Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Aircastle LTD | |
Entity Central Index Key | 1,362,988 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 78,388,985 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 210,815 | $ 211,922 |
Restricted Cash and Cash Equivalents | 21,524 | 21,935 |
Accounts receivable | 7,818 | 12,815 |
Flight equipment held for lease, net of accumulated depreciation of $1,109,182 and $1,125,594, respectively | 6,143,695 | 6,188,469 |
Net investment in finance and sales-type leases | 533,373 | 545,750 |
Unconsolidated equity method investments | 78,220 | 76,982 |
Other assets | 173,654 | 141,210 |
Total assets | 7,169,099 | 7,199,083 |
LIABILITIES | ||
Borrowings from secured financings, net of debt issuance costs | 824,189 | 849,874 |
Borrowings from unsecured financings, net of debt issuance costs | 3,391,224 | 3,463,732 |
Accounts payable, accrued expenses and other liabilities | 139,961 | 140,221 |
Lease rentals received in advance | 66,350 | 57,630 |
Security deposits | 130,350 | 130,628 |
Maintenance payments | 679,571 | 649,434 |
Total liabilities | 5,231,645 | 5,291,519 |
Commitments and Contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Common shares, $0.01 par value, 250,000,000 shares authorized, 78,539,191 shares issued and outstanding at March 31, 2018; and 78,707,963 shares issued and outstanding at December 31, 2017 | 785 | 787 |
Additional paid-in capital | 1,522,113 | 1,527,796 |
Retained earnings | 415,605 | 380,331 |
Accumulated other comprehensive loss | (1,049) | (1,350) |
Total shareholders’ equity | 1,937,454 | 1,907,564 |
Total liabilities and shareholders’ equity | $ 7,169,099 | $ 7,199,083 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Accumulated depreciation on flight equipment held for lease | $ 1,109,182 | $ 1,125,594 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 250,000,000 | 250,000,000 |
Common shares, shares issued | 78,539,191 | 78,707,963 |
Common shares, shares outstanding | 78,539,191 | 78,707,963 |
Preference shares, par value | $ 0.01 | $ 0.01 |
Preference shares, shares authorized | 50,000,000 | 50,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues: | ||
Lease rental revenue | $ 177,483 | $ 190,586 |
Finance and sales-type lease revenue | 9,442 | 4,073 |
Amortization of lease premiums, discounts and incentives | (3,128) | (3,112) |
Maintenance revenue | 11,991 | 12,287 |
Total lease revenue | 195,788 | 203,834 |
Gain (Loss) on Disposition of Property Plant Equipment | 5,768 | 759 |
Other revenue | 1,124 | 439 |
Total revenues | 202,680 | 205,032 |
Operating expenses: | ||
Depreciation | 75,002 | 79,174 |
Interest, net | 57,108 | 63,068 |
Selling, general and administrative (including non-cash share-based payment expense of $2,378 and $2,102 for the three months ended March 31, 2018 and 2017, respectively) | 17,835 | 16,167 |
Asset Impairment Charges | 0 | 500 |
Maintenance and other costs | 988 | 2,931 |
Total expenses | 150,933 | 161,840 |
Other income (expense): | ||
Total other income (expense) | 3,174 | (1,149) |
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | 54,921 | 42,043 |
Income tax (benefit) provision | (844) | 1,846 |
Earnings of unconsolidated equity method investments, net of tax | 1,782 | 2,242 |
Net income | $ 57,547 | $ 42,439 |
Earnings per common share — Basic: | ||
Net income (loss) per share (in dollars per share) | $ 0.73 | $ 0.54 |
Earnings per common share — Diluted: | ||
Net income per share | 0.73 | 0.54 |
Dividends declared per share | $ 0.28 | $ 0.26 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Statement [Abstract] | ||
Non-cash share based payment expense | $ 2,378 | $ 2,102 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 57,547 | $ 42,439 |
Other comprehensive income, net of tax: | ||
Net derivative loss reclassified into earnings | 301 | 581 |
Other comprehensive income | 301 | 581 |
Total comprehensive income | $ 57,848 | $ 43,020 |
Consolidated Statements of Com7
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net of tax expense | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Net income | $ 57,547 | $ 42,439 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 75,002 | 79,174 |
Amortization of Debt Issuance Costs and Discounts | 3,533 | 4,155 |
Amortization of lease premiums, discounts and incentives | 3,128 | 3,112 |
Deferred income taxes | 1,306 | 1,309 |
Non-cash share-based payment expense | 2,378 | 2,102 |
Cash flow hedges reclassified into earnings | 301 | 581 |
Security deposits and maintenance payments included in earnings | (665) | (10,524) |
Gain on sale of flight equipment | (5,768) | (759) |
Asset Impairment Charges | 0 | 500 |
Other | (4,501) | 112 |
Changes in certain assets and liabilities: | ||
Accounts receivable | 4,320 | (1,407) |
Other assets | (2,666) | (1,000) |
Accounts payable, accrued expenses and other liabilities | (57) | 14,334 |
Lease rentals received in advance | 8,554 | (2,552) |
Net Cash and Restricted Cash Provided by (Used in) Operating Activities | 142,412 | 131,576 |
Cash flows from investing activities: | ||
Acquisition and improvement of flight equipment | (82,493) | (142,053) |
Proceeds from sale of flight equipment | 43,917 | 16,819 |
Payments to Acquire Finance Receivables | (16,256) | (35,785) |
Collections on finance and sales-type leases | 6,493 | 5,614 |
Payments for (Proceeds from) Previous Acquisition | 2,900 | (1,935) |
Other | 1,320 | 88 |
Net Cash and Restricted Cash Provided By (Used In) Investing Activities | (44,119) | (157,252) |
Cash flows from financing activities: | ||
Repurchase of shares | (9,413) | (2,513) |
Proceeds from secured and unsecured debt financings | 0 | 500,000 |
Repayments of secured and unsecured debt financings | (101,725) | (31,178) |
Deferred financing costs | 0 | (8,038) |
Security deposits and maintenance payments received | 53,674 | 41,049 |
Security deposits and maintenance payments returned | (20,262) | (39,383) |
Dividends paid | (22,085) | (20,466) |
Net Cash and Restricted Cash Provided by (Used In) Financing Activities | (99,811) | 439,471 |
Cash and Restricted Cash, Period Increase (Decrease) | (1,518) | 413,795 |
Cash and Restricted Cash at Beginning of Period | 233,857 | 508,817 |
Cash and Restricted Cash at End of Period | 232,339 | 922,612 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest, net of capitalized interest | 36,949 | 37,778 |
Cash paid for income taxes | 3,884 | 872 |
Supplemental disclosures of non-cash investing activities: | ||
Advance lease rentals, security deposits and maintenance payments assumed in asset acquisitions | 7,751 | 65 |
Advance Lease Rentals, Security Deposits, Maintenance Payments, Other Liabilities and Other Assets Settled In Sale Of Flight Equipment | 17,951 | 3,373 |
Property, Plant and Equipment, Transfers and Changes | $ 31,430 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | Summary of Significant Accounting Policies Organization and Basis of Presentation Aircastle Limited (“Aircastle,” the “Company,” “we,” “us” or “our”) is a Bermuda exempted company that was incorporated on October 29, 2004 under the provisions of Section 14 of the Companies Act of 1981 of Bermuda. Aircastle’s business is acquiring, leasing, managing and selling commercial jet aircraft. Aircastle is a holding company that conducts its business through subsidiaries. Aircastle directly or indirectly owns all of the outstanding common shares of its subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Company manages, analyzes and reports on its business and results of operations on the basis of one operating segment: leasing, financing, selling and managing commercial flight equipment. Our chief executive officer is the chief operating decision maker. The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC; however, we believe that the disclosures are adequate to make information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . As part of the Company’s adoption of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , we have reclassified Gain on sale of flight equipment from Other income (expense) to Revenues on our Consolidated Statement of Income as of March 31, 2018 . We believe this better reflects the sale of flight equipment as part of our ordinary activities and conforms our presentation to those of our publicly traded peers. The presentation for the three months ended March 31, 2017 has also been reclassified to conform to the current period presentation: Three Months Ended March 31, 2017 Total revenues as previously reported $ 204,273 Gain on sale of flight equipment 759 Total revenues $ 205,032 The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure since the balance sheet date of March 31, 2018 through the date on which the consolidated financial statements included in this Form 10-Q were issued. Effective January 1, 2018, the Company adopted FASB ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments . The standard clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The update is applied using a retrospective transition method to each period presented. The standard did not have a material impact on our consolidated financial statements and related disclosures. Effective January 1, 2018, the Company adopted FASB ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and related updates, as noted above. Lease contracts within the scope of Accounting Standards Codification (“ASC”) 840, Leases , are specifically excluded from ASU No. 2014-09. The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. The update is applied using the modified retrospective approach. The