| REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) or (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|
Title of each class
|
|
Name of each exchange on which registered
|
|
|
American Depositary Shares
|
|
New York Stock Exchange
|
|
|
Common Shares, par value of $0.001 per share
|
|
New York Stock Exchange*
|
|
* | Not for trading, but only in connection with the registration of American Depositary Shares representing these shares, pursuant to the requirements of the Securities and Exchange Commission. |
Large accelerated filer Accelerated filer Non-accelerated filer
|
U.S. GAAP
|
International Financial Reporting Standards as issued by the International Accounting Standards Board
|
Other
|
|
Page
|
|
|
PART I
|
|
|
|
3
|
|
3
|
|
3
|
|
26
|
|
33
|
|
33
|
|
53
|
|
58
|
|
66
|
|
67
|
|
69
|
|
77
|
|
78
|
|
|
|
PART II
|
|
|
|
78
|
|
78
|
|
79
|
|
81
|
|
81
|
|
81
|
|
81
|
|
82
|
|
82
|
|
82
|
|
82
|
|
|
|
PART III
|
|
|
|
F - 1
|
|
F - 2
|
|
83
|
(Dollars in thousands, except per share data)
Years ended
|
||||||||||||||||||||
|
2015
|
2014
|
2013
|
2012
|
2011
|
|||||||||||||||
As restated
|
As restated
|
As restated
|
As restated
|
|||||||||||||||||
Statement of income data:
|
||||||||||||||||||||
Operating lease revenue
|
$
|
429,691
|
$
|
406,563
|
$
|
351,792
|
$
|
356,102
|
$
|
230,716
|
||||||||||
Gain on sale of aircraft
|
28,959
|
14,761
|
5,421
|
7,892
|
9,137
|
|||||||||||||||
Gain on sale of investment in unconsolidated subsidiary
|
—
|
—
|
—
|
36,882
|
—
|
|||||||||||||||
Total revenues
|
462,397
|
425,548
|
360,634
|
411,167
|
248,789
|
|||||||||||||||
Total expenses
|
434,200
|
356,673
|
303,560
|
368,670
|
242,637
|
|||||||||||||||
Net income
|
22,798
|
60,184
|
53,940
|
38,234
|
1,341
|
|||||||||||||||
Earnings per share:
|
||||||||||||||||||||
Basic
|
$
|
0.52
|
$
|
1.42
|
$
|
1.55
|
$
|
1.45
|
$
|
0.04
|
||||||||||
Diluted
|
$
|
0.52
|
$
|
1.42
|
$
|
1.55
|
$
|
1.44
|
$
|
0.04
|
||||||||||
Dividends declared and paid per share
|
$
|
1.00
|
$
|
1.00
|
$
|
0.88
|
$
|
0.84
|
$
|
0.80
|
|
(Dollars in thousands, except per share data)
As of December 31,
|
|||||||||||||||||||
|
2015
|
2014
|
2013
|
2012
|
2011
|
|||||||||||||||
Balance sheet data:
|
As restated
|
As restated
|
As restated
|
As restated
|
||||||||||||||||
Total assets
|
$
|
3,428,275
|
$
|
4,218,408
|
$
|
3,660,679
|
$
|
2,960,926
|
$
|
3,199,742
|
||||||||||
Total liabilities
|
2,771,311
|
3,462,154
|
2,918,583
|
2,437,115
|
2,755,465
|
|||||||||||||||
Total shareholders' equity
|
656,964
|
756,254
|
742,096
|
523,811
|
444,277
|
|||||||||||||||
Number of shares outstanding
|
35,671,400
|
41,432,998
|
41,306,338
|
28,040,305
|
25,685,527
|
● | passenger air travel and air cargo demand; |
● | geopolitical and other events, including war, acts of terrorism, civil unrest, outbreaks of epidemic diseases and natural disasters; |
● | airline operating costs, including fuel costs; |
● | general economic conditions affecting our lessees' operations; |
● | governmental regulation, including new airworthiness directives, statutory limits on age of aircraft, and restrictions in certain jurisdictions on the age of aircraft for import, climate change initiatives and environmental regulation, and other factors leading to obsolescence of aircraft models; |
● | interest and foreign exchange rates; |
● | airline restructurings and bankruptcies; |
● | increased supply due to the sale of aircraft portfolios; |
● | availability and cost of credit; |
● | manufacturer production levels and technological innovation; |
● | retirement and obsolescence of aircraft models; |
● | manufacturers merging or exiting the industry or ceasing to produce aircraft or engine types; |
● | accuracy of estimates relating to future supply and demand made by manufacturers and lessees; |
● | reintroduction into service of aircraft or engines previously in storage; and |
● | airport and air traffic control infrastructure constraints. |
● | impair our liquidity by using a significant portion of our available cash or borrowing capacity to finance acquisitions and investments; |
● | significantly increase our interest expense and financial leverage to the extent we incur additional debt to finance acquisitions and investments; |
● | incur or assume unanticipated liabilities, losses or costs associated with the aircraft that we acquire, or investments we may make; or |
● | incur other significant charges, including asset impairment or restructuring charges. |
● | airlines; |
● | aircraft manufacturers; |
● | financial institutions (including those seeking to dispose of repossessed aircraft at distressed prices); |
● | aircraft brokers; |
● | special purpose vehicles formed for the purpose of acquiring, leasing and selling aircraft; and |
● | public and private partnerships, investors and funds, including private equity and hedge funds. |
● | the particular maintenance, damage and operating history of the airframes and engines; |
● | the number of operators using a type of aircraft or engine; |
● | whether an aircraft is subject to a lease and, if so, whether the lease terms are favorable to the lessor; |
● | the age of our aircraft; |
● | airworthiness directives and service bulletins; |
● | aircraft noise and emission standards; |
● | any tax, customs, regulatory and other legal requirements that must be satisfied when an aircraft is purchased, sold or re-leased; |
● | compatibility of our aircraft configurations or specifications with other aircraft owned by operators of that type; and |
● | decreases in the creditworthiness of our lessees. |
● | competition; |
● | fare levels; |
● | air cargo rates; |
● | passenger air travel and air cargo demand; |
● | geopolitical and other events, including war, acts of terrorism, civil unrest, outbreaks of epidemic diseases and natural disasters; |
● | increases in operating costs, including the availability and cost of jet fuel and labor costs; |
● | labor difficulties; |
● | economic and financial conditions and currency fluctuations in the countries and regions in which the lessee operates; and |
● | governmental regulation of, or affecting, the air transportation business, including noise and emissions regulations, climate change initiatives and age limitations. |
● | result in a grounding of the aircraft; |
● | cause us to incur costs in restoring the aircraft to an acceptable maintenance condition to re-lease the aircraft; |
● | adversely affect lease terms in the re-lease of the aircraft; and |
● | adversely affect the value of the aircraft. |
● | the costs of casualty, liability, war and political risk insurance and the liability costs or losses when insurance coverage has not been or cannot be obtained as required or is insufficient in amount or scope; |
● | the costs of licensing, exporting or importing an aircraft, costs of storing and operating an aircraft, airport taxes, customs duties, air navigation charges, landing fees and similar governmental or quasi-governmental impositions; and |
● | penalties and costs associated with the failure of lessees to keep the aircraft registered under all appropriate local requirements or obtain required governmental licenses, consents and approvals. |
● | at least 75% of our independent directors and holders of 75% or more of all of our outstanding common shares (measured by vote) determine by resolution that there has been unsatisfactory performance by our Manager that is materially detrimental to us; |
● | our Manager materially breaches the management agreement and fails to remedy such breach within 90 days of receiving written notice from us requiring it to do so, or such breach results in liability to us and is attributable to our Manager's gross negligence, fraud or dishonesty, or willful misconduct in respect of the obligation to apply the standard of care; |
● | any license, permit or authorization held by the Manager which is necessary for it to perform the services and duties under the management agreement is materially breached, suspended or revoked, or otherwise made subject to conditions which, in the reasonable opinion of our board of directors, would prevent the Manager from performing the services and the situation is not remedied within 90 days; |
● | BBAM Aviation Services Limited or one of its affiliates ceases to hold (directly or indirectly) more than 50% of the voting equity of, and economic interest in, the Manager; |
● | our Manager becomes subject to bankruptcy or insolvency proceedings that are not discharged within 75 days, unless our Manager is withdrawn and replaced within 90 days of the initiation of such bankruptcy or insolvency proceedings with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the management agreement; |
● | our Manager voluntarily commences any proceeding or files any petition seeking bankruptcy, insolvency, receivership or similar law, or makes a general assignment for the benefit of its creditors, unless our Manager is withdrawn and replaced within 15 days with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the management agreement; or |
● | an order is made for the winding up of our Manager, unless our Manager is withdrawn and replaced within 15 days with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the management agreement. |
● | Bankruptcy or insolvency of BBAM LP; |
● | BBAM LP ceases to own, directly or indirectly, at least 50% of the Servicer; |
● | Summit ceases to own, directly or indirectly, at least 33.33% of the partnership interests in BBAM LP; provided that a sale that results in such ownership being at a level below 33.33% shall not constitute a servicer termination event if the sale is to a publicly listed entity or other person with a net worth of at least $100 million; and |
● | 50% or more of the Servicer's key finance and legal team or technical and marketing team cease to be employed by BBAM LP and are not replaced with employees with reasonably comparable experience within 90 days. |
● | most of the aircraft and related leases in our portfolio secure debt obligations, the terms of which restrict our ability to sell aircraft and require us to use proceeds from sales of aircraft, in part, to repay outstanding debt; |
● | we are required to dedicate a significant portion of our cash flow from operations to debt service payments, thereby reducing the amount of our cash flow available to fund working capital, make capital expenditures and satisfy other needs; |
● | restrictions on our subsidiaries' ability to distribute excess cash flow to us under certain circumstances; |
● | lessee, geographical and other concentration requirements limit our flexibility in leasing our aircraft; |
● | requirements to obtain the consent of third parties including lenders, the insurance policy provider and rating agency confirmations for certain actions; and |
● | restrictions on our subsidiaries' ability to incur additional debt, create liens on assets, sell assets, make freighter conversions and make certain investments or capital expenditures. |
● | making it more difficult for us to satisfy our debt obligations with respect to the notes and our other debt; |
● | limiting our ability to obtain additional financing to fund the acquisition of aircraft or for other general corporate requirements; |
● | requiring a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for aircraft acquisitions and other general corporate purposes; |
● | increasing our vulnerability to general adverse economic and industry conditions; |
● | exposing us to the risk of increased interest rates as certain of our borrowings, including borrowings under our various credit facilities, are at variable rates of interest; |
● | limiting our flexibility in planning for and reacting to changes in the aircraft industry; |
● | placing us at a disadvantage compared to other competitors; and |
● | increasing our cost of borrowing. |
● | incur or guarantee additional indebtedness; |
● | sell assets; |
● | incur liens; |
● | pay dividends, repurchase certain equity interests or make other restricted payments; |
● | agree to any restrictions on the ability of restricted subsidiaries to transfer property or make payments to us; |
● | make certain investments; |
● | consolidate, amalgamate, merge, sell or otherwise dispose of all or substantially all of our assets; and; |
● | enter into transactions with our affiliates. |
Facility(1)
|
Amount Outstanding
at December 31, 2015(2)
|
Number of
Aircraft Financed
|
Maturity Date
|
|||||
Securitization Notes
|
$
|
$295.8 million
|
18
|
November 2033
|
||||
Nord LB Facility
|
$
|
$255.3 million
|
10
|
November 2018
|
(1) | Excludes $240.2 million outstanding for 10 aircraft financed by individual non-recourse loans. |
(2) | Excludes unamortized debt discounts. |
● | provisions that permit us to require any competitor of BBAM LP that acquires beneficial ownership of more than 15% of our common shares either to tender for all of our remaining common shares for no less than their fair market value, or sell such number of common shares to us or to third parties as to reduce its beneficial ownership to less than 15%, in either case within 90 days of our request to so tender or sell; |
● | provisions that reduce the vote of each common share held by a competitor of BBAM LP that beneficially owns 15% or more, but less than 50%, of our common shares to three-tenths of one vote per share on all matters upon which shareholders may vote; |
● | provisions that permit our board of directors to determine the powers, preferences and rights of any preference shares we may issue and to issue any such preference shares without shareholder approval; |
● | advance notice requirements by shareholders for director nominations and actions to be taken at annual meetings; and |
● | no provision for cumulative voting in the election of directors, such that all the directors standing for election may be elected by our shareholders by a plurality of votes cast at a duly convened annual general meeting, the quorum for which is two or more persons present in person or by proxy at the start of the meeting and representing in excess of 25% of all votes attaching to all shares in issue entitling the holder to vote at the meeting. |
Lessee
|
|
|
|
Aircraft Type
|
|
Airframe Type
|
|
Date of
Manufacture
|
1.
|
|
Aeromexico
|
|
B737-700
|
|
Narrow-body
|
|
2006
|
2.
|
|
Aeromexico
|
|
B737-700
|
|
Narrow-body
|
|
2005
|
3.
|
|
Aeromexico
|
|
B737-700
|
|
Narrow-body
|
|
2005
|
4.
|
|
Air Berlin
|
|
A321-200
|
|
Narrow-body
|
|
2015
|
5.
|
|
Air Berlin
|
|
A330-200
|
|
Wide-body
|
|
2001
|
6.
|
|
Air China
|
|
B737-800
|
|
Narrow-body
|
|
2007
|
7.
|
|
Air China
|
|
B737-800
|
|
Narrow-body
|
|
2002
|
8.
|
|
Air France (1)
|
|
A340-300
|
|
Wide-body
|
|
1993
|
9.
|
|
Air Italy
|
|
B767-300ER
|
|
Wide-body
|
|
1997
|
10.
|
|
Air Moldova
|
|
A319-100
|
|
Narrow-body
|
|
2006
|
11.
|
|
American Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2013
|
12.
|
|
Chang'An Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2006
|
13.
|
|
Eastern Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2006
|
14.
|
|
easyJet
|
|
A319-100
|
|
Narrow-body
|
|
2007
|
15.
|
|
easyJet
|
|
A319-100
|
|
Narrow-body
|
|
2004
|
16.
|
|
easyJet
|
|
A319-100
|
|
Narrow-body
|
|
2004
|
17.
|
|
Ethiopian Airlines
|
|
B777-200LRF (2)
|
|
Wide-body
|
|
2015
|
18.
|
|
Ethiopian Airlines
|
|
B777-200LRF (2)
|
|
Wide-body
|
|
2015
|
19.
|
|
Finnair
|
|
A320-200
|
|
Narrow-body
|
|
2003
|
20.
|
|
flydubai
|
|
B737-800
|
|
Narrow-body
|
|
2010
|
21.
|
|
Frontier
|
|
A319-100
|
|
Narrow-body
|
|
2001
|
22.
|
|
Garuda Indonesia
|
|
B737-800
|
|
Narrow-body
|
|
2010
|
23.
|
|
Garuda Indonesia
|
|
B737-800
|
|
Narrow-body
|
|
2010
|
24.
|
|
Icelandair
|
|
B757-200SF (2)
|
|
Narrow-body
|
|
1990
|
25.
|
|
IZair
|
|
B737-800
|
|
Narrow-body
|
|
2007
|
26.
|
|
IZair
|
|
B737-800
|
|
Narrow-body
|
|
2006
|
27.
|
|
Jet Airways
|
|
B737-800
|
|
Narrow-body
|
|
2014
|
28.
|
|
Jet Airways
|
|
B737-800
|
|
Narrow-body
|
|
2014
|
29.
|
|
Jet Airways
|
|
B737-800
|
|
Narrow-body
|
|
2014
|
30.
|
|
Jet Lite
|
|
B737-700
|
|
Narrow-body
|
|
2002
|
31.
|
|
Jetstar Pacific Airlines
|
|
A320-200
|
|
Narrow-body
|
|
2005
|
32.
|
|
LATAM
|
|
B787-8
|
|
Wide-body
|
|
2013
|
33.
|
|
Lucky Air Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2007
|
34.
|
|
Lucky Air Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2007
|
35.
|
|
Nok Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2015
|
36.
|
|
Nok Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2006
|
37.
|
|
Nok Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2006
|
38.
|
|
Philippine Airlines
|
|
A321-200
|
|
Narrow-body
|
|
2014
|
39.
|
|
Philippine Airlines
|
|
A321-200
|
|
Narrow-body
|
|
2014
|
40.
|
|
Philippine Airlines
|
|
A330-300
|
|
Wide-body
|
|
2013
|
41.
|
|
Philippine Airlines
|
|
A330-300
|
|
Wide-body
|
|
2013
|
42.
|
|
Qantas
|
|
A320-200
|
|
Narrow-body
|
|
2005
|
43.
|
|
Shandong Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2013
|
44.
|
|
Shandong Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2013
|
45.
|
|
Silk Air
|
|
A320-200
|
|
Narrow-body
|
|
2004
|
46.
|
|
South African Airways
|
|
A319-100
|
|
Narrow-body
|
|
2004
|
47.
|
|
Spicejet
|
|
B737-900ER
|
|
Narrow-body
|
|
2008
|
48.
|
|
Spicejet
|
|
B737-900ER
|
|
Narrow-body
|
|
2007
|
49.
