Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 08, 2019 | |
Document and Entity Information | ||
Entity Registrant Name | AIR LEASE CORP | |
Entity Central Index Key | 0001487712 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 111,118,169 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 285,715 | $ 300,127 |
Restricted cash | 12,527 | 22,871 |
Flight equipment subject to operating leases | 18,668,410 | 17,985,324 |
Less accumulated depreciation | (2,383,032) | (2,278,214) |
Flight equipment subject to operating leases, net | 16,285,378 | 15,707,110 |
Deposits on flight equipment purchases | 1,871,088 | 1,809,260 |
Other assets | 724,227 | 642,440 |
Total assets | 19,178,935 | 18,481,808 |
Liabilities and Shareholders' Equity | ||
Accrued interest and other payables | 366,826 | 382,132 |
Debt financing, net of discounts and issuance costs | 11,869,671 | 11,538,905 |
Security deposits and maintenance reserves on flight equipment leases | 971,397 | 990,578 |
Rentals received in advance | 116,657 | 119,526 |
Deferred tax liability | 680,567 | 643,767 |
Total liabilities | 14,005,118 | 13,674,908 |
Shareholders' Equity | ||
Paid-in capital | 2,717,405 | 2,474,238 |
Retained earnings | 2,455,201 | 2,331,552 |
Total shareholders' equity | 5,173,817 | 4,806,900 |
Total liabilities and shareholders' equity | 19,178,935 | 18,481,808 |
Series A Preferred Stock | ||
Shareholders' Equity | ||
Preferred stock, $0.01 par value; 50,000,000 shares authorized; 10,000,000 shares of 6.150% Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A (aggregate liquidation preference of $250,000) issued and outstanding at March 31, 2019 and no shares issued or outstanding at December 31, 2018 | 100 | |
Class A Common Stock | ||
Shareholders' Equity | ||
Common Stock | 1,111 | 1,110 |
Class B Non-Voting Common Stock | ||
Shareholders' Equity | ||
Common Stock |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 05, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 | |
Preferred Stock, shares issued | 10,000,000 | 0 | |
Preferred Stock, shares outstanding | 10,000,000 | 0 | |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock | 6.15% | ||
Series A liquidation preference | $ 250,000,000 | ||
Common Stock, issued shares | 10,000,000 | ||
Series A Preferred Stock | |||
Preferred Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred Stock, shares authorized | 50,000,000 | 50,000,000 | |
Preferred Stock, shares issued | 10,000,000 | 0 | |
Preferred Stock, shares outstanding | 10,000,000 | 0 | |
Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock | 6.15% | ||
Series A liquidation preference | $ 250,000 | ||
Class A Common Stock | |||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common Stock, authorized shares | 500,000,000 | 500,000,000 | |
Common Stock, issued shares | 111,118,169 | 110,949,850 | |
Common Stock, outstanding shares | 111,118,169 | 110,949,850 | |
Class B Non-Voting Common Stock | |||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common Stock, authorized shares | 10,000,000 | 10,000,000 | |
Common Stock, issued shares | 0 | 0 | |
Common Stock, outstanding shares | 0 | 0 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues | ||
Rental of flight equipment | $ 455,739 | $ 377,862 |
Aircraft sales, trading and other | 10,312 | 3,347 |
Total revenues | 466,051 | 381,209 |
Expenses | ||
Interest | 89,220 | 68,943 |
Amortization of debt discounts and issuance costs | 8,540 | 8,022 |
Interest expense | 97,760 | 76,965 |
Depreciation of flight equipment | 159,471 | 136,134 |
Selling, general and administrative | 29,702 | 23,359 |
Stock-based compensation | 4,174 | 3,432 |
Total expenses | 291,107 | 239,890 |
Income before taxes | 174,944 | 141,319 |
Income tax expense | (36,850) | (30,668) |
Net income | $ 138,094 | $ 110,651 |
Earnings per share of Class A and Class B common stock: | ||
Basic (in dollars per share) | $ 1.24 | $ 1.07 |
Diluted (in dollars per share) | $ 1.23 | $ 1 |
Weighted-average shares outstanding | ||
Basic (in shares) | 111,018,279 | 103,747,920 |
Diluted (in shares) | 112,380,856 | 112,230,410 |
Dividends declared per share of Class A common stock (in dollars per share) | $ 0.13 | $ 0.10 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Class A Common StockCommon Stock | Preferred Stock | Paid-in Capital | Retained Earnings | Total |
Balance at Dec. 31, 2017 | $ 1,036 | $ 2,260,064 | $ 1,866,342 | $ 4,127,442 | |
Balance (in shares) at Dec. 31, 2017 | 103,621,629 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Issuance of common stock upon vesting of restricted stock units and upon exercise of options | $ 4 | 2,632 | 2,636 | ||
Issuance of common stock upon vesting of restricted stock units and upon exercise of options (in shares) | 514,773 | ||||
Stock-based compensation | 3,432 | 3,432 | |||
Cash dividends (declared $0.10, $0.13 per share for March 31, 2018 and 2019, respectively) | (10,397) | (10,397) | |||
Tax withholding related to vesting of restricted stock units and exercise of stock options | (7,141) | (7,141) | |||
Tax withholding related to vesting of restricted stock units and exercise of stock options (in shares) | (156,568) | ||||
Net income | 110,651 | 110,651 | |||
Balance at Mar. 31, 2018 | $ 1,040 | 2,258,987 | 1,966,596 | 4,226,623 | |
Balance (in shares) at Mar. 31, 2018 | 103,979,834 | ||||
Balance at Dec. 31, 2018 | $ 1,110 | 2,474,238 | 2,331,552 | 4,806,900 | |
Balance (in shares) at Dec. 31, 2018 | 110,949,850 | ||||
Increase (Decrease) in Shareholders' Equity | |||||
Issuance of common stock upon vesting of restricted stock units and upon exercise of options | $ 2 | 439 | 441 | ||
Issuance of common stock upon vesting of restricted stock units and upon exercise of options (in shares) | 263,218 | ||||
Issuance of preferred stock | $ 100 | 242,141 | 242,241 | ||
Issuance of preferred stock (in shares) | 10,000,000 | ||||
Stock-based compensation | 4,174 | 4,174 | |||
Cash dividends (declared $0.10, $0.13 per share for March 31, 2018 and 2019, respectively) | (14,445) | (14,445) | |||
Tax withholding related to vesting of restricted stock units and exercise of stock options | $ (1) | (3,587) | (3,588) | ||
Tax withholding related to vesting of restricted stock units and exercise of stock options (in shares) | (94,899) | ||||
Net income | 138,094 | 138,094 | |||
Balance at Mar. 31, 2019 | $ 1,111 | $ 100 | $ 2,717,405 | $ 2,455,201 | $ 5,173,817 |
Balance (in shares) at Mar. 31, 2019 | 111,118,169 | 10,000,000 |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | ||
Cash dividends declared per share (in dollars per share) | $ 0.13 | $ 0.10 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating Activities | ||
Net income | $ 138,094 | $ 110,651 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of flight equipment | 159,471 | 136,134 |
Stock-based compensation | 4,174 | 3,432 |
Deferred taxes | 36,825 | 30,668 |
Amortization of debt discounts and issuance costs | 8,540 | 8,022 |
Amortization of prepaid lease costs | 7,180 | 7,020 |
Gain on aircraft sales, trading and other activity | (17,167) | (765) |
Changes in operating assets and liabilities: | ||
Other assets | (93,788) | (25,605) |
Accrued interest and other payables | 20,789 | (24,913) |
Rentals received in advance | (2,869) | 2,023 |
Net cash provided by operating activities | 261,249 | 246,667 |
