Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 02, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32959 | |
Entity Registrant Name | AIRCASTLE LIMITED | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0444035 | |
Entity Address, Address Line One | c/o Aircastle Advisor LLC | |
Entity Address, Address Line Two | 201 Tresser Boulevard, Suite 400 | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
City Area Code | 203 | |
Local Phone Number | 504-1020 | |
Title of 12(b) Security | Common Shares, par value $0.01 per share | |
Trading Symbol | AYR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 74,950,797 | |
Entity Central Index Key | 0001362988 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Address, Postal Zip Code | 06901 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 500,373 | $ 152,719 |
Restricted cash and cash equivalents | 14,751 | 15,134 |
Accounts receivable | 12,841 | 15,091 |
Flight equipment held for lease, net of accumulated depreciation of $1,371,515 and $1,221,985, respectively | 7,341,097 | 6,935,585 |
Net investment in direct financing and sales-type leases | 500,918 | 469,180 |
Unconsolidated equity method investments | 78,793 | 69,111 |
Other assets | 185,702 | 214,361 |
Total assets | 8,634,475 | 7,871,181 |
LIABILITIES | ||
Borrowings from secured financings, net of debt issuance costs and discounts | 1,214,402 | 798,457 |
Borrowings from unsecured financings, net of debt issuance costs and discounts | 4,277,731 | 3,962,896 |
Accounts payable, accrued expenses and other liabilities | 164,585 | 153,341 |
Lease rentals received in advance | 96,973 | 87,772 |
Security deposits | 124,867 | 120,962 |
Maintenance payments | 734,433 | 739,072 |
Total liabilities | 6,612,991 | 5,862,500 |
Commitments and Contingencies | ||
SHAREHOLDERS’ EQUITY | ||
Common shares, $0.01 par value, 250,000,000 shares authorized, 74,983,114 shares issued and outstanding at June 30, 2019; and 75,454,511 shares issued and outstanding at December 31, 2018 | 750 | 754 |
Additional paid-in capital | 1,460,534 | 1,468,779 |
Retained earnings | 560,200 | 539,332 |
Accumulated other comprehensive loss | 0 | (184) |
Total shareholders’ equity | 2,021,484 | 2,008,681 |
Total liabilities and shareholders’ equity | $ 8,634,475 | $ 7,871,181 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accumulated depreciation on flight equipment held for lease | $ 1,371,515 | $ 1,221,985 |
Common shares, par value | $ 0.01 | $ 0.01 |
Common shares, shares authorized | 250,000,000 | 250,000,000 |
Common shares, shares issued | 74,983,114 | 75,454,511 |
Common shares, shares outstanding | 74,983,114 | 75,324,989 |
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Lease rental revenue | $ 192,823 | $ 178,486 | $ 374,057 | $ 355,969 |
Direct financing and sales-type lease revenue | 8,321 | 8,868 | 16,764 | 18,310 |
Amortization of lease premiums, discounts and incentives | (5,345) | (3,534) | (11,056) | (6,662) |
Total lease revenue | 222,366 | 183,820 | 422,733 | 379,608 |
Gain on sale of flight equipment | 346 | 19,864 | 12,348 | 25,632 |
Total revenues | 223,416 | 204,276 | 437,343 | 406,956 |
Operating expenses: | ||||
Depreciation | 89,578 | 76,181 | 174,313 | 151,183 |
Interest, net | 66,377 | 57,398 | 129,840 | 114,506 |
Selling, general and administrative (including non-cash share-based payment expense of $3,177 and $3,076 for the three months ended and $5,903 and $5,454 for the six months ended June 30, 2019 and 2018, respectively) | 18,317 | 18,583 | 36,317 | 36,418 |
Impairment of flight equipment | 7,404 | 0 | 7,404 | 0 |
Maintenance and other costs | 5,213 | 1,561 | 12,617 | 2,549 |
Total operating expenses | 186,889 | 153,723 | 360,491 | 304,656 |
Other income (expense): | ||||
Total other income (expense) | (1,910) | 901 | (3,971) | 4,075 |
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | 34,617 | 51,454 | 72,881 | 106,375 |
Income tax provision | 5,992 | 3,132 | 9,090 | 2,288 |
Earnings of unconsolidated equity method investments, net of tax | 2,487 | 1,881 | 2,131 | 3,663 |
Net income | $ 31,112 | $ 50,203 | $ 65,922 | $ 107,750 |
Earnings per common share — Basic: | ||||
Net income (loss) per share (in dollars per share) | $ 0.41 | $ 0.64 | $ 0.88 | $ 1.37 |
Earnings per common share — Diluted: | ||||
Net income per share | 0.41 | 0.64 | 0.87 | 1.37 |
Dividends declared per share | $ 0.30 | $ 0.28 | $ 0.60 | $ 0.56 |
Maintenance revenue | ||||
Revenues: | ||||
Revenues from contracts with customers | $ 26,567 | $ 0 | $ 42,968 | $ 11,991 |
Other revenue | ||||
Revenues: | ||||
Revenues from contracts with customers | $ 704 | $ 592 | $ 2,262 | $ 1,716 |
Consolidated Statements of In_2
Consolidated Statements of Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Non-cash share based payment expense | $ 3,177 | $ 3,076 | $ 5,903 | $ 5,454 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 31,112 | $ 50,203 | $ 65,922 | $ 107,750 |
Other comprehensive income, net of tax: | ||||
Net derivative loss reclassified into earnings | 0 | 294 | 184 | 595 |
Other comprehensive income | 0 | 294 | 184 | 595 |
Total comprehensive income | $ 31,112 | $ 50,497 | $ 66,106 | $ 108,345 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net of tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||||
Net income | $ 31,112 | $ 50,203 | $ 65,922 | $ 107,750 |
Adjustments to reconcile net income to net cash and restricted cash provided by operating activities: | ||||
Depreciation | 89,578 | 76,181 | 174,313 | 151,183 |
Amortization of deferred financing costs | 6,958 | 7,042 | ||
Amortization of lease premiums, discounts and incentives | 5,345 | 3,534 | 11,056 | 6,662 |
Deferred income taxes | 7,957 | 3,126 | ||
Non-cash share-based payment expense | 3,177 | 3,076 | 5,903 | 5,454 |
Cash flow hedges reclassified into earnings | 0 | 294 | 184 | 595 |
Proceeds from Collection of Finance Receivables | 10,971 | 13,127 | ||
Security deposits and maintenance payments included in earnings | (24,162) | (554) | ||
Gain on sale of flight equipment | (346) | (19,864) | (12,348) | (25,632) |
Impairment of flight equipment | 7,404 | 0 | 7,404 | 0 |
Other | 209 | (7,491) | ||
Changes in certain assets and liabilities: | ||||
Accounts receivable | (7,899) | (7,315) | ||
Other assets | 3,582 | (3,086) | ||
Accounts payable, accrued expenses and other liabilities | (11,619) | (14,799) | ||
Lease rentals received in advance | 7,181 | 16,908 | ||
Net cash and restricted cash provided by operating activities | 245,612 | 252,970 | ||
Cash flows from investing activities: | ||||
Acquisition and improvement of flight equipment | (660,723) | (365,505) | ||
Proceeds from sale of flight equipment | 56,924 | 178,185 | ||
Net investment in direct financing and sales-type leases | 0 | (16,256) | ||
Aircraft purchase deposits and progress payments, net of returned deposits and aircraft sales deposits | 18,054 | (3,965) | ||
Other | 2,241 | 2,956 | ||
Net cash and restricted cash used in investing activities | (591,055) | (204,585) | ||
Cash flows from financing activities: | ||||
Repurchase of shares | (14,288) | (14,987) | ||
Proceeds from secured and unsecured debt financings | 1,841,848 | 0 | ||
Repayments of secured and unsecured debt financings | (1,105,353) | (128,342) | ||
Deferred financing costs | (12,165) | (1,615) | ||
Security deposits and maintenance payments received | 92,514 | 108,653 | ||
Security deposits and maintenance payments returned | (64,788) | (38,718) | ||
Dividends paid | (45,054) | (43,993) | ||
Net cash and restricted cash provided by (used in) financing activities | 692,714 | (119,002) | ||
Net decrease in cash and restricted cash: | 347,271 | (70,617) | ||
Cash and restricted cash at beginning of period | 167,853 | 233,857 | ||
Cash and restricted cash at end of period | 515,124 | 163,240 | 515,124 | 163,240 |
Cash and cash equivalents | 500,373 | 142,360 | 500,373 | 142,360 |
Restricted cash and cash equivalents | $ 14,751 | $ 20,880 | 14,751 | 20,880 |
Supplemental disclosures of non-cash investing activities: | ||||
Payments to Acquire Interest in Subsidiaries and Affiliates | $ 7,551 | $ 0 |
Consolidated Statements of Shar
Consolidated Statements of Shareholder's Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Common Stock, Shares, Outstanding | 78,707,963 | ||||
Stockholders' Equity Attributable to Parent | $ 1,907,564 | $ 787 | $ 1,527,796 | $ 380,331 | $ (1,350) |
Stock Issued During Period, Shares, New Issues | 293,680 | ||||
Stock Issued During Period, Value, New Issues | 0 | $ 3 | (3) | ||
Stock Repurchased During Period, Shares | (462,452) | ||||
Stock Repurchased During Period, Value | (9,413) | $ 5 | 9,408 | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,048 | 2,048 | |||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 1,680 | ||||
Dividends, Common Stock, Cash | (22,085) | 22,085 | |||
Net income | 57,547 | 57,547 | |||
Net derivative loss reclassified into earnings | 301 | (301) | |||
Net income | 107,750 | ||||
Net derivative loss reclassified into earnings | 595 | ||||
Common Stock, Shares, Outstanding | 78,539,191 | ||||
Stockholders' Equity Attributable to Parent | 1,937,454 | $ 785 | 1,522,113 | 415,605 | (1,049) |
Cumulative Effect of New Accounting Principle in Period of Adoption | (188) | ||||
Stock Repurchased During Period, Shares | 295,153 | ||||
Stock Repurchased During Period, Value | (5,574) | $ (3) | (5,571) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,750 | 2,750 | |||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 187 | ||||
Dividends, Common Stock, Cash | (21,908) | (21,908) | |||
Net income | 50,203 | 50,203 | |||
Net derivative loss reclassified into earnings | 294 | (294) | |||
Common Stock, Shares, Outstanding | 78,244,038 | ||||
Stockholders' Equity Attributable to Parent | $ 1,963,406 | $ 782 | 1,519,479 | 443,900 | (755) |
Common Stock, Shares, Outstanding | 75,324,989 | 75,454,511 | |||
Stockholders' Equity Attributable to Parent | $ 2,008,681 | $ 754 | 1,468,779 | 539,332 | (184) |
Stock Issued During Period, Shares, New Issues | 276,923 | ||||
Stock Issued During Period, Value, New Issues | 0 | $ 3 | (3) | ||
Stock Repurchased During Period, Shares | (653,796) | ||||
Stock Repurchased During Period, Value | (11,424) | $ 6 | 11,418 | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,410 | 2,410 | |||
APIC, Share-based Payment Arrangement, Restricted Stock Unit, Increase for Cost Recognition | 796 | ||||
Dividends, Common Stock, Cash | (22,518) | (22,518) | |||
Net income | 34,810 | 34,810 | |||
Net derivative loss reclassified into earnings | 184 | (184) | |||
Net income | 65,922 | ||||
Net derivative loss reclassified into earnings | 184 | ||||
Common Stock, Shares, Outstanding | 75,077,638 | ||||
Stockholders' Equity Attributable to Parent | 2,012,939 | $ 751 | 1,460,564 | 551,624 | 0 |
Stock Issued During Period, Shares, New Issues | 35,000 | ||||
Stock Issued During Period, Value, New Issues | 0 | $ 0 | 0 | ||
Stock Repurchased During Period, Shares | 129,524 | ||||
Stock Repurchased During Period, Value | (2,864) | $ (1) | (2,863) | ||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 2,833 | 2,833 | |||
Dividends, Common Stock, Cash | (22,536) | (22,536) | |||
Net income | 31,112 | 31,112 | |||
Net derivative loss reclassified into earnings | $ 0 | ||||
Common Stock, Shares, Outstanding | 74,983,114 | 74,983,114 | |||
