 943,158 |
Concentration percentage | 47.00% | 36.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | India [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 574,853 | $ 208,009 |
Concentration percentage | 21.00% | 8.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Philippines [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 279,031 | $ 289,558 |
Concentration percentage | 10.00% | 11.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | China [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 194,774 | $ 221,576 |
Concentration percentage | 7.00% | 9.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 216,244 | $ 224,015 |
Concentration percentage | 9.00% | 8.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Mexico, South And Central America [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 169,619 | $ 176,967 |
Concentration percentage | 6.00% | 7.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Chile [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 86,251 | $ 89,406 |
Concentration percentage | 3.00% | 4.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 83,368 | $ 87,561 |
Concentration percentage | 3.00% | 3.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | North America [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 211,516 | $ 276,269 |
Concentration percentage | 8.00% | 11.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | United States [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 156,472 | $ 218,363 |
Concentration percentage | 6.00% | 9.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 55,044 | $ 57,906 |
Concentration percentage | 2.00% | 2.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Middle East and Africa [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 408,372 | $ 393,792 |
Concentration percentage | 15.00% | 15.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Ethiopia [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 332,817 | $ 342,736 |
Concentration percentage | 12.00% | 13.00% |
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | ||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | ||
Flight equipment held for operating lease, net | $ 75,555 | $ 51,056 |
Concentration percentage | 3.00% | 2.00% |
FLIGHT EQUIPMENT HELD FOR OPE53
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Operating Lease Revenue by Geographic Region (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)LesseeCustomer | Dec. 31, 2015USD ($)LesseeCustomer | Dec. 31, 2014USD ($)LesseeCustomer | |
Revenues [Abstract] | |||
Operating lease revenue | $ 313,582 | $ 429,691 | $ 406,563 |
Number of major customers | Customer | 0 | 0 | 0 |
Number of lessees leasing aircraft on non-accrual status | Lessee | 0 | 2 | 2 |
End of lease revenues | $ 8,900 | $ 53,800 | $ 41,700 |
Amortization of lease premiums, net of lease discounts | $ 0 | $ 1,400 | 3,000 |
Weighted average remaining lease term | 6 years 9 months 18 days | 6 years 7 months 6 days | |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 313,582 | $ 429,691 | $ 406,563 |
Concentration percentage | 100.00% | 100.00% | 100.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Europe [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 106,682 | $ 178,556 | $ 156,027 |
Concentration percentage | 34.00% | 42.00% | 39.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United Kingdom [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 34,498 | $ 50,742 | $ 46,281 |
Concentration percentage | 11.00% | 12.00% | 11.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Turkey [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 24,593 | $ 29,847 | $ 27,069 |
Concentration percentage | 8.00% | 7.00% | 7.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Russia [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 3,141 | $ 24,095 | $ 9,017 |
Concentration percentage | 1.00% | 6.00% | 2.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 44,450 | $ 73,872 | $ 73,660 |
Concentration percentage | 14.00% | 17.00% | 19.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Asia and South Pacific [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 119,938 | $ 135,248 | $ 138,526 |
Concentration percentage | 38.00% | 31.00% | 34.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | India [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 39,640 | $ 19,572 | $ 32,675 |
Concentration percentage | 13.00% | 4.00% | 8.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Philippines [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 29,129 | $ 38,677 | $ 12,947 |
Concentration percentage | 9.00% | 9.00% | 3.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | China [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 23,882 | $ 37,943 | $ 47,049 |
Concentration percentage | 8.00% | 9.00% | 12.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 27,287 | $ 39,056 | $ 45,855 |
Concentration percentage | 8.00% | 9.00% | 11.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Mexico, South And Central America [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 17,707 | $ 41,068 | $ 49,849 |
Concentration percentage | 6.00% | 10.00% | 12.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Chile [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 8,939 | $ 24,336 | $ 28,116 |
Concentration percentage | 3.00% | 6.00% | 7.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 8,768 | $ 16,732 | $ 21,733 |
Concentration percentage | 3.00% | 4.00% | 5.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | North America [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 30,814 | $ 43,696 | $ 44,960 |
Concentration percentage | 10.00% | 10.00% | 11.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United States [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 24,591 | $ 37,316 | $ 41,531 |
Concentration percentage | 8.00% | 9.00% | 10.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 6,223 | $ 6,380 | $ 3,429 |
Concentration percentage | 2.00% | 1.00% | 1.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Middle East and Africa [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 38,441 | $ 31,123 | $ 17,201 |
Concentration percentage | 12.00% | 7.00% | 4.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Ethiopia [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 30,084 | $ 22,808 | $ 4,501 |
Concentration percentage | 10.00% | 5.00% | 1.00% |
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||
Revenues [Abstract] | |||
Operating lease revenue | $ 8,357 | $ 8,315 | $ 12,700 |
Concentration percentage | 2.00% | 2.00% | 3.00% |
FLIGHT EQUIPMENT HELD FOR OPE54
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Contracted Future Minimum Rental Payments Due [Abstract] | |
2,017 | $ 319,070 |
2,018 | 292,188 |
2,019 | 248,419 |
2,020 | 220,893 |
2,021 | 199,212 |
Thereafter | 699,356 |
Future minimum rental payments under operating leases | $ 1,979,138 |
FLIGHT EQUIPMENT HELD FOR OPE55
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Amortization of Lease Incentives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |||
Amortization of lease incentives | $ 8,898 | $ 20,527 | $ 18,934 |
Amortization of Lease Incentives [Abstract] | |||
2,017 | 6,528 | ||
2,018 | 6,854 | ||
2,019 | 6,130 | ||
2,020 | 4,352 | ||
2,021 | 2,502 | ||
Thereafter | 1,164 | ||
Future amortization of lease incentives | $ 27,530 |
