Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 01, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-50368 | ||
Entity Registrant Name | Air Transport Services Group, Inc. | ||
Entity Central Index Key | 0000894081 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1631624 | ||
Entity Address, Address Line One | 145 Hunter Drive | ||
Entity Address, City or Town | Wilmington | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45177 | ||
City Area Code | 937 | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Local Phone Number | 382-5591 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ATSG | ||
Entity Public Float | $ 1,157,662,938 | ||
Entity Common Stock, Shares Outstanding | 74,222,011 | ||
Documents Incorporated by Reference [Text Block] | Portions of the Proxy Statement for the Annual Meeting of Stockholders scheduled to be held May 25, 2022 are incorporated by reference into Parts II and III. | ||
ICFR Auditor Attestation Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Cincinnati, Ohio |
Auditor Firm ID | 34 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash, cash equivalents and restricted cash | $ 69,496 | $ 39,719 |
Accounts receivable, net of allowance of $742 in 2021 and $997 in 2020 | 205,399 | 153,511 |
Inventory | 49,204 | 40,410 |
Prepaid supplies and other | 28,742 | 39,096 |
TOTAL CURRENT ASSETS | 352,841 | 272,736 |
Property and equipment, net | 2,129,934 | 1,939,776 |
Lease incentive | 102,913 | 126,007 |
Other assets | 113,878 | |
Goodwill and acquired intangibles | 505,125 | 516,290 |
Operating lease assets | 62,644 | 68,824 |
Intangibles | 109,151 | 120,316 |
Goodwill | 395,974 | 395,974 |
TOTAL ASSETS | 3,267,335 | 3,001,745 |
CURRENT LIABILITIES: | ||
Accounts payable | 174,237 | 141,425 |
Accrued salaries, wages and benefits | 56,652 | 56,506 |
Accrued expenses | 14,950 | 19,005 |
Current portion of debt obligations | 628 | 13,746 |
Current portion of lease obligations | 18,783 | 17,784 |
Unearned revenue and grants | 47,381 | 53,522 |
TOTAL CURRENT LIABILITIES | 312,631 | 301,988 |
Long term debt | 1,298,735 | 1,465,331 |
Post-retirement obligations | 21,337 | 35,099 |
Long term lease obligations | 44,387 | 51,128 |
Other liabilities | 49,662 | 47,963 |
Stock Warrants | 915 | 103,474 |
Deferred income taxes | 217,291 | 141,265 |
TOTAL LIABILITIES | 1,944,958 | 2,146,248 |
Commitments and contingencies (Note H) | ||
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; 150,000,000 shares authorized; 74,142,183 and 59,560,036 shares issued and outstanding in 2021 and 2020, respectively | 741 | 596 |
Additional paid-in capital | 1,074,286 | 855,547 |
Retained earnings | 309,430 | 78,010 |
Accumulated other comprehensive loss | (62,080) | (78,656) |
TOTAL STOCKHOLDERS’ EQUITY | 1,322,377 | 855,497 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,267,335 | $ 3,001,745 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets, Current [Abstract] | ||
Allowance for doubtful accounts | $ 742 | $ 997 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 74,142,183 | 59,560,036 |
Common stock, shares outstanding (in shares) | 74,142,183 | 59,560,036 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
REVENUES | $ 1,734,282 | $ 1,570,575 | $ 1,452,183 |
OPERATING EXPENSES | |||
Salaries, wages and benefits | 591,280 | 518,961 | 433,518 |
Fuel | 173,600 | 148,383 | 155,033 |
Maintenance, materials and repairs | 173,364 | 179,315 | 170,151 |
Depreciation and amortization | 308,448 | 278,067 | 257,532 |
Travel | 86,601 | 77,382 | 90,993 |
Contracted ground and aviation services | 75,724 | 63,564 | 64,076 |
Rent | 23,695 | 19,299 | 16,006 |
Landing and ramp | 14,244 | 12,468 | 11,184 |
Insurance | 12,588 | 9,903 | 7,342 |
Transaction fees | 0 | 0 | 373 |
Other operating expenses | 65,179 | 64,999 | 68,978 |
government grants continuing operations | (111,673) | (47,231) | 0 |
Operating Expenses | 1,413,050 | 1,364,185 | 1,275,186 |
OPERATING INCOME | 321,232 | 206,390 | 176,997 |
OTHER INCOME (EXPENSE) | |||
Interest income | 39 | 222 | 370 |
Non-service component of retiree benefit costs | 17,827 | 12,032 | (9,404) |
Write off of Deferred Debt Issuance Cost | (6,505) | 0 | 0 |
Non-service component of retiree benefit (costs) gains | (58,790) | (62,893) | (66,644) |
Net gain (loss) on financial instruments | 29,979 | (100,771) | (12,302) |
Other Nonoperating Income (Expense) | (20,027) | (164,997) | (105,425) |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 301,205 | 41,393 | 71,572 |
INCOME TAX EXPENSE | (72,224) | (16,314) | (11,589) |
EARNINGS FROM CONTINUING OPERATIONS | 228,980 | 25,079 | 59,983 |
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES | 2,440 | 7,036 | 1,219 |
NET EARNINGS | $ 231,420 | $ 32,115 | $ 61,202 |
BASIC EARNINGS PER SHARE | |||
Basic earnings per share from continuing operations (in dollars per share) | $ 3.33 | $ 0.42 | $ 1.02 |
Discontinued operations (in dollars per share) | 0.03 | 0.12 | 0.02 |
TOTAL BASIC EARNINGS PER SHARE (in dollars per share) | 3.36 | 0.54 | 1.04 |
DILUTED EARNINGS PER SHARE | |||
Diluted earnings per share from continuing operations (in dollars per share) | 2.80 | 0.42 | 0.78 |
Discontinued operations (in dollars per share) | 0.03 | 0.12 | 0.01 |
TOTAL DILUTED NET EARNINGS PER SHARE (in dollars per share) | $ 2.83 | $ 0.54 | $ 0.79 |
WEIGHTED AVERAGE SHARES | |||
Basic (in shares) | 68,853 | 59,128 | 58,899 |
Diluted (in shares) | 76,216 | 59,931 | 69,348 |
Asset Impairment Charges | $ 0 | $ 39,075 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
NET EARNINGS | $ 231,420 | $ 32,115 | $ 61,202 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (6) | (2) | 1,467 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | 14,315 | (25,638) | 20,800 |
TOTAL COMPREHENSIVE INCOME, net of tax | 247,996 | 15,325 | 90,698 |
Pension Plans [Member] | |||
Other comprehensive income (loss), net of tax | 16,262 | (16,941) | 27,890 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | 14,087 | (25,712) | 20,793 |
Income tax (expense) or benefit | (4,881) | 5,008 | (8,431) |
Post-Retirement Plans [Member] | |||
Other comprehensive income (loss), net of tax | 320 | 153 | 139 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | 228 | 74 | 7 |
Income tax (expense) or benefit | $ (96) | $ (45) | $ (40) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Write off of Deferred Debt Issuance Cost | $ 6,505 | $ 0 | $ 0 |
Withholding taxes paid for conversion of employee stock awards | 2,861 | 2,730 | 2,438 |
OPERATING ACTIVITIES: | |||
Net earnings from continuing operations | 228,980 | 25,079 | 59,983 |
Net earnings from discontinued operations | 2,440 | 7,036 | 1,219 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 341,849 | 310,317 | 285,353 |
Pension and post-retirement | 7,244 | 3,888 | 15,700 |
Deferred income taxes | 70,544 | 18,492 | 10,478 |
Amortization of stock-based compensation | 7,386 | 7,477 | 7,002 |
Proceeds from Contributions from Affiliates | 2,577 | 13,587 | 17,445 |
Net (gain) loss on financial instruments | (9,800) | 5,300 | 10,000 |
Changes in assets and liabilities: | |||
Accounts receivable | (51,888) | 9,359 | (14,551) |
Inventory and prepaid supplies | (3,123) | (27,825) | (6,493) |
Accounts payable | 30,388 | 5,584 | 3,340 |
Unearned revenue | (7,011) | 36,922 | 1,446 |
Accrued expenses, salaries, wages, benefits and other liabilities | 10,059 | (5,226) | 13,390 |
Pension and post-retirement balances | (26,884) | (28,198) | (12,132) |
Other | (5,530) | (4,036) | 2,456 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 583,557 | 512,302 | 396,938 |
INVESTING ACTIVITIES: | |||
Expenditures for property and equipment | (504,748) | (510,417) | (453,502) |
Proceeds from property and equipment | 19,427 | 24,583 | 10,804 |
Investment in nonconsolidated affiliate | (2,155) | (13,333) | (24,360) |
NET CASH (USED IN) INVESTING ACTIVITIES | (487,476) | (499,167) | (467,058) |
FINANCING ACTIVITIES: | |||
Principal payments on long term obligations | (1,900,311) | (689,380) | (39,500) |
Proceeds from revolving credit facilities | 1,500,600 | 180,000 | 100,018 |
Payments for financing costs | (3,099) | (7,507) | (1,081) |
Proceeds from Issuance of Unsecured Debt | 207,400 | 500,000 | 0 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (66,304) | (19,617) | 56,999 |
Proceeds from issuance of warrants | 131,967 | 0 | 0 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 29,777 | (6,482) | (13,121) |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 39,719 | 46,201 | 59,322 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 69,496 | 39,719 | 46,201 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest paid, net of amount capitalized | 43,696 | 41,343 | 57,546 |
Federal and state income taxes paid | 3,431 | 1,139 | 1,294 |
SUPPLEMENTAL NON-CASH INFORMATION: | |||
Accrued expenditures for property and equipment | 43,479 | 37,880 | 38,396 |
Net (gain) loss on financial instruments | 29,979 | (100,771) | (12,302) |
Asset Impairment Charges | $ 0 | $ 39,075 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Amazon Warrant AB and C | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at at Dec. 31, 2018 | $ 436,438 | $ 591 | $ 471,158 | $ 56,051 | $ (91,362) | |
Balance at (in shares) at Dec. 31, 2018 | 59,134,173 | |||||
Stock-based compensation plans | ||||||
Grant of restricted stock | 0 | $ 2 | (2) | |||
Grant of restricted stock (in shares) | 151,300 | |||||
Issuance of common shares, net of withholdings | (2,438) | $ 0 | (2,438) | |||
Withholdings of common shares, net of issuances (in shares) | 46,958 | |||||
Forfeited restricted stock | 0 | $ 0 | 0 | |||
Forfeited restricted stock (in shares) | (3,000) | |||||
Retained earnings | Accounting Standards Update 2018-07 | (71,358) | (71,358) | ||||
Amortization of stock awards and restricted stock | 7,002 | 7,002 | ||||
Total comprehensive income (loss) | 90,698 | 61,202 | 29,496 | |||
Balance at at Dec. 31, 2019 | 460,342 | $ 593 | 475,720 | 45,895 | (61,866) | |
Balance at (in shares) at Dec. 31, 2019 | 59,329,431 | |||||
Stock-based compensation plans | ||||||
Grant of restricted stock | 0 | $ 2 | (2) | |||
Grant of restricted stock (in shares) | 201,400 | |||||
Issuance of common shares, net of withholdings | (2,730) | $ 1 | (2,731) | |||
Issuance of common shares, net of withholdings (in shares) | 31,005 | |||||
Forfeited restricted stock | 0 | $ 0 | 0 | |||
Forfeited restricted stock (in shares) | (1,800) | |||||
Amortization of stock awards and restricted stock | 7,477 | 7,477 | ||||
Total comprehensive income (loss) | 15,325 | 32,115 | (16,790) | |||
Balance at at Dec. 31, 2020 | $ 855,497 | $ 596 | 855,547 | 78,010 | (78,656) | |
Balance at (in shares) at Dec. 31, 2020 | 59,560,036 | 59,560,036 | ||||
Stock-based compensation plans | ||||||
reclassification of liability to equity | $ 375,083 | $ 375,083 | ||||
Grant of restricted stock | 0 | $ 1 | (1) | |||
Grant of restricted stock (in shares) | 121,339 | |||||
Issuance of common shares, net of withholdings | (2,861) | $ 0 | (2,861) | |||
Withholdings of common shares, net of issuances (in shares) | 35,163 | |||||
Forfeited restricted stock | 0 | $ 0 | 0 | |||
Forfeited restricted stock (in shares) | (2,800) | |||||
Stock Issued During Period, Value, Conversion of Convertible Securities | 131,967 | $ 144 | 131,823 | |||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 14,428,445 | |||||
Amortization of stock awards and restricted stock | 7,386 | 7,386 | ||||
Total comprehensive income (loss) | 247,996 | 231,420 | 16,576 | |||
Balance at at Dec. 31, 2021 | $ 1,322,377 | $ 741 | $ 1,074,286 | $ 309,430 | $ (62,080) | |
Balance at (in shares) at Dec. 31, 2021 | 74,142,183 | 74,142,183 | ||||
Stock-based compensation plans | ||||||
reclassification of liability to equity | $ 82,392 | $ 82,392 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Foreign Currency Translation Total Balance as of January 1, 2019 (89,042) (841) (1,479) (91,362) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 20,793 7 — 20,800 Foreign currency translation adjustment — — (18) (18) Amounts reclassified from accumulated other comprehensive income: Foreign currency loss — — 2,253 2,253 Actuarial costs (reclassified to salaries, wages and benefits) 15,528 172 — 15,700 Income Tax (Expense) or Benefit (8,431) (40) (768) (9,239) Other comprehensive income (loss), net of tax 27,890 139 1,467 29,496 Balance as of December 31, 2019 (61,152) (702) (12) (61,866) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (25,712) 74 — (25,638) Foreign currency translation adjustment — — (2) (2) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 3,763 124 — 3,887 Income Tax (Expense) or Benefit 5,008 (45) — 4,963 Other comprehensive income (loss), net of tax (16,941) 153 (2) (16,790) Balance as of December 31, 2020 (78,093) (549) (14) (78,656) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 14,087 228 14,315 Foreign currency translation adjustment (6) (6) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 7,056 188 7,244 Income Tax (Expense) or Benefit (4,881) (96) (4,977) Other comprehensive income (loss), net of tax 16,262 320 (6) 16,576 Balance as of December 31, 2021 (61,831) (229) (20) (62,080) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021, 2020 and 2019 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Foreign Currency Translation Total Balance as of January 1, 2019 (89,042) (841) (1,479) (91,362) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 20,793 7 — 20,800 Foreign currency translation adjustment — — (18) (18) Amounts reclassified from accumulated other comprehensive income: Foreign currency loss — — 2,253 2,253 Actuarial costs (reclassified to salaries, wages and benefits) 15,528 172 — 15,700 Income Tax (Expense) or Benefit (8,431) (40) (768) (9,239) Other comprehensive income (loss), net of tax 27,890 139 1,467 29,496 Balance as of December 31, 2019 (61,152) (702) (12) (61,866) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (25,712) 74 — (25,638) Foreign currency translation adjustment — — (2) (2) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 3,763 124 — 3,887 Income Tax (Expense) or Benefit 5,008 (45) — 4,963 Other comprehensive income (loss), net of tax (16,941) 153 (2) (16,790) Balance as of December 31, 2020 (78,093) (549) (14) (78,656) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 14,087 228 14,315 Foreign currency translation adjustment (6) (6) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 7,056 188 7,244 Income Tax (Expense) or Benefit (4,881) (96) (4,977) Other comprehensive income (loss), net of tax 16,262 320 (6) 16,576 Balance as of December 31, 2021 (61,831) (229) (20) (62,080) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (20) | $ (14) | $ (12) | $ (1,479) |
Accumulated other comprehensive income (loss), beginning balance | (78,656) | (61,866) | (91,362) | |
Other comprehensive income (loss) before reclassifications: | ||||
Actuarial gain (loss) for retiree liabilities | 14,315 | (25,638) | 20,800 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (6) | (2) | (18) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 2,253 | |||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | (768) | ||
Amounts reclassified from accumulated other comprehensive income: | ||||
Actuarial costs (reclassified to salaries, wages and benefits) | 7,244 | 3,887 | 15,700 | |
Income Tax (Expense) or Benefit | (4,977) | 4,963 | (9,239) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (6) | (2) | 1,467 | |
Other comprehensive income (loss), net of tax | (16,790) | 29,496 | ||
Accumulated other comprehensive income (loss), ending balance | (62,080) | (78,656) | (61,866) | |
Total comprehensive income (loss) | 247,996 | 15,325 | 90,698 | |
Pension Plans [Member] | ||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | (78,093) | (61,152) | (89,042) | |
Other comprehensive income (loss) before reclassifications: | ||||
Actuarial gain (loss) for retiree liabilities | 14,087 | (25,712) | 20,793 | |
Amounts reclassified from accumulated other comprehensive income: | ||||
Actuarial costs (reclassified to salaries, wages and benefits) | 7,056 | 3,763 | 15,528 | |
Income Tax (Expense) or Benefit | (4,881) | 5,008 | (8,431) | |
Other comprehensive income (loss), net of tax | 16,262 | (16,941) | 27,890 | |
Accumulated other comprehensive income (loss), ending balance | (61,831) | (78,093) | (61,152) | |
Post-Retirement Plans [Member] | ||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | (549) | (702) | (841) | |
Other comprehensive income (loss) before reclassifications: | ||||
Actuarial gain (loss) for retiree liabilities | 228 | 74 | 7 | |
Amounts reclassified from accumulated other comprehensive income: | ||||
Actuarial costs (reclassified to salaries, wages and benefits) | 188 | 124 | 172 | |
Income Tax (Expense) or Benefit | (96) | (45) | (40) | |
Other comprehensive income (loss), net of tax | 320 | 153 | 139 | |
Accumulated other comprehensive income (loss), ending balance | $ (229) | $ (549) | $ (702) |
Summary of Financial Statement
Summary of Financial Statement Preparation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 subsidiaries lease aircraft and provide contracted airline operations as well as other support services mainly to the air transportation, e-commerce and package delivery industries. The Company's leasing subsidiary, Cargo Aircraft Management, Inc. (“CAM”), leases aircraft to each of the Company's airlines as well as to non-affiliated airlines and other lessees. The Company's airlines, ABX Air, Inc. (“ABX”), Air Transport International, Inc. (“ATI”) and Omni Air International, LLC ("OAI" ) each have the authority, through their separate U.S. Department of Transportation ("DOT") and Federal Aviation Administration ("FAA") certificates, to transport cargo worldwide. The Company provides a combination of aircraft, crews, maintenance and insurance services for a customer's transportation network through customer "CMI" and "ACMI" agreements and through charter contracts in which aircraft fuel is also included. In addition to its aircraft leasing and airline services, the Company offers a range of complementary services to delivery companies, freight forwarders, airlines and government customers. These include aircraft maintenance and modification services, aircraft parts, equipment maintenance services and load transfer and package sorting services for customers. Basis of Presentation The accompanying consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Inter-company balances and transactions are eliminated. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Investments in affiliates in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Under the equity method, the Company’s share of the nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Investments in affiliates in which the Company does not exercise control or have significant influence are reflected at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. 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, stock warrants and other financial instruments, post-retirement obligations, income taxes, contingencies and litigation. Changes in estimates and assumptions may have a material impact on the consolidated financial statements. COVID-19 Uncertainties Beginning in late 2019, an outbreak of a coronavirus, COVID-19, was identified and has since spread globally, becoming a pandemic. The pandemic has had an impact on the Company's operations and financial results. Beginning in late February 2020, revenues were disrupted when customers cancelled scheduled passenger flights and aircraft maintenance services and the Company began to incur additional costs, including expenses to protect employees. Additionally, the Company experienced disruptions to operations, such as shortages of personnel, shortages of parts, maintenance delays, shortages of transportation and hotel accommodations for flight crews, facility closures and other issues. Currently, the pandemic has not had a significant adverse financial impact on the Company's leasing operations or its airline operations for customers' freight networks. 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. Cash includes restricted cash of $5.9 million as of December 31, 2021 and $0.4 million as of December 31, 2020. Restricted cash consists of customers’ deposits held in an escrow account as required by DOT regulations. The cash is restricted to the extent of customers’ deposits on flights not yet flown. Restricted cash is released from escrow upon completion of specific flights, which are scheduled to occur within the twelve months. Accounts Receivable and Allowance for Uncollectible Accounts The Company's accounts receivable is primarily due from its significant customers (see Note C), other airlines, delivery companies and freight forwarders. The Company estimates expected credit losses over the lifetime of the customer receivables that are not past due. The Company also 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 allowances for amounts that are not expected to be received. Account balances are written off against the allowances 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. 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 assessment requires an estimation of fair value of each reporting unit that has goodwill. The goodwill impairment test requires a comparison of the fair value of the reporting unit to its respective carrying value. If the carrying value of a reporting unit is less than its fair value no impairment exists. If the carrying amount of a reporting unit is higher than its fair value an impairment loss is recorded for the difference and charged to operations. The Company assesses, during the fourth quarter of each year, whether it is more likely than not that an indefinite-lived intangible asset is impaired by considering all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. 