Stockholders' Equity Attributable to Parent | $ 2,021,484 | $ 750 | $ 1,460,534 | $ 560,200 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 . Effective January 1, 2019, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842, Leases (“ASC 842”) which, together with all subsequent amendments, replaced the existing guidance in ASC 840, Leases (“ASC 840”). The accounting for leases by lessors remained largely unchanged from the concepts that existed in ASC 840. The FASB decided that lessors would be precluded from recognizing selling profit and revenue at lease commencement for any sales-type or direct financing 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 revenue recognition standard, which evaluates whether a sale has occurred from the customer’s perspective. As a result of the Company’s adoption of ASC 842, we have recognized right-of-use assets and lease liabilities on our Consolidated Balance Sheet as of June 30, 2019 , for our office leases classified as operating leases under ASC 842, existing at, or entered into after, January 1, 2019. We adopted the standard using the required “modified retrospective” approach and the available practical expedients. The standard did not have a material impact on our consolidated financial statements and related disclosures. As part of the Company’s adoption of ASC 842, we classified collections on direct financing and sales-type leases within operating activities on our Consolidated Statement of Cash Flows for the six months ended June 30, 2019 . This had previously been included within investing activities. The presentation for the six months ended June 30, 2018 , has also been reclassified to conform to the current period presentation: Six Months Ended June 30, 2018 Net cash and restricted cash provided by operating activities as previously reported $ 239,843 Collections on direct financing and sales-type leases 13,127 Net cash and restricted cash provided by operating activities $ 252,970 The Company’s management has reviewed and evaluated all events or transactions for potential recognition and/or disclosure since the balance sheet date of June 30, 2019 , through the date on which the consolidated financial statements included in this Form 10-Q were issued. 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. Lease Revenue Recognition We lease flight equipment under net operating leases with lease terms typically ranging from three to seven years. We generally do not offer renewal terms or purchase options in our leases, although certain of our operating leases allow the lessee the option to extend the lease for an additional term. Operating leases with fixed rentals and step rentals are recognized on a straight-line basis over the term of the initial lease, assuming no renewals. Operating lease rentals that adjust based on a London Interbank Offered Rate (“LIBOR”) index are recognized on a straight-line basis over the lease term using the prevailing rate at lease commencement. Changes to rate-based lease rentals are recognized in the statement of income in the period of change. Flight Equipment Held for Lease and Depreciation Estimated residual values are generally determined to be approximately 15% of the manufacturer’s estimated realized price for passenger aircraft when new and 5% to 10% for freighter aircraft when new. Management may make exceptions to this policy on a case-by-case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of value or when events or changes in circumstances, or indicators, suggest that the carrying amount or net book value of an asset may not be recoverable. Recent Accounting Pronouncements In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments and related updates. The standard affects entities holding financial assets and net investments 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 replaces today’s incurred loss model with an expected loss model that requires entities to consider a broader range of information to estimate expected credit losses over the lifetime of the asset. Under the new standard, an allowance for credit losses is recorded which represents amounts not expected to be collected. 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. Upon the Company’s adoption of the standard, the primary impact will be to the carrying value of our net investment in direct financing and sales-type leases, as we will recognize an allowance for credit losses in 2020 with an adjustment to the opening balance of retained earnings. We continue to evaluate the impact the standard will have on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The standard modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are in the process of determining the impact the standard will have on our related disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The standard requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use-software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. We are in the process of determining the impact the standard will have on our consolidated financial statements and related disclosures. In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities . The standard changes how all entities evaluate decision-making fees under the variable interest entity guidance. The standard is applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018 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 June 30, 2019 Using Fair Value Hierarchy Fair Value as of June 30, 2019 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 $ 500,373 $ 500,373 $ — $ — Market Restricted cash and cash equivalents 14,751 14,751 — — Market Derivative assets 891 — 891 — Market Total $ 516,015 $ 515,124 $ 891 $ — Fair Value Measurements at December 31, 2018 Using Fair Value Hierarchy Fair Value as of December 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 $ 152,719 $ 152,719 $ — $ — Market Restricted cash and cash equivalents 15,134 15,134 — — Market Derivative assets 4,886 — 4,886 — Market Total $ 172,739 $ 167,853 $ 4,886 $ — 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 derivative assets included in Level 2 consist of United States dollar-denominated interest rate caps, 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 and six months ended June 30, 2019 and the year ended December 31, 2018 , 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 and the Company determines that the decline is other than temporary. 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. Aircraft Valuation Transactional Impairments On April 10, 2019, the Company early terminated the leases for seven Boeing 737NG aircraft on lease to Jet Airways (India) Limited (“Jet Airways”) due to lessee default. As a result of these lease terminations, the Company recognized net maintenance revenue of $17,554 and impairment charges of $7,404 in the second quarter of 2019. Annual Recoverability Assessment We completed our annual recoverability assessment of our aircraft in the second quarter this year. We also performed aircraft-specific analyses where there were changes in circumstances, such as approaching lease expirations. Other than the transactional impairments discussed above, no other impairments were recorded as a result of our annual recoverability assessment. The recoverability assessment is a comparison of the carrying value of each aircraft to its undiscounted expected future cash flows. We develop the assumptions used in the recoverability assessment, including those relating to current and future demand for each aircraft type, based on management’s experience in the aircraft leasing industry, as well as information received from third-party sources. Estimates of the undiscounted cash flows for each aircraft type are impacted by changes in contracted and future expected lease rates, residual values, expected scrap values, economic conditions and other factors. Management believes that the net book value of each aircraft is currently supported by the estimated future undiscounted cash flows expected to be generated by that aircraft, and accordingly, no aircraft were impaired as a consequence of our annual recoverability assessment. However, if our estimates or assumptions change, we may revise our cash flow assumptions and record future impairment charges. While we believe that the estimates and related assumptions used in the annual recoverability assessment are appropriate, actual results could differ from those estimates. 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 June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Carrying Amount of Liability Fair Value of Liability Carrying Amount of Liability Fair Value of Liability Credit Facilities $ — $ — $ 425,000 $ 425,000 Unsecured Term Loan 215,000 215,000 120,000 120,000 ECA Financings 169,350 173,084 189,080 190,216 Bank Financings 1,059,092 1,075,035 619,715 623,604 Senior Notes 4,100,000 4,240,850 3,450,000 3,446,826 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 were as follows: Year Ending December 31, Amount Remainder of 2019 $ 397,081 2020 716,774 2021 607,140 2022 518,834 2023 442,869 Thereafter 720,650 Total $ 3,403,348 Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: Three Months Ended June 30, Six Months Ended June 30, Region 2019 2018 2019 2018 Asia and Pacific 44 % 35 % 43 % 35 % Europe 28 % 29 % 28 % 29 % Middle East and Africa 10 % 11 % 11 % 11 % North America 8 % 8 % 8 % 8 % South America 10 % 17 % 10 % 17 % Total 100 % 100 % 100 % 100 % The classification of regions in the table above and in the tables 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% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 3 21% 3 19% 3 21% 3 19% The following table sets forth revenue attributable to individual countries representing at least 10% of total revenue (including maintenance revenue) based on each lessee’s principal place of business for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Country Revenue % of Total Revenue Revenue % of Total Revenue Revenue % of Total Revenue Revenue % of Total Revenue India (1) $ 42,312 19% $ — —% $ 61,638 14% $ — —% _______________ (1) For the three and six months ended June 30, 2019 , total revenue attributable to India included maintenance revenue of $17,554 . For the three and six months ended June 30, 2018 , total revenue attributable to India was less than 10%. Geographic concentration of net book value of flight equipment (including flight equipment held for lease and net investment in direct financing and sales-type leases, or “net book value”) was as follows: June 30, 2019 December 31, 2018 Region Number of Aircraft Net Book Value % Number of Aircraft Net Book Value % Asia and Pacific 91 38 % 78 36 % Europe 95 27 % 87 27 % Middle East and Africa 17 8 % 17 8 % North America 37 11 % 35 10 % South America 23 13 % 16 10 % Off-lease 5 (1) 3 % 15 (2) 9 % Total 268 100 % 248 100 % _______________ (1) Consisted of three Airbus A320-200 and one Airbus A330-200 aircraft, which are subject to lease commitments, and one Airbus A330-200 aircraft, which we are marketing for lease or sale. (2) Consisted of three Airbus A320-200 aircraft, which are subject to lease commitments, one Airbus A330-200 aircraft, which we are marketing for lease or sale, one Boeing 737-800 aircraft along with one Boeing 777-300ER aircraft, which were delivered on lease to customers during the first quarter of 2019, seven Airbus A320-200 aircraft, which were delivered on lease to a customer during the second quarter of 2019, one Airbus A320-200 aircraft, which was sold during the first quarter of 2019 and one Airbus A330-200 aircraft, which is subject to a lease commitment. The following table sets forth net book value of flight equipment (includes net book value of flight equipment held for lease and net investment in direct financing leases) attributable to individual countries representing at least 10% of net book value of flight equipment based on each lessee’s principal place of business as of: June 30, 2019 December 31, 2018 Country Net Book Value Net Book Value % Number of Lessees Net Book Value Net Book Value % Number of Lessees India $ 1,036,803 13% 4 $ 865,046 12% 4 At June 30, 2019 and December 31, 2018 , the amounts of lease incentive liabilities recorded in maintenance payments on our Consolidated Balance Sheets were $12,236 and $15,636 , respectively. |