Investing Activities | ||
Acquisition of flight equipment under operating lease | (725,300) | (362,519) |
Payments for deposits on flight equipment purchases | (305,284) | (63,751) |
Proceeds from aircraft sales, trading and other activity | 247,264 | |
Acquisition of aircraft furnishings, equipment and other assets | (111,162) | (54,970) |
Net cash used in investing activities | (894,482) | (481,240) |
Financing Activities | ||
Issuance of common stock upon exercise of options | 440 | 2,628 |
Cash dividends paid | (14,421) | (10,359) |
Tax withholdings on stock-based compensation | (3,587) | (7,141) |
Net change in unsecured revolving facility | 225,000 | (510,000) |
Proceeds from debt financings | 995,779 | 1,230,765 |
Payments in reduction of debt financings | (896,098) | (537,444) |
Net proceeds from preferred stock issuance | 242,241 | |
Debt issuance costs | (2,455) | (2,623) |
Security deposits and maintenance reserve receipts | 73,145 | 48,754 |
Security deposits and maintenance reserve disbursements | (11,567) | (16,665) |
Net cash provided by financing activities | 608,477 | 197,915 |
Net decrease in cash | (24,756) | (36,658) |
Cash, cash equivalents and restricted cash at beginning of period | 322,998 | 308,282 |
Cash, cash equivalents and restricted cash at end of period | 298,242 | 271,624 |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid during the period for interest, including capitalized interest of $16,226 and $12,816 at March 31, 2019 and 2018, respectively | 137,481 | 95,466 |
Cash paid for income taxes | 25 | 70 |
Supplemental Disclosure of Noncash Activities | ||
Buyer furnished equipment, capitalized interest and deposits on flight equipment purchases applied to acquisition of flight equipment | 298,962 | 79,677 |
Cash dividends declared, not yet paid | $ 14,445 | $ 10,397 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Supplemental Disclosure of Cash Flow Information | ||
Cash paid for interest, capitalized interest | $ 16,226 | $ 12,816 |
Company Background and Overview
Company Background and Overview | 3 Months Ended |
Mar. 31, 2019 | |
Company Background and Overview | |
Company Background and Overview | Note 1. Company Background and Overview Air Lease Corporation (the “Company”, “ALC”, “we”, “our” or “us”) is a leading aircraft leasing company that was founded by aircraft leasing industry pioneer, Steven F. Udvar-Házy. We are principally engaged in purchasing new commercial jet transport aircraft directly from aircraft manufacturers, such as The Boeing Company (“Boeing”) and Airbus S.A.S. (“Airbus”), and leasing those aircraft to airlines throughout the world with the intention to generate attractive returns on equity. In addition to our leasing activities, we sell aircraft from our operating lease portfolio to third parties, including other leasing companies, financial services companies, airlines and through our asset-backed securities platform. We also provide fleet management services to investors and owners of aircraft portfolios for a management fee. As of March 31, 2019, we owned a fleet of 280 aircraft, managed 65 aircraft and had 361 aircraft on order with aircraft manufacturers. |
Basis of Preparation and Critic
Basis of Preparation and Critical Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Preparation and Critical Accounting Policies | |
Basis of Preparation and Critical Accounting Policies | Note 2. Basis of Preparation and Critical Accounting Policies The Company consolidates financial statements of all entities in which we have a controlling financial interest, including the accounts of any Variable Interest Entity in which we have a controlling financial interest and for which we are the primary beneficiary. All material intercompany balances are eliminated in consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The accompanying unaudited consolidated financial statements include all adjustments, consisting only of normal, recurring adjustments, which are in the opinion of management necessary to present fairly the Company’s financial position, results of operations and cash flows at March 31, 2019, and for all periods presented. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the operating results expected for the year ending December 31, 2019. These financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2018. Reclassifications Certain reclassifications have been made in the 2018 consolidated financial statements to conform to the classifications in 2019. Recently adopted accounting standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), “Leases (Topic 842).” The amendments in ASU 2016-02 set out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. Subsequently, the FASB issued additional ASUs that further clarified ASU 2016-02. The Company adopted the amendments to Accounting Standards Codification (“ASC”) 842 on January 1, 2019 using the Effective Date Method. As a result, the Company continues to disclose comparative reporting periods under the previous accounting guidance, ASC 840. Based on our evaluation of the guidance, the Company noted that lessor accounting is similar to the current model, but the guidance impacted us in scenarios where we are the lessee. For scenarios where we are the lessee, the Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) lease assets under Other assets, and long-term lease obligations under Accrued interest & other payables on the Company’s Consolidated Balance Sheets. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elected to exclude recognition of leases with a term of 12 months or less (short-term leases) from the Consolidated Balance Sheets. As of January 1, 2019, the Company recognized operating ROU lease assets and obligations in the amounts of $44.6 million and $51.2 million, respectively, on its Consolidated Balance Sheets. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. |
Debt Financing
Debt Financing | 3 Months Ended |
Mar. 31, 2019 | |
Debt Financing | |
Debt Financing | Note 3. Debt Financing The Company’s debt financing was comprised of the following at March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, December 31, 2019 2018 Unsecured Senior notes $ 9,900,000 $ 10,043,445 Revolving credit facilities 827,000 602,000 Term financings 807,830 607,340 Total unsecured debt financing 11,534,830 11,252,785 Secured Term financings 426,724 371,203 Export credit financing 36,601 38,265 Total secured debt financing 463,325 409,468 Total debt financing 11,998,155 11,662,253 Less: Debt discounts and issuance costs (128,484) (123,348) Debt financing, net of discounts and issuance costs $ 11,869,671 $ 11,538,905 The Company’s secured obligations as of March 31, 2019 and December 31, 2018 are summarized below (dollars in thousands): March 31, December 31, 2019 2018 Nonrecourse $ 158,808 $ 167,245 Recourse 304,517 242,223 Total secured debt financing $ 463,325 $ 409,468 Number of aircraft pledged as collateral 18 20 Net book value of aircraft pledged as collateral $ 972,237 $ 1,132,111 Senior unsecured notes (including Medium-Term Note Program) As of March 31, 2019, the Company had $9.9 billion in senior unsecured notes outstanding. As of December 31, 2018, the Company had $10.0 billion in senior unsecured notes outstanding. In January 2019, the Company issued $700.0 million in aggregate