MAINTENANCE RIGHTS (Details)
MAINTENANCE RIGHTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
MAINTENANCE RIGHTS [Abstract] | ||
Maintenance rights, net beginning balance | $ 94,493 | $ 144,920 |
Acquisitions | 28,412 | 8,606 |
Capitalized to aircraft improvements | (5,245) | (6,591) |
Maintenance rights written off against end of lease income | 0 | (5,781) |
Cash receipts in settlement of maintenance rights | (9,513) | (5,253) |
Maintenance rights associated with aircraft sold | (6,178) | (41,408) |
Maintenance rights, net at end of period | $ 101,969 | $ 94,493 |
INVESTMENT IN UNCONSOLIDATED 57
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Investment in Unconsolidated Subsidiary [Abstract] | |||
Equity earnings from unconsolidated subsidiary | $ 530 | $ 1,159 | $ 3,562 |
Fly-Z/C LP [Member] | |||
Investment in Unconsolidated Subsidiary [Abstract] | |||
Limited partnership interest percentage | 57.40% | ||
Equity earnings from unconsolidated subsidiary | $ 500 | 1,200 | 3,600 |
Contributions to unconsolidated subsidiary | 2,000 | ||
Distributions from unconsolidated subsidiary | $ 0 | $ 0 | $ 6,600 |
Summit Aviation Partners LLC [Member] | Fly-Z/C LP [Member] | |||
Investment in Unconsolidated Subsidiary [Abstract] | |||
Limited partnership interest percentage | 10.20% |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets [Abstract] | ||
Lease costs, net | $ 1,730 | $ 2,176 |
Other assets | 4,838 | 4,274 |
Total other assets | $ 6,568 | $ 6,450 |
UNSECURED BORROWINGS, Unsecured
UNSECURED BORROWINGS, Unsecured Debt (Details) - USD ($) $ in Thousands | Oct. 03, 2014 | Dec. 11, 2013 | Dec. 31, 2016 | Dec. 31, 2015 |
Unsecured Borrowings [Abstract] | ||||
Unsecured borrowings, net | $ 691,390 | $ 689,409 | ||
Unsecured Borrowings [Member] | ||||
Unsecured Borrowings [Abstract] | ||||
Outstanding principal balance | 700,000 | 700,000 | ||
Unamortized debt discount and loan costs | (8,610) | (10,591) | ||
Unsecured borrowings, net | 691,390 | 689,409 | ||
Unsecured Borrowings [Member] | 2020 Notes [Member] | ||||
Unsecured Borrowings [Abstract] | ||||
Outstanding principal balance | $ 375,000 | 375,000 | ||
Notes issued | $ 75,000 | $ 300,000 | ||
Interest rate | 6.75% | 6.75% | ||
Underwriting debt discount paid | $ 8,500 | |||
Percentage of principal paid as premium at time of issuance | 104.75% | |||
Maturity date | Dec. 15, 2020 | |||
Unsecured Borrowings [Member] | 2021 Notes [Member] | ||||
Unsecured Borrowings [Abstract] | ||||
Outstanding principal balance | $ 325,000 | $ 325,000 | ||
Notes issued | $ 325,000 | |||
Interest rate | 6.375% | |||
Maturity date | Oct. 15, 2021 | |||
Unsecured Borrowings [Member] | Additional 2020 Notes and 2021 Notes [Member] | ||||
Unsecured Borrowings [Abstract] | ||||
Underwriting debt discount paid | $ 3,400 |
UNSECURED BORROWINGS, Redemptio
UNSECURED BORROWINGS, Redemption Price (Details) - Unsecured Borrowings [Member] $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
2020 Notes [Member] | Twelve Month Period Commencing December 15, 2016 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Dec. 15, 2016 |
Redemption price percentage | 105.063% |
2020 Notes [Member] | Twelve Month Period Commencing December 15, 2017 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Dec. 15, 2017 |
Redemption price percentage | 103.375% |
2020 Notes [Member] | Twelve Month Period Commencing December 15, 2018 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Dec. 15, 2018 |
Redemption price percentage | 101.688% |
2020 Notes [Member] | Twelve Month Period Commencing December 15, 2019 and Thereafter [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Dec. 15, 2019 |
Redemption price percentage | 100.00% |
2021 Notes [Member] | Any Time Prior to October 15, 2017 [Member] | |
Unsecured Borrowings [Abstract] | |
End date of redemption period | Oct. 14, 2017 |
Redemption percentage of principal amount | 35.00% |
Redemption price percentage | 106.375% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2017 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2017 |
Redemption price percentage | 104.781% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2018 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2018 |
Redemption price percentage | 103.188% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2019 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2019 |
Redemption price percentage | 101.594% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2020 and Thereafter [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2020 |
Redemption price percentage | 100.00% |
2020 Notes and 2021 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Percentage of principal to be paid upon change in control | 101.00% |
Period of default for payment of interest | 30 days |
Period of default after receipt of written notice to comply with agreements under indenture | 60 days |
Percentage of aggregate principal amount held by holders | 25.00% |
Obligations in default constituting event of default | $ 50 |
Period to pay final judgments after judgment becomes final | 60 days |
SECURED BORROWINGS, Secured Bor
SECURED BORROWINGS, Secured Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Secured Borrowings [Abstract] | |||
Net carrying value | $ 1,831,985 | $ 1,695,711 | |
Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | 1,865,424 | ||
Unamortized debt discount and loan costs | (33,439) | (34,393) | |
Net carrying value | 1,831,985 | 1,695,711 | |
Secured Borrowings [Member] | Securitization Notes [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 139,741 | $ 295,786 | |
Weighted average interest rate | [1] | 3.36% | 3.38% |
Maturity date | Nov. 14, 2033 | ||
Secured Borrowings [Member] | Nord LB Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 171,509 | $ 255,278 | |
Weighted average interest rate | [1] | 4.14% | 4.04% |
Maturity date | Nov. 14, 2018 | ||
Secured Borrowings [Member] | CBA Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 56,146 | $ 88,190 | |
Weighted average interest rate | [1] | 5.45% | 5.02% |
Maturity date | Oct. 28, 2020 | ||
Secured Borrowings [Member] | Term Loan [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 404,016 | $ 427,781 | |
Weighted average interest rate | [1] | 4.41% | 4.39% |
Maturity date | Feb. 28, 2022 | ||
Secured Borrowings [Member] | Fly Acquisition III Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 113,045 | $ 0 | |
Weighted average interest rate | [1] | 2.88% | 0.00% |
Maturity date | Feb. 26, 2022 | ||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Outstanding principal balance | $ 980,967 | $ 663,069 | |
Weighted average interest rate | [1] | 3.50% | 3.63% |
Maturity date, range start date | Sep. 30, 2019 | ||
Maturity date, range end date | Jun. 30, 2028 | ||
[1] | Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
SECURED BORROWINGS, Securitizat
SECURED BORROWINGS, Securitization Notes (Details) - Secured Borrowings [Member] | 12 Months Ended | |
Dec. 31, 2016USD ($)Aircraft | Dec. 31, 2015USD ($) | |
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 1,865,424,000 | |
Securitization Notes [Member] | ||
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 139,741,000 | $ 295,786,000 |
Maturity date | Nov. 14, 2033 | |
B&B Air Funding [Member] | Securitization Notes [Member] | ||
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 139,741,000 | |
Number of aircraft serving as security | Aircraft | 9 | |
