Air Lease (AL) 10-Q 8 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 07, 2018
Document and Entity Information
Entity Registrant Name	AIR LEASE CORP
Entity Central Index Key	1,487,712
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		104,069,215
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 228,502	$ 292,204
Restricted cash	20,417	16,078
Flight equipment subject to operating leases	17,309,576	15,100,040
Less accumulated depreciation	(2,161,154)	(1,819,790)
Flight equipment subject to operating leases, net	15,148,422	13,280,250
Deposits on flight equipment purchases	1,573,729	1,562,776
Other assets	596,233	462,856
Total assets	17,567,303	15,614,164
Liabilities and Shareholders' Equity
Accrued interest and other payables	310,240	309,182
Debt financing, net of discounts and issuance costs	11,094,337	9,698,785
Security deposits and maintenance reserves on flight equipment leases	962,904	856,140
Rentals received in advance	109,156	104,820
Deferred tax liability	611,748	517,795
Total liabilities	13,088,385	11,486,722
Shareholders' Equity
Preferred stock, $0.01 par value; 50,000,000 shares authorized; no shares issued or outstanding
Paid-in capital	2,270,302	2,260,064
Retained earnings	2,207,575	1,866,342
Total shareholders' equity	4,478,918	4,127,442
Total liabilities and shareholders' equity	17,567,303	15,614,164
Class A Common Stock
Shareholders' Equity
Common Stock	1,041	1,036
Total shareholders' equity	1,041	1,036
Class B Non-Voting Common Stock
Shareholders' Equity
Common Stock

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, shares authorized	50,000,000	50,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Class A Common Stock
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, authorized shares	500,000,000	500,000,000
Common Stock, issued shares	104,068,079	103,621,629
Common Stock, outstanding shares	104,068,079	103,621,629
Class B Non-Voting Common Stock
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, authorized shares	10,000,000	10,000,000
Common Stock, issued shares	0	0
Common Stock, outstanding shares	0	0

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Rental of flight equipment	$ 422,763	$ 359,487	$ 1,194,104	$ 1,072,254
Revenues	450,698	376,765	1,229,721	1,117,909
Expenses
Interest	82,189	63,514	224,584	193,591
Amortization of debt discounts and issuance costs	8,199	6,959	24,231	22,388
Interest expense	90,388	70,473	248,815	215,979
Depreciation of flight equipment	149,703	127,553	428,437	377,952
Selling, general and administrative	26,377	19,262	71,194	65,677
Stock-based compensation	4,848	5,358	13,165	14,435
Total expenses	271,316	222,646	761,611	674,043
Income before taxes	179,382	154,119	468,110	443,866
Income tax expense	(32,808)	(54,931)	(95,674)	(158,816)
Net income	$ 146,574	$ 99,188	$ 372,436	$ 285,050
Net income per share of Class A and Class B common stock:
Basic (in dollars per share)	$ 1.41	$ 0.96	$ 3.58	$ 2.76
Diluted (in dollars per share)	$ 1.32	$ 0.90	$ 3.36	$ 2.59
Weighted-average shares outstanding
Basic (in shares)	104,066,785	103,221,692	103,940,723	103,117,695
Diluted (in shares)	112,509,612	111,709,545	112,377,870	111,558,125
Dividends declared per share of Class A common stock	$ 0.10	$ 0.075	$ 0.30	$ 0.225
Aircraft sales, trading and other
Revenues
Revenues	$ 27,935	$ 17,278	$ 35,617	$ 45,655

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - 9 months ended Sep. 30, 2018 - USD ($) $ in Thousands	Class A Common Stock	Paid-in Capital	Retained Earnings	Total
Balance at Dec. 31, 2017	$ 1,036	$ 2,260,064	$ 1,866,342	$ 4,127,442
Balance (in shares) at Dec. 31, 2017	103,621,629
Increase (Decrease) in Shareholders' Equity
Issuance of common stock upon vesting of restricted stock units and upon exercise of options	$ 6	4,214		4,220
Issuance of common stock upon vesting of restricted stock units and upon exercise of options (in shares)	603,018
Stock-based compensation		13,165		13,165
Cash dividends (declared $0.30 per share)			(31,203)	(31,203)
Tax withholding related to vesting of restricted stock units and exercise of stock options	$ (1)	(7,141)		(7,142)
Tax withholding related to vesting of restricted stock units and exercise of stock options (in shares)	(156,568)
Net income			372,436	372,436
Balance at Sep. 30, 2018	$ 1,041	$ 2,270,302	$ 2,207,575	$ 4,478,918
Balance (in shares) at Sep. 30, 2018	104,068,079

CONSOLIDATED STATEMENT OF SHARE

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Cash dividends declared per share (in dollars per share)	$ 0.10	$ 0.075	$ 0.30	$ 0.225

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Operating Activities
Net income	$ 372,436	$ 285,050
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation of flight equipment	428,437	377,952
Stock-based compensation	13,165	14,435
Deferred taxes	95,674	158,816
Amortization of debt discounts and issuance costs	24,231	22,388
Amortization of prepaid lease costs	18,713	14,303
Gain on aircraft sales, trading and other activity	(24,469)	(37,591)
Changes in operating assets and liabilities:
Other assets	(62,528)	(81,006)
Accrued interest and other payables	110	(5,768)
Rentals received in advance	4,335	3,057
Net cash provided by operating activities	870,104	751,636
Investing Activities
Acquisition of flight equipment under operating lease	(1,874,094)	(1,304,317)
Payments for deposits on flight equipment purchases	(548,225)	(565,343)
Proceeds from aircraft sales, trading and other activity	239,067	595,796
Acquisition of aircraft furnishings, equipment and other assets	(204,449)	(134,709)
Net cash used in investing activities	(2,387,701)	(1,408,573)
Financing Activities
Issuance of common stock upon exercise of options and warrants	4,188	2,214
Cash dividends paid	(31,155)	(23,191)
Tax withholdings on stock-based compensation	(7,141)	(5,600)
Net change in unsecured revolving facility	(847,000)	670,000
Proceeds from debt financings	3,358,885	1,101,673
Payments in reduction of debt financings	(1,131,206)	(1,266,440)
Debt issuance costs	(9,327)	(4,164)
Security deposits and maintenance reserve receipts	173,754	173,879
Security deposits and maintenance reserve disbursements	(52,764)	(36,806)
Net cash provided by financing activities	1,458,234	611,565
Net decrease in cash	(59,363)	(45,372)
Cash, cash equivalents and restricted cash at beginning of period	308,282	290,802
Cash, cash equivalents and restricted cash at end of period	248,919	245,430
Supplemental Disclosure of Cash Flow Information
Cash paid during the period for interest, including capitalized interest of $38,947 and $33,618 at September 30, 2018 and 2017, respectively	278,297	252,806
Supplemental Disclosure of Noncash Activities
Buyer furnished equipment, capitalized interest, deposits on flight equipment purchases and seller financing applied to acquisition of flight equipment and other assets applied to payments for deposits on flight equipment purchases	663,223	398,024
Cash dividends declared, not yet paid	$ 10,407	$ 7,742

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Supplemental Disclosure of Cash Flow Information
Cash paid for interest, capitalized interest	$ 38,947	$ 33,618

Company Background and Overview

Company Background and Overview	9 Months Ended
	Sep. 30, 2018
Company Background and Overview
Company Background and Overview	Note 1. Company Background and Overview Air Lease Corporation (the “Company”, “ALC”, “we”, “our” or “us”) is a leading aircraft leasing company that was founded by aircraft leasing industry pioneer, Steven F. Udvar-Házy. We are principally engaged in purchasing new commercial jet transport aircraft directly from aircraft manufacturers, such as The Boeing Company (“Boeing”) and Airbus S.A.S. (“Airbus”), and leasing those aircraft to airlines throughout the world with the intention to generate attractive returns on equity. In addition to our leasing activities, we sell aircraft from our operating lease portfolio to third parties, including other leasing companies, financial services companies and airlines and through our asset-backed securities platform. We also provide fleet management services to investors and owners of aircraft portfolios for a management fee. As of September 30, 2018, we owned a fleet of 268 aircraft, managed 60 aircraft and had 384 aircraft on order with aircraft manufacturers.

