Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 12, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'INTERNATIONAL LEASE FINANCE CORP | ' |
Entity Central Index Key | '0000714311 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Non-accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 45,267,723 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED, CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents, including interest bearing accounts of $1,654,197 (2013) and $2,964,136 (2012) | $1,725,318 | $3,027,587 |
Restricted cash, including interest bearing accounts of $408,917 (2013) and $406,788 (2012) | 420,884 | 695,388 |
Net investment in finance and sales-type leases | 159,968 | 93,936 |
Flight equipment | 46,518,056 | 48,419,478 |
Less accumulated depreciation | 13,835,770 | 13,951,169 |
Flight equipment under operating leases, net | 32,682,286 | 34,468,309 |
Flight equipment held for sale | 205,716 | 9,171 |
Deposits on flight equipment purchases | 643,515 | 470,200 |
Lease receivables and other assets | 854,305 | 776,431 |
Deferred debt issue costs, less accumulated amortization of $289,168 (2013) and $310,371 (2012) | 276,652 | 269,335 |
Total assets | 36,968,644 | 39,810,357 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ' | ' |
Accrued interest and other payables | 598,151 | 566,219 |
Current income taxes and other tax liabilities | 261,828 | 269,846 |
Secured debt financing, net of deferred debt discount of $5,398 (2013) and $15,125 (2012) | 8,281,477 | 9,489,247 |
Unsecured debt financing, net of deferred debt discount of $33,712 (2013) and $37,207 (2012) | 12,991,826 | 13,853,540 |
Subordinated debt | 1,000,000 | 1,000,000 |
Derivative liabilities | 10,379 | 20,933 |
Security deposits, deferred overhaul rental and other customer deposits | 2,656,279 | 2,524,981 |
Deferred income taxes | 3,815,200 | 4,142,723 |
Commitments and Contingencies - Note L | ' | ' |
SHAREHOLDERS' EQUITY | ' | ' |
Market Auction Preferred Stock, $100,000 per share liquidation value; Series A and B, each having 500 shares issued and outstanding | 100,000 | 100,000 |
Common stock - no par value; 100,000,000 authorized shares, 45,267,723 issued and outstanding | 1,053,582 | 1,053,582 |
Paid-in capital | 1,266,288 | 1,262,551 |
Accumulated other comprehensive loss | -5,967 | -12,491 |
Retained earnings | 4,939,601 | 5,539,226 |
Total shareholders' equity | 7,353,504 | 7,942,868 |
Total liabilities and shareholders' equity | $36,968,644 | $39,810,357 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED, CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Deferred debt issue costs, accumulated amortization (in dollars) | $289,168 | $310,371 |
Market Auction Preferred Stock, liquidation value (in dollars per share) | $100,000 | $100,000 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock issued (in shares) | 45,267,723 | 45,267,723 |
Common stock outstanding (in shares) | 45,267,723 | 45,267,723 |
Series A | ' | ' |
Market Auction Preferred Stock, shares issued | 500 | 500 |
Market Auction Preferred Stock, shares outstanding | 500 | 500 |
Series B | ' | ' |
Market Auction Preferred Stock, shares issued | 500 | 500 |
Market Auction Preferred Stock, shares outstanding | 500 | 500 |
Cash and cash equivalents | ' | ' |
Interest bearing accounts (in dollars) | 1,654,197 | 2,964,136 |
Restricted cash | ' | ' |
Interest bearing accounts (in dollars) | 408,917 | 406,788 |
Secured debt financing | ' | ' |
Deferred debt discount (in dollars) | 5,398 | 15,125 |
Unsecured debt financing | ' | ' |
Deferred debt discount (in dollars) | $33,712 | $37,207 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED, CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
REVENUES AND OTHER INCOME | ' | ' | ' | ' |
Rental of flight equipment | $1,068,610 | $1,097,280 | $3,142,418 | $3,320,711 |
Flight equipment marketing and gain on aircraft sales | 17,024 | 10,503 | 33,777 | 25,176 |
Other income | 23,167 | 34,089 | 96,269 | 81,848 |
Total revenues and other income | 1,108,801 | 1,141,872 | 3,272,464 | 3,427,735 |
EXPENSES | ' | ' | ' | ' |
Interest | 338,553 | 386,769 | 1,088,655 | 1,165,844 |
Depreciation of flight equipment | 459,426 | 482,098 | 1,386,793 | 1,440,502 |
Aircraft impairment charges on flight equipment held for use | 1,104,625 | 61,237 | 1,139,863 | 102,662 |
Aircraft impairment charges and fair value adjustments on flight equipment sold or to be disposed | 57,487 | 35,932 | 185,074 | 88,059 |
Loss on early extinguishment of debt | ' | ' | 17,695 | 22,934 |
Aircraft costs | 22,254 | 49,638 | 43,732 | 95,795 |
Selling, general and administrative | 75,134 | 65,682 | 242,556 | 191,880 |
Other expenses | 100,637 | 32,960 | 106,945 | 46,383 |
Total expenses | 2,158,116 | 1,114,316 | 4,211,313 | 3,154,059 |
(LOSS) INCOME BEFORE INCOME TAXES | -1,049,315 | 27,556 | -938,849 | 273,676 |
(Benefit) provision for income taxes - Note C | -367,237 | 9,964 | -339,557 | -65,990 |
NET (LOSS) INCOME | ($682,078) | $17,592 | ($599,292) | $339,666 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED, CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED, CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ' | ' | ' | ' |
NET (LOSS) INCOME | ($682,078) | $17,592 | ($599,292) | $339,666 |
OTHER COMPREHENSIVE INCOME (LOSS) | ' | ' | ' | ' |
Net changes in fair value of cash flow hedges, net of tax provision of $1,007 (2013) and $904 (2012) for three months ended and $3,471 (2013) and $2,216 (2012) for nine months ended, respectively, and net of reclassification adjustments | 1,847 | 1,653 | 6,363 | 4,346 |
Change in unrealized fair value adjustments of available-for-sale securities, net of tax provision (benefit) of $47 (2013) and $0 (2012) for three months ended and $88 (2013) and ($5) (2012) for nine months ended, respectively, and net of reclassification adjustments | 85 | 362 | 161 | 350 |
Total other comprehensive income (Loss) | 1,932 | 2,015 | 6,524 | 4,696 |
COMPREHENSIVE (LOSS) INCOME | ($680,146) | $19,607 | ($592,768) | $344,362 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED, CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
CONDENSED, CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME | ' | ' | ' | ' |
Net changes in fair value of cash flow hedges, tax provision | $1,007 | $904 | $3,471 | $2,216 |
Change in unrealized fair value adjustments of available-for-sale securities, tax provision (benefit) | $47 | $0 | $88 | ($5) |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED, CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | ||
OPERATING ACTIVITIES | ' | ' | ||
Net (loss) income | ($599,292) | $339,666 | ||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ' | ' | ||
Depreciation of flight equipment | 1,386,793 | 1,440,502 | ||
Deferred income taxes | -331,082 | -74,501 | ||
Amortization of deferred debt issue costs | 41,685 | 56,702 | ||
Amortization of debt discount | 5,436 | 9,681 | ||
Amortization of prepaid lease costs | 64,079 | 45,661 | ||
Aircraft impairment charges and fair value adjustments | 1,324,937 | 190,721 | ||
Forfeitures of customer deposits | -30,328 | -17,469 | ||
Loss on early extinguishment of debt | 17,695 | 22,934 | ||
Other, including gain on aircraft sales and disposals | -4,235 | -27,926 | ||
Changes in operating assets and liabilities: | ' | ' | ||
Lease receivables and other assets | -68,178 | 83,269 | ||
Accrued interest and other payables | 28,871 | 181,949 | ||
Current income taxes and other tax liabilities | -8,018 | 3,226 | ||
Net cash provided by operating activities | 1,828,363 | 2,254,415 | ||
INVESTING ACTIVITIES | ' | ' | ||
Acquisition of flight equipment | -1,507,279 | -1,515,670 | ||
Payments for deposits and progress payments | -267,503 | -137,504 | ||
Proceeds from disposal of flight equipment | 391,796 | 237,128 | ||
Change in restricted cash | 274,504 | 43,750 | ||
Collections of notes receivable | 5,803 | 10,117 | ||
Collections of finance and sales-type leases | 42,884 | 30,325 | ||
Net cash (used in) investing activities | -1,059,795 | -1,331,854 | ||
FINANCING ACTIVITIES | ' | ' | ||
Proceeds from debt financing | 1,891,080 | 3,481,146 | ||
Payments in reduction of debt financing, net of foreign currency swap settlements | -3,973,845 | -3,675,766 | ||
Debt issue costs | -58,851 | -56,531 | ||
Security and rental deposits received | 121,722 | 114,231 | ||
Security and rental deposits returned | -83,110 | -98,996 | ||
Overhaul rentals collected | 452,829 | 366,272 | ||
Overhaul rentals reimbursed | -419,863 | -405,957 | ||
Net change in other deposits | -1,019 | 24,505 | ||
Payment of preferred dividends | -271 | -300 | ||
Net cash (used in) financing activities | -2,071,328 | -251,396 | ||
Net (decrease) increase in cash | -1,302,760 | 671,165 | ||
Effect of exchange rate changes on cash | 491 | 36 | ||
Cash at beginning of period | 3,027,587 | 1,975,009 | ||
Cash at end of period | 1,725,318 | 2,646,210 | ||
Cash paid during the period for: | ' | ' | ||
Interest, excluding interest capitalized of $17,336 (2013) and $11,562 (2012) | 1,108,606 | 1,141,323 | ||
Income taxes, net | $1,903 | [1] | $5,033 | [1] |
[1] | Includes no payment and approximately $2 million paid to AIG for ILFC tax liability for the nine month periods ending September 30, 2013 and 2012, respectively. |
CONDENSED_CONSOLIDATED_STATEME4
CONDENSED, CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
aircraft | ||
engine | ||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' |
Interest capitalized | $17,336,000 | $11,562,000 |
Tax liability paid to AIG | 0 | 2,000,000 |
Flight equipment reclassified to Flight equipment held for sale | 358,716,000 | 48,677,000 |
Flight equipment reclassified to Flight equipment held for sale and subsequently sold | 162,171,000 | ' |
Deposits on flight equipment purchases applied to Acquisition of flight equipment | 131,660,000 | 62,230,000 |
Flight equipment reclassified to Net investment in finance and sales-type leases, including amount charged to expense | 107,298,000 | ' |
Flight equipment reclassified to Net investment in finance and sale-type leases, net | 104,902,000 | ' |
Flight equipment reclassified to Net investment in finance and sale-type leases, amount charged to expense | 2,396,000 | ' |
Flight equipment reclassified | 42,527,000 | 151,088,000 |
Flight equipment reclassified to Lease receivables and other assets | 29,589,000 | 150,577,000 |
Flight equipment reclassified, amount charged to income/expense | 12,938,000 | 511,000 |
Number of part-out aircraft | ' | 13 |
Number of part-out engines | ' | 2 |
Accrued interest and other payables applied to Acquisition of flight equipment to reflect the fair value of aircraft purchased under asset value guarantees | 41,410,000 | ' |
Flight equipment reclassified to Net investment in finance and sale-type leases | ' | 68,636,000 |
Deposits on flight equipment purchases reclassified to net investment in finance and sale-type leases | ' | 4,792,000 |
Accrued interest and other assets reclassified to Net investment in finance and sale-type leases | ' | -4,733,000 |
Net investment in finance and sales-type leases to which flight equipment, deposits on flight equipment purchases, Accrued interest and other assets reclassified | ' | 69,266,000 |
Amount charged to income pursuant to reclassification of flight equipment, deposits on flight equipment purchases, Accrued interest and other assets to net investment in finance and sales-type leases | ' | 571,000 |
Flight equipment reclassified to Retained earnings to record a transfer of corporate aircraft to AIG | ' | 37,245,000 |
Paid-in capital reclassified to Other assets to reflect a contribution of a corporate aircraft from AIG | ' | 25,901,000 |
Flight equipment classified as Net investment in finance and sales-type leases reclassified to Flight equipment | ' | 20,819,000 |
Notes receivable received as partial payment for flight equipment sold | ' | 15,117,000 |
Flight equipment sold, net book value | ' | $166,736,000 |
Basis_of_Preparation
Basis of Preparation | 9 Months Ended |
Sep. 30, 2013 | |
Basis of Preparation | ' |
Basis of Preparation | ' |
A. Basis of Preparation | |
We are an indirect wholly-owned subsidiary of AIG. AIG is a leading global insurance company that provides a wide range of property casualty insurance, life insurance, retirement products, mortgage insurance and other financial services to customers in more than 130 countries. | |
The accompanying unaudited, condensed, consolidated financial statements have been prepared in accordance with 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, condensed, consolidated financial statements include our accounts and accounts of all other entities in which we have a controlling financial interest. See Note M—Variable Interest Entities for further discussions on VIEs. All material intercompany accounts have been eliminated in consolidation. | |
Results for the three and nine months ended September 30, 2013 include out of period adjustments related to prior quarters and years, which decreased pre-tax loss by approximately $10.8 million, and $13.3 million, respectively, and decreased after-tax loss by approximately $7.0 million and $15.0 million, respectively. The pre-tax out of period adjustments for the three and nine months ended September 30, 2013, primarily relate to (i) a $18.6 million and a $19.5 million decrease, respectively, to pre-tax loss due to favorable adjustments to interest expense to correct and fully align amortization of deferred debt issue costs and debt discounts in prior periods with the effective interest method; (ii) a $6.1 million and a $2.5 million increase, respectively, to pre-tax loss to correctly reflect legal expenses previously paid by AIG on our behalf; and (iii) a $5.1 million and a $5.5 million increase, respectively, to pre-tax loss to correct lease revenue to fully align amortization of prepaid lease costs on certain leases with early termination options. After-tax results for the nine months ended September 30, 2013, were also favorably impacted by $8.3 million for the reversal of IRS audit interest expense amounts in the first quarter of 2013 that were incorrectly recognized in the fourth quarter 2011 tax provision. Management has determined, after evaluating the quantitative and qualitative aspects of these out of period adjustments, both individually and in the aggregate, that our current and prior period financial statements and our projected 2013 annual results are not materially misstated. | |
In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods presented have been included. Certain reclassifications have been made to the 2012 unaudited, condensed, consolidated financial statements to conform to the 2013 presentation. Operating results for the three and nine months ended September 30, 2013, are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. These statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2012. | |
On December 9, 2012, AIG, AIG Capital Corporation, a wholly owned direct subsidiary of AIG and the sole shareholder of us (the "Seller"), and Jumbo Acquisition Limited (the "Purchaser") entered into a definitive agreement (the "Share Purchase Agreement") for the sale of 80.1% of our common stock for approximately $4.2 billion in cash. The Share Purchase Agreement permits the Purchaser to elect to purchase an additional 9.9% of our common stock for $522.5 million (the "Option"). On June 15, 2013, AIG, Seller and Purchaser entered into an amendment (the "Amendment") to the Share Purchase Agreement, as amended by Amendment No. 1, dated May 10, 2013. The Amendment extended to July 31, 2013, the date on which any of AIG, Seller or Purchaser may terminate the Share Purchase Agreement, as amended, if the closing of the transaction had not yet occurred. Under the Amendment, AIG and Seller may pursue (but not enter into definitive documentation for, or consummate) other offers for us and may continue to pursue (but not engage in widespread solicitation of orders for, or request effectiveness of) the alternative of a public offering. | |
On July 15, 2013, the Purchaser delivered notice that it intended to exercise the Option, raising the size of the total purchase to 90.0% of our common stock. | |
As of November 12, 2013, the closing of the transaction had not occurred. As a result, no assurance can be given that the Share Purchase Agreement will not be terminated. AIG continues to consider us as a non-core business and is continuing to pursue other options for us, including an alternative sale or an initial public offering. | |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
B. Recent Accounting Pronouncements | |
Adoption of Recent Accounting Guidance: | |
Presentation of Comprehensive Income | |
In February 2013, the FASB issued an accounting standard requiring us to disclose the effect of reclassifying significant items out of Accumulated other comprehensive income on the respective line items of net income or to provide a cross-reference to other disclosures currently required under GAAP. | |
We adopted the guidance on January 1, 2013, when it became effective. The adoption had no impact on our financial condition, results of operations or cash flows. However, due to adoption, we have included additional disclosures for items reclassified out of AOCI in Note Q—Accumulated Other Comprehensive (Loss) Income. | |
Disclosures about Offsetting Assets and Liabilities | |
In February 2013, the FASB issued an accounting standard that clarifies the scope of transactions subject to disclosures about offsetting assets and liabilities. The guidance applies to financial instruments and derivative instruments that are offset either in accordance with specific criteria contained in FASB Accounting Standards Codification or subject to a master netting arrangement or similar agreement. This guidance was effective January 1, 2013, and required retrospective application. The adoption of this guidance had no effect on our consolidated financial statements, results of operations or cash flows, and we did not include additional disclosures because all of our derivatives were in liability positions. | |
Inclusion of the Fed Funds Effective Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes | |
In July 2013, the FASB issued an accounting standard that permits the Federal Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes in addition to US Treasury rates and LIBOR. The standard also removes the prohibition on using different benchmark rates for similar hedges. This standard became effective on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013 to the extent the Federal Funds Effective Swap Rate is used as a benchmark rate for hedge accounting purposes. We adopted this standard on its required effective date of July 17, 2013. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Future Application of Accounting Guidance: | |
Presentation of Unrecognized Tax Benefits | |
In July 2013, the FASB issued an accounting standard that requires a liability related to unrecognized tax benefits to be presented as a reduction to the related deferred tax asset for a net operating loss carryforward or a tax credit carryforward (the "Carryforwards"). When the Carryforwards are not available at the reporting date under the tax law of the jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax assets. This standard is effective for fiscal years and interim periods beginning after December 15, 2013, but earlier adoption is permitted. Upon adoption, the standard must be applied prospectively to unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. We plan to adopt the standard prospectively on the required effective date of January 1, 2014 and are currently assessing the impact of adopting the standard on our consolidated financial statements. | |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
C. Income Taxes | |
Our effective tax rate for the nine months ended September 30, 2013 was affected by a $7.5 million interest refund allocation from AIG related to IRS audit adjustments, which had a beneficial impact to our effective tax rate and was discretely recorded for the nine months ended September 30, 2013. Our effective tax rate for the three months ended September 30, 2013 was affected by minor permanent items and interest accrued on uncertain tax positions and IRS audit adjustments. Our effective tax rate for the nine months ended September 30, 2012 was beneficially impacted due to a May 2012 decision granted in favor of a taxpayer whereby the Federal Court of Claims held that in calculating the gain realized upon the sale of an asset under the Foreign Sales Corporation regime, the asset's adjusted tax basis should not be reduced by the amount of disallowed depreciation deductions allocable to tax-exempt foreign trade income. Based upon the decision reached in the case, we have adjusted our tax basis in certain flight equipment and recorded an income tax benefit of approximately $588 million and a corresponding reserve of $425.4 million for uncertain tax positions, resulting in a net tax benefit of $162.6 million in the nine months ended September 30, 2012. | |
Restricted_Cash
Restricted Cash | 9 Months Ended |
Sep. 30, 2013 | |
Restricted Cash | ' |
Restricted Cash | ' |
D. Restricted Cash | |
Restricted cash of $420.9 million and $695.4 million at September 30, 2013 and December 31, 2012, respectively, consisted primarily of cash that is restricted under our ECA facility agreement entered into in 2004 and the Ex-Im financing. See Note J—Debt Financings. | |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Related Party Transactions | ' | |||||||||||||
Related Party Transactions | ' | |||||||||||||
E. Related Party Transactions | ||||||||||||||