standard did not have a material impact on our consolidated financial statements and related disclosures. Effective January 1, 2018, the Company adopted FASB ASU No. 2017-09, Compensation-Stock Compensation (Topic 718), Scope of Modification Accounting . The standard clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Entities will apply the modification accounting guidance if the value, vesting conditions or classification of the award changes. In addition, when applicable, disclosure is required to indicate that compensation expense has not changed. The update is applied using a prospective transition method to each period presented. The standard did not have a material impact on our consolidated financial statements and related disclosures. Principles of Consolidation The consolidated financial statements include the accounts of Aircastle and all of its subsidiaries. Aircastle consolidates four Variable Interest Entities (“VIEs”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We consolidate VIEs in which we have determined that we are the primary beneficiary. We use judgment when deciding: (a) whether an entity is subject to consolidation as a VIE; (b) who the variable interest holders are; (c) the potential expected losses and residual returns of the variable interest holders; and (d) which variable interest holder is the primary beneficiary. When determining which enterprise is the primary beneficiary, we consider: (1) the entity’s purpose and design; (2) which variable interest holder has the power to direct the activities that most significantly impact the entity’s economic performance; and (3) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. When certain events occur, we reconsider whether we are the primary beneficiary of VIEs. We do not reconsider whether we are a primary beneficiary solely because of operating losses incurred by an entity. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes that the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. Recent Accounting Pronouncements On February 25, 2016, the FASB issued ASC 842, Leases (“ASC 842”) which replaced the existing guidance in ASC 840, Leases (“ASC 840”). The accounting for leases by lessors basically remained unchanged from the concepts that existed in ASC 840 accounting. The FASB decided that lessors would be precluded from recognizing selling profit and revenue at lease commencement for any sales-type or direct finance lease that does not transfer control of the underlying asset to the lessee. This requirement aligns the notion of what constitutes a sale in the lessor accounting guidance with that in the forthcoming revenue recognition standard, which evaluates whether a sale has occurred from the customer’s perspective. The standard will be effective for reporting periods beginning after December 15, 2018. The standard is to be applied on a “modified retrospective” basis with a proposed practical expedient. We plan to adopt the standard on its required effective date of January 1, 2019 and are evaluating the transition method to use. We are also evaluating the impact that ASC 842 will have on our consolidated financial statements and related disclosures. We do not believe that the adoption of the standard will significantly impact our existing or potential lessees' economic decisions to lease aircraft. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The standard is applied on a modified retrospective approach. The standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as early as the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are in the process of determining the impact the standard will have on our consolidated financial statements and related disclosures. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize use of unobservable inputs. These inputs are prioritized as follows: • Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs. • Level 3: Unobservable inputs for which there is little or no market data and which require us to develop our own assumptions about how market participants price the asset or liability. The valuation techniques that may be used to measure fair value are as follows: • The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. • The income approach uses valuation techniques to convert future amounts to a single present amount based on current market expectation about those future amounts. • The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). The following tables set forth our financial assets as of March 31, 2018 and December 31, 2017 that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Measurements at March 31, 2018 Using Fair Value Hierarchy Fair Value as of March 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique Assets: Cash and cash equivalents $ 210,815 $ 210,815 $ — $ — Market Restricted cash and cash equivalents 21,524 21,524 — — Market Derivative assets 6,428 — 6,428 — Market Total $ 238,767 $ 232,339 $ 6,428 $ — Fair Value Measurements at December 31, 2017 Using Fair Value Hierarchy Fair Value as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique Assets: Cash and cash equivalents $ 211,922 $ 211,922 $ — $ — Market Restricted cash and cash equivalents 21,935 21,935 — — Market Derivative assets 3,254 — 3,254 — Market Total $ 237,111 $ 233,857 $ 3,254 $ — Our cash and cash equivalents, along with our restricted cash and cash equivalents balances, consist largely of money market securities that are considered to be highly liquid and easily tradable. These securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within our fair value hierarchy. Our interest rate derivative included in Level 2 consists of United States dollar-denominated interest rate cap, and the fair value is based on market comparisons for similar instruments. We also considered the credit rating and risk of the counterparty providing the interest rate cap based on quantitative and qualitative factors. For the three months ended March 31, 2018 and the year ended December 31, 2017 , we had no transfers into or out of Level 3. We measure the fair value of certain assets and liabilities on a non-recurring basis, when U.S. GAAP requires the application of fair value, including events or changes in circumstances that indicate that the carrying amounts of assets may not be recoverable. Assets subject to these measurements include our investments in unconsolidated joint ventures and aircraft. We account for our investments in unconsolidated joint ventures under the equity method of accounting and record impairment when its fair value is less than its carrying value. We record aircraft at fair value when we determine the carrying value may not be recoverable. Fair value measurements for aircraft in impairment tests are based on an income approach which uses Level 3 inputs, which include the Company’s assumptions and appraisal data as to future cash proceeds from leasing and selling aircraft. Financial Instruments Our financial instruments, other than cash, consist principally of cash equivalents, restricted cash and cash equivalents, accounts receivable, accounts payable, amounts borrowed under financings and interest rate derivatives. The fair value of cash, cash equivalents, restricted cash and cash equivalents, accounts receivable and accounts payable approximates the carrying value of these financial instruments because of their short-term nature. The fair value of our senior notes is estimated using quoted market prices. The fair values of all our other financings are estimated using a discounted cash flow analysis, based on our current incremental borrowing rates for similar types of borrowing arrangements. The carrying amounts and fair values of our financial instruments at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 Carrying Amount of Liability Fair Value of Liability Carrying Amount of Liability Fair Value of Liability Credit Facilities $ 100,000 $ 100,000 $ 175,000 $ 175,000 Unsecured Term Loan 120,000 120,000 120,000 120,000 ECA Financings 218,006 219,461 227,491 232,030 Bank Financings 617,806 619,245 634,898 634,132 Senior Notes 3,200,000 3,296,195 3,200,000 3,367,245 All of our financial instruments are classified as Level 2 with the exception of our Senior Notes, which are classified as Level 1. |
Lease Rental Revenues and Fligh
Lease Rental Revenues and Flight Equipment Held for Lease | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Lessor, Operating Leases [Text Block] | Lease Rental Revenues and Flight Equipment Held for Lease Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at March 31, 2018 were as follows: Year Ending December 31, Amount Remainder of 2018 $ 544,676 2019 645,622 2020 526,357 2021 412,130 2022 319,117 Thereafter 668,344 Total $ 3,116,246 Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended March 31, Region 2018 2017 Asia and Pacific 35 % 40 % Europe 29 % 22 % Middle East and Africa 11 % 12 % North America 8 % 7 % South America 17 % 19 % Total 100 % 100 % The classification of regions in the tables above and in the table and discussion below is determined based on the principal location of the lessee of each aircraft. The following table shows the number of lessees with lease rental revenue of at least 5% and their combined total percentage of lease rental revenue for the years indicated: Three Months Ended March 31, 2018 2017 Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 3 19% 3 19% At March 31, 2018 and December 31, 2017 , no country represented at least 10% of total revenue based on each counterparty’s principal place of business. Geographic concentration of net book value of flight equipment (including flight equipment held for lease and net investment in finance and sales-type leases, or “net book value”) was as follows: March 31, 2018 December 31, 2017 Region Number of Aircraft Net Book Value % Number of Aircraft Net Book Value % Asia and Pacific 62 31 % 59 30 % Europe 88 31 % 92 32 % Middle East and Africa 14 8 % 15 9 % North America 30 10 % 32 10 % South America 26 19 % 25 19 % Off-lease 2 (1) 1 % 1 (2) — % Total 222 100 % 224 100 % _______________ (1) Consisted of one Airbus A321-200 aircraft and one Boeing 747-400ERF aircraft, both of which were delivered on lease to customers in the second quarter of 2018. (2) Consisted of one Airbus A321-200 aircraft, which was delivered on lease to a customer in the second quarter of 2018. At March 31, 2018 and December 31, 2017 , no country represented at least 10% of net book value of flight equipment based on each lessee’s principal place of business. At March 31, 2018 and December 31, 2017 , the amounts of lease incentive liabilities recorded in maintenance payments on our Consolidated Balance Sheets were $13,813 and $11,496 , respectively. |