Net Investment in Finance Lease
Net Investment in Finance Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Net Investment in Finance Leases | Net Investment in Direct Financing and Sales-Type Leases At June 30, 2019 , our net investment in direct financing and sales-type leases consisted of 31 aircraft. The following table lists the components of our net investment in direct financing and sales-type leases at June 30, 2019 : Amount Total lease payments to be received $ 254,058 Less: Unearned income (121,263 ) Estimated residual values of leased flight equipment (unguaranteed) 368,123 Net investment in direct financing and sales-type leases $ 500,918 At June 30, 2019 , minimum future lease payments on direct financing and sales-type leases are as follows: Year Ending December 31, Amount Remainder of 2019 $ 34,860 2020 67,035 2021 52,597 2022 42,100 2023 33,093 Thereafter 24,373 Total lease payments to be received $ 254,058 |
Unconsolidated Equity Method In
Unconsolidated Equity Method Investment (Notes) | 6 Months Ended |
Jun. 30, 2019 | |
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 (“IBJ Air”). At June 30, 2019 , the net book value of both joint ventures’ fifteen aircraft was $678,467 . Amount Investment in joint ventures at December 31, 2018 $ 69,111 Investment in joint ventures 7,551 Earnings from joint ventures, net of tax 2,131 Investment in joint ventures at June 30, 2019 $ 78,793 Per the partnership agreement with Teachers’, the Company has recorded in its Consolidated Balance Sheet a $13,565 guarantee liability in Maintenance payments and a $5,100 guarantee liability in Security deposits representing its share of the respective exposures. As of June 30, 2019 , there is an executed sales agreement between the joint venture with Teachers’ and a single buyer for aircraft held by the joint venture. All sales are anticipated to be completed by the end of 2019. In March of 2019, we sold two aircraft to IBJ Air, in which we hold a 25% equity interest. This transaction was approved by our Audit Committee as an arm’s length transaction under our related party policy. |
Variable Interest Entities
Variable Interest Entities | 6 Months Ended |
Jun. 30, 2019 | |
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 our net investment in direct financing and sales-type leases. 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 June 30, 2019 of $385,698 , 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 June 30, 2019 is $166,442 . |
Secured and Unsecured Debt Fina
Secured and Unsecured Debt Financings | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 At December 31, 2018 Debt Obligation Outstanding Borrowings Number of Aircraft Interest Rate Final Stated Maturity Outstanding Secured Debt Financings: ECA Financings (1) $ 169,350 6 3.02% to 3.96% 12/03/21 to 11/30/24 $ 189,080 Bank Financings (2) 1,059,092 36 3.13% to 5.30% 06/17/23 to 01/19/26 619,715 Less: Debt issuance costs and discounts (14,040 ) — (10,338 ) Total secured debt financings, net of debt issuance costs and discounts 1,214,402 42 798,457 Unsecured Debt Financings: Senior Notes due 2019 (3) 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 5.00% Notes due 2023 500,000 5.00% 04/01/23 500,000 Senior 4.40% Notes due 2023 650,000 4.40% 09/25/23 650,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Senior Notes due 2026 650,000 4.250% 06/15/26 — Unsecured Term Loans 215,000 3.877% 03/07/22 to 03/07/24 120,000 Revolving Credit Facilities — —% 12/27/21 to 06/27/22 425,000 Less: Debt issuance costs and discounts (37,269 ) (32,104 ) Total unsecured debt financings, net of debt issuance costs and discounts 4,277,731 3,962,896 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 5,492,133 $ 4,761,353 (1) The borrowings under these financings at June 30, 2019 have a weighted-average rate of interest of 3.58% . (2) The borrowings under these financings at June 30, 2019 have a weighted-average fixed rate of interest of 4.04% . (3) Repaid on July 15, 2019. Secured Debt Financing: Bank Financings On May 1, 2019, we entered into a full recourse $320,000 secured bank financing with BNP Paribas and Société Générale in relation to eight Airbus A320-200N aircraft on lease with a customer in Asia. This financing bears interest at a fixed rate of 3.61% and matures in September 2024. In addition, on May 1, 2019, we entered into a full recourse $120,000 secured bank financing with Crédit Agricole in relation to three Airbus A320-200N aircraft on lease with a customer in Asia. This financing bears interest at a fixed rate of 3.13% and matures in March 2025. On June 26, 2019, we amended and restated the original loan agreement, dated October 11, 2018, with National Bank of Australia to include an additional $40,000 in financing for two Boeing 737-800 aircraft on lease with a customer in North America. The financing for these two aircraft bears interest at a fixed rate of 3.14% and matures in December 2024. Unsecured Debt Financings: Senior Notes due 2026 On June 13, 2019, Aircastle issued $650,000 aggregate principal amount of Senior Notes due 2026 (the “Senior Notes due 2026”) at an issue price of 99.515% . The Senior Notes due 2026 will mature on June 15, 2026 and bear interest at the rate of 4.250% per annum, payable semi-annually on June 15 and December 15 of each year, commencing on December 15, 2019. Interest accrues on the Senior Notes due 2026 from June 13, 2019. Prior to April 15, 2026, we may redeem all or part of the aggregate principal amount of the Senior Notes due 2026 at any time at a redemption price equal to the greater of (a) 100% of the principal amount of the notes redeemed, plus accrued and unpaid interest thereon to, but not including, the redemption date and (b) the sum of the present values of 100% of the principal amount of the notes redeemed and the remaining scheduled payments of interest on the notes from the redemption date through April 15, 2026 (computed using a discount rate equal to the Treasury Rate (as defined in the indenture governing the Senior Notes due 2026) as of such redemption date plus 0.35% , plus accrued and unpaid interest thereon to, but not including, the redemption date). In addition, on or after April 15, 2026, we may redeem all or part of the aggregate principal amount of the Senior Notes due 2026 at a redemption price equal to 100% , plus accrued and unpaid interest thereon to, but not including, the redemption date. If the Company undergoes a change of control (as defined in the indenture governing the Senior Notes due 2026) and, as a result of the change of control, the rating of the Senior Notes due 2026 is downgraded to below an investment grade rating by certain rating agencies in the manner specified in the indenture governing the Senior Notes due 2026, it must offer to repurchase the Senior Notes due 2026 at a price of 101% of the principal amount thereof, plus accrued and unpaid interest to, but not including, the purchase date. The Senior Notes due 2026 are not guaranteed by any of the Company's subsidiaries or any third-party. The net proceeds from the issuance were used to repay amounts drawn under our existing revolving credit facility and to redeem the balance of our 6.25% Senior Notes due 2019, including accrued interest of $3,733 and call premium of $7,183 , on July 15, 2019. Unsecured Term Loan On February 27, 2019, we entered into an aggregate $215,000 floating rate loan commitment with Development Bank of Japan Inc. and certain other banks (the “Unsecured Term Loan”). This loan is split into two tranches: Tranche A for $60,000 with a three -year term; and Tranche B for $155,000 with a five -year term. The loan contains a $750,000 minimum net worth covenant, along with other customary provisions similar to our revolving credit facilities. This loan was funded in March 2019. The new Unsecured Term Loan replaced our existing term loan of $120,000 that matured on April 28, 2019. Revolving Credit Facility On December 27, 2018, we entered into a $250,000 three -year, unsecured revolving credit facility with a group of banks based in Asia. This new facility can be increased to a maximum of $350,000 . On January 25, 2019, we increased the facility by $30,000 to $280,000 . On June 20, 2019, we further increased the facility by $20,000 to $300,000 . The facility bears interest at a rate of LIBOR plus 1.50% and matures in December 2021. The facility contains provisions similar to our existing credit facility, including a $750,000 minimum net worth covenant. As a condition to this new facility, on January 9, 2019, we terminated our existing $135,000 revolving credit facility with a group of banks based in Asia. At June 30, 2019 , we had no amounts outstanding under our revolving credit facilities and had $1,100,000 available for borrowing. As of June 30, 2019 , we were in compliance with all applicable covenants in our financings. |
Shareholders' Equity and Share
Shareholders' Equity and Share Based Payment | 6 Months Ended |
Jun. 30, 2019 | |
Shareholders’ Equity and Share Based Payment [Abstract] | |
Shareholders’ Equity and Share Based Payment | Shareholders' Equity and Share-Based Payment During the six months ended June 30, 2019 , the Company granted 303,331 restricted common shares and granted 320,944 performance share units (“PSUs”). These awards were made under the Aircastle Limited Amended and Restated 2014 Omnibus Incentive Plan. We repurchased 157,576 shares totaling $2,915 from our employees and directors to settle tax obligations related to share vesting and canceled shares. During the six months ended June 30, 2019 , the Company incurred share-based compensation expense of $2,602 related to restricted common shares and $3,301 related to PSUs. As of June 30, 2019 , there was $7,762 of unrecognized compensation cost related to unvested restricted common share-based payments and $10,270 of unrecognized compensation cost related to unvested PSU share-based payments that are expected to be recognized over a weighted-average remaining period of 1.90 years . On May 21, 2019, our Board of Directors increased the authorization to repurchase the Company’s common shares to $100,000 from the $76,019 that was remaining under the previous authorization. During the six months ended June 30, 2019 , we repurchased 625,744 common shares at an aggregate cost of $11,374 , including commissions. At June 30, 2019 , the remaining dollar value of common shares that may be purchased under the repurchase program is $97,358 . |
Dividends
Dividends | 6 Months Ended |
Jun. 30, 2019 | |