Related Party Allocations and Fees: We are party to cost sharing agreements, including tax, with AIG. Generally, these agreements provide for the allocation of corporate costs based upon a proportional allocation of costs to all subsidiaries. Our management believes the proportionate method used to allocate corporate costs is reasonable. It is not practicable to determine what the amounts of those expenses would have been had we operated on a stand-alone basis. We also pay other subsidiaries of AIG a fee related to management services provided for certain of our foreign subsidiaries and we continue to earn management fees from two trusts consolidated by AIG for the management of aircraft we sold to the trusts in prior years. We are included in the consolidated federal income tax return of AIG as well as certain state tax returns where AIG files on a combined/unitary basis. Settlement with AIG for taxes are determined in accordance with our tax sharing agreements. | ||||||||||||||
Dividends and Capital Contribution: We transferred two corporate aircraft with a combined net book value of $37.3 million to AIG during the year ended December 31, 2012. The transaction was recorded in Retained earnings as a dividend of $25.4 million, net of taxes of $11.9 million. We also received one corporate aircraft from AIG and we recorded $16.7 million, net of taxes of $9.2 million, in Lease receivables and other assets and as a capital contribution in Paid-in capital to reflect the transaction. | ||||||||||||||
Expenses Paid by AIG on Our Behalf: We recorded $3.7 million and $2.6 million in Additional paid in capital for the nine months ended September 30, 2013 and the year ended December 31, 2012, respectively, for compensation, legal fees and other expenses paid by AIG on our behalf for which we were not required to reimburse. | ||||||||||||||
Derivatives and Insurance Premiums: The counterparty of all of our interest rate swap agreements as of September 30, 2013, was AIG Markets, Inc., a wholly-owned subsidiary of AIG. See Note N—Fair Value Measurements and Note O—Derivative Financial Instruments. In addition, we purchase insurance through a broker who may place part of our policies with AIG. Total insurance premiums were $6.2 million and $8.3 million for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
Our financial statements include the following amounts involving related parties: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
Income Statement | September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Expense (income): | ||||||||||||||
Effect from derivative contracts with AIG Markets, Inc.(a) | $ | 294 | $ | 301 | $ | 889 | $ | 911 | ||||||
Interest on derivative contracts with AIG Markets, Inc. | 2,844 | 4,173 | 9,547 | 13,851 | ||||||||||
Corporate costs from AIG, including allocations(b) | 11,538 | 3,904 | 27,636 | 18,451 | ||||||||||
Interest on time deposit account with AIG Markets(c) | (775 | ) | (1,059 | ) | (2,400 | ) | (2,702 | ) | ||||||
Management fees received | (2,261 | ) | (2,219 | ) | (6,444 | ) | (6,683 | ) | ||||||
Management fees paid to subsidiaries of AIG | — | 40 | 126 | 156 | ||||||||||
Balance Sheet | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Asset (liability): | ||||||||||||||
Time deposit account with AIG Markets(c) | $ | 1,106,003 | $ | 1,103,591 | ||||||||||
Derivative liabilities(a) | (10,379 | ) | (20,933 | ) | ||||||||||
Current income taxes and other tax liabilities to AIG(d) | (286,630 | ) | (299,333 | ) | ||||||||||
Accrued corporate costs payable to AIG | (23,800 | ) | (20,969 | ) | ||||||||||
Equity increase (decrease): | ||||||||||||||
Aircraft transfer to AIG, net of tax of $11,866 (2012) | — | (25,379 | ) | |||||||||||
Aircraft contribution from AIG, net of tax of $9,211 (2012) | — | 16,690 | ||||||||||||
Expenses paid by AIG on our behalf(e) | 3,675 | 2,636 | ||||||||||||
(a) | ||||||||||||||
See Note O—Derivative Financial Instruments for all derivative transactions. | ||||||||||||||
(b) | ||||||||||||||
Amounts for the three and nine months ended September 30, 2013 include $6.1 million and $2.5 million, respectively, of legal expenses paid by AIG on our behalf in prior periods. See Note A of Notes to Condensed, Consolidated Financial Statements. | ||||||||||||||
(c) | ||||||||||||||
We have a 30-day interest bearing time deposit account with AIG Markets, Inc., all of which is available for use in our operations. If we request that funds be made available to us prior to the maturity date of the time deposit, we may have to pay a breakage fee to AIG Markets, Inc. | ||||||||||||||
(d) | ||||||||||||||
We made no payment during the nine months ended September 30, 2013, and paid approximately $1.7 million to AIG for an ILFC tax liability during the year ended December 31, 2012. | ||||||||||||||
(e) | ||||||||||||||
Amount as of September 30, 2013 includes the after-tax impact of a $2.5 million adjustment to correctly reflect legal expenses paid by AIG on our behalf prior to 2013. See Note A of Notes to Condensed, Consolidated Financial Statements. | ||||||||||||||
Other_Income
Other Income | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Income | ' | |||||||||||||
Other Income | ' | |||||||||||||
F. Other Income | ||||||||||||||
Other income was comprised of the following at the respective dates: | ||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
AeroTurbine revenue | ||||||||||||||
Engines, airframes, parts and supplies | $ | 78,955 | $ | 81,267 | $ | 233,974 | $ | 226,261 | ||||||
Cost of sales | (70,022 | ) | (67,915 | ) | (201,097 | ) | (191,636 | ) | ||||||
8,933 | 13,352 | 32,877 | 34,625 | |||||||||||
Interest and Other | 14,234 | 20,737 | 63,392 | 47,223 | ||||||||||
Total | $ | 23,167 | $ | 34,089 | $ | 96,269 | $ | 81,848 | ||||||
Aircraft_Impairment_Charges_on
Aircraft Impairment Charges on Flight Equipment Held for Use | 9 Months Ended |
Sep. 30, 2013 | |
Aircraft Impairment Charges on Flight Equipment Held for Use | ' |
Aircraft Impairment Charges on Flight Equipment Held for Use | ' |
G. Aircraft Impairment Charges on Flight Equipment Held for Use | |
Management evaluates quarterly the need to perform a recoverability assessment of aircraft in our fleet considering the requirements under GAAP and performs this assessment at least annually for all aircraft in our fleet. Recurring recoverability assessments are performed whenever events or changes in circumstances indicate that the carrying amount of our aircraft may not be fully recoverable, which may require us to change our assumptions related to future estimated cash flows. Some of these events or changes in circumstances may include potential disposals of aircraft, changes in contracted lease terms, changes in the status of an aircraft as leased, re-leased, or not subject to lease, repossessions of aircraft, changes in portfolio strategies, changes in demand for a particular aircraft type and changes in economic and market circumstances. Any of these events are considered when they occur before our financial statements are issued, including lessee bankruptcies occurring subsequent to the balance sheet date. | |
During the three and nine months ended September 30, 2013, we recorded impairment charges of $1.1 billion relating to 36 aircraft and $1.1 billion relating to 40 aircraft, respectively. During the three months ended September 30, 2013, we concluded that the net book values of certain four-engine widebody aircraft in our fleet were no longer supportable based upon the latest cash flow estimates because the estimated holding periods are not likely to be as long as previously anticipated. The increasing number of aircraft operators looking to completely or partially replace their Airbus A340s and Boeing 747s is expected to increase the available supply of these aircraft types and diminish future lease placement opportunities. Sustained high fuel prices, the introduction of more fuel-efficient aircraft, and the success of competing aircraft models have resulted in a shrinking operator base for these aircraft types. These factors along with the latest updates to airline fleet plans and recent efforts to remarket these aircraft have informed our conclusions as of September 30, 2013. Approximately $1.0 billion of the $1.1 billion in impairment charges recorded in the three months ended September 30, 2013, resulted from the four-engine widebody aircraft and in particular the Airbus A340-600s, which has a limited operator base. | |
In connection with our recoverability assessment performed at September 30, 2013, we re-assessed the estimated holding period for certain aircraft types and, as a result, we changed the estimated useful life of 55 aircraft in our fleet, including 32 aircraft that were impaired during the three months ended September 30, 2013. In the fourth quarter of 2013, we will start depreciating these 55 aircraft using the straight-line method over the estimated remaining revised useful lives. This change will accelerate the overall depreciation expense on these 55 aircraft but will be partially offset by the reduction in the carrying values of the 32 aircraft for which impairment charges were recorded during the three months ended September 30, 2013. As a result, we estimate that our depreciation expense for these 55 aircraft will increase by approximately $7 million for the three months ended December 31, 2013, as compared to the three months ended September 30, 2013. We estimate an increase in depreciation expense for the year ended December 31, 2014 of approximately $23 million for these 55 aircraft. Beginning in 2015, our depreciation expense for these 55 aircraft is expected to decrease as these aircraft begin to reach the end of their respective holding periods. | |
During the three and nine months ended September 30, 2012, we recorded impairment charges of $61.2 million relating to six aircraft (including one aircraft that had previously been impaired) and $102.7 million relating to ten aircraft (including one aircraft that had previously been impaired), respectively. These impairment charges were as a result of our recurring recoverability assessments. | |
Aircraft_Impairment_Charges_an
Aircraft Impairment Charges and Fair Value Adjustments on Flight Equipment Sold or to be Disposed | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Aircraft Impairment Charges and Fair Value Adjustments on Flight Equipment Sold or to be Disposed | ' | |||||||||||||||||||||||||
Aircraft Impairment Charges and Fair Value Adjustments on Flight Equipment Sold or to be Disposed | ' | |||||||||||||||||||||||||
H. Aircraft Impairment Charges and Fair Value Adjustments on Flight Equipment Sold or to be Disposed | ||||||||||||||||||||||||||
From time to time we will dispose of aircraft from our fleet held for use prior to the conclusion of their useful life through either a sale or part-out. If management determines that it is more likely than not that an aircraft will be disposed of through either a sale or part-out, a recoverability assessment is performed, and if impaired, the aircraft is recorded at the lower of fair market value or its current carrying value, with any necessary adjustments recorded in our Condensed, Consolidated Statements of Operations. Further, if the aircraft meets the criteria to be classified as Flight equipment held for sale, we reclassify the aircraft from Flight equipment into Flight equipment held for sale (subsequent to recording any necessary impairment charges or fair value adjustments). | ||||||||||||||||||||||||||
We reported the following impairment charges and fair value adjustments on flight equipment sold or to be disposed: | ||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Aircraft | Impairment | Aircraft | Impairment | Aircraft | Impairment | Aircraft | Impairment | |||||||||||||||||||
Impaired or | Charges and | Impaired or | Charges and | Impaired or | Charges and | Impaired or | Charges and | |||||||||||||||||||
Adjusted | Fair Value | Adjusted | Fair Value | Adjusted | Fair Value | Adjusted | Fair Value | |||||||||||||||||||
Adjustments | Adjustments | Adjustments | Adjustments | |||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||
Impairment charges and fair value adjustments on aircraft likely to be sold or sold (including sales-type leases) | 3 | $ | 8.5 | 5 | $ | 5.2 | 18 | $ | 87.3 | (a) | 9 | (b) | $ | 43 | ||||||||||||
Fair value adjustments on held for sale aircraft sold or transferred from held for sale back to flight equipment(c) | — | — | 4 | 4.1 | — | — | 4 | 4.1 | ||||||||||||||||||
Impairment charges on aircraft intended to be or designated for part-out | 6 | 49 | (d) | 6 | 26.6 | (d) | 19 | (e) | 97.8 | (d) | 10 | 41 | (d) | |||||||||||||
Total Impairment charges and fair value adjustments on flight equipment | 9 | $ | 57.5 | 15 | $ | 35.9 | 37 | $ | 185.1 | 23 | $ | 88.1 | ||||||||||||||
(a) | ||||||||||||||||||||||||||
Includes charges relating to 11 aircraft that met the criteria to be classified as Flight equipment held for sale, and were reclassified from Flight equipment into Flight equipment held for sale. During the nine months ended September 30, 2013, 10 of these aircraft were sold to a third party. | ||||||||||||||||||||||||||
(b) | ||||||||||||||||||||||||||
One of the nine aircraft was impaired twice during the nine months ended September 30, 2012. | ||||||||||||||||||||||||||
(c) | ||||||||||||||||||||||||||
Included in these amounts are net fair value credit adjustments related to aircraft previously held for sale, which currently no longer meet such criteria and were subsequently reclassified to Flight equipment. Also included in these amounts are fair value credit adjustments for sales price adjustments related to aircraft that were previously held for sale and sold during the periods presented. | ||||||||||||||||||||||||||
(d) | ||||||||||||||||||||||||||
Includes charges relating to two engines for the three months ended September 30, 2013, and nine engines for the same period in 2012 and six engines for the nine months ended September 30, 2013 and 13 engines for the same period in 2012. | ||||||||||||||||||||||||||
(e) | ||||||||||||||||||||||||||
One of the 19 aircraft was impaired twice during the nine months ended September 30, 2013. | ||||||||||||||||||||||||||
Lease_Receivables_and_Other_As
Lease Receivables and Other Assets | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Lease Receivables and Other Assets | ' | |||||||
Lease Receivables and Other Assets | ' | |||||||
I. Lease Receivables and Other Assets | ||||||||
Lease receivables and other assets consisted of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
Lease receivables | $ | 209,657 | $ | 199,694 | ||||
AeroTurbine Inventory | 200,508 | 149,390 | ||||||
Lease incentive costs, net of amortization | 175,956 | 128,616 | ||||||
Straight-line rents and other assets | 203,308 | 226,609 | ||||||
Goodwill and Other intangible assets(a) | 46,778 | 48,887 | ||||||
Notes and trade receivables, net of allowance(b) | 18,098 | 23,181 | ||||||
Derivative assets(c) | — | 54 | ||||||
$ | 854,305 | $ | 776,431 | |||||
(a) | ||||||||
Goodwill and Other intangible assets relate to our acquisition of AeroTurbine. | ||||||||
(b) | ||||||||
Notes receivable are primarily from the sale of flight equipment and are fixed with varying interest rates from 2.0% to 10.5%. | ||||||||
(c) | ||||||||
See Note O—Derivative Financial Instruments. | ||||||||
We had the following activity in our allowance for credit losses on notes receivable during the year ended December 31, 2012: | ||||||||
(Dollars in thousands) | ||||||||
Balance at December 31, 2011 | $ | 41,396 | ||||||
Provision | (9,727 | ) | ||||||
Write-offs | (31,669 | ) | ||||||
Balance at December 31, 2012 | $ | — | ||||||
During the nine months ended September 30, 2013, we did not have any activity in our allowance for credit losses on notes receivable. | ||||||||
Debt_Financings
Debt Financings | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Debt Financings | ' | ||||||||||
Debt Financings | ' | ||||||||||
J. Debt Financings | |||||||||||
Our debt financing was comprised of the following at the respective dates: | |||||||||||
September 30, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
(Dollars in thousands) | |||||||||||
Secured | |||||||||||
Senior secured bonds | $ | 3,900,000 | $ | 3,900,000 | |||||||
ECA and Ex-Im financings | 1,828,648 | 2,193,229 | |||||||||
Secured bank debt(a) | 1,808,227 | 1,961,143 | |||||||||
Institutional secured term loans | 750,000 | 1,450,000 | |||||||||
Less: Deferred debt discount(b) | (5,398 | ) | (15,125 | ) | |||||||
8,281,477 | 9,489,247 | ||||||||||
Unsecured | |||||||||||
Bonds and medium-term notes | 13,025,538 | 13,890,747 | |||||||||
Less: Deferred debt discount(b) | (33,712 | ) | (37,207 | ) | |||||||
12,991,826 | 13,853,540 | ||||||||||
Total Senior Debt Financings | 21,273,303 | 23,342,787 | |||||||||
Subordinated Debt | 1,000,000 | 1,000,000 | |||||||||
$ | 22,273,303 | $ | 24,342,787 | ||||||||
(a) | |||||||||||
Of this amount, $177.9 million (2013) and $270.5 million (2012) is non-recourse to ILFC. These secured financings were incurred by VIEs and consolidated into our Condensed, Consolidated Financial Statements. Amounts include $334.5 million (2013) and $260.0 million (2012) outstanding under AeroTurbine's revolving credit facility. | |||||||||||
(b) | |||||||||||
During the three months ended September 30, 2013, we recorded an $18.6 million adjustment to correct and fully align amortization of deferred debt issue costs and debt discounts in prior periods with the effective interest method, of which $4.0 million related to debt discounts and is reflected herein. See Note A of Notes to Condensed, Consolidated Financial Statements. | |||||||||||
The following table presents information regarding the collateral pledged for our secured debt: | |||||||||||
As of September 30, 2013 | |||||||||||
Debt | Net Book | Number of | |||||||||
Outstanding | Value of Collateral | Aircraft | |||||||||
(Dollars in thousands) | |||||||||||
Senior secured bonds | $ | 3,900,000 | $ | 5,962,533 | 174 | ||||||
ECA and Ex-Im Financings | 1,828,648 | 5,015,092 | 118 | ||||||||
Secured bank debt | 1,808,227 | 2,622,782 | (a) | 61 | (a) | ||||||
Institutional secured term loans | 750,000 | 1,303,763 | 52 | ||||||||
Total | $ | 8,286,875 | $ | 14,904,170 | 405 | ||||||
(a) | |||||||||||
Amounts represent the net book value of collateral and number of aircraft securing ILFC secured bank term debt. Amounts do not include assets securing AeroTurbine's secured revolving credit facility. AeroTurbine's credit facility, under which $334.5 million was drawn as of September 30, 2013, is secured by substantially all of the assets of AeroTurbine and its subsidiary guarantors. | |||||||||||
Senior Secured Bonds | |||||||||||
On August 20, 2010, we issued $3.9 billion of senior secured notes, with $1.35 billion maturing in September 2014 and bearing interest of 6.5%, $1.275 billion maturing in September 2016 and bearing interest of 6.75%, and $1.275 billion maturing in September 2018 and bearing interest of 7.125%. The notes are secured by a designated pool of aircraft, initially consisting of 174 aircraft, together with the attached leases and all related equipment, and cash collateral when required. In addition, two of our subsidiaries, which either own or hold leases attached to the aircraft included in the pool securing the notes, have guaranteed the notes. We can redeem the notes at any time prior to their maturity, provided we give notice between 30 to 60 days prior to the intended redemption date and subject to a penalty of the greater of 1% of the outstanding principal amount and a "make-whole" premium. There is no sinking fund for the notes. | |||||||||||
The indenture and the aircraft mortgage and security agreement governing the senior secured notes contain customary covenants that, among other things, restrict our and our restricted subsidiaries' ability to: (i) create liens; (ii) sell, transfer or otherwise dispose of the assets serving as collateral for the senior secured notes; (iii) declare or pay dividends or acquire or retire shares of our capital stock during certain events of default; (iv) designate restricted subsidiaries as non-restricted subsidiaries or designate non-restricted subsidiaries; and (v)make investments in or transfer assets to non-restricted subsidiaries. The indenture also restricts our and the subsidiary guarantors' ability to consolidate, merge, sell or otherwise dispose of all, or substantially all, of our assets. | |||||||||||
The indenture provides for customary events of default, including but not limited to, the failure to pay scheduled principal and interest payments on the notes, the failure to comply with covenants and agreements specified in the indenture, the acceleration of certain other indebtedness resulting from non-payment of that indebtedness, and certain events of insolvency. If any event of default occurs, any amount then outstanding under the senior secured notes may immediately become due and payable. | |||||||||||
ECA Financings | |||||||||||
We entered into ECA facility agreements in 1999 and 2004 through certain direct and indirect wholly owned subsidiaries that have been designated as non-restricted subsidiaries under our indentures. The 1999 and 2004 ECA facilities were used to fund purchases of Airbus aircraft through 2001 and June 2010, respectively. Each aircraft purchased was financed by a ten-year fully amortizing loan. New financings are no longer available to us under either ECA facility. | |||||||||||
As of September 30, 2013, approximately $1.6 billion was outstanding under the 2004 ECA facility and no loans were outstanding under the 1999 ECA facility. The interest rates on the loans outstanding under the 2004 ECA facility are either fixed or based on LIBOR and ranged from 0.353% to 4.711% at September 30, 2013. The net book value of the aircraft purchased under the 2004 ECA facility was $3.6 billion at September 30, 2013. The loans are guaranteed by various European ECAs. We have collateralized the debt with pledges of the shares of wholly owned subsidiaries that hold title to the aircraft financed under the facilities. The 2004 ECA facility contains customary events of default and restrictive covenants. | |||||||||||