Maturity date | Nov. 14, 2033 | |
Redemption price percentage | 100.00% | |
B&B Air Funding [Member] | Securitization Notes [Member] | LIBOR [Member] | ||
Secured Borrowings [Abstract] | ||
Term of variable rate | 1 month | |
Basis spread on variable rate | 0.77% | |
B&B Air Funding [Member] | Revolving Credit Facility [Member] | Securitization Note Liquidity Facility [Member] | ||
Secured Borrowings [Abstract] | ||
Maximum borrowing capacity | $ 60,000,000 | |
Commitment fee percentage | 0.40% | |
Balance | $ 0 | $ 0 |
B&B Air Funding [Member] | Revolving Credit Facility [Member] | Securitization Note Liquidity Facility [Member] | LIBOR [Member] | ||
Secured Borrowings [Abstract] | ||
Term of variable rate | 1 month | |
Basis spread on variable rate | 1.20% |
SECURED BORROWINGS, Nord LB Fac
SECURED BORROWINGS, Nord LB Facility (Details) - Secured Borrowings [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Aircraft | Dec. 31, 2015USD ($) | |
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 1,865,424 | |
Nord LB Facility [Member] | ||
Secured Borrowings [Abstract] | ||
Principal amount outstanding | $ 171,509 | $ 255,278 |
Number of aircraft serving as security | Aircraft | 6 | |
Maturity date | Nov. 14, 2018 | |
Percentage of lease rentals collected applied to interest and principal | 95.00% | |
Period after termination or expiration of lease when payments become due | 6 months | |
Period aircraft remains off-lease before interest is charged | 6 months | |
Period aircraft remains off-lease before debt service is charged | 12 months | |
Percentage of lease rate paid as debt service fee | 85.00% | |
Period aircraft remains off-lease before payment in full is required or foreclosure on aircraft occurs | 24 months | |
Percentage return on equity investment after full repayment of facility | 10.00% | |
Fee percentage payable after full repayment of facility | 10.00% | |
Nord LB Facility [Member] | Maximum [Member] | ||
Secured Borrowings [Abstract] | ||
Fee payable after full repayment of facility | $ 5,000 | |
Nord LB Facility [Member] | Minimum [Member] | ||
Secured Borrowings [Abstract] | ||
Obligations in default constituting event of default | $ 10,000 | |
Nord LB Facility [Member] | LIBOR [Member] | ||
Secured Borrowings [Abstract] | ||
Term of variable rate | 1 month | |
Basis spread on variable rate | 3.30% |
SECURED BORROWINGS, CBA Facilit
SECURED BORROWINGS, CBA Facility (Details) - Secured Borrowings [Member] $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)AircraftLoan | Dec. 31, 2015USD ($) | ||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | $ 1,865,424 | ||
CBA Facility [Member] | |||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | $ 56,146 | $ 88,190 | |
Number of aircraft serving as security | Aircraft | 4 | ||
Number of loans maturing in 2020 | Loan | 4 | ||
Maturity date | Oct. 28, 2020 | ||
Debt ratio used to determine payment into collateral account | 80.00% | ||
Weighted average interest rate | [1] | 5.45% | 5.02% |
[1] | Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
SECURED BORROWINGS, Term Loan (
SECURED BORROWINGS, Term Loan (Details) | Oct. 19, 2016 | Dec. 31, 2016USD ($)AircraftAppraiser | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Secured Borrowings [Abstract] | ||||
Loss on extinguishment of debt | $ (9,246,000) | $ (17,491,000) | $ 2,194,000 | |
Secured Borrowings [Member] | ||||
Secured Borrowings [Abstract] | ||||
Principal amount outstanding | 1,865,424,000 | |||
Secured Borrowings [Member] | Term Loan [Member] | ||||
Secured Borrowings [Abstract] | ||||
Principal amount outstanding | $ 404,016,000 | 427,781,000 | ||
Number of aircraft serving as security | Aircraft | 26 | |||
Redemption price percentage | 101.00% | |||
One-time percentage fee paid in connection with amending the loan | 0.25% | |||
Loss on extinguishment of debt | $ 2,300,000 | 2,100,000 | ||
Prepayment penalty | $ 0 | |||
Number of independent appraisers | Appraiser | 3 | |||
Secured Borrowings [Member] | Term Loan [Member] | Maximum [Member] | ||||
Secured Borrowings [Abstract] | ||||
Loan-to-Value Ratio | 70.00% | |||
Secured Borrowings [Member] | Term Loan [Member] | Minimum [Member] | ||||
Secured Borrowings [Abstract] | ||||
Obligations in default constituting event of default | $ 50,000,000 | |||
Secured Borrowings [Member] | Term Loan [Member] | LIBOR [Member] | ||||
Secured Borrowings [Abstract] | ||||
Term of variable rate | 3 months | |||
Basis spread on variable rate | 2.75% | |||
Floor interest rate | 0.75% |
SECURED BORROWINGS, Fly Acquisi
SECURED BORROWINGS, Fly Acquisition III Facility (Details) - Secured Borrowings [Member] $ in Thousands | 12 Months Ended | 23 Months Ended | 24 Months Ended | ||
Feb. 26, 2020 | Dec. 31, 2016USD ($)Aircraft | Feb. 26, 2019 | Feb. 26, 2022 | Dec. 31, 2015USD ($) | |
Secured Borrowings [Abstract] | |||||
Principal amount outstanding | $ 1,865,424 | ||||
Fly Acquisition III Facility [Member] | |||||
Secured Borrowings [Abstract] | |||||
Maturity date | Feb. 26, 2022 | ||||
Principal amount outstanding | $ 113,045 | $ 0 | |||
Number of aircraft serving as security | Aircraft | 4 | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | |||||
Secured Borrowings [Abstract] | |||||
Maximum borrowing capacity | $ 385,000 | ||||
Maturity date | Feb. 26, 2022 | ||||
Commitment fee percentage | 0.50% | ||||
Minimum tangible net worth required for compliance | $ 325,000 | ||||
Minimum liquidity required for compliance | 25,000 | ||||
Obligations in default constituting event of default | $ 50,000 | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | Forecast [Member] | |||||
Secured Borrowings [Abstract] | |||||
Commitment fee percentage | 0.75% | ||||
Minimum percentage of total commitments that have not been drawn before commitment fee percentage increases | 50.00% | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | LIBOR [Member] | |||||
Secured Borrowings [Abstract] | |||||
Term of variable rate | 1 month | ||||
Basis spread on variable rate | 2.00% | ||||
Revolving Credit Facility [Member] | Fly Acquisition III Facility [Member] | LIBOR [Member] | Forecast [Member] | |||||
Secured Borrowings [Abstract] | |||||
Basis spread on variable rate | 2.50% | 3.00% |
SECURED BORROWINGS, Other Aircr
SECURED BORROWINGS, Other Aircraft Secured Borrowings (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)AircraftLoan | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Secured Borrowings [Abstract] | |||
Proceeds from secured borrowings | $ 572,719 | $ 147,276 | $ 298,658 |
Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Principal amount outstanding | $ 1,865,424 | ||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Number of loans denominated in Euros | Loan | 1 | ||
Principal amount outstanding | $ 980,967 | $ 663,069 | |
Number of aircraft serving as security | Aircraft | 19 | ||
Recourse debt | $ 509,800 | ||
Maturity date, range start date | Sep. 30, 2019 | ||
Maturity date, range end date | Jun. 30, 2028 | ||
Number of aircraft financed by borrowing | Aircraft | 5 | ||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | Five Aircraft Acquired [Member] | |||
Secured Borrowings [Abstract] | |||
Proceeds from secured borrowings | $ 469,600 |
SECURED BORROWINGS, Future Mini
SECURED BORROWINGS, Future Minimum Principal Payments on Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Secured Borrowings [Abstract] | |||