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 April 30, 2019 $ 0.30 $ 22,534 May 31, 2019 June 14, 2019 February 8, 2019 $ 0.30 $ 22,518 February 28, 2019 March 15, 2019 October 30, 2018 $ 0.30 $ 22,867 November 30, 2018 December 14, 2018 August 3, 2018 $ 0.28 $ 21,870 August 31, 2018 September 14, 2018 May 1, 2018 $ 0.28 $ 21,908 May 31, 2018 June 15, 2018 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted-average shares: Common shares outstanding 74,650,357 77,910,513 74,676,926 78,137,290 Restricted common shares 524,331 498,433 479,679 464,983 Total weighted-average shares 75,174,688 78,408,946 75,156,605 78,602,273 Percentage of weighted-average shares: Common shares outstanding 99.30 % 99.36 % 99.36 % 99.41 % Restricted common shares 0.70 % 0.64 % 0.64 % 0.59 % Total percentage of weighted-average shares 100.00 % 100.00 % 100.00 % 100.00 % The calculations of both basic and diluted earnings per share are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Earnings per share – Basic: Net income $ 31,112 $ 50,203 $ 65,922 $ 107,750 Less: Distributed and undistributed earnings allocated to restricted common shares (1) (217 ) (319 ) (421 ) (637 ) Earnings available to common shareholders – Basic $ 30,895 $ 49,884 $ 65,501 $ 107,113 Weighted-average common shares outstanding – Basic 74,650,357 77,910,513 74,676,926 78,137,290 Earnings per common share – Basic $ 0.41 $ 0.64 $ 0.88 $ 1.37 Earnings per share – Diluted: Net income $ 31,112 $ 50,203 $ 65,922 $ 107,750 Less: Distributed and undistributed earnings allocated to restricted common shares (1) (217 ) (319 ) (421 ) (637 ) Earnings available to common shareholders – Diluted $ 30,895 $ 49,884 $ 65,501 $ 107,113 Weighted-average common shares outstanding – Basic 74,650,357 77,910,513 74,676,926 78,137,290 Effect of dilutive shares (2) 791,189 337,716 680,507 282,868 Weighted-average common shares outstanding – Diluted 75,441,546 78,248,229 75,357,433 78,420,158 Earnings per common share – Diluted $ 0.41 $ 0.64 $ 0.87 $ 1.37 (1) For the three months ended June 30, 2019 and 2018 , distributed and undistributed earnings to restricted shares were 0.70% and 0.64% , respectively, of net income. For the six months ended June 30, 2019 and 2018 , distributed and undistributed earnings to restricted shares were 0.64% and 0.59% , respectively, of net income. The amount of restricted share forfeitures for all periods presented are immaterial to the allocation of distributed and undistributed earnings. (2) For all periods presented, dilutive shares represented contingently issuable shares. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
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 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 and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 U.S. operations $ 1,959 $ 788 $ 3,875 $ 1,471 Non-U.S. operations 32,658 50,666 69,006 104,904 Income from continuing operations before income taxes and earnings of unconsolidated equity method investments $ 34,617 $ 51,454 $ 72,881 $ 106,375 Our aircraft-owning subsidiaries that are recognized as corporations for U.S. tax purposes are primarily non-U.S. corporations. These subsidiaries generally earn income from sources outside the United States and typically are not subject to U.S. federal, state or local income taxes. The aircraft owning subsidiaries resident in Ireland, Mauritius and the U.S. are subject to tax in those respective jurisdictions. We have a U.S. based subsidiary which provides management services to our 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 and six months ended June 30, 2019 and 2018 was determined based upon estimates of the Company’s consolidated effective income tax rates for the years ending December 31, 2019 and 2018, respectively. The Company’s effective tax rate (“ETR”) for the three and six months ended June 30, 2019 was 17.3% and 12.5% , respectively, compared to 6.1% and 2.2% , respectively, for the three and six months ended June 30, 2018 . The second quarter of 2019 included a non-cash tax expense of $2,845 related to a fair value adjustment on an intercompany asset transfer, which was treated as a discrete item. The first quarter of 2018 included a $2,779 tax benefit related to the Singapore rate reduction from 10% to 8% , which was treated as a discrete item. Excluding these discrete items, the ETR for the three and six months ended June 30, 2019 would have been 9.1% and 8.6% , respectively, compared to 6.1% and 4.8% , respectively, for the three and six months ended June 30, 2018 . 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. During the three and six months ended June 30, 2019 , we reported a significant decrease in Bermuda income primarily relating to Avianca Brazil and an increase in Ireland income primarily related to Jet Airways. 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Notional U.S. federal income tax expense at the statutory rate $ 7,270 $ 10,806 $ 15,305 $ 22,339 U.S. state and local income tax, net 181 55 390 103 Non-U.S. operations: Bermuda (2,910 ) (6,112 ) (8,048 ) (14,395 ) Ireland 2,093 (811 ) 2,602 (1,128 ) Singapore (2 ) — (4 ) (2,824 ) Other low tax jurisdictions (872 ) (835 ) (1,724 ) (1,643 ) Non-deductible expenses in the U.S. 232 29 569 (164 ) Income tax provision $ 5,992 $ 3,132 $ 9,090 $ 2,288 |
Interest, Net
Interest, Net | 6 Months Ended |
Jun. 30, 2019 | |
Interest Income (Expense), Net [Abstract] | |
Interest Net | Interest, Net The following table shows the components of interest, net: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest on borrowings and other liabilities $ 63,639 $ 53,979 $ 123,918 $ 107,957 Amortization of deferred losses related to interest rate derivatives — 294 184 595 Amortization of deferred financing fees and debt discount 3,594 3,510 6,958 7,042 Interest expense 67,233 57,783 131,060 115,594 Less: Interest income (856 ) (287 ) (1,220 ) (990 ) Less: Capitalized interest — (98 ) — (98 ) Interest, net $ 66,377 $ 57,398 $ 129,840 $ 114,506 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Rent expense, primarily for the corporate offices and sales and marketing facilities, was $414 and $563 for the three months ended and $770 and $1,130 for the six months ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 , Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending December 31, Amount Remainder of 2019 $ 1,321 2020 1,872 2021 1,903 2022 1,813 2023 1,699 Thereafter 7,847 Total $ 16,455 At June 30, 2019 , we had commitments to acquire 32 aircraft for $1,158,069 , including 25 Embraer E-Jet E2 aircraft. Commitments, including $133,955 of remaining progress payments, contractual price escalations and other adjustments for these aircraft, at June 30, 2019 , net of amounts already paid, are as follows: Year Ending December 31, Amount Remainder of 2019 $ 220,969 2020 142,588 2021 728,830 2022 65,682 2023 — Thereafter — Total $ 1,158,069 As of August 2, 2019 , we had commitments to acquire 39 aircraft for $1,331,994 . |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, December 31, Deferred income tax asset $ 1,216 $ 912 Lease incentives and lease premiums, net of amortization of $63,070 and $47,304, respectively 100,743 99,079 Flight equipment held for sale 16,817 11,707 Aircraft purchase deposits and progress payments (1) 19,050 39,948 Fair value of interest rate cap 891 4,886 Note receivable (2) 1,906 4,292 Right-of-use asset (3) 9,143 — Other assets 35,936 53,537 Total other assets $ 185,702 $ 214,361 ______________ (1) Includes progress payments for Embraer E2 aircraft order. (2) Related to the sale of aircraft during the year ended December 31, 2017. (3) Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Expen
Accounts Payable, Accrued Expenses and Other Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, December 31, Accounts payable, accrued expenses and other liabilities $ 46,886 $ 57,220 Deferred income tax liability 53,271 43,720 Accrued interest payable 47,472 45,277 Lease liability 12,665 — Lease discounts, net of amortization of $43,123 and $43,935, respectively 4,291 7,124 Total accounts payable, accrued expenses and other liabilities $ 164,585 $ 153,341 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2018 . |
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 In June 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments and related updates. The standard affects entities holding financial assets and net investments 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 replaces today’s incurred loss model with an expected loss model that requires entities to consider a broader range of information to estimate expected credit losses over the lifetime of the asset. Under the new standard, an allowance for credit losses is recorded which represents amounts not expected to be collected. 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. Upon the Company’s adoption of the standard, the primary impact will be to the carrying value of our net investment in direct financing and sales-type leases, as we will recognize an allowance for credit losses in 2020 with an adjustment to the opening balance of retained earnings. We continue to evaluate the impact the standard will have on our consolidated financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement . The standard modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We are in the process of determining the impact the standard will have on our related disclosures. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. The standard requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use-software guidance in ASC 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. We are in the process of determining the impact the standard will have on our consolidated financial statements and related disclosures. In October 2018, the FASB issued ASU No. 2018-17, Consolidation (Topic 810), Targeted Improvements to Related Party Guidance for Variable Interest Entities . The standard changes how all entities evaluate decision-making fees under the variable interest entity guidance. The standard is applied retrospectively with a cumulative-effect adjustment to retained earnings at the beginning of the earliest period presented. The standard is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. 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) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value assets and liabilities measured on recurring basis | The following tables set forth our financial assets as of June 30, 2019 and December 31, 2018 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 June 30, 2019 Using Fair Value Hierarchy Fair Value as of June 30, 2019 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 $ 500,373 $ 500,373 $ — $ — Market Restricted cash and cash equivalents 14,751 14,751 — — Market Derivative assets 891 — 891 — Market Total $ 516,015 $ 515,124 $ 891 $ — Fair Value Measurements at December 31, 2018 Using Fair Value Hierarchy Fair Value as of December 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 $ 152,719 $ 152,719 $ — $ — Market Restricted cash and cash equivalents 15,134 15,134 — — Market Derivative assets 4,886 — 4,886 — Market Total $ 172,739 $ 167,853 $ 4,886 $ — |
Carrying amounts and fair values of financial instruments | The carrying amounts and fair values of our financial instruments at June 30, 2019 and December 31, 2018 were as follows: June 30, 2019 December 31, 2018 Carrying Amount of Liability Fair Value of Liability Carrying Amount of Liability Fair Value of Liability Credit Facilities $ — $ — $ 425,000 $ 425,000 Unsecured Term Loan 215,000 215,000 120,000 120,000 ECA Financings 169,350 173,084 189,080 190,216 Bank Financings 1,059,092 1,075,035 619,715 623,604 Senior Notes 4,100,000 4,240,850 3,450,000 3,446,826 |
Lease Rental Revenues and Fli_2
Lease Rental Revenues and Flight Equipment Held for Lease (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 were as follows: Year Ending December 31, Amount Remainder of 2019 $ 397,081 2020 716,774 2021 607,140 2022 518,834 2023 442,869 Thereafter 720,650 Total $ 3,403,348 As of June 30, 2019 , Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending December 31, Amount Remainder of 2019 $ 1,321 2020 1,872 2021 1,903 2022 1,813 2023 1,699 Thereafter 7,847 Total $ 16,455 |
