Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 14, 2016 | Jun. 30, 2015 | |
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-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 63,888,980 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 551,045,344 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 17,697 | $ 30,560 |
Accounts receivable, net of allowance of $415 in 2015 and $812 in 2014 | 57,986 | 43,513 |
Inventory | 12,963 | 10,665 |
Prepaid supplies and other | 12,660 | 12,613 |
TOTAL CURRENT ASSETS | 101,306 | 97,351 |
Property and equipment, net | 875,401 | 847,268 |
Other assets | 26,827 | 28,230 |
Goodwill and acquired intangibles | 38,729 | 39,010 |
TOTAL ASSETS | 1,042,263 | 1,011,859 |
CURRENT LIABILITIES: | ||
Accounts payable | 44,417 | 40,608 |
Accrued salaries, wages and benefits | 27,454 | 25,633 |
Accrued expenses | 8,107 | 8,201 |
Current portion of debt obligations | 33,865 | 24,344 |
Unearned revenue | 12,963 | 12,914 |
TOTAL CURRENT LIABILITIES | 126,806 | 111,700 |
Long term debt | 284,335 | 319,750 |
Post-retirement obligations | 108,194 | 92,050 |
Other liabilities | 61,913 | 57,647 |
Deferred income taxes | 96,858 | 83,223 |
TOTAL LIABILITIES | $ 678,106 | $ 664,370 |
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; 64,077,140 and 64,854,950 shares issued and outstanding in 2015 and 2014, respectively | 641 | 649 |
Additional paid-in capital | 518,259 | 526,669 |
Accumulated deficit | (55,731) | (96,953) |
Accumulated other comprehensive loss | (99,012) | (82,876) |
TOTAL STOCKHOLDERS’ EQUITY | 364,157 | 347,489 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 1,042,263 | $ 1,011,859 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets, Current [Abstract] | ||
Allowance for doubtful accounts | $ 415 | $ 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) | 64,077,140 | 64,854,950 |
Common stock, shares outstanding (in shares) | 64,077,140 | 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 | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
REVENUES | $ 619,264 | $ 589,592 | $ 580,023 |
OPERATING EXPENSES | |||
Salaries, wages and benefits | 181,785 | 166,526 | 175,383 |
Fuel | 52,615 | 53,521 | 49,376 |
Maintenance, materials and repairs | 96,044 | 91,528 | 97,053 |
Depreciation and amortization | 125,443 | 108,254 | 91,749 |
Travel | 18,007 | 17,662 | 18,693 |
Contracted ground and aviation services | 18,983 | 13,245 | 12,953 |
Rent | 11,677 | 26,650 | 27,468 |
Landing and ramp | 9,727 | 10,305 | 11,204 |
Insurance | 3,645 | 5,304 | 6,216 |
Impairment of goodwill | 0 | 0 | 52,585 |
Pension settlement cost | 0 | (6,700) | 0 |
Other operating expenses | 28,548 | 25,372 | 24,158 |
Operating Expenses | 546,474 | 525,067 | 566,838 |
OPERATING INCOME | 72,790 | 64,525 | 13,185 |
OTHER INCOME (EXPENSE) | |||
Interest income | 85 | 92 | 74 |
Interest expense | (11,232) | (13,937) | (14,249) |
Net gain on derivative instruments | 920 | 1,096 | 631 |
Other Nonoperating Income (Expense) | (10,227) | (12,749) | (13,544) |
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 62,563 | 51,776 | (359) |
INCOME TAX EXPENSE | (23,408) | (19,702) | (19,266) |
EARNINGS (LOSS) FROM CONTINUING OPERATIONS | 39,155 | 32,074 | (19,625) |
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES | 2,067 | (2,214) | (3) |
NET EARNINGS (LOSS) | $ 41,222 | $ 29,860 | $ (19,628) |
BASIC EARNINGS (LOSS) PER SHARE | |||
Basic earnings per share from continuing operations (in dollars per share) | $ 0.61 | $ 0.50 | $ (0.31) |
Discontinued operations (in dollars per share) | 0.03 | (0.04) | 0 |
TOTAL BASIC EARNINGS PER SHARE (in dollars per share) | 0.64 | 0.46 | (0.31) |
DILUTED EARNINGS (LOSS) PER SHARE | |||
Diluted earnings per share from continuing operations (in dollars per share) | 0.60 | 0.49 | (0.31) |
Discontinued operations (in dollars per share) | 0.03 | (0.03) | 0 |
TOTAL DILUTED NET EARNINGS PER SHARE (in dollars per share) | $ 0.63 | $ 0.46 | $ (0.31) |
WEIGHTED AVERAGE SHARES | |||
Basic (in shares) | 64,242 | 64,253 | 63,992 |
Diluted (in shares) | 65,127 | 65,211 | 63,992 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
NET EARNINGS (LOSS) | $ 41,222 | $ 29,860 | $ (19,628) |
Other comprehensive income (loss), net of tax | (4) | (5) | (29) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (336) | (1,059) | 0 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | (31,895) | (90,180) | 130,330 |
Income tax (expense) or benefit | 46 | 37 | 21 |
TOTAL COMPREHENSIVE INCOME (LOSS), net of tax | 25,086 | (23,198) | 67,841 |
Pension Plans [Member] | |||
Other comprehensive income (loss), net of tax | (16,111) | (50,119) | 90,530 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | (32,640) | (90,400) | 129,856 |
Income tax (expense) or benefit | 9,359 | 28,623 | (51,622) |
Post-Retirement Plans [Member] | |||
Other comprehensive income (loss), net of tax | 315 | (1,875) | (3,032) |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | 745 | 220 | 474 |
Income tax (expense) or benefit | $ (180) | $ 1,071 | $ 1,729 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Purchase of common stock | $ (10,345) | $ 0 | $ 0 |
OPERATING ACTIVITIES: | |||
Net earnings (loss) from continuing operations | 39,155 | 32,074 | (19,625) |
Net earnings (loss) from discontinued operations | 2,067 | (2,214) | (3) |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Impairment of goodwill and acquired intangibles | 0 | 0 | 52,585 |
Depreciation and amortization | 125,443 | 108,254 | 91,749 |
Pension and post-retirement | 6,920 | 8,492 | 7,061 |
Deferred income taxes | 23,691 | 17,757 | 18,772 |
Amortization of stock-based compensation | 2,454 | 2,924 | 2,732 |
Amortization of DHL promissory note | (1,550) | (6,200) | (6,200) |
Net gain on derivative instruments | (920) | (1,096) | (631) |
Changes in assets and liabilities: | |||
Accounts receivable | (14,410) | 9,582 | (4,994) |
Inventory and prepaid supplies | (3,896) | (4,164) | (900) |
Accounts payable | 4,424 | (803) | 2,012 |
Unearned revenue | (1,116) | 1,148 | (6,205) |
Accrued expenses, salaries, wages, benefits and other liabilities | 8,375 | 344 | (112) |
Pension and post-retirement assets | (16,098) | (14,662) | (38,352) |
Other | (840) | (2,651) | (3,478) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 173,699 | 148,785 | 94,411 |
INVESTING ACTIVITIES: | |||
Capital expenditures | (158,714) | (112,184) | (112,712) |
Proceeds from property and equipment | 6,841 | 3,602 | 1,521 |
Investment in nonconsolidated affiliate | 0 | (15,000) | 0 |
Other proceeds | 0 | 0 | 6,803 |
NET CASH (USED IN) INVESTING ACTIVITIES | (151,873) | (123,582) | (104,388) |
FINANCING ACTIVITIES: | |||
Principal payments on long term obligations | (69,344) | (79,221) | (53,766) |
Proceeds from borrowings | 45,000 | 45,000 | 80,000 |
Funding for hangar construction | 0 | 7,879 | 0 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | (34,689) | (26,342) | 26,234 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (12,863) | (1,139) | 16,257 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 30,560 | 31,699 | 15,442 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 17,697 | 30,560 | 31,699 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest paid, net of amount capitalized | 10,748 | 13,576 | 13,752 |
Federal alternative minimum and state income taxes paid | 870 | 604 | 1,313 |
SUPPLEMENTAL NON-CASH INFORMATION: | |||
Debt extinguished | 1,550 | 6,200 | 6,200 |
Accrued capital expenditures | $ 7,033 | $ 7,648 | $ 1,055 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at at Dec. 31, 2012 | $ 299,256 | $ 641 | $ 523,087 | $ (107,185) | $ (117,287) |
Balance at (in shares) at Dec. 31, 2012 | 64,130,056 | ||||
Stock-based compensation plans | |||||
Grant of restricted stock | 0 | $ 3 | (3) | ||
Grant of restricted stock (in shares) | 258,800 | ||||
Issuance of common shares, net of withholdings | (1,048) | $ 2 | (1,050) | ||
Withholdings of common shares, net of issuances (in shares) | 238,049 | ||||
Forfeited restricted stock | 0 | $ 0 | 0 | ||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 187 | 187 | |||
Forfeited restricted stock (in shares) | (8,600) | ||||
Amortization of stock awards and restricted stock | 2,732 | 2,732 | |||
Total comprehensive income (loss) | 67,841 | (19,628) | 87,469 | ||
Balance at at Dec. 31, 2013 | 368,968 | $ 646 | 524,953 | (126,813) | (29,818) |
Balance at (in shares) at Dec. 31, 2013 | 64,618,305 | ||||
Stock-based compensation plans | |||||
Grant of restricted stock | 0 | $ 2 | (2) | ||
Grant of restricted stock (in shares) | 196,000 | ||||
Issuance of common shares, net of withholdings | (938) | $ 1 | (939) | ||
Issuance of common shares, net of withholdings (in shares) | 49,545 | ||||
Forfeited restricted stock | 0 | $ 0 | 0 | ||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | (267) | (267) | |||
Forfeited restricted stock (in shares) | (8,900) | ||||
Amortization of stock awards and restricted stock | 2,924 | 2,924 | |||
Total comprehensive income (loss) | (23,198) | 29,860 | (53,058) | ||
Balance at at Dec. 31, 2014 | $ 347,489 | $ 649 | 526,669 | (96,953) | (82,876) |
Balance at (in shares) at Dec. 31, 2014 | 64,854,950 | 64,854,950 | |||
Stock-based compensation plans | |||||
Grant of restricted stock | $ 0 | $ 2 | (2) | ||
Grant of restricted stock (in shares) | 170,800 | ||||
Issuance of common shares, net of withholdings | (1,310) | $ 1 | (1,311) | ||
Withholdings of common shares, net of issuances (in shares) | 137,457 | ||||
Forfeited restricted stock | 0 | $ 0 | 0 | ||
Stock Repurchased and Retired During Period, Shares | (1,079,167) | ||||
Stock Repurchased and Retired During Period, Value | (10,345) | $ (11) | (10,334) | ||
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | 783 | 783 | |||
Forfeited restricted stock (in shares) | (6,900) | ||||
Amortization of stock awards and restricted stock | 2,454 | 2,454 | |||
Total comprehensive income (loss) | 25,086 | 41,222 | (16,136) | ||
Balance at at Dec. 31, 2015 | $ 364,157 | $ 641 | $ 518,259 | $ (55,731) | $ (99,012) |
Balance at (in shares) at Dec. 31, 2015 | 64,077,140 | 64,077,140 |
Summary of Financial Statement
Summary of Financial Statement Preparation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 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, freight forwarders, airlines and government customers. 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 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. 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. The Company serves a base of concentrated customers who typically have a diverse line of international cargo traffic. 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. In addition to its airline operations and aircraft leasing services, the Company sells aircraft parts, provides aircraft and equipment maintenance services, and operates mail and package sorting facilities for the U.S. Postal Service (“USPS”). Basis of Presentation The accompanying 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 a 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. The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Estimates and assumptions are used to record allowances for uncollectible amounts, self-insurance reserves, spare parts inventory, depreciation and impairments of property, equipment, goodwill and intangibles, post-retirement obligations, income taxes, contingencies and litigation. Changes in estimates and assumptions may have a material impact on the consolidated financial statements. Cash and Cash Equivalents The Company classifies short-term, highly liquid investments with maturities of three months or less at the time of purchase as cash and cash equivalents. These investments, consisting of money market funds, are recorded at cost, which approximates fair value. Substantially all deposits of the Company’s cash are held in accounts that exceed federally insured limits. The Company deposits cash in common financial institutions which management believes are financially sound. Accounts Receivable and Allowance for Uncollectible Accounts The Company's accounts receivable is primarily due from its significant customers (see Note B), other airlines, the USPS, delivery companies and freight forwarders. The Company performs a quarterly evaluation of the accounts receivable and the allowance for uncollectible accounts by reviewing specific customers' recent payment history, growth prospects, financial condition and other factors that may impact a customer's ability to pay. The Company establishes an allowance for uncollectible accounts for probable losses due to a customer's potential inability or unwillingness to make contractual payments. Account balances are written off against the allowance when the Company ceases collection efforts. Inventory The Company’s inventory is comprised primarily of expendable aircraft parts and supplies used for aircraft maintenance. Inventory is generally charged to expense when issued for use on a Company aircraft. The Company values its inventory of aircraft parts and supplies at weighted-average cost and maintains a related obsolescence reserve. The Company records an obsolescence reserve on a base stock of inventory for each fleet type. The amortization of base stock for the obsolescence reserve corresponds to the expected life of each fleet type. Additionally, the Company monitors the usage rates of inventory parts and segregates parts that are technologically outdated or no longer used in its fleet types. Slow moving and segregated items are actively marketed and written down to their estimated net realizable values based on market conditions. Management analyzes the inventory reserve for reasonableness at the end of each quarter. That analysis includes consideration of the expected fleet life, amounts expected to be on hand at the end of a fleet life, and recent events and conditions that may impact the usability or value of inventory. Events or conditions that may impact the expected life, usability or net realizable value of inventory include additional aircraft maintenance directives from the FAA, changes in DOT regulations, new environmental laws and technological advances. Goodwill and Intangible Assets The Company assesses, during the fourth quarter of each year, the carrying value of goodwill. The first step of the assessment is the estimation of fair value of each reporting unit, which is compared to the carrying value. If step one indicates that impairment potentially exists, a second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the implied fair value of goodwill is less than its carrying value. The Company also conducts impairment assessments of goodwill, indefinite-lived intangible assets and finite-lived intangible assets whenever events or changes in circumstance indicate an impairment may have occurred. Finite-lived intangible assets are amortized over their estimated useful economic lives. Property and Equipment Property and equipment held for use is stated at cost, net of any impairment recorded. The cost and accumulated depreciation of disposed property and equipment are removed from the accounts with any related gain or loss reflected in earnings from operations. Depreciation of property and equipment is provided on a straight-line basis over the lesser of the asset’s useful life or lease term. Depreciable lives are summarized as follows: Boeing 767 and 757 aircraft and flight equipment 10 to 18 years Ground equipment 3 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years The Company periodically evaluates the useful lives, salvage values and fair values of property and equipment. Acceleration of depreciation expense or the recording of significant impairment losses could result from changes in the estimated useful lives of assets due to a number of reasons, such as excess aircraft capacity or changes in regulations governing the use of aircraft. Aircraft and other long-lived assets are tested for impairment when circumstances indicate the carrying value of the assets may not be recoverable. To conduct impairment testing, the Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset group is less than the carrying value. If impairment exists, an adjustment is made to write the assets down to fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined considering quoted market values, discounted cash flows or internal and external appraisals, as applicable. For assets held for sale, impairment is recognized when the fair value less the cost to sell the asset is less than the carrying value. The Company’s accounting policy for major airframe and engine maintenance varies by subsidiary and aircraft type. The costs for ABX's Boeing 767-200 airframe maintenance, which is the majority of the Company's aircraft fleet, are expensed as they are incurred. The costs of major airframe maintenance for the Company's other aircraft are capitalized and amortized over the useful life of the overhaul. Most of the Company's General Electric CF6 engines that power the Boeing 767-200 aircraft are maintained under “power by the hour” agreements with an engine maintenance provider. Under the power by the hour agreements, the engines are maintained by the service provider for a fixed fee per flight hour; accordingly, the cost of engine maintenance is generally expensed as flight hours occur. Maintenance for the airlines’ other aircraft engines, including those on the Boeing 767-300 and Boeing 757 aircraft, are typically contracted to service providers on a time and material basis and the costs of those engine overhauls are capitalized and amortized over the useful life of the overhaul. In the event the Company leases aircraft from external lessors, the Company may be required to make periodic payments to the lessor under certain aircraft leases for future maintenance events such as engine overhauls and major airframe maintenance. Such payments are recorded as deposits until drawn for qualifying maintenance costs. The maintenance costs are expensed or capitalized in accordance with the airline's accounting policy for major airframe and engine maintenance. The Company evaluates at the balance sheet date, whether it is probable that an amount on deposit will be returned by the lessor to reimburse the costs of the maintenance activities. When an amount on deposit is less than probable of being returned, it is recognized as additional maintenance expense. Capitalized Interest Interest costs incurred while aircraft are being modified are capitalized as an additional cost of the aircraft until the date the asset is placed in service. Capitalized interest was $0.2 million , $0.1 million and $1.