Basis of Preparation and Critic

Basis of Preparation and Critical Accounting Policies	9 Months Ended
	Sep. 30, 2018
Basis of Preparation and Critical Accounting Policies
Basis of Preparation and Critical Accounting Policies	Note 2. Basis of Preparation and Critical Accounting Policies The Company consolidates financial statements of all entities in which we have a controlling financial interest, including the accounts of any Variable Interest Entity in which we have a controlling financial interest and for which we are the primary beneficiary. All material intercompany balances are eliminated in consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying unaudited consolidated financial statements include all adjustments, including only normal, recurring adjustments, which are in the opinion of management, necessary to present fairly the Company’s financial position, results of operations and cash flows at September 30, 2018, and for all periods presented. The results of operations for the three and nine months ended September 30, 2018 are not necessarily indicative of the operating results expected for the year ending December 31, 2018. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2017. Maintenance Rights For the nine months ended September 30, 2018, the Company purchased nine aircraft in the secondary market, two of which were subject to existing leases. The total cost for the two aircraft was $73.3 million, which included maintenance right assets of $13.2 million. The Company did not purchase any aircraft in the secondary market subject to existing leases for the year ended December 31, 2017. As of September 30, 2018 and December 31, 2017, the Company had maintenance right assets, net of accumulated amortization of $49.7 million and $44.6 million, respectively. Maintenance right assets are included under flight equipment subject to operating lease in our Consolidated Balance Sheets. Cash, cash equivalents and restricted cash The Company considers cash and cash equivalents to be cash on hand and highly liquid investments with original maturity dates of 90 days or less. Restricted cash consists of pledged security deposits, maintenance reserves, and rental payments related to secured aircraft financing arrangements. The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows (in thousands): September 30, 2018 September 30, 2017 (unaudited) Cash and cash equivalents $ 228,502 $ 226,019 Restricted cash 20,417 19,411 Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows $ 248,919 $ 245,430 Reclassifications Certain reclassifications have been made in the 2017 consolidated financial statements to conform to the classifications in 2018. Recently adopted accounting standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606).” The amendments in ASU 2014-09 supersede current revenue recognition requirements. The guidance specifically notes that lease contracts are a scope exception. ASU 2014-09 requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Further, the guidance requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Effective January 1, 2018, the Company adopted ASU 2014-09 using the modified retrospective approach. Adopting this standard did not have a material impact to our consolidated financial statements and related disclosures. As the standard did not apply to lease contracts within the scope of FASB Accounting Standard Codification (“ASC”) 840 Leases, we evaluated the recognition of gains on sale of flight equipment under the scope of the new standard. Under ASU 2014-09, a performance obligation is satisfied and the related revenue recognized when control of the underlying goods or services related to the performance obligation is transferred to the customer. Our performance obligation associated with the sale of flight equipment is satisfied upon delivery of the flight equipment to a customer, which is the point in time where control of the underlying flight equipment has transferred to the buyer. At the time flight equipment is retired or sold, the cost and accumulated depreciation are removed from the related accounts and the difference, net of transaction price, is recorded as a gain or loss. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. In August 2016, the FASB issued ASU No. 2016-15 (“ASU 2016-15”), “Statement of Cash Flows (Topic 230).” The amendments in ASU 2016-15 address eight classification issues related to the statement of cash flows. The Company adopted ASU 2016-15 using the retrospective transition method. The adoption of this standard did not have an impact on the current period or prior period consolidated financial statements. In November 2016, FASB issued ASU No. 2016-18 (“ASU 2016-18”), “Statement of Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires entities to present the aggregate changes in cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. In addition, when cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, ASU 2016-18 requires a reconciliation of the totals in the statement of cash flows to the related captions on the balance sheet. The Company adopted ASU 2016-18 retrospectively as of January 1, 2018. The adoption of this standard did not have a material impact on the current period or prior period consolidated financial statements.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2018
Recently Issued Accounting Standards
Recently Issued Accounting Standards	Note 3. In February 2016, FASB issued ASU No. 2016-02 (“ASU 2016-02”), Leases (Topic 842). The amendments in ASU 2016-02 set out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, which provides narrow amendments to clarify how to apply certain aspects of the new lease standard. In addition, in August 2018, the FASB issued ASU 2018-11, Targeted Improvements to ASC 842, which includes an option to apply the new lease standard at the adoption date (which will be January 1, 2019 for us) and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption rather than restate comparative periods in transition. The standards will be effective for annual reporting periods beginning after December 15, 2018 for public entities and is required to be applied using the modified retrospective transition approach. Early adoption was permitted. Based on our initial evaluation of the guidance, we noted that Lessor accounting is similar to the current model but the guidance will impact us in scenarios where we are the Lessee. We do not expect the impact of this standard to have a material impact on our consolidated financial statements. We will adopt the standard on January 1, 2019.