The 2004 ECA facility requires us to segregate security deposits, overhaul rentals and rental payments received under the leases related to the aircraft funded under the 2004 ECA facility (segregated rental payments are used to make scheduled principal and interest payments on the outstanding debt). The segregated funds are deposited into separate accounts pledged to and controlled by the security trustee of the 2004 ECA facility. At September 30, 2013 and December 31, 2012, respectively, we had segregated security deposits, overhaul rentals and rental payments aggregating $404.7 million and $405.4 million related to aircraft funded under the 2004 ECA facility. The segregated amounts fluctuate with changes in security deposits, overhaul rentals, rental payments and principal and interest payments related to the aircraft funded under the 2004 ECA facility. In addition, if a default resulting in an acceleration of the obligations under the 2004 ECA facility were to occur, pursuant to the cross-collateralization agreement described below, we would have to segregate lease payments, overhaul rentals and security deposits received after such acceleration event occurred from the leases relating to the aircraft funded under the 1999 ECA facility that remain as collateral, even though those aircraft are no longer subject to a loan at September 30, 2013. | |||||||||||
In addition, we must register the existing individual mortgages on certain aircraft funded under both the 1999 and 2004 ECA facilities in the local jurisdictions in which the respective aircraft are registered. The mortgages are only required to be filed with respect to aircraft that have outstanding loan balances or otherwise as agreed in connection with the cross-collateralization agreement described below. | |||||||||||
We have cross-collateralized the 1999 ECA facility with the 2004 ECA facility. As part of such cross-collateralization, we (i) guarantee the obligations under the 2004 ECA facility through our subsidiary established to finance Airbus aircraft under the 1999 ECA facility; (ii) granted mortgages over certain aircraft financed under the 1999 ECA facility and security interests over other collateral related to the aircraft financed under the 1999 ECA facility to secure the guaranty obligation; (iii) have to maintain a loan-to-value ratio (aggregating the aircraft from the 1999 ECA facility and the 2004 ECA facility) of no more than 50% in order to release liens (including the liens incurred under the cross-collateralization agreement) on any aircraft financed under the 1999 or 2004 ECA facilities or other assets related to the aircraft; and (iv) agreed to apply proceeds generated from certain disposals of aircraft to obligations under the 2004 ECA facility. | |||||||||||
On May 8, 2013, we amended our 2004 ECA facility, effective immediately, to remove the minimum consolidated tangible net worth covenant. In addition, the amendment made permanent the requirement to segregate funds and to register individual mortgages in local jurisdictions. Prior to the amendment, this requirement would have fallen away if our long-term debt ratings rose above a certain level. | |||||||||||
Ex-Im Financings | |||||||||||
On December 19, 2012, we issued through a consolidated entity pre-funded amortizing notes with an aggregate principal amount of $287.0 million. The notes mature in January 2025 and scheduled principal payments commenced in April 2013. The notes are guaranteed by the Export-Import Bank of the United States and bear interest at a rate per annum equal to 1.492%. The funds were being held in a restricted cash account at December 31, 2012. During the nine months ended September 30, 2013, we used the proceeds from the notes to finance two Boeing 777-300ER aircraft, which serve as collateral for the notes. | |||||||||||
Secured Bank Debt | |||||||||||
2011 Secured Term Loan: On March 30, 2011, one of our indirect, wholly owned subsidiaries entered into a secured term loan agreement with lender commitments in the amount of approximately $1.3 billion, which was subsequently increased to approximately $1.5 billion. As of September 30, 2013, approximately $1.3 billion was outstanding under this agreement. The loan matures on March 30, 2018, and scheduled principal payments commenced in June 2012. The loan bears interest at LIBOR plus a margin of 2.75%, or, if applicable, a base rate plus a margin of 1.75%. The obligations of the subsidiary borrower are guaranteed on an unsecured basis by ILFC and on a secured basis by certain wholly owned subsidiaries of the subsidiary borrower. The security granted includes a portfolio of 54 aircraft, together with the attached leases and all related equipment, and the equity interests in certain SPEs that own the pledged aircraft, attached leases and related equipment. The 54 aircraft had an initial aggregate appraised value, as defined in the loan agreement, of approximately $2.4 billion, which equaled a loan-to-value ratio of approximately 65%. The subsidiary borrower, subsidiary guarantors and SPEs have been designated as non-restricted subsidiaries under our indentures. | |||||||||||
The subsidiary borrower is required to maintain compliance with a maximum loan-to-value ratio, which declines over time, as set forth in the term loan agreement. If the subsidiary borrower does not maintain compliance with the maximum loan-to-value ratio, it will be required to prepay portions of the outstanding loans, deposit an amount in the cash collateral account or transfer additional aircraft to the SPEs, subject to certain concentration criteria, so that the ratio is equal to or less than the maximum loan-to-value ratio. | |||||||||||
The subsidiary borrower can voluntarily prepay the loan at any time. The loan facility contains customary covenants and events of default, including covenants that limit the ability of the subsidiary borrower and its subsidiaries to incur additional indebtedness and create liens, and covenants that limit the ability of ILFC, the subsidiary borrower and its subsidiaries to consolidate, merge or dispose of all or substantially all of their assets and enter into transactions with affiliates. | |||||||||||
AeroTurbine Revolving Credit Agreement: AeroTurbine has a credit facility that expires on December 9, 2015 and, after the most recent amendment on February 23, 2012, provides for a maximum aggregate available amount of $430 million, subject to availability under a borrowing base calculated based on AeroTurbine's aircraft assets and accounts receivable. AeroTurbine has the option to increase the aggregate amount available under the facility by an additional $70 million, either by adding new lenders or allowing existing lenders to increase their commitments if they choose to do so. Borrowings under the facility bear interest determined, with certain exceptions, based on LIBOR plus a margin of 3.0%. AeroTurbine's obligations under the facility are guaranteed by ILFC on an unsecured basis and by AeroTurbine's subsidiaries (subject to certain exclusions) and are secured by substantially all of the assets of AeroTurbine and its subsidiary guarantors. The credit agreement contains customary events of default and covenants, including certain financial covenants. Additionally, the credit agreement imposes limitations on AeroTurbine's ability to pay dividends to us (other than dividends payable solely in common stock). As of September 30, 2013, AeroTurbine had approximately $335 million outstanding under the facility. | |||||||||||
Secured Commercial Bank Financings: In May 2009, ILFC provided $39.0 million of subordinated financing to an indirect, wholly owned subsidiary that had been designated as non-restricted under our indentures. The entity used these funds and an additional $106.0 million borrowed from third parties to purchase an aircraft, which it leases to an airline. The loans had original maturity dates in May 2018 with interest rates based on LIBOR. On January 16, 2013, the subsidiary repaid both loans in full. In connection with the prepayment of these loans, we recognized losses aggregating $1.7 million from the write off of unamortized deferred financing costs. | |||||||||||
In June 2009, we borrowed $55.4 million through an indirect, wholly owned subsidiary that had been designated as non-restricted under our indentures and that owns one aircraft leased to an airline. The loan partly amortized over five years with the remaining $27.5 million originally due in 2014, and the interest rate was fixed at 6.58%. On March 20, 2013, we repaid the loan in full. In connection with the prepayment of this loan, we recognized losses aggregating $0.8 million from the write off of unamortized deferred financing costs. | |||||||||||
In March 2012, one of our indirect, wholly owned subsidiaries that had been designated as non-restricted under our indentures entered into a $203 million term loan facility that was used to finance seven Boeing 737-800s. The principal of each senior loan issued under the facility will partially amortize over six years, with the remaining principal payable at the maturity date. At September 30, 2013, approximately $178 million was outstanding and the average interest rate on the loans was 4.73%. The loans are non-recourse to ILFC except under limited circumstances and are secured by the purchased aircraft and lease receivables. The subsidiary borrower can voluntarily prepay the loans at any time subject to a 2% prepayment fee prior to March 30, 2014 and a 1% prepayment fee between March 30, 2014 and March 30, 2015. On March 29, 2013, we amended certain financial covenants under our $203 million term loan facility. The subsidiary borrower under the $203 million term loan facility is prohibited from: (i) incurring additional debt; (ii) incurring additional capital expenditures; (iii) hiring employees; and (iv) negatively pledging the assets securing the facility. | |||||||||||
Institutional Secured Term Loans | |||||||||||
In 2012, we entered into the following term loans: | |||||||||||
• | |||||||||||
Secured Term Loan 2012-1: On February 23, 2012, one of our indirect, wholly owned subsidiaries that had been designated as non-restricted under our indentures entered into a secured term loan agreement in the amount of $900 million. The loan matures on June 30, 2017, and initially bore interest at LIBOR plus a margin of 4.0% with a 1.0% LIBOR floor, or, if applicable, a base rate plus a margin of 3.0%. On April 5, 2013, we amended this secured term loan and simultaneously prepaid $150 million of the outstanding principal amount. In connection with the partial prepayment of this secured term loan, we recognized losses aggregating approximately $2.9 million from the write-off of unamortized deferred financing costs. The remaining outstanding principal amount of $750 million now bears interest at an annual rate of LIBOR plus 2.75%, with a LIBOR floor of 0.75%, or, if applicable, a base rate plus a margin of 1.75%. The obligations of the subsidiary borrower are guaranteed on an unsecured basis by ILFC and on a secured basis by certain wholly owned subsidiaries of the subsidiary borrower. The security granted includes the equity interests in certain SPEs of the subsidiary borrower that have been designated as non-restricted under our indentures. The SPEs initially held title to 62 aircraft, together with the attached leases and all related equipment, with an aggregate appraised value, as defined in the loan agreement, of approximately $1.66 billion as of December 31, 2011, equaling an initial loan-to-value ratio of approximately 54%. After giving effect to the amendment, certain collateral that had served as security for the secured term loan was released. As of September 30, 2013, the SPEs collectively own a portfolio of 52 aircraft, together with the attached leases and all related equipment, with an aggregate appraised value of $1.27 billion, equaling a loan-to-value ratio of approximately 59%. The loan requires a loan-to-value ratio of no more than 63%. If the subsidiary borrower does not maintain compliance with the maximum loan-to-value ratio, it will be required to prepay a portion of the loan, deposit an amount in the cash collateral account or transfer additional aircraft to SPEs, subject to certain concentration criteria, so that the ratio is equal to or less than the maximum loan-to-value ratio. The principal of the loan is payable in full at maturity with no scheduled amortization. We can voluntarily prepay the loan at any time. The loan contains customary covenants and events of default, including covenants that limit the ability of the subsidiary borrower and its subsidiaries to incur additional indebtedness and create liens, and covenants that limit the ability of ILFC, the subsidiary borrower and its subsidiaries to consolidate, merge or dispose of all or substantially all of their assets and enter into transactions with affiliates. | |||||||||||
• | |||||||||||
Secured Term Loan 2012-2: On April 12, 2012, one of our indirect, wholly owned subsidiaries that had been designated as non-restricted under our indentures entered into a secured term loan agreement in the amount of $550 million. The loan had an original maturity date of April 12, 2016, and bore interest at LIBOR plus a margin of 3.75% with a 1% LIBOR floor. The obligations of the subsidiary borrower were guaranteed on an unsecured basis by ILFC and on a secured basis by certain wholly owned subsidiaries of the subsidiary borrower. We prepaid this loan in full on May 30, 2013, and in connection with the prepayment, we recognized losses aggregating approximately $12.3 million from the write-off of unamortized deferred discount and financing costs. | |||||||||||
Unsecured Bonds and Medium-Term Notes | |||||||||||
Shelf Registration Statement: We have an effective shelf registration statement filed with the SEC. We have an unlimited amount of debt securities registered for sale under the shelf registration statement. | |||||||||||
At September 30, 2013, we had issued unsecured notes with an aggregate principal amount outstanding of approximately $10.3 billion under our current and previous shelf registration statements, including $750 million of 3.875% notes due 2018 and $500 million of 4.625% notes due 2021, each issued in March 2013, and $550 million of floating rate notes due 2016, issued in May 2013. The floating rate notes bear interest at three-month LIBOR plus a margin of 1.95%, with the interest rate resetting quarterly, and at September 30, 2013, the interest rate was 2.204%. The debt securities outstanding under our shelf registration statements mature through 2022 and the fixed rate notes bear interest at rates that range from 3.875% to 8.875%. The notes are not subject to redemption prior to their stated maturity and there are no sinking fund requirements. | |||||||||||
Other Senior Notes: On March 22, 2010 and April 6, 2010, we issued a combined $1.25 billion aggregate principal amount of 8.625% senior notes due September 15, 2015, and $1.5 billion aggregate principal amount of 8.750% senior notes due March 15, 2017, pursuant to an indenture dated as of March 22, 2010. The notes are not subject to redemption prior to their stated maturity and there are no sinking fund requirements. | |||||||||||
The indentures governing our unsecured notes contain customary covenants that, among other things, restrict our, and our restricted subsidiaries', ability to (i) incur liens on assets; (ii) declare or pay dividends or acquire or retire shares of our capital stock during certain events of default; (iii) designate restricted subsidiaries as non-restricted subsidiaries or designate non-restricted subsidiaries; (iv) make investments in or transfer assets to non-restricted subsidiaries; and (v) consolidate, merge, sell, or otherwise dispose of all or substantially all of our assets. | |||||||||||
The indentures also provide for customary events of default, including but not limited to, the failure to pay scheduled principal and interest payments on the notes, the failure to comply with covenants and agreements specified in the indenture, the acceleration of certain other indebtedness resulting from non-payment of that indebtedness, and certain events of insolvency. If any event of default occurs, any amount then outstanding under the relevant indentures may immediately become due and payable. | |||||||||||
Unsecured Revolving Credit Agreement | |||||||||||
2012 Credit Facility: On October 9, 2012, we entered into a $2.3 billion three-year unsecured revolving credit facility with a group of 10 banks that expires on October 9, 2015. Our revolving credit facility provides for interest rates based on either a base rate or LIBOR plus a margin, currently 2.25%, determined by reference to our ratio of consolidated indebtedness to shareholders' equity. The credit agreement contains customary events of default and restrictive covenants that, among other things, limit our ability to incur liens and transfer or sell assets. The credit agreement also contains financial covenants that require us to maintain a minimum interest coverage ratio and a maximum ratio of consolidated indebtedness to shareholders' equity. As of September 30, 2013, we had not drawn on our revolving credit facility. | |||||||||||
On April 1, 2013, we amended certain financial covenants under our $2.3 billion three-year unsecured revolving credit facility, effective upon completion of the potential sale of our common stock to Jumbo Acquisition Limited. Following completion of this potential sale, we will apply purchase accounting which will adjust the carrying value of our assets and liabilities to their fair values at the time the sale closes. The amendments to the financial covenants are intended to prevent us from violating such covenants solely as a result of the application of purchase accounting. | |||||||||||
Subordinated Debt | |||||||||||
In December 2005, we issued two tranches of subordinated debt totaling $1.0 billion. Both tranches mature on December 21, 2065. The $400 million tranche has a call option date of December 21, 2015. We can call the $600 million tranche at any time. The interest rate on the $600 million tranche is a floating rate with a margin of 1.55% plus the highest of (i) 3-month LIBOR; (ii) 10-year constant maturity treasury; and (iii) 30-year constant maturity treasury. The interest rate resets quarterly and at September 30, 2013, the interest rate was 5.35%. The $400 million tranche has a fixed interest rate of 6.25% until the 2015 call option date, and if we do not exercise the call option, the interest rate will change to a floating rate, reset quarterly, based on a margin of 1.80% plus the highest of (i) 3-month LIBOR; (ii) 10-year constant maturity treasury; and (iii) 30-year constant maturity treasury. If we choose to redeem the $600 million tranche, we must pay 100% of the principal amount of the bonds being redeemed, plus any accrued and unpaid interest to the redemption date. If we choose to redeem only a portion of the outstanding bonds, at least $50 million principal amount of the bonds must remain outstanding. | |||||||||||
Under the terms of the subordinated debt, failure to comply with financial tests requiring a minimum ratio of equity to total managed assets and a minimum fixed charge coverage ratio will result in a "mandatory trigger event". If a mandatory trigger event occurs and we are unable to raise sufficient capital through capital contributions from AIG or the sale of our stock (in the manner permitted by the terms of the subordinated debt) to cover the next interest payment on the subordinated debt, a "mandatory deferral event" will occur. If a mandatory deferral event occurs, we would be required to defer all interest payments on the subordinated debt and be prohibited from paying cash dividends on our capital stock (including our market auction preferred stock) until we are in compliance with both financial tests or have raised sufficient capital to pay all accumulated and unpaid interest on the subordinated debt. Mandatory trigger events and mandatory deferral events are not events of default under the indenture governing the subordinated debt. | |||||||||||
On July 25, 2013, we amended the financial tests in both tranches of subordinated debt after a majority of the holders of the subordinated debt consented to such amendments. The financial tests were amended by (i) replacing the definition of "Tangible Equity Amount" used in calculating our ratio of equity to total managed assets with a definition for "Total Equity Amount" that does not exclude intangible assets from our total stockholders' equity as reflected on our consolidated balance sheet, and (ii) amending the calculation of the earnings portion of our minimum fixed charge coverage ratio by replacing the definition of "Adjusted Earnings Before Interest and Taxes" used in calculating such ratio with a definition for "Adjusted EBITDA" that excludes, among other items, interest, taxes, depreciation, amortization, all impairment charges and loss on extinguishment of debt. These amendments make it less likely that we will fail to comply with such financial tests. | |||||||||||
Loss on Extinguishment of Debt | |||||||||||
2013. During the nine months ended September 30, 2013, we prepaid in full our $550 million secured term loan originally scheduled to mature in April 2016, the total outstanding under both tranches of the $106.0 million secured financing, and the total outstanding under the $55.4 million secured financing, and prepaid $150 million of the outstanding principal amount of our secured term loan due June 30, 2017. In connection with these prepayments, we recognized charges aggregating $17.7 million from the write off of unamortized deferred financing costs and deferred debt discount. | |||||||||||
2012. During the nine months ended September 30, 2012, we prepaid the remaining $456.9 million outstanding under our secured credit facility dated October 13, 2006 and the $750 million outstanding under our secured term loan entered into in 2010, and we refinanced our $550 million secured term loan at a lower interest rate. In connection with these prepayments, we recognized charges aggregating $22.9 million from the write off of unamortized deferred financing costs and deferred debt discount. | |||||||||||
