Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 29, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 000-50368 | ||
Entity Registrant Name | Air Transport Services Group, Inc. | ||
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 | ||
Local Phone Number | 382-5591 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ATSG | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 873,703,267 | ||
Entity Common Stock, Shares Outstanding | 65,681,909 | ||
Documents Incorporated by Reference | Portions of the registrant's definitive Proxy Statement for the Annual Meeting of Stockholders, expected to be filed no later than 120 days after the close of the registrant's 2023 fiscal year, are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent provided herein. | ||
Entity Central Index Key | 0000894081 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash, cash equivalents and restricted cash | $ 53,555 | $ 27,134 |
Accounts receivable, net of allowance of $1,065 in 2023 and $939 in 2022 | 215,581 | 301,622 |
Inventory | 49,939 | 57,764 |
Prepaid supplies and other | 26,626 | 31,956 |
TOTAL CURRENT ASSETS | 345,701 | 418,476 |
Property and equipment, net | 2,820,769 | 2,402,408 |
Customer incentive | 60,961 | 79,650 |
Goodwill and acquired intangibles | 482,427 | 492,642 |
Operating lease assets | 54,060 | 74,070 |
Other assets | 118,172 | 122,647 |
TOTAL ASSETS | 3,882,090 | 3,589,893 |
CURRENT LIABILITIES: | ||
Accounts payable | 227,652 | 192,992 |
Accrued salaries, wages and benefits | 56,650 | 56,498 |
Accrued expenses | 10,784 | 12,466 |
Current portion of debt obligations | 54,710 | 639 |
Current portion of lease obligations | 20,167 | 23,316 |
Unearned revenue and grants | 30,226 | 21,546 |
TOTAL CURRENT LIABILITIES | 400,189 | 307,457 |
Long term debt | 1,707,572 | 1,464,285 |
Stock obligations | 1,729 | 695 |
Post-retirement obligations | 19,368 | 35,334 |
Long term lease obligations | 34,990 | 51,575 |
Other liabilities | 64,292 | 62,861 |
Deferred income taxes | 285,248 | 255,180 |
TOTAL LIABILITIES | 2,513,388 | 2,177,387 |
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; 65,240,961 and 72,327,758 shares issued and outstanding in 2023 and 2022, respectively | 652 | 723 |
Additional paid-in capital | 836,270 | 986,303 |
Retained earnings | 589,209 | 528,882 |
Accumulated other comprehensive loss | (57,429) | (103,402) |
TOTAL STOCKHOLDERS’ EQUITY | 1,368,702 | 1,412,506 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 3,882,090 | $ 3,589,893 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets, Current [Abstract] | ||
Accounts receivable, net of allowance | $ (1,065) | $ (939) |
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) | 65,240,961 | 72,327,758 |
Common stock, shares outstanding (in shares) | 65,240,961 | 72,327,758 |
Preferred Stock | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Series A Junior Participating Preferred Stock | ||
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
REVENUES | $ 2,070,611 | $ 2,045,469 | $ 1,734,282 |
OPERATING EXPENSES | |||
Salaries, wages and benefits | 685,940 | 666,950 | 591,280 |
Depreciation and amortization | 342,985 | 331,064 | 308,448 |
Maintenance, materials and repairs | 212,767 | 162,122 | 173,364 |
Fuel | 278,528 | 275,512 | 173,600 |
Contracted ground and aviation services | 74,273 | 77,026 | 75,724 |
Travel | 128,584 | 111,989 | 86,601 |
Landing and ramp | 17,486 | 16,583 | 14,244 |
Rent | 31,703 | 30,437 | 23,695 |
Insurance | 9,790 | 9,666 | 12,588 |
Other operating expenses | 88,723 | 78,637 | 65,179 |
Government grants | 0 | 0 | (111,673) |
Operating expenses | 1,870,779 | 1,759,986 | 1,413,050 |
OPERATING INCOME | 199,832 | 285,483 | 321,232 |
OTHER INCOME (EXPENSE) | |||
Interest income | 766 | 415 | 39 |
Settlement charges and non-service component gains of retiree benefits | (37,017) | 20,046 | 17,827 |
Debt issuance costs | (936) | 0 | (6,505) |
Net (loss) gain on financial instruments | (962) | 9,022 | 29,979 |
Loss from non-consolidated affiliates | (4,740) | (7,607) | (2,577) |
Interest expense | (72,704) | (46,861) | (58,790) |
Other Nonoperating Income (Expense) | (115,593) | (24,985) | (20,027) |
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 84,239 | 260,498 | 301,205 |
INCOME TAX EXPENSE | (24,491) | (64,060) | (72,225) |
EARNINGS FROM CONTINUING OPERATIONS | 59,748 | 196,438 | 228,980 |
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAXES | 579 | 2,143 | 2,440 |
NET EARNINGS | $ 60,327 | $ 198,581 | $ 231,420 |
BASIC EARNINGS PER SHARE | |||
Basic earnings per share from continuing operations (in dollars per share) | $ 0.87 | $ 2.67 | $ 3.33 |
Discontinued operations (in dollars per share) | 0.01 | 0.03 | 0.03 |
TOTAL BASIC EARNINGS PER SHARE (in dollars per share) | 0.88 | 2.70 | 3.36 |
DILUTED EARNINGS PER SHARE | |||
Diluted earnings per share from continuing operations (in dollars per share) | 0.82 | 2.26 | 2.80 |
Discontinued operations (in dollars per share) | 0 | 0.02 | 0.03 |
TOTAL DILUTED NET EARNINGS PER SHARE (in dollars per share) | $ 0.82 | $ 2.28 | $ 2.83 |
WEIGHTED AVERAGE SHARES | |||
Basic (in shares) | 68,641 | 73,611 | 68,853 |
Diluted (in shares) | 75,561 | 88,324 | 76,216 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
NET EARNINGS | $ 60,327 | $ 198,581 | $ 231,420 |
Foreign Currency Translation | 20 | 0 | (6) |
Total comprehensive income (loss) | 106,300 | 157,259 | 247,996 |
Defined Benefit Post-Retirement | |||
Other comprehensive income (loss), net of tax | 466 | 265 | 320 |
Defined Benefit Pension | |||
Other comprehensive income (loss), net of tax | $ 45,487 | $ (41,587) | $ 16,262 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES: | |||
Net earnings from continuing operations | $ 59,748 | $ 196,438 | $ 228,980 |
Net earnings from discontinued operations | 579 | 2,143 | 2,440 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 363,528 | 355,848 | 341,849 |
Pension and post-retirement | 18,980 | 2,675 | 7,244 |
Deferred income taxes | 16,529 | 54,862 | 70,544 |
Amortization of stock-based compensation | 8,516 | 8,342 | 7,386 |
Loss from non-consolidated affiliates | 4,740 | 7,607 | 2,577 |
Net loss (gain) on financial instruments | 962 | (9,022) | (29,979) |
Debt issuance costs | 936 | 0 | 6,505 |
Changes in assets and liabilities: | |||
Accounts receivable | 79,185 | (96,223) | (51,888) |
Inventory and prepaid supplies | 11,997 | (18,981) | (3,123) |
Accounts payable | 58,151 | 6,047 | 30,388 |
Unearned revenue | 10,634 | (26,430) | (7,011) |
Accrued expenses, salaries, wages, benefits and other liabilities | (2,382) | 14,755 | 10,059 |
Pension and post-retirement balances | 16,472 | (24,258) | (26,884) |
Other | 5,506 | (1,683) | (5,530) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 654,081 | 472,120 | 583,557 |
INVESTING ACTIVITIES: | |||
Expenditures for property and equipment | (793,447) | (599,431) | (504,748) |
Proceeds from property and equipment | 29,118 | 15,913 | 19,427 |
Acquisitions and investments in businesses | (1,600) | (16,545) | (2,155) |
NET CASH (USED IN) INVESTING ACTIVITIES | (765,929) | (600,063) | (487,476) |
FINANCING ACTIVITIES: | |||
Principal payments on long term obligations | (225,639) | (365,628) | (1,900,311) |
Proceeds from revolving credit facilities | 335,000 | 625,000 | 1,500,600 |
Payments for financing costs | (10,779) | (1,803) | (3,099) |
Proceeds from convertible note issuance | 400,000 | 0 | 0 |
Repurchase of convertible notes | 203,247 | 0 | 0 |
Repurchase of senior unsecured notes | 0 | (115,204) | 0 |
Proceeds from bond issuance | 0 | 0 | 207,400 |
Proceeds from issuance of warrants | 0 | 0 | 131,967 |
Purchase of common stock | (155,349) | (53,868) | 0 |
Withholding taxes paid for conversion of employee stock awards | (2,986) | (2,916) | (2,861) |
Other financing related proceeds | 1,269 | 0 | 0 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 138,269 | 85,581 | (66,304) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 26,421 | (42,362) | 29,777 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 27,134 | 69,496 | 39,719 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 53,555 | 27,134 | 69,496 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest paid, net of amount capitalized | 51,873 | 47,194 | 43,696 |
Federal and state income taxes paid | 6,835 | 6,205 | 3,431 |
SUPPLEMENTAL NON-CASH INFORMATION: | |||
Accrued expenditures for property and equipment | $ 41,703 | $ 56,433 | $ 43,479 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Adoption of ASU 2020-06 | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Adoption of ASU 2020-06 | Accumulated Earnings | Accumulated Earnings Adoption of ASU 2020-06 | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 59,560,036 | |||||||
Beginning balance at Dec. 31, 2020 | $ 855,497 | $ 596 | $ 855,547 | $ 78,010 | $ (78,656) | |||
Stock-based compensation plans | ||||||||
Grant of restricted stock | 0 | $ 1 | (1) | |||||
Grant of restricted stock (in shares) | 121,339 | |||||||
Issuance of common shares, net of withholdings (in shares) | 35,163 | |||||||
Issuance of common shares, net of withholdings | (2,861) | $ 0 | (2,861) | |||||
Forfeited restricted stock (in shares) | (2,800) | |||||||
Conversion of warrants | 131,967 | $ 144 | 131,823 | |||||
Conversion of warrants (in shares) | 14,428,445 | |||||||
Reclassification of warrant liability | 82,392 | 82,392 | ||||||
Amortization of stock awards and restricted stock | 7,386 | 7,386 | ||||||
Total comprehensive income (loss) | 247,996 | 231,420 | 16,576 | |||||
Ending balance (in shares) at Dec. 31, 2021 | 74,142,183 | |||||||
Ending balance at Dec. 31, 2021 | 1,322,377 | $ 741 | 1,074,286 | 309,430 | (62,080) | |||
Stock-based compensation plans | ||||||||
Grant of restricted stock | 0 | $ 1 | (1) | |||||
Grant of restricted stock (in shares) | 118,310 | |||||||
Issuance of common shares, net of withholdings | (2,916) | $ 1 | (2,917) | |||||
Issuance of common shares, net of withholdings (in shares) | 66,263 | |||||||
Forfeited restricted stock (in shares) | (5,700) | |||||||
Purchase of common stock (in shares) | (1,993,298) | |||||||
Purchase of common stock | (53,868) | $ (20) | (53,848) | |||||
Amortization of stock awards and restricted stock | 8,342 | 8,342 | ||||||
Total comprehensive income (loss) | $ 157,259 | 198,581 | (41,322) | |||||
Ending balance (in shares) at Dec. 31, 2022 | 72,327,758 | 72,327,758 | ||||||
Ending balance at Dec. 31, 2022 | $ 1,412,506 | $ 723 | 986,303 | 528,882 | (103,402) | |||
Stock-based compensation plans | ||||||||
Grant of restricted stock | 0 | $ 3 | (3) | |||||
Grant of restricted stock (in shares) | 265,361 | |||||||
Issuance of common shares, net of withholdings | (2,987) | $ 0 | (2,987) | |||||
Issuance of common shares, net of withholdings (in shares) | 49,619 | |||||||
Forfeited restricted stock (in shares) | (16,000) | |||||||
Purchase of common stock (in shares) | (7,385,777) | |||||||
Purchase of common stock | (156,903) | $ (74) | (156,829) | |||||
Reclassification of warrant liability | 1,270 | 1,270 | ||||||
Amortization of stock awards and restricted stock | 8,516 | 8,516 | ||||||
Total comprehensive income (loss) | $ 106,300 | 60,327 | 45,973 | |||||
Ending balance (in shares) at Dec. 31, 2023 | 65,240,961 | 65,240,961 | ||||||
Ending balance at Dec. 31, 2023 | $ 1,368,702 | $ (18,688) | $ 652 | $ 836,270 | $ (39,559) | $ 589,209 | $ 20,871 | $ (57,429) |
Summary of Financial Statement
Summary of Financial Statement Preparation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
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. 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 $17.2 million as of December 31, 2023 and $1.9 million as of December 31, 2022. 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 composed 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, Boeing 757 and Airbus A321 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 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 of 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, Airbus A321 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 $8.2 million, $3.2 million and $3.5 million for the years ended December 31, 2023, 2022 and 2021, 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 $3.7 million and $3.9 million at December 31, 2023 and December 31, 2022, 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. 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 number of aircraft operated and number of 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. For its airframe maintenance and aircraft modification contracts, the Company typically records revenue based on the estimated transaction price 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 reflects 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. The Company offers 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 The Company adopted Accounting Standards Update 2016-13 "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 Financial Accounting Standards Board ("FASB") issued ASU 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 resulted in the following adjustments: (in thousands) December 31, 2021 Adoption of ASU 2020-06 January 1, 2022 Balance Sheet line item: Principal value $ (258,750) $ — $ (258,750) Unamortized issuance cost $ 2,889 $ — $ 2,889 Unamortized discount $ 24,215 $ (24,215) $ — Convertible Debt $ (231,646) $ (24,215) $ (255,861) Net deferred tax liability $ (217,291) $ 5,527 $ (211,764) 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 2017 Convertible Notes due 2024 (as defined and discussed in Note F) are reflected entirely as a liability as the embedded conversion feature is no longer separately presented within stockholders' equity, which also eliminated the non-cash discount. Accordingly, earnings 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 2017 Convertible Notes is 1.5%. ASU 2020-06 requires the application of the more dilutive if-converted method when calculating the impact of the 2017 Convertible Notes on earnings per diluted share. The adoption of ASU 2020-06 does not change the accounting 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 2017 Convertible Notes, which are anti-dilutive and not reflected in earnings per diluted share. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This standard requires disclosure of significant segment expenses and other segment items by reportable segment. This ASU becomes effective for annual periods beginning in 2024 and interim periods in 2025. The Company is assessing the impact of this ASU and upon adoption expects that any impact would be limited to additional segment expense disclosures in the footnotes to its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. This ASU becomes effective January 1, 2025. The Company is assessing the impact of this ASU and upon adoption expects to include certain additional disclosures in the footnotes to its consolidated financial statements. |
Goodwill, Intangibles and Equit
