Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2015 | Nov. 06, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Air Transport Services Group, Inc. | ||
Entity Central Index Key | 894,081 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Sep. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 64,359,057 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 438,608,807 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 14,861 | $ 30,560 |
Accounts receivable, net of allowance of $360 in 2015 and $812 in 2014 | 39,160 | 43,513 |
Inventory | 11,901 | 10,665 |
Prepaid supplies and other | 13,552 | 12,613 |
Deferred income taxes | 19,770 | 19,770 |
TOTAL CURRENT ASSETS | 99,244 | 117,121 |
Property and equipment, net | 868,897 | 847,268 |
Other assets | 26,810 | 28,230 |
Goodwill and acquired intangibles | 38,799 | 39,010 |
Goodwill | 34,395 | 34,395 |
TOTAL ASSETS | 1,033,750 | 1,031,629 |
CURRENT LIABILITIES: | ||
Accounts payable | 50,018 | 40,608 |
Accrued salaries, wages and benefits | 25,229 | 25,633 |
Accrued expenses | 7,872 | 8,201 |
Current portion of debt obligations | 29,565 | 24,344 |
Unearned revenue | 14,051 | 12,914 |
TOTAL CURRENT LIABILITIES | 126,735 | 111,700 |
Long term debt | 279,782 | 319,750 |
Post-retirement obligations | 78,323 | 92,050 |
Other liabilities | 56,950 | 57,647 |
Deferred income taxes | 120,632 | 102,993 |
TOTAL LIABILITIES | $ 662,422 | $ 684,140 |
Commitments and contingencies (Note G) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, 20,000,000 shares authorized, including 75,000 Series A Junior Participating Preferred Stock | $ 0 | $ 0 |
Common stock, par value $0.01 per share; 75,000,000 shares authorized; 64,519,363 and 64,854,950 shares issued and outstanding in 2015 and 2014, respectively | 645 | 649 |
Additional paid-in capital | 521,107 | 526,669 |
Accumulated deficit | (70,499) | (96,953) |
Accumulated other comprehensive loss | (79,925) | (82,876) |
TOTAL STOCKHOLDERS’ EQUITY | 371,328 | 347,489 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,033,750 | $ 1,031,629 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets, Current [Abstract] | ||
Allowance for doubtful accounts | $ 360 | $ 812 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 75,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 64,519,363 | 64,854,950 |
Common stock, shares outstanding (in shares) | 64,519,363 | 64,854,950 |
Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Series A Junior Participating Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 75,000 | 75,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
REVENUES | $ 142,305 | $ 138,443 | $ 437,683 | $ 431,654 |
OPERATING EXPENSES | ||||
Salaries, wages and benefits | 41,624 | 39,096 | 127,339 | 123,056 |
Fuel | 12,029 | 14,059 | 35,082 | 40,333 |
Maintenance, materials and repairs | 24,655 | 17,082 | 71,341 | 65,129 |
Depreciation and amortization | 30,754 | 26,307 | 91,147 | 78,428 |
Travel | 3,989 | 4,189 | 12,754 | 13,181 |
Rent | 2,246 | 6,689 | 8,900 | 20,923 |
Landing and ramp | 2,108 | 2,450 | 6,982 | 7,764 |
Insurance | 832 | 1,109 | 2,636 | 3,887 |
Other operating expenses | 11,151 | 9,175 | 31,262 | 28,713 |
Operating Expenses | 129,388 | 120,156 | 387,443 | 381,414 |
OPERATING INCOME | 12,917 | 18,287 | 50,240 | 50,240 |
OTHER INCOME (EXPENSE) | ||||
Interest income | 18 | 23 | 64 | 66 |
Interest expense | (2,684) | (3,309) | (8,588) | (10,613) |
Unrealized Gain (Loss) on Derivatives | 96 | 639 | 347 | 969 |
Other Nonoperating Income (Expense) | (2,570) | (2,647) | (8,177) | (9,578) |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 10,347 | 15,640 | 42,063 | 40,662 |
INCOME TAX EXPENSE | (4,000) | (6,045) | (16,251) | (15,247) |
EARNINGS FROM CONTINUING OPERATIONS | 6,347 | 9,595 | 25,812 | 25,415 |
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAXES | 214 | 312 | 642 | 734 |
NET EARNINGS | $ 6,561 | $ 9,907 | $ 26,454 | $ 26,149 |
BASIC EARNINGS PER SHARE | ||||
Continuing operations (in dollars per share) | $ 0.10 | $ 0.15 | $ 0.40 | $ 0.40 |
Discontinued operations (in dollars per share) | 0 | 0 | 0.01 | 0.01 |
TOTAL BASIC EARNINGS PER SHARE (in dollars per share) | 0.10 | 0.15 | 0.41 | 0.41 |
DILUTED EARNINGS PER SHARE | ||||
Continuing operations (in dollars per share) | 0.10 | 0.15 | 0.40 | 0.39 |
Discontinued operations (in dollars per share) | 0 | 0 | 0 | 0.01 |
TOTAL DILUTED NET EARNINGS PER SHARE (in dollars per share) | $ 0.10 | $ 0.15 | $ 0.40 | $ 0.40 |
WEIGHTED AVERAGE SHARES | ||||
Basic (in shares) | 64,239 | 64,286 | 64,411 | 64,240 |
Diluted (in shares) | 65,171 | 65,271 | 65,341 | 65,207 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
NET EARNINGS | $ 6,561 | $ 9,907 | $ 26,454 | $ 26,149 |
Other comprehensive income (loss), net of tax | 0 | (6) | (4) | (20) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (55) | (938) | (351) | (938) |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Income tax (expense) or benefit | 0 | 4 | 46 | 12 |
TOTAL COMPREHENSIVE INCOME, net of tax | 7,608 | 8,458 | 29,405 | 23,677 |
Pension Plans [Member] | ||||
Other comprehensive income (loss), net of tax | 1,142 | (1) | 3,426 | (2) |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Income tax (expense) or benefit | (651) | 0 | (1,953) | 0 |
Post-Retirement Plans [Member] | ||||
Other comprehensive income (loss), net of tax | (40) | (504) | (120) | (1,512) |
OTHER COMPREHENSIVE INCOME (LOSS): | ||||
Income tax (expense) or benefit | $ 23 | $ 288 | $ 69 | $ 864 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Common stock repurchase | $ (6,919) | $ 0 |
OPERATING ACTIVITIES: | ||
Net earnings from continuing operations | 25,812 | 25,415 |
Net earnings from discontinued operations | 642 | 734 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 91,147 | 78,428 |
Reclassification of pension and post-retirement balance | 5,190 | (2,376) |
Deferred income taxes | 15,988 | 14,998 |
Amortization of stock-based compensation | 1,968 | 2,108 |
Amortization of DHL promissory note | (1,550) | (4,650) |
Net gain on derivative instruments | (347) | (969) |
Changes in assets and liabilities: | ||
Accounts receivable | 4,200 | 15,951 |
Inventory and prepaid supplies | 1,089 | (5,150) |
Accounts payable | 3,817 | (5,144) |
Unearned revenue | 1,531 | (1,683) |
Accrued expenses, salaries, wages, benefits and other liabilities | (1,527) | 3,294 |
Pension and post-retirement | (13,727) | (11,845) |
Other | (213) | (1,630) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 134,020 | 107,481 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (110,973) | (90,866) |
Proceeds from property and equipment | 1,370 | 1,910 |
Investment in nonconsolidated affiliate | 0 | (15,000) |
NET CASH (USED IN) INVESTING ACTIVITIES | (109,603) | (103,956) |
FINANCING ACTIVITIES: | ||
Principal payments on long term obligations | (53,197) | (53,234) |
Proceeds from borrowings | 20,000 | 45,000 |
Funding for hangar construction | 0 | 6,452 |
NET CASH (USED IN) FINANCING ACTIVITIES | (40,116) | (1,782) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (15,699) | 1,743 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 30,560 | 31,699 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 14,861 | 33,442 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid, net of amount capitalized | 8,219 | 10,266 |
Federal alternative minimum and state income taxes paid | 871 | 565 |
SUPPLEMENTAL NON-CASH INFORMATION: | ||
Debt extinguished | 1,550 | 4,650 |
Accrued capital expenditures | $ 13,241 | $ 461 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 9 months ended Sep. 30, 2015 $ in Thousands | USD ($)shares |
Balance at at Dec. 31, 2014 | $ 347,489 |
Balance at (in shares) at Dec. 31, 2014 | shares | 64,854,950 |
Stock-based compensation plans | |
Total comprehensive income (loss) | $ 29,405 |
Balance at at Sep. 30, 2015 | $ 371,328 |
Balance at (in shares) at Sep. 30, 2015 | shares | 64,519,363 |
Summary of Financial Statement
