Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-50368 | ||
Entity Registrant Name | Air Transport Services Group, Inc. | ||
Entity Central Index Key | 0000894081 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-1631624 | ||
Entity Address, Address Line One | 145 Hunter Drive | ||
Entity Address, City or Town | Wilmington | ||
Entity Address, State or Province | OH | ||
Entity Address, Postal Zip Code | 45177 | ||
City Area Code | 937 | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Local Phone Number | 382-5591 | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Trading Symbol | ATSG | ||
Entity Public Float | $ 1,416,475,681 | ||
Entity Common Stock, Shares Outstanding | 59,329,431 | ||
Documents Incorporated by Reference [Text Block] | Portions of the Proxy Statement for the Annual Meeting of Stockholders scheduled to be held May 7, 2020 are incorporated by reference into Parts II and III. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash, cash equivalents and restricted cash | $ 46,201 | $ 59,322 |
Accounts receivable, net of allowance of $975 in 2019 and $1,444 in 2018 | 162,870 | 147,755 |
Inventory | 37,397 | 33,536 |
Prepaid supplies and other | 20,323 | 18,608 |
TOTAL CURRENT ASSETS | 266,791 | 259,221 |
Property and equipment, net | 1,766,020 | 1,555,005 |
Lease incentive | 146,678 | 63,780 |
Other assets | 68,733 | 57,220 |
Goodwill and acquired intangibles | 527,654 | 535,359 |
Operating lease assets | 44,302 | 0 |
Intangibles | 131,680 | 144,614 |
Goodwill | 395,974 | 390,745 |
TOTAL ASSETS | 2,820,178 | 2,470,585 |
CURRENT LIABILITIES: | ||
Accounts payable | 141,094 | 109,843 |
Accrued salaries, wages and benefits | 59,429 | 50,932 |
Accrued expenses | 17,586 | 19,623 |
Current portion of debt obligations | 14,707 | 29,654 |
Current portion of lease obligations | 12,857 | 0 |
Unearned revenue | 17,566 | 19,082 |
TOTAL CURRENT LIABILITIES | 263,239 | 229,134 |
Long term debt | 1,469,677 | 1,371,598 |
Post-retirement obligations | 36,744 | 64,485 |
Long term lease obligations | 30,334 | 0 |
Other liabilities | 49,293 | 51,905 |
Stock Warrants | 383,073 | 203,782 |
Deferred income taxes | 127,476 | 113,243 |
TOTAL LIABILITIES | 2,359,836 | 2,034,147 |
Commitments and contingencies (Note I) | ||
STOCKHOLDERS’ EQUITY: | ||
Preferred stock, 20,000,000 shares authorized, including 75,000 Series A Junior Participating Preferred Stock | 0 | 0 |
Common stock, par value $0.01 per share; 150,000,000 shares authorized; 59,329,431 and 59,134,173 shares issued and outstanding in 2019 and 2018, respectively | 593 | 591 |
Additional paid-in capital | 475,720 | 471,158 |
Retained earnings | 45,895 | 56,051 |
Accumulated other comprehensive loss | (61,866) | (91,362) |
TOTAL STOCKHOLDERS’ EQUITY | 460,342 | 436,438 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 2,820,178 | $ 2,470,585 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets, Current [Abstract] | ||
Allowance for doubtful accounts | $ 975 | $ 1,444 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 110,000,000 |
Common stock, shares issued (in shares) | 59,329,431 | 59,134,173 |
Common stock, shares outstanding (in shares) | 59,329,431 | 59,134,173 |
Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Series A Junior Participating Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 75,000 | 75,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES | $ 1,452,183 | $ 892,345 | $ 1,068,200 |
OPERATING EXPENSES | |||
Salaries, wages and benefits | 433,518 | 300,514 | 276,106 |
Fuel | 155,033 | 39,293 | 149,579 |
Maintenance, materials and repairs | 170,151 | 146,692 | 141,575 |
Depreciation and amortization | 257,532 | 178,895 | 154,556 |
Travel | 90,993 | 34,443 | 27,390 |
Contracted ground and aviation services | 64,076 | 16,640 | 147,092 |
Rent | 16,006 | 13,899 | 13,629 |
Landing and ramp | 11,184 | 5,968 | 22,271 |
Insurance | 7,342 | 6,112 | 4,820 |
Transaction fees | 373 | 5,264 | 0 |
Other operating expenses | 68,978 | 33,607 | 31,782 |
Operating Expenses | 1,275,186 | 781,327 | 968,800 |
OPERATING INCOME | 176,997 | 111,018 | 99,400 |
OTHER INCOME (EXPENSE) | |||
Interest income | 370 | 251 | 116 |
Non-service component of retiree benefit costs | (9,404) | 8,180 | (6,105) |
Non-service component of retiree benefit (costs) gains | (66,644) | (28,799) | (17,023) |
Net gain (loss) on financial instruments | (12,302) | 7,296 | (79,789) |
Other Nonoperating Income (Expense) | (105,425) | (23,540) | (105,936) |
EARNINGS (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 71,572 | 87,478 | (6,536) |
INCOME TAX BENEFIT (EXPENSE) | (11,589) | (19,595) | 28,276 |
EARNINGS FROM CONTINUING OPERATIONS | 59,983 | 67,883 | 21,740 |
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES | 1,219 | 1,402 | (3,245) |
NET EARNINGS | $ 61,202 | $ 69,285 | $ 18,495 |
BASIC EARNINGS (LOSS) PER SHARE | |||
Basic earnings per share from continuing operations (in dollars per share) | $ 1.02 | $ 1.16 | $ 0.37 |
Discontinued operations (in dollars per share) | 0.02 | 0.02 | (0.06) |
TOTAL BASIC EARNINGS PER SHARE (in dollars per share) | 1.04 | 1.18 | 0.31 |
DILUTED EARNINGS (LOSS) PER SHARE | |||
Diluted earnings per share from continuing operations (in dollars per share) | 0.78 | 0.89 | 0.36 |
Discontinued operations (in dollars per share) | 0.01 | 0.02 | (0.05) |
TOTAL DILUTED NET EARNINGS PER SHARE (in dollars per share) | $ 0.79 | $ 0.91 | $ 0.31 |
WEIGHTED AVERAGE SHARES | |||
Basic (in shares) | 58,899 | 58,765 | 58,907 |
Diluted (in shares) | 69,348 | 68,356 | 59,686 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
NET EARNINGS | $ 61,202 | $ 69,285 | $ 18,495 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1,467 | (131) | 129 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | 20,800 | (40,934) | 3,179 |
TOTAL COMPREHENSIVE INCOME, net of tax | 90,698 | 40,943 | 35,341 |
Pension Plans [Member] | |||
Other comprehensive income (loss), net of tax | 27,890 | (28,467) | 16,513 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | 20,793 | (41,051) | 3,116 |
Income tax (expense) or benefit | (8,431) | 9,037 | (7,304) |
Post-Retirement Plans [Member] | |||
Other comprehensive income (loss), net of tax | 139 | 256 | 204 |
OTHER COMPREHENSIVE INCOME (LOSS): | |||
Actuarial gain (loss) for retiree liabilities | 7 | 117 | 63 |
Income tax (expense) or benefit | $ (40) | $ (80) | $ (91) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Write off of Deferred Debt Issuance Cost | $ 17,445 | $ 10,468 | $ 3,135 |
Purchase of common stock | 0 | (3,581) | (11,184) |
Withholding taxes paid for conversion of employee stock awards | 2,438 | 2,325 | 2,914 |
OPERATING ACTIVITIES: | |||
Net earnings from continuing operations | 59,983 | 67,883 | 21,740 |
Net earnings (loss) from discontinued operations | 1,219 | 1,402 | (3,245) |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation and amortization | 285,353 | 204,559 | 170,751 |
Pension and post-retirement | 15,700 | 3,766 | 20,933 |
Deferred income taxes | 10,478 | 18,986 | (30,771) |
Amortization of stock-based compensation | 7,002 | 5,047 | 3,632 |
Net (gain) loss on financial instruments | 10,000 | 8 | (1,400) |
Changes in assets and liabilities: | |||
Accounts receivable | (14,551) | 25,380 | (31,313) |
Inventory and prepaid supplies | (6,493) | (3,273) | (4,107) |
Accounts payable | 3,340 | 10,724 | 23,500 |
Unearned revenue | 1,446 | (3,824) | (7,331) |
Accrued expenses, salaries, wages, benefits and other liabilities | 13,390 | 3,605 | 780 |
Pension and post-retirement assets | (12,132) | (35,293) | (13,083) |
Other | 2,456 | (4,109) | 582 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 396,938 | 298,025 | 234,992 |
INVESTING ACTIVITIES: | |||
Expenditures for property and equipment | (453,502) | (292,915) | (296,939) |
Proceeds from property and equipment | 10,804 | 17,570 | 381 |
Investment in nonconsolidated affiliate | (24,360) | (866,558) | (11,792) |
Redemption of long term deposits | 0 | 0 | 9,975 |
NET CASH (USED IN) INVESTING ACTIVITIES | (467,058) | (1,141,903) | (298,375) |
FINANCING ACTIVITIES: | |||
Principal payments on long term obligations | (39,500) | (58,640) | (254,446) |
Proceeds from borrowings | 100,018 | 945,000 | 115,000 |
Proceeds from convertible notes | 0 | 0 | 258,750 |
Payments for financing costs | (1,081) | (9,953) | (7,887) |
Purchase convertible note hedges | 0 | 0 | (56,097) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 56,999 | 870,501 | 79,724 |
Proceeds from issuance of warrants | 0 | 0 | 38,502 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (13,121) | 26,623 | 16,341 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 59,322 | 32,699 | 16,358 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 46,201 | 59,322 | 32,699 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Interest paid, net of amount capitalized | 57,546 | 17,278 | 13,693 |
Federal alternative minimum and state income taxes paid | 1,294 | 1,213 | 1,938 |
SUPPLEMENTAL NON-CASH INFORMATION: | |||
Accrued expenditures for property and equipment | 38,396 | 11,234 | 25,142 |
Net (gain) loss on financial instruments | (12,302) | 7,296 | (79,789) |
Accrued consideration for acquisition | $ 0 | $ 7,845 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at at Dec. 31, 2016 | $ 331,902 | $ 595 | $ 443,416 | $ (32,243) | $ (79,866) |
Balance at (in shares) at Dec. 31, 2016 | 59,461,291 | ||||
Stock-based compensation plans | |||||
Grant of restricted stock | 0 | $ 1 | (1) | ||
Grant of restricted stock (in shares) | 113,000 | ||||
Issuance of common shares, net of withholdings | (2,914) | $ 0 | (2,914) | ||
Withholdings of common shares, net of issuances (in shares) | 17,441 | ||||
Forfeited restricted stock | 0 | $ 0 | 0 | ||
Stock Repurchased and Retired During Period, Shares | (530,637) | ||||
Stock Repurchased and Retired During Period, Value | (11,184) | $ (5) | (11,179) | ||
Adjustments to Additional Paid in Capital, Warrant Issued | 38,502 | (38,502) | |||
Forfeited restricted stock (in shares) | (3,900) | ||||
Amortization of stock awards and restricted stock | 3,632 | 3,632 | |||
Total comprehensive income (loss) | 35,341 | 18,495 | 16,846 | ||
Balance at at Dec. 31, 2017 | 395,279 | $ 591 | 471,456 | (13,748) | (63,020) |
Balance at (in shares) at Dec. 31, 2017 | 59,057,195 | ||||
Stock-based compensation plans | |||||
Grant of restricted stock | 0 | $ 2 | (2) | ||
Grant of restricted stock (in shares) | 198,900 | ||||
Issuance of common shares, net of withholdings | (2,329) | $ 0 | (2,329) | ||
Issuance of common shares, net of withholdings (in shares) | 36,378 | ||||
Forfeited restricted stock | 0 | $ 0 | 0 | ||
Stock Repurchased and Retired During Period, Shares | (157,000) | ||||
Stock Repurchased and Retired During Period, Value | (3,580) | $ (2) | (3,578) | ||
Bond hedge reclassification | 50,435 | (50,435) | |||
Note conversion obligation reclassification | 50,999 | 50,999 | |||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2014-09 [Member] | 514 | 514 | |||
Forfeited restricted stock (in shares) | (1,300) | ||||
Amortization of stock awards and restricted stock | 5,047 | 5,047 | |||
Total comprehensive income (loss) | 40,943 | 69,285 | (28,342) | ||
Balance at at Dec. 31, 2018 | $ 436,438 | $ 591 | 471,158 | 56,051 | (91,362) |
Balance at (in shares) at Dec. 31, 2018 | 59,134,173 | 59,134,173 | |||
Stock-based compensation plans | |||||
Grant of restricted stock | $ 0 | $ 2 | (2) | ||
Grant of restricted stock (in shares) | 151,300 | ||||
Issuance of common shares, net of withholdings | (2,438) | $ 0 | (2,438) | ||
Withholdings of common shares, net of issuances (in shares) | 46,958 | ||||
Forfeited restricted stock | 0 | $ 0 | 0 | ||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | Accounting Standards Update 2016-02 [Member] | (71,358) | (71,358) | |||
Forfeited restricted stock (in shares) | (3,000) | ||||
Amortization of stock awards and restricted stock | 7,002 | 7,002 | |||
Total comprehensive income (loss) | 90,698 | 61,202 | 29,496 | ||
Balance at at Dec. 31, 2019 | $ 460,342 | $ 593 | $ 475,720 | $ 45,895 | $ (61,866) |
Balance at (in shares) at Dec. 31, 2019 | 59,329,431 | 59,329,431 |
Summary of Financial Statement
Summary of Financial Statement Preparation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Financial Statement Preparation and Significant Accounting Policies | SUMMARY OF FINANCIAL STATEMENT PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Air Transport Services Group, Inc. is a holding company whose subsidiaries lease aircraft, provide contracted airline operations, ground services, aircraft modification and maintenance services and other support services mainly to the air transportation, e-commerce and package delivery industries. The Company's subsidiaries offer a range of complementary services to delivery companies, freight forwarders, airlines and government customers. The Company's leasing subsidiary, Cargo Aircraft Management, Inc. (“CAM”), leases aircraft to each of the Company's airlines as well as to non-affiliated airlines and other lessees. The Company's airlines, ABX Air, Inc. (“ABX”), Air Transport International, Inc. (“ATI”) and Omni Air International, LLC ("OAI" ) each have the authority, through their separate U.S. Department of Transportation ("DOT") and Federal Aviation Administration ("FAA") certificates, to transport cargo worldwide. The Company provides air transportation services to a concentrated base of customers. The Company provides a combination of aircraft, crews, maintenance and insurance services for a customer's transportation network through customer "CMI" and "ACMI" agreements and through charter contracts in which aircraft fuel is also included. In addition to its aircraft leasing and airline services, the Company sells aircraft parts, provides aircraft maintenance and modification services, equipment maintenance services and arranges load transfer and package sorting services for customers. Basis of Presentation The accompanying consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Inter-company balances and transactions are eliminated. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Investments in affiliates in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Under the equity method, the Company’s share of the nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Investments in affiliates in which the Company does not exercise control or have significant influence are reflected at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. On November 9, 2018, the Company acquired OAI, a passenger airline, along with related entities Advanced Flight Services, LLC; Omni Aviation Leasing, LLC; and T7 Aviation Leasing, LLC (referred to collectively herein as "Omni"). OAI is a leading provider of contracted passenger airlift for the U.S. Department of Defense ("DoD") via the Civil Reserve Air Fleet ("CRAF") program, and a provider of full-service passenger charter and ACMI services. OAI carries passengers worldwide for a variety of private sector customers and other government services agencies. Revenues and operating expenses include the activities of Omni for periods since their acquisition by the Company on November 9, 2018. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Estimates and assumptions are used to record allowances for uncollectible amounts, self-insurance reserves, spare parts inventory, depreciation and impairments of property, equipment, goodwill and intangibles, stock warrants and other financial instruments, post-retirement obligations, income taxes, contingencies and litigation. Changes in estimates and assumptions may have a material impact on the consolidated financial statements. Cash and Cash Equivalents The Company classifies short-term, highly liquid investments with maturities of three months or less at the time of purchase as cash and cash equivalents. These investments, consisting of money market funds, are recorded at cost, which approximates fair value. Substantially all deposits of the Company’s cash are held in accounts that exceed federally insured limits. The Company deposits cash in common financial institutions which management believes are financially sound. Cash includes restricted cash of $10.6 million as of December 31, 2019 and $5.3 million as of December 31, 2018. Restricted cash consists of customers’ deposits held in an escrow account as required by DOT regulations. The cash is restricted to the extent of customers’ deposits on flights not yet flown. Restricted cash is released from escrow upon completion of specific flights, which are scheduled to occur within the twelve months. Accounts Receivable and Allowance for Uncollectible Accounts The Company's accounts receivable is primarily due from its significant customers (see Note D), other airlines, delivery companies and freight forwarders. The Company performs a quarterly evaluation of the accounts receivable and the allowance for uncollectible accounts by reviewing specific customers' recent payment history, growth prospects, financial condition and other factors that may impact a customer's ability to pay. The Company establishes allowances for uncollectible accounts for probable losses due to a customer's potential inability or unwillingness to make contractual payments. Account balances are written off against the allowances when the Company ceases collection efforts. Inventory The Company’s inventory is comprised primarily of expendable aircraft parts and supplies used for aircraft maintenance. Inventory is generally charged to expense when issued for use on a Company aircraft. The Company values its inventory of aircraft parts and supplies at weighted-average cost and maintains a related obsolescence reserve. The Company records an obsolescence reserve on a base stock of inventory. The Company monitors the usage rates of inventory parts and segregates parts that are technologically outdated or no longer used in its fleet types. Slow moving and segregated items are actively marketed and written down to their estimated net realizable values based on market conditions. Management analyzes the inventory reserve for reasonableness at the end of each quarter. That analysis includes consideration of the expected fleet life, amounts expected to be on hand at the end of a fleet life, and recent events and conditions that may impact the usability or value of inventory. Events or conditions that may impact the expected life, usability or net realizable value of inventory include additional aircraft maintenance directives from the FAA, changes in DOT regulations, new environmental laws and technological advances. Goodwill and Intangible Assets The Company assesses, during the fourth quarter of each year, the carrying value of goodwill. The assessment requires an estimation of fair value of each reporting unit that has goodwill. The goodwill impairment test requires a comparison of the fair value of the reporting unit to its respective carrying value. If the carrying value of a reporting unit is less than its fair value no impairment exists. If the carrying amount of a reporting unit is higher than its fair value an impairment loss is recorded for the difference and charged to operations. The Company assesses, during the fourth quarter of each year, whether it is more likely than not that an indefinite-lived intangible asset is impaired by considering all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. The Company also conducts impairment assessments of goodwill, indefinite-lived intangible assets and finite-lived intangible assets whenever events or changes in circumstance indicate an impairment may have occurred. Finite-lived intangible assets are amortized over their estimated useful economic lives. Property and Equipment Property and equipment held for use is stated at cost, net of any impairment recorded. The cost and accumulated depreciation of disposed property and equipment are removed from the accounts with any related gain or loss reflected in earnings from operations. Depreciation of property and equipment is provided on a straight-line basis over the lesser of the asset’s useful life or lease term. Depreciable lives are summarized as follows: Boeing 777, 767, 757 and 737 aircraft and flight equipment 7 to 18 years Ground equipment 3 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years The Company periodically evaluates the useful lives, salvage values and fair values of property and equipment. Acceleration of depreciation expense or the recording of significant impairment losses could result from changes in the estimated useful lives of assets due to a number of reasons, such as excess aircraft capacity or changes in regulations governing the use of aircraft. Aircraft and other long-lived assets are tested for impairment when circumstances indicate the carrying value of the assets may not be recoverable. To conduct impairment testing, the Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset group are less than the carrying value. If impairment exists, an adjustment is recorded to write the assets down to fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined considering quoted market values, discounted cash flows or internal and external appraisals, as applicable. For assets held for sale, impairment is recognized when the fair value less the cost to sell the asset is less than the carrying value. The Company’s accounting policy for major airframe and engine maintenance varies by subsidiary and aircraft type. The costs of airframe maintenance for Boeing 767-200 aircraft operated by ABX are expensed as they are incurred. The costs of major airframe maintenance for the Company's other aircraft are capitalized and amortized over the useful life of the overhaul. Many of the Company's General Electric CF6 engines that power the Boeing 767-200 aircraft are maintained under a "power by the cycle" agreement with an engine maintenance provider. Further, in May 2017, the Company entered into similar maintenance agreements for certain General Electric CF6 engines that power many of the Company's Boeing 767-300 aircraft. Under these agreements, the engines are maintained by the service provider for a fixed fee per cycle. As a result, the cost of maintenance for these engines is generally expensed as flights occur. Maintenance for the airlines’ other aircraft engines, including Boeing 777 and Boeing 757 aircraft, are typically contracted to service providers on a time and material basis and the costs of those engine overhauls are capitalized and amortized over the useful life of the overhaul. For aircraft leased from external lessors, the Company may be required to make periodic payments to the lessor under certain aircraft leases for future maintenance events such as engine overhauls and major airframe maintenance. Such payments are recorded as deposits until drawn for qualifying maintenance costs. The maintenance costs are expensed or capitalized in accordance with the airline's accounting policy for major airframe and engine maintenance. The Company evaluates at the balance sheet date, whether it is probable that an amount on deposit will be returned by the lessor to reimburse the costs of the maintenance activities. When it is less than probable that a deposit will be returned, it is recognized as additional maintenance expense. Capitalized Interest Interest costs incurred while aircraft are being modified are capitalized as an additional cost of the aircraft until the date the asset is placed in service. Capitalized interest was $3.7 million , $1.8 million and $1.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. Discontinued Operations A business component whose operations are discontinued is reported as discontinued operations if the cash flows of the component have been eliminated from the ongoing operations of the Company and represents a strategic shift that had a major impact on the Company. The results of discontinued operations are aggregated and presented separately in the consolidated statements of operations. Self-Insurance The Company is self-insured for certain workers’ compensation, employee healthcare, automobile, aircraft, and general liability claims. The Company maintains excess claim coverage with common insurance carriers to mitigate its exposure to large claim losses. The Company records a liability for reported claims and an estimate for incurred claims that have not yet been reported. Accruals for these claims are estimated utilizing historical paid claims data and recent claims trends. Other liabilities included $16.1 million and $17.6 million at December 31, 2019 and December 31, 2018 , respectively, for self-insured reserves. Changes in claim severity and frequency could result in actual claims being materially different than the costs accrued. Pension and Post-Retirement Benefits The funded status of any of the Company's defined benefit pension or post-retirement health care plans is the difference between the fair value of plan assets and the accumulated benefit obligations to plan participants. The over funded or underfunded status of a plan is reflected in the consolidated balance sheet as an asset for over funded plans, or as a liability for underfunded plans. The funded status is ordinarily re-measured annually at year end using the fair value of plans assets, market based discount rates and actuarial assumptions. Changes in the funded status of the plans as a result of re-measuring plan assets and benefit obligations, are recorded to accumulated comprehensive loss and amortized into expense using a corridor approach. The Company's corridor approach amortizes into earnings variances in plan assets and benefit obligations that are a result of the previous measurement assumptions when the net deferred variances exceed 10% of the greater of the market value of plan assets or the benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining service period to retirement date of active plan participants. Cost adjustments for plan amendments are also deferred and amortized over the expected working life or the life expectancy of plan participants. Irrevocable settlement transactions that relieve the Company from responsibilities of providing retiree benefits and significantly eliminate the Company's related risk may result in recognition of gains or losses from accumulated other comprehensive loss. Customer Security and Maintenance Deposits The Company's customer leases typically obligate the lessee to maintain the Company's aircraft in compliance with regulatory standards for flight and aircraft maintenance. The Company may require an aircraft lessee to pay a security deposit or provide a letter of credit until the expiration of the lease. Additionally, the Company's leases may require a lessee to make monthly payments toward future expenditures for scheduled heavy maintenance events. The Company records security and maintenance deposits in other liabilities. If a lease requires monthly maintenance payments, the Company is typically required to reimburse the lessee for costs they incur for scheduled heavy maintenance events after completion of the work and receipt of qualifying documentation. Reimbursements to the lessee are recorded against the previously paid maintenance deposits. Income Taxes Income taxes have been computed using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against net deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. All deferred income taxes are classified as noncurrent in the statement of financial position. The Company recognizes the benefit of a tax position taken on a tax return, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. An uncertain income tax position is not recognized if it has less than a 50% likelihood of being sustained. The Company recognizes interest and penalties accrued related to uncertain tax positions in operating expense. Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. Stock Warrants The Company’s accounting for warrants issued to a lessee is determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments. The warrants issued to a lessee are recorded as a lease incentive asset using their fair value at the time of issuance. The lease incentive is amortized against revenues over the duration of related aircraft leases. The unexercised warrants are classified in liabilities and re-measured to fair value at the end of each reporting period, resulting in a non-operating gain or loss. Comprehensive Income Comprehensive income includes net earnings and other comprehensive income or loss. Other comprehensive income or loss results from certain changes in the Company’s liabilities for pension and other post-retirement benefits, gains and losses associated with interest rate hedging instruments and fluctuations in currency exchange rates related to the foreign affiliate. Fair Value Information Assets or liabilities that are required to be measured at fair value are reported using the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820-10 Fair Value Measurements and Disclosures establishes three levels of input that may be used to measure fair value: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. Revenue Recognition Aircraft lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Revenues generated from airline service agreements are typically recognized based on hours flown or the amount of aircraft and crew resources provided during a reporting period. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are typically measured on a monthly basis and recorded to revenue in the corresponding month earned. Revenues for operating expenses that are reimbursed through airline service agreements, including consumption of aircraft fuel, are generally recognized net, as the costs are incurred. Revenues from charter service agreements are recognized on scheduled and non-scheduled flights when the specific flight has been completed. Contracts for the sale of aircraft parts typically result in the recognition of revenue when the parts are delivered. Effective January 1, 2018, the Company records revenues and estimated earnings over time for its airframe maintenance and aircraft modification contracts based on the percentage of costs completed. Prior to January 1, 2018, revenues earned and expenses incurred in providing aircraft-related maintenance, repair or modification services were usually recognized in the period in which the services were completed and delivered to the customer. Revenues derived from sorting parcels are recognized in the reporting period in which the services are performed. Accounting Standards Updates Effective January 1, 2018, the Company adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” ("Topic 606”) which superseded previous revenue recognition guidance. Topic 606 is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The Company's lease revenues within the scope of Accounting Standards Codification 840, Leases, ("Topic 840") are specifically excluded from Topic 606. The Company determined that under Topic 606, it is an agent for aviation fuel and certain other costs reimbursed by customers under its ACMI and CMI contracts and for certain cargo handling services that it arranges for a customer. Under Topic 606, such reimbursed amounts are reported net of the corresponding expenses beginning in 2018. This application of Topic 606 did not have a material impact on the Company's reported earnings in any period. Under Topic 606, the Company is required to record revenue over time, instead of at the time of completion, for certain customer contracts for airframe and modification services that do not have an alternative use and for which the Company has an enforceable right to payment during the service cycle. The Company adopted the provisions of this new standard using the modified retrospective method which required the Company to record a one-time adjustment to retained earnings for the cumulative effect that the standard had on open contracts at the time of adoption. In conjunction with the adoption of the new standard, the Company accelerated $3.6 million of revenue resulting in an immaterial adjustment to its January 1, 2018 retained deficit for open airframe and modification services contracts. Effective January 1, 2019, the Company adopted the FASB's ASU No. 2016-02, “Leases (Topic 842)” which superseded previous lease guidance ASC 840, Leases. Topic 842 is a new lease model that requires a company to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet. The Company adopted the standard using the modified retrospective approach that does not require the restatement of prior year financial statements. The adoption of Topic 842 did not have a material impact on the Company’s consolidated statement of operations and consolidated statement of cash flows. The adoption of Topic 842 resulted in the recognition of ROU assets and corresponding lease liabilities as of January 1, 2019 in the amount of $52.6 million for leases classified as operating leases. Topic 842 also applies to the Company's aircraft lease revenues, however, the adoption of Topic 842 did not have a significant impact on the Company's accounting for its customer lease agreements. The Company adopted the package of practical expedients and transition provisions available for expired or existing contracts, which allowed the Company to carryforward its historical assessments of 1) whether contracts are or contain leases, 2) lease classification, and 3) initial direct costs. Additionally, for real estate leases, the Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. The Company also elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Further, the Company elected the short-term lease exception policy, permitting it to exclude the recognition requirements for leases with terms of 12 months or less. See Note I for additional information about leases. In February 2018, the FASB issued ASU No. 2018-02 “Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income" ("ASU 2018-02"). ASU 2018-02 amends ASC 220, Income Statement - Reporting Comprehensive Income, to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. federal tax legislation known as the Tax Cuts and Jobs Act. ASU 2018-02 is effective for years beginning after December 15, 2018 and interim periods within those fiscal years. The Company elected to retain stranded tax effects in accumulated other comprehensive income. In June 2018, the FASB issued ASU No. 2018-07 “Improvements to Non-employee Share-based Payment Accounting" ("ASU 2018-07"). ASU 2018-07 amends ASC 718, "Compensation - Stock Compensation" ("ASC 718"), with the intent of simplifying the accounting for share-based payments granted to non-employees for goods and services and aligning the accounting for share-based payments granted to non-employees with the accounting for share-based payments granted to employees. The Company adopted ASU 2018-07 on January 1, 2019 using the modified retrospective approach as required. ASU 2018-07 replaced ASC 505-50, "Equity-Based Payments to Nonemployees" ("ASC 505-50") which was previously applied by the Company for warrants granted to Amazon.com, Inc. ("Amazon") as customer incentives. As a result of ASU 2018-07, the Company applied accounting guidance for financial instruments to the unvested warrants conditionally granted to Amazon in conjunction with an investment agreement reached with Amazon on December 22, 2018. Applying ASU 2018-07 as of January 1, 2019, through the modified retrospective approach, resulted in the recognition of $176.9 million for unvested warrant liabilities, $100.1 million for customer incentive assets and cumulative-effect adjustments of $71.4 million, net of tax, to reduce retained earnings for customer incentives that were not probable of being realized. The adoption of ASU 2018-07 on January 1, 2019 did not have an impact on the accounting for vested warrants. In January 2017, the FASB issued ASU "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" (“ASU 2017-04”). This new standard eliminates Step 2 from the goodwill impairment test and requires an entity to perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 is effective for any annual or interim goodwill impairment tests in the fiscal years beginning after December 15, 2019 and must be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted this new accounting guidance on January 1, 2018. The adoption did not have an impact on the Company's financial position, results of operations, or cash flows. In March 2017, the FASB issued ASU "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost "(ASU 2017-07"). ASU 2017-07 requires an employer to report the service cost component of retiree benefits in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented separately from the service cost component and outside a subtotal of income from operations. The Company adopted ASU 2017-07 on January 1, 2018, retrospectively to all periods presented. As a result, retiree benefit plan interest expense, investment returns, settlements and other non-service cost components of retiree benefit expenses are excluded from the Company's operating income subtotal as reported in the Company's Consolidated Statement of Operations, but remain included in earnings before income taxes. Information about retiree benefit plans' interest expense, investment returns and other components of retiree benefit expenses can be found in Note J. In June 2016, the FASB issued ASU "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ("ASU 2016-13"). Under ASU 2016-13, an entity is required to utilize an “expected credit loss model” on certain financial instruments, including trade receivables. This model requires an entity to estimate expected credit losses over the lifetime of the financial asset including trade receivables that are not past due. Operating lease receivables are not within the scope of Topic 326. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. The Company adopted the ASU effective January 1, 2020 and does not expect the adoption to have a material impact on the consolidated financial statements or related disclosures. |
Significant Customers
Significant Customers | 12 Months Ended |
Dec. 31, 2019 | |
Significant Customers [Abstract] | |
Significant Customers | SIGNIFICANT CUSTOMERS DHL The Company has had long term contracts with DHL Network Operations (USA), Inc. and its affiliates ("DHL") since August 2003. Revenues from aircraft leases and related services performed for DHL were approximately 14% , 26% and 24% of the Company's consolidated revenues from continuing operations for the years ended December 31, 2019, 2018 and 2017, respectively. Revenues excluding directly reimbursed expenses from continuing operations performed for DHL comprised approximately 30% of the Company's consolidated revenues from continuing operations for the year ended December 31, 2017. The Company’s balance sheets include accounts receivable with DHL of $12.7 million and $13.4 million as of December 31, 2019 and December 31, 2018, respectively. The Company leases Boeing 767 aircraft to DHL under both long-term and short-term lease agreements. Under a separate crew, maintenance and insurance (“CMI”) agreement, the Company operates Boeing 767 aircraft that DHL leases from the Company. Pricing for services provided through the CMI agreement is based on pre-defined fees, scaled for the number of aircraft operated and the number of flight crews provided to DHL for its U.S. network. The Company provides DHL with scheduled maintenance services for aircraft that DHL leases. The Company also provides additional air cargo transportation services for DHL through ACMI agreements in which the Company provides the aircraft, crews, maintenance and insurance under a single contract. Revenues generated from the ACMI agreements are typically based on hours flown. The Company also provides ground equipment, such as power units, air starts and related maintenance services to DHL under separate agreements. Amazon The Company has been providing freighter aircraft and services for cargo handling and logistical support for Amazon.com Services, LLC ("ASI"), successor to Amazon.com Services, Inc., a subsidiary of Amazon.com, Inc. ("Amazon") since September 2015. On March 8, 2016, the Company entered into an Air Transportation Services Agreement (the “ATSA”) with ASI, pursuant to which CAM leases 20 Boeing 767 freighter aircraft to ASI, including 12 Boeing 767-200 freighter aircraft for a term of five years and eight Boeing 767-300 freighter aircraft for a term of seven years. The ATSA also provides for the operation of those aircraft by the Company’s airline subsidiaries, and the management of ground services by the Company's subsidiary LGSTX Services Inc. ("LGSTX"). The ATSA became effective on April 1, 2016 and had an original term of five years. In conjunction with the execution of the ATSA, the Company and Amazon entered into an Investment Agreement and a Stockholders Agreement on March 8, 2016. The Investment Agreement calls for the Company to issue warrants in three tranches which will grant Amazon the right to acquire up to 19.9% of the Company’s outstanding common shares as described below. The first tranche of warrants, issued upon the execution of the Investment Agreement and all of which are now fully vested, granted Amazon the right to purchase approximately 12.81 million ATSG common shares, with the first 7.69 million common shares vesting upon issuance on March 8, 2016, and the remaining 5.12 million common shares vesting as the Company delivered additional aircraft leased under the ATSA. The second tranche of warrants, which were issued and vested on March 8, 2018, grants Amazon the right to purchase approximately 1.59 million ATSG common shares. The third tranche of warrants will be issued and vest on September 8, 2020, and will grant Amazon the right to purchase such additional number of ATSG common shares as is necessary to bring Amazon’s ownership to 19.9% of the Company’s pre-transaction outstanding common shares measured on a GAAP-diluted basis, adjusted for share issuances and repurchases by the Company following the date of the Investment Agreement and after giving effect to the warrants granted. The exercise price of the warrants is $9.73 per share, which represents the closing price of ATSG’s common shares on February 9, 2016. Each of the three tranches of warrants are exercisable in accordance with its terms through March 8, 2021. On December 22, 2018 the Company announced agreements with Amazon to 1) lease and operate ten additional Boeing 767-300 aircraft for ASI, 2) extend the term of the 12 Boeing 767-200 aircraft currently leased to ASI by two years to 2023 with an option for three more years, 3) extend the term of the eight Boeing 767-300 aircraft currently leased to ASI by three years to 2026 and 2027 with an option for three more years and 4) extend the ATSA by five years through March 2026, with an option to extend for an additional three years. The Company delivered six of the 767-300 aircraft in 2019 and plans to deliver the remainder in 2020. All ten of these aircraft leases will be for ten years. In conjunction with the commitment for ten additional 767 aircraft leases, extensions of twenty existing Boeing 767 aircraft leases and the ATSA described above, Amazon and the Company entered into another Investment Agreement on December 20, 2018. Pursuant to the 2018 Investment Agreement, Amazon will be issued warrants for 14.8 million common shares which could expand its potential ownership in the Company to approximately 33.2%, including the warrants described above for the 2016 agreements. Warrants for 11.1 million common shares vested as existing leases were extended and six additional aircraft leases were executed and added to the ATSA operations. More of these warrant will vest as four additional aircraft leases were executed. These new warrants will expire if not exercised within seven years from their issuance date. They have an exercise price of $21.53 per share. Additionally, Amazon will be able to earn incremental warrant rights, increasing its potential ownership from 33.2% up to approximately 39.9% of the Company, by leasing up to seventeen more cargo aircraft from the Company before January 2026. Incremental warrants granted for Amazon’s commitment to any such future aircraft leases will have an exercise price based on the volume-weighted average price of the Company's shares during the 30 trading days immediately preceding the contractual commitment for each lease. The warrants issuable under these new agreements with Amazon required an increase in the number of authorized common shares of the Company. Management submitted proposals for shareholder consideration at the Company's annual meeting of shareholders on May 9, 2019 calling for an increase in the number of authorized common shares and approval of the warrants as required under the rules of the Nasdaq Global Select Market. Both proposals were approved by shareholders on May 9, 2019. The Company’s accounting for the warrants has been determined in accordance with the financial reporting guidance for financial instruments. Warrants obligations are marked to fair value at the end of each reporting period. The value of warrants is recorded as a customer incentive asset if it is probable of vesting at the time of grant and further changes in the fair value of warrant obligations are recorded to earnings. Upon a warrant vesting event, the customer incentive asset is amortized as a reduction of revenue over the duration of the related revenue contract As of December 31, 2019, the Company's liabilities reflected 14.83 million warrants from the 2016 Investment Agreement having a fair value of $206.6 million and 24.7 million warrants from the 2018 Amazon agreements having a fair value of $176.5 million . During the years ended December 31, 2019, 2018 and 2017 the re-measurements of all the warrants to fair value resulted in a net non-operating losses of $2.3 million , net gains of $7.4 million and losses of $81.8 million before the effect of income taxes, respectively. Revenues from Amazon comprised approximately 23% , 27% and 44% of the Company's consolidated revenues from continuing operations for the years ending December 31, 2019, 2018 and 2017, respectively. Revenues excluding directly reimbursed expenses from continuing operations performed for Amazon comprised approximately 27% of the Company's consolidated revenues from continuing operations for the year ended December 31, 2017. The Company’s balance sheets include accounts receivable with Amazon of $50.1 million and $29.2 million as of December 31, 2019 and December 31, 2018, respectively. The Company's earnings in future periods will be impacted by the re-measurements of warrant fair value, amortizations of the lease incentive asset and the related income tax effects. For income tax calculations, the value and timing of related tax deductions will differ from the guidance described above for financial reporting. DoD The Company is a provider of cargo and passenger airlift services to the DoD. The DoD awards flights to U.S. certificated airlines through annual contracts and through temporary "expansion" routes. Revenues from services performed for the DoD were approximately 34% , 15% and 7% of the Company's total revenues from continuing operations for the years ended December 31, 2019 , 2018 and 2017, respectively, including revenues for Omni beginning November 9, 2018. Revenues excluding directly reimbursed expenses from continuing operations performed for the DoD comprised approximately 10% of the Company's consolidated revenues from continuing operations for the year ended December 31, 2017. The Company's balance sheets included accounts receivable with the DoD of $44.5 million and $50.5 million as of December 31, 2019 and December 31, 2018, respectively. |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL, INTANGIBLES AND EQUITY INVESTMENTS As disclosed in Note B, on November 9, 2018, the Company acquired Omni. The purchase price was allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess purchase price over the estimated fair value of net assets acquired was recorded as goodwill. Identified intangible assets included OAI's certificated authority granted by the FAA to operate as an airline and OAI's long term customer relationships. On February 1, 2019, the Company acquired a group of companies under common control, referred to as TriFactor. Trifactor resells material handling equipment and provides engineering design solutions for warehousing, retail distribution and e-commerce operations. Revenues and operating expenses include the activities of TriFactor for periods since its acquisition by the Company. The excess purchase price over the estimated fair value of net assets acquired was recorded as goodwill. The acquisition of TriFactor did not have a significant impact on the Company's financial statements or results of operations. As of December 31, 2019, 2018 and 2017, the goodwill amounts for reporting units that have goodwill were separately tested for impairment. To perform the goodwill impairment test, the Company determined the fair value of the reporting units using industry market multiples and discounted cash flows utilizing a market-derived cost of capital (level 3 fair value inputs). The goodwill amounts were not impaired. The carrying amounts of goodwill are as follows (in thousands): CAM ACMI Services All Other Total Carrying value as of December 31, 2017 $ 34,395 $ — $ 2,884 $ 37,279 Acquisition of Omni 118,895 234,571 — 353,466 Carrying value as of December 31, 2018 $ 153,290 $ 234,571 $ 2,884 $ 390,745 Acquisition of TriFactor — — 5,229 5,229 Carrying value as of December 31, 2019 $ 153,290 $ 234,571 $ 8,113 $ 395,974 The Company's acquired intangible assets are as follows (in thousands): Airline Amortizing Certificates Intangibles Total Carrying value as of December 31, 2017 $ 3,000 $ 4,298 $ 7,298 Acquisition of Omni 6,000 134,000 140,000 Amortization — (2,684 ) (2,684 ) Carrying value as of December 31, 2018 $ 9,000 $ 135,614 $ 144,614 Amortization — (11,434 ) (11,434 ) Right of use asset — (1,500 ) (1,500 ) Carrying value as of December 31, 2019 $ 9,000 $ 122,680 $ 131,680 The airline certificates have an indefinite life and therefore are not amortized. The Company amortizes finite-lived intangibles assets, including customer relationship and STC intangibles, over 3 to 19 years. The Company recorded intangible amortization expense of $11.4 million , $2.7 million and $1.2 million for the years ending December 31, 2019, 2018 and 2017, respectively. Estimated amortization expense for the next five years is $11.4 million , $10.6 million , $10.6 million , $10.6 million and $10.6 million . Stock warrants issued to a lessee (see Note D) as an incentive are recorded as a lease incentive asset using their fair value at the time that the lessee has met its performance obligations and amortized against revenues over the duration of related aircraft leases. The Company's lease incentive granted to the lessee was as follows (in thousands): Lease Incentive Carrying value as of December 31, 2017 $ 80,684 Amortization (16,904 ) Carrying value as of December 31, 2018 $ 63,780 Adoption of ASU 2018-07 100,076 Amortization (17,178 ) Carrying value as of December 31, 2019 $ 146,678 The lease incentive began to amortize in April 2016 with the commencement of certain aircraft leases. Based on the warrants granted as of December 31, 2019, the Company expects to record amortization, as a reduction to the lease revenue, of $20.5 million , $22.2 million , $22.3 million , $17.7 million and $14.8 million for each of the next five years ending December 31, 2024. In January 2014, the Company acquired a 25 percent equity interest in West Atlantic AB of Gothenburg, Sweden ("West"). West, through its two airlines, West Atlantic UK and West Atlantic Sweden, operates a fleet of aircraft on behalf of European regional mail carriers and express logistics providers. The airlines operate a combined fleet of British Aerospace ATPs, Bombardier CRJ-200-PFs, and Boeing 767 and 737 aircraft. In April 2019, West issued additional shares to a new investor in conjunction with a capital investment and purchase agreement which reduced the Company's ownership to approximately 10% and reduced the Company's influence over West. West leases three Boeing 767 aircraft and one Boeing 737 from the Company. On August 3, 2017 the Company entered into a joint-venture agreement with Precision Aircraft Solutions, LLC, to develop a passenger-to-freighter conversion program for Airbus A321-200 aircraft. The Company anticipates approval of a supplemental type certificate from the FAA in 2020. The Company expects to make contributions equal to its 49% ownership percentage of the program's total costs over the next two years. During the 2019, 2018 and 2017 years, the Company contributed $12.3 million , $11.4 million and $8.7 million to the joint venture, respectively. The Company accounts for its investment in the aircraft conversion joint venture under the equity method of accounting, in which the carrying value of each investment is reduced for the Company's share of the non-consolidated affiliates operating results. The carrying value of West and the joint venture totaled $10.9 million and $12.5 million at December 31, 2019 and 2018, respectively, and are reflected in “Other Assets” in the Company’s consolidated balance sheets. The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis in accordance with GAAP. If the Company determines that an other-than-temporary decline in value has occurred, it recognizes an impairment loss, which is measured as the difference between the recorded carrying value and the fair value of the investment. The fair value is generally determined using an income approach based on discounted cash flows or using negotiated transaction values. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s money market funds and interest rate swaps are reported on the Company’s consolidated balance sheets at fair values based on market values from comparable transactions. The fair value of the Company’s money market funds, convertible note, convertible note hedges and interest rate swaps are based on observable inputs (Level 2) from comparable market transactions. The fair value of the stock warrant obligations resulting from aircraft leased to Amazon were determined using a Black-Scholes pricing model which considers various assumptions, including the Company’s common stock price, the volatility of the Company’s common stock, the expected dividend yield, exercise price and the risk-free interest rate (Level 2 inputs). The fair value of the stock warrant obligations for unvested stock warrants, conditionally granted to Amazon for the execution of incremental, future aircraft leases, include additional assumptions including the expected exercise prices and the probabilities that future leases will occur (Level 3 inputs). The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2019 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 1,129 $ — $ 1,129 Interest rate swap — 111 — 111 Total Assets $ — $ 1,240 $ — $ 1,240 Liabilities Interest rate swap $ — $ (8,237 ) $ — $ (8,237 ) Stock warrant obligations — (340,767 ) (42,306 ) (383,073 ) Total Liabilities $ — $ (349,004 ) $ (42,306 ) $ (391,310 ) As of December 31, 2018 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 17,986 $ — $ 17,986 Interest rate swap — 2,971 — 2,971 Total Assets $ — $ 20,957 $ — $ 20,957 Liabilities Interest rate swap $ — $ (1,138 ) $ — $ (1,138 ) Stock warrant obligation — (203,782 ) — (203,782 ) Total Liabilities $ — $ (204,920 ) $ — $ (204,920 ) At December 31, 2019, vested stock warrants having an exercise price of $9.73 were valued at $13.93 each using a risk-free interest rate of 1.6% and a stock volatility of 35% , based on the time period corresponding with the expiration period of the warrants. At December 31, 2019, vested stock warrants from the 2018 Amazon agreements having an exercise price of $21.53 were valued at $9.30 each, using a risk-free interest rate of 1.8% and a stock volatility of 35.0% , based on the time period corresponding with the expiration period of the warrants. At December 31, 2019, unvested stock warrants from the 2018 Amazon agreement were valued using additional assumptions for an expected grant date, expected exercise price, the risk free rate to the expected grant date and the probabilities that future leases will occur. At December 31, 2018, each vested stock warrant having an exercise price of $9.73 was valued at $13.76 using a risk-free rate of 2.5% and a stock volatility of 37.5% . The fair value of the note conversion obligations were estimated using discounted cash flows and the fair value of convertible note hedges were estimated using a Black-Scholes pricing model and incorporate the terms and conditions of the underlying financial instruments (Level 2 Inputs). The valuations are, among other things, subject to changes in both the Company's credit worthiness and the counter-parties to the instruments as well as changes in general market conditions. While the change in fair value of the note conversion obligations and the convertible note hedges are generally expected to move in opposite directions, the net change in any given period may be material. At December 31, 2018, the value of the convertible note hedges and note conversion obligations were valued at $50.0 million and $50.8 million respectively. As a result of lower market interest rates compared to the stated interest rates of the Company’s fixed rate debt obligations, the fair value of the Company’s debt obligations, based on Level 2 observable inputs, was approximately $2.7 million less than the carrying value, which was $1,484.4 million at December 31, 2019 . As of December 31, 2018, the fair value of the Company’s debt obligations was approximately $6.0 million less than the carrying value, which was $1,401.3 million . The non-financial assets, including goodwill, intangible assets and property and equipment are measured at fair value on a non-recurring basis. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | PROPERTY AND EQUIPMENT The Company's property and equipment consists primarily of cargo aircraft, aircraft engines and other flight equipment. Property and equipment, to be held and used, is summarized as follows (in thousands): December 31, December 31, Flight equipment $ 2,598,113 $ 2,340,840 Ground equipment 59,628 57,455 Leasehold improvements, facilities and office equipment 33,649 28,745 Aircraft modifications and projects in progress 220,827 74,449 2,912,217 2,501,489 Accumulated depreciation (1,146,197 ) (946,484 ) Property and equipment, net $ 1,766,020 $ 1,555,005 CAM owned aircraft with a carrying value of $889.3 million and $803.7 million that were under leases to external customers as of December 31, 2019 and 2018, respectively. |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Obligations | DEBT OBLIGATIONS Debt obligations consisted of the following (in thousands): December 31, December 31, 2019 2018 Unsubordinated term loans $ 626,277 $ 721,406 Revolving credit facility 632,900 475,000 Convertible debt 213,461 204,846 Other financing arrangements 11,746 — Total debt obligations 1,484,384 1,401,252 Less: current portion (14,707 ) (29,654 ) Total long term obligations, net $ 1,469,677 $ 1,371,598 The Company utilizes a syndicated credit agreement ("Senior Credit Agreement") which includes unsubordinated term loans and a revolving credit facility. In November 2019, the Senior Credit Agreement was amended to increase the maximum revolver capacity from $645.0 million to $750.0 million , combine two terms loans into one loan and reduce the interest rate spread of the LIBOR based financing at various debt-to-EBITDA levels. This amendment also extended the agreement to November 2024 provided certain liquidity measures are maintained during 2024 and added incremental accordion capacity based on debt ratios. As of December 31, 2019, the unused revolving credit facility totaled $103.9 million , net of draws of $632.9 million and outstanding letters of credit of $13.2 million . The Senior Credit Agreement permitted additional indebtedness of up to $750.0 million , excluding the unsecured convertible notes outstanding of $258.8 million as of December 31, 2019. The balance of the unsubordinated term loan is net of debt issuance costs of $8.7 million and $9.8 million for the years ended December 31, 2019 and 2018, respectively. Under the terms of the Senior Credit Agreement, interest rates are adjusted at least quarterly based on the Company's EBITDA, its outstanding debt level and prevailing LIBOR or prime rates. At the Company's current debt-to-EBITDA ratio, the LIBOR based financing for the unsubordinated term loan and revolving credit facility bear variable interest rates of 3.675% and 3.649% , respectively. The Senior Credit Agreement is collateralized by certain of the Company's Boeing 777, 767 and 757 aircraft. Under the terms of the Senior Credit Agreement, the Company is required to maintain collateral coverage equal to 115% of the outstanding balance of the term loan and the total funded revolving credit facility. The minimum collateral coverage which must be maintained is 50% of the outstanding balance of the term loan plus the revolving credit facility commitment of $750.0 million . The Senior Credit Agreement limits the amount of dividends the Company can pay and the amount of common stock it can repurchase to $100.0 million during any calendar year, provided the Company's total debt to earnings before interest, taxes, depreciation and amortization expenses ("EBITDA") ratio is under 3.00 times, after giving effect to the dividend or repurchase. The Senior Credit Agreement contains covenants, including a maximum permitted total EBITDA to debt ratio, a fixed charge covenant ratio requirement, limitations on certain additional indebtedness, and on guarantees of indebtedness. The Senior Credit Agreement stipulates events of default, including unspecified events that may have material adverse effects on the Company. If an event of default occurs, the Company may be forced to repay, renegotiate or replace the Senior Credit Agreement. On January 28, 2020, the Company, through a subsidiary, completed a debt offering of $500.0 million in senior unsecured notes (the “Senior Notes”). The Senior Notes were sold only to qualified institutional buyers in the United States pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and certain investors pursuant to Regulation S under the Securities Act. The Senior Notes are senior unsecured obligations that bear interest at a rate of 4.75% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2020. The Senior Notes will mature on February 1, 2028. The Senior Notes contain customary events of default and certain covenants which are generally no more restrictive than those set forth in the Senior Credit Agreement. The net proceeds of $495.0 million from the Senior Notes were used to pay down the revolving credit facility. The Senior Notes do not require principal payments in 2020. In September 2017, the Company issued $258.8 million aggregate principal amount of 1.125% Convertible Senior Notes due 2024 (" Convertible Notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act. The Convertible Notes bear interest at a rate of 1.125% per year payable semi-annually in arrears on April 15 and October 15 each year, beginning April 15, 2018. The Convertible Notes mature on October 15, 2024, unless repurchased or converted in accordance with their terms prior to such date. The Convertible Notes are unsecured indebtedness, subordinated to the Company's existing and future secured indebtedness and other liabilities, including trade payables. Conversion of the Convertible Notes can only occur upon satisfaction of certain conditions and during certain periods, beginning any calendar quarter commencing after December 31, 2017 and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon the occurrence of certain fundamental changes, holders of the Convertible Notes can require the Company to repurchase their notes at the cash repurchase price equal to the principal amount of the notes, plus any accrued and unpaid interest. The Convertible Notes may be settled in cash, the Company’s common shares or a combination of cash and the Company’s common shares, at the Company’s election. The initial conversion rate is 31.3475 common shares per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $31.90 per common share). If a “make-whole fundamental change” (as defined in the offering circular with the Convertible Notes) occurs, the Company will, in certain circumstances, increase the conversion rate for a specified period of time. In conjunction with the Convertible Notes, the Company purchased convertible note hedges under privately negotiated transactions for $56.1 million , having the same number of the Company's common shares, 8.1 million shares and same strike price of $31.90, that underlie the Convertible Notes. The convertible note hedges are expected to reduce the potential equity dilution with respect to the Company's common stock, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the Convertible Notes. The Company's current intent and policy is to settle all Note conversions through a combination settlement which satisfies the principal amount of the Convertible Notes outstanding with cash. The Convertible Notes could have a dilutive effect on the computation of earnings per share in accordance with accounting principles to the extent that the average traded market price of the Company’s common shares for a reporting period exceeds the conversion price. The conversion feature of the Convertible Notes required bifurcation from the principal amount under the applicable accounting guidance. Settlement provisions of the Convertible Notes and the convertible note hedges required cash settlement of these instruments until the Company's shareholders increased the number of authorized shares of common stock to cover the full number of shares underlying the Convertible Notes. As a result, the conversion feature of the Convertible Notes and the convertible note hedges were initially accounted for as liabilities and assets, respectively, and marked to market at the end of each period. The fair value of the note conversion obligation at issuance was $57.4 million . On May 10, 2018, the Company's shareholders increased the number of authorized shares of common stock to cover the full number of shares underlying the Convertible Notes. The Company reevaluated the Convertible Notes and convertible note hedges under the applicable accounting guidance including ASC 815, "Derivatives and Hedging," and determined that the instruments, which meet the definition of derivative and are indexed to the Company's own stock, should be classified in shareholder's equity. On May 10, 2018, the fair value of the conversion feature of the Convertible Notes and the convertible note hedges of $51.3 million and $50.6 million , respectively, were reclassified to paid-in capital and are no longer remeasured to fair value. The net proceeds from the issuance of the Convertible Notes was approximately $252.3 million , after deducting initial issuance costs. These unamortized issuance costs and discount are being amortized to interest expense through October 2024, using an effective interest rate of approximately 5.15% . The carrying value of the Company's convertible debt is shown below. December 31, December 31, 2019 2018 Principal value, Convertible Senior Notes, due 2024 258,750 258,750 Unamortized issuance costs (4,864 ) (5,799 ) Unamortized discount (40,425 ) (48,105 ) Convertible debt 213,461 204,846 In conjunction with the offering of the Convertible Notes, the Company also sold warrants to the convertible note hedge counterparties in separate, privately negotiated warrant transactions at a higher strike price and for the same number of the Company’s common shares, subject to customary anti-dilution adjustments. The amount received for these warrants and recorded in Stockholders' Equity in the Company’s consolidated balance sheets was $38.5 million . These warrants could result in 8.1 million additional shares of the Company's common stock, if the Company's traded market price exceeds the strike price which is $41.35 per share and is subject to certain adjustments under the terms of the warrant transactions. The warrants could have a dilutive effect on the computation of earnings per share to the extent that the average traded market price of the Company's common shares for a reporting periods exceed the strike price. The scheduled cash principal payments for the Company's debt obligations, as of December 31, 2019, for the next five years are as follows (in thousands): Principal Payments 2020 $ 16,481 2021 16,491 2022 32,378 2023 32,389 2024 1,432,050 2025 and beyond 8,607 Total principal cash payments 1,538,396 Less: unamortized issuance costs and discounts (54,012 ) Total debt obligations $ 1,484,384 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases property, four aircraft, aircraft engines and other types of equipment under operating leases. Property leases include hangars, warehouses, offices and other space at certain airports with fixed rent payments and lease terms ranging from one month to seven years. The Company is obligated to pay the lessor for maintenance, real estate taxes, insurance and other operating expenses on certain property leases. These expenses are variable and are not included in the measurement of the lease asset or lease liability. These expenses are recognized as variable lease expense when incurred and are not material. Equipment leases include ground support and industrial equipment as well as computer hardware with fixed rent payments and terms of one month to five years. The Company records the initial right-to-use asset and lease liability at the present value of lease payments scheduled during the lease term. For the year ended December 31, 2019, non-cash transactions to recognize right-to-use assets and corresponding liabilities for new leases were $17.0 million . Unless the rate implicit in the lease is readily determinable, the Company discounts the lease payments using an estimated incremental borrowing rate at the time of lease commencement. The Company estimates the incremental borrowing rate based on the information available at the lease commencement date, including the rate the Company could borrow for a similar amount, over a similar lease term with similar collateral. The Company's weighted-average discount rate for operating leases at December 31, 2019 was 4.7% . Leases often include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Although not material, the amount of such options is reflected below in the maturity of operating lease liabilities table. Lease expense is recognized on a straight-line basis over the lease term. Our weighted-average remaining lease term is 4.6 years . For the year ended December 31, 2019, cash payments against operating lease liabilities were $19.7 million . As of December 31, 2019, the maturities of operating lease liabilities are as follows (in thousands): Operating Leases 2020 $ 14,549 2021 10,425 2022 6,764 2023 6,138 2024 4,940 2025 and beyond 5,155 Total undiscounted cash payments 47,971 Less: amount representing interest (4,780 ) Present value of future minimum lease payments 43,191 Less: current obligations under leases 12,857 Long-term lease obligation $ 30,334 The Company expects to lease two additional passenger aircraft commencing in 2020 that are not reflected in the table above. The future minimum lease payments of the Company as of December 31, 2018 are scheduled below (in thousands): Operating Leases 2019 $ 17,505 2020 15,418 2021 12,703 2022 6,735 2023 4,641 2024 and beyond 12,462 Total minimum lease payments $ 69,464 Purchase Commitments The Company has agreements with Israel Aerospace Industries Ltd. ("IAI") for the conversion of Boeing 767 passenger aircraft into a standard configured freighter aircraft. The conversions primarily consist of the installation of a standard cargo door and loading system. As of December 31, 2019, the Company had eight aircraft that were in or awaiting the modification process. As of December 31, 2019, the Company had placed non-refundable deposits of $23.2 million to purchase 15 more Boeing 767-300 passenger aircraft through 2021. As of December 31, 2019, the Company's commitments to acquire and convert aircraft totaled $369.1 million through 2021. Guarantees and Indemnifications Certain leases and agreements of the Company contain guarantees and indemnification obligations to the lessor, or one or more other parties that are considered reasonable and customary (e.g. use, tax and environmental indemnifications), the terms of which range in duration and are often limited. Such indemnification obligations may continue after expiration of the respective lease or agreement. Other In addition to the foregoing matters, the Company is also a party to legal proceedings in various federal and state jurisdictions from time to time arising out of the operation of the Company's business. The amount of alleged liability, if any, from these proceedings cannot be determined with certainty; however, the Company believes that its ultimate liability, if any, arising from pending legal proceedings, as well as from asserted legal claims and known potential legal claims which are probable of assertion, taking into account established accruals for estimated liabilities, should not be material to our financial condition or results of operations. Employees Under Collective Bargaining Agreements As of December 31, 2019 , the flight crewmember employees of ABX, ATI and Omni and flight attendant employees of ATI and Omni were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of the Company’s Employees ABX International Brotherhood of Teamsters 5.3% ATI Air Line Pilots Association 8.3% OAI International Brotherhood of Teamsters 7.1% ATI Association of Flight Attendants 0.9% OAI Association of Flight Attendants 7.3% |
Pension and Other Post-Retireme
Pension and Other Post-Retirement Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Post-Retirement Benefit Plans | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS Defined Benefit and Post-retirement Healthcare Plans ABX sponsors a qualified defined benefit pension plan for ABX crewmembers and a qualified defined benefit pension plan for a major portion of its other ABX employees that meet minimum eligibility requirements. ABX also sponsors non-qualified defined benefit pension plans for certain employees. These non-qualified plans are unfunded. Employees are no longer accruing benefits under any of the defined benefit pension plans. ABX also sponsors a post-retirement healthcare plan for its ABX crewmembers, which is unfunded. Benefits for covered individuals terminate upon reaching age 65 under the post-retirement healthcare plans. The accounting and valuation for these post-retirement obligations are determined by prescribed accounting and actuarial methods that consider a number of assumptions and estimates. The selection of appropriate assumptions and estimates is significant due to the long time period over which benefits will be accrued and paid. The long term nature of these benefit payouts increases the sensitivity of certain estimates of our post-retirement obligations. The assumptions considered most sensitive in actuarially valuing ABX’s pension obligations and determining related expense amounts are discount rates and expected long term investment returns on plan assets. Additionally, other assumptions concerning retirement ages, mortality and employee turnover also affect the valuations. Actual results and future changes in these assumptions could result in future costs significantly higher than those recorded in our results of operations. ABX measures plan assets and benefit obligations as of December 31 of each year. Information regarding ABX’s sponsored defined benefit pension plans and post-retirement healthcare plans follow below. The accumulated benefit obligation reflects pension benefit obligations based on the actual earnings and service to-date of current employees. On August 30, 2017, the Company transferred investment assets totaling $106.6 million from the pension plan trust to purchase a group annuity contract from Mutual of America Life Insurance Company ("MUA"). The group annuity contract transfers payment obligations for pension benefits owed to certain former, non-pilot retirees of ABX (or their beneficiaries) to MUA. As a result of the transaction, the Company recognized pre-tax settlement charges of $5.3 million to continued operations and $7.6 million to discontinued operations due to the reclassification of $12.9 million of pretax losses from accumulated other comprehensive loss. Funded Status (in thousands): Pension Plans Post-retirement Healthcare Plans 2019 2018 2019 2018 Accumulated benefit obligation $ 779,031 $ 690,729 $ 3,707 $ 3,824 Change in benefit obligation Obligation as of January 1 $ 690,729 $ 740,783 $ 3,824 $ 4,056 Service cost — — 107 123 Interest cost 31,299 29,135 148 127 Plan transfers 3,313 1,603 — — Benefits paid (31,718 ) (29,439 ) (365 ) (365 ) Actuarial (gain) loss 85,408 (51,353 ) (7 ) (117 ) Obligation as of December 31 $ 779,031 $ 690,729 $ 3,707 $ 3,824 Change in plan assets Fair value as of January 1 $ 625,646 $ 681,573 $ — $ — Actual gain (loss) on plan assets 144,108 (51,274 ) — — Plan transfers 3,313 1,603 — — Return of excess premiums — 963 — — Employer contributions 5,414 22,220 365 365 Benefits paid (31,718 ) (29,439 ) (365 ) (365 ) Fair value as of December 31 $ 746,763 $ 625,646 $ — $ — Funded status Overfunded plans, net asset $ 4,996 $ — $ — $ — Underfunded plans Current liabilities $ (3,796 ) $ (3,971 ) $ (431 ) $ (451 ) Non-current liabilities $ (33,468 ) $ (61,112 ) $ (3,276 ) $ (3,373 ) Components of Net Periodic Benefit Cost ABX’s net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for the years ended December 31, 2019, 2018 and 2017, are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plan 2019 2018 2017 2019 2018 2017 Service cost $ — $ — $ — $ 107 $ 123 158 Interest cost 31,299 29,135 33,585 148 127 142 Expected return on plan assets (37,907 ) (42,093 ) (42,080 ) — — — Curtailments and settlements — — 12,923 — — — Amortization of prior service cost — — — — — (51 ) Amortization of net (gain) loss 15,528 3,547 7,778 172 219 283 Net periodic benefit cost (income) $ 8,920 $ (9,411 ) $ 12,206 $ 427 $ 469 $ 532 Unrecognized Net Periodic Benefit Expense The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense at December 31 are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plans 2019 2018 2019 2018 Unrecognized prior service cost $ — $ — $ — $ — Unrecognized net actuarial loss 89,871 126,192 1,031 1,210 Accumulated other comprehensive loss $ 89,871 $ 126,192 $ 1,031 $ 1,210 The amounts of unrecognized net actuarial loss recorded in accumulated other comprehensive loss that is expected to be recognized as components of net periodic benefit expense during 2020 is $3.8 million and $0.1 million for the pension plans and the post-retirement healthcare plans, respectively. Assumptions Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows: Pension Plans 2019 2018 2017 Discount rate - crewmembers 3.65% 4.65% 4.00% Discount rate - non-crewmembers 3.70% 4.65% 4.05% Expected return on plan assets 6.10% 6.20% 6.25% Net periodic benefit cost was based on the discount rate assumptions at the end of the previous year. The discount rate used to determine post-retirement healthcare obligations was 2.60% , 4.10% and 3.30% for pilots at December 31, 2019, 2018 and 2017, respectively. Post-retirement healthcare plan obligations have not been funded. The Company's retiree healthcare contributions have been fixed for each participant, accordingly, healthcare cost trend rates do not affect the post-retirement healthcare obligations. Plan Assets The weighted-average asset allocations by asset category are as shown below: Composition of Plan Assets as of December 31 Asset category 2019 2018 Cash — % 1 % Equity securities 26 % 25 % Fixed income securities 74 % 74 % 100 % 100 % ABX uses an investment management firm to advise it in developing and executing an investment policy. The portfolio is managed with consideration for diversification, quality and marketability. The investment policy permits the following ranges of asset allocation: equities – 15% to 35% ; fixed income securities – 60% to 80% ; cash – 0% to 10% . Except for U.S. Treasuries, no more than 10% of the fixed income portfolio and no more than 5% of the equity portfolio can be invested in securities of any single issuer. The overall expected long term rate of return was developed using various market assumptions in conjunction with the plans’ targeted asset allocation. The assumptions were based on historical market returns. Cash Flows In 2019 and 2018, the Company made contributions to its defined benefit plans of $5.4 million and $22.2 million , respectively. The Company estimates that its contributions in 2020 will be approximately $10.9 million for its defined benefit pension plans and $0.4 million for its post-retirement healthcare plans. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the respective plans as follows (in thousands): Pension Benefits Post-retirement Healthcare Benefits 2020 $ 37,829 $ 431 2021 38,583 483 2022 41,350 511 2023 43,759 545 2024 45,496 520 Years 2025 to 2029 239,019 1,724 Fair Value Measurements The pension plan assets are stated at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Common Trust Funds—Common trust funds are composed of shares or units in non-publicly traded funds whereby the underlying assets in these funds (cash, cash equivalents, fixed income securities and equity securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Holdings of common trust funds are classified as Level 2 investments. Corporate Stock—This investment category consists of common and preferred stock issued by domestic and international corporations that are regularly traded on exchanges and price quotes for these shares are readily available. These investments are classified as Level 1 investments. Mutual Funds—Investments in this category include shares in registered mutual funds, unit trust and commingled funds. These funds consist of domestic equity, international equity and fixed income strategies. Investments in this category that are publicly traded on an exchange and have a share price published at the close of each business day are classified as Level 1 investments and holdings in the other mutual funds are classified as Level 2 investments. Fixed Income Investments—Securities in this category consist of U.S. Government or Agency securities, state and local government securities, corporate fixed income securities or pooled fixed income securities. Securities in this category that are valued utilizing published prices at the close of each business day are classified as Level 1 investments. Those investments valued by bid data prices provided by independent pricing sources are classified as Level 2 investments. The pension plan assets measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2019 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 3,467 $ 3,467 Corporate stock 14,553 442 14,995 Mutual funds 59,710 117,067 176,777 Fixed income investments — 549,441 549,441 Benefit Plan Assets $ 74,263 $ 670,417 $ 744,680 Investments measured at net asset value ("NAV") 2,083 Total benefit plan assets $ 746,763 As of December 31, 2018 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 3,961 $ 3,961 Corporate stock 13,142 — 13,142 Mutual funds 48,645 91,085 139,730 Fixed income investments 2,065 462,149 464,214 Benefit Plan Assets $ 63,852 $ 557,195 $ 621,047 Investments measured at net asset value ("NAV") 4,599 Total benefit plan assets $ 625,646 Investments that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. These investments include hedge funds, private equity and real estate funds. Management’s estimates are based on information provided by the fund managers or general partners of those funds. Hedge Funds and Private Equity—These investments are not readily tradeable and have valuations that are not based on readily observable data inputs. The fair value of these assets is estimated based on information provided by the fund managers or the general partners. These assets have been valued using NAV as a practical expedient. The following table presents investments measured at fair value based on NAV per share as a practical expedient: Fair Value Redemption Frequency Redemption Notice Period Unfunded Commitments As of December 31, 2019 Hedge Funds & Private Equity $ 2,083 (1) (2) 90 days $ — Real Estate — (3) 90 days — Total investments measured at NAV $ 2,083 $ — As of December 31, 2018 Hedge Funds & Private Equity $ 4,599 (1) (2) 90 days $ — Real Estate — (3) 90 days — Total investments measured at NAV $ 4,599 $ — (1) Quarterly - hedge funds (2) None - private equity (3) Monthly Defined Contribution Plans The Company sponsors defined contribution capital accumulation plans (401k) that are funded by both voluntary employee salary deferrals and by employer contributions. Expenses for defined contribution retirement plans were $12.6 million , $9.0 million and $7.