principal amount of 4.25% Medium-Term Notes, Series A, due February 1, 2024 under its Medium-Term Note Program. Unsecured revolving credit facilities As of March 31, 2019, the total outstanding balance on the Company's unsecured revolving credit facilities was approximately $827.0 million. The total outstanding balance under the Company's unsecured revolving credit facilities was approximately $602.0 million as of December 31, 2018. During the quarter ended March 31, 2019, the Company increased the aggregate capacity of its committed unsecured revolving credit facility by $135.0 million to $4.7 billion. In May 2019, the Company amended and extended its committed unsecured revolving credit facility whereby, among other things, the Company extended the final maturity date from May 5, 2022 to May 5, 2023 and increased the total revolving commitments to approximately $5.8 billion as of May 5, 2019, representing an increase of 27% from December 31,2018, with an interest rate of LIBOR plus 1.05% with a 0.20% facility fee. Lenders hold revolving commitments totaling approximately $5.4 billion that mature on May 5, 2023, commitments totaling $245.0 million that mature on May 5, 2022, commitments totaling approximately $5.0 million that mature on May 5, 2021, and commitments totaling $92.7 million that mature on May 5, 2020. In February 2019, the Company entered into an uncommitted unsecured revolving credit facility with a total borrowing capacity of $100.0 million and a maturity date of January 31, 2020, bearing interest at a rate of LIBOR plus 0.90%. Maturities Maturities of debt outstanding as of March 31, 2019 are as follows (in thousands): Years ending December 31, 2019 $ 128,867 2020 1,461,270 2021 1,693,524 2022 3,338,472 2023 1,878,376 Thereafter 3,497,646 Total $ 11,998,155 |
Rental Income
Rental Income | 3 Months Ended |
Mar. 31, 2019 | |
Rental Income | |
Rental Income | Note 5. Rental Income At March 31, 2019, minimum future rentals on non-cancellable operating leases of flight equipment in our fleet, which have been delivered as of March 31, 2019, are as follows (in thousands): Years ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 1,342,732 2020 1,744,027 2021 1,645,725 2022 1,517,139 2023 1,318,164 Thereafter 4,626,135 Total $ 12,193,922 |
Net Earnings Per Share
Net Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Net Earnings Per Share | |
Net Earnings Per Share | Note 6. Earnings Per Share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted-average number of common shares outstanding for the period. Preferred stock dividends are subtracted from net income in determining net income available to common stockholders. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if the effect of including these shares would be anti-dilutive. The Company’s two classes of common stock, Class A and Class B Non-Voting, have equal rights to dividends and income, and therefore, basic and diluted earnings per share are the same for each class of common stock. As of March 31, 2019, we did not have any Class B Non-Voting common stock outstanding. Diluted earnings per share takes into account the potential conversion of stock options, restricted stock units, and warrants using the treasury stock method and convertible notes using the if-converted method. For the three months ended March 31, 2019, the Company did not exclude any potentially dilutive securities, whose effect would have been anti-dilutive, from the computation of diluted earnings per share. The Company excluded 940,470 and 933,531 shares related to restricted stock units for which the performance metric had yet to be achieved as of March 31, 2019 and 2018, respectively. The following table sets forth the reconciliation of basic and diluted earnings per share (in thousands, except share and per share amounts): Three Months Ended March 31, 2019 2018 Basic earnings per share: Numerator Net income available to common stockholders 138,094 110,651 Denominator Weighted-average common shares outstanding 111,018,279 103,747,920 Basic earnings per share $ 1.24 $ 1.07 Diluted earnings per share: Numerator Net income available to common stockholders $ 138,094 $ 110,651 Assumed conversion of convertible senior notes — 1,739 Net income available to common stockholders plus assumed conversions $ 138,094 $ 112,390 Denominator Number of shares used in basic computation 111,018,279 103,747,920 Weighted-average effect of dilutive securities 1,362,577 8,482,490 Number of shares used in per share computation 112,380,856 112,230,410 Diluted earnings per share $ 1.23 $ 1.00 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Measurements | |
Fair Value Measurements | Note 7. Fair Value Measurements Assets and liabilities measured at fair value on a recurring and non-recurring basis The Company had no assets or liabilities which are measured at fair value on a recurring or non-recurring basis as of March 31, 2019 or December 31, 2018. Financial instruments not measured at fair value The fair value of debt financing is estimated based on the quoted market prices for the same or similar issues, or on the current rates offered to the Company for debt of the same remaining maturities, which would be categorized as a Level 2 measurement in the fair value hierarchy. The estimated fair value of debt financing as of March 31, 2019 was approximately $12.0 billion compared to a book value of $12.0 billion. The estimated fair value of debt financing as of December 31, 2018 was $11.4 billion compared to a book value of $11.7 billion. The following financial instruments are not measured at fair value on the Company’s Consolidated Balance Sheets at March 31, 2019, but require disclosure of their fair values: cash and cash equivalents and restricted cash. The estimated fair value of such instruments at March 31, 2019 and December 31, 2018 approximates their carrying value as reported on the Consolidated Balance Sheets. The fair value of all these instruments would be categorized as Level 1 in the fair value hierarchy. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2019 | |
Shareholders' Equity | |
Shareholders' Equity | Note 8. Shareholders’ Equity The Company was authorized to issue 500,000,000 shares of Class A common stock, $0.01 par value, at March 31, 2019 and December 31, 2018. As of March 31, 2019 and December 31, 2018, the Company had 111,118,169 and 110,949,850 Class A common shares issued and outstanding, respectively. The Company did not have any shares of Class B non-voting common stock, $0.01 par value, issued or outstanding as of March 31, 2019 and December 31, 2018. The Company was authorized to issue 50,000,000 shares of preferred stock, $0.01 par value, at March 31, 2019 and December 31, 2018. As of March 31, 2019, the Company had 10,000,000 shares of preferred stock issued and outstanding with an aggregate liquidation preference of $250.0 million. The Company did not have any shares of preferred stock issued or outstanding as of December 31, 2018. On March 5, 2019, the Company issued 10,000,000 shares of 6.150% Fixed-to-Floating Non-Cumulative Perpetual Preferred Stock, Series A (the “Series A Preferred Stock”), $0.01 par value, with a liquidation preference of $25.00 per share. The Company will pay dividends on the preferred stock only when, as and if declared by the board of directors. Dividends will accrue, on a non-cumulative basis, on the stated amount of $25.00 per share at a rate per annum equal to: (i) 6.15% during the first five years and payable quarterly in arrears beginning on June 15, 2019, and (ii) three-month LIBOR plus a spread of 3.65% per annum from March 15, 2024, reset quarterly and payable quarterly in arrears beginning on June 15, 2024. The Company may redeem shares of the Series A Preferred Stock at its option, in whole or in part, from time to time, on or after March 15, 2024, for cash at a redemption price equal to $25.00 per share, plus any declared and unpaid dividends to, but excluding, the redemption date, without accumulation of any undeclared dividends. The Company may also redeem shares of the Series A Preferred Stock at the Company’s option under certain other limited conditions. |