|
|
Sun Express (Germany)
|
|
B737-800
|
|
Narrow-body
|
|
1998
|
50.
|
|
Sun Express (Turkey)
|
|
B737-800
|
|
Narrow-body
|
|
2008
|
51.
|
|
Sun Express (Turkey)
|
|
B737-800
|
|
Narrow-body
|
|
2007
|
52.
|
|
Sunwing Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2006
|
53.
|
|
Sunwing Airlines
|
|
B737-800
|
|
Narrow-body
|
|
2006
|
54.
|
|
TAM
|
|
A320-200
|
|
Narrow-body
|
|
2006
|
55.
|
Thomas Cook (3)
|
A330-300
|
Wide-body
|
2000
|
||||
56.
|
|
THY
|
|
A320-200
|
|
Narrow-body
|
|
2005
|
57.
|
|
THY
|
|
A320-200
|
|
Narrow-body
|
|
2005
|
58.
|
|
THY
|
|
A320-200
|
|
Narrow-body
|
|
2005
|
59.
|
|
Titan Airways
|
|
B737-300QC (2)
|
|
Narrow-body
|
|
1991
|
60.
|
|
Transavia France
|
|
B737-800
|
|
Narrow-body
|
|
2008
|
61.
|
Transavia France
|
|
B737-800
|
|
Narrow-body
|
|
2008
|
|
62.
|
Travel Service
|
|
B737-800
|
|
Narrow-body
|
|
2010
|
|
63.
|
Travel Service
|
|
B737-800
|
|
Narrow-body
|
|
2010
|
|
64.
|
TUI Travel Aviation Finance
|
|
B737-800
|
|
Narrow-body
|
|
2010
|
|
65.
|
TUI Travel Aviation Finance
|
|
B757-200
|
|
Narrow-body
|
|
1999
|
|
66.
|
TUI Travel Aviation Finance
|
|
B757-200
|
|
Narrow-body
|
|
1999
|
|
67.
|
US Airways
|
|
A319-100
|
|
Narrow-body
|
|
2000
|
|
68.
|
US Airways
|
|
A319-100
|
|
Narrow-body
|
|
2000
|
|
69.
|
US Airways
|
|
A319-100
|
|
Narrow-body
|
|
2000
|
70.
|
US Airways
|
|
A319-100
|
|
Narrow-body
|
|
2000
|
|
71.
|
Virgin America
|
|
A320-200
|
|
Narrow-body
|
|
2007
|
|
72.
|
Virgin America
|
|
A320-200
|
|
Narrow-body
|
|
2006
|
|
73.
|
Virgin America
|
|
A320-200
|
|
Narrow-body
|
|
2006
|
|
74.
|
Virgin Atlantic
|
|
A340-600
|
|
Wide-body
|
|
2006
|
|
75.
|
Virgin Atlantic
|
|
A340-600
|
|
Wide-body
|
|
2006
|
|
76.
|
Vueling Airlines
|
|
A320-200
|
|
Narrow-body
|
|
2007
|
|
77.
|
Vueling Airlines
|
|
A320-200
|
|
Narrow-body
|
|
2007
|
|
78.
|
White Airways
|
|
A320-200
|
|
Narrow-body
|
|
1995
|
|
79.
|
Off lease (1)
|
|
B737-800
|
|
Narrow-body
|
|
1998
|
|
80.
|
|
Off lease (1)
|
|
B737-800
|
|
Narrow-body
|
|
1998
|
(1) | Aircraft was sold subsequent to December 31, 2015. |
(2) | Freighter. |
(3) | Includes an investment in direct finance lease. |
Lessee
|
|
|
|
Aircraft Type
|
|
Airframe Type
|
|
Date of
Manufacture
|
1.
|
|
Air Serbia (1)
|
|
A319-100
|
|
Narrow-body
|
|
2005
|
2.
|
|
Air Serbia (1)
|
|
A320-200
|
|
Narrow-body
|
|
2005
|
3.
|
|
Avion Express (1)
|
|
A320-200
|
|
Narrow-body
|
|
2003
|
4.
|
|
Avion Express (1)
|
|
A320-200
|
|
Narrow-body
|
|
1997
|
5.
|
|
British Airways (1)
|
|
A320-200
|
|
Narrow-body
|
|
2002
|
6.
|
|
Enter Air (1)
|
|
B737-800
|
|
Narrow-body
|
|
1999
|
7.
|
|
Etihad Airways (1)
|
|
A319-100
|
|
Narrow-body
|
|
2000
|
8.
|
|
Etihad Airways (1)
|
|
A319-100
|
|
Narrow-body
|
|
1999
|
9.
|
|
Qantas (1)
|
|
B737-800
|
|
Narrow-body
|
|
2005
|
10.
|
|
Sun Express (Germany)
|
|
B737-800
|
|
Narrow-body
|
|
1999
|
11.
|
|
Sun Express (Turkey)
|
|
B737-800
|
|
Narrow-body
|
|
1998
|
12.
|
|
Virgin America (1)
|
|
A319-100
|
|
Narrow-body
|
|
2008
|
13.
|
|
Volaris (1)
|
|
A319-100
|
|
Narrow-body
|
|
2007
|
(1) | Aircraft was sold subsequent to December 31, 2015. |
Aircraft Manufacturer
|
|
Aircraft
Type
|
|
Number of
Aircraft
|
|
Airbus
|
|
A319-100
|
|
|
10
|
|
|
A320-200
|
|
|
14
|
|
|
A321-200
|
|
|
3
|
|
|
A330-200
|
|
|
1
|
|
|
A330-300 (1)
|
|
|
3
|
|
|
A340-300
|
|
|
1
|
|
|
A340-600
|
|
|
2
|
|
|
Total
|
|
|
34
|
Boeing
|
|
B737-300QC
|
|
|
1
|
|
|
B737-700
|
|
|
4
|
|
|
B737-800
|
|
|
32
|
|
|
B737-900ER
|
|
|
2
|
|
|
B757-200
|
|
|
2
|
|
|
B757-200SF
|
|
|
1
|
|
|
B767-300ER
|
|
|
1
|
|
|
B777-200LRF
|
|
|
2
|
|
|
B787-8
|
|
|
1
|
|
|
Total
|
|
|
46
|
Total
|
|
|
|
|
80
|
(1) | Includes an investment in direct finance lease. |
Airframe Type
|
|
Number of
Aircraft
|
Narrow-body (1)
|
|
69
|
Wide-body (1) (2)
|
|
11
|
Total
|
|
80
|
(1)
|
Includes two freighters.
|
(2)
|
Includes an investment in direct finance lease.
|
Years ended
|
||||||||||||||||||||||||
|
2015
|
2014
|
2013
|
|||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
As restated
|
As restated
|
As restated
|
As restated
|
|||||||||||||||||||||
Europe:
|
||||||||||||||||||||||||
United Kingdom
|
$
|
50,742
|
12
|
%
|
$
|
46,281
|
11
|
%
|
$
|
48,668
|
14
|
%
|
||||||||||||
Turkey
|
29,847
|
7
|
%
|
27,069
|
7
|
%
|
13,702
|
4
|
%
|
|||||||||||||||
Russia
|
24,095
|
6
|
%
|
9,017
|
2
|
%
|
10,288
|
3
|
%
|
|||||||||||||||
Other (1)
|
74,171
|
17
|
%
|
73,660
|
19
|
%
|
79,359
|
22
|
%
|
|||||||||||||||
Europe — Total
|
178,855
|
42
|
%
|
156,027
|
39
|
%
|
152,017
|
43
|
%
|
|||||||||||||||
Asia and South Pacific:
|
||||||||||||||||||||||||
Philippines
|
38,677
|
9
|
%
|
12,947
|
3
|
%
|
—
|
—
|
||||||||||||||||
China
|
37,943
|
9
|
%
|
47,049
|
12
|
%
|
41,332
|
12
|
%
|
|||||||||||||||
India
|
19,572
|
4
|
%
|
32,675
|
8
|
%
|
19,854
|
6
|
%
|
|||||||||||||||
Other
|
39,056
|
9
|
%
|
45,855
|
11
|
%
|
32,840
|
9
|
%
|
|||||||||||||||
Asia and South Pacific — Total
|
135,248
|
31
|
%
|
138,526
|
34
|
%
|
94,026
|
27
|
%
|
|||||||||||||||
Mexico, South and Central America:
|
||||||||||||||||||||||||
Chile
|
24,336
|
6
|
%
|
28,116
|
7
|
%
|
10,055
|
3
|
%
|
|||||||||||||||
Other
|
16,732
|
4
|
%
|
21,733
|
5
|
%
|
33,013
|
9
|
%
|
|||||||||||||||
Mexico, South and Central America — Total
|
41,068
|
10
|
%
|
49,849
|
12
|
%
|
43,068
|
12
|
%
|
|||||||||||||||
North America:
|
||||||||||||||||||||||||
United States
|
37,316
|
9
|
%
|
41,531
|
10
|
%
|
40,482
|
12
|
%
|
|||||||||||||||
Other
|
6,380
|
1
|
%
|
3,429
|
1
|
%
|
3,891
|
1
|
%
|
|||||||||||||||
North America — Total
|
43,696
|
10
|
%
|
44,960
|
11
|
%
|
44,373
|
13
|
%
|
|||||||||||||||
Middle East and Africa — Total:
|
||||||||||||||||||||||||
Ethiopia
|
22,808
|
5
|
%
|
4,501
|
1
|
%
|
4,416
|
1
|
%
|
|||||||||||||||
Other
|
8,315
|
2
|
%
|
12,700
|
3
|
%
|
13,892
|
4
|
%
|
|||||||||||||||
Middle East and Africa — Total
|
31,123
|
7
|
%
|
17,201
|
4
|
%
|
18,308
|
5
|
%
|
|||||||||||||||
Total Lease Revenue
|
$
|
429,990
|
100
|
%
|
$
|
406,563
|
100
|
%
|
$
|
351,792
|
100
|
%
|
(1) | Includes $0.3 million of finance lease income in 2015. |
|
Airframe Type
|
|||||||
Year of Scheduled Lease Expiration
|
Narrow (1)
|
|
Wide (2)
|
|
Total
|
|||
Off-lease
|
|
2
|
|
|
—
|
|
|
2
|
2016
|
|
5
|
|
|
1
|
|
|
6
|
2017
|
|
11
|
|
|
—
|
|
|
11
|
2018
|
|
6
|
|
|
3
|
|
|
9
|
2019
|
|
10
|
|
|
—
|
|
|
10
|
2020
|
|
6
|
|
|
—
|
|
|
6
|
2021
|
|
10
|
|
|
1
|
|
|
11
|
2022
|
|
6
|
|
|
—
|
|
|
6
|
2023
|
|
4
|
|
|
—
|
|
|
4
|
2024
|
|
3
|
|
|
—
|
|
|
3
|
2025
|
|
2
|
|
|
4
|
(3)
|
|
6
|
2026
|
|
2
|
|
|
—
|
|
|
2
|
2027
|
|
2
|
|
|
2
|
|
|
4
|
Total
|
|
69
|
|
|
11
|
|
|
80
|
(1) | Includes one freighter each in 2016 and 2018. |
(2) | Includes two freighters in 2027. |
(3) | Includes an investment in direct finance lease. |
Lessee
|
|
Sublessee
|
Qantas Airways Limited
|
|
Jetstar Airways Pty Ltd.
|
Etihad Airways
|
|
Air Serbia
|
Retained earnings at December 31, 2012 – as previously reported
|
$
|
83,138
|
||
Adjustments
|
(8,191
|
)
|
||
Retained earnings at December 31, 2012 – as restated
|
$
|
74,947
|
December 31, 2014
|
||||||||||||||||
(Dollars in thousands)
|
||||||||||||||||
Balance sheet data:
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Flight equipment held for operating lease, net
|
$
|
3,705,407
|
$
|
(143,336
|
)
|
$
|
(5,187
|
)
|
$
|
3,556,884
|
||||||
Maintenance rights, net
|
—
|
144,920
|
—
|
144,920
|
||||||||||||
Other assets, net
|
31,608
|
—
|
(2,659
|
)
|
28,949
|
|||||||||||
Secured borrowings, net
|
2,335,328
|
—
|
(2,659
|
)
|
2,332,669
|
|||||||||||
Deferred tax liability, net
|
16,289
|
294
|
(1,277
|
)
|
15,306
|
|||||||||||
Retained earnings
|
117,402
|
1,290
|
(3,910
|
)
|
114,782
|
Year Ended December 31, 2014
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Operating lease revenue
|
$
|
404,668
|
$
|
1,895
|
$
|
—
|
$
|
406,563
|
||||||||
Equity earnings from unconsolidated subsidiary
|
2,456
|
—
|
1,106
|
3,562
|
||||||||||||
Gain on sale of aircraft
|
18,878
|
(4,564
|
)
|
447
|
14,761
|
|||||||||||
Depreciation
|
175,547
|
(8,290
|
)
|
(274
|
)
|
166,983
|
||||||||||
Aircraft impairment
|
—
|
—
|
1,200
|
1,200
|
||||||||||||
Selling, general and administrative
|
41,148
|
—
|
(115
|
)
|
41,033
|
|||||||||||
Net (gain) loss on extinguishment of debt
|
(3,922
|
)
|
1,713
|
15
|
(2,194
|
)
|
||||||||||
Maintenance and other costs
|
6,960
|
—
|
100
|
7,060
|
||||||||||||
Provision for income taxes
|
8,263
|
751
|
(323
|
)
|
8,691
|
|||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.32
|
$
|
1.42
|
||||||||||||
Diluted
|
$
|
1.32
|
$
|
1.42
|
Year Ended December 31, 2013
|
||||||||||||||||
(Dollars in thousands, except per share data)
|
||||||||||||||||
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Operating lease revenue
|
$
|
359,409
|
$
|
(8,062
|
)
|
445
|
$
|
351,792
|
||||||||
Equity earnings from unconsolidated subsidiary
|
1,871
|
—
|
(380
|
)
|
1,491
|
|||||||||||
Gain on sale of aircraft
|
6,277
|
(856
|
)
|
—
|
5,421
|
|||||||||||
Depreciation
|
146,400
|
(7,854
|
)
|
(210
|
)
|
138,336
|
||||||||||
Aircraft impairment
|
8,825
|
(2,659
|
)
|
—
|
6,166
|
|||||||||||
Selling, general and administrative
|
37,418
|
—
|
2,175
|
39,593
|
||||||||||||
Net (gain) loss on extinguishment of debt
|
(15,881
|
)
|
—
|
734
|
(15,147
|
)
|
||||||||||
Maintenance and other costs
|
15,454
|
—
|
22
|
15,476
|
||||||||||||
Provision for income taxes
|
5,659
|
118
|
|
(2,643
|
)
|
3,134
|
||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.51
|
$
|
1.55
|
||||||||||||
Diluted
|
$
|
1.50
|
$
|
1.55
|
● | Flight equipment where original manufacturer's prices are not relevant due to plane modifications and conversions. |
● | Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence. |
● | The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture. |
● | Dispositions of flight equipment prior to the end of its estimated useful life at a residual value different from that used for newly acquired aircraft. |
● | Operating lease revenue. We receive lease revenues from flight equipment under operating leases. Rental income from aircraft is recognized on a straight-line basis over the initial term of the respective lease. The operating lease agreements generally do not provide for purchase options, however, the leases may allow the lessee to exercise an option to extend the lease for an additional term. Contingent rents are recognized as revenue when the contingency is resolved. Revenue is not recognized when collection is not reasonably assured. |
● | Finance lease income. Revenue from direct finance leases is recognized using the interest method to produce a level yield over the life of the finance lease. |
|
Years ended
|
Increase/
(Decrease)
|
||||||||||
|
2015
|
2014
|
||||||||||
|
(Dollars in thousands)
|
|||||||||||
As restated
|
||||||||||||
Revenues
|
||||||||||||
Operating lease revenue
|
$
|
429,691
|
$
|
406,563
|
$
|
23,128
|
||||||
Finance lease income
|
299
|
—
|
299
|
|||||||||
Equity earnings from unconsolidated subsidiary
|
1,159
|
3,562
|
(2,403
|
)
|
||||||||
Gain on sale of aircraft
|
28,959
|
14,761
|
14,198
|
|||||||||
Interest and other income
|
2,289
|
662
|
1,627
|
|||||||||
Total revenues
|
462,397
|
425,548
|
36,849
|
|||||||||
Expenses
|
||||||||||||
Depreciation
|
159,732
|
166,983
|
(7,251
|
)
|
||||||||
Aircraft impairment
|
66,093
|
1,200
|
64,893
|
|||||||||
Interest expense
|
145,448
|
142,519
|
2,929
|
|||||||||
Selling, general and administrative
|
33,674
|
41,033
|
(7,359
|
)
|
||||||||
Ineffective, dedesignated and terminated derivatives
|
4,134
|
72
|
4,062
|
|||||||||
Net (gain) loss on extinguishment of debt
|
17,491
|
(2,194
|
)
|
19,685
|
||||||||
Maintenance and other costs
|
7,628
|
7,060
|
568
|
|||||||||
Total expenses
|
434,200
|
356,673
|
77,527
|
|||||||||
Net income before provision for income taxes
|
28,197
|
68,875
|
(40,678
|
)
|
||||||||
Provision for income taxes
|
5,399
|
8,691
|
(3,292
|
)
|
||||||||
Net income
|
$
|
22,798
|
$
|
60,184
|
$
|
(37,386
|
)
|
|
Years ended
|
Increase/
(Decrease)
|
||||||||||
|
2015
|
2014
|
||||||||||
|
(Dollars in thousands)
|
|||||||||||
As restated
|
||||||||||||
Operating lease revenue:
|
||||||||||||
Operating lease rental revenue
|
$
|
398,741
|
$
|
387,835
|
$
|
10,906
|
||||||
End of lease revenue
|
53,760
|
41,651
|
12,109
|
|||||||||
Amortization of lease incentives
|
(20,527
|
)
|
(18,934
|
)
|
(1,593
|
)
|
||||||
Amortization of lease premiums, discounts & other
|
(2,283
|
)
|
(3,989
|
)
|
1,706
|
|||||||
Total operating lease revenue
|
$
|
429,691
|
$
|
406,563
|
$
|
23,128
|
|
Years ended
|
Increase/
(Decrease)
|
||||||||||
|
2014
|
2013
|
||||||||||
|
(Dollars in thousands)
|
|||||||||||
As restated
|
As restated
|
|||||||||||
Revenues
|
||||||||||||
Operating lease revenue
|
$
|
406,563
|
$
|
351,792
|
$
|
54,771
|
||||||
Equity earnings from unconsolidated subsidiary
|
3,562
|
1,491
|
2,071
|
|||||||||
Gain on sale of aircraft
|
14,761
|
5,421
|
9,340
|
|||||||||
Interest and other income
|
662
|
1,930
|
(1,268
|
)
|
||||||||
Total revenues
|
425,548
|
360,634
|
64,914
|
|||||||||
Expenses
|
||||||||||||
Depreciation
|
166,983
|
138,336
|
28,647
|
|||||||||
Aircraft impairment
|
1,200
|
6,166
|
(4,966
|
)
|
||||||||
Interest expense
|
142,519
|
120,399
|
22,120
|
|||||||||
Selling, general and administrative
|
41,033
|
39,593
|
1,440
|
|||||||||
Ineffective, dedesignated and terminated derivatives
|
72
|
(1,263
|
)
|
1,335
|
||||||||
Net gain on extinguishment of debt
|
(2,194
|
)
|
(15,147
|
)
|
12,953
|
|||||||
Maintenance and other costs
|
7,060
|
15,476
|
(8,416
|
)
|
||||||||
Total expenses
|
356,673
|
303,560
|
53,113
|
|||||||||
Net income before provision for income taxes
|
68,875
|
57,074
|
11,801
|
|||||||||
Provision for income taxes
|
8,691
|
3,134
|
5,557
|
|||||||||
Net income
|
$
|
60,184
|
$
|
53,940
|
$
|
6,244
|
|
Years ended
|
Increase/
(Decrease)
|
||||||||||
|
2014
|
2013
|
||||||||||
|
(Dollars in thousands)
|
|||||||||||
As restated
|
As restated
|
|||||||||||
Operating lease revenue:
|
||||||||||||
Operating lease rental revenue
|
$
|
387,835
|
$
|
325,361
|
$
|
62,474
|
||||||
End of lease revenue
|
41,651
|
39,507
|
2,144
|
|||||||||
Amortization of lease incentives
|
(18,934
|
)
|
(9,019
|
)
|
(9,915
|
)
|
||||||
Amortization of lease premiums, discounts & other
|
(3,989
|
)
|
(4,057
|
)
|
68
|
|||||||
Total operating lease revenue
|
$
|
406,563
|
$
|
351,792
|
$
|
54,771
|
If redeemed during the 12-month period commencing on December 15 of the years set forth below:
|
Redemption Price
|
|
2016
|
|
105.063 %
|
2017
|
|
103.375 %
|
2018
|
|
101.688 %
|
2019 and thereafter
|
|
100.000 %
|
If redeemed during the 12-month period commencing on October 15 of the years set forth below:
|
Redemption Price
|
|
2017
|
|
104.781 %
|
2018
|
|
103.188 %
|
2019
|
|
101.594 %
|
2020 and thereafter
|
|
100.000 %
|
● | Restrictions on incurrence of debt and issuance of guarantees; |
● | Restrictions on liens or other encumbrances; |
● | Restrictions on acquisition, substitution and disposition of aircraft; |
● | Requirements relating to the maintenance, registration and insurance of our aircraft; |
● | Restrictions on the modification of aircraft and capital expenditures; and |
● | Requirements to maintain concentration limits and limitations on the re-leasing and disposition of aircraft. |
● | Failure to pay interest or principal when due or within a prescribed period of time following its due date; |
● | Failure to make certain other payments and such payments are not made within a prescribed period of time following written notice; |
● | Failure to comply with certain other covenants and such noncompliance continues for a specified period of time following written notice; and |
● | Any of the aircraft owning or borrower entities become the subject of insolvency proceedings. |
|
2016
|
2017
|
2018
|
2019
|
2020
|
Thereafter
|
Total
|
|||||||||||||||||||||
Principal payments:
|
||||||||||||||||||||||||||||
Principal payment under the 2020 Notes (1)
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
375,000
|
$
|
—
|
$
|
375,000
|
||||||||||||||
Principal payment under the 2021 Notes (2)
|
—
|
—
|
—
|
—
|
—
|
325,000
|
325,000
|
|||||||||||||||||||||
Principal payments under the Securitization Notes (3)
|
135,783
|
22,207
|
21,575
|
33,425
|
11,582
|
71,214
|
295,786
|
|||||||||||||||||||||
Principal payments under the Nord LB Facility (4)
|
24,504
|
25,412
|
205,362
|
—
|
—
|
—
|
255,278
|
|||||||||||||||||||||