Security_Deposits_on_Aircraft_
Security Deposits on Aircraft, Deferred Overhaul Rentals and Other Customer Deposits | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Security Deposits on Aircraft, Deferred Overhaul Rentals and Other Customer Deposits | ' | |||||||
Security Deposits on Aircraft, Deferred Overhaul Rentals and Other Customer Deposits | ' | |||||||
K. Security Deposits on Aircraft, Deferred Overhaul Rentals and Other Customer Deposits | ||||||||
As of September 30, 2013 and December 31, 2012, Security deposits, deferred overhaul rentals and other customer deposits were comprised of: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
Security deposits paid by lessees | $ | 1,138,026 | $ | 1,115,213 | ||||
Deferred overhaul rentals | 853,385 | 754,175 | ||||||
Rents received in advance and Straight-line rents | 447,234 | 453,837 | ||||||
Other customer deposits | 217,634 | 201,756 | ||||||
Total | $ | 2,656,279 | $ | 2,524,981 | ||||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies. | ' |
Commitments and Contingencies | ' |
L. Commitments and Contingencies | |
At September 30, 2013, we had committed to purchase 338 new aircraft, two used aircraft from third parties, and nine new spare engines scheduled for delivery through 2022 with aggregate estimated total remaining payments (including adjustments for certain contractual escalation provisions) of approximately $21.9 billion. The majority of these commitments to purchase new aircraft and engines are based upon agreements with each of Boeing, Airbus, Embraer and Pratt and Whitney. In addition, AeroTurbine has agreed to purchase two used aircraft and three engines under other flight equipment purchase agreements for an aggregate purchase commitment of $24.3 million. | |
Guarantees | |
• | |
Asset Value Guarantees: We have previously contracted to provide guarantees on a portion of the residual value of certain aircraft to financial institutions and other third parties for fees. As of September 30, 2013, we provided 12 such guarantees that had not yet been exercised. These guarantees expire at various dates through 2023 and generally obligate us to pay the shortfall between the fair market value and the guaranteed value of the aircraft and provide us with an option to purchase the aircraft for the guaranteed value. During the three and nine months ended September 30, 2013, we purchased three and five used aircraft, respectively, under guarantees previously exercised, three of which we subsequently sold. We may purchase an additional aircraft under a separate previously exercised guarantee during 2015. At September 30, 2013, the total reserves related to these asset value guarantees we have contracted to provide aggregated $125.5 million. At September 30, 2013, the maximum aggregate potential commitment that we were obligated to pay under these guarantees, without any offset for the projected value of the aircraft or other features that may limit our exposure, was approximately $330.6 million. | |
• | |
Aircraft Loan Guarantees: We guarantee one loan collateralized by an aircraft. The guarantee expires in 2014, when the loan matures, and obligates us to pay an amount up to the guaranteed value upon the default of the borrower, which will be offset by a portion of the underlying value of the aircraft collateral. At September 30, 2013, the guaranteed value, without any offset for the projected value of the aircraft, was approximately $4.2 million. | |
Management regularly reviews the underlying values of the aircraft collateral to determine our exposure under asset value guarantees and aircraft loan guarantees. We recorded provisions for losses on asset value guarantees of $93.9 million related to four guarantees and $100.5 million related to six guarantees during the three and nine months ended September 30, 2013, respectively. The amounts recorded reflect the differences between the estimated fair market value of the aircraft at the purchase date and the guaranteed value of these aircraft, adjusted for contractual provisions that limit our expected losses. The provision recorded during the three months ended September 30, 2013 relates to four Airbus A340-600 aircraft for which the estimated fair market value of the aircraft at the purchase date declined significantly as a result of the shorter holding periods that we now expect for these aircraft. The shorter holding periods have a significant impact on the estimated future cash flows for periods following the purchase dates pursuant to the asset value guarantees and have resulted in a significant increase to our expected losses on these four guarantees. See Note G of Notes to Condensed, Consolidated Financial Statements for further discussion regarding the impairment charges we recorded for Airbus A340-600 aircraft in our fleet during the three and nine months ended September 30, 2013. We recorded provisions for losses on asset value guarantees of $31.3 million related to three guarantees during the three and nine months ended September 30, 2012. The carrying balance of guarantees of $128.9 million at September 30, 2013, which consists of unamortized deferred premiums and reserves, is included in Accrued interest and other payables on our Condensed, Consolidated Balance Sheets. | |
Contingencies | |
Legal Proceedings | |
Yemen Airways-Yemenia: We are named in a lawsuit in connection with the 2009 crash of our Airbus A310-300 aircraft on lease to Yemen Airways-Yemenia, a Yemeni carrier. The plaintiffs are families of deceased occupants of the flight and seek unspecified damages for wrongful death, costs, and fees. The operative litigation commenced in January 2011 and is pending in the United States District Court for the Central District of California. We believe that we have substantial defenses on the merits and that we are adequately covered by available liability insurance. We do not believe that the outcome of the Yemenia lawsuit will have a material effect on our consolidated financial condition, results of operations or cash flows. | |
Air Lease: On April 24, 2012, ILFC and AIG filed a lawsuit in the Los Angeles Superior Court against ILFC's former CEO, Steven Udvar Hazy; Mr. Hazy's current company, Air Lease Corporation (ALC); and a number of ILFC's former officers and employees who are currently employed by ALC. The lawsuit alleges that Mr. Hazy and the former officers and employees, while employed at ILFC, diverted corporate opportunities from ILFC, misappropriated ILFC's trade secrets and other proprietary information, and committed other breaches of their fiduciary duties, all at the behest of ALC. The complaint seeks monetary damages and injunctive relief for breaches of fiduciary duty, misappropriation of trade secrets, unfair competition, and various other violations of state law. | |
On August 15, 2013 ALC filed a cross-complaint against ILFC and AIG, which alleges that ILFC entered into, and later breached, an agreement to sell certain aircraft to ALC. Based on these allegations, the cross-complaint asserts claims against ILFC for breach of contract and unfair competition. The cross-complaint seeks significant compensatory and punitive damages. The matter is in its incipient stages and we are still evaluating the claims. We believe we have substantial defenses on the merits and we will vigorously defend ourselves against ALC's claims. | |
We are also a party to various claims and litigation matters arising in the ordinary course of our business. We do not believe that the outcome of these matters, individually or in the aggregate, will be material to our consolidated financial condition, results of operations or cash flows. | |
Variable_Interest_Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2013 | |
Variable Interest Entities | ' |
Variable Interest Entities | ' |
M. Variable Interest Entities | |
Our leasing and financing activities require us to use many forms of SPEs to achieve our business objectives and we have participated to varying degrees in the design and formation of these SPEs. The majority of these entities are wholly owned; we are the primary or only variable interest holder, we are the only decision maker and we guarantee all the activities of the entities. However, these entities meet the definition of a VIE because they do not have sufficient equity to operate without our subordinated financial support in the form of intercompany notes and loans which serve as equity. We have a variable interest in other entities in which we have determined that we are the PB, because we control and manage all aspects of the entities, including directing the activities that most significantly affect these entities' economic performance, and we absorb the majority of the risks and rewards of these entities. We consolidate these entities into our Condensed, Consolidated Financial Statements and the related aircraft are included in Flight equipment and the related borrowings are included in Secured debt financings on our Condensed, Consolidated Balance Sheets. | |
We have variable interests in the following entities, in which we have determined we are not the PB because we do not have the power to direct the activities that most significantly affect the entity's economic performance: (i) one entity that we have previously sold aircraft to and for which we manage the aircraft, in which our variable interest consists of the servicing fee we receive for the management of those aircraft; and (ii) two affiliated entities we sold aircraft to in 2003 and 2004, which aircraft we continue to manage, in which our variable interests consist of the servicing fee we receive for the management of those aircraft. These two affiliated entities, for which we manage aircraft, are consolidated into AIG's financial statements. | |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
N. Fair Value Measurements | ||||||||||||||||||||
Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. The degree of judgment used in measuring the fair value of financial instruments generally correlates with the level of pricing observability. Assets and liabilities recorded at fair value on our Condensed, Consolidated Balance Sheets are measured and classified in a hierarchy for disclosure purposes consisting of three levels based on the observability of inputs available in the marketplace used to measure the fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets; Level 2 refers to fair values estimated using significant other observable inputs; and Level 3 refers to fair values estimated using significant non-observable inputs. | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | ||||||||||||||||||||
The following table presents our assets and liabilities measured at fair value on a recurring basis, categorized using the fair value hierarchy described above: | ||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Counterparty | Total | ||||||||||||||||
Netting | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Derivative assets | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Derivative liabilities | — | (10,379 | )(a) | — | — | (10,379 | ) | |||||||||||||
Total | $ | — | $ | (10,379 | ) | $ | — | $ | — | $ | (10,379 | ) | ||||||||
December 31, 2012 | ||||||||||||||||||||
Derivative assets | $ | — | $ | 54 | $ | — | $ | — | $ | 54 | (b) | |||||||||
Derivative liabilities | — | (20,933 | )(a) | — | — | (20,933 | ) | |||||||||||||
Total | $ | — | $ | (20,879 | ) | $ | — | $ | — | $ | (20,879 | ) | ||||||||
(a) | ||||||||||||||||||||
The balance includes CVA and MVA adjustments of $0.03 million and $0.3 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
(b) | ||||||||||||||||||||
Derivative assets are presented in Lease receivables and other assets on the Condensed, Consolidated Balance Sheet. | ||||||||||||||||||||
At September 30, 2013 our derivative portfolio consisted of interest rate swap contracts and at December 31, 2012, our derivative portfolio consisted of interest rate swap and interest rate cap contracts. The fair value of these instruments are based upon a model that employs current interest and volatility rates, as well as other observable inputs as applicable. As such, the valuation of these instruments is classified as Level 2. | ||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Non-recurring Basis | ||||||||||||||||||||
We measure the fair value of flight equipment on a non-recurring basis, generally quarterly, annually, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. | ||||||||||||||||||||
The fair value of flight equipment is classified as a Level 3 valuation. Management evaluates quarterly the need to perform a recoverability assessment of flight equipment, and performs this assessment at least annually for all aircraft in our fleet. Recoverability assessments are performed whenever events or changes in circumstances indicate that the carrying amount of our flight equipment may not be recoverable, which may require us to change our assumptions related to future projected cash flows. Management is active in the aircraft leasing industry and develops the assumptions used in the recoverability assessment. As part of the recoverability process, we update the critical and significant assumptions used in the recoverability assessment. | ||||||||||||||||||||
Fair value of flight equipment is determined using an income approach based on the present value of future cash flows from current contractual lease agreements, projected non-contractual future lease cash flows, and estimated flight hour rental cash flows, where appropriate, extended to the end of the aircraft's economic life or to the end of our estimated holding period in its highest and best use configuration, as well as a disposition value, based on the expectations of market participants. | ||||||||||||||||||||
We recognized impairment charges and fair value adjustments for the three and nine months ended September 30, 2013 and 2012, as provided in Note G—Aircraft Impairment Charges on Flight Equipment Held for Use and Note H—Aircraft Impairment Charges and Fair Value Adjustments on Flight Equipment Sold or to be Disposed. | ||||||||||||||||||||
The following table presents the effect on our Condensed, Consolidated Financial Statements as a result of the non-recurring impairment charges and fair value adjustments recorded to flight equipment during the nine months ended September 30, 2013: | ||||||||||||||||||||
Book Value at | Impairment | Reclassifications | Sales | Depreciation | Book Value at | |||||||||||||||
December 31, | Charges | and Other | September 30, | |||||||||||||||||
2012 | Adjustments | 2013 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Flight equipment | $ | 2,501,544 | $ | (1,324,588 | ) | $ | (261,263 | ) | $ | (18,712 | ) | $ | (133,406 | ) | $ | 763,575 | ||||
Flight equipment held for sale | — | — | 162,250 | (153,000 | ) | — | 9,250 | |||||||||||||
Lease receivables and other assets | 6,721 | (349 | ) | 21,333 | (8,996 | ) | (2,366 | ) | 16,343 | |||||||||||
Net investment in finance and sales-type leases | — | — | 76,070 | — | — | 76,070 | ||||||||||||||
Total | $ | 2,508,265 | $ | (1,324,937 | ) | $ | -1,610 | (a) | $ | (180,708 | ) | $ | (135,772 | ) | $ | 865,238 | ||||
(a) | ||||||||||||||||||||
Represents collections and security deposits applied against the finance and sales-type leases, offset by costs capitalized to flight equipment. | ||||||||||||||||||||
Inputs to Non-Recurring Fair Value Measurements Categorized as Level 3 | ||||||||||||||||||||
We measure the fair value of flight equipment on a non-recurring basis, when GAAP requires the application of fair value. The fair value of flight equipment is estimated when (i) aircraft held for use in our fleet are impaired; (ii) aircraft expected to be parted-out or sold are impaired; and (iii) aircraft are sold as part of sales-type leases. We use the income approach to measure the fair value of flight equipment, which is based on the present value of estimated future cash flows. The key inputs to the income approach include the current contractual lease cash flows, projected future non-contractual lease cash flows, both of which include estimates of flight hour rental cash flows, where appropriate, extended to the end of the aircraft's economic life or to the end of our estimated holding period in its highest and best use configuration, as well as a contractual or estimated disposition value. The determination of these key inputs in applying the income approach is discussed below. | ||||||||||||||||||||
The current contractual lease cash flows are based on the in-force lease rates. The projected non-contractual lease cash flows are estimated based on the aircraft type, age, and airframe and engine configuration of the aircraft. The projected non-contractual lease cash flows are applied to a follow-on lease term(s), which are estimated based on the age of the aircraft at the time of re-lease. Follow-on leases are assumed through the aircraft's estimated economic life or estimated holding period. The holding period assumption is the period over which future cash flows are assumed to be generated. We generally assume the aircraft will be leased over a 25-year estimated useful life unless specific facts and circumstances indicate the holding period is expected to be shorter. Shorter holding periods can result from our assessment of aircraft types or when a sale or future part-out of an individual aircraft has been contracted for, or is likely. In instances of a potential sale or part-out, the holding period is based on the estimated or actual sales or part-out date. The disposition value is generally estimated based on the aircraft type. In situations where the aircraft will be disposed of, the residual value assumed is based on an estimated part-out value or the contracted sale price. | ||||||||||||||||||||
The aggregate cash flows, as described above, are then discounted. The estimated discount rate used is based on the aircraft type and incorporates market participant assumptions regarding the market attractiveness of the aircraft type and the likely debt and equity financing components and the required returns of those financing components. Management has identified the key elements affecting the fair value calculation as the rate used to discount the estimated cash flows, the flight equipment holding period, and the proportion of contractual versus non-contractual cash flows. | ||||||||||||||||||||
Fair Value at | Valuation | Unobservable | Range | |||||||||||||||||
September 30, 2013 | Technique | Inputs | (Weighted | |||||||||||||||||
Average) | ||||||||||||||||||||
(Dollars in | ||||||||||||||||||||
millions) | ||||||||||||||||||||
Flight Equipment(a) | $ | 765 | Income Approach | Discount Rate | 16.60% | |||||||||||||||
Remaining Holding Period | 0-10 years | |||||||||||||||||||
(4 years) | ||||||||||||||||||||
Present Value of | 0-100% | |||||||||||||||||||
Non-Contractual Cash | -39% | |||||||||||||||||||
Flows as a Percentage of | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
(a) | ||||||||||||||||||||
Includes Flight equipment for which non-recurring impairment charges and fair value adjustments were recorded during the three months ended September 30, 2013. | ||||||||||||||||||||
Sensitivity to Changes in Unobservable Inputs | ||||||||||||||||||||
We consider unobservable inputs to be those for which market data is not available and that we develop using the best information available to us related to assumptions market participants use when pricing the asset or liability. Relevant inputs vary depending on the nature of the asset or liability being measured at fair value. The effect of a change in a particular assumption is considered independently of changes in any other assumptions. In practice, simultaneous changes in assumptions may not always have a linear effect on inputs. | ||||||||||||||||||||
The significant unobservable inputs utilized in the fair value measurement of flight equipment are the discount rate, the remaining holding period and the non-contractual cash flows. The discount rate is affected by movements in the aircraft funding markets, and can be impacted by fluctuations in required rates of return in debt and equity, and loan to value ratios. The remaining holding period and non-contractual cash flows represent management's estimate of the remaining service period of an aircraft and the estimated non-contractual cash flows over the remaining life of the aircraft. An increase in the discount rate applied would have an inverse effect on the fair value of an aircraft, while an increase in the remaining holding period or the estimated non-contractual cash flows would increase the fair value measurement. | ||||||||||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
O. Derivative Financial Instruments | ||||||||||||||
We use derivatives to manage exposures to interest rate and foreign currency risks. At September 30, 2013, we had interest rate swap agreements entered into with a related counterparty that mature through 2015. During the nine months ended September 30, 2013, we also had two interest rate cap agreements with an unrelated counterparty in connection with a secured financing transaction that were scheduled to mature in 2018. We prepaid the debt related to our interest rate cap agreements and terminated our interest rate cap agreements during the nine months ended September 30, 2013. | ||||||||||||||
All our interest rate swap agreements have been designated as cash flow hedges and changes in fair value of cash flow hedges are recorded in OCI. Where hedge accounting is not achieved, the change in fair value of the derivative is recorded in income. We did not designate the interest rate cap agreements as hedges, and all changes in fair value were recorded in income. | ||||||||||||||
We have previously de-designated and re-designated certain of our derivative contracts. The balance accumulated in AOCI at the time of the de-designation is amortized into income over the remaining life of the underlying derivative. | ||||||||||||||