Stock-based Compensation
Stock-based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Stock-based Compensation | |
Stock-based Compensation | Note 9. Stock-based Compensation On May 7, 2014, the stockholders of the Company approved the Air Lease Corporation 2014 Equity Incentive Plan (the “2014 Plan”). Upon approval of the 2014 Plan, no new awards may be granted under the Amended and Restated 2010 Equity Incentive Plan (the “2010 Plan”). As of March 31, 2019, the number of stock options (“Stock Options”) and restricted stock units (“RSUs”) remaining under the 2014 Plan was approximately 5,304,976, which includes 304,976 shares which were previously reserved for issuance under the 2010 Plan. Stock Options are generally granted for a term of 10 years and generally vest ratably over a three-year period. The Company has issued RSUs with four different vesting criteria: those RSUs that vest based on the attainment of book value goals, those RSUs that vest based on the attainment of Total Shareholder Return (“TSR”) goals, time based RSUs that vest ratably over a time period of three years and RSUs that cliff-vest at the end of a one-or two-year period. The Company has two types of book value RSUs; those that vest ratably over a three-year period if the performance condition has been met, and those that cliff-vest at the end of a three-year period if the performance condition has been met. For the book value RSUs that cliff-vest at the end of a three-year period, the number of shares that will ultimately vest will range from 0% to 200% of the RSUs initially granted depending on the percentage change in the Company's book value per share at the end of the vesting period. At each reporting period, the Company reassesses the probability of the performance condition being achieved and a stock-based compensation expense is recognized based upon management’s assessment. Book value RSUs for which the performance metric has not been met are forfeited. The TSR RSUs cliff-vest at the end of a three-year period. The number of TSR RSUs that will ultimately vest is based upon the percentile ranking of the Company’s TSR among a peer group. The number of shares that will ultimately vest will range from 0% to 200% of the RSUs initially granted depending on the extent to which the TSR metric is achieved. The Company recorded $4.2 million and $3.4 million of stock-based compensation expense related to RSUs for the three months ended March 31, 2019 and 2018, respectively. Stock Options A summary of stock option activity for the three months ended March 31, 2019 follows: Remaining Aggregate Exercise Contractual Term Intrinsic Value Shares Price (in years) (in thousands) (1) Balance at December 31, 2018 2,620,295 $ 20.40 1.49 $ 25,697 Granted — $ — — $ — Exercised (34,000) $ 20.00 — $ 522 Forfeited/canceled — $ — — $ — Balance at March 31, 2019 2,586,295 $ 20.41 1.24 $ 36,057 Vested and exercisable as of March 31, 2019 2,586,295 $ 20.41 1.24 $ 36,057 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of our Class A common stock as of the respective date. As of March 31, 2019, all of the Company’s outstanding employee stock options had fully vested and there were no unrecognized compensation costs related to outstanding stock options as of March 31, 2019. As a result, there was no stock-based compensation expense related to Stock Options for the three months ended March 31, 2019 and 2018. The following table summarizes additional information regarding exercisable and vested stock options at March 31, 2019: Stock Options Exercisable and Vested Weighted- Average Number of Remaining Life Range of exercise prices Shares (in years) $20.00 2,466,295 1.20 $28.80 120,000 2.07 $20.00 - $28.80 2,586,295 1.24 Restricted Stock Units Compensation cost for stock awards is measured at the grant date based on fair value and recognized over the vesting period. The fair value of time based and book value RSUs is determined based on the closing market price of the Company’s Class A common stock on the date of grant, while the fair value of TSR RSUs is determined at the grant date using a Monte Carlo simulation model. Included in the Monte Carlo simulation model were certain assumptions regarding a number of highly complex and subjective variables, such as expected volatility, risk-free interest rate and expected dividends. To appropriately value the award, the risk-free interest rate is estimated for the time period from the valuation date until the vesting date and the historical volatilities were estimated based on a historical timeframe equal to the time from the valuation date until the end date of the performance period. During the three months ended March 31, 2019, the Company granted 600,827 RSUs of which 127,640 are TSR RSUs. The following table summarizes the activities for our unvested RSUs for the three months ended March 31, 2019: Unvested Restricted Stock Units Weighted-Average Number of Grant-Date Shares Fair Value Unvested at December 31, 2018 1,055,325 $ 41.66 Granted 600,827 $ 39.72 Vested (236,373) $ 34.49 Forfeited/canceled (167,769) $ 29.61 Unvested at March 31, 2019 1,252,010 $ 43.70 Expected to vest after March 31, 2019 1,338,537 $ 43.55 As of March 31, 2019, there was $38.7 million of unrecognized compensation cost related to unvested stock-based payments granted to employees. Total unrecognized compensation cost will be recognized over a weighted-average remaining period of 2.23 years. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments | |
Investments | Note 10. Investments The Company entered into an agreement with a co-investment vehicle arranged by Napier Park Global Capital (US) LP to participate in two joint ventures and formed Blackbird Capital I, LLC and Blackbird Capital II, LLC for the purpose of investing in commercial aircraft and leasing them to airlines around the globe. We also provide management services to these joint ventures for a fee based upon aircraft assets under management. The Company’s non-controlling interests in each joint venture is 9.5% and are accounted for as investments under the equity method of accounting. The Company’s investment in these joint ventures was $44.1 million and $40.6 million as of March 31, 2019 and December 31, 2018, respectively, and is recorded in other assets on the Consolidated Balance Sheets. As of March 31, 2019, the Company’s total unfunded commitment to Blackbird Capital II, LLC was $30.5 million. On August 1, 2018, we entered into an agreement to sell 18 aircraft to Thunderbolt Aircraft Lease Limited II (“Thunderbolt II”), an asset-backed securities platform which will facilitate the sale and continued management of aircraft assets to investors. The Company’s non-controlling interest in Thunderbolt II is 5.1% and it is accounted for as an investment under the cost method of accounting. All of the aircraft in Thunderbolt II's portfolio will be managed by the Company. During the quarter ended March 31, 2019, we completed the sale of three aircraft from our operating lease portfolio to Thunderbolt II. We expect the sale of the remaining three aircraft to be completed in 2019. The Company's investment in Thunderbolt II was $5.4 million as of March 31, 2019 and December 31, 2018, and is recorded in other assets on the Consolidated Balance Sheets. |