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The Company's deferred income taxes reflect the value of its net operating loss carryforwards and the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their amounts used for income tax calculations. Federal legislation known as The Tax Cuts and Jobs Acts ("Tax Act") was enacted on December 22, 2017. The Tax Act reduces the U.S. federal corporate tax rate from the previous rate of 35% to 21% effective January 1, 2018. The Tax Act also made broad and complex changes to the U.S. tax code, including, but not limited to a onetime tax on earnings of certain foreign subsidiaries, limitations of net operating loss carryforwards created in tax years beginning after December 31, 2017, bonus depreciation for full expensing of qualified property, and limitations on the deductibility of certain executive compensation. At December 31, 2017, the Company calculated the effects of the enactment of the Tax Act as written, and made an estimate of the effects on the existing deferred tax balances. The re-measurement of deferred tax balances in 2017 using the lower federal rates enacted by the Tax Act, resulted in a reduction in the Company's net deferred tax liability and the recognition of a deferred tax benefit as depicted by the change in the federal statutory tax rate included below. The Company continues to analyze and monitor the effects of the Tax Act on its operations. At December 31, 2019, the Company had cumulative net operating loss carryforwards (“NOL CFs”) for federal income tax purposes of approximately $172.5 million , which do not expire but whose use is limited to 80% of taxable income in any given year. The deferred tax asset balance includes $3.4 million net of a $0.3 million valuation allowance related to state NOL CFs, which have remaining lives ranging from one to twenty years . These NOL CFs are attributable to excess tax deductions related primarily to the accelerated tax depreciation of fixed assets and cash contributions for its defined benefit pension plans. At December 31, 2019 and 2018, the Company determined that, based upon projections of taxable income, it was more likely than not that the NOL CF’s will be, accordingly, no allowance against these deferred tax assets was recorded. The Company had alternative minimum tax credits of $3.1 million which will be recovered over the next three years. The significant components of the deferred income tax assets and liabilities as of December 31, 2019 and 2018 are as follows (in thousands): December 31 2019 2018 Deferred tax assets: Net operating loss carryforward and federal credits $ 40,467 $ 55,760 Lease Obligation 9,070 — Warrants 17,174 7,314 Post-retirement employee benefits 6,355 13,777 Employee benefits other than post-retirement 9,435 8,751 Inventory reserve 2,055 2,374 Deferred revenue 5,132 4,389 Other 9,309 5,333 Deferred tax assets 98,997 97,698 Deferred tax liabilities: Accelerated depreciation (192,651 ) (189,719 ) Partnership items (6,088 ) (5,850 ) Operating lease assets (9,051 ) — Goodwill (4,916 ) (620 ) State taxes (12,355 ) (14,474 ) Valuation allowance against deferred tax assets (1,412 ) (278 ) Deferred tax liabilities (226,473 ) (210,941 ) Net deferred tax (liability) $ (127,476 ) $ (113,243 ) The following summarizes the Company’s income tax provisions (benefits) (in thousands): Years Ended December 31 2019 2018 2017 Current taxes: Federal $ 1,332 $ — $ 9 Foreign 1 — 48 State 138 1,043 590 Deferred taxes: Federal 14,155 15,642 27,625 Foreign — (63 ) — State (3,677 ) 2,973 3,396 Change in federal statutory tax rates — — (59,944 ) Total deferred tax expense 10,478 18,552 (28,923 ) Total income tax expense (benefit) from continuing operations $ 11,589 $ 19,595 $ (28,276 ) Income tax expense (benefit) from discontinued operations $ 360 $ 434 $ (1,848 ) The reconciliation of income tax from continuing operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows: Years Ended December 31 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 35.0 % Foreign income taxes — % (0.1 )% (0.5 )% State income taxes, net of federal tax benefit 1.4 % (0.2 )% (39.7 )% Tax effect of non-deductible warrant expense (2.9 )% (1.5 )% (485.0 )% Tax effect of stock compensation — % (0.8 )% 21.7 % Tax effect of other non-deductible expenses 1.7 % 0.8 % (19.6 )% Change in federal and state tax laws — % — % 917.2 % Change to state statutory tax rates (5.4 )% 3.8 % — % Other 0.4 % (0.6 )% 3.5 % Effective income tax rate 16.2 % 22.4 % 432.6 % The income tax deductibility of the warrant expense is less than the expense required by GAAP because for tax purposes, the warrants are valued at a different time and under a different valuation method. The reconciliation of income tax from discontinued operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows: Years Ended December 31 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal tax benefit 1.8 % 2.6 % 1.3 % Change in federal statutory tax rates — % — % — % Effective income tax rate 22.8 % 23.6 % 36.3 % The Company files income tax returns in the U.S. federal jurisdiction and various international, state and local jurisdictions. The returns may be subject to audit by the Internal Revenue Service (“IRS”) and other jurisdictional authorities. International returns consist primarily of disclosure returns where the Company is covered by the sourcing rules of U.S. international treaties. The Company recognizes the impact of an uncertain income tax position in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. At December 31, 2019, 2018 and 2017, the Company's unrecognized tax benefits were $0.0 million , $0.0 million and $0.0 million respectively. Accrued interest and penalties on tax positions are recorded as a component of interest expense. Interest and penalties expense was immaterial for 2019, 2018 and 2017. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company's Senior Credit Agreement requires the Company to maintain derivative instruments for protection from fluctuating interest rates, for at least twenty-five percent of the outstanding balance of the term loan issued in November 2018. Accordingly, the Company entered into additional interest rate swaps in December 2018 and January 2019 having initial values of $150.0 million and $150.0 million , respectively, and forward start dates of December 31, 2018 and June 28, 2019. The table below provides information about the Company’s interest rate swaps (in thousands): December 31, 2019 December 31, 2018 Expiration Date Stated Interest Rate Notional Amount Market Value (Liability) Notional Amount Market Value (Liability) May 5, 2021 1.090 % 20,625 111 28,125 650 May 30, 2021 1.703 % 20,625 (25 ) 28,125 366 December 31, 2021 2.706 % 146,250 (3,242 ) 150,000 (1,138 ) March 31, 2022 1.900 % 50,000 (408 ) 50,000 829 March 31, 2022 1.950 % 75,000 (696 ) 75,000 1,126 March 31, 2023 2.425 % 148,125 (3,866 ) — — The outstanding interest rate swaps are not designated as hedges for accounting purposes. The effects of future fluctuations in LIBOR interest rates on derivatives held by the Company will result in the recording of unrealized gains and losses into the statement of operations. The Company recorded a net loss on derivatives of $10.0 million and $8.0 thousand and net gains of $1.4 million for the years ending December 31, 2019, 2018 and 2017, respectively. The liability for outstanding derivatives is recorded in other liabilities and in accrued expenses. The Company recorded a net loss before the effects of income taxes of $0.1 million and a net gain before the effects of income taxes of $0.6 million during the years ended December 31, 2018 and 2017, respectively, for the revaluation of the convertible note hedges and the note conversion obligations to fair value before these instruments were reclassified to paid-in-capital. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) includes the following items by components for the years ended December 31, 2019, 2018 and 2017 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Foreign Currency Translation Total Balance as of January 1, 2017 (77,088 ) (1,301 ) (1,477 ) (79,866 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 3,116 63 — 3,179 Foreign currency translation adjustment — — 195 195 Amounts reclassified from accumulated other comprehensive income: Plan curtailment and settlement 12,923 — 12,923 Actuarial costs (reclassified to salaries, wages and benefits) 7,778 283 — 8,061 Negative prior service cost (reclassified to salaries, wages and benefits) — (51 ) — (51 ) Income Tax (Expense) or Benefit (7,304 ) (91 ) (66 ) (7,461 ) Other comprehensive income (loss), net of tax 16,513 204 129 16,846 Balance as of December 31, 2017 (60,575 ) (1,097 ) (1,348 ) (63,020 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (41,051 ) 117 — (40,934 ) Foreign currency translation adjustment — — (171 ) (171 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 3,547 219 — 3,766 Income Tax (Expense) or Benefit 9,037 (80 ) 40 8,997 Other comprehensive income (loss), net of tax (28,467 ) 256 (131 ) (28,342 ) Balance as of December 31, 2018 (89,042 ) (841 ) (1,479 ) (91,362 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 20,793 7 — 20,800 Foreign currency translation adjustment — — (18 ) (18 ) Amounts reclassified from accumulated other comprehensive income: Foreign currency loss — — 2,253 2,253 Actuarial costs (reclassified to salaries, wages and benefits) 15,528 172 — 15,700 Income Tax (Expense) or Benefit (8,431 ) (40 ) (768 ) (9,239 ) Other comprehensive income (loss), net of tax 27,890 139 1,467 29,496 Balance as of December 31, 2019 (61,152 ) (702 ) (12 ) (61,866 ) |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's Board of Directors has granted stock incentive awards to certain employees and board members pursuant to a long term incentive plan which was approved by the Company's stockholders in May 2005 and in May 2015. Employees have been awarded non-vested stock units with performance conditions, non-vested stock units with market conditions and non-vested restricted stock. The restrictions on the non-vested restricted stock awards lapse at the end of a specified service period, which is typically three years from the date of grant. Restrictions could lapse sooner upon a business combination, death, disability or after an employee qualifies for retirement. The non-vested stock units will be converted into a number of shares of Company stock depending on performance and market conditions at the end of a specified service period, lasting approximately three years . The performance condition awards will be converted into a number of shares of Company stock based on the Company's average return on invested capital during the service period. Similarly, the market condition awards will be converted into a number of shares depending on the appreciation of the Company's stock compared to the NASDAQ Transportation Index. Board members were granted time-based awards with vesting periods of approximately six or twelve months . The Company expects to settle all of the stock unit awards by issuing new shares of stock. The table below summarizes award activity. Year Ended December 31 2019 2018 2017 Number of Awards Weighted average grant-date fair value Number of Awards Weighted average grant-date fair value Number of Awards Weighted average grant-date fair value Outstanding at beginning of period 969,928 $ 15.89 873,849 $ 12.30 1,040,569 $ 9.97 Granted 302,596 23.22 304,795 24.18 243,940 17.52 Converted (291,064 ) 17.14 (205,616 ) 12.74 (320,810 ) 9.47 Expired (7,900 ) 23.78 (500 ) 28.38 (82,050 ) 9.22 Forfeited (9,728 ) 23.37 (2,600 ) 26.76 (7,800 ) 13.55 Outstanding at end of period 963,832 $ 17.67 969,928 $ 15.89 873,849 $ 12.30 Vested 476,389 $ 11.11 463,422 $ 10.25 441,424 $ 7.61 The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company was $22.80 , $25.15 and $16.72 for 2019, 2018 and 2017, respectively, the fair value of the Company’s stock on the date of grant. The average grant-date fair value of each market condition award granted was $24.75 , $31.60 and $20.18 for 2019, 2018 and 2017, respectively. The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2019, 2018 and 2017 using daily stock prices and using the following variables: 2019 2018 2017 Risk-free interest rate 2.5% 2.4% 1.7% Volatility 35.6% 33.8% 34.7% For the years ended December 31, 2019, 2018 and 2017, the Company recorded expense of $7.0 million , $5.0 million and $3.6 million , respectively, for stock incentive awards. At December 31, 2019, there was $6.7 million of unrecognized expense related to the stock incentive awards that is expected to be recognized over a weighted-average period of 1.5 years. As of December 31, 2019, none of the awards were convertible, 337,060 units of the Board members' time-based awards had vested and none of the outstanding shares of the restricted stock had vested. These awards could result in a maximum number of 1,198,507 additional outstanding shares of the Company’s common stock depending on service, performance and market results through December 31, 2021. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | COMMON STOCK AND EARNINGS PER SHARE Earnings per Share The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts): December 31 2019 2018 2017 Numerator: Earnings from continuing operations - basic $ 59,983 $ 67,883 $ 21,740 Gain from stock warrants revaluation, net of tax (6,219 ) (7,118 ) — Earnings from continuing operations - diluted $ 53,764 $ 60,765 $ 21,740 Denominator: Weighted-average shares outstanding for basic earnings per share 58,899 58,765 58,907 Common equivalent shares: Effect of stock-based compensation awards and warrants 10,449 9,591 779 Weighted-average shares outstanding assuming dilution 69,348 68,356 59,686 Basic earnings per share from continuing operations $ 1.02 $ 1.16 $ 0.37 Diluted earnings per share from continuing operations $ 0.78 0.89 $ 0.36 Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 317,600 shares, 329,600 shares and 241,000 shares of restricted stock for 2019, 2018 and 2017, respectively, which are accounted for as part of diluted weighted average shares outstanding in diluted earnings per share. The determination of diluted earnings per share requires the exclusion of the fair value re-measurement of the stock warrants recorded as a liability (see Note D), if such warrants have an anti-dilutive effect on earnings per share. The dilutive effect of the weighted-average diluted shares outstanding is calculated using the treasury method for periods in which equivalent shares have a dilutive effect on earnings per share. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants recorded as a liability by the average stock price during the period and comparing that amount with the number of corresponding warrants outstanding. The underlying warrants recorded as a liability as of December 31, 2019 and 2018 would have resulted in 39.5 million and 14.8 million additional shares of the Company's common stock, respectively, if the warrants were settled by tendering cash. The number of equivalent shares that were not included in weighted average shares outstanding assuming dilution because their effect would have been anti-dilutive, were 7.8 million for the year ended December 31, 2017. Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. The Company repurchased common stock during 2017, including 380,637 shares on June 6, 2017 from an underwriter in conjunction with an underwritten secondary offering by its largest shareholder, Red Mountain Partners, L.P., a fund that is affiliated with Red Mountain Capital Partners, LLC (“Red Mountain”), a related party, for an aggregate purchase price of $8.5 million . The share price of $22.42 was equal to the price per share paid by the underwriter to Red Mountain. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT AND REVENUE INFORMATION The Company operates in two reportable segments. The CAM segment consists of the Company's aircraft leasing operations. The ACMI Services segment consists of the Company's airline operations, including CMI agreements as well as ACMI, charter service and passenger service agreements that the Company has with its customers. The Company's aircraft maintenance services, aircraft modification services, ground services and other services, are not large enough to constitute reportable segments and are combined in All other. Intersegment revenues are valued at arms-length market rates. The Company's segment information from continuing operations is presented below (in thousands): Year Ended December 31 2019 2018 2017 Total revenues: CAM $ 285,276 $ 228,956 $ 209,213 ACMI Services 1,078,288 548,839 614,741 All other 314,014 286,579 433,208 Eliminate inter-segment revenues (225,395 ) (172,029 ) (188,962 ) Total $ 1,452,183 $ 892,345 $ 1,068,200 Customer revenues: CAM $ 168,106 $ 156,516 $ 140,434 ACMI Services 1,078,143 548,804 614,721 All other 205,934 187,025 313,045 Total $ 1,452,183 $ 892,345 $ 1,068,200 ACMI Services revenues are generated from airline service agreements and are typically based on hours flown, the amount of aircraft operated and crew resources provided during a month. ACMI Services revenues are recognized over time using the invoice practical expedient as flight hours are performed for the customer. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are measured on a monthly basis and recorded to revenue in the corresponding month earned. Under CMI agreements, the Company's airlines have an obligation to provide integrated services including flight crews, aircraft maintenance and insurance for the customer's cargo network. Under ACMI agreements, the Company's airlines are also obligated to provide aircraft. Under CMI and ACMI agreements, customers are generally responsible for aviation fuel, landing fees, navigation fees and certain other flight expenses. When functioning as the customers' agent for arranging such services, the Company records amounts reimbursable from the customer as revenues net of the related expenses as the costs are incurred. Under charter agreements, the Company's airline is obligated to provide full services for one or more flights having specific origins and destinations. Under charter agreements in which the Company's airline is responsible for fuel, airport fees and all flight services, the related costs are recorded in operating expenses. Any sales commissions paid for charter agreements are generally expensed when incurred because the amortization period is less than one year. ACMI Services are invoiced monthly or more frequently. (There are no customer rewards programs associated with services offered by the Company nor does the Company sell passenger tickets or issue freight bills.) The Company's revenues for customer contracts for airframe maintenance and aircraft modification services that do not have an alternative use and for which the Company has an enforceable right to payment are generally recognized over time based on the percentage of costs completed. Services for airframe maintenance and aircraft modifications typically have project durations lasting a few weeks to a few months. Other revenues for aircraft part sales, component repairs and line service are recognized at a point in time typically when the parts are delivered to the customer and the services are completed. For airframe maintenance, aircraft modifications and aircraft component repairs, contracts include assurance warranties that are not sold separately. The Company records revenues and estimated earnings over time for its airframe maintenance and aircraft modification contracts using the costs to costs input method. For such services, the Company estimates the earnings on a contract as the difference between the expected revenue and estimated costs to complete a contract and recognizes revenues and earnings based on the proportion of costs incurred compared to the total estimated costs. Unexpected or abnormal costs that are not reflected in the price of a contract are excluded from calculations of progress toward contract obligations. The Company's estimates consider the timing and extent of the services, including the amount and rates of labor, materials and other resources required to perform the services. These production costs are specifically planned and monitored for regulatory compliance. The expenditure of these costs closely reflect the progress made toward completion of an airframe maintenance and aircraft modification project. The Company recognizes adjustments in estimated earnings on a contract under the cumulative catch-up method in which the impact of the adjustment on estimated earnings of a contract is recognized in the period the adjustment is identified. The Company's ground services revenues include load transfer and sorting services, facility and equipment maintenance services. These revenues are recognized as the services are performed for the customer over time. Revenues from related facility and equipment maintenance services are recognized over time and at a point in time depending on the nature of the customer contracts. The Company's external customer revenues from other activities for the years ending December 31, 2019, 2018 and 2017 are presented below (in thousands): Year Ended December 31, 2019 2018 2017 Aircraft maintenance, modifications and part sales $ 117,772 $ 117,832 $ 106,767 Ground services 69,596 66,567 204,151 Other, including aviation fuel sales 18,566 2,626 2,127 Total customer revenues $ 205,934 $ 187,025 $ 313,045 CAM's aircraft lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Customer payments for leased aircraft and equipment are typically paid monthly in advance. CAM's leases do not contain residual guarantees. Approximately 10% of CAM's leases to external customers contain purchase options at projected market values. As of December 31, 2019, minimum future payments from external customers for leased aircraft and equipment were scheduled to be $186.8 million , $178.2 million , $152.0 million , $110.1 million and $75.5 million , respectively, for each of the next 5 years ending December 31, 2024 and $186.2 million thereafter. For customers that are not a governmental agency or department, the Company generally receives partial payment in advance of services, otherwise customer balances are typically paid within 30 to 60 days of service. The Company recognized $2.8 million of non lease revenue that was reported in deferred revenue at the beginning of the year, compared to $9.3 million in 2018. Deferred revenue was $3.0 million and $3.1 million at December 31, 2019 and 2018, respectively, for contracts with customers. The Company had revenues of approximately $716.9 million , $231.8 million and $170.1 million for 2019, 2018 and 2017, respectively, derived primarily from aircraft leases in foreign countries, routes with flights departing from or arriving in foreign countries or aircraft maintenance and modification services performed in foreign countries. All revenues from the CMI agreement with DHL and the ATSA agreement with ASI are attributed to U.S. operations. As of December 31, 2019 and 2018, the Company had 20 and 23 aircraft, respectively, deployed outside of the United States. Effective January 1, 2018, the Company adopted Topic 606 for revenue recognition using a modified retrospective approach, under which financial statements are prepared under the revised guidance for the year of adoption, but not for prior years. The effects of Topic 606 on the Company's customer revenues and earnings are summarized below for the year of adoption: For the year ended December 31, 2018 As Reported Without Topic 606 Increase (decrease) Revenue CAM $ 156,516 $ 156,516 $ — ACMI Services 548,804 743,112 (194,308 ) All other 187,025 350,012 (162,987 ) Total Revenue 892,345 1,249,640 (357,295 ) Operating Expense 781,327 1,138,462 (357,135 ) Earnings (Loss) from Continuing Operations before Income Taxes 87,478 87,638 (160 ) Income Tax Benefit (Expense) (19,595 ) (19,559 ) (36 ) Income from Continuing Operations $ 67,883 $ 68,079 $ (196 ) The Company's other segment information from continuing operations is presented below (in thousands): Year Ended December 31, 2019 2018 2017 Depreciation and amortization expense: CAM $ 158,470 $ 126,856 $ 108,106 ACMI Services 96,191 49,068 41,929 All other 2,871 2,971 4,521 Total $ 257,532 $ 178,895 $ 154,556 Interest expense CAM 38,300 21,819 15,585 ACMI Services 24,950 6,269 810 Segment earnings (loss): CAM $ 68,643 $ 65,576 $ 61,510 ACMI Services 32,055 11,448 7,747 All other 13,422 11,170 13,748 Net unallocated interest expense (3,024 ) (460 ) (512 ) Net gain (loss) on financial instruments (12,302 ) 7,296 (79,789 ) Transaction fees (373 ) (5,264 ) — Other non-service components of retiree benefit costs, net (9,404 ) 8,180 (6,105 ) Loss from non-consolidated affiliate (17,445 ) (10,468 ) (3,135 ) Pre-tax earnings from continuing operations $ 71,572 $ 87,478 $ (6,536 ) In previous years, the Company disclosed reportable segments for "Ground Services" and "MRO Services" which included aircraft maintenance and modification businesses. Due to the relative size of these business units and organizational changes, Ground Services and MRO Services and no longer reportable segments. The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other. December 31 2019 2018 2017 Assets: CAM $ 1,857,687 $ 1,577,182 $ 1,192,890 ACMI Services 830,620 759,131 189,379 Discontinued operations 1,499 — — All other 130,372 134,272 166,575 Total $ 2,820,178 $ 2,470,585 $ 1,548,844 During 2019, the Company had capital expenditures for property and equipment of $87.2 million and $368.8 million for the ACMI Services and CAM, respectively. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS The Company's results of discontinued operations consist primarily of changes in liabilities related to benefits for former employees previously associated with ABX's former hub operation for DHL. The Company may incur expenses and cash outlays in the future related to pension obligations, self-insurance reserves for medical expenses and wage loss for former employees. Carrying amounts of significant assets and liabilities of the discontinued operations are below (in thousands): December 31 2019 2018 Assets Pension assets, net of obligations 1,499 — Total Assets 1,499 — Liabilities Employee compensation and benefits $ 15,189 $ 16,807 Post-retirement — 846 Total Liabilities $ 15,189 $ 17,653 During 2019 and 2018, pre-tax earnings from discontinued operations were $1.6 million and $1.8 million , respectively. Pre-tax results from discontinued operations were losses of $5.1 million during 2017. |
Quarterly Results (Unaudited)
Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Results | QUARTERLY RESULTS (Unaudited) The following is a summary of quarterly results of operations (in thousands, except per share amounts): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2019 (1) Revenues from continuing operations $ 348,183 $ 334,576 $ 366,073 $ 403,351 Operating income from continuing operations 46,528 37,482 40,766 52,221 Net earnings (loss) from continuing operations 22,634 (26,632 ) 105,085 (41,104 ) Net earnings from discontinued operations 31 31 243 914 Weighted average shares: Basic 58,838 58,909 58,919 58,929 Diluted 60,437 58,909 68,718 58,929 Earnings (loss) per share from continuing operations Basic $ 0.38 $ (0.45 ) $ 1.78 $ (0.70 ) Diluted $ 0.25 $ (0.45 ) $ 0.19 $ (0.70 ) 2018 (2) Revenues from continuing operations $ 203,040 $ 203,607 $ 204,919 $ 280,779 Operating income from continuing operations 27,643 23,898 26,827 32,650 Net earnings (loss) from continuing operations 15,682 24,464 32,933 (5,196 ) Net earnings (loss) from discontinued operations 196 170 170 866 Weighted average shares: Basic 58,840 58,739 58,739 58,740 Diluted 59,558 68,363 68,323 58,740 Earnings (loss) per share from continuing operations Basic $ 0.27 $ 0.42 $ 0.56 $ (0.09 ) Diluted $ 0.26 $ 0.21 $ 0.24 $ (0.09 ) 1. During 2019, the Company recorded a $4.5 million gain, a $35.9 million loss, a $92.0 million gain and a $72.9 million loss on the remeasurement of financial instruments, primarily related to the warrants issued to Amazon for the quarters ended March 31, 2019, June 30, 2019, September 30, 2019 and December 31, 2019, respectively. 2. During 2018, the Company recorded a $ 0.9 million loss, a $ 11.7 million gain, a $ 17.9 million gain and a $ 21.4 million gain on the remeasurement of financial instruments, primarily related to the warrants issued to Amazon for the quarters ended March 31, 2018, June 30, 2018, September 30, 2018 and December 31, 2018, respectively. |
Acquisition of Business (Notes)