Principal payments under the CBA Facility (5)
|
9,543
|
10,043
|
17,277
|
10,079
|
41,248
|
—
|
88,190
|
|||||||||||||||||||||
Principal payments under the Term Loan (6)
|
23,766
|
23,766
|
23,766
|
356,483
|
—
|
—
|
427,781
|
|||||||||||||||||||||
Principal payments under Other Aircraft Secured Borrowings (7)
|
98,392
|
44,522
|
46,574
|
59,135
|
41,102
|
373,344
|
663,069
|
|||||||||||||||||||||
Total principal payments
|
291,988
|
125,950
|
314,554
|
459,122
|
468,932
|
769,558
|
2,430,104
|
|||||||||||||||||||||
Interest payments:
|
||||||||||||||||||||||||||||
Interest payments under the 2020 Notes and 2021 Notes (8)
|
40,969
|
40,969
|
40,969
|
40,969
|
40,125
|
16,401
|
220,402
|
|||||||||||||||||||||
Interest payments under secured borrowings (9)
|
48,078
|
43,259
|
38,391
|
26,089
|
12,316
|
35,350
|
203,483
|
|||||||||||||||||||||
Total interest payments
|
89,047
|
84,228
|
79,360
|
67,058
|
52,441
|
51,751
|
423,885
|
|||||||||||||||||||||
Payments to BBAM and its affiliates under our management agreement (10)
|
5,722
|
5,722
|
5,722
|
5,722
|
5,722
|
25,752
|
54,362
|
|||||||||||||||||||||
Payments to BBAM and its affiliates under our administrative services and servicing agreements (11)
|
13,630
|
12,931
|
11,648
|
10,169
|
9,244
|
42,674
|
100,296
|
|||||||||||||||||||||
Total
|
$
|
400,387
|
$
|
228,831
|
$
|
411,284
|
$
|
542,071
|
$
|
536,339
|
$
|
889,735
|
$
|
3,008,647
|
(1)
|
The final maturity date of the 2020 Notes is December 15, 2020.
|
(2)
|
The final maturity date of the 2021 Notes is October 15, 2021.
|
(3)
|
Principal payments under the Securitization Notes are determined monthly based on revenues collected and costs and other liabilities incurred prior to the relevant payment date. Future principal payment amounts are estimated based upon existing leases and current re-leasing assumptions. The final maturity of the Securitization Notes is November 14, 2033.
|
(4)
|
Amounts reflect estimated principal payments through maturity date of November 2018.
|
(5)
|
We make scheduled monthly payments of principal and interest on each loan in accordance with a fixed amortization schedule.
|
(6)
|
We make quarterly fixed principal payments of $5.9 million, subject to satisfying certain debt service coverage ratios and other covenants.
|
(7)
|
We have entered into 21 secured loan agreements, 11 of which are recourse to us. We make scheduled monthly payments of principal and interest on each loan in accordance with fixed amortization schedules.
|
(8)
|
The 2020 Notes have a fixed annual interest rate of 6.750%, which is paid every six months on June 15th and December 15th of each year. The 2021 Notes have a fixed annual interest rate of 6.375%, which will be paid every six months on April 15th and October 15th of each year.
|
(9)
|
For variable rate borrowings based on LIBOR plus the applicable margin, LIBOR is assumed to remain at the current rate in effect at year end through the term of the loan.
|
(10)
|
In connection with the ECAF-I Transaction, the term of the Management Agreement was extended from December 28, 2022 to July 1, 2025. In addition, the annual management fee that the Company pays to the Manager was reduced from $10.7 million to $5.7 million, effective as of July 1, 2015. The management fee will be adjusted each calendar year by (i) 0.3% of the change in the book value of the Company's aircraft portfolio during the preceding year, up to a $2.0 billion increase over the book value of the post-ECAF-I Transaction portfolio and (ii) 0.25% of the change in the book value of the Company's aircraft portfolio in excess of $2.0 billion, with a minimum annual management fee of $5.0 million. The management fee also will be subject to an annual adjustment tied to the Consumer Price Index.
|
(11)
|
Our servicing agreement between BBAM and B&B Air Funding provides that we will pay BBAM a base fee of $150,000 per month, subject to an annual CPI adjustment and a servicing fee equal to 1.0% of the aggregate amount of basic rent collected for all or any part of a month for any of our aircraft plus 1.0% of the aggregate amount of basic rent due for all or any part of a month for any of our aircraft. In addition, B&B Air Funding pays our Manager a $750,000 administrative fee pursuant to an administrative services agreement.
|
Name
|
Age
|
Position
|
||
Colm Barrington
|
70
|
Chief Executive Officer and Director
|
||
Gary Dales
|
60
|
Chief Financial Officer
|
||
Joseph M. Donovan
|
61
|
Director and Chairman
|
||
Erik G. Braathen
|
60
|
Director
|
||
Eugene McCague
|
57
|
Director
|
||
Robert S. Tomczak
|
54
|
Director
|
||
Susan M. Walton
|
56
|
Director
|
||
Steven Zissis
|
56
|
Director
|
● | selecting independent auditors for approval by our shareholders; |
● | reviewing the scope of the audit to be conducted by our independent auditors, as well as the results of their audit; |
● | approving audit and non-audit services provided to us by the independent auditors; |
● | reviewing the organization and scope of our internal system of audit, financial and disclosure controls; |
● | overseeing internal controls and risk management; |
● | overseeing our financial reporting activities, including our annual report, and the accounting standards and principles followed; |
● | reviewing and approving related-party transactions and preparing reports for the board of directors on such related-party transactions; |
● | conducting other reviews relating to compliance with our policies and applicable laws; and |
● | overseeing our internal audit function. |
|
Shares Beneficially Owned
|
|
||||||
Name
|
Number
|
|
Percent
|
|
||||
Onex Corporation (1)
|
2,443,476
|
7.3%
|
||||||
Seawolf Capital, LLC (2)
|
|
2,351,799
|
|
|
5.7%
|
|
||
Summit Aviation Partners LLC (3)
|
1,743,156
|
5.2%
|
(1) | The information above and in this footnote is based on information taken from the Schedule 13G filed by Onex Corporation, Onex Partners III GP LP, Onex Partners GP Inc., Onex US Principals LP, Onex Partners III PV LP, Onex Partners III Select LP, Onex Partners III LP, New PCo Investments Ltd., 1597257 Ontario Inc., American Farm Investment Corporation, ONCAN Canadian Holdings Ltd. and Gerald W. Schwartz (collectively, the "Onex Reporting Persons") with the SEC on January 9, 2013, and from information independently communicated by Onex Corporation to us subsequent to December 31, 2015. Onex Corporation has shared voting and dispositive power over 2,425,948 ADSs. Gerald W. Schwartz has shared voting and dispositive power over 2,443,476 ADSs. |
(2) | The information above and in this footnote is based on information taken from the Schedule 13G filed by Seawolf Capital LLC, Seawolf Master Fund, Ltd., Vincent Daniel, Atwood Porter Collins and Daniel Jonathan Moses (collectively, the "Seawolf Reporting Persons") with the SEC on January 22, 2016. The Seawolf Reporting Persons have shared voting and dispositive power over 2,351,799 ADSs. Seawolf Capital, LLC is the investment manager of Seawolf Master Fund, Ltd. and therefore retains voting and dispositive power over the ADSs owned by each. |
(3) | The information above and in this footnote is based on information taken from the Schedule 13D/A filed by Steven Zissis, the Zissis Family Trust and Summit Aviation Partners LLC with the SEC on March 14, 2016. Steven Zissis and the Zissis Family Trust have shared voting and dispositive power over 1,743,156 ADSs. Summit Aviation Partners LLC has shared voting and dispositive power over 1,610,717 ADSs. |
● | managing our portfolio of aircraft and other aviation assets and the administration of our cash balances; |
● | if requested by our board, making available a member of the core management team of our Manager as our nominee on the board of directors of any of our subsidiaries (provided that each such member must be agreed between us and our Manager); |
● | assisting with the implementation of our board's decisions; |
● | providing us suitably qualified and experienced persons to perform the management and administrative services for us and our subsidiaries, including persons to be appointed by our board to serve as our dedicated chief executive and chief financial officers (who shall remain employees of, and be remunerated by, our Manager or an affiliate of our Manager while serving in such capacities); |
● | performing or procuring the performance of all reasonable accounting, tax, corporate secretarial, information technology, reporting and compliance services for us and our subsidiaries, including the preparation and maintenance of our accounts and such financial statements and other reports and filings as we are required to make with any governmental agency (including the SEC) or stock exchange; |
● | supervising financial audits of us by an external auditor as required; |
● | managing our relations with our investors and the public, including: |
● | preparing our annual reports and any notices of meeting, papers, reports and agendas relating to meetings of our shareholders; and |
● | assisting in the resolution of any complaints by or disputes with our investors and any litigation involving us (other than litigation in which our interests are adverse to those of our Manager or BBAM); and |
● | using commercially reasonable efforts to cause us to comply with all applicable laws. |
● | sourcing opportunities relating to aircraft and other aviation assets, including using its commercially reasonable efforts to notify us of potential aviation asset investment opportunities that come to the attention of our Manager and which our Manager acting reasonably believes may be of interest to us as investments; |
● | in relation to identified potential opportunities to purchase or sell aircraft and other aviation assets, investigating, researching, evaluating, advising and making recommendations on or facilitating such opportunities; |
● | with respect to prospective purchases and sales of aircraft and other aviation assets, conducting negotiations with sellers and purchasers and their agents, representatives and financial advisors; and |
● | otherwise providing advice and assistance to us in relation to the evaluation or pursuit of aviation asset investment or disposition opportunities as we may reasonably request from time to time. |
● | the expansion of our Manager's core management team with additional personnel as may be required by developments or changes in the commercial aircraft leasing industry (whether regulatory, economic or otherwise) or the compliance or reporting environment for publicly listed companies in the United States (whether as a result of changes to securities laws or regulations, listing requirements or accounting principles or otherwise); and |
● | making available individuals (other than members of our Manager's core management team) as our nominees on the boards of directors of any of our subsidiaries. |
● | that matter has been the subject of a recommendation by our Manager; or |
● | the failure to make that decision, take that action or omit to take that action would breach the fiduciary duties of our directors or any law. |
● | that matter has been the subject of a recommendation by our Manager; or |
● | the failure to make that decision, take that action or omit to take that action would breach the fiduciary duties of our directors or any law. |
(1) | carry out any transaction with an affiliate of our Manager on our behalf, it being understood that BBAM has been appointed as the exclusive Servicer for our portfolio of aircraft, and that our Manager may delegate the provision of all or any part of the services under the Management Agreement to any person affiliated or associated with BBAM; |
(2) | carry out any aviation asset investment or disposition transaction, or sequence of related aviation asset investment or disposition transactions with the same person or group of persons under common control, for us if the aggregate purchase price to be paid or the gross proceeds to be received by us in connection therewith would exceed $200 million; |
(3) | carry out any aviation asset investment or disposition transaction if the sum of all the purchase prices to be paid or of all the gross proceeds to be received by us in connection with all such transactions during any quarter would exceed $500 million; |
(4) | appoint or retain any third-party service provider to assist our Manager in providing management and administrative services if: |
● | the amount to be paid by our Manager and reimbursed by us or paid by us to the third party with respect to any particular matter, or series of related matters, is reasonably likely to exceed $1 million; or |
● | as a result of the appointment or retention, the amount to be paid by our Manager and reimbursed by us or paid by us to all such third-party service providers appointed or retained in any rolling 12-month period is reasonably likely to exceed $5 million; |
(5) | appoint or retain any third-party service provider to assist our Manager in providing ancillary management and administrative or the origination and disposition services if: |
● | the amount to be paid by our Manager and reimbursed by us or paid by us to the third party with respect to any particular matter, or series of related matters, is reasonably likely to exceed $1 million; or |
● | as a result of the appointment or retention, the amount to be paid by our Manager and reimbursed by us or paid by us to all such third-party service providers appointed or retained in any rolling 12-month period is reasonably likely to exceed $7.5 million; or |
(6) | hold any cash or other assets of ours, provided that our Manager may cause our cash and other assets to be held in our name or any custodian for us nominated or approved by us. |
● | a base fee of $150,000 per month (the amount of the base fee will be subject to adjustment as set forth below under "— Fees and Expenses — Adjusting the Base Fees and Administrative Agency Fees"); and |
● | a rent fee equal to 1.0% of the aggregate amount of basic rent due for all or any part of a month for any of such aircraft plus 1.0% of the aggregate amount of basic rent actually paid for all or any part of a month for any of such aircraft. |
● | for all our costs paid for us by our Manager (other than remuneration and certain expenses in relation to our Manager's core management team and our Manager's corporate overhead), including the following items which are not covered by the management expense amount: |
● | directors' fees for the independent directors on our board of directors and our subsidiaries, |
● | directors' and officers' insurance for our and our subsidiaries' directors and officers, |
● | travel expenses of the directors (including flights, accommodation, taxis, entertainment and meals while traveling) to attend any meeting of the board of our Company, |
● | registration and listing fees in connection with the listing of our shares on the NYSE and registering the shares under the Securities Act, |
● | fees and expenses relating to any equity or debt financings we enter into in the future, |
● | fees and expenses of the depositary for our ADSs, |
● | costs and expenses related to insuring our aircraft and other aviation assets, including all fees and expenses of insurance advisors and brokers, |
● | costs incurred in connection with organizing and hosting our annual meetings or other general meetings of our Company, |
● | costs of production and distribution of any of our security holder communications, including notices of meetings, annual and other reports, press releases, and any prospectus, disclosure statement, offering memorandum or other form of offering document, |
● | website development and maintenance, |
● | travel expenses of the core management team and other personnel of BBAM and its affiliates (including flights, accommodation, taxis, entertainment and meals while traveling) related to sourcing, negotiating and conducting transactions on our behalf and attending any meeting of the board or our Company, |
● | external legal counsel, |
● | fees of third party consultants, accounting firms and other professionals, |
● | external auditor's fees, and |
● | internal auditor's fees. |
● | for all taxes, costs, charges and expenses properly incurred by our Manager in connection with: |
● | the provision of ancillary management and administrative services, and |