Flight Equipment Held for Sale
Flight Equipment Held for Sale | 3 Months Ended |
Mar. 31, 2019 | |
Flight Equipment held for sale | |
Flight Equipment Held for Sale | Note 11. Flight Equipment Held for Sale As of March 31, 2019, we had three aircraft, with a carrying value of $107.6 million, which were held for sale and included in Flight equipment subject to operating leases on the Consolidated Balance Sheet. We expect the sale of all three aircraft to be completed in 2019. We cease recognition of depreciation expense once an aircraft is classified as held for sale. As of December 31, 2018, we had six aircraft classified as held for sale, with a carrying value of $241.6 million. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events | |
Subsequent Events | Note 12. Subsequent Events In May 2019, the Company amended and extended its committed unsecured revolving credit facility whereby, among other things, the Company extended the final maturity date from May 5, 2022 to May 5, 2023 and increased the total revolving commitments to approximately $5.8 billion as of May 5, 2019, representing an increase of 27% from December 31, 2018, with an interest rate of LIBOR plus 1.05% with a 0.20% facility fee. Lenders held revolving commitments totaling approximately $5.4 billion that mature on May 5, 2023, commitments totaling $245.0 million that mature on May 5, 2022, commitments totaling approximately $5.0 million that mature on May 5, 2021, and commitments totaling $92.7 million that mature on May 5, 2020. On May 8, 2019, our board of directors approved a quarterly cash dividend of $0.13 per share on our outstanding Class A common stock. The dividend will be paid on July 11, 2019 to holders of record of our Class A common stock as of June 5, 2019. Our board of directors also approved a cash dividend of $0.427083 per share on our outstanding Series A Preferred Stock, which will be paid on June 15, 2019 to holders of record of our Series A Preferred Stock as of May 31, 2019. |
Basis of Preparation and Crit_2
Basis of Preparation and Critical Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Basis of Preparation and Critical Accounting Policies | |
Reclassifications | Reclassifications Certain reclassifications have been made in the 2018 consolidated financial statements to conform to the classifications in 2019. |
Recent issued accounting pronouncements | Recently adopted accounting standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02 (“ASU 2016-02”), “Leases (Topic 842).” The amendments in ASU 2016-02 set out the principles for the recognition, measurement, presentation and disclosure of leases for both lessees and lessors. Subsequently, the FASB issued additional ASUs that further clarified ASU 2016-02. The Company adopted the amendments to Accounting Standards Codification (“ASC”) 842 on January 1, 2019 using the Effective Date Method. As a result, the Company continues to disclose comparative reporting periods under the previous accounting guidance, ASC 840. Based on our evaluation of the guidance, the Company noted that lessor accounting is similar to the current model, but the guidance impacted us in scenarios where we are the lessee. For scenarios where we are the lessee, the Company determines if an arrangement is a lease at inception. Operating leases are included in right-of-use (“ROU”) lease assets under Other assets, and long-term lease obligations under Accrued interest & other payables on the Company’s Consolidated Balance Sheets. ROU lease assets represent the Company’s right to use an underlying asset for the lease term and lease obligations represent the Company’s obligation to make lease payments arising from the lease. Operating ROU lease assets and obligations are recognized at the commencement date based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company elected to exclude recognition of leases with a term of 12 months or less (short-term leases) from the Consolidated Balance Sheets. As of January 1, 2019, the Company recognized operating ROU lease assets and obligations in the amounts of $44.6 million and $51.2 million, respectively, on its Consolidated Balance Sheets. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. |
Debt Financing (Tables)
Debt Financing (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Financing | |
Summary of consolidated debt | The Company’s debt financing was comprised of the following at March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, December 31, 2019 2018 Unsecured Senior notes $ 9,900,000 $ 10,043,445 Revolving credit facilities 827,000 602,000 Term financings 807,830 607,340 Total unsecured debt financing 11,534,830 11,252,785 Secured Term financings 426,724 371,203 Export credit financing 36,601 38,265 Total secured debt financing 463,325 409,468 Total debt financing 11,998,155 11,662,253 Less: Debt discounts and issuance costs (128,484) (123,348) Debt financing, net of discounts and issuance costs $ 11,869,671 $ 11,538,905 |
Schedule of secured obligations | The Company’s secured obligations as of March 31, 2019 and December 31, 2018 are summarized below (dollars in thousands): March 31, December 31, 2019 2018 Nonrecourse $ 158,808 $ 167,245 Recourse 304,517 242,223 Total secured debt financing $ 463,325 $ 409,468 Number of aircraft pledged as collateral 18 20 Net book value of aircraft pledged as collateral $ 972,237 $ 1,132,111 |
Schedule of maturities of debt outstanding | Maturities of debt outstanding as of March 31, 2019 are as follows (in thousands): Years ending December 31, 2019 $ 128,867 2020 1,461,270 2021 1,693,524 2022 3,338,472 2023 1,878,376 Thereafter 3,497,646 Total $ 11,998,155 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies | |
Schedule of commitments to acquire aircraft | Aircraft Type 2019 2020 2021 2022 2023 Thereafter Total Airbus A320/321neo (1) 20 40 22 25 25 — 132 Airbus A330-900neo 8 2 5 6 2 — 23 Airbus A350-900/1000 3 3 6 3 2 — 17 Boeing 737-7/8/9 MAX 13 42 34 34 25 5 153 Boeing 787-9/10 9 11 7 9 — — 36 Total (2) 53 98 74 77 54 5 361 (1) Our Airbus A320/321neo aircraft orders include 57 long-range variants. (2) In addition to the aircraft from our orderbook, we have a commitment to purchase two used Airbus A330-300 aircraft from a third party, which are scheduled for delivery in 2019. |