All of our interest rate swap agreements are subject to a master netting agreement, which would allow the netting of derivative assets and liabilities in the case of default under any one contract. Our interest rate swap agreements are recorded at fair value on our balance sheet in Derivative liabilities (see Note N—Fair Value Measurements). All of our derivatives were in a liability position at September 30, 2013. Our interest rate cap agreements at December 31, 2012 were recorded at fair value and included in Lease receivables and other assets. Our derivative contracts do not have any credit risk related contingent features and we are not required to post collateral under any of our existing derivative contracts. | ||||||||||||||
Derivatives have notional amounts, which generally represent amounts used to calculate contractual cash flows to be exchanged under the contract. The following table presents notional and fair values of derivatives outstanding at the following dates: | ||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||
(Dollars in thousands) | ||||||||||||||
September 30, 2013 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Interest rate swap agreements(a) | $ | — | $ | — | $ | 221,185 | $ | (10,379 | ) | |||||
Total derivatives | $ | — | $ | (10,379 | ) | |||||||||
December 31, 2012 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Interest rate swap agreements(a) | $ | — | $ | — | $ | 336,125 | $ | (20,933 | ) | |||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Interest rate cap agreements(b) | $ | 65,985 | $ | 54 | $ | — | $ | — | ||||||
Total derivatives | $ | 54 | $ | (20,933 | ) | |||||||||
(a) | ||||||||||||||
Converts floating interest rate debt into fixed rate debt. | ||||||||||||||
(b) | ||||||||||||||
Derivative assets are presented in Lease receivables and other assets on the Condensed, Consolidated Balance Sheet. | ||||||||||||||
We recorded the following in OCI related to derivative instruments designated as hedging instruments: | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
Gain (Loss) | 2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in thousands) | ||||||||||||||
Effective portion of change in fair market value of derivatives: | ||||||||||||||
Interest rate swap agreements(a)(b) | $ | 2,572 | $ | 2,275 | $ | 8,987 | $ | 5,715 | ||||||
Amortization of balances of de-designated hedges and other adjustments | 282 | 282 | 847 | 847 | ||||||||||
Income tax effect | (1,007 | ) | (904 | ) | (3,471 | ) | (2,216 | ) | ||||||
Net changes in cash flow hedges, net of taxes | $ | 1,847 | $ | 1,653 | $ | 6,363 | $ | 4,346 | ||||||
(a) | ||||||||||||||
Includes $(62) and $(946) of combined CVA and MVA for the three months ended September 30, 2013 and 2012, respectively, and $(311) and $(5,864) of combined CVA and MVA for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
(b) | ||||||||||||||
Includes the following amounts for the following periods: | ||||||||||||||
Three months ended September 30, 2013 and 2012: (i) effective portion of the unrealized gain or (loss) on derivative position recorded in OCI of $(272) and $(1,898), respectively, and (ii) amounts reclassified from AOCI primarily into interest expense when cash payments were made or received on qualifying cash flow hedges of $2,844 and $4,173, respectively. | ||||||||||||||
Nine months ended September 30, 2013 and 2012: (i) effective portion of the unrealized gain or (loss) on derivative position recorded in OCI of $(560) and $(8,136), respectively, and (ii) amounts reclassified from AOCI primarily into interest expense when cash payments were made or received on qualifying cash flow hedges of $9,547 and $13,851, respectively. | ||||||||||||||
We estimate that within the next twelve months, we will amortize into earnings approximately $(8.4) million of the pre-tax balance in AOCI under cash flow hedge accounting in connection with our program to convert debt from floating to fixed interest rates. | ||||||||||||||
The following table presents the effect of derivatives recorded in Other expenses on the Condensed, Consolidated Statements of Operations: | ||||||||||||||
Amount of Gain or (Loss) Recognized | ||||||||||||||
in Income on Derivatives | ||||||||||||||
(Ineffective Portion)(a) | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Derivatives Designated as Cash Flow Hedges: | ||||||||||||||
Interest rate swap agreements | $ | (12 | ) | $ | (19 | ) | $ | (42 | ) | $ | (64 | ) | ||
Derivatives Not Designated as a Hedge: | ||||||||||||||
Interest rate cap agreements | — | 174 | 61 | 368 | ||||||||||
Reconciliation to Condensed, Consolidated Statements of Operations: | ||||||||||||||
Reclassification of amounts de-designated as hedges recorded in AOCI | (282 | ) | (282 | ) | (847 | ) | (847 | ) | ||||||
Effect from derivatives, net of change in hedged items due to changes in foreign exchange rates | $ | (294 | ) | $ | (127 | ) | $ | (828 | ) | $ | (543 | ) | ||
(a) | ||||||||||||||
All components of each derivative's gain or loss were included in the assessment of effectiveness. | ||||||||||||||
Fair_Value_Disclosures_of_Fina
Fair Value Disclosures of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures of Financial Instruments | ' | ||||||||||||||||
Fair Value Disclosures of Financial Instruments | ' | ||||||||||||||||
P. Fair Value Disclosures of Financial Instruments | |||||||||||||||||
The carrying amounts and fair values (as well as the level within the fair value hierarchy to which the valuation relates) of our financial instruments are as follows: | |||||||||||||||||
Estimated Fair Value | Carrying | ||||||||||||||||
Amount of | |||||||||||||||||
Asset | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | (Liability) | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Cash, including restricted cash | 121,723 | 2,024,479 | (a) | $ | — | $ | 2,146,202 | $ | 2,146,202 | ||||||||
Notes receivable | — | 19,818 | — | 19,818 | 18,098 | ||||||||||||
Debt financings (including subordinated debt) | (23,491,659 | ) | — | (23,491,659 | ) | (22,273,303 | ) | ||||||||||
Derivative liabilities | — | (10,379 | ) | — | (10,379 | ) | (10,379 | ) | |||||||||
Guarantees | — | — | (128,907 | ) | (128,907 | ) | (128,907 | ) | |||||||||
December 31, 2012 | |||||||||||||||||
Cash, including restricted cash | $ | 605,410 | $ | 3,117,565 | (a) | $ | — | $ | 3,722,975 | $ | 3,722,975 | ||||||
Notes receivable | — | 23,175 | — | 23,175 | 23,181 | ||||||||||||
Debt financings (including subordinated debt) | (18,822,645 | ) | (7,160,408 | ) | — | (25,983,053 | ) | (24,342,787 | ) | ||||||||
Derivative assets | — | 54 | — | 54 | 54 | ||||||||||||
Derivative liabilities | — | (20,933 | ) | — | (20,933 | ) | (20,933 | ) | |||||||||
Guarantees | — | — | (51,947 | ) | (51,947 | ) | (49,268 | ) | |||||||||
(a) | |||||||||||||||||
Includes restricted cash of $420.9 million (2013) and $695.4 million (2012). | |||||||||||||||||
We used the following methods and assumptions in estimating our fair value disclosures for financial instruments: | |||||||||||||||||
Cash: The carrying value reported on the balance sheet for cash and cash equivalents and restricted cash approximates its fair value. We consider time deposits that are not readily available for immediate withdrawal as Level 2 valuations. | |||||||||||||||||
Notes Receivable: The fair values for notes receivable are estimated using discounted cash flow analysis, using market quoted discount rates that approximate the credit risk of the issuing party. | |||||||||||||||||
Debt Financings: The fair value of our debt financings, including the level within the fair value hierarchy, is determined at the end of each reporting period. We consider the frequency and volume of quoted prices of our debt in active markets, where available, in making our determination. The fair value of our long-term unsecured fixed-rate debt is estimated using a discounted cash flow analysis, based on our spread to U.S. Treasury bonds for similar debt. The fair value of our long-term unsecured floating rate debt is estimated using a discounted cash flow analysis based on credit default spreads. The fair value of our long-term secured debt is estimated using discounted cash flow analysis based on credit default spreads. | |||||||||||||||||
Derivatives: Fair values are based on the use of a valuation model that utilizes, among other things, current interest, foreign exchange and volatility rates, as applicable. | |||||||||||||||||
Guarantees: Guarantees are included in Accrued interest and other payables on our Condensed, Consolidated Balance Sheets. Fair value is determined by reference to the underlying aircraft and guarantee amount . See Note L—Commitments and Contingencies—Guarantees. | |||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive (Loss) Income | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | ' | |||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | ' | |||||||||||||||||||||
Q. Accumulated Other Comprehensive (Loss) Income | ||||||||||||||||||||||
The following table presents other comprehensive income reclassification adjustments: | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||||||||||
Gains and | Unrealized | Total | Gains and | Unrealized | Total | |||||||||||||||||
losses on | gains and | losses on | gains and | |||||||||||||||||||
cash flow | losses on | cash flow | losses on | |||||||||||||||||||
hedges | available- | hedges | available- | |||||||||||||||||||
for-sale | for-sale | |||||||||||||||||||||
securities | securities | |||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Balance at June 30, 2013 | $ | (8,415 | ) | $ | 516 | $ | (7,899 | ) | Balance at December 31, 2012 | $ | (12,931 | ) | $ | 440 | $ | (12,491 | ) | |||||
Other comprehensive income before reclassifications | 2,560 | 132 | 2,692 | Other comprehensive income before reclassifications | 8,945 | 249 | 9,194 | |||||||||||||||
Amounts reclassified from AOCI | 294 | — | 294 | Amounts reclassified from AOCI | 889 | — | 889 | |||||||||||||||
Income tax effect | (1,007 | ) | (47 | ) | (1,054 | ) | Income tax effect | (3,471 | ) | (88 | ) | (3,559 | ) | |||||||||
Net increase in other comprehensive income | 1,847 | 85 | 1,932 | Net increase in other comprehensive income | 6,363 | 161 | 6,524 | |||||||||||||||
Balance at September 30, 2013 | $ | (6,568 | ) | $ | 601 | $ | (5,967 | ) | Balance at September 30, 2013 | $ | (6,568 | ) | $ | 601 | $ | (5,967 | ) | |||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, 2012 | September 30, 2012 | |||||||||||||||||||||
Gains and | Unrealized | Total | Gains and | Unrealized | Total | |||||||||||||||||
losses on | gains and | losses on | gains and | |||||||||||||||||||
cash flow | losses on | cash flow | losses on | |||||||||||||||||||
hedges | available- | hedges | available- | |||||||||||||||||||
for-sale | for-sale | |||||||||||||||||||||
securities | securities | |||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Balance at June 30, 2012 | $ | (17,071 | ) | $ | 115 | $ | (16,956 | ) | Balance at December 31, 2011 | $ | (19,764 | ) | $ | 127 | $ | (19,637 | ) | |||||
Other comprehensive income before reclassifications | 2,256 | 362 | 2,618 | Other comprehensive income before reclassifications | 5,651 | 345 | 5,996 | |||||||||||||||
Amounts reclassified from AOCI | 301 | — | 301 | Amounts reclassified from AOCI | 911 | — | 911 | |||||||||||||||
Income tax effect | (904 | ) | — | (904 | ) | Income tax effect | (2,216 | ) | 5 | (2,211 | ) | |||||||||||
Net increase in other comprehensive income | 1,653 | 362 | 2,015 | Net increase in other comprehensive income | 4,346 | 350 | 4,696 | |||||||||||||||
Balance at September 30, 2012 | $ | (15,418 | ) | $ | 477 | $ | (14,941 | ) | Balance at September 30, 2012 | $ | (15,418 | ) | $ | 477 | $ | (14,941 | ) | |||||
The following table presents the classification and amount of reclassifications from AOCI to the Condensed Consolidated Statements of Operations: | ||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Condensed, | ||||||||||||||||||||
Consolidated | ||||||||||||||||||||||
Statements of | ||||||||||||||||||||||
Operations | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | Classification | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||
Interest rate swap agreements | $ | (12 | ) | $ | (19 | ) | $ | (42 | ) | $ | (64 | ) | Other expenses | |||||||||
Reclassification of amounts de-designated as hedges recorded in AOCI | (282 | ) | (282 | ) | (847 | ) | (847 | ) | Other expenses | |||||||||||||
(294 | ) | (301 | ) | (889 | ) | (911 | ) | |||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||
Realized gains and losses on available-for-sale securities | — | — | — | — | Selling, general and administrative | |||||||||||||||||
— | — | — | — | |||||||||||||||||||
Total reclassifications | $ | (294 | ) | $ | (301 | ) | $ | (889 | ) | $ | (911 | ) | ||||||||||
Other_Expenses
Other Expenses | 9 Months Ended |
Sep. 30, 2013 | |
Other Expenses | ' |
Other Expenses | ' |
R. Other Expenses | |
During the three and nine months ended September 30, 2013, Other expenses were $100.6 million and $106.9 million, respectively, and during the three and nine months ended September 30, 2012, Other expenses were $33.0 million and $46.4 million, respectively. Other expenses for the three and nine months ended September 30, 2013, were primarily impacted by provisions recorded for asset value guarantees of $93.9 million and $100.5 million, respectively. The results for the three and nine months ended September 30, 2012, were primarily impacted by $31.3 million in provisions recorded for asset value guarantees. See Note L—Commitments and Contingencies—Guarantees. | |
Recent_Accounting_Pronouncemen1
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
Adoption of Recent Accounting Guidance: | |
Presentation of Comprehensive Income | |
In February 2013, the FASB issued an accounting standard requiring us to disclose the effect of reclassifying significant items out of Accumulated other comprehensive income on the respective line items of net income or to provide a cross-reference to other disclosures currently required under GAAP. | |
We adopted the guidance on January 1, 2013, when it became effective. The adoption had no impact on our financial condition, results of operations or cash flows. However, due to adoption, we have included additional disclosures for items reclassified out of AOCI in Note Q—Accumulated Other Comprehensive (Loss) Income. | |
Disclosures about Offsetting Assets and Liabilities | |
In February 2013, the FASB issued an accounting standard that clarifies the scope of transactions subject to disclosures about offsetting assets and liabilities. The guidance applies to financial instruments and derivative instruments that are offset either in accordance with specific criteria contained in FASB Accounting Standards Codification or subject to a master netting arrangement or similar agreement. This guidance was effective January 1, 2013, and required retrospective application. The adoption of this guidance had no effect on our consolidated financial statements, results of operations or cash flows, and we did not include additional disclosures because all of our derivatives were in liability positions. | |
Inclusion of the Fed Funds Effective Swap Rate as a Benchmark Interest Rate for Hedge Accounting Purposes | |
In July 2013, the FASB issued an accounting standard that permits the Federal Funds Effective Swap Rate to be used as a U.S. benchmark interest rate for hedge accounting purposes in addition to US Treasury rates and LIBOR. The standard also removes the prohibition on using different benchmark rates for similar hedges. This standard became effective on a prospective basis for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013 to the extent the Federal Funds Effective Swap Rate is used as a benchmark rate for hedge accounting purposes. We adopted this standard on its required effective date of July 17, 2013. The adoption of this standard had no material effect on our consolidated financial condition, results of operations or cash flows. | |
Future Application of Accounting Guidance: | |
Presentation of Unrecognized Tax Benefits | |
In July 2013, the FASB issued an accounting standard that requires a liability related to unrecognized tax benefits to be presented as a reduction to the related deferred tax asset for a net operating loss carryforward or a tax credit carryforward (the "Carryforwards"). When the Carryforwards are not available at the reporting date under the tax law of the jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit will be presented in the financial statements as a liability and will not be combined with the related deferred tax assets. This standard is effective for fiscal years and interim periods beginning after December 15, 2013, but earlier adoption is permitted. Upon adoption, the standard must be applied prospectively to unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. We plan to adopt the standard prospectively on the required effective date of January 1, 2014 and are currently assessing the impact of adopting the standard on our consolidated financial statements. | |
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Related Party Transactions | ' | |||||||||||||
Schedule of amounts involving related parties included in the financial statements | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
Income Statement | September 30, | September 30, | September 30, | September 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Expense (income): | ||||||||||||||
Effect from derivative contracts with AIG Markets, Inc.(a) | $ | 294 | $ | 301 | $ | 889 | $ | 911 | ||||||
Interest on derivative contracts with AIG Markets, Inc. | 2,844 | 4,173 | 9,547 | 13,851 | ||||||||||
Corporate costs from AIG, including allocations(b) | 11,538 | 3,904 | 27,636 | 18,451 | ||||||||||
Interest on time deposit account with AIG Markets(c) | (775 | ) | (1,059 | ) | (2,400 | ) | (2,702 | ) | ||||||
Management fees received | (2,261 | ) | (2,219 | ) | (6,444 | ) | (6,683 | ) | ||||||
Management fees paid to subsidiaries of AIG | — | 40 | 126 | 156 | ||||||||||
Balance Sheet | September 30, | December 31, | ||||||||||||
2013 | 2012 | |||||||||||||
(Dollars in thousands) | ||||||||||||||
Asset (liability): | ||||||||||||||
Time deposit account with AIG Markets(c) | $ | 1,106,003 | $ | 1,103,591 | ||||||||||
Derivative liabilities(a) | (10,379 | ) | (20,933 | ) | ||||||||||
Current income taxes and other tax liabilities to AIG(d) | (286,630 | ) | (299,333 | ) | ||||||||||
Accrued corporate costs payable to AIG | (23,800 | ) | (20,969 | ) | ||||||||||
Equity increase (decrease): | ||||||||||||||
Aircraft transfer to AIG, net of tax of $11,866 (2012) | — | (25,379 | ) | |||||||||||
Aircraft contribution from AIG, net of tax of $9,211 (2012) | — | 16,690 | ||||||||||||
Expenses paid by AIG on our behalf(e) | 3,675 | 2,636 | ||||||||||||
(a) | ||||||||||||||
See Note O—Derivative Financial Instruments for all derivative transactions. | ||||||||||||||
(b) | ||||||||||||||
Amounts for the three and nine months ended September 30, 2013 include $6.1 million and $2.5 million, respectively, of legal expenses paid by AIG on our behalf in prior periods. See Note A of Notes to Condensed, Consolidated Financial Statements. | ||||||||||||||
(c) | ||||||||||||||
We have a 30-day interest bearing time deposit account with AIG Markets, Inc., all of which is available for use in our operations. If we request that funds be made available to us prior to the maturity date of the time deposit, we may have to pay a breakage fee to AIG Markets, Inc. | ||||||||||||||
(d) | ||||||||||||||
We made no payment during the nine months ended September 30, 2013, and paid approximately $1.7 million to AIG for an ILFC tax liability during the year ended December 31, 2012. | ||||||||||||||
(e) | ||||||||||||||
Amount as of September 30, 2013 includes the after-tax impact of a $2.5 million adjustment to correctly reflect legal expenses paid by AIG on our behalf prior to 2013. See Note A of Notes to Condensed, Consolidated Financial Statements. | ||||||||||||||
Other_Income_Tables
Other Income (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Other Income | ' | |||||||||||||
Schedule of interest and other income | ' | |||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
AeroTurbine revenue | ||||||||||||||
Engines, airframes, parts and supplies | $ | 78,955 | $ | 81,267 | $ | 233,974 | $ | 226,261 | ||||||
Cost of sales | (70,022 | ) | (67,915 | ) | (201,097 | ) | (191,636 | ) | ||||||
8,933 | 13,352 | 32,877 | 34,625 | |||||||||||
Interest and Other | 14,234 | 20,737 | 63,392 | 47,223 | ||||||||||
Total | $ | 23,167 | $ | 34,089 | $ | 96,269 | $ | 81,848 | ||||||
Aircraft_Impairment_Charges_an1
Aircraft Impairment Charges and Fair Value Adjustments on Flight Equipment Sold or to be Disposed (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
Aircraft Impairment Charges and Fair Value Adjustments on Flight Equipment Sold or to be Disposed | ' | |||||||||||||||||||||||||
Schedule of impairment charges and fair value adjustments on flight equipment sold or to be disposed of | ' | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||
Aircraft | Impairment | Aircraft | Impairment | Aircraft | Impairment | Aircraft | Impairment | |||||||||||||||||||
Impaired or | Charges and | Impaired or | Charges and | Impaired or | Charges and | Impaired or | Charges and | |||||||||||||||||||
Adjusted | Fair Value | Adjusted | Fair Value | Adjusted | Fair Value | Adjusted | Fair Value | |||||||||||||||||||
Adjustments | Adjustments | Adjustments | Adjustments | |||||||||||||||||||||||
(Dollars in millions) | (Dollars in millions) | |||||||||||||||||||||||||
Impairment charges and fair value adjustments on aircraft likely to be sold or sold (including sales-type leases) | 3 | $ | 8.5 | 5 | $ | 5.2 | 18 | $ | 87.3 | (a) | 9 | (b) | $ | 43 | ||||||||||||