Acquisition of Business (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | ACQUISITION OF OMNI On November 9, 2018, the Company acquired Omni including OAI and its aircraft fleet. The Company acquired Omni for cash consideration of $867.7 million . The Company funded the all-cash acquisition by amending its senior credit agreement to issue a new term loan for $675.0 million , drawing $180.0 million from its revolving credit facility and using its available cash. The acquisition of Omni by the Company is reported in accordance with Accounting Standards Codification 805, Business Combinations , in which the total purchase price is allocated to Omni’s tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the date of the acquisition. The excess of the purchase price over the estimated fair value of net assets acquired was recorded as goodwill. The purchase price exceeded the fair value of the net assets acquired due to the strategic opportunities and expected benefits associated with adding Omni's capabilities to the Company's existing offerings in the market. The benefits of adding Omni include the following: • Additional passenger transportation capabilities • FAA operating authority for the Boeing 777 aircraft • Increased revenues, cash flows and customer diversification • Passenger aircraft life cycle leading to potential freighter conversion The allocation of the purchase price to specific assets and liabilities is based, in part, upon internal estimates of assets and liabilities and independent appraisals. Based on the valuations, the following table summarizes estimated fair values of the assets acquired and liabilities assumed (in thousands) for the consideration paid: Cash $ 4,693 Accounts receivable 63,041 Other current assets 8,366 Other assets 7,836 Intangibles 140,000 Goodwill 353,466 Property and equipment 328,869 Current liabilities (32,646 ) Customer deposits (5,950 ) Net assets acquired $ 867,675 Property and equipment acquired includes the engines and airframes of eight Boeing 767 and three Boeing 777 passenger aircraft owned by Omni and leasehold improvements for two Boeing 767 aircraft under operating leases. The fair values assigned to the acquired aircraft were derived from market comparisons with the assistance of an independent appraiser. Depreciation expense of property and equipment is provided on a straight-line basis over the lesser of the asset’s remaining useful life or lease term. The estimated remaining life of these airframes range between seven and eighteen years. The estimated life of the airframes and engines include the Company's intent to convert a portion of Omni's passenger aircraft to freighter aircraft after the aircraft are no longer used for passengers. The value of major airframe maintenance and engine overhauls are depreciated over the useful life of the overhaul. Intangible assets consisted of $134.0 million for customer relationships and $6.0 million for airline certificates. The value assigned to Omni's customer relationships was determined by discounting the estimated cash flows associated with the existing customers as of the acquisition date, taking into consideration expected attrition of the existing customer base. The estimated cash flows were based on revenues for those existing customers, net of operating expenses and net contributory asset charges associated with servicing those customers. The estimated revenues were based on revenue growth rates and customer renewal rates. Operating expenses were estimated based on the supporting infrastructure expected to sustain the assumed revenue levels. The customer relationship intangibles are estimated to amortize over seven to twenty years on a straight-line basis and airline certificates have indefinite lives and therefore are not amortized. The goodwill is deductible for U.S. income tax purposes over 15 years. The following table provides unaudited pro forma financial results (in thousands) for the Company after giving effect to the acquisition of Omni and adjustments described below. This information is based on adjustments to the historical consolidated financial statements of Omni using the purchase method of accounting for business combinations as if the acquisition had taken place on January 1, 2017. The unaudited pro forma adjustments do not include any of the cost savings and other synergies which may result from the acquisition. These unaudited pro forma financial results are based on assumptions considered appropriate by management and include all material adjustments as considered necessary. These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of results that would have actually been reported as of the date or for the year presented had the acquisition taken place on such date or at the beginning of the year indicated, or to project the Company’s financial position or results of operations which may be reported in the future (in thousands). Year Ended December 31, 2018 2017 Pro forma revenues 1,320,234 1,425,823 Pro forma net earnings from continuing operations 88,454 13,660 Revenues for 2018 reflect the adoption of Topic 606 on January 1, 2018, as described in Note O. Under this new revenue standard, such reimbursed amounts are reported net of the corresponding expenses beginning in 2018. Pro forma revenues for 2017 included $289.4 million of reimbursed expenses. The following adjustments were made to the historical financial records to create the unaudited pro forma information in the table above: • Adjustments to eliminate transactions between the Company and Omni during the years ended December 31, 2017 and the ten and one half months ended November 9, 2018 respectively. • Adjustment to reflect estimated additional depreciation and amortization expense of $10.6 million and $10.0 million for the year ended December 31, 2017 and the ten and one half months ended November 9, 2018, respectively, resulting primarily from the fair value adjustments to Omni’s intangible assets. Pro forma combined depreciation expense for the periods presented reflect the increased fair values of the aircraft acquired and longer useful lives of the aircraft, indicative of the Company's polices and intent to modify certain aircraft to freighters as an aircraft is removed from passenger service. • Adjustment to reflect additional interest expense and amortization of debt issuance costs for the year ended December 31, 2017 and the ten and one half months ended November 9, 2018, related to the combined $855 million from an unsubordinated term loan and revolving facility draws using the prevailing rates of 4.57%. • Adjustment to apply the statutory tax rate of the Company to the pre-tax earnings of Omni and the pro forma adjustments for the year ended December 31, 2017 and the ten and one half months ended November 9, 2018. Omni had historically elected to be treated as pass-through entities for income tax purposes. Accordingly, no provision for income taxes had been made in Omni's consolidated statements of earnings. The adjustments reflect tax rates of 35% for 2017 and 22.58% for the first ten and one half months ended November 9, 2018. • Adjustment to remove acquisition related expenses of $5.3 million for professional fees and classified as "Transaction fees " within the consolidated statement of operations for 2018. |
Investments in Non-Consolidated
Investments in Non-Consolidated Affiliates (Unaudited) (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Abstract] | |
Investment Holdings [Text Block] | INVESTMENTS IN NON-CONSOLIDATED AFFILIATES (Unaudited) As described in Note C, the Company had investments in two non-consolidated affiliates. While management considers the Company's participation in these non-consolidated affiliates as potentially beneficial to future operating results, such participation is not essential to the Company. The following table presents combined condensed information from the statements of operations of the Company's non-consolidated affiliates (in thousands): Year Ended December 31, 2019 2018 2017 Revenues $ 114,265 $ 202,028 $ 172,526 Expenses (143,775 ) (228,169 ) (196,334 ) Income (Loss) $ (29,510 ) $ (26,141 ) $ (23,808 ) The following table presents combined condensed balance sheet information for our unconsolidated affiliates (in thousands): December 31, 2019 2018 Current assets $ 64,392 $ 64,262 Non current assets 213,940 80,724 Current liabilities (155,451 ) (38,938 ) Non current liabilities (123,837 ) (102,657 ) Equity $ 956 $ (3,391 ) |
Summary of Financial Statemen_2
Summary of Financial Statement Preparation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Post-Retirement Benefits The funded status of any of the Company's defined benefit pension or post-retirement health care plans is the difference between the fair value of plan assets and the accumulated benefit obligations to plan participants. The over funded or underfunded status of a plan is reflected in the consolidated balance sheet as an asset for over funded plans, or as a liability for underfunded plans. The funded status is ordinarily re-measured annually at year end using the fair value of plans assets, market based discount rates and actuarial assumptions. Changes in the funded status of the plans as a result of re-measuring plan assets and benefit obligations, are recorded to accumulated comprehensive loss and amortized into expense using a corridor approach. The Company's corridor approach amortizes into earnings variances in plan assets and benefit obligations that are a result of the previous measurement assumptions when the net deferred variances exceed 10% of the greater of the market value of plan assets or the benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining service period to retirement date of active plan participants. Cost adjustments for plan amendments are also deferred and amortized over the expected working life or the life expectancy of plan participants. Irrevocable settlement transactions that relieve the Company from responsibilities of providing retiree benefits and significantly eliminate the Company's related risk may result in recognition of gains or losses from accumulated other comprehensive loss. |
Security and Maintenance Deposits [Table Text Block] | Customer Security and Maintenance Deposits The Company's customer leases typically obligate the lessee to maintain the Company's aircraft in compliance with regulatory standards for flight and aircraft maintenance. The Company may require an aircraft lessee to pay a security deposit or provide a letter of credit until the expiration of the lease. Additionally, the Company's leases may require a lessee to make monthly payments toward future expenditures for scheduled heavy maintenance events. The Company records security and maintenance deposits in other liabilities. If a lease requires monthly maintenance payments, the Company is typically required to reimburse the lessee for costs they incur for scheduled heavy maintenance events after completion of the work and receipt of qualifying documentation. Reimbursements to the lessee are recorded against the previously paid maintenance deposits. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Inter-company balances and transactions are eliminated. The consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Investments in affiliates in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Under the equity method, the Company’s share of the nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Investments in affiliates in which the Company does not exercise control or have significant influence are reflected at cost less impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Estimates and assumptions are used to record allowances for uncollectible amounts, self-insurance reserves, spare parts inventory, depreciation and impairments of property, equipment, goodwill and intangibles, stock warrants and other financial instruments, post-retirement obligations, income taxes, contingencies and litigation. Changes in estimates and assumptions may have a material impact on the consolidated financial statements. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company classifies short-term, highly liquid investments with maturities of three months or less at the time of purchase as cash and cash equivalents. These investments, consisting of money market funds, are recorded at cost, which approximates fair value. Substantially all deposits of the Company’s cash are held in accounts that exceed federally insured limits. The Company deposits cash in common financial institutions which management believes are financially sound. Cash includes restricted cash of $10.6 million as of December 31, 2019 and $5.3 million as of December 31, 2018. Restricted cash consists of customers’ deposits held in an escrow account as required by DOT regulations. The cash is restricted to the extent of customers’ deposits on flights not yet flown. Restricted cash is released from escrow upon completion of specific flights, which are scheduled to occur within the twelve months. |
Accounts Receivable and Allowance for Uncollectible Accounts | Accounts Receivable and Allowance for Uncollectible Accounts The Company's accounts receivable is primarily due from its significant customers (see Note D), other airlines, delivery companies and freight forwarders. The Company performs a quarterly evaluation of the accounts receivable and the allowance for uncollectible accounts by reviewing specific customers' recent payment history, growth prospects, financial condition and other factors that may impact a customer's ability to pay. The Company establishes allowances for uncollectible accounts for probable losses due to a customer's potential inability or unwillingness to make contractual payments. Account balances are written off against the allowances when the Company ceases collection efforts. |
Inventory | Inventory The Company’s inventory is comprised primarily of expendable aircraft parts and supplies used for aircraft maintenance. Inventory is generally charged to expense when issued for use on a Company aircraft. The Company values its inventory of aircraft parts and supplies at weighted-average cost and maintains a related obsolescence reserve. The Company records an obsolescence reserve on a base stock of inventory. The Company monitors the usage rates of inventory parts and segregates parts that are technologically outdated or no longer used in its fleet types. Slow moving and segregated items are actively marketed and written down to their estimated net realizable values based on market conditions. Management analyzes the inventory reserve for reasonableness at the end of each quarter. That analysis includes consideration of the expected fleet life, amounts expected to be on hand at the end of a fleet life, and recent events and conditions that may impact the usability or value of inventory. Events or conditions that may impact the expected life, usability or net realizable value of inventory include additional aircraft maintenance directives from the FAA, changes in DOT regulations, new environmental laws and technological advances. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company assesses, during the fourth quarter of each year, the carrying value of goodwill. The assessment requires an estimation of fair value of each reporting unit that has goodwill. The goodwill impairment test requires a comparison of the fair value of the reporting unit to its respective carrying value. If the carrying value of a reporting unit is less than its fair value no impairment exists. If the carrying amount of a reporting unit is higher than its fair value an impairment loss is recorded for the difference and charged to operations. The Company assesses, during the fourth quarter of each year, whether it is more likely than not that an indefinite-lived intangible asset is impaired by considering all relevant events and circumstances that could affect the significant inputs used to determine the fair value of the indefinite-lived intangible asset. |
Property and Equipment | Property and Equipment Property and equipment held for use is stated at cost, net of any impairment recorded. The cost and accumulated depreciation of disposed property and equipment are removed from the accounts with any related gain or loss reflected in earnings from operations. Depreciation of property and equipment is provided on a straight-line basis over the lesser of the asset’s useful life or lease term. Depreciable lives are summarized as follows: Boeing 777, 767, 757 and 737 aircraft and flight equipment 7 to 18 years Ground equipment 3 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years The Company periodically evaluates the useful lives, salvage values and fair values of property and equipment. Acceleration of depreciation expense or the recording of significant impairment losses could result from changes in the estimated useful lives of assets due to a number of reasons, such as excess aircraft capacity or changes in regulations governing the use of aircraft. Aircraft and other long-lived assets are tested for impairment when circumstances indicate the carrying value of the assets may not be recoverable. To conduct impairment testing, the Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset group are less than the carrying value. If impairment exists, an adjustment is recorded to write the assets down to fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined considering quoted market values, discounted cash flows or internal and external appraisals, as applicable. For assets held for sale, impairment is recognized when the fair value less the cost to sell the asset is less than the carrying value. The Company’s accounting policy for major airframe and engine maintenance varies by subsidiary and aircraft type. The costs of airframe maintenance for Boeing 767-200 aircraft operated by ABX are expensed as they are incurred. The costs of major airframe maintenance for the Company's other aircraft are capitalized and amortized over the useful life of the overhaul. Many of the Company's General Electric CF6 engines that power the Boeing 767-200 aircraft are maintained under a "power by the cycle" agreement with an engine maintenance provider. Further, in May 2017, the Company entered into similar maintenance agreements for certain General Electric CF6 engines that power many of the Company's Boeing 767-300 aircraft. Under these agreements, the engines are maintained by the service provider for a fixed fee per cycle. As a result, the cost of maintenance for these engines is generally expensed as flights occur. Maintenance for the airlines’ other aircraft engines, including Boeing 777 and Boeing 757 aircraft, are typically contracted to service providers on a time and material basis and the costs of those engine overhauls are capitalized and amortized over the useful life of the overhaul. For aircraft leased from external lessors, the Company may be required to make periodic payments to the lessor under certain aircraft leases for future maintenance events such as engine overhauls and major airframe maintenance. Such payments are recorded as deposits until drawn for qualifying maintenance costs. The maintenance costs are expensed or capitalized in accordance with the airline's accounting policy for major airframe and engine maintenance. The Company evaluates at the balance sheet date, whether it is probable that an amount on deposit will be returned by the lessor to reimburse the costs of the maintenance activities. When it is less than probable that a deposit will be returned, it is recognized as additional maintenance expense. |
Capitalized Interest | Capitalized Interest |
Discontinued Operations | Discontinued Operations A business component whose operations are discontinued is reported as discontinued operations if the cash flows of the component have been eliminated from the ongoing operations of the Company and represents a strategic shift that had a major impact on the Company. The results of discontinued operations are aggregated and presented separately in the consolidated statements of operations. |
Self-Insurance | Self-Insurance The Company is self-insured for certain workers’ compensation, employee healthcare, automobile, aircraft, and general liability claims. The Company maintains excess claim coverage with common insurance carriers to mitigate its exposure to large claim losses. The Company records a liability for reported claims and an estimate for incurred claims that have not yet been reported. Accruals for these claims are estimated utilizing historical paid claims data and recent claims trends. Other liabilities included $16.1 million and $17.6 million at December 31, 2019 and December 31, 2018 , respectively, for self-insured reserves. Changes in claim severity and frequency could result in actual claims being materially different than the costs accrued. |
Income Taxes | Income Taxes Income taxes have been computed using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against net deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. All deferred income taxes are classified as noncurrent in the statement of financial position. The Company recognizes the benefit of a tax position taken on a tax return, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. An uncertain income tax position is not recognized if it has less than a 50% likelihood of being sustained. The Company recognizes interest and penalties accrued related to uncertain tax positions in operating expense. |
Purchase of Common Stock [Policy Text Block] | Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. |
Issuance of Stock Warrants [Policy Text Block] | Stock Warrants The Company’s accounting for warrants issued to a lessee is determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments. The warrants issued to a lessee are recorded as a lease incentive asset using their fair value at the time of issuance. The lease incentive is amortized against revenues over the duration of related aircraft leases. The unexercised warrants are classified in liabilities and re-measured to fair value at the end of each reporting period, resulting in a non-operating gain or loss. |
Comprehensive Income | Comprehensive Income Comprehensive income includes net earnings and other comprehensive income or loss. Other comprehensive income or loss results from certain changes in the Company’s liabilities for pension and other post-retirement benefits, gains and losses associated with interest rate hedging instruments and fluctuations in currency exchange rates related to the foreign affiliate. |
Fair Value Information | Fair Value Information Assets or liabilities that are required to be measured at fair value are reported using the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820-10 Fair Value Measurements and Disclosures establishes three levels of input that may be used to measure fair value: • Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. • Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. |
Revenue Recognition | Revenue Recognition Aircraft lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Revenues generated from airline service agreements are typically recognized based on hours flown or the amount of aircraft and crew resources provided during a reporting period. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are typically measured on a monthly basis and recorded to revenue in the corresponding month earned. Revenues for operating expenses that are reimbursed through airline service agreements, including consumption of aircraft fuel, are generally recognized net, as the costs are incurred. Revenues from charter service agreements are recognized on scheduled and non-scheduled flights when the specific flight has been completed. Contracts for the sale of aircraft parts typically result in the recognition of revenue when the parts are delivered. Effective January 1, 2018, the Company records revenues and estimated earnings over time for its airframe maintenance and aircraft modification contracts based on the percentage of costs completed. Prior to January 1, 2018, revenues earned and expenses incurred in providing aircraft-related maintenance, repair or modification services were usually recognized in the period in which the services were completed and delivered to the customer. Revenues derived from sorting parcels are recognized in the reporting period in which the services are performed. |
New Accounting Pronouncements | Accounting Standards Updates Effective January 1, 2018, the Company adopted the Financial Accounting Standards Board's ("FASB") Accounting Standards Update ("ASU") No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” ("Topic 606”) which superseded previous revenue recognition guidance. Topic 606 is a comprehensive revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The Company's lease revenues within the scope of Accounting Standards Codification 840, Leases, ("Topic 840") are specifically excluded from Topic 606. The Company determined that under Topic 606, it is an agent for aviation fuel and certain other costs reimbursed by customers under its ACMI and CMI contracts and for certain cargo handling services that it arranges for a customer. Under Topic 606, such reimbursed amounts are reported net of the corresponding expenses beginning in 2018. This application of Topic 606 did not have a material impact on the Company's reported earnings in any period. Under Topic 606, the Company is required to record revenue over time, instead of at the time of completion, for certain customer contracts for airframe and modification services that do not have an alternative use and for which the Company has an enforceable right to payment during the service cycle. The Company adopted the provisions of this new standard using the modified retrospective method which required the Company to record a one-time adjustment to retained earnings for the cumulative effect that the standard had on open contracts at the time of adoption. In conjunction with the adoption of the new standard, the Company accelerated $3.6 million of revenue resulting in an immaterial adjustment to its January 1, 2018 retained deficit for open airframe and modification services contracts. Effective January 1, 2019, the Company adopted the FASB's ASU No. 2016-02, “Leases (Topic 842)” which superseded previous lease guidance ASC 840, Leases. Topic 842 is a new lease model that requires a company to recognize right-of-use (“ROU”) assets and lease liabilities on the balance sheet. The Company adopted the standard using the modified retrospective approach that does not require the restatement of prior year financial statements. The adoption of Topic 842 did not have a material impact on the Company’s consolidated statement of operations and consolidated statement of cash flows. The adoption of Topic 842 resulted in the recognition of ROU assets and corresponding lease liabilities as of January 1, 2019 in the amount of $52.6 million for leases classified as operating leases. Topic 842 also applies to the Company's aircraft lease revenues, however, the adoption of Topic 842 did not have a significant impact on the Company's accounting for its customer lease agreements. The Company adopted the package of practical expedients and transition provisions available for expired or existing contracts, which allowed the Company to carryforward its historical assessments of 1) whether contracts are or contain leases, 2) lease classification, and 3) initial direct costs. Additionally, for real estate leases, the Company adopted the practical expedient that allows lessees to treat the lease and non-lease components of leases as a single lease component. The Company also elected the hindsight practical expedient to determine the reasonably certain lease term for existing leases. Further, the Company elected the short-term lease exception policy, permitting it to exclude the recognition requirements for leases with terms of 12 months or less. See Note I for additional information about leases. In February 2018, the FASB issued ASU No. 2018-02 “Reclassification of Certain Tax Effects From Accumulated Other Comprehensive Income" ("ASU 2018-02"). ASU 2018-02 amends ASC 220, Income Statement - Reporting Comprehensive Income, to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. federal tax legislation known as the Tax Cuts and Jobs Act. ASU 2018-02 is effective for years beginning after December 15, 2018 and interim periods within those fiscal years. The Company elected to retain stranded tax effects in accumulated other comprehensive income. In June 2018, the FASB issued ASU No. 2018-07 “Improvements to Non-employee Share-based Payment Accounting" ("ASU 2018-07"). ASU 2018-07 amends ASC 718, "Compensation - Stock Compensation" ("ASC 718"), with the intent of simplifying the accounting for share-based payments granted to non-employees for goods and services and aligning the accounting for share-based payments granted to non-employees with the accounting for share-based payments granted to employees. The Company adopted ASU 2018-07 on January 1, 2019 using the modified retrospective approach as required. ASU 2018-07 replaced ASC 505-50, "Equity-Based Payments to Nonemployees" ("ASC 505-50") which was previously applied by the Company for warrants granted to Amazon.com, Inc. ("Amazon") as customer incentives. As a result of ASU 2018-07, the Company applied accounting guidance for financial instruments to the unvested warrants conditionally granted to Amazon in conjunction with an investment agreement reached with Amazon on December 22, 2018. Applying ASU 2018-07 as of January 1, 2019, through the modified retrospective approach, resulted in the recognition of $176.9 million for unvested warrant liabilities, $100.1 million for customer incentive assets and cumulative-effect adjustments of $71.4 million, net of tax, to reduce retained earnings for customer incentives that were not probable of being realized. The adoption of ASU 2018-07 on January 1, 2019 did not have an impact on the accounting for vested warrants. In January 2017, the FASB issued ASU "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" (“ASU 2017-04”). This new standard eliminates Step 2 from the goodwill impairment test and requires an entity to perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value. ASU 2017-04 is effective for any annual or interim goodwill impairment tests in the fiscal years beginning after December 15, 2019 and must be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted this new accounting guidance on January 1, 2018. The adoption did not have an impact on the Company's financial position, results of operations, or cash flows. In March 2017, the FASB issued ASU "Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost "(ASU 2017-07"). ASU 2017-07 requires an employer to report the service cost component of retiree benefits in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit costs are required to be presented separately from the service cost component and outside a subtotal of income from operations. The Company adopted ASU 2017-07 on January 1, 2018, retrospectively to all periods presented. As a result, retiree benefit plan interest expense, investment returns, settlements and other non-service cost components of retiree benefit expenses are excluded from the Company's operating income subtotal as reported in the Company's Consolidated Statement of Operations, but remain included in earnings before income taxes. Information about retiree benefit plans' interest expense, investment returns and other components of retiree benefit expenses can be found in Note J. In June 2016, the FASB issued ASU "Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments. ("ASU 2016-13"). Under ASU 2016-13, an entity is required to utilize an “expected credit loss model” on certain financial instruments, including trade receivables. This model requires an entity to estimate expected credit losses over the lifetime of the financial asset including trade receivables that are not past due. Operating lease receivables are not within the scope of Topic 326. ASU 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. The Company adopted the ASU effective January 1, 2020 and does not expect the adoption to have a material impact on the consolidated financial statements or related disclosures. |