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 Company accounts for planned major airframe and engine maintenance costs using the built-in overhaul method for the aircraft it owns, except the costs of airframe maintenance for Boeing 767-200 aircraft operated by ABX which are expensed as they are incurred. Under the built-in overhaul method, costs of planned airframe maintenance and engine overhauls are capitalized and depreciated by the Company's airlines over the expected period until the next scheduled major maintenance event is required. Major, n on-scheduled airframe and engine maintenance costs that extend the life of the asset are also capitalized. The capitalized costs of airframe maintenance and engine overhauls for aircraft leased to customers, are depreciated over the life of the lease with consideration for the customer's return obligations. Scheduled maintenance for the aircraft engines, including Boeing 777 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 life of the overhaul. Certain engines that power the Boeing 767 aircraft are maintained under "power by the cycle" agreements with engine maintenance providers. Under these agreements, the engines are maintained by the service provider for a fixed fee per cycle. As a result, the cost of maintenance for these engines is generally expensed as flights occur and the initial engine overhaul value is depreciated over the life of the engine. In September of 2021, a power by the cycle maintenance agreement for many of the Company's Boeing 767-200 engines expired. As a result, the Company began to depreciate the remaining carrying value of these engine overhauls over the time remaining until the next overhaul. This resulted in additional depreciation expense of $2.1 million before the effects income taxes during 2021. Property and equipment is depreciated over an asset's estimated useful life, or if related to a lease, over the lesser of the asset’s useful life or lease term. Assets are typically depreciated on a straight-line basis except for certain engines which are depreciated based on their usage levels during the period. Depreciable lives are summarized as follows: Boeing 777, 767 and 757 aircraft and flight equipment 7 to 18 years Ground equipment 2 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. The cost and accumulated depreciation of disposed property and equipment and expired major maintenance are removed from the accounts with any related gain or loss reflected in earnings from operations. For aircraft leased 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 it is less than probable that a deposit will be returned, it is recognized as additional maintenance expense. 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 are less than the carrying value. If impairment exists, an adjustment is recorded 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. Capitalized Interest Interest costs incurred while aircraft are being modified are capitalized as an additional cost of the aircraft. Capitalized interest was $3.5 million, $2.8 million and $3.7 million for the years ended December 31, 2021, 2020 and 2019, 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 $6.1 million and $9.3 million at December 31, 2021 and December 31, 2020, 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 any of the Company's defined benefit pension or post-retirement health care plans 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 re-measured 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 re-measuring plan assets and benefit obligations, are recorded to accumulated comprehensive loss and amortized into expense using a corridor approach. The Company's corridor approach amortizes into earnings variances in plan assets and benefit obligations that are a result of the previous measurement assumptions 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. Cost adjustments for plan amendments are also deferred and amortized over the expected working life or the life expectancy of plan participants. Irrevocable settlement transactions that relieve the Company from responsibilities of providing retiree benefits and significantly eliminate the Company's related risk may result in recognition of gains or losses from accumulated other comprehensive loss. The plan's investment returns, interest expense, settlements and other non-service cost components of retiree benefits are reported in other income and expense included in earnings before income taxes. Customer 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. All deferred income taxes are classified as noncurrent in the statement of financial position. 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 less than a 50% likelihood of being sustained. The Company recognizes interest and penalties accrued related to uncertain tax positions in operating expense. 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. As described in Note H, the Company is prohibited from repurchasing its common shares through September 30, 2022. Stock Warrants The Company’s accounting for warrants issued to a lessee is determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments. The warrants issued to a lessee are recorded as a lease incentive asset using their fair value at the time of issuance. The lease incentive is amortized against revenues over the duration of related aircraft leases. The unexercised warrants that are classified in liabilities are re-measured to fair value at the end of each reporting period, resulting in a non-operating gain or loss. 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 and engine lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Customer payments for leased aircraft and equipment are typically paid monthly in advance. Revenues from contracts with customers are recognized under Accounting Standards Codification “Revenue from Contracts with Customers (Topic 606) ("ASC 606") to depict the transfer of goods or services to a customer at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. ACMI Services revenues are generated from airline service agreements and are typically based on hours or miles flown, the amount of aircraft operated and crew resources provided during a month. ACMI Services revenues are usually recognized over time using the invoice practical expedient based on the number of hours or miles operated and the number of crews and aircraft required for scheduled flights during the period. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are measured on a monthly basis and recorded to revenue in the corresponding month earned. Under CMI agreements, the Company's airlines have an obligation to provide integrated services including flight crews, aircraft maintenance and insurance for the customer's cargo network. Under ACMI agreements, the Company's airlines are also obligated to provide aircraft. Under CMI and ACMI agreements, customers are generally responsible for aviation fuel, landing fees, navigation fees and certain other flight expenses. When functioning as the customers' agent for arranging such services, the Company records amounts reimbursable from the customer as revenues net of the related expenses as the costs are incurred. Under charter agreements, the Company's airline is obligated to provide full services for one or more flights having specific origins and destinations. Under charter agreements in which the Company's airline is responsible for fuel, airport fees and all flight services, the related costs are recorded in operating expenses. Any sales commissions paid for charter agreements are generally expensed when incurred because the amortization period is less than one year. There are no customer rewards programs associated with services offered by the Company nor does the Company sell passenger tickets or issue freight bills. Customers for ACMI Services are invoiced monthly or more frequently. The Company's revenues for customer contracts for airframe maintenance and aircraft modification services that do not have an alternative use and for which the Company has an enforceable right to payment are generally recognized over time based on the percentage of costs completed. Services for airframe maintenance and aircraft modifications typically have project durations lasting a few weeks to several months. Other revenues for aircraft part sales, component repairs and line service are recognized at a point in time typically when the parts are delivered to the customer and the services are completed. For airframe maintenance, aircraft modifications and aircraft component repairs, contracts include assurance warranties that are not sold separately. The Company records revenue based on the estimated transaction price for its airframe maintenance and aircraft modification contracts using the costs to costs input method. For such services, the Company estimates the earnings on a contract as the difference between the expected revenue and estimated costs to complete a contract and recognizes revenues and earnings based on the proportion of costs incurred compared to the total estimated costs. Unexpected or abnormal costs that are not reflected in the price of a contract are excluded from calculations of progress toward contract obligations. The Company's estimates consider the timing and extent of the services, including the amount and rates of labor, materials and other resources required to perform the services. These production costs are specifically planned and monitored for regulatory compliance. The expenditure of these costs closely reflect the progress made toward completion of an airframe maintenance and aircraft modification project. The Company recognizes adjustments in estimated earnings on a contract under the cumulative catch-up method in which the impact of the adjustment on estimated earnings of a contract is recognized in the period the adjustment is identified. In 2021, the Company began to offer engine power coverage under separate customer contracts with certain lessees of CAM's General Electric powered Boeing 767-200 aircraft. Under this service, the Company is responsible for providing and maintaining engines to its lease customers as needed through a pool of engines. Revenues generated from engine power coverage contracts are recognized over time using the invoice practical expedient as engines are operated. Additionally, the Company acts as an agent for certain performance obligations for engine maintenance contracts with customers and recognizes the net amount of consideration retained. The transaction price for certain engine maintenance contracts are estimated and adjusted based upon expected engine cycles over the term of the contract and the estimated value of parts required for future services. The Company's ground services revenues include load transfer and sorting services, facility and equipment maintenance services. These revenues are recognized as the services are performed for the customer over time. Revenues from related facility and equipment maintenance services are recognized over time and at a point in time depending on the nature of the customer contracts. For customers that are not a governmental agency or department, the Company generally receives partial payment in advance of services, otherwise customer balances are typically paid within 30 to 60 days of service. Accounting Standards Updates Effective January 1, 2019, the Company adopted the FASB's ASU No. 2016-02, “Leases (Topic 842)” which superseded previous lease guidance ASC 840, Leases. Topic 842 is a new lease model that requires a company to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet. The Company adopted the standard using the modified retrospective approach that does not require the restatement of prior year financial statements. The adoption of Topic 842 did not have a material impact on the Company’s consolidated statement of operations and consolidated statement of cash flows. The adoption of Topic 842 resulted in the recognition of ROU assets and corresponding lease liabilities as of January 1, 2019 in the amount of $52.6 million for leases classified as operating leases. Topic 842 also applies to the Company's aircraft lease revenues, however, the adoption of Topic 842 did not have a significant impact on the Company's accounting for its customer lease agreements. The Company adopted the package of practical expedients and transition provisions available for expired or existing contracts, which allowed the Company to carryforward its historical assessments of 1) whether contracts are or contain leases, 2) lease classification, and 3) initial direct costs. Additionally, for real estate leases, the Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. The Company also elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Further, the Company elected the short-term lease exception policy, permitting it to exclude the recognition requirements for leases with terms of 12 months or less. See Note I for additional information about leases. In February 2018, the FASB issued ASU No. 2018-02 “Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income" ("ASU 2018-02"). ASU 2018-02 amends ASC 220, Income Statement - Reporting Comprehensive Income, to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. federal tax legislation known as the Tax Cuts and Jobs Act. ASU 2018-02 is effective for years beginning after December 15, 2018 and interim periods within those fiscal years. The Company elected to retain stranded tax effects in accumulated other comprehensive income. In June 2018, the FASB issued ASU No. 2018-07 “Improvements to Non-employee Share-based Payment Accounting" ("ASU 2018-07"). ASU 2018-07 amends ASC 718, "Compensation - Stock Compensation" ("ASC 718"), with the intent of simplifying the accounting for share-based payments granted to non-employees for goods and services and aligning the accounting for share-based payments granted to non-employees with the accounting for share-based payments granted to employees. The Company adopted ASU 2018-07 on January 1, 2019 using the modified retrospective approach as required. ASU 2018-07 replaced ASC 505-50, "Equity-Based Payments to Nonemployees" ("ASC 505-50") which was previously applied by the Company for warrants granted to Amazon.com, Inc. ("Amazon") as customer incentives. As a result of ASU 2018-07, the Company applied accounting guidance for financial instruments to the unvested warrants conditionally granted to Amazon in conjunction with an investment agreement reached with Amazon on December 22, 2018. Applying ASU 2018-07 as of January 1, 2019, through the modified retrospective approach, resulted in the recognition of $176.9 million for unvested warrant liabilities, $100.1 million for customer incentive assets and cumulative-effect adjustments of $71.4 million, net of tax, to reduce retained earnings for customer incentives that were not probable of being realized. The adoption of ASU 2018-07 on January 1, 2019 did not have an impact on the accounting for vested warrants. The Company adopted "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") on January 1, 2020. Under ASU 2016-13, an entity is required to utilize an “expected credit loss model” on certain financial instruments, including trade receivables. This model requires an entity to estimate expected credit losses over the lifetime of the financial asset including trade receivables that are not past due. Operating lease receivables are not within the scope of Topic 326. The Company's adoption of ASU 2016-13 did not have a material impact on the consolidated financial statements or related disclosures. In August 2020, the FASB issued ASU No. 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" ("ASU 2020-06"). This new standard removes the separation models for convertible debt with cash conversion or beneficial conversion features. It eliminates the "treasury stock" method for convertible instruments and requires application of the “if-converted” method for certain agreements. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective approach which is expected to result in the following adjustments: (in thousands) December 31, 2021 Adoption of ASU 2020-06 January 1, 2022 Balance Sheet line item: Net deferred tax asset — $ 5,527 $ 5,527 Convertible notes $ (231,646) $ (24,215) $ (255,861) Additional paid-in capital $ (1,074,286) $ 39,559 $ (1,0 |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2021 | |
Significant Customers [Abstract] | |
Significant Customers | SIGNIFICANT CUSTOMERS Three customers each account for a significant portion of the Company's consolidated revenues. The percentage of the Company's revenues for the Company's three largest customers, for the years ended December 31, 2021, 2020 and 2019 are as follows: Year Ended December 31, 2021 2020 2019 Customer Percentage of Revenue U.S. Department of Defense ("DoD") 26% 31% 34% Amazon 35% 30% 23% DHL 12% 12% 14% The accounts receivable from the Company's three largest customers as of December 31, 2021 and 2020 are as follows (in thousands): Year Ending December 31, 2021 2020 Customer Accounts Receivable DoD $ 57,998 $ 32,625 Amazon 68,429 55,997 DHL 9,111 10,471 DoD The Company is a provider of cargo and passenger airlift services to the DoD. The DoD awards flights to U.S. certificated airlines through annual contracts and through temporary "expansion" routes. DHL The Company has had long-term contracts with DHL Network Operations (USA), Inc. and its affiliates ("DHL") since August 2003. 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. 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. The Company also provides additional air cargo transportation services for DHL through ACMI agreements in which the Company provides the aircraft, crews, maintenance and insurance under a single contract. As of December 31, 2021, the Company leased 12 Boeing 767 freighter aircraft to DHL comprised of four Boeing 767-200 aircraft and eight Boeing 767-300 aircraft, with expirations between 2022 and 2028. In February 2022, the Company and DHL agreed to a six-year extension of its dry leases for five Boeing 767 freighters as well as an extension of the CMI agreements to operate aircraft through April 2028. Amazon The Company has been providing freighter aircraft, airline operations and services for cargo handling and logistical support for Amazon.com Services, LLC ("ASI"), successor to Amazon.com Services, Inc., a subsidiary of Amazon.com, Inc. ("Amazon") since September 2015. On March 8, 2016, the Company entered into an Air Transportation Services Agreement (the “ATSA”) with ASI, pursuant to which CAM leases Boeing 767 freighter aircraft to ASI. The ATSA also provides for the operation of aircraft by the Company’s airline subsidiaries, and the management of ground services by the Company's subsidiary LGSTX Services, Inc. ("LGSTX"). As of December 31, 2021, the Company leased 42 Boeing 767 freighter aircraft to ASI with lease expirations between 2023 and 2031. Amazon Investment Agreement In conjunction with the execution of the ATSA, the Company and Amazon entered into an Investment Agreement and a Stockholders Agreement on March 8, 2016. The Investment Agreement called for the Company to issue warrants in three tranches granting Amazon the right to acquire up to 19.9% of the Company’s outstanding common shares as described below. The first tranche of warrants, issued upon the execution of the Investment Agreement and all of which are now fully vested, granted Amazon the right to purchase approximately 12.81 million ATSG common shares, with the first 7.69 million common shares vesting upon issuance on March 8, 2016, and the remaining 5.12 million common shares vesting as the Company delivered additional aircraft leased under the ATSA. The second tranche of warrants, which were issued and vested on March 8, 2018, granted Amazon the right to purchase approximately 1.59 million ATSG common shares. The third tranche of warrants vested on September 8, 2020, and granted Amazon the right to purchase an additional 0.5 million ATSG common shares to bring Amazon’s ownership, after the exercise in full of the three tranches of warrants, to 19.9% of the Company’s pre-transaction outstanding common shares measured on a GAAP-diluted basis, adjusted for share issuances and repurchases by the Company following the date of the 2016 Investment Agreement and after giving effect to the warrants granted. The exercise price of the 14.9 million warrants issued under the 2016 Investment Agreement was $9.73 per share, which represents the closing price of ATSG’s common shares on February 9, 2016. Each of the three tranches of warrants were exercisable in accordance with their terms through March 8, 2021 (subject to extension if regulatory approvals, exemptions, authorizations, consents or clearances have not been obtained by such date). On March 5, 2021, Amazon exercised warrants from the 2016 Investment Agreement for 865,548 shares of the Company's common stock through a cashless exercise by forfeiting 480,047 warrants from the 2016 Investment Agreement as payment. For the cashless exchange, ATSG shares were valued at $27.27 per share, its volume-weighted average price for