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 June 30, Six Months Ended June 30, Region 2019 2018 2019 2018 Asia and Pacific 44 % 35 % 43 % 35 % Europe 28 % 29 % 28 % 29 % Middle East and Africa 10 % 11 % 11 % 11 % North America 8 % 8 % 8 % 8 % South America 10 % 17 % 10 % 17 % Total 100 % 100 % 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% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 3 21% 3 19% 3 21% 3 19% |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | The following table shows the number of lessees with lease rental revenue of at least 5% of total lease rental revenue and their combined total percentage of lease rental revenue for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Rental Revenue Number of Lessees Combined % of Lease Largest lessees by lease rental revenue 3 21% 3 19% 3 21% 3 19% The following table sets forth revenue attributable to individual countries representing at least 10% of total revenue (including maintenance revenue) based on each lessee’s principal place of business for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Country Revenue % of Total Revenue Revenue % of Total Revenue Revenue % of Total Revenue Revenue % of Total Revenue India (1) $ 42,312 19% $ — —% $ 61,638 14% $ — —% _______________ (1) For the three and six months ended June 30, 2019 , total revenue attributable to India included maintenance revenue of $17,554 . For the three and six months ended June 30, 2018 , total revenue attributable to India was less than 10%. |
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 direct financing and sales-type leases, or “net book value”) was as follows: June 30, 2019 December 31, 2018 Region Number of Aircraft Net Book Value % Number of Aircraft Net Book Value % Asia and Pacific 91 38 % 78 36 % Europe 95 27 % 87 27 % Middle East and Africa 17 8 % 17 8 % North America 37 11 % 35 10 % South America 23 13 % 16 10 % Off-lease 5 (1) 3 % 15 (2) 9 % Total 268 100 % 248 100 % _______________ (1) |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country [Table Text Block] | The following table sets forth net book value of flight equipment (includes net book value of flight equipment held for lease and net investment in direct financing leases) attributable to individual countries representing at least 10% of net book value of flight equipment based on each lessee’s principal place of business as of: June 30, 2019 December 31, 2018 Country Net Book Value Net Book Value % Number of Lessees Net Book Value Net Book Value % Number of Lessees India $ 1,036,803 13% 4 $ 865,046 12% 4 |
Net Investment in Finance Lea_2
Net Investment in Finance Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule Of Components Of Investment In Finance Leases | The following table lists the components of our net investment in direct financing and sales-type leases at June 30, 2019 : Amount Total lease payments to be received $ 254,058 Less: Unearned income (121,263 ) Estimated residual values of leased flight equipment (unguaranteed) 368,123 Net investment in direct financing and sales-type leases $ 500,918 |
Schedule of Future Minimum Lease Payments for Capital Leases | At June 30, 2019 , minimum future lease payments on direct financing and sales-type leases are as follows: Year Ending December 31, Amount Remainder of 2019 $ 34,860 2020 67,035 2021 52,597 2022 42,100 2023 33,093 Thereafter 24,373 Total lease payments to be received $ 254,058 |
Unconsolidated Equity Method _2
Unconsolidated Equity Method Investment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | At June 30, 2019 , the net book value of both joint ventures’ fifteen aircraft was $678,467 . Amount Investment in joint ventures at December 31, 2018 $ 69,111 Investment in joint ventures 7,551 Earnings from joint ventures, net of tax 2,131 Investment in joint ventures at June 30, 2019 $ 78,793 Per the partnership agreement with Teachers’, the Company has recorded in its Consolidated Balance Sheet a $13,565 guarantee liability in Maintenance payments and a $5,100 guarantee liability in Security deposits representing its share of the respective exposures. As of June 30, 2019 , there is an executed sales agreement between the joint venture with Teachers’ and a single buyer for aircraft held by the joint venture. All sales are anticipated to be completed by the end of 2019. In March of 2019, we sold two aircraft to IBJ Air, in which we hold a 25% equity interest. This transaction was approved by our Audit Committee as an arm’s length transaction under our related party policy. |
Secured and Unsecured Debt Fi_2
Secured and Unsecured Debt Financings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 At December 31, 2018 Debt Obligation Outstanding Borrowings Number of Aircraft Interest Rate Final Stated Maturity Outstanding Secured Debt Financings: ECA Financings (1) $ 169,350 6 3.02% to 3.96% 12/03/21 to 11/30/24 $ 189,080 Bank Financings (2) 1,059,092 36 3.13% to 5.30% 06/17/23 to 01/19/26 619,715 Less: Debt issuance costs and discounts (14,040 ) — (10,338 ) Total secured debt financings, net of debt issuance costs and discounts 1,214,402 42 798,457 Unsecured Debt Financings: Senior Notes due 2019 (3) 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 5.00% Notes due 2023 500,000 5.00% 04/01/23 500,000 Senior 4.40% Notes due 2023 650,000 4.40% 09/25/23 650,000 Senior Notes due 2024 500,000 4.125% 05/01/24 500,000 Senior Notes due 2026 650,000 4.250% 06/15/26 — Unsecured Term Loans 215,000 3.877% 03/07/22 to 03/07/24 120,000 Revolving Credit Facilities — —% 12/27/21 to 06/27/22 425,000 Less: Debt issuance costs and discounts (37,269 ) (32,104 ) Total unsecured debt financings, net of debt issuance costs and discounts 4,277,731 3,962,896 Total secured and unsecured debt financings, net of debt issuance costs and discounts $ 5,492,133 $ 4,761,353 (1) The borrowings under these financings at June 30, 2019 have a weighted-average rate of interest of 3.58% . (2) The borrowings under these financings at June 30, 2019 have a weighted-average fixed rate of interest of 4.04% . |
Dividends (Tables)
Dividends (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 April 30, 2019 $ 0.30 $ 22,534 May 31, 2019 June 14, 2019 February 8, 2019 $ 0.30 $ 22,518 February 28, 2019 March 15, 2019 October 30, 2018 $ 0.30 $ 22,867 November 30, 2018 December 14, 2018 August 3, 2018 $ 0.28 $ 21,870 August 31, 2018 September 14, 2018 May 1, 2018 $ 0.28 $ 21,908 May 31, 2018 June 15, 2018 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Weighted-average shares: Common shares outstanding 74,650,357 77,910,513 74,676,926 78,137,290 Restricted common shares 524,331 498,433 479,679 464,983 Total weighted-average shares 75,174,688 78,408,946 75,156,605 78,602,273 Percentage of weighted-average shares: Common shares outstanding 99.30 % 99.36 % 99.36 % 99.41 % Restricted common shares 0.70 % 0.64 % 0.64 % 0.59 % Total percentage of weighted-average shares 100.00 % 100.00 % 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Earnings per share – Basic: Net income $ 31,112 $ 50,203 $ 65,922 $ 107,750 Less: Distributed and undistributed earnings allocated to restricted common shares (1) (217 ) (319 ) (421 ) (637 ) Earnings available to common shareholders – Basic $ 30,895 $ 49,884 $ 65,501 $ 107,113 Weighted-average common shares outstanding – Basic 74,650,357 77,910,513 74,676,926 78,137,290 Earnings per common share – Basic $ 0.41 $ 0.64 $ 0.88 $ 1.37 Earnings per share – Diluted: Net income $ 31,112 $ 50,203 $ 65,922 $ 107,750 Less: Distributed and undistributed earnings allocated to restricted common shares (1) (217 ) (319 ) (421 ) (637 ) Earnings available to common shareholders – Diluted $ 30,895 $ 49,884 $ 65,501 $ 107,113 Weighted-average common shares outstanding – Basic 74,650,357 77,910,513 74,676,926 78,137,290 Effect of dilutive shares (2) 791,189 337,716 680,507 282,868 Weighted-average common shares outstanding – Diluted 75,441,546 78,248,229 75,357,433 78,420,158 Earnings per common share – Diluted $ 0.41 $ 0.64 $ 0.87 $ 1.37 (1) For the three months ended June 30, 2019 and 2018 , distributed and undistributed earnings to restricted shares were 0.70% and 0.64% , respectively, of net income. For the six months ended June 30, 2019 and 2018 , distributed and undistributed earnings to restricted shares were 0.64% and 0.59% , respectively, of net income. The amount of restricted share forfeitures for all periods presented are immaterial to the allocation of distributed and undistributed earnings. (2) For all periods presented, dilutive shares represented contingently issuable shares. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 U.S. operations $ 1,959 $ 788 $ 3,875 $ 1,471 Non-U.S. operations 32,658 50,666 69,006 104,904 Income from continuing operations before income taxes and earnings of unconsolidated equity method investments $ 34,617 $ 51,454 $ 72,881 $ 106,375 |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 Notional U.S. federal income tax expense at the statutory rate $ 7,270 $ 10,806 $ 15,305 $ 22,339 U.S. state and local income tax, net 181 55 390 103 Non-U.S. operations: Bermuda (2,910 ) (6,112 ) (8,048 ) (14,395 ) Ireland 2,093 (811 ) 2,602 (1,128 ) Singapore (2 ) — (4 ) (2,824 ) Other low tax jurisdictions (872 ) (835 ) (1,724 ) (1,643 ) Non-deductible expenses in the U.S. 232 29 569 (164 ) Income tax provision $ 5,992 $ 3,132 $ 9,090 $ 2,288 |
Interest, Net (Tables)
Interest, Net (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Interest Income (Expense), Net [Abstract] | |
Components of Interest | The following table shows the components of interest, net: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Interest on borrowings and other liabilities $ 63,639 $ 53,979 $ 123,918 $ 107,957 Amortization of deferred losses related to interest rate derivatives — 294 184 595 Amortization of deferred financing fees and debt discount 3,594 3,510 6,958 7,042 Interest expense 67,233 57,783 131,060 115,594 Less: Interest income (856 ) (287 ) (1,220 ) (990 ) Less: Capitalized interest — (98 ) — (98 ) Interest, net $ 66,377 $ 57,398 $ 129,840 $ 114,506 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of obligations uner non-cancelable operating leases | Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at June 30, 2019 were as follows: Year Ending December 31, Amount Remainder of 2019 $ 397,081 2020 716,774 2021 607,140 2022 518,834 2023 442,869 Thereafter 720,650 Total $ 3,403,348 As of June 30, 2019 , Aircastle is obligated under non-cancelable operating leases relating principally to office facilities in Stamford, Connecticut; Dublin, Ireland; and Singapore for future minimum lease payments as follows: Year Ending December 31, Amount Remainder of 2019 $ 1,321 2020 1,872 2021 1,903 2022 1,813 2023 1,699 Thereafter 7,847 Total $ 16,455 |
Long-term Purchase Commitment | At June 30, 2019 , we had commitments to acquire 32 aircraft for $1,158,069 , including 25 Embraer E-Jet E2 aircraft. Commitments, including $133,955 of remaining progress payments, contractual price escalations and other adjustments for these aircraft, at June 30, 2019 |
Other Assets (Tables)
Other Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, December 31, Deferred income tax asset $ 1,216 $ 912 Lease incentives and lease premiums, net of amortization of $63,070 and $47,304, respectively 100,743 99,079 Flight equipment held for sale 16,817 11,707 Aircraft purchase deposits and progress payments (1) 19,050 39,948 Fair value of interest rate cap 891 4,886 Note receivable (2) 1,906 4,292 Right-of-use asset (3) 9,143 — Other assets 35,936 53,537 Total other assets $ 185,702 $ 214,361 ______________ (1) Includes progress payments for Embraer E2 aircraft order. (2) Related to the sale of aircraft during the year ended December 31, 2017. (3) Net of lease incentives and tenant allowances. |
Accounts Payable, Accrued Exp_2
Accounts Payable, Accrued Expenses and Other Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, December 31, Accounts payable, accrued expenses and other liabilities $ 46,886 $ 57,220 Deferred income tax liability 53,271 43,720 Accrued interest payable 47,472 45,277 Lease liability 12,665 — Lease discounts, net of amortization of $43,123 and $43,935, respectively 4,291 7,124 Total accounts payable, accrued expenses and other liabilities $ 164,585 $ 153,341 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Entitysegment | Jun. 30, 2018USD ($) | |