● | the engagement of professional advisors, attorneys, appraisers, specialist consultants and other experts as requested by us from time to time; or which our Manager considers reasonably necessary in providing the services and discharging its duties and other functions under the Management Agreement, including, without limitation, the fees and expenses of professional advisors relating to the purchase and sale of aircraft and other aviation assets. |
● | BBAM LP ceases to hold (directly or indirectly) more than 50% of the voting equity of, and economic interest in our Manager; |
● | our Manager becomes subject to bankruptcy or insolvency proceedings that are not discharged within 75 days, unless our Manager is withdrawn and replaced within 90 days of the initiation of such bankruptcy or insolvency proceedings with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the Management Agreement; |
● | at least 75% of our independent directors and holders of 75% or more of all of our outstanding common shares (measured by vote) determine by resolution that there has been unsatisfactory performance by our Manager that is materially detrimental to us; |
● | our Manager materially breaches the Management Agreement and fails to remedy such breach within 90 days of receiving written notice from us requiring it to do so, or such breach results in liability to us and is attributable to our Manager's gross negligence, fraud or dishonesty, or willful misconduct in respect of the obligation to apply the standard of care; |
● | any license, permit or authorization held by our Manager which is necessary for it to perform the services and duties under the Management Agreement is materially breached, suspended or revoked, or otherwise made subject to conditions which, in the reasonable opinion of our board of directors, would prevent our Manager from performing the services and the situation is not remedied within 90 days; |
● | our Manager voluntarily commences or files any petition seeking bankruptcy, insolvency or receivership relief; consents to the institution of, or fails to contest the filing of any bankruptcy or insolvency filing; files an answer admitting the material allegations filed against it in any such proceeding; or makes a general assignment for the benefit of its creditors, unless our Manager is withdrawn and replaced within 15 days with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the Management Agreement; or |
● | an order is made for the winding up of our Manager, unless our Manager is withdrawn and replaced within 15 days with an affiliate or associate of BBAM that is able to make correctly the representations and warranties set out in the Management Agreement. |
● | we fail to make any payment due under the Management Agreement to our Manager within 15 days after the same becomes due; |
● | we otherwise materially breach the Management Agreement and fail to remedy the breach within 90 days of receiving written notice from our Manager requiring us to do so; or |
● | if the directors in office on December 28, 2012 and any successor to any such director who was nominated or selected by a majority of the current directors and our Manager appointed directors, cease to constitute at least a majority of the board (excluding directors appointed by our Manager). (See "Board Appointees".) |
● | dealing or conducting business with us, our Manager, any affiliate or associate of BBAM or any shareholder of ours; |
● | being interested in any contract or transaction with us, our Manager, any affiliate or associate of BBAM or any shareholder of ours; |
● | acting in the same or similar capacity in relation to any other corporation or enterprise; |
● | holding or dealing in any of our shares or other securities or interests therein; or |
● | co-investing with us. |
● | lease marketing and remarketing, including lease negotiation; |
● | collecting rental payments and other amounts due under leases, collecting maintenance payments where applicable, lease compliance and enforcement and delivery and accepting redelivery of aircraft under lease; |
● | implementing aircraft dispositions; |
● | monitoring the performance of maintenance obligations of lessees under the leases; |
● | procuring legal and other professional services with respect to the lease, sale or financing of the aircraft, any amendment or modification of any lease, the enforcement of our rights under any lease, disputes that arise as to any aircraft or for any other purpose that BBAM reasonably determines is necessary in connection with the performance of its services; |
● | periodic reporting of operational information relating to the aircraft, including providing certain reports to lenders and other third parties; and |
● | certain aviation insurance related services. |
● | a base fee of $150,000 per month; and |
● | a rent fee equal to 1.0% of the aggregate amount of basic rent due for all or any part of a month for any aircraft financed by the Notes, plus 1.0% of the aggregate amount of basic rent actually paid for all or any part of a month for any such aircraft. |
● | Bankruptcy or insolvency of BBAM LP; |
● | BBAM LP ceasing to own, directly or indirectly, at least 50% of the Servicer; |
● | Summit ceasing to own, directly or indirectly, at least 33.33% of the partnership interests in BBAM LP; provided that a sale that results in such ownership being at a level below 33.33% shall not constitute a servicer termination event if the sale is to a publicly listed entity or other person with a net worth of at least $100 million; and |
● | 50% or more of the Servicer's key finance and legal team or technical and marketing team ceasing to be employed by BBAM LP and are not replaced with employees with reasonably comparable experience within 90 days. |
● | A servicing fee equal to 3.5% of the monthly rents actually collected; |
● | An administrative fee of $1,000 per month per aircraft; |
● | An administrative fee of $10,000 per month; and |
● | A disposition fee equal to 1.5% of the gross consideration collected with respect to the sale of any subject aircraft. |
● | A servicing fee equal to 3.5% of the monthly rents actually collected; |
● | An administrative fee of $1,000 per month per aircraft; and |
● | A disposition fee equal to 1.5% of the gross consideration collected with respect to the sale of any subject aircraft. |
Dividend payment date
|
Dividends paid
per share
|
Total cash outlay
|
|||||
2015
|
|
||||||
November 20, 2015
|
$
|
0.25
|
$
|
10.3 million
|
|||
August 20, 2015
|
$
|
0.25
|
$
|
10.4 million
|
|||
May 20, 2015
|
$
|
0.25
|
$
|
10.4 million
|
|||
February 20, 2015
|
$
|
0.25
|
$
|
10.4 million
|
|||
2014
|
|
||||||
November 20, 2014
|
$
|
0.25
|
$
|
10.4 million
|
|||
August 20, 2014
|
$
|
0.25
|
$
|
10.4 million
|
|||
May 20, 2014
|
$
|
0.25
|
$
|
10.3 million
|
|||
February 20, 2014
|
$
|
0.25
|
$
|
10.3 million
|
|||
2013
|
|
||||||
November 19, 2013
|
$
|
0.22
|
$
|
9.1 million
|
|||
August 20, 2013
|
$
|
0.22
|
$
|
9.1 million
|
|||
May 20, 2013
|
$
|
0.22
|
$
|
6.2 million
|
|||
February 20, 2013
|
$
|
0.22
|
$
|
6.2 million
|
|
High
|
Low
|
||||||
2011
|
$
|
14.58
|
$
|
10.00
|
||||
2012
|
14.17
|
11.06
|
||||||
2013
|
17.37
|
12.51
|
||||||
2014
|
16.59
|
10.86
|
||||||
2015
|
16.29
|
11.77
|
|
High
|
Low
|
||||||
2014
|
||||||||
Quarter ending March 31, 2014
|
$
|
16.59
|
$
|
14.36
|
||||
Quarter ending June 30, 2014
|
15.08
|
13.15
|
||||||
Quarter ending September 30, 2014
|
15.13
|
12.75
|
||||||
Quarter ending December 31, 2014
|
14.21
|
10.86
|
||||||
2015
|
||||||||
Quarter ending March 31, 2015
|
15.55
|
13.01
|
||||||
Quarter ending June 30, 2015
|
16.29
|
14.48
|
||||||
Quarter ending September 30, 2015
|
16.05
|
11.77
|
||||||
Quarter ending December 31, 2015
|
14.03
|
12.09
|
|
High
|
Low
|
||||||
2015
|
||||||||
November 2015
|
13.79
|
12.09
|
||||||
December 2015
|
14.03
|
12.81
|
||||||
2016
|
||||||||
January 2016
|
13.85
|
10.63
|
||||||
February 2016
|
12.87
|
10.70
|
||||||
March 2016
|
13.63
|
12.21
|
||||||
April 2016 | 12.65 | 11.35 |
1) | Trust Indenture, dated as of October 2, 2007, among Deutsche Bank Trust Company Americas, BNP Paribas, AMBAC Assurance Corporation and Babcock & Brown Air Funding I Limited. See Item 5 "Liquidity and Capital Resources — Financing — Securitization." |
2) | Amended and Restated Servicing Agreement, dated as of January 24, 2013, by and among BBAM US LP, BBAM Aviation Services Limited and Fly Leasing Limited. See Item 7 "Related Party Transactions — Servicing Agreement." |
3) | Amended and Restated Senior Secured Credit Agreement, dated as of July 3, 2013, among Fly Acquisition II Limited, the Subsidiary Guarantors Party thereto, the Lenders Party thereto, and Deutsche Bank Trust Company Americas, as Security Trustee and as Administrative Agent. See Item 5 "Liquidity and Capital Resources — Financing — Fly Acquisition II Facility." |
4) | Amended and Restated Term Loan Agreement, dated as of November 21, 2013, among Fly Funding II S.A.R.L., Fly Leasing Limited, Fly Peridot Holdings Limited, Babcock & Brown Air Acquisition I Limited, each other Guarantor Party referred to therein, the Lenders identified therein, Citibank, N.A., and Wells Fargo Bank Northwest, National Association. See Item 5 "Liquidity and Capital Resources – Financing – Term Loan." |
5) | Indenture dated December 11, 2013, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 "Liquidity and Capital Resources—Financing—Unsecured Borrowing." |
6) | First Supplemental Indenture, dated December 11, 2013, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 "Liquidity and Capital Resources—Financing—Unsecured Borrowing." |
7) | Second Supplemental Indenture, dated as of October 3, 2014, between Fly Leasing Limited and Wells Fargo Bank, National Association. See Item 5 "Liquidity and Capital Resources—Financing—Unsecured Borrowing." |
8) | Amendment No. 1 to Trust Indenture, dated as of October 24, 2014, by and among Babcock & Brown Air Funding I Limited, Deutsche Bank Trust Company Americas, BNP Paribas and AMBAC Assurance Corporation. See Item 5 "Liquidity and Capital Resources—Financing— Securitization Notes." |
9) | Amendment No. 2 to Servicing Agreement, dated as of October 24, 2014, by and among BBAM Aircraft Management LP, BBAM Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. See Item 7 "Related Party Transactions — Servicing Agreement." |
10) | Letter from Ernst & Young LLP to the Securities and Exchange Commission, dated November 17, 2014. See Item 16C "Principal Accountant Fees and Services." |
11) | Amendment to Credit Agreement, dated as of April 22, 2015, among Fly Funding II S.а r.l., each Borrower Party named therein, the Consenting Lenders and the Replacement Lenders named therein, Wells Fargo Bank Northwest, National Association, as Collateral Agent, and Citibank N.A., in its capacity as Administrative Agent. See Item 5 "Liquidity and Capital Resources—Financing—Term Loan." |
12) | Sale Agreement dated June 19, 2015, among certain sellers and ECAF I Ltd. See Item 5 "Liquidity and Capital Resources." |
13) | First Amendment to Amended and Restated Fly Leasing Limited Management Agreement, dated June 19, 2015, between Fly Leasing Limited and Fly Leasing Management Co. Limited. See Item 7 "Related Party Transactions — Management Agreement." |
● | An "Irish Holder" is a holder of our shares that (1) beneficially owns our shares by virtue of holding the related ADSs evidenced by the relevant American Depositary Receipt or ADR; (2) in the case of individual holders, is resident or ordinarily resident in Ireland under Irish taxation laws; and (3) in the case of a holder that is a company, is resident in Ireland under Irish taxation laws and is not also a resident of any other country under any double taxation agreement entered into by Ireland. |
● | A "Non-Irish Holder" is a holder of our shares that is not an Irish Holder and has never been an Irish Holder. |
● | A "US Holder" is a holder of our shares that (1) beneficially owns our shares by virtue of holding the related ADSs evidenced by the relevant ADR; (2) is a resident of the United States for the purposes of the Ireland/United States Double Taxation Convention; (3) in the case of an individual holder, is not also resident or ordinarily resident in Ireland for Irish tax purposes; (4) in the case of a corporate holder, is not resident in Ireland for Irish tax purposes and is not ultimately controlled by persons resident in Ireland; and (5) is not engaged in any trade or business and does not perform independent personal services through a permanent establishment or fixed base in Ireland. |
● | "Relevant Territory" is defined as a country with which Ireland has a double tax treaty, (which includes the United States), or a member state of the European Union other than Ireland. |
● | who are ultimately controlled by persons resident in a Relevant Territory and who are not ultimately controlled by persons not resident in a Relevant Territory; or |
● | who are resident in a Relevant Territory and not controlled by Irish residents; or |
● | whose principal class of shares or the principal class of shares of whose 75% or greater parents are substantially and regularly traded on a recognized stock exchange in a Relevant Territory; or which are wholly owned by two or more companies, each of whose principal class of shares are substantially and regularly traded on a recognized stock exchange in a Relevant Territory |
● | 1% on the first €12,012; |
● | 3% on the next €6,656; |
● | 5.5%on the next €51,376 and |
● | 8% on the aggregate income in excess of €70,044. |
● | an individual resident in a Relevant Territory; or |
● | a corporation that is ultimately controlled by persons resident in a Relevant Territory; or |
● | a corporation whose principal class of shares (or whose 75% or greater parent's principal class of shares) are substantially and regularly traded on a recognized stock exchange in a Relevant Territory; or |
1
|
For the year ended 2015, the Universal Social Charge applied as follows:
|
·
|
1.5% on the first €12,012;
|
·
|
3.5% on the next €5,564
|
·
|
7% on the next €52,468 and
|
·
|
8% on the aggregate income in excess of €70,044.
|
● | a corporation that is wholly owned by two or more corporations each of whose principal class of shares is substantially and regularly traded on a recognized stock exchange in a Relevant Territory; or |
● | otherwise entitled to an exemption from DWT. |
● | Excess distributions by us to a U.S. Holder would be taxed in a special way. "Excess distributions" are amounts received by a U.S. Holder with respect to our shares in any taxable year that exceed 125% of the average distributions received by such U.S. Holder from us in the shorter of either the three previous years or such U.S. Holder's holding period for shares before the present taxable year. Excess distributions must be allocated ratably to each day that a U.S. Holder has held our shares. A U.S. Holder must include amounts allocated to the current taxable year in its gross income as ordinary income for that year. A U.S. Holder must pay tax on amounts allocated to each prior taxable year in which we were a PFIC at the highest rate in effect for that year on ordinary income and the tax is subject to an interest charge at the rate applicable to deficiencies for income tax. The preferential U.S. federal income tax rates for dividends and long-term capital gain of individual U.S. Holders (as well as certain trusts and estates) would not apply, and special rates would apply for calculating the amount of the foreign tax credit with respect to excess distributions. |
● | The entire amount of gain realized by a U.S. Holder upon the sale or other disposition of shares will also be treated as an excess distribution and will be subject to tax as described above. |
● | The tax basis in shares that were acquired from a decedent who was a U.S. Holder would not receive a step-up to fair market value as of the date of the decedent's death but would instead be equal to the decedent's basis, if lower than fair market value. |
●
|
Updating our internal guidance to reflect accounting policies for maintenance right assets and liabilities;
|
●
|
Updating the process flow and our internal controls for gathering relevant data to recognize and relieve maintenance right assets and liabilities;
|
●
|
Providing training to process owners, and establishing multi-leveled oversight and review; and
|
●
|
Testing the design and operating effectiveness of the remediated controls.