Goodwill, Intangibles and Equity Investments | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Intangibles and Equity Investments | GOODWILL, INTANGIBLES AND EQUITY INVESTMENTS Goodwill reflects the excess purchase price over the estimated fair value of net assets acquired in a business acquisition. As of December 31, 2023, 2022 and 2021, 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, 2021 $ 153,290 $ 234,571 $ 8,113 $ 395,974 Carrying value as of December 31, 2022 $ 153,290 $ 234,571 $ 8,113 $ 395,974 Carrying value as of December 31, 2023 $ 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, 2021 $ 9,000 $ 100,151 $ 109,151 Amortization — (12,483) (12,483) Carrying value as of December 31, 2022 $ 9,000 $ 87,668 $ 96,668 Amortization — (10,215) (10,215) Carrying value as of December 31, 2023 $ 9,000 $ 77,453 $ 86,453 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 2 to 15 remaining years. The Company recorded intangible amortization expense of $10.2 million, $12.5 million and $11.2 million for the years ending December 31, 2023, 2022 and 2021, respectively. Estimated amortization expense for the next five years is $10.2 million, $9.4 million, $4.5 million, $4.5 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, 2021 $ 102,913 Amortization (23,263) Carrying value as of December 31, 2022 $ 79,650 Amortization (18,689) Carrying value as of December 31, 2023 $ 60,961 The lease incentive began to amortize in April 2016 with the commencement of certain aircraft leases. As of December 31, 2023, based on the warrants granted to date, the Company expects to record amortization, as a reduction to the lease revenue, of $15.7 million, $15.8 million, $12.8 million, $6.7 million and $4.4 million for each of the next five years ending December 31, 2028. The Company has a 49% ownership in a joint-venture agreement with Precision Aircraft Solutions, LLC, to develop a passenger-to-freighter conversion program for Airbus A321-200 aircraft. In April 2022, the Company acquired a 40% ownership interest in the joint-venture company GA Telesis Engine Services, LLC to provide engine tear-down services to harvest and sell engine parts. The Company accounts for its investment in these joint ventures 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. During the 2022 and 2021 years, we contributed $14.9 million and $2.5 million to 321 Precision Conversions, LLC, respectively. The Company also contributed $1.6 million and $1.6 million to GA Telesis Engines Services, LLC during 2023 and 2022, respectively. The carrying value of the joint ventures totaled $22.7 million and $18.9 million at December 31, 2023 and 2022, 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. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021 are as follows: Year Ended December 31, 2023 2022 2021 Customer Percentage of Revenue DoD 30% 30% 26% Amazon 34% 34% 35% DHL 12% 12% 12% The accounts receivable from the Company's three largest customers as of December 31, 2023 and 2022 are as follows (in thousands): Year Ending December 31, 2023 2022 Customer Accounts Receivable DoD $ 56,848 $ 125,156 Amazon 74,509 86,607 DHL 8,040 19,644 DoD The Company is a provider of cargo and passenger airlift services to the U.S. Department of Defense ("DoD"). The Company's airlines are eligible to bid for military charter operations for passenger and cargo transportation through contracts awarded by the DoD. The airlines draw from the Company's fleet of Boeing 757 combi, Boeing 777 passenger, Boeing 767 passenger and Boeing 767 freighter aircraft for the DoD operations. 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, 2023, the Company leased 13 Boeing 767 freighter aircraft to DHL composed of one Boeing 767-200 aircraft and twelve Boeing 767-300 aircraft, with expirations between 2024 and 2029. Further, beginning in third quarter of 2022, the Company began to operate four Boeing 767 aircraft provided by DHL under an additional CMI agreement which currently runs through August 2027. Amazon The Company has been providing freighter aircraft, airline operations and services for cargo handling and logistical support for 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, 2023, the Company leased 37 Boeing 767 freighter aircraft to ASI with lease expirations between 2024 and 2031. Amazon Investment Agreement In conjunction with the execution of the ATSA, the Company and Amazon entered into an Investment Agreement (the "2016 Investment Agreement") and a Stockholders Agreement on March 8, 2016. The 2016 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 2016 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 ATSG'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 ATSG'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 ATSG's 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 three 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, 2023: 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 resumed repurchases of its own shares during October 2022 in conjunction with the expiration of certain government restrictions (see Note H) on September 30, 2022. On October 7, 2022, Amazon sold 250,000 shares of ATSG's common stock back to the Company for cash of 5,900,000, pursuant to the terms of the 2016 Investment Agreement, as amended on March 5, 2021. Also on December 16, 2022, Amazon sold 260,000 shares of ATSG's common stock back to the Company for cash of $7.0 million, pursuant to the terms of the same 2016 agreement. On August 14, 2023 Amazon sold 1,177,000 shares of ATSG common stock back to the Company for cash of $22.9 million. These transactions resulted in Amazon maintaining its ownership percentage of less than 19.9% of the Company's outstanding shares at the time. Amazon has the option to sell additional shares of ATSG's common stock to the Company to maintain its ownership percentage of less than 19.9% of the Company's outstanding shares . Amazon's option to sell shares may impact the Company's earnings in future periods. The Company’s accounting for the warrants and the sale option have been determined in accordance with the financial reporting guidance for financial instruments. Warrants and the sale option are 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. 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. 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, 2023 and 2022, the Company's liabilities reflected warrants and Amazon sale options from the 2018 Amazon agreements having a fair value of $1.7 million and $0.7 million, respectively. During the years ended December 31, 2023, 2022 and 2021, the re-measurements of warrants and sale options to fair value resulted in net non-operating losses of $1.0 million and gains of $0.2 million and $20.2 million before the effect of income taxes, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
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 ATSG's common stock price, the volatility of ATSG'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, 2023 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 1,248 $ — $ 1,248 Interest rate swap — — — — Total Assets $ — $ 1,248 $ — $ 1,248 Liabilities Interest rate swap $ — $ (529) $ — $ (529) Sale option — — (1,258) $ (1,258) Stock warrant obligations — — (471) (471) Total Liabilities $ — $ (529) $ (1,729) $ (2,258) As of December 31, 2022 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 4,047 $ — $ 4,047 Interest rate swap — 677 — 677 Total Assets $ — $ 4,724 $ — $ 4,724 Liabilities Interest rate swap $ — $ — $ — $ — Stock warrant obligations — — (695) (695) Total Liabilities $ — $ — $ (695) $ (695) At December 31, 2023 and 2022, 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 higher 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 $97.6 million less than the carrying value, which was $1,762.3 million at December 31, 2023. As of December 31, 2022, the fair value of the Company’s debt obligations was approximately $48.3 million more than the carrying value, which was $1,464.9 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, 2023 | |
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 $ 3,865,049 $ 3,506,134 Ground equipment 72,463 70,092 Leasehold improvements, facilities and office equipment 42,120 40,183 Aircraft modifications and projects in progress 638,631 445,633 4,618,263 4,062,042 Accumulated depreciation (1,797,494) (1,659,634) Property and equipment, net $ 2,820,769 $ 2,402,408 CAM owned aircraft with a carrying value of $1,640.9 million and $1,474.6 million that were under lease to external customers as of December 31, 2023 and 2022, respectively. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS Debt obligations consisted of the following (in thousands): December 31, 2023 December 31, 2022 Revolving credit facility 730,000 620,000 Senior notes 578,574 578,094 Convertible notes 444,420 256,903 Other financing arrangements 9,288 9,927 Total debt obligations 1,762,282 1,464,924 Less: current portion (54,710) (639) Total long term obligations, net $ 1,707,572 $ 1,464,285 On August 14, 2023 the Company issued $400.0 million aggregate principal amount of Convertible Senior Notes due 2029 ("2023 Convertible Notes"). These notes were issued in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "1933 Act"). The 2023 Convertible Notes bear interest at a rate of 3.875% per year payable semi-annually in arrears on February 15 and August 15 each year, beginning February 15, 2024. The 2023 Convertible Notes mature on August 15, 2029, unless earlier purchased, redeemed or converted in accordance with their terms prior to such date. The 2023 Convertible Notes are unsecured indebtedness, subordinated to the Company's existing and future secured indebtedness and other liabilities, including trade payables. Conversion of the 2023 Convertible Notes can only occur upon satisfaction of certain conditions and during certain periods, beginning any calendar quarter commencing after December 31, 2023 and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date. The Company will settle the principal value of the notes in cash. The initial conversion rate is 31.2864 common shares per $1,000 principal amount of 2023 Convertible Notes (equivalent to an initial conversion price of approximately $31.28 per common share). If a “make-whole fundamental change” (as defined in the offering circular with the 2023 Convertible Notes) occurs, ATSG will, in certain circumstances, increase the conversion rate for a specified period of time. Upon the occurrence of certain fundamental changes, holders of the 2023 Convertible Notes can require the Company to repurchase their notes for a cash repurchase price equal to the principal amount of the notes, plus any accrued and unpaid interest. The Company used a portion of the proceeds from the 2023 Convertible Notes to repurchase 5,435,777 shares of its common stock concurrently with offering of the 2023 Convertible Notes. Additionally, the Company used a portion of the proceeds to repurchase $204.5 million principal amount of its outstanding 1.125% Convertible Senior Notes issued in 2017 (the “2017 Convertible Notes”). The Company used the remainder of the proceeds from the offering to satisfy fees and expenses associated with the offering, to repay a portion of the outstanding borrowings under its revolving credit facility and for general corporate purposes. In addition, the Company is a party to a syndicated credit agreement (as amended, the "Senior Credit Agreement") which includes the ability to execute term loans and a revolving credit facility. On October 19, 2022, the Company amended the Senior Credit Agreement. This amendment i) increased the aggregate amount of the revolving credit facility from $800 million to $1 billion, ii) extended the maturity date of the agreement from April 6, 2026 to October 19, 2027, iii) replaced LIBOR with SOFR as an interest rate benchmark, iv) reduced the collateral to outstanding loan ratio to 1.15:1.00 from 1.25:1:00, v) permits cash dividends and share repurchases provided the secured leverage ratio is less than 3.00 to 1.00 and the total leverage ratio is less than 3.50 to 1.00, and removed the annual limitation on cash dividends and share repurchases which was $100 million. The interest rate is a pricing premium added to SOFR based upon the Company's debt to its earnings before interest, taxes, depreciation and amortization expenses ("EBITDA") as defined under the Senior Credit Agreement. As of December 31, 2023, the unused revolving credit facility available to the Company at the trailing twelve-month EBITDA level was $358.5 million, and additional permitted indebtedness under the Senior Credit Agreement subject to compliance with other covenants. On March 1, 2023, the Company entered into an additional revolving credit facility domiciled in Ireland (the "Irish Facility"). The terms and conditions of the Irish Facility are similar to the Senior Credit Agreement in the U.S. The Irish Facility has a maximum capacity of $100.0 million but has the ability to be upsized using the same accordion feature that is present in the Senior Credit Agreement. The maturity date of the Irish Facility is the same as the Senior Credit Agreement. On January 28, 2020, the Company, through its CAM subsidiary, completed a debt offering of $500.0 million in senior unsecured notes (the “Senior Notes”) that were guaranteed by ATSG and certain of its other subsidiaries. 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. 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. During 2022, the Company repurchased Senior Notes having a principal value of $120.0 million in the open market at a 5.5% reducing the Senior Notes carrying value to $578.0 million. The Company recognized a net pre-tax gain of $4.5 million, net of fees, which was recorded under net gain of financial instruments on the income statement during the corresponding period. The balance of the Senior Notes is net of debt issuance costs of $4.3 million and $5.4 million as of December 31, 2023 and 2022, respectively. 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 SOFR or prime rates. At the Company's debt-to-EBITDA ratio as December 31, 2023, the SOFR based financing for the revolving credit facility bear variable interest rates of 6.69%. The Senior Notes do not require principal payments until maturity but prepayments are allowed without penalty beginning February 1, 2025. 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 ("2017 Convertible Notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The 2017 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 2017 Convertible Notes mature on October 15, 2024, unless repurchased or converted in accordance with their terms prior to such date. The 2017 Convertible Notes are unsecured indebtedness, subordinated to the Company's existing and future secured indebtedness and other liabilities, including trade payables. Conversion of the 2017 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 2017 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 2017 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 2017 Convertible Notes) occurs, the Company will, in certain circumstances, increase the conversion rate for a specified period of time. In conjunction with the 2017 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 2017 Convertible Notes. The convertible note hedges are expected to reduce the potential equity dilution with respect to ATSG'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 2017 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 2017 Convertible Notes outstanding with cash. The conversion feature of the 2017 Convertible Notes required bifurcation from the principal amount under the applicable accounting guidance. On January 1, 2022 the Company adopted ASU 2020-06 using the modified retrospective approach as discussed in Note A which recombined the value of the previously bifurcated embedded feature with the convertible note and eliminated the discount. The carrying value of the Company's convertible debt is shown below (in thousands): 2017 Convertible Notes 2023 Convertible Notes Total Convertible Notes Principal Value December 31, 2022 $ 258,750 $ — $ 258,750 Issuance of convertible debt — 400,000 400,000 Repurchase of convertible debt (204,525) — (204,525) Unamortized issuance cost (165) (9,640) (9,805) Convertible Debt December 31, 2023 $ 54,060 $ 390,360 $ 444,420 In conjunction with the offering of the 2017 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. On August 14, 2023, the Company repurchased outstanding 2017 Convertible Notes having a principal value of $204.5 million in the open market, reducing the 2017 Convertible Notes carrying value to $54.2 million. The Company recognized a net pre-tax gain of $1.3 million, net of fees, which was recorded under net gain of financial instruments on the income statement during the corresponding period. In conjunction with the repurchase of the 2017 Convertible Notes the Company settled a pro-rata portion of the related warrants and note hedges and received $1.3 million in net cash proceeds. As of December 31, 2023 these warrants could result in 1.7 million additional shares of ATSG'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 scheduled cash principal payments for the Company's debt obligations, as of December 31, 2023, for the next five years are as follows (in thousands): Principal 2024 $ 54,875 2025 661 2026 672 2027 730,686 2028 580,735 2029 and beyond 405,924 Total principal cash payments 1,773,553 Less: unamortized issuance costs, premiums and discounts (11,271) Total debt obligations $ 1,762,282 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Expiration Date Stated Notional Market Notional Market March 31, 2023 2.425 % — — 125,625 677 March 31, 2026 3.793 % 50,000 237 — — March 31, 2026 3.836 % 50,000 189 — — June 30, 2026 4.257 % 50,000 (525) — — June 30, 2026 4.185 % 50,000 (430) — — |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