Variable Interest Entity [Line Items] | ||||
Proceeds from Collection of Finance Receivables | $ 10,971 | $ 13,127 | ||
Number of Operating Segments | segment | 1 | |||
Gain on sale of flight equipment | $ 346 | $ 19,864 | $ 12,348 | 25,632 |
Revenues | $ 223,416 | $ 204,276 | 437,343 | 406,956 |
Net Cash and Restricted Cash Provided by (Used in) Operating Activities | $ 245,612 | $ 252,970 | ||
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Assets: | ||
Cash and cash equivalents | $ 500,373 | $ 152,719 |
Restricted cash and cash equivalents | 14,751 | 15,134 |
Derivative Asset | 0 | 0 |
Total | 515,124 | 167,853 |
Significant Other Observable Inputs (Level 2) | ||
Assets: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash and cash equivalents | 0 | 0 |
Derivative Asset | 891 | 4,886 |
Total | 891 | 4,886 |
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 | 500,373 | 152,719 |
Restricted cash and cash equivalents | 14,751 | 15,134 |
Derivative Asset | 891 | 4,886 |
Total | $ 516,015 | $ 172,739 |
Fair Value Measurements (Deta_2
Fair Value Measurements (Details 2) - Unsecured Debt - Reported Value Measurement - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Inputs, Level 2 [Member] | Revolving Credit Facility | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 0 | $ 425,000 |
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 | $ 215,000 | $ 120,000 |
Fair Value Measurements (Deta_3
Fair Value Measurements (Details 3) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | ECA Term Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | $ 173,084 | $ 190,216 |
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 | 1,075,035 | 623,604 |
Secured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | ECA Term Financings | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 169,350 | 189,080 |
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 | 1,059,092 | 619,715 |
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Estimate of Fair Value Measurement [Member] | Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 425,000 |
Unsecured Debt | Significant Other Observable Inputs (Level 2) | Reported Value Measurement | Revolving Credit Facility | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Debt Instrument, Fair Value Disclosure | 0 | 425,000 |
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 | 215,000 | 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 | 4,240,850 | 3,446,826 |
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 | 215,000 | 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 | $ 4,100,000 | $ 3,450,000 |
Fair Value Measurements (Deta_4
Fair Value Measurements (Details Textual) $ in Thousands | Apr. 10, 2019USD ($)Aircraft | Jun. 30, 2019USD ($) | Mar. 31, 2019Aircraft | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) |
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 | |||||
Number of Aircraft Impaired | Aircraft | 0 | |||||
Jet Airways | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Aircraft Leases Terminated | Aircraft | 7 | |||||
Tangible Asset Impairment Charges | $ 7,404 | |||||
Maintenance revenue | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 26,567 | $ 0 | $ 42,968 | $ 11,991 | ||
Maintenance revenue | Jet Airways | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 17,554 |
Lease Rental Revenues and Fli_3
Lease Rental Revenues and Flight Equipment Held for Lease (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Annual future minimum lease rentals receivable | |
Remainder of 2019 | $ 397,081 |
2020 | 716,774 |
2021 | 607,140 |
2022 | 518,834 |
2023 | 442,869 |
Thereafter | 720,650 |
Total | $ 3,403,348 |
Lease Rental Revenues and Fli_4
Lease Rental Revenues and Flight Equipment Held for Lease (Details 1) - Lease Rental Revenue - Geographic Concentration Risk | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 100.00% | 100.00% | 100.00% | 100.00% |
Asia and Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 28.00% | 29.00% | 28.00% | 29.00% |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 44.00% | 35.00% | 43.00% | 35.00% |
Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 8.00% | 8.00% | 8.00% | 8.00% |
North America | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 10.00% | 17.00% | 10.00% | 17.00% |
Middle East and Africa | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Percentage of geographic concentration | 10.00% | 11.00% | 11.00% | 11.00% |
Lease Rental Revenues and Fli_5
Lease Rental Revenues and Flight Equipment Held for Lease (Details 2) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)Lessee | Jun. 30, 2018USD ($)Lessee | Jun. 30, 2019USD ($)Lessee | Jun. 30, 2018USD ($)Lessee | |
Revenue attributable to individual countries | ||||
Revenue | $ 192,823 | $ 178,486 | $ 374,057 | $ 355,969 |
INDIA | ||||
Revenue attributable to individual countries | ||||
Revenue | $ 42,312 | $ 0 | $ 61,638 | $ 0 |
Geographic Concentration Risk | Total Revenue [Member] | INDIA | ||||
Revenue attributable to individual countries | ||||
Percentage of geographic concentration | 19.00% | 0.00% | 14.00% | 0.00% |
Geographic Concentration Risk | Total Revenue [Member] | ||||
Revenue attributable to individual countries | ||||
Percentage of geographic concentration | 100.00% | 100.00% | 100.00% | 100.00% |
Major Customer Group One [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Concentration Risk, Number of Customers in Major Customer Group | Lessee | 3 | 3 | 3 | 3 |
Major Customer Group One [Member] | Geographic Concentration Risk | Total Revenue [Member] | ||||
Revenue attributable to individual countries | ||||
Percentage of geographic concentration | 21.00% | 19.00% | 21.00% | 19.00% |
Lease Rental Revenues and Fli_6
Lease Rental Revenues and Flight Equipment Held for Lease (Details 3) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)Aircraft | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Aircraft | Jun. 30, 2018USD ($) | Dec. 31, 2018Aircraft | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ | $ 192,823 | $ 178,486 | $ 374,057 | $ 355,969 | |
Number of Aircraft | 268 | 268 | 248 | ||
Number of Offlease Aircraft Marketed for Lease or Sale | 15 | ||||
Number of Offlease Aircraft Marketed for Lease | 5 | 5 | |||
A-320-200 [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of Offlease Aircraft Marketed for Lease | 3 | ||||
Offlease Aircraft with Future Lease Commitments | 3 | 3 | 7 | ||
Number of Offlease Aircraft Sold | 1 | ||||
A-330-200 [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of Offlease Aircraft Marketed for Lease | 1 | 1 | 1 | ||
Offlease Aircraft with Future Lease Commitments | 1 | 1 | |||
B-737-800 [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Offlease Aircraft with Future Lease Commitments | 1 | ||||
B-777-300 [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Offlease Aircraft with Future Lease Commitments | 1 | ||||
Asia and Pacific | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of Aircraft | 95 | 95 | 87 | ||
Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of Aircraft | 91 | 91 | 78 | ||
Middle East and Africa | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of Aircraft | 37 | 37 | 35 | ||
North America | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of Aircraft | 23 | 23 | 16 | ||
Middle East and Africa | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of Aircraft | 17 | 17 | 17 | ||
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 | 27.00% | 27.00% | |||
Geographic Concentration Risk | Net Book Value | Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of geographic concentration | 38.00% | 36.00% | |||
Geographic Concentration Risk | Net Book Value | Middle East and Africa | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of geographic concentration | 11.00% | 10.00% | |||
Geographic Concentration Risk | Net Book Value | North America | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of geographic concentration | 13.00% | 10.00% | |||
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% | 8.00% | |||
Geographic Concentration Risk | Net Book Value | Off Lease | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of geographic concentration | 3.00% | 9.00% |
Lease Rental Revenues and Fli_7
Lease Rental Revenues and Flight Equipment Held for Lease (Details 4) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)Aircraft | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)AircraftLessee | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)AircraftLessee | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | $ 192,823 | $ 178,486 | $ 374,057 | $ 355,969 | |
Property Subject to or Available for Operating Lease, Net | $ 7,341,097 | $ 7,341,097 | $ 6,935,585 | ||
Number of Offlease Aircraft Marketed for Lease | Aircraft | 5 | 5 | |||
INDIA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 17,554 | ||||
Revenue | $ 42,312 | $ 0 | 61,638 | $ 0 | |
Property Subject to or Available for Operating Lease, Net | $ 1,036,803 | $ 1,036,803 | $ 865,046 | ||
property subject to or available for operating lease, net (percentage) | 13.00% | 12.00% | |||
number of lessees | Lessee | 4,000 | 4 | |||
Geographic Concentration Risk | Total Revenue [Member] | INDIA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of geographic concentration | 19.00% | 0.00% | 14.00% | 0.00% | |
Geographic Concentration Risk | Net Book Value | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Percentage of geographic concentration | 100.00% | 100.00% | |||
A-320-200 [Member] | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of Offlease Aircraft Marketed for Lease | Aircraft | 3 |
Lease Rental Revenues and Fli_8
Lease Rental Revenues and Flight Equipment Held for Lease (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Lease Rental Revenue | Customer Concentration Risk | Customer Group One | |||||
Revenue, Major Customer [Line Items] | |||||
Percentage of geographic concentration | 21.00% | 19.00% | 21.00% | 19.00% | |
Maintenance Payments {Member] | |||||
Revenue, Major Customer [Line Items] | |||||
Amounts of lease incentive liabilities recorded in the consolidated balance sheets | $ 12,236 | $ 12,236 | $ 15,636 |
Net Investment in Finance Lea_3
Net Investment in Finance Leases Narrative (Details) | Jun. 30, 2019Aircraft |
Capital Leased Assets [Line Items] | |
Capital Leased Assets, Number of Units | 31 |
Net Investment in Finance Lea_4
Net Investment in Finance Leases Net Investment in Finance Leases (Details) $ in Thousands | Jun. 30, 2019USD ($)Aircraft | Dec. 31, 2018USD ($) |
Capital Leased Assets, Number of Units | Aircraft | 31 | |
Capital Leases, Net Investment in Direct Financing Leases [Abstract] | ||
Total lease payments to be received | $ 254,058 | |
Less: Unearned income | (121,263) | |
Estimated residual values of leased flight equipment (unguaranteed) | 368,123 | |
Net investment in direct financing and sales-type leases | 500,918 | $ 469,180 |
Receivable in Remainder of Fiscal Year | 34,860 | |
Receivable in Year Two | 67,035 | |
Receivable in Year Three | 52,597 | |
Receivable in Year Four | 42,100 | |
Receivable in Year Five | 33,093 | |
Thereafter | 24,373 | |
Total | $ 254,058 |
Unconsolidated Equity Method _3
Unconsolidated Equity Method Investment (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)Aircraft | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Aircraft | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Unconsolidated equity method investments | $ 78,793 | $ 78,793 | $ 69,111 | ||
Equity Method Investments Before Earnings | 7,551 | ||||
Earnings of unconsolidated equity method investments, net of tax | $ 2,487 | $ 1,881 | $ 2,131 | $ 3,663 | |