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. Discontinued Operations A business component whose operations are discontinued is reported as discontinued operations if the cash flows of the component have been eliminated from the ongoing operations of the Company and represents a strategic shift that had a major impact on the Company. The results of discontinued operations are aggregated and presented separately in the consolidated statements of operations. Self-Insurance The Company is self-insured for certain workers’ compensation, employee healthcare, automobile, aircraft, and general liability claims. The Company maintains excess claim coverage with common insurance carriers to mitigate its exposure to large claim losses. The Company records a liability for reported claims and an estimate for incurred claims that have not yet been reported. Accruals for these claims are estimated utilizing historical paid claims data and recent claims trends. Other liabilities included $23.3 million and $25.8 million at December 31, 2015 and December 31, 2014 , respectively, for self-insured reserves. Changes in claim severity and frequency could result in actual claims being materially different than the costs accrued. Pension and Post-Retirement Benefits The funded status of the Company's defined benefits pension or post-retirement health care plan is the difference between the fair value of plan assets and the accumulated benefit obligations to plan participants. The over funded or underfunded status of a plan is reflected in the consolidated balance sheet as an asset for over funded plans, or as a liability for underfunded plans. The funded status is ordinarily remeasured annually at year end using the fair value of plans assets, market based discount rates and actuarial assumptions. Changes in the funded status of the plans as a result of remeasuring plan assets and benefit obligations, are recorded to accumulated comprehensive loss and amortized into operating expense using a corridor approach. The Company's corridor approach amortizes variances in plan assets and benefit obligations that are a result of the previous measurement assumptions into earnings when the net deferred variances exceed 10% of the greater of the market value of plan assets or the benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining service period to retirement date of active plan participants. Costs adjustments for plan amendments are also deferred and amortized over the expected working life or the life expectancy of plan participants. Security and Maintenance Deposits The Company's customer leases typically obligate the lessee to maintain the Company's aircraft in compliance with regulatory standards for flight and aircraft maintenance. The Company may require an aircraft lessee to pay a security deposit or provide a letter of credit until the expiration of the lease. Additionally, the Company's leases may require a lessee to make monthly payments toward future expenditures for scheduled heavy maintenance events. The Company records security and maintenance deposits in other liabilities. If a lease requires monthly maintenance payments, the Company is typically required to reimburse the lessee for costs they incur for scheduled heavy maintenance events after completion of the work and receipt of qualifying documentation. Reimbursements to the lessee are recorded against the previously paid maintenance deposits. Income Taxes Income taxes have been computed using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against net deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. The Company recognizes the benefit of a tax position taken on a tax return, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. An uncertain income tax position is not recognized if it has a less than a 50% likelihood of being sustained. The Company recognizes interest and penalties accrued related to uncertain tax positions in operating expense. In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which simplifies the presentation of deferred income taxes by classifying all deferred tax assets and liabilities as noncurrent in a classified statement of financial position. It is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. The Company elected to early adopt ASU 2015-17 as of December 31, 2015, as permitted by the FASB, and has retrospectively applied the standard to all periods presented in the consolidated balance sheets. The adoption of ASU 2015-17 resulted in a $19.8 million and $14.0 million reclassification of the Company's deferred tax assets from a current asset to a noncurrent liability in the consolidated balance sheet as of December 31, 2014 and 2013 respectively. Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. Comprehensive Income Comprehensive income includes net earnings and other comprehensive income or loss. Other comprehensive income or loss results from certain changes in the Company’s liabilities for pension and other post retirement benefits, gains and losses associated with interest rate hedging instruments and fluctuations in currency exchange rates related to the foreign affiliate. Fair Value Information Assets or liabilities that are required to be measured at fair value are reported using the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820-10 Fair Value Measurements and Disclosures establishes three levels of input that may be used to measure fair value: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. Revenue Recognition Aircraft lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Revenues generated from airline service agreements are typically recognized based on hours flown or the amount of aircraft and crew resources provided during a reporting period. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are typically measured on a monthly basis and recorded to revenue in the corresponding month earned. Revenues for operating expenses that are reimbursed through airline service agreements, including consumption of aircraft fuel, are generally recognized as the costs are incurred. Revenues from charter service agreements are recognized on scheduled and non-scheduled flights when the specific flight has been completed. Revenues from the sale of aircraft parts and engines are recognized when the parts are delivered. Revenues earned and expenses incurred in providing aircraft-related maintenance, repair or technical services are recognized in the period in which the services are completed and delivered to the customer. Revenues derived from sorting parcels are recognized in the reporting period in which the services are performed. Revenue is not recognized until collectibility is reasonably assured. 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. In July 2015, FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share, which removes the requirement for companies to disclose the fair value hierarchy for assets calculated at net asset value per share in common commingled trusts, for example. This standard is effective January 1, 2016 for the Company. This amendment must be applied retrospectively to all periods presented. In July 2015, FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 more closely aligns the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards ("IFRS"). The amendment in ASU 2015-11 is for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect the impact of adopting ASU 2015-11 to be material to the Company's financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which will require the recognition of right to-use-assets and lease liabilities for leases previously classified as operating leases by lessees. The standard will take effect for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early application will be permitted for all entities upon issuance of the final standard. In addition, the FASB has decided to require a lessee to apply a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements (the date of initial application). The modified retrospective approach would not require any transition accounting for leases that expired before the date of initial application. The FASB decided to not permit a full retrospective transition approach. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2015 | |
Significant Customers [Abstract] | |
Significant Customers | SIGNIFICANT CUSTOMERS DHL The Company's largest customer is DHL Network Operations (USA), Inc. and its affiliates ("DHL"). The Company has had long term contracts with DHL since August 2003. Revenues from continuing operations performed for DHL were approximately 46% , 55% and 54% of the Company's consolidated revenues from continuing operations for the years ended December 31, 2015, 2014 and 2013, respectively. The Company’s balance sheets include accounts receivable with DHL of $9.8 million and $12.2 million as of December 31, 2015 and December 31, 2014, respectively. The Company leases Boeing 767 aircraft to DHL under both long-term and short-term lease agreements. Under a separate crew, maintenance and insurance (“CMI”) agreement, the Company operates Boeing 767 aircraft that DHL leases from the Company and aircraft that DHL owns. Pricing for services provided through the CMI agreement is based on pre-defined fees, scaled for the number of aircraft operated and the number of flight crews provided to DHL for its U.S. network. The Company provides DHL with scheduled maintenance services for aircraft that DHL leases or owns. The Company also provides Boeing 767 and Boeing 757 air cargo transportation services for DHL through additional ACMI agreements in which the Company provides the aircraft, crews, maintenance and insurance under a single contract. Revenues generated from the ACMI agreements are typically based on hours flown. The Company also provides ground equipment, such as power units, air starts and related maintenance services to DHL under separate agreements. 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 16% , 16% and 17% of the Company's total revenues from continuing operations for the years ended December 31, 2015 , 2014 and 2013, respectively. The Company's balance sheets included accounts receivable with the U.S. Military of $9.7 million and $6.0 million as of December 31, 2015 and December 31, 2014, respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL, ACQUIRED INTANGIBLES AND EQUITY INVESTMENTS As of December 31, 2015, 2014 and 2013, the goodwill amounts were retested for impairment. To perform the first step of the goodwill impairment test, the Company determined the fair values of ATI and CAM separately using industry market multiples and discounted cash flows utilizing a market-derived rate of return (level 3 fair value inputs). The goodwill included in the CAM segment was not impaired. The ATI goodwill, included in ACMI Services segment, was found to be impaired as of December 31, 2013. The Company recorded an impairment charge of $52.6 million in 2013 to write-off the ATI goodwill. As a result of past events and market changes, the Company did not expect ATI to generate the forecasted net cash flows from ATI's Boeing 767 operations as previously expected. In December 2013 and in January 2014, the Company received notification from DHL that it would cease using ATI's Boeing 767 services in the Middle East by the end of February 2014. Further, as a result of persistent stagnant growth conditions at the end of 2013 and excess airlift capacity, including the projections published by the U.S. Military that reflected continued reductions in their demand for cargo (non combi) airlift, the Company allocated fewer Boeing 767 aircraft to ATI than previously expected. The Company instead deployed more Boeing 767 aircraft with other airlines since 2014. The carrying amounts of goodwill are as follows (in thousands): CAM Carrying value as of December 31, 2013 $ 34,395 Impairment — Carrying value as of December 31, 2014 $ 34,395 Impairment — Carrying value as of December 31, 2015 $ 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, 2013 $ 1,896 $ 3,000 $ 4,896 Amortization (281 ) — (281 ) Carrying value as of December 31, 2014 $ 1,615 $ 3,000 $ 4,615 Amortization (281 ) — (281 ) Carrying value as of December 31, 2015 $ 1,334 $ 3,000 $ 4,334 The customer relationship intangible amortizes through 2020. The Company recorded amortization expense for the customer relationship intangible asset of $0.3 million , $0.3 million and $0.3 million for the years ending December 31, 2015, 2014 and 2013, respectively. 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. 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, and Boeing 767 and 737 aircraft. West leases three Boeing 767 aircraft from the Company. 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 $13.1 million and $13.8 million at December 31, 2015 and 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 | 12 Months Ended |
Dec. 31, 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 December 31, 2015 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 8,711 $ — $ 8,711 Total Assets $ — $ 8,711 $ — $ 8,711 Liabilities Interest rate swap $ — $ (499 ) $ — $ (499 ) Total Liabilities $ — $ (499 ) $ — $ (499 ) 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 swap $ — $ (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 $1.3 million more than the carrying value, which was $318.2 million at December 31, 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 | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT The Company's property and equipment consists primarily of cargo aircraft, aircraft engines and other flight equipment. Property and equipment, to be held and used, is summarized as follows (in thousands): December 31, December 31, Flight equipment $ 1,372,099 $ 1,285,966 Ground equipment 36,593 33,677 Leasehold improvements, facilities and office equipment 25,327 25,180 Aircraft modifications and projects in progress 52,717 18,612 1,486,736 1,363,435 Accumulated depreciation (611,335 ) (516,167 ) Property and equipment, net $ 875,401 $ 847,268 CAM owned aircraft with a carrying value of $369.2 million and $289.5 million that were under leases to external customers as of December 31, 2015 and 2014, respectively. Minimum future lease payments for aircraft and equipment leased to external customers as of December 31, 2015 is scheduled to be $76.6 million , $70.5 million , $65.8 million , $33.5 million and $15.3 million for each of the next five years ending December 31, 2020. The carrying value of Boeing 727 and DC-8 freighter aircraft and engines available for sale totaled $0.3 million and $0.7 million as of December 31, 2015 and 2014, respectively. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS Long term obligations consisted of the following (in thousands): December 31, December 31, 2015 2014 Unsubordinated term loan $ 101,250 $ 116,250 Revolving credit facility 180,000 180,000 Aircraft loans 36,950 46,294 Promissory note due to DHL, unsecured — 1,550 Total long term obligations 318,200 344,094 Less: current portion (33,865 ) (24,344 ) Total long term obligations, net $ 284,335 $ 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 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 2.18% and 2.18% , respectively. The Senior Credit Agreement provides for the issuance of letters of credit on the Company's behalf. As of December 31, 2015, the unused revolving credit facility totaled $136.6 million , net of draws of $180.0 million and outstanding letters of credit of $8.4 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 scheduled annual principal payments on long term debt, as of December 31, 2015, for the next five years are as follows (in thousands): Principal Payments 2016 $ 33,865 2017 29,445 2018 18,640 2019 15,000 2020 221,250 2021 and beyond — $ 318,200 The promissory note payable to DHL was amortized ratably without cash payment in exchange for services provided under the term of the CMI agreement and, thus, was completely amortized on March 31, 2015. The promissory note beared interest at a rate of 5% per annum, and DHL reimbursed ABX the interest expense from the note. 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 | 12 Months Ended |