the previous 30 trading days immediately preceding March 5, 2021. Also on March 5, 2021, Amazon notified the Company of its intent to exercise warrants from the 2016 Investment agreement for 13,562,897 shares of the Company's common stock by paying $132.0 million of cash to the Company. This exercise was contingent upon the approval of the United States Department of Transportation, and the expiration or termination of any applicable waiting period pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976. After receiving all required regulatory approvals and clearances, Amazon remitted the funds to the Company on May 7, 2021, and the Company issued the corresponding shares of common stock, completing the warrant exercise. On December 22, 2018, the Company announced agreements with Amazon to 1) lease and operate ten additional Boeing 767-300 aircraft for ASI, 2) extend the term of the 12 Boeing 767-200 aircraft currently leased to ASI by two years to 2023 with an option for three more years, 3) extend the term of the eight Boeing 767-300 aircraft currently leased to ASI by three years to 2026 and 2027 with an option for three more years, and 4) extend the ATSA by five years through March 2026, with an option to extend for an additional three years. The Company leased all ten of the 767-300 aircraft in 2020. In conjunction with the commitment for ten additional 767 aircraft leases, extensions of twenty existing Boeing 767 aircraft leases and the ATSA described above, Amazon and the Company entered into another Investment Agreement on December 20, 2018. Pursuant to the 2018 Investment Agreement, Amazon was issued warrants for 14.8 million common shares. This group of warrants will expire if not exercised within seven years from their issuance date, in December of 2025 (subject to extension if regulatory approvals, exemptions, authorizations, consents or clearances have not been obtained by such date). The warrants have an exercise price of $21.53 per share. On May 29, 2020, ASI agreed to lease twelve more Boeing 767-300 aircraft from the Company. The first of these leases began in the second quarter of 2020 with the remaining eleven delivered in 2021. All twelve of these aircraft leases were for ten-year terms. Pursuant to the 2018 Investment Agreement, as a result of leasing 12 aircraft, Amazon was issued warrants for 7.0 million common shares, all of which have vested. These warrants will expire if not exercised by December 20, 2025 (subject to extension if regulatory approvals, exemptions, authorizations, consents or clearances have not been obtained by such date). The exercise price of these warrants is $20.40 per share. Issued and outstanding warrants are summarized below as of December 31, 2021: Common Shares in millions Exercise price Vested Non-Vested Expiration 2018 Investment Agreement $21.53 14.8 0.0 December 20, 2025 2018 Investment Agreement $20.40 7.0 0.0 December 20, 2025 Additionally, Amazon can earn incremental warrants rights up to 2.9 million common shares under the 2018 Investment Agreement by leasing up to five more cargo aircraft from the Company before January 2026. Incremental warrants granted for ASI’s commitment to any such future aircraft leases will have an exercise price based on the volume-weighted average price of the Company's shares during the 30 trading days immediately preceding the contractual commitment for each lease. For all outstanding warrants vested, Amazon may select a cashless conversion option. Assuming ATSG's stock price at the time of conversion is above the warrant exercise price, Amazon would receive fewer shares in exchange for any warrants exercised under the cashless option by surrendering the number of shares with a market value equal to the exercise price. The Company’s accounting for the warrants has been determined in accordance with the financial reporting guidance for financial instruments. Warrants classified as liabilities are marked to fair value at the end of each reporting period. The value of warrants is recorded as a customer incentive asset if it is probable of vesting at the time of grant and further changes in the fair value of warrant obligations are recorded to earnings. Upon a warrant vesting event, the customer incentive asset is amortized as a reduction of revenue over the duration of the related revenue contract. In accordance with the 2016 Investment Agreement, on September 8, 2020, the final number of shares issuable under the third tranche of warrants was determined to be 0.5 million common shares. As a result, under U.S. GAAP, the value of the entire warrant grant under the 2016 Investment Agreement was remeasured on September 8, 2020, and their fair value of $221 million was reclassified from balance sheet liabilities to paid-in-capital. In October 2020, upon the execution of the 10th and final aircraft lease of the December 2018 commitment, warrants for 14.8 million shares were remeasured on October 1, 2020, and their fair value of $154 million was reclassified from balance sheet liabilities to paid-in-capital. In December 2021, upon execution of the 12th and final aircraft lease of the May 2020 commitment, warrants for 7.0 million shares were remeasured on December 7, 2021, and their fair value of $82.4 million was reclassified from balance sheet liabilities to paid-in-capital. As of December 31, 2021, the Company's liabilities reflected warrants from the 2018 Amazon agreements having a fair value of $0.9 million. As of December 31, 2020, the Company's liabilities reflected warrants from the 2018 Amazon agreements having a fair value of $103.5 million. During the years ended December 31, 2021, 2020 and 2019, the re-measurements of warrants to fair value resulted in net non-operating gains of $20.2 million and losses of $95.5 million and $2.3 million before the effect of income taxes, respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL, INTANGIBLES AND EQUITY INVESTMENTS On November 9, 2018, the Company acquired OAI, its aircraft fleet and related companies, collectively referred to as "Omni." The purchase price was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess purchase price over the estimated fair value of net assets acquired was recorded as goodwill. Identified intangible assets included OAI's certificated authority granted by the FAA to operate as an airline and OAI's long term customer relationships. On February 1, 2019, the Company acquired a group of companies under common control, referred to as TriFactor. TriFactor resells material handling equipment and provides engineering design solutions for warehousing, retail distribution and e-commerce operations. Revenues and operating expenses include the activities of TriFactor for periods since its acquisition by the Company. The excess purchase price over the estimated fair value of net assets acquired was recorded as goodwill. The acquisition of TriFactor did not have a significant impact on the Company's financial statements or results of operations. As of December 31, 2021, 2020 and 2019, the goodwill amounts for reporting units that have goodwill were separately tested for impairment. To perform the goodwill impairment test, the Company determined the fair value of the reporting units using industry market multiples and discounted cash flows utilizing a market-derived cost of capital (level 3 fair value inputs). The goodwill amounts were not impaired. The carrying amounts of goodwill are as follows (in thousands): CAM ACMI Services All Other Total Carrying value as of December 31, 2019 $ 153,290 $ 234,571 $ 8,113 $ 395,974 Carrying value as of December 31, 2020 $ 153,290 $ 234,571 $ 8,113 $ 395,974 Carrying value as of December 31, 2021 $ 153,290 $ 234,571 $ 8,113 $ 395,974 The Company's acquired intangible assets are as follows (in thousands): Airline Amortizing Certificates Intangibles Total Carrying value as of December 31, 2019 $ 9,000 $ 122,680 $ 131,680 Amortization — (11,364) (11,364) Carrying value as of December 31, 2020 $ 9,000 $ 111,316 $ 120,316 Amortization — (11,165) (11,165) Carrying value as of December 31, 2021 $ 9,000 $ 100,151 $ 109,151 The airline certificates have an indefinite life and therefore are not amortized. The Company amortizes finite-lived intangible assets, including customer relationship and STC intangibles, over 5 to 18 remaining years. The Company recorded intangible amortization expense of $11.2 million, $11.4 million and $11.4 million for the years ending December 31, 2021, 2020 and 2019, respectively. Estimated amortization expense for the next five years is $12.5 million, $10.2 million, $10.2 million, $9.4 million and $4.5 million. Stock warrants issued to a lessee (see Note C) as an incentive are recorded as a lease incentive asset using their fair value at the time that the lessee has met its performance obligations and amortized against revenues over the duration of related aircraft leases. The Company's lease incentive granted to the lessee was as follows (in thousands): Lease Incentive Carrying value as of December 31, 2019 $ 146,678 Amortization (20,671) Carrying value as of December 31, 2020 $ 126,007 Amortization (23,094) Carrying value as of December 31, 2021 $ 102,913 The lease incentive began to amortize in April 2016 with the commencement of certain aircraft leases. As of December 31, 2021, based on the warrants granted to date, the Company expects to record amortization, as a reduction to the lease revenue, of $23.3 million, $18.7 million, $15.7 million, $15.8 million and $12.8 million for each of the next five years ending December 31, 2026. In January 2014, the Company acquired a 25 percent equity interest in West Atlantic AB of Gothenburg, Sweden ("West"). West, through its two airlines, West Atlantic UK and West Atlantic Sweden, operates a fleet of aircraft on behalf of European regional mail carriers and express logistics providers. In April 2019, West issued additional shares to a new investor in conjunction with a capital investment and purchase agreement which reduced the Company's ownership to approximately 10% and reduced the Company's influence over West. In 2020, the Company sold its remaining interest to the same investor. On August 3, 2017 the Company entered into a joint-venture agreement with Precision Aircraft Solutions, LLC, to develop a passenger-to-freighter conversion program for Airbus A321-200 aircraft. The Company anticipates approval of a supplemental type certificate from the FAA in 2021. The Company expects to make contributions equal to its 49% ownership percentage of the program's total costs over the next two years. During the 2021, 2020 and 2019 years, the Company contributed $2.5 million, $13.3 million and $12.3 million to the joint venture, respectively. The Company accounts for its investment in the aircraft conversion joint venture under the equity method of accounting, in which the carrying value of each investment is reduced for the Company's share of the non-consolidated affiliates operating results. The carrying value of West and the joint venture totaled $10.3 million and $10.7 million at December 31, 2021 and 2020, respectively, and are reflected in “Other Assets” in the Company’s consolidated balance sheets. The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis in accordance with GAAP. If the Company determines that an other-than-temporary decline in value has occurred, it recognizes an impairment loss, which is measured as the difference between the recorded carrying value and the fair value of the investment. The fair value is generally determined using an income approach based on discounted cash flows or using negotiated transaction values. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
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 comparable transactions. The fair value of the Company’s money market funds, convertible note, convertible note hedges and interest rate swaps are based on observable inputs (Level 2) from comparable market transactions. The fair value of the stock warrant obligations resulting from aircraft leased to ASI were determined using a Black-Scholes pricing model which considers various assumptions, including the Company’s common stock price, the volatility of the Company’s common stock, the expected dividend yield, exercise price and the risk-free interest rate (Level 2 inputs). The fair value of the stock warrant obligations for unvested stock warrants, conditionally granted to Amazon for the execution of incremental, future aircraft leases, include additional assumptions including the expected exercise prices and the probabilities that future leases will occur (Level 3 inputs). The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2021 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 30,042 $ — $ 30,042 Total Assets $ — $ 30,042 $ — $ 30,042 Liabilities Interest rate swap $ — $ (3,603) $ — $ (3,603) Stock warrant obligations — — (915) (915) Total Liabilities $ — $ (3,603) $ (915) $ (4,518) As of December 31, 2020 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 20,389 $ — $ 20,389 Interest rate swap — — — — Total Assets $ — $ 20,389 $ — $ 20,389 Liabilities Interest rate swap $ — $ (13,414) $ — $ (13,414) Stock warrant obligations — (9,058) (94,416) (103,474) Total Liabilities $ — $ (22,472) $ (94,416) $ (116,888) At December 31, 2020, vested stock warrants from the 2018 Amazon agreements having an exercise price of $20.40 were valued at $15.49 each, using a risk-free interest rate of 0.4% and a stock volatility of 40.0%, based on the time period corresponding with the expiration period of the warrants. At December 31, 2021 and 2020, unvested stock warrants from the 2018 Amazon agreement were valued using additional assumptions for an expected grant date, expected exercise price, the risk free rate to the expected grant date and the probabilities that future leases will occur. As a result of lower market interest rates compared to the stated interest rates of the Company’s fixed rate debt obligations, the fair value of the Company’s debt obligations, based on Level 2 observable inputs, was approximately $37.1 million more than the carrying value, which was $1,299.4 million at December 31, 2021. As of December 31, 2020, the fair value of the Company’s debt obligations was approximately $70.8 million less than the carrying value, which was $1,479.1 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, 2021 | |
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 $ 3,301,113 $ 2,856,142 Ground equipment 64,641 65,857 Leasehold improvements, facilities and office equipment 38,769 36,193 Aircraft modifications and projects in progress 206,917 231,451 3,611,440 3,189,643 Accumulated depreciation (1,481,506) (1,249,867) Property and equipment, net $ 2,129,934 $ 1,939,776 CAM owned aircraft with a carrying value of $1,404.4 million and $1,097.6 million that were under lease to external customers as of December 31, 2021 and 2020, respectively. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS Debt obligations consisted of the following (in thousands): December 31, December 31, 2021 2020 Unsubordinated term loans $ — $ 612,169 Revolving credit facility 360,000 140,000 Senior notes 697,162 493,376 Convertible notes 231,646 222,391 Other financing arrangements 10,555 11,141 Total debt obligations 1,299,363 1,479,077 Less: current portion (628) (13,746) Total long term obligations, net $ 1,298,735 $ 1,465,331 The Company utilizes a syndicated credit agreement ("Senior Credit Agreement") which includes the ability to execute term loans and a revolving credit facility. Prior to its amendment on April 6, 2021, the Senior Credit Agreement had a maturity date of November 2024 provided certain liquidity measures are maintained during 2024, an incremental accordion capacity based on debt ratios and a maximum revolver capacity of $600.0 million. The interest rate is a pricing premium added to LIBOR based upon the Company's debt to its earnings before interest, taxes, depreciation and amortization expenses ("EBITDA") as defined under the Senior Credit Agreement. On April 6, 2021, the Company amended the Senior Credit Agreement ("Amended Credit Agreement"). The Amended Credit Agreement: (i) temporarily increased the aggregate amount of the revolving credit facility from $600.0 million to $1 billion, and subsequently decreased the aggregate amount to $800.0 million on April 13, 2021, (ii) permitted increases of the revolving credit facility commitments and/or new tranches of term loans in an aggregate principal amount equal to the sum of $400 million plus the principal amount of indebtedness that could be incurred at the time of the increase that would not cause the Secured Leverage Ratio (as defined in the Amended Credit Agreement) to exceed 3.25 to 1.00 on a pro forma basis, (iii) modified the maturity date of the agreement from November 30, 2024, to April 6, 2026, with such extension of the maturity date being subject to (1) at the election of the Lenders, five one-year extensions and (2) an earlier springing maturity date of July 12, 2024, if, on such date, (a) more than $75,000,000 in aggregate principal amount of the Company's 1.125% senior convertible notes due 2024 remain outstanding and (b) the Company has less than $375,000,000 of liquidity at such time, (iv) removed the Collateral to Total Exposure Ratio (as defined in the agreements) as a financial covenant, and (v) prepaid the entire outstanding balance of all term loans at the time of the amendment. On January 28, 2020, the Company, through a subsidiary, completed a debt offering of $500.0 million in senior unsecured notes (the “Senior Notes”). The Senior Notes were sold only to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the “1933 Act”), and certain investors pursuant to Regulation S under the Securities Act. The Senior Notes are senior unsecured obligations that bear interest at a fixed rate of 4.75% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2020. The Senior Notes will mature on February 1, 2028. The Senior Notes contain customary events of default and certain covenants which are generally no more restrictive than those set forth in the Senior Credit Agreement. The net proceeds of $495.0 million from the Senior Notes were used to pay down the revolving credit facility. The Senior Notes do not require principal payments until maturity but prepayments are allowed without penalty beginning February 1, 2025. As of December 31, 2021, the unused revolving credit facility available to the Company at the trailing twelve-month EBITDA level was $424.7 million, and additional permitted indebtedness under the Senior Credit Agreement subject to compliance with other covenants, was limited to $250.0 million. On April 13, 2021, the Company, through a subsidiary, completed its offering of $200.0 million of additional notes ("Additional Notes") under the existing Senior Notes. The Additional Notes are fully fungible with the Senior Notes, treated as a single class for all purposes under the indenture governing the existing notes with the same terms as those of the existing notes (other than issue date and issue price). The proceeds of $205.5 million, net of scheduled interest payable, were used, in conjunction with draws from the revolving credit facility to repay the unsubordinated term loans. Upon retirement of the unsubordinated term loans, the company expensed debt issuance costs of $6.5 million related to the unsubordinated term loans. The balance of the Senior Notes is net of debt issuance costs of $7.8 million and $6.6 million as of December 31, 2021 and 2020, respectively. The balance of the unsubordinated term loans was net of debt issuance costs of $7.0 million as of December 31, 2020. Under the terms of the Senior Credit Agreement, interest rates are adjusted at least quarterly based on the Company's EBITDA, its outstanding debt level and prevailing LIBOR or prime rates. At the Company's debt-to-EBITDA ratio as December 31, 2021, the LIBOR based financing for the revolving credit facility bear variable interest rates of 1.11%, respectively. The Senior Credit Agreement is collateralized by certain of the Company's Boeing 777, 767 and 757 aircraft. Under the terms of the Senior Credit Agreement, the Company is required to maintain certain collateral coverage ratios set forth in 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 $100.0 million during any calendar year, provided the Company's total debt to EBITDA ratio is under 3.50 times and the secured debt to EBITDA ratio is under 3.0 times, after giving effect to the dividend or repurchase. The Senior Credit Agreement contains covenants, including a maximum permitted total EBITDA to debt ratio, a fixed charge covenant ratio requirement, limitations on certain additional indebtedness, and on guarantees of indebtedness. 