Debt Financing

Debt Financing	9 Months Ended
	Sep. 30, 2018
Debt Financing
Debt Financing	Note 4. Debt Financing The Company's debt financing was comprised of the following at September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, December 31, 2018 2017 Unsecured Senior notes $ 9,968,445 $ 8,019,871 Term financings 616,230 203,704 Convertible senior notes 199,950 199,983 Revolving credit facility — 847,000 Total unsecured debt financing 10,784,625 9,270,558 Secured Term financings 399,722 484,036 Export credit financing 39,929 44,920 Total secured debt financing 439,651 528,956 Total debt financing 11,224,276 9,799,514 Less: Debt discounts and issuance costs (129,939) (100,729) Debt financing, net of discounts and issuance costs $ 11,094,337 $ 9,698,785 The Company’s secured obligations as of September 30, 2018 and December 31, 2017 are summarized below (dollars in thousands): September 30, December 31, 2018 2017 Nonrecourse $ 177,054 $ 205,906 Recourse 262,597 323,050 Total secured debt financing $ 439,651 $ 528,956 Number of aircraft pledged as collateral 20 21 Net book value of aircraft pledged as collateral $ 1,144,935 $ 1,184,264 Senior unsecured notes As of September 30, 2018, the Company had $10.0 billion in senior unsecured notes outstanding. As of December 31, 2017, the Company had $8.0 billion in senior unsecured notes outstanding. During the nine months ended September 30, 2018, we issued $2.95 billion in aggregate principal amount of senior unsecured notes with maturity dates ranging between 2021 and 2028 and bearing interest at fixed rates ranging from 2.500% to 4.625%. In September 2018, the Company issued $1.2 billion in aggregate principal amount of senior unsecured notes including (i) $700.0 million due 2022 that bear interest at a rate of 3.500% and (ii) $500.0 million due 2028 at a rate of 4.625%. In June 2018, the Company issued $500.0 million in aggregate principal amount of senior unsecured notes due 2023 that bear interest at a rate of 3.875%. In January 2018, the Company issued $1.25 billion in aggregate principal amount of unsecured notes including (i) $550.0 million due 2021 that bear interest at a rate of 2.500% and (ii) $700.0 million due 2025 that bear interest at a rate of 3.250%. Unsecured term loan financing As of September 30, 2018, the outstanding balance on our unsecured term loan facilities was $616.2 million. As of December 31, 2017, the outstanding balance on our unsecured term loan facilities was $203.7 million. In September 2018, the Company entered into a $438.0 million unsecured term loan facility with a term of four years. The term loan bears interest at a floating rate based on LIBOR or ABR plus an applicable margin that varies based on the Company’s credit rating. As of September 30, 2018, the interest rate was LIBOR plus 1.125%. In October 2018, the Company executed a commitment increase to this unsecured term loan facility, which increased the aggregate facility capacity by an additional $50.0 million. Unsecured revolving credit facility In May 2018, the Company amended and extended its unsecured revolving credit facility whereby, among other things, the Company extended the final maturity date from May 5, 2021 to May 5, 2022 and increased the total revolving commitments to approximately $4.5 billion from approximately $4.1 billion with an interest rate of LIBOR plus 1.05% with a 0.20% facility fee. On October 23, 2018, the Company executed a commitment increase to its unsecured revolving credit facility, which increased the aggregate facility capacity by an additional $50.0 million. As of October 23, 2018, lenders held revolving commitments totaling approximately $4.1 billion that mature on May 5, 2022, commitments totaling $20.0 million that mature on May 5, 2021, commitments totaling approximately $217.7 million that mature on May 5, 2020, and commitments totaling $275.0 million that mature on May 5, 2019. As of September 30, 2018, our unsecured revolving credit facility did not have an outstanding balance. The total amount outstanding under our unsecured revolving credit facility was approximately $847.0 million as of December 31, 2017. Maturities Maturities of debt outstanding as of September 30, 2018 are as follows (in thousands): Years ending December 31, 2018 $ 240,239 2019 1,145,826 2020 1,187,233 2021 1,680,927 2022 2,369,384 Thereafter 4,600,667 Total $ 11,224,276

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies
Commitments and Contingencies	Note 5. Commitments and Contingencies As of September 30, 2018, the Company had commitments to acquire a total of 384 new aircraft for delivery through 2024 as follows: Aircraft Type 2018 2019 2020 2021 2022 Thereafter Total Airbus A321-200 2 — — — — — 2 Airbus A320/321neo (1) 4 38 27 22 25 25 141 Airbus A330-900neo 2 8 4 7 6 2 29 Airbus A350-900/1000 — 4 2 5 3 — 14 Boeing 737-7/8/9 MAX 3 28 29 35 34 28 157 Boeing 787-9/10 2 12 10 8 9 — 41 Total 13 90 72 77 77 55 384 (1) Our Airbus A320/321neo aircraft orders include 55 long-range variants. In addition to the Company's commitments, as of September 30, 2018, the Company had options to acquire up to five Airbus A350-1000 aircraft and 45 Boeing 737-8 MAX aircraft. Deliveries of these aircraft are scheduled to commence in 2023 and continue through 2024. Airbus has informed us to expect several month delivery delays relating to certain aircraft scheduled for delivery in 2018 and 2019. The delays have been reflected in our commitment schedules above; however, we anticipate additional delivery delays not currently reflected in the schedules above. Our leases contain lessee cancellation clauses related to aircraft delivery delays, typically for aircraft delays greater than one year. Our purchase agreements contain similar clauses. As of September 30, 2018, only one of our lease contracts was subject to cancellation related to these aircraft delivery delays; however, at this time, we do not anticipate that our lease contract or purchase agreement will be canceled. Commitments for the acquisition of aircraft and other equipment, calculated at an estimated aggregate purchase price (including adjustments for inflation) was approximately $27.1 billion at September 30, 2018, and are due as follows (in thousands): Years ending December 31, 2018 $ 1,327,140 2019 6,559,513 2020 5,503,786 2021 5,765,900 2022 5,207,315 Thereafter 2,721,097 Total $ 27,084,751 We have made non-refundable deposits on the aircraft for which we have commitments to purchase of $1.6 billion as of September 30, 2018 and December 31, 2017, which are subject to manufacturer performance commitments. If we are unable to satisfy our purchase commitments, we may be forced to forfeit our deposits. Further, we would be exposed to breach of contract claims by our lessees and manufacturers.

Net Earnings Per Share

Net Earnings Per Share	9 Months Ended
	Sep. 30, 2018
Net Earnings Per Share
Net Earnings Per Share	Note 6. Net Earnings Per Share Basic net earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B Non-Voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of September 30, 2018, we did not have any Class B Non-Voting common stock outstanding. Diluted net earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. For the three and nine months ended September 30, 2018, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 950,761 and 1,085,559 shares related to restricted stock units for which the performance metric had yet to be achieved as of September 30, 2018 and 2017, respectively. The following table sets forth the reconciliation of basic and diluted net income per share (in thousands, except share and per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic net income per share: Numerator Net income $ 146,574 $ 99,188 $ 372,436 $ 285,050 Denominator Weighted-average common shares outstanding 104,066,785 103,221,692 103,940,723 103,117,695 Basic net income per share $ 1.41 $ 0.96 $ 3.58 $ 2.76 Diluted net income per share: Numerator Net income $ 146,574 $ 99,188 $ 372,436 $ 285,050 Assumed conversion of convertible senior notes 1,823 1,426 5,309 4,263 Net income plus assumed conversions $ 148,397 $ 100,614 $ 377,745 $ 289,313 Denominator Number of shares used in basic computation 104,066,785 103,221,692 103,940,723 103,117,695 Weighted-average effect of dilutive securities 8,442,827 8,487,853 8,437,147 8,440,430 Number of shares used in per share computation 112,509,612 111,709,545 112,377,870 111,558,125 Diluted net income per share $ 1.32 $ 0.90 $ 3.36 $ 2.59

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2018
Fair Value Measurements
Fair Value Measurements	Note 7. Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring and Non-recurring Basis The Company had no assets or liabilities which are measured at fair value on a recurring or non-recurring basis as of September 30, 2018 or December 31, 2017. Financial Instruments Not Measured at Fair Value The fair value of debt financing is estimated based on the quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities, which would be categorized as a Level 2 measurement in the fair value hierarchy. The estimated fair value of debt financing as of September 30, 2018 was approximately $11.1 billion compared to a book value of $11.2 billion. The estimated fair value of debt financing as of December 31, 2017 was $10.0 billion compared to a book value of $9.8 billion. The following financial instruments are not measured at fair value on the Company’s consolidated balance sheet at September 30, 2018, but require disclosure of their fair values: cash and cash equivalents and restricted cash. The estimated fair value of such instruments at September 30, 2018 and December 31, 2017 approximates their carrying value as reported on the consolidated balance sheet. The fair value of all these instruments would be categorized as Level 1 in the fair value hierarchy.