Total number of aircraft owned by joint ventures | Aircraft | 15 | 15 | |||
Property Subject to or Available for Operating Lease, Net | $ 7,341,097 | $ 7,341,097 | 6,935,585 | ||
Customer Advances and Deposits | 734,433 | 734,433 | $ 739,072 | ||
Equity Method Investee | |||||
Property Subject to or Available for Operating Lease, Net | $ 678,467 | $ 678,467 | |||
Equity Method Investee | IBJ Air [Member] | |||||
Equity Method Investment, Ownership Percentage | 25.00% | 25.00% | |||
Maintenance Payments {Member] | Equity Method Investee | |||||
Customer Advances and Deposits | $ 13,565 | $ 13,565 | |||
security deposit [Member] | Equity Method Investee | |||||
Customer Advances and Deposits | $ 5,100 | $ 5,100 | |||
A-320-200 [Member] | Equity Method Investee | IBJ Air [Member] | |||||
Number of Aircraft Sold | Aircraft | 2,000 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - Variable Interest Entity, Primary Beneficiary $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($)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 | |
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 | $ 385,698 |
Consolidated debt outstanding | $ 166,442 |
Secured and Unsecured Debt Fi_3
Secured and Unsecured Debt Financings (Details) $ in Thousands | 3 Months Ended | |||||
Jun. 30, 2019USD ($)Aircraft | Mar. 31, 2019USD ($) | Jul. 15, 2019USD ($) | Jun. 26, 2019USD ($)Aircraft | May 01, 2019USD ($)Aircraft | Dec. 31, 2018USD ($) | |
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from secured financings | $ 1,214,402 | $ 798,457 | ||||
Number of Aircraft Financed | Aircraft | 42 | |||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 4,277,731 | 3,962,896 | ||||
Total secured and unsecured debt financings | $ 5,492,133 | 4,761,353 | ||||
Present Value of Redemption Price | 100.00% | |||||
Line of Credit | Revolving Credit Facility | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | 425,000 | |||||
2018 DBS Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Increase (Decrease), Net | $ 20,000 | $ 30,000 | ||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 300,000 | $ 280,000 | 250,000 | |||
ECA Term Financings | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Number of Aircraft Financed | Aircraft | 6 | |||||
ECA Term Financings | Notes Payable, Other Payables | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 3.58% | |||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from secured financings | $ 169,350 | 189,080 | ||||
ECA Term Financings | Minimum | Notes Payable, Other Payables | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 3.0153% | |||||
ECA Term Financings | Maximum | Notes Payable, Other Payables | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 3.96% | |||||
Bank Financings | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Number of Aircraft Financed | Aircraft | 36 | |||||
Bank Financings | Notes Payable, Other Payables | ||||||
Debt Instrument [Line Items] | ||||||
Debt, Weighted Average Interest Rate | 4.04% | |||||
Bank Financings | Notes Payable to Banks | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from secured financings | $ 1,059,092 | 619,715 | ||||
Bank Financings | Minimum | Notes Payable to Banks | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 3.13% | |||||
Bank Financings | Maximum | Notes Payable to Banks | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 5.30% | |||||
2019 BNP-SG Secured Debt Financing [Member] | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Instrument, Face Amount | $ 320,000 | |||||
2013 Revolving Credit Facility | Line of Credit | Revolving Credit Facility | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |||||
Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Issuance Cost | (14,040) | (10,338) | ||||
Senior Notes Due 2019 [Member] | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 500,000 | 500,000 | ||||
Interest rate | 6.25% | |||||
Senior Notes Due 2019 [Member] | Senior Notes due 2019 with 6.25% Interest Rate [Domain] | Senior Notes Due 2019 [Member] | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
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 and discounts | $ 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 and discounts | $ 500,000 | 500,000 | ||||
Interest rate | 5.125% | |||||
Senior Notes Due 2022 | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 500,000 | 500,000 | ||||
Interest rate | 5.50% | |||||
Senior Notes Due 2023 | 5.00 | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 500,000 | 500,000 | ||||
Interest rate | 5.00% | |||||
Senior Notes Due 2023 | 4.40% | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 650,000 | 650,000 | ||||
Interest rate | 4.40% | |||||
Senior Notes Due 2024 | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 500,000 | 500,000 | ||||
Interest rate | 4.125% | |||||
Floating Rate Term Loan | Notes Payable to Banks | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 3.877% | |||||
Floating Rate Term Loan | Floating Rate Term Loan | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 215,000 | 120,000 | ||||
Floating Rate Term Loan | Minimum | Notes Payable to Banks | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 3.877% | |||||
Floating Rate Term Loan | Maximum | Notes Payable to Banks | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 3.877% | |||||
Revolving Credit Facility | Line of Credit | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 0.00% | |||||
Unsecured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Issuance Cost | $ (37,269) | (32,104) | ||||
Senior Notes Due 2026 [Member] | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 650,000 | $ 0 | ||||
Senior Notes Due 2026 [Member] | 4.25% [Member] | Senior Notes | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 4.25% | |||||
2019 NAB Secured Debt Financing [Member] | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Interest rate | 3.14% | |||||
Debt Instrument, Face Amount | $ 40,000 | |||||
2019 Credit AG Secured Debt Financing [Member] | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Instrument, Face Amount | $ 120,000 | |||||
Senior 4.25% Notes due 2026 [Member] | 4.25% [Member] | Senior 4.25% Notes due 2026 [Member] | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 650,000 | |||||
Interest rate | 4.25% | |||||
Debt issue price percent | 99.515% | |||||
A-320-Neo [Member] | 2019 BNP-SG Secured Debt Financing [Member] | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Total Number of Aircraft Securing Financing | Aircraft | 8,000 | |||||
A-320-Neo [Member] | 2019 Credit AG Secured Debt Financing [Member] | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Total Number of Aircraft Securing Financing | Aircraft | 3,000 | |||||
B-737-800 [Member] | 2019 NAB Secured Debt Financing [Member] | Secured Debt | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Total Number of Aircraft Securing Financing | Aircraft | 2 | |||||
Debt Instrument, Redemption, Period One [Member] | Senior 4.25% Notes due 2026 [Member] | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||
Debt Instrument, Redemption, Period One [Member] | Senior 4.25% Notes due 2026 [Member] | 4.25% [Member] | Senior 4.25% Notes due 2026 [Member] | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.35% | |||||
Debt Instrument, Redemption, Period Two [Member] | Senior 4.25% Notes due 2026 [Member] | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Instrument, Redemption Price, Percentage | 101.00% | |||||
Subsequent Event | Senior Notes Due 2019 [Member] | Senior Notes Due 2019 [Member] | ||||||
Outstanding amounts of secured and unsecured term debt financings | ||||||
Debt Instrument, Unamortized Premium | $ 7,183 |
Secured and Unsecured Debt Fi_4
Secured and Unsecured Debt Financings (Details 1) $ in Thousands | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($)Tranche | Jul. 15, 2019USD ($) | Jun. 26, 2019USD ($)Aircraft | May 01, 2019USD ($)Aircraft | Apr. 28, 2019USD ($) | Feb. 27, 2019USD ($) | Jan. 09, 2019USD ($) | Dec. 27, 2018USD ($) |
Debt Instrument [Line Items] | ||||||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 3,962,896 | $ 4,277,731 | ||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,100,000 | |||||||||
Secured Debt | 2019 NAB Secured Debt Financing [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 40,000 | |||||||||
Interest rate | 3.14% | |||||||||
Secured Debt | 2019 NAB Secured Debt Financing [Member] | B-737-800 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Number of Aircraft Securing Financing | Aircraft | 2 | |||||||||
Secured Debt | 2019 Credit AG Secured Debt Financing [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 120,000 | |||||||||
Secured Debt | 2019 Credit AG Secured Debt Financing [Member] | A-320-Neo [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Total Number of Aircraft Securing Financing | Aircraft | 3,000 | |||||||||
Notes Payable, Other Payables | ECA Term Financings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Weighted Average Interest Rate | 3.58% | |||||||||
Notes Payable, Other Payables | Bank Financings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt, Weighted Average Interest Rate | 4.04% | |||||||||
Notes Payable to Banks | DBJ Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Number of tranches for debt instrument at time of issuance | Tranche | 2 | |||||||||
Debt Instrument, Minimum Net Worth Covenant Required | $ 750,000 | |||||||||
Senior Notes | Senior Notes Due 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.25% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | 500,000 | $ 500,000 | ||||||||
Senior Notes | Senior Notes Due 2024 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 4.125% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | 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 and discounts | 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 and discounts | 500,000 | $ 500,000 | ||||||||
Senior Notes | Senior Notes Due 2022 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.50% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | 500,000 | $ 500,000 | ||||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | 425,000 | |||||||||
Line of Credit | 2018 DBS Revolving Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Increase (Decrease), Net | 20,000 | $ 30,000 | ||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 250,000 | 300,000 | $ 280,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350,000 | |||||||||
Debt Instrument, Minimum Net Worth Covenant Required | $ 750,000 | |||||||||
Line of Credit | 2018 DBS Revolving Credit Facility | LIBOR | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||
Line of Credit | 2016 DBS Revolving Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 135,000 | |||||||||
Line of Credit | 2013 Revolving Credit Facility | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of Credit Facility, Fair Value of Amount Outstanding | $ 0 | |||||||||
Line of Credit | Revolving Credit Facility | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 0.00% | |||||||||
Maximum | Notes Payable, Other Payables | ECA Term Financings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 3.96% | |||||||||
Maximum | Notes Payable to Banks | Bank Financings | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 5.30% | |||||||||
Senior Notes due 2019 with 6.25% Interest Rate [Domain] | Senior Notes Due 2019 [Member] | Senior Notes Due 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 6.25% | |||||||||
4.40% | Senior Notes | Senior Notes Due 2023 | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 4.40% | |||||||||
Borrowings from unsecured financings, net of debt issuance costs and discounts | $ 650,000 | $ 650,000 | ||||||||
Floating Rate Term Loan | Notes Payable to Banks | DBJ Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 120,000 | 215,000 | ||||||||