Repayment of debt | $ 448,346 | $ 791,385 | $ 192,974 |
Secured Borrowings [Member] | |||
Secured Borrowings [Abstract] | |||
Repayment of debt | 130,600 | ||
Future Minimum Principal Payments [Abstract] | |||
2,017 | 169,572 | ||
2,018 | 288,150 | ||
2,019 | 147,762 | ||
2,020 | 162,914 | ||
2,021 | 123,506 | ||
Thereafter | 973,520 | ||
Future minimum principal payments due | 1,865,424 | ||
Secured Borrowings [Member] | Aircraft Sold [Member] | |||
Secured Borrowings [Abstract] | |||
Repayment of debt | $ 318,500 |
DERIVATIVES, Derivatives (Detai
DERIVATIVES, Derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivatives [Abstract] | ||
Fair value of derivative assets | $ 1,905 | $ 241 |
Fair value of derivative liabilities | $ 13,281 | 19,327 |
LIBOR [Member] | Minimum [Member] | ||
Derivatives [Abstract] | ||
Term of variable rate | 1 month | |
LIBOR [Member] | Maximum [Member] | ||
Derivatives [Abstract] | ||
Term of variable rate | 3 months | |
Debt with Floating Interest Rates Associated with Aircraft with Fixed Rate Rentals [Member] | ||
Derivatives [Abstract] | ||
Debt | $ 900,000 | |
Interest Rate Swap Contracts [Member] | ||
Derivatives [Abstract] | ||
Notional amounts | 800,000 | 1,000,000 |
Fair value of derivative assets | 1,900 | 200 |
Fair value of derivative liabilities | $ 13,300 | $ 19,300 |
DERIVATIVES, Derivative Assets
DERIVATIVES, Derivative Assets (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($)Instrument | Dec. 31, 2015USD ($) | |
Derivatives [Abstract] | ||
Adjusted fair value of derivative asset | $ 1,905 | $ 241 |
Interest Rate Swap Contracts [Member] | ||
Derivatives [Abstract] | ||
Adjusted fair value of derivative asset | $ 1,900 | $ 200 |
Designated Derivatives [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 6 | |
Swap contract notional amount | $ 127,411 | |
Fair value of derivative asset | 1,937 | |
Credit risk adjustment | (32) | |
Accrued interest | (19) | |
Adjusted fair value of derivative asset | 1,905 | |
Gain recognized in accumulated comprehensive loss | 1,463 | |
Loss recognized into earnings | $ 252 | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | ||
Derivatives [Abstract] | ||
Quantity | Instrument | 6 | |
Swap contract notional amount | $ 127,411 | |
Fair value of derivative asset | 1,956 | |
Credit risk adjustment | (32) | |
Adjusted fair value of derivative asset | 1,924 | |
Gain recognized in accumulated comprehensive loss | 1,463 | |
Loss recognized into earnings | $ 252 | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | Minimum [Member] | ||
Derivatives [Abstract] | ||
Maturity dates | Nov. 14, 2018 | |
Hedge interest rates | 0.90% | |
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | Maximum [Member] | ||
Derivatives [Abstract] | ||
Maturity dates | Feb. 15, 2022 | |
Hedge interest rates | 1.18% |
DERIVATIVES, Derivative Liabili
DERIVATIVES, Derivative Liabilities (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Instrument | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Derivatives [Abstract] | |||
Adjusted fair value of derivative liability | $ (13,281) | $ (19,327) | |
Interest expense | 123,161 | 145,448 | $ 142,519 |
Interest Rate Swap Contracts [Member] | |||
Derivatives [Abstract] | |||
Adjusted fair value of derivative liability | $ (13,300) | (19,300) | |
Loss recognized into earnings | $ (1,100) | ||
Designated Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 10 | ||
Swap contract notional amount | $ 350,437 | ||
Fair value of derivative liability | (11,787) | ||
Credit risk adjustment | 279 | ||
Accrued interest | (316) | ||
Adjusted fair value of derivative liability | (11,508) | ||
Loss recognized in accumulated comprehensive loss | (10,286) | ||
Loss recognized into earnings | $ 478 | ||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 10 | ||
Swap contract notional amount | $ 350,437 | ||
Fair value of derivative liability | (11,471) | ||
Credit risk adjustment | 279 | ||
Adjusted fair value of derivative liability | (11,192) | ||
Loss recognized in accumulated comprehensive loss | (10,286) | ||
Loss recognized into earnings | $ 478 | ||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Minimum [Member] | |||
Derivatives [Abstract] | |||
Maturity dates | Feb. 9, 2018 | ||
Hedge interest rates | 1.69% | ||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Maximum [Member] | |||
Derivatives [Abstract] | |||
Maturity dates | Sep. 27, 2025 | ||
Hedge interest rates | 6.22% | ||
Dedesignated Derivatives [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 2 | ||
Swap contract notional amount | $ 295,509 | ||
Fair value of derivative liability | (1,789) | ||
Credit risk adjustment | 16 | ||
Accrued interest | (247) | ||
Adjusted fair value of derivative liability | (1,773) | ||
Loss recognized into earnings | (171) | ||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | |||
Derivatives [Abstract] | |||
Loss recognized in accumulated comprehensive loss | 2,300 | ||
Interest expense | $ 800 | ||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | |||
Derivatives [Abstract] | |||
Quantity | Instrument | 2 | ||
Maturity dates | Feb. 9, 2018 | ||
Swap contract notional amount | $ 295,509 | ||
Fair value of derivative liability | (1,542) | ||
Credit risk adjustment | 16 | ||
Adjusted fair value of derivative liability | (1,526) | ||
Loss recognized into earnings | $ (171) | ||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Minimum [Member] | |||
Derivatives [Abstract] | |||
Hedge interest rates | 1.82% | ||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Maximum [Member] | |||
Derivatives [Abstract] | |||
Hedge interest rates | 1.83% |
DERIVATIVES, Terminated Derivat
DERIVATIVES, Terminated Derivatives (Details) - Interest Rate Swap Contracts [Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | |
Derivatives [Abstract] | ||
Number of contracts terminated | Contract | 4 | 14 |
Loss associated with terminated contracts | $ (0.6) | $ (2.4) |
Loss recognized into earnings | $ (1.1) |
INCOME TAXES, Income Tax Expens
INCOME TAXES, Income Tax Expense (Benefits) by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Corporation tax rate on trading income | 12.50% | 12.50% | 12.50% |
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | $ 1,920 | $ 480 | $ 260 |
Deferred tax (benefit) expense | (9,197) | 4,919 | 8,431 |
Total income tax (benefit) expense | $ (7,277) | 5,399 | 8,691 |
Ireland [Member] | |||
Income Taxes [Abstract] | |||
Corporation tax rate on trading income | 12.50% | ||
Corporation tax rate on non-trading income | 25.00% | ||
Ireland [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | $ 0 | 33 | 0 |
Deferred tax (benefit) expense | (10,812) | 4,558 | 8,208 |
Luxembourg [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | 145 | 252 | 210 |
United States [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | 0 | 0 | 2 |
Australia [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | 1,742 | 138 | 0 |
Deferred tax (benefit) expense | 1,615 | 334 | 241 |
Foreign exchange loss | 3,300 | ||
Other [Member] | |||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||
Current tax expense | 33 | 57 | 48 |
Deferred tax (benefit) expense | $ 0 | $ 27 | $ (18) |
INCOME TAXES, Net Deferred Tax
INCOME TAXES, Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Deferred Tax Asset [Abstract] | |||
Net operating loss carry forwards | 151,575 | 181,370 | |