Stock-based Compensation

Stock-based Compensation	9 Months Ended
	Sep. 30, 2018
Stock-based Compensation
Stock-based Compensation	Note 8. Stock-based Compensation On May 7, 2014, the stockholders of the Company approved the Air Lease Corporation 2014 Equity Incentive Plan (the “2014 Plan”). Upon approval of the 2014 Plan, no new awards may be granted under the Amended and Restated 2010 Equity Incentive Plan (the “2010 Plan”). As of September 30, 2018, the number of stock options (“Stock Options”) and restricted stock units (“RSUs”) remaining under the 2014 Plan is approximately 5,609,437, which includes 609,437 shares which were previously reserved for issuance under the 2010 Plan. Stock Options are generally granted for a term of 10 years and generally vest ratably over a three year period. The Company has issued RSUs with four different vesting criteria: those RSUs that vest based on the attainment of book value goals, those RSUs that vest based on the attainment of Total Shareholder Return (“TSR”) goals, time based RSUs that vest ratably over a time period of three years and RSUs that cliff-vest at the end of a one or two year period. The Company has two types of book value RSUs; those that vest ratably over a three year period if the performance condition has been met, and those that cliff-vest at the end of a three-year period if the performance condition has been met. For the book value RSUs that vest at the end of a three-year period, the number of shares that will ultimately vest will range from 0% to 200% of the RSUs initially granted depending on the percentage change in the Company's book value per share at the end of the vesting period. At each reporting period, the Company reassesses the probability of the performance condition being achieved and a stock-based compensation expense is recognized based upon management’s assessment. Book value RSUs for which the performance metric has not been met are forfeited. The TSR RSUs cliff-vest at the end of a three-year period. The number of TSR RSUs that will ultimately vest is based upon the percentile ranking of the Company’s TSR among a peer group. The number of shares that will ultimately vest will range from 0% to 200% of the RSUs initially granted depending on the extent to which the TSR metric is achieved. The Company recorded $4.8 million and $5.4 million of stock-based compensation expense related to RSUs for the three months ended September 30, 2018 and 2017, respectively. The Company recorded $13.2 million and $14.4 million of stock-based compensation expense related to RSUs for the nine months ended September 30, 2018 and 2017, respectively. Stock Options A summary of stock option activity for the nine months ended September 30, 2018 follows: Remaining Aggregate Exercise Contractual Term Intrinsic Value Shares Price (in years) (in thousands) (1) Balance at December 31, 2017 2,858,158 $ 20.37 2.49 $ 79,230 Granted — $ — — $ — Exercised (209,363) $ 20.00 — $ 4,977 Forfeited/canceled — $ — — $ — Balance at September 30, 2018 2,648,795 $ 20.40 1.74 $ 67,495 Vested and exercisable as of September 30, 2018 2,648,795 $ 20.40 1.74 $ 67,495 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of our Class A common stock as of the respective date. As of September 30, 2018, all of the Company’s outstanding employee stock options had fully vested and there were no unrecognized compensation costs related to outstanding stock options as of September 30, 2018. As a result, there was no stock-based compensation expense related to Stock Options for the three and nine months ended September 30, 2018 and 2017. The following table summarizes additional information regarding exercisable and vested stock options at September 30, 2018: Stock Options Exercisable and Vested Weighted- Average Number of Remaining Life Range of exercise prices Shares (in years) $20.00 2,528,795 1.70 $28.80 120,000 2.57 $20.00 - $28.80 2,648,795 1.74 Restricted Stock Units Compensation cost for stock awards is measured at the grant date based on fair value and recognized over the vesting period. The fair value of time based and book value RSUs is determined based on the closing market price of the Company’s Class A common stock on the date of grant, while the fair value of TSR RSUs is determined at the grant date using a Monte Carlo simulation model. Included in the Monte Carlo simulation model were certain assumptions regarding a number of highly complex and subjective variables, such as expected volatility, risk-free interest rate and expected dividends. To appropriately value the award, the risk-free interest rate is estimated for the time period from the valuation date until the vesting date and the historical volatilities were estimated based on a historical timeframe equal to the time from the valuation date until the end date of the performance period. During the nine months ended September 30, 2018, the Company granted 379,480 RSUs of which 90,761 are TSR RSUs. The following table summarizes the activities for our unvested RSUs for the nine months ended September 30, 2018: Unvested Restricted Stock Units Weighted-Average Number of Grant-Date Shares Fair Value Unvested at December 31, 2017 1,163,700 $ 40.24 Granted 379,480 $ 47.26 Vested (401,959) $ 42.48 Forfeited/canceled (36,350) $ 47.56 Unvested at September 30, 2018 1,104,871 $ 41.60 Expected to vest after September 30, 2018 1,141,144 $ 41.64 As of September 30, 2018, there was $22.3 million of unrecognized compensation cost related to unvested stock-based payments granted to employees. Total unrecognized compensation cost will be recognized over a weighted-average remaining period of 1.83 years.

Investments

Investments	9 Months Ended
	Sep. 30, 2018
Investments
Investments	Note 9. On November 4, 2014, a wholly owned subsidiary of the Company entered into an agreement with a co-investment vehicle arranged by Napier Park Global Capital (US) LP (‘‘Napier Park’’) to participate in a joint venture and formed Blackbird Capital I, LLC (‘‘Blackbird I’’) for the purpose of investing in commercial aircraft and leasing them to airlines around the globe. We provide management services to the joint venture for a fee based upon aircraft assets under management. The Company’s non-controlling interest in Blackbird I is 9.5% and it is accounted for as an investment under the equity method of accounting. The Company's investment in Blackbird I was $34.6 million and $32.3 million as of September 30, 2018 and December 31, 2017, respectively, and is recorded in other assets on the Consolidated Balance Sheets. On August 1, 2017, a wholly owned subsidiary of the Company entered into an agreement with a co-investment vehicle arranged by Napier Park to participate in a joint venture and formed Blackbird Capital II, LLC (‘‘Blackbird II’’) for the purpose of investing in commercial aircraft and leasing them to airlines around the globe. We provide management services to the joint venture for a fee based upon aircraft assets under management. The Company’s non-controlling interest in Blackbird II is 9.5% and it is accounted for as an investment under the equity method of accounting. The Company's investment in Blackbird II was $3.3 million as of September 30, 2018 and December 31, 2017 and is recorded in other assets on the Consolidated Balance Sheets. As of September 30, 2018, the Company's total unfunded commitment to Blackbird II was $34.1 million. On August 1, 2018, we entered into an agreement to sell 18 aircraft to Thunderbolt Aircraft Lease Limited II (“Thunderbolt II”), an asset-backed securities platform which will facilitate the sale and continued management of aircraft assets to investors. The Company’s non-controlling interest in Thunderbolt II is 5.1% and it is accounted for as an investment under the cost method of accounting. All of the aircraft in Thunderbolt II's portfolio will be managed by the Company. During the quarter ended September 30, 2018, we completed the sale of 10 aircraft from our operating lease portfolio to Thunderbolt II. We expect the sale of the remaining eight aircraft to be completed over the next two quarters. The Company's investment in Thunderbolt II was $5.4 million as of September 30, 2018 and is recorded in other assets on the Consolidated Balance Sheets.