Summary of Financial Statement Preparation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Financial Statement Preparation and Significant Accounting Policies | SUMMARY OF FINANCIAL STATEMENT PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Air Transport Services Group, Inc. is a holding company whose principal subsidiaries include an aircraft leasing company and two independently certificated airlines. The Company provides airline operations, aircraft leases, aircraft maintenance and other support services primarily to the cargo transportation and package delivery industries. Through the Company's subsidiaries, it offers a range of complementary services to delivery companies, e-commerce operators, freight forwarders, airlines and government customers. The airlines, ABX Air, Inc. (“ABX”) and Air Transport International, Inc. (“ATI”), each have the authority, through their separate U.S. Department of Transportation ("DOT") and Federal Aviation Administration ("FAA") certificates, to transport cargo worldwide. The Company's leasing subsidiary, Cargo Aircraft Management, Inc. (“CAM”), leases aircraft to each of the Company's airlines as well as to non-affiliated airlines and other lessees. The Company provides aircraft and airline operations to its customers, typically under contracts providing for a combination of aircraft, crews, maintenance and insurance ("ACMI") services. The Company serves a base of concentrated customers who have a diverse line of international cargo traffic. DHL Network Operations (USA), Inc. and its affiliates, “DHL,” is the Company's largest customer. ATI provides passenger transportation, primarily to the U.S. Military, using "combi" aircraft, which are certified to carry passengers as well as cargo on the main deck. In addition to its airline operations and aircraft leasing services, the Company sells aircraft parts, provides aircraft and equipment maintenance services, and operates mail sorting facilities for the U.S. Postal Service (“USPS”). Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and such principles are applied on a basis consistent with information reflected in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the accompanying financial statements contain all adjustments, including normal recurring adjustments, necessary for the fair presentation of the Company’s results of operations and financial position for the periods presented. Due to seasonal fluctuations, among other factors common to the airline industry, the results of operations for the periods presented are not necessarily indicative of the results of operations to be expected for the entire year or any interim period. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. The accounting estimates reflect the best judgment of management, but actual results could differ materially. The accompanying condensed consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Investments in an affiliate in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Using the equity method, the Company’s share of the nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Inter-company balances and transactions are eliminated. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 with earlier adoption permitted for reporting periods beginning after December 15, 2016. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the standard is expected to have on the Company's consolidated financial position, results of operations or cash flows and related disclosures. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the impact of adopting ASU 2015-03 to be material to the Company’s financial statements and related disclosures. |
Significant Customers
Significant Customers | 9 Months Ended |
Sep. 30, 2015 | |
Significant Customers [Abstract] | |
Significant Customers | SIGNIFICANT CUSTOMERS DHL The Company's largest customer is DHL. The Company has had long-term contracts with DHL since August 2003. Commencing March 31, 2010, the Company and DHL executed commercial agreements under which DHL leases Boeing 767 freighter aircraft from CAM and ABX operates those aircraft under a separate crew, maintenance and insurance (“CMI”) agreement. The initial term of the CMI agreement was five years, ending March 31, 2015 while the terms of the aircraft leases were seven years. Effective April 1, 2015, the Company and DHL amended and restated the CMI agreement ("restated CMI agreement") under which ABX continues to operate Boeing 767 aircraft for DHL through March of 2019 and the Boeing 767 aircraft lease terms were extended through March of 2019. Pricing for services provided through the restated CMI agreement is based on pre-defined fees scaled for the number of aircraft hours flown, aircraft scheduled and flight crews provided to DHL for its U.S. network. During the third quarter of 2015, CAM leased 16 Boeing 767 aircraft to DHL and ABX operated them under the restated CMI agreement for DHL's network. The Company has other agreements to provide additional air cargo transportation services to DHL. During the third quarter of 2015, ATI operated four CAM-owned Boeing 757 aircraft for DHL's network through ACMI agreements in which the Company provides the aircraft, crews, maintenance and insurance under a single contract. Additionally, ATI operated a Boeing 757 aircraft, supplied by DHL, for DHL's network. Revenues generated from the ACMI agreements are typically based on hours flown during the period. The Company also provides maintenance services to DHL for ground equipment, such as power units and air starts under separate agreements. Revenues from continuing operations performed for DHL were approximately 47% and 49% of the Company's consolidated revenues from continuing operations for the three and nine month periods ended September 30, 2015, respectively, compared to 54% and 56% for the corresponding periods of 2014. The Company’s balance sheets include accounts receivable with DHL of $5.6 million and $12.2 million as of September 30, 2015 and December 31, 2014, respectively. U.S. Military A substantial portion of the Company's revenues are also derived from the U.S. Military. The U.S. Military awards flights to U.S. certificated airlines through annual contracts and through temporary "expansion" routes. Revenues from services performed for the U.S. Military were approximately 17% and 17% of the Company's total revenues from continuing operations for the three and nine month periods ended September 30, 2015, respectively, compared to 17% and 17% for the corresponding periods of 2014. The Company's balance sheets included accounts receivable with the U.S. Military of $7.4 million and $6.0 million as of September 30, 2015 and December 31, 2014, respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL, ACQUIRED INTANGIBLES AND EQUITY INVESTMENTS The Company has one reporting unit that has goodwill, CAM. The carrying amounts of goodwill are as follows (in thousands): CAM Total Carrying value as of December 31, 2014 $ 34,395 $ 34,395 Carrying value as of September 30, 2015 $ 34,395 $ 34,395 The Company's intangible assets relate to the ACMI Services segment and are as follows (in thousands): Customer Airline Relationships Certificates Total Carrying value as of December 31, 2014 $ 1,615 $ 3,000 $ 4,615 Amortization (211 ) — (211 ) Carrying value as of September 30, 2015 $ 1,404 $ 3,000 $ 4,404 The customer relationship intangible amortizes through 2020. The airline certificates have an indefinite life and therefore are not amortized. In January 2014, the Company acquired a 25 percent equity interest in West Atlantic AB of Gothenburg, Sweden ("West"). West, through its two airlines, Atlantic Airlines Ltd. and West Air Sweden AB, operates a fleet of approximately 45 aircraft primarily in Europe. West operates its aircraft on behalf of European regional mail carriers and express logistics providers. The airlines operate a combined fleet of British Aerospace ATPs, Bombardier CRJ-200-PFs, Boeing 737 and Boeing 767 aircraft. The Company has significant influence, but does not exercise control, over West. Accordingly, the investment in West is accounted for using the equity method of accounting and was initially recognized at cost. The Company’s carrying value of West was $12.9 million and $13.8 million at September 30, 2015 and December 31, 2014, respectively, including $5.5 million of excess purchase price over the Company's proportional fair value of West's net assets in January of 2014. The carrying value is reflected in “Other Assets” in the Company’s consolidated balance sheets. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s money market funds and interest rate swaps are reported on the Company’s consolidated balance sheets at fair values based on market values from identical or comparable transactions. The fair value of the Company’s money market funds and interest rate swaps are based on observable inputs (Level 2) from comparable market transactions. The use of significant unobservable inputs (Level 3) was not necessary in determining the fair value of the Company’s financial assets and liabilities. The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of September 30, 2015 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ 20 $ 3,079 $ — $ 3,099 Total Assets $ 20 $ 3,079 $ — $ 3,099 Liabilities Interest rate swaps $ — $ (1,072 ) $ — $ (1,072 ) Total Liabilities $ — $ (1,072 ) $ — $ (1,072 ) As of December 31, 2014 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ 20 $ 2,306 $ — $ 2,326 Total Assets $ 20 $ 2,306 $ — $ 2,326 Liabilities Interest rate swaps $ — $ (1,419 ) $ — $ (1,419 ) Total Liabilities $ — $ (1,419 ) $ — $ (1,419 ) As a result of lower market interest rates compared to the stated interest rates of the Company’s fixed and variable rate debt obligations, the fair value of the Company’s debt obligations, based on Level 2 observable inputs, was approximately $0.3 million less than the carrying value, which was $309.3 million at September 30, 2015 . As of December 31, 2014, the fair value of the Company’s debt obligations was approximately $2.5 million more than the carrying value, which was $344.1 million . The non-financial assets, including goodwill, intangible assets and property and equipment are measured at fair value on a non-recurring basis. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | PROPERTY AND EQUIPMENT The Company's property and equipment consists primarily of cargo aircraft, aircraft engines and flight equipment. Property and equipment, to be held and used, is summarized as follows (in thousands): September 30, December 31, Flight equipment $ 1,337,091 $ 1,285,966 Ground equipment 34,675 33,677 Leasehold improvements, facilities and office equipment 25,171 25,180 Aircraft modifications and projects in progress 53,112 18,612 1,450,049 1,363,435 Accumulated depreciation (581,152 ) (516,167 ) Property and equipment, net $ 868,897 $ 847,268 CAM owned aircraft with a carrying value of $338.0 million and $289.5 million that were under leases to external customers as of September 30, 2015 and December 31, 2014, respectively. The carrying value of Boeing 727 and DC-8 freighter aircraft and engines available for sale totaled $0.4 million and $0.7 million as of September 30, 2015 and December 31, 2014, respectively. |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS Long term obligations consisted of the following (in thousands): September 30, December 31, 2015 2014 Unsubordinated term loan $ 105,000 $ 116,250 Revolving credit facility 165,000 180,000 Aircraft loans 39,347 46,294 Promissory note due to DHL, unsecured — 1,550 Total long term obligations 309,347 344,094 Less: current portion (29,565 ) (24,344 ) Total long term obligations, net $ 279,782 $ 319,750 The Company executed a syndicated credit agreement ("Senior Credit Agreement") in May 2011 which includes an unsubordinated term loan and a revolving credit facility. On May 8, 2015, the Company executed an amendment to the Senior Credit Agreement (the "Fifth Credit Amendment"). The Fifth Credit Amendment extended the maturity of the term loan and revolving credit facility to May 5, 2020, increased the capacity of the Revolving credit facility by $50.0 million to $325.0 million , increased the permitted additional indebtedness by $50.0 million to $150.0 million , and retained the accordion feature whereby the Company can draw up to an additional $50.0 million subject to the lenders' consent. Under the amended terms of the Senior Credit Agreement, the Company is required to maintain collateral coverage equal to 150% of the outstanding balances of the term loan and the maximum capacity of the revolving credit facility or 175% of the outstanding balance of the term loan and the total funded revolving credit facility, whichever is less. The minimum collateral coverage which must be maintained is 50% of the outstanding balance of the term loan plus the revolving credit facility commitment which was $325.0 million as of May 8, 2015. Each year, through May 6, 2019, the Company may request a one year extension of the final maturity date, subject to the lenders' consent. Under the terms of the Senior Credit Agreement, interest rates are adjusted quarterly based on the Company's earnings before interest, taxes, depreciation and amortization expenses ("EBITDA"), its outstanding debt level and prevailing LIBOR or prime rates. At the Company's current debt-to-EBITDA ratio, the LIBOR based financing for the unsubordinated term loan and revolving credit facility bear a variable interest rate of 1.95% and 1.95% , respectively. The Credit Amendment did not affect the EBITDA based pricing or covenants of the Senior Credit Agreement. The Senior Credit Agreement provides for the issuance of letters of credit on the Company's behalf. As of September 30, 2015, the unused revolving credit facility totaled $151.7 million , net of draws of $165.0 million and outstanding letters of credit of $8.3 million . The aircraft loans are collateralized by six aircraft, and amortize monthly with a balloon payment of approximately 20% with maturities between 2016 and early 2018. Interest rates range from 6.74% to 7.36% per annum payable monthly. The Senior Credit Agreement is collateralized by certain of the Company's Boeing 767 and 757 aircraft that are not collateralized under aircraft loans. The Senior Credit Agreement contains covenants including, among other things, limitations on certain additional indebtedness, guarantees of indebtedness, as well as a total debt to EBITDA ratio and a fixed charge coverage ratio. The Senior Credit Agreement stipulates events of default, including unspecified events that may have material adverse effects on the Company. If an event of default occurs, the Company may be forced to repay, renegotiate or replace the Senior Credit Agreement. The Senior Credit Agreement limits the amount of dividends the Company can pay and the amount of common stock it can repurchase to $50.0 million during any calendar year, provided the Company's total debt to EBITDA ratio is under 2.5 times, after giving effect to the dividend or repurchase. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases portions of the air park in Wilmington, Ohio, under long-term lease agreements with a regional port authority. The leased facilities include corporate offices, 310,000 square feet of maintenance hangars and a 100,000 square foot component repair shop at the air park. ABX also has the non-exclusive right to use the airport, which includes one active runway, taxi ways and ramp space. Additionally, the Company leases certain equipment and airport facilities, office space and maintenance facilities at locations outside of the airpark in Wilmington. Guarantees and Indemnifications Certain leases and agreements of the Company contain guarantees and indemnification obligations to the lessor, or one or more other parties that are considered reasonable and customary (e.g. use, tax and environmental indemnifications), the terms of which range in duration and are often limited. Such indemnification obligations may continue after expiration of the respective lease or agreement. Brussels Noise Ordinance The Brussels Instituut voor Milieubeheer ("BIM"), a governmental authority in the Brussels-Capital Region of Belgium that oversees the enforcement of environmental matters, imposed four separate administrative penalties on ABX in the approximate aggregate amount of €0.4 million ( $0.4 million ) for numerous alleged violations of an ordinance limiting the noise caused by aircraft overflying the Brussels-Capital Region (which is located near the Brussels Airport) during the period from May 2009 through December 2010. ABX has exhausted its appeals with respect to all four of the administrative penalties. The ordinance in question is controversial for the reason that it was adopted by the Brussels-Capital Region and is more restrictive than the noise limitations in effect in the Flemish Region, which is where the Brussels Airport is located. Numerous airlines have been levied fines under the ordinance, which has been the subject of several court cases in the Belgian courts, including with respect to demands for payment. In October 2015, ABX paid approximately $0.4 million in satisfaction of the fines. Other In September 2015, we entered into a joint venture agreement to establish an express cargo airline serving multiple destinations within the Peoples Republic of China (including Hong Kong, Macau and Taiwan) and surrounding countries. The airline will be named United Star Express Airlines Co. Ltd., and will be based in in Tianjin, China with registered capital of 400 million RMB (US$63 million). It will be established pending the receipt of required governmental approvals and plans to commence flight operations in mid-2016. We expect to contribute $16 million to the joint venture over the next nine months. In addition to the foregoing matters, we are also currently a party to legal proceedings, including FAA enforcement actions, in various federal and state jurisdictions arising out of the operation of the Company's business. The amount of alleged liability, if any, from these proceedings cannot be determined with certainty; however, we believe that the Company's ultimate liability, if any, arising from the pending legal proceedings, as well as from asserted legal claims and known potential legal claims which are probable of assertion, taking into account established accruals for estimated liabilities, should not be material to our financial condition or results of operations. Employees Under Collective Bargaining Agreements As of September 30, 2015 , the flight crewmember employees of ABX and ATI were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of the Company’s Employees ABX International Brotherhood of Teamsters 10.2% ATI Air Line Pilots Association 6.0% |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Post-Retirement Benefit Plans | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS Defined Benefit and Post-retirement Healthcare Plans ABX sponsors a qualified defined benefit pension plan for ABX crewmembers and a qualified defined benefit pension plan for a major portion of its other ABX employees that meet minimum eligibility requirements. ABX also sponsors non-qualified defined benefit pension plans for certain employees. These