Schedule of commitments for the acquisition of aircraft and other equipment at an estimated aggregate purchase price | Commitments for the acquisition of aircraft and other equipment, calculated at an estimated aggregate purchase price (including adjustments for inflation) was approximately $25.2 billion at March 31, 2019, and are due as follows (in thousands): Years ending December 31, 2019 $ 4,529,679 2020 6,669,957 2021 5,635,590 2022 5,243,887 2023 2,896,636 Thereafter 221,130 Total $ 25,196,879 |
Rental Income (Tables)
Rental Income (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Rental Income | |
Schedule of minimum future rentals on non-cancellable operating leases of flight equipment | At March 31, 2019, minimum future rentals on non-cancellable operating leases of flight equipment in our fleet, which have been delivered as of March 31, 2019, are as follows (in thousands): Years ending December 31, 2019 (excluding the three months ended March 31, 2019) $ 1,342,732 2020 1,744,027 2021 1,645,725 2022 1,517,139 2023 1,318,164 Thereafter 4,626,135 Total $ 12,193,922 |
Net Earnings Per Share (Tables)
Net Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Net Earnings Per Share | |
Schedule of reconciliation of basic and diluted net income per share | The following table sets forth the reconciliation of basic and diluted earnings per share (in thousands, except share and per share amounts): Three Months Ended March 31, 2019 2018 Basic earnings per share: Numerator Net income available to common stockholders 138,094 110,651 Denominator Weighted-average common shares outstanding 111,018,279 103,747,920 Basic earnings per share $ 1.24 $ 1.07 Diluted earnings per share: Numerator Net income available to common stockholders $ 138,094 $ 110,651 Assumed conversion of convertible senior notes — 1,739 Net income available to common stockholders plus assumed conversions $ 138,094 $ 112,390 Denominator Number of shares used in basic computation 111,018,279 103,747,920 Weighted-average effect of dilutive securities 1,362,577 8,482,490 Number of shares used in per share computation 112,380,856 112,230,410 Diluted earnings per share $ 1.23 $ 1.00 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stock-based Compensation | |
Summary of stock option activity | Remaining Aggregate Exercise Contractual Term Intrinsic Value Shares Price (in years) (in thousands) (1) Balance at December 31, 2018 2,620,295 $ 20.40 1.49 $ 25,697 Granted — $ — — $ — Exercised (34,000) $ 20.00 — $ 522 Forfeited/canceled — $ — — $ — Balance at March 31, 2019 2,586,295 $ 20.41 1.24 $ 36,057 Vested and exercisable as of March 31, 2019 2,586,295 $ 20.41 1.24 $ 36,057 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of our Class A common stock as of the respective date. |
Summary of additional information regarding exercisable and vested stock options | Stock Options Exercisable and Vested Weighted- Average Number of Remaining Life Range of exercise prices Shares (in years) $20.00 2,466,295 1.20 $28.80 120,000 2.07 $20.00 - $28.80 2,586,295 1.24 |
Summary of activities for unvested RSUs | Unvested Restricted Stock Units Weighted-Average Number of Grant-Date Shares Fair Value Unvested at December 31, 2018 1,055,325 $ 41.66 Granted 600,827 $ 39.72 Vested (236,373) $ 34.49 Forfeited/canceled (167,769) $ 29.61 Unvested at March 31, 2019 1,252,010 $ 43.70 Expected to vest after March 31, 2019 1,338,537 $ 43.55 |
Company Background and Overvi_2
Company Background and Overview (Details) | 3 Months Ended |
Mar. 31, 2019aircraft | |
Organization | |
Number of aircraft owned | 280 |
Number of aircraft managed | 65 |
Number of aircraft on order with manufacturers | 361 |
Basis of Preparation and Crit_3
Basis of Preparation and Critical Accounting Policies - Recently adopted accounting standards (Details) - ASU 2016-02 - Adjustment $ in Millions | Jan. 01, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Operating ROU lease assets | $ 44.6 |
Lease obligations | $ 51.2 |
Debt Financing (Details)
Debt Financing (Details) $ in Thousands | May 05, 2019USD ($) | Feb. 28, 2019USD ($) | Mar. 31, 2019USD ($)aircraft | Jan. 31, 2019USD ($) | Dec. 31, 2018USD ($)aircraft |
Debt financing | |||||
Total debt financing | $ 11,998,155 | $ 11,662,253 | |||
Less: Debt discounts and issuance costs | (128,484) | (123,348) | |||
Debt financing, net of discounts and issuance costs | 11,869,671 | 11,538,905 | |||
Unsecured Debt | |||||
Debt financing | |||||
Total debt financing | 11,534,830 | 11,252,785 | |||
Senior Notes | |||||
Debt financing | |||||
Total debt financing | 9,900,000 | 10,043,445 | |||
Medium Term Note Program 4.25 Percent Due 2024 | |||||
Secured Obligations | |||||
Principal amount issued | $ 700,000 | ||||
Interest rate (as a percent) | 4.25% | ||||
Unsecured Term financings | |||||
Debt financing | |||||
Total debt financing | 807,830 | 607,340 | |||
Revolving Credit Facilities | |||||
Debt financing | |||||
Total debt financing | 827,000 | 602,000 | |||
Secured Obligations | |||||
Maximum borrowing capacity | 4,700,000 | ||||
Incremental borrowing capacity | 135,000 | ||||
Unsecured Revolving Credit Facility Maturing on May 5, 2020 | Subsequent Event | |||||
Secured Obligations | |||||
Line of credit maturity amount | $ 92,700 | ||||
Unsecured Revolving Credit Facility Mature On 5 May 2021 | Subsequent Event | |||||
Secured Obligations | |||||
Line of credit maturity amount | 5,000 | ||||
Unsecured Revolving Credit Facility Mature On 5 May 2022 | Subsequent Event | |||||
Secured Obligations | |||||
Line of credit maturity amount | 245,000 | ||||
Unsecured Revolving Credit Facility Mature On 5 May 2023 | Subsequent Event | |||||
Secured Obligations | |||||
Maximum borrowing capacity | $ 5,800,000 | ||||
Incremental borrowing capacity increase percentage | 27.00% | ||||
Line of credit maturity amount | $ 5,400,000 | ||||
Facility fee (as a percent) | 0.20% | ||||
Unsecured Revolving Credit Facility Mature On 5 May 2023 | LIBOR | Subsequent Event | |||||
Secured Obligations | |||||
Interest margin (as a percent) | 1.05% | ||||
Uncommitted Unsecured Revolving Credit Facility Mature on 31 January 2020 | |||||
Secured Obligations | |||||
Maximum borrowing capacity | $ 100,000 | ||||
Uncommitted Unsecured Revolving Credit Facility Mature on 31 January 2020 | LIBOR | |||||
Secured Obligations | |||||
Interest margin (as a percent) | 0.90% | ||||
Secured Debt | |||||
Debt financing | |||||
Total debt financing | 463,325 | 409,468 | |||
Secured Obligations | |||||
Nonrecourse | 158,808 | 167,245 | |||
Recourse | 304,517 | 242,223 | |||
Total secured debt financing | $ 463,325 | $ 409,468 | |||
Number of aircraft pledged as collateral | aircraft | 18 | 20 | |||
Net book value of aircraft pledged as collateral | $ 972,237 | $ 1,132,111 | |||
Export Credit Financing | |||||
Debt financing | |||||
Total debt financing | 36,601 | 38,265 | |||
Term Financings | |||||
Debt financing | |||||
Total debt financing | $ 426,724 | $ 371,203 |
Debt Financing - Maturities of
Debt Financing - Maturities of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Maturities | ||
2019 | $ 128,867 | |
2020 | 1,461,270 | |
2021 | 1,693,524 | |
2022 | 3,338,472 | |
2023 | 1,878,376 | |
Thereafter | 3,497,646 | |
Total | $ 11,998,155 | $ 11,662,253 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | May 09, 2019lease | Mar. 31, 2019USD ($)aircraftitem | Dec. 31, 2018USD ($) |
Commitments to acquire aircraft | |||
Minimum aircraft delivery delays that could trigger lessee cancellation clauses (in years) | 1 year | ||