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 the Company recognized $111.7 million of the grants. 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 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 was not permitted to 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 sixteen 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 nine 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, 2023 and 2022, non-cash transactions to recognize right-to-use assets and corresponding liabilities for new leases were $8.5 million and $34.7 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, 2023 and 2022 was 4.0% and 3.2%, 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 3.9 years and 4.3 years as of December 31, 2023 and 2022, respectively. For the year ended December 31, 2023 and 2022, cash payments against operating lease liabilities were $26.0 million and $23.5 million, respectively. As of December 31, 2023, the maturities of operating lease liabilities are as follows (in thousands): Operating Leases 2024 $ 21,929 2025 15,508 2026 8,870 2027 4,583 2028 3,472 2029 and beyond 5,707 Total undiscounted cash payments 60,069 Less: amount representing interest (4,912) Present value of future minimum lease payments 55,157 Less: current obligations under leases (20,167) Long-term lease obligation $ 34,990 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, 2023, the Company owned fourteen Boeing 767-300 aircraft, six Airbus A321-200 aircraft and three Airbus A330 aircraft that were in or awaiting the modification process. As of December 31, 2023, the Company has agreements to purchase six more Boeing 767-300 aircraft and seven Airbus A330-300 passenger aircraft through 2025. As of December 31, 2023, the Company's commitments to acquire and convert these aircraft totaled $546.1 million, including estimated payments of $205.7 million through 2024 and the remaining payments through 2026. Actual conversion payments will be based on the achievement of progress milestones. The Company also has access to 20 additional slots for aircraft modifications with inductions between 2025 and the end of 2027. The Company’s costs related to such aircraft modifications could vary based on the Company’s election to utilize the modification slot, the timing of such election, the aircraft type and the vendor. Hangar Foam Discharge On August 7, 2022 the fire suppression system at one of the Company's aircraft maintenance hangars in Wilmington, Ohio malfunctioned and discharged a significant amount of expansive foam. The event impacted employees, three aircraft and equipment in and around the hangar at the time of discharge. The hangar resumed operations after approximately three weeks while the cause of the incident was investigated and the hangar was cleaned and restored. The Company maintains insurance for employee claims, remediation expenses, property and equipment damage, customer claims and business interruption subject to customary deductibles and policy limits. The anticipated insurance recoveries related to clean-up expenses, remediation, part repairs and property damages are recorded when receipt is probable. Insurance recoveries in excess of the net book value of the damaged operating assets and for business interruption claims are recorded when all contingencies related to the claim have been resolved . Through December 31, 2023, the Company has recognized charges in operating income for property damage and repairs, net of recorded insurance recoveries of $0.1 million compared to $1.0 million in 2022. Through December 31, 2023, the Company has incurred $6.8 million for losses resulting from the incident and recorded $5.8 million for insurance recoveries. Insurance receivables were $0.1 million and $2.8 million as of December 31, 2023 and 2022, respectively. 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. In addition, we carry various forms of aviation commercial, property and casualty, cybersecurity, product liability, and other forms of insurance; however, such insurance may not be applicable or adequate to cover the costs associated with a judgment against us. Employees Under Collective Bargaining Agreements As of December 31, 2023, the flight crewmember employees of ABX, ATI and OAI and flight attendant employees of ATI and OAI were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of ABX International Brotherhood of Teamsters 5.4% ATI Air Line Pilots Association 11.1% OAI International Brotherhood of Teamsters 6.5% ATI Association of Flight Attendants 0.8% OAI Association of Flight Attendants 6.4% |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
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 it s ABX employees th at 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. During December 2023, the Company transferred investment assets totaling $112.3 million from the pension plan trust to purchase a group annuity contract from Nationwide Life Insurance Company ("NLIC") for certain former non-pilot retirees of ABX (or their beneficiaries). The group annuity contract transfers the related payment obligations to NLIC. Additionally, during December 2023, the Company offered certain vested, non-pilot ABX employee participants of the pension plan a one-time option to settle their pension benefit with the Company through a single payment or a nonparticipating annuity contract. As a result, the Company settled $27.3 million of pension obligations in December 2023 using pension plan assets. As a result of these settlement transactions, the Company recognized pre-tax settlement charges of $24.1 million due to the reclassification of losses from accumulated other comprehensive loss to the statement of operations. Pension plan assets and benefit obligations are measured annually, 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 2023 2022 2023 2022 Accumulated benefit obligation $ 521,959 $ 648,242 $ 1,957 $ 2,672 Change in benefit obligation Obligation as of January 1 $ 648,242 $ 839,267 $ 2,672 $ 3,142 Service cost — — 53 76 Interest cost 34,526 24,173 132 59 Special termination benefits — — — — Plan amendment — — — — Plan transfers 2,276 2,386 — — Benefits paid (39,643) (37,998) (306) (308) Settlements (139,605) — — — Actuarial (gain) loss 16,163 (179,586) (594) (297) Obligation as of December 31 $ 521,959 $ 648,242 $ 1,957 $ 2,672 Change in plan assets Fair value as of January 1 $ 627,032 $ 850,195 $ — $ — Actual (loss) gain on plan assets 72,006 (188,855) — — Plan transfers 2,276 2,386 — — Return of excess premiums — — — — Employer contributions 1,310 1,304 306 308 Benefits paid (39,643) (37,998) (306) (308) Settlement payments $ (139,605) $ — $ — $ — Fair value as of December 31 $ 523,376 $ 627,032 $ — $ — Funded status 0 0 0 0 Overfunded plans, net asset $ 20,526 $ 13,194 $ — $ — Underfunded plans Current liabilities $ (1,380) $ (1,343) $ (319) $ (401) Non-current liabilities $ (17,731) $ (33,063) $ (1,638) $ (2,271) 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, 2023, 2022 and 2021, are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plan 2023 2022 2021 2023 2022 2021 Service cost $ — $ — $ — $ 53 $ 76 95 Interest cost 34,526 24,173 22,387 132 59 42 Expected return on plan assets (40,767) (46,954) (47,502) — — — Settlements 24,145 — — — — — Amortization of prior service cost — — — — — — Amortization of net loss 18,981 2,630 7,058 — 45 186 Net periodic benefit cost (income) $ 36,885 $ (20,151) $ (18,057) $ 185 $ 180 $ 323 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 2023 2022 2023 2022 Unrecognized prior service cost $ — $ — $ — $ — Unrecognized net actuarial loss 86,066 144,268 (518) 76 Accumulated other comprehensive loss $ 86,066 $ 144,268 $ (518) $ 76 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 2024 is $10.4 million and $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 2023 2022 2021 Discount rate - crewmembers 5.25% 5.50% 2.90% Discount rate - non-crewmembers 5.15% 5.50% 3.00% Expected return on plan assets - crewmembers 6.40% 6.75% 5.65% Expected return on plan assets - non-crewmembers 6.40% 6.65% 5.65% 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 5.10%, 5.35% and 2.00% for pilots at December 31, 2023, 2022 and 2021, 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 2023 2022 Cash 1 % 3 % Equity securities 28 % 27 % Fixed income securities 71 % 70 % 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 2023 and 2022, the Company made contributions to its defined benefit plans of $1.3 million and $1.3 million, respectively. The Company estimates that its contributions in 2024 will be approximately $1.4 million for its defined benefit pension plans and $0.3 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 2024 $ 33,392 $ 319 2025 35,704 337 2026 37,266 347 2027 38,868 348 2028 40,026 279 Years 2029 to 2033 199,310 691 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. 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, 2023 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 2,908 $ 2,908 Mutual funds — 34,569 34,569 Fixed income investments — 373,235 373,235 Benefit Plan Assets $ — $ 410,712 $ 410,712 Investments measured at net asset value ("NAV") 112,664 Total benefit plan assets $ 523,376 As of December 31, 2022 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 19,114 $ 19,114 Mutual funds — 166,143 166,143 Fixed income investments — 441,772 441,772 Benefit Plan Assets $ — $ 627,029 $ 627,029 Investments measured at net asset value ("NAV") 3 Total benefit plan assets $ 627,032 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, 2023 Common trust $ 112,664 (2) (3) 30 days $ — Total investments measured at NAV $ 112,664 $ — As of December 31, 2022 Hedge Funds & Private Equity $ 3 (1) 90 days $ — Total investments measured at NAV $ 3 $ — (1) Quarterly - hedge funds (2) Daily (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 $21.6 million, $20.9 million and $19.5 million for the years ended December 31, 2023, 2022 and 2021, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, the Company had cumulative net operating loss carryforwards (“NOL CFs”) for federal income tax purposes of approximately $173.3 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 $2.7 million net of a $0.3 million valuation allowance related to state NOL CFs, which have remaining lives ranging from one The significant components of the deferred income tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in thousands): December 31 2023 2022 Deferred tax assets: Net operating loss carryforward and federal credits $ 43,621 $ 63,200 Warrants 32,199 31,524 Operating lease obligation 11,583 15,727 Post-retirement employee benefits 570 3,081 Interest expense limitation 6,655 — Employee benefits other than post-retirement 3,776 5,666 Inventory reserve 3,238 2,920 Deferred revenue 6,952 4,863 Other 14,476 13,519 Deferred tax assets 123,070 140,500 Deferred tax liabilities: Accelerated depreciation (337,099) (326,804) Partnership items (6,263) (6,365) Operating lease assets (11,353) (15,492) State taxes (26,213) (24,207) Goodwill and intangible assets (23,529) (18,952) Valuation allowance against deferred tax assets (3,861) (3,861) Deferred tax liabilities (408,318) (395,681) Net deferred tax (liability) $ (285,248) $ (255,181) The following summarizes the Company’s income tax provisions (benefits) (in thousands): Years Ended December 31 2023 2022 2021 Current taxes: Federal $ 5,600 $ 6,965 $ — Foreign 218 784 — State 2,311 2,082 2,402 Deferred taxes: Federal 15,645 45,644 65,027 Foreign (451) (57) — State 1,168 8,642 4,795 Total deferred tax expense 16,362 54,229 69,822 Total income tax expense (benefit) from continuing operations $ 24,491 $ 64,060 $ 72,224 Income tax expense (benefit) from discontinued operations $ 167 $ 633 $ 722 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 2023 2022 2021 Statutory federal tax rate 21.0 % 21.0 % 21.0 % Foreign income taxes 0.3 % 0.2 % — % State income taxes, net of federal tax benefit 3.3 % 3.3 % 1.8 % Tax effect of stock compensation 1.6 % 0.2 % — % Tax effect of other non-deductible expenses 1.3 % 0.1 % 0.5 % Change to state statutory tax rates — % (0.1) % — % Foreign rate differential 0.4 % — % — % Other 1.2 % (0.1) % 0.7 % Effective income tax rate 29.1 % 24.6 % 24.0 % 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 2023 2022 2021 Statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.3 % 1.8 % 1.8 % Change in federal statutory tax rates — % — % — % Effective income tax rate 22.3 % 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, 2023, 2022 and 2021, 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 2023, 2022 and 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Foreign Currency Translation Total Balance as of January 1, 2021 (78,093) (549) (14) (78,656) Other comprehensive income (loss) before reclassifications: Actuarial gain for retiree liabilities 14,087 228 — 14,315 Foreign currency translation adjustment — — (6) (6) Amounts reclassified from accumulated other comprehensive income: Actuarial costs 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) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (56,223) 297 — (55,926) Amounts reclassified from accumulated other comprehensive income: Actuarial costs 2,630 45 — 2,675 Income Tax (Expense) or Benefit 12,006 (77) — 11,929 Other comprehensive income (loss), net of tax (41,587) 265 — (41,322) Balance as of December 31, 2022 (103,418) 36 (20) (103,402) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 15,076 594 — 15,670 Foreign currency translation adjustment — — 20 20 Amounts reclassified from accumulated other comprehensive income: Plan settlement 24,145 — — 24,145 Actuarial costs 18,980 — — 18,980 Income Tax (Expense) or Benefit (12,714) (128) — (12,842) Other comprehensive income (loss), net of tax 45,487 466 20 45,973 Balance as of December 31, 2023 (57,931) 502 — (57,429) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's Board of Directors has granted stock incentive awards to certain employees and board members pursuant to a long term incentive plan which was approved by the Company's stockholders in May 2005 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 2023 2022 2021 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of period 929,205 $ 21.83 978,188 $ 17.49 1,085,023 $ 17.14 Granted 661,396 20.46 292,577 35.19 273,845 26.65 Converted (374,267) 23.07 (327,160) 20.43 (316,430) 22.76 Expired (117,550) 24.12 (3,000) 40.02 (58,650) 24.79 Forfeited (32,000) 24.71 (11,400) 27.44 (5,600) 23.31 Outstanding at end of period 1,066,784 $ 20.19 929,205 $ 21.83 978,188 $ 17.49 Vested 501,810 $ 12.94 497,128 $ 13.05 414,949 $ 11.43 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 $20.78, $33.84 and $26.69 for 2023, 2022 and 2021, 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 $23.28, $46.20 and $26.50 for 2023, 2022 and 2021, respectively. The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2023, 2022 and 2021 using daily stock prices and using the following variables: 2023 2022 2021 Risk-free interest rate 3.7% 2.5% 0.3% Volatility 37.1% 38.3% 39.7% For the years ended December 31, 2023, 2022 and 2021, the Company recorded expense of $8.5 million, $8.3 million and $7.4 million, respectively, for stock incentive awards. At December 31, 2023, there was $9.9 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, 2023, none of the awards were convertible, 430,363 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 1,341,559 additional outstanding shares of ATSG's common stock depending on service, performance and market results through December 31, 2025. |