non-qualified plans are unfunded. Employees are no longer accruing benefits under any of the defined benefit pension plans. ABX also sponsors a post-retirement healthcare plan for its ABX employees, which is unfunded. Benefits for covered individuals terminate upon reaching age 65 under the post-retirement healthcare plans. The accounting and valuation for these post-retirement obligations are determined by prescribed accounting and actuarial methods that consider a number of assumptions and estimates. The selection of appropriate assumptions and estimates is significant due to the long time period over which benefits will be accrued and paid. The long-term nature of these benefit payouts increases the sensitivity of certain estimates of our post-retirement costs. The assumptions considered most sensitive in actuarially valuing ABX’s pension obligations and determining related expense amounts are discount rates and expected long-term investment returns on plan assets. Additionally, other assumptions concerning retirement ages, mortality and employee turnover also affect the valuations. Actual results and future changes in these assumptions could result in future costs significantly higher than those recorded in our results of operations. The Company's net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for both continuing and discontinued operations are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Pension Plans Post-Retirement Healthcare Plan Pension Plans Post-Retirement Healthcare Plan 2015 2014 2015 2014 2015 2014 2015 2014 Service cost $ — $ — $ 44 $ 60 $ — $ — $ 132 $ 180 Interest cost 8,646 9,879 48 71 25,938 29,637 144 213 Expected return on plan assets (11,020 ) (11,528 ) — — (33,060 ) (34,584 ) — — Amortization of prior service cost — — (136 ) (872 ) — — (408 ) (2,616 ) Amortization of net (gain) loss 1,793 (1 ) 73 80 5,379 (2 ) 219 240 Net periodic benefit cost (gain) $ (581 ) $ (1,650 ) $ 29 $ (661 ) $ (1,743 ) $ (4,949 ) $ 87 $ (1,983 ) During the three and nine month periods ended September 30, 2015, the Company contributed $5.3 million and $6.2 million to the pension plans. The Company expects to contribute an additional $0.3 million during the remainder of 2015. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes for interim periods is based on management's best estimate of the effective income tax rate expected to be applicable for the current year, plus any adjustments arising from changes in the estimated amount of taxable income related to prior periods. Income taxes recorded through September 30, 2015 have been estimated utilizing a 38.6% rate based upon year-to-date income and projected results for the full year. The final effective tax rate applied to 2015 will depend on the actual amount of pre-tax book income generated by the Company for the full year. The Company has operating loss carryforwards for U.S. federal income tax purposes. Management expects to utilize the loss carryforwards to offset federal income tax liabilities in the future. Due to the Company's deferred tax assets, including its loss carryforwards, management does not expect to pay federal income taxes until 2017 or later. The Company may, however, be required to pay alternative minimum taxes and certain state and local income taxes before then. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company's Senior Credit Agreement requires the Company to maintain derivative instruments for protection from fluctuating interest rates, for at least fifty percent of the outstanding balance of term loan. Accordingly, the Company entered into interest rate swaps, which are described in the table below (in thousands): September 30, 2015 December 31, 2014 Expiration Date Stated Interest Rate Notional Amount Market Value (Liability) Notional Amount Market Value (Liability) May 9, 2016 2.020 % 52,500 (507 ) 58,125 (1,071 ) June 30, 2017 1.183 % 52,500 (565 ) 58,125 (348 ) The outstanding interest rate swaps are not designated as hedges for accounting purposes. The effects of future fluctuations in LIBOR interest rates on derivatives held by the Company will result in the recording of unrealized gains and losses into the statement of operations. The Company recorded unrealized gain on derivatives of $0.3 million and $1.0 million for the nine month periods ending September 30, 2015 and 2014, respectively. The liability for outstanding derivatives is recorded in other liabilities and in accrued expenses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) includes the following items by components for the three and nine month periods ending September 30, 2015 and 2014 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of June 30, 2014 (31,073 ) 237 (5 ) — (30,841 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (1,042 ) (1,042 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) (1 ) 80 — — 79 Negative prior service cost (reclassified to salaries, wages and benefits) — (872 ) — — (872 ) Hedging gain (reclassified to interest expense) — — (10 ) — (10 ) Income Tax (Expense) or Benefit — 288 4 104 396 Other comprehensive income (loss), net of tax (1 ) (504 ) (6 ) (938 ) (1,449 ) Balance as of September 30, 2014 (31,074 ) (267 ) (11 ) (938 ) (32,290 ) Balance as of December 31, 2013 (31,072 ) 1,245 9 — (29,818 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (1,042 ) (1,042 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) (2 ) 240 — — 238 Negative prior service cost (reclassified to salaries, wages and benefits) — (2,616 ) — — (2,616 ) Hedging gain (reclassified to interest expense) — — (32 ) — (32 ) Income Tax (Expense) or Benefit — 864 12 104 980 Other comprehensive income (loss), net of tax (2 ) (1,512 ) (20 ) (938 ) (2,472 ) Balance as of September 30, 2014 (31,074 ) (267 ) (11 ) (938 ) (32,290 ) Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of June 30, 2015 (78,907 ) (710 ) — (1,355 ) (80,972 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (84 ) (84 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 1,793 73 — — 1,866 Negative prior service cost (reclassified to salaries, wages and benefits) — (136 ) — — (136 ) Hedging gain (reclassified to interest expense) — — — — — Income Tax (Expense) or Benefit (651 ) 23 — 29 (599 ) Other comprehensive income (loss), net of tax 1,142 (40 ) — (55 ) 1,047 Balance as of September 30, 2015 (77,765 ) (750 ) — (1,410 ) (79,925 ) Balance as of December 31, 2014 (81,191 ) (630 ) 4 (1,059 ) (82,876 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (537 ) (537 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 5,379 219 — — 5,598 Negative prior service cost (reclassified to salaries, wages and benefits) — (408 ) — — (408 ) Hedging gain (reclassified to interest expense) — — (50 ) — (50 ) Income Tax (Expense) or Benefit (1,953 ) 69 46 186 (1,652 ) Other comprehensive income (loss), net of tax 3,426 (120 ) (4 ) (351 ) 2,951 Balance as of September 30, 2015 (77,765 ) (750 ) — (1,410 ) (79,925 ) |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's Board of Directors has granted stock incentive awards to certain employees and board members pursuant to a long term incentive plan which was approved by the Company's stockholders. Employees have been awarded non-vested stock units with performance conditions, non-vested stock units with market conditions and non-vested restricted stock. The restrictions on the non-vested restricted stock awards lapse at the end of a specified service period, which is typically approximately three years from the date of grant. Restrictions could lapse sooner upon a business combination, death, disability or after an employee qualifies for retirement. The non-vested stock units will be converted into a number of shares of Company stock depending on performance and market conditions at the end of a specified service period, lasting approximately three years. The performance condition awards will be converted into a number of shares of Company stock based on the Company's average return on invested capital during the service period. Similarly, the market condition awards will be converted into a number of shares depending on the appreciation of the Company's stock compared to the NASDAQ Transportation Index. Board members were granted time-based awards with vesting periods of approximately six or twelve months. The Company expects to settle all of the stock unit awards by issuing new shares of stock. The table below summarizes award activity. Nine Months Ended September 30, 2015 September 30, 2014 Number of Awards Weighted average grant-date fair value Number of Awards Weighted average grant-date fair value Outstanding at beginning of period 1,406,550 $ 6.21 1,477,762 $ 5.83 Granted 390,200 9.61 467,567 7.52 Converted (263,791 ) 6.42 (186,179 ) 7.50 Expired (1,600 ) 10.11 (4,300 ) 7.64 Forfeited (13,800 ) 7.36 (17,800 ) 6.26 Outstanding at end of period 1,517,559 $ 7.03 1,737,050 $ 6.10 Vested 329,059 $ 5.61 415,550 $ 5.28 The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company in 2015 was $9.22 , the fair value of the Company’s stock on the date of grant. The average grant-date fair value of each market condition award granted in 2015 was $10.99 . The market condition awards were valued using a Monte Carlo simulation technique, a risk-free interest rate of 0.9% and a volatility of 41.5% based on volatility over three years using daily stock prices. For the nine month periods ended September 30, 2015 and 2014, the Company recorded expense of $2.0 million and $2.1 million , respectively, for stock incentive awards. At September 30, 2015, there was $3.5 million of unrecognized expense related to the stock incentive awards that is expected to be recognized over a weighted-average period of 1.3 years. As of September 30, 2015, none of the awards were convertible, 329,059 units of the Board members time-based awards had vested and none of the outstanding shares of the restricted stock had vested. These awards could result in a maximum number of 1,820,159 additional outstanding shares of the Company’s common stock depending on service, performance and market results through December 31, 2017. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The calculation of basic and diluted earnings per common share follows (in thousands, except per share amounts): Three Months Ending Nine Months Ending September 30, September 30, 2015 2014 2015 2014 Earnings from continuing operations $ 6,347 $ 9,595 $ 25,812 $ 25,415 Weighted-average shares outstanding for basic earnings per share 64,239 64,286 64,411 64,240 Common equivalent shares: Effect of stock-based compensation awards 932 985 930 967 Weighted-average shares outstanding assuming dilution 65,171 65,271 65,341 65,207 Basic earnings per share from continuing operations $ 0.10 $ 0.15 $ 0.40 $ 0.40 Diluted earnings per share from continuing operations $ 0.10 $ 0.15 $ 0.40 $ 0.39 The number of equivalent shares that were not included in weighted average shares outstanding assuming dilution, because their effect would have been anti-dilutive, was none and none at September 30, 2015 and 2014, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The Company operates in two reportable segments. The CAM segment consists of the Company's aircraft leasing operations and its segment earnings includes an allocation of interest expense. The ACMI Services segment consists of the Company's airline operations, including the CMI agreement with DHL as well as ACMI and charter service agreements that the Company has with other customers. Due to the similarities among the Company's airline operations, the airline operations are aggregated into a single reportable segment, ACMI Services. The Company's other activities, which include contracts with the USPS, the sale of aircraft parts and maintenance services, facility and ground equipment maintenance services and management services for workers' compensation do not constitute reportable segments and are combined in “All other” with inter-segment profit eliminations. Inter-segment revenues are valued at arms-length, market rates. Cash, cash equivalents and deferred tax assets are reflected in Assets - All other below. The Company's segment information from continuing operations is presented below (in thousands): Three Months Ending Nine Months Ending September 30, September 30, 2015 2014 2015 2014 Total revenues: CAM $ 42,574 $ 40,226 $ 131,060 $ 121,451 ACMI Services 99,918 102,853 309,278 322,753 All other 38,398 42,055 106,183 105,356 Eliminate inter-segment revenues (38,585 ) (46,691 ) (108,838 ) (117,906 ) Total $ 142,305 $ 138,443 $ 437,683 $ 431,654 Customer revenues: CAM $ 23,671 $ 20,227 $ 68,212 $ 56,480 ACMI Services 98,820 102,853 308,180 322,753 All other 19,814 15,363 61,291 52,421 Total $ 142,305 $ 138,443 $ 437,683 $ 431,654 Depreciation and amortization expense: CAM $ 21,305 $ 19,740 $ 64,571 $ 58,413 ACMI Services 9,461 6,543 26,579 20,569 All other (12 ) 24 (3 ) (554 ) Total $ 30,754 $ 26,307 $ 91,147 $ 78,428 Segment earnings (loss): CAM $ 13,482 $ 13,574 $ 42,361 $ 38,681 ACMI Services (4,914 ) (126 ) (6,359 ) (6,863 ) All other 2,077 2,010 6,993 9,135 Net unallocated interest expense (394 ) (457 ) (1,279 ) (1,260 ) Net gain on derivative instruments 96 639 347 969 Pre-tax earnings from continuing operations $ 10,347 $ 15,640 $ 42,063 $ 40,662 The Company's assets are presented below by segment (in thousands): September 30, December 31, 2015 2014 Assets: CAM $ 796,333 $ 801,195 ACMI Services 139,940 135,109 All other $ 97,477 $ 95,325 Total $ 1,033,750 $ 1,031,629 Interest expense allocated to CAM was $2.3 million and $7.2 million for the three and nine month periods ending September 30, 2015, respectively, compared to $2.8 million and $9.1 million for the corresponding periods of 2014, respectively. |
Summary of Financial Statemen22
Summary of Financial Statement Preparation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America and such principles are applied on a basis consistent with information reflected in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the accompanying financial statements contain all adjustments, including normal recurring adjustments, necessary for the fair presentation of the Company’s results of operations and financial position for the periods presented. Due to seasonal fluctuations, among other factors common to the airline industry, the results of operations for the periods presented are not necessarily indicative of the results of operations to be expected for the entire year or any interim period. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. The accounting estimates reflect the best judgment of management, but actual results could differ materially. The accompanying condensed consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Investments in an affiliate in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Using the equity method, the Company’s share of the nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Inter-company balances and transactions are eliminated. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 with earlier adoption permitted for reporting periods beginning after December 15, 2016. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the standard is expected to have on the Company's consolidated financial position, results of operations or cash flows and related disclosures. In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect the impact of adopting ASU 2015-03 to be material to the Company’s financial statements and related disclosures. |
Summary of Financial Statemen23
Summary of Financial Statement Preparation and Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Property and equipment, to be held and used, is summarized as follows (in thousands): September 30, December 31, Flight equipment $ 1,337,091 $ 1,285,966 Ground equipment 34,675 33,677 Leasehold improvements, facilities and office equipment 25,171 25,180 Aircraft modifications and projects in progress 53,112 18,612 1,450,049 1,363,435 Accumulated depreciation (581,152 ) (516,167 ) Property and equipment, net $ 868,897 $ 847,268 |
Goodwill and Other Intangible24
Goodwill and Other Intangibles Goodwill and Other Intangibles (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The Company has one reporting unit that has goodwill, CAM. The carrying amounts of goodwill are as follows (in thousands): CAM Total Carrying value as of December 31, 2014 $ 34,395 $ 34,395 Carrying value as of September 30, 2015 $ 34,395 $ 34,395 |
Schedule of Finite and Indefinite-Lived Intangible Assets by Major Class [Table Text Block] | The Company's intangible assets relate to the ACMI Services segment and are as follows (in thousands): Customer Airline Relationships Certificates Total Carrying value as of December 31, 2014 $ 1,615 $ 3,000 $ 4,615 Amortization (211 ) — (211 ) Carrying value as of September 30, 2015 $ 1,404 $ 3,000 $ 4,404 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of September 30, 2015 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ 20 $ 3,079 $ — $ 3,099 Total Assets $ 20 $ 3,079 $ — $ 3,099 Liabilities Interest rate swaps $ — $ (1,072 ) $ — $ (1,072 ) Total Liabilities $ — $ (1,072 ) $ — $ (1,072 ) As of December 31, 2014 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ 20 $ 2,306 $ — $ 2,326 Total Assets $ 20 $ 2,306 $ — $ 2,326 Liabilities Interest rate swaps $ — $ (1,419 ) $ — $ (1,419 ) Total Liabilities $ — $ (1,419 ) $ — $ (1,419 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property and equipment, to be held and used, is summarized as follows (in thousands): September 30, December 31, Flight equipment $ 1,337,091 $ 1,285,966 Ground equipment 34,675 33,677 Leasehold improvements, facilities and office equipment 25,171 25,180 Aircraft modifications and projects in progress 53,112 18,612 1,450,049 1,363,435 Accumulated depreciation (581,152 ) (516,167 ) Property and equipment, net $ 868,897 $ 847,268 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long term obligations consisted of the following (in thousands): September 30, December 31, 2015 2014 Unsubordinated term loan $ 105,000 $ 116,250 Revolving credit facility 165,000 180,000 Aircraft loans 39,347 46,294 Promissory note due to DHL, unsecured — 1,550 Total long term obligations 309,347 344,094 Less: current portion (29,565 ) (24,344 ) Total long term obligations, net $ 279,782 $ 319,750 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | As of September 30, 2015 , the flight crewmember employees of ABX and ATI were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of the Company’s Employees ABX International Brotherhood of Teamsters 10.2% ATI Air Line Pilots Association 6.0% |