Net unrealized losses on derivative instruments | 1,181 | 1,999 | |
Basis difference on acquisition of GAAM Australian assets | 6,786 | 6,844 | |
Other | 224 | 240 | |
Valuation allowance | (30,524) | (23,029) | |
Total deferred tax asset | 129,242 | 167,424 | |
Deferred Tax Liability [Abstract] | |||
Excess of tax depreciation over book depreciation | (137,249) | (171,084) | |
Book/tax differences identified in connection with GAAM Portfolio acquisition | (438) | (911) | |
Net earnings of non-European Union member subsidiaries | (3,957) | (16,170) | |
Total deferred tax liability | (141,644) | (188,165) | |
Deferred tax liability, net | (12,402) | (20,741) | |
Net valuation allowance recorded for net operating losses | $ 7,200 | $ 3,400 | $ 2,500 |
Australia [Member] | |||
Income Taxes [Abstract] | |||
Withholding tax rate | 15.00% |
INCOME TAXES, Reconciliation of
INCOME TAXES, Reconciliation of Statutory to Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Income Tax Expense (Benefit) [Abstract] | |||
Irish statutory corporate tax rate on trading income | 12.50% | 12.50% | 12.50% |
Valuation allowances | (19.80%) | 12.00% | 3.60% |
Equity earnings from Fly-Z/C LP | 0.20% | (0.50%) | (0.40%) |
Tax impact of repurchased and resold Notes | 1.30% | (3.20%) | (0.60%) |
Share-based compensation | 0.00% | 0.10% | 0.00% |
Foreign tax rate differentials | 7.80% | (9.70%) | (3.90%) |
True-up of prior year tax provision | 0.00% | 1.40% | 0.20% |
Non-taxable gain on debt extinguishment | 0.30% | 0.00% | (1.20%) |
Non-deductible interest expense, transaction fees and expenses | (4.80%) | 6.10% | 2.40% |
Deductible intra-group interest | 30.90% | 0.00% | 0.00% |
Unrealized foreign exchange loss on re-valuation of deferred tax balances | (8.60%) | 0.00% | 0.00% |
Other | 0.20% | 0.40% | 0.00% |
Effective tax rate | 20.00% | 19.10% | 12.60% |
Revenue Commissioners, Ireland [Member] | |||
Reconciliation of Income Tax Expense (Benefit) [Abstract] | |||
Irish statutory corporate tax rate on trading income | 12.50% | ||
Foreign Tax Authority [Member] | Revenue Commissioners, Ireland [Member] | |||
Income Taxes [Abstract] | |||
Period in which enquiries and/or assessments can be raised by taxing authority after return is submitted | 4 years | ||
Foreign Tax Authority [Member] | Revenue Commissioners, Ireland [Member] | Minimum [Member] | |||
Income Taxes [Abstract] | |||
Open tax year | 2,012 | ||
Foreign Tax Authority [Member] | Revenue Commissioners, Ireland [Member] | Maximum [Member] | |||
Income Taxes [Abstract] | |||
Open tax year | 2,016 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
OTHER LIABILITIES [Abstract] | ||
Net current tax provision | $ 2,036 | $ 645 |
Lease incentive obligation | 24,757 | 21,217 |
Deferred rent payable | 3,792 | 11,974 |
Refundable deposits | 350 | 4,240 |
Other | 9,319 | 14,050 |
Total other liabilities | $ 40,254 | $ 52,126 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2016 | |
SHAREHOLDERS' EQUITY [Abstract] | ||||
Approved share repurchase program | $ 75 | |||
Remaining amount authorized | $ 66.7 | |||
Shares repurchased (in shares) | 3,414,960 | 5,797,673 | 0 | |
Average price per share repurchased (in dollars per share) | $ 11.73 | $ 13.89 | ||
Repurchase of shares before commissions and fees | $ 40.1 | $ 80.5 | ||
Shares outstanding (in shares) | 32,256,440 | 35,671,400 | ||
Dividends declared and paid per share (in dollars per shares) | $ 0 | $ 1 | $ 1 | |
Dividends declared and paid | $ 0 | $ 42.4 | $ 42.8 | |
New shares issued (in shares) | 0 | 0 | ||
Shares issued in connection with RSUs that vested and SARs that were exercised (in shares) | 126,660 |
SHARE-BASED COMPENSATION, SAR A
SHARE-BASED COMPENSATION, SAR Activity (Details) | 12 Months Ended | |||
Dec. 31, 2016Installment$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2015$ / sharesshares | Apr. 29, 2010shares | |
SARs [Member] | ||||
Number of Shares [Abstract] | ||||
Outstanding (in shares) | 821,117 | 821,117 | 821,117 | |
Exercisable (in shares) | 821,117 | 821,117 | 821,117 | |
Exercised (in shares) | (58,519) | |||
Canceled or forfeited (in shares) | (8,998) | |||
Weighted Average Exercise Price [Abstract] | ||||
Outstanding (in dollars per share) | $ / shares | $ 12.74 | $ 12.74 | $ 12.74 | |
Exercisable (in dollars per share) | $ / shares | $ 12.74 | 12.74 | $ 12.74 | |
Exercised (in dollars per share) | $ / shares | 12.80 | |||
Canceled or forfeited (in dollars per share) | $ / shares | $ 12.28 | |||
Weighted Average Remaining Contractual Life and Intrinsic Value [Abstract] | ||||
Weighted average remaining contractual life | 4 years 1 month 6 days | |||
2010 Omnibus Incentive Plan [Member] | ||||
Description of Plan [Abstract] | ||||
Number of shares authorized (in shares) | 1,500,000 | 1,500,000 | ||
2010 Omnibus Incentive Plan [Member] | SARs [Member] | ||||
Description of Plan [Abstract] | ||||
Number of equal installments for awards to vest | Installment | 3 | |||
Expiration period | 10 years | |||
2010 Omnibus Incentive Plan [Member] | RSUs [Member] | ||||
Description of Plan [Abstract] | ||||
Number of equal installments for awards to vest | Installment | 3 | |||
Expiration period | 10 years |
SHARE-BASED COMPENSATION, RSU A
SHARE-BASED COMPENSATION, RSU Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
RSUs [Member] | ||
Number of Shares [Roll Forward] | ||
Outstanding and unvested, beginning balance (in shares) | 36,075 | 161,480 |
Vested (in shares) | (36,075) | (119,666) |
Canceled or forfeited (in shares) | (5,739) | |
Outstanding and unvested, ending balance (in shares) | 0 | 36,075 |
Weighted Average Grant Date Fair Value [Abstract] | ||
Outstanding and unvested, beginning balance (in dollars per share) | $ 12.28 | $ 12.81 |
Vested (in dollars per share) | 12.28 | 12.99 |
Canceled or forfeited (in dollars per share) | 12.28 | |
Outstanding and unvested, ending balance (in dollars per share) | $ 0 | $ 12.28 |
Selling, General and Administrative Expenses [Member] | ||
Share-based Compensation Expense [Abstract] | ||
Share-based compensation expense | $ 200 | $ 30 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator [Abstract] | |||||||||||
Net income (loss) | $ (63,831) | $ 22,942 | $ 4,677 | $ 7,100 | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ (29,112) | $ 22,798 | $ 60,184 |
Less [Abstract] | |||||||||||
Dividends declared and paid to shareholders | 0 | (41,388) | (41,392) | ||||||||
Dividend equivalents paid to vested RSUs and SARs | 0 | (1,054) | (1,426) | ||||||||
Net income (loss) attributable to common shareholders | $ (29,112) | $ (19,644) | $ 17,366 | ||||||||
Denominator [Abstract] | |||||||||||
Weighted average shares outstanding-Basic (in shares) | 33,239,001 | 41,222,690 | 41,405,211 | ||||||||
Weighted average shares outstanding-Diluted (in shares) | 33,239,001 | 41,315,149 | 41,527,584 | ||||||||
Basic [Abstract] | |||||||||||
Distributed earnings (in dollars per shares) | $ 0 | $ 1 | $ 1 | ||||||||
Undistributed income (excess distribution) (in dollars per shares) | (0.88) | (0.48) | 0.42 | ||||||||
Basic earnings (loss) per share (in dollars per shares) | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | (0.88) | 0.52 | 1.42 |
Diluted [Abstract] | |||||||||||
Distributed earnings (in dollars per shares) | 0 | 1 | 1 | ||||||||
Undistributed income (excess distribution) (in dollars per shares) | (0.88) | (0.48) | 0.42 | ||||||||