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. In September 2017, the Company issued $258.8 million aggregate principal amount of 1.125% Convertible Senior Notes due 2024 ("Convertible Notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Convertible Notes bear interest at a rate of 1.125% per year payable semi-annually in arrears on April 15 and October 15 each year, beginning April 15, 2018. The Convertible Notes mature on October 15, 2024, unless repurchased or converted in accordance with their terms prior to such date. The Convertible Notes are unsecured indebtedness, subordinated to the Company's existing and future secured indebtedness and other liabilities, including trade payables. Conversion of the Convertible Notes can only occur upon satisfaction of certain conditions and during certain periods, beginning any calendar quarter commencing after December 31, 2017 and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon the occurrence of certain fundamental changes, holders of the Convertible Notes can require the Company to repurchase their notes at the cash repurchase price equal to the principal amount of the notes, plus any accrued and unpaid interest. The Convertible Notes may be settled in cash, the Company’s common shares or a combination of cash and the Company’s common shares, at the Company’s election. The initial conversion rate is 31.3475 common shares per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $31.90 per common share). If a “make-whole fundamental change” (as defined in the offering circular with the Convertible Notes) occurs, the Company will, in certain circumstances, increase the conversion rate for a specified period of time. In conjunction with the Convertible Notes, the Company purchased convertible note hedges under privately negotiated transactions for $56.1 million, having the same number of the Company's common shares, 8.1 million shares and same strike price of $31.90, that underlie the Convertible Notes. The convertible note hedges are expected to reduce the potential equity dilution with respect to the Company's common stock, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the Convertible Notes. The Company's current intent and policy is to settle all Note conversions through a combination settlement which satisfies the principal amount of the Convertible Notes outstanding with cash. The conversion feature of the Convertible Notes required bifurcation from the principal amount under the applicable accounting guidance. Settlement provisions of the Convertible Notes and the convertible note hedges required cash settlement of these instruments until the Company's shareholders increased the number of authorized shares of common stock to cover the full number of shares underlying the Convertible Notes. As a result, the conversion feature of the Convertible Notes and the convertible note hedges were initially accounted for as liabilities and assets, respectively, and marked to market at the end of each period. The fair value of the note conversion obligation at issuance was $57.4 million. On May 10, 2018, the Company's shareholders increased the number of authorized shares of common stock to cover the full number of shares underlying the Convertible Notes. The Company reevaluated the Convertible Notes and convertible note hedges under the applicable accounting guidance including ASC 815, "Derivatives and Hedging," and determined that the instruments, which meet the definition of derivative and are indexed to the Company's own stock, should be classified in shareholder's equity. On May 10, 2018, the fair value of the conversion feature of the Convertible Notes and the convertible note hedges of $51.3 million and $50.6 million, respectively, were reclassified to paid-in capital and are no longer remeasured to fair value. The net proceeds from the issuance of the Convertible Notes was approximately $252.3 million, after deducting initial issuance costs. These unamortized issuance costs and discount are being amortized to interest expense through October 2024, using an effective interest rate of approximately 5.15%. The carrying value of the Company's convertible debt is shown below. December 31, December 31, 2021 2020 Principal value, Convertible Senior Notes, due 2024 258,750 258,750 Unamortized issuance costs (2,889) (3,894) Unamortized discount (24,215) (32,465) Convertible debt 231,646 222,391 In conjunction with the offering of the Convertible Notes, the Company also sold warrants to the convertible note hedge counterparties in separate, privately negotiated warrant transactions at a higher strike price and for the same number of the Company’s common shares, subject to customary anti-dilution adjustments. The amount received for these warrants and recorded in Stockholders' Equity in the Company’s consolidated balance sheets was $38.5 million. These warrants could result in 8.1 million additional shares of the Company's common stock, if the Company's traded market price exceeds the strike price which is $41.35 per share and is subject to certain adjustments under the terms of the warrant transactions. The warrants could have a dilutive effect on the computation of earnings per share to the extent that the average traded market price of the Company's common shares for a reporting periods exceed the strike price. The scheduled cash principal payments for the Company's debt obligations, as of December 31, 2021, for the next five years are as follows (in thousands): Principal 2022 $ 628 2023 639 2024 259,400 2025 661 2026 360,672 2027 and beyond 707,305 Total principal cash payments 1,329,305 Less: unamortized issuance costs, premiums and discounts (29,942) Total debt obligations $ 1,299,363 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Payroll Support Programs During 2020, two of the Company's airline subsidiaries, OAI and ATI, received government funds totaling $75.8 million pursuant to payroll support program agreements under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). In February 2021, OAI was approved for $37.4 million of additional non-repayable government funds pursuant to a payroll support program agreement under the Consolidated Appropriations Act, 2021 (the “PSP Extension Law”). This grant was subsequently increased by $5.6 million. Further, in April 2021, OAI was approved for $40.0 million of additional non-repayable government funds pursuant to a payroll support program agreement under the American Rescue Plan Act of 2021 (the "American Rescue Plan"). The three programs are structured in a substantially similar manner. These grants are not required to be repaid if the Company complies with the provisions of the payroll support program agreements under CARES Act, the PSP Extension Law and the American Rescue Plan. The grants are recognized over the periods in which the Company recognizes the related expenses for which the grants are intended to compensate. The Company recognizes the grants as contra-expense during the periods in which passenger flight operations and combi flight operations levels are expected to be negatively impacted by the pandemic. During the year ended December 31, 2021 and 2020, the Company recognized $111.7 million and $47.2 million of the grants, respectively. The Company recognized all of the CARES Act funds by the end of 2021. In conjunction with the payroll support program agreements under the CARES Act, OAI and ATI agreed on behalf of themselves and ABX to refrain from conducting involuntary furloughs or reducing employee rates of pay or benefits through September 30, 2020. Thereafter, OAI agreed as a condition of receiving grants under the PSP Extension Law and the American Rescue Plan to refrain from conducting involuntary furloughs or reducing employee rates of pay or benefits through March 31, 2021, and September 30, 2021, respectively. Under the CARES Act, OAI and ATI agreed to limit, on behalf of themselves and certain affiliates, executive compensation through March 24, 2022; maintain certain air transportation service through March 1, 2022 as may be required by the U.S. Department of Transportation pursuant to its authority under the CARES Act; and maintain certain internal controls and records relating to the funds and comply with certain reporting requirements. OAI further agreed as a condition of receiving grants under the PSP Extension Law and thereafter the American Rescue Plan, to limit executive compensation through October 1, 2022 and April 1, 2023, respectively. In addition, the Company may not pay dividends or repurchase its shares through September 30, 2022. Lease Commitments The Company leases property, aircraft, aircraft engines and other types of equipment under operating leases. The Company's airlines operate six freighter aircraft provided by customers and four passenger aircraft leased from external companies. Property leases include hangars, warehouses, offices and other space at certain airports with fixed rent payments and lease terms ranging from one month to six years. The Company is obligated to pay the lessor for maintenance, real estate taxes, insurance and other operating expenses on certain property leases. These expenses are variable and are not included in the measurement of the lease asset or lease liability. These expenses are recognized as variable lease expense when incurred and are not material. Equipment leases include ground support and industrial equipment as well as computer hardware with fixed rent payments and terms of one month to five years. The Company records the initial right-to-use asset and lease liability at the present value of lease payments scheduled during the lease term. For the years ended December 31, 2021 and 2020, non-cash transactions to recognize right-to-use assets and corresponding liabilities for new leases were $14.7 million and $46.5 million, respectively. Unless the rate implicit in the lease is readily determinable, the Company discounts the lease payments using an estimated incremental borrowing rate at the time of lease commencement. The Company estimates the incremental borrowing rate based on the information available at the lease commencement date, including the rate the Company could borrow for a similar amount, over a similar lease term with similar collateral. The Company's weighted-average discount rate for operating leases at December 31, 2021 and 2020 was 2.4% and 2.9%, respectively. Leases often include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Although not material, the amount of such options is reflected below in the maturity of operating lease liabilities table. Lease expense is recognized on a straight-line basis over the lease term. Our weighted-average remaining lease term is 3.8 years and 4.5 years as of December 31, 2021 and 2020, respectively. For the year ended December 31, 2021 and 2020, cash payments against operating lease liabilities were $20.5 million and $17.3 million, respectively. As of December 31, 2021, the maturities of operating lease liabilities are as follows (in thousands): Operating Leases 2022 $ 20,024 2023 17,382 2024 13,880 2025 10,126 2026 4,478 2027 and beyond 42 Total undiscounted cash payments 65,932 Less: amount representing interest (2,762) Present value of future minimum lease payments 63,170 Less: current obligations under leases 18,783 Long-term lease obligation $ 44,387 Purchase Commitments The Company has agreements with vendors for the conversion of Boeing 767-300, Airbus A321 and Airbus A330 passenger aircraft into a standard configured freighter aircraft. The conversions primarily consist of the installation of a standard cargo door and loading system. As of December 31, 2021, the Company owned twelve Boeing 767-300 aircraft and one Airbus A321-200 aircraft that were in or awaiting the modification process. As of December 31, 2021, the Company has agreements to purchase eleven more Boeing 767-300 passenger aircraft and two Airbus A321-200 passenger aircraft through 2024. As of December 31, 2021, the Company's commitments to acquire and convert aircraft totaled $391.8 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 addition to the foregoing matters, the Company is also a party to legal proceedings in various federal and state jurisdictions from time to time 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 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, 2021, the flight crewmember employees of ABX, ATI and Omni and flight attendant employees of ATI and Omni were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of ABX International Brotherhood of Teamsters 5.2% ATI Air Line Pilots Association 9.3% OAI International Brotherhood of Teamsters 6.1% ATI Association of Flight Attendants 0.6% OAI Association of Flight Attendants 6.2% |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [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 crewmembers, 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 obligations. 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. Funded Status (in thousands): Pension Plans Post-retirement 2021 2020 2021 2020 Accumulated benefit obligation $ 839,267 $ 873,826 $ 3,142 $ 3,484 Change in benefit obligation Obligation as of January 1 $ 873,826 $ 779,031 $ 3,484 $ 3,707 Service cost — — 95 139 Interest cost 22,387 27,880 42 91 Plan transfers 3,125 2,895 — — Benefits paid (36,109) (34,218) (250) (362) Curtailments and settlement — (2,435) — (17) Actuarial (gain) loss (23,962) 100,673 (229) (74) Obligation as of December 31 $ 839,267 $ 873,826 $ 3,142 $ 3,484 Change in plan assets Fair value as of January 1 $ 843,895 $ 746,763 $ — $ — Actual gain (loss) on plan assets 37,626 120,057 — — Plan transfers 3,125 2,895 — — Employer contributions 1,658 10,833 250 362 Benefits paid (36,109) (34,218) (250) (362) Settlement payments $ — $ (2,435) $ — $ — Fair value as of December 31 $ 850,195 $ 843,895 $ — $ — Funded status Overfunded plans, net asset $ 30,867 $ 3,447 $ — $ — Underfunded plans Current liabilities $ (1,345) $ (1,348) $ (399) $ (415) Non-current liabilities $ (18,594) $ (32,030) $ (2,743) $ (3,069) 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, 2021, 2020 and 2019, are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plan 2021 2020 2019 2021 2020 2019 Service cost $ — $ — $ — $ 95 $ 139 107 Interest cost 22,387 27,880 31,299 42 91 148 Expected return on plan assets (47,502) (44,673) (37,907) — — — Curtailments and settlements — (424) — — (17) — Amortization of prior service cost — — — — — — Amortization of net (gain) loss 7,058 3,763 15,528 186 124 172 Net periodic benefit cost (income) $ (18,057) $ (13,454) $ 8,920 $ 323 $ 337 $ 427 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 2021 2020 2021 2020 Unrecognized prior service cost $ — $ — $ — $ — Unrecognized net actuarial loss 90,675 111,820 418 833 Accumulated other comprehensive loss $ 90,675 $ 111,820 $ 418 $ 833 The amounts of unrecognized net actuarial loss recorded in accumulated other comprehensive loss that is expected to be recognized as components of net periodic benefit expense during 2022 is $1.3 million and less than $0.1 million for the pension plans and the post-retirement healthcare plans, respectively. Assumptions Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows: Pension Plans 2021 2020 2019 Discount rate - crewmembers 2.90% 2.55% 3.65% Discount rate - non-crewmembers 3.00% 2.75% 3.70% Expected return on plan assets 5.65% 5.75% 6.10% 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 2.00%, 1.30% and 4.10% for pilots at December 31, 2021, 2020 and 2019, respectively. 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 affect the post-retirement healthcare obligations. Plan Assets The weighted-average asset allocations by asset category are as shown below: Composition of Plan Assets Asset category 2021 2020 Cash 3 % 1 % Equity securities 28 % 30 % Fixed income securities 69 % 69 % 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%; cash – 0% to 10%. 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 2021 and 2020, the Company made contributions to its defined benefit plans of $1.7 million and $10.8 million, respectively. The Company estimates that its contributions in 2022 will be approximately $1.3 million for its defined benefit pension plans and $0.4 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 Post-retirement 2022 $ 40,186 $ 399 2023 43,474 481 2024 45,838 489 2025 47,906 483 2026 48,747 425 Years 2027 to 2031 246,110 1,134 Fair Value Measurements The pension plan assets are stated 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. The pension plan assets measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2021 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 29,451 $ 29,451 Corporate stock — — — Mutual funds — 236,647 236,647 Fixed income investments — 584,094 584,094 Benefit Plan Assets $ — $ 850,192 $ 850,192 Investments measured at net asset value ("NAV") 3 Total benefit plan assets $ 850,195 As of December 31, 2020 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 5,055 $ 5,055 Corporate stock 19,852 501 20,353 Mutual funds — 237,063 237,063 Fixed income investments 545 580,476 581,021 Benefit Plan Assets $ 20,397 $ 823,095 $ 843,492 Investments measured at net asset value ("NAV") 403 Total benefit plan assets $ 843,895 Investments that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. These investments include hedge funds, private equity and real estate funds. Management’s estimates are based on information provided by the fund managers or general partners of those funds. Hedge Funds and Private Equity—These investments are not readily tradable 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. These assets have been valued using NAV as a practical expedient. The following table presents investments measured at fair value based on NAV per share as a practical expedient: Fair Value Redemption Frequency Redemption Notice Period Unfunded Commitments As of December 31, 2021 Hedge Funds & Private Equity $ 3 (1) (2) 90 days $ — Real Estate — (3) 90 days — Total investments measured at NAV $ 3 $ — As of December 31, 2020 Hedge Funds & Private Equity $ 403 (1) (2) 90 days $ — Real Estate — (3) 90 days — Total investments measured at NAV $ 403 $ — (1) Quarterly - hedge funds (2) None - private equity (3) Monthly 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 $19.5 million, $15.4 million and $12.6 million for the years ended December 31, 2021, 2020 and 2019, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company's deferred income taxes reflect the value of its net operating loss carryforwards and the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their amounts used for income tax calculations. At December 31, 2021, the Company had cumulative net operating loss carryforwards (“NOL CFs”) for federal income tax purposes of approximately $413.9 million, which do not expire but whose use may be limited to 80% of taxable income in any given year. The deferred tax asset balance includes $4.7 million net of a $0.3 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, the timing of amortization related to Amazon warrants and cash contributions for its benefit plans. At December 31, 2021 and 2020, the Company determined that, based upon projections of taxable income, it was more likely than not that the Federal NOL CF’s will be utilized, accordingly, no allowance against these deferred tax assets was recorded. The Company had alternative minimum tax credits of $3.1 million which were recovered in 2020. The significant components of the deferred income tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31 2021 2020 Deferred tax assets: Net operating loss carryforward and federal credits $ 93,294 $ 71,762 Operating lease obligation 13,266 14,472 Warrants 32,075 33,940 Post-retirement employee benefits — 7,140 Employee benefits other than post-retirement 6,919 8,545 Inventory reserve 2,714 2,288 Deferred revenue 10,918 12,608 Other 8,789 9,366 Deferred tax assets 167,975 160,121 Deferred tax liabilities: Accelerated depreciation (327,321) (257,765) Post-retirement employee benefits (1,330) — Partnership items (6,014) (6,044) Operating lease assets (13,029) (14,264) Goodwill and intangible assets (14,553) (9,877) State taxes (19,158) (11,143) Valuation allowance against deferred tax assets (3,861) (2,293) Deferred tax liabilities (385,266) (301,386) Net deferred tax (liability) $ (217,291) $ (141,265) The following summarizes the Company’s income tax provisions (benefits) (in thousands): Years Ended December 31 2021 2020 2019 Current taxes: Federal $ — $ (1,332) $ 1,332 Foreign — — 1 State 2,402 1,235 138 Deferred taxes: Federal 65,027 19,701 14,155 Foreign — — — State 4,795 (1,209) (3,677) Change in federal statutory tax rates — — — Total deferred tax expense 69,822 18,492 10,478 Total income tax expense (benefit) from continuing operations $ 72,224 $ 16,314 $ 11,589 Income tax expense (benefit) from discontinued operations $ 722 $ 2,081 $ 360 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 2021 2020 2019 Statutory federal tax rate 21.0 % 21.0 % 21.0 % Foreign income taxes — % — % — % State income taxes, net of federal tax benefit 1.8 % 5.1 % 1.4 % Tax effect of non-deductible warrant expense — % 16.6 % (2.9) % Tax effect of other non-deductible expenses 0.5 % 3.2 % 1.7 % Change to state statutory tax rates — % (5.4) % (5.4) % Other 0.7 % (1.1) % 0.4 % Effective income tax rate 24.0 % 39.4 % 16.2 % The income tax deductibility of the warrant expense is less than the expense required by GAAP because for tax purposes, the warrants are valued at a different time and under a different valuation method. 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 2021 2020 2019 Statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.8 % 1.8 % 1.8 % Change in federal statutory tax rates — % — % — % Effective income tax rate 22.8 % 22.8 % 22.8 % 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, 2021, 2020 and 2019, 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 2021, 2020 and 2019. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company maintains derivative instruments for protection from fluctuating interest rates. The table below provides information about the Company’s interest rate swaps (in thousands): December 31, 2021 December 31, 2020 Expiration Date Stated Notional Market Notional Market May 5, 2021 1.090 % — — 13,125 (41) May 30, 2021 1.703 % — — 13,125 (80) December 31, 2021 2.706 % — — 138,750 (3,551) March 31, 2022 1.900 % 50,000 (221) 50,000 (1,116) March 31, 2022 1.950 % 75,000 (341) 75,000 (1,722) March 31, 2023 2.425 % 133,125 (3,041) 140,625 (6,904) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATIONThe 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 and in May 2015. 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 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 have been granted time-based awards that vest after a period of 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 2021 2020 2019 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of period 1,085,023 $ 17.14 963,832 $ 17.67 969,928 $ 15.89 Granted 273,845 26.65 437,054 18.85 302,596 23.22 Converted (316,430) 22.76 (278,163) 21.34 (291,064) 17.14 Expired (58,650) 24.79 (34,100) 19.40 (7,900) 23.78 Forfeited (5,600) 23.31 (3,600) 21.62 (9,728) 23.37 Outstanding at end of period 978,188 $ 17.49 1,085,023 $ 17.14 963,832 $ 17.67 Vested 414,949 $ 11.43 460,685 $ 13.00 476,389 $ 11.11 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 $26.69, $18.39 and $22.80 for 2021, 2020 and 2019, 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 $26.50, $20.41 and $24.75 for 2021, 2020 and 2019, respectively. The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2021, 2020 and 2019 using daily stock prices and using the following variables: 2021 2020 2019 Risk-free interest rate 0.3% 0.7% 2.5% Volatility 39.7% 35.0% 35.6% For the years ended December 31, 2021, 2020 and 2019, the Company recorded expense of $7.4 million, $7.5 million and $7.0 million, respectively, for stock incentive awards. At December 31, 2021, there was $6.7 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, 2021, none of the awards were convertible, 357,499 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 1,245,713 additional outstanding shares of the Company’s common stock depending on service, performance and market results through December 31, 2023. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | COMMON STOCK AND EARNINGS PER SHARE Earnings per Share The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts): December 31 2021 2020 2019 Numerator: Earnings from continuing operations - basic $ 228,980 $ 25,079 $ 59,983 Gain from stock warrants revaluation, net of tax (15,564) — (6,219) Earnings from continuing operations - diluted $ 213,416 $ 25,079 $ 53,764 Denominator: Weighted-average shares outstanding for basic earnings per share 68,853 59,128 58,899 Common equivalent shares: Effect of stock-based compensation awards and warrants 7,363 803 10,449 Weighted-average shares outstanding assuming dilution 76,216 59,931 69,348 Basic earnings per share from continuing operations $ 3.33 $ 0.42 $ 1.02 Diluted earnings per share from continuing operations $ 2.80 0.42 $ 0.78 Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 283,139 shares, 365,100 shares and 317,600 shares of restricted stock for 2021, 2020 and 2019, respectively, which are accounted for as part of diluted weighted average shares outstanding in diluted earnings per share. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT AND REVENUE INFORMATION The Company operates in two reportable segments. The CAM segment consists of the Company's aircraft and engine leasing operations. The ACMI Services segment consists of the Company's airline operations, including CMI agreements as well as ACMI, charter service and passenger service agreements that the Company has with its customers. The Company's aircraft maintenance services, aircraft modification services, ground services and other support services, are not large enough to constitute reportable segments and are combined in All other. Intersegment revenues are valued at arms-length market rates. The Company's segment information from continuing operations is presented below (in thousands): Year Ended December 31 2021 2020 2019 Total revenues: CAM $ 370,287 $ 308,661 $ 285,276 ACMI Services 1,185,128 1,147,279 1,078,288 All other 375,571 334,300 314,014 Eliminate inter-segment revenues (196,704) (219,665) (225,395) Total $ 1,734,282 $ 1,570,575 $ 1,452,183 Customer revenues: CAM $ 273,288 $ 205,047 $ 168,106 ACMI Services 1,185,113 1,147,252 1,078,143 All other 275,881 218,276 205,934 Total $ 1,734,282 $ 1,570,575 $ 1,452,183 The Company's external customer revenues from other activities for the years ending December 31, 2021, 2020 and 2019 are presented below (in thousands): Year Ended December 31, 2021 2020 2019 Aircraft maintenance, modifications and part sales $ 127,378 $ 114,425 $ 117,772 Ground services 99,133 73,949 69,596 Other, including aviation fuel sales 49,370 29,902 18,566 Total customer revenues $ 275,881 $ 218,276 $ 205,934 The Company recognized $3.0 million of non lease revenue that was reported in deferred revenue at the beginning of the year, compared to $2.8 million in 2020. Current deferred revenue of $8.3 million and $3.0 million as of December 31, 2021 and 2020, respectively, for contracts with customers is derived from other activities as described above. Revenue related to deferred revenue will be recognized based on percentage of completion. Customers are required to pay deposits and may be required to make milestone payments for these services resulting in deferred revenue. Long-term contract assets were $0.8 million as of December 31, 2021 compared to $0.0 million as of December 31, 2020. Cash will be collected over the term of the multi-year agreement based on number cycles per period while revenue is recognized as parts are provided for engine maintenance services. This may result in a contract asset or liability based on the timing of engine maintenance services. CAM's leases do not contain residual guarantees. Approximately 13% of CAM's leases to external customers contain purchase options at projected market values. As of December 31, 2021, minimum future payments from external customers for leased aircraft and equipment were scheduled to be $250.8 million, $206.3 million, $156.3 million, $146.4 million and $128.3 million, respectively, for the next 5 years ending December 31, 2026 and $311.3 million thereafter. CAM's external customer revenues for non-lease activities were $18.6 million and $6.2 million during 2021 and 2020 respectively for engine services and the sale of spare engine parts. ACMI Services external customer revenues included approximately $13.2 million, $13.2 million and $9.5 million for the years ended December 31, 2021, 2020 and 2019, respectively, for the rental income of specific aircraft included in the consideration paid by customers under certain contracts. The Company had revenues of approximately $701.9 million, $699.2 million and $716.9 million for 2021, 2020 and 2019, respectively, derived primarily from aircraft leases in foreign countries, routes with flights departing from or arriving in foreign countries or aircraft maintenance and modification services performed in foreign countries. All revenues from the CMI agreement with DHL and the ATSA ag reement with ASI are attributed to U.S. operations. As of December 31, 2021 and 2020, the Company had 21 and 22 aircraft, respectively, deployed outside of the United States. The Company's other segment information from continuing operations is presented below (in thousands): Year Ended December 31, 2021 2020 2019 Depreciation and amortization expense: CAM $ 203,675 $ 172,003 $ 158,470 ACMI Services 101,541 101,748 96,191 All other 3,232 4,316 2,871 Total $ 308,448 $ 278,067 $ 257,532 Interest expense CAM 38,160 39,304 38,300 ACMI Services 18,066 20,542 24,950 Segment earnings (loss): CAM $ 106,161 $ 77,424 $ 68,643 ACMI Services 158,733 114,128 32,055 All other 112 (5,933) 13,422 Net unallocated interest expense (2,525) (2,825) (3,024) Impairment of aircraft and related assets — (39,075) — Net gain (loss) on financial instruments 29,979 (100,771) (12,302) Transaction fees — — (373) Debt issuance costs (6,505) — — Other non-service components of retiree benefit costs, net 17,827 12,032 (9,404) Loss from non-consolidated affiliate (2,577) (13,587) (17,445) Pre-tax earnings from continuing operations $ 301,205 $ 41,393 $ 71,572 The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other. December 31 2021 2020 2019 Assets: CAM $ 2,218,012 $ 2,037,628 $ 1,857,687 ACMI Services 872,311 811,516 830,620 All other 177,012 152,601 131,871 Total $ 3,267,335 $ 3,001,745 $ 2,820,178 During 2021, the Company had capital expenditures for property and equipment of $86.5 million and $415.8 million for the ACMI Services and CAM, respectively. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONSThe Company's results of discontinued operations consist primarily of changes in liabilities related to benefits for former employees previously associated with ABX's former hub operation for DHL. The Company may incur expenses and cash outlays in the future related to pension obligations, self-insurance reserves for medical expenses and wage loss for former employees. For the years ending December 31, 2021 and 2020, the Company had liabilities of $3.8 million and $7.2 million, respectively, for employee compensation and benefits. During 2021, 2020 and 2019, pre-tax earnings from discontinued operations were $3.2 million, $9.1 million and $1.6 million, respectively. |
Summary of Financial Statemen_2
Summary of Financial Statement Preparation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 any of the Company's defined benefit pension or post-retirement health care plans 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 re-measured 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 re-measuring plan assets and benefit obligations, are recorded to accumulated comprehensive loss and amortized into expense using a corridor approach. The Company's corridor approach amortizes into earnings variances in plan assets and benefit obligations that are a result of the previous measurement assumptions 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. Cost adjustments for plan amendments are also deferred and amortized over the expected working life or the life expectancy of plan participants. Irrevocable settlement transactions that relieve the Company from responsibilities of providing retiree benefits and significantly eliminate the Company's related risk may result in recognition of gains or losses from accumulated other comprehensive loss. The plan's investment returns, interest expense, settlements and other non-service cost components of retiree benefits are reported in other income and expense included in earnings before income taxes. |
Security and Maintenance Deposits [Table Text Block] | Customer 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. |
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. Inter-company balances and transactions are eliminated. The consolidated financial statements 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, stock warrants and other financial instruments, 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 C), other airlines, delivery companies and freight forwarders. The Company estimates expected credit losses over the lifetime of the customer receivables that are not past due. The Company also 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 allowances for amounts that are not expected to be received. Account balances are written off against the allowances 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. 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 assessment requires an estimation of fair value of each reporting unit that has goodwill. The goodwill impairment test requires a comparison of the fair value of the reporting unit to its respective carrying value. If the carrying value of a reporting unit is less than its fair value no impairment exists. If the carrying amount of a reporting unit is higher than its fair value an impairment loss is recorded for the difference and charged to operations. |
Property and Equipment | Property and Equipment Property and equipment held for use is stated at cost, net of any impairment recorded. The Company accounts for planned major airframe and engine maintenance costs using the built-in overhaul method for the aircraft it owns, except the costs of airframe maintenance for Boeing 767-200 aircraft operated by ABX which are expensed as they are incurred. Under the built-in overhaul method, costs of planned airframe maintenance and engine overhauls are capitalized and depreciated by the Company's airlines over the expected period until the next scheduled major maintenance event is required. Major, n on-scheduled airframe and engine maintenance costs that extend the life of the asset are also capitalized. The capitalized costs of airframe maintenance and engine overhauls for aircraft leased to customers, are depreciated over the life of the lease with consideration for the customer's return obligations. Scheduled maintenance for the aircraft engines, including Boeing 777 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 life of the overhaul. Certain engines that power the Boeing 767 aircraft are maintained under "power by the cycle" agreements with engine maintenance providers. Under these agreements, the engines are maintained by the service provider for a fixed fee per cycle. As a result, the cost of maintenance for these engines is generally expensed as flights occur and the initial engine overhaul value is depreciated over the life of the engine. In September of 2021, a power by the cycle maintenance agreement for many of the Company's Boeing 767-200 engines expired. As a result, the Company began to depreciate the remaining carrying value of these engine overhauls over the time remaining until the next overhaul. This resulted in additional depreciation expense of $2.1 million before the effects income taxes during 2021. Property and equipment is depreciated over an asset's estimated useful life, or if related to a lease, over the lesser of the asset’s useful life or lease term. Assets are typically depreciated on a straight-line basis except for certain engines which are depreciated based on their usage levels during the period. Depreciable lives are summarized as follows: Boeing 777, 767 and 757 aircraft and flight equipment 7 to 18 years Ground equipment 2 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. The cost and accumulated depreciation of disposed property and equipment and expired major maintenance are removed from the accounts with any related gain or loss reflected in earnings from operations. For aircraft leased 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 it is less than probable that a deposit will be returned, it is recognized as additional maintenance expense. 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. |
Capitalized Interest | Capitalized InterestInterest costs incurred while aircraft are being modified are capitalized as an additional cost of the aircraft. |
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 $6.1 million and $9.3 million at December 31, 2021 and December 31, 2020, 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. All deferred income taxes are classified as noncurrent in the statement of financial position. 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 less than a 50% likelihood of being sustained. The Company recognizes interest and penalties accrued related to uncertain tax positions in operating expense. |
Purchase of Common Stock [Policy Text Block] | 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. |
Issuance of Stock Warrants [Policy Text Block] | Stock WarrantsThe Company’s accounting for warrants issued to a lessee is determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments. The warrants issued to a lessee are recorded as a lease incentive asset using their fair value at the time of issuance. The lease incentive is amortized against revenues over the duration of related aircraft leases. The unexercised warrants that are classified in liabilities are re-measured to fair value at the end of each reporting period, resulting in a non-operating gain or loss. |
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 and engine lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Customer payments for leased aircraft and equipment are typically paid monthly in advance. Revenues from contracts with customers are recognized under Accounting Standards Codification “Revenue from Contracts with Customers (Topic 606) ("ASC 606") to depict the transfer of goods or services to a customer at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services. ACMI Services revenues are generated from airline service agreements and are typically based on hours or miles flown, the amount of aircraft operated and crew resources provided during a month. ACMI Services revenues are usually recognized over time using the invoice practical expedient based on the number of hours or miles operated and the number of crews and aircraft required for scheduled flights during the period. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are measured on a monthly basis and recorded to revenue in the corresponding month earned. Under CMI agreements, the Company's airlines have an obligation to provide integrated services including flight crews, aircraft maintenance and insurance for the customer's cargo network. Under ACMI agreements, the Company's airlines are also obligated to provide aircraft. Under CMI and ACMI agreements, customers are generally responsible for aviation fuel, landing fees, navigation fees and certain other flight expenses. When functioning as the customers' agent for arranging such services, the Company records amounts reimbursable from the customer as revenues net of the related expenses as the costs are incurred. Under charter agreements, the Company's airline is obligated to provide full services for one or more flights having specific origins and destinations. Under charter agreements in which the Company's airline is responsible for fuel, airport fees and all flight services, the related costs are recorded in operating expenses. Any sales commissions paid for charter agreements are generally expensed when incurred because the amortization period is less than one year. There are no customer rewards programs associated with services offered by the Company nor does the Company sell passenger tickets or issue freight bills. Customers for ACMI Services are invoiced monthly or more frequently. The Company's revenues for customer contracts for airframe maintenance and aircraft modification services that do not have an alternative use and for which the Company has an enforceable right to payment are generally recognized over time based on the percentage of costs completed. Services for airframe maintenance and aircraft modifications typically have project durations lasting a few weeks to several months. Other revenues for aircraft part sales, component repairs and line service are recognized at a point in time typically when the parts are delivered to the customer and the services are completed. For airframe maintenance, aircraft modifications and aircraft component repairs, contracts include assurance warranties that are not sold separately. The Company records revenue based on the estimated transaction price for its airframe maintenance and aircraft modification contracts using the costs to costs input method. For such services, the Company estimates the earnings on a contract as the difference between the expected revenue and estimated costs to complete a contract and recognizes revenues and earnings based on the proportion of costs incurred compared to the total estimated costs. Unexpected or abnormal costs that are not reflected in the price of a contract are excluded from calculations of progress toward contract obligations. The Company's estimates consider the timing and extent of the services, including the amount and rates of labor, materials and other resources required to perform the services. These production costs are specifically planned and monitored for regulatory compliance. The expenditure of these costs closely reflect the progress made toward completion of an airframe maintenance and aircraft modification project. The Company recognizes adjustments in estimated earnings on a contract under the cumulative catch-up method in which the impact of the adjustment on estimated earnings of a contract is recognized in the period the adjustment is identified. In 2021, the Company began to offer engine power coverage under separate customer contracts with certain lessees of CAM's General Electric powered Boeing 767-200 aircraft. Under this service, the Company is responsible for providing and maintaining engines to its lease customers as needed through a pool of engines. Revenues generated from engine power coverage contracts are recognized over time using the invoice practical expedient as engines are operated. Additionally, the Company acts as an agent for certain performance obligations for engine maintenance contracts with customers and recognizes the net amount of consideration retained. The transaction price for certain engine maintenance contracts are estimated and adjusted based upon expected engine cycles over the term of the contract and the estimated value of parts required for future services. The Company's ground services revenues include load transfer and sorting services, facility and equipment maintenance services. These revenues are recognized as the services are performed for the customer over time. Revenues from related facility and equipment maintenance services are recognized over time and at a point in time depending on the nature of the customer contracts. For customers that are not a governmental agency or department, the Company generally receives partial payment in advance of services, otherwise customer balances are typically paid within 30 to 60 days of service. |