Net Investment in Finance Lease
Net Investment in Finance Leases | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Net Investment in Finance Leases | Net Investment in Finance and Sales-Type Leases At March 31, 2018 , our net investment in finance and sales-type leases consisted of 30 aircraft. The following table lists the components of our net investment in finance and sales-type leases at March 31, 2018 : Amount Total lease payments to be received $ 314,311 Less: Unearned income (162,620 ) Estimated residual values of leased flight equipment (unguaranteed) 381,682 Net investment in finance and sales-type leases $ 533,373 At March 31, 2018 , minimum future lease payments on finance and sales-type leases are as follows: Year Ending December 31, Amount Remainder of 2018 $ 50,583 2019 66,285 2020 63,840 2021 53,057 2022 42,460 Thereafter 38,086 Total lease payments to be received $ 314,311 |
Unconsolidated Equity Method In
Unconsolidated Equity Method Investment (Notes) | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Unconsolidated Equity Method Investment | Unconsolidated Equity Method Investments We have joint ventures with an affiliate of Ontario Teachers’ Pension Plan (“Teachers’”) and with the leasing arm of the Industrial Bank of Japan, Limited (“IBJL”). At March 31, 2018 , the net book value of both joint ventures’ twelve aircraft was approximately $634,000 . Amount Investment in joint ventures at December 31, 2017 $ 76,982 Investment in joint ventures 356 Earnings from joint ventures, net of tax 1,782 Distributions (900 ) Investment in joint ventures at March 31, 2018 $ 78,220 The Company has recorded in its Consolidated Balance Sheet a $13,200 guarantee liability in Maintenance payments and a $5,100 guarantee liability in Security deposits representing its share of the respective exposures. |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2018 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Variable Interest Entities Aircastle consolidates four VIEs of which it is the primary beneficiary. The operating activities of these VIEs are limited to acquiring, owning, leasing, maintaining, operating and, under certain circumstances, selling the six aircraft discussed below. ECA Financings Aircastle, through various subsidiaries, each of which is owned by a charitable trust (such entities, collectively the “Air Knight VIEs”), has entered into six different twelve -year term loans, which are supported by guarantees from Compagnie Française d'Assurance pour le Commerce Extérieur, (“COFACE”), the French government sponsored export credit agency (“ECA”). We refer to these COFACE-supported financings as “ECA Financings.” Aircastle is the primary beneficiary of the Air Knight VIEs, as we have the power to direct the activities of the VIEs that most significantly impact the economic performance of such VIEs and we bear the significant risk of loss and participate in gains through a finance lease. The activity that most significantly impacts the economic performance is the leasing of aircraft of which our wholly owned subsidiary is the servicer and is responsible for managing the relevant aircraft. There is a cross collateralization guarantee between the Air Knight VIEs. In addition, Aircastle guarantees the debt of the Air Knight VIEs. The only assets that the Air Knight VIEs have on their books are financing leases that are eliminated in the consolidated financial statements. The related aircraft, with a net book value as of March 31, 2018 of $408,370 , were included in our flight equipment held for lease. The consolidated debt outstanding, net of debt issuance costs, of the Air Knight VIEs as of March 31, 2018 is $212,975 . |
Secured and Unsecured Debt Fina
Secured and Unsecured Debt Financings | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Secured and Unsecured Debt Financings | Secured and Unsecured Debt Financings The outstanding amounts of our secured and unsecured term debt financings are as follows: At March 31, 2018 At December 31, 2017 Debt Obligation Outstanding Borrowings Number of Aircraft Interest Rate Final Stated Maturity Outstanding Secured Debt Financings: ECA Financings (1) $ 218,006 6 3.02% to 3.96% 12/03/21 to 11/30/24 $ 227,491 Bank Financings (2) 617,806 23 2.22% to 4.49% 09/11/18 to 01/19/26 634,898 Less: Debt Issuance Costs (11,623 ) — (12,515 ) Total secured debt financings, net of debt issuance costs 824,189 29 849,874 Unsecured Debt Financings: Senior Notes due 2018 400,000 4.625% 12/15/18 400,000 Senior Notes due 2019 500,000 6.25% 12/01/19 500,000 Senior Notes due 2020 300,000 7.625% 04/15/20 300,000 Senior Notes due 2021 500,000 5.125% 03/15/21 500,000 Senior Notes due 2022 500,000 5.50% 02/15/22 500,000 Senior Notes due 2023 500,000 5.00% 04/01/23 500,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Unsecured Term Loan 120,000 4.125% 04/28/19 120,000 Revolving Credit Facilities 100,000 3.83% 11/21/19 to 05/13/20 175,000 Less: Debt Issuance Costs (28,776 ) (31,268 ) Total unsecured debt financings, net of debt issuance costs 3,391,224 3,463,732 Total secured and unsecured debt financings, net of debt issuance costs $ 4,215,413 $ 4,313,606 (1) The borrowings under these financings at March 31, 2018 have a weighted-average rate of interest of 3.58% . (2) The borrowings under these financings at March 31, 2018 have a weighted-average fixed rate of interest of 4.16% . As of March 31, 2018 , we were in compliance with all applicable covenants in our financings. |
Shareholders' Equity and Share
Shareholders' Equity and Share Based Payment | 3 Months Ended |
Mar. 31, 2018 | |
Shareholders’ Equity and Share Based Payment [Abstract] | |
Shareholders’ Equity and Share Based Payment | Shareholders' Equity and Share-Based Payment During the three months ended March 31, 2018 , the Company issued 291,876 restricted common shares and issued 306,359 performance share units (“PSUs”). These awards were made under the Aircastle Limited Amended and Restated 2014 Omnibus Incentive Plan. During the three months ended March 31, 2018 , the Company incurred share-based compensation expense of $1,504 related to restricted common shares and $874 related to PSUs. As of March 31, 2018 , there was $8,888 of unrecognized compensation cost related to unvested restricted common share-based payments and $9,215 of unrecognized compensation cost related to unvested PSU share-based payments that are expected to be recognized over a weighted-average remaining period of 2.13 years . During March 2018, we repurchased 354,737 common shares at an aggregate cost of $6,918 , including commissions. At March 31, 2018 , the remaining dollar value of shares that may be repurchased under the repurchase program approved by our Board of Directors on February 9, 2016 is $88,970 . |
Dividends
Dividends | 3 Months Ended |
Mar. 31, 2018 | |
Dividends [Abstract] | |
Dividends | Dividends The following table sets forth the quarterly dividends declared by our Board of Directors for the periods covered in this report: Declaration Date Dividend per Common Share Aggregate Dividend Amount Record Date Payment Date February 9, 2018 $ 0.28 $ 22,085 February 28, 2018 March 15, 2018 October 31, 2017 $ 0.28 $ 22,039 November 30, 2017 December 15, 2017 August 4, 2017 $ 0.26 $ 20,464 August 31, 2017 September 15, 2017 May 2, 2017 $ 0.26 $ 20,482 May 31, 2017 June 15, 2017 February 9, 2017 $ 0.26 $ 20,466 February 28, 2017 March 15, 2017 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We include all common shares granted under our incentive compensation plan which remain unvested (“restricted common shares”) and contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid (“participating securities”), in the number of shares outstanding in our basic earnings per share calculations using the two-class method. All of our restricted common shares are currently participating securities. Our PSUs are contingently issuable shares which are included in our diluted earnings per share calculations which do not include voting or dividend rights. Under the two-class method, earnings per common share is computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted-average shares outstanding during the period. Three Months Ended March 31, 2018 2017 Weighted-average shares: Common shares outstanding 78,366,588 78,176,705 Restricted common shares 431,161 503,802 Total weighted-average shares 78,797,749 78,680,507 Percentage of weighted-average shares: Common