Pension and Other Post-Retire29
Pension and Other Post-Retirement Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The Company's net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for both continuing and discontinued operations are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, Pension Plans Post-Retirement Healthcare Plan Pension Plans Post-Retirement Healthcare Plan 2015 2014 2015 2014 2015 2014 2015 2014 Service cost $ — $ — $ 44 $ 60 $ — $ — $ 132 $ 180 Interest cost 8,646 9,879 48 71 25,938 29,637 144 213 Expected return on plan assets (11,020 ) (11,528 ) — — (33,060 ) (34,584 ) — — Amortization of prior service cost — — (136 ) (872 ) — — (408 ) (2,616 ) Amortization of net (gain) loss 1,793 (1 ) 73 80 5,379 (2 ) 219 240 Net periodic benefit cost (gain) $ (581 ) $ (1,650 ) $ 29 $ (661 ) $ (1,743 ) $ (4,949 ) $ 87 $ (1,983 ) |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | September 30, 2015 December 31, 2014 Expiration Date Stated Interest Rate Notional Amount Market Value (Liability) Notional Amount Market Value (Liability) May 9, 2016 2.020 % 52,500 (507 ) 58,125 (1,071 ) June 30, 2017 1.183 % 52,500 (565 ) 58,125 (348 ) |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) includes the following items by components for the three and nine month periods ending September 30, 2015 and 2014 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of June 30, 2014 (31,073 ) 237 (5 ) — (30,841 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (1,042 ) (1,042 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) (1 ) 80 — — 79 Negative prior service cost (reclassified to salaries, wages and benefits) — (872 ) — — (872 ) Hedging gain (reclassified to interest expense) — — (10 ) — (10 ) Income Tax (Expense) or Benefit — 288 4 104 396 Other comprehensive income (loss), net of tax (1 ) (504 ) (6 ) (938 ) (1,449 ) Balance as of September 30, 2014 (31,074 ) (267 ) (11 ) (938 ) (32,290 ) Balance as of December 31, 2013 (31,072 ) 1,245 9 — (29,818 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (1,042 ) (1,042 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) (2 ) 240 — — 238 Negative prior service cost (reclassified to salaries, wages and benefits) — (2,616 ) — — (2,616 ) Hedging gain (reclassified to interest expense) — — (32 ) — (32 ) Income Tax (Expense) or Benefit — 864 12 104 980 Other comprehensive income (loss), net of tax (2 ) (1,512 ) (20 ) (938 ) (2,472 ) Balance as of September 30, 2014 (31,074 ) (267 ) (11 ) (938 ) (32,290 ) Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of June 30, 2015 (78,907 ) (710 ) — (1,355 ) (80,972 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (84 ) (84 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 1,793 73 — — 1,866 Negative prior service cost (reclassified to salaries, wages and benefits) — (136 ) — — (136 ) Hedging gain (reclassified to interest expense) — — — — — Income Tax (Expense) or Benefit (651 ) 23 — 29 (599 ) Other comprehensive income (loss), net of tax 1,142 (40 ) — (55 ) 1,047 Balance as of September 30, 2015 (77,765 ) (750 ) — (1,410 ) (79,925 ) Balance as of December 31, 2014 (81,191 ) (630 ) 4 (1,059 ) (82,876 ) Other comprehensive income (loss) before reclassifications: Foreign currency translation adjustment — — — (537 ) (537 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 5,379 219 — — 5,598 Negative prior service cost (reclassified to salaries, wages and benefits) — (408 ) — — (408 ) Hedging gain (reclassified to interest expense) — — (50 ) — (50 ) Income Tax (Expense) or Benefit (1,953 ) 69 46 186 (1,652 ) Other comprehensive income (loss), net of tax 3,426 (120 ) (4 ) (351 ) 2,951 Balance as of September 30, 2015 (77,765 ) (750 ) — (1,410 ) (79,925 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Equity Instruments Other Than Options, Activity | The table below summarizes award activity. Nine Months Ended September 30, 2015 September 30, 2014 Number of Awards Weighted average grant-date fair value Number of Awards Weighted average grant-date fair value Outstanding at beginning of period 1,406,550 $ 6.21 1,477,762 $ 5.83 Granted 390,200 9.61 467,567 7.52 Converted (263,791 ) 6.42 (186,179 ) 7.50 Expired (1,600 ) 10.11 (4,300 ) 7.64 Forfeited (13,800 ) 7.36 (17,800 ) 6.26 Outstanding at end of period 1,517,559 $ 7.03 1,737,050 $ 6.10 Vested 329,059 $ 5.61 415,550 $ 5.28 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per common share follows (in thousands, except per share amounts): Three Months Ending Nine Months Ending September 30, September 30, 2015 2014 2015 2014 Earnings from continuing operations $ 6,347 $ 9,595 $ 25,812 $ 25,415 Weighted-average shares outstanding for basic earnings per share 64,239 64,286 64,411 64,240 Common equivalent shares: Effect of stock-based compensation awards 932 985 930 967 Weighted-average shares outstanding assuming dilution 65,171 65,271 65,341 65,207 Basic earnings per share from continuing operations $ 0.10 $ 0.15 $ 0.40 $ 0.40 Diluted earnings per share from continuing operations $ 0.10 $ 0.15 $ 0.40 $ 0.39 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Company's segment information from continuing operations is presented below (in thousands): Three Months Ending Nine Months Ending September 30, September 30, 2015 2014 2015 2014 Total revenues: CAM $ 42,574 $ 40,226 $ 131,060 $ 121,451 ACMI Services 99,918 102,853 309,278 322,753 All other 38,398 42,055 106,183 105,356 Eliminate inter-segment revenues (38,585 ) (46,691 ) (108,838 ) (117,906 ) Total $ 142,305 $ 138,443 $ 437,683 $ 431,654 Customer revenues: CAM $ 23,671 $ 20,227 $ 68,212 $ 56,480 ACMI Services 98,820 102,853 308,180 322,753 All other 19,814 15,363 61,291 52,421 Total $ 142,305 $ 138,443 $ 437,683 $ 431,654 Depreciation and amortization expense: CAM $ 21,305 $ 19,740 $ 64,571 $ 58,413 ACMI Services 9,461 6,543 26,579 20,569 All other (12 ) 24 (3 ) (554 ) Total $ 30,754 $ 26,307 $ 91,147 $ 78,428 Segment earnings (loss): CAM $ 13,482 $ 13,574 $ 42,361 $ 38,681 ACMI Services (4,914 ) (126 ) (6,359 ) (6,863 ) All other 2,077 2,010 6,993 9,135 Net unallocated interest expense (394 ) (457 ) (1,279 ) (1,260 ) Net gain on derivative instruments 96 639 347 969 Pre-tax earnings from continuing operations $ 10,347 $ 15,640 $ 42,063 $ 40,662 |
Reconciliation of Assets from Segment to Consolidated | The Company's assets are presented below by segment (in thousands): September 30, December 31, 2015 2014 Assets: CAM $ 796,333 $ 801,195 ACMI Services 139,940 135,109 All other $ 97,477 $ 95,325 Total $ 1,033,750 $ 1,031,629 |
Significant Customers (Details)
Significant Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 39,160 | $ 39,160 | $ 43,513 | ||
DHL [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of consolidated revenues | 47.00% | 54.00% | 49.00% | 56.00% | |
DHL [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 5,600 | $ 5,600 | 12,200 | ||
US Military [Member] | Revenues from Services Performed [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Percentage of consolidated revenues | 17.00% | 17.00% | 17.00% | 17.00% | |
US Military [Member] | Accounts Receivable [Member] | |||||
Concentration Risk [Line Items] | |||||
Accounts receivable | $ 7,400 | $ 7,400 | $ 6,000 |
Goodwill and Other Intangible36
Goodwill and Other Intangibles (Schedule of Goodwill) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Goodwill [Roll Forward] | |
Carrying value, beginning balance | $ 34,395 |
Carrying value, ending balance | 34,395 |
CAM [Member] | |
Goodwill [Roll Forward] | |
Carrying value, beginning balance | 34,395 |
Carrying value, ending balance | $ 34,395 |
Goodwill and Other Intangible37
Goodwill and Other Intangibles (Schedule Intangible Assets) (Details) - ACMI Services [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |
Carrying value at beginning of period | $ 4,615 |
Amortization expense | (211) |
Carrying value at end of period | 4,404 |
Customer Relationships [Member] | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |
Carrying value at beginning of period | 1,615 |
Amortization expense | (211) |
Carrying value at end of period | 1,404 |
Airline Certificates [Member] | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |
Carrying value at beginning of period | 3,000 |
Amortization expense | 0 |
Carrying value at end of period | $ 3,000 |
Goodwill and Other Intangible38
Goodwill and Other Intangibles Equity Investment (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 12,900 | $ 13,800 |
Goodwill | $ 34,395 | 34,395 |
Investment in West Atlantic [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Goodwill | $ 5,500 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | $ 20 | $ 20 |