|
|
Years ended
|
|||||||||||||||
|
2015
|
2014 (1)
|
||||||||||||||
|
Amount
|
%
|
Amount
|
%
|
||||||||||||
Audit fees
|
$
|
2,768
|
89
|
%
|
$
|
2,206
|
73
|
%
|
||||||||
Audit-related fees
|
—
|
—
|
155
|
5
|
%
|
|||||||||||
Tax fees
|
330
|
11
|
%
|
653
|
22
|
%
|
||||||||||
All other fees
|
3
|
—
|
3
|
—
|
||||||||||||
Total
|
$
|
3,101
|
100
|
%
|
$
|
3,017
|
100
|
%
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of a Publicly Announced Repurchased Plan
|
Approximate Dollar Value of Shares that may yet be Purchased Under the Plans or Programs
|
||||||||||||
January 1-31, 2015
|
—
|
—
|
—
|
$
|
30.0 million
|
(1)
|
||||||||||
February 1-28, 2015
|
—
|
—
|
—
|
$
|
30.0 million
|
|||||||||||
March 1-31, 2015
|
—
|
—
|
—
|
$
|
30.0 million
|
|||||||||||
April 1-30, 2015
|
—
|
—
|
—
|
$
|
30.0 million
|
|||||||||||
May 1-31, 2015
|
—
|
—
|
—
|
$
|
30.0 million
|
|||||||||||
June 1-30, 2015
|
—
|
—
|
—
|
$
|
30.0 million
|
|||||||||||
July 1-31, 2015
|
—
|
—
|
—
|
$
|
30.0 million
|
|||||||||||
August 1-31, 2015
|
—
|
—
|
—
|
$
|
30.0 million
|
|||||||||||
September 1-30, 2015
|
141,773
|
$
|
13.01
|
141,773
|
$
|
28.2 million
|
||||||||||
October 1-31, 2015
|
121,946
|
$
|
13.14
|
121,946
|
$
|
26.6 million
|
||||||||||
November 1-30, 2015
|
157,610
|
$
|
13.11
|
157,610
|
$
|
100.0 million
|
(2)
|
|||||||||
December 1-31, 2015
|
5,376,344
|
$
|
13.95
|
5,376,344
|
$
|
25.0 million
|
(3)
|
(1) | In May 2014, our board of directors approved a $30.0 million share repurchase program, which it renewed in May 2015. In November 2015, our board of directors terminated this share repurchase program (the "May Share Repurchase Program"). |
(2) | Shares purchased prior to the termination of the May Share Repurchase Program. |
(3) | In November 2015, we announced that our board of directors approved the elimination of dividend payments on our shares and authorized a new $100.0 million share repurchase program, including a modified Dutch auction tender offer for up to $75.0 million of our shares and a $25.0 million share repurchase program commencing in January 2016. We repurchased 5,376,344 of our shares at the closing of our modified Dutch auction tender offer on December 22, 2015, at a price of $13.95 per share, or a total cost of approximately $75.0 million, excluding fees and related expenses. |
|
Page
|
Report of Independent Registered Public Accounting Firm
|
F-3
|
Report of Independent Registered Public Accounting Firm
|
F-4
|
Consolidated Balance Sheets of Fly Leasing Limited as of December 31, 2015 and 2014
|
F-5
|
Consolidated Statements of Income of Fly Leasing Limited for the years ended December 31, 2015, 2014 and 2013
|
F-6
|
Consolidated Statements of Comprehensive Income of Fly Leasing Limited for the years ended December 31, 2015, 2014 and 2013
|
F-7
|
Consolidated Statements of Shareholders' Equity of Fly Leasing Limited for the years ended December 31, 2013, 2014 and 2015
|
F-8
|
Consolidated Statements of Cash Flows of Fly Leasing Limited for the years ended December 31, 2015, 2014 and 2013
|
F-9
|
Notes to Consolidated Financial Statements
|
F-10
|
Schedule I — Condensed Financial Information of Parent
|
F-49
|
|
/s/ Ernst & Young LLP
|
December 31,
|
||||||||
|
2015
|
2014
|
||||||
As restated
|
||||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
275,998
|
$
|
337,560
|
||||
Restricted cash and cash equivalents
|
174,933
|
139,139
|
||||||
Rent receivables
|
124
|
4,887
|
||||||
Investment in unconsolidated subsidiary
|
7,170
|
4,002
|
||||||
Investment in direct finance lease, net
|
34,878
|
—
|
||||||
Flight equipment held for sale, net
|
237,262
|
—
|
||||||
Flight equipment held for operating lease, net
|
2,585,426
|
3,556,884
|
||||||
Maintenance rights, net
|
94,493
|
144,920
|
||||||
Fair value of derivative assets
|
241
|
2,067
|
||||||
Other assets, net
|
17,750
|
28,949
|
||||||
Total assets
|
$
|
3,428,275
|
$
|
4,218,408
|
||||
Liabilities
|
||||||||
Accounts payable and accrued liabilities
|
$
|
17,548
|
$
|
18,431
|
||||
Rentals received in advance
|
14,560
|
19,751
|
||||||
Payable to related parties
|
7,170
|
2,772
|
||||||
Security deposits
|
48,876
|
64,058
|
||||||
Maintenance payment liability
|
194,543
|
254,514
|
||||||
Unsecured borrowings, net
|
691,109
|
689,452
|
||||||
Secured borrowings, net
|
1,705,311
|
2,332,669
|
||||||
Deferred tax liability, net
|
20,741
|
15,306
|
||||||
Fair value of derivative liabilities
|
19,327
|
23,311
|
||||||
Other liabilities
|
52,126
|
41,890
|
||||||
Total liabilities
|
2,771,311
|
3,462,154
|
||||||
Shareholders' equity
|
||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 35,671,400 and 41,432,998 shares issued and outstanding at December 31, 2015 and 2014, respectively
|
36
|
41
|
||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding
|
—
|
—
|
||||||
Additional paid-in capital
|
577,290
|
658,522
|
||||||
Retained earnings
|
95,138
|
114,782
|
||||||
Accumulated other comprehensive loss, net
|
(15,500
|
)
|
(17,091
|
)
|
||||
Total shareholders' equity
|
656,964
|
756,254
|
||||||
Total liabilities and shareholders' equity
|
$
|
3,428,275
|
$
|
4,218,408
|
Years ended
|
||||||||||||
|
2015
|
2014
|
2013
|
|||||||||
Revenues
|
As restated
|
As restated
|
||||||||||
Operating lease revenue
|
$
|
429,691
|
$
|
406,563
|
$
|
351,792
|
||||||
Finance lease income
|
299
|
—
|
—
|
|||||||||
Equity earnings from unconsolidated subsidiary
|
1,159
|
3,562
|
1,491
|
|||||||||
Gain on sale of aircraft
|
28,959
|
14,761
|
5,421
|
|||||||||
Interest and other income
|
2,289
|
662
|
1,930
|
|||||||||
Total revenues
|
462,397
|
425,548
|
360,634
|
|||||||||
Expenses
|
||||||||||||
Depreciation
|
159,732
|
166,983
|
138,336
|
|||||||||
Aircraft impairment
|
66,093
|
1,200
|
6,166
|
|||||||||
Interest expense
|
145,448
|
142,519
|
120,399
|
|||||||||
Selling, general and administrative
|
33,674
|
41,033
|
39,593
|
|||||||||
Ineffective, dedesignated and terminated derivatives
|
4,134
|
72
|
(1,263
|
)
|
||||||||
Net (gain) loss on extinguishment of debt
|
17,491
|
(2,194
|
)
|
(15,147
|
)
|
|||||||
Maintenance and other costs
|
7,628
|
7,060
|
15,476
|
|||||||||
Total expenses
|
434,200
|
356,673
|
303,560
|
|||||||||
Net income before provision for income taxes
|
28,197
|
68,875
|
57,074
|
|||||||||
Provision for income taxes
|
5,399
|
8,691
|
3,134
|
|||||||||
Net income
|
$
|
22,798
|
$
|
60,184
|
$
|
53,940
|
||||||
Weighted average number of shares:
|
||||||||||||
Basic
|
41,222,690
|
41,405,211
|
34,129,880
|
|||||||||
Diluted
|
41,315,149
|
41,527,584
|
34,243,456
|
|||||||||
Earnings per share:
|
||||||||||||
Basic
|
$
|
0.52
|
$
|
1.42
|
$
|
1.55
|
||||||
Diluted
|
$
|
0.52
|
$
|
1.42
|
$
|
1.55
|
||||||
Dividends declared and paid per share
|
$
|
1.00
|
$
|
1.00
|
$
|
0.88
|
Years ended
|
||||||||||||
|
2015
|
2014
|
2013
|
|||||||||
As restated
|
As restated
|
|||||||||||
Net income
|
$
|
22,798
|
$
|
60,184
|
$
|
53,940
|
||||||
Other components of comprehensive income, net of tax:
Change in fair value of derivatives, net of deferred tax (1)
|
158
|
(3,238
|
)
|
22,093
|
||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax (2)
|
(130
|
)
|
—
|
(1,302
|
)
|
|||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax (3)
|
1,563
|
—
|
—
|
|||||||||
Comprehensive income
|
$
|
24,389
|
$
|
56,946
|
$
|
74,731
|
(1) | Deferred tax expense was $0.3 million for the year ended December 31, 2015. Deferred tax benefit was $0.6 million for the year ended December 31, 2014. Deferred tax expense was $3.5 million for the year ended December 31, 2013. |
(2) | Deferred tax benefit was $19,000 and $0.2 million for the years ended December 31, 2015 and 2013, respectively. |
(3) | Deferred tax expense was $0.2 million for the year ended December 31, 2015. |
|
Manager
Shares
|
Common Shares
|
Additional
Paid-in
Capital
|
Retained
Earnings
(Deficit)
|
Other
Comprehensive
Loss, net
|
Total
Shareholders'
Equity
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||||||||||||
Balance December 31, 2012 as previously reported
|
100
|
$
|
—
|
28,040,305
|
$
|
28
|
$
|
482,733
|
$
|
83,138
|
$
|
(33,897
|
)
|
$
|
532,002
|
|||||||||||||||||
Adjustment to ending balance
|
—
|
—
|
—
|
—
|
—
|
(8,191
|
)
|
—
|
(8,191
|
)
|
||||||||||||||||||||||
Balance December 31, 2012 as restated
|
100
|
-
|
28,040,305
|
28
|
482,733
|
74,947
|
(33,897
|
)
|
523,811
|
|||||||||||||||||||||||
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
(30,531
|
)
|
—
|
(30,531
|
)
|
||||||||||||||||||||||
Dividend equivalents
|
—
|
—
|
—
|
—
|
—
|
(940
|
)
|
—
|
(940
|
)
|
||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses
|
—
|
—
|
13,142,856
|
13
|
172,582
|
—
|
—
|
172,595
|
||||||||||||||||||||||||
Shares issued in connection with vested share grants
|
—
|
—
|
122,534
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Shares issued in connection with SARs exercised
|
—
|
—
|
643
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
3,177
|
—
|
—
|
3,177
|
||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset of $0.3 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(747
|
)
|
(747
|
)
|
||||||||||||||||||||||
Net income as restated
|
—
|
—
|
—
|
—
|
—
|
53,940
|
—
|
53,940
|
||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax liability of $3.5 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
22,093
|
22,093
|
||||||||||||||||||||||||
Reclassified from other comprehensive income into earnings, net of deferred tax asset of $0.2 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,302
|
)
|
(1,302
|
)
|
||||||||||||||||||||||
Balance December 31, 2013 as restated
|
100
|
$
|
—
|
41,306,338
|
$
|
41
|
$
|
658,492
|
$
|
97,416
|
$
|
(13,853
|
)
|
$
|
742,096
|
|||||||||||||||||
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
(41,392
|
)
|
—
|
(41,392
|
)
|
||||||||||||||||||||||
Dividend equivalents
|
—
|
—
|
—
|
—
|
—
|
(1,426
|
)
|
(1,426
|
)
|
|||||||||||||||||||||||
Shares issued in connection with vested share grants
|
—
|
—
|
119,666
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Shares issued in connection with SARs exercised
|
—
|
—
|
6,994
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
30
|
—
|
—
|
30
|
||||||||||||||||||||||||
Net income as restated
|
—
|
—
|
—
|
—
|
—
|
60,184
|
—
|
60,184
|
||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset of $0.6 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(3,238
|
)
|
(3,238
|
)
|
||||||||||||||||||||||
Balance December 31, 2014 as restated
|
100
|
$
|
—
|
41,432,998
|
$
|
41
|
$
|
658,522
|
$
|
114,782
|
$
|
(17,091
|
)
|
$
|
756,254
|
|||||||||||||||||
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
(41,388
|
)
|
—
|
(41,388
|
)
|
||||||||||||||||||||||
Dividend equivalents
|
—
|
—
|
—
|
—
|
—
|
(1,054
|
)
|
(1,054
|
)
|
|||||||||||||||||||||||
Shares issued in connection with vested share grants
|
—
|
—
|
36,075
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program
|
—
|
—
|
(421,329
|
)
|
—
|
(5,529
|
)
|
—
|
—
|
(5,529
|
)
|
|||||||||||||||||||||
Shares repurchased pursuant to tender offer
|
—
|
—
|
(5,376,344
|
)
|
(5
|
)
|
(75,898
|
)
|
—
|
—
|
(75,903
|
)
|
||||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
195
|
—
|
—
|
195
|
||||||||||||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
22,798
|
—
|
22,798
|
||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax liability of $0.3 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
158
|
158
|
||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax asset of $19,000 (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(130
|
)
|
(130
|
)
|
||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax liability of $0.2 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
1,563
|
1,563
|
||||||||||||||||||||||||
Balance December 31, 2015
|
100
|
$
|
—
|
35,671,400
|
$
|
36
|
$
|
577,290
|
$
|
95,138
|
$
|
(15,500
|
)
|
$
|
656,964
|
(1) | See Note 12 to Notes to Consolidated Financial Statements. |
Years ended
|
||||||||||||
|
2015
|
2014
|
2013
|
|||||||||
As restated
|
As restated
|
|||||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net Income
|
$
|
22,798
|
$
|
60,184
|
$
|
53,940
|
||||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||||||
Equity earnings from unconsolidated subsidiary
|
(1,159
|
)
|
(3,562
|
)
|
(1,491
|
)
|
||||||
Direct finance lease income
|
(299
|
)
|
—
|
—
|
||||||||
Gain on sale of aircraft
|
(28,959
|
)
|
(14,761
|
)
|
(5,421
|
)
|
||||||
Depreciation
|
159,732
|
166,983
|
138,336
|
|||||||||
Aircraft impairment
|
66,093
|
1,200
|
6,166
|
|||||||||
Amortization of debt discounts and debt issuance costs
|
11,922
|
12,516
|
11,680
|
|||||||||
Amortization of lease incentives
|
20,527
|
18,934
|
9,019
|
|||||||||
Amortization of lease discounts/premiums and other items
|
2,046
|
2,841
|
2,228
|
|||||||||
Amortization of GAAM acquisition date fair value adjustments
|
3,650
|
6,260
|
12,602
|
|||||||||
Net loss (gain) on debt modification and extinguishment
|
13,868
|
(2,247
|
)
|
(15,881
|
)
|
|||||||
Share-based compensation
|
195
|
30
|
3,177
|
|||||||||
Unrealized foreign exchange gain
|
(1,247
|
)
|
—
|
—
|
||||||||
Provision for deferred income taxes
|
4,919
|
5,733
|
4,534
|
|||||||||
Unrealized loss (gain) on derivative instruments
|
4,134
|
38
|
(1,263
|
)
|
||||||||
Security deposits and maintenance payment liability recognized into earnings
|
(48,658
|
)
|
(32,271
|
)
|
(23,298
|
)
|
||||||
Security deposits and maintenance payment claims applied towards operating lease revenues
|
—
|
—
|
(2,596
|
)
|
||||||||
Distributions from unconsolidated subsidiary
|
—
|
5,501
|
—
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Rent receivables
|
6,814
|
(4,767
|
)
|
(4,982
|
)
|
|||||||
Other assets
|
137
|
(1,589
|
)
|
(1,969
|
)
|
|||||||
Payable to related parties
|
(19,407
|
)
|
(12,848
|
)
|
(7,613
|
)
|
||||||
Accounts payable, accrued liabilities and other liabilities
|
(2,183
|
)
|
18,990
|
4,306
|
||||||||
Net cash flows provided by operating activities
|
214,923
|
227,165
|
181,474
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Distributions from (investment in) unconsolidated subsidiary
|
(2,009
|
)
|
1,132
|
—
|
||||||||
Rent received from direct finance lease
|
424
|
—
|
—
|
|||||||||
Investment in direct finance lease
|
(33,596
|
)
|
—
|
—
|
||||||||
Purchase of flight equipment
|
(567,523
|
)
|
(915,450
|
)
|
(632,944
|
)
|
||||||
Proceeds from sale of aircraft, net
|
1,110,046
|
88,617
|
48,539
|
|||||||||
Payments for aircraft improvement
|
(8,196
|
)
|
(9,841
|
)
|
—
|
|||||||
Payments for maintenance
|
(18,609
|
)
|
(5,017
|
)
|
(24,185
|
)
|
||||||
Net cash flows provided by (used in) investing activities
|
480,537
|
(840,559
|
)
|
(608,590
|
)
|
|||||||
Cash Flows from Financing Activities
|
||||||||||||
Restricted cash and cash equivalents
|
(35,794
|
)
|
35,690
|
(39,731
|
)
|
|||||||
Security deposits received
|
13,914
|
18,134
|
13,910
|
|||||||||
Security deposits returned
|
(7,788
|
)
|
(4,728
|
)
|
(7,271
|
)
|
||||||
Maintenance payment liability receipts
|
84,491
|
85,172
|
56,968
|
|||||||||
Maintenance payment liability disbursements
|
(38,768
|
)
|
(45,412
|
)
|
(16,612
|
)
|
||||||
Net swap termination payments
|
(3,737
|
)
|
—
|
—
|
||||||||
Debt extinguishment costs
|
—
|
—
|
(3,856
|
)
|
||||||||
Debt issuance costs
|
(933
|
)
|
(1,803
|
)
|
(11,825
|
)
|
||||||
Proceeds from unsecured borrowings
|
—
|
396,563
|
291,389
|
|||||||||
Proceeds from secured borrowings
|
147,276
|
298,658
|
688,975
|
|||||||||
Repayment of secured borrowings
|
(791,385
|
)
|
(192,974
|
)
|
(444,607
|
)
|
||||||
Proceeds from issuance of shares, net of fees paid
|
—
|
—
|
172,595
|
|||||||||
Shares repurchased
|
(81,432
|
)
|
—
|
—
|
||||||||
Dividends paid
|
(41,388
|
)
|
(41,392
|
)
|
(30,531
|
)
|
||||||
Dividend equivalents
|
(1,054
|
)
|
(1,426
|
)
|
(940
|
)
|
||||||
Net cash flows (used in) provided by financing activities
|
(756,598
|
)
|
546,482
|
668,464
|
||||||||
Effect of exchange rate changes on cash and cash equivalents
|
(424
|
)
|
—
|
—
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
(61,562
|
)
|
(66,912
|
)
|
241,348
|
|||||||
Cash and cash equivalents at beginning of year
|
337,560
|
404,472
|
163,124
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
275,998
|
$
|
337,560
|
$
|
404,472
|
||||||
Supplemental Disclosure:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
132,780
|
$
|
119,745
|
$
|
97,481
|
||||||
Taxes
|
384
|
188
|
84
|
|||||||||
Noncash Activities:
|
||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance
|
3,292
|
1,938
|
1,414
|
|||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance
|
2,523
|
—
|
4,446
|
|||||||||
Other liabilities applied to maintenance payment liability and rent receivables
|
240
|
979
|
—
|
|||||||||
Noncash investing activities:
|
||||||||||||
Aircraft improvement
|
1,587
|
2,882
|
2,334
|
|||||||||
Noncash activities in connection with purchase of aircraft
|
19,382
|
26,002
|
1,774
|
|||||||||
Noncash activities in connection with sale of aircraft
|
93,819
|
12,479
|
43,500
|
1. | ORGANIZATION |
2.