Dec. 31, 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 lease agreements with a regional port authority, the terms of which expire in May of 2019 and June of 2036 with options to extend the leases. 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, maintenance facilities at locations outside of the airpark in Wilmington. The future minimum lease payments of the Company as of December 31, 2015 are scheduled below (in thousands): Facility Leases Other Leases 2016 $ 7,612 $ 394 2017 6,115 148 2018 5,350 99 2019 2,639 34 2020 947 — 2021 and beyond 12,948 — Total minimum lease payments $ 35,611 $ 675 Customer Commitment On March 8, 2016, the Company entered into an Air Transportation Services Agreement (the “ATSA”) with Amazon Fulfillment Services, Inc. ("AFS"), a subsidiary of Amazon.com, Inc. (“Amazon”), pursuant to which the Company will lease 20 Boeing 767 freighter aircraft to AFS, including 12 Boeing 767-200 freighter aircraft for a term of five years and eight Boeing 767-300 freighter aircraft for a term of seven years. The ATSA, which has a term of five years, also provides for the operation of those aircraft by the Company’s airline subsidiaries. The Company owns all of the Boeing 767-200 freighter aircraft and either owns or has entered into purchase agreements for the eight Boeing 767-300 aircraft that are committed to be leased and operated under the ATSA. The ATSA becomes effective April 1, 2016. In conjunction with the execution of the ATSA, the Company and Amazon entered into agreements under which the Company issues warrants that grant Amazon the right to purchase such number of common shares as is necessary to bring Amazon’s ownership to 19.9% of the Company’s outstanding common shares after giving effect to the issuance of the warrants, subject to stockholder approval. Purchase Commitments The Company has agreements with Israel Aerospace Industries Ltd. ("IAI") for the conversion of Boeing 767 passenger aircraft into a standard freighter configuration. The conversions primarily consists of the installation of a standard cargo door and loading system. At December 31, 2015, the Company owned two Boeing 767-300 aircraft that were in the freighter modification process. Also, the Company had committed to the purchase of additional aircraft and to induct nine more aircraft into the freighter modification process during 2016, four of which are expected to be completed by the end of 2016. As of December 31, 2015 the Company's commitments to acquire and complete these aircraft conversions totaled $174.6 million . 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. Other In September 2015, the Company entered into a joint venture agreement to establish an express cargo airline serving multiple destinations within the People's Republic of China (including Hong Kong, Macau and Taiwan) and surrounding countries. The airline will be based 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. The Company may offer the new airline aircraft leases to build its fleet. The Company expects to contribute $16 million to the joint venture over the next six months. In addition to the foregoing matters, the Company is 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, the Company believes that its 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 December 31, 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 9.6% ATI Air Line Pilots Association 5.6% |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 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. ABX measures plan assets and benefit obligations as of December 31 of each year. Information regarding ABX’s sponsored defined benefit pension plans and post-retirement healthcare plans follow below. The accumulated benefit obligation reflects pension benefit obligations based on the actual earnings and service to-date of current employees. During 2014, ABX offered vested, former employee participants of the qualified pension plan and vested employee participants of the crewmembers qualified pension plan a one-time option to settle their pension benefit with the Company through a single payment or a nonparticipating annuity contract. As a result, ABX settled $98.7 million of pension obligations in December of 2014 from the pension plans assets. The settlement resulted in pre tax charges of $6.7 million to continued operations and $5.0 million to discontinued operations for 2014 due to the reclassification of $11.7 million of pre-tax losses from accumulated other comprehensive loss. Funded Status (in thousands): Pension Plans Post-retirement Healthcare Plans 2015 2014 2015 2014 Accumulated benefit obligation $ 777,320 $ 807,992 $ 4,999 $ 6,163 Change in benefit obligation Obligation as of January 1 $ 807,992 $ 761,774 $ 6,163 $ 7,482 Service cost — — 177 239 Interest cost 34,584 39,517 192 286 Plan transfers 2,558 2,659 — — Benefits paid (32,696 ) (29,961 ) (788 ) (1,623 ) Settlement payments — (98,738 ) — — Actuarial (gain) loss (35,118 ) 132,741 (745 ) (221 ) Obligation as of December 31 $ 777,320 $ 807,992 $ 4,999 $ 6,163 Change in plan assets Fair value as of January 1 $ 719,787 $ 751,246 $ — $ — Actual gain on plan assets (23,677 ) 88,453 — — Plan transfers 2,558 2,659 — — Employer contributions 6,181 6,128 788 1,623 Benefits paid (32,696 ) (29,961 ) (788 ) (1,623 ) Settlement payments $ — $ (98,738 ) $ — $ — Fair value as of December 31 $ 672,153 $ 719,787 $ — $ — Funded status Underfunded plans Current liabilities $ (1,346 ) $ (1,506 ) $ (626 ) $ (812 ) Non-current liabilities $ (103,821 ) $ (86,699 ) $ (4,373 ) $ (5,351 ) Components of Net Periodic Benefit Cost ABX’s net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for the years ended December 31, 2015, 2014 and 2013, are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plan 2015 2014 2013 2015 2014 2013 Service cost $ — $ — $ — $ 177 $ 239 275 Interest cost 34,584 39,517 35,957 192 286 264 Expected return on plan assets (44,082 ) (46,111 ) (45,990 ) — — — Settlements — 11,660 — — — — Amortization of prior service cost — — — (542 ) (3,487 ) (5,654 ) Amortization of net (gain) loss 7,170 (2 ) 12,296 292 321 419 Net periodic benefit cost $ (2,328 ) $ 5,064 $ 2,263 $ 119 $ (2,641 ) $ (4,696 ) Unrecognized Net Periodic Benefit Expense The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense at December 31 are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plans 2015 2014 2015 2014 Unrecognized prior service cost $ — $ — $ (153 ) $ (696 ) Unrecognized net actuarial loss 144,402 118,932 449 1,486 Accumulated other comprehensive (income) loss $ 144,402 $ 118,932 $ 296 $ 790 The following table sets forth the amounts of unrecognized net actuarial loss and (gain) recorded in accumulated other comprehensive loss that is expected to be recognized as components of net periodic benefit expense during 2016 (in thousands): Pension Plans Post- Retirement Healthcare Plans Amortization of actuarial loss $ 13,472 $ 160 Prior Service Cost — (102 ) Assumptions Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows: Pension Plans 2015 2014 2013 Discount rate - crewmembers 4.70% 4.35% 5.25% Discount rate - non-crewmembers 4.75% 4.40% 5.35% Expected return on plan assets 6.25% 6.25% 6.25% Net periodic benefit cost was based on the discount rate assumptions at the end of the previous year. The discount rate used to determine post-retirement healthcare obligations was 3.65% for pilots and 3.35% for non-pilots at December 31, 2015. The discount rate used to determine post-retirement healthcare obligations was 3.35% for pilots and 3.30% for non-pilots at December 31, 2014. The discount rate used to determine post-retirement healthcare obligations was 4.15% for pilots and 3.85% for non-pilots at December 31, 2013. Post-retirement healthcare plan obligations have not been funded. The Company's retiree healthcare contributions have been fixed for each participant, accordingly, healthcare cost trend rates do not effect the post-retirement healthcare obligations. Plan Assets The weighted-average asset allocations by asset category are as shown below: Composition of Plan Assets as of December 31 Asset category 2015 2014 Cash 1 % — % Equity securities 28 % 28 % Fixed income securities 67 % 68 % Real estate 4 % 4 % 100 % 100 % ABX uses an investment management firm to advise it in developing and executing an investment policy. The portfolio is managed with consideration for diversification, quality and marketability. The investment policy permits the following ranges of asset allocation: equities – 15% to 35% ; fixed income securities – 60% to 80% ; real estate – 0% to 5% ; cash – 0% to 5% . Except for U.S. Treasuries, no more than 10% of the fixed income portfolio and no more than 5% of the equity portfolio can be invested in securities of any single issuer. The overall expected long term rate of return was developed using various market assumptions in conjunction with the plans’ targeted asset allocation. The assumptions were based on historical market returns. Cash Flows In 2015 and 2014, the Company made contributions to its defined benefit plans of $6.2 million and $6.1 million , respectively and $98.7 million for settlement payments in 2014. The Company estimates that its contributions in 2016 will be approximately $6.3 million for its defined benefit pension plans and $0.6 million for its post-retirement healthcare plans. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the respective plans as follows (in thousands): Pension Benefits Post-retirement Healthcare Benefits 2016 $ 34,766 $ 626 2017 40,373 629 2018 40,064 592 2019 42,234 584 2020 44,237 573 Years 2021 to 2025 245,721 2,477 Fair Value Measurements The pension plan assets are valued at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Common Trust Funds—Common trust funds are composed of shares or units in non-publicly traded funds whereby the underlying assets in these funds (cash, cash equivalents, fixed income securities and equity securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Holdings of common trust funds are classified as Level 2 investments. Corporate Stock—This investment category consists of common and preferred stock issued by domestic and international corporations that are regularly traded on exchanges and price quotes for these shares are readily available. These investments are classified as Level 1 investments. Mutual Funds—Investments in this category include shares in registered mutual funds, unit trust and commingled funds. These funds consist of domestic equity, international equity and fixed income strategies. Investments in this category that are publicly traded on an exchange and have a share price published at the close of each business day are classified as Level 1 investments and holdings in the other mutual funds are classified as Level 2 investments. Fixed Income Investments—Securities in this category consist of U.S. Government or Agency securities, state and local government securities, corporate fixed income securities or pooled fixed income securities. Securities in this category that are valued utilizing published prices at the close of each business day are classified as Level 1 investments. Those investments valued by bid data prices provided by independent pricing sources are classified as Level 2 investments. Real Estate—The real estate investment in a commingled trust account consists of publicly traded real estate investment trusts and collateralized mortgage backed securities as well as private market direct property investments. The valuations for the holdings in these investments are not based on readily observable inputs and are classified as Level 3 investments. Hedge Funds and Private Equity—These investments are not readily tradeable and have valuations that are not based on readily observable data inputs. The fair value of these assets is estimated based on information provided by the fund managers or the general partners. Therefore, these assets are classified as Level 3. The pension plan assets measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2015 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Plan assets Common trust funds $ — $ 4,354 $ — $ 4,354 Corporate stock 14,832 — — 14,832 Mutual funds 46,991 99,056 — 146,047 Fixed income investments 4,954 443,600 — 448,554 Real estate — — 29,717 29,717 Hedge funds and private equity — — 28,649 28,649 Total plan assets $ 66,777 $ 547,010 $ 58,366 $ 672,153 As of December 31, 2014 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Plan assets Common trust funds $ — $ 4,238 $ — $ 4,238 Corporate stock 17,878 — — 17,878 Mutual funds 51,568 100,252 — 151,820 Fixed income investments 1,978 488,399 — 490,377 Real estate — — 26,057 26,057 Hedge funds and private equity — — 29,417 29,417 Total plan assets $ 71,424 $ 592,889 $ 55,474 $ 719,787 ABX’s pension investments include hedge funds, private equity and real estate funds whose fair values have been estimated in the absence of readily determinable fair values. Management’s estimates are based on information provided by the fund managers or general partners of those funds. The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant Level 3 unobservable inputs (in thousands): Hedge Funds & Private Equity Real Estate Investments Total January 1, 2014 $ 29,339 $ 19,561 $ 48,900 Unrealized gains 2,376 6,496 8,872 Purchases & settlements (2,298 ) — (2,298 ) December 31, 2014 $ 29,417 $ 26,057 $ 55,474 Unrealized gains 1,418 3,660 5,078 Purchases & settlements (2,186 ) — (2,186 ) December 31, 2015 $ 28,649 $ 29,717 $ 58,366 Defined Contribution Plans The Company sponsors defined contribution capital accumulation plans (401k) that are funded by both voluntary employee salary deferrals and by employer contributions. Expenses for defined contribution retirement plans were $5.7 million , $5.4 million and $5.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES At December 31, 2015, the Company had cumulative net operating loss carryforwards (“NOL CFs”) for federal income tax purposes of approximately $78.9 million , which begin to expire in 2025 if not utilized before then. The deferred tax asset balance includes $2.0 million net of a $0.2 million valuation allowance related to state NOL CFs, which have remaining lives ranging from one to twenty years. These NOL CFs are attributable to excess tax deductions related primarily to the accelerated tax depreciation of fixed assets. At December 31, 2015 and 2014, the Company determined that, based upon projections of taxable income, it was more likely than not that the NOL CF’s will be realized prior to their expiration, accordingly, no allowance against these deferred tax assets was recorded. The significant components of the deferred income tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands): December 31 2015 2014 Deferred tax assets: Net operating loss carryforward and federal credits $ 30,981 $ 35,902 Post-retirement employee benefits 36,589 31,067 Employee benefits other than post-retirement 13,773 16,489 Inventory reserve 2,924 2,930 Deferred revenue 8,650 9,154 Other 2,344 1,810 Deferred tax assets 95,261 97,352 Deferred tax liabilities: Accelerated depreciation (175,572 ) (164,858 ) Partnership items (9,489 ) (9,493 ) State taxes (6,830 ) (5,995 ) Valuation allowance against deferred tax assets (229 ) (229 ) Deferred tax liabilities (192,120 ) (180,575 ) Net deferred tax (liability) $ (96,859 ) $ (83,223 ) The following summarizes the Company’s income tax provisions (benefits) (in thousands): Years Ended December 31 2015 2014 2013 Current taxes: Federal $ 524 $ 338 $ 67 Foreign — — — State 371 345 425 Deferred taxes: Federal 21,073 17,411 17,902 Foreign — — — State 1,440 1,608 872 Total deferred tax expense 22,513 19,019 18,774 Total income tax expense from continuing operations $ 23,408 $ 19,702 $ 19,266 Income tax expense (benefit) from discontinued operations $ 1,178 $ (1,262 ) $ (2 ) The reconciliation of income tax from continuing operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows: Years Ended December 31 2015 2014 2013 Statutory federal tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 1.9 % 2.5 % (234.7 )% Tax effect of non-deductible goodwill — % — % (5,121.2 )% Tax effect of other non-deductible expenses 0.9 % 0.8 % (26.4 )% Other (0.4 )% (0.2 )% (19.3 )% Effective income tax rate 37.4 % 38.1 % (5,366.6 )% The reconciliation of income tax from discontinued operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows: Years Ended December 31 2015 2014 2013 Statutory federal tax rate 35.0 % (35.0 )% (35.0 )% State income taxes, net of federal tax benefit 1.3 % (1.3 )% (1.3 )% Effective income tax rate 36.3 % (36.3 )% (36.3 )% The Company files income tax returns in the U.S. federal jurisdiction and various international, state and local jurisdictions. The returns may be subject to audit by the Internal Revenue Service (“IRS”) and other jurisdictional authorities. International returns consist primarily of disclosure returns where the Company is covered by the sourcing rules of U.S. international treaties. The Company recognizes the impact of an uncertain income tax position in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. At December 31, 2015, 2014 and 2013, the Company's unrecognized tax benefits were $0.0 million , $0.0 million and $0.0 million respectively. Accrued interest and penalties on tax positions are recorded as a component of interest expense. Interest and penalties expense was immaterial for 2015, 2014 and 2013. The Company began to file, effective in 2008, federal tax returns under a common parent of the consolidated group that includes ABX and all the wholly-owned subsidiaries. The returns for 2014, 2013 and 2012 related to the current consolidated group remain open to examination. The consolidated federal tax returns prior to 2012 remain open to federal examination only to the extent of net operating loss carryforwards carried over from or utilized in those years. State and local returns filed for 2005 through 2014 are generally also open to examination by their respective jurisdictions, either in full or limited to net operating losses. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 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. As a result, the Company entered into an interest rate swaps described in the table below. Under the swap expiring in 2016, the Company pays a fixed rate of 2.02% and receives a floating rate that resets quarterly based on LIBOR. Under the swap expiring in 2017, the Company pays a fixed rate of 1.1825% and receives a floating rate that resets monthly based on LIBOR. 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 nets gains on derivatives of $0.9 million , $1.1 million and $0.6 million for the years ending December 31, 2015, 2014 and 2013, respectively. The liability for outstanding derivatives is recorded in other liabilities and in accrued expenses. The table below provides information about the Company’s interest rate swaps (in thousands): December 31, 2015 December 31, 2014 Expiration Date Stated Interest Rate Notional Amount Market Value (Liability) Notional Amount Market Value (Liability) May 9, 2016 2.020 % 50,625 (247 ) 58,125 (1,071 ) June 30, 2017 1.183 % 50,625 (252 ) 58,125 (348 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2015, 2014 and 2013 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of January 1, 2013 (121,602 ) 4,277 38 — (117,287 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 129,856 474 — — 130,330 Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 12,296 419 — — 12,715 Negative prior service cost (reclassified to salaries, wages and benefits) — (5,654 ) — — (5,654 ) Hedging gain (reclassified to interest expense) — — (50 ) — (50 ) Income Tax (Expense) or Benefit (51,622 ) 1,729 21 — (49,872 ) Other comprehensive income (loss), net of tax 90,530 (3,032 ) (29 ) — 87,469 Balance as of December 31, 2013 (31,072 ) 1,245 9 — (29,818 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (90,400 ) 220 — — (90,180 ) Foreign currency translation adjustment — — — (1,629 ) (1,629 ) Amounts reclassified from accumulated other comprehensive income: Pension settlement 11,660 — — — 11,660 Actuarial costs (reclassified to salaries, wages and benefits) (2 ) 321 — — 319 Negative prior service cost (reclassified to salaries, wages and benefits) — (3,487 ) — — (3,487 ) Hedging gain (reclassified to interest expense) — — (42 ) — (42 ) Income Tax (Expense) or Benefit 28,623 1,071 37 570 30,301 Other comprehensive income (loss), net of tax (50,119 ) (1,875 ) (5 ) (1,059 ) (53,058 ) Balance as of December 31, 2014 (81,191 ) (630 ) 4 (1,059 ) (82,876 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (32,640 ) 745 — — (31,895 ) Foreign currency translation adjustment — — — (517 ) (517 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 7,170 292 — — 7,462 Negative prior service cost (reclassified to salaries, wages and benefits) — (542 ) — — (542 ) Hedging gain (reclassified to interest expense) — — (50 ) — (50 ) Income Tax (Expense) or Benefit 9,359 (180 ) 46 181 9,406 Other comprehensive income (loss), net of tax (16,111 ) 315 (4 ) (336 ) (16,136 ) Balance as of December 31, 2015 (97,302 ) (315 ) — (1,395 ) (99,012 ) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 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 in May 2005. 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. Year Ended December 31 2015 2014 2013 Number of Awards Weighted average grant-date fair value 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 1,463,272 $ 5.97 Granted 390,200 9.61 467,567 7.52 627,488 5.73 Converted (498,491 ) 5.97 (404,179 ) 6.49 (526,848 ) 5.72 Expired (126,800 ) 5.52 (116,800 ) 5.70 (68,950 ) 8.25 Forfeited (13,800 ) 7.36 (17,800 ) 6.26 (17,200 ) 7.07 Outstanding at end of period 1,157,659 $ 7.52 1,406,550 $ 6.21 1,477,762 $ 5.83 Vested 511,109 $ 6.03 555,927 $ 5.73 506,644 $ 4.47 The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company was $9.22 , $7.44 and $5.46 for 2015, 2014 and 2013, respectively, 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 was $10.99 , $7.83 and $6.78 for 2015, 2014 and 2013, respectively. The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2015, 2014 and 2013 using daily stock prices and using the following variables: 2015 2014 2013 Risk-free interest rate 0.9% 0.8% 0.4% Volatility 41.5% 48.9% 61.0% For the years ended December 31, 2015, 2014 and 2013, the Company recorded expense of $2.5 million , $2.9 million and $2.7 million , respectively, for stock incentive awards. At December 31, 2015, there was $2.5 million of unrecognized expense related to the stock incentive awards that is expected to be recognized over a weighted-average period of 1.5 years. As of December 31, 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 1,397,659 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 | 12 Months Ended |
Dec. 31, 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): December 31 2015 2014 2013 Earnings (loss) from continuing operations $ 39,155 $ 32,074 $ (19,625 ) Weighted-average shares outstanding for basic earnings per share 64,242 64,253 63,992 Common equivalent shares: Effect of stock-based compensation awards 885 958 — Weighted-average shares outstanding assuming dilution 65,127 65,211 63,992 Basic earnings (loss) per share from continuing operations $ 0.61 $ 0.50 $ (0.31 ) Diluted earnings (loss) per share from continuing operations $ 0.60 $ 0.49 $ (0.31 ) Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 348,600 shares, 435,600 shares and 481,900 shares of restricted stock for 2015, 2014 and 2013, respectively, which are accounted for as part of diluted weighted average shares outstanding in diluted earnings per share. 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 11,000 , none and none at December 31, 2015 , 2014 and 2013, respectively. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 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 while managed separately, are not large enough to 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): Year Ended December 31 2015 2014 2013 Total revenues: CAM $ 177,789 $ 166,303 $ 160,342 ACMI Services 433,109 439,919 444,504 All other 161,995 142,294 117,292 Eliminate inter-segment revenues (153,629 ) (158,924 ) (142,115 ) Total $ 619,264 $ 589,592 $ 580,023 Customer revenues: CAM $ 93,395 $ 77,668 $ 71,604 ACMI Services 431,989 439,919 444,504 All other 93,880 72,005 63,915 Total $ 619,264 $ 589,592 $ 580,023 Depreciation and amortization expense: CAM $ 87,765 $ 78,866 $ 64,096 ACMI Services 37,526 29,929 27,546 All other 152 (541 ) 107 Total $ 125,443 $ 108,254 $ 91,749 Other Charges ACMI Services - pension settlement — 6,700 — ACMI Services - goodwill impairment — — 52,585 Total $ — $ 6,700 $ 52,585 Segment earnings (loss): CAM $ 57,457 $ 53,159 $ 66,208 ACMI Services (2,654 ) (12,081 ) (78,186 ) All other 8,561 11,363 12,200 Net unallocated interest expense (1,721 ) (1,761 ) (1,212 ) Net gain on derivative instruments 920 1,096 631 Pre-tax earnings from continuing operations $ 62,563 $ 51,776 $ (359 ) The Company's assets are presented below by segment (in thousands): December 31, December 31, December 31, 2015 2014 2013 Assets: CAM $ 805,318 $ 799,164 $ 806,943 ACMI Services 154,852 133,861 140,354 Discontinued operations — — 294 All other 82,093 78,834 71,591 Total $ 1,042,263 $ 1,011,859 $ 1,019,182 Interest expense allocated to CAM was $9.4 million , $11.8 million and $12.4 million for the years ending December 31, 2015 , 2014 and 2013, respectively. During 2015, the Company had capital expenditures of $40.0 million and $114.8 million for the ACMI Services and CAM segments, respectively. The ACMI Services segment reflects a goodwill impairment charge of $52.6 million recorded in 2013. Entity-Wide Disclosures The Company had revenues of approximately $206.5 million , $205.0 million and $235.1 million for 2015, 2014 and 2013, respectively, derived from aircraft leases in foreign countries or routes with flights departing from or arriving in foreign countries. All revenues from the CMI agreement with DHL are attributed to U.S. operations. As of December 31, 2015 and 2014, the Company had 17 and 11 aircraft, respectively, outside of the United States. CAM's revenues include $12.6 million , $11.5 million and $9.9 million for 2015, 2014 and 2013, respectively, for engine and other maintenance related payments from customers. The Company's external customers revenues from other activities for the years ended December 31, 2015, 2014 and 2013 are presented below (in thousands): December 31, 2015 2014 2013 Mail and package handling services $ 47,307 $ 34,025 $ 30,117 Aircraft maintenance and part sales 33,687 26,393 23,175 Facility and ground equipment maintenance 11,490 11,119 10,030 Other 1,396 468 593 Total customer revenues $ 93,880 $ 72,005 $ 63,915 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS The Company's results of discontinued operations consist primarily of pension benefits, adjustments to workers compensation liabilities and other benefits for former employees previously associated with ABX's former freight sorting and aircraft fueling services provided to DHL through 2009. ABX sponsors defined benefit plans for retirees that include the former employees of the hub operations. Additionally, ABX is self-insured for medical coverage and workers' compensation. The Company may incur expenses and cash outlays in the future related to pension obligations, reserves for medical expenses and wage loss for former employees. Carrying amounts of significant assets and liabilities of the discontinued operations are below (in thousands): December 31 2015 2014 Liabilities Employee compensation and benefits $ 23,400 $ 25,997 Post-retirement 10,929 10,086 Total Liabilities $ 34,329 $ 36,083 The revenues and pre-tax earnings of the discontinued operations are below (in thousands): December 31 2015 2014 2013 Pre-tax earnings (loss) $ 3,245 $ (3,477 ) $ (5 ) |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Results | QUARTERLY RESULTS (Unaudited) The following is a summary of quarterly results of operations (in thousands, except per share amounts): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2015 Revenues from continuing operations $ 147,025 $ 148,353 $ 142,305 $ 181,581 Operating income from continuing operations 17,529 19,794 12,917 22,550 Net earnings from continuing operations 8,895 10,570 6,347 13,343 Net earnings (loss) from discontinued operations 214 214 214 1,425 Weighted average shares: Basic 64,454 64,541 64,239 63,742 Diluted 65,337 65,471 65,171 64,536 Earnings per share from continuing operations Basic $ 0.14 $ 0.16 $ 0.10 $ 0.21 Diluted $ 0.14 $ 0.16 $ 0.10 $ 0.21 2014 (1) Revenues from continuing operations $ 143,593 $ 149,618 $ 138,443 $ 157,938 Operating income from continuing operations 13,836 18,117 18,287 14,285 Net earnings (loss) from continuing operations 6,522 9,298 9,595 6,659 Net loss from discontinued operations 211 211 312 (2,948 ) Weighted average shares: Basic 64,148 64,285 64,286 64,289 Diluted 65,141 65,207 65,271 65,222 Earnings (loss) per share from continuing operations Basic $ 0.10 $ 0.14 $ 0.15 $ 0.10 Diluted $ 0.10 $ 0.14 $ 0.15 $ 0.10 1. In the fourth quarter of 2014, the Company recorded pre-tax pension settlement charges of $6.7 million to continued operations and $5.0 million to discontinued operations (see Note H). |
Summary of Financial Statemen24
Summary of Financial Statement Preparation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Post-Retirement Benefits The funded status of the Company's defined benefits pension or post-retirement health care plan is the difference between the fair value of plan assets and the accumulated benefit obligations to plan participants. The over funded or underfunded status of a plan is reflected in the consolidated balance sheet as an asset for over funded plans, or as a liability for underfunded plans. The funded status is ordinarily remeasured annually at year end using the fair value of plans assets, market based discount rates and actuarial assumptions. Changes in the funded status of the plans as a result of remeasuring plan assets and benefit obligations, are recorded to accumulated comprehensive loss and amortized into operating expense using a corridor approach. The Company's corridor approach amortizes variances in plan assets and benefit obligations that are a result of the previous measurement assumptions into earnings when the net deferred variances exceed 10% of the greater of the market value of plan assets or the benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining service period to retirement date of active plan participants. Costs adjustments for plan amendments are also deferred and amortized over the expected working life or the life expectancy of plan participants. |
Security and Maintenance Deposits [Table Text Block] | Security and Maintenance Deposits The Company's customer leases typically obligate the lessee to maintain the Company's aircraft in compliance with regulatory standards for flight and aircraft maintenance. The Company may require an aircraft lessee to pay a security deposit or provide a letter of credit until the expiration of the lease. Additionally, the Company's leases may require a lessee to make monthly payments toward future expenditures for scheduled heavy maintenance events. The Company records security and maintenance deposits in other liabilities. If a lease requires monthly maintenance payments, the Company is typically required to reimburse the lessee for costs they incur for scheduled heavy maintenance events after completion of the work and receipt of qualifying documentation. Reimbursements to the lessee are recorded against the previously paid maintenance deposits. |
Basis of Presentation | Basis of Presentation The accompanying 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 a 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. The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Estimates and assumptions are used to record allowances for uncollectible amounts, self-insurance reserves, spare parts inventory, depreciation and impairments of property, equipment, goodwill and intangibles, post-retirement obligations, income taxes, contingencies and litigation. Changes in estimates and assumptions may have a material impact on the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company classifies short-term, highly liquid investments with maturities of three months or less at the time of purchase as cash and cash equivalents. These investments, consisting of money market funds, are recorded at cost, which approximates fair value. Substantially all deposits of the Company’s cash are held in accounts that exceed federally insured limits. The Company deposits cash in common financial institutions which management believes are financially sound. |