Fair value adjustments on held for sale aircraft sold or transferred from held for sale back to flight equipment(c) | — | — | 4 | 4.1 | — | — | 4 | 4.1 | ||||||||||||||||||
Impairment charges on aircraft intended to be or designated for part-out | 6 | 49 | (d) | 6 | 26.6 | (d) | 19 | (e) | 97.8 | (d) | 10 | 41 | (d) | |||||||||||||
Total Impairment charges and fair value adjustments on flight equipment | 9 | $ | 57.5 | 15 | $ | 35.9 | 37 | $ | 185.1 | 23 | $ | 88.1 | ||||||||||||||
(a) | ||||||||||||||||||||||||||
Includes charges relating to 11 aircraft that met the criteria to be classified as Flight equipment held for sale, and were reclassified from Flight equipment into Flight equipment held for sale. During the nine months ended September 30, 2013, 10 of these aircraft were sold to a third party. | ||||||||||||||||||||||||||
(b) | ||||||||||||||||||||||||||
One of the nine aircraft was impaired twice during the nine months ended September 30, 2012. | ||||||||||||||||||||||||||
(c) | ||||||||||||||||||||||||||
Included in these amounts are net fair value credit adjustments related to aircraft previously held for sale, which currently no longer meet such criteria and were subsequently reclassified to Flight equipment. Also included in these amounts are fair value credit adjustments for sales price adjustments related to aircraft that were previously held for sale and sold during the periods presented. | ||||||||||||||||||||||||||
(d) | ||||||||||||||||||||||||||
Includes charges relating to two engines for the three months ended September 30, 2013, and nine engines for the same period in 2012 and six engines for the nine months ended September 30, 2013 and 13 engines for the same period in 2012. | ||||||||||||||||||||||||||
(e) | ||||||||||||||||||||||||||
One of the 19 aircraft was impaired twice during the nine months ended September 30, 2013. | ||||||||||||||||||||||||||
Lease_Receivables_and_Other_As1
Lease Receivables and Other Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Lease Receivables and Other Assets | ' | |||||||
Schedule of components of lease receivables and other assets | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
Lease receivables | $ | 209,657 | $ | 199,694 | ||||
AeroTurbine Inventory | 200,508 | 149,390 | ||||||
Lease incentive costs, net of amortization | 175,956 | 128,616 | ||||||
Straight-line rents and other assets | 203,308 | 226,609 | ||||||
Goodwill and Other intangible assets(a) | 46,778 | 48,887 | ||||||
Notes and trade receivables, net of allowance(b) | 18,098 | 23,181 | ||||||
Derivative assets(c) | — | 54 | ||||||
$ | 854,305 | $ | 776,431 | |||||
(a) | ||||||||
Goodwill and Other intangible assets relate to our acquisition of AeroTurbine. | ||||||||
(b) | ||||||||
Notes receivable are primarily from the sale of flight equipment and are fixed with varying interest rates from 2.0% to 10.5%. | ||||||||
(c) | ||||||||
See Note O—Derivative Financial Instruments. | ||||||||
Schedule of activity in allowance for credit losses on notes receivable | ' | |||||||
(Dollars in thousands) | ||||||||
Balance at December 31, 2011 | $ | 41,396 | ||||||
Provision | (9,727 | ) | ||||||
Write-offs | (31,669 | ) | ||||||
Balance at December 31, 2012 | $ | — | ||||||
Debt_Financings_Tables
Debt Financings (Tables) | 9 Months Ended | ||||||||||
Sep. 30, 2013 | |||||||||||
Debt Financings | ' | ||||||||||
Schedule of debt financing | ' | ||||||||||
September 30, | December 31, | ||||||||||
2013 | 2012 | ||||||||||
(Dollars in thousands) | |||||||||||
Secured | |||||||||||
Senior secured bonds | $ | 3,900,000 | $ | 3,900,000 | |||||||
ECA and Ex-Im financings | 1,828,648 | 2,193,229 | |||||||||
Secured bank debt(a) | 1,808,227 | 1,961,143 | |||||||||
Institutional secured term loans | 750,000 | 1,450,000 | |||||||||
Less: Deferred debt discount(b) | (5,398 | ) | (15,125 | ) | |||||||
8,281,477 | 9,489,247 | ||||||||||
Unsecured | |||||||||||
Bonds and medium-term notes | 13,025,538 | 13,890,747 | |||||||||
Less: Deferred debt discount(b) | (33,712 | ) | (37,207 | ) | |||||||
12,991,826 | 13,853,540 | ||||||||||
Total Senior Debt Financings | 21,273,303 | 23,342,787 | |||||||||
Subordinated Debt | 1,000,000 | 1,000,000 | |||||||||
$ | 22,273,303 | $ | 24,342,787 | ||||||||
(a) | |||||||||||
Of this amount, $177.9 million (2013) and $270.5 million (2012) is non-recourse to ILFC. These secured financings were incurred by VIEs and consolidated into our Condensed, Consolidated Financial Statements. Amounts include $334.5 million (2013) and $260.0 million (2012) outstanding under AeroTurbine's revolving credit facility. | |||||||||||
(b) | |||||||||||
During the three months ended September 30, 2013, we recorded an $18.6 million adjustment to correct and fully align amortization of deferred debt issue costs and debt discounts in prior periods with the effective interest method, of which $4.0 million related to debt discounts and is reflected herein. See Note A of Notes to Condensed, Consolidated Financial Statements. | |||||||||||
Schedule of information regarding the collateral pledged for secured debt | ' | ||||||||||
As of September 30, 2013 | |||||||||||
Debt | Net Book | Number of | |||||||||
Outstanding | Value of Collateral | Aircraft | |||||||||
(Dollars in thousands) | |||||||||||
Senior secured bonds | $ | 3,900,000 | $ | 5,962,533 | 174 | ||||||
ECA and Ex-Im Financings | 1,828,648 | 5,015,092 | 118 | ||||||||
Secured bank debt | 1,808,227 | 2,622,782 | (a) | 61 | (a) | ||||||
Institutional secured term loans | 750,000 | 1,303,763 | 52 | ||||||||
Total | $ | 8,286,875 | $ | 14,904,170 | 405 | ||||||
(a) | |||||||||||
Amounts represent the net book value of collateral and number of aircraft securing ILFC secured bank term debt. Amounts do not include assets securing AeroTurbine's secured revolving credit facility. AeroTurbine's credit facility, under which $334.5 million was drawn as of September 30, 2013, is secured by substantially all of the assets of AeroTurbine and its subsidiary guarantors. | |||||||||||
Security_Deposits_on_Aircraft_1
Security Deposits on Aircraft, Deferred Overhaul Rentals and Other Customer Deposits (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Security Deposits on Aircraft, Deferred Overhaul Rentals and Other Customer Deposits | ' | |||||||
Schedule of security deposits, deferred overhaul rentals and other customer deposits | ' | |||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
(Dollars in thousands) | ||||||||
Security deposits paid by lessees | $ | 1,138,026 | $ | 1,115,213 | ||||
Deferred overhaul rentals | 853,385 | 754,175 | ||||||
Rents received in advance and Straight-line rents | 447,234 | 453,837 | ||||||
Other customer deposits | 217,634 | 201,756 | ||||||
Total | $ | 2,656,279 | $ | 2,524,981 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||
Schedule of assets and liabilities measured at fair value on a recurring basis | ' | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Counterparty | Total | ||||||||||||||||
Netting | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
September 30, 2013 | ||||||||||||||||||||
Derivative assets | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Derivative liabilities | — | (10,379 | )(a) | — | — | (10,379 | ) | |||||||||||||
Total | $ | — | $ | (10,379 | ) | $ | — | $ | — | $ | (10,379 | ) | ||||||||
December 31, 2012 | ||||||||||||||||||||
Derivative assets | $ | — | $ | 54 | $ | — | $ | — | $ | 54 | (b) | |||||||||
Derivative liabilities | — | (20,933 | )(a) | — | — | (20,933 | ) | |||||||||||||
Total | $ | — | $ | (20,879 | ) | $ | — | $ | — | $ | (20,879 | ) | ||||||||
(a) | ||||||||||||||||||||
The balance includes CVA and MVA adjustments of $0.03 million and $0.3 million as of September 30, 2013 and December 31, 2012, respectively. | ||||||||||||||||||||
(b) | ||||||||||||||||||||
Derivative assets are presented in Lease receivables and other assets on the Condensed, Consolidated Balance Sheet. | ||||||||||||||||||||
Schedule of the effect on condensed, consolidated financial statements as a result of the non-recurring impairment charges and fair value adjustments recorded to flight equipment | ' | |||||||||||||||||||
Book Value at | Impairment | Reclassifications | Sales | Depreciation | Book Value at | |||||||||||||||
December 31, | Charges | and Other | September 30, | |||||||||||||||||
2012 | Adjustments | 2013 | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Flight equipment | $ | 2,501,544 | $ | (1,324,588 | ) | $ | (261,263 | ) | $ | (18,712 | ) | $ | (133,406 | ) | $ | 763,575 | ||||
Flight equipment held for sale | — | — | 162,250 | (153,000 | ) | — | 9,250 | |||||||||||||
Lease receivables and other assets | 6,721 | (349 | ) | 21,333 | (8,996 | ) | (2,366 | ) | 16,343 | |||||||||||
Net investment in finance and sales-type leases | — | — | 76,070 | — | — | 76,070 | ||||||||||||||
Total | $ | 2,508,265 | $ | (1,324,937 | ) | $ | -1,610 | (a) | $ | (180,708 | ) | $ | (135,772 | ) | $ | 865,238 | ||||
(a) | ||||||||||||||||||||
Represents collections and security deposits applied against the finance and sales-type leases, offset by costs capitalized to flight equipment. | ||||||||||||||||||||
Schedule of key elements effecting the fair value calculation | ' | |||||||||||||||||||
Fair Value at | Valuation | Unobservable | Range | |||||||||||||||||
September 30, 2013 | Technique | Inputs | (Weighted | |||||||||||||||||
Average) | ||||||||||||||||||||
(Dollars in | ||||||||||||||||||||
millions) | ||||||||||||||||||||
Flight Equipment(a) | $ | 765 | Income Approach | Discount Rate | 16.60% | |||||||||||||||
Remaining Holding Period | 0-10 years | |||||||||||||||||||
(4 years) | ||||||||||||||||||||
Present Value of | 0-100% | |||||||||||||||||||
Non-Contractual Cash | -39% | |||||||||||||||||||
Flows as a Percentage of | ||||||||||||||||||||
Fair Value | ||||||||||||||||||||
(a) | ||||||||||||||||||||
Includes Flight equipment for which non-recurring impairment charges and fair value adjustments were recorded during the three months ended September 30, 2013. | ||||||||||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2013 | ||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||
Schedule of notional and fair values of derivatives outstanding | ' | |||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||
Notional Value | Fair Value | Notional Value | Fair Value | |||||||||||
(Dollars in thousands) | ||||||||||||||
September 30, 2013 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Interest rate swap agreements(a) | $ | — | $ | — | $ | 221,185 | $ | (10,379 | ) | |||||
Total derivatives | $ | — | $ | (10,379 | ) | |||||||||
December 31, 2012 | ||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||
Interest rate swap agreements(a) | $ | — | $ | — | $ | 336,125 | $ | (20,933 | ) | |||||
Derivatives not designated as hedging instruments: | ||||||||||||||
Interest rate cap agreements(b) | $ | 65,985 | $ | 54 | $ | — | $ | — | ||||||
Total derivatives | $ | 54 | $ | (20,933 | ) | |||||||||
(a) | ||||||||||||||
Converts floating interest rate debt into fixed rate debt. | ||||||||||||||
(b) | ||||||||||||||
Derivative assets are presented in Lease receivables and other assets on the Condensed, Consolidated Balance Sheet. | ||||||||||||||
Schedule of gain (loss) in OCI related to derivative instruments designated as hedging instruments | ' | |||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
Gain (Loss) | 2013 | 2012 | 2013 | 2012 | ||||||||||
(Dollars in thousands) | ||||||||||||||
Effective portion of change in fair market value of derivatives: | ||||||||||||||
Interest rate swap agreements(a)(b) | $ | 2,572 | $ | 2,275 | $ | 8,987 | $ | 5,715 | ||||||
Amortization of balances of de-designated hedges and other adjustments | 282 | 282 | 847 | 847 | ||||||||||
Income tax effect | (1,007 | ) | (904 | ) | (3,471 | ) | (2,216 | ) | ||||||
Net changes in cash flow hedges, net of taxes | $ | 1,847 | $ | 1,653 | $ | 6,363 | $ | 4,346 | ||||||
(a) | ||||||||||||||
Includes $(62) and $(946) of combined CVA and MVA for the three months ended September 30, 2013 and 2012, respectively, and $(311) and $(5,864) of combined CVA and MVA for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||
(b) | ||||||||||||||
Includes the following amounts for the following periods: | ||||||||||||||
Three months ended September 30, 2013 and 2012: (i) effective portion of the unrealized gain or (loss) on derivative position recorded in OCI of $(272) and $(1,898), respectively, and (ii) amounts reclassified from AOCI primarily into interest expense when cash payments were made or received on qualifying cash flow hedges of $2,844 and $4,173, respectively. | ||||||||||||||
Nine months ended September 30, 2013 and 2012: (i) effective portion of the unrealized gain or (loss) on derivative position recorded in OCI of $(560) and $(8,136), respectively, and (ii) amounts reclassified from AOCI primarily into interest expense when cash payments were made or received on qualifying cash flow hedges of $9,547 and $13,851, respectively. | ||||||||||||||
Schedule of effect of derivatives recorded in other expenses on the condensed, consolidated statements of operations | ' | |||||||||||||
Amount of Gain or (Loss) Recognized | ||||||||||||||
in Income on Derivatives | ||||||||||||||
(Ineffective Portion)(a) | ||||||||||||||
Three Months | Nine Months | |||||||||||||
Ended | Ended | |||||||||||||
September 30, | September 30, | |||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Derivatives Designated as Cash Flow Hedges: | ||||||||||||||
Interest rate swap agreements | $ | (12 | ) | $ | (19 | ) | $ | (42 | ) | $ | (64 | ) | ||
Derivatives Not Designated as a Hedge: | ||||||||||||||
Interest rate cap agreements | — | 174 | 61 | 368 | ||||||||||
Reconciliation to Condensed, Consolidated Statements of Operations: | ||||||||||||||
Reclassification of amounts de-designated as hedges recorded in AOCI | (282 | ) | (282 | ) | (847 | ) | (847 | ) | ||||||
Effect from derivatives, net of change in hedged items due to changes in foreign exchange rates | $ | (294 | ) | $ | (127 | ) | $ | (828 | ) | $ | (543 | ) | ||
(a) | ||||||||||||||
All components of each derivative's gain or loss were included in the assessment of effectiveness. | ||||||||||||||
Fair_Value_Disclosures_of_Fina1
Fair Value Disclosures of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures of Financial Instruments | ' | ||||||||||||||||
Schedule of carrying amounts and fair values (as well as the level within the fair value hierarchy to which the valuation relates) of our financial instruments | ' | ||||||||||||||||
Estimated Fair Value | Carrying | ||||||||||||||||
Amount of | |||||||||||||||||
Asset | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | (Liability) | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
September 30, 2013 | |||||||||||||||||
Cash, including restricted cash | 121,723 | 2,024,479 | (a) | $ | — | $ | 2,146,202 | $ | 2,146,202 | ||||||||
Notes receivable | — | 19,818 | — | 19,818 | 18,098 | ||||||||||||
Debt financings (including subordinated debt) | (23,491,659 | ) | — | (23,491,659 | ) | (22,273,303 | ) | ||||||||||
Derivative liabilities | — | (10,379 | ) | — | (10,379 | ) | (10,379 | ) | |||||||||
Guarantees | — | — | (128,907 | ) | (128,907 | ) | (128,907 | ) | |||||||||
December 31, 2012 | |||||||||||||||||
Cash, including restricted cash | $ | 605,410 | $ | 3,117,565 | (a) | $ | — | $ | 3,722,975 | $ | 3,722,975 | ||||||
Notes receivable | — | 23,175 | — | 23,175 | 23,181 | ||||||||||||
Debt financings (including subordinated debt) | (18,822,645 | ) | (7,160,408 | ) | — | (25,983,053 | ) | (24,342,787 | ) | ||||||||
Derivative assets | — | 54 | — | 54 | 54 | ||||||||||||
Derivative liabilities | — | (20,933 | ) | — | (20,933 | ) | (20,933 | ) | |||||||||
Guarantees | — | — | (51,947 | ) | (51,947 | ) | (49,268 | ) | |||||||||
(a) | |||||||||||||||||
Includes restricted cash of $420.9 million (2013) and $695.4 million (2012). | |||||||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Accumulated Other Comprehensive (Loss) Income | ' | |||||||||||||||||||||
Schedule of other comprehensive income reclassification adjustments | ' | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, 2013 | September 30, 2013 | |||||||||||||||||||||
Gains and | Unrealized | Total | Gains and | Unrealized | Total | |||||||||||||||||
losses on | gains and | losses on | gains and | |||||||||||||||||||
cash flow | losses on | cash flow | losses on | |||||||||||||||||||
hedges | available- | hedges | available- | |||||||||||||||||||
for-sale | for-sale | |||||||||||||||||||||
securities | securities | |||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Balance at June 30, 2013 | $ | (8,415 | ) | $ | 516 | $ | (7,899 | ) | Balance at December 31, 2012 | $ | (12,931 | ) | $ | 440 | $ | (12,491 | ) | |||||
Other comprehensive income before reclassifications | 2,560 | 132 | 2,692 | Other comprehensive income before reclassifications | 8,945 | 249 | 9,194 | |||||||||||||||
Amounts reclassified from AOCI | 294 | — | 294 | Amounts reclassified from AOCI | 889 | — | 889 | |||||||||||||||
Income tax effect | (1,007 | ) | (47 | ) | (1,054 | ) | Income tax effect | (3,471 | ) | (88 | ) | (3,559 | ) | |||||||||
Net increase in other comprehensive income | 1,847 | 85 | 1,932 | Net increase in other comprehensive income | 6,363 | 161 | 6,524 | |||||||||||||||
Balance at September 30, 2013 | $ | (6,568 | ) | $ | 601 | $ | (5,967 | ) | Balance at September 30, 2013 | $ | (6,568 | ) | $ | 601 | $ | (5,967 | ) | |||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30, 2012 | September 30, 2012 | |||||||||||||||||||||
Gains and | Unrealized | Total | Gains and | Unrealized | Total | |||||||||||||||||
losses on | gains and | losses on | gains and | |||||||||||||||||||
cash flow | losses on | cash flow | losses on | |||||||||||||||||||
hedges | available- | hedges | available- | |||||||||||||||||||
for-sale | for-sale | |||||||||||||||||||||
securities | securities | |||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | |||||||||||||||||||||
Balance at June 30, 2012 | $ | (17,071 | ) | $ | 115 | $ | (16,956 | ) | Balance at December 31, 2011 | $ | (19,764 | ) | $ | 127 | $ | (19,637 | ) | |||||
Other comprehensive income before reclassifications | 2,256 | 362 | 2,618 | Other comprehensive income before reclassifications | 5,651 | 345 | 5,996 | |||||||||||||||
Amounts reclassified from AOCI | 301 | — | 301 | Amounts reclassified from AOCI | 911 | — | 911 | |||||||||||||||
Income tax effect | (904 | ) | — | (904 | ) | Income tax effect | (2,216 | ) | 5 | (2,211 | ) | |||||||||||
Net increase in other comprehensive income | 1,653 | 362 | 2,015 | Net increase in other comprehensive income | 4,346 | 350 | 4,696 | |||||||||||||||
Balance at September 30, 2012 | $ | (15,418 | ) | $ | 477 | $ | (14,941 | ) | Balance at September 30, 2012 | $ | (15,418 | ) | $ | 477 | $ | (14,941 | ) | |||||
Schedule of classification and amount of reclassifications from AOCI to the Condensed Consolidated Statement of Income | ' | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | Condensed, | ||||||||||||||||||||
Consolidated | ||||||||||||||||||||||
Statements of | ||||||||||||||||||||||
Operations | ||||||||||||||||||||||
September 30, | September 30, | September 30, | September 30, | Classification | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||
Cash flow hedges | ||||||||||||||||||||||
Interest rate swap agreements | $ | (12 | ) | $ | (19 | ) | $ | (42 | ) | $ | (64 | ) | Other expenses | |||||||||
Reclassification of amounts de-designated as hedges recorded in AOCI | (282 | ) | (282 | ) | (847 | ) | (847 | ) | Other expenses | |||||||||||||
(294 | ) | (301 | ) | (889 | ) | (911 | ) | |||||||||||||||
Available-for-sale securities | ||||||||||||||||||||||
Realized gains and losses on available-for-sale securities | — | — | — | — | Selling, general and administrative | |||||||||||||||||
— | — | — | — | |||||||||||||||||||
Total reclassifications | $ | (294 | ) | $ | (301 | ) | $ | (889 | ) | $ | (911 | ) | ||||||||||
Basis_of_Preparation_Details
Basis of Preparation (Details) (AIG, Minimum) | Sep. 30, 2013 |
country | |
AIG | Minimum | ' |
Basis of presentation | ' |
Customers served, number of countries | 130 |
Basis_of_Preparation_Details_2
Basis of Preparation (Details 2) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2013 |
Out of period adjustments | ' | ' |
Out of period adjustments related to prior years | ' | ' |
Decrease (increase) to pre-tax loss | $10.80 | $13.30 |
Decrease (increase) to after-tax loss | 7 | 15 |
Adjustments to interest expense to correct and fully align amortization of deferred debt issue costs and debt discounts in prior periods with the effective interest method | ' | ' |
Out of period adjustments related to prior years | ' | ' |
Decrease (increase) to pre-tax loss | 18.6 | 19.5 |
Adjustments to correctly reflect legal expenses previously paid by related party on behalf of the entity | AIG | ' | ' |
Out of period adjustments related to prior years | ' | ' |
Decrease (increase) to pre-tax loss | -6.1 | -2.5 |
Adjustments to correct lease revenue to fully align amortization of prepaid lease costs on certain leases with early termination options | ' | ' |
Out of period adjustments related to prior years | ' | ' |
Decrease (increase) to pre-tax loss | -5.1 | -5.5 |
Reversal of IRS audit interest expense incorrectly recognized in fourth quarter 2011 tax provision | ' | ' |
Out of period adjustments related to prior years | ' | ' |
Decrease (increase) to after-tax loss | ' | $8.30 |
Basis_of_Preparation_Details_3
Basis of Preparation (Details 3) (AIG, USD $) | 0 Months Ended | |
In Millions, unless otherwise specified | Jul. 15, 2013 | Dec. 09, 2012 |
Sale of ILFC common stock by AIG | ' | ' |
Parent Company | ' | ' |
Percentage of common stock to be sold by AIG | 90.00% | 80.10% |
Common stock, aggregate cash purchase price | ' | $4,200 |
Jumbo Acquisition Limited election to purchase additional common stock from AIG | ' | ' |
Parent Company | ' | ' |
Percentage of common stock to be sold by AIG | ' | 9.90% |