|
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS
|
Retained earnings at January 1, 2013 – As previously reported
|
$
|
83,138
|
||
Adjustments
|
(8,191
|
)
|
||
Retained earnings at January 1, 2013 – As restated
|
$
|
74,947
|
For the Years Ended December 31,
|
||||||||
2014
|
2013
|
|||||||
Net income – As previously reported
|
$
|
56,077
|
$
|
52,476
|
||||
Adjustments
|
4,107
|
1,464
|
||||||
Net income – As restated
|
$
|
60,184
|
$
|
53,940
|
December 31, 2014
|
||||||||||||||||
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
337,560
|
$
|
—
|
$
|
—
|
$
|
337,560
|
||||||||
Restricted cash and cash equivalents
|
139,139
|
—
|
—
|
139,139
|
||||||||||||
Rent receivables
|
4,887
|
—
|
—
|
4,887
|
||||||||||||
Investment in unconsolidated subsidiary
|
4,002
|
—
|
—
|
4,002
|
||||||||||||
Investment in direct finance lease, net
|
—
|
—
|
—
|
—
|
||||||||||||
Flight equipment held for sale, net
|
—
|
—
|
—
|
—
|
||||||||||||
Flight equipment held for operating lease, net
|
3,705,407
|
(143,336
|
)
|
(5,187
|
)
|
3,556,884
|
||||||||||
Maintenance rights, net
|
—
|
144,920
|
—
|
144,920
|
||||||||||||
Fair value of derivative assets
|
2,067
|
—
|
—
|
2,067
|
||||||||||||
Other assets, net
|
31,608
|
—
|
(2,659
|
)
|
28,949
|
|||||||||||
Total assets
|
$
|
4,224,670
|
$
|
1,584
|
$
|
(7,846
|
)
|
$
|
4,218,408
|
|||||||
Liabilities
|
||||||||||||||||
Accounts payable and accrued liabilities
|
$
|
18,431
|
$
|
—
|
$
|
—
|
$
|
18,431
|
||||||||
Rentals received in advance
|
19,751
|
—
|
—
|
19,751
|
||||||||||||
Payable to related parties
|
2,772
|
—
|
—
|
2,772
|
||||||||||||
Security deposits
|
64,058
|
—
|
—
|
64,058
|
||||||||||||
Maintenance payment liability
|
254,514
|
—
|
—
|
254,514
|
||||||||||||
Unsecured borrowings, net
|
689,452
|
—
|
—
|
689,452
|
||||||||||||
Secured borrowings, net
|
2,335,328
|
—
|
(2,659
|
)
|
2,332,669
|
|||||||||||
Deferred tax liability, net
|
16,289
|
294
|
(1,277
|
)
|
15,306
|
|||||||||||
Fair value of derivative liabilities
|
23,311
|
—
|
—
|
23,311
|
||||||||||||
Other liabilities
|
41,890
|
—
|
—
|
41,890
|
||||||||||||
Total liabilities
|
3,465,796
|
294
|
(3,936
|
)
|
3,462,154
|
|||||||||||
Shareholders' equity
|
||||||||||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 41,432,998 shares issued and outstanding at December 31, 2014
|
41
|
—
|
—
|
41
|
||||||||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding
|
—
|
—
|
—
|
—
|
||||||||||||
Additional paid-in capital
|
658,522
|
—
|
—
|
658,522
|
||||||||||||
Retained earnings
|
117,402
|
1,290
|
(3,910
|
)
|
114,782
|
|||||||||||
Accumulated other comprehensive loss, net
|
(17,091
|
)
|
—
|
—
|
(17,091
|
)
|
||||||||||
Total shareholders' equity
|
758,874
|
1,290
|
(3,910
|
)
|
756,254
|
|||||||||||
Total liabilities and shareholders' equity
|
$
|
4,224,670
|
$
|
1,584
|
$
|
(7,846
|
)
|
$
|
4,218,408
|
Year Ended December 31, 2014
|
||||||||||||||||
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Revenues
|
||||||||||||||||
Operating lease revenue
|
$
|
404,668
|
$
|
1,895
|
$
|
—
|
$
|
406,563
|
||||||||
Finance lease income
|
—
|
—
|
—
|
—
|
||||||||||||
Equity earnings from unconsolidated subsidiary
|
2,456
|
—
|
1,106
|
3,562
|
||||||||||||
Gain on sale of aircraft
|
18,878
|
(4,564
|
)
|
447
|
14,761
|
|||||||||||
Interest and other income
|
662
|
—
|
—
|
662
|
||||||||||||
Total revenues
|
426,664
|
(2,669
|
)
|
1,553
|
425,548
|
|||||||||||
Expenses
|
||||||||||||||||
Depreciation
|
175,547
|
(8,290
|
)
|
(274
|
)
|
166,983
|
||||||||||
Aircraft impairment
|
—
|
—
|
1,200
|
1,200
|
||||||||||||
Interest expense
|
142,519
|
—
|
—
|
142,519
|
||||||||||||
Selling, general and administrative
|
41,148
|
—
|
(115
|
)
|
41,033
|
|||||||||||
Ineffective, dedesignated and terminated derivatives
|
72
|
—
|
—
|
72
|
||||||||||||
Net (gain) loss on extinguishment of debt
|
(3,922
|
)
|
1,713
|
15
|
(2,194
|
)
|
||||||||||
Maintenance and other costs
|
6,960
|
—
|
100
|
7,060
|
||||||||||||
Total expenses
|
362,324
|
(6,577
|
)
|
926
|
356,673
|
|||||||||||
Net income before provision for income taxes
|
64,340
|
3,908
|
627
|
68,875
|
||||||||||||
Provision for income taxes
|
8,263
|
751
|
(323
|
)
|
8,691
|
|||||||||||
Net income
|
$
|
56,077
|
$
|
3,157
|
$
|
950
|
$
|
60,184
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.32
|
$
|
1.42
|
||||||||||||
Diluted
|
$
|
1.32
|
$
|
1.42
|
Year Ended December 31, 2013
|
||||||||||||||||
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Revenues
|
||||||||||||||||
Operating lease revenue
|
$
|
359,409
|
$
|
(8,062
|
)
|
445
|
$
|
351,792
|
||||||||
Finance lease income
|
—
|
—
|
—
|
—
|
||||||||||||
Equity earnings from unconsolidated subsidiary
|
1,871
|
—
|
(380
|
)
|
1,491
|
|||||||||||
Gain on sale of aircraft
|
6,277
|
(856
|
)
|
—
|
5,421
|
|||||||||||
Interest and other income
|
1,930
|
—
|
—
|
1,930
|
||||||||||||
Total revenues
|
369,487
|
(8,918
|
)
|
65
|
360,634
|
|||||||||||
Expenses
|
||||||||||||||||
Depreciation
|
146,400
|
(7,854
|
)
|
(210
|
)
|
138,336
|
||||||||||
Aircraft impairment
|
8,825
|
(2,659
|
)
|
—
|
6,166
|
|||||||||||
Interest expense
|
120,399
|
—
|
—
|
120,399
|
||||||||||||
Selling, general and administrative
|
37,418
|
—
|
2,175
|
39,593
|
||||||||||||
Ineffective, dedesignated and terminated derivatives
|
(1,263
|
)
|
—
|
—
|
(1,263
|
)
|
||||||||||
Net gain on extinguishment of debt
|
(15,881
|
)
|
—
|
734
|
(15,147
|
)
|
||||||||||
Maintenance and other costs
|
15,454
|
—
|
22
|
15,476
|
||||||||||||
Total expenses
|
311,352
|
(10,513
|
)
|
2,721
|
303,560
|
|||||||||||
Net income before provision for income taxes
|
58,135
|
1,595
|
(2,656
|
)
|
57,074
|
|||||||||||
Provision for income taxes
|
5,659
|
118
|
|
(2,643
|
)
|
3,134
|
||||||||||
Net income
|
$
|
52,476
|
$
|
1,477
|
(13
|
)
|
$
|
53,940
|
||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.51
|
$
|
1.55
|
||||||||||||
Diluted
|
$
|
1.50
|
$
|
1.55
|
|
Manager
Shares
|
Common Shares
|
Additional
Paid-in
Capital
|
Retained
Earnings
(Deficit)
|
Other
Comprehensive
Loss, net
|
Total
Shareholders'
Equity
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
Shares
|
Amount
|
||||||||||||||||||||||||||||
Balance December 31, 2012 as previously reported
|
100
|
$
|
—
|
28,040,305
|
$
|
28
|
$
|
482,733
|
$
|
83,138
|
$
|
(33,897
|
)
|
$
|
532,002
|
|||||||||||||||||
Adjustment to ending balance
|
—
|
—
|
—
|
—
|
—
|
(8,191
|
)
|
—
|
(8,191
|
)
|
||||||||||||||||||||||
Balance December 31, 2012 as restated
|
100
|
—
|
28,040,305
|
28
|
482,733
|
74,947
|
(33,897
|
)
|
523,811
|
|||||||||||||||||||||||
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
(30,531
|
)
|
—
|
(30,531
|
)
|
||||||||||||||||||||||
Dividend equivalents
|
—
|
—
|
—
|
—
|
—
|
(940
|
)
|
—
|
(940
|
)
|
||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses
|
—
|
—
|
13,142,856
|
13
|
172,582
|
—
|
—
|
172,595
|
||||||||||||||||||||||||
Shares issued in connection with vested share grants
|
—
|
—
|
122,534
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Shares issued in connection with SARs exercised
|
—
|
—
|
643
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
3,177
|
—
|
—
|
3,177
|
||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset of $0.3 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(747
|
)
|
(747
|
)
|
||||||||||||||||||||||
Net income as restated
|
—
|
—
|
—
|
—
|
—
|
53,940
|
—
|
53,940
|
||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax liability of $3.5 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
22,093
|
22,093
|
||||||||||||||||||||||||
Reclassified from other comprehensive income into earnings, net of deferred tax asset of $0.2 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(1,302
|
)
|
(1,302
|
)
|
||||||||||||||||||||||
Balance December 31, 2013 as restated
|
100
|
$
|
—
|
41,306,338
|
$
|
41
|
$
|
658,492
|
$
|
97,416
|
$
|
(13,853
|
)
|
$
|
742,096
|
|||||||||||||||||
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
(41,392
|
)
|
—
|
(41,392
|
)
|
||||||||||||||||||||||
Dividend equivalents
|
—
|
—
|
—
|
—
|
—
|
(1,426
|
)
|
(1,426
|
)
|
|||||||||||||||||||||||
Shares issued in connection with vested share grants
|
—
|
—
|
119,666
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Shares issued in connection with SARs exercised
|
—
|
—
|
6,994
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
30
|
—
|
—
|
30
|
||||||||||||||||||||||||
Net income as restated
|
—
|
—
|
—
|
—
|
—
|
60,184
|
—
|
60,184
|
||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset of $0.6 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(3,238
|
)
|
(3,238
|
)
|
||||||||||||||||||||||
Balance December 31, 2014 as restated
|
100
|
$
|
—
|
41,432,998
|
$
|
41
|
$
|
658,522
|
$
|
114,782
|
$
|
(17,091
|
)
|
$
|
756,254
|
|||||||||||||||||
Dividends to shareholders
|
—
|
—
|
—
|
—
|
—
|
(41,388
|
)
|
—
|
(41,388
|
)
|
||||||||||||||||||||||
Dividend equivalents
|
—
|
—
|
—
|
—
|
—
|
(1,054
|
)
|
(1,054
|
)
|
|||||||||||||||||||||||
Shares issued in connection with vested share grants
|
—
|
—
|
36,075
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program
|
—
|
—
|
(421,329
|
)
|
—
|
(5,529
|
)
|
—
|
—
|
(5,529
|
)
|
|||||||||||||||||||||
Shares repurchased pursuant to tender offer
|
—
|
—
|
(5,376,344
|
)
|
(5
|
)
|
(75,898
|
)
|
—
|
—
|
(75,903
|
)
|
||||||||||||||||||||
Share-based compensation
|
—
|
—
|
—
|
—
|
195
|
—
|
—
|
195
|
||||||||||||||||||||||||
Net income
|
—
|
—
|
—
|
—
|
—
|
22,798
|
—
|
22,798
|
||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax liability of $0.3 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
158
|
158
|
||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to termination of derivative liabilities, net of deferred tax asset of $19,000 (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
(130
|
)
|
(130
|
)
|
||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax liability of $0.2 million (1)
|
—
|
—
|
—
|
—
|
—
|
—
|
1,563
|
1,563
|
||||||||||||||||||||||||
Balance December 31, 2015
|
100
|
$
|
—
|
35,671,400
|
$
|
36
|
$
|
577,290
|
$
|
95,138
|
$
|
(15,500
|
)
|
$
|
656,964
|
(1) | See Note 12 to Notes to Consolidated Financial Statements. |
Year Ended December 31, 2014
|
||||||||||||
|
As previously reported
|
Adjustments
|
As restated
|
|||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net Income
|
$
|
56,077
|
$
|
4,107
|
$
|
60,184
|
||||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||||||
Equity earnings from unconsolidated subsidiary
|
(2,456
|
)
|
(1,106
|
)
|
(3,562
|
)
|
||||||
Direct finance lease income
|
—
|
—
|
—
|
|||||||||
Gain on sale of aircraft
|
(18,878
|
)
|
4,117
|
(14,761
|
)
|
|||||||
Depreciation
|
175,547
|
(8,564
|
)
|
166,983
|
||||||||
Aircraft impairment
|
—
|
1,200
|
1,200
|
|||||||||
Amortization of debt discounts and debt issuance costs
|
5,380
|
7,136
|
12,516
|
|||||||||
Amortization of lease incentives
|
18,934
|
—
|
18,934
|
|||||||||
Amortization of lease discounts/premiums and other items
|
9,977
|
(7,136
|
)
|
2,841
|
||||||||
Amortization of GAAM acquisition date fair value adjustments
|
6,260
|
—
|
6,260
|
|||||||||
Net loss (gain) on debt modification and extinguishment
|
(3,960
|
)
|
1,713
|
(2,247
|
)
|
|||||||
Share-based compensation
|
30
|
—
|
30
|
|||||||||
Unrealized foreign exchange gain
|
—
|
—
|
—
|
|||||||||
Provision for deferred income taxes
|
6,169
|
(436
|
)
|
5,733
|
||||||||
Unrealized loss on derivative instruments
|
38
|
—
|
38
|
|||||||||
Security deposits and maintenance payment liability recognized into earnings
|
(30,376
|
)
|
(1,895
|
)
|
(32,271
|
)
|
||||||
Security deposits and maintenance payment claims applied towards operating lease revenues
|
—
|
—
|
—
|
|||||||||
Distributions from unconsolidated subsidiary
|
5,501
|
—
|
5,501
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Rent receivables
|
(4,767
|
)
|
—
|
(4,767
|
)
|
|||||||
Other assets
|
(1,589
|
)
|
—
|
(1,589
|
)
|
|||||||
Payable to related parties
|
(12,848
|
)
|
—
|
(12,848
|
)
|
|||||||
Accounts payable, accrued liabilities and other liabilities
|
18,126
|
864
|
18,990
|
|||||||||
Net cash flows provided by operating activities
|
227,165
|
—
|
227,165
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Distributions from (investment in) unconsolidated subsidiary
|
1,132
|
—
|
1,132
|
|||||||||
Rent received from direct finance lease
|
—
|
—
|
—
|
|||||||||
Investment in direct finance lease
|
—
|
—
|
—
|
|||||||||
Purchase of flight equipment
|
(915,450
|
)
|
—
|
(915,450
|
)
|
|||||||
Proceeds from sale of aircraft, net
|
88,617
|
—
|
88,617
|
|||||||||
Payments for aircraft improvement
|
(9,841
|
)
|
—
|
(9,841
|
)
|
|||||||
Payments for maintenance
|
(5,017
|
)
|
—
|
(5,017
|
)
|
|||||||
Net cash flows used in investing activities
|
(840,559
|
)
|
—
|
(840,559
|
)
|
|||||||
Cash Flows from Financing Activities
|
||||||||||||
Restricted cash and cash equivalents
|
35,690
|
—
|
35,690
|
|||||||||
Security deposits received
|
18,134
|
—
|
18,134
|
|||||||||
Security deposits returned
|
(4,728
|
)
|
—
|
(4,728
|
)
|
|||||||
Maintenance payment liability receipts
|
85,172
|
—
|
85,172
|
|||||||||
Maintenance payment liability disbursements
|
(45,412
|
)
|
—
|
(45,412
|
)
|
|||||||
Net swap termination payments
|
—
|
—
|
—
|
|||||||||
Debt extinguishment costs
|
—
|
—
|
—
|
|||||||||
Debt issuance costs
|
(1,803
|
)
|
—
|
(1,803
|
)
|
|||||||
Proceeds from unsecured borrowings
|
396,563
|
—
|
396,563
|
|||||||||
Proceeds from secured borrowings
|
298,658
|
—
|
298,658
|
|||||||||
Repayment of secured borrowings
|
(192,974
|
)
|
—
|
(192,974
|
)
|
|||||||
Proceeds from issuance of shares, net of fees paid
|
—
|
—
|
—
|
|||||||||
Shares repurchased
|
—
|
—
|
—
|
|||||||||
Dividends paid
|
(41,392
|
)
|
—
|
(41,392
|
)
|
|||||||
Dividend equivalents