Summary of Financial Statemen_3
Summary of Financial Statement Preparation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Property, Plant and Equipment | Depreciable lives are summarized as follows: Boeing 777, 767, 757 and 737 aircraft and flight equipment 7 to 18 years Ground equipment 3 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years December 31, December 31, Flight equipment $ 2,598,113 $ 2,340,840 Ground equipment 59,628 57,455 Leasehold improvements, facilities and office equipment 33,649 28,745 Aircraft modifications and projects in progress 220,827 74,449 2,912,217 2,501,489 Accumulated depreciation (1,146,197 ) (946,484 ) Property and equipment, net $ 1,766,020 $ 1,555,005 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Lease Incentive Intangible [Table Text Block] | The Company's lease incentive granted to the lessee was as follows (in thousands): Lease Incentive Carrying value as of December 31, 2017 $ 80,684 Amortization (16,904 ) Carrying value as of December 31, 2018 $ 63,780 Adoption of ASU 2018-07 100,076 Amortization (17,178 ) Carrying value as of December 31, 2019 $ 146,678 |
Schedule of Goodwill | The carrying amounts of goodwill are as follows (in thousands): CAM ACMI Services All Other Total Carrying value as of December 31, 2017 $ 34,395 $ — $ 2,884 $ 37,279 Acquisition of Omni 118,895 234,571 — 353,466 Carrying value as of December 31, 2018 $ 153,290 $ 234,571 $ 2,884 $ 390,745 Acquisition of TriFactor — — 5,229 5,229 Carrying value as of December 31, 2019 $ 153,290 $ 234,571 $ 8,113 $ 395,974 |
Schedule Intangible Assets by Major Class | The Company's acquired intangible assets are as follows (in thousands): Airline Amortizing Certificates Intangibles Total Carrying value as of December 31, 2017 $ 3,000 $ 4,298 $ 7,298 Acquisition of Omni 6,000 134,000 140,000 Amortization — (2,684 ) (2,684 ) Carrying value as of December 31, 2018 $ 9,000 $ 135,614 $ 144,614 Amortization — (11,434 ) (11,434 ) Right of use asset — (1,500 ) (1,500 ) Carrying value as of December 31, 2019 $ 9,000 $ 122,680 $ 131,680 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands): As of December 31, 2019 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 1,129 $ — $ 1,129 Interest rate swap — 111 — 111 Total Assets $ — $ 1,240 $ — $ 1,240 Liabilities Interest rate swap $ — $ (8,237 ) $ — $ (8,237 ) Stock warrant obligations — (340,767 ) (42,306 ) (383,073 ) Total Liabilities $ — $ (349,004 ) $ (42,306 ) $ (391,310 ) As of December 31, 2018 Fair Value Measurement Using Total Level 1 Level 2 Level 3 Assets Cash equivalents—money market $ — $ 17,986 $ — $ 17,986 Interest rate swap — 2,971 — 2,971 Total Assets $ — $ 20,957 $ — $ 20,957 Liabilities Interest rate swap $ — $ (1,138 ) $ — $ (1,138 ) Stock warrant obligation — (203,782 ) — (203,782 ) Total Liabilities $ — $ (204,920 ) $ — $ (204,920 ) |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Depreciable lives are summarized as follows: Boeing 777, 767, 757 and 737 aircraft and flight equipment 7 to 18 years Ground equipment 3 to 10 years Leasehold improvements, facilities and office equipment 3 to 25 years December 31, December 31, Flight equipment $ 2,598,113 $ 2,340,840 Ground equipment 59,628 57,455 Leasehold improvements, facilities and office equipment 33,649 28,745 Aircraft modifications and projects in progress 220,827 74,449 2,912,217 2,501,489 Accumulated depreciation (1,146,197 ) (946,484 ) Property and equipment, net $ 1,766,020 $ 1,555,005 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Convertible Debt [Table Text Block] | The carrying value of the Company's convertible debt is shown below. December 31, December 31, 2019 2018 Principal value, Convertible Senior Notes, due 2024 258,750 258,750 Unamortized issuance costs (4,864 ) (5,799 ) Unamortized discount (40,425 ) (48,105 ) Convertible debt 213,461 204,846 |
Schedule of Long-term Debt Instruments | Debt obligations consisted of the following (in thousands): December 31, December 31, 2019 2018 Unsubordinated term loans $ 626,277 $ 721,406 Revolving credit facility 632,900 475,000 Convertible debt 213,461 204,846 Other financing arrangements 11,746 — Total debt obligations 1,484,384 1,401,252 Less: current portion (14,707 ) (29,654 ) Total long term obligations, net $ 1,469,677 $ 1,371,598 |
Schedule of Maturities of Long-term Debt | The scheduled cash principal payments for the Company's debt obligations, as of December 31, 2019, for the next five years are as follows (in thousands): Principal Payments 2020 $ 16,481 2021 16,491 2022 32,378 2023 32,389 2024 1,432,050 2025 and beyond 8,607 Total principal cash payments 1,538,396 Less: unamortized issuance costs and discounts (54,012 ) Total debt obligations $ 1,484,384 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | As of December 31, 2019, the maturities of operating lease liabilities are as follows (in thousands): Operating Leases 2020 $ 14,549 2021 10,425 2022 6,764 2023 6,138 2024 4,940 2025 and beyond 5,155 Total undiscounted cash payments 47,971 Less: amount representing interest (4,780 ) Present value of future minimum lease payments 43,191 Less: current obligations under leases 12,857 Long-term lease obligation $ 30,334 |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments of the Company as of December 31, 2018 are scheduled below (in thousands): Operating Leases 2019 $ 17,505 2020 15,418 2021 12,703 2022 6,735 2023 4,641 2024 and beyond 12,462 Total minimum lease payments $ 69,464 |
Schedules of Concentration of Risk, by Risk Factor | As of December 31, 2019 , the flight crewmember employees of ABX, ATI and Omni and flight attendant employees of ATI and Omni were represented by the labor unions listed below: Airline Labor Agreement Unit Percentage of the Company’s Employees ABX International Brotherhood of Teamsters 5.3% ATI Air Line Pilots Association 8.3% OAI International Brotherhood of Teamsters 7.1% ATI Association of Flight Attendants 0.9% OAI Association of Flight Attendants 7.3% |
Pension and Other Post-Retire_2
Pension and Other Post-Retirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | Funded Status (in thousands): Pension Plans Post-retirement Healthcare Plans 2019 2018 2019 2018 Accumulated benefit obligation $ 779,031 $ 690,729 $ 3,707 $ 3,824 Change in benefit obligation Obligation as of January 1 $ 690,729 $ 740,783 $ 3,824 $ 4,056 Service cost — — 107 123 Interest cost 31,299 29,135 148 127 Plan transfers 3,313 1,603 — — Benefits paid (31,718 ) (29,439 ) (365 ) (365 ) Actuarial (gain) loss 85,408 (51,353 ) (7 ) (117 ) Obligation as of December 31 $ 779,031 $ 690,729 $ 3,707 $ 3,824 Change in plan assets Fair value as of January 1 $ 625,646 $ 681,573 $ — $ — Actual gain (loss) on plan assets 144,108 (51,274 ) — — Plan transfers 3,313 1,603 — — Return of excess premiums — 963 — — Employer contributions 5,414 22,220 365 365 Benefits paid (31,718 ) (29,439 ) (365 ) (365 ) Fair value as of December 31 $ 746,763 $ 625,646 $ — $ — Funded status Overfunded plans, net asset $ 4,996 $ — $ — $ — Underfunded plans Current liabilities $ (3,796 ) $ (3,971 ) $ (431 ) $ (451 ) Non-current liabilities $ (33,468 ) $ (61,112 ) $ (3,276 ) $ (3,373 ) |
Schedule of Net Benefit Costs | ABX’s net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for the years ended December 31, 2019, 2018 and 2017, are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plan 2019 2018 2017 2019 2018 2017 Service cost $ — $ — $ — $ 107 $ 123 158 Interest cost 31,299 29,135 33,585 148 127 142 Expected return on plan assets (37,907 ) (42,093 ) (42,080 ) — — — Curtailments and settlements — — 12,923 — — — Amortization of prior service cost — — — — — (51 ) Amortization of net (gain) loss 15,528 3,547 7,778 172 219 283 Net periodic benefit cost (income) $ 8,920 $ (9,411 ) $ 12,206 $ 427 $ 469 $ 532 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense at December 31 are as follows (in thousands): Pension Plans Post-Retirement Healthcare Plans 2019 2018 2019 2018 Unrecognized prior service cost $ — $ — $ — $ — Unrecognized net actuarial loss 89,871 126,192 1,031 1,210 Accumulated other comprehensive loss $ 89,871 $ 126,192 $ 1,031 $ 1,210 |
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The amounts of unrecognized net actuarial loss recorded in accumulated other comprehensive loss that is expected to be recognized as components of net periodic benefit expense during 2020 is $3.8 million and $0.1 million for the pension plans and the post-retirement healthcare plans, respectively. |
Schedule of Assumptions Used | Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows: Pension Plans 2019 2018 2017 Discount rate - crewmembers 3.65% 4.65% 4.00% Discount rate - non-crewmembers 3.70% 4.65% 4.05% Expected return on plan assets 6.10% 6.20% 6.25% |
Schedule of Allocation of Plan Assets | The pension plan assets measured at fair value on a recurring basis were as follows (in thousands): As of December 31, 2019 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 3,467 $ 3,467 Corporate stock 14,553 442 14,995 Mutual funds 59,710 117,067 176,777 Fixed income investments — 549,441 549,441 Benefit Plan Assets $ 74,263 $ 670,417 $ 744,680 Investments measured at net asset value ("NAV") 2,083 Total benefit plan assets $ 746,763 As of December 31, 2018 Fair Value Measurement Using Total Level 1 Level 2 Plan assets Common trust funds $ — $ 3,961 $ 3,961 Corporate stock 13,142 — 13,142 Mutual funds 48,645 91,085 139,730 Fixed income investments 2,065 462,149 464,214 Benefit Plan Assets $ 63,852 $ 557,195 $ 621,047 Investments measured at net asset value ("NAV") 4,599 Total benefit plan assets $ 625,646 The weighted-average asset allocations by asset category are as shown below: Composition of Plan Assets as of December 31 Asset category 2019 2018 Cash — % 1 % Equity securities 26 % 25 % Fixed income securities 74 % 74 % 100 % 100 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the respective plans as follows (in thousands): Pension Benefits Post-retirement Healthcare Benefits 2020 $ 37,829 $ 431 2021 38,583 483 2022 41,350 511 2023 43,759 545 2024 45,496 520 Years 2025 to 2029 239,019 1,724 |
Schedule of Level Three Defined Benefit Plan Assets Roll Forward | The following table presents investments measured at fair value based on NAV per share as a practical expedient: Fair Value Redemption Frequency Redemption Notice Period Unfunded Commitments As of December 31, 2019 Hedge Funds & Private Equity $ 2,083 (1) (2) 90 days $ — Real Estate — (3) 90 days — Total investments measured at NAV $ 2,083 $ — As of December 31, 2018 Hedge Funds & Private Equity $ 4,599 (1) (2) 90 days $ — Real Estate — (3) 90 days — Total investments measured at NAV $ 4,599 $ — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The significant components of the deferred income tax assets and liabilities as of December 31, 2019 and 2018 are as follows (in thousands): December 31 2019 2018 Deferred tax assets: Net operating loss carryforward and federal credits $ 40,467 $ 55,760 Lease Obligation 9,070 — Warrants 17,174 7,314 Post-retirement employee benefits 6,355 13,777 Employee benefits other than post-retirement 9,435 8,751 Inventory reserve 2,055 2,374 Deferred revenue 5,132 4,389 Other 9,309 5,333 Deferred tax assets 98,997 97,698 Deferred tax liabilities: Accelerated depreciation (192,651 ) (189,719 ) Partnership items (6,088 ) (5,850 ) Operating lease assets (9,051 ) — Goodwill (4,916 ) (620 ) State taxes (12,355 ) (14,474 ) Valuation allowance against deferred tax assets (1,412 ) (278 ) Deferred tax liabilities (226,473 ) (210,941 ) Net deferred tax (liability) $ (127,476 ) $ (113,243 ) |
Schedule of Components of Income Tax Expense (Benefit) | The following summarizes the Company’s income tax provisions (benefits) (in thousands): Years Ended December 31 2019 2018 2017 Current taxes: Federal $ 1,332 $ — $ 9 Foreign 1 — 48 State 138 1,043 590 Deferred taxes: Federal 14,155 15,642 27,625 Foreign — (63 ) — State (3,677 ) 2,973 3,396 Change in federal statutory tax rates — — (59,944 ) Total deferred tax expense 10,478 18,552 (28,923 ) Total income tax expense (benefit) from continuing operations $ 11,589 $ 19,595 $ (28,276 ) Income tax expense (benefit) from discontinued operations $ 360 $ 434 $ (1,848 ) |
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income tax from continuing operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows: Years Ended December 31 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 35.0 % Foreign income taxes — % (0.1 )% (0.5 )% State income taxes, net of federal tax benefit 1.4 % (0.2 )% (39.7 )% Tax effect of non-deductible warrant expense (2.9 )% (1.5 )% (485.0 )% Tax effect of stock compensation — % (0.8 )% 21.7 % Tax effect of other non-deductible expenses 1.7 % 0.8 % (19.6 )% Change in federal and state tax laws — % — % 917.2 % Change to state statutory tax rates (5.4 )% 3.8 % — % Other 0.4 % (0.6 )% 3.5 % Effective income tax rate 16.2 % 22.4 % 432.6 % |
Schedule of Effective Income Tax Rate Reconciliation, Discontinued Operations | The reconciliation of income tax from discontinued operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows: Years Ended December 31 2019 2018 2017 Statutory federal tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal tax benefit 1.8 % 2.6 % 1.3 % Change in federal statutory tax rates — % — % — % Effective income tax rate 22.8 % 23.6 % 36.3 % |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The table below provides information about the Company’s interest rate swaps (in thousands): December 31, 2019 December 31, 2018 Expiration Date Stated Interest Rate Notional Amount Market Value (Liability) Notional Amount Market Value (Liability) May 5, 2021 1.090 % 20,625 111 28,125 650 May 30, 2021 1.703 % 20,625 (25 ) 28,125 366 December 31, 2021 2.706 % 146,250 (3,242 ) 150,000 (1,138 ) March 31, 2022 1.900 % 50,000 (408 ) 50,000 829 March 31, 2022 1.950 % 75,000 (696 ) 75,000 1,126 March 31, 2023 2.425 % 148,125 (3,866 ) — — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) includes the following items by components for the years ended December 31, 2019, 2018 and 2017 (in thousands): Defined Benefit Pension Defined Benefit Post-Retirement Foreign Currency Translation Total Balance as of January 1, 2017 (77,088 ) (1,301 ) (1,477 ) (79,866 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 3,116 63 — 3,179 Foreign currency translation adjustment — — 195 195 Amounts reclassified from accumulated other comprehensive income: Plan curtailment and settlement 12,923 — 12,923 Actuarial costs (reclassified to salaries, wages and benefits) 7,778 283 — 8,061 Negative prior service cost (reclassified to salaries, wages and benefits) — (51 ) — (51 ) Income Tax (Expense) or Benefit (7,304 ) (91 ) (66 ) (7,461 ) Other comprehensive income (loss), net of tax 16,513 204 129 16,846 Balance as of December 31, 2017 (60,575 ) (1,097 ) (1,348 ) (63,020 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities (41,051 ) 117 — (40,934 ) Foreign currency translation adjustment — — (171 ) (171 ) Amounts reclassified from accumulated other comprehensive income: Actuarial costs (reclassified to salaries, wages and benefits) 3,547 219 — 3,766 Income Tax (Expense) or Benefit 9,037 (80 ) 40 8,997 Other comprehensive income (loss), net of tax (28,467 ) 256 (131 ) (28,342 ) Balance as of December 31, 2018 (89,042 ) (841 ) (1,479 ) (91,362 ) Other comprehensive income (loss) before reclassifications: Actuarial gain (loss) for retiree liabilities 20,793 7 — 20,800 Foreign currency translation adjustment — — (18 ) (18 ) Amounts reclassified from accumulated other comprehensive income: Foreign currency loss — — 2,253 2,253 Actuarial costs (reclassified to salaries, wages and benefits) 15,528 172 — 15,700 Income Tax (Expense) or Benefit (8,431 ) (40 ) (768 ) (9,239 ) Other comprehensive income (loss), net of tax 27,890 139 1,467 29,496 Balance as of December 31, 2019 (61,152 ) (702 ) (12 ) (61,866 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Equity Instruments Other Than Options, Activity | The table below summarizes award activity. Year Ended December 31 2019 2018 2017 Number of Awards Weighted average grant-date fair value Number of Awards Weighted average grant-date fair value Number of Awards Weighted average grant-date fair value Outstanding at beginning of period 969,928 $ 15.89 873,849 $ 12.30 1,040,569 $ 9.97 Granted 302,596 23.22 304,795 24.18 243,940 17.52 Converted (291,064 ) 17.14 (205,616 ) 12.74 (320,810 ) 9.47 Expired (7,900 ) 23.78 (500 ) 28.38 (82,050 ) 9.22 Forfeited (9,728 ) 23.37 (2,600 ) 26.76 (7,800 ) 13.55 Outstanding at end of period 963,832 $ 17.67 969,928 $ 15.89 873,849 $ 12.30 Vested 476,389 $ 11.11 463,422 $ 10.25 441,424 $ 7.61 |
Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions | The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2019, 2018 and 2017 using daily stock prices and using the following variables: 2019 2018 2017 Risk-free interest rate 2.5% 2.4% 1.7% Volatility 35.6% 33.8% 34.7% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts): December 31 2019 2018 2017 Numerator: Earnings from continuing operations - basic $ 59,983 $ 67,883 $ 21,740 Gain from stock warrants revaluation, net of tax (6,219 ) (7,118 ) — Earnings from continuing operations - diluted $ 53,764 $ 60,765 $ 21,740 Denominator: Weighted-average shares outstanding for basic earnings per share 58,899 58,765 58,907 Common equivalent shares: Effect of stock-based compensation awards and warrants 10,449 9,591 779 Weighted-average shares outstanding assuming dilution 69,348 68,356 59,686 Basic earnings per share from continuing operations $ 1.02 $ 1.16 $ 0.37 Diluted earnings per share from continuing operations $ 0.78 0.89 $ 0.36 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | |
Segment Reporting, Additional Information about Entity's Reportable Segments | The Company's other segment information from continuing operations is presented below (in thousands): Year Ended December 31, 2019 2018 2017 Depreciation and amortization expense: CAM $ 158,470 $ 126,856 $ 108,106 ACMI Services 96,191 49,068 41,929 All other 2,871 2,971 4,521 Total $ 257,532 $ 178,895 $ 154,556 Interest expense CAM 38,300 21,819 15,585 ACMI Services 24,950 6,269 810 Segment earnings (loss): CAM $ 68,643 $ 65,576 $ 61,510 ACMI Services 32,055 11,448 7,747 All other 13,422 11,170 13,748 Net unallocated interest expense (3,024 ) (460 ) (512 ) Net gain (loss) on financial instruments (12,302 ) 7,296 (79,789 ) Transaction fees (373 ) (5,264 ) — Other non-service components of retiree benefit costs, net (9,404 ) 8,180 (6,105 ) Loss from non-consolidated affiliate (17,445 ) (10,468 ) (3,135 ) Pre-tax earnings from continuing operations $ 71,572 $ 87,478 $ (6,536 ) |
Schedule of Segment Reporting Information, by Segment | The effects of Topic 606 on the Company's customer revenues and earnings are summarized below for the year of adoption: For the year ended December 31, 2018 As Reported Without Topic 606 Increase (decrease) Revenue CAM $ 156,516 $ 156,516 $ — ACMI Services 548,804 743,112 (194,308 ) All other 187,025 350,012 (162,987 ) Total Revenue 892,345 1,249,640 (357,295 ) Operating Expense 781,327 1,138,462 (357,135 ) Earnings (Loss) from Continuing Operations before Income Taxes 87,478 87,638 (160 ) Income Tax Benefit (Expense) (19,595 ) (19,559 ) (36 ) Income from Continuing Operations $ 67,883 $ 68,079 $ (196 ) The Company's segment information from continuing operations is presented below (in thousands): Year Ended December 31 2019 2018 2017 Total revenues: CAM $ 285,276 $ 228,956 $ 209,213 ACMI Services 1,078,288 548,839 614,741 All other 314,014 286,579 433,208 Eliminate inter-segment revenues (225,395 ) (172,029 ) (188,962 ) Total $ 1,452,183 $ 892,345 $ 1,068,200 Customer revenues: CAM $ 168,106 $ 156,516 $ 140,434 ACMI Services 1,078,143 548,804 614,721 All other 205,934 187,025 313,045 Total $ 1,452,183 $ 892,345 $ 1,068,200 |
Reconciliation of Assets from Segment to Consolidated | The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other. December 31 2019 2018 2017 Assets: CAM $ 1,857,687 $ 1,577,182 $ 1,192,890 ACMI Services 830,620 759,131 189,379 Discontinued operations 1,499 — — All other 130,372 134,272 166,575 Total $ 2,820,178 $ 2,470,585 $ 1,548,844 |
Revenue from External Customers by Products and Services | The Company's external customer revenues from other activities for the years ending December 31, 2019, 2018 and 2017 are presented below (in thousands): Year Ended December 31, 2019 2018 2017 Aircraft maintenance, modifications and part sales $ 117,772 $ 117,832 $ 106,767 Ground services 69,596 66,567 204,151 Other, including aviation fuel sales 18,566 2,626 2,127 Total customer revenues $ 205,934 $ 187,025 $ 313,045 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | Carrying amounts of significant assets and liabilities of the discontinued operations are below (in thousands): December 31 2019 2018 Assets Pension assets, net of obligations 1,499 — Total Assets 1,499 — Liabilities Employee compensation and benefits $ 15,189 $ 16,807 Post-retirement — 846 Total Liabilities $ 15,189 $ 17,653 |
Quarterly Results (Unaudited) (
Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | The following is a summary of quarterly results of operations (in thousands, except per share amounts): 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2019 (1) Revenues from continuing operations $ 348,183 $ 334,576 $ 366,073 $ 403,351 Operating income from continuing operations 46,528 37,482 40,766 52,221 Net earnings (loss) from continuing operations 22,634 (26,632 ) 105,085 (41,104 ) Net earnings from discontinued operations 31 31 243 914 Weighted average shares: Basic 58,838 58,909 58,919 58,929 Diluted 60,437 58,909 68,718 58,929 Earnings (loss) per share from continuing operations Basic $ 0.38 $ (0.45 ) $ 1.78 $ (0.70 ) Diluted $ 0.25 $ (0.45 ) $ 0.19 $ (0.70 ) 2018 (2) Revenues from continuing operations $ 203,040 $ 203,607 $ 204,919 $ 280,779 Operating income from continuing operations 27,643 23,898 26,827 32,650 Net earnings (loss) from continuing operations 15,682 24,464 32,933 (5,196 ) Net earnings (loss) from discontinued operations 196 170 170 866 Weighted average shares: Basic 58,840 58,739 58,739 58,740 Diluted 59,558 68,363 68,323 58,740 Earnings (loss) per share from continuing operations Basic $ 0.27 $ 0.42 $ 0.56 $ (0.09 ) Diluted $ 0.26 $ 0.21 $ 0.24 $ (0.09 ) |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Acquisition [Line Items] | |
Business Combination, Segment Allocation [Table Text Block] | Based on the valuations, the following table summarizes estimated fair values of the assets acquired and liabilities assumed (in thousands) for the consideration paid: Cash $ 4,693 Accounts receivable 63,041 Other current assets 8,366 Other assets 7,836 Intangibles 140,000 Goodwill 353,466 Property and equipment 328,869 Current liabilities (32,646 ) Customer deposits (5,950 ) Net assets acquired $ 867,675 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table provides unaudited pro forma financial results (in thousands) for the Company after giving effect to the acquisition of Omni and adjustments described below. This information is based on adjustments to the historical consolidated financial statements of Omni using the purchase method of accounting for business combinations as if the acquisition had taken place on January 1, 2017. The unaudited pro forma adjustments do not include any of the cost savings and other synergies which may result from the acquisition. These unaudited pro forma financial results are based on assumptions considered appropriate by management and include all material adjustments as considered necessary. These unaudited pro forma results have been prepared for comparative purposes only and do not purport to be indicative of results that would have actually been reported as of the date or for the year presented had the acquisition taken place on such date or at the beginning of the year indicated, or to project the Company’s financial position or results of operations which may be reported in the future (in thousands). Year Ended December 31, 2018 2017 Pro forma revenues 1,320,234 1,425,823 Pro forma net earnings from continuing operations 88,454 13,660 |
Investments in Non-Consolidat_2
Investments in Non-Consolidated Affiliates (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Noncontrolling Interest [Line Items] | |
Financial Information non-controlling affiliate, statement of operations [Table Text Block] | The following table presents combined condensed information from the statements of operations of the Company's non-consolidated affiliates (in thousands): Year Ended December 31, 2019 2018 2017 Revenues $ 114,265 $ 202,028 $ 172,526 Expenses (143,775 ) (228,169 ) (196,334 ) Income (Loss) $ (29,510 ) $ (26,141 ) $ (23,808 ) |
Financial Information non-controlling affiliate [Table Text Block] | The following table presents combined condensed balance sheet information for our unconsolidated affiliates (in thousands): December 31, 2019 2018 Current assets $ 64,392 $ 64,262 Non current assets 213,940 80,724 Current liabilities (155,451 ) (38,938 ) Non current liabilities (123,837 ) (102,657 ) Equity $ 956 $ (3,391 ) |