Common Stock and Earnings Per S
Common Stock and Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Common Stock and Earnings Per Share | COMMON STOCK AND EARNINGS PER SHARE Earnings per Share The calculation of basic and diluted earnings per common share is as follows (in thousands, except per share amounts): December 31 2023 2022 2021 Numerator: Earnings from continuing operations - basic $ 59,748 $ 196,438 $ 228,980 Gain from stock warrants revaluation, net of tax $ (174) $ (170) $ (15,564) Convertible debt interest charge, net of tax $ 2,160 $ 3,051 $ — Earnings from continuing operations - diluted $ 61,734 $ 199,319 $ 213,416 Denominator: Weighted-average shares outstanding for basic earnings per share 68,641 73,611 68,853 Common equivalent shares: Effect of stock-based compensation awards and warrants 1,251 6,602 7,363 Effect of convertible debt 5,669 8,111 — Weighted-average shares outstanding assuming dilution 75,561 88,324 76,216 Basic earnings per share from continuing operations $ 0.87 $ 2.67 $ 3.33 Diluted earnings per share from continuing operations $ 0.82 $ 2.26 $ 2.80 Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 288,371 shares, 226,449 shares and 283,139 shares of restricted stock for 2023, 2022 and 2021, respectively, which are accounted for as part of diluted weighted average shares outstanding in diluted earnings per share. |
Segment and Revenue Information
Segment and Revenue Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment and Revenue 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 2023 2022 2021 Total revenues: CAM $ 461,038 $ 434,686 $ 370,287 ACMI Services 1,399,764 1,404,348 1,185,128 All other 446,506 430,326 375,571 Eliminate inter-segment revenues (236,697) (223,891) (196,704) Total $ 2,070,611 $ 2,045,469 $ 1,734,282 Customer revenues: CAM $ 353,998 $ 317,167 $ 273,288 ACMI Services 1,399,622 1,404,254 1,185,113 All other 316,991 324,048 275,881 Total $ 2,070,611 $ 2,045,469 $ 1,734,282 The Company's external customer revenues from other activities for the years ending December 31, 2023, 2022 and 2021 are presented below (in thousands): Year Ended December 31, 2023 2022 2021 Aircraft maintenance, modifications and part sales $ 147,188 $ 145,998 $ 127,378 Ground services 95,505 107,080 99,133 Other, including aviation fuel sales 74,298 70,970 49,370 Total customer revenues $ 316,991 $ 324,048 $ 275,881 The Company recognized $15.7 million of non-lease revenue during 2023 that was reported in deferred revenue at the beginning of the year, compared to $4.7 million in 2022. Current deferred revenue of $4.5 million and $17.0 million as of December 31, 2023 and 2022, 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 $8.7 million as of December 31, 2023 compared to $0.0 million as of December 31, 2022. Cash will be collected over the term of the multi-year agreement based on number of engine 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, 2023, minimum future payments from external customers for leased aircraft and equipment were scheduled to be $271.2 million, $248.9 million, $226.6 million, $199.2 million and $164.1 million, respectively, for the next 5 years ending December 31, 2028 and $237.5 million thereafter. CAM's external customer revenues for non-lease activities were $34.3 million and $35.1 million during 2023 and 2022, respectively, for engine services and the sale of spare engine parts. ACMI Services external customer revenues included approximately $5.6 million, $10.1 million and $13.2 million for the years ended December 31, 2023, 2022 and 2021, respectively, for the rental income of specific aircraft included in the consideration paid by customers under certain contracts. The Company had revenues of approximately $725.6 million, $839.0 million and $701.9 million for 2023, 2022 and 2021, 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, 2023 and 2022, the Company had 27 and 25 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, 2023 2022 2021 Depreciation and amortization expense: CAM $ 243,537 $ 231,663 $ 203,675 ACMI Services 96,762 96,996 101,541 All other 2,686 2,405 3,232 Total $ 342,985 $ 331,064 $ 308,448 Interest expense CAM 48,136 30,880 38,160 ACMI Services 21,440 13,818 18,066 Segment earnings (loss): CAM $ 109,415 $ 143,008 $ 106,161 ACMI Services 32,006 95,198 158,733 All other (11,165) 2,579 112 Net unallocated interest expense (2,362) (1,748) (2,525) Net gain (loss) on financial instruments (962) 9,022 29,979 Debt issuance costs (936) — (6,505) Other non-service components of retiree benefit costs, net (37,017) 20,046 17,827 Loss from non-consolidated affiliate (4,740) (7,607) (2,577) Pre-tax earnings from continuing operations $ 84,239 $ 260,498 $ 301,205 The amortization of customer incentives included in revenue for CAM was $15.4 million, $20.1 million and $20.0 million for 2023, 2022 and 2021, respectively. The amortization of customer incentives included in revenue for ACMI Services was $3.2 million, $3.1 million and $3.1 million for 2023, 2022 and 2021 respectively. The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other. December 31 2023 2022 2021 Assets: CAM $ 2,885,508 $ 2,510,559 $ 2,218,012 ACMI Services 828,703 921,522 872,311 All other 167,879 157,812 177,012 Total $ 3,882,090 $ 3,589,893 $ 3,267,335 During 2023, the Company had capital expenditures for property and equipment of $86.2 million and $702.4 million for the ACMI Services and CAM, respectively. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | NOTE O—DISCONTINUED OPERATIONS The 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 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Account | Schedule II—Valuation and Qualifying Account Description Balance at Additions charged to Deductions Balance at end Accounts receivable reserve: Year ended: December 31, 2023 $ 939,061 $ 404,721 $ 278,156 $ 1,065,626 December 31, 2022 $ 741,806 $ 395,339 $ 198,084 $ 939,061 December 31, 2021 $ 996,860 $ 168,360 $ 423,414 $ 741,806 All other schedules are omitted because they are not applicable or are not required, or because the required information is included in the consolidated financial statements or notes thereto. |
Summary of Financial Statemen_2
Summary of Financial Statement Preparation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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. Cash includes restricted cash of $17.2 million as of December 31, 2023 and $1.9 million as of December 31, 2022. Restricted cash consists of customers’ deposits held in an escrow account as required by DOT regulations. |
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 composed 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. 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. |
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, Boeing 757 and Airbus A321 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 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 of 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, Airbus A321 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 | Capitalized Interest |
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 $3.7 million and $3.9 million at December 31, 2023 and December 31, 2022, 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 | 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 | Customer Security and Maintenance Deposits |
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 | Purchase of Common Stock |
Stock Warrants | Stock Warrants |
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 number of aircraft operated and number of 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. For its airframe maintenance and aircraft modification contracts, the Company typically records revenue based on the estimated transaction price 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 reflects 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. The Company offers 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 | Accounting Standards Updates The Company adopted Accounting Standards Update 2016-13 "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 Financial Accounting Standards Board ("FASB") issued ASU 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 resulted in the following adjustments: (in thousands) December 31, 2021 Adoption of ASU 2020-06 January 1, 2022 Balance Sheet line item: Principal value $ (258,750) $ — $ (258,750) Unamortized issuance cost $ 2,889 $ — $ 2,889 Unamortized discount $ 24,215 $ (24,215) $ — Convertible Debt $ (231,646) $ (24,215) $ (255,861) Net deferred tax liability $ (217,291) $ 5,527 $ (211,764) 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 2017 Convertible Notes due 2024 (as defined and discussed in Note F) are reflected entirely as a liability as the embedded conversion feature is no longer separately presented within stockholders' equity, which also eliminated the non-cash discount. Accordingly, earnings 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 2017 Convertible Notes is 1.5%. ASU 2020-06 requires the application of the more dilutive if-converted method when calculating the impact of the 2017 Convertible Notes on earnings per diluted share. The adoption of ASU 2020-06 does not change the accounting 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 2017 Convertible Notes, which are anti-dilutive and not reflected in earnings per diluted share. In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This standard requires disclosure of significant segment expenses and other segment items by reportable segment. This ASU becomes effective for annual periods beginning in 2024 and interim periods in 2025. The Company is assessing the impact of this ASU and upon adoption expects that any impact would be limited to additional segment expense disclosures in the footnotes to its consolidated financial statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This standard enhances disclosures related to income taxes, including the rate reconciliation and information on income taxes paid. This ASU becomes effective January 1, 2025. The Company is assessing the impact of this ASU and upon adoption expects to include certain additional disclosures in the footnotes to its consolidated financial statements. |
Summary of Financial Statemen_3
Summary of Financial Statement Preparation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Depreciable Lives | Depreciable lives are summarized as follows: Boeing 777, 767 and 757 aircraft, Airbus A321 aircraft and flight equipment 7 to 18 years Ground equipment 2 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years December 31, December 31, Flight equipment $ 3,865,049 $ 3,506,134 Ground equipment 72,463 70,092 Leasehold improvements, facilities and office equipment 42,120 40,183 Aircraft modifications and projects in progress 638,631 445,633 4,618,263 4,062,042 Accumulated depreciation (1,797,494) (1,659,634) Property and equipment, net $ 2,820,769 $ 2,402,408 |
Accounting Standards Update and Change in Accounting Principle | The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective approach which resulted in the following adjustments: (in thousands) December 31, 2021 Adoption of ASU 2020-06 January 1, 2022 Balance Sheet line item: Principal value $ (258,750) $ — $ (258,750) Unamortized issuance cost $ 2,889 $ — $ 2,889 Unamortized discount $ 24,215 $ (24,215) $ — Convertible Debt $ (231,646) $ (24,215) $ (255,861) Net deferred tax liability $ (217,291) $ 5,527 $ (211,764) Additional paid-in capital $ (1,074,286) $ 39,559 $ (1,034,727) Retained earnings $ (309,430) $ (20,871) $ (330,301) |
Goodwill, Intangibles and Equ_2
Goodwill, Intangibles and Equity Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
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, 2021 $ 153,290 $ 234,571 $ 8,113 $ 395,974 Carrying value as of December 31, 2022 $ 153,290 $ 234,571 $ 8,113 $ 395,974 Carrying value as of December 31, 2023 $ 153,290 $ 234,571 $ 8,113 $ 395,974 |
Schedule of Acquired Intangible Assets | The Company's acquired intangible assets are as follows (in thousands): Airline Amortizing Certificates Intangibles Total Carrying value as of December 31, 2021 $ 9,000 $ 100,151 $ 109,151 Amortization — (12,483) (12,483) Carrying value as of December 31, 2022 $ 9,000 $ 87,668 $ 96,668 Amortization — (10,215) (10,215) Carrying value as of December 31, 2023 $ 9,000 $ 77,453 $ 86,453 |
Schedule of Lease Incentive | The Company's lease incentive granted to the lessee was as follows (in thousands): Lease Incentive Carrying value as of December 31, 2021 $ 102,913 Amortization (23,263) Carrying value as of December 31, 2022 $ 79,650 Amortization (18,689) Carrying value as of December 31, 2023 $ 60,961 |
Significant Customers (Tables)
Significant Customers (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Significant Customers [Abstract] | |
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, 2023, 2022 and 2021 are as follows: Year Ended December 31, 2023 2022 2021 Customer Percentage of Revenue DoD 30% 30% 26% Amazon 34% 34% 35% DHL 12% 12% 12% The accounts receivable from the Company's three largest customers as of December 31, 2023 and 2022 are as follows (in thousands): Year Ending December 31, 2023 2022 Customer Accounts Receivable DoD $ 56,848 $ 125,156 Amazon 74,509 86,607 DHL 8,040 19,644 |
Schedule of Stockholders' Equity Note, Warrants or Rights | Issued and outstanding warrants are summarized below as of December 31, 2023: 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 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 1,248 $ — $ 1,248 Interest rate swap — — — — Total Assets $ — $ 1,248 $ — $ 1,248 Liabilities Interest rate swap $ — $ (529) $ — $ (529) Sale option — — (1,258) $ (1,258) Stock warrant obligations — — (471) (471) Total Liabilities $ — $ (529) $ (1,729) $ (2,258) As of December 31, 2022 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 4,047 $ — $ 4,047 Interest rate swap — 677 — 677 Total Assets $ — $ 4,724 $ — $ 4,724 Liabilities Interest rate swap $ — $ — $ — $ — Stock warrant obligations — — (695) (695) Total Liabilities $ — $ — $ (695) $ (695) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Depreciable lives are summarized as follows: Boeing 777, 767 and 757 aircraft, Airbus A321 aircraft and flight equipment 7 to 18 years Ground equipment 2 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years December 31, December 31, Flight equipment $ 3,865,049 $ 3,506,134 Ground equipment 72,463 70,092 Leasehold improvements, facilities and office equipment 42,120 40,183 Aircraft modifications and projects in progress 638,631 445,633 4,618,263 4,062,042 Accumulated depreciation (1,797,494) (1,659,634) Property and equipment, net $ 2,820,769 $ 2,402,408 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Debt obligations consisted of the following (in thousands): December 31, 2023 December 31, 2022 Revolving credit facility 730,000 620,000 Senior notes 578,574 578,094 Convertible notes 444,420 256,903 Other financing arrangements 9,288 9,927 Total debt obligations 1,762,282 1,464,924 Less: current portion (54,710) (639) Total long term obligations, net $ 1,707,572 $ 1,464,285 |
Convertible Debt | 2017 Convertible Notes 2023 Convertible Notes Total Convertible Notes Principal Value December 31, 2022 $ 258,750 $ — $ 258,750 Issuance of convertible debt — 400,000 400,000 Repurchase of convertible debt (204,525) — (204,525) Unamortized issuance cost (165) (9,640) (9,805) Convertible Debt December 31, 2023 $ 54,060 $ 390,360 $ 444,420 |
