Lease Rental Revenues and Flight Equipment Held for Lease

12 Months Ended

Dec. 31, 2013

Leases [Abstract]

Lease Rental Revenues and Flight Equipment Held for Lease

Lease Rental Revenues and Flight Equipment Held for Lease

Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at December 31, 2013 were as follows:

Year Ending December 31,	Amount
2014	$	633,778
2015	572,900
2016	485,804
2017	353,853
2018	237,681
Thereafter	774,355
Total	$	3,058,371

Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows: 

	Year Ended December 31,
Region	2011		2012		2013
Europe	45	%	39	%	33	%
Asia and Pacific	24	%	32	%	38	%
North America	13	%	11	%	10	%
Middle East and Africa	11	%	11	%	10	%
South America	7	%	7	%	9	%
Total	100	%	100	%	100	%

The classification of regions in the tables above and the table and discussion below is determined based on the principal location of the lessee of each aircraft.

For the year ended December 31, 2011, one customer accounted for 11% of lease rental revenues, and three additional customers accounted for a combined 19% of lease rental revenues. No other customer accounted for more than 5% of lease rental revenues.

For the year ended December 31, 2012, one customer accounted for 9% of lease rental revenues, and four additional customers accounted for a combined 25% of lease rental revenues. No other customer accounted for more than 5% of lease rental revenues.

For the year ended December 31, 2013, one customer accounted for 8% of lease rental revenues, and three additional customers accounted for a combined 17% of lease rental revenues. No other customer accounted for more than 5% of lease rental revenues.

The following table sets forth revenue attributable to individual countries representing at least 10% of total revenue (including maintenance revenue) in any year based on each lessee’s principal place of business for the years indicated: 

	2011				2012				2013
Country	Revenue		% of Total Revenue		Revenue		% of Total Revenue		Revenue		% of Total Revenue
United States	$	64,195	11	%	$	78,493	11	%	$	74,274	10	%
China(1)	69,534		11	%	75,502		11	%	—		—	%

 ______________

(1) Total revenue attributable to China was less than 10% for the twelve months ended December 31, 2013.

Geographic concentration of net book value of flight equipment held for lease was as follows: 

	December 31, 2012				December 31, 2013
Region	Number of Aircraft		Net Book Value %		Number of Aircraft		Net Book Value %
Europe	68		35	%	64		30	%
Asia and Pacific	50		34	%	56		41	%
North America	17		10	%	19		10	%
South America	14		8	%	14		7	%
Middle East and Africa	8		12	%	7		11	%
Off-lease	2	(1)	1	%	2	(2)	1	%
Total	159		100	%	162		100	%

______________

(1) Consists of one Boeing 767-300ER aircraft and one Boeing 747-400 converted freighter aircraft that we are marketing for lease or sale.

(2) Consists of two Boeing 747-400 converted freighter aircraft, one of which is subject to a commitment to lease and the other is being marketed.

The following table sets forth net book value of flight equipment attributable to individual countries representing at least 10% of net book value of flight equipment based on each lessee’s principal place of business as of: 

	December 31, 2012					December 31, 2013
Country	Net Book Value		Net Book Value %		Number of Lessees	Net Book Value		Net Book Value %		Number of Lessees
China(1)	$	515,194	11	%	4	$	—	—	%	—

 ______________

(1) The net book value of flight equipment attributable to China was less than 10% as of December 31, 2013.

At December 31, 2012 and 2013, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $15,587 and $28,611, respectively.