Diluted earnings (loss) per share (in dollars per shares) | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ (0.88) | $ 0.52 | $ 1.42 |
RSUs [Member] | |||||||||||
Denominator [Abstract] | |||||||||||
Dilutive common equivalent shares (in shares) | 0 | 7,950 | 48,674 | ||||||||
SARs [Member] | |||||||||||
Denominator [Abstract] | |||||||||||
Dilutive common equivalent shares (in shares) | 0 | 84,509 | 73,699 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)Aircraft | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Number of aircraft with guaranteed residual value | Aircraft | 3 |
Term of lease | 12 years |
Residual value guarantee fees received | $ | $ 6.6 |
Amortization period for residual value guarantee fees | 12 years |
Notice period for lessor to exercise rights to residual value guarantee | 11 months |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) | Feb. 01, 2017USD ($) | Dec. 31, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2016USD ($)Extension | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Fixed Management Expenses [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Annual fee with related party | $ 5,700,000 | $ 10,700,000 | |||||
Manager [Member] | Origination Fees [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Charges from related party | $ 8,400,000 | $ 9,200,000 | $ 12,800,000 | ||||
Expenses with related party | 900,000 | 1,000,000 | 3,100,000 | ||||
Manager [Member] | Fixed Management Expenses [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Expenses with related party | 6,300,000 | 8,200,000 | 10,600,000 | ||||
Manager [Member] | Disposition Fees [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Expenses with related party | $ 7,500,000 | 15,600,000 | 2,200,000 | ||||
Manager [Member] | Fixed Management Fee [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Adjustment for percentage change in book value of aircraft portfolio during preceding year | 0.30% | ||||||
Base amount used to calculate management fee adjustment | $ 2,700,000,000 | ||||||
Adjustment for percentage change in book value of aircraft portfolio in excess of base amount | 0.25% | ||||||
Number of automatic extensions | Extension | 1 | ||||||
Term of extension | 5 years | ||||||
Termination notice period | 12 months | ||||||
Manager [Member] | Fixed Management Fee [Member] | Minimum [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Charges from related party | $ 5,000,000 | ||||||
Manager [Member] | Fixed Management Fee [Member] | Maximum [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Charges from related party | 12,000,000 | ||||||
Adjustment increase over $2.7 billion | 2,000,000,000 | ||||||
Manager [Member] | Non-Renewal Fee [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Charges from related party | $ 6,000,000 | ||||||
Adjustment percentage of excess Management Expenses over threshold | 50.00% | ||||||
Manager [Member] | Disposition Fees for ECAF-I Transaction [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Percentage of aggregate gross proceeds from disposition of aircraft | 1.20% | ||||||
BBAM [Member] | |||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||
2,017 | $ 7,696,000 | ||||||
2,018 | 7,587,000 | ||||||
2,019 | 7,401,000 | ||||||
2,020 | 7,231,000 | ||||||
2,021 | 7,131,000 | ||||||
Thereafter | 31,067,000 | ||||||
Total | 68,113,000 | ||||||
BBAM [Member] | Base and Rent Fees Under Agreements [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Expenses with related party | 12,700,000 | 15,200,000 | 14,400,000 | ||||
BBAM [Member] | Fixed Administrative Services Fees [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Expenses with related party | 1,900,000 | $ 2,100,000 | $ 2,100,000 | ||||
BBAM [Member] | Fixed Management Expenses [Member] | |||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||
2,017 | [1] | 6,304,000 | |||||
2,018 | [1] | 6,304,000 | |||||
2,019 | [1] | 6,304,000 | |||||
2,020 | [1] | 6,304,000 | |||||
2,021 | [1] | 6,304,000 | |||||
Thereafter | [1] | 28,369,000 | |||||
Total | [1] | $ 59,889,000 | |||||
BBAM [Member] | Disposition Fees [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Percentage of aggregate gross proceeds from disposition of aircraft | 1.50% | ||||||
BBAM [Member] | Fixed Base Fees [Member] | |||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||
2,017 | [1] | $ 240,000 | |||||
2,018 | [1] | 240,000 | |||||
2,019 | [1] | 240,000 | |||||
2,020 | [1] | 240,000 | |||||
2,021 | [1] | 240,000 | |||||
Thereafter | [1] | 1,440,000 | |||||
Total | [1] | 2,640,000 | |||||
BBAM [Member] | Fixed Administrative Services Fee Under Term Loan [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Monthly fee with related party | 10,000 | ||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||
2,017 | [2] | 418,000 | |||||
2,018 | [2] | 361,000 | |||||
2,019 | [2] | 288,000 | |||||
2,020 | [2] | 172,000 | |||||
2,021 | [2] | 142,000 | |||||
Thereafter | [2] | 164,000 | |||||
Total | [2] | 1,545,000 | |||||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Acquisition II Facility [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Monthly fee with related party | 10,000 | ||||||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Acquisition III Facility [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Monthly fee with related party | 10,000 | ||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||
2,017 | [2] | 168,000 | |||||
2,018 | [2] | 168,000 | |||||
2,019 | [2] | 168,000 | |||||
2,020 | [2] | 168,000 | |||||
2,021 | [2] | 155,000 | |||||
Thereafter | [2] | 165,000 | |||||
Total | [2] | $ 992,000 | |||||
BBAM [Member] | Servicing Fee for All Other Aircraft [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Percentage of aircraft rent collected | 3.50% | ||||||
BBAM [Member] | Fixed Administrative Agency Fee [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Monthly fee per aircraft with related party | $ 1,000 | ||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||
2,017 | [2] | 458,000 | |||||
2,018 | [2] | 406,000 | |||||
2,019 | [2] | 338,000 | |||||
2,020 | [2] | 322,000 | |||||
2,021 | [2] | 289,000 | |||||
Thereafter | [2] | 929,000 | |||||
Total | [2] | 2,742,000 | |||||
B&B Air Funding [Member] | BBAM [Member] | Fixed Administrative Services Fees [Member] | |||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||
2,017 | [1],[3] | 108,000 | |||||
2,018 | [1],[3] | 108,000 | |||||
2,019 | [1],[3] | 63,000 | |||||
2,020 | [1],[3] | 25,000 | |||||
2,021 | [1],[3] | 1,000 | |||||
Thereafter | [1],[3] | 0 | |||||
Total | [1],[3] | 305,000 | |||||
B&B Air Funding [Member] | BBAM [Member] | Fixed Base Fees [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Monthly fee with related party | $ 150,000 | ||||||
B&B Air Funding [Member] | BBAM [Member] | Rent Fee for Aircraft Financed by Securitization Notes [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Percentage of aircraft rent due | 1.00% | ||||||
Percentage of aircraft rent collected | 1.00% | ||||||
B&B Air Funding [Member] | BBAM [Member] | Rent Fee for Aircraft Financed by Securitization Notes [Member] | Subsequent Event [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Percentage of aircraft rent collected | 3.50% | ||||||
B&B Air Funding [Member] | BBAM [Member] | Fixed Administrative Agency Fee [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Charges from related party | $ 750,000 | ||||||