|
(1,426
|
)
|
—
|
(1,426
|
)
|
|||||||
Net cash flows provided by financing activities
|
546,482
|
—
|
546,482
|
|||||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
—
|
—
|
|||||||||
Net decrease in cash and cash equivalents
|
(66,912
|
)
|
—
|
(66,912
|
)
|
|||||||
Cash and cash equivalents at beginning of year
|
404,472
|
—
|
404,472
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
337,560
|
$
|
—
|
$
|
337,560
|
||||||
Supplemental Disclosure:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
119,745
|
$
|
—
|
$
|
119,745
|
||||||
Taxes
|
188
|
—
|
188
|
|||||||||
Noncash Activities:
|
||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance
|
1,938
|
—
|
1,938
|
|||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance
|
—
|
—
|
—
|
|||||||||
Other liabilities applied to maintenance payment liability and rent receivables
|
979
|
—
|
979
|
|||||||||
Noncash investing activities:
|
||||||||||||
Aircraft improvement
|
2,882
|
—
|
2,882
|
|||||||||
Noncash activities in connection with purchase of aircraft
|
26,002
|
—
|
26,002
|
|||||||||
Noncash activities in connection with sale of aircraft
|
12,479
|
—
|
12,479
|
Year Ended December 31, 2013
|
||||||||||||
|
As previously reported
|
Adjustments
|
As restated
|
|||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net Income
|
$
|
52,476
|
$
|
1,464
|
$
|
53,940
|
||||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||||||
Equity earnings from unconsolidated subsidiary
|
(1,871
|
)
|
380
|
(1,491
|
)
|
|||||||
Direct finance lease income
|
—
|
—
|
—
|
|||||||||
Gain on sale of aircraft
|
(6,277
|
)
|
856
|
(5,421
|
)
|
|||||||
Depreciation
|
146,400
|
(8,064
|
)
|
138,336
|
||||||||
Aircraft impairment
|
8,825
|
(2,659
|
)
|
6,166
|
||||||||
Amortization of debt discounts and debt issuance costs
|
5,735
|
5,945
|
11,680
|
|||||||||
Amortization of lease incentives
|
9,019
|
—
|
9,019
|
|||||||||
Amortization of lease discounts/premiums and other items
|
8,173
|
(5,945
|
)
|
2,228
|
||||||||
Amortization of GAAM acquisition date fair value adjustments
|
12,602
|
—
|
12,602
|
|||||||||
Net gain on debt modification and extinguishment
|
(15,881
|
)
|
—
|
(15,881
|
)
|
|||||||
Share-based compensation
|
3,177
|
—
|
3,177
|
|||||||||
Unrealized foreign exchange gain
|
—
|
—
|
—
|
|||||||||
Provision for deferred income taxes
|
6,195
|
(1,661
|
)
|
4,534
|
||||||||
Unrealized gain on derivative instruments
|
(1,263
|
)
|
—
|
(1,263
|
)
|
|||||||
Security deposits and maintenance payment liability recognized into earnings
|
(31,360
|
)
|
8,062
|
(23,298
|
)
|
|||||||
Security deposits and maintenance payment claims applied towards operating lease revenues
|
(2,596
|
)
|
—
|
(2,596
|
)
|
|||||||
Distributions from unconsolidated subsidiary
|
—
|
—
|
—
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Rent receivables
|
(4,982
|
)
|
—
|
(4,982
|
)
|
|||||||
Other assets
|
(1,969
|
)
|
—
|
(1,969
|
)
|
|||||||
Payable to related parties
|
(10,544
|
)
|
2,931
|
(7,613
|
)
|
|||||||
Accounts payable, accrued liabilities and other liabilities
|
5,615
|
(1,309
|
)
|
4,306
|
||||||||
Net cash flows provided by operating activities
|
181,474
|
—
|
181,474
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Distributions from (investment in) unconsolidated subsidiary
|
—
|
—
|
—
|
|||||||||
Rent received from direct finance lease
|
—
|
—
|
—
|
|||||||||
Investment in direct finance lease
|
—
|
—
|
—
|
|||||||||
Purchase of flight equipment
|
(632,944
|
)
|
—
|
(632,944
|
)
|
|||||||
Proceeds from sale of aircraft, net
|
48,539
|
—
|
48,539
|
|||||||||
Payments for aircraft improvement
|
—
|
—
|
—
|
|||||||||
Payments for maintenance
|
(24,185
|
)
|
—
|
(24,185
|
)
|
|||||||
Net cash flows used in investing activities
|
(608,590
|
)
|
—
|
(608,590
|
)
|
|||||||
Cash Flows from Financing Activities
|
||||||||||||
Restricted cash and cash equivalents
|
(39,731
|
)
|
—
|
(39,731
|
)
|
|||||||
Security deposits received
|
13,910
|
—
|
13,910
|
|||||||||
Security deposits returned
|
(7,271
|
)
|
—
|
(7,271
|
)
|
|||||||
Maintenance payment liability receipts
|
56,968
|
—
|
56,968
|
|||||||||
Maintenance payment liability disbursements
|
(16,612
|
)
|
—
|
(16,612
|
)
|
|||||||
Net swap termination payments
|
—
|
—
|
—
|
|||||||||
Debt extinguishment costs
|
(3,856
|
)
|
—
|
(3,856
|
)
|
|||||||
Debt issuance costs
|
(11,825
|
)
|
—
|
(11,825
|
)
|
|||||||
Proceeds from unsecured borrowings
|
291,389
|
—
|
291,389
|
|||||||||
Proceeds from secured borrowings
|
688,975
|
—
|
688,975
|
|||||||||
Repayment of secured borrowings
|
(444,607
|
)
|
—
|
(444,607
|
)
|
|||||||
Proceeds from issuance of shares, net of fees paid
|
172,595
|
—
|
172,595
|
|||||||||
Shares repurchased
|
—
|
—
|
—
|
|||||||||
Dividends paid
|
(30,531
|
)
|
—
|
(30,531
|
)
|
|||||||
Dividend equivalents
|
(940
|
)
|
—
|
(940
|
)
|
|||||||
Net cash flows provided by financing activities
|
668,464
|
—
|
668,464
|
|||||||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
—
|
—
|
|||||||||
Net increase in cash and cash equivalents
|
241,348
|
—
|
241,348
|
|||||||||
Cash and cash equivalents at beginning of year
|
163,124
|
—
|
163,124
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
404,472
|
$
|
—
|
$
|
404,472
|
||||||
Supplemental Disclosure:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
97,481
|
$
|
—
|
$
|
97,481
|
||||||
Taxes
|
84
|
—
|
84
|
|||||||||
Noncash Activities:
|
||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance
|
1,414
|
—
|
1,414
|
|||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance
|
4,446
|
—
|
4,446
|
|||||||||
Other liabilities applied to maintenance payment liability and rent receivables
|
—
|
—
|
—
|
|||||||||
Noncash investing activities:
|
||||||||||||
Aircraft improvement
|
2,334
|
—
|
2,334
|
|||||||||
Noncash activities in connection with purchase of aircraft
|
1,774
|
—
|
1,774
|
|||||||||
Noncash activities in connection with sale of aircraft
|
43,500
|
—
|
43,500
|
● | The success of the Company is dependent on the performance of the commercial aviation industry. A downturn in the industry could adversely impact the lessee's ability to make payments, increase the risk of unscheduled lease terminations and depress lease rates and the value of the Company's aircraft. |
● | The Company will require access to the debt and equity markets to refinance its outstanding indebtedness and to grow its business through the acquisition of additional aircraft. |
● | The Company relies and is dependent upon an external servicer to manage its business and service its aircraft portfolio. |
● | Flight equipment where original manufacturer's prices are not relevant due to plane modifications and conversions. |
● | Flight equipment that is out of production and may have a shorter useful life or lower residual value due to obsolescence. |
● | The remaining life of a converted freighter is determined based on the date of conversion, in which case, the total useful life may extend beyond 25 years from the date of manufacture. |
● | Dispositions of flight equipment prior to the end of its estimated useful life at a residual value different from that used for newly acquired aircraft. |
● | Operating lease revenue. The Company receives lease revenues from flight equipment under operating leases. Rental income from aircraft is recognized on a straight-line basis over the initial term of the respective lease. The operating lease agreements generally do not provide for purchase options, however, the leases may allow the lessee to exercise an option to extend the lease for an additional term. Contingent rents are recognized as revenue when the contingency is resolved. Revenue is not recognized when collection is not reasonably assured. |
● | Finance lease income. Revenue from direct finance lease is recognized using the interest method to produce a level yield over the life of the finance lease. |
4. | INVESTMENT IN DIRECT FINANCE LEASE |
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
Total minimum lease payments receivable
|
$
|
45,901
|
$
|
—
|
||||
Estimated unguaranteed residual value of leased asset
|
15,000
|
—
|
||||||
Unearned finance income
|
(26,023
|
)
|
—
|
|||||
Net Investment in Direct Finance Lease
|
$
|
34,878
|
$
|
—
|
Year ending December 31,
|
(Dollars in thousands)
|
|||
2016
|
$
|
4,920
|
||
2017
|
4,920
|
|||
2018
|
4,920
|
|||
2019
|
4,920
|
|||
2020
|
4,810
|
|||
Thereafter
|
21,411
|
|||
Future minimum rental payments under finance lease
|
$
|
45,901
|
5. | FLIGHT EQUIPMENT HELD FOR SALE |
6. | FLIGHT EQUIPMENT HELD FOR OPERATING LEASE |
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
As restated
|
||||||||
Cost
|
$
|
3,059,974
|
$
|
4,257,114
|
||||
Accumulated depreciation
|
(474,548
|
)
|
(700,230
|
)
|
||||
Flight equipment held for operating lease, net
|
$
|
2,585,426
|
$
|
3,556,884
|
|
December 31, 2015
|
December 31, 2014
|
||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
As restated
|
As restated
|
|||||||||||||||
Europe:
|
||||||||||||||||
United Kingdom
|
$
|
244,179
|
9
|
%
|
$
|
375,178
|
10
|
%
|
||||||||
Turkey
|
171,861
|
7
|
%
|
270,037
|
8
|
%
|
||||||||||
Other
|
359,929
|
14
|
%
|
610,626
|
17
|
%
|
||||||||||
Europe — Total
|
775,969
|
30
|
%
|
1,255,841
|
35
|
%
|
||||||||||
Asia and South Pacific:
|
||||||||||||||||
Philippines
|
289,558
|
11
|
%
|
450,090
|
13
|
%
|
||||||||||
China
|
221,576
|
9
|
%
|
287,374
|
8
|
%
|
||||||||||
India
|
208,009
|
8
|
%
|
148,283
|
4
|
%
|
||||||||||
Other
|
224,015
|
8
|
%
|
446,489
|
13
|
%
|
||||||||||
Asia and South Pacific — Total
|
943,158
|
36
|
%
|
1,332,236
|
38
|
%
|
||||||||||
Mexico, South and Central America:
|
||||||||||||||||
Chile
|
89,406
|
4
|
%
|
247,165
|
7
|
%
|
||||||||||
Other
|
87,561
|
3
|
%
|
165,858
|
5
|
%
|
||||||||||
Mexico, South and Central America — Total
|
176,967
|
7
|
%
|
413,023
|
12
|
%
|
||||||||||
North America:
|
||||||||||||||||
United States
|
218,363
|
9
|
%
|
300,401
|
8
|
%
|
||||||||||
Other
|
57,906
|
2
|
%
|
60,780
|
2
|
%
|
||||||||||
North America — Total
|
276,269
|
11
|
%
|
361,181
|
10
|
%
|
||||||||||
Middle East and Africa:
|
||||||||||||||||
Ethiopia
|
342,736
|
13
|
%
|
25,471
|
1
|
%
|
||||||||||
Other
|
51,056
|
2
|
%
|
84,516
|
2
|
%
|
||||||||||
Middle East and Africa — Total
|
393,792
|
15
|
%
|
109,987
|
3
|
%
|
||||||||||
Off-Lease — Total
|
19,271
|
1
|
%
|
84,616
|
2
|
%
|
||||||||||
Total flight equipment held for operating lease, net
|
$
|
2,585,426
|
100
|
%
|
$
|
3,556,884
|
100
|
%
|
|
Year Ended December 31, 2015
|
Year Ended December 31, 2014
|
Year Ended December 31, 2013
|
|||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||
As restated
|
As restated
|
As restated
|
As restated
|
|||||||||||||||||||||
Europe:
|
||||||||||||||||||||||||
United Kingdom
|
$
|
50,742
|
12
|
%
|
$
|
46,281
|
11
|
%
|
$
|
48,668
|
14
|
%
|
||||||||||||
Turkey
|
29,847
|
7
|
%
|
27,069
|
7
|
%
|
13,702
|
4
|
%
|
|||||||||||||||
Russia
|
24,095
|
6
|
%
|
9,017
|
2
|
%
|
10,288
|
3
|
%
|
|||||||||||||||
Other
|
73,872
|
17
|
%
|
73,660
|
19
|
%
|
79,359
|
22
|
%
|
|||||||||||||||
Europe — Total
|
178,556
|
42
|
%
|
156,027
|
39
|
%
|
152,017
|
43
|
%
|
|||||||||||||||
Asia and South Pacific:
|
||||||||||||||||||||||||
Philippines
|
38,677
|
9
|
%
|
12,947
|
3
|
%
|
—
|
—
|
||||||||||||||||
China
|
37,943
|
9
|
%
|
47,049
|
12
|
%
|
41,332
|
12
|
%
|
|||||||||||||||
India
|
19,572
|
4
|
%
|
32,675
|
8
|
%
|
19,854
|
6
|
%
|
|||||||||||||||
Other
|
39,056
|
9
|
%
|
45,855
|
11
|
%
|
32,840
|
9
|
%
|
|||||||||||||||
Asia and South Pacific — Total
|
135,248
|
31
|
%
|
138,526
|
34
|
%
|
94,026
|
27
|
%
|
|||||||||||||||
Mexico, South and Central America:
|
||||||||||||||||||||||||
Chile
|
24,336
|
6
|
%
|
28,116
|
7
|
%
|
10,055
|
3
|
%
|
|||||||||||||||
Other
|
16,732
|
4
|
%
|
21,733
|
5
|
%
|
33,013
|
9
|
%
|
|||||||||||||||
Mexico, South and Central America — Total
|
41,068
|
10
|
%
|
49,849
|
12
|
%
|
43,068
|
12
|
%
|
|||||||||||||||
North America:
|
||||||||||||||||||||||||
United States
|
37,316
|
9
|
%
|
41,531
|
10
|
%
|
40,482
|
12
|
%
|
|||||||||||||||
Other
|
6,380
|
1
|
%
|
3,429
|
1
|
%
|
3,891
|
1
|
%
|
|||||||||||||||
North America — Total
|
43,696
|
10
|
%
|
44,960
|
11
|
%
|
44,373
|
13
|
%
|
|||||||||||||||
Middle East and Africa:
|
||||||||||||||||||||||||
Ethiopia
|
22,808
|
5
|
%
|
4,501
|
1
|
%
|
4,416
|
1
|
%
|
|||||||||||||||
Other
|
8,315
|
2
|
%
|
12,700
|
3
|
%
|
13,892
|
4
|
%
|
|||||||||||||||
Middle East and Africa — Total
|
31,123
|
7
|
%
|
17,201
|
4
|
%
|
18,308
|
5
|
%
|
|||||||||||||||
Total Operating Lease Revenue
|
$
|
429,691
|
100
|
%
|
$
|
406,563
|
100
|
%
|
$
|
351,792
|
100
|
%
|
Year ending December 31,
|
(Dollars in thousands)
|
|||
2016
|
281,051
|
|||
2017
|
262,705
|
|||
2018
|
229,243
|
|||
2019
|
191,089
|
|||
2020
|
168,381
|
|||
Thereafter
|
602,852
|
|||
Future minimum rental payments under operating leases
|
$
|
1,735,321
|
Year ending December 31,
|
(Dollars in thousands)
|
|||
2016
|
$
|
13,803
|
||
2017
|
13,484
|
|||
2018
|
10,716
|
|||
2019
|
7,351
|
|||
2020
|
4,324
|
|||
Thereafter
|
2,672
|
|||
Future amortization of lease incentives
|
$
|
52,350
|
7. | MAINTENANCE RIGHTS |
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
Maintenance rights, net beginning balance
|
$
|
144,920
|
$
|
122,721
|
||||
Acquisition
|
8,606
|
45,086
|
||||||
Capitalized to aircraft improvements
|
(6,591
|
)
|
(48
|
)
|
||||
Maintenance rights written off as end of lease income
|
(5,781
|
)
|
1,895
|
|||||
Cash (receipts) payments in settlement of maintenance rights
|
(5,253
|
)
|
2,453
|
|||||
Maintenance rights written off due to sale of aircraft
|
(41,408
|
)
|
(27,187
|
)
|
||||
Maintenance rights, net at end of period
|
$
|
94,493
|
$
|
144,920
|
8. | INVESTMENT IN UNCONSOLIDATED SUBSIDIARY |
9.