Debt Tranche A | Floating Rate Term Loan | Notes Payable to Banks | DBJ Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount - Tranche A | 60,000 | |||||||||
Debt Tranche B | Floating Rate Term Loan | Notes Payable to Banks | DBJ Term Loan | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Face Amount - Tranche B | $ 155,000 | |||||||||
Subsequent Event | Senior Notes Due 2019 [Member] | Senior Notes Due 2019 [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Debt Instrument, Accrued Interest Payable | $ 3,733 | |||||||||
2019 BNP-SG Secured Debt Financing [Member] | Secured Debt | 2019 NAB Secured Debt Financing [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 3.61% | |||||||||
2019 BNP-SG Secured Debt Financing [Member] | Secured Debt | 2019 Credit AG Secured Debt Financing [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Interest rate | 3.13% |
Shareholders' Equity and Shar_2
Shareholders' Equity and Share Based Payment Shareholders' Equity and Share Based Payment (Details Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | May 21, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-cash share-based payment expense | $ 3,177 | $ 3,076 | $ 5,903 | $ 5,454 | |||
Stock Repurchase Program, Authorized Amount | $ 100,000 | ||||||
Stock Repurchased During Period, Value | 2,864 | $ 11,424 | $ 5,574 | $ 9,413 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 97,358 | $ 76,019 | $ 97,358 | ||||
Shares Repurchased from Employees and Directors | 157,576 | ||||||
Cost of Shares Repurchased from Employees and Directors | $ 2,915 | ||||||
Total Performance-Based Shares Granted [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted | 320,944 | ||||||
AROEPerformanceBasedShares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted | 303,331 | ||||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-cash share-based payment expense | $ 3,301 | ||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | 10,270 | $ 10,270 | |||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized, period for recognition | 1 year 10 months 24 days | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Non-cash share-based payment expense | $ 2,602 | ||||||
Employee service share-based compensation, nonvested awards, compensation cost not yet recognized | $ 7,762 | $ 7,762 | |||||
Common Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Repurchased During Period, Shares | 625,744 | ||||||
Stock Repurchased During Period, Value | $ 11,374 |
Dividends (Details)
Dividends (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 30, 2019 | Feb. 08, 2019 | Oct. 30, 2018 | Aug. 03, 2018 | May 01, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Dividends [Abstract] | |||||||||||
Dividend per Common Share | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.28 | $ 0.28 | $ 0.30 | $ 0.28 | $ 0.60 | $ 0.56 | ||
Aggregate Dividend Amount | $ 22,534 | $ 22,518 | $ 22,867 | $ 21,870 | $ 21,908 | $ 22,536 | $ 22,518 | $ 21,908 | $ 22,085 |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Weighted-average shares: | ||||
Common shares outstanding | 74,650,357 | 77,910,513 | 74,676,926 | 78,137,290 |
Restricted common shares | 524,331 | 498,433 | 479,679 | 464,983 |
Total Weighted Average Shares | 75,174,688 | 78,408,946 | 75,156,605 | 78,602,273 |
Percentage of weighted-average shares: | ||||
Common shares outstanding | 99.30% | 99.36% | 99.36% | 99.41% |
Restricted common shares | 0.70% | 0.64% | 0.64% | 0.59% |
Total | 100.00% | 100.00% | 100.00% | 100.00% |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||||
Participating Securities, Distributed and Undistributed Earnings (Loss), Basic | $ 217 | $ 319 | $ 421 | $ 637 | ||
Participating Securities, Distributed and Undistributed Earnings of Net Income, Percent | 0.70% | 0.64% | 0.64% | 0.59% | ||
Earnings per share – Basic: | ||||||
Net income | $ 31,112 | $ 34,810 | $ 50,203 | $ 57,547 | $ 65,922 | $ 107,750 |
Earnings available to common shareholders – Basic | $ 30,895 | $ 49,884 | $ 65,501 | $ 107,113 | ||
Weighted-average common shares outstanding – Basic | 74,650,357 | 77,910,513 | 74,676,926 | 78,137,290 | ||
Earnings per common share – Basic | $ 0.41 | $ 0.64 | $ 0.88 | $ 1.37 | ||
Earnings per share – Diluted: | ||||||
Net income | $ 31,112 | $ 34,810 | $ 50,203 | $ 57,547 | $ 65,922 | $ 107,750 |
Earnings available to common shareholders – Diluted | $ 30,895 | $ 49,884 | $ 65,501 | $ 107,113 | ||
Weighted-average common shares outstanding – Basic | 74,650,357 | 77,910,513 | 74,676,926 | 78,137,290 | ||
Effect of dilutive shares(2) | 791,189 | 337,716 | 680,507 | 282,868 | ||
Weighted-average common shares outstanding – Diluted | 75,441,546 | 78,248,229 | 75,357,433 | 78,420,158 | ||
Earnings per common share – Diluted | $ 0.41 | $ 0.64 | $ 0.87 | $ 1.37 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate, Continuing Operations | 17.30% | 6.10% | 12.50% | 2.20% |
Sources of income from continuing operations before income taxes | ||||
U.S. operations | $ 1,959 | $ 788 | $ 3,875 | $ 1,471 |
Non-U.S. operations | 32,658 | 50,666 | 69,006 | 104,904 |
Income from continuing operations before income taxes and earnings of unconsolidated equity method investments | $ 34,617 | $ 51,454 | $ 72,881 | $ 106,375 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Analysis of effective income tax rate for continuing operations | ||||
Notional U.S. federal income tax expense at the statutory rate | $ 7,270 | $ 10,806 | $ 15,305 | $ 22,339 |
U.S. state and local income tax, net | 181 | 55 | 390 | 103 |
Non-deductible expenses in the U.S. | 232 | 29 | 569 | (164) |
Income tax provision | 5,992 | 3,132 | 9,090 | 2,288 |
Bermuda | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (8,048) | (14,395) | ||
Ireland | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | 2,602 | (1,128) | ||
Other | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (1,724) | (1,643) | ||
Singapore | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (2) | 0 | $ (4) | $ (2,824) |
Other | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | (872) | (835) | ||
Ireland | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | 2,093 | (811) | ||
Bermuda | Foreign Tax Authority | ||||
Analysis of effective income tax rate for continuing operations | ||||
Non-U.S. operations: | $ (2,910) | $ (6,112) |
Income Taxes Income Taxes (Text
Income Taxes Income Taxes (Textual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | |
Deferred Income Tax Expense (Benefit) | $ 2,845 | ||||||
Effective Income Tax Rate Reconciliation, Tax Contingency, Other, Percent | 9.10% | 8.60% | |||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent | 6.10% | 4.80% | |||||
Effective Income Tax Rate, Continuing Operations | 17.30% | 6.10% | 12.50% | 2.20% | |||
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 | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest Income (Expense), Net [Abstract] | ||||
Interest on borrowings and other liabilities | $ 63,639 | $ 53,979 | $ 123,918 | $ 107,957 |
Cash flow hedges reclassified into earnings | 0 | 294 | 184 | 595 |
Amortization of deferred financing costs | 3,594 | 3,510 | 6,958 | 7,042 |
Interest expense | 67,233 | 57,783 | 131,060 | 115,594 |
Less: Interest income | (856) | (287) | (1,220) | (990) |
Interest Costs Capitalized | 0 | 98 | 0 | 98 |
Interest, net | $ 66,377 | $ 57,398 | $ 129,840 | $ 114,506 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)Aircraft | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Aircraft | Jun. 30, 2018USD ($) | Aug. 02, 2019USD ($)Aircraft | |
Types of Commercial Aircraft [Line Items] | |||||
Rent expense | $ 414 | $ 563 | $ 770 | $ 1,130 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
2019 | 1,321 | 1,321 | |||
2020 | 1,872 | 1,872 | |||
2021 | 1,903 | 1,903 | |||
2022 | 1,813 | 1,813 | |||
2023 | 1,699 | 1,699 | |||
Thereafter | 7,847 | 7,847 | |||
Total | $ 16,455 | $ 16,455 | |||
Committed to acquire aircraft | Aircraft | 32 | 32 | |||
Commitment to acquire Embraer E-Jet E2 aircraft | Aircraft | 25 | ||||
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2019 | $ 220,969 | $ 220,969 | |||
2020 | 142,588 | 142,588 | |||
2021 | 728,830 | 728,830 | |||
2022 | 65,682 | 65,682 | |||
2023 | 0 | 0 | |||
Thereafter | 0 | 0 | |||
Total | 1,158,069 | 1,158,069 | |||
Subsequent Event | |||||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||||
Committed to acquire aircraft | Aircraft | 39 | ||||
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||||
Unrecorded Unconditional Purchase Obligation | $ 1,331,994 | ||||
Pre-Delivery Payments | |||||
Purchase Obligation, Fiscal Year Maturity [Abstract] | |||||
Total | $ 133,955 | $ 133,955 |
Other Assets (Details)
Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Principal components of other assets | ||
Deferred income tax asset | $ 1,216 | $ 912 |
Lease incentives and lease premiums, net of amortization of $63,070 and $47,304, respectively | 100,743 | 99,079 |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 16,817 | 11,707 |
Deposit Assets | 19,050 | 39,948 |
Interest Rate Derivative Assets, at Fair Value | 891 | 4,886 |
Financing Receivable, after Allowance for Credit Loss, Noncurrent | 1,906 | 4,292 |
Operating Lease, Right-of-Use Asset | 9,143 | 0 |
Other assets | 35,936 | 53,537 |
Total other assets | 185,702 | 214,361 |
Amortization of lease incentives and lease premiums | $ 63,070 | $ 47,304 |
Accounts Payable, Accrued Exp_3
Accounts Payable, Accrued Expenses and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Payables and Accruals [Abstract] | ||
Accounts payable, accrued expenses and other liabilities | $ 46,886 | $ 57,220 |
Deferred income tax liability | 53,271 | 43,720 |
Accrued interest payable | 47,472 | 45,277 |
Operating Lease, Liability | 12,665 | 0 |
Lease discounts, net of amortization of $43,123 and $43,935, respectively | 4,291 | 7,124 |
Total accounts payable, accrued expenses and other liabilities | 164,585 | 153,341 |
Deferred Lease Income, Accumulated Amortization | $ 43,123 | $ 43,935 |
Uncategorized Items - ayrq22019
Label | Element | Value |
Property, Plant and Equipment, Transfers and Changes | us-gaap_PropertyPlantAndEquipmentTransfersAndChanges | $ 40,198,000 |
Property, Plant and Equipment, Transfers and Changes | us-gaap_PropertyPlantAndEquipmentTransfersAndChanges | 59,185,000 |
Advance Lease Rentals, Security Deposits, Maintenance Payments, Other Liabilities and Other Assets Assumed in Acquisition of Flight Equipment | ayr_AdvanceLeaseRentalsSecurityDepositsMaintenancePaymentsOtherLiabilitiesandOtherAssetsAssumedinAcquisitionofFlightEquipment | 35,889,000 |
Advance Lease Rentals, Security Deposits, Maintenance Payments, Other Liabilities and Other Assets Assumed in Acquisition of Flight Equipment | ayr_AdvanceLeaseRentalsSecurityDepositsMaintenancePaymentsOtherLiabilitiesandOtherAssetsAssumedinAcquisitionofFlightEquipment | 28,348,000 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | us-gaap_InterestPaidNet | 121,523,000 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | us-gaap_InterestPaidNet | 108,078,000 |
Advance Lease Rentals, Security Deposits, Maintenance Payments, Other Liabilities and Other Assets Settled In Sale Of Flight Equipment | ayr_AdvanceLeaseRentalsSecurityDepositsMaintenancePaymentsOtherLiabilitiesandOtherAssetsSettledInSaleOfFlightEquipment | 10,938,000 |
Advance Lease Rentals, Security Deposits, Maintenance Payments, Other Liabilities and Other Assets Settled In Sale Of Flight Equipment | ayr_AdvanceLeaseRentalsSecurityDepositsMaintenancePaymentsOtherLiabilitiesandOtherAssetsSettledInSaleOfFlightEquipment | 40,116,000 |
Income Taxes Paid, Net | us-gaap_IncomeTaxesPaidNet | 5,533,000 |
Income Taxes Paid, Net | us-gaap_IncomeTaxesPaidNet | $ 115,000 |