Accounts Receivable and Allowance for Uncollectible Accounts | Accounts Receivable and Allowance for Uncollectible Accounts The Company's accounts receivable is primarily due from its significant customers (see Note B), other airlines, the USPS, delivery companies and freight forwarders. The Company performs a quarterly evaluation of the accounts receivable and the allowance for uncollectible accounts by reviewing specific customers' recent payment history, growth prospects, financial condition and other factors that may impact a customer's ability to pay. The Company establishes an allowance for uncollectible accounts for probable losses due to a customer's potential inability or unwillingness to make contractual payments. Account balances are written off against the allowance when the Company ceases collection efforts. |
Inventory | Inventory The Company’s inventory is comprised primarily of expendable aircraft parts and supplies used for aircraft maintenance. Inventory is generally charged to expense when issued for use on a Company aircraft. The Company values its inventory of aircraft parts and supplies at weighted-average cost and maintains a related obsolescence reserve. The Company records an obsolescence reserve on a base stock of inventory for each fleet type. The amortization of base stock for the obsolescence reserve corresponds to the expected life of each fleet type. Additionally, the Company monitors the usage rates of inventory parts and segregates parts that are technologically outdated or no longer used in its fleet types. Slow moving and segregated items are actively marketed and written down to their estimated net realizable values based on market conditions. Management analyzes the inventory reserve for reasonableness at the end of each quarter. That analysis includes consideration of the expected fleet life, amounts expected to be on hand at the end of a fleet life, and recent events and conditions that may impact the usability or value of inventory. Events or conditions that may impact the expected life, usability or net realizable value of inventory include additional aircraft maintenance directives from the FAA, changes in DOT regulations, new environmental laws and technological advances. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company assesses, during the fourth quarter of each year, the carrying value of goodwill. The first step of the assessment is the estimation of fair value of each reporting unit, which is compared to the carrying value. If step one indicates that impairment potentially exists, a second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the implied fair value of goodwill is less than its carrying value. The Company also conducts impairment assessments of goodwill, indefinite-lived intangible assets and finite-lived intangible assets whenever events or changes in circumstance indicate an impairment may have occurred. Finite-lived intangible assets are amortized over their estimated useful economic lives. |
Property and Equipment | Property and Equipment Property and equipment held for use is stated at cost, net of any impairment recorded. The cost and accumulated depreciation of disposed property and equipment are removed from the accounts with any related gain or loss reflected in earnings from operations. Depreciation of property and equipment is provided on a straight-line basis over the lesser of the asset’s useful life or lease term. Depreciable lives are summarized as follows: Boeing 767 and 757 aircraft and flight equipment 10 to 18 years Ground equipment 3 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years The Company periodically evaluates the useful lives, salvage values and fair values of property and equipment. Acceleration of depreciation expense or the recording of significant impairment losses could result from changes in the estimated useful lives of assets due to a number of reasons, such as excess aircraft capacity or changes in regulations governing the use of aircraft. Aircraft and other long-lived assets are tested for impairment when circumstances indicate the carrying value of the assets may not be recoverable. To conduct impairment testing, the Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset group is less than the carrying value. If impairment exists, an adjustment is made to write the assets down to fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined considering quoted market values, discounted cash flows or internal and external appraisals, as applicable. For assets held for sale, impairment is recognized when the fair value less the cost to sell the asset is less than the carrying value. The Company’s accounting policy for major airframe and engine maintenance varies by subsidiary and aircraft type. The costs for ABX's Boeing 767-200 airframe maintenance, which is the majority of the Company's aircraft fleet, are expensed as they are incurred. The costs of major airframe maintenance for the Company's other aircraft are capitalized and amortized over the useful life of the overhaul. Most of the Company's General Electric CF6 engines that power the Boeing 767-200 aircraft are maintained under “power by the hour” agreements with an engine maintenance provider. Under the power by the hour agreements, the engines are maintained by the service provider for a fixed fee per flight hour; accordingly, the cost of engine maintenance is generally expensed as flight hours occur. Maintenance for the airlines’ other aircraft engines, including those on the Boeing 767-300 and Boeing 757 aircraft, are typically contracted to service providers on a time and material basis and the costs of those engine overhauls are capitalized and amortized over the useful life of the overhaul. In the event the Company leases aircraft from external lessors, the Company may be required to make periodic payments to the lessor under certain aircraft leases for future maintenance events such as engine overhauls and major airframe maintenance. Such payments are recorded as deposits until drawn for qualifying maintenance costs. The maintenance costs are expensed or capitalized in accordance with the airline's accounting policy for major airframe and engine maintenance. The Company evaluates at the balance sheet date, whether it is probable that an amount on deposit will be returned by the lessor to reimburse the costs of the maintenance activities. When an amount on deposit is less than probable of being returned, it is recognized as additional maintenance expense. |
Capitalized Interest | Capitalized Interest Interest costs incurred while aircraft are being modified are capitalized as an additional cost of the aircraft until the date the asset is placed in service. |
Discontinued Operations | Discontinued Operations A business component whose operations are discontinued is reported as discontinued operations if the cash flows of the component have been eliminated from the ongoing operations of the Company and represents a strategic shift that had a major impact on the Company. The results of discontinued operations are aggregated and presented separately in the consolidated statements of operations. |
Self-Insurance | Self-Insurance The Company is self-insured for certain workers’ compensation, employee healthcare, automobile, aircraft, and general liability claims. The Company maintains excess claim coverage with common insurance carriers to mitigate its exposure to large claim losses. The Company records a liability for reported claims and an estimate for incurred claims that have not yet been reported. Accruals for these claims are estimated utilizing historical paid claims data and recent claims trends. Other liabilities included $23.3 million and $25.8 million at December 31, 2015 and December 31, 2014 , respectively, for self-insured reserves. Changes in claim severity and frequency could result in actual claims being materially different than the costs accrued. |
Income Taxes | Income Taxes Income taxes have been computed using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against net deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. The Company recognizes the benefit of a tax position taken on a tax return, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. An uncertain income tax position is not recognized if it has a less than a 50% likelihood of being sustained. The Company recognizes interest and penalties accrued related to uncertain tax positions in operating expense. In November 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes (ASU 2015-17), which simplifies the presentation of deferred income taxes by classifying all deferred tax assets and liabilities as noncurrent in a classified statement of financial position. It is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted in any interim or annual period. The Company elected to early adopt ASU 2015-17 as of December 31, 2015, as permitted by the FASB, and has retrospectively applied the standard to all periods presented in the consolidated balance sheets. The adoption of ASU 2015-17 resulted in a $19.8 million and $14.0 million reclassification of the Company's deferred tax assets from a current asset to a noncurrent liability in the consolidated balance sheet as of December 31, 2014 and 2013 respectively. Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net earnings and other comprehensive income or loss. Other comprehensive income or loss results from certain changes in the Company’s liabilities for pension and other post retirement benefits, gains and losses associated with interest rate hedging instruments and fluctuations in currency exchange rates related to the foreign affiliate. |
Fair Value Information | Fair Value Information Assets or liabilities that are required to be measured at fair value are reported using the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820-10 Fair Value Measurements and Disclosures establishes three levels of input that may be used to measure fair value: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. |
Revenue Recognition | Revenue Recognition Aircraft lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Revenues generated from airline service agreements are typically recognized based on hours flown or the amount of aircraft and crew resources provided during a reporting period. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are typically measured on a monthly basis and recorded to revenue in the corresponding month earned. Revenues for operating expenses that are reimbursed through airline service agreements, including consumption of aircraft fuel, are generally recognized as the costs are incurred. Revenues from charter service agreements are recognized on scheduled and non-scheduled flights when the specific flight has been completed. Revenues from the sale of aircraft parts and engines are recognized when the parts are delivered. Revenues earned and expenses incurred in providing aircraft-related maintenance, repair or technical services are recognized in the period in which the services are completed and delivered to the customer. Revenues derived from sorting parcels are recognized in the reporting period in which the services are performed. Revenue is not recognized until collectibility is reasonably assured. |
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. In July 2015, FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share, which removes the requirement for companies to disclose the fair value hierarchy for assets calculated at net asset value per share in common commingled trusts, for example. This standard is effective January 1, 2016 for the Company. This amendment must be applied retrospectively to all periods presented. In July 2015, FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 more closely aligns the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards ("IFRS"). The amendment in ASU 2015-11 is for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect the impact of adopting ASU 2015-11 to be material to the Company's financial statements and related disclosures. In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which will require the recognition of right to-use-assets and lease liabilities for leases previously classified as operating leases by lessees. The standard will take effect for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early application will be permitted for all entities upon issuance of the final standard. In addition, the FASB has decided to require a lessee to apply a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements (the date of initial application). The modified retrospective approach would not require any transition accounting for leases that expired before the date of initial application. The FASB decided to not permit a full retrospective transition approach. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. |
Summary of Financial Statemen25
Summary of Financial Statement Preparation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Depreciable lives are summarized as follows: Boeing 767 and 757 aircraft and flight equipment 10 to 18 years Ground equipment 3 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years Property and equipment, to be held and used, is summarized as follows (in thousands): December 31, December 31, Flight equipment $ 1,372,099 $ 1,285,966 Ground equipment 36,593 33,677 Leasehold improvements, facilities and office equipment 25,327 25,180 Aircraft modifications and projects in progress 52,717 18,612 1,486,736 1,363,435 Accumulated depreciation (611,335 ) (516,167 ) Property and equipment, net $ 875,401 $ 847,268 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The carrying amounts of goodwill are as follows (in thousands): CAM Carrying value as of December 31, 2013 $ 34,395 Impairment — Carrying value as of December 31, 2014 $ 34,395 Impairment — Carrying value as of December 31, 2015 $ 34,395 |
Schedule Intangible Assets by Major Class | 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, 2013 $ 1,896 $ 3,000 $ 4,896 Amortization (281 ) — (281 ) Carrying value as of December 31, 2014 $ 1,615 $ 3,000 $ 4,615 Amortization (281 ) — (281 ) Carrying value as of December 31, 2015 $ 1,334 $ 3,000 $ 4,334 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2015 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 8,711 $ — $ 8,711 Total Assets $ — $ 8,711 $ — $ 8,711 Liabilities Interest rate swap $ — $ (499 ) $ — $ (499 ) Total Liabilities $ — $ (499 ) $ — $ (499 ) 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 swap $ — $ (1,419 ) $ — $ (1,419 ) Total Liabilities $ — $ (1,419 ) $ — $ (1,419 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Depreciable lives are summarized as follows: Boeing 767 and 757 aircraft and flight equipment 10 to 18 years Ground equipment 3 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years Property and equipment, to be held and used, is summarized as follows (in thousands): December 31, December 31, Flight equipment $ 1,372,099 $ 1,285,966 Ground equipment 36,593 33,677 Leasehold improvements, facilities and office equipment 25,327 25,180 Aircraft modifications and projects in progress 52,717 18,612 1,486,736 1,363,435 Accumulated depreciation (611,335 ) (516,167 ) Property and equipment, net $ 875,401 $ 847,268 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long term obligations consisted of the following (in thousands): December 31, December 31, 2015 2014 Unsubordinated term loan $ 101,250 $ 116,250 Revolving credit facility 180,000 180,000 Aircraft loans 36,950 46,294 Promissory note due to DHL, unsecured — 1,550 Total long term obligations 318,200 344,094 Less: current portion (33,865 ) (24,344 ) Total long term obligations, net $ 284,335 $ 319,750 |
Schedule of Maturities of Long-term Debt | The scheduled annual principal payments on long term debt, as of December 31, 2015, for the next five years are as follows (in thousands): Principal Payments 2016 $ 33,865 2017 29,445 2018 18,640 2019 15,000 2020 221,250 2021 and beyond — $ 318,200 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments of the Company as of December 31, 2015 are scheduled below (in thousands): Facility Leases Other Leases 2016 $ 7,612 $ 394 2017 6,115 148 2018 5,350 99 2019 2,639 34 2020 947 — 2021 and beyond 12,948 — Total minimum lease payments $ 35,611 $ 675 |
Schedules of Concentration of Risk, by Risk Factor | As of December 31, 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 9.6% ATI Air Line Pilots Association 5.6% |
Pension and Other Post-Retire31
Pension and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Funded Status | Funded Status (in thousands): Pension Plans Post-retirement Healthcare Plans 2015 2014 2015 2014 Accumulated benefit obligation $ 777,320 $ 807,992 $ 4,999 $ 6,163 Change in benefit obligation Obligation as of January 1 $ 807,992 $ 761,774 $ 6,163 $ 7,482 Service cost — — 177 239 Interest cost 34,584 39,517 192 286 Plan transfers 2,558 2,659 — — Benefits paid (32,696 ) (29,961 ) (788 ) (1,623 ) Settlement payments — (98,738 ) — — Actuarial (gain) loss (35,118 ) 132,741 (745 ) (221 ) Obligation as of December 31 $ 777,320 $ 807,992 $ 4,999 $ 6,163 Change in plan assets Fair value as of January 1 $ 719,787 $ 751,246 $ — $ — Actual gain on plan assets (23,677 ) 88,453 — — Plan transfers 2,558 2,659 — — Employer contributions 6,181 6,128 788 1,623 Benefits paid (32,696 ) (29,961 ) (788 ) (1,623 ) Settlement payments $ — $ (98,738 ) $ — $ — Fair value as of December 31 $ 672,153 $ 719,787 $ — $ — Funded status Underfunded plans Current liabilities $ (1,346 ) $ (1,506 ) $ (626 ) $ (812 ) Non-current liabilities $ (103,821 ) $ (86,699 ) $ (4,373 ) $ (5,351 ) |