B&B Air Funding [Member] | BBAM [Member] | Fixed Administrative Agency Fee [Member] | Subsequent Event [Member] | |||||||
Related Party Transactions [Abstract] | |||||||
Monthly fee with related party | $ 20,000 | ||||||
Monthly fee per aircraft with related party | $ 1,000 | ||||||
[1] | Amounts in the table assume Consumer Price Index ("CPI") rates in effect as of December 31, 2016 remain constant in future periods. | ||||||
[2] | Assumes number of aircraft at December 31, 2016 remains the same for future periods. | ||||||
[3] | On February 1, 2017, B&B Air Funding amended its servicing agreement with respect to aircraft financed by the Securitization Notes thereby (i) amending the rent fee to 3.5% of the aggregate amount of rents actually collected, plus $1,000 per aircraft per month and (ii) eliminating the base fee of $150,000 per month, both effective as of January 1, 2017. In connection with this amendment, the administrative agency fee has also been reduced, through a rebate, to $20,000 per month, subject to an annual CPI adjustment. |
FAIR VALUE MEASUREMENTS, Carryi
FAIR VALUE MEASUREMENTS, Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
FAIR VALUE MEASUREMENTS [Abstract] | |||
Aircraft impairment | $ 96,122 | $ 66,093 | $ 1,200 |
Financial Instruments [Abstract] | |||
Derivative asset | 1,905 | 241 | |
Derivative liabilities | 13,281 | 19,327 | |
Carrying Amount [Member] | |||
Financial Instruments [Abstract] | |||
Derivative asset | 1,905 | 241 | |
Derivative liabilities | 13,281 | 19,327 | |
Carrying Amount [Member] | Securitization Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 139,741 | 295,786 | |
Carrying Amount [Member] | Nord LB Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 171,509 | 255,278 | |
Carrying Amount [Member] | CBA Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 56,146 | 88,190 | |
Carrying Amount [Member] | Term Loan [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 404,016 | 427,781 | |
Carrying Amount [Member] | Fly Acquisition III Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 113,045 | 0 | |
Carrying Amount [Member] | Other Aircraft Secured Borrowings [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 980,967 | 663,069 | |
Carrying Amount [Member] | 2020 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 375,000 | 375,000 | |
Carrying Amount [Member] | 2021 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 325,000 | 325,000 | |
Fair Value [Member] | |||
Financial Instruments [Abstract] | |||
Derivative asset | 1,905 | 241 | |
Derivative liabilities | 13,281 | 19,327 | |
Fair Value [Member] | Securitization Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 134,850 | 252,897 | |
Fair Value [Member] | Nord LB Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 171,509 | 251,849 | |
Fair Value [Member] | CBA Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 56,146 | 87,070 | |
Fair Value [Member] | Term Loan [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 406,804 | 421,921 | |
Fair Value [Member] | Fly Acquisition III Facility [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 113,045 | 0 | |
Fair Value [Member] | Other Aircraft Secured Borrowings [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 980,967 | 653,992 | |
Fair Value [Member] | 2020 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | 394,219 | 375,000 | |
Fair Value [Member] | 2021 Notes [Member] | |||
Financial Instruments [Abstract] | |||
Debt | $ 340,438 | $ 333,125 |
FAIR VALUE MEASUREMENTS, Asset
FAIR VALUE MEASUREMENTS, Asset and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Assets and Liabilities [Abstract] | ||
Derivative asset | $ 1,905 | $ 241 |
Derivative liabilities | 13,281 | 19,327 |
Level 1 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative asset | 1,905 | 241 |
Derivative liabilities | 13,281 | 19,327 |
Level 3 [Member] | ||
Derivative Assets and Liabilities [Abstract] | ||
Derivative asset | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
UNAUDITED QUARTERLY CONDENSED85
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |||||||||||
Total revenues | $ 100,600 | $ 85,297 | $ 77,934 | $ 81,208 | $ 123,634 | $ 112,655 | $ 102,822 | $ 123,286 | $ 345,039 | $ 462,397 | $ 425,548 |
Net income (loss) | $ (63,831) | $ 22,942 | $ 4,677 | $ 7,100 | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ (29,112) | $ 22,798 | $ 60,184 |
Earnings (loss) per share - Basic (in dollars per shares) | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ (0.88) | $ 0.52 | $ 1.42 |
Earnings (loss) per share - Diluted (in dollars per shares) | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ (0.88) | $ 0.52 | $ 1.42 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - BBAM [Member] - USD ($) | Feb. 01, 2017 | Dec. 31, 2016 |
Fixed Administrative Agency Fee [Member] | ||
Related Party Transactions [Abstract] | ||
Monthly fee per aircraft with related party | $ 1,000 | |
B&B Air Funding [Member] | Rent Fee for Aircraft Financed by Securitization Notes [Member] | ||
Related Party Transactions [Abstract] | ||
Percentage of aircraft rent collected | 1.00% | |
B&B Air Funding [Member] | Fixed Base Fees [Member] | ||
Related Party Transactions [Abstract] | ||
Monthly fee with related party | $ 150,000 | |
Subsequent Event [Member] | B&B Air Funding [Member] | Rent Fee for Aircraft Financed by Securitization Notes [Member] | ||
Related Party Transactions [Abstract] | ||
Percentage of aircraft rent collected | 3.50% | |
Subsequent Event [Member] | B&B Air Funding [Member] | Fixed Administrative Agency Fee [Member] | ||
Related Party Transactions [Abstract] | ||
Monthly fee per aircraft with related party | $ 1,000 | |
Monthly fee with related party | $ 20,000 |
Schedule I - Condensed Financ87
Schedule I - Condensed Financial Information of Parent, Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets [Abstract] | ||||
Cash and cash equivalents | $ 517,964 | $ 275,998 | $ 337,560 | $ 404,472 |
Investment in unconsolidated subsidiary | 7,700 | 7,170 | ||
Other assets, net | 6,568 | 6,450 | ||
Total assets | 3,447,009 | 3,424,480 | ||
Liabilities [Abstract] | ||||
Payable to related parties | 5,042 | 7,170 | ||
Unsecured borrowings, net | 691,390 | 689,409 | ||
Deferred tax liability, net | 19,847 | 28,246 | ||
Total liabilities | 2,853,774 | 2,767,516 | ||
Shareholders' equity | 593,235 | 656,964 | 756,254 | 742,096 |
Total liabilities and shareholders' equity | 3,447,009 | 3,424,480 | ||
Fly Leasing Limited [Member] | ||||
Assets [Abstract] | ||||
Cash and cash equivalents | 229,777 | 139,339 | $ 218,538 | $ 277,267 |
Notes receivable from subsidiaries | 441,451 | 735,835 | ||
Investments in subsidiaries | 912,163 | 778,080 | ||
Investment in unconsolidated subsidiary | 7,700 | 7,170 | ||
Other assets, net | 534 | 2,712 | ||
Total assets | 1,591,625 | 1,663,136 | ||
Liabilities [Abstract] | ||||
Payable to related parties | 906 | 50 | ||
Payable to subsidiaries | 280,034 | 289,961 | ||
Unsecured borrowings, net | 691,390 | 691,109 | ||
Deferred tax liability, net | 1,946 | 13,675 | ||
Accrued and other liabilities | 24,114 | 11,377 | ||
Total liabilities | 998,390 | 1,006,172 | ||
Shareholders' equity | 593,235 | 656,964 | ||
Total liabilities and shareholders' equity | $ 1,591,625 | $ 1,663,136 |
Schedule I - Condensed Financ88