Summary of Financial Statemen_4
Summary of Financial Statement Preparation and Significant Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Restricted Cash | $ 10.6 | $ 5.3 | |
Capitalized interest | 3.7 | 1.8 | $ 1.8 |
Other liabilities for self-insured reserves | $ 16.1 | $ 17.6 | |
Minimum [Member] | Ground equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum [Member] | facilities, leasehold improvements and office equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum [Member] | Ground equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum [Member] | facilities, leasehold improvements and office equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 25 years | ||
Boeing 767 and 757 aircraft and flight equipment [Member] | Minimum [Member] | Flight Equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 7 years | ||
Boeing 767 and 757 aircraft and flight equipment [Member] | Maximum [Member] | Flight Equipment [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Property, plant and equipment, useful life | 18 years |
Significant Customers (Details)
Significant Customers (Details) - USD ($) shares in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Concentration Risk [Line Items] | |||||||||||
Accounts receivable | $ 162,870,000 | $ 147,755,000 | $ 162,870,000 | $ 147,755,000 | |||||||
Fair Value Adjustment of Warrants | (72,900,000) | $ 92,000,000 | $ (35,900,000) | $ 4,500,000 | (21,400,000) | $ 17,900,000 | $ 11,700,000 | $ (900,000) | (2,300,000) | 7,400,000 | $ (81,800,000) |
Warrant liability | 383,073,000 | 203,782,000 | $ 383,073,000 | $ 203,782,000 | |||||||
DHL [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of consolidated revenues | 14.00% | 26.00% | 24.00% | ||||||||
DHL [Member] | Revenue from customers excluding revenue from reimbursed expenses [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of consolidated revenues | 30.00% | ||||||||||
DHL [Member] | Accounts Receivable [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Accounts receivable | 12,700,000 | 13,400,000 | $ 12,700,000 | $ 13,400,000 | |||||||
Amazon [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of consolidated revenues | 23.00% | 27.00% | 44.00% | ||||||||
Amazon [Member] | Revenue from customers excluding revenue from reimbursed expenses [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of consolidated revenues | 27.00% | ||||||||||
Amazon [Member] | Accounts Receivable [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Accounts receivable | 50,100,000 | 29,200,000 | $ 50,100,000 | $ 29,200,000 | |||||||
US Military [Member] | Revenues from Leases and Contracted Services [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of consolidated revenues | 34.00% | 15.00% | 7.00% | ||||||||
US Military [Member] | Revenue from customers excluding revenue from reimbursed expenses [Member] | Customer Concentration Risk [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of consolidated revenues | 10.00% | ||||||||||
US Military [Member] | Accounts Receivable [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Accounts receivable | 44,500,000 | 50,500,000 | $ 44,500,000 | $ 50,500,000 | |||||||
Amazon Warrant AB [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Fair value warrants issued | $ 13.93 | $ 13.76 | $ 13.93 | $ 13.76 | |||||||
Class of Warrant or Right, Outstanding | 14,830 | 14,830 | |||||||||
Warrant liability | $ (206,600,000) | $ (206,600,000) | |||||||||
Amazon Warrant C [Member] [Member] | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Fair value warrants issued | $ 9.30 | $ 9.30 | |||||||||
Class of Warrant or Right, Outstanding | 24,700 | 24,700 | |||||||||
Warrant liability | $ (176,500,000) | $ (176,500,000) |
Goodwill and Other Intangible_2
Goodwill and Other Intangibles (Schedule of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | $ 5,229 | ||
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 395,974 | $ 390,745 | $ 37,279 |
Purchase Price Adjustment to Goodwill | 353,466 | ||
Carrying value, ending balance | 395,974 | 390,745 | |
ACMI Services [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | 0 | 234,571 | |
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 234,571 | 234,571 | 0 |
Carrying value, ending balance | 234,571 | 234,571 | |
CAM [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | 0 | 118,895 | |
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 153,290 | 153,290 | 34,395 |
Carrying value, ending balance | 153,290 | 153,290 | |
MRO Services [Member] [Member] | |||
Goodwill [Line Items] | |||
Goodwill, Acquired During Period | 5,229 | ||
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 8,113 | 2,884 | $ 2,884 |
Purchase Price Adjustment to Goodwill | 0 | ||
Carrying value, ending balance | $ 8,113 | $ 2,884 |
Goodwill and Other Intangible_3
Goodwill and Other Intangibles (Schedule Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||
Finite-lived Intangible Assets Acquired | $ 134,000 | ||||
intangible assets acquired | 140,000 | ||||
Below Market Lease, Amortization Income, Next Twelve Months | $ 20,500 | ||||
Incentive to Lessee | $ 80,684 | 146,678 | $ 63,780 | ||
Warranted granted adding to lease incentive intangible | $ 100,076 | ||||
Amortization of Lease Incentives | (17,178) | (16,904) | |||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||
Carrying value at beginning of period | 135,614 | 4,298 | |||
Carrying value at beginning of period | 144,614 | 7,298 | |||
Amortization expense | (11,434) | (2,684) | |||
Carrying value at end of period | 135,614 | 4,298 | 4,298 | 122,680 | $ 135,614 |
Carrying value at end of period | 131,680 | 144,614 | 7,298 | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 11,400 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 10,600 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 10,600 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 10,600 | ||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 10,600 | ||||
Below Market Lease, Amortization Income, Year Two | 22,200 | ||||
Below Market Lease, Amortization Income, Year Three | 22,300 | ||||
Below Market Lease, Amortization Income, Year Four | 17,700 | ||||
Below Market Lease, Amortization Income, Year Five | $ 14,800 | ||||
lease intangible asset reclass | (1,500) | ||||
ACMI Services [Member] | Customer Relationships [Member] | |||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||
Amortization expense | (11,400) | (2,700) | (1,200) | ||
ACMI Services [Member] | Airline Certificates [Member] | |||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||
Indefinite-lived Intangible Assets Acquired | 6,000 | ||||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |||||
Carrying value at beginning of period | 9,000 | 3,000 | |||
Amortization expense | 0 | 0 | |||
Carrying value at end of period | $ 9,000 | $ 9,000 | $ 3,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangibles Investment in West Atlantic (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Equity Method Investments [Line Items] | |||
Payments to Acquire Interest in Joint Venture | $ 12,300 | $ 11,400 | $ 8,700 |
Equity Method Investments | 10,900 | 12,500 | |
Goodwill | $ 395,974 | $ 390,745 | $ 37,279 |
Goodwill and Other Intangible_5
Goodwill and Other Intangibles Investment A321 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Payments to Acquire Interest in Joint Venture | $ 12.3 | $ 11.4 | $ 8.7 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | May 10, 2018 | Sep. 25, 2017 | |
Liabilities, Fair Value Disclosure [Abstract] | ||||
Warrant liability | $ 383,073,000 | $ 203,782,000 | ||
Fair Value, Recurring [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash equivalents - money market | 1,129,000 | 17,986,000 | ||
Derivative Asset | 111,000 | 2,971,000 | ||
Total Assets | 1,240,000 | 20,957,000 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | (1,138,000) | |||
Warrant liability | (383,073,000) | (203,782,000) | ||
Total Liabilities | (391,310,000) | (204,920,000) | ||
Carrying value, debt | 1,484,400,000 | 1,401,300,000 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash equivalents - money market | 0 | 0 | ||
Derivative Asset | 0 | 0 | ||
Total Assets | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | 0 | 0 | ||
Warrant liability | 0 | 0 | ||
Total Liabilities | 0 | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash equivalents - money market | 1,129,000 | 17,986,000 | ||
Derivative Asset | 111,000 | 2,971,000 | ||
Convertible note hedge fair value | 50,000,000 | $ 50,600,000 | $ 56,100,000 | |
Total Assets | 1,240,000 | 20,957,000 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | (8,237,000) | (1,138,000) | ||
Note conversion obligation fair value | 50,800,000 | $ 51,300,000 | $ 57,400,000 | |
Warrant liability | (340,767,000) | (203,782,000) | ||
Total Liabilities | (349,004,000) | (204,920,000) | ||
Difference between fair value and carrying value, debt | (2,700,000) | (6,000,000) | ||
Fair Value, Recurring [Member] | Level 3 [Member] | ||||
Assets, Fair Value Disclosure [Abstract] | ||||
Cash equivalents - money market | 0 | 0 | ||
Derivative Asset | 0 | 0 | ||
Total Assets | 0 | 0 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | 0 | 0 | ||
Warrant liability | (42,306,000) | 0 | ||
Total Liabilities | (42,306,000) | 0 | ||
Fair Value, Recurring [Member] | Total [Member] | ||||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Interest rate swap | (8,237,000) | |||
Amazon Warrant AB [Member] | ||||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Warrant liability | (206,600,000) | |||
Fair value warrants issued | $ 13.93 | $ 13.76 | ||
Amazon Warrant AB [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.60% | 2.50% | ||
Amazon Warrant AB [Member] | Measurement Input, Price Volatility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 35.00% | 37.50% | ||
Amazon Warrant C [Member] [Member] | ||||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Warrant liability | $ (176,500,000) | |||
Fair value warrants issued | $ 9.30 | |||
Amazon Warrant C [Member] [Member] | Measurement Input, Risk Free Interest Rate [Member] | ||||
Liabilities, Fair Value Disclosure [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.80% | |||
Amazon Warrant C [Member] [Member] | Measurement Input, Price Volatility [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 35.00% |
Property and Equipment (Schedul
Property and Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 2,912,217 | $ 2,501,489 |
Accumulated depreciation | (1,146,197) | (946,484) |
Property and equipment, net | 1,766,020 | 1,555,005 |
Flight Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Operating Leases, Future Minimum Payments Receivable, Current | 186,800 | |
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 2,598,113 | 2,340,840 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 178,200 | |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 152,000 | |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 110,100 | |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 75,500 | |
Ground equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 59,628 | 57,455 |
facilities, leasehold improvements and office equipment [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 33,649 | 28,745 |
Construction in Progress [Member] | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 220,827 | $ 74,449 |
Property and Equipment (Narrati
Property and Equipment (Narrative) (Details) - Flight Equipment [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
Minimum future lease payments, Due within next 12 months | $ 186.8 | |
Minimum future lease payments, Due within next 2 years | 178.2 | |
Minimum future lease payments, Due within next 3 years | 152 | |
Minimum future lease payments, Due within next 4 years | 110.1 | |
Minimum future lease payments, Due within next 5 years | 75.5 | |
CAM [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leased aircraft, carrying value | $ 889.3 | $ 803.7 |
Debt Obligations (Schedule of L
Debt Obligations (Schedule of Long Term Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2019 | May 28, 2019 | Nov. 09, 2018 | |
Debt Instrument [Line Items] | ||||
Total long term obligations | $ 1,401,252 | $ 1,484,384 | ||
Convertible Debt | 204,846 | 213,461 | ||
Other Long-term Debt | 0 | 11,746 | ||
Less: current portion | (29,654) | (14,707) | ||
Total long term obligations, net | $ 1,371,598 | 1,469,677 | ||
Senior Notes 2nd Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long term obligations | $ 675,000 | |||
Unsubordinated term loan and Revolving credit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Collateral, Coverage Percentage | 115.00% | |||
Unsubordinated term loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long term obligations | $ 721,406 | 626,277 | ||
Revolving credit facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long term obligations | $ 475,000 | 632,900 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | $ 645,000 | ||
line of credit, increase in maximum borrowing capacity | $ 750,000 |
Debt Obligations (Schedule of_2
Debt Obligations (Schedule of Long Term Debt Maturities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2017 | $ 16,481 | |
2018 | 16,491 | |
2019 | 32,378 | |
2020 | 32,389 | |
2021 | 1,432,050 | |
2022 and beyond | 8,607 | |
Total long term obligations | 1,484,384 | $ 1,401,252 |
Long Term Debt excluding issuance costs and discounts | 1,538,396 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (54,012) |
Debt Obligations (Narrative) (D
Debt Obligations (Narrative) (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 28, 2020 | May 28, 2019 | Nov. 09, 2018 | May 10, 2018 | Sep. 25, 2017 | |
Debt Instrument [Line Items] | ||||||||
Long term obligations | $ 1,484,384 | $ 1,401,252 | ||||||
Debt Issuance Costs, Line of Credit Arrangements, Net | 8,700 | 9,800 | ||||||
Convertible Debt | 213,461 | 204,846 | ||||||
Proceeds from Convertible Debt | 0 | $ 0 | $ 258,750 | |||||
Senior Notes 2nd Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long term obligations | $ 675,000 | |||||||
Unsubordinated term loan and Revolving credit facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Collateral coverage percentage | 115.00% | |||||||
Maximum amount of common stock authorized for repurchase | 100,000 | |||||||
Unsubordinated term loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long term obligations | $ 626,277 | $ 721,406 | ||||||
Variable interest rate | 3.675% | |||||||
Revolving credit facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Long term obligations | $ 632,900 | 475,000 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | $ 645,000 | ||||||
Variable interest rate | 3.649% | |||||||
Credit facility, revolving credit loan, remaining borrowing capacity | $ 103,900 | |||||||
Letters of credit outstanding | 13,200 | |||||||
Bonds [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unsecured Debt | $ 500,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | |||||||
Proceeds from Issuance of Unsecured Debt | $ 495,000 | |||||||
Minimum [Member] | Unsubordinated term loan and Revolving credit facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Collateral coverage percentage | 50.00% | |||||||
Convertible Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible Debt | $ 258,750 | 258,750 | $ 258,800 | |||||
Debt Conversion, Converted Instrument, Rate | 1.125% | |||||||
Debt Instrument, Interest Rate, Effective Percentage | 5.15% | |||||||
Proceeds from Convertible Debt | $ 252,300 | |||||||
Convertible note hedge shares | 8,100 | |||||||
Warrants and Rights Outstanding | $ 38,500 | |||||||
Unamortized Debt Issuance Expense | (4,864) | (5,799) | ||||||
Debt Instrument, Unamortized Discount | $ (40,425) | (48,105) | ||||||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Note conversion obligation fair value | (50,800) | $ (51,300) | $ (57,400) | |||||
Convertible note hedge fair value | $ 50,000 | $ 50,600 | $ 56,100 |
Commitments and Contingencies_2
Commitments and Contingencies (Operating Lease Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Leased Assets [Line Items] | ||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 17,000 | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.70% | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 7 months 6 days | |
Operating Leases, Future Minimum Payments, Due in Two Years | $ 17,505 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2017 | $ 14,549 | |
Total minimum lease payments | 43,191 | |
lessee, operating lease, interest due | (4,780) | |
Operating Lease, Liability, Current | 12,857 | 0 |
Operating Lease, Liability, Noncurrent | 30,334 | 0 |
Operating Leases, Future Minimum Payments, Due in Two Years | 15,418 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 12,703 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 6,735 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 4,641 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 12,462 | |
Operating Leases, Future Minimum Payments Due | $ 69,464 | |
Operating Lease, Payments | 19,700 | |
Property Subject to Operating Lease [Member] | ||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2018 | 10,425 | |
2019 | 6,764 | |
2020 | 6,138 | |
2021 | 4,940 | |
2022 and beyond | 5,155 | |
Lessee, Operating Lease, Liability, Payments, Due | $ 47,971 |
Commitments and Contingencies_3
Commitments and Contingencies (Commitments) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Long-term Purchase Commitment [Line Items] | |
aircraft purchase deposit | $ 23.2 |
Long-term Purchase Commitment, Amount | $ 369.1 |
Commitments and Contingencies_4
Commitments and Contingencies (Labor Unions) (Details) - Workforce Subject to Collective Bargaining Arrangements [Member] - Labor Unions [Member] | 12 Months Ended |
Dec. 31, 2019 | |
ABX [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 5.30% |
ATI [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 8.30% |
Omni Air International [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 7.10% |
Air Transport International, Flight Attendants [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 0.90% |
Omni Air International, Flight Attendants [Member] [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 7.30% |
Pension and Other Post-Retire_3
Pension and Other Post-Retirement Benefit Plans (Funded Status) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 4,996 | $ 0 | |
Change in benefit obligation [Roll Forward] | |||
Obligation, beginning balance | 690,729 | 740,783 | |
Service cost | 0 | 0 | $ 0 |
Interest cost | 31,299 | 29,135 | 33,585 |
Plan transfers | 3,313 | 1,603 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 31,718 | 29,439 | |
Actuarial (gain) loss | 85,408 | (51,353) | |
Obligation, ending balance | 779,031 | 690,729 | 740,783 |
Defined benefit plan, plan assets, return of excess premiums | 0 | 963 | |
Change in plan assets [Roll Forward] | |||
Plan assets, beginning balance | 625,646 | 681,573 | |
Actual gain on plan assets | 144,108 | (51,274) | |
Employer contributions | 5,414 | 22,220 | |
Plan assets, ending balance | 746,763 | 625,646 | 681,573 |
Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | 0 | 0 | |
Change in benefit obligation [Roll Forward] | |||
Obligation, beginning balance | 3,824 | 4,056 | |
Service cost | 107 | 123 | 158 |
Interest cost | 148 | 127 | 142 |
Plan transfers | 0 | 0 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | 365 | 365 | |
Actuarial (gain) loss | (7) | (117) | |
Obligation, ending balance | 3,707 | 3,824 | 4,056 |
Defined benefit plan, plan assets, return of excess premiums | 0 | 0 | |
Change in plan assets [Roll Forward] | |||
Plan assets, beginning balance | 0 | 0 | |
Actual gain on plan assets | 0 | 0 | |
Employer contributions | 365 | 365 | |
Plan assets, ending balance | 0 | 0 | $ 0 |
Other Current Liabilities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (3,796) | (3,971) | |
Other Current Liabilities [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (431) | (451) | |
Other Noncurrent Liabilities [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | (33,468) | (61,112) | |
Other Noncurrent Liabilities [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ (3,276) | $ (3,373) |
Pension and Other Post-Retire_4
Pension and Other Post-Retirement Benefit Plans (Net Periodic Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 0 | $ 0 | $ 0 |
Interest cost | 31,299 | 29,135 | 33,585 |
Expected return on plan assets | (37,907) | (42,093) | (42,080) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 12,923 |
Amortization of prior service cost | 0 | 0 | 0 |
Amortization of net (gain) loss | 15,528 | 3,547 | 7,778 |
Net periodic benefit cost (income) | 8,920 | (9,411) | 12,206 |
Pension Plans [Member] | Continuing Operations [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (5,300) | ||
Pension Plans [Member] | Discontinued Operations [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (7,600) | ||
Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 107 | 123 | 158 |
Interest cost | 148 | 127 | 142 |
Expected return on plan assets | 0 | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | (51) |
Amortization of net (gain) loss | 172 | 219 | 283 |
Net periodic benefit cost (income) | $ 427 | $ 469 | $ 532 |
Pension and Other Post-Retire_5
Pension and Other Post-Retirement Benefit Plans (Unrecognized Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 0 | $ 12,923 |
Unrecognized prior service cost | 0 | 0 | |
Unrecognized net actuarial loss | 89,871 | 126,192 | |
Accumulated other comprehensive loss | 89,871 | 126,192 | |
Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 0 | 0 | 0 |
Unrecognized prior service cost | 0 | 0 | |
Unrecognized net actuarial loss | 1,031 | 1,210 | |
Accumulated other comprehensive loss | $ 1,031 | $ 1,210 | |
Continuing Operations [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (5,300) | ||
Discontinued Operations [Member] | Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ (7,600) |
Pension and Other Post-Retire_6
Pension and Other Post-Retirement Benefit Plans (Accumulated Other Comprehensive Income (Loss) to be Recognized within 12 Months) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Pension Plans [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of actuarial loss | $ 3,800 |
Post-Retirement Healthcare Plans [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of actuarial loss | $ 100 |
Pension and Other Post-Retire_7
Pension and Other Post-Retirement Benefit Plans (Schedule of Assumptions) (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Expected return on plan assets | 6.10% | 6.20% | 6.25% |
Crewmembers [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.65% | 4.65% | 4.00% |
Non-crewmembers [Member] | Pension Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 3.70% | 4.65% | 4.05% |
Pilots [Member] | Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | |||
Discount rate | 2.60% | 4.10% | 3.30% |
Pension and Other Post-Retire_8
Pension and Other Post-Retirement Benefit Plans (Plan Asset Allocations) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 100.00% | 100.00% |
Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 0.00% | 1.00% |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 26.00% | 25.00% |
Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 74.00% | 74.00% |
Maximum [Member] | Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 10.00% | |
Maximum [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 35.00% | |
Maximum [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 80.00% | |
Maximum [Member] | US Treasury Securities [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 5.00% | |
Maximum [Member] | US Treasury Securities [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 10.00% | |
Minimum [Member] | Cash [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 0.00% | |
Minimum [Member] | Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 15.00% | |
Minimum [Member] | Fixed income securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Weighted-average asset allocation | 60.00% |
Pension and Other Post-Retire_9
Pension and Other Post-Retirement Benefit Plans (Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | $ 5,414 | $ 22,220 |
Estimated future employer contributions | 10,900 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2017 | 37,829 | |
2018 | 38,583 | |
2019 | 41,350 | |
2020 | 43,759 | |
2021 | 45,496 | |
Years 2022 to 2026 | 239,019 | |
Post-Retirement Healthcare Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Employer contributions | 365 | $ 365 |
Estimated future employer contributions | 400 | |
Defined Benefit Plan, Expected Future Benefit Payment [Abstract] | ||
2017 | 431 | |
2018 | 483 | |
2019 | 511 | |
2020 | 545 | |
2021 | 520 | |
Years 2022 to 2026 | $ 1,724 |
Pension and Other Post-Retir_10
Pension and Other Post-Retirement Benefit Plans (Fair Value of Plan Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Hedge funds and private equity [Member] | Measured at net asset value [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 2,083 | $ 4,599 | |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 746,763 | 625,646 | $ 681,573 |
Defined Benefit Plan Assets fair value hierarchy | 744,680 | 621,047 | |
Pension Plans [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 74,263 | 63,852 | |
Pension Plans [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 670,417 | 557,195 | |
Pension Plans [Member] | Measured at net asset value [Domain] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 2,083 | 4,599 | |
Pension Plans [Member] | Common trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3,467 | 3,961 | |
Pension Plans [Member] | Common trust funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Pension Plans [Member] | Common trust funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 3,467 | 3,961 | |
Pension Plans [Member] | Corporate stock [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 14,995 | 13,142 | |
Pension Plans [Member] | Corporate stock [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 14,553 | 13,142 | |
Pension Plans [Member] | Corporate stock [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 442 | 0 | |
Pension Plans [Member] | Mutual funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 176,777 | 139,730 | |
Pension Plans [Member] | Mutual funds [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 59,710 | 48,645 | |
Pension Plans [Member] | Mutual funds [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 117,067 | 91,085 | |
Pension Plans [Member] | Fixed income investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 549,441 | 464,214 | |
Pension Plans [Member] | Fixed income investments [Member] | Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 2,065 | |
Pension Plans [Member] | Fixed income investments [Member] | Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $ 549,441 | $ 462,149 |
Pension and Other Post-Retir_11
Pension and Other Post-Retirement Benefit Plans (Fair Value Measurements Using Significant Level 3 Unobservable Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Hedge Funds & Private Equity [Member] | Measured at net asset value [Domain] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | $ 4,599 | |
Plan assets, ending balance | 2,083 | $ 4,599 |
Real Estate Investments [Member] | Measured at net asset value [Domain] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Purchases & settlements | 0 | 0 |
Pension Plan [Member] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | 625,646 | 681,573 |
Unrealized gains | 3,800 | |
Plan assets, ending balance | 746,763 | 625,646 |
Pension Plan [Member] | Measured at net asset value [Domain] | ||
Schedule of Level Three Defined Benefit Plan Assets [Roll Forward] | ||
Plan assets, beginning balance | 4,599 | |
Plan assets, ending balance | $ 2,083 | $ 4,599 |
Pension and Other Post-Retir_12
Pension and Other Post-Retirement Benefit Plans (Defined Contribution Plan Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capital accumulation plans [Member] | |||
Schedule of Defined Contribution Plans [Line Items] | |||
Defined contribution plan expense | $ 12,600 | $ 9,000 | $ 7,800 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Line Items] | |
Deferred tax asset, operating loss carryforwards | $ 3.4 |
Federal [Member] | |
Income Tax Disclosure [Line Items] | |
Net operating loss carryforwards | 172.5 |
State and Local Jurisdiction [Member] | |
Income Tax Disclosure [Line Items] | |