shares outstanding 99.45 % 99.36 % Restricted common shares 0.55 % 0.64 % Total percentage of weighted-average shares 100.00 % 100.00 % The calculations of both basic and diluted earnings per share are as follows: Three Months Ended March 31, 2018 2017 Earnings per share – Basic: Net income $ 57,547 $ 42,439 Less: Distributed and undistributed earnings allocated to restricted common shares (1) (315 ) (272 ) Earnings available to common shareholders – Basic $ 57,232 $ 42,167 Weighted-average common shares outstanding – Basic 78,366,588 78,176,705 Earnings per common share – Basic $ 0.73 $ 0.54 Earnings per share – Diluted: Net income $ 57,547 $ 42,439 Less: Distributed and undistributed earnings allocated to restricted common shares (1) (315 ) (272 ) Earnings available to common shareholders – Diluted $ 57,232 $ 42,167 Weighted-average common shares outstanding – Basic 78,366,588 78,176,705 Effect of dilutive shares (2) 228,019 194,848 Weighted-average common shares outstanding – Diluted 78,594,607 78,371,553 Earnings per common share – Diluted $ 0.73 $ 0.54 (1) For the three months ended March 31, 2018 and 2017 , distributed and undistributed earnings to restricted shares were 0.55% and 0.64% , respectively, of net income. The amount of restricted share forfeitures for both periods present is immaterial to the allocation of distributed and undistributed earnings. (2) For both periods presented, dilutive shares represented contingently issuable shares. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income taxes have been provided based on the tax laws and rates in countries in which our operations are conducted and income is earned. The Company received an assurance from the Bermuda Minister of Finance that it would be exempted from local income, withholding and capital gains taxes until March 2035. Consequently, the provision for income taxes relates to income earned by certain subsidiaries of the Company which are located in, or earn income in, jurisdictions that impose income taxes, primarily Ireland, Singapore and the United States. The sources of income from continuing operations before income taxes and earnings of our unconsolidated equity method investments for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 U.S. operations $ 683 $ 596 Non-U.S. operations 54,238 41,447 Income from continuing operations before income taxes and earnings of unconsolidated equity method investments $ 54,921 $ 42,043 All of our aircraft-owning subsidiaries that are recognized as corporations for U.S. tax purposes are non-U.S. corporations. These non-U.S. subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes unless they operate within the U.S., in which case they may be subject to federal, state and local income taxes. The aircraft owning subsidiaries resident in Ireland and Mauritius are subject to tax in those respective jurisdictions. We have a U.S. based subsidiary which provides management services to our non-U.S. subsidiaries and is subject to U.S. federal, state and local income taxes. We also have Ireland and Singapore based subsidiaries which provide management services to our non-U.S. subsidiaries and are subject to tax in those respective jurisdictions. The consolidated income tax expense for the three months ended March 31, 2018 and 2017 was determined based on estimates of the Company’s consolidated effective income tax rates for the years ending December 31, 2018 and 2017, respectively. The Company’s effective tax rate (“ETR”) for the three months ended March 31, 2018 was (1.5)% , compared to 4.4% , for the three months ended March 31, 2017 . First quarter 2018 included a tax benefit of $2,779 related to the Singapore rate reduction from 10% to 8% , which was treated as a discrete item. Excluding this tax benefit, the ETR would have been 3.6% . Movements in the ETR are generally caused by changes in the proportion of the Company’s pre-tax earnings in taxable and non-tax jurisdictions. Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income from continuing operations consisted of the following: Three Months Ended March 31, 2018 2017 Notional U.S. federal income tax expense at the statutory rate $ 11,533 $ 14,715 U.S. state and local income tax, net 48 41 Non-U.S. operations: Bermuda (8,283 ) (8,828 ) Ireland (317 ) 542 Singapore (2,824 ) (2,927 ) Other low tax jurisdictions (808 ) (1,440 ) Non-deductible expenses in the U.S. (193 ) (249 ) Other — (8 ) Income tax (benefit) provision $ (844 ) $ 1,846 |
Interest, Net
Interest, Net | 3 Months Ended |
Mar. 31, 2018 | |
Interest Income (Expense), Net [Abstract] | |
Interest Net | Interest, Net The following table shows the components of interest, net: Three Months Ended March 31, 2018 2017 Interest on borrowings and other liabilities $ 53,978 $ 58,839 Amortization of deferred losses related to interest rate derivatives 301 581 Amortization of deferred financing fees and debt discount 3,532 4,155 Interest expense 57,811 63,575 Less: Interest income (703 ) (414 ) Less: Capitalized interest — (93 ) Interest, net $ 57,108 $ 63,068 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies At March 31, 2018 , we had commitments to acquire 37 aircraft for $1,475,400 , including 25 Embraer E-Jet E2 aircraft. Commitments, including $129,218 of progress payments, contractual price escalations and other adjustments for these aircraft, at March 31, 2018 , net of amounts already paid, are as follows: Year Ending December 31, Amount Remainder of 2018 $ 488,468 2019 470,073 2020 375,216 2021 141,643 2022 — Thereafter — Total $ 1,475,400 As of April 27, 2018, we had commitments to acquire 39 aircraft for $1,532,000 . |
Other Assets
Other Assets | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Assets | Other Assets The following table describes the principal components of other assets on our Consolidated Balance Sheets as of: March 31, December 31, Deferred income tax asset $ 350 $ 497 Lease incentives and lease premiums, net of amortization of $36,934 and $41,246, respectively 71,657 74,515 Flight equipment held for sale 32,286 707 Aircraft purchase deposits and progress payments 22,604 23,704 Fair value of interest rate cap 6,428 3,254 Note receivable (1) 8,352 10,000 Other assets 31,977 28,533 Total other assets $ 173,654 $ 141,210 ______________ (1) Related to the sale of aircraft during the year ended December 31, 2017 . |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Accounts Payable, Accrued Expenses and Other Liabilities | Accounts Payable, Accrued Expenses and Other Liabilities The following table describes the principal components of accounts payable, accrued expenses and other liabilities recorded on our Consolidated Balance Sheets as of: March 31, December 31, Accounts payable and accrued expenses $ 34,294 $ 50,948 Deferred income tax liability 37,636 36,547 Accrued interest payable 55,074 38,129 Lease discounts, net of amortization of $38,103 and $36,111, respectively 12,957 14,597 Total accounts payable, accrued expenses and other liabilities $ 139,961 $ 140,221 |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Aircastle is a holding company that conducts its business through subsidiaries. Aircastle directly or indirectly owns all of the outstanding common shares of its subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The Company manages, analyzes and reports on its business and results of operations on the basis of one operating segment: leasing, financing, selling and managing commercial flight equipment. Our chief executive officer is the chief operating decision maker. The accompanying consolidated financial statements are unaudited and have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim financial reporting and, in our opinion, reflect all adjustments, including normal recurring items, which are necessary to present fairly the results for interim periods. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the entire year. Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with U.S. GAAP have been omitted in accordance with the rules and regulations of the SEC; however, we believe that the disclosures are adequate to make information presented not misleading. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 . |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Aircastle and all of its subsidiaries. Aircastle consolidates four Variable Interest Entities (“VIEs”) of which Aircastle is the primary beneficiary. All intercompany transactions and balances have been eliminated in consolidation. We consolidate VIEs in which we have determined that we are the primary beneficiary. We use judgment when deciding: (a) whether an entity is subject to consolidation as a VIE; (b) who the variable interest holders are; (c) the potential expected losses and residual returns of the variable interest holders; and (d) which variable interest holder is the primary beneficiary. When determining which enterprise is the primary beneficiary, we consider: (1) the entity’s purpose and design; (2) which variable interest holder has the power to direct the activities that most significantly impact the entity’s economic performance; and (3) the obligation to absorb losses of the entity or the right to receive benefits from the entity that could potentially be significant to the VIE. When certain events occur, we reconsider whether we are the primary beneficiary of VIEs. We do not reconsider whether we are a primary beneficiary solely because of operating losses incurred by an entity. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. While Aircastle believes that the estimates and related assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements On February 25, 2016, the FASB issued ASC 842, Leases (“ASC 842”) which replaced the existing guidance in ASC 840, Leases (“ASC 840”). The accounting for leases by lessors basically remained unchanged from the concepts that existed in ASC 840 accounting. The FASB decided that lessors would be precluded from recognizing selling profit and revenue at lease commencement for any sales-type or direct finance lease that does not transfer control of the underlying asset to the lessee. This requirement aligns the notion of what constitutes a sale in the lessor accounting guidance with that in the forthcoming revenue recognition standard, which evaluates whether a sale has occurred from the customer’s perspective. The standard will be effective for reporting periods beginning after December 15, 2018. The standard is to be applied on a “modified retrospective” basis with a proposed practical expedient. We plan to adopt the standard on its required effective date of January 1, 2019 and are evaluating the transition method to use. We are also evaluating the impact that ASC 842 will have on our consolidated financial statements and related disclosures. We do not believe that the adoption of the standard will significantly impact our existing or potential lessees' economic decisions to lease aircraft. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments . The standard affects entities holding financial assets and net investment in leases that are not accounted for at fair value through net income. The amendments affect loans, debt securities, trade receivables, net investments in leases, off-balance-sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash. The standard is applied on a modified retrospective approach. The standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted as early as the fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. We are in the process of determining the impact the standard will have on our consolidated financial statements and related disclosures. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following tables set forth our financial assets as of March 31, 2018 and December 31, 2017 that we measured at fair value on a recurring basis by level within the fair value hierarchy. Assets measured at fair value are classified in their entirety based on the lowest level of input that is significant to their fair value measurement. Fair Value Measurements at March 31, 2018 Using Fair Value Hierarchy Fair Value as of March 31, 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique Assets: Cash and cash equivalents $ 210,815 $ 210,815 $ — $ — Market Restricted cash and cash equivalents 21,524 21,524 — — Market Derivative assets 6,428 — 6,428 — Market Total $ 238,767 $ 232,339 $ 6,428 $ — Fair Value Measurements at December 31, 2017 Using Fair Value Hierarchy Fair Value as of December 31, 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Valuation Technique Assets: Cash and cash equivalents $ 211,922 $ 211,922 $ — $ — Market Restricted cash and cash equivalents 21,935 21,935 — — Market Derivative assets 3,254 — 3,254 — Market Total $ 237,111 $ 233,857 $ 3,254 $ — |
Carrying amounts and fair values of financial instruments | The carrying amounts and fair values of our financial instruments at March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 December 31, 2017 Carrying Amount of Liability Fair Value of Liability Carrying Amount of Liability Fair Value of Liability Credit Facilities $ 100,000 $ 100,000 $ 175,000 $ 175,000 Unsecured Term Loan 120,000 120,000 120,000 120,000 ECA Financings 218,006 219,461 227,491 232,030 Bank Financings 617,806 619,245 634,898 634,132 Senior Notes 3,200,000 3,296,195 3,200,000 3,367,245 |
Lease Rental Revenues and Fli26
Lease Rental Revenues and Flight Equipment Held for Lease (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Annual future minimum lease rentals receivable | Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at March 31, 2018 were as follows: Year Ending December 31, Amount Remainder of 2018 $ 544,676 2019 645,622 2020 526,357 2021 412,130 2022 319,117 Thereafter 668,344 Total $ 3,116,246 |
Geographic concentration of lease rental revenue earnings | Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended March 31, Region 2018 2017 Asia and Pacific 35 % 40 % Europe 29 % 22 % Middle East and Africa 11 % 12 % North America 8 % 7 % South America 17 % 19 % Total 100 % 100 % |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | The following table shows the number of lessees with lease rental revenue of at least 5% and their combined total percentage of lease rental revenue for the years indicated: Three Months Ended March 31, 2018 2017 Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 3 19% 3 19% |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | |
Geographic concentration of net book value of flight equipment held for lease | Geographic concentration of net book value of flight equipment (including flight equipment held for lease and net investment in finance and sales-type leases, or “net book value”) was as follows: March 31, 2018 December 31, 2017 Region Number of Aircraft Net Book Value % Number of Aircraft Net Book Value % Asia and Pacific 62 31 % 59 30 % Europe 88 31 % 92 32 % Middle East and Africa 14 8 % 15 9 % North America 30 10 % 32 10 % South America 26 19 % 25 19 % Off-lease 2 (1) 1 % 1 (2) — % Total 222 100 % 224 100 % _______________ (1) Consisted of one Airbus A321-200 aircraft and one Boeing 747-400ERF aircraft, both of which were delivered on lease to customers in the second quarter of 2018. |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | At March 31, 2018 and December 31, 2017 , no country represented at least 10% of net book value of flight equipment based on each lessee’s principal place of business. |
Net Investment in Finance Lea27
Net Investment in Finance Leases (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Leases [Abstract] | |
Schedule Of Components Of Investment In Finance Leases | The following table lists the components of our net investment in finance and sales-type leases at March 31, 2018 : Amount Total lease payments to be received $ 314,311 Less: Unearned income (162,620 ) Estimated residual values of leased flight equipment (unguaranteed) 381,682 Net investment in finance and sales-type leases $ 533,373 |
Schedule of Future Minimum Lease Payments for Capital Leases | At March 31, 2018 , minimum future lease payments on finance and sales-type leases are as follows: Year Ending December 31, Amount Remainder of 2018 $ 50,583 2019 66,285 2020 63,840 2021 53,057 2022 42,460 Thereafter 38,086 Total lease payments to be received $ 314,311 |
Unconsolidated Equity Method 28
Unconsolidated Equity Method Investment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | At March 31, 2018 , the net book value of both joint ventures’ twelve aircraft was approximately $634,000 . Amount Investment in joint ventures at December 31, 2017 $ 76,982 Investment in joint ventures 356 Earnings from joint ventures, net of tax 1,782 Distributions (900 ) Investment in joint ventures at March 31, 2018 $ 78,220 The Company has recorded in its Consolidated Balance Sheet a $13,200 guarantee liability in Maintenance payments and a $5,100 guarantee liability in Security deposits representing its share of the respective exposures. |
Secured and Unsecured Debt Fi29
Secured and Unsecured Debt Financings (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Outstanding amounts of secured and unsecured term debt financings | The outstanding amounts of our secured and unsecured term debt financings are as follows: At March 31, 2018 At December 31, 2017 Debt Obligation Outstanding Borrowings Number of Aircraft Interest Rate Final Stated Maturity Outstanding Secured Debt Financings: ECA Financings (1) $ 218,006 6 3.02% to 3.96% 12/03/21 to 11/30/24 $ 227,491 Bank Financings (2) 617,806 23 2.22% to 4.49% 09/11/18 to 01/19/26 634,898 Less: Debt Issuance Costs (11,623 ) — (12,515 ) Total secured debt financings, net of debt issuance costs 824,189 29 849,874 Unsecured Debt Financings: Senior Notes due 2018 400,000 4.625% 12/15/18 400,000 Senior Notes due 2019 500,000 6.25% 12/01/19 500,000 Senior Notes due 2020 300,000 7.625% 04/15/20 300,000 Senior Notes due 2021 500,000 5.125% 03/15/21 500,000 Senior Notes due 2022 500,000 5.50% 02/15/22 500,000 Senior Notes due 2023 500,000 5.00% 04/01/23 500,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Unsecured Term Loan 120,000 4.125% 04/28/19 120,000 Revolving Credit Facilities 100,000 3.83% 11/21/19 to 05/13/20 175,000 Less: Debt Issuance Costs (28,776 ) (31,268 ) Total unsecured debt financings, net of debt issuance costs 3,391,224 3,463,732 Total secured and unsecured debt financings, net of debt issuance costs $ 4,215,413 $ 4,313,606 (1) The borrowings under these financings at March 31, 2018 have a weighted-average rate of interest of 3.58% . (2) The borrowings under these financings at March 31, 2018 have a weighted-average fixed rate of interest of 4.16% . |
Dividends (Tables)
Dividends (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Dividends [Abstract] | |