Lease contracts, subject to cancellation | lease | 0 | ||
Commitments for the acquisition of the aircraft and other equipment | |||
2019 | $ | $ 4,529,679 | ||
2020 | $ | 6,669,957 | ||
2021 | $ | 5,635,590 | ||
2022 | $ | 5,243,887 | ||
2023 | $ | 2,896,636 | ||
Thereafter | $ | 221,130 | ||
Total | $ | $ 25,196,879 | ||
Aircrafts | |||
Commitments to acquire aircraft | |||
2019 | 53 | ||
2020 | 98 | ||
2021 | 74 | ||
2022 | 77 | ||
2023 | 54 | ||
Thereafter | 5 | ||
Total | 361 | ||
Commitments for the acquisition of the aircraft and other equipment | |||
Deposit Assets | $ | $ 1,900,000 | $ 1,800,000 | |
Airbus A320/321neo | |||
Commitments to acquire aircraft | |||
2019 | 20 | ||
2020 | 40 | ||
2021 | 22 | ||
2022 | 25 | ||
2023 | 25 | ||
Total | 132 | ||
Number of long-range variants | item | 57 | ||
Airbus A330-900neo | |||
Commitments to acquire aircraft | |||
2019 | 8 | ||
2020 | 2 | ||
2021 | 5 | ||
2022 | 6 | ||
2023 | 2 | ||
Total | 23 | ||
Airbus A350-900/1000 | |||
Commitments to acquire aircraft | |||
2019 | 3 | ||
2020 | 3 | ||
2021 | 6 | ||
2022 | 3 | ||
2023 | 2 | ||
Total | 17 | ||
Boeing 737-7/8/9 MAX | |||
Commitments to acquire aircraft | |||
2019 | 13 | ||
2020 | 42 | ||
2021 | 34 | ||
2022 | 34 | ||
2023 | 25 | ||
Thereafter | 5 | ||
Total | 153 | ||
Boeing 787-9/10 | |||
Commitments to acquire aircraft | |||
2019 | 9 | ||
2020 | 11 | ||
2021 | 7 | ||
2022 | 9 | ||
Total | 36 | ||
Airbus A330-300 | |||
Commitments for the acquisition of the aircraft and other equipment | |||
Aircraft to be acquired under non-binding commitment | 2 | ||
Airbus A350-1000 | Maximum | |||
Commitments for the acquisition of the aircraft and other equipment | |||
Aircraft to be acquired under non-binding commitment | 5 | ||
Boeing 737-8 MAX Aircraft | Maximum | |||
Commitments for the acquisition of the aircraft and other equipment | |||
Aircraft to be acquired under non-binding commitment | 30 |
Rental Income (Details)
Rental Income (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Minimum future rentals on non-cancelable operating leases of flight equipment | |
2019 (excluding the three months ended March 31, 2019) | $ 1,342,732 |
2020 | 1,744,027 |
2021 | 1,645,725 |
2022 | 1,517,139 |
2023 | 1,318,164 |
Thereafter | 4,626,135 |
Total | $ 12,193,922 |
Net Earnings Per Share (Details
Net Earnings Per Share (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)item$ / sharesshares | Mar. 31, 2018USD ($)$ / sharesshares | |
Anti-dilutive securities | ||
Number of classes of common stock | item | 2 | |
Numerator | ||
Net income available to common stockholders | $ | $ 138,094 | $ 110,651 |
Denominator | ||
Weighted-average common shares outstanding | 111,018,279 | 103,747,920 |
Basic earnings per share (in dollars per share) | $ / shares | $ 1.24 | $ 1.07 |
Numerator | ||
Net income available to common stockholders | $ | $ 138,094 | $ 110,651 |
Assumed conversion of convertible senior notes | $ | 1,739 | |
Net income plus assumed conversions | $ | $ 138,094 | $ 112,390 |
Denominator | ||
Number of shares used in basic computation | 111,018,279 | 103,747,920 |
Weighted-average effect of dilutive securities (in shares) | 1,362,577 | 8,482,490 |
Number of shares used in per share computation | 112,380,856 | 112,230,410 |
Diluted net income per share (in dollars per share) | $ / shares | $ 1.23 | $ 1 |
Restricted Stock Units | ||
Anti-dilutive securities | ||
Anti-dilutive securities excluded from the computation of diluted earnings per share (in shares) | 940,470 | 933,531 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Recurring and Non-recurring (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Recurring basis | ||
Fair Value Measurements | ||
Assets | $ 0 | $ 0 |
Liabilities | 0 | 0 |
Non-recurring basis | ||
Fair Value Measurements | ||
Assets | 0 | 0 |
Liabilities | $ 0 | $ 0 |
Fair Value Measurements - Debt
Fair Value Measurements - Debt Financing (Details) - USD ($) $ in Billions | Mar. 31, 2019 | Dec. 31, 2018 |
Book Value | ||
Financial Instruments Not Measured at Fair Value | ||
Debt financing | $ 12 | $ 11.7 |
Level 2 | ||
Financial Instruments Not Measured at Fair Value | ||
Debt financing | $ 12 | $ 11.4 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | Mar. 05, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||
Common stock, shares issued | 10,000,000 | ||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 |
Preferred Stock, shares issued | 10,000,000 | 0 | |
Preferred Stock, shares outstanding | 10,000,000 | 0 | |
Preferred Stock, Liquidation Preference, Value | $ 250,000,000 | ||
Preferred Stock, rate (as a percent) | 6.15% | ||
Preferred Stock, Liquidation Preference, per share | $ 25 | ||
Preferred Stock, state amount | $ 25 | ||
Dividend Payable Beginning on 15 June 2019 | |||
Class of Stock [Line Items] | |||
Preferred Stock, rate (as a percent) | 6.15% | ||
Preferred Stock, term | 5 years | ||
Dividend Payable Beginning on 15 March 2024 | |||
Class of Stock [Line Items] | |||
Preferred Stock, redemption price (in dollars per share) | $ 25 | ||
Dividend Payable Beginning on 15 March 2024 | Three-Month LIBOR | |||
Class of Stock [Line Items] | |||
Preferred Stock, spread | 3.65% | ||
Class A Common Stock | |||
Class of Stock [Line Items] | |||
Common Stock, authorized shares | 500,000,000 | 500,000,000 | |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares issued | 111,118,169 | 110,949,850 | |
Common stock, shares outstanding | 111,118,169 | 110,949,850 | |
Class B Non-Voting Common Stock | |||
Class of Stock [Line Items] | |||
Common Stock, authorized shares | 10,000,000 | 10,000,000 | |
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares issued | 0 | 0 | |
Common stock, shares outstanding | 0 | 0 | |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred Stock, shares issued | 10,000,000 | 0 | |
Preferred Stock, shares outstanding | 10,000,000 | 0 | |
Preferred Stock, Liquidation Preference, Value | $ 250,000 | ||
Preferred Stock, rate (as a percent) | 6.15% |
Stock-based Compensation - Stoc
Stock-based Compensation - Stock Options (Details) $ / shares in Units, $ in Thousands | May 07, 2014shares | Mar. 31, 2019USD ($)item$ / sharesshares | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)$ / sharesshares |
Stock-based Compensation | ||||
Unrecognized compensation cost | $ 38,700 | |||
Equity Incentive Plan 2010 | ||||
Stock-based Compensation | ||||
Number of shares authorized | shares | 5,304,976 | |||
Shares included in the authorized shares which was previously reserved for issuance | shares | 304,976 | |||
Shares | ||||
Granted (in shares) | shares | 0 | |||
Employee and Directors Stock Options | ||||
Stock-based Compensation | ||||
Term of award | 10 years | |||
Vesting period | 3 years | |||
Stock-based compensation | $ 0 | $ 0 | ||
Unrecognized compensation cost | $ 0 | |||
Shares | ||||
Balance at the beginning of the period (in shares) | shares | 2,620,295 | |||
Exercised (in shares) | shares | (34,000) | |||
Balance at the end of the period (in shares) | shares | 2,586,295 | 2,620,295 | ||
Vested and exercisable at the end of the period (in shares) | shares | 2,586,295 | |||
Exercise Price | ||||
Balance at the beginning of the period (in dollars per share) | $ / shares | $ 20.40 | |||
Exercised (in dollars per share) | $ / shares | 20 | |||