Common stock, aggregate cash purchase price | ' | $522.50 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes | ' | ' |
Interest refund allocation from AIG related to IRS audit adjustments | $7.50 | ' |
Favorable decision, income tax benefit and corresponding adjustment to tax basis of certain flight equipment | ' | 588 |
Reserve for uncertain tax positions | ' | 425.4 |
Net tax benefit | ' | $162.60 |
Restricted_Cash_Details
Restricted Cash (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Restricted cash | ' | ' |
Restricted cash | $420,884 | $695,388 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
trust | |||||
Equity increase (decrease): | ' | ' | ' | ' | ' |
Income taxes paid | ' | ' | $0 | $2,000,000 | ' |
AIG | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Number of trusts consolidated by parent for the management of aircraft sold to the trusts in prior years | ' | ' | 2 | ' | ' |
Compensation and other expenses recorded in additional paid in capital | ' | ' | 3,700,000 | ' | 2,600,000 |
Expense (income): | ' | ' | ' | ' | ' |
Corporate costs from related party, including allocations | 11,538,000 | 3,904,000 | 27,636,000 | 18,451,000 | ' |
Asset (liability): | ' | ' | ' | ' | ' |
Current income taxes and other tax liabilities | -286,630,000 | ' | -286,630,000 | ' | -299,333,000 |
Accrued corporate costs payable | -23,800,000 | ' | -23,800,000 | ' | -20,969,000 |
Equity increase (decrease): | ' | ' | ' | ' | ' |
Aircraft transfer to AIG, net of tax | ' | ' | ' | ' | -25,379,000 |
Aircraft contribution from AIG, net of tax | ' | ' | ' | ' | 16,690,000 |
Expenses paid by AIG on our behalf | ' | ' | 3,675,000 | ' | 2,636,000 |
Corporate aircraft transferred to AIG, tax | ' | ' | ' | ' | 11,866,000 |
Taxes on aircraft contribution from AIG | ' | ' | ' | ' | 9,211,000 |
Income taxes paid | ' | ' | 0 | ' | 1,700,000 |
AIG | Adjustment to correctly reflect legal expenses paid by related party on behalf of entity | ' | ' | ' | ' | ' |
Equity increase (decrease): | ' | ' | ' | ' | ' |
Decrease (increase) to pre-tax loss | -6,100,000 | ' | -2,500,000 | ' | ' |
Expenses paid by AIG on our behalf | ' | ' | 2,500,000 | ' | ' |
AIG | Retained earnings | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Number of corporate aircraft | ' | ' | ' | ' | 2 |
Combined net book value of aircraft transfer | ' | ' | ' | ' | 37,300,000 |
AIG | Capital contribution received | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Number of corporate aircraft | ' | ' | ' | ' | 1 |
Corporate aircraft from AIG in Lease receivables and other assets | ' | ' | ' | ' | 16,700,000 |
AIG | Insurance premiums | ' | ' | ' | ' | ' |
Related party transactions | ' | ' | ' | ' | ' |
Purchases from related party | ' | ' | 6,200,000 | 8,300,000 | ' |
AIG Markets, Inc. | ' | ' | ' | ' | ' |
Expense (income): | ' | ' | ' | ' | ' |
Interest on time deposit account | -775,000 | -1,059,000 | -2,400,000 | -2,702,000 | ' |
Asset (liability): | ' | ' | ' | ' | ' |
Time deposit account | 1,106,003,000 | ' | 1,106,003,000 | ' | 1,103,591,000 |
Derivative liabilities | -10,379,000 | ' | -10,379,000 | ' | -20,933,000 |
Equity increase (decrease): | ' | ' | ' | ' | ' |
Period to maturity of time deposit account | ' | ' | '30 days | ' | ' |
AIG Markets, Inc. | Derivative contracts | ' | ' | ' | ' | ' |
Expense (income): | ' | ' | ' | ' | ' |
Income from related party | 294,000 | 301,000 | 889,000 | 911,000 | ' |
Interest | 2,844,000 | 4,173,000 | 9,547,000 | 13,851,000 | ' |
Subsidiaries of AIG | Management services agreements | ' | ' | ' | ' | ' |
Expense (income): | ' | ' | ' | ' | ' |
Expense from related party | ' | 40,000 | 126,000 | 156,000 | ' |
Related parties | Management services agreements | ' | ' | ' | ' | ' |
Expense (income): | ' | ' | ' | ' | ' |
Income from related party | ($2,261,000) | ($2,219,000) | ($6,444,000) | ($6,683,000) | ' |
Other_Income_Details
Other Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other income | ' | ' | ' | ' |
Interest and Other | $14,234 | $20,737 | $63,392 | $47,223 |
Total | 23,167 | 34,089 | 96,269 | 81,848 |
AeroTurbine | ' | ' | ' | ' |
Other income | ' | ' | ' | ' |
Revenue : Engines, airframes, parts and supplies | 78,955 | 81,267 | 233,974 | 226,261 |
Cost of sales | -70,022 | -67,915 | -201,097 | -191,636 |
Gross profit | $8,933 | $13,352 | $32,877 | $34,625 |
Aircraft_Impairment_Charges_on1
Aircraft Impairment Charges on Flight Equipment Held for Use (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
aircraft | aircraft | aircraft | aircraft | |
Aircraft impairment charges on flight equipment held for use | ' | ' | ' | ' |
Impairment Charges | $1,104,625,000 | $61,237,000 | $1,139,863,000 | $102,662,000 |
Aircraft Impaired | 36 | 6 | 40 | 10 |
Held for use, number of previously impaired aircraft | ' | 1 | ' | 1 |
Change in estimated useful life | ' | ' | ' | ' |
Aircraft impairment charges on flight equipment held for use | ' | ' | ' | ' |
Number of aircraft | 55 | ' | 55 | ' |
Aircraft Impaired | 32 | ' | ' | ' |
Estimated increase in depreciation expense, remainder of year | 7,000,000 | ' | 7,000,000 | ' |
Estimated annual increase in depreciation expense for December 31, 2014 | 23,000,000 | ' | 23,000,000 | ' |
Widebody aircraft | ' | ' | ' | ' |
Aircraft impairment charges on flight equipment held for use | ' | ' | ' | ' |
Impairment Charges | $1,000,000,000 | ' | ' | ' |
Number of engines in aircraft | 4 | ' | ' | ' |
Aircraft_Impairment_Charges_an2
Aircraft Impairment Charges and Fair Value Adjustments on Flight Equipment Sold or to be Disposed (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
aircraft | aircraft | aircraft | aircraft | |
Impairment charges and fair value adjustments on flight equipment sold or to be disposed of | ' | ' | ' | ' |
Aircraft Impaired or Adjusted | 9 | 15 | 37 | 23 |
Impairment Charges and Fair Value Adjustments | $57,487 | $35,932 | $185,074 | $88,059 |
Aircraft likely to be sold or sold | ' | ' | ' | ' |
Impairment charges and fair value adjustments on flight equipment sold or to be disposed of | ' | ' | ' | ' |
Aircraft Impaired or Adjusted | 3 | 5 | 18 | 9 |
Impairment Charges and Fair Value Adjustments | 8,500 | 5,200 | 87,300 | 43,000 |
Number of aircraft reclassified into flight equipment held for sale when held for sale criteria met | ' | ' | 11 | ' |
Number of aircraft transferred to flight equipment when criteria of flight equipment held for sale was met and sold | ' | ' | 10 | ' |
Aircraft impaired or adjusted twice | ' | ' | ' | 1 |
Held for sale aircraft sold or transferred from held for sale back to flight equipment | ' | ' | ' | ' |
Impairment charges and fair value adjustments on flight equipment sold or to be disposed of | ' | ' | ' | ' |
Aircraft Impaired or Adjusted | ' | 4 | ' | 4 |
Impairment Charges and Fair Value Adjustments | ' | 4,100 | ' | 4,100 |
Aircraft intended to be or designated for part-out | ' | ' | ' | ' |
Impairment charges and fair value adjustments on flight equipment sold or to be disposed of | ' | ' | ' | ' |
Aircraft Impaired or Adjusted | 6 | 6 | 19 | 10 |
Impairment Charges and Fair Value Adjustments | $49,000 | $26,600 | $97,800 | $41,000 |
Aircraft impaired or adjusted twice | ' | ' | 1 | ' |
Engines impaired or adjusted | 2 | 9 | 6 | 13 |
Lease_Receivables_and_Other_As2
Lease Receivables and Other Assets (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Lease Receivables and Other Assets | ' | ' |
Lease receivables | $209,657 | $199,694 |
AeroTurbine Inventory | 200,508 | 149,390 |
Lease incentive costs, net of amortization | 175,956 | 128,616 |
Straight-line rents and other assets | 203,308 | 226,609 |
Goodwill and Other intangible assets | 46,778 | 48,887 |
Notes and trade receivables, net of allowance | 18,098 | 23,181 |
Derivative assets | ' | 54 |
Total | 854,305 | 776,431 |
Interest rate on notes receivable, minimum (as a percent) | 2.00% | ' |
Interest rate on notes receivable, maximum (as a percent) | 10.50% | ' |
Allowance for credit losses | ' | ' |
Balance at the beginning of the period | ' | 41,396 |
Provision | ' | -9,727 |
Write-offs | ' | ($31,669) |
Debt_Financings_Details
Debt Financings (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 |
Adjustments to interest expense to correct and fully align amortization of deferred debt issue costs and debt discounts in prior periods with the effective interest method | Adjustments to interest expense to correct and fully align amortization of deferred debt issue costs and debt discounts in prior periods with the effective interest method | AeroTurbine Revolving Credit Agreement | Senior Debt Obligations | Senior Debt Obligations | Senior Debt Obligations | Senior Debt Obligations | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | |||
Adjustments to interest expense to correct and fully align amortization of deferred debt issue costs and debt discounts in prior periods with the effective interest method | Adjustments to interest expense to correct and fully align amortization of debt discounts in prior periods with the effective interest method | aircraft | Senior secured bonds | Senior secured bonds | ECA and Ex-Im financings | ECA and Ex-Im financings | Bank debt | Bank debt | Bank debt | Bank debt | Institutional secured term loans | Institutional secured term loans | AeroTurbine Revolving Credit Agreement | Bonds and medium-term notes | Bonds and medium-term notes | |||||||||||
aircraft | aircraft | aircraft | Consolidated VIEs | Consolidated VIEs | aircraft | Subsidiary borrower | ||||||||||||||||||||
Debt financings and information regarding the collateral provided for secured debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt outstanding, before discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,286,875,000 | ' | $3,900,000,000 | $3,900,000,000 | $1,828,648,000 | $2,193,229,000 | $1,808,227,000 | $1,961,143,000 | ' | ' | $750,000,000 | $1,450,000,000 | ' | ' | ' | $13,025,538,000 | $13,890,747,000 |
Net Book Value of Collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,904,170,000 | ' | 5,962,533,000 | ' | 5,015,092,000 | ' | 2,622,782,000 | ' | ' | ' | 1,303,763,000 | ' | ' | ' | ' | ' | ' |
Number of Aircraft | ' | ' | ' | ' | ' | ' | ' | ' | ' | 405 | ' | 174 | ' | 118 | ' | 61 | ' | ' | ' | 52 | ' | ' | ' | ' | ' | ' |
Less: Deferred debt discount | ' | ' | ' | ' | ' | ' | ' | ' | ' | -5,398,000 | -15,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -33,712,000 | -37,207,000 | ' | ' |
Secured debt financing, net of deferred debt discount | 8,281,477,000 | 9,489,247,000 | ' | ' | ' | ' | ' | ' | ' | 8,281,477,000 | 9,489,247,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unsecured debt financing, net of deferred debt discount | 12,991,826,000 | 13,853,540,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,991,826,000 | 13,853,540,000 | ' | ' |
Subordinated debt | 1,000,000,000 | 1,000,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt financing, net of deferred debt discount | 22,273,303,000 | 24,342,787,000 | ' | ' | ' | 21,273,303,000 | 23,342,787,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-recourse to ILFC | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 177,900,000 | 270,500,000 | ' | ' | ' | ' | ' | ' | ' |
Decrease (increase) to pre-tax loss | ' | ' | 18,600,000 | 19,500,000 | ' | ' | ' | 18,600,000 | 4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding under the facility | ' | ' | ' | ' | $260,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $334,500,000 | ' | ' | ' | ' |
Debt_Financings_Details_2
Debt Financings (Details 2) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Aug. 20, 2010 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 20, 2010 | Aug. 20, 2010 | Aug. 20, 2010 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 19, 2012 | Sep. 30, 2013 | Mar. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | |||
Senior secured bonds | Senior secured bonds | Senior secured bonds | Senior secured bonds | Senior secured notes 6.5 % due September 2014 | Senior secured notes 6.75% Due September 2016 | Senior secured notes 7.125% Due September 2018 | 2004 ECA facility | 2004 ECA facility | 2004 ECA facility | 2004 ECA facility | 2004 ECA facility | 1999 ECA facility | Aggregated 1999 ECA facility and 2004 ECA facility | Aggregated 1999 ECA facility and 2004 ECA facility | Ex-Im Financings | Ex-Im Financings | 2011 Secured Term Loan | 2011 Secured Term Loan | 2011 Secured Term Loan | 2011 Secured Term Loan | ||||
subsidiary | Minimum | Maximum | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | LIBOR | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | LIBOR | Base rate | ||||||||||
aircraft | Minimum | Maximum | Non-restricted subsidiary | Maximum | aircraft | Non-restricted subsidiary | Non-restricted subsidiary | |||||||||||||||||
subsidiary | ||||||||||||||||||||||||
Debt financings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of debt | ' | ' | ' | $3,900,000,000 | ' | ' | ' | $1,350,000,000 | $1,275,000,000 | $1,275,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | $287,000,000 | ' | ' | ' | ' | ' |
Interest rate on debt (as a percent) | ' | ' | ' | ' | ' | ' | ' | 6.50% | 6.75% | 7.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.49% | ' | ' | ' | ' |
Number of aircraft designated as collateral | ' | ' | ' | 174 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54 | ' | ' | ' |
Number of subsidiaries which either own or hold leases of aircraft included in the pool securing the notes | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of days' notice that the entity must provide for the redemption of notes | ' | ' | ' | ' | ' | '30 days | '60 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment penalty percentage | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of sinking fund | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt discount, amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' |
New financing availability | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,600,000,000 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' |
Interest rate at period end (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.35% | 4.71% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'Base Rate |
Margin added to variable rate basis (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.75% | 1.75% |
Flight equipment pledged as collateral | ' | ' | 14,904,170,000 | ' | 5,962,533,000 | ' | ' | ' | ' | ' | 3,600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,400,000,000 | ' | ' | ' |
Segregated security deposits, overhaul rentals and rental payments | 420,884,000 | 695,388,000 | ' | ' | ' | ' | ' | ' | ' | ' | 404,700,000 | 405,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan-to-value ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | 65.00% | ' | ' | ' |
Number of subsidiaries entered into loan agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' |
Initial maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000,000 | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000,000 | ' | ' |
Debt_Financings_Details_3
Debt Financings (Details 3) (USD $) | 9 Months Ended | 9 Months Ended | 9 Months Ended | 1 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 23, 2012 | Sep. 30, 2013 | 31-May-09 | Sep. 30, 2013 | Jan. 16, 2013 | Sep. 30, 2013 | 31-May-09 | 31-May-09 | Mar. 20, 2013 | Sep. 30, 2013 | Jun. 30, 2009 | Sep. 30, 2013 | Mar. 31, 2012 | Sep. 30, 2013 | Mar. 29, 2013 | Mar. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 05, 2013 | Sep. 30, 2013 | Feb. 23, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Feb. 23, 2012 | Feb. 23, 2012 | Apr. 05, 2013 | Sep. 30, 2013 | Apr. 05, 2013 | Apr. 05, 2013 | 30-May-13 | Sep. 30, 2013 | Apr. 12, 2012 | Apr. 12, 2012 | |
AeroTurbine Revolving Credit Agreement | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | ||||
AeroTurbine Revolving Credit Agreement | AeroTurbine Revolving Credit Agreement | AeroTurbine Revolving Credit Agreement | Subordinated financing, related party, May 2009 | Subordinated financing, related party, May 2009 | 2009 Aircraft Financings, Borrowings from third parties | 2009 Aircraft Financings, Borrowings from third parties | 2009 Aircraft Financings, Borrowings from third parties | 2009 Aircraft Financings, Borrowings from third parties | Aircraft financings June 2009 | Aircraft financings June 2009 | Aircraft financings June 2009 | Aircraft financings June 2009 | Term loan facility March 2012 | Term loan facility March 2012 | Term loan facility March 2012 | Term loan facility March 2012 | Term loan facility March 2012 | Term loan facility March 2012 | 2012 term loan, maturing on June 30, 2017 | 2012 term loan, maturing on June 30, 2017 | 2012 term loan, maturing on June 30, 2017 | 2012 term loan, maturing on June 30, 2017 | 2012 term loan, maturing on June 30, 2017 | 2012 term loan, maturing on June 30, 2017 | 2012 term loan, maturing on June 30, 2017 | Amended 2012 term loan, maturing on June 30, 2017 | Amended 2012 term loan, maturing on June 30, 2017 | Amended 2012 term loan, maturing on June 30, 2017 | Amended 2012 term loan, maturing on June 30, 2017 | 2012 term loan, maturing on April 12, 2016 | 2012 term loan, maturing on April 12, 2016 | 2012 term loan, maturing on April 12, 2016 | 2012 term loan, maturing on April 12, 2016 | |||||||
Subsidiary borrower | Subsidiary borrower | LIBOR | Non-restricted subsidiary | LIBOR | Non-restricted subsidiary | LIBOR | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | Prior to March 30, 2014 | Period between March 30, 2014 and March 30, 2015 | Non-restricted subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | LIBOR | Base rate | Non-restricted subsidiary | LIBOR | Base rate | Non-restricted subsidiary | LIBOR | ||||||||||||||||
Subsidiary borrower | Non-restricted subsidiary | Non-restricted subsidiary | aircraft | aircraft | subsidiary | Non-restricted subsidiary | Non-restricted subsidiary | aircraft | Maximum | Non-restricted subsidiary | Non-restricted subsidiary | aircraft | subsidiary | Non-restricted subsidiary | ||||||||||||||||||||||||||
subsidiary | ||||||||||||||||||||||||||||||||||||||||
Debt financings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | $430,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $203,000,000 | $203,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional increase in borrowing capacity on the line of credit available at the entity's option | ' | ' | ' | ' | ' | ' | 70,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable rate basis | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | ' | 'LIBOR | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'Base Rate | ' | ' | 'LIBOR | 'Base Rate | ' | ' | ' | 'LIBOR |
Margin added to variable rate basis (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | 3.00% | ' | ' | 2.75% | 1.75% | ' | ' | ' | 3.75% |
Amount outstanding under the facility | ' | ' | ' | 260,000,000 | ' | ' | 334,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 178,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Subordinated financing provided to an indirect, wholly owned subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of subsidiaries entered into loan agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' |
Issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106,000,000 | ' | ' | ' | 55,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 900,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000,000 | ' |
Write off of unamortized deferred financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' | 800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan outstanding | 22,273,303,000 | ' | 24,342,787,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 750,000,000 | ' | ' | ' | ' | ' | ' | ' |
Net book value of aircraft | ' | ' | ' | ' | 14,904,170,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,660,000,000 | ' | ' | ' | ' | 1,270,000,000 | ' | ' | ' | ' | ' | ' |
Aircraft owned by subsidiary | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loan due for payment in 2014 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.58% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of aircraft designated as collateral | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62 | ' | ' | ' | ' | ' | 52 | ' | ' | ' | ' | ' | ' |
Loan-to-value ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 54.00% | ' | ' | ' | ' | ' | 59.00% | ' | ' | ' | ' | ' | ' |
Required loan-to-value ratio (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 63.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate floor (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | 0.75% | ' | ' | ' | ' | 1.00% |
Average interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.73% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment penalty percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Boeing 737-800s aircraft to be financed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amortization period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 106,000,000 | ' | ' | ' | 55,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 550,000,000 | ' | ' |
Write off of unamortized deferred financing costs and deferred debt discount | $17,695,000 | $22,934,000 | ' | ' | $17,700,000 | $22,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12,300,000 | ' | ' | ' |
Debt_Financings_Details_4
Debt Financings (Details 4) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Apr. 30, 2010 | Sep. 30, 2013 | Apr. 06, 2010 | Mar. 22, 2010 | Apr. 30, 2010 | Sep. 30, 2013 | Apr. 06, 2010 | Mar. 22, 2010 | Sep. 30, 2013 |
Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Secured Debt | |
Notes issued under Shelf Registration Statements | 3.875% notes due 2018 | 4.625% notes due 2021 | Floating rate notes due 2016 | Floating rate notes due 2016 | Notes outstanding under Shelf Registration Statements and bearing a fixed rate of interest | 8.625% other senior notes due September 15, 2015 | 8.625% other senior notes due September 15, 2015 | 8.625% other senior notes due September 15, 2015 | 8.625% other senior notes due September 15, 2015 | 8.750% other senior notes due March 15, 2017 | 8.750% other senior notes due March 15, 2017 | 8.750% other senior notes due March 15, 2017 | 8.750% other senior notes due March 15, 2017 | ||