Quarterly dividends declared by board of directors | The following table sets forth the quarterly dividends declared by our Board of Directors for the periods covered in this report: Declaration Date Dividend per Common Share Aggregate Dividend Amount Record Date Payment Date February 9, 2018 $ 0.28 $ 22,085 February 28, 2018 March 15, 2018 October 31, 2017 $ 0.28 $ 22,039 November 30, 2017 December 15, 2017 August 4, 2017 $ 0.26 $ 20,464 August 31, 2017 September 15, 2017 May 2, 2017 $ 0.26 $ 20,482 May 31, 2017 June 15, 2017 February 9, 2017 $ 0.26 $ 20,466 February 28, 2017 March 15, 2017 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Allocation of distributed and undistributed earnings to both common shares and restricted common shares | Under the two-class method, earnings per common share is computed by dividing the sum of distributed earnings allocated to common shareholders and undistributed earnings allocated to common shareholders by the weighted-average number of common shares outstanding for the period. In applying the two-class method, distributed and undistributed earnings are allocated to both common shares and restricted common shares based on the total weighted-average shares outstanding during the period. Three Months Ended March 31, 2018 2017 Weighted-average shares: Common shares outstanding 78,366,588 78,176,705 Restricted common shares 431,161 503,802 Total weighted-average shares 78,797,749 78,680,507 Percentage of weighted-average shares: Common shares outstanding 99.45 % 99.36 % Restricted common shares 0.55 % 0.64 % Total percentage of weighted-average shares 100.00 % 100.00 % |
Basic and Diluted earnings per share | The calculations of both basic and diluted earnings per share are as follows: Three Months Ended March 31, 2018 2017 Earnings per share – Basic: Net income $ 57,547 $ 42,439 Less: Distributed and undistributed earnings allocated to restricted common shares (1) (315 ) (272 ) Earnings available to common shareholders – Basic $ 57,232 $ 42,167 Weighted-average common shares outstanding – Basic 78,366,588 78,176,705 Earnings per common share – Basic $ 0.73 $ 0.54 Earnings per share – Diluted: Net income $ 57,547 $ 42,439 Less: Distributed and undistributed earnings allocated to restricted common shares (1) (315 ) (272 ) Earnings available to common shareholders – Diluted $ 57,232 $ 42,167 Weighted-average common shares outstanding – Basic 78,366,588 78,176,705 Effect of dilutive shares (2) 228,019 194,848 Weighted-average common shares outstanding – Diluted 78,594,607 78,371,553 Earnings per common share – Diluted $ 0.73 $ 0.54 (1) For the three months ended March 31, 2018 and 2017 , distributed and undistributed earnings to restricted shares were 0.55% and 0.64% , respectively, of net income. The amount of restricted share forfeitures for both periods present is immaterial to the allocation of distributed and undistributed earnings. (2) For both periods presented, dilutive shares represented contingently issuable shares. |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Sources of income from continuing operations before income taxes | The sources of income from continuing operations before income taxes and earnings of our unconsolidated equity method investments for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended March 31, 2018 2017 U.S. operations $ 683 $ 596 Non-U.S. operations 54,238 41,447 Income from continuing operations before income taxes and earnings of unconsolidated equity method investments $ 54,921 $ 42,043 |
Analysis of effective income tax rate for continuing operations | Differences between statutory income tax rates and our effective income tax rates applied to pre-tax income from continuing operations consisted of the following: Three Months Ended March 31, 2018 2017 Notional U.S. federal income tax expense at the statutory rate $ 11,533 $ 14,715 U.S. state and local income tax, net 48 41 Non-U.S. operations: Bermuda (8,283 ) (8,828 ) Ireland (317 ) 542 Singapore (2,824 ) (2,927 ) Other low tax jurisdictions (808 ) (1,440 ) Non-deductible expenses in the U.S. (193 ) (249 ) Other — (8 ) Income tax (benefit) provision $ (844 ) $ 1,846 |
Interest, Net (Tables)
Interest, Net (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Interest Income (Expense), Net [Abstract] | |
Components of Interest | The following table shows the components of interest, net: Three Months Ended March 31, 2018 2017 Interest on borrowings and other liabilities $ 53,978 $ 58,839 Amortization of deferred losses related to interest rate derivatives 301 581 Amortization of deferred financing fees and debt discount 3,532 4,155 Interest expense 57,811 63,575 Less: Interest income (703 ) (414 ) Less: Capitalized interest — (93 ) Interest, net $ 57,108 $ 63,068 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Long-term Purchase Commitment [Table Text Block] | Commitments, including $129,218 of progress payments, contractual price escalations and other adjustments for these aircraft, at March 31, 2018 , net of amounts already paid, are as follows: Year Ending December 31, Amount Remainder of 2018 $ 488,468 2019 470,073 2020 375,216 2021 141,643 2022 — Thereafter — Total $ 1,475,400 |
Other Assets (Tables)
Other Assets (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Principal components of other assets | The following table describes the principal components of other assets on our Consolidated Balance Sheets as of: March 31, December 31, Deferred income tax asset $ 350 $ 497 Lease incentives and lease premiums, net of amortization of $36,934 and $41,246, respectively 71,657 74,515 Flight equipment held for sale 32,286 707 Aircraft purchase deposits and progress payments 22,604 23,704 Fair value of interest rate cap 6,428 3,254 Note receivable (1) 8,352 10,000 Other assets 31,977 28,533 Total other assets $ 173,654 $ 141,210 ______________ (1) Related to the sale of aircraft during the year ended December 31, 2017 . |
Accounts Payable, Accrued Exp36
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Payables and Accruals [Abstract] | |
Principal components of accounts payable, accrued expenses and other liabilities recorded on our consolidated balance sheet | The following table describes the principal components of accounts payable, accrued expenses and other liabilities recorded on our Consolidated Balance Sheets as of: March 31, December 31, Accounts payable and accrued expenses $ 34,294 $ 50,948 Deferred income tax liability 37,636 36,547 Accrued interest payable 55,074 38,129 Lease discounts, net of amortization of $38,103 and $36,111, respectively 12,957 14,597 Total accounts payable, accrued expenses and other liabilities $ 139,961 $ 140,221 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Entitysegment | Mar. 31, 2017USD ($) | |
Variable Interest Entity [Line Items] | ||
Revenues, As Previously Reported | $ 204,273 | |
Number of Operating Segments | segment | 1 | |
Gain (Loss) on Disposition of Property Plant Equipment | $ 5,768 | 759 |
Revenues | $ 202,680 | $ 205,032 |
Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Number of Consolidated Variable Interest Entities | Entity | 4 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | $ 210,815 | $ 211,922 |
Restricted cash and cash equivalents | 21,524 | 21,935 |
Derivative Asset | 0 | 0 |
Total | 232,339 | 233,857 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Derivative Asset | 6,428 | 3,254 |
Total | 6,428 | 3,254 |
Significant Unobservable Inputs (Level 3) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Derivative Asset | 0 | 0 |
Total | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 210,815 | 211,922 |
Restricted cash and cash equivalents | 21,524 | 21,935 |
Derivative Asset | 6,428 | 3,254 |
Total | $ 238,767 | $ 237,111 |
Fair Value Measurements (Deta39
Fair Value Measurements (Details 2) - Unsecured Debt - Reported Value Measurement - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Inputs, Level 2 [Member] | Revolving Credit Facility [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 100,000 | $ 175,000 |
Fair Value, Inputs, Level 1 [Member] | DBJ Term Loan | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 120,000 | $ 120,000 |
Fair Value Measurements (Deta40
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | ECA Term Financings {Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 219,461 | $ 232,030 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | Bank Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 619,245 | 634,132 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | ECA Term Financings {Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 218,006 | 227,491 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Bank Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 617,806 | 634,898 |
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | Revolving Credit Facility [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 100,000 | 175,000 |
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Revolving Credit Facility [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 100,000 | 175,000 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement [Member] | DBJ Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 120,000 | 120,000 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement [Member] | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 3,296,195 | 3,367,245 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Reported Value Measurement | DBJ Term Loan | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 120,000 | 120,000 |
Unsecured Debt | Quoted Prices in Active Markets for Identical Assets (Level 1) | Reported Value Measurement | Senior Notes | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 3,200,000 | $ 3,200,000 |
Fair Value Measurements (Deta41
Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Transfers, Net | $ 0 | |
Asset Impairment Charges | 0 | $ 500 |
Maintenance Revenue | $ 11,991 | $ 12,287 |
Lease Rental Revenues and Fli42