Schedule of Net Benefit Costs | ABX’s net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for the years ended December 31, 2015, 2014 and 2013, are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plan 2015 2014 2013 2015 2014 2013 Service cost $ — $ — $ — $ 177 $ 239 275 Interest cost 34,584 39,517 35,957 192 286 264 Expected return on plan assets (44,082 ) (46,111 ) (45,990 ) — — — Settlements — 11,660 — — — — Amortization of prior service cost — — — (542 ) (3,487 ) (5,654 ) Amortization of net (gain) loss 7,170 (2 ) 12,296 292 321 419 Net periodic benefit cost $ (2,328 ) $ 5,064 $ 2,263 $ 119 $ (2,641 ) $ (4,696 ) |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense at December 31 are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plans 2015 2014 2015 2014 Unrecognized prior service cost $ — $ — $ (153 ) $ (696 ) Unrecognized net actuarial loss 144,402 118,932 449 1,486 Accumulated other comprehensive (income) loss $ 144,402 $ 118,932 $ 296 $ 790 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table sets forth the amounts of unrecognized net actuarial loss and (gain) recorded in accumulated other comprehensive loss that is expected to be recognized as components of net periodic benefit expense during 2016 (in thousands): Pension Plans Post- Retirement Healthcare Plans Amortization of actuarial loss $ 13,472 $ 160 Prior Service Cost — (102 ) |
Schedule of Assumptions Used | Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows: Pension Plans 2015 2014 2013 Discount rate - crewmembers 4.70% 4.35% 5.25% Discount rate - non-crewmembers 4.75% 4.40% 5.35% Expected return on plan assets 6.25% 6.25% 6.25% |
Schedule of Allocation of Plan Assets | The pension plan assets measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2015 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Plan assets Common trust funds $ — $ 4,354 $ — $ 4,354 Corporate stock 14,832 — — 14,832 Mutual funds 46,991 99,056 — 146,047 Fixed income investments 4,954 443,600 — 448,554 Real estate — — 29,717 29,717 Hedge funds and private equity — — 28,649 28,649 Total plan assets $ 66,777 $ 547,010 $ 58,366 $ 672,153 As of December 31, 2014 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Plan assets Common trust funds $ — $ 4,238 $ — $ 4,238 Corporate stock 17,878 — — 17,878 Mutual funds 51,568 100,252 — 151,820 Fixed income investments 1,978 488,399 — 490,377 Real estate — — 26,057 26,057 Hedge funds and private equity — — 29,417 29,417 Total plan assets $ 71,424 $ 592,889 $ 55,474 $ 719,787 The weighted-average asset allocations by asset category are as shown below: Composition of Plan Assets as of December 31 Asset category 2015 2014 Cash 1 % — % Equity securities 28 % 28 % Fixed income securities 67 % 68 % Real estate 4 % 4 % 100 % 100 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the respective plans as follows (in thousands): Pension Benefits Post-retirement Healthcare Benefits 2016 $ 34,766 $ 626 2017 40,373 629 2018 40,064 592 2019 42,234 584 2020 44,237 573 Years 2021 to 2025 245,721 2,477 |
Schedule of Level Three Defined Benefit Plan Assets Roll Forward | The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant Level 3 unobservable inputs (in thousands): Hedge Funds & Private Equity Real Estate Investments Total January 1, 2014 $ 29,339 $ 19,561 $ 48,900 Unrealized gains 2,376 6,496 8,872 Purchases & settlements (2,298 ) — (2,298 ) December 31, 2014 $ 29,417 $ 26,057 $ 55,474 Unrealized gains 1,418 3,660 5,078 Purchases & settlements (2,186 ) — (2,186 ) December 31, 2015 $ 28,649 $ 29,717 $ 58,366 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the deferred income tax assets and liabilities as of December 31, 2015 and 2014 are as follows (in thousands): December 31 2015 2014 Deferred tax assets: Net operating loss carryforward and federal credits $ 30,981 $ 35,902 Post-retirement employee benefits 36,589 31,067 Employee benefits other than post-retirement 13,773 16,489 Inventory reserve 2,924 2,930 Deferred revenue 8,650 9,154 Other 2,344 1,810 Deferred tax assets 95,261 97,352 Deferred tax liabilities: Accelerated depreciation (175,572 ) (164,858 ) Partnership items (9,489 ) (9,493 ) State taxes (6,830 ) (5,995 ) Valuation allowance against deferred tax assets (229 ) (229 ) Deferred tax liabilities (192,120 ) (180,575 ) Net deferred tax (liability) $ (96,859 ) $ (83,223 ) |
Schedule of Components of Income Tax Expense (Benefit) | The following summarizes the Company’s income tax provisions (benefits) (in thousands): Years Ended December 31 2015 2014 2013 Current taxes: Federal $ 524 $ 338 $ 67 Foreign — — — State 371 345 425 Deferred taxes: Federal 21,073 17,411 17,902 Foreign — — — State 1,440 1,608 872 Total deferred tax expense 22,513 19,019 18,774 Total income tax expense from continuing operations $ 23,408 $ 19,702 $ 19,266 Income tax expense (benefit) from discontinued operations $ 1,178 $ (1,262 ) $ (2 ) |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income tax from continuing operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows: Years Ended December 31 2015 2014 2013 Statutory federal tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal tax benefit 1.9 % 2.5 % (234.7 )% Tax effect of non-deductible goodwill — % — % (5,121.2 )% Tax effect of other non-deductible expenses 0.9 % 0.8 % (26.4 )% Other (0.4 )% (0.2 )% (19.3 )% Effective income tax rate 37.4 % 38.1 % (5,366.6 )% |
Schedule of Effective Income Tax Rate Reconciliation, Discontinued Operations | The reconciliation of income tax from discontinued operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows: Years Ended December 31 2015 2014 2013 Statutory federal tax rate 35.0 % (35.0 )% (35.0 )% State income taxes, net of federal tax benefit 1.3 % (1.3 )% (1.3 )% Effective income tax rate 36.3 % (36.3 )% (36.3 )% |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The table below provides information about the Company’s interest rate swaps (in thousands): December 31, 2015 December 31, 2014 Expiration Date Stated Interest Rate Notional Amount Market Value (Liability) Notional Amount Market Value (Liability) May 9, 2016 2.020 % 50,625 (247 ) 58,125 (1,071 ) June 30, 2017 1.183 % 50,625 (252 ) 58,125 (348 ) |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 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 years ended December 31, 2015, 2014 and 2013 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Gains and Losses on Derivative Foreign Currency Translation Total Balance as of January 1, 2013 (121,602 ) 4,277 38 — (117,287 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 129,856 474 — — 130,330 Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 12,296 419 — — 12,715 Negative prior service cost (reclassified to salaries, wages and benefits) — (5,654 ) — — (5,654 ) Hedging gain (reclassified to interest expense) — — (50 ) — (50 ) Income Tax (Expense) or Benefit (51,622 ) 1,729 21 — (49,872 ) Other comprehensive income (loss), net of tax 90,530 (3,032 ) (29 ) — 87,469 Balance as of December 31, 2013 (31,072 ) 1,245 9 — (29,818 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (90,400 ) 220 — — (90,180 ) Foreign currency translation adjustment — — — (1,629 ) (1,629 ) Amounts reclassified from accumulated other comprehensive income: Pension settlement 11,660 — — — 11,660 Actuarial costs (reclassified to salaries, wages and benefits) (2 ) 321 — — 319 Negative prior service cost (reclassified to salaries, wages and benefits) — (3,487 ) — — (3,487 ) Hedging gain (reclassified to interest expense) — — (42 ) — (42 ) Income Tax (Expense) or Benefit 28,623 1,071 37 570 30,301 Other comprehensive income (loss), net of tax (50,119 ) (1,875 ) (5 ) (1,059 ) (53,058 ) Balance as of December 31, 2014 (81,191 ) (630 ) 4 (1,059 ) (82,876 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (32,640 ) 745 — — (31,895 ) Foreign currency translation adjustment — — — (517 ) (517 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 7,170 292 — — 7,462 Negative prior service cost (reclassified to salaries, wages and benefits) — (542 ) — — (542 ) Hedging gain (reclassified to interest expense) — — (50 ) — (50 ) Income Tax (Expense) or Benefit 9,359 (180 ) 46 181 9,406 Other comprehensive income (loss), net of tax (16,111 ) 315 (4 ) (336 ) (16,136 ) Balance as of December 31, 2015 (97,302 ) (315 ) — (1,395 ) (99,012 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 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. Year Ended December 31 2015 2014 2013 Number of Awards Weighted average grant-date fair value 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 1,463,272 $ 5.97 Granted 390,200 9.61 467,567 7.52 627,488 5.73 Converted (498,491 ) 5.97 (404,179 ) 6.49 (526,848 ) 5.72 Expired (126,800 ) 5.52 (116,800 ) 5.70 (68,950 ) 8.25 Forfeited (13,800 ) 7.36 (17,800 ) 6.26 (17,200 ) 7.07 Outstanding at end of period 1,157,659 $ 7.52 1,406,550 $ 6.21 1,477,762 $ 5.83 Vested 511,109 $ 6.03 555,927 $ 5.73 506,644 $ 4.47 |
Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions | The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2015, 2014 and 2013 using daily stock prices and using the following variables: 2015 2014 2013 Risk-free interest rate 0.9% 0.8% 0.4% Volatility 41.5% 48.9% 61.0% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 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): December 31 2015 2014 2013 Earnings (loss) from continuing operations $ 39,155 $ 32,074 $ (19,625 ) Weighted-average shares outstanding for basic earnings per share 64,242 64,253 63,992 Common equivalent shares: Effect of stock-based compensation awards 885 958 — Weighted-average shares outstanding assuming dilution 65,127 65,211 63,992 Basic earnings (loss) per share from continuing operations $ 0.61 $ 0.50 $ (0.31 ) Diluted earnings (loss) per share from continuing operations $ 0.60 $ 0.49 $ (0.31 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The Company's segment information from continuing operations is presented below (in thousands): Year Ended December 31 2015 2014 2013 Total revenues: CAM $ 177,789 $ 166,303 $ 160,342 ACMI Services 433,109 439,919 444,504 All other 161,995 142,294 117,292 Eliminate inter-segment revenues (153,629 ) (158,924 ) (142,115 ) Total $ 619,264 $ 589,592 $ 580,023 Customer revenues: CAM $ 93,395 $ 77,668 $ 71,604 ACMI Services 431,989 439,919 444,504 All other 93,880 72,005 63,915 Total $ 619,264 $ 589,592 $ 580,023 Depreciation and amortization expense: CAM $ 87,765 $ 78,866 $ 64,096 ACMI Services 37,526 29,929 27,546 All other 152 (541 ) 107 Total $ 125,443 $ 108,254 $ 91,749 Other Charges ACMI Services - pension settlement — 6,700 — ACMI Services - goodwill impairment — — 52,585 Total $ — $ 6,700 $ 52,585 Segment earnings (loss): CAM $ 57,457 $ 53,159 $ 66,208 ACMI Services (2,654 ) (12,081 ) (78,186 ) All other 8,561 11,363 12,200 Net unallocated interest expense (1,721 ) (1,761 ) (1,212 ) Net gain on derivative instruments 920 1,096 631 Pre-tax earnings from continuing operations $ 62,563 $ 51,776 $ (359 ) |
Reconciliation of Assets from Segment to Consolidated | The Company's assets are presented below by segment (in thousands): December 31, December 31, December 31, 2015 2014 2013 Assets: CAM $ 805,318 $ 799,164 $ 806,943 ACMI Services 154,852 133,861 140,354 Discontinued operations — — 294 All other 82,093 78,834 71,591 Total $ 1,042,263 $ 1,011,859 $ 1,019,182 |
Revenue from External Customers by Products and Services | The Company's external customers revenues from other activities for the years ended December 31, 2015, 2014 and 2013 are presented below (in thousands): December 31, 2015 2014 2013 Mail and package handling services $ 47,307 $ 34,025 $ 30,117 Aircraft maintenance and part sales 33,687 26,393 23,175 Facility and ground equipment maintenance 11,490 11,119 10,030 Other 1,396 468 593 Total customer revenues $ 93,880 $ 72,005 $ 63,915 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | Carrying amounts of significant assets and liabilities of the discontinued operations are below (in thousands): December 31 2015 2014 Liabilities Employee compensation and benefits $ 23,400 $ 25,997 Post-retirement 10,929 10,086 Total Liabilities $ 34,329 $ 36,083 The revenues and pre-tax earnings of the discontinued operations are below (in thousands): December 31 2015 2014 2013 Pre-tax earnings (loss) $ 3,245 $ (3,477 ) $ (5 ) |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of quarterly results of operations (in thousands, except per share amounts): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2015 Revenues from continuing operations $ 147,025 $ 148,353 $ 142,305 $ 181,581 Operating income from continuing operations 17,529 19,794 12,917 22,550 Net earnings from continuing operations 8,895 10,570 6,347 13,343 Net earnings (loss) from discontinued operations 214 214 214 1,425 Weighted average shares: Basic 64,454 64,541 64,239 63,742 Diluted 65,337 65,471 65,171 64,536 Earnings per share from continuing operations Basic $ 0.14 $ 0.16 $ 0.10 $ 0.21 Diluted $ 0.14 $ 0.16 $ 0.10 $ 0.21 2014 (1) Revenues from continuing operations $ 143,593 $ 149,618 $ 138,443 $ 157,938 Operating income from continuing operations 13,836 18,117 18,287 14,285 Net earnings (loss) from continuing operations 6,522 9,298 9,595 6,659 Net loss from discontinued operations 211 211 312 (2,948 ) Weighted average shares: Basic 64,148 64,285 64,286 64,289 Diluted 65,141 65,207 65,271 65,222 Earnings (loss) per share from continuing operations Basic $ 0.10 $ 0.14 $ 0.15 $ 0.10 Diluted $ 0.10 $ 0.14 $ 0.15 $ 0.10 |
Summary of Financial Statemen40
Summary of Financial Statement Preparation and Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
current deferred tax asset reclassified | $ 19.8 | $ 14 | |
Capitalized interest | $ 0.2 | 0.1 | $ 1.1 |
Other liabilities for self-insured reserves | $ 23.3 | $ 25.8 | |
Minimum [Member] | Ground equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum [Member] | facilities, leasehold improvements and office equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum [Member] | Ground equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum [Member] | facilities, leasehold improvements and office equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 25 years | ||
Boeing 767 and 757 aircraft and flight equipment [Member] | Minimum [Member] | Flight Equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Boeing 767 and 757 aircraft and flight equipment [Member] | Maximum [Member] | Flight Equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 18 years |
Significant Customers (Details)
Significant Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Accounts receivable | $ 57,986 | $ 43,513 | |
DHL [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated revenues | 46.00% | 55.00% | 54.00% |
DHL [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 9,800 | $ 12,200 | |
US Military [Member] | Revenues from Services Performed [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated revenues | 16.00% | 16.00% | 17.00% |
US Military [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 9,700 | $ 6,000 |
Goodwill and Other Intangible42
Goodwill and Other Intangibles (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Goodwill [Roll Forward] | |||
Impairment | $ 0 | $ 0 | $ (52,585) |
ACMI Services [Member] | |||
Goodwill [Roll Forward] | |||
Impairment | 0 | 0 | (52,585) |
CAM [Member] | |||
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 34,395 | 34,395 | |
Impairment | 0 | 0 | |
Carrying value, ending balance | $ 34,395 | $ 34,395 | $ 34,395 |
Goodwill and Other Intangible43
Goodwill and Other Intangibles (Schedule Intangible Assets) (Details) - ACMI Services [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying value at beginning of period | $ 4,615 | $ 4,896 | |
Amortization expense | (281) | (281) | |
Carrying value at end of period | 4,334 | 4,615 | $ 4,896 |
Customer Relationships [Member] | |||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying value at beginning of period | 1,615 | 1,896 | |
Amortization expense | (281) | (281) | (300) |
Carrying value at end of period | 1,334 | 1,615 | 1,896 |
Airline Certificates [Member] | |||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying value at beginning of period | 3,000 | 3,000 | |
Amortization expense | 0 | 0 | |
Carrying value at end of period | $ 3,000 | $ 3,000 | $ 3,000 |
Goodwill and Other Intangible44
Goodwill and Other Intangibles Investment in West Atlantic (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investments | $ 13.1 | $ 13.8 |