Schedule of Maturities of Long-term Debt | The scheduled cash principal payments for the Company's debt obligations, as of December 31, 2023, for the next five years are as follows (in thousands): Principal 2024 $ 54,875 2025 661 2026 672 2027 730,686 2028 580,735 2029 and beyond 405,924 Total principal cash payments 1,773,553 Less: unamortized issuance costs, premiums and discounts (11,271) Total debt obligations $ 1,762,282 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Expiration Date Stated Notional Market Notional Market March 31, 2023 2.425 % — — 125,625 677 March 31, 2026 3.793 % 50,000 237 — — March 31, 2026 3.836 % 50,000 189 — — June 30, 2026 4.257 % 50,000 (525) — — June 30, 2026 4.185 % 50,000 (430) — — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Operating Lease Maturities | As of December 31, 2023, the maturities of operating lease liabilities are as follows (in thousands): Operating Leases 2024 $ 21,929 2025 15,508 2026 8,870 2027 4,583 2028 3,472 2029 and beyond 5,707 Total undiscounted cash payments 60,069 Less: amount representing interest (4,912) Present value of future minimum lease payments 55,157 Less: current obligations under leases (20,167) Long-term lease obligation $ 34,990 |
Schedule of Employees Under Collective Bargaining Agreements | As of December 31, 2023, the flight crewmember employees of ABX, ATI and OAI and flight attendant employees of ATI and OAI were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of ABX International Brotherhood of Teamsters 5.4% ATI Air Line Pilots Association 11.1% OAI International Brotherhood of Teamsters 6.5% ATI Association of Flight Attendants 0.8% OAI Association of Flight Attendants 6.4% |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | Funded Status (in thousands): Pension Plans Post-retirement 2023 2022 2023 2022 Accumulated benefit obligation $ 521,959 $ 648,242 $ 1,957 $ 2,672 Change in benefit obligation Obligation as of January 1 $ 648,242 $ 839,267 $ 2,672 $ 3,142 Service cost — — 53 76 Interest cost 34,526 24,173 132 59 Special termination benefits — — — — Plan amendment — — — — Plan transfers 2,276 2,386 — — Benefits paid (39,643) (37,998) (306) (308) Settlements (139,605) — — — Actuarial (gain) loss 16,163 (179,586) (594) (297) Obligation as of December 31 $ 521,959 $ 648,242 $ 1,957 $ 2,672 Change in plan assets Fair value as of January 1 $ 627,032 $ 850,195 $ — $ — Actual (loss) gain on plan assets 72,006 (188,855) — — Plan transfers 2,276 2,386 — — Return of excess premiums — — — — Employer contributions 1,310 1,304 306 308 Benefits paid (39,643) (37,998) (306) (308) Settlement payments $ (139,605) $ — $ — $ — Fair value as of December 31 $ 523,376 $ 627,032 $ — $ — Funded status 0 0 0 0 Overfunded plans, net asset $ 20,526 $ 13,194 $ — $ — Underfunded plans Current liabilities $ (1,380) $ (1,343) $ (319) $ (401) Non-current liabilities $ (17,731) $ (33,063) $ (1,638) $ (2,271) |
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, 2023, 2022 and 2021, are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plan 2023 2022 2021 2023 2022 2021 Service cost $ — $ — $ — $ 53 $ 76 95 Interest cost 34,526 24,173 22,387 132 59 42 Expected return on plan assets (40,767) (46,954) (47,502) — — — Settlements 24,145 — — — — — Amortization of prior service cost — — — — — — Amortization of net loss 18,981 2,630 7,058 — 45 186 Net periodic benefit cost (income) $ 36,885 $ (20,151) $ (18,057) $ 185 $ 180 $ 323 |
Schedule of 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 2023 2022 2023 2022 Unrecognized prior service cost $ — $ — $ — $ — Unrecognized net actuarial loss 86,066 144,268 (518) 76 Accumulated other comprehensive loss $ 86,066 $ 144,268 $ (518) $ 76 |
Schedule of Assumptions Used | Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows: Pension Plans 2023 2022 2021 Discount rate - crewmembers 5.25% 5.50% 2.90% Discount rate - non-crewmembers 5.15% 5.50% 3.00% Expected return on plan assets - crewmembers 6.40% 6.75% 5.65% Expected return on plan assets - non-crewmembers 6.40% 6.65% 5.65% |
Schedule of Allocation of Plan Assets | The weighted-average asset allocations by asset category are as shown below: Composition of Plan Assets Asset category 2023 2022 Cash 1 % 3 % Equity securities 28 % 27 % Fixed income securities 71 % 70 % 100 % 100 % The pension plan assets measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2023 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 2,908 $ 2,908 Mutual funds — 34,569 34,569 Fixed income investments — 373,235 373,235 Benefit Plan Assets $ — $ 410,712 $ 410,712 Investments measured at net asset value ("NAV") 112,664 Total benefit plan assets $ 523,376 As of December 31, 2022 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 19,114 $ 19,114 Mutual funds — 166,143 166,143 Fixed income investments — 441,772 441,772 Benefit Plan Assets $ — $ 627,029 $ 627,029 Investments measured at net asset value ("NAV") 3 Total benefit plan assets $ 627,032 |
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 2024 $ 33,392 $ 319 2025 35,704 337 2026 37,266 347 2027 38,868 348 2028 40,026 279 Years 2029 to 2033 199,310 691 |
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, 2023 Common trust $ 112,664 (2) (3) 30 days $ — Total investments measured at NAV $ 112,664 $ — As of December 31, 2022 Hedge Funds & Private Equity $ 3 (1) 90 days $ — Total investments measured at NAV $ 3 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 and 2022 are as follows (in thousands): December 31 2023 2022 Deferred tax assets: Net operating loss carryforward and federal credits $ 43,621 $ 63,200 Warrants 32,199 31,524 Operating lease obligation 11,583 15,727 Post-retirement employee benefits 570 3,081 Interest expense limitation 6,655 — Employee benefits other than post-retirement 3,776 5,666 Inventory reserve 3,238 2,920 Deferred revenue 6,952 4,863 Other 14,476 13,519 Deferred tax assets 123,070 140,500 Deferred tax liabilities: Accelerated depreciation (337,099) (326,804) Partnership items (6,263) (6,365) Operating lease assets (11,353) (15,492) State taxes (26,213) (24,207) Goodwill and intangible assets (23,529) (18,952) Valuation allowance against deferred tax assets (3,861) (3,861) Deferred tax liabilities (408,318) (395,681) Net deferred tax (liability) $ (285,248) $ (255,181) |
Schedule of Components of Income Tax Expense (Benefit) | The following summarizes the Company’s income tax provisions (benefits) (in thousands): Years Ended December 31 2023 2022 2021 Current taxes: Federal $ 5,600 $ 6,965 $ — Foreign 218 784 — State 2,311 2,082 2,402 Deferred taxes: Federal 15,645 45,644 65,027 Foreign (451) (57) — State 1,168 8,642 4,795 Total deferred tax expense 16,362 54,229 69,822 Total income tax expense (benefit) from continuing operations $ 24,491 $ 64,060 $ 72,224 Income tax expense (benefit) from discontinued operations $ 167 $ 633 $ 722 |
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 2023 2022 2021 Statutory federal tax rate 21.0 % 21.0 % 21.0 % Foreign income taxes 0.3 % 0.2 % — % State income taxes, net of federal tax benefit 3.3 % 3.3 % 1.8 % Tax effect of stock compensation 1.6 % 0.2 % — % Tax effect of other non-deductible expenses 1.3 % 0.1 % 0.5 % Change to state statutory tax rates — % (0.1) % — % Foreign rate differential 0.4 % — % — % Other 1.2 % (0.1) % 0.7 % Effective income tax rate 29.1 % 24.6 % 24.0 % |
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 2023 2022 2021 Statutory federal tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal tax benefit 1.3 % 1.8 % 1.8 % Change in federal statutory tax rates — % — % — % Effective income tax rate 22.3 % 22.8 % 22.8 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, 2022 and 2021 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Foreign Currency Translation Total Balance as of January 1, 2021 (78,093) (549) (14) (78,656) Other comprehensive income (loss) before reclassifications: Actuarial gain for retiree liabilities 14,087 228 — 14,315 Foreign currency translation adjustment — — (6) (6) Amounts reclassified from accumulated other comprehensive income: Actuarial costs 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) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (56,223) 297 — (55,926) Amounts reclassified from accumulated other comprehensive income: Actuarial costs 2,630 45 — 2,675 Income Tax (Expense) or Benefit 12,006 (77) — 11,929 Other comprehensive income (loss), net of tax (41,587) 265 — (41,322) Balance as of December 31, 2022 (103,418) 36 (20) (103,402) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 15,076 594 — 15,670 Foreign currency translation adjustment — — 20 20 Amounts reclassified from accumulated other comprehensive income: Plan settlement 24,145 — — 24,145 Actuarial costs 18,980 — — 18,980 Income Tax (Expense) or Benefit (12,714) (128) — (12,842) Other comprehensive income (loss), net of tax 45,487 466 20 45,973 Balance as of December 31, 2023 (57,931) 502 — (57,429) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 2021 Number of Weighted Number of Weighted Number of Weighted Outstanding at beginning of period 929,205 $ 21.83 978,188 $ 17.49 1,085,023 $ 17.14 Granted 661,396 20.46 292,577 35.19 273,845 26.65 Converted (374,267) 23.07 (327,160) 20.43 (316,430) 22.76 Expired (117,550) 24.12 (3,000) 40.02 (58,650) 24.79 Forfeited (32,000) 24.71 (11,400) 27.44 (5,600) 23.31 Outstanding at end of period 1,066,784 $ 20.19 929,205 $ 21.83 978,188 $ 17.49 Vested 501,810 $ 12.94 497,128 $ 13.05 414,949 $ 11.43 |
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 2023, 2022 and 2021 using daily stock prices and using the following variables: 2023 2022 2021 Risk-free interest rate 3.7% 2.5% 0.3% Volatility 37.1% 38.3% 39.7% |
Common Stock and Earnings Per_2
Common Stock and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per common share is as follows (in thousands, except per share amounts): December 31 2023 2022 2021 Numerator: Earnings from continuing operations - basic $ 59,748 $ 196,438 $ 228,980 Gain from stock warrants revaluation, net of tax $ (174) $ (170) $ (15,564) Convertible debt interest charge, net of tax $ 2,160 $ 3,051 $ — Earnings from continuing operations - diluted $ 61,734 $ 199,319 $ 213,416 Denominator: Weighted-average shares outstanding for basic earnings per share 68,641 73,611 68,853 Common equivalent shares: Effect of stock-based compensation awards and warrants 1,251 6,602 7,363 Effect of convertible debt 5,669 8,111 — Weighted-average shares outstanding assuming dilution 75,561 88,324 76,216 Basic earnings per share from continuing operations $ 0.87 $ 2.67 $ 3.33 Diluted earnings per share from continuing operations $ 0.82 $ 2.26 $ 2.80 |
Segment and Revenue Informati_2
Segment and Revenue Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The Company's segment information from continuing operations is presented below (in thousands): Year Ended December 31 2023 2022 2021 Total revenues: CAM $ 461,038 $ 434,686 $ 370,287 ACMI Services 1,399,764 1,404,348 1,185,128 All other 446,506 430,326 375,571 Eliminate inter-segment revenues (236,697) (223,891) (196,704) Total $ 2,070,611 $ 2,045,469 $ 1,734,282 Customer revenues: CAM $ 353,998 $ 317,167 $ 273,288 ACMI Services 1,399,622 1,404,254 1,185,113 All other 316,991 324,048 275,881 Total $ 2,070,611 $ 2,045,469 $ 1,734,282 |
Revenue from External Customers from Other Activities | The Company's external customer revenues from other activities for the years ending December 31, 2023, 2022 and 2021 are presented below (in thousands): Year Ended December 31, 2023 2022 2021 Aircraft maintenance, modifications and part sales $ 147,188 $ 145,998 $ 127,378 Ground services 95,505 107,080 99,133 Other, including aviation fuel sales 74,298 70,970 49,370 Total customer revenues $ 316,991 $ 324,048 $ 275,881 |
Other Segment Information From Continuing Operations | The Company's other segment information from continuing operations is presented below (in thousands): Year Ended December 31, 2023 2022 2021 Depreciation and amortization expense: CAM $ 243,537 $ 231,663 $ 203,675 ACMI Services 96,762 96,996 101,541 All other 2,686 2,405 3,232 Total $ 342,985 $ 331,064 $ 308,448 Interest expense CAM 48,136 30,880 38,160 ACMI Services 21,440 13,818 18,066 Segment earnings (loss): CAM $ 109,415 $ 143,008 $ 106,161 ACMI Services 32,006 95,198 158,733 All other (11,165) 2,579 112 Net unallocated interest expense (2,362) (1,748) (2,525) Net gain (loss) on financial instruments (962) 9,022 29,979 Debt issuance costs (936) — (6,505) Other non-service components of retiree benefit costs, net (37,017) 20,046 17,827 Loss from non-consolidated affiliate (4,740) (7,607) (2,577) Pre-tax earnings from continuing operations $ 84,239 $ 260,498 $ 301,205 |
Schedule of Assets by Segment | The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other. December 31 2023 2022 2021 Assets: CAM $ 2,885,508 $ 2,510,559 $ 2,218,012 ACMI Services 828,703 921,522 872,311 All other 167,879 157,812 177,012 Total $ 3,882,090 $ 3,589,893 $ 3,267,335 |
Summary of Financial Statemen_4
Summary of Financial Statement Preparation and Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2022 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | ||||
Restricted cash | $ 17.2 | $ 1.9 | ||
Depreciation expense | 2.1 | |||
Capitalized interest | 8.2 | 3.2 | $ 3.5 | |
Other liabilities for self-insured reserves | $ 3.7 | $ 3.9 | ||
Convertible Notes | Convertible Debt | ||||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | ||||
Discount amortization expense | $ 6.4 | |||
Debt instrument, effective interest rate | 1.50% |
Summary of Financial Statemen_5
Summary of Financial Statement Preparation and Significant Accounting Policies - Schedule of Depreciable Lives (Details) | Dec. 31, 2023 |
Minimum | Support equipment | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 2 years |
Minimum | Leasehold Improvements, facilities and office equipment | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Minimum | Boeing 767 and 757 A&FE | Boeing 767 and 757 A&FE | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 7 years |
Maximum | Support equipment | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Maximum | Leasehold Improvements, facilities and office equipment | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 25 years |
Maximum | Boeing 767 and 757 A&FE | Boeing 767 and 757 A&FE | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |
Property, plant and equipment, useful life | 18 years |
Summary of Financial Statemen_6
Summary of Financial Statement Preparation and Significant Accounting Policies - Accounting Standards Update and Change in Accounting Principle (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Sep. 30, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Convertible Debt | $ (1,773,553) | ||||
Net deferred tax liability | (285,248) | $ (255,181) | $ (211,764) | $ (217,291) | |
Additional paid-in capital | (836,270) | (986,303) | (1,034,727) | (1,074,286) | |
Retained earnings | (589,209) | (528,882) | (330,301) | (309,430) | |
Convertible Debt | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Principal value | (258,750) | ||||
Unamortized issuance cost | (9,805) | ||||
Convertible Debt | Convertible Senior Notes Due 2024 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Principal value | (258,750) | (258,750) | (258,750) | $ (258,800) | |
Unamortized issuance cost | (165) | 2,889 | 2,889 | ||
Unamortized discount | 0 | 24,215 | |||
Convertible Debt | (255,861) | $ (231,646) | |||
Adoption of ASU 2020-06 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Net deferred tax liability | 5,527 | ||||
Additional paid-in capital | 39,559 | ||||
Retained earnings | (20,871) | ||||
Adoption of ASU 2020-06 | Convertible Debt | Convertible Senior Notes Due 2024 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Principal value | 0 | ||||
Unamortized issuance cost | 0 | ||||
Unamortized discount | (24,215) | ||||
Convertible Debt | $ (24,215) |
Goodwill, Intangibles and Equ_3
Goodwill, Intangibles and Equity Investments - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill [Line Items] | |||
Carrying value | $ 395,974 | $ 395,974 | $ 395,974 |
CAM | |||
Goodwill [Line Items] | |||