Schedule I - Condensed Financial Information of Parent, Condensed Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues [Abstract] | |||||||||||
Equity in earnings from unconsolidated subsidiary | $ 530 | $ 1,159 | $ 3,562 | ||||||||
Interest and other income | 1,666 | 2,289 | 662 | ||||||||
Total revenues | $ 100,600 | $ 85,297 | $ 77,934 | $ 81,208 | $ 123,634 | $ 112,655 | $ 102,822 | $ 123,286 | 345,039 | 462,397 | 425,548 |
Expense [Abstract] | |||||||||||
Interest expense | 123,161 | 145,448 | 142,519 | ||||||||
Selling, general and administrative | 30,077 | 33,674 | 41,033 | ||||||||
Total expenses | 381,428 | 434,200 | 356,673 | ||||||||
Net income (loss) before provision for income taxes | (36,389) | 28,197 | 68,875 | ||||||||
Income tax benefit | (7,277) | 5,399 | 8,691 | ||||||||
Net income (loss) | $ (63,831) | $ 22,942 | $ 4,677 | $ 7,100 | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ (29,112) | $ 22,798 | $ 60,184 |
Weighted average number of shares [Abstract] | |||||||||||
Basic (in shares) | 33,239,001 | 41,222,690 | 41,405,211 | ||||||||
Diluted (in shares) | 33,239,001 | 41,315,149 | 41,527,584 | ||||||||
Earnings (loss) per share [Abstract] | |||||||||||
Basic (in dollars per shares) | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ (0.88) | $ 0.52 | $ 1.42 |
Diluted (in dollars per shares) | $ (1.98) | $ 0.70 | $ 0.14 | $ 0.21 | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ (0.88) | $ 0.52 | $ 1.42 |
Fly Leasing Limited [Member] | |||||||||||
Revenues [Abstract] | |||||||||||
Equity in earnings (loss) of subsidiaries | $ (24,385) | $ 17,065 | $ 59,447 | ||||||||
Equity in earnings from unconsolidated subsidiary | 530 | 1,159 | 3,562 | ||||||||
Intercompany management fee income | 8,866 | 15,053 | 16,921 | ||||||||
Intercompany interest income | 44,394 | 48,077 | 22,394 | ||||||||
Interest and other income | 410 | 224 | 215 | ||||||||
Total revenues | 29,815 | 81,578 | 102,539 | ||||||||
Expense [Abstract] | |||||||||||
Interest expense | 48,013 | 48,013 | 28,089 | ||||||||
Selling, general and administrative | 11,803 | 12,987 | 15,520 | ||||||||
Total expenses | 59,816 | 61,000 | 43,609 | ||||||||
Net income (loss) before provision for income taxes | (30,001) | 20,578 | 58,930 | ||||||||
Income tax benefit | (889) | (2,220) | (1,254) | ||||||||
Net income (loss) | $ (29,112) | $ 22,798 | $ 60,184 | ||||||||
Weighted average number of shares [Abstract] | |||||||||||
Basic (in shares) | 33,239,001 | 41,222,690 | 41,405,211 | ||||||||
Diluted (in shares) | 33,239,001 | 41,315,149 | 41,527,584 | ||||||||
Earnings (loss) per share [Abstract] | |||||||||||
Basic (in dollars per shares) | $ (0.88) | $ 0.52 | $ 1.42 | ||||||||
Diluted (in dollars per shares) | $ (0.88) | $ 0.52 | $ 1.42 |
Schedule I - Condensed Financ89
Schedule I - Condensed Financial Information of Parent, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net income (loss) | $ (63,831) | $ 22,942 | $ 4,677 | $ 7,100 | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ (29,112) | $ 22,798 | $ 60,184 |
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | |||||||||||
Equity in earnings from unconsolidated subsidiary | (530) | (1,159) | (3,562) | ||||||||
Deferred income taxes | (9,197) | 4,919 | 8,431 | ||||||||
Share-based compensation | 0 | 195 | 30 | ||||||||
Distributions from unconsolidated subsidiary | 0 | 0 | 5,501 | ||||||||
Changes in operating assets and liabilities [Abstract] | |||||||||||
Other assets | (1,134) | 137 | (1,589) | ||||||||
Payable to related parties | (17,163) | (19,407) | (12,848) | ||||||||
Net cash flows (used in) provided by operating activities | 149,611 | 214,923 | 227,165 | ||||||||
Cash Flows from Investing Activities [Abstract] | |||||||||||
Net cash flows provided by (used in) investing activities | (123,271) | 480,537 | (840,559) | ||||||||
Cash Flows from Financing Activities [Abstract] | |||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 0 | 396,563 | ||||||||
Debt issuance costs | (2,552) | (933) | (1,803) | ||||||||
Shares repurchased | (40,257) | (81,432) | 0 | ||||||||
Dividends paid | 0 | (41,388) | (41,392) | ||||||||
Dividend equivalents | 0 | (1,054) | (1,426) | ||||||||
Net cash flows provided by (used in) financing activities | 215,728 | (756,598) | 546,482 | ||||||||
Net increase (decrease) in cash and cash equivalents | 241,966 | (61,562) | (66,912) | ||||||||
Cash and cash equivalents at beginning of year | 275,998 | 337,560 | 275,998 | 337,560 | 404,472 | ||||||
Cash and cash equivalents at end of year | 517,964 | 275,998 | 517,964 | 275,998 | 337,560 | ||||||
Cash paid during the year for [Abstract] | |||||||||||
Interest | 110,351 | 132,780 | 119,745 | ||||||||
Taxes | 460 | 384 | 188 | ||||||||
Fly Leasing Limited [Member] | |||||||||||
Cash Flows from Operating Activities [Abstract] | |||||||||||
Net income (loss) | (29,112) | 22,798 | 60,184 | ||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | |||||||||||
Equity in earnings of subsidiaries | 24,385 | (17,065) | (59,447) | ||||||||
Equity in earnings from unconsolidated subsidiary | (530) | (1,159) | (3,562) | ||||||||
Deferred income taxes | (12,139) | (2,276) | (2,004) | ||||||||
Share-based compensation | 0 | 195 | 30 | ||||||||
Amortization of debt discount and others | 1,982 | 1,982 | 1,537 | ||||||||
Distributions from unconsolidated subsidiary | 0 | 0 | 5,501 | ||||||||
Changes in operating assets and liabilities [Abstract] | |||||||||||
Receivable from subsidiaries | (162,229) | 132,843 | 117,806 | ||||||||
Other assets | 476 | 1,060 | (1,672) | ||||||||
Payable to related parties | 856 | (867) | (48) | ||||||||
Accrued and other liabilities | 12,622 | 483 | 7,211 | ||||||||
Net cash flows (used in) provided by operating activities | (163,689) | 137,994 | 125,536 | ||||||||
Cash Flows from Investing Activities [Abstract] | |||||||||||
Capital contributions to subsidiaries | 0 | 0 | (5,058) | ||||||||
Distributions received from subsidiaries | 0 | 53,500 | 1,925 | ||||||||
Capital contributions to unconsolidated subsidiary | 0 | (2,009) | 0 | ||||||||
Distributions received from unconsolidated subsidiary | 0 | 0 | 1,132 | ||||||||
Notes receivable from subsidiaries | (40,172) | (650,083) | (628,994) | ||||||||
Notes payable to subsidiaries | 334,556 | 505,273 | 94,101 | ||||||||
Net cash flows provided by (used in) investing activities | 294,384 | (93,319) | (536,894) | ||||||||
Cash Flows from Financing Activities [Abstract] | |||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 0 | 396,563 | ||||||||
Debt issuance costs | 0 | 0 | (1,116) | ||||||||
Shares repurchased | (40,257) | (81,432) | 0 | ||||||||
Dividends paid | 0 | (41,388) | (41,392) | ||||||||
Dividend equivalents | 0 | (1,054) | (1,426) | ||||||||
Net cash flows provided by (used in) financing activities | (40,257) | (123,874) | 352,629 | ||||||||
Net increase (decrease) in cash and cash equivalents | 90,438 | (79,199) | (58,729) | ||||||||
Cash and cash equivalents at beginning of year | $ 139,339 | $ 218,538 | 139,339 | 218,538 | 277,267 | ||||||
Cash and cash equivalents at end of year | $ 229,777 | $ 139,339 | 229,777 | 139,339 | 218,538 | ||||||
Cash paid during the year for [Abstract] | |||||||||||
Interest | 46,032 | 46,723 | 21,488 | ||||||||
Taxes | 0 | 0 | 0 | ||||||||
Noncash investing activities [Abstract] | |||||||||||
Capital contribution to subsidiaries | 207,340 | 17,246 | 0 | ||||||||
Distributions paid to subsidiaries | $ 55,039 | $ 711 | $ 0 |