Flight Equipment Held for Sale

Flight Equipment Held for Sale	9 Months Ended
	Sep. 30, 2018
Flight Equipment Held for Sale
Flight Equipment Held for Sale	Note 10. Flight Equipment Held for Sale As of September 30, 2018, we had eight aircraft, with a carrying value of $297.4 million, which were held for sale and included in flight equipment subject to operating leases on the Consolidated Balance Sheet. We expect the sale of all eight aircraft to be completed over the next two quarters. We cease recognition of depreciation expense once an aircraft is classified as held for sale. As of December 31, 2017, we did not have any flight equipment classified as held for sale.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events
Subsequent Events	Note 11. Subsequent Events On November 7, 2018, our board of directors approved a quarterly cash dividend of $0.13 per share on our outstanding common stock. The dividend will be paid on January 9, 2019 to holders of record of our common stock as of December 13, 2018.

Basis of Preparation and Crit_2

Basis of Preparation and Critical Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Basis of Preparation and Critical Accounting Policies
Maintenance Rights	Maintenance Rights For the nine months ended September 30, 2018, the Company purchased nine aircraft in the secondary market, two of which were subject to existing leases. The total cost for the two aircraft was $73.3 million, which included maintenance right assets of $13.2 million. The Company did not purchase any aircraft in the secondary market subject to existing leases for the year ended December 31, 2017. As of September 30, 2018 and December 31, 2017, the Company had maintenance right assets, net of accumulated amortization of $49.7 million and $44.6 million, respectively. Maintenance right assets are included under flight equipment subject to operating lease in our Consolidated Balance Sheets.
Cash, cash equivalents and restricted cash	Cash, cash equivalents and restricted cash The Company considers cash and cash equivalents to be cash on hand and highly liquid investments with original maturity dates of 90 days or less. Restricted cash consists of pledged security deposits, maintenance reserves, and rental payments related to secured aircraft financing arrangements. The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows (in thousands): September 30, 2018 September 30, 2017 (unaudited) Cash and cash equivalents $ 228,502 $ 226,019 Restricted cash 20,417 19,411 Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows $ 248,919 $ 245,430
Reclassifications	Reclassifications Certain reclassifications have been made in the 2017 consolidated financial statements to conform to the classifications in 2018.
Recent issued accounting pronouncements	Recently adopted accounting standards In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606).” The amendments in ASU 2014-09 supersede current revenue recognition requirements. The guidance specifically notes that lease contracts are a scope exception. ASU 2014-09 requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. Further, the guidance requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Effective January 1, 2018, the Company adopted ASU 2014-09 using the modified retrospective approach. Adopting this standard did not have a material impact to our consolidated financial statements and related disclosures. As the standard did not apply to lease contracts within the scope of FASB Accounting Standard Codification (“ASC”) 840 Leases, we evaluated the recognition of gains on sale of flight equipment under the scope of the new standard. Under ASU 2014-09, a performance obligation is satisfied and the related revenue recognized when control of the underlying goods or services related to the performance obligation is transferred to the customer. Our performance obligation associated with the sale of flight equipment is satisfied upon delivery of the flight equipment to a customer, which is the point in time where control of the underlying flight equipment has transferred to the buyer. At the time flight equipment is retired or sold, the cost and accumulated depreciation are removed from the related accounts and the difference, net of transaction price, is recorded as a gain or loss. Since there was no net income impact upon adoption of the new guidance, a cumulative effect adjustment to opening retained earnings was not deemed necessary. In August 2016, the FASB issued ASU No. 2016-15 (“ASU 2016-15”), “Statement of Cash Flows (Topic 230).” The amendments in ASU 2016-15 address eight classification issues related to the statement of cash flows. The Company adopted ASU 2016-15 using the retrospective transition method. The adoption of this standard did not have an impact on the current period or prior period consolidated financial statements. In November 2016, FASB issued ASU No. 2016-18 (“ASU 2016-18”), “Statement of Cash Flows (Topic 230): Restricted Cash.” ASU 2016-18 requires entities to present the aggregate changes in cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. In addition, when cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, ASU 2016-18 requires a reconciliation of the totals in the statement of cash flows to the related captions on the balance sheet. The Company adopted ASU 2016-18 retrospectively as of January 1, 2018. The adoption of this standard did not have a material impact on the current period or prior period consolidated financial statements.

Basis of Preparation and Crit_3

Basis of Preparation and Critical Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Basis of Preparation and Critical Accounting Policies
Schedule of cash and cash equivalents and restricted cash	The following table reconciles cash, cash equivalents and restricted cash reported in our consolidated balance sheets to the total amount presented in our consolidated statements of cash flows (in thousands): September 30, 2018 September 30, 2017 (unaudited) Cash and cash equivalents $ 228,502 $ 226,019 Restricted cash 20,417 19,411 Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows $ 248,919 $ 245,430

Debt Financing (Tables)

Debt Financing (Tables)	9 Months Ended
	Sep. 30, 2018
Debt Financing
Summary of consolidated debt	The Company's debt financing was comprised of the following at September 30, 2018 and December 31, 2017 (dollars in thousands): September 30, December 31, 2018 2017 Unsecured Senior notes $ 9,968,445 $ 8,019,871 Term financings 616,230 203,704 Convertible senior notes 199,950 199,983 Revolving credit facility — 847,000 Total unsecured debt financing 10,784,625 9,270,558 Secured Term financings 399,722 484,036 Export credit financing 39,929 44,920 Total secured debt financing 439,651 528,956 Total debt financing 11,224,276 9,799,514 Less: Debt discounts and issuance costs (129,939) (100,729) Debt financing, net of discounts and issuance costs $ 11,094,337 $ 9,698,785
Schedule of secured obligations	The Company’s secured obligations as of September 30, 2018 and December 31, 2017 are summarized below (dollars in thousands): September 30, December 31, 2018 2017 Nonrecourse $ 177,054 $ 205,906 Recourse 262,597 323,050 Total secured debt financing $ 439,651 $ 528,956 Number of aircraft pledged as collateral 20 21 Net book value of aircraft pledged as collateral $ 1,144,935 $ 1,184,264
Schedule of maturities of debt outstanding	Maturities of debt outstanding as of September 30, 2018 are as follows (in thousands): Years ending December 31, 2018 $ 240,239 2019 1,145,826 2020 1,187,233 2021 1,680,927 2022 2,369,384 Thereafter 4,600,667 Total $ 11,224,276