Carrying value | 153,290 | 153,290 | 153,290 |
ACMI Services | |||
Goodwill [Line Items] | |||
Carrying value | 234,571 | 234,571 | 234,571 |
All Other | |||
Goodwill [Line Items] | |||
Carrying value | $ 8,113 | $ 8,113 | $ 8,113 |
Goodwill, Intangibles and Equ_4
Goodwill, Intangibles and Equity Investments - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying value at beginning of period, airline certificates | $ 96,668 | $ 109,151 | |
Carrying value at beginning of period, amortizing intangibles | 87,668 | 100,151 | |
Amortization | (10,215) | (12,483) | $ (11,200) |
Carrying value at end of period, airline certificates | 86,453 | 96,668 | 109,151 |
Carrying value at end of period, amortizing intangibles | 77,453 | 87,668 | 100,151 |
Airline Certificates | |||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||
Carrying value at beginning of period, airline certificates | 9,000 | 9,000 | |
Carrying value at end of period, airline certificates | $ 9,000 | $ 9,000 | $ 9,000 |
Goodwill, Intangibles and Equ_5
Goodwill, Intangibles and Equity Investments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Apr. 30, 2022 | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Amortization of intangible assets | $ 10,215 | $ 12,483 | $ 11,200 | |
Finite-lived intangible asset, expected amortization, year one | 10,200 | |||
Finite-lived intangible asset, expected amortization, year two | 9,400 | |||
Finite-lived intangible asset, expected amortization, year three | 4,500 | |||
Finite-lived intangible asset, expected amortization, year four | 4,500 | |||
Finite-lived intangible asset, expected amortization, year five | 4,500 | |||
Amortization as a reduction to lease revenue, year one | 15,700 | |||
Amortization as a reduction to lease revenue, year two | 15,800 | |||
Amortization as a reduction to lease revenue, year three | 12,800 | |||
Amortization as a reduction to lease revenue, year four | 6,700 | |||
Amortization as a reduction to lease revenue, year five | 4,400 | |||
Carrying value of joint ventures | $ 22,700 | 18,900 | ||
321 Precision Conversions, LLC | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Equity method investment, ownership percentage | 49% | |||
Payments to acquire equity method investment | 14,900 | $ 2,500 | ||
GA Telesis Engine Services, LLC | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Equity method investment, ownership percentage | 40% | |||
Payments to acquire equity method investment | $ 1,600 | $ 1,600 | ||
Minimum | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Finite-lived intangible asset, useful life (in years) | 2 years | |||
Maximum | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||||
Finite-lived intangible asset, useful life (in years) | 15 years |
Goodwill, Intangibles and Equ_6
Goodwill, Intangibles and Equity Investments - Schedule of Lease Incentive (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Carrying value at beginning of period | $ 79,650 | $ 102,913 |
Amortization | (18,689) | |
Carrying value at end of period | $ 60,961 | $ 79,650 |
Significant Customers - Schedul
Significant Customers - Schedule of Revenue by Major Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance of $1,065 in 2023 and $939 in 2022 | $ 215,581 | $ 301,622 | |
DoD | Revenues from Leases and Contracted Services | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of the Company’s Employees | 30% | 30% | 26% |
DoD | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance of $1,065 in 2023 and $939 in 2022 | $ 56,848 | $ 125,156 | |
Amazon | Revenues from Leases and Contracted Services | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of the Company’s Employees | 34% | 34% | 35% |
Amazon | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance of $1,065 in 2023 and $939 in 2022 | $ 74,509 | $ 86,607 | |
DHL | Revenues from Leases and Contracted Services | Customer Concentration Risk | |||
Concentration Risk [Line Items] | |||
Percentage of the Company’s Employees | 12% | 12% | 12% |
DHL | Accounts Receivable | |||
Concentration Risk [Line Items] | |||
Accounts receivable, net of allowance of $1,065 in 2023 and $939 in 2022 | $ 8,040 | $ 19,644 |
Significant Customers - Narrati
Significant Customers - Narrative (Details) - aircraft | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Concentration Risk [Line Items] | |||
Number of aircraft | 27 | 25 | |
DHL | |||
Concentration Risk [Line Items] | |||
Lessor, number of leased aircraft | 13 | ||
Amazon | |||
Concentration Risk [Line Items] | |||
Lessor, number of leased aircraft | 37 | ||
B-767-200 | DHL | |||
Concentration Risk [Line Items] | |||
Lessor, number of leased aircraft | 1 | ||
B-767-300 | DHL | |||
Concentration Risk [Line Items] | |||
Lessor, number of leased aircraft | 12 | ||
B-767 | Maximum | DHL | |||
Concentration Risk [Line Items] | |||
Number of aircraft | 4 |
Significant Customers - Narra_2
Significant Customers - Narrative (Investment Agreement) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||||||||||||
Dec. 16, 2022 USD ($) shares | Oct. 07, 2022 USD ($) shares | May 29, 2022 aircraft | Dec. 07, 2021 USD ($) shares | Mar. 05, 2021 USD ($) $ / shares shares | May 29, 2020 aircraft shares | Dec. 22, 2018 aircraft shares | Mar. 08, 2016 tranche shares | Dec. 31, 2023 USD ($) aircraft $ / shares | Dec. 31, 2022 USD ($) aircraft | Dec. 31, 2021 USD ($) aircraft | Oct. 01, 2020 USD ($) shares | Sep. 08, 2020 USD ($) tranche shares | Mar. 08, 2018 shares | Feb. 09, 2016 $ / shares shares | |
Concentration Risk [Line Items] | |||||||||||||||
Number of aircraft | aircraft | 27 | 25 | |||||||||||||
Warrants and rights outstanding, term | 7 years | ||||||||||||||
Stock obligations | $ | $ 1,729 | $ 695 | |||||||||||||
Fair value adjustments of warrants | $ | $ (1,000) | $ 200 | $ 20,200 | ||||||||||||
2016 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Number of warrant tranches | tranche | 3 | 3 | |||||||||||||
Class of warrant or right, ownership percentage, maximum | 19.90% | 19.90% | |||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 14,900,000 | ||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 9.73 | ||||||||||||||
Amended 2016 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Class of warrant or right, ownership percentage, maximum | 19.90% | ||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 27.27 | ||||||||||||||
Class of warrant or right, cashless exercise, exercised (in shares) | 865,548 | ||||||||||||||
Class of warrant or right, cashless exercise, forfeited (in shares) | 480,047 | ||||||||||||||
Class of warrant or right, exercised (in shares) | 13,562,897 | ||||||||||||||
Proceeds from warrant exercises | $ | $ 132,000 | ||||||||||||||
Stock repurchased during period (in shares) | 260,000 | 250,000 | |||||||||||||
Stock repurchased during period, value | $ | $ 7,000 | $ 5,900 | |||||||||||||
2018 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 2,900,000 | ||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 21.53 | ||||||||||||||
Lessee, number of leased aircraft | aircraft | 5 | ||||||||||||||
Lessee, operating lease, option to extend | five years | ||||||||||||||
Lessee, operating lease, additional option to extend | 3 years | ||||||||||||||
Number of additional leased aircraft | aircraft | 10 | ||||||||||||||
Lessor, leased aircraft, number of lease extensions | aircraft | 20 | ||||||||||||||
2018 Investment Agreement | B-767-300 | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Number of aircraft | aircraft | 10 | ||||||||||||||
Lessor, number of leased aircraft | aircraft | 12 | 10 | 10 | ||||||||||||
Lessor, leased aircraft, option to extend, term | 3 years | ||||||||||||||
Lessee, number of leased aircraft | aircraft | 8 | ||||||||||||||
Lessor, leased aircraft, extended term | 3 years | ||||||||||||||
2018 Investment Agreement | B-767-200 | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Lessor, number of leased aircraft | aircraft | 12 | ||||||||||||||
Lessor, leased aircraft, term | 2 years | ||||||||||||||
Lessor, leased aircraft, option to extend, term | 3 years | ||||||||||||||
2018 Investment Agreement | Common Stock | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Common shares, vested (in shares) | 7,000,000 | 14,800,000 | |||||||||||||
2020 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Exercise price (in dollars per share) | $ / shares | $ 20.40 | ||||||||||||||
Lessor, leased aircraft, term | 10 years | ||||||||||||||
2020 Investment Agreement | B-767-300 | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Lessor, number of leased aircraft | aircraft | 12 | 12 | 11 | ||||||||||||
Tranche One | 2016 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 12,810,000 | ||||||||||||||
Class of warrant or right, vested (in shares) | 7,690,000 | ||||||||||||||
Tranche Two | 2016 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 1,590,000 | ||||||||||||||
Class of warrant or right, vested (in shares) | 5,120,000 | ||||||||||||||
Tranche Three | 2016 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 500,000 | ||||||||||||||
Class of warrant or right, securities, fair value | $ | $ 221,000 | ||||||||||||||
Class of warrant or right, number of securities granted for purchase (in shares) | 500,000 | ||||||||||||||
Tranche Three | 2018 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Common shares, vested (in shares) | 14,800,000 | ||||||||||||||
Class of warrant or right, securities, fair value | $ | $ 154,000 | ||||||||||||||
Tranche Three | 2020 Investment Agreement | |||||||||||||||
Concentration Risk [Line Items] | |||||||||||||||
Common shares, vested (in shares) | 7,000,000 | ||||||||||||||
Reclassification of liability to equity | $ | $ 82,400 |
Significant Customers - Sched_2
Significant Customers - Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - Common Stock shares in Thousands | Dec. 31, 2023 $ / shares shares |
2018 Investment Agreement, Exercise Price $21.53 | |
Class of Warrant or Right [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 21.53 |
Common shares, vested (in shares) | 14,800 |
Common stock, non-vested (in shares) | 0 |
2018 Investment Agreement, Exercise Price $20.40 | |
Class of Warrant or Right [Line Items] | |
Exercise price (in dollars per share) | $ / shares | $ 20.40 |
Common shares, vested (in shares) | 7,000 |
Common stock, non-vested (in shares) | 0 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Values (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Stock obligations | $ (1,729) | $ (695) |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents—money market | 1,248 | 4,047 |
Interest rate swap | 0 | 677 |
Total Assets | 1,248 | 4,724 |
Interest rate swap | 0 | |
Stock obligations | (471) | (695) |
Total Liabilities | (2,258) | (695) |
Level 1 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents—money market | 0 | 0 |
Interest rate swap | 0 | 0 |
Total Assets | 0 | 0 |
Interest rate swap | 0 | |
Interest rate swap | 0 | |
Stock obligations | 0 | 0 |
Total Liabilities | 0 | 0 |
Sale Option Fair Value | 0 | |
Level 2 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents—money market | 1,248 | 4,047 |
Interest rate swap | 0 | 677 |
Total Assets | 1,248 | 4,724 |
Interest rate swap | (529) | |
Interest rate swap | 0 | |
Stock obligations | 0 | 0 |
Total Liabilities | (529) | 0 |
Sale Option Fair Value | 0 | |
Level 3 | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents—money market | 0 | 0 |
Interest rate swap | 0 | 0 |
Total Assets | 0 | 0 |
Interest rate swap | 0 | |
Interest rate swap | 0 | |
Stock obligations | (471) | (695) |
Total Liabilities | (1,729) | $ (695) |
Sale Option Fair Value | (1,258) | |
Total [Member] | Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swap | (529) | |
Sale Option Fair Value | $ (1,258) |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) - Fair Value, Recurring - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value, debt | $ 1,762.3 | $ 1,464.9 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Difference between fair value and carrying value, debt | $ (97.6) | $ 48.3 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 4,618,263 | $ 4,062,042 |
Accumulated depreciation | (1,797,494) | (1,659,634) |
Property and equipment, net | 2,820,769 | 2,402,408 |
Flight equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 3,865,049 | 3,506,134 |
Ground equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 72,463 | 70,092 |
Leasehold improvements, facilities and office equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 42,120 | 40,183 |
Aircraft modifications and projects in progress | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 638,631 | $ 445,633 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Inventory | $ 49,939 | $ 57,764 |
CAM | Flight equipment | ||
Property, Plant and Equipment [Line Items] | ||
Leased aircraft, carrying value | $ 1,640,900 | $ 1,474,600 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Long Term Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other financing arrangements | ||
Total debt obligations | $ 1,762,282 | $ 1,464,924 |
Less: current portion | (54,710) | (639) |
Total long term obligations, net | 1,707,572 | 1,464,285 |
Revolving credit facility | ||
Other financing arrangements | ||
Total debt obligations | 730,000 | 620,000 |
Senior notes | ||
Other financing arrangements | ||
Total debt obligations | 578,574 | 578,094 |
Convertible Debt | ||
Other financing arrangements | ||
Total debt obligations | 444,420 | 256,903 |
Other financing arrangements | ||
Other financing arrangements | ||
Total debt obligations | $ 9,288 | $ 9,927 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||||
Aug. 14, 2023 USD ($) $ / shares shares | Apr. 13, 2021 USD ($) | Sep. 30, 2017 USD ($) shares $ / shares $ / Unit | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 29, 2024 USD ($) | Oct. 19, 2022 USD ($) | Oct. 18, 2022 USD ($) | Jan. 01, 2022 USD ($) | Jan. 28, 2020 USD ($) | |
Other financing arrangements | |||||||||||
Senior notes carrying value | $ 1,762,282 | $ 1,464,924 | |||||||||
Debt issuance costs | 936 | 0 | $ 6,505 | ||||||||
Stock Repurchased and Retired During Period, Shares | shares | 5,435,777 | ||||||||||
Revolving credit facility | |||||||||||
Other financing arrangements | |||||||||||
Senior notes carrying value | 730,000 | 620,000 | |||||||||
Revolving credit facility | Senior Credit Agreement | Line of Credit | |||||||||||
Other financing arrangements | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 800,000 | ||||||||||
Revolving credit facility | Amended Senior Credit Agreement | Line of Credit | |||||||||||
Other financing arrangements | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 1,000,000 | ||||||||||
Credit facility, revolving credit loan, remaining borrowing capacity | 358,500 | ||||||||||
Debt instrument, covenant, collateral to outstanding loan ratio | 1.15 | 1.25 | |||||||||
Debt instrument, covenant, secured leverage ratio, maximum | 3 | ||||||||||
Debt instrument, covenant, total leverage ratio, maximum | 3.50 | ||||||||||
Debt instrument, annual limitation on cash dividends and share repurchases, maximum | $ 100,000 | ||||||||||
Maximum amount of common stock authorized for repurchase | $ 100,000 | ||||||||||
Debt instrument, covenant, total debt to EBITDA ratio, maximum | 3.50 | ||||||||||
Debt instrument, covenant, secured debt to EBITDA ratio, maximum | 3 | ||||||||||
Revolving credit facility | Irish Facility | Line of Credit | Subsequent Event | |||||||||||
Other financing arrangements | |||||||||||
Line of credit facility, maximum borrowing capacity | $ 100,000 | ||||||||||
Convertible Debt | |||||||||||
Other financing arrangements | |||||||||||
Principal value | 258,750 | ||||||||||
Senior notes carrying value | $ 444,420 | 256,903 | |||||||||
Debt Instrument, Repurchased Face Amount | (204,525) | ||||||||||
Convertible Debt | Convertible Senior Notes Due 2024 | |||||||||||
Other financing arrangements | |||||||||||
Debt instrument, interest rate, stated percentage | 1.125% | 1.125% | |||||||||