Investment in West Atlantic [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Goodwill | $ 5.5 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Level 1 [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents - money market | $ 0 | $ 20 |
Total Assets | 0 | 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 | 8,711 | 2,306 |
Total Assets | 8,711 | 2,306 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | (499) | (1,419) |
Total Liabilities | (499) | (1,419) |
Difference between fair value and carrying value, debt | 1,300 | 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 | 8,711 | 2,326 |
Total Assets | 8,711 | 2,326 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Interest rate swap | (499) | (1,419) |
Total Liabilities | (499) | (1,419) |
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Carrying value, debt | $ 318,200 | $ 344,100 |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 1,486,736 | $ 1,363,435 |
Accumulated depreciation | (611,335) | (516,167) |
Property and equipment, net | 875,401 | 847,268 |
Flight Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating Leases, Future Minimum Payments Receivable, Current | 76,600 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 1,372,099 | 1,285,966 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 70,500 | |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 65,800 | |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 33,500 | |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 15,300 | |
Ground equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 36,593 | 33,677 |
facilities, leasehold improvements and office equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 25,327 | 25,180 |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 52,717 | $ 18,612 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - Flight Equipment [Member] - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
Minimum future lease payments, Due within next 12 months | $ 76.6 | |
Minimum future lease payments, Due within next 2 years | 70.5 | |
Minimum future lease payments, Due within next 3 years | 65.8 | |
Minimum future lease payments, Due within next 4 years | 33.5 | |
Minimum future lease payments, Due within next 5 years | 15.3 | |
CAM [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leased aircraft, carrying value | 369.2 | $ 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 | $ 0.3 | $ 0.7 |
Debt Obligations (Schedule of L
Debt Obligations (Schedule of Long Term Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | May. 05, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Total long term obligations | $ 318,200 | $ 344,094 | |
Less: current portion | (33,865) | (24,344) | |
Total long term obligations, net | $ 284,335 | 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 | $ 101,250 | 116,250 | |
Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Accordion Feature Amount | $ 50,000 | ||
Total long term obligations | 180,000 | 180,000 | |
Aircraft loans [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | 36,950 | 46,294 | |
Promissory note due to DHL, unsecured [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | $ 0 | $ 1,550 |
Debt Obligations (Schedule of49
Debt Obligations (Schedule of Long Term Debt Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2,016 | $ 33,865 | |
2,017 | 29,445 | |
2,018 | 18,640 | |
2,019 | 15,000 | |
2,020 | 221,250 | |
2021 and beyond | 0 | |
Total long term obligations | $ 318,200 | $ 344,094 |
Debt Obligations (Narrative) (D
Debt Obligations (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)aircrafts | May. 05, 2015USD ($) | Dec. 31, 2014USD ($) | |
Debt Instrument [Line Items] | |||
Long term obligations | $ 318,200 | $ 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 | $ 101,250 | 116,250 | |
Increase in Additional Indebtedness, Long-Term Debt | $ 50,000 | ||
Additional Indebtedness Long-Term Debt | 150,000 | ||
Variable interest rate | 2.18% | ||
Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 180,000 | 180,000 | |
Accordion feature amount | 50,000 | ||
Increased borrowing capacity | 50,000 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 325,000 | ||
Variable interest rate | 2.18% | ||
Credit facility, revolving credit loan, remaining borrowing capacity | $ 136,600 | ||
Letters of credit outstanding | 8,400 | ||
Aircraft loans [Member] | |||
Debt Instrument [Line Items] | |||
Long term obligations | $ 36,950 | 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 | |
Promissory note interest rate | 5.00% | ||
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 Contingencies51
Commitments and Contingencies (Operating Lease Payments) (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Property Subject to Operating Lease [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,015 | $ 7,612 |
2,016 | 6,115 |
2,017 | 5,350 |
2,018 | 2,639 |
2,019 | 947 |
2020 and beyond | 12,948 |
Total minimum lease payments | 35,611 |
Other Leases [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2,015 | 394 |
2,016 | 148 |
2,017 | 99 |
2,018 | 34 |
2,019 | 0 |
2020 and beyond | 0 |
Total minimum lease payments | $ 675 |
Commitments and Contingencies52
Commitments and Contingencies (Commitments) (Details) | Dec. 31, 2015USD ($) |
Long-term Purchase Commitment [Line Items] | |
aircraft under modification | 2 |
costs to complete aircraft modification | $ 174,600,000 |
Commitments and Contingencies53
Commitments and Contingencies (Labor Unions) (Details) - Workforce Subject to Collective Bargaining Arrangements [Member] - Labor Unions [Member] | 12 Months Ended |
Dec. 31, 2015 | |
ABX [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 9.60% |
ATI [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 5.60% |
Pension and Other Post-Retire54
Pension and Other Post-Retirement Benefit Plans (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plans [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Obligation, beginning balance | $ 807,992 | $ 761,774 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 34,584 | 39,517 | 35,957 |
Plan transfers | 2,558 | 2,659 | |
Benefits paid | (32,696) | (29,961) | |
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 98,738 | |
Actuarial (gain) loss | (35,118) | 132,741 | |
Obligation, ending balance | 777,320 | 807,992 | 761,774 |
Change in plan assets [Roll Forward] | |||
Plan assets, beginning balance | 719,787 | 751,246 | |
Actual gain on plan assets | (23,677) | 88,453 | |
Employer contributions | 6,181 | 6,128 | |
Plan assets, ending balance | 672,153 | 719,787 | 751,246 |
Post-Retirement Healthcare Plans [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Obligation, beginning balance | 6,163 | 7,482 | |
Service cost | 177 | 239 | 275 |
Interest cost | 192 | 286 | 264 |
Plan transfers | 0 | 0 | |
Benefits paid | (788) | (1,623) | |
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 0 | |
Actuarial (gain) loss | (745) | (221) | |
Obligation, ending balance | 4,999 | 6,163 | 7,482 |
Change in plan assets [Roll Forward] | |||
Plan assets, beginning balance | 0 | 0 | |
Actual gain on plan assets | 0 | 0 | |
Employer contributions | 788 | 1,623 | |
Plan assets, ending balance | 0 | 0 | $ 0 |
Other Current Liabilities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded Status of Plan | (1,346) | (1,506) | |
Other Current Liabilities [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded Status of Plan | (626) | (812) | |
Other Noncurrent Liabilities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded Status of Plan | (103,821) | (86,699) | |
Other Noncurrent Liabilities [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded Status of Plan | $ (4,373) | $ (5,351) |
Pension and Other Post-Retire55
Pension and Other Post-Retirement Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 0 | $ 6,700 | $ 0 |
Pension Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 0 | 0 | 0 |
Interest cost | 34,584 | 39,517 | 35,957 |
Expected return on plan assets | (44,082) | (46,111) | (45,990) |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | 11,660 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net (gain) loss | 7,170 | (2) | 12,296 |
Net periodic benefit cost | (2,328) | 5,064 | 2,263 |
Pension Plans [Member] | Continuing Operations [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (6,700) | ||
Pension Plans [Member] | Discontinued Operations [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | (4,960) | ||
Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 177 | 239 | 275 |
Interest cost | 192 | 286 | 264 |
Expected return on plan assets | 0 | 0 | 0 |
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | 0 | 0 |
Amortization of prior service cost | (542) | (3,487) | (5,654) |
Amortization of net (gain) loss | 292 | 321 | 419 |
Net periodic benefit cost | $ 119 | $ (2,641) | $ (4,696) |
Pension and Other Post-Retire56
Pension and Other Post-Retirement Benefit Plans (Unrecognized Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | $ 0 | $ 0 |
Unrecognized net actuarial loss | 144,402 | 118,932 |
Accumulated other comprehensive (income) loss | 144,402 | 118,932 |
Post-Retirement Healthcare Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | (153) | (696) |
Unrecognized net actuarial loss | 449 | 1,486 |
Accumulated other comprehensive (income) loss | $ 296 | $ 790 |
Pension and Other Post-Retire57
Pension and Other Post-Retirement Benefit Plans (Accumulated Other Comprehensive Income (Loss) to be Recognized within 12 Months) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension Plans [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of actuarial loss | $ 13,472 |
Prior Service Cost | 0 |
Post-Retirement Healthcare Plans [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of actuarial loss | 160 |
Prior Service Cost | $ (102) |
Pension and Other Post-Retire58
Pension and Other Post-Retirement Benefit Plans (Schedule of Assumptions) (Details) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Expected return on plan assets | 6.25% | 6.25% | 6.25% |
Crewmembers [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.70% | 4.35% | 5.25% |
Non-crewmembers [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 4.75% | 4.40% | 5.35% |
Pilots [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.65% | 3.35% | 4.15% |
Non-pilots [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.35% | 3.30% | 3.85% |
Pension and Other Post-Retire59
Pension and Other Post-Retirement Benefit Plans (Plan Asset Allocations) (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 100.00% | 100.00% |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 1.00% | 0.00% |
Asset allocation range, minimum | 0.00% | |
Asset allocation range, maximum | 5.00% | |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 28.00% | 28.00% |
Asset allocation range, minimum | 15.00% | |
Asset allocation range, maximum | 35.00% | |
Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 67.00% | 68.00% |
Asset allocation range, minimum | 60.00% | |
Asset allocation range, maximum | 80.00% | |
Real estate [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 4.00% | 4.00% |
Asset allocation range, minimum | 0.00% | |
Asset allocation range, maximum | 5.00% | |
US Treasury Securities [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation range, maximum | 5.00% | |
US Treasury Securities [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocation range, maximum | 10.00% |
Pension and Other Post-Retire60
Pension and Other Post-Retirement Benefit Plans (Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 6,181 | $ 6,128 |
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 98,738 |
Estimated future employer contributions | 6,300 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||
2,016 | 34,766 | |
2,017 | 40,373 | |
2,018 | 40,064 | |
2,019 | 42,234 | |
2,020 | 44,237 | |
Years 2021 to 2025 | 245,721 | |
Post-Retirement Healthcare Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 788 | 1,623 |
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | $ 0 |
Estimated future employer contributions | 600 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||
2,016 | 626 | |
2,017 | 629 | |
2,018 | 592 | |
2,019 | 584 | |
2,020 | 573 | |
Years 2021 to 2025 | $ 2,477 |
Pension and Other Post-Retire61
Pension and Other Post-Retirement Benefit Plans (Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 58,366 | $ 55,474 | $ 48,900 |
Real estate [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 29,717 | 26,057 | 19,561 |
Hedge funds and private equity [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 28,649 | 29,417 | 29,339 |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 672,153 | 719,787 | $ 751,246 |
Pension Plans [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 66,777 | 71,424 | |
Pension Plans [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 547,010 | 592,889 | |
Pension Plans [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 58,366 | 55,474 | |
Pension Plans [Member] | Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 672,153 | 719,787 | |
Pension Plans [Member] | Common trust funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Common trust funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4,354 | 4,238 | |
Pension Plans [Member] | Common trust funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Common trust funds [Member] | Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4,354 | 4,238 | |
Pension Plans [Member] | Corporate stock [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 14,832 | 17,878 | |
Pension Plans [Member] | Corporate stock [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Corporate stock [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Corporate stock [Member] | Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 14,832 | 17,878 | |
Pension Plans [Member] | Mutual funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 46,991 | 51,568 | |
Pension Plans [Member] | Mutual funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 99,056 | 100,252 | |
Pension Plans [Member] | Mutual funds [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Mutual funds [Member] | Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 146,047 | 151,820 | |
Pension Plans [Member] | Fixed income investments [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4,954 | 1,978 | |
Pension Plans [Member] | Fixed income investments [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 443,600 | 488,399 | |
Pension Plans [Member] | Fixed income investments [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Fixed income investments [Member] | Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 448,554 | 490,377 | |
Pension Plans [Member] | Real estate [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Real estate [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Real estate [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 29,717 | 26,057 | |
Pension Plans [Member] | Real estate [Member] | Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 29,717 | 26,057 | |
Pension Plans [Member] | Hedge funds and private equity [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Hedge funds and private equity [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Hedge funds and private equity [Member] | Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 28,649 | 29,417 | |
Pension Plans [Member] | Hedge funds and private equity [Member] | Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 28,649 | $ 29,417 |
Pension and Other Post-Retire62
Pension and Other Post-Retirement Benefit Plans (Fair Value Measurements Using Significant Level 3 Unobservable Inputs) (Details) - Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | $ 55,474 | $ 48,900 |
Unrealized gains | 5,078 | 8,872 |
Purchases & settlements | (2,186) | (2,298) |
Plan assets, ending balance | 58,366 | 55,474 |
Hedge Funds & Private Equity [Member] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | 29,417 | 29,339 |
Unrealized gains | 1,418 | 2,376 |
Purchases & settlements | (2,186) | (2,298) |
Plan assets, ending balance | 28,649 | 29,417 |
Real Estate Investments [Member] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | 26,057 | 19,561 |
Unrealized gains | 3,660 | 6,496 |
Purchases & settlements | 0 | 0 |
Plan assets, ending balance | $ 29,717 | $ 26,057 |
Pension and Other Post-Retire63
Pension and Other Post-Retirement Benefit Plans (Defined Contribution Plan Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Capital accumulation plans [Member] | |||
Schedule of Defined Contribution Plans [Line Items] | |||
Defined contribution plan expense | $ 5,700 | $ 5,425 | $ 5,131 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Income Tax Disclosure [Line Items] | |
Deferred tax asset, operating loss carryforwards | $ 2 |
Federal [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforwards | 78.9 |
State and Local Jurisdiction [Member] | |
Income Tax Disclosure [Line Items] | |