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies
Schedule of commitments to acquire aircraft	Aircraft Type 2018 2019 2020 2021 2022 Thereafter Total Airbus A321-200 2 — — — — — 2 Airbus A320/321neo (1) 4 38 27 22 25 25 141 Airbus A330-900neo 2 8 4 7 6 2 29 Airbus A350-900/1000 — 4 2 5 3 — 14 Boeing 737-7/8/9 MAX 3 28 29 35 34 28 157 Boeing 787-9/10 2 12 10 8 9 — 41 Total 13 90 72 77 77 55 384 (1) Our Airbus A320/321neo aircraft orders include 55 long-range variants. In addition to the Company's commitments, as of September 30, 2018, the Company had options to acquire up to five Airbus A350-1000 aircraft and 45 Boeing 737-8 MAX aircraft. Deliveries of these aircraft are scheduled to commence in 2023 and continue through 2024.
Schedule of commitments for the acquisition of aircraft and other equipment at an estimated aggregate purchase price	Commitments for the acquisition of aircraft and other equipment, calculated at an estimated aggregate purchase price (including adjustments for inflation) was approximately $27.1 billion at September 30, 2018, and are due as follows (in thousands): Years ending December 31, 2018 $ 1,327,140 2019 6,559,513 2020 5,503,786 2021 5,765,900 2022 5,207,315 Thereafter 2,721,097 Total $ 27,084,751

Net Earnings Per Share (Tables)

Net Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2018
Net Earnings Per Share
Schedule of reconciliation of basic and diluted net income per share	The following table sets forth the reconciliation of basic and diluted net income per share (in thousands, except share and per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2018 2017 2018 2017 Basic net income per share: Numerator Net income $ 146,574 $ 99,188 $ 372,436 $ 285,050 Denominator Weighted-average common shares outstanding 104,066,785 103,221,692 103,940,723 103,117,695 Basic net income per share $ 1.41 $ 0.96 $ 3.58 $ 2.76 Diluted net income per share: Numerator Net income $ 146,574 $ 99,188 $ 372,436 $ 285,050 Assumed conversion of convertible senior notes 1,823 1,426 5,309 4,263 Net income plus assumed conversions $ 148,397 $ 100,614 $ 377,745 $ 289,313 Denominator Number of shares used in basic computation 104,066,785 103,221,692 103,940,723 103,117,695 Weighted-average effect of dilutive securities 8,442,827 8,487,853 8,437,147 8,440,430 Number of shares used in per share computation 112,509,612 111,709,545 112,377,870 111,558,125 Diluted net income per share $ 1.32 $ 0.90 $ 3.36 $ 2.59

Stock-based Compensation (Table

Stock-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2018
Stock-based Compensation
Summary of stock option activity	Remaining Aggregate Exercise Contractual Term Intrinsic Value Shares Price (in years) (in thousands) (1) Balance at December 31, 2017 2,858,158 $ 20.37 2.49 $ 79,230 Granted — $ — — $ — Exercised (209,363) $ 20.00 — $ 4,977 Forfeited/canceled — $ — — $ — Balance at September 30, 2018 2,648,795 $ 20.40 1.74 $ 67,495 Vested and exercisable as of September 30, 2018 2,648,795 $ 20.40 1.74 $ 67,495 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of our Class A common stock as of the respective date.
Summary of additional information regarding exercisable and vested stock options	Stock Options Exercisable and Vested Weighted- Average Number of Remaining Life Range of exercise prices Shares (in years) $20.00 2,528,795 1.70 $28.80 120,000 2.57 $20.00 - $28.80 2,648,795 1.74
Summary of activities for unvested RSUs	Unvested Restricted Stock Units Weighted-Average Number of Grant-Date Shares Fair Value Unvested at December 31, 2017 1,163,700 $ 40.24 Granted 379,480 $ 47.26 Vested (401,959) $ 42.48 Forfeited/canceled (36,350) $ 47.56 Unvested at September 30, 2018 1,104,871 $ 41.60 Expected to vest after September 30, 2018 1,141,144 $ 41.64

Company Background and Overvi_2

Company Background and Overview (Details)	9 Months Ended
	Sep. 30, 2018aircraft
Organization
Number of aircraft owned	268
Number of aircraft managed	60
Number of aircraft on order with manufacturers	384

Basis of Preparation and Crit_4

Basis of Preparation and Critical Accounting Policies (Details) $ in Thousands	Sep. 30, 2018USD ($)aircraft	Dec. 31, 2017USD ($)
Maintenance Rights
Lease asset	$ 15,148,422	$ 13,280,250
Total cost	17,309,576	15,100,040
Maintenance Right Assets
Maintenance Rights
Lease asset	$ 49,700	$ 44,600
Aircraft Improvement Assets
Maintenance Rights
Number of aircraft purchased | aircraft	9
Subject to existing lease
Maintenance Rights
Number of aircraft purchased | aircraft	2
Total cost	$ 73,300
Subject to existing lease | Maintenance Right Assets
Maintenance Rights
Total cost	$ 13,200

Basis of Preparation and Crit_5

Basis of Preparation and Critical Accounting Policies - Cash, cash equivalents and restricted cash (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Basis of Preparation and Critical Accounting Policies
Cash and cash equivalents	$ 228,502	$ 292,204	$ 226,019
Restricted cash	20,417	16,078	19,411
Total cash, cash equivalents and restricted cash in the consolidated statements of cash flows	$ 248,919	$ 308,282	$ 245,430	$ 290,802

Debt Financing (Details)