Principal value | $ 258,800 | 258,750 | $ 258,750 | $ 258,750 | |||||||
Senior notes carrying value | 54,060 | ||||||||||
Gain (loss) on repurchase of debt instrument | $ 1,300 | ||||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 31.90 | ||||||||||
Debt instrument, convertible, number of equity instruments (in shares) | shares | 8,100,000 | ||||||||||
Derivative, price risk option strike price (in dollars per share) | $ / Unit | 31.90 | ||||||||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | shares | 1,700,000 | ||||||||||
Exercise price (in dollars per share) | $ / shares | $ 41.35 | ||||||||||
Debt instrument, convertible, conversion ratio | 0.0313475 | ||||||||||
Payments for hedge | $ 56,100 | ||||||||||
Debt Instrument, Repurchased Face Amount | $ 204,500 | $ 204,525 | |||||||||
Convertible Debt | Convertible Senior Notes Due 2029 | |||||||||||
Other financing arrangements | |||||||||||
Debt instrument, interest rate, stated percentage | 3.875% | ||||||||||
Principal value | $ 400,000 | 0 | |||||||||
Senior notes carrying value | 390,360 | ||||||||||
Debt instrument, convertible, conversion price (in dollars per share) | $ / shares | $ 31.28 | ||||||||||
Debt Instrument, Repurchased Face Amount | 0 | ||||||||||
Senior notes | |||||||||||
Other financing arrangements | |||||||||||
Senior notes carrying value | $ 578,574 | 578,094 | |||||||||
Senior notes | Senior Notes | |||||||||||
Other financing arrangements | |||||||||||
Debt instrument, interest rate, stated percentage | 5.50% | 4.75% | |||||||||
Principal value | $ 200,000 | $ 500,000 | |||||||||
Proceeds from bond issuance | 205,500 | ||||||||||
Debt instrument, repurchase amount | $ 120,000 | ||||||||||
Senior notes carrying value | 578,000 | ||||||||||
Gain (loss) on repurchase of debt instrument | 4,500 | ||||||||||
Debt issuance costs, line of credit arrangements, net | $ (4,300) | $ (5,400) | |||||||||
Debt instrument, interest rate during period | 6.69% | ||||||||||
Debt issuance costs | $ 6,500 |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Convertible Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Aug. 14, 2023 | Jan. 01, 2022 | Sep. 30, 2017 | |
Other financing arrangements | ||||||
Convertible Debt | $ 1,773,553 | |||||
Total debt obligations | 1,762,282 | $ 1,464,924 | ||||
Proceeds from bond issuance | 0 | 0 | $ 207,400 | |||
Convertible Debt | ||||||
Other financing arrangements | ||||||
Principal value | 258,750 | |||||
Issuance of convertible debt | 9,805 | |||||
Debt Instrument, Repurchased Face Amount | 204,525 | |||||
Total debt obligations | 444,420 | 256,903 | ||||
Proceeds from bond issuance | 400,000 | |||||
Convertible Debt | Convertible Senior Notes Due 2024 | ||||||
Other financing arrangements | ||||||
Principal value | 258,750 | 258,750 | $ 258,750 | $ 258,800 | ||
Issuance of convertible debt | 165 | (2,889) | (2,889) | |||
Repurchase of convertible debt | (24,215) | 0 | ||||
Convertible Debt | $ 231,646 | $ 255,861 | ||||
Debt Instrument, Repurchased Face Amount | (204,525) | $ (204,500) | ||||
Total debt obligations | 54,060 | |||||
Proceeds from bond issuance | 0 | |||||
Convertible Debt | Convertible Senior Notes Due 2029 | ||||||
Other financing arrangements | ||||||
Principal value | $ 0 | $ 400,000 | ||||
Issuance of convertible debt | 9,640 | |||||
Debt Instrument, Repurchased Face Amount | 0 | |||||
Total debt obligations | 390,360 | |||||
Proceeds from bond issuance | $ 400,000 |
Debt Obligations - Schedule o_3
Debt Obligations - Schedule of Long Term Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Principal Payments | ||
2024 | $ 54,875 | |
2025 | 661 | |
2026 | 672 | |
2027 | 730,686 | |
2028 | 580,735 | |
2029 and beyond | 405,924 | |
Convertible Debt | 1,773,553 | |
Less: unamortized issuance costs, premiums and discounts | (11,271) | |
Total debt obligations | $ 1,762,282 | $ 1,464,924 |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Interest Rate Swap 1.950% Stated Interest | ||
Derivative [Line Items] | ||
Stated Interest Rate | 3.793% | |
Notional Amount | $ 50,000 | $ 0 |
Interest rate swap | $ (237) | 0 |
Interest Rate Swap 2.425 Stated Interest | ||
Derivative [Line Items] | ||
Stated Interest Rate | 2.425% | |
Notional Amount | $ 0 | 125,625 |
Interest rate swap | $ 0 | 677 |
Interest Rate Swap 3.836% Stated Interest | ||
Derivative [Line Items] | ||
Stated Interest Rate | 3.836% | |
Notional Amount | $ 50,000 | 0 |
Interest rate swap | $ (189) | 0 |
Interest Rate Swap 4.257% Stated Interest | ||
Derivative [Line Items] | ||
Stated Interest Rate | 4.257% | |
Notional Amount | $ 50,000 | 0 |
Interest rate swap | $ 525 | 0 |
Interest Rate Swap 4.185% Stated Interest | ||
Derivative [Line Items] | ||
Stated Interest Rate | 4.185% | |
Notional Amount | $ 50,000 | 0 |
Interest rate swap | $ 430 | $ 0 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest Rate Swap | |||
Derivative [Line Items] | |||
Net loss (gain) on financial instruments | $ 1.2 | $ (4.3) | $ (9.8) |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) aircraft | Dec. 31, 2022 USD ($) | Aug. 07, 2022 hangar aircraft | Dec. 31, 2021 USD ($) subsidiary | Apr. 30, 2021 USD ($) | Feb. 28, 2021 USD ($) | |
Other Commitments [Line Items] | ||||||
Number of airline subsidiaries | subsidiary | 2 | |||||
Government grant awarded | $ | $ 75.8 | $ 40 | $ 37.4 | |||
Government grant awarded, increase | $ | $ 5.6 | |||||
Right-of-use asset obtained in exchange for operating lease liability | $ | $ 8.5 | $ 34.7 | ||||
Operating lease, weighted average discount rate, percent | 4% | 3.20% | ||||
Operating lease, weighted average remaining lease, term (in years) | 3 years 10 months 24 days | 4 years 3 months 18 days | ||||
Operating lease, payments | $ | $ 26 | $ 23.5 | ||||
Contractual obligation | $ | 546.1 | |||||
Contractual obligation, to be paid, year one | $ | 205.7 | |||||
Number of aircrafts | 3 | |||||
Loss contingency, receivable | $ | $ 0.1 | $ 1 | ||||
Number of aircraft hangars | hangar | 1 | |||||
Property Leases | Minimum | ||||||
Other Commitments [Line Items] | ||||||
Lessee, operating lease, term of contract | 1 month | |||||
Property Leases | Maximum | ||||||
Other Commitments [Line Items] | ||||||
Lessee, operating lease, term of contract | 9 years | |||||
Equipment Leases | Minimum | ||||||
Other Commitments [Line Items] | ||||||
Lessee, operating lease, term of contract | 1 month | |||||
Equipment Leases | Maximum | ||||||
Other Commitments [Line Items] | ||||||
Lessee, operating lease, term of contract | 5 years | |||||
Aircraft Provided By Customers | ||||||
Other Commitments [Line Items] | ||||||
Lessee, number of leased aircraft | 16 | |||||
Aircraft Leased From External Customers | ||||||
Other Commitments [Line Items] | ||||||
Lessee, number of leased aircraft | 4 | |||||
B-767-300 | ||||||
Other Commitments [Line Items] | ||||||
Number of owned aircrafts | 14 | |||||
Number of aircrafts to be purchased | 6 | |||||
A-321-200 | ||||||
Other Commitments [Line Items] | ||||||
Number of owned aircrafts | 6 | |||||
A-330-200 | ||||||
Other Commitments [Line Items] | ||||||
Number of aircrafts to be purchased | 7 | |||||
A330-300 | ||||||
Other Commitments [Line Items] | ||||||
Number of owned aircrafts | 3 |
Commitments and Contingencies_2
Commitments and Contingencies - Schedule of Operating Lease Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2024 | $ 21,929 | |
2025 | 15,508 | |
2026 | 8,870 | |
2027 | 4,583 | |
2028 | 3,472 | |
2029 and beyond | 5,707 | |
Total undiscounted cash payments | 60,069 | |
Less: amount representing interest | (4,912) | |
Present value of future minimum lease payments | 55,157 | |
Less: current obligations under leases | (20,167) | $ (23,316) |
Long-term lease obligation | $ 34,990 | $ 51,575 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Employees Under Collective Bargaining Employees (Details) - Workforce Subject to Collective Bargaining Arrangements - Unionized Employees Concentration Risk | 12 Months Ended |
Dec. 31, 2023 | |
ABX | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 5.40% |
ATI | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 11.10% |
OAI | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 6.50% |
ATI | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 0.80% |
OAI | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 6.40% |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefit Plans - Net Funded Status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plans | |||
Change in benefit obligation | |||
Obligation, beginning balance | $ 648,242 | $ 839,267 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 34,526 | 24,173 | 22,387 |
Special termination benefits | 0 | 0 | |
Plan amendment | 0 | 0 | |
Plan transfers | 2,276 | 2,386 | |
Return of excess premiums | 0 | 0 | |
Benefits paid | (39,643) | (37,998) | |
Settlement payments | (139,605) | 0 | |
Settlements | (139,605) | 0 | |
Actuarial (gain) loss | 16,163 | (179,586) | |
Obligation, ending balance | 521,959 | 648,242 | 839,267 |
Change in plan assets | |||
Actual (loss) gain on plan assets | 72,006 | (188,855) | |
Employer contributions | 1,310 | 1,304 | |
Funded status | |||
Funded status | 20,526 | 13,194 | |
Pension Plans | Fair Value, Recurring | |||
Change in plan assets | |||
Plan assets, beginning balance | 627,032 | 850,195 | |
Plan assets, ending balance | 523,376 | 627,032 | 850,195 |
Pension Plans | Current liabilities | |||
Funded status | |||
Funded status | (1,380) | (1,343) | |
Pension Plans | Non-current liabilities | |||
Funded status | |||
Funded status | (17,731) | (33,063) | |
Post-retirement Healthcare Plans | |||
Change in benefit obligation | |||
Obligation, beginning balance | 2,672 | 3,142 | |
Service cost | 53 | 76 | 95 |
Interest cost | 132 | 59 | 42 |
Special termination benefits | 0 | 0 | |
Plan amendment | 0 | 0 | |
Plan transfers | 0 | 0 | |
Return of excess premiums | 0 | 0 | |
Benefits paid | (306) | (308) | |
Settlement payments | 0 | 0 | |
Settlements | 0 | 0 | |
Actuarial (gain) loss | (594) | (297) | |
Obligation, ending balance | 1,957 | 2,672 | 3,142 |
Change in plan assets | |||
Actual (loss) gain on plan assets | 0 | 0 | |
Employer contributions | 306 | 308 | |
Funded status | |||
Funded status | 0 | 0 | |
Post-retirement Healthcare Plans | Fair Value, Recurring | |||
Change in plan assets | |||
Plan assets, beginning balance | 0 | 0 | |
Plan assets, ending balance | 0 | 0 | $ 0 |
Post-retirement Healthcare Plans | Current liabilities | |||
Funded status | |||
Funded status | (319) | (401) | |
Post-retirement Healthcare Plans | Non-current liabilities | |||
Funded status | |||
Funded status | $ (1,638) | $ (2,271) |
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, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pension Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 34,526 | 24,173 | 22,387 |
Expected return on plan assets | (40,767) | (46,954) | (47,502) |
Settlements | 24,145 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 18,981 | 2,630 | 7,058 |
Net periodic benefit cost (income) | 36,885 | (20,151) | (18,057) |
Post-retirement Healthcare Plans | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 53 | 76 | 95 |
Interest cost | 132 | 59 | 42 |
Expected return on plan assets | 0 | 0 | 0 |
Settlements | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net loss | 0 | 45 | 186 |
Net periodic benefit cost (income) | $ 185 | $ 180 | $ 323 |
Pension and Other Post-Retire_5
Pension and Other Post-Retirement Benefit Plans - Unrecognized Net Periodic Benefit Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | $ 0 | $ 0 |
Unrecognized net actuarial loss | 86,066 | 144,268 |
Accumulated other comprehensive loss | 86,066 | 144,268 |
Net periodic benefit expense | 10,400 | |
Post-retirement Healthcare Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | 0 | 0 |
Unrecognized net actuarial loss | (518) | 76 |
Accumulated other comprehensive loss | (518) | $ 76 |
Net periodic benefit expense | $ (100) |
Pension and Other Post-Retire_6
Pension and Other Post-Retirement Benefit Plans - Schedule of Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Crewmembers | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 5.25% | 5.50% | 2.90% |
Return of excess premiums | 6.40% | 6.75% | 5.65% |
Non-crewmembers | Pension Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 5.15% | 5.50% | 3% |
Return of excess premiums | 6.40% | 6.65% | 5.65% |
Pilots | Post-retirement Healthcare Plans | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 5.10% | 5.35% | 2% |
Pension and Other Post-Retire_7
Pension and Other Post-Retirement Benefit Plans - Allocation of Plan Assets (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 100% | 100% |
Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 1% | 3% |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 28% | 27% |
Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 71% | 70% |
Minimum | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 0% | |
Minimum | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 15% | |
Minimum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 60% | |
Maximum | Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 10% | |
Maximum | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 35% | |
Maximum | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 80% | |
Maximum | US Treasury Securities | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 5% | |
Maximum | US Treasury Securities | Fixed income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 10% |
Pension and Other Post-Retire_8
Pension and Other Post-Retirement Benefit Plans - Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Defined Benefit Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 1,310 | $ 1,304 |
Estimated future employer contributions | 1,400 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2024 | 33,392 | |
2025 | 35,704 | |
2026 | 37,266 | |
2027 | 38,868 | |
2028 | 40,026 | |
Years 2029 to 2033 | 199,310 | |
Post-retirement Healthcare Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 306 | $ 308 |
Estimated future employer contributions | 300 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2024 | 319 | |
2025 | 337 | |
2026 | 347 | |
2027 | 348 | |
2028 | 279 | |
Years 2029 to 2033 | $ 691 |
Pension and Other Post-Retire_9
Pension and Other Post-Retirement Benefit Plans - Fair Value of Plan Assets (Details) - Pension Plans - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 523,376 | $ 627,032 | $ 850,195 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 410,712 | 627,029 | |
Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 410,712 | 627,029 | |
Common trust funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Common trust funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 2,908 | 19,114 | |
Common trust funds | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 2,908 | 19,114 | |
Mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 34,569 | 166,143 | |
Mutual funds | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 34,569 | 166,143 | |
Fixed income investments | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Fixed income investments | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 373,235 | 441,772 | |
Fixed income investments | Total | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 373,235 | 441,772 | |
Investments measured at net asset value ("NAV") | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 112,664 | $ 3 |
Pension and Other Post-Retir_10
Pension and Other Post-Retirement Benefit Plans - Level Three Defined Benefit Plan Assets Roll Forward (Details) - Pension Plans - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Recurring | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | $ 850,195 | |
Plan assets, ending balance | 627,032 | $ 850,195 |
Fair Value | Fair Value, Recurring | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | 3 | |
Plan assets, ending balance | $ 112,664 | $ 3 |
Common trust | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Redemption Notice Period | 30 days | 90 days |