LIBOR | |||||||||||||||
Debt financings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount outstanding | $10,300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $8,286,875,000 |
Face amount of debt | ' | 750,000,000 | 500,000,000 | 550,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Issuance of debt | ' | ' | ' | ' | ' | ' | 1,250,000,000 | ' | ' | ' | 1,500,000,000 | ' | ' | ' | ' |
Interest rate on debt (as a percent) | ' | 3.88% | 4.63% | ' | ' | ' | ' | ' | 8.63% | 8.63% | ' | ' | 8.75% | 8.75% | ' |
Variable rate basis | ' | ' | ' | ' | '3-month LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Margin added to variable rate basis (as a percent) | ' | ' | ' | ' | 1.95% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end (as a percent) | ' | ' | ' | 2.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on fixed rate notes, minimum (as a percent) | ' | ' | ' | ' | ' | 3.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate on fixed rate notes, maximum (as a percent) | ' | ' | ' | ' | ' | 8.88% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of sinking fund | $0 | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | $0 | ' | ' | ' |
Debt_Financings_Details_5
Debt Financings (Details 5) (USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 9 Months Ended | ||||||||||
In Millions, unless otherwise specified | Dec. 31, 2005 | Dec. 31, 2005 | Dec. 31, 2005 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2005 | Dec. 31, 2005 | Dec. 31, 2005 | Dec. 31, 2005 | Apr. 01, 2013 | Oct. 09, 2012 | Sep. 30, 2013 | Sep. 30, 2013 |
Subordinated Debt | Subordinated debt, $400 million tranche | Subordinated debt, $400 million tranche | Subordinated debt, $400 million tranche | Subordinated debt, $400 million tranche | Subordinated debt, $400 million tranche | Subordinated debt, $600 million tranche | Subordinated debt, $600 million tranche | Subordinated debt, $600 million tranche | Subordinated debt, $600 million tranche | Subordinated debt, $600 million tranche | Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | |
tranche | Before call option date of December 21, 2015 | LIBOR | 10-year constant maturity treasury | 30-year constant maturity treasury | LIBOR | 10-year constant maturity treasury | 30-year constant maturity treasury | 2012 Credit Facility | 2012 Credit Facility | 2012 Credit Facility | 2012 Credit Facility | ||||
Call option date of December 21, 2015 and thereafter | Call option date of December 21, 2015 and thereafter | Call option date of December 21, 2015 and thereafter | bank | LIBOR | Base rate | ||||||||||
Debt financings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum aggregate available amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,300 | $2,300 | ' | ' |
Term of debt instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | '3 years | ' | ' |
Number of banks providing financing under the credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10 | ' | ' |
Variable rate basis | ' | ' | ' | '3-month LIBOR | '10-year constant maturity treasury | '30-year constant maturity treasury | ' | ' | '3-month LIBOR | '10-year constant maturity treasury | '30-year constant maturity treasury | ' | ' | 'LIBOR | 'Base Rate |
Margin added to variable rate basis (as a percent) | ' | ' | ' | 1.80% | 1.80% | 1.80% | ' | ' | 1.55% | 1.55% | 1.55% | ' | ' | 2.25% | ' |
Number of tranches | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of debt issued | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt | ' | 400 | ' | ' | ' | ' | ' | 600 | ' | ' | ' | ' | ' | ' | ' |
Fixed interest rate (as a percent) | ' | ' | 6.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at period end (as a percent) | ' | ' | ' | ' | ' | ' | 5.35% | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption price of debt instrument (as a percent) | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of the bonds that must remain outstanding if partial redemption occurs | ' | ' | ' | ' | ' | ' | $50 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt_Financings_Details_6
Debt Financings (Details 6) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | 30-May-13 | Sep. 30, 2013 | Apr. 05, 2013 | Sep. 30, 2013 | |
Secured debt financing | Secured debt financing | Secured debt financing | Secured debt financing | Secured debt financing | Secured debt financing | Secured debt financing | Secured debt financing | Secured debt financing | Secured debt financing | |||
2009 Aircraft Financings, Borrowings from third parties | Aircraft financings June 2009 | Secured credit facility dated October 13, 2006 | Secured term loan entered into in 2010 | 2012 term loan, maturing on April 12, 2016 | 2012 term loan, maturing on April 12, 2016 | 2012 term loan, maturing on June 30, 2017 | 2012 term loan, maturing on June 30, 2017 | |||||
Debt financings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment of debt | ' | ' | ' | ' | $106,000,000 | $55,400,000 | $456,900,000 | $750,000,000 | ' | $550,000,000 | $150,000,000 | $150,000,000 |
Write off of unamortized deferred financing costs and deferred debt discount | $17,695,000 | $22,934,000 | $17,700,000 | $22,900,000 | ' | ' | ' | ' | $12,300,000 | ' | ' | ' |
Security_Deposits_on_Aircraft_2
Security Deposits on Aircraft, Deferred Overhaul Rentals and Other Customer Deposits (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Security Deposits on Aircraft, Deferred Overhaul Rentals and Other Customer Deposits | ' | ' |
Security deposits paid by lessees | $1,138,026 | $1,115,213 |
Deferred overhaul rentals | 853,385 | 754,175 |
Rents received in advance and Straight-line rents | 447,234 | 453,837 |
Other customer deposits | 217,634 | 201,756 |
Total | $2,656,279 | $2,524,981 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Aircraft orders, USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | engine |
aircraft | |
Commitments and contingencies | ' |
Number of aircraft committed to purchase | 338 |
Number of used aircraft committed to purchase | 2 |
Number of new spare engines committed to purchase | 9 |
Aggregate estimated total remaining payments or purchase commitments | $21,900 |
Other flight equipment purchase agreements | AeroTurbine | ' |
Commitments and contingencies | ' |
Number of used aircraft committed to purchase | 2 |
Number of new spare engines committed to purchase | 3 |
Aggregate estimated total remaining payments or purchase commitments | $24.30 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
aircraft | guarantee | aircraft | guarantee | |
guarantee | guarantee | |||
Guarantees | ' | ' | ' | ' |
Total reserves, carrying balance of guarantees | $128.90 | ' | $128.90 | ' |
Asset Value Guarantees | ' | ' | ' | ' |
Guarantees | ' | ' | ' | ' |
Number of guarantee obligations | ' | ' | 12 | ' |
Number of guarantees performed | ' | ' | 6 | ' |
Number of aircraft purchased under guarantee performance | 3 | ' | 5 | ' |
Number of aircraft purchased under guarantee performance, which were subsequently sold | ' | ' | 3 | ' |
Total reserves, carrying balance of guarantees | 125.5 | ' | 125.5 | ' |
Maximum aggregate potential commitment under guarantees | 330.6 | ' | 330.6 | ' |
Provisions for losses on asset value guarantees for guarantee obligations | 93.9 | 31.3 | 100.5 | 31.3 |
Number of reserves for guarantee obligations | 4 | 3 | 6 | 3 |
Asset Value Guarantees | Airbus A340-600 aircraft | ' | ' | ' | ' |
Guarantees | ' | ' | ' | ' |
Number of aircraft for which the estimated fair market values declined significantly | 4 | ' | ' | ' |
Aircraft Loan Guarantees | ' | ' | ' | ' |
Guarantees | ' | ' | ' | ' |
Number of guarantee obligations | ' | ' | 1 | ' |
Maximum aggregate potential commitment under guarantees | $4.20 | ' | $4.20 | ' |
Variable_Interest_Entities_Det
Variable Interest Entities (Details) (Agreement to manage aircraft for servicing fee) | 9 Months Ended |
Sep. 30, 2013 | |
entity | |
VIEs, not primary beneficiary | ' |
Variable interest entities | ' |
Number of entities in which the entity has variable interests | 1 |
Consolidated VIEs | ' |
Variable interest entities | ' |
Number of entities in which the entity has variable interests | 2 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Fair value measurements | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | $54,000 |
Derivative liabilities | -10,379,000 | ' | -10,379,000 | ' | -20,933,000 |
Effect on condensed, consolidated financial statements as a result of the non-recurring impairment charges and fair value adjustments recorded on Flight equipment | ' | ' | ' | ' | ' |
Impairment Charges | ' | ' | -1,324,937,000 | -190,721,000 | ' |
Depreciation | -459,426,000 | -482,098,000 | -1,386,793,000 | -1,440,502,000 | ' |
Recurring basis | Level 2 | ' | ' | ' | ' | ' |
Fair value measurements | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | 54,000 |
Derivative liabilities | -10,379,000 | ' | -10,379,000 | ' | -20,933,000 |
Total derivative assets, net | -10,379,000 | ' | -10,379,000 | ' | -20,879,000 |
CVA and MVA adjustments | 30,000 | ' | 30,000 | ' | 300,000 |
Recurring basis | Fair Value | ' | ' | ' | ' | ' |
Fair value measurements | ' | ' | ' | ' | ' |
Derivative assets | ' | ' | ' | ' | 54,000 |
Derivative liabilities | -10,379,000 | ' | -10,379,000 | ' | -20,933,000 |
Total derivative assets, net | -10,379,000 | ' | -10,379,000 | ' | -20,879,000 |
Non-recurring basis | Level 3 | Impairment charges and fair value adjustments, nine months ended September 30, 2013 | ' | ' | ' | ' | ' |
Effect on condensed, consolidated financial statements as a result of the non-recurring impairment charges and fair value adjustments recorded on Flight equipment | ' | ' | ' | ' | ' |
Book Value at beginning of the period | ' | ' | 2,508,265,000 | ' | ' |
Impairment Charges | ' | ' | -1,324,937,000 | ' | ' |
Reclassifications and Other Adjustments | ' | ' | -1,610,000 | ' | ' |
Sales | ' | ' | -180,708,000 | ' | ' |
Depreciation | ' | ' | -135,772,000 | ' | ' |
Book Value at end of the period | 865,238,000 | ' | 865,238,000 | ' | ' |
Non-recurring basis | Level 3 | Flight equipment | Impairment charges and fair value adjustments, nine months ended September 30, 2013 | ' | ' | ' | ' | ' |
Effect on condensed, consolidated financial statements as a result of the non-recurring impairment charges and fair value adjustments recorded on Flight equipment | ' | ' | ' | ' | ' |
Book Value at beginning of the period | ' | ' | 2,501,544,000 | ' | ' |
Impairment Charges | ' | ' | -1,324,588,000 | ' | ' |
Reclassifications and Other Adjustments | ' | ' | -261,263,000 | ' | ' |
Sales | ' | ' | -18,712,000 | ' | ' |
Depreciation | ' | ' | -133,406,000 | ' | ' |
Book Value at end of the period | 763,575,000 | ' | 763,575,000 | ' | ' |
Non-recurring basis | Level 3 | Flight equipment held for sale | Impairment charges and fair value adjustments, nine months ended September 30, 2013 | ' | ' | ' | ' | ' |
Effect on condensed, consolidated financial statements as a result of the non-recurring impairment charges and fair value adjustments recorded on Flight equipment | ' | ' | ' | ' | ' |
Reclassifications and Other Adjustments | ' | ' | 162,250,000 | ' | ' |
Sales | ' | ' | -153,000,000 | ' | ' |
Book Value at end of the period | 9,250,000 | ' | 9,250,000 | ' | ' |
Non-recurring basis | Level 3 | Lease receivables and other assets | Impairment charges and fair value adjustments, nine months ended September 30, 2013 | ' | ' | ' | ' | ' |
Effect on condensed, consolidated financial statements as a result of the non-recurring impairment charges and fair value adjustments recorded on Flight equipment | ' | ' | ' | ' | ' |
Book Value at beginning of the period | ' | ' | 6,721,000 | ' | ' |
Impairment Charges | ' | ' | -349,000 | ' | ' |
Reclassifications and Other Adjustments | ' | ' | 21,333,000 | ' | ' |
Sales | ' | ' | -8,996,000 | ' | ' |
Depreciation | ' | ' | -2,366,000 | ' | ' |
Book Value at end of the period | 16,343,000 | ' | 16,343,000 | ' | ' |
Non-recurring basis | Level 3 | Net investment in finance and sales-type leases | Impairment charges and fair value adjustments, nine months ended September 30, 2013 | ' | ' | ' | ' | ' |
Effect on condensed, consolidated financial statements as a result of the non-recurring impairment charges and fair value adjustments recorded on Flight equipment | ' | ' | ' | ' | ' |
Reclassifications and Other Adjustments | ' | ' | 76,070,000 | ' | ' |
Book Value at end of the period | $76,070,000 | ' | $76,070,000 | ' | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (Flight Equipment, USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Inputs to Recurring and Non-Recurring Fair Value Measurements Categorized as Level 3 | ' |
Estimated useful life over which aircraft will be leased based on general assumption | '25 years |
Non-recurring basis | Level 3 | ' |
Inputs to Recurring and Non-Recurring Fair Value Measurements Categorized as Level 3 | ' |
Fair Value | 765,000 |
Non-recurring basis | Level 3 | Low end of range | Income Approach | ' |
Inputs to Recurring and Non-Recurring Fair Value Measurements Categorized as Level 3 | ' |
Remaining Holding Period | '0 years |
Present Value of Non-Contractual Cash Flows as a Percentage of Fair Value | 0.00% |
Non-recurring basis | Level 3 | High end of range | Income Approach | ' |
Inputs to Recurring and Non-Recurring Fair Value Measurements Categorized as Level 3 | ' |
Remaining Holding Period | '10 years |
Present Value of Non-Contractual Cash Flows as a Percentage of Fair Value | 100.00% |
Non-recurring basis | Level 3 | Weighted Average | Income Approach | ' |
Inputs to Recurring and Non-Recurring Fair Value Measurements Categorized as Level 3 | ' |
Discount Rate (as a percent) | 16.60% |
Remaining Holding Period | '4 years |
Present Value of Non-Contractual Cash Flows as a Percentage of Fair Value | 39.00% |
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
contract | ||
Notional and fair values of derivatives outstanding | ' | ' |
Master netting agreements, number of contracts in default to allow for netting of derivative assets and liabilities | 1 | ' |
Asset Derivatives, Fair Value | ' | $54 |
Liability Derivatives, Fair Value | -10,379 | -20,933 |
Interest rate cap agreements | Unrelated counterparty | ' | ' |
Notional and fair values of derivatives outstanding | ' | ' |
Number of derivative agreements (in contracts) | 2 | ' |
Derivatives designated as hedging instruments | Interest rate swap agreements | ' | ' |
Notional and fair values of derivatives outstanding | ' | ' |
Liability Derivatives, Notional Value | 221,185 | 336,125 |
Liability Derivatives, Fair Value | -10,379 | -20,933 |
Derivatives not designated as hedging instruments | Interest rate cap agreements | ' | ' |
Notional and fair values of derivatives outstanding | ' | ' |
Asset Derivatives, Notional Value | ' | 65,985 |
Asset Derivatives, Fair Value | ' | $54 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Changes in hedges recorded in OCI related to derivative instruments | ' | ' | ' | ' |
Income tax effect | ($1,007,000) | ($904,000) | ($3,471,000) | ($2,216,000) |
Net changes in cash flow hedges, net of taxes | 1,847,000 | 1,653,000 | 6,363,000 | 4,346,000 |
Estimated period for the approximate transfer of the pre-tax balance in AOCI into earnings | ' | ' | '12 months | ' |
Amortization of the pre-tax balance in AOCI into earnings under cash flow hedge accounting | ' | ' | -8,400,000 | ' |
Reconciliation to Condensed, Consolidated Statements of Operations: | ' | ' | ' | ' |
Effect from derivatives, net of change in hedged items due to changes in foreign exchange rates | -294,000 | -127,000 | -828,000 | -543,000 |
Interest rate swap agreements | ' | ' | ' | ' |
Changes in hedges recorded in OCI related to derivative instruments | ' | ' | ' | ' |
Effective portion of change in fair market value of derivatives | 2,572,000 | 2,275,000 | 8,987,000 | 5,715,000 |
Combined CVA and MVA | -62,000 | -946,000 | -311,000 | -5,864,000 |
Effective portion of the unrealized gain or (loss) on derivative position recorded in OCI | -272,000 | -1,898,000 | -560,000 | -8,136,000 |
Amounts reclassified from AOCI | 2,844,000 | 4,173,000 | 9,547,000 | 13,851,000 |
Effect of derivatives recorded in the Condensed, Consolidated Statements of Income | ' | ' | ' | ' |
Derivatives Designated as Cash Flow Hedges, Amount of Gain or (Loss) Recognized in Income on Derivatives (Ineffective Portion) | -12,000 | -19,000 | -42,000 | -64,000 |
Interest rate cap agreements | ' | ' | ' | ' |
Effect of derivatives recorded in the Condensed, Consolidated Statements of Income | ' | ' | ' | ' |
Derivatives Not Designated as a Hedge, Amount of Gain or (Loss) Recognized in Income on Derivatives | ' | 174,000 | 61,000 | 368,000 |
De-designated hedges | ' | ' | ' | ' |
Changes in hedges recorded in OCI related to derivative instruments | ' | ' | ' | ' |
Amounts reclassified from AOCI | 282,000 | 282,000 | 847,000 | 847,000 |
Reconciliation to Condensed, Consolidated Statements of Operations: | ' | ' | ' | ' |
Reclassifications from AOCI to income | ($282,000) | ($282,000) | ($847,000) | ($847,000) |
Fair_Value_Disclosures_of_Fina2
Fair Value Disclosures of Financial Instruments (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Carrying amounts and fair values of financial instruments | ' | ' |
Restricted cash | $420,884 | $695,388 |
Carrying Amount of Asset (Liability) | ' | ' |
Carrying amounts and fair values of financial instruments | ' | ' |
Cash, including restricted cash | 2,146,202 | 3,722,975 |
Notes receivable | 18,098 | 23,181 |
Debt financings (including subordinated debt) | -22,273,303 | -24,342,787 |
Derivative assets | ' | 54 |
Derivative liabilities | -10,379 | -20,933 |
Guarantees | -128,907 | -49,268 |
Estimated Fair Value, Level 1 | ' | ' |
Carrying amounts and fair values of financial instruments | ' | ' |
Cash, including restricted cash | 121,723 | 605,410 |
Debt financings (including subordinated debt) | ' | -18,822,645 |
Estimated Fair Value, Level 2 | ' | ' |
Carrying amounts and fair values of financial instruments | ' | ' |
Cash, including restricted cash | 2,024,479 | 3,117,565 |
Notes receivable | 19,818 | 23,175 |
Debt financings (including subordinated debt) | -23,491,659 | -7,160,408 |
Derivative assets | ' | 54 |
Derivative liabilities | -10,379 | -20,933 |
Restricted cash | 420,900 | 695,400 |
Estimated Fair Value, Level 3 | ' | ' |
Carrying amounts and fair values of financial instruments | ' | ' |
Guarantees | -128,907 | -51,947 |
Estimated Fair Value, Total | ' | ' |
Carrying amounts and fair values of financial instruments | ' | ' |
Cash, including restricted cash | 2,146,202 | 3,722,975 |
Notes receivable | 19,818 | 23,175 |
Debt financings (including subordinated debt) | -23,491,659 | -25,983,053 |
Derivative assets | ' | 54 |
Derivative liabilities | -10,379 | -20,933 |
Guarantees | ($128,907) | ($51,947) |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive (Loss) Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Other comprehensive income reclassification adjustments | ' | ' | ' | ' |
Balance at the beginning of the period | ($7,899) | ($16,956) | ($12,491) | ($19,637) |
Other comprehensive income before reclassifications | 2,692 | 2,618 | 9,194 | 5,996 |
Amounts reclassified from AOCI | 294 | 301 | 889 | 911 |
Income tax effect | -1,054 | -904 | -3,559 | -2,211 |
Total other comprehensive income (Loss) | 1,932 | 2,015 | 6,524 | 4,696 |
Balance at the end of the period | -5,967 | -14,941 | -5,967 | -14,941 |
Gains and losses on cash flow hedges | ' | ' | ' | ' |
Other comprehensive income reclassification adjustments | ' | ' | ' | ' |
Balance at the beginning of the period | -8,415 | -17,071 | -12,931 | -19,764 |
Other comprehensive income before reclassifications | 2,560 | 2,256 | 8,945 | 5,651 |
Amounts reclassified from AOCI | 294 | 301 | 889 | 911 |
Income tax effect | -1,007 | -904 | -3,471 | -2,216 |
Total other comprehensive income (Loss) | 1,847 | 1,653 | 6,363 | 4,346 |
Balance at the end of the period | -6,568 | -15,418 | -6,568 | -15,418 |
Unrealized gains and losses on available-for-sale securities | ' | ' | ' | ' |
Other comprehensive income reclassification adjustments | ' | ' | ' | ' |
Balance at the beginning of the period | 516 | 115 | 440 | 127 |
Other comprehensive income before reclassifications | 132 | 362 | 249 | 345 |
Income tax effect | -47 | ' | -88 | 5 |
Total other comprehensive income (Loss) | 85 | 362 | 161 | 350 |
Balance at the end of the period | $601 | $477 | $601 | $477 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive (Loss) Income (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Accumulated other comprehensive (loss) income | ' | ' | ' | ' |
Other expenses | ($100,637) | ($32,960) | ($106,945) | ($46,383) |
Total reclassifications | -2,158,116 | -1,114,316 | -4,211,313 | -3,154,059 |
Amount reclassified from other comprehensive income | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income | ' | ' | ' | ' |
Total reclassifications | -294 | -301 | -889 | -911 |
Cash flow hedges | Amount reclassified from other comprehensive income | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income | ' | ' | ' | ' |
Other expenses | -294 | -301 | -889 | -911 |
Cash flow hedges | Reclassification of amounts de-designated as hedges recorded in AOCI | Amount reclassified from other comprehensive income | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income | ' | ' | ' | ' |
Other expenses | -282 | -282 | -847 | -847 |
Cash flow hedges | Interest rate swap agreements | Amount reclassified from other comprehensive income | ' | ' | ' | ' |
Accumulated other comprehensive (loss) income | ' | ' | ' | ' |
Other expenses | ($12) | ($19) | ($42) | ($64) |
Other_Expenses_Details
Other Expenses (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Other Expenses | ' | ' | ' | ' |
Other expenses | $100,637,000 | $32,960,000 | $106,945,000 | $46,383,000 |
Provision for loss on asset value guarantees | $93,900,000 | $31,300,000 | $100,500,000 | $31,300,000 |