New Accounting Pronouncements | Accounting Standards Updates Effective January 1, 2019, the Company adopted the FASB's ASU No. 2016-02, “Leases (Topic 842)” which superseded previous lease guidance ASC 840, Leases. Topic 842 is a new lease model that requires a company to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet. The Company adopted the standard using the modified retrospective approach that does not require the restatement of prior year financial statements. The adoption of Topic 842 did not have a material impact on the Company’s consolidated statement of operations and consolidated statement of cash flows. The adoption of Topic 842 resulted in the recognition of ROU assets and corresponding lease liabilities as of January 1, 2019 in the amount of $52.6 million for leases classified as operating leases. Topic 842 also applies to the Company's aircraft lease revenues, however, the adoption of Topic 842 did not have a significant impact on the Company's accounting for its customer lease agreements. The Company adopted the package of practical expedients and transition provisions available for expired or existing contracts, which allowed the Company to carryforward its historical assessments of 1) whether contracts are or contain leases, 2) lease classification, and 3) initial direct costs. Additionally, for real estate leases, the Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. The Company also elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Further, the Company elected the short-term lease exception policy, permitting it to exclude the recognition requirements for leases with terms of 12 months or less. See Note I for additional information about leases. In February 2018, the FASB issued ASU No. 2018-02 “Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income" ("ASU 2018-02"). ASU 2018-02 amends ASC 220, Income Statement - Reporting Comprehensive Income, to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. federal tax legislation known as the Tax Cuts and Jobs Act. ASU 2018-02 is effective for years beginning after December 15, 2018 and interim periods within those fiscal years. The Company elected to retain stranded tax effects in accumulated other comprehensive income. In June 2018, the FASB issued ASU No. 2018-07 “Improvements to Non-employee Share-based Payment Accounting" ("ASU 2018-07"). ASU 2018-07 amends ASC 718, "Compensation - Stock Compensation" ("ASC 718"), with the intent of simplifying the accounting for share-based payments granted to non-employees for goods and services and aligning the accounting for share-based payments granted to non-employees with the accounting for share-based payments granted to employees. The Company adopted ASU 2018-07 on January 1, 2019 using the modified retrospective approach as required. ASU 2018-07 replaced ASC 505-50, "Equity-Based Payments to Nonemployees" ("ASC 505-50") which was previously applied by the Company for warrants granted to Amazon.com, Inc. ("Amazon") as customer incentives. As a result of ASU 2018-07, the Company applied accounting guidance for financial instruments to the unvested warrants conditionally granted to Amazon in conjunction with an investment agreement reached with Amazon on December 22, 2018. Applying ASU 2018-07 as of January 1, 2019, through the modified retrospective approach, resulted in the recognition of $176.9 million for unvested warrant liabilities, $100.1 million for customer incentive assets and cumulative-effect adjustments of $71.4 million, net of tax, to reduce retained earnings for customer incentives that were not probable of being realized. The adoption of ASU 2018-07 on January 1, 2019 did not have an impact on the accounting for vested warrants. The Company adopted "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13") on January 1, 2020. Under ASU 2016-13, an entity is required to utilize an “expected credit loss model” on certain financial instruments, including trade receivables. This model requires an entity to estimate expected credit losses over the lifetime of the financial asset including trade receivables that are not past due. Operating lease receivables are not within the scope of Topic 326. The Company's adoption of ASU 2016-13 did not have a material impact on the consolidated financial statements or related disclosures. In August 2020, the FASB issued ASU No. 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" ("ASU 2020-06"). This new standard removes the separation models for convertible debt with cash conversion or beneficial conversion features. It eliminates the "treasury stock" method for convertible instruments and requires application of the “if-converted” method for certain agreements. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective approach which is expected to result in the following adjustments: (in thousands) December 31, 2021 Adoption of ASU 2020-06 January 1, 2022 Balance Sheet line item: Net deferred tax asset — $ 5,527 $ 5,527 Convertible notes $ (231,646) $ (24,215) $ (255,861) Additional paid-in capital $ (1,074,286) $ 39,559 $ (1,034,727) Retained earnings $ (309,430) $ (20,871) $ (330,301) After adopting ASU 2020-06, the Company's Convertible Notes due 2024 will be reflected entirely as a liability as the embedded conversion feature is no longer separately presented within stockholders' equity, which will also eliminate the non-cash discount. Accordingly, the Company expects that earnings will no longer reflect the discount amortization expense which was $6.4 million of interest expense, net of income taxes during 2021. After giving effect for the adoption, the effective interest rate on the Convertible Senior Notes is 1.5%. ASU 2020-06 requires the application of the more dilutive if-converted method when calculating the impact of the Convertible Notes on earnings per diluted share. The adoption of ASU 2020-06 does not change the treatment of shares to be delivered by the convertible note hedges (see Note F) purchased by the Company that are designed to offset the shares issued to settle its Convertible Notes, which are anti-dilutive and not reflected in earning per diluted share. Accordingly, although the new guidance will not impact the Company's past or future net cash flows, we anticipate that the adoption will result in a reduction in reported earnings per diluted share. |
Summary of Financial Statemen_3
Summary of Financial Statement Preparation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Property and equipment, to be held and used, is summarized as follows (in thousands): December 31, December 31, Flight equipment $ 3,301,113 $ 2,856,142 Ground equipment 64,641 65,857 Leasehold improvements, facilities and office equipment 38,769 36,193 Aircraft modifications and projects in progress 206,917 231,451 3,611,440 3,189,643 Accumulated depreciation (1,481,506) (1,249,867) Property and equipment, net $ 2,129,934 $ 1,939,776 |
Schedule of Depreciable lives by Asset type | Depreciable lives are summarized as follows: Boeing 777, 767 and 757 aircraft and flight equipment 7 to 18 years Ground equipment 2 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Concentration Risk [Line Items] | |
Schedule of Stockholders' Equity Note, Warrants or Rights | Issued and outstanding warrants are summarized below as of December 31, 2021: Common Shares in millions Exercise price Vested Non-Vested Expiration 2018 Investment Agreement $21.53 14.8 0.0 December 20, 2025 2018 Investment Agreement $20.40 7.0 0.0 December 20, 2025 |
Accounts Receivable [Member] | |
Concentration Risk [Line Items] | |
Schedule of Revenue by Major Customers by Reporting Segments | The accounts receivable from the Company's three largest customers as of December 31, 2021 and 2020 are as follows (in thousands): Year Ending December 31, 2021 2020 Customer Accounts Receivable DoD $ 57,998 $ 32,625 Amazon 68,429 55,997 DHL 9,111 10,471 |
Revenue, Product and Service Benchmark [Member] | |
Concentration Risk [Line Items] | |
Schedule of Revenue by Major Customers by Reporting Segments | The percentage of the Company's revenues for the Company's three largest customers, for the years ended December 31, 2021, 2020 and 2019 are as follows: Year Ended December 31, 2021 2020 2019 Customer Percentage of Revenue U.S. Department of Defense ("DoD") 26% 31% 34% Amazon 35% 30% 23% DHL 12% 12% 14% |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Lease Incentive Intangible [Table Text Block] | The Company's lease incentive granted to the lessee was as follows (in thousands): Lease Incentive Carrying value as of December 31, 2019 $ 146,678 Amortization (20,671) Carrying value as of December 31, 2020 $ 126,007 Amortization (23,094) Carrying value as of December 31, 2021 $ 102,913 |
Schedule of Goodwill | The carrying amounts of goodwill are as follows (in thousands): CAM ACMI Services All Other Total Carrying value as of December 31, 2019 $ 153,290 $ 234,571 $ 8,113 $ 395,974 Carrying value as of December 31, 2020 $ 153,290 $ 234,571 $ 8,113 $ 395,974 Carrying value as of December 31, 2021 $ 153,290 $ 234,571 $ 8,113 $ 395,974 |
Schedule Intangible Assets by Major Class | The Company's acquired intangible assets are as follows (in thousands): Airline Amortizing Certificates Intangibles Total Carrying value as of December 31, 2019 $ 9,000 $ 122,680 $ 131,680 Amortization — (11,364) (11,364) Carrying value as of December 31, 2020 $ 9,000 $ 111,316 $ 120,316 Amortization — (11,165) (11,165) Carrying value as of December 31, 2021 $ 9,000 $ 100,151 $ 109,151 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 30,042 $ — $ 30,042 Total Assets $ — $ 30,042 $ — $ 30,042 Liabilities Interest rate swap $ — $ (3,603) $ — $ (3,603) Stock warrant obligations — — (915) (915) Total Liabilities $ — $ (3,603) $ (915) $ (4,518) As of December 31, 2020 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 20,389 $ — $ 20,389 Interest rate swap — — — — Total Assets $ — $ 20,389 $ — $ 20,389 Liabilities Interest rate swap $ — $ (13,414) $ — $ (13,414) Stock warrant obligations — (9,058) (94,416) (103,474) Total Liabilities $ — $ (22,472) $ (94,416) $ (116,888) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property and equipment, to be held and used, is summarized as follows (in thousands): December 31, December 31, Flight equipment $ 3,301,113 $ 2,856,142 Ground equipment 64,641 65,857 Leasehold improvements, facilities and office equipment 38,769 36,193 Aircraft modifications and projects in progress 206,917 231,451 3,611,440 3,189,643 Accumulated depreciation (1,481,506) (1,249,867) Property and equipment, net $ 2,129,934 $ 1,939,776 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Convertible Debt [Table Text Block] | The carrying value of the Company's convertible debt is shown below. December 31, December 31, 2021 2020 Principal value, Convertible Senior Notes, due 2024 258,750 258,750 Unamortized issuance costs (2,889) (3,894) Unamortized discount (24,215) (32,465) Convertible debt 231,646 222,391 |
Schedule of Long-term Debt Instruments | Debt obligations consisted of the following (in thousands): December 31, December 31, 2021 2020 Unsubordinated term loans $ — $ 612,169 Revolving credit facility 360,000 140,000 Senior notes 697,162 493,376 Convertible notes 231,646 222,391 Other financing arrangements 10,555 11,141 Total debt obligations 1,299,363 1,479,077 Less: current portion (628) (13,746) Total long term obligations, net $ 1,298,735 $ 1,465,331 |
Schedule of Maturities of Long-term Debt | The scheduled cash principal payments for the Company's debt obligations, as of December 31, 2021, for the next five years are as follows (in thousands): Principal 2022 $ 628 2023 639 2024 259,400 2025 661 2026 360,672 2027 and beyond 707,305 Total principal cash payments 1,329,305 Less: unamortized issuance costs, premiums and discounts (29,942) Total debt obligations $ 1,299,363 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of December 31, 2021, the maturities of operating lease liabilities are as follows (in thousands): Operating Leases 2022 $ 20,024 2023 17,382 2024 13,880 2025 10,126 2026 4,478 2027 and beyond 42 Total undiscounted cash payments 65,932 Less: amount representing interest (2,762) Present value of future minimum lease payments 63,170 Less: current obligations under leases 18,783 Long-term lease obligation $ 44,387 |
Schedules of Concentration of Risk, by Risk Factor | As of December 31, 2021, the flight crewmember employees of ABX, ATI and Omni and flight attendant employees of ATI and Omni were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of ABX International Brotherhood of Teamsters 5.2% ATI Air Line Pilots Association 9.3% OAI International Brotherhood of Teamsters 6.1% ATI Association of Flight Attendants 0.6% OAI Association of Flight Attendants 6.2% |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | Funded Status (in thousands): Pension Plans Post-retirement 2021 2020 2021 2020 Accumulated benefit obligation $ 839,267 $ 873,826 $ 3,142 $ 3,484 Change in benefit obligation Obligation as of January 1 $ 873,826 $ 779,031 $ 3,484 $ 3,707 Service cost — — 95 139 Interest cost 22,387 27,880 42 91 Plan transfers 3,125 2,895 — — Benefits paid (36,109) (34,218) (250) (362) Curtailments and settlement — (2,435) — (17) Actuarial (gain) loss (23,962) 100,673 (229) (74) Obligation as of December 31 $ 839,267 $ 873,826 $ 3,142 $ 3,484 Change in plan assets Fair value as of January 1 $ 843,895 $ 746,763 $ — $ — Actual gain (loss) on plan assets 37,626 120,057 — — Plan transfers 3,125 2,895 — — Employer contributions 1,658 10,833 250 362 Benefits paid (36,109) (34,218) (250) (362) Settlement payments $ — $ (2,435) $ — $ — Fair value as of December 31 $ 850,195 $ 843,895 $ — $ — Funded status Overfunded plans, net asset $ 30,867 $ 3,447 $ — $ — Underfunded plans Current liabilities $ (1,345) $ (1,348) $ (399) $ (415) Non-current liabilities $ (18,594) $ (32,030) $ (2,743) $ (3,069) |
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, 2021, 2020 and 2019, are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plan 2021 2020 2019 2021 2020 2019 Service cost $ — $ — $ — $ 95 $ 139 107 Interest cost 22,387 27,880 31,299 42 91 148 Expected return on plan assets (47,502) (44,673) (37,907) — — — Curtailments and settlements — (424) — — (17) — Amortization of prior service cost — — — — — — Amortization of net (gain) loss 7,058 3,763 15,528 186 124 172 Net periodic benefit cost (income) $ (18,057) $ (13,454) $ 8,920 $ 323 $ 337 $ 427 |
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 2021 2020 2021 2020 Unrecognized prior service cost $ — $ — $ — $ — Unrecognized net actuarial loss 90,675 111,820 418 833 Accumulated other comprehensive loss $ 90,675 $ 111,820 $ 418 $ 833 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The amounts of unrecognized net actuarial loss recorded in accumulated other comprehensive loss that is expected to be recognized as components of net periodic benefit expense during 2022 is $1.3 million and less than $0.1 million for the pension plans and the post-retirement healthcare plans, respectively. |
Schedule of Assumptions Used | Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows: Pension Plans 2021 2020 2019 Discount rate - crewmembers 2.90% 2.55% 3.65% Discount rate - non-crewmembers 3.00% 2.75% 3.70% Expected return on plan assets 5.65% 5.75% 6.10% |
Schedule of Allocation of Plan Assets | The weighted-average asset allocations by asset category are as shown below: Composition of Plan Assets Asset category 2021 2020 Cash 3 % 1 % Equity securities 28 % 30 % Fixed income securities 69 % 69 % 100 % 100 % The pension plan assets measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2021 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 29,451 $ 29,451 Corporate stock — — — Mutual funds — 236,647 236,647 Fixed income investments — 584,094 584,094 Benefit Plan Assets $ — $ 850,192 $ 850,192 Investments measured at net asset value ("NAV") 3 Total benefit plan assets $ 850,195 As of December 31, 2020 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 5,055 $ 5,055 Corporate stock 19,852 501 20,353 Mutual funds — 237,063 237,063 Fixed income investments 545 580,476 581,021 Benefit Plan Assets $ 20,397 $ 823,095 $ 843,492 Investments measured at net asset value ("NAV") 403 Total benefit plan assets $ 843,895 |
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 Post-retirement 2022 $ 40,186 $ 399 2023 43,474 481 2024 45,838 489 2025 47,906 483 2026 48,747 425 Years 2027 to 2031 246,110 1,134 |
Schedule of Level Three Defined Benefit Plan Assets Roll Forward | The following table presents investments measured at fair value based on NAV per share as a practical expedient: Fair Value Redemption Frequency Redemption Notice Period Unfunded Commitments As of December 31, 2021 Hedge Funds & Private Equity $ 3 (1) (2) 90 days $ — Real Estate — (3) 90 days — Total investments measured at NAV $ 3 $ — As of December 31, 2020 Hedge Funds & Private Equity $ 403 (1) (2) 90 days $ — Real Estate — (3) 90 days — Total investments measured at NAV $ 403 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 and 2020 are as follows (in thousands): December 31 2021 2020 Deferred tax assets: Net operating loss carryforward and federal credits $ 93,294 $ 71,762 Operating lease obligation 13,266 14,472 Warrants 32,075 33,940 Post-retirement employee benefits — 7,140 Employee benefits other than post-retirement 6,919 8,545 Inventory reserve 2,714 2,288 Deferred revenue 10,918 12,608 Other 8,789 9,366 Deferred tax assets 167,975 160,121 Deferred tax liabilities: Accelerated depreciation (327,321) (257,765) Post-retirement employee benefits (1,330) — Partnership items (6,014) (6,044) Operating lease assets (13,029) (14,264) Goodwill and intangible assets (14,553) (9,877) State taxes (19,158) (11,143) Valuation allowance against deferred tax assets (3,861) (2,293) Deferred tax liabilities (385,266) (301,386) Net deferred tax (liability) $ (217,291) $ (141,265) |
Schedule of Components of Income Tax Expense (Benefit) | The following summarizes the Company’s income tax provisions (benefits) (in thousands): Years Ended December 31 2021 2020 2019 Current taxes: Federal $ — $ (1,332) $ 1,332 Foreign — — 1 State 2,402 1,235 138 Deferred taxes: Federal 65,027 19,701 14,155 Foreign — — — State 4,795 (1,209) (3,677) Change in federal statutory tax rates — — — Total deferred tax expense 69,822 18,492 10,478 Total income tax expense (benefit) from continuing operations $ 72,224 $ 16,314 $ 11,589 Income tax expense (benefit) from discontinued operations $ 722 $ 2,081 $ 360 |
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 2021 2020 2019 Statutory federal tax rate 21.0 % 21.0 % 21.0 % Foreign income taxes — % — % — % State income taxes, net of federal tax benefit 1.8 % 5.1 % 1.4 % Tax effect of non-deductible warrant expense — % 16.6 % (2.9) % Tax effect of other non-deductible expenses 0.5 % 3.2 % 1.7 % Change to state statutory tax rates — % (5.4) % (5.4) % Other 0.7 % (1.1) % 0.4 % Effective income tax rate 24.0 % 39.4 % 16.2 % |
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 2021 2020 2019 Statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.8 % 1.8 % 1.8 % Change in federal statutory tax rates — % — % — % Effective income tax rate 22.8 % 22.8 % 22.8 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 December 31, 2020 Expiration Date Stated Notional Market Notional Market May 5, 2021 1.090 % — — 13,125 (41) May 30, 2021 1.703 % — — 13,125 (80) December 31, 2021 2.706 % — — 138,750 (3,551) March 31, 2022 1.900 % 50,000 (221) 50,000 (1,116) March 31, 2022 1.950 % 75,000 (341) 75,000 (1,722) March 31, 2023 2.425 % 133,125 (3,041) 140,625 (6,904) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Equity Instruments Other Than Options, Activity | The table below summarizes award activity. Year Ended December 31 2021 2020 2019 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of period 1,085,023 $ 17.14 963,832 $ 17.67 969,928 $ 15.89 Granted 273,845 26.65 437,054 18.85 302,596 23.22 Converted (316,430) 22.76 (278,163) 21.34 (291,064) 17.14 Expired (58,650) 24.79 (34,100) 19.40 (7,900) 23.78 Forfeited (5,600) 23.31 (3,600) 21.62 (9,728) 23.37 Outstanding at end of period 978,188 $ 17.49 1,085,023 $ 17.14 963,832 $ 17.67 Vested 414,949 $ 11.43 460,685 $ 13.00 476,389 $ 11.11 |
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 2021, 2020 and 2019 using daily stock prices and using the following variables: 2021 2020 2019 Risk-free interest rate 0.3% 0.7% 2.5% Volatility 39.7% 35.0% 35.6% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts): December 31 2021 2020 2019 Numerator: Earnings from continuing operations - basic $ 228,980 $ 25,079 $ 59,983 Gain from stock warrants revaluation, net of tax (15,564) — (6,219) Earnings from continuing operations - diluted $ 213,416 $ 25,079 $ 53,764 Denominator: Weighted-average shares outstanding for basic earnings per share 68,853 59,128 58,899 Common equivalent shares: Effect of stock-based compensation awards and warrants 7,363 803 10,449 Weighted-average shares outstanding assuming dilution 76,216 59,931 69,348 Basic earnings per share from continuing operations $ 3.33 $ 0.42 $ 1.02 Diluted earnings per share from continuing operations $ 2.80 0.42 $ 0.78 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |
Segment Reporting, Additional Information about Entity's Reportable Segments | The Company's other segment information from continuing operations is presented below (in thousands): Year Ended December 31, 2021 2020 2019 Depreciation and amortization expense: CAM $ 203,675 $ 172,003 $ 158,470 ACMI Services 101,541 101,748 96,191 All other 3,232 4,316 2,871 Total $ 308,448 $ 278,067 $ 257,532 Interest expense CAM 38,160 39,304 38,300 ACMI Services 18,066 20,542 24,950 Segment earnings (loss): CAM $ 106,161 $ 77,424 $ 68,643 ACMI Services 158,733 114,128 32,055 All other 112 (5,933) 13,422 Net unallocated interest expense (2,525) (2,825) (3,024) Impairment of aircraft and related assets — (39,075) — Net gain (loss) on financial instruments 29,979 (100,771) (12,302) Transaction fees — — (373) Debt issuance costs (6,505) — — Other non-service components of retiree benefit costs, net 17,827 12,032 (9,404) Loss from non-consolidated affiliate (2,577) (13,587) (17,445) Pre-tax earnings from continuing operations $ 301,205 $ 41,393 $ 71,572 |
Schedule of Segment Reporting Information, by Segment | The Company's segment information from continuing operations is presented below (in thousands): Year Ended December 31 2021 2020 2019 Total revenues: CAM $ 370,287 $ 308,661 $ 285,276 ACMI Services 1,185,128 1,147,279 1,078,288 All other 375,571 334,300 314,014 Eliminate inter-segment revenues (196,704) (219,665) (225,395) Total $ 1,734,282 $ 1,570,575 $ 1,452,183 Customer revenues: CAM $ 273,288 $ 205,047 $ 168,106 ACMI Services 1,185,113 1,147,252 1,078,143 All other 275,881 218,276 205,934 Total $ 1,734,282 $ 1,570,575 $ 1,452,183 |
Reconciliation of Assets from Segment to Consolidated | The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other. December 31 2021 2020 2019 Assets: CAM $ 2,218,012 $ 2,037,628 $ 1,857,687 ACMI Services 872,311 811,516 830,620 All other 177,012 152,601 131,871 Total $ 3,267,335 $ 3,001,745 $ 2,820,178 |
Revenue from External Customers by Products and Services | The Company's external customer revenues from other activities for the years ending December 31, 2021, 2020 and 2019 are presented below (in thousands): Year Ended December 31, 2021 2020 2019 Aircraft maintenance, modifications and part sales $ 127,378 $ 114,425 $ 117,772 Ground services 99,133 73,949 69,596 Other, including aviation fuel sales 49,370 29,902 18,566 Total customer revenues $ 275,881 $ 218,276 $ 205,934 |
Summary of Financial Statemen_4
Summary of Financial Statement Preparation and Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Restricted Cash | $ 5.9 | $ 0.4 | |
Capitalized interest | 3.5 | 2.8 | $ 3.7 |
Other liabilities for self-insured reserves | $ 6.1 | $ 9.3 | |
Property, Plant and Equipment | Property and equipment, to be held and used, is summarized as follows (in thousands): December 31, December 31, Flight equipment $ 3,301,113 $ 2,856,142 Ground equipment 64,641 65,857 Leasehold improvements, facilities and office equipment 38,769 36,193 Aircraft modifications and projects in progress 206,917 231,451 3,611,440 3,189,643 Accumulated depreciation (1,481,506) (1,249,867) Property and equipment, net $ 2,129,934 $ 1,939,776 | ||
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 | 2 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 | 7 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 ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | |||
Accounts receivable | $ 205,399,000 | $ 153,511,000 | |
Fair Value Adjustment of Warrants | 20,200,000 | (95,500,000) | $ (2,300,000) |
Warrant liability | 915,000 | 103,474,000 | |
reclassification of liability to equity | $ 82,392,000 | $ 375,083,000 | |
DHL [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated revenues | 12.00% | 12.00% | 14.00% |
DHL [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 9,111,000 | $ 10,471,000 | |
Amazon [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated revenues | 35.00% | 30.00% | 23.00% |
Amazon [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 68,429,000 | $ 55,997,000 | |
US Military [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of consolidated revenues | 26.00% | 31.00% | 34.00% |
US Military [Member] | Accounts Receivable [Member] | |||
Concentration Risk [Line Items] | |||
Accounts receivable | $ 57,998,000 | $ 32,625,000 | |
Amazon Warrant C [Member] [Member] | |||
Concentration Risk [Line Items] | |||
Fair value warrants issued | 15.49 | ||
Class of Warrant or Right, Outstanding | 14,800 | ||
Warrant liability | $ (900,000) | (103,500,000) | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 21.53 | ||
Class of Warrant or Right, Unissued | 0 | ||
Amazon Warrant Subsequent [Member] | |||
Concentration Risk [Line Items] | |||
Class of Warrant or Right, Outstanding | 7,000 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 20.40 | ||
Class of Warrant or Right, Unissued | 0 | ||
Amazon Warrant AB and C | |||
Concentration Risk [Line Items] | |||
reclassification of liability to equity | $ 82,392,000 | $ 375,083,000 | |
Amazon C Warrants | |||
Concentration Risk [Line Items] | |||
reclassification of liability to equity | $ 82,400,000 |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | $ 395,974 | $ 395,974 | $ 395,974 |
Carrying value, ending balance | 395,974 | 395,974 | |
ACMI Services [Member] | |||
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 234,571 | 234,571 | 234,571 |
Carrying value, ending balance | 234,571 | 234,571 | |
CAM [Member] | |||
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 153,290 | 153,290 | 153,290 |
Carrying value, ending balance | 153,290 | 153,290 | |
MRO Services [Member] [Member] | |||
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 8,113 | 8,113 | $ 8,113 |
Carrying value, ending balance | $ 8,113 | $ 8,113 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Schedule Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||
Below Market Lease, Amortization Income, Next Twelve Months | $ 23,300 | ||
Incentive to Lessee | 102,913 | $ 126,007 | $ 146,678 |
Amortization of Lease Incentives | (23,094) | (20,671) | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying value at beginning of period | 111,316 | 122,680 | |
Carrying value at beginning of period | 120,316 | 131,680 | |
Amortization expense | (11,165) | (11,364) | |
Carrying value at end of period | 100,151 | 111,316 | 122,680 |
Carrying value at end of period | 109,151 | 120,316 | 131,680 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 12,500 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 10,200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 10,200 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 9,400 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 4,500 | ||
Below Market Lease, Amortization Income, Year Two | 18,700 | ||
Below Market Lease, Amortization Income, Year Three | 15,700 | ||
Below Market Lease, Amortization Income, Year Four | 15,800 | ||
Below Market Lease, Amortization Income, Year Five | 12,800 | ||
ACMI Services [Member] | Customer Relationships [Member] | |||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||
Amortization expense | (11,200) | (11,400) | (11,400) |
ACMI Services [Member] | Airline Certificates [Member] | |||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying value at beginning of period | 9,000 | 9,000 | |
Amortization expense | 0 | 0 | |
Carrying value at end of period | $ 9,000 | $ 9,000 | $ 9,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles Investment in West Atlantic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Interest in Joint Venture | $ 2,500 | $ 13,300 | $ 12,300 |
Equity Method Investments | 10,300 | 10,700 | |
Goodwill | $ 395,974 | $ 395,974 | $ 395,974 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles Investment A321 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |||
Payments to Acquire Interest in Joint Venture | $ 2.5 | $ 13.3 | $ 12.3 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2021 | May 10, 2018 | Sep. 25, 2017 | |
Liabilities, Fair Value Disclosure [Abstract] | ||||
Warrant liability | $ 103,474,000 | $ 915,000 | ||
Fair Value, Recurring [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash equivalents - money market | 20,389,000 | 30,042,000 | ||
Derivative Asset | 0 | |||
Total Assets | 20,389,000 | 30,042,000 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | (13,414,000) | |||
Warrant liability | (103,474,000) | (915,000) | ||
Total Liabilities | (116,888,000) | (4,518,000) | ||
Carrying value, debt | 1,479,100,000 | 1,299,400,000 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash equivalents - money market | 0 | 0 | ||
Derivative Asset | 0 | |||
Total Assets | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | 0 | 0 | ||
Warrant liability | 0 | 0 | ||
Total Liabilities | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash equivalents - money market | 20,389,000 | 30,042,000 | ||
Derivative Asset | 0 | |||
Convertible note hedge fair value | $ 50,600,000 | $ 56,100,000 | ||
Total Assets | 20,389,000 | 30,042,000 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | (13,414,000) | (3,603,000) | ||
Note conversion obligation fair value | $ 51,300,000 | $ 57,400,000 | ||
Warrant liability | (9,058,000) | 0 | ||
Total Liabilities | (22,472,000) | (3,603,000) | ||
Difference between fair value and carrying value, debt | 70,800,000 | 37,100,000 | ||
Fair Value, Recurring [Member] | Level 3 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash equivalents - money market | 0 | 0 | ||
Derivative Asset | 0 | |||
Total Assets | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | 0 | 0 | ||
Warrant liability | (94,416,000) | (915,000) | ||
Total Liabilities | (94,416,000) | (915,000) | ||
Fair Value, Recurring [Member] | Total [Member] | ||||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | (3,603,000) | |||
Amazon Warrant C [Member] [Member] | ||||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Warrant liability | (103,500,000) | $ (900,000) | ||
Fair value warrants issued | $ 15.49 | |||
Amazon Warrant C [Member] [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.40% | |||
Amazon Warrant C [Member] [Member] | Measurement Input, Price Volatility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 40.00% |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 3,611,440 | $ 3,189,643 |
Accumulated depreciation | (1,481,506) | (1,249,867) |
Property and equipment, net | 2,129,934 | 1,939,776 |
Flight Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating Leases, Future Minimum Payments Receivable, Current | 250,800 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 3,301,113 | 2,856,142 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 206,300 | |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 156,300 | |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 146,400 | |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 128,300 | |
Ground equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 64,641 | 65,857 |
facilities, leasehold improvements and office equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 38,769 | 36,193 |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 206,917 | $ 231,451 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
Asset Impairment Charges | $ 0 | $ 39,075 | $ 0 |
Flight Equipment [Member] | |||
Operating Leases, Future Minimum Payments Receivable [Abstract] | |||
Minimum future lease payments, Due within next 12 months | 250,800 | ||
Minimum future lease payments, Due within next 2 years | 206,300 | ||
Minimum future lease payments, Due within next 3 years | 156,300 | ||
Minimum future lease payments, Due within next 4 years | 146,400 | ||
Minimum future lease payments, Due within next 5 years | 128,300 | ||
CAM [Member] | Flight Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Leased aircraft, carrying value | $ 1,404,400 | $ 1,097,600 |
Debt Obligations (Schedule of L
Debt Obligations (Schedule of Long Term Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total long term obligations | $ 1,299,363 | $ 1,479,077 |
Unsecured Debt | 697,162 | 493,376 |
Convertible Debt | 231,646 | 222,391 |
Other Long-term Debt | 10,555 | 11,141 |
Less: current portion | (628) | (13,746) |
Total long term obligations, net | 1,298,735 | 1,465,331 |
Unsubordinated term loan [Member] | ||
Debt Instrument [Line Items] | ||
Total long term obligations | 0 | 612,169 |
Revolving credit facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long term obligations | 360,000 | 140,000 |
Line of Credit Facility, Maximum Borrowing Capacity | 250,000 | |
line of credit, increase in maximum borrowing capacity | $ 800,000 | $ 600,000 |
Debt Obligations (Schedule of_2
Debt Obligations (Schedule of Long Term Debt Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2017 | $ 628 | |
2018 | 639 | |
2019 | 259,400 | |
2020 | 661 | |
2021 | 360,672 | |
2022 and beyond | 707,305 | |
Total long term obligations | 1,299,363 | $ 1,479,077 |
Long Term Debt excluding issuance costs and discounts | 1,329,305 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (29,942) |
Debt Obligations (Narrative) (D
Debt Obligations (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Apr. 13, 2021 | Jan. 28, 2020 | May 10, 2018 | Sep. 25, 2017 | |
Debt Instrument [Line Items] | |||||||
Long term obligations | $ 1,299,363 | $ 1,479,077 | |||||
Unsecured Debt | 697,162 | 493,376 | |||||
Proceeds from Issuance of Unsecured Debt | 207,400 | 500,000 | $ 0 | ||||
Convertible Debt | 231,646 | 222,391 | |||||
Aircraft loans [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | 7,000 | ||||||
Unsecured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | 7,800 | 6,600 | |||||
Unsubordinated term loan and Revolving credit facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum amount of common stock authorized for repurchase | 100,000 | ||||||
Unsubordinated term loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term obligations | 0 | 612,169 | |||||
Revolving credit facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long term obligations | 360,000 | 140,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 250,000 | ||||||
Variable interest rate | 1.11% | ||||||
Credit facility, revolving credit loan, remaining borrowing capacity | $ 424,700 | ||||||
line of credit, increase in maximum borrowing capacity | 800,000 | 600,000 | |||||
Bonds [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unsecured Debt | $ 200,000 | $ 500,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | ||||||
Proceeds from Issuance of Unsecured Debt | 205,500 | 495,000 | |||||
Convertible Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Convertible Debt | $ 258,750 | 258,750 | $ 258,800 | ||||
Debt Conversion, Converted Instrument, Rate | 1.125% | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.15% | ||||||
Proceeds from Convertible Debt | $ 252,300 | ||||||
Convertible note hedge shares | 8,100 | ||||||
Warrants and Rights Outstanding | $ 38,500 | ||||||
Unamortized Debt Issuance Expense | (2,889) | (3,894) | |||||
Debt Instrument, Unamortized Discount | $ (24,215) | $ (32,465) | |||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Note conversion obligation fair value | $ (51,300) | $ (57,400) | |||||
Convertible note hedge fair value | $ 50,600 | $ 56,100 |
Commitments and Contingencies_2
Commitments and Contingencies (Operating Lease Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Leased Assets [Line Items] | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 14,700 | $ 46,500 |
Operating Lease, Weighted Average Discount Rate, Percent | 2.40% | 2.90% |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 9 months 18 days | 4 years 6 months |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2017 | $ 20,024 | |
Total minimum lease payments | 63,170 | |
lessee, operating lease, interest due | (2,762) | |
Operating Lease, Liability, Current | 18,783 | $ 17,784 |
Operating Lease, Liability, Noncurrent | 44,387 | 51,128 |
Operating Lease, Payments | 20,500 | $ 17,300 |
Property Subject to Operating Lease [Member] | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2018 | 17,382 | |
2019 | 13,880 | |
2020 | 10,126 | |
2021 | 4,478 | |
2022 and beyond | 42 | |
Lessee, Operating Lease, Liability, Payments, Due | $ 65,932 |
Commitments and Contingencies_3
Commitments and Contingencies (Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Long-term Purchase Commitment [Line Items] | ||
Long-term Purchase Commitment, Amount | $ 391,800 | |
total government grant awarded | $ 75,800 | |
Income Tax (Expense) Benefit, Continuing Operations, Government Grants | $ 111,700 | $ 47,200 |
Commitments and Contingencies_4
Commitments and Contingencies (Labor Unions) (Details) - Workforce Subject to Collective Bargaining Arrangements [Member] - Labor Unions [Member] | 12 Months Ended |
Dec. 31, 2021 | |
ABX [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 5.20% |
ATI [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 9.30% |
Omni Air International [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 6.10% |
Air Transport International, Flight Attendants [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 0.60% |
Omni Air International, Flight Attendants [Member] [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 6.20% |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefit Plans (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 30,867 | $ 3,447 | |
Change in benefit obligation [Roll Forward] | |||
Obligation, beginning balance | 873,826 | 779,031 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 22,387 | 27,880 | 31,299 |
Plan transfers | 3,125 | 2,895 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 36,109 | 34,218 | |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 0 | (2,435) | |
Actuarial (gain) loss | (23,962) | 100,673 | |
Obligation, ending balance | 839,267 | 873,826 | 779,031 |
Change in plan assets [Roll Forward] | |||
Plan assets, beginning balance | 843,895 | 746,763 | |
Actual gain on plan assets | 37,626 | 120,057 | |
Employer contributions | 1,658 | 10,833 | |
Plan assets, ending balance | 850,195 | 843,895 | 746,763 |
Funded status | |||
Defined Benefit Plan, Accumulated Benefit Obligation, (Increase) Decrease for Settlement and Curtailment | 0 | 2,435 | |
Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 0 | 0 | |
Change in benefit obligation [Roll Forward] | |||
Obligation, beginning balance | 3,484 | 3,707 | |
Service cost | 95 | 139 | 107 |
Interest cost | 42 | 91 | 148 |
Plan transfers | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 250 | 362 | |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 0 | 0 | |
Actuarial (gain) loss | (229) | (74) | |
Obligation, ending balance | 3,142 | 3,484 | 3,707 |
Change in plan assets [Roll Forward] | |||
Plan assets, beginning balance | 0 | 0 | |
Actual gain on plan assets | 0 | 0 | |
Employer contributions | 250 | 362 | |
Plan assets, ending balance | 0 | 0 | $ 0 |
Funded status | |||
Defined Benefit Plan, Accumulated Benefit Obligation, (Increase) Decrease for Settlement and Curtailment | 0 | (17) | |
Other Current Liabilities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (1,345) | (1,348) | |
Other Current Liabilities [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (399) | (415) | |
Other Noncurrent Liabilities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (18,594) | (32,030) | |
Other Noncurrent Liabilities [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (2,743) | $ (3,069) |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 22,387 | 27,880 | 31,299 |
Expected return on plan assets | (47,502) | (44,673) | (37,907) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (424) | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net (gain) loss | 7,058 | 3,763 | 15,528 |
Net periodic benefit cost (income) | (18,057) | (13,454) | 8,920 |
Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 95 | 139 | 107 |
Interest cost | 42 | 91 | 148 |
Expected return on plan assets | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (17) | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net (gain) loss | 186 | 124 | 172 |
Net periodic benefit cost (income) | $ 323 | $ 337 | $ 427 |
Pension and Other Post-Retire_5
Pension and Other Post-Retirement Benefit Plans (Unrecognized Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ (424) | $ 0 |
Unrecognized prior service cost | 0 | 0 | |
Unrecognized net actuarial loss | 90,675 | 111,820 | |
Accumulated other comprehensive loss | 90,675 | 111,820 | |
Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | (17) | $ 0 |
Unrecognized prior service cost | 0 | 0 | |
Unrecognized net actuarial loss | 418 | 833 | |
Accumulated other comprehensive loss | $ 418 | $ 833 |
Pension and Other Post-Retire_6
Pension and Other Post-Retirement Benefit Plans (Accumulated Other Comprehensive Income (Loss) to be Recognized within 12 Months) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
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 | $ 1,300 |
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 | $ 100 |
Pension and Other Post-Retire_7
Pension and Other Post-Retirement Benefit Plans (Schedule of Assumptions) (Details) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Expected return on plan assets | 5.65% | 5.75% | 6.10% |
Crewmembers [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.90% | 2.55% | 3.65% |