Balance at the end of the period (in dollars per share) | $ / shares | 20.41 | $ 20.40 | ||
Vested and exercisable at the end of the period (in dollars per share) | $ / shares | $ 20.41 | |||
Remaining Contractual Term | ||||
Remaining Contractual Term (in years) | 1 year 2 months 27 days | 1 year 5 months 27 days | ||
Vested and exercisable | 1 year 2 months 27 days | |||
Aggregate Intrinsic Value | ||||
Balance at the beginning of the period | $ 25,697 | |||
Exercised | 522 | |||
Balance at the end of the period | 36,057 | $ 25,697 | ||
Vested and exercisable at the end of the period | $ 36,057 | |||
Restricted Stock Units | ||||
Stock-based Compensation | ||||
Number of different vesting criteria | item | 4 | |||
Stock-based compensation | $ 4,200 | $ 3,400 | ||
Restricted Stock Units | Vesting Tranche One | ||||
Stock-based Compensation | ||||
Vesting period | 3 years | |||
Restricted Stock Units | Vesting Tranche Three | ||||
Stock-based Compensation | ||||
Vesting period | 3 years | |||
Restricted Stock Units | Vesting Tranche Four | ||||
Stock-based Compensation | ||||
Vesting period | 3 years | |||
Restricted Stock Units | Minimum | Vesting Tranche Two | ||||
Stock-based Compensation | ||||
Vesting period | 1 year | |||
Restricted Stock Units | Maximum | Vesting Tranche Two | ||||
Stock-based Compensation | ||||
Vesting period | 2 years | |||
Restricted Stock With Total Shareholder Return Conditions | Minimum | ||||
Stock-based Compensation | ||||
Percentage of shares vested | 0.00% | |||
Restricted Stock With Total Shareholder Return Conditions | Maximum | ||||
Stock-based Compensation | ||||
Percentage of shares vested | 200.00% |
Stock-based Compensation - St_2
Stock-based Compensation - Stock Option Exercise Price (Details) | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
$20.00 | |
Stock options exercisable and vested by exercise price range | |
Exercise price (in dollars per share) | $ 20 |
Stock options exercisable and vested | |
Number of Shares | shares | 2,466,295 |
Weighted-Average Remaining Life (in years) | 1 year 2 months 12 days |
$28.80 | |
Stock options exercisable and vested by exercise price range | |
Exercise price (in dollars per share) | $ 28.80 |
Stock options exercisable and vested | |
Number of Shares | shares | 120,000 |
Weighted-Average Remaining Life (in years) | 2 years 26 days |
$20.00 - $28.80 | |
Stock options exercisable and vested | |
Number of Shares | shares | 2,586,295 |
Weighted-Average Remaining Life (in years) | 1 year 2 months 27 days |
Minimum | $20.00 - $28.80 | |
Stock options exercisable and vested by exercise price range | |
Exercise price (in dollars per share) | $ 20 |
Maximum | $20.00 - $28.80 | |
Stock options exercisable and vested by exercise price range | |
Exercise price (in dollars per share) | $ 28.80 |
Stock-based Compensation - Rest
Stock-based Compensation - Restricted Stock (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($)$ / sharesshares | |
Stock-based compensation expense | |
Unrecognized compensation cost | $ | $ 38.7 |
Weighted-average period of recognition of unrecognized stock-based compensation cost | 2 years 2 months 23 days |
Restricted Stock Units | |
Unvested Restricted Stock Units, Number of Shares | |
Unvested at the beginning of the period (in shares) | 1,055,325 |
Granted (in shares) | 600,827 |
Vested (in shares) | (236,373) |
Forfeited/canceled (in shares) | (167,769) |
Unvested at the end of the period (in shares) | 1,252,010 |
Expected to vest after the end of the period (in shares) | 1,338,537 |
Unvested Restricted Stock Units, Weighted-Average Grant-Date Fair Value | |
Unvested at the beginning of the period (in dollars per share) | $ / shares | $ 41.66 |
Granted (in dollars per share) | $ / shares | 39.72 |
Vested (in dollars per share) | $ / shares | 34.49 |
Forfeited/canceled (in dollars per share) | $ / shares | 29.61 |
Unvested at the end of the period (in dollars per share) | $ / shares | 43.70 |
Expected to vest after the end of the period (in dollars per share) | $ / shares | $ 43.55 |
Restricted Stock With Total Shareholder Return Conditions | |
Unvested Restricted Stock Units, Number of Shares | |
Granted (in shares) | 127,640 |
Investments (Details)
Investments (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)aircraftitem | Dec. 31, 2019aircraft | Dec. 31, 2018USD ($)aircraft | Aug. 01, 2018USD ($) | |
Blackbird I and Blackbird II | ||||
Investments | ||||
Number of joint ventures | item | 2 | |||
Equity method investment | $ 44,100,000 | $ 40,600,000 | ||
Blackbird Capital I | ||||
Investments | ||||
Percentage of equity ownership | 9.50% | |||
Blackbird Capital II | ||||
Investments | ||||
Percentage of equity ownership | 9.50% | |||
Total unfunded commitment | $ 30,500,000 | |||
Thunderbolt II | ||||
Investments | ||||
Non-controlling interest (as a percent) | 5.10% | |||
Cost Method Investments | $ 5,400,000 | $ 5,400,000 | ||
Aircraft Held For Sale | ||||
Investments | ||||
Number of aircraft sold or agreed to be sold | aircraft | 3 | 3 | 6 | |
Aircraft Held For Sale | Thunderbolt II | ||||
Investments | ||||
Number of aircraft sold or agreed to be sold | aircraft | 3 | |||
Long-lived assets held for sale | $ 18 | |||
Forecast | Aircraft Held For Sale | Thunderbolt II | ||||
Investments | ||||
Number of aircraft | aircraft | 3 |
Flight Equipment held for sale
Flight Equipment held for sale (Details) - Aircraft Held For Sale $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)aircraft | Dec. 31, 2019aircraft | Dec. 31, 2018USD ($)aircraft | |
Flight Equipment Held for Sale | |||
Number of aircraft sold or agreed to be sold | aircraft | 3 | 3 | 6 |
Flight Equipment, Net | $ | $ 107.6 | $ 241.6 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | May 08, 2019 | May 05, 2019 | May 31, 2019 | Mar. 31, 2019 | Mar. 31, 2018 |
Subsequent Events | |||||
Quarterly cash dividends on common stock | $ 0.13 | $ 0.10 | |||
Revolving Credit Facilities | |||||
Subsequent Events | |||||
Maximum borrowing capacity | $ 4,700 | ||||
Subsequent Event | |||||
Subsequent Events | |||||
Quarterly cash dividends on common stock | $ 0.13 | ||||
Subsequent Event | Unsecured Revolving Credit Facility Maturing on May 5, 2020 | |||||
Subsequent Events | |||||
Line of credit maturity amount | $ 92.7 | ||||
Subsequent Event | Unsecured Revolving Credit Facility Mature On 5 May 2021 | |||||
Subsequent Events | |||||
Line of credit maturity amount | 5 | ||||
Subsequent Event | Unsecured Revolving Credit Facility Mature On 5 May 2022 | |||||
Subsequent Events | |||||
Line of credit maturity amount | 245 | ||||
Subsequent Event | Unsecured Revolving Credit Facility Mature On 5 May 2023 | |||||
Subsequent Events | |||||
Maximum borrowing capacity | $ 5,800 | ||||
Incremental borrowing capacity increase percentage | 27.00% | ||||
Facility fee (as a percent) | 0.20% | ||||
Line of credit maturity amount | $ 5,400 | ||||
Subsequent Event | Unsecured Revolving Credit Facility Mature On 5 May 2023 | LIBOR | |||||
Subsequent Events | |||||
Interest margin (as a percent) | 1.05% | ||||
Subsequent Event | Series A Preferred Stock | |||||
Subsequent Events | |||||
Dividend declared per share of Series A preferred stock | $ 0.427083 | ||||
Subsequent Event | Dividend Declared | Class A Common Stock | |||||
Subsequent Events | |||||
Quarterly cash dividends on common stock | $ 0.13 |