Debt Financing (Details)	1 Months Ended
	Sep. 30, 2018USD ($)aircraft	May 31, 2018USD ($)	Oct. 23, 2018USD ($)	Jun. 30, 2018USD ($)	Jan. 31, 2018USD ($)	Dec. 31, 2017USD ($)aircraft
Debt financing
Total debt financing	$ 11,224,276,000					$ 9,799,514,000
Less: Debt discounts and issuance costs	(129,939,000)					(100,729,000)
Debt financing, net of discounts and issuance costs	11,094,337,000					9,698,785,000
Unsecured Debt
Debt financing
Total debt financing	10,784,625,000					9,270,558,000
Senior Notes
Debt financing
Total debt financing	9,968,445,000					8,019,871,000
Secured Obligations
Principal amount issued	$ 1,200,000,000				$ 1,250,000,000
Senior Notes | Minimum
Secured Obligations
Interest rate (as a percent)	2.50%
Senior Notes | Maximum
Secured Obligations
Interest rate (as a percent)	4.625%
Senior Unsecured Notes Maturing 2021 and 2028
Secured Obligations
Principal amount issued	$ 2,950,000,000
Senior Unsecured Notes 3.5 Percent Due 2022
Secured Obligations
Principal amount issued	$ 700,000,000
Interest rate (as a percent)	3.50%
Senior Unsecured Notes 4.65 Percent Due 2028
Secured Obligations
Principal amount issued	$ 500,000,000
Interest rate (as a percent)	4.625%
Senior Unsecured Notes 3.875 Percent Due 2023
Secured Obligations
Principal amount issued				$ 500,000,000
Interest rate (as a percent)				3.875%
Senior Unsecured Notes 2.50 Percent Due 2021
Secured Obligations
Principal amount issued					$ 550,000,000
Interest rate (as a percent)					2.50%
Senior Unsecured Notes 3.25 Percent Due 2025
Secured Obligations
Principal amount issued					$ 700,000,000
Interest rate (as a percent)					3.25%
Revolving Credit Facility
Debt financing
Total debt financing						847,000,000
Secured Obligations
Incremental borrowing capacity			$ 50,000,000
Unsecured Revolving Credit Facility Maturing on May 5, 2019 | Debt Instrument, Redemption, May 5, 2019
Secured Obligations
Line of credit maturity amount		$ 275,000,000
Unsecured Revolving Credit Facility Maturing on May 5, 2020 | Debt Instrument, Redemption, May 5, 2020
Secured Obligations
Line of credit maturity amount		217,700,000
Unsecured Revolving Credit Facility Mature On 5 May 2021 | Debt Instrument, Redemption, May 5, 2022
Secured Obligations
Maximum borrowing capacity		4,100,000,000
Unsecured Revolving Credit Facility Mature On 5 May 2021 | Debt Instrument, Redemption, May 5, 2021
Secured Obligations
Line of credit maturity amount		$ 20,000,000
Unsecured Revolving Credit Facility Mature On 5 May 2022
Secured Obligations
Facility fee		0.20%
Unsecured Revolving Credit Facility Mature On 5 May 2022 | Debt Instrument, Redemption, May 5, 2022
Secured Obligations
Line of credit maturity amount		$ 4,100,000,000
Unsecured Revolving Credit Facility Mature On 5 May 2022 | Debt Instrument, Redemption, May 5, 2021
Secured Obligations
Maximum borrowing capacity		$ 4,500,000,000
Unsecured Revolving Credit Facility Mature On 5 May 2022 | LIBOR
Secured Obligations
Interest margin (as a percent)		1.05%
Term financings
Debt financing
Total debt financing	$ 616,230,000					203,704,000
Secured Obligations
Principal amount issued	$ 438,000,000
Debt term	4 years
Term financings | LIBOR
Secured Obligations
Interest margin (as a percent)	1.125%
Convertible Senior Notes
Debt financing
Total debt financing	$ 199,950,000					199,983,000
Secured Debt
Debt financing
Total debt financing	439,651,000					528,956,000
Secured Obligations
Nonrecourse	177,054,000					205,906,000
Recourse	262,597,000					323,050,000
Total secured debt financing	$ 439,651,000					$ 528,956,000
Number of aircraft pledged as collateral | aircraft	20					21
Net book value of aircraft pledged as collateral	$ 1,144,935,000					$ 1,184,264,000
Export Credit Financing
Debt financing
Total debt financing	39,929,000					44,920,000
Term Financings
Debt financing
Total debt financing	399,722,000					$ 484,036,000
Secured Obligations
Incremental borrowing capacity	$ 50,000,000

Debt Financing - Maturities of

Debt Financing - Maturities of Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Maturities
2,018	$ 240,239
2,019	1,145,826
2,020	1,187,233
2,021	1,680,927
2,022	2,369,384
Thereafter	4,600,667
Total	$ 11,224,276	$ 9,799,514

Commitments and Contingencies_2

Commitments and Contingencies (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2018USD ($)leaseitemaircraft	Dec. 31, 2017USD ($)
Commitments to acquire aircraft
Minimum aircraft delivery delays that could trigger lessee cancellation clauses (in years)	1 year
Lease contracts, subject to cancellation | lease	1
Commitments for the acquisition of the aircraft and other equipment
2018 | $	$ 1,327,140
2019 | $	6,559,513
2020 | $	5,503,786
2021 | $	5,765,900
2022 | $	5,207,315
Thereafter | $	2,721,097
Total | $	$ 27,084,751
Aircrafts
Commitments to acquire aircraft
2,018	13
2,019	90
2,020	72
2,021	77
2,022	77
Thereafter	55
Total	384
Commitments for the acquisition of the aircraft and other equipment
Total | $	$ 1,600,000	$ 1,600,000
Airbus A321-200
Commitments to acquire aircraft
2,018	2
Total	2
Airbus A320/321neo
Commitments to acquire aircraft
2,018	4
2,019	38
2,020	27
2,021	22
2,022	25
Thereafter	25
Total	141
Number of long-range variants	55
Airbus A330-900neo
Commitments to acquire aircraft
2,018	2
2,019	8
2,020	4
2,021	7
2,022	6
Thereafter	2
Total	29
Airbus A350-900/1000
Commitments to acquire aircraft
2,019	4
2,020	2
2,021	5
2,022	3
Total	14
Boeing 737-7/8/9 MAX
Commitments to acquire aircraft
2,018	3
2,019	28
2,020	29
2,021	35
2,022	34
Thereafter	28
Total	157
Boeing 787-9/10
Commitments to acquire aircraft
2,018	2
2,019	12
2,020	10
2,021	8
2,022	9
Total	41
Airbus A350-1000 | Maximum
Commitments for the acquisition of the aircraft and other equipment
Aircraft to be acquired under non-binding commitment | aircraft	5
Boeing 737-8 MAX Aircraft | Maximum
Commitments for the acquisition of the aircraft and other equipment
Aircraft to be acquired under non-binding commitment | aircraft	45

Net Earnings Per Share (Details

Net Earnings Per Share (Details) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares	Sep. 30, 2017USD ($)$ / sharesshares	Sep. 30, 2018USD ($)item$ / sharesshares	Sep. 30, 2017USD ($)$ / sharesshares
Anti-dilutive securities
Number of classes of common stock | item			2
Numerator
Net income | $	$ 146,574	$ 99,188	$ 372,436	$ 285,050
Denominator
Weighted-average common shares outstanding	104,066,785	103,221,692	103,940,723	103,117,695
Basic net income per share (in dollars per share) | $ / shares	$ 1.41	$ 0.96	$ 3.58	$ 2.76
Numerator
Net income | $	$ 146,574	$ 99,188	$ 372,436	$ 285,050
Assumed conversion of convertible senior notes | $	1,823	1,426	5,309	4,263
Net income plus assumed conversions | $	$ 148,397	$ 100,614	$ 377,745	$ 289,313
Denominator
Number of shares used in basic computation	104,066,785	103,221,692	103,940,723	103,117,695
Weighted-average effect of dilutive securities (in shares)	8,442,827	8,487,853	8,437,147	8,440,430
Number of shares used in per share computation	112,509,612	111,709,545	112,377,870	111,558,125
Diluted net income per share (in dollars per share) | $ / shares	$ 1.32	$ 0.90	$ 3.36	$ 2.59
Restricted Stock Units
Anti-dilutive securities
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares)			950,761	1,085,559

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Recurring and Non-recurring (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Recurring basis
Fair Value Measurements
Assets	$ 0	$ 0
Liabilities	0	0
Non-recurring basis
Fair Value Measurements
Assets	0	0
Liabilities	$ 0	$ 0

Fair Value Measurements - Debt

Fair Value Measurements - Debt Financing (Details) - USD ($) $ in Billions	Sep. 30, 2018	Dec. 31, 2017
Book Value
Financial Instruments Not Measured at Fair Value
Debt financing	$ 11.2	$ 9.8
Level 2
Financial Instruments Not Measured at Fair Value
Debt financing	$ 11.1	$ 10