Total Assets | 20 | 20 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | 0 | 0 |
Total Liabilities | 0 | 0 |
Level 2 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | 3,079 | 2,306 |
Total Assets | 3,079 | 2,306 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | (1,072) | (1,419) |
Total Liabilities | (1,072) | (1,419) |
Difference between fair value and carrying value, debt | (300) | 2,500 |
Level 3 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | 0 | 0 |
Total Liabilities | 0 | 0 |
Total [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | 3,099 | 2,326 |
Total Assets | 3,099 | 2,326 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | (1,072) | (1,419) |
Total Liabilities | (1,072) | (1,419) |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Carrying value, debt | $ 309,300 | $ 344,100 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 1,450,049 | $ 1,363,435 |
Accumulated depreciation | (581,152) | (516,167) |
Property and equipment, net | 868,897 | 847,268 |
Flight Equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 1,337,091 | 1,285,966 |
Ground equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 34,675 | 33,677 |
facilities, leasehold improvements and office equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 25,171 | 25,180 |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 53,112 | $ 18,612 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - Flight Equipment [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
CAM [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leased aircraft, carrying value | $ 338 | $ 289.5 |
Boeing 727 and DC-8 aircraft and flight equipment [Member] | ||
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | $ 0.4 | $ 0.7 |
Debt Obligations (Schedule of L
Debt Obligations (Schedule of Long Term Obligations) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | May. 05, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Total long term obligations | $ 309,347 | $ 344,094 | |
Less: current portion | (29,565) | (24,344) | |
Total long term obligations, net | $ 279,782 | 319,750 | |
Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Collateral, Coverage Percentage | 150.00% | ||
Unsubordinated term loan [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | $ 105,000 | 116,250 | |
Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Accordion Feature Amount | $ 50,000 | ||
Total long term obligations | 165,000 | 180,000 | |
Aircraft loans [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | 39,347 | 46,294 | |
Promissory note due to DHL, unsecured [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | $ 0 | $ 1,550 |
Debt Obligations (Schedule of43
Debt Obligations (Schedule of Long Term Debt Maturities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
Total long term obligations | $ 309,347 | $ 344,094 |
Debt Obligations (Narrative) (D
Debt Obligations (Narrative) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($)aircrafts | May. 05, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Long term obligations | $ 309,347 | $ 344,094 | |
Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Collateral coverage percentage | 150.00% | ||
Unsubordinated term loan [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 105,000 | 116,250 | |
Increase in Additional Indebtedness. Long-Term Debt | $ 50,000 | ||
Additional Indebtedness Long-Term Debt | 150,000 | ||
Variable interest rate | 1.95% | ||
Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 165,000 | 180,000 | |
Accordion feature amount | 50,000 | ||
Increased borrowing capacity | 50,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 325,000 | ||
Variable interest rate | 1.95% | ||
Credit facility, revolving credit loan, remaining borrowing capacity | $ 151,700 | ||
Letters of credit outstanding | 8,300 | ||
Aircraft loans [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 39,347 | 46,294 | |
Collateralized property (in aircrafts) | aircrafts | 6 | ||
Balloon payment percentage | 20.00% | ||
Variable interest rate, minimum | 6.74% | ||
Variable interest rate, maximum | 7.36% | ||
Promissory note due to DHL, unsecured [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 0 | $ 1,550 | |
Maximum [Member] | Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Collateral coverage percentage | 175.00% | ||
Maximum amount of common stock authorized for repurchase | $ 50,000 | ||
Minimum [Member] | Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Collateral coverage percentage | 50.00% |
Commitments and Contingencies45
Commitments and Contingencies (Litigation) (Details) - 9 months ended Sep. 30, 2015 € in Millions, $ in Millions | USD ($) | EUR (€) |
Brussels Instituut voor Milieubeheer [Member] | ||
Loss Contingencies [Line Items] | ||
Administrative penalty amount | $ 0.4 | € 0.4 |
Commitments and Contingencies46
Commitments and Contingencies (Labor Unions) (Details) - Workforce Subject to Collective Bargaining Arrangements [Member] - Labor Unions [Member] | 9 Months Ended |
Sep. 30, 2015 | |
ABX [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 10.20% |
ATI [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 6.00% |
Pension and Other Post-Retire47
Pension and Other Post-Retirement Benefit Plans (Funded Status) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plans [Member] | ||||
Change in benefit obligation [Roll Forward] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 8,646 | 9,879 | 25,938 | 29,637 |
Change in plan assets [Roll Forward] | ||||
Employer contributions | 5,297 | 6,232 | ||
Post-Retirement Healthcare Plans [Member] | ||||
Change in benefit obligation [Roll Forward] | ||||
Service cost | 44 | 60 | 132 | 180 |
Interest cost | $ 48 | $ 71 | $ 144 | $ 213 |
Pension and Other Post-Retire48
Pension and Other Post-Retirement Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Pension Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 8,646 | 9,879 | 25,938 | 29,637 |
Expected return on plan assets | (11,020) | (11,528) | (33,060) | (34,584) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of net (gain) loss | 1,793 | (1) | 5,379 | (2) |
Net periodic benefit cost (gain) | (581) | (1,650) | (1,743) | (4,949) |
Post-Retirement Healthcare Plans [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 44 | 60 | 132 | 180 |
Interest cost | 48 | 71 | 144 | 213 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (136) | (872) | (408) | (2,616) |
Amortization of net (gain) loss | 73 | 80 | 219 | 240 |
Net periodic benefit cost (gain) | $ 29 | $ (661) | $ 87 | $ (1,983) |
Pension and Other Post-Retire49
Pension and Other Post-Retirement Benefit Plans (Cash Flows) (Details) - Pension Plans [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 5,297 | $ 6,232 |
Estimated future employer contributions | $ 300 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2015Rate | |
Income Tax Disclosure [Line Items] | |
Effective Income Tax Rate Reconciliation, Percent | (38.60%) |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision (Benefit)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Deferred taxes: | ||||
Total income tax expense from continuing operations | $ 4,000 | $ 6,045 | $ 16,251 | $ 15,247 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) | 9 Months Ended |
Sep. 30, 2015Rate | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |
Effective income tax rate | (38.60%) |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Derivative [Line Items] | |||||
Net gain on derivative instruments | $ (96) | $ (639) | $ (347) | $ (969) | |
May 9, 2016 [Member] | Swap [Member] | |||||
Derivative [Line Items] | |||||
Stated Interest Rate | 2.02% | 2.02% | |||
Market Value (Liability) | $ (507) | $ (507) | $ (1,071) | ||
Derivative Liability, Notional Amount | $ 52,500 | $ 52,500 | 58,125 | ||
June 30, 2017 [Member] [Member] | Swap [Member] | |||||
Derivative [Line Items] | |||||
Stated Interest Rate | 1.1825% | 1.1825% | |||
Market Value (Liability) | $ (565) | $ (565) | (348) | ||
Derivative Liability, Notional Amount | $ 52,500 | $ 52,500 | $ 58,125 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (1,410) | $ (938) | $ (1,410) | $ (938) | $ (1,355) | $ (1,059) | $ 0 | $ 0 |
Accumulated other comprehensive income (loss), beginning balance | (80,972) | (30,841) | (82,876) | (29,818) | ||||
Other comprehensive income (loss) before reclassifications: | ||||||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (84) | (1,042) | (537) | (1,042) | ||||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 29 | 104 | 186 | 104 | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | 1,866 | 79 | 5,598 | 238 | ||||
Negative prior service cost (reclassified to salaries, wages and benefits) | (136) | (872) | (408) | (2,616) | ||||
Hedging gain (reclassified to interest expense) | 0 | (10) | (50) | (32) | ||||
Income Tax (Expense) or Benefit | 0 | 4 | 46 | 12 | ||||
Income Tax (Expense) or Benefit | (599) | 396 | (1,652) | 980 | ||||
Other comprehensive income (loss), net of tax | 0 | (6) | (4) | (20) | ||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (55) | (938) | (351) | (938) | ||||