Valuation allowance, operating loss carryforwards | $ 0.3 |
Maximum [Member] | State and Local Jurisdiction [Member] | |
Income Tax Disclosure [Line Items] | |
Operating loss carryforwards, remaining life | 20 years |
Alternative minimum tax [Member] | |
Income Tax Disclosure [Line Items] | |
Tax Credit Carryforward, Amount | $ 3.1 |
Income Taxes (Deferred Taxes) (
Income Taxes (Deferred Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Loss Carryforwards [Line Items] | ||
deferred tax asset, warrant remeasurement | $ 17,174 | $ 7,314 |
Deferred tax assets: | ||
Net operating loss carryforward and federal credits | 40,467 | 55,760 |
Post-retirement employee benefits | 6,355 | 13,777 |
Employee benefits other than post-retirement | 9,435 | 8,751 |
Inventory reserve | 2,055 | 2,374 |
Deferred revenue | 5,132 | 4,389 |
Other | 9,309 | 5,333 |
Deferred tax assets | 98,997 | 97,698 |
Deferred Tax Assets, Capital and Operating Leases | 9,070 | 0 |
Deferred tax liabilities: | ||
Accelerated depreciation | (192,651) | (189,719) |
Partnership items | (6,088) | (5,850) |
State taxes | (12,355) | (14,474) |
Valuation allowance against deferred tax assets | (1,412) | (278) |
Deferred tax liabilities | 226,473 | 210,941 |
Net deferred tax (liability) | (127,476) | (113,243) |
Deferred Tax Liabilities, Leasing Arrangements | (9,051) | 0 |
Deferred Tax Liabilities, Goodwill | $ (4,916) | $ (620) |
Income Taxes (Income Tax Provis
Income Taxes (Income Tax Provision (Benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current taxes: | |||
Federal | $ 1,332 | $ 0 | $ 9 |
Foreign | 1 | 0 | 48 |
State | 138 | 1,043 | 590 |
Deferred taxes: | |||
Federal | 14,155 | 15,642 | 27,625 |
Foreign | 0 | (63) | 0 |
State | (3,677) | 2,973 | 3,396 |
Total deferred tax expense | 10,478 | 18,552 | (28,923) |
Total income tax expense from continuing operations | 11,589 | 19,595 | (28,276) |
Income tax expense (benefit) from discontinued operations | 360 | 434 | (1,848) |
2017 Tax Cuts and Jobs Act [Member] | |||
Deferred taxes: | |||
Federal | $ 0 | $ 0 | $ (59,944) |
Income Taxes (Tax Rate Reconcil
Income Taxes (Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal tax rate | 21.00% | 21.00% | 35.00% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 0.00% | (0.10%) | (0.50%) |
State income taxes, net of federal tax benefit | 1.40% | (0.20%) | (39.70%) |
effective tax rate reconciliation, non-deductible expense, warrant remeasurement, percent | (2.90%) | (1.50%) | (485.00%) |
Effective Income Tax Rate Reconciliation, Deduction, Employee Stock Ownership Plan Dividend, Percent | 0.00% | (0.80%) | (21.70%) |
Tax effect of other non-deductible expenses | 1.70% | 0.80% | (19.60%) |
Other | 0.40% | (0.60%) | 3.50% |
Effective income tax rate | 16.20% | 22.40% | 432.60% |
2017 Tax Cuts and Jobs Act [Member] | |||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal tax rate | 0.00% | 0.00% | 917.20% |
return to income tax provision adjustment [Member] | |||
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Other | (5.40%) | 3.80% | 0.00% |
Income Taxes (Tax Rate Reconc_2
Income Taxes (Tax Rate Reconciliation - Discontinued Operations) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Statutory federal tax rate | (21.00%) | (21.00%) | (35.00%) |
State income taxes, net of federal tax benefit | 1.80% | 2.60% | 1.30% |
Effective income tax rate | 22.80% | 23.60% | 36.30% |
2017 Tax Cuts and Jobs Act [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Statutory federal tax rate | 0.00% | 0.00% | 0.00% |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
As of January 1 | $ 0 | $ 0 |
As of December 31 | $ 0 | $ 0 |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 28, 2019 | Sep. 25, 2017 | |
Derivative [Line Items] | |||||
Pre-tax (charge) on derivative instruments | $ (12,302) | $ 7,296 | $ (79,789) | ||
Net (gain) loss on financial instruments | $ 10,000 | 8 | (1,400) | ||
gain/loss convertible debt hedge asset and note obligation valuation | (100) | $ 600 | |||
June 30, 2017 [Member] [Member] | Swap [Member] | |||||
Derivative [Line Items] | |||||
Stated Interest Rate | 2.706% | ||||
Market Value (Liability) | $ (3,242) | (1,138) | |||
Derivative Liability, Notional Amount | $ 146,250 | 150,000 | |||
May 5, 2021 [Member] [Member] [Member] | Swap [Member] | |||||
Derivative [Line Items] | |||||
Stated Interest Rate | 1.09% | ||||
Market Value (Liability) | $ (111) | (650) | |||
Derivative Liability, Notional Amount | $ 20,625 | 28,125 | |||
May 30, 2021 [Member] | Swap [Member] | |||||
Derivative [Line Items] | |||||
Stated Interest Rate | 1.703% | ||||
Market Value (Liability) | $ 25 | (366) | |||
Derivative Liability, Notional Amount | $ 20,625 | 28,125 | |||
March 31, 2022 One [Member] [Member] | Swap [Member] | |||||
Derivative [Line Items] | |||||
Stated Interest Rate | 1.90% | ||||
Market Value (Liability) | $ 408 | (829) | |||
Derivative Liability, Notional Amount | $ 50,000 | 50,000 | |||
March 31, 2022 Two [Member] [Member] [Member] | Swap [Member] | |||||
Derivative [Line Items] | |||||
Stated Interest Rate | 1.95% | ||||
Market Value (Liability) | $ 696 | (1,126) | |||
Derivative Liability, Notional Amount | $ 75,000 | 75,000 | |||
March 31, 2023 [Member] | Swap [Member] | |||||
Derivative [Line Items] | |||||
Stated Interest Rate | 2.425% | ||||
Market Value (Liability) | $ 3,866 | 0 | |||
Derivative Liability, Notional Amount | $ 148,125 | $ 0 | $ 150,000 | ||
Convertible Debt [Member] | |||||
Derivative [Line Items] | |||||
Convertible note hedge shares | 8,100 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | $ (12) | $ (1,479) | $ (1,348) | $ (1,477) |
Accumulated other comprehensive income (loss), beginning balance | (91,362) | (63,020) | (79,866) | |
Other comprehensive income (loss) before reclassifications: | ||||
Actuarial gain (loss) for retiree liabilities | 20,800 | (40,934) | 3,179 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (18) | (171) | 195 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 2,253 | |||
Other comprehensive income (loss), reclassification from AOCI, Pension and Other Postretirement Benefit Plans, plan curtailment, before tax | 12,923 | |||
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | (768) | 40 | (66) | |
Amounts reclassified from accumulated other comprehensive income: | ||||
Actuarial costs (reclassified to salaries, wages and benefits) | 15,700 | 3,766 | 8,061 | |
Negative prior service cost (reclassified to salaries, wages and benefits) | (51) | |||
Income Tax (Expense) or Benefit | (9,239) | 8,997 | (7,461) | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 1,467 | (131) | 129 | |
Other comprehensive income (loss), net of tax | (28,342) | 16,846 | ||
Accumulated other comprehensive income (loss), ending balance | (61,866) | (91,362) | (63,020) | |
Total comprehensive income (loss) | 90,698 | 40,943 | 35,341 | |
Pension Plans [Member] | ||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | (89,042) | (60,575) | (77,088) | |
Other comprehensive income (loss) before reclassifications: | ||||
Actuarial gain (loss) for retiree liabilities | 20,793 | (41,051) | 3,116 | |
Other comprehensive income (loss), reclassification from AOCI, Pension and Other Postretirement Benefit Plans, plan curtailment, before tax | 12,923 | |||
Amounts reclassified from accumulated other comprehensive income: | ||||
Actuarial costs (reclassified to salaries, wages and benefits) | 15,528 | 3,547 | 7,778 | |
Income Tax (Expense) or Benefit | (8,431) | 9,037 | (7,304) | |
Other comprehensive income (loss), net of tax | 27,890 | (28,467) | 16,513 | |
Accumulated other comprehensive income (loss), ending balance | (61,152) | (89,042) | (60,575) | |
Post-Retirement Plans [Member] | ||||
Schedule of Accumulated Other Comprehensive Income [Line Items] | ||||
Accumulated other comprehensive income (loss), beginning balance | (841) | (1,097) | (1,301) | |
Other comprehensive income (loss) before reclassifications: | ||||
Actuarial gain (loss) for retiree liabilities | 7 | 117 | 63 | |
Amounts reclassified from accumulated other comprehensive income: | ||||
Actuarial costs (reclassified to salaries, wages and benefits) | 172 | 219 | 283 | |
Negative prior service cost (reclassified to salaries, wages and benefits) | (51) | |||
Income Tax (Expense) or Benefit | (40) | (80) | (91) | |
Other comprehensive income (loss), net of tax | 139 | 256 | 204 | |
Accumulated other comprehensive income (loss), ending balance | $ (702) | $ (841) | $ (1,097) |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 969,928 | 873,849 | 1,040,569 |
Granted (in shares) | 302,596 | 304,795 | 243,940 |
Converted (in shares) | (291,064) | (205,616) | (320,810) |
Expired (in shares) | (7,900) | (500) | (82,050) |
Forfeited (in shares) | (9,728) | (2,600) | (7,800) |
Outstanding at end of period (in shares) | 963,832 | 969,928 | 873,849 |
Vested (in shares) | 476,389 | 463,422 | 441,424 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Outstanding at beginning of period, Weighted average grant-date fair value (in dollars per share) | $ 15.89 | $ 12.30 | $ 9.97 |
Granted, Weighted average grant-date fair value (in dollars per share) | 23.22 | 24.18 | 17.52 |
Converted, Weighted average grant-date fair value (in dollars per share) | 17.14 | 12.74 | 9.47 |
Expired, Weighted average grant-date fair value (in dollars per share) | 23.78 | 28.38 | 9.22 |
Forfeited, Weighted average grant-date fair value (in dollars per share) | 23.37 | 26.76 | 13.55 |
Outstanding at end of period, Weighted average grant-date fair value (in dollars per share) | 17.67 | 15.89 | 12.30 |
Vested (in dollars per share) | $ 11.11 | $ 10.25 | $ 7.61 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Share-based compensation expense | $ 7 | $ 5 | $ 3.6 |
Unrecognized share-based compensation expense | $ 6.7 | ||
Unrecognized share-based compensation, weighted average recognition period | 1 year 6 months | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years | ||
Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Historical volatility period | 3 years | 3 years | |
Risk-free interest rate | 2.50% | 2.40% | 1.70% |
Expected volatility rate | 35.60% | 33.80% | 34.70% |
Market Condition Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted, Weighted average grant-date fair value (in dollars per share) | $ 24.75 | $ 31.60 | $ 20.18 |
Performance Condition Award [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Granted, Weighted average grant-date fair value (in dollars per share) | $ 22.80 | $ 25.15 | $ 16.72 |
Time-Based Awards [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Number of additional outstanding shares issued (in shares) | 1,198,507 | ||
Director [Member] | Time-Based Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Vested (in shares) | 337,060 | ||
Director [Member] | Time-Based Awards [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 6 months | ||
Director [Member] | Time-Based Awards [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 12 months |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 06, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Stock Repurchased During Period, Shares | 380,637 | |||||||||||
shares repurchased from related party, price paid | $ 8,500 | |||||||||||
purchase price per shares, repurchased shares | $ 22.42 | |||||||||||
Earnings Per Share Reconciliation [Abstract] | ||||||||||||
Earnings from continuing operations | $ (41,104) | $ 105,085 | $ (26,632) | $ 22,634 | $ (5,196) | $ 32,933 | $ 24,464 | $ 15,682 | $ 59,983 | $ 67,883 | $ 21,740 | |
fair value adjustment to warrants, net of tax | (6,219) | (7,118) | 0 | |||||||||
Undistributed Earnings (Loss) from Continuing Operations Available to Common Shareholders, Diluted | $ 53,764 | $ 60,765 | $ 21,740 | |||||||||
Weighted-average shares outstanding for basic earnings per share (in shares) | 58,929,000 | 58,919,000 | 58,909,000 | 58,838,000 | 58,740,000 | 58,739,000 | 58,739,000 | 58,840,000 | 58,899,000 | 58,765,000 | 58,907,000 | |
Restricted stock (in shares) | 317,600 | 329,600 | 241,000 | |||||||||
Common equivalent shares: | ||||||||||||
Effect of stock-based compensation awards (in shares) | 10,449,000 | 9,591,000 | 779,000 | |||||||||
Weighted-average shares outstanding assuming dilution (in shares) | 58,929,000 | 68,718,000 | 58,909,000 | 60,437,000 | 58,740,000 | 68,323,000 | 68,363,000 | 59,558,000 | 69,348,000 | 68,356,000 | 59,686,000 | |
Basic earnings per share from continuing operations (in dollars per share) | $ (0.70) | $ 1.78 | $ (0.45) | $ 0.38 | $ (0.09) | $ 0.56 | $ 0.42 | $ 0.27 | $ 1.02 | $ 1.16 | $ 0.37 | |
Diluted earnings per share from continuing operations (in dollars per share) | $ (0.70) | $ 0.19 | $ (0.45) | $ 0.25 | $ (0.09) | $ 0.24 | $ 0.21 | $ 0.26 | $ 0.78 | $ 0.89 | $ 0.36 | |
Equivalent shares not included in weighted average shares outstanding because they would be anti-dilutive | 7,800,000 | |||||||||||
Amazon Warrant AB [Member] | ||||||||||||
Earnings Per Share Reconciliation [Abstract] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 39,500,000 | 14,800,000 | 39,500,000 | 14,800,000 |
Segment Information (Segment Re
Segment Information (Segment Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating Expenses | $ 1,275,186 | $ 781,327 | $ 968,800 | ||||||||
REVENUES | $ 403,351 | $ 366,073 | $ 334,576 | $ 348,183 | $ 280,779 | $ 204,919 | $ 203,607 | $ 203,040 | 1,452,183 | 892,345 | 1,068,200 |
Customer revenues | 403,351 | 366,073 | 334,576 | 348,183 | 280,779 | 204,919 | 203,607 | 203,040 | 1,452,183 | 892,345 | 1,068,200 |
Depreciation and amortization expense | 257,532 | 178,895 | 154,556 | ||||||||
Net unallocated interest expense | (66,644) | (28,799) | (17,023) | ||||||||
Net gain (loss) on financial instruments | (12,302) | 7,296 | (79,789) | ||||||||
Pre-tax earnings from continuing operations | 71,572 | 87,478 | (6,536) | ||||||||
Assets | 2,820,178 | 2,470,585 | 2,820,178 | 2,470,585 | 1,548,844 | ||||||
Income Tax Expense (Benefit) | 11,589 | 19,595 | (28,276) | ||||||||
Business Combination, Acquisition Related Costs | (373) | (5,264) | 0 | ||||||||
Net Periodic Defined Benefits Expense (Reversal of Expense), Excluding Service Cost Component | (9,404) | 8,180 | (6,105) | ||||||||
Net earnings from continuing operations | (41,104) | $ 105,085 | $ (26,632) | $ 22,634 | (5,196) | $ 32,933 | $ 24,464 | $ 15,682 | 59,983 | 67,883 | 21,740 |
Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 1,452,183 | 892,345 | 1,068,200 | ||||||||
Customer revenues | 1,452,183 | 892,345 | 1,068,200 | ||||||||
ACMI Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 1,078,288 | 548,839 | 614,741 | ||||||||
Customer revenues | 1,078,288 | 548,839 | 614,741 | ||||||||
Depreciation and amortization expense | 96,191 | 49,068 | 41,929 | ||||||||
Segment earnings (loss) | 32,055 | 11,448 | 7,747 | ||||||||
Net unallocated interest expense | (24,950) | (6,269) | (810) | ||||||||
Assets | 830,620 | 759,131 | 830,620 | 759,131 | 189,379 | ||||||
ACMI Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 548,804 | 614,721 | |||||||||
Customer revenues | 548,804 | 614,721 | |||||||||
All other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 314,014 | 286,579 | 433,208 | ||||||||
Customer revenues | 314,014 | 286,579 | 433,208 | ||||||||
Depreciation and amortization expense | 2,871 | 2,971 | 4,521 | ||||||||
Segment earnings (loss) | 13,422 | 11,170 | 13,748 | ||||||||
Assets | 130,372 | 134,272 | 130,372 | 134,272 | 166,575 | ||||||
All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 187,025 | 313,045 | |||||||||
Customer revenues | 187,025 | 313,045 | |||||||||
CAM [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 285,276 | 228,956 | 209,213 | ||||||||
Customer revenues | 285,276 | 228,956 | 209,213 | ||||||||
Depreciation and amortization expense | 158,470 | 126,856 | 108,106 | ||||||||
Segment earnings (loss) | 68,643 | 65,576 | 61,510 | ||||||||
Net unallocated interest expense | (38,300) | (21,819) | (15,585) | ||||||||
Assets | 1,857,687 | 1,577,182 | 1,857,687 | 1,577,182 | 1,192,890 | ||||||
CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 156,516 | 140,434 | |||||||||
Customer revenues | 156,516 | 140,434 | |||||||||
Discontinued operations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Assets | $ 1,499 | $ 0 | 1,499 | 0 | 0 | ||||||
Significant Reconciling Items [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net unallocated interest expense | (3,024) | (460) | (512) | ||||||||
Non-operating charges from a non-consolidating affiliate | (17,445) | (10,468) | (3,135) | ||||||||
Eliminate inter-segment revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | (225,395) | (172,029) | (188,962) | ||||||||
Customer revenues | (225,395) | (172,029) | (188,962) | ||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income Tax Expense (Benefit) | (11,589) | ||||||||||
Accounting Standards Update 2014-09 [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Expenses | 781,327 | ||||||||||
REVENUES | 892,345 | ||||||||||
Customer revenues | 892,345 | ||||||||||
Pre-tax earnings from continuing operations | 87,478 | ||||||||||
Income Tax Expense (Benefit) | (19,595) | ||||||||||
Net earnings from continuing operations | 67,883 | ||||||||||
Accounting Standards Update 2014-09 [Member] | ACMI Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 1,078,143 | 548,804 | |||||||||
Customer revenues | 1,078,143 | 548,804 | |||||||||
Accounting Standards Update 2014-09 [Member] | Ground Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 117,772 | 117,832 | 106,767 | ||||||||
Customer revenues | 117,772 | 117,832 | 106,767 | ||||||||
Accounting Standards Update 2014-09 [Member] | All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 205,934 | 187,025 | 313,045 | ||||||||
Customer revenues | 205,934 | 187,025 | 313,045 | ||||||||
Accounting Standards Update 2014-09 [Member] | CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 168,106 | 156,516 | |||||||||
Customer revenues | 168,106 | 156,516 | |||||||||
Accounting Standards Update 2014-09 [Member] | Ground Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 69,596 | 66,567 | 204,151 | ||||||||
Customer revenues | 69,596 | 66,567 | 204,151 | ||||||||
Accounting Standards Update 2014-09 [Member] | All Other non MRO or Ground Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 18,566 | 2,626 | 2,127 | ||||||||
Customer revenues | $ 18,566 | 2,626 | $ 2,127 | ||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Expenses | 1,138,462 | ||||||||||
REVENUES | 1,249,640 | ||||||||||
Customer revenues | 1,249,640 | ||||||||||
Pre-tax earnings from continuing operations | 87,638 | ||||||||||
Income Tax Expense (Benefit) | (19,559) | ||||||||||
Net earnings from continuing operations | 68,079 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ACMI Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 743,112 | ||||||||||
Customer revenues | 743,112 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 350,012 | ||||||||||
Customer revenues | 350,012 | ||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 156,516 | ||||||||||
Customer revenues | 156,516 | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Expenses | (357,135) | ||||||||||
REVENUES | (357,295) | ||||||||||
Customer revenues | (357,295) | ||||||||||
Pre-tax earnings from continuing operations | (160) | ||||||||||
Income Tax Expense (Benefit) | (36) | ||||||||||
Net earnings from continuing operations | (196) | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ACMI Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | (194,308) | ||||||||||
Customer revenues | (194,308) | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | (162,987) | ||||||||||
Customer revenues | (162,987) | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 0 | ||||||||||
Customer revenues | $ 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segments | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | $ 403,351 | $ 366,073 | $ 334,576 | $ 348,183 | $ 280,779 | $ 204,919 | $ 203,607 | $ 203,040 | $ 1,452,183 | $ 892,345 | $ 1,068,200 |
Deferred Revenue, Revenue Recognized | 2,800 | 9,300 | |||||||||
Deferred Revenue | 3,000 | $ 3,100 | $ 3,000 | 3,100 | |||||||
Number of reportable segments (in segments) | segments | 2 | ||||||||||
Interest expense | $ 66,644 | 28,799 | 17,023 | ||||||||
Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 1,452,183 | 892,345 | 1,068,200 | ||||||||
ACMI Services [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 1,078,288 | 548,839 | 614,741 | ||||||||
Interest expense | 24,950 | 6,269 | 810 | ||||||||
Property, Plant and Equipment, Additions | 87,200 | ||||||||||
ACMI Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 548,804 | 614,721 | |||||||||
CAM [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 285,276 | 228,956 | 209,213 | ||||||||
Interest expense | 38,300 | 21,819 | 15,585 | ||||||||
Property, Plant and Equipment, Additions | 368,800 | ||||||||||
CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 156,516 | 140,434 | |||||||||
Geographic Distribution, Foreign [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | 716,900 | 231,800 | $ 170,100 | ||||||||
Flight Equipment [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Leases, Future Minimum Payments Receivable, Current | 186,800 | 186,800 | |||||||||
Operating Leases, Future Minimum Payments Receivable, in Two Years | 178,200 | 178,200 | |||||||||
Operating Leases, Future Minimum Payments Receivable, in Three Years | 152,000 | 152,000 | |||||||||
Operating Leases, Future Minimum Payments Receivable, in Four Years | 110,100 | 110,100 | |||||||||
Operating Leases, Future Minimum Payments Receivable, in Five Years | 75,500 | 75,500 | |||||||||
Operating Leases, Future Minimum Payments Receivable, Thereafter | $ 186,200 | $ 186,200 | |||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | (357,295) | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | ACMI Services [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | (194,308) | ||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
REVENUES | $ 0 |
Segment Information (Entity-Wid
Segment Information (Entity-Wide Disclosures) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | $ 403,351 | $ 366,073 | $ 334,576 | $ 348,183 | $ 280,779 | $ 204,919 | $ 203,607 | $ 203,040 | $ 1,452,183 | $ 892,345 | $ 1,068,200 |
Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 1,452,183 | 892,345 | 1,068,200 | ||||||||
CAM [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 285,276 | 228,956 | 209,213 | ||||||||
CAM [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | 156,516 | 140,434 | |||||||||
All other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | $ 314,014 | 286,579 | 433,208 | ||||||||
All other [Member] | Customer Revenues [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Customer revenues | $ 187,025 | $ 313,045 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Including Discontinued Operation, Assets | $ 1,499 | $ 0 | |
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 1,600 | 1,800 | $ (5,100) |
Liabilities | |||
Employee compensation and benefits | 15,189 | 16,807 | |
Total Liabilities | 15,189 | 17,653 | |
Discontinued Operations, Disposed of by Means Other than Sale [Member] | |||
Liabilities | |||
Post-retirement | 0 | 846 | |
Discontinued Operations, Disposed of by Means Other than Sale [Member] | |||
Liabilities | |||
Post-retirement | $ 1,499 | $ 0 |
Quarterly Results (Unaudited)_2
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Adjustment of Warrants | $ (72,900) | $ 92,000 | $ (35,900) | $ 4,500 | $ (21,400) | $ 17,900 | $ 11,700 | $ (900) | $ (2,300) | $ 7,400 | $ (81,800) |
Deferred Federal Income Tax Expense (Benefit) | 14,155 | 15,642 | 27,625 | ||||||||
REVENUES | 403,351 | 366,073 | 334,576 | 348,183 | 280,779 | 204,919 | 203,607 | 203,040 | 1,452,183 | 892,345 | 1,068,200 |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 52,221 | 40,766 | 37,482 | 46,528 | 32,650 | 26,827 | 23,898 | 27,643 | |||
Net earnings from continuing operations | (41,104) | 105,085 | (26,632) | 22,634 | (5,196) | 32,933 | 24,464 | 15,682 | 59,983 | 67,883 | 21,740 |
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES | $ 914 | $ 243 | $ 31 | $ 31 | $ 866 | $ 170 | $ 170 | $ 196 | $ 1,219 | $ 1,402 | $ (3,245) |
Weighted average shares: | |||||||||||
Basic (in shares) | 58,929 | 58,919 | 58,909 | 58,838 | 58,740 | 58,739 | 58,739 | 58,840 | 58,899 | 58,765 | 58,907 |
Diluted (in shares) | 58,929 | 68,718 | 58,909 | 60,437 | 58,740 | 68,323 | 68,363 | 59,558 | 69,348 | 68,356 | 59,686 |
Earnings (loss) per share from continuing operations | |||||||||||
Basic (in dollars per share) | $ (0.70) | $ 1.78 | $ (0.45) | $ 0.38 | $ (0.09) | $ 0.56 | $ 0.42 | $ 0.27 | $ 1.02 | $ 1.16 | $ 0.37 |
Diluted (in dollars per share) | $ (0.70) | $ 0.19 | $ (0.45) | $ 0.25 | $ (0.09) | $ 0.24 | $ 0.21 | $ 0.26 | $ 0.78 | $ 0.89 | $ 0.36 |
Pension Plans [Member] | |||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | $ 0 | $ 0 | $ (12,923) | ||||||||
Pension Plans [Member] | Continuing Operations [Member] | |||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 5,300 | ||||||||||
Pension Plans [Member] | Discontinued Operations [Member] | |||||||||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | 7,600 | ||||||||||
ACMI Services [Member] | |||||||||||
REVENUES | 1,078,288 | 548,839 | 614,741 | ||||||||
2017 Tax Cuts and Jobs Act [Member] | |||||||||||
Deferred Federal Income Tax Expense (Benefit) | $ 0 | $ 0 | $ (59,944) |
Acquisition of Business (Detail
Acquisition of Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 10 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Nov. 09, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||||||||||
REVENUES | $ 403,351 | $ 366,073 | $ 334,576 | $ 348,183 | $ 280,779 | $ 204,919 | $ 203,607 | $ 203,040 | $ 1,452,183 | $ 892,345 | $ 1,068,200 | |
Goodwill | 395,974 | 390,745 | 395,974 | 390,745 | 37,279 | |||||||
Business Combination, Acquisition Related Costs | 373 | 5,264 | 0 | |||||||||
Long-term Debt | 1,484,384 | 1,401,252 | 1,484,384 | 1,401,252 | ||||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 5,300 | |||||||||||
Pro Forma [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Depreciation | 10,000 | 10,600 | ||||||||||
REVENUES | 1,320,234 | 1,425,823 | ||||||||||
Business Acquisition, Pro Forma Income (Loss) from Continuing Operations, Net of Tax | 88,454 | $ 13,660 | ||||||||||
Omni Air [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | 4,693 | |||||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 63,041 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets | 8,366 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 7,836 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 140,000 | |||||||||||
Goodwill | 353,466 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 328,869 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (32,646) | |||||||||||
Business Combination, Contingent Consideration, Liability | (5,950) | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 867,675 | |||||||||||
Payments to Acquire Businesses, Gross | 867,700 | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Long-term Debt | $ 632,900 | $ 475,000 | $ 632,900 | $ 475,000 | ||||||||
Line of Credit Facility, Accordion Feature Amount | 180,000 | |||||||||||
Senior Notes 2nd Term Loan [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Long-term Debt | $ 675,000 |
Investments in Non-Consolidat_3
Investments in Non-Consolidated Affiliates (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Noncontrolling Interest [Line Items] | |||||||||||
Assets, Current | $ 266,791 | $ 259,221 | $ 266,791 | $ 259,221 | |||||||
NET EARNINGS | 61,202 | 69,285 | $ 18,495 | ||||||||
Liabilities, Current | 263,239 | 229,134 | 263,239 | 229,134 | |||||||
Liabilities | 2,359,836 | 2,034,147 | 2,359,836 | 2,034,147 | |||||||
REVENUES | 403,351 | $ 366,073 | $ 334,576 | $ 348,183 | 280,779 | $ 204,919 | $ 203,607 | $ 203,040 | 1,452,183 | 892,345 | 1,068,200 |
Noncontrolling Interest [Member] | |||||||||||
Noncontrolling Interest [Line Items] | |||||||||||
Assets, Current | 64,392 | 64,262 | 64,392 | 64,262 | |||||||
Total Expenses | (143,775) | (228,169) | (196,334) | ||||||||
NET EARNINGS | (29,510) | (26,141) | (23,808) | ||||||||
Long-Lived Assets | 213,940 | 80,724 | 213,940 | 80,724 | |||||||
Liabilities, Current | (155,451) | (38,938) | (155,451) | (38,938) | |||||||
Liabilities | (123,837) | (102,657) | (123,837) | (102,657) | |||||||
Stockholders' Equity Attributable to Noncontrolling Interest | $ 956 | $ (3,391) | 956 | (3,391) | |||||||
REVENUES | $ 114,265 | $ 202,028 | $ 172,526 |