Non-crewmembers [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.00% | 2.75% | 3.70% |
Pilots [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.00% | 1.30% | 4.10% |
Pension and Other Post-Retire_8
Pension and Other Post-Retirement Benefit Plans (Plan Asset Allocations) (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 3.00% | 1.00% |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 28.00% | 30.00% |
Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 69.00% | 69.00% |
Maximum [Member] | Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 10.00% | |
Maximum [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 35.00% | |
Maximum [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 80.00% | |
Maximum [Member] | US Treasury Securities [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 5.00% | |
Maximum [Member] | US Treasury Securities [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 10.00% | |
Minimum [Member] | Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 0.00% | |
Minimum [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 15.00% | |
Minimum [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 60.00% |
Pension and Other Post-Retire_9
Pension and Other Post-Retirement Benefit Plans (Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 1,658 | $ 10,833 |
Estimated future employer contributions | 1,300 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2017 | 40,186 | |
2018 | 43,474 | |
2019 | 45,838 | |
2020 | 47,906 | |
2021 | 48,747 | |
Years 2022 to 2026 | 246,110 | |
Post-Retirement Healthcare Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 250 | $ 362 |
Estimated future employer contributions | 400 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2017 | 399 | |
2018 | 481 | |
2019 | 489 | |
2020 | 483 | |
2021 | 425 | |
Years 2022 to 2026 | $ 1,134 |
Pension and Other Post-Retir_10
Pension and Other Post-Retirement Benefit Plans (Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Hedge funds and private equity [Member] | Measured at net asset value [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 3 | $ 403 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 850,195 | 843,895 | $ 746,763 |
Defined Benefit Plan Assets fair value hierarchy | 850,192 | 843,492 | |
Pension Plans [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 20,397 | |
Pension Plans [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 850,192 | 823,095 | |
Pension Plans [Member] | Measured at net asset value [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3 | 403 | |
Pension Plans [Member] | Common trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 29,451 | 5,055 | |
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 | 29,451 | 5,055 | |
Pension Plans [Member] | Corporate stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 20,353 | |
Pension Plans [Member] | Corporate stock [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 19,852 | |
Pension Plans [Member] | Corporate stock [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 501 | |
Pension Plans [Member] | Mutual funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 236,647 | 237,063 | |
Pension Plans [Member] | Mutual funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Mutual funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 236,647 | 237,063 | |
Pension Plans [Member] | Fixed income investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 584,094 | 581,021 | |
Pension Plans [Member] | Fixed income investments [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 545 | |
Pension Plans [Member] | Fixed income investments [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 584,094 | $ 580,476 |
Pension and Other Post-Retir_11
Pension and Other Post-Retirement Benefit Plans (Fair Value Measurements Using Significant Level 3 Unobservable Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Hedge Funds & Private Equity [Member] | Measured at net asset value [Domain] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | $ 403 | |
Plan assets, ending balance | 3 | $ 403 |
Real Estate Investments [Member] | Measured at net asset value [Domain] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Purchases & settlements | 0 | 0 |
Pension Plan [Member] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | 843,895 | 746,763 |
Unrealized gains | 1,300 | |
Plan assets, ending balance | 850,195 | 843,895 |
Pension Plan [Member] | Measured at net asset value [Domain] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | 403 | |
Plan assets, ending balance | $ 3 | $ 403 |
Pension and Other Post-Retir_12
Pension and Other Post-Retirement Benefit Plans (Defined Contribution Plan Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Capital accumulation plans [Member] | |||
Schedule of Defined Contribution Plans [Line Items] | |||
Defined contribution plan expense | $ 19,500 | $ 15,400 | $ 12,600 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Line Items] | ||
Deferred tax asset, operating loss carryforwards | $ 4.7 | |
Federal [Member] | ||
Income Tax Disclosure [Line Items] | ||
Net operating loss carryforwards | 413.9 | |
State and Local Jurisdiction [Member] | ||
Income Tax Disclosure [Line Items] | ||
Valuation allowance, operating loss carryforwards | $ 0.3 | |
Maximum [Member] | State and Local Jurisdiction [Member] | ||
Income Tax Disclosure [Line Items] | ||
Operating loss carryforwards, remaining life | 20 years | |
Alternative minimum tax [Member] | ||
Income Tax Disclosure [Line Items] | ||
Tax Credit Carryforward, Amount | $ 3.1 |
Income Taxes (Deferred Taxes) (
Income Taxes (Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Loss Carryforwards [Line Items] | ||
deferred tax asset, warrant remeasurement | $ 32,075 | $ 33,940 |
Deferred tax assets: | ||
Net operating loss carryforward and federal credits | 93,294 | 71,762 |
Post-retirement employee benefits | (1,330) | 7,140 |
Employee benefits other than post-retirement | 6,919 | 8,545 |
Inventory reserve | 2,714 | 2,288 |
Deferred revenue | 10,918 | 12,608 |
Other | 8,789 | 9,366 |
Deferred tax assets | 167,975 | 160,121 |
Deferred Tax Assets, Capital and Operating Leases | 13,266 | 14,472 |
Deferred tax liabilities: | ||
Accelerated depreciation | (327,321) | (257,765) |
Partnership items | (6,014) | (6,044) |
State taxes | (19,158) | (11,143) |
Valuation allowance against deferred tax assets | (3,861) | (2,293) |
Deferred tax liabilities | 385,266 | 301,386 |
Net deferred tax (liability) | (217,291) | (141,265) |
Deferred Tax Liabilities, Leasing Arrangements | (13,029) | (14,264) |
Deferred Tax Liabilities, Goodwill | $ (14,553) | $ (9,877) |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current taxes: | |||
Federal | $ 0 | $ (1,332) | $ 1,332 |
Foreign | 0 | 0 | 1 |
State | 2,402 | 1,235 | 138 |
Deferred taxes: | |||
Federal | 65,027 | 19,701 | 14,155 |
Foreign | 0 | 0 | 0 |
State | 4,795 | (1,209) | (3,677) |
Total deferred tax expense | 69,822 | 18,492 | 10,478 |
Total income tax expense from continuing operations | 72,224 | 16,314 | 11,589 |
Income tax expense (benefit) from discontinued operations | 722 | 2,081 | 360 |
2017 Tax Cuts and Jobs Act [Member] | |||
Deferred taxes: | |||
Federal | $ 0 | $ 0 | $ 0 |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal tax rate | 21.00% | 21.00% | 21.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 0.00% | 0.00% | 0.00% |
State income taxes, net of federal tax benefit | 1.80% | 5.10% | 1.40% |
effective tax rate reconciliation, non-deductible expense, warrant remeasurement, percent | 0.00% | 16.60% | (2.90%) |
Tax effect of other non-deductible expenses | 0.50% | 3.20% | 1.70% |
Other | 0.70% | (1.10%) | 0.40% |
Effective income tax rate | 24.00% | 39.40% | 16.20% |
return to income tax provision adjustment [Member] | |||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Other | 0.00% | (5.40%) | (5.40%) |
Income Taxes (Tax Rate Reconc_2
Income Taxes (Tax Rate Reconciliation - Discontinued Operations) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory federal tax rate | (21.00%) | (21.00%) | (21.00%) |
State income taxes, net of federal tax benefit | 1.80% | 1.80% | 1.80% |
Effective income tax rate | 22.80% | 22.80% | 22.80% |
2017 Tax Cuts and Jobs Act [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory federal tax rate | 0.00% | 0.00% | 0.00% |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
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 ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 25, 2017 | |
Derivative [Line Items] | ||||
Pre-tax (charge) on derivative instruments | $ 29,979 | $ (100,771) | $ (12,302) | |
Net (gain) loss on financial instruments | $ (9,800) | 5,300 | $ 10,000 | |
June 30, 2017 [Member] [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 2.706% | |||
Market Value (Liability) | $ 0 | (3,551) | ||
Derivative Liability, Notional Amount | $ 0 | 138,750 | ||
May 5, 2021 [Member] [Member] [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 1.09% | |||
Market Value (Liability) | $ 0 | 41 | ||
Derivative Liability, Notional Amount | $ 0 | 13,125 | ||
May 30, 2021 [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 1.703% | |||
Market Value (Liability) | $ 0 | 80 | ||
Derivative Liability, Notional Amount | $ 0 | 13,125 | ||
March 31, 2022 One [Member] [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 1.90% | |||
Market Value (Liability) | $ 221 | 1,116 | ||
Derivative Liability, Notional Amount | $ 50,000 | 50,000 | ||
March 31, 2022 Two [Member] [Member] [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 1.95% | |||
Market Value (Liability) | $ 341 | 1,722 | ||
Derivative Liability, Notional Amount | $ 75,000 | 75,000 | ||
March 31, 2023 [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 2.425% | |||
Market Value (Liability) | $ 3,041 | 6,904 | ||
Derivative Liability, Notional Amount | $ 133,125 | $ 140,625 | ||
Convertible Debt [Member] | ||||
Derivative [Line Items] | ||||
Convertible note hedge shares | 8,100 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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) | 1,085,023 | 963,832 | 969,928 |
Granted (in shares) | 273,845 | 437,054 | 302,596 |
Converted (in shares) | (316,430) | (278,163) | (291,064) |
Expired (in shares) | (58,650) | (34,100) | (7,900) |
Forfeited (in shares) | (5,600) | (3,600) | (9,728) |
Outstanding at end of period (in shares) | 978,188 | 1,085,023 | 963,832 |
Vested (in shares) | 414,949 | 460,685 | 476,389 |
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) | $ 17.14 | $ 17.67 | $ 15.89 |
Granted, Weighted average grant-date fair value (in dollars per share) | 26.65 | 18.85 | 23.22 |
Converted, Weighted average grant-date fair value (in dollars per share) | 22.76 | 21.34 | 17.14 |
Expired, Weighted average grant-date fair value (in dollars per share) | 24.79 | 19.40 | 23.78 |
Forfeited, Weighted average grant-date fair value (in dollars per share) | 23.31 | 21.62 | 23.37 |
Outstanding at end of period, Weighted average grant-date fair value (in dollars per share) | 17.49 | 17.14 | 17.67 |
Vested (in dollars per share) | $ 11.43 | $ 13 | $ 11.11 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Share-based compensation expense | $ 7.4 | $ 7.5 | $ 7 |
Unrecognized share-based compensation expense | $ 6.7 | ||
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 | 0.30% | 0.70% | 2.50% |
Expected volatility rate | 39.70% | 35.00% | 35.60% |
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) | $ 26.50 | $ 20.41 | $ 24.75 |
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) | $ 26.69 | $ 18.39 | $ 22.80 |
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) | 1,245,713 | ||
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) | 357,499 | ||
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 | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share Reconciliation [Abstract] | |||
Earnings from continuing operations | $ 228,980 | $ 25,079 | $ 59,983 |
fair value adjustment to warrants, net of tax | (15,564) | 0 | (6,219) |
Undistributed Earnings (Loss) from Continuing Operations Available to Common Shareholders, Diluted | $ 213,416 | $ 25,079 | $ 53,764 |
Weighted-average shares outstanding for basic earnings per share (in shares) | 68,853,000 | 59,128,000 | 58,899,000 |
Restricted stock (in shares) | 283,139 | 365,100 | 317,600 |
Common equivalent shares: | |||
Effect of stock-based compensation awards (in shares) | 7,363,000 | 803,000 | 10,449,000 |
Weighted-average shares outstanding assuming dilution (in shares) | 76,216,000 | 59,931,000 | 69,348,000 |
Basic earnings per share from continuing operations (in dollars per share) | $ 3.33 | $ 0.42 | $ 1.02 |
Diluted earnings per share from continuing operations (in dollars per share) | $ 2.80 | $ 0.42 | $ 0.78 |
Segment Information (Segment Re
Segment Information (Segment Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Operating Expenses | $ 1,413,050 | $ 1,364,185 | $ 1,275,186 |
REVENUES | 1,734,282 | 1,570,575 | 1,452,183 |
Customer revenues | 1,734,282 | 1,570,575 | 1,452,183 |
Depreciation and amortization expense | 308,448 | 278,067 | 257,532 |
Net unallocated interest expense | (58,790) | (62,893) | (66,644) |
Net gain (loss) on financial instruments | 29,979 | (100,771) | (12,302) |
Pre-tax earnings from continuing operations | 301,205 | 41,393 | 71,572 |
Assets | 3,267,335 | 3,001,745 | 2,820,178 |
Income Tax Expense (Benefit) | 72,224 | 16,314 | 11,589 |
Business Combination, Acquisition Related Costs | 0 | 0 | (373) |
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | 17,827 | 12,032 | (9,404) |
Net earnings from continuing operations | 228,980 | 25,079 | 59,983 |
Income Tax (Expense) Benefit, Continuing Operations, Government Grants | 111,700 | 47,200 | |
Asset Impairment Charges | 0 | (39,075) | 0 |
Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 1,734,282 | 1,570,575 | 1,452,183 |
Customer revenues | 1,734,282 | 1,570,575 | 1,452,183 |
ACMI Services [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 1,185,128 | 1,147,279 | 1,078,288 |
Customer revenues | 1,185,128 | 1,147,279 | 1,078,288 |
Depreciation and amortization expense | 101,541 | 101,748 | 96,191 |
Segment earnings (loss) | 158,733 | 114,128 | 32,055 |
Net unallocated interest expense | (18,066) | (20,542) | (24,950) |
Assets | 872,311 | 811,516 | 830,620 |
ACMI Services [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 1,185,113 | 1,147,252 | 1,078,143 |
Customer revenues | 1,185,113 | 1,147,252 | 1,078,143 |
All other [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 375,571 | 334,300 | 314,014 |
Customer revenues | 375,571 | 334,300 | 314,014 |
Depreciation and amortization expense | 3,232 | 4,316 | 2,871 |
Segment earnings (loss) | 112 | (5,933) | 13,422 |
Assets | 177,012 | 152,601 | 131,871 |
All other [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 275,881 | 218,276 | 205,934 |
Customer revenues | 275,881 | 218,276 | 205,934 |
CAM [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 370,287 | 308,661 | 285,276 |
Customer revenues | 370,287 | 308,661 | 285,276 |
Depreciation and amortization expense | 203,675 | 172,003 | 158,470 |
Segment earnings (loss) | 106,161 | 77,424 | 68,643 |
Net unallocated interest expense | (38,160) | (39,304) | (38,300) |
Assets | 2,218,012 | 2,037,628 | 1,857,687 |
CAM [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 273,288 | 205,047 | 168,106 |
Customer revenues | 273,288 | 205,047 | 168,106 |
Significant Reconciling Items [Member] | |||
Segment Reporting Information [Line Items] | |||
Net unallocated interest expense | (2,525) | (2,825) | (3,024) |
Non-operating charges from a non-consolidating affiliate | (2,577) | (13,587) | (17,445) |
Eliminate inter-segment revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | (196,704) | (219,665) | (225,395) |
Customer revenues | (196,704) | (219,665) | (225,395) |
Accounting Standards Update 2014-09 [Member] | |||
Segment Reporting Information [Line Items] | |||
Income Tax Expense (Benefit) | (72,225) | ||
Accounting Standards Update 2014-09 [Member] | Ground Services [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 127,378 | 114,425 | 117,772 |
Customer revenues | 127,378 | 114,425 | 117,772 |
Accounting Standards Update 2014-09 [Member] | All other [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 275,881 | 218,276 | 205,934 |
Customer revenues | 275,881 | 218,276 | 205,934 |
Accounting Standards Update 2014-09 [Member] | Ground Services [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 99,133 | 73,949 | 69,596 |
Customer revenues | 99,133 | 73,949 | 69,596 |
Accounting Standards Update 2014-09 [Member] | All Other non MRO or Ground Services [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 49,370 | 29,902 | 18,566 |
Customer revenues | $ 49,370 | $ 29,902 | $ 18,566 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)segments | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||
REVENUES | $ 1,734,282 | $ 1,570,575 | $ 1,452,183 |
Deferred Revenue, Revenue Recognized | 3,000 | 2,800 | |
Deferred Revenue | $ 8,300 | 3,000 | |
Number of reportable segments (in segments) | segments | 2 | ||
Interest expense | $ 58,790 | 62,893 | 66,644 |
Deposit Contracts, Assets | 800 | 0 | |
Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 1,734,282 | 1,570,575 | 1,452,183 |
ACMI Services [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 1,185,128 | 1,147,279 | 1,078,288 |
Interest expense | 18,066 | 20,542 | 24,950 |
Property, Plant and Equipment, Additions | 86,500 | ||
Operating Leases, Income Statement, Lease Revenue | 13,200 | 13,200 | 9,500 |
ACMI Services [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 1,185,113 | 1,147,252 | 1,078,143 |
CAM [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 370,287 | 308,661 | 285,276 |
Interest expense | 38,160 | 39,304 | 38,300 |
Property, Plant and Equipment, Additions | 415,800 | ||
non lease revenue | 18,600 | 6,200 | |
CAM [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 273,288 | 205,047 | 168,106 |
Geographic Distribution, Foreign [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
REVENUES | 701,900 | $ 699,200 | $ 716,900 |
Flight Equipment [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Leases, Future Minimum Payments Receivable, Current | 250,800 | ||
Operating Leases, Future Minimum Payments Receivable, in Two Years | 206,300 | ||
Operating Leases, Future Minimum Payments Receivable, in Three Years | 156,300 | ||
Operating Leases, Future Minimum Payments Receivable, in Four Years | 146,400 | ||
Operating Leases, Future Minimum Payments Receivable, in Five Years | 128,300 | ||
Operating Leases, Future Minimum Payments Receivable, Thereafter | $ 311,300 |
Segment Information (Entity-Wid
Segment Information (Entity-Wide Disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |||
Customer revenues | $ 1,734,282 | $ 1,570,575 | $ 1,452,183 |
Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Customer revenues | 1,734,282 | 1,570,575 | 1,452,183 |
CAM [Member] | |||
Segment Reporting Information [Line Items] | |||
Customer revenues | 370,287 | 308,661 | 285,276 |
CAM [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Customer revenues | 273,288 | 205,047 | 168,106 |
All other [Member] | |||
Segment Reporting Information [Line Items] | |||
Customer revenues | 375,571 | 334,300 | 314,014 |
All other [Member] | Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Customer revenues | $ 275,881 | $ 218,276 | $ 205,934 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 3,200 | $ 9,100 | $ 1,600 |
Disposal Group, Including Discontinued Operation, Accrued Liabilities | $ 3,800 | $ 7,200 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value Adjustment of Warrants | $ 20,200 | $ (95,500) | $ (2,300) |
Deferred Federal Income Tax Expense (Benefit) | 65,027 | 19,701 | 14,155 |
Asset Impairment Charges | 0 | 39,075 | 0 |
Income Tax (Expense) Benefit, Continuing Operations, Government Grants | 111,700 | 47,200 | |
REVENUES | 1,734,282 | 1,570,575 | 1,452,183 |
Net earnings from continuing operations | 228,980 | 25,079 | 59,983 |
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES | $ 2,440 | $ 7,036 | $ 1,219 |
WEIGHTED AVERAGE SHARES [Abstract] | |||
Basic (in shares) | 68,853 | 59,128 | 58,899 |
Diluted (in shares) | 76,216 | 59,931 | 69,348 |
Earnings Per Share, Basic and Diluted [Abstract] | |||
Basic (in dollars per share) | $ 3.33 | $ 0.42 | $ 1.02 |
Diluted (in dollars per share) | $ 2.80 | $ 0.42 | $ 0.78 |
Pension Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 424 | $ 0 |
ACMI Services [Member] | |||
REVENUES | 1,185,128 | 1,147,279 | 1,078,288 |
2017 Tax Cuts and Jobs Act [Member] | |||
Deferred Federal Income Tax Expense (Benefit) | $ 0 | $ 0 | $ 0 |
Acquisition of Business (Detail
Acquisition of Business (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
REVENUES | $ 1,734,282 | $ 1,570,575 | $ 1,452,183 |
Goodwill | 395,974 | 395,974 | 395,974 |
Business Combination, Acquisition Related Costs | 0 | 0 | $ 373 |
Long-term Debt | 1,299,363 | 1,479,077 | |
Revolving Credit Facility [Member] | |||
Business Acquisition [Line Items] | |||
Long-term Debt | $ 360,000 | $ 140,000 |
Investments in Non-Consolidated
Investments in Non-Consolidated Affiliates (Unaudited) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | |||
Assets, Current | $ 352,841 | $ 272,736 | |
NET EARNINGS | 231,420 | 32,115 | $ 61,202 |
Liabilities, Current | 312,631 | 301,988 | |
Liabilities | 1,944,958 | 2,146,248 | |
REVENUES | $ 1,734,282 | $ 1,570,575 | $ 1,452,183 |