Stock-based Compensation - Stoc

Stock-based Compensation - Stock Options (Details) $ / shares in Units, $ in Thousands	May 07, 2014shares	Sep. 30, 2018USD ($)$ / sharesshares	Sep. 30, 2017USD ($)	Sep. 30, 2018USD ($)item$ / sharesshares	Sep. 30, 2017USD ($)	Dec. 31, 2017USD ($)$ / sharesshares
Stock-based Compensation
Unrecognized compensation cost		$ 22,300		$ 22,300
Equity Incentive Plan 2010
Stock-based Compensation
Number of shares authorized | shares		5,609,437		5,609,437
Shares included in the authorized shares which was previously reserved for issuance | shares		609,437		609,437
Shares
Granted (in shares) | shares	0
Employee and Directors Stock Options
Stock-based Compensation
Term of award				10 years
Vesting period				3 years
Stock-based compensation		$ 0	$ 0	$ 0	$ 0
Unrecognized compensation cost		$ 0		$ 0
Shares
Balance at the beginning of the period (in shares) | shares				2,858,158
Exercised (in shares) | shares				(209,363)
Balance at the end of the period (in shares) | shares		2,648,795		2,648,795		2,858,158
Vested and exercisable at the end of the period (in shares) | shares		2,648,795		2,648,795
Exercise Price
Balance at the beginning of the period (in dollars per share) | $ / shares				$ 20.37
Exercised (in dollars per share) | $ / shares				20
Balance at the end of the period (in dollars per share) | $ / shares		$ 20.40		20.40		$ 20.37
Vested and exercisable at the end of the period (in dollars per share) | $ / shares		$ 20.40		$ 20.40
Remaining Contractual Term
Remaining Contractual Term (in years)				1 year 8 months 27 days		2 years 5 months 27 days
Vested and exercisable				1 year 8 months 27 days
Aggregate Intrinsic Value
Balance at the beginning of the period				$ 79,230
Exercised				4,977
Balance at the end of the period		$ 67,495		67,495		$ 79,230
Vested and exercisable at the end of the period		67,495		$ 67,495
Restricted Stock Units
Stock-based Compensation
Number of different vesting criteria | item				4
Stock-based compensation		$ 4,800	$ 5,400	$ 13,200	$ 14,400
Restricted Stock Units | Vesting Tranche One
Stock-based Compensation
Vesting period				3 years
Restricted Stock Units | Vesting Tranche Three
Stock-based Compensation
Vesting period				3 years
Restricted Stock Units | Vesting Tranche Four
Stock-based Compensation
Vesting period				3 years
Restricted Stock Units | Minimum | Vesting Tranche Two
Stock-based Compensation
Vesting period				1 year
Restricted Stock Units | Maximum | Vesting Tranche Two
Stock-based Compensation
Vesting period				2 years
Restricted Stock With Total Shareholder Return Conditions | Minimum
Stock-based Compensation
Percentage of shares vested				0.00%
Restricted Stock With Total Shareholder Return Conditions | Maximum
Stock-based Compensation
Percentage of shares vested				200.00%

Stock-based Compensation - St_2

Stock-based Compensation - Stock Option Exercise Price (Details)	9 Months Ended
	Sep. 30, 2018$ / sharesshares
$ 20
Stock options exercisable and vested by exercise price range
Exercise price (in dollars per share)	$ 20
Stock options exercisable and vested
Number of Shares | shares	2,528,795
Weighted-Average Remaining Life (in years)	1 year 8 months 12 days
$ 28.80
Stock options exercisable and vested by exercise price range
Exercise price (in dollars per share)	$ 28.80
Stock options exercisable and vested
Number of Shares | shares	120,000
Weighted-Average Remaining Life (in years)	2 years 6 months 26 days
$20.00 - $28.80
Stock options exercisable and vested
Number of Shares | shares	2,648,795
Weighted-Average Remaining Life (in years)	1 year 8 months 27 days
Minimum | $20.00 - $28.80
Stock options exercisable and vested by exercise price range
Exercise price (in dollars per share)	$ 20
Maximum | $20.00 - $28.80
Stock options exercisable and vested by exercise price range
Exercise price (in dollars per share)	$ 28.80

Stock-based Compensation - Rest

Stock-based Compensation - Restricted Stock (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2018USD ($)$ / sharesshares
Stock-based compensation expense
Unrecognized compensation cost | $	$ 22.3
Weighted-average period of recognition of unrecognized stock-based compensation cost	1 year 9 months 29 days
Restricted Stock Units
Unvested Restricted Stock Units, Number of Shares
Unvested at the beginning of the period (in shares)	1,163,700
Granted (in shares)	379,480
Vested (in shares)	(401,959)
Forfeited/canceled (in shares)	(36,350)
Unvested at the end of the period (in shares)	1,104,871
Expected to vest after the end of the period (in shares)	1,141,144
Unvested Restricted Stock Units, Weighted-Average Grant-Date Fair Value
Unvested at the beginning of the period (in dollars per share) | $ / shares	$ 40.24
Granted (in dollars per share) | $ / shares	47.26
Vested (in dollars per share) | $ / shares	42.48
Forfeited/canceled (in dollars per share) | $ / shares	47.56
Unvested at the end of the period (in dollars per share) | $ / shares	41.60
Expected to vest after the end of the period (in dollars per share) | $ / shares	$ 41.64
Restricted Stock With Total Shareholder Return Conditions
Unvested Restricted Stock Units, Number of Shares
Granted (in shares)	90,761

Investments (Details)

Investments (Details)	Aug. 01, 2018USD ($)aircraft	Mar. 31, 2019aircraft	Sep. 30, 2020aircraft	Sep. 30, 2018USD ($)	Dec. 31, 2017USD ($)	Aug. 01, 2017	Nov. 04, 2014
Investments
Long-lived assets held for sale	$ 18
Blackbird Capital I
Investments
Percentage of equity ownership							9.50%
Equity method investment				$ 34,600,000	$ 32,300,000
Blackbird Capital II
Investments
Percentage of equity ownership						9.50%
Equity method investment				3,300,000	$ 3,300,000
Total unfunded commitment				34,100,000
Thunderbolt II
Investments
Noncontrolling Interest, Ownership Percentage by Parent	5.10%
Cost Method Investments				$ 5,400,000
Aircraft Held For Sale
Investments
Number of aircraft sold or agreed to be sold | aircraft	10
Number of aircraft | aircraft			8
Forecast
Investments
Number of quarter for aircraft sale expected to close		2
Forecast | Aircraft Held For Sale
Investments
Number of aircraft | aircraft		8

Flight Equipment Held for Sale

Flight Equipment Held for Sale (Details) $ in Millions	6 Months Ended	9 Months Ended
	Mar. 31, 2019aircraft	Sep. 30, 2020aircraft	Sep. 30, 2018USD ($)
Forecast
Flight Equipment Held for Sale
Number of quarter for aircraft sale expected to close	2
Aircraft Held For Sale
Flight Equipment Held for Sale
Number of aircraft		8
Flight Equipment, Net | $			$ 297.4
Aircraft Held For Sale | Forecast
Flight Equipment Held for Sale
Number of aircraft	8

Subsequent Events (Details)

Subsequent Events (Details) - $ / shares	Nov. 07, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Subsequent Events
Quarterly cash dividends on common stock		$ 0.10	$ 0.075	$ 0.30	$ 0.225
Subsequent Event
Subsequent Events
Quarterly cash dividends on common stock	$ 0.13
Subsequent Event | Dividend Declared
Subsequent Events
Quarterly cash dividends on common stock	$ 0.13