Valuation allowance, operating loss carryforwards | $ 0.2 |
Minimum [Member] | State and Local Jurisdiction [Member] | |
Income Tax Disclosure [Line Items] | |
Operating loss carryforwards, remaining life | 1 year |
Maximum [Member] | State and Local Jurisdiction [Member] | |
Income Tax Disclosure [Line Items] | |
Operating loss carryforwards, remaining life | 20 years |
Income Taxes (Deferred Taxes) (
Income Taxes (Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Net operating loss carryforward and federal credits | $ 30,981 | $ 35,902 |
Post-retirement employee benefits | 36,589 | 31,067 |
Employee benefits other than post-retirement | 13,773 | 16,489 |
Inventory reserve | 2,924 | 2,930 |
Deferred revenue | 8,650 | 9,154 |
Other | 2,344 | 1,810 |
Deferred tax assets | 95,261 | 97,352 |
Deferred tax liabilities: | ||
Accelerated depreciation | (175,572) | (164,858) |
Partnership items | (9,489) | (9,493) |
State taxes | (6,830) | (5,995) |
Valuation allowance against deferred tax assets | (229) | (229) |
Deferred tax liabilities | 192,120 | 180,575 |
Net deferred tax (liability) | $ (96,859) | $ (83,223) |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Current taxes: | |||
Federal | $ 524 | $ 338 | $ 67 |
Foreign | 0 | 0 | 0 |
State | 371 | 345 | 425 |
Deferred taxes: | |||
Federal | 21,073 | 17,411 | 17,902 |
Foreign | 0 | 0 | 0 |
State | 1,440 | 1,608 | 872 |
Total deferred tax expense | 22,513 | 19,019 | 18,774 |
Total income tax expense from continuing operations | 23,408 | 19,702 | 19,266 |
Income tax expense (benefit) from discontinued operations | $ 1,178 | $ (1,262) | $ (2) |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 1.90% | 2.50% | (234.70%) |
Tax effect of non-deductible goodwill | 0.00% | 0.00% | (5121.20%) |
Tax effect of other non-deductible expenses | 0.90% | 0.80% | (26.40%) |
Other | (0.40%) | (0.20%) | (19.30%) |
Effective income tax rate | 37.40% | 38.10% | (5366.60%) |
Income Taxes (Tax Rate Reconc68
Income Taxes (Tax Rate Reconciliation - Discontinued Operations) (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 35.00% | (35.00%) | (35.00%) |
State income taxes, net of federal tax benefit | 1.30% | (1.30%) | (1.30%) |
Effective income tax rate | 36.30% | (36.30%) | (36.30%) |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
As of January 1 | $ 0 | $ 0 |
As of December 31 | $ 0 | $ 0 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Derivative [Line Items] | |||
Pre-tax (charge) on derivative instruments | $ 920 | $ 1,096 | $ 631 |
Net gain on derivative instruments | $ (920) | (1,096) | $ (631) |
May 9, 2016 [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Stated Interest Rate | 2.02% | ||
Market Value (Liability) | $ (247) | (1,071) | |
Derivative Liability, Notional Amount | $ 50,625 | 58,125 | |
June 30, 2017 [Member] [Member] | Swap [Member] | |||
Derivative [Line Items] | |||
Stated Interest Rate | 1.1825% | ||
Market Value (Liability) | $ (252) | (348) | |
Derivative Liability, Notional Amount | $ 50,625 | $ 58,125 |
Accumulated Other Comprehensi71
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (1,395) | $ (1,059) | |
Accumulated other comprehensive income (loss), beginning balance | (82,876) | (29,818) | $ (117,287) |
Other comprehensive income (loss) before reclassifications: | |||
Actuarial gain (loss) for retiree liabilities | (31,895) | (90,180) | 130,330 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (517) | (1,629) | |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax | 11,660 | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 181 | 570 | |
Amounts reclassified from accumulated other comprehensive income: | |||
Actuarial costs (reclassified to salaries, wages and benefits) | 7,462 | 319 | 12,715 |
Negative prior service cost (reclassified to salaries, wages and benefits) | (542) | (3,487) | (5,654) |
Hedging gain (reclassified to interest expense) | (50) | (42) | (50) |
Income Tax (Expense) or Benefit | 46 | 37 | 21 |
Income Tax (Expense) or Benefit | 9,406 | 30,301 | (49,872) |
Other comprehensive income (loss), net of tax | (4) | (5) | (29) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (336) | (1,059) | 0 |
Other comprehensive income (loss), net of tax | (53,058) | 87,469 | |
Accumulated other comprehensive income (loss), ending balance | (99,012) | (82,876) | (29,818) |
Total comprehensive income (loss) | 25,086 | (23,198) | 67,841 |
Pension Plans [Member] | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss), beginning balance | (81,191) | (31,072) | (121,602) |
Other comprehensive income (loss) before reclassifications: | |||
Actuarial gain (loss) for retiree liabilities | (32,640) | (90,400) | 129,856 |
Other Comprehensive Income (Loss), Finalization of Pension and Other Postretirement Benefit Plan Valuation, before Tax | 11,660 | ||
Amounts reclassified from accumulated other comprehensive income: | |||
Actuarial costs (reclassified to salaries, wages and benefits) | 7,170 | (2) | 12,296 |
Income Tax (Expense) or Benefit | 9,359 | 28,623 | (51,622) |
Other comprehensive income (loss), net of tax | (16,111) | (50,119) | 90,530 |
Accumulated other comprehensive income (loss), ending balance | (97,302) | (81,191) | (31,072) |
Post-Retirement Plans [Member] | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss), beginning balance | (630) | 1,245 | 4,277 |
Other comprehensive income (loss) before reclassifications: | |||
Actuarial gain (loss) for retiree liabilities | 745 | 220 | 474 |
Amounts reclassified from accumulated other comprehensive income: | |||
Actuarial costs (reclassified to salaries, wages and benefits) | 292 | 321 | 419 |
Negative prior service cost (reclassified to salaries, wages and benefits) | (542) | (3,487) | (5,654) |
Income Tax (Expense) or Benefit | (180) | 1,071 | 1,729 |
Other comprehensive income (loss), net of tax | 315 | (1,875) | (3,032) |
Accumulated other comprehensive income (loss), ending balance | (315) | (630) | 1,245 |
Derivative [Member] | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Accumulated other comprehensive income (loss), beginning balance | 4 | 9 | 38 |
Amounts reclassified from accumulated other comprehensive income: | |||
Accumulated other comprehensive income (loss), ending balance | $ 0 | $ 4 | $ 9 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
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 | 1,477,762 | 1,463,272 |
Granted (in shares) | 390,200 | 467,567 | 627,488 |
Converted (in shares) | (498,491) | (404,179) | (526,848) |
Expired (in shares) | (126,800) | (116,800) | (68,950) |
Forfeited (in shares) | (13,800) | (17,800) | (17,200) |
Outstanding at end of period (in shares) | 1,157,659 | 1,406,550 | 1,477,762 |
Vested (in shares) | 511,109 | 555,927 | 506,644 |
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 | $ 5.83 | $ 5.97 |
Granted, Weighted average grant-date fair value (in dollars per share) | 9.61 | 7.52 | 5.73 |
Converted, Weighted average grant-date fair value (in dollars per share) | 5.97 | 6.49 | 5.72 |
Expired, Weighted average grant-date fair value (in dollars per share) | 5.52 | 5.70 | 8.25 |
Forfeited, Weighted average grant-date fair value (in dollars per share) | 7.36 | 6.26 | 7.07 |
Outstanding at end of period, Weighted average grant-date fair value (in dollars per share) | 7.52 | 6.21 | 5.83 |
Vested (in dollars per share) | $ 6.03 | $ 5.73 | $ 4.47 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Share-based compensation expense | $ 2.5 | $ 2.9 | $ 2.7 |
Unrecognized share-based compensation expense | $ 2.5 | ||
Unrecognized share-based compensation, weighted average recognition period | 1 year 6 months | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years | ||
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 | 3 years | 3 years |
Risk-free interest rate | 0.90% | 0.80% | 0.40% |
Expected volatility rate | 41.50% | 48.90% | 61.00% |
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 | $ 7.83 | $ 6.78 |
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 | $ 7.44 | $ 5.46 |
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) | 1,397,659 | ||
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 | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share Reconciliation [Abstract] | |||||||||||
Earnings from continuing operations | $ 13,343 | $ 6,347 | $ 10,570 | $ 8,895 | $ 6,659 | $ 9,595 | $ 9,298 | $ 6,522 | $ 39,155 | $ 32,074 | $ (19,625) |
Weighted-average shares outstanding for basic earnings per share (in shares) | 63,742,000 | 64,239,000 | 64,541,000 | 64,454,000 | 64,289,000 | 64,286,000 | 64,285,000 | 64,148,000 | 64,242,000 | 64,253,000 | 63,992,000 |
Common equivalent shares: | |||||||||||
Effect of stock-based compensation awards (in shares) | 885,000 | 958,000 | 0 | ||||||||
Weighted-average shares outstanding assuming dilution (in shares) | 64,536,000 | 65,171,000 | 65,471,000 | 65,337,000 | 65,222,000 | 65,271,000 | 65,207,000 | 65,141,000 | 65,127,000 | 65,211,000 | 63,992,000 |
Basic earnings per share from continuing operations (in dollars per share) | $ 0.21 | $ 0.10 | $ 0.16 | $ 0.14 | $ 0.10 | $ 0.15 | $ 0.14 | $ 0.10 | $ 0.61 | $ 0.50 | $ (0.31) |
Diluted earnings per share from continuing operations (in dollars per share) | $ 0.21 | $ 0.10 | $ 0.16 | $ 0.14 | $ 0.10 | $ 0.15 | $ 0.14 | $ 0.10 | $ 0.60 | $ 0.49 | $ (0.31) |
Restricted stock (in shares) | 348,600 | 435,600 | 481,900 | ||||||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 11,000 | 0 | 0 |
Segment Information (Segment Re
Segment Information (Segment Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | $ 181,581 | $ 142,305 | $ 148,353 | $ 147,025 | $ 157,938 | $ 138,443 | $ 149,618 | $ 143,593 | $ 619,264 | $ 589,592 | $ 580,023 |
Customer revenues | 181,581 | $ 142,305 | $ 148,353 | $ 147,025 | 157,938 | $ 138,443 | $ 149,618 | $ 143,593 | 619,264 | 589,592 | 580,023 |
Depreciation and amortization expense | 125,443 | 108,254 | 91,749 | ||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | (6,700) | 0 | ||||||||
Impairment of goodwill | 0 | 0 | 52,585 | ||||||||
Finite and Infinite (including Goodwill) Asset Impairment and Pension Settlement Charge | 0 | 6,700 | 52,585 | ||||||||
Net unallocated interest expense | (11,232) | (13,937) | (14,249) | ||||||||
Net gain on derivative instruments | 920 | 1,096 | 631 | ||||||||
Pre-tax earnings from continuing operations | 62,563 | 51,776 | (359) | ||||||||
Assets | 1,042,263 | 1,011,859 | 1,042,263 | 1,011,859 | 1,019,182 | ||||||
Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 619,264 | 589,592 | 580,023 | ||||||||
Customer revenues | 619,264 | 589,592 | 580,023 | ||||||||
CAM [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 177,789 | 166,303 | 160,342 | ||||||||
Customer revenues | 177,789 | 166,303 | 160,342 | ||||||||
Depreciation and amortization expense | 87,765 | 78,866 | 64,096 | ||||||||
Impairment of goodwill | 0 | 0 | |||||||||
Segment earnings (loss) | 57,457 | 53,159 | 66,208 | ||||||||
Net unallocated interest expense | (9,400) | (11,800) | (12,400) | ||||||||
Assets | 805,318 | 799,164 | 805,318 | 799,164 | 806,943 | ||||||
CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 93,395 | 77,668 | 71,604 | ||||||||
Customer revenues | 93,395 | 77,668 | 71,604 | ||||||||
ACMI Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 433,109 | 439,919 | 444,504 | ||||||||
Customer revenues | 433,109 | 439,919 | 444,504 | ||||||||
Depreciation and amortization expense | 37,526 | 29,929 | 27,546 | ||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 6,700 | 0 | 0 | ||||||||
Impairment of goodwill | 0 | 0 | 52,585 | ||||||||
Segment earnings (loss) | (2,654) | (12,081) | (78,186) | ||||||||
Assets | 154,852 | 133,861 | 154,852 | 133,861 | 140,354 | ||||||
ACMI Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 431,989 | 439,919 | 444,504 | ||||||||
Customer revenues | 431,989 | 439,919 | 444,504 | ||||||||
All other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 161,995 | 142,294 | 117,292 | ||||||||
Customer revenues | 161,995 | 142,294 | 117,292 | ||||||||
Depreciation and amortization expense | 152 | (541) | 107 | ||||||||
Segment earnings (loss) | 8,561 | 11,363 | 12,200 | ||||||||
Assets | 82,093 | 78,834 | 82,093 | 78,834 | 71,591 | ||||||
All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 93,880 | 72,005 | 63,915 | ||||||||
Customer revenues | 93,880 | 72,005 | 63,915 | ||||||||
Discontinued operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 0 | $ 0 | 0 | 0 | 294 | ||||||
Significant Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net unallocated interest expense | (1,721) | (1,761) | (1,212) | ||||||||
Eliminate inter-segment revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | (153,629) | (158,924) | (142,115) | ||||||||
Customer revenues | $ (153,629) | $ (158,924) | $ (142,115) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015USD ($)segments | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments (in segments) | segments | 2 | ||
Interest expense | $ 11,232 | $ 13,937 | $ 14,249 |
Impairment of goodwill | $ 0 | $ 0 | $ (52,585) |
Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 206,484 | 205,005 | 235,125 |
ACMI Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Additions | $ 40,000 | ||
Impairment of goodwill | 0 | $ 0 | $ (52,585) |
CAM [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 9,400 | 11,800 | $ 12,400 |
Property, Plant and Equipment, Additions | 114,800 | ||
Impairment of goodwill | $ 0 | $ 0 |
Segment Information (Entity-Wid
Segment Information (Entity-Wide Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | $ 181,581 | $ 142,305 | $ 148,353 | $ 147,025 | $ 157,938 | $ 138,443 | $ 149,618 | $ 143,593 | $ 619,264 | $ 589,592 | $ 580,023 |
Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 619,264 | 589,592 | 580,023 | ||||||||
CAM [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Non-lease external revenue | 12,600 | 11,500 | 9,900 | ||||||||
Customer revenues | 177,789 | 166,303 | 160,342 | ||||||||
CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 93,395 | 77,668 | 71,604 | ||||||||
All other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 161,995 | 142,294 | 117,292 | ||||||||
All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 93,880 | 72,005 | 63,915 | ||||||||
Aircraft maintenance and part sales [Member] | All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 33,687 | 26,393 | 23,175 | ||||||||
Mail handling services [Member] | All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 47,307 | 34,025 | 30,117 | ||||||||
Facility and ground equipment maintenance [Member] | All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 11,490 | 11,119 | 10,030 | ||||||||
Other [Member] | All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | $ 1,396 | $ 468 | $ 593 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Liabilities | |||
Employee compensation and benefits | $ 23,400 | $ 25,997 | |
Post-retirement | 10,929 | 10,086 | |
Total Liabilities | 34,329 | 36,083 | |
Pre-tax earnings (loss) | $ 3,245 | $ (3,477) | $ (5) |
Quarterly Results (Unaudited)78
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Impairment of goodwill | $ 0 | $ 0 | $ 52,585 | ||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 0 | (6,700) | 0 | ||||||||
REVENUES | $ 181,581 | $ 142,305 | $ 148,353 | $ 147,025 | $ 157,938 | $ 138,443 | $ 149,618 | $ 143,593 | 619,264 | 589,592 | 580,023 |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 22,550 | 12,917 | 19,794 | 17,529 | 14,285 | 18,287 | 18,117 | 13,836 | |||
Net earnings (loss) from continuing operations | 13,343 | 6,347 | 10,570 | 8,895 | 6,659 | 9,595 | 9,298 | 6,522 | 39,155 | 32,074 | (19,625) |
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES | $ 1,425 | $ 214 | $ 214 | $ 214 | $ (2,948) | $ 312 | $ 211 | $ 211 | $ 2,067 | $ (2,214) | $ (3) |
Weighted average shares: | |||||||||||
Basic (in shares) | 63,742 | 64,239 | 64,541 | 64,454 | 64,289 | 64,286 | 64,285 | 64,148 | 64,242 | 64,253 | 63,992 |
Diluted (in shares) | 64,536 | 65,171 | 65,471 | 65,337 | 65,222 | 65,271 | 65,207 | 65,141 | 65,127 | 65,211 | 63,992 |
Earnings (loss) per share from continuing operations | |||||||||||
Basic (in dollars per share) | $ 0.21 | $ 0.10 | $ 0.16 | $ 0.14 | $ 0.10 | $ 0.15 | $ 0.14 | $ 0.10 | $ 0.61 | $ 0.50 | $ (0.31) |
Diluted (in dollars per share) | $ 0.21 | $ 0.10 | $ 0.16 | $ 0.14 | $ 0.10 | $ 0.15 | $ 0.14 | $ 0.10 | $ 0.60 | $ 0.49 | $ (0.31) |
Pension Plans [Member] | |||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 0 | $ (11,660) | $ 0 | ||||||||
Pension Plans [Member] | Continuing Operations [Member] | |||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 6,700 | ||||||||||
Pension Plans [Member] | Discontinued Operations [Member] | |||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 4,960 | ||||||||||
ACMI Services [Member] | |||||||||||
Impairment of goodwill | 0 | 0 | 52,585 | ||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 6,700 | 0 | 0 | ||||||||
REVENUES | $ 433,109 | $ 439,919 | $ 444,504 |