Common trust | Fair Value | Fair Value, Recurring | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | $ 3 | |
Plan assets, ending balance | $ 112,664 | $ 3 |
Pension and Other Post-Retir_11
Pension and Other Post-Retirement Benefit Plans - Defined Contribution Plan Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capital accumulation plans [Member] | |||
Schedule of Defined Contribution Plans [Line Items] | |||
Defined contribution plan expense | $ 21.6 | $ 20.9 | $ 19.5 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Income Tax Disclosure [Line Items] | |
Deferred tax asset, operating loss carryforwards | $ 2.7 |
Federal | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforwards | 173.3 |
State and Local Jurisdiction | |
Income Tax Disclosure [Line Items] | |
Valuation allowance, operating loss carryforwards | $ 0.3 |
State and Local Jurisdiction | Maximum | |
Income Tax Disclosure [Line Items] | |
Operating loss carryforwards, remaining life (in years) | 20 years |
State and Local Jurisdiction | Minimum | |
Income Tax Disclosure [Line Items] | |
Operating loss carryforwards, remaining life (in years) | 1 year |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||||
Net operating loss carryforward and federal credits | $ 43,621 | $ 63,200 | ||
Warrants | 32,199 | 31,524 | ||
Operating lease obligation | 11,583 | 15,727 | ||
Post-retirement employee benefits | 570 | 3,081 | ||
Deferred Tax Asset, Interest Carryforward | 6,655 | 0 | ||
Employee benefits other than post-retirement | 3,776 | 5,666 | ||
Inventory reserve | 3,238 | 2,920 | ||
Deferred revenue | 6,952 | 4,863 | ||
Other | 14,476 | 13,519 | ||
Deferred tax assets | 123,070 | 140,500 | ||
Deferred tax liabilities: | ||||
Accelerated depreciation | (337,099) | (326,804) | ||
Partnership items | (6,263) | (6,365) | ||
Operating lease assets | (11,353) | (15,492) | ||
State taxes | (26,213) | (24,207) | ||
Goodwill and intangible assets | (23,529) | (18,952) | ||
Valuation allowance against deferred tax assets | (3,861) | (3,861) | ||
Deferred tax liabilities | (408,318) | (395,681) | ||
Net deferred tax (liability) | $ (285,248) | $ (255,181) | $ (211,764) | $ (217,291) |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current taxes: | |||
Federal | $ 5,600 | $ 6,965 | $ 0 |
Foreign | 218 | 784 | 0 |
State | 2,311 | 2,082 | 2,402 |
Deferred taxes: | |||
Federal | 15,645 | 45,644 | 65,027 |
Foreign | (451) | (57) | 0 |
State | 1,168 | 8,642 | 4,795 |
Deferred income taxes | 16,362 | 69,822 | |
Total income tax expense (benefit) from continuing operations | 24,491 | 64,060 | 72,225 |
Income tax expense (benefit) from discontinued operations | $ 167 | 633 | 722 |
Prior Period Error, Previously Reported, Not Revised | |||
Deferred taxes: | |||
Deferred income taxes | 54,229 | ||
Total income tax expense (benefit) from continuing operations | $ 64,060 | $ 72,224 |
Income Taxes - Tax Rate Reconci
Income Taxes - Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 21% | 21% | 21% |
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Percent | 0.30% | 0.20% | 0% |
Foreign income taxes | 0.40% | 0% | 0% |
State income taxes, net of federal tax benefit | 3.30% | 3.30% | 1.80% |
Tax effect of stock compensation | 1.60% | 0.20% | 0% |
Tax effect of other non-deductible expenses | 1.30% | 0.10% | 0.50% |
Change to state statutory tax rates | 0% | (0.10%) | 0% |
Other | 1.20% | (0.10%) | 0.70% |
Effective income tax rate | 29.10% | 24.60% | 24% |
Income Taxes - Tax Rate Recon_2
Income Taxes - Tax Rate Reconciliation - Discontinued Operations (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory federal tax rate | 21% | 21% | 21% |
State income taxes, net of federal tax benefit | 1.30% | 1.80% | 1.80% |
Effective income tax rate | 22.30% | 22.80% | 22.80% |
2017 Tax Cuts and Jobs Act | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory federal tax rate | 0% | 0% | 0% |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | |||
Unrecognized tax benefits | $ 0 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance | $ 1,412,506 | $ 1,322,377 | $ 855,497 |
Actuarial gain (loss) for retiree liabilities | 15,670 | (55,926) | 14,315 |
Foreign currency translation adjustment | 20 | (6) | |
Ending balance | 1,368,702 | 1,412,506 | 1,322,377 |
Defined Benefit Pension | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance | (103,418) | (61,831) | (78,093) |
Actuarial gain (loss) for retiree liabilities | 15,076 | (56,223) | 14,087 |
Actuarial costs | 18,980 | 2,630 | 7,056 |
Income Tax (Expense) or Benefit | (12,714) | 12,006 | (4,881) |
Other comprehensive income (loss), net of tax | 45,487 | (41,587) | 16,262 |
Ending balance | (57,931) | (103,418) | (61,831) |
Defined Benefit Pension | Cash Settlement | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Actuarial costs | 24,145 | ||
Defined Benefit Post-Retirement | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance | 36 | (229) | (549) |
Actuarial gain (loss) for retiree liabilities | 594 | 297 | 228 |
Actuarial costs | 0 | 45 | 188 |
Income Tax (Expense) or Benefit | (128) | (77) | (96) |
Other comprehensive income (loss), net of tax | 466 | 265 | 320 |
Ending balance | 502 | 36 | (229) |
Foreign Currency Translation | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance | (20) | (20) | (14) |
Foreign currency translation adjustment | 20 | (6) | |
Income Tax (Expense) or Benefit | 0 | ||
Other comprehensive income (loss), net of tax | 20 | 0 | (6) |
Ending balance | 0 | (20) | (20) |
Total | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Beginning balance | (103,402) | (62,080) | (78,656) |
Actuarial costs | 18,980 | 2,675 | 7,244 |
Income Tax (Expense) or Benefit | (12,842) | 11,929 | (4,977) |
Other comprehensive income (loss), net of tax | 45,973 | (41,322) | 16,576 |
Ending balance | (57,429) | $ (103,402) | $ (62,080) |
Total | Cash Settlement | |||
Schedule of Accumulated Other Comprehensive Income [Line Items] | |||
Actuarial costs | $ 24,145 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
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) | 929,205 | 978,188 | 1,085,023 |
Granted (in shares) | 661,396 | 292,577 | 273,845 |
Converted (in shares) | (374,267) | (327,160) | (316,430) |
Expired (in shares) | (117,550) | (3,000) | (58,650) |
Forfeited (in shares) | (32,000) | (11,400) | (5,600) |
Outstanding at end of period (in shares) | 1,066,784 | 929,205 | 978,188 |
Vested (in shares) | 501,810 | 497,128 | 414,949 |
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) | $ 21.83 | $ 17.49 | $ 17.14 |
Granted, Weighted average grant-date fair value (in dollars per share) | 20.46 | 35.19 | 26.65 |
Converted, Weighted average grant-date fair value (in dollars per share) | 23.07 | 20.43 | 22.76 |
Expired, Weighted average grant-date fair value (in dollars per share) | 24.12 | 40.02 | 24.79 |
Forfeited, Weighted average grant-date fair value (in dollars per share) | 24.71 | 27.44 | 23.31 |
Outstanding at end of period, Weighted average grant-date fair value (in dollars per share) | 20.19 | 21.83 | 17.49 |
Vested (in dollars per share) | $ 12.94 | $ 13.05 | $ 11.43 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Share-based compensation expense | $ 8.5 | $ 8.3 | $ 7.4 |
Unrecognized share-based compensation expense | $ 9.9 | ||
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 | ||
Risk-free interest rate | 3.70% | 2.50% | 0.30% |
Expected volatility rate | 37.10% | 38.30% | 39.70% |
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) | $ 23.28 | $ 46.20 | $ 26.50 |
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) | $ 20.78 | $ 33.84 | $ 26.69 |
Time-Based Awards [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Number of additional outstanding shares issued (in shares) | 1,341,559 | ||
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) | 430,363 | ||
Director [Member] | Time-Based Awards [Member] | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 12 months |
Common Stock and Earnings Per_3
Common Stock and Earnings Per Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Earnings from continuing operations - basic | $ 59,748 | $ 196,438 | $ 228,980 |
Gain from stock warrants revaluation, net of tax | (174) | (170) | (15,564) |
Convertible debt interest charge, net of tax | 2,160 | 3,051 | 0 |
Earnings from continuing operations - diluted | $ 61,734 | $ 199,319 | $ 213,416 |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | |||
Weighted-average shares outstanding for basic earnings per share (in shares) | 68,641 | 73,611 | 68,853 |
Common equivalent shares: | |||
Effect of stock-based compensation awards (in shares) | 1,251 | 6,602 | 7,363 |
Effect of convertible debt (in shares) | 5,669 | 8,111 | 0 |
Weighted-average shares outstanding assuming dilution (in shares) | 75,561 | 88,324 | 76,216 |
Basic (in dollars per share) | $ 0.87 | $ 2.67 | $ 3.33 |
Diluted (in dollars per share) | $ 0.82 | $ 2.26 | $ 2.80 |
Common Stock and Earnings Per_4
Common Stock and Earnings Per Share - Narrative (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted stock (in shares) | 288,371 | 226,449 | 283,139 |
Convertible Senior Notes Due 2024 | Convertible Debt | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 1,700,000 | ||
Exercise price (in dollars per share) | $ 41.35 |
Segment and Revenue Informati_3
Segment and Revenue Information - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) segment aircraft | Dec. 31, 2022 USD ($) aircraft | Dec. 31, 2021 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 2 | ||
Deferred revenue recognized | $ 15,700 | $ 4,700 | |
Deferred revenue | $ 4,500 | 17,000 | |
Deposit contract, assets | 8,700 | $ 0 | |
Percentage of leases with purchase options | 13% | ||
Lessor, operating lease, payment to be received, year one | $ 271,200 | ||
Lessor, operating lease, payment to be received, year two | 248,900 | ||
Lessor, operating lease, payment to be received, year three | 226,600 | ||
Lessor, operating lease, payment to be received, year four | 199,200 | ||
Lessor, operating lease, payment to be received, year five | 164,100 | ||
Lessor, operating lease, payment to be received, after year five | 237,500 | ||
Revenues | $ 2,070,611 | $ 2,045,469 | 1,734,282 |
Number of aircraft | aircraft | 27 | 25 | |
Expenditures for property and equipment | $ 793,447 | $ 599,431 | 504,748 |
Aircraft Leases | |||
Segment Reporting Information [Line Items] | |||
Revenues | 725,600 | 839,000 | 701,900 |
ACMI Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,399,764 | 1,404,348 | 1,185,128 |
Expenditures for property and equipment | 86,200 | ||
ACMI Services | Non-Lease Activities | |||
Segment Reporting Information [Line Items] | |||
Revenues | 5,600 | 10,100 | 13,200 |
CAM | |||
Segment Reporting Information [Line Items] | |||
Revenues | 461,038 | 434,686 | 370,287 |
Expenditures for property and equipment | 702,400 | ||
CAM | Non-Lease Activities | |||
Segment Reporting Information [Line Items] | |||
Revenues | 34,300 | 35,100 | |
Customer revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,070,611 | 2,045,469 | 1,734,282 |
Customer revenues | ACMI Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,399,622 | 1,404,254 | 1,185,113 |
Customer revenues | CAM | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ 353,998 | $ 317,167 | $ 273,288 |
Segment and Revenue Informati_4
Segment and Revenue Information - Schedule of Segment Reporting Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 2,070,611 | $ 2,045,469 | $ 1,734,282 |
Customer revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2,070,611 | 2,045,469 | 1,734,282 |
CAM | |||
Segment Reporting Information [Line Items] | |||
Revenues | 461,038 | 434,686 | 370,287 |
CAM | Customer revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 353,998 | 317,167 | 273,288 |
ACMI Services | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,399,764 | 1,404,348 | 1,185,128 |
ACMI Services | Customer revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1,399,622 | 1,404,254 | 1,185,113 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Revenues | 446,506 | 430,326 | 375,571 |
All Other | Customer revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | 316,991 | 324,048 | 275,881 |
Eliminate Inter-Segment Revenues | |||
Segment Reporting Information [Line Items] | |||
Revenues | $ (236,697) | $ (223,891) | $ (196,704) |
Segment and Revenue Informati_5
Segment and Revenue Information - Revenue from External Customers from Other Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Total customer revenues | $ 2,070,611 | $ 2,045,469 | $ 1,734,282 |
External Customer Revenue | |||
Segment Reporting Information [Line Items] | |||
Total customer revenues | 316,991 | 324,048 | 275,881 |
Aircraft maintenance, modifications and part sales | External Customer Revenue | |||
Segment Reporting Information [Line Items] | |||
Total customer revenues | 147,188 | 145,998 | 127,378 |
Ground services | External Customer Revenue | |||
Segment Reporting Information [Line Items] | |||
Total customer revenues | 95,505 | 107,080 | 99,133 |
Other, including aviation fuel sales | External Customer Revenue | |||
Segment Reporting Information [Line Items] | |||
Total customer revenues | $ 74,298 | $ 70,970 | $ 49,370 |
Segment and Revenue Informati_6
Segment and Revenue Information - Other Segment Information From Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 342,985 | $ 331,064 | $ 308,448 |
Interest expense | (72,704) | (46,861) | (58,790) |
Net (loss) gain on financial instruments | (962) | 9,022 | 29,979 |
Debt issuance costs | (936) | 0 | (6,505) |
Settlement charges and non-service component gains of retiree benefits | (37,017) | 20,046 | 17,827 |
Loss from non-consolidated affiliates | (4,740) | (7,607) | (2,577) |
Pre-tax earnings from continuing operations | 84,239 | 260,498 | 301,205 |
Significant Reconciling Items | |||
Segment Reporting Information [Line Items] | |||
Interest expense | (2,362) | (1,748) | (2,525) |
CAM | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 243,537 | 231,663 | 203,675 |
Interest expense | (48,136) | (30,880) | (38,160) |
Revenue | 109,415 | 143,008 | 106,161 |
ACMI Services | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 96,762 | 96,996 | 101,541 |
Interest expense | (21,440) | (13,818) | (18,066) |
Revenue | 32,006 | 95,198 | 158,733 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | 2,686 | 2,405 | 3,232 |
Revenue | $ (11,165) | $ 2,579 | $ 112 |
Segment and Revenue Informati_7
Segment and Revenue Information - Schedule of Assets by Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | |||
Assets | $ 3,882,090 | $ 3,589,893 | $ 3,267,335 |
CAM | |||
Segment Reporting Information [Line Items] | |||
Assets | 2,885,508 | 2,510,559 | 2,218,012 |
ACMI Services | |||
Segment Reporting Information [Line Items] | |||
Assets | 828,703 | 921,522 | 872,311 |
All Other | |||
Segment Reporting Information [Line Items] | |||
Assets | $ 167,879 | $ 157,812 | $ 177,012 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Accrued liabilities for employee compensation and benefits | $ 0.7 | $ 1.1 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - Accounts receivable reserve: - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 939,061 | $ 741,806 | $ 996,860 |
Additions charged to cost and expenses | 404,721 | 395,339 | 168,360 |
Deductions | 278,156 | 198,084 | 423,414 |
Balance at end of period | $ 1,065,626 | $ 939,061 | $ 741,806 |
Uncategorized Items - atsg-2023
Label | Element | Value |
ACMI Services [Member] | ||
Incentive To Lessee, Amortization | atsg_IncentiveToLesseeAmortization | $ (3,200,000) |
Incentive To Lessee, Amortization | atsg_IncentiveToLesseeAmortization | (3,100,000) |
Incentive To Lessee, Amortization | atsg_IncentiveToLesseeAmortization | (3,100,000) |
CAM [Member] | ||
Incentive To Lessee, Amortization | atsg_IncentiveToLesseeAmortization | (15,400,000) |
Incentive To Lessee, Amortization | atsg_IncentiveToLesseeAmortization | (20,100,000) |
Incentive To Lessee, Amortization | atsg_IncentiveToLesseeAmortization | $ (20,000,000) |