Lease Rental Revenues and Flight Equipment Held for Lease (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Leases [Abstract] | |
Operating Leases, Future Minimum Payments Receivable, Remainder of Fiscal Year | $ 544,676 |
Annual future minimum lease rentals receivable | |
Receivable in Year Two | 645,622 |
Receivable in Year Three | 526,357 |
Receivable in Year Four | 412,130 |
Receivable in Year Five | 319,117 |
Thereafter | 668,344 |
Total | $ 3,116,246 |
Lease Rental Revenues and Fli43
Lease Rental Revenues and Flight Equipment Held for Lease (Details 1) - Lease Rental Revenue - Geographic Concentration Risk | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 100.00% | 100.00% |
Asia and Pacific | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 29.00% | 22.00% |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 35.00% | 40.00% |
Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 8.00% | 7.00% |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 17.00% | 19.00% |
Middle East and Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 11.00% | 12.00% |
Lease Rental Revenues and Fli44
Lease Rental Revenues and Flight Equipment Held for Lease (Details 2) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Lessee | Mar. 31, 2017USD ($)Lessee | |
Revenue attributable to individual countries | ||
Revenue | $ | $ 177,483 | $ 190,586 |
Major Customer Group One [Member] | ||
Revenue from External Customer [Line Items] | ||
Concentration Risk, Number of Customers in Major Customer Group | Lessee | 3 | 3 |
Major Customer Group One [Member] | Geographic Concentration Risk | Total Revenue [Member] | ||
Revenue attributable to individual countries | ||
Percentage of geographic concentration | 19.00% | 19.00% |
Lease Rental Revenues and Fli45
Lease Rental Revenues and Flight Equipment Held for Lease (Details 3) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)Aircraft | Mar. 31, 2017USD ($) | Dec. 31, 2017Aircraft | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ | $ 177,483 | $ 190,586 | |
Number of Aircraft | 222 | 224 | |
Number of Offlease Aircraft Marketed for Lease or Sale | 1 | ||
Number of Offlease Aircraft Marketed for Lease | 2 | ||
Asia and Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 88 | 92 | |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 62 | 59 | |
Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 30 | 32 | |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 26 | 25 | |
Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Number of Aircraft | 14 | 15 | |
Geographic Concentration Risk | Net Book Value | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 100.00% | 100.00% | |
Geographic Concentration Risk | Net Book Value | Asia and Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 31.00% | 32.00% | |
Geographic Concentration Risk | Net Book Value | Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 31.00% | 30.00% | |
Geographic Concentration Risk | Net Book Value | Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 10.00% | 10.00% | |
Geographic Concentration Risk | Net Book Value | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 19.00% | 19.00% | |
Geographic Concentration Risk | Net Book Value | Middle East and Africa | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 8.00% | 9.00% | |
Geographic Concentration Risk | Net Book Value | Off Lease | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of geographic concentration | 1.00% | 0.00% |
Lease Rental Revenues and Fli46
Lease Rental Revenues and Flight Equipment Held for Lease (Details 4) - Aircraft | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of Offlease Aircraft Marketed for Lease | 2 | |
Geographic Concentration Risk | Net Book Value | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Percentage of geographic concentration | 100.00% | 100.00% |
A321-200 [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of Offlease Aircraft Marketed for Lease | 1 | 1 |
B747-400 Production Freighter [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Number of Offlease Aircraft Marketed for Lease | 1 |
Lease Rental Revenues and Fli47
Lease Rental Revenues and Flight Equipment Held for Lease (Details Textual) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Lessee | Mar. 31, 2017Lessee | Dec. 31, 2017USD ($) | |
Customer Group One | |||
Revenue, Major Customer [Line Items] | |||
Entity-Wide Revenue, Major Customer, Number | Lessee | 3 | 3 | |
Lease Rental Revenue | Customer Concentration Risk | Customer Group One | |||
Revenue, Major Customer [Line Items] | |||
Percentage of geographic concentration | 19.00% | 19.00% | |
Maintenance Payments {Member] | |||
Revenue, Major Customer [Line Items] | |||
Amounts of lease incentive liabilities recorded in the consolidated balance sheets | $ | $ 13,813 | $ 11,496 |
Net Investment in Finance Lea48
Net Investment in Finance Leases Narrative (Details) | Mar. 31, 2018Aircraft |
Capital Leased Assets [Line Items] | |
Capital Leased Assets, Number of Units | 30 |
Net Investment in Finance Lea49
Net Investment in Finance Leases Net Investment in Finance Leases (Details) $ in Thousands | Mar. 31, 2018USD ($)Aircraft | Dec. 31, 2017USD ($) |
Capital Leased Assets, Number of Units | Aircraft | 30 | |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ||
Total lease payments to be received | $ 314,311 | |
Less: Unearned income | (162,620) | |
Estimated residual values of leased flight equipment (unguaranteed) | 381,682 | |
Net investment in finance and sales-type leases | 533,373 | $ 545,750 |
Receivable in Remainder of Fiscal Year | 50,583 | |
Receivable in Year Two | 66,285 | |
Receivable in Year Three | 63,840 | |
Receivable in Year Four | 53,057 | |
Receivable in Year Five | 42,460 | |
Thereafter | 38,086 | |
Total | $ 314,311 |
Unconsolidated Equity Method 50
Unconsolidated Equity Method Investment (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018USD ($)Aircraft | Mar. 31, 2017USD ($) | Dec. 31, 2017USD ($) | |
Unconsolidated equity method investments | $ 78,220 | $ 76,982 | |
Equity Method Investments Before Earnings | 356 | ||
Earnings of unconsolidated equity method investments, net of tax | 1,782 | $ 2,242 | |
Distributions from unconsolidated equity method investment in excess of earnings | $ (900) | ||
Total number of aircraft owned by joint ventures | Aircraft | 12 | ||
Property Subject to or Available for Operating Lease, Net | $ 6,143,695 | 6,188,469 | |
Customer Advances and Deposits | 679,571 | $ 649,434 | |
Equity Method Investee | |||
Property Subject to or Available for Operating Lease, Net | 634,000 | ||
Maintenance Payments {Member] | Equity Method Investee | |||
Customer Advances and Deposits | 13,200 | ||
security deposit [Member] | Equity Method Investee | |||
Customer Advances and Deposits | $ 5,100 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Variable Interest Entity, Primary Beneficiary $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)AircraftTerm_LoanEntity | |
Variable Interest Entity [Line Items] | |
Number of Consolidated Variable Interest Entities | Entity | 4 |
Number of Aircrafts | Aircraft | 6 |
Air Knight VIEs | ECA Term Financings {Member] | |
Variable Interest Entity [Line Items] | |
Type of term loans | Term_Loan | 6 |
Debt instrument, term | 12 years |
Net book value of flight equipment held for lease | $ 408,370 |
Consolidated debt outstanding | $ 212,975 |
Secured and Unsecured Debt Fi52
Secured and Unsecured Debt Financings (Details) $ in Thousands | Mar. 31, 2018USD ($)Aircraft | Dec. 31, 2017USD ($) |
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from secured financings | $ 824,189 | $ 849,874 |
Number of Aircraft Financed | Aircraft | 29 | |
Borrowings from unsecured financings, net of debt issuance costs | $ 3,391,224 | 3,463,732 |
Total secured and unsecured debt financings | 4,215,413 | 4,313,606 |
Line of Credit | Revolving Credit Facility [Member] | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | 175,000 | |
2013 Revolving Credit Facility | Line of Credit | Revolving Credit Facility [Member] | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 100,000 | |
Revolving Credit Facility [Member] | Line of Credit | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Interest rate | 3.8341% | |
ECA Term Financings {Member] | Secured Debt | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Number of Aircraft Financed | Aircraft | 6 | |
ECA Term Financings {Member] | Notes Payable, Other Payables | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from secured financings | $ 218,006 | 227,491 |
Bank Financings | Secured Debt | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Number of Aircraft Financed | Aircraft | 23 | |
Bank Financings | Notes Payable to Banks | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from secured financings | $ 617,806 | 634,898 |
Secured Debt | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Debt Issuance Cost | (11,623) | (12,515) |
Senior Notes Due 2018 with 4.625 Interest Rate | Senior Notes | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 400,000 | 400,000 |
Interest rate | 4.625% | |
Senior Notes Due 2019 | Senior Notes | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
Interest rate | 6.25% | |
Senior Notes Due 2020 | Senior Notes | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 300,000 | 300,000 |
Interest rate | 7.625% | |
Senior Notes due 2021 | Senior Notes | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
Interest rate | 5.125% | |
Senior Notes Due 2022 [Member] | Senior Notes | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
Interest rate | 5.50% | |