Other comprehensive income (loss), net of tax | (1,449) | 2,951 | (2,472) | |||||
Accumulated other comprehensive income (loss), ending balance | (79,925) | (32,290) | (79,925) | (32,290) | ||||
Total comprehensive income (loss) | 7,608 | 8,458 | 29,405 | 23,677 | ||||
Pension Plans [Member] | ||||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive income (loss), beginning balance | (78,907) | (31,073) | (81,191) | (31,072) | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | 1,793 | (1) | 5,379 | (2) | ||||
Income Tax (Expense) or Benefit | (651) | 0 | (1,953) | 0 | ||||
Other comprehensive income (loss), net of tax | 1,142 | (1) | 3,426 | (2) | ||||
Accumulated other comprehensive income (loss), ending balance | (77,765) | (31,074) | (77,765) | (31,074) | ||||
Post-Retirement Plans [Member] | ||||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive income (loss), beginning balance | (710) | 237 | (630) | 1,245 | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | 73 | 80 | 219 | 240 | ||||
Negative prior service cost (reclassified to salaries, wages and benefits) | (136) | (872) | (408) | (2,616) | ||||
Income Tax (Expense) or Benefit | 23 | 288 | 69 | 864 | ||||
Other comprehensive income (loss), net of tax | (40) | (504) | (120) | (1,512) | ||||
Accumulated other comprehensive income (loss), ending balance | (750) | (267) | (750) | (267) | ||||
Derivative [Member] | ||||||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||||||
Accumulated other comprehensive income (loss), beginning balance | 0 | (5) | 4 | 9 | ||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Accumulated other comprehensive income (loss), ending balance | 0 | $ (11) | $ 0 | $ (11) | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||
Total comprehensive income (loss) | $ 1,047 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 1,406,550 | 1,406,550 | 1,477,762 |
Granted (in shares) | 390,200 | 467,567 | |
Converted (in shares) | (263,791) | (186,179) | |
Expired (in shares) | (1,600) | (4,300) | |
Forfeited (in shares) | (13,800) | (17,800) | |
Outstanding at end of period (in shares) | 1,517,559 | 1,737,050 | |
Vested (in shares) | 329,059 | 415,550 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding at beginning of period, Weighted average grant-date fair value (in dollars per share) | $ 6.21 | $ 6.21 | $ 5.83 |
Granted, Weighted average grant-date fair value (in dollars per share) | 9.61 | 7.52 | |
Converted, Weighted average grant-date fair value (in dollars per share) | 6.42 | 7.50 | |
Expired, Weighted average grant-date fair value (in dollars per share) | 10.11 | 7.64 | |
Forfeited, Weighted average grant-date fair value (in dollars per share) | 7.36 | 6.26 | |
Outstanding at end of period, Weighted average grant-date fair value (in dollars per share) | 7.03 | 6.10 | |
Vested (in dollars per share) | $ 5.61 | $ 5.28 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Share-based compensation expense | $ 2 | $ 2.1 | |
Unrecognized share-based compensation expense | $ 3.5 | ||
Unrecognized share-based compensation, weighted average recognition period | 1 year 3 months | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted, Weighted average grant-date fair value (in dollars per share) | 9.22 | ||
Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Historical volatility period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.90% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 41.50% | ||
Market Condition Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted, Weighted average grant-date fair value (in dollars per share) | $ 10.99 | ||
Performance Condition Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted, Weighted average grant-date fair value (in dollars per share) | $ 9.22 | ||
Time-Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted, Weighted average grant-date fair value (in dollars per share) | $ 9.22 | ||
Time-Based Awards [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Number of additional outstanding shares issued (in shares) | 1,820,159 | ||
Director [Member] | Time-Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Vested (in shares) | 329,059 | ||
Director [Member] | Time-Based Awards [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 6 months | ||
Director [Member] | Time-Based Awards [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 12 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share Reconciliation [Abstract] | ||||
Earnings from continuing operations | $ 6,347 | $ 9,595 | $ 25,812 | $ 25,415 |
Weighted-average shares outstanding for basic earnings per share (in shares) | 64,239,000 | 64,286,000 | 64,411,000 | 64,240,000 |
Common equivalent shares: | ||||
Effect of stock-based compensation awards (in shares) | 932,000 | 985,000 | 930,000 | 967,000 |
Weighted-average shares outstanding assuming dilution (in shares) | 65,171,000 | 65,271,000 | 65,341,000 | 65,207,000 |
Basic earnings per share from continuing operations (in dollars per share) | $ 0.10 | $ 0.15 | $ 0.40 | $ 0.40 |
Diluted earnings per share from continuing operations (in dollars per share) | $ 0.10 | $ 0.15 | $ 0.40 | $ 0.39 |
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Segment Information Segment Rec
Segment Information Segment Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
REVENUES | $ 142,305 | $ 138,443 | $ 437,683 | $ 431,654 | |
Customer revenues | 142,305 | 138,443 | 437,683 | 431,654 | |
Depreciation and amortization expense | 30,754 | 26,307 | 91,147 | 78,428 | |
Net unallocated interest expense | (2,684) | (3,309) | (8,588) | (10,613) | |
Unrealized Gain (Loss) on Derivatives | 96 | 639 | 347 | 969 | |
Pre-tax earnings from continuing operations | 10,347 | 15,640 | 42,063 | 40,662 | |
Assets | 1,033,750 | 1,033,750 | $ 1,031,629 | ||
Customer Revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 142,305 | 138,443 | 437,683 | 431,654 | |
Customer revenues | 142,305 | 138,443 | 437,683 | 431,654 | |
CAM [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 42,574 | 40,226 | 131,060 | 121,451 | |
Customer revenues | 42,574 | 40,226 | 131,060 | 121,451 | |
Depreciation and amortization expense | 21,305 | 19,740 | 64,571 | 58,413 | |
Segment earnings (loss) | 13,482 | 13,574 | 42,361 | 38,681 | |
Net unallocated interest expense | (2,300) | (2,800) | (7,200) | (9,100) | |
Assets | 796,333 | 796,333 | 801,195 | ||
CAM [Member] | Customer Revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 23,671 | 20,227 | 68,212 | 56,480 | |
Customer revenues | 23,671 | 20,227 | 68,212 | 56,480 | |
ACMI Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 99,918 | 102,853 | 309,278 | 322,753 | |
Customer revenues | 99,918 | 102,853 | 309,278 | 322,753 | |
Depreciation and amortization expense | 9,461 | 6,543 | 26,579 | 20,569 | |
Segment earnings (loss) | (4,914) | (126) | (6,359) | (6,863) | |
Assets | 139,940 | 139,940 | 135,109 | ||
ACMI Services [Member] | Customer Revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 98,820 | 102,853 | 308,180 | 322,753 | |
Customer revenues | 98,820 | 102,853 | 308,180 | 322,753 | |
All other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 38,398 | 42,055 | 106,183 | 105,356 | |
Customer revenues | 38,398 | 42,055 | 106,183 | 105,356 | |
Depreciation and amortization expense | (12) | 24 | (3) | (554) | |
Segment earnings (loss) | 2,077 | 2,010 | 6,993 | 9,135 | |
Assets | 97,477 | 97,477 | $ 95,325 | ||
All other [Member] | Customer Revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | 19,814 | 15,363 | 61,291 | 52,421 | |
Customer revenues | 19,814 | 15,363 | 61,291 | 52,421 | |
Eliminate inter-segment revenues [Member] | |||||
Segment Reporting Information [Line Items] | |||||
REVENUES | (38,585) | (46,691) | (108,838) | (117,906) | |
Customer revenues | (38,585) | (46,691) | (108,838) | (117,906) | |
Significant Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net unallocated interest expense | $ (394) | $ (457) | $ (1,279) | $ (1,260) |
Segment Information Narrative (
Segment Information Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segments | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments (in segments) | segments | 2 | |||
Interest expense | $ 2,684 | $ 3,309 | $ 8,588 | $ 10,613 |
CAM [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Interest expense | $ 2,300 | $ 2,800 | $ 7,200 | $ 9,100 |
Segment Information Entity-Wide
Segment Information Entity-Wide Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Customer revenues | $ 142,305 | $ 138,443 | $ 437,683 | $ 431,654 |
Customer Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Customer revenues | 142,305 | 138,443 | 437,683 | 431,654 |
All other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Customer revenues | 38,398 | 42,055 | 106,183 | 105,356 |
All other [Member] | Customer Revenues [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Customer revenues | $ 19,814 | $ 15,363 | $ 61,291 | $ 52,421 |
Uncategorized Items - atsg-2015
Label | Element | Value |
Retained Earnings [Member] | ||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | us-gaap_ComprehensiveIncomeNetOfTax | $ 6,561 |