Senior Notes Due 2023 [Member] | Senior Notes | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
Interest rate | 5.00% | |
Senior Notes Due 2024 [Member] | Senior Notes | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
Interest rate | 4.125% | |
Floating Rate Term Loan [Member] | Floating Rate Term Loan [Member] | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 120,000 | 120,000 |
Interest rate | 4.1245% | |
Unsecured Debt | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Debt Issuance Cost | $ (28,776) | $ (31,268) |
Minimum [Member] | ECA Term Financings {Member] | Notes Payable, Other Payables | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Interest rate | 3.02% | |
Minimum [Member] | Bank Financings | Notes Payable to Banks | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Interest rate | 2.22% | |
Maximum | ECA Term Financings {Member] | Notes Payable, Other Payables | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Interest rate | 3.96% | |
Maximum | Bank Financings | Notes Payable to Banks | ||
Outstanding amounts of secured and unsecured term debt financings | ||
Interest rate | 4.49% |
Secured and Unsecured Debt Fi53
Secured and Unsecured Debt Financings (Details 1) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 3,391,224 | $ 3,463,732 |
Notes Payable, Other Payables | ECA Term Financings {Member] | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 3.5846% | |
Notes Payable, Other Payables | Bank Financings | ||
Debt Instrument [Line Items] | ||
Debt, Weighted Average Interest Rate | 4.1556% | |
Senior Notes | Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.125% | |
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
Senior Notes | Senior Notes Due 2020 | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.625% | |
Borrowings from unsecured financings, net of debt issuance costs | $ 300,000 | 300,000 |
Senior Notes | Senior Notes due 2021 | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.125% | |
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
Senior Notes | Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.50% | |
Borrowings from unsecured financings, net of debt issuance costs | $ 500,000 | 500,000 |
Line of Credit | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Borrowings from unsecured financings, net of debt issuance costs | $ 175,000 | |
Line of Credit | 2013 Revolving Credit Facility | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 100,000 | |
Line of Credit | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.8341% | |
Maximum | Notes Payable, Other Payables | ECA Term Financings {Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.96% | |
Maximum | Notes Payable to Banks | Bank Financings | ||
Debt Instrument [Line Items] | ||
Interest rate | 4.49% |
Shareholders' Equity and Shar54
Shareholders' Equity and Share Based Payment Shareholders' Equity and Share Based Payment (Details Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-cash share-based payment expense | $ 2,378 | $ 2,102 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 89,000 | |
Total Performance-Based Shares Granted [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 306,359 | |
AROEPerformanceBasedShares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted | 291,876 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-cash share-based payment expense | $ 874 | |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 9,215 | |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 2 years 1 month 16 days | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-cash share-based payment expense | $ 1,504 | |
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 8,888 | |
Common Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Repurchased During Period, Shares | 354,737 | |
Stock Repurchased During Period, Value | $ 6,900 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Feb. 09, 2018 | Oct. 31, 2017 | Aug. 04, 2017 | May 02, 2017 | Feb. 09, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Dividends [Abstract] | |||||||
Dividend per Common Share | $ 0.28 | $ 0.28 | $ 0.26 | $ 0.26 | $ 0.26 | $ 0.28 | $ 0.26 |
Aggregate Dividend Amount | $ 22,085 | $ 22,039 | $ 20,464 | $ 20,482 | $ 20,466 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Weighted-average shares: | ||
Common shares outstanding | 78,366,588 | 78,176,705 |
Restricted common shares | 431,161 | 503,802 |
Total Weighted Average Shares | 78,797,749 | 78,680,507 |
Percentage of weighted-average shares: | ||
Common shares outstanding | 99.45% | 99.36% |
Restricted common shares | 0.55% | 0.64% |
Total | 100.00% | 100.00% |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | $ 315 | $ 272 |
Participating Securities, Distributed and Undistributed Earnings of Net Income, Percent | 0.55% | 0.64% |
Earnings per share – Basic: | ||
Net income | $ 57,547 | $ 42,439 |
Earnings available to common shareholders – Basic | $ 57,232 | $ 42,167 |
Weighted-average common shares outstanding – Basic | 78,366,588 | 78,176,705 |
Earnings per common share – Basic | $ 0.73 | $ 0.54 |
Earnings per share – Diluted: | ||
Net income | $ 57,547 | $ 42,439 |
Earnings available to common shareholders – Diluted | $ 57,232 | $ 42,167 |
Weighted-average common shares outstanding – Basic | 78,366,588 | 78,176,705 |
Effect of dilutive shares(2) | 228,019 | 194,848 |
Weighted-average common shares outstanding – Diluted | 78,594,607 | 78,371,553 |
Earnings per common share – Diluted | $ 0.73 | $ 0.54 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Sources of income from continuing operations before income taxes | ||
U.S. operations | $ 683 | $ 596 |
Non-U.S. operations | 54,238 | 41,447 |
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | $ 54,921 | $ 42,043 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Analysis of effective income tax rate for continuing operations | ||
Notional U.S. federal income tax expense at the statutory rate | $ 11,533 | $ 14,715 |
U.S. state and local income tax, net | 48 | 41 |
Non-deductible expenses in the U.S. | (193) | (249) |
Other | 0 | (8) |
Income tax (benefit) provision | (844) | 1,846 |
Bermuda | ||
Analysis of effective income tax rate for continuing operations | ||
Non-U.S. operations: | (8,283) | (8,828) |
Ireland | ||
Analysis of effective income tax rate for continuing operations | ||
Non-U.S. operations: | (317) | 542 |
Other | ||
Analysis of effective income tax rate for continuing operations | ||
Non-U.S. operations: | (808) | (1,440) |
Singapore | Foreign Tax Authority | ||
Analysis of effective income tax rate for continuing operations | ||
Non-U.S. operations: | $ (2,824) | $ (2,927) |
Income Taxes Income Taxes (Text
Income Taxes Income Taxes (Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 3.60% | |||
Effective Income Tax Rate, Continuing Operations | (1.50%) | 4.40% | ||
Singapore | ||||
Deferred Income Tax Expense (Benefit) | $ 2,779 | |||
Singapore Tax Holiday Income Tax Rate | 8.00% | 10.00% |
Interest, Net (Details)
Interest, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest Income (Expense), Net [Abstract] | ||
Interest on borrowings and other liabilities | $ 53,978 | $ 58,839 |
Cash flow hedges reclassified into earnings | 301 | 581 |
Amortization of deferred financing costs | 3,532 | 4,155 |
Interest expense | 57,811 | 63,575 |
Less: Interest income | (703) | (414) |
Interest Costs Capitalized | 0 | (93) |
Interest, net | $ 57,108 | $ 63,068 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)Aircraft | Apr. 27, 2018USD ($)Aircraft | |
Types of Commercial Aircraft [Line Items] | ||
Long-term Purchase Commitment, Minimum Quantity Required | Aircraft | 25 | |
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year | $ 488,468 | |
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | Aircraft | 37 | |
Purchase Obligation, Due in Second Year | $ 470,073 | |
Purchase Obligation, Due in Third Year | 375,216 | |
Purchase Obligation, Due in Fourth Year | 141,643 | |
Purchase Obligation, Due in Fifth Year | 0 | |
Purchase Obligation, Due after Fifth Year | 0 | |
Purchase Obligation | 1,475,400 | |
Subsequent Event [Member] | ||
Types of Commercial Aircraft [Line Items] | ||
Unrecorded Unconditional Purchase Obligation, Minimum Quantity Required | Aircraft | 39 | |
Unrecorded Unconditional Purchase Obligation | $ 1,532,000 | |
Pre-Delivery Payments [Member] | ||
Types of Commercial Aircraft [Line Items] | ||
Purchase Obligation | $ 129,218 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Principal components of other assets | ||
Deferred income tax asset | $ 350 | $ 497 |
Lease incentives and lease premiums, net of amortization of $36,934 and $41,246, respectively | 71,657 | 74,515 |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 32,286 | 707 |
Deposit Assets | 22,604 | 23,704 |
Interest Rate Derivative Assets, at Fair Value | 6,428 | 3,254 |
Notes, Loans and Financing Receivable, Net, Noncurrent | 8,352 | 10,000 |
Other assets | 31,977 | 28,533 |
Total other assets | 173,654 | 141,210 |
Amortization of lease incentives and lease premiums | $ 36,934 | $ 41,246 |
Accounts Payable, Accrued Exp64
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Payables and Accruals [Abstract] | ||
Accounts payable and accrued expenses | $ 34,294 | $ 50,948 |
Deferred income tax liability | 37,636 | 36,547 |
Accrued interest payable | 55,074 | 38,129 |
Lease discounts, net of amortization of $38,103 and $36,111, respectively | 12,957 | 14,597 |
Total accounts payable, accrued expenses and other liabilities | 139,961 | 140,221 |
Deferred Revenue, Leases, Accumulated Amortization | $ 38,103 | $ 36,111 |