|
OTHER ASSETS
|
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
As restated
|
||||||||
Loan issuance costs, net
|
$
|
11,300
|
$
|
19,269
|
||||
Lease costs, net
|
2,176
|
3,289
|
||||||
Unamortized lease premiums
|
—
|
1,861
|
||||||
Other assets
|
4,274
|
4,530
|
||||||
Total other assets
|
$
|
17,750
|
$
|
28,949
|
10.
|
UNSECURED BORROWINGS
|
|
Balance as of
|
|||||||
|
December 31, 2015
|
December 31, 2014 | ||||||
|
(in thousands)
|
|||||||
Outstanding principal balance:
|
||||||||
2020 Notes
|
$
|
375,000
|
$
|
375,000
|
||||
2021 Notes
|
325,000
|
325,000
|
||||||
Total outstanding principal balance
|
700,000
|
700,000
|
||||||
Unamortized discount
|
(8,891
|
)
|
(10,548
|
)
|
||||
Unsecured borrowings, net
|
$
|
691,109
|
$
|
689,452
|
If redeemed during the 12-month period commencing on December 15 of the years set forth below:
|
Redemption Price
|
|||
2016
|
105.063
|
%
|
||
2017
|
103.375
|
%
|
||
2018
|
101.688
|
%
|
||
2019 and thereafter
|
100.000
|
%
|
If redeemed during the 12-month period commencing on October 15 of the years set forth below:
|
Redemption Price
|
|||
2017
|
104.781
|
%
|
||
2018
|
103.188
|
%
|
||
2019
|
101.594
|
%
|
||
2020 and thereafter
|
100.000
|
%
|
11. | SECURED BORROWINGS |
|
Net carrying value as of
|
Weighted average
interest rate(1) as of
|
||||||||||||||||||
|
December 31, 2015
|
December 31, 2014
|
December 31, 2015
|
December 31, 2014
|
Maturity
date
|
|||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||
As restated
|
||||||||||||||||||||
Securitization Notes
|
$
|
288,869
|
$
|
532,035
|
3.38
|
%
|
3.04
|
%
|
November 2033
|
|||||||||||
Nord LB Facility
|
251,849
|
408,484
|
4.04
|
%
|
4.15
|
%
|
November 2018
|
|||||||||||||
CBA Facility
|
87,070
|
113,208
|
5.02
|
%
|
4.63
|
%
|
June 2018 – October 2020
|
|||||||||||||
Term Loan
|
421,975
|
443,383
|
4.39
|
%
|
5.19
|
%
|
August 2019
|
|||||||||||||
Fly Acquisition II Facility
|
—
|
121,589
|
—
|
4.15
|
%
|
— | ||||||||||||||
Other Aircraft Secured Borrowings
|
655,548
|
713,970
|
3.63
|
%
|
3.89
|
%
|
February 2016 – January 2027
|
|||||||||||||
Total
|
$
|
1,705,311
|
$
|
2,332,669
|
(1) | Represents the contractual interest rates and effect of derivative instruments, and excludes the amortization of debt discounts and debt issuance costs. |
● | Restrictions on incurrence of debt and issuance of guarantees; |
● | Restrictions on liens or other encumbrances; |
● | Restrictions on acquisition, substitution and disposition of aircraft; |
● | Requirements relating to the maintenance, registration and insurance of its aircraft; |
● | Restrictions on the modification of aircraft and capital expenditures; and |
● | Requirements to maintain concentration limits and limitations on the re-leasing and disposition of aircraft. |
● | Failure to pay interest or principal when due or within a prescribed period of time following its due date; |
● | Failure to make certain other payments and such payments are not made within a prescribed period of time following written notice; |
● | Failure to comply with certain other covenants and such noncompliance continues for a specified period of time following written notice; and |
● | Any of the aircraft owning or borrower entities become the subject of insolvency proceedings. |
|
Balance as of
|
|||||||
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
Outstanding principal balance
|
$
|
295,786
|
$
|
546,465
|
||||
Unamortized debt discount
|
(6,917
|
)
|
(14,430
|
)
|
||||
Securitization Notes, net
|
$
|
288,869
|
$
|
532,035
|
● | Bankruptcy or insolvency of BBAM LP; |
● | BBAM LP ceases to own, directly or indirectly, at least 50% of the Servicer; |
● | Summit ceases to own, directly or indirectly, at least 33.33% of the partnership interests in BBAM LP; provided that a sale that results in such ownership being at a level below 33.33% shall not constitute a servicer termination event if the sale is to a publicly listed entity or other person with a net worth of at least $100 million; and |
● | 50% or more of the Servicer's key finance and legal team or technical and marketing team cease to be employed by BBAM LP and are not replaced with employees with reasonably comparable experience within 90 days. |
|
Balance as of
|
|||||||
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
Outstanding principal balance
|
$
|
255,278
|
$
|
416,249
|
||||
Unamortized debt discount
|
(3,429
|
)
|
(7,765
|
)
|
||||
Nord LB Facility balance, net
|
$
|
251,849
|
$
|
408,484
|
|
Balance as of
|
|||||||
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
Outstanding principal balance:
|
||||||||
Tranche A
|
$
|
44,235
|
$
|
65,462
|
||||
Tranche B
|
43,955
|
49,350
|
||||||
Total outstanding principal balance
|
88,190
|
114,812
|
||||||
Unamortized debt discount
|
(1,120
|
)
|
(1,604
|
)
|
||||
CBA Facility balance, net
|
$
|
87,070
|
$
|
113,208
|
|
As of
|
|||||||
|
December 31, 2015
|
December 31, 2014
|
||||||
Fixed rate loans:
|
||||||||
Tranche A
|
5.57
|
%
|
5.52
|
%
|
||||
Tranche B
|
4.47
|
%
|
4.47
|
%
|
||||
Variable rate loans:
|
||||||||
Tranche A
|
—
|
2.66
|
%
|
|||||
Facility weighted average interest rate
|
5.02
|
%
|
4.63
|
%
|
|
Balance as of
|
|||||||
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
Outstanding principal balance
|
$
|
427,781
|
$
|
451,547
|
||||
Unamortized debt discount
|
(5,806
|
)
|
(8,164
|
)
|
||||
Term Loan balance, net
|
$
|
421,975
|
$
|
443,383
|
|
Balance as of
|
|||||||
|
December 31, 2015
|
December 31, 2014 | ||||||
|
(Dollars in thousands)
|
|||||||
Outstanding principal balance
|
$
|
—
|
$
|
121,589
|
|
Balance as of
|
Weighted
Average
Interest
Rates(1)
|
Maturity Date
|
|||||||||||
|
December 31, 2015
|
December 31, 2014
|
||||||||||||
As restated
|
||||||||||||||
|
(Dollars in thousands)
|
|
||||||||||||
Outstanding principal balance
|
$
|
663,069
|
$
|
723,023
|
3.63
|
%
|
February 2016 – January 2027
|
|||||||
Unamortized debt discount
|
(7,521
|
)
|
(9,053
|
)
|
|
|||||||||
Other aircraft secured borrowings balance, net
|
$
|
655,548
|
$
|
713,970
|
|
(1)
|
Represents the weighted average contracted interest rate as of December 31, 2015.
|
Year ending December 31,
|
(Dollars in thousands)
|
|||
2016
|
$
|
291,988
|
||
2017
|
125,950
|
|||
2018
|
314,554
|
|||
2019
|
459,122
|
|||
2020
|
93,932
|
|||
Thereafter
|
444,558
|
|||
Future minimum principal payments due
|
$
|
1,730,104
|
12.
|
DERIVATIVES
|
Type
|
Quantity
|
Maturity Dates
|
Hedge Interest Rates
|
Swap Contract Notional Amount
|
Fair Value of Derivative Asset
|
Credit Risk Adjustment
|
Adjusted Fair Value of Derivative Asset
|
Gain Recognized in Accumulated Comprehensive Loss
|
Loss Recognized into Earnings
|
||||||||||||||||||||||||
Interest rate swap contracts
|
3
|
11/14/2018
|
0.90% - 1.03
|
%
|
$
|
57,447
|
$
|
210
|
$
|
3
|
$
|
213
|
$
|
186
|
$
|
(9
|
)
|
||||||||||||||||
Accrued interest
|
—
|
(18
|
)
|
—
|
(18
|
)
|
—
|
—
|
|||||||||||||||||||||||||
Total – designated derivative assets
|
3
|
$
|
57,447
|
$
|
192
|
$
|
3
|
$
|
195
|
$
|
186
|
$
|
(9
|
)
|
Type
|
Quantity
|
Maturity
Dates
|
Hedge Interest Rates
|
Swap Contract Notional Amount
|
Fair Value of Derivative Liability
|
Credit Risk Adjustment
|
Adjusted Fair Value of Derivative Liability
|
Loss Recognized in Accumulated Comprehensive Loss
|
Loss Recognized into Earnings
|
||||||||||||||||||||||||
Interest rate swap contracts
|
14
|
2/9/18-9/27/25
|
1.18% - 6.22
|
%
|
$
|
839,999
|
$
|
(19,141
|
)
|
$
|
666
|
$
|
(18,475
|
)
|
$
|
(16,243
|
)
|
$
|
(368
|
)
|
|||||||||||||
Accrued interest
|
—
|
(823
|
)
|
—
|
(823
|
)
|
—
|
—
|
|||||||||||||||||||||||||
Total – designated derivative liabilities
|
14
|
$
|
839,999
|
$
|
(19,964
|
)
|
$
|
666
|
$
|
(19,298
|
)
|
$
|
(16,243
|
)
|
$
|
(368
|
)
|
Type
|
Quantity
|
Maturity Dates
|
Hedge Interest Rates
|
Swap Contract Notional Amount
|
Fair Value of Derivative Asset
|
Credit Risk Adjustment
|
Adjusted Fair Value of Derivative Asset
|
Loss Recognized into Earnings
|
|||||||||||||||||||||
Interest rate swap contracts
|
1
|
11/14/2018
|
1.10
|
%
|
$
|
20,219
|
$
|
51
|
$
|
2
|
$
|
53
|
$
|
(53
|
)
|
||||||||||||||
Accrued interest
|
—
|
(7
|
)
|
—
|
(7
|
)
|
—
|
||||||||||||||||||||||
Total – dedesignated derivative assets
|
1
|
$
|
20,219
|
$
|
44
|
$
|
2
|
$
|
46
|
$
|
(53
|
)
|
Type
|
Quantity
|
Maturity Dates
|
Hedge Interest Rates
|
Swap Contract Notional Amount
|
Fair Value of Derivative Liability
|
Credit Risk Adjustment
|
Adjusted Fair Value of Derivative Liability
|
Loss Recognized into Earnings
|
|||||||||||||||||||||
Interest rate swap contracts
|
2
|
11/14/2018
|
1.18% - 1.22
|
%
|
$
|
42,224
|
$
|
(16
|
)
|
$
|
4
|
$
|
(12
|
)
|
$
|
(263
|
)
|
||||||||||||
Accrued interest
|
—
|
(17
|
)
|
—
|
(17
|
)
|
—
|
||||||||||||||||||||||
Total – dedesignated derivative liabilities
|
2
|
$
|
42,224
|
$
|
(33
|
)
|
$
|
4
|
$
|
(29
|
)
|
$
|
(263
|
)
|
13.
|
INCOME TAXES
|
|
Year ended December 31, 2015
|
Year ended December 31, 2014
|
Year ended December 31, 2013
|
|||||||||
|
(Dollars in thousands)
|
|||||||||||
As restated
|
As restated
|
|||||||||||
Current tax (benefit) expense:
|
||||||||||||
Ireland
|
$
|
33
|
$
|
—
|
$
|
400
|
||||||
Luxembourg
|
252
|
210
|
175
|
|||||||||
United States
|
—
|
2
|
(1,131
|
)
|
||||||||
Australia
|
138
|
—
|
—
|
|||||||||
Other
|
57
|
48
|
20
|
|||||||||
Current tax expense (benefit) — total
|
480
|
260
|
(536
|
)
|
||||||||
Deferred tax expense (benefit):
|
||||||||||||
Ireland
|
4,558
|
8,208
|
1,082
|
|||||||||
Australia
|
334
|
241
|
2,601
|
|||||||||
Other
|
27
|
(18
|
)
|
(13
|
)
|
|||||||
Deferred tax expense (benefit) — total
|
4,919
|
8,431
|
3,670
|
|||||||||
Total income tax expense
|
$
|
5,399
|
$
|
8,691
|
$
|
3,134
|
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
As restated
|
||||||||
Deferred tax asset:
|
||||||||
Net operating loss carry forwards
|
$
|
181,370
|
$
|
221,026
|
||||
Net unrealized losses on derivative instruments
|
1,999
|
2,483
|
||||||
Basis difference on acquisition of GAAM Australian assets
|
6,844
|
9,597
|
||||||
Other
|
240
|
311
|
||||||
Valuation allowance
|
(23,029
|
)
|
(22,418
|
)
|
||||
Total deferred tax asset
|
167,424
|
210,999
|
||||||
Deferred tax liability:
|
||||||||
Excess of tax depreciation over book depreciation
|
(171,084
|
)
|
(206,719
|
)
|
||||
Book/tax differences identified in connection with GAAM Portfolio acquisition
|
(911
|
)
|
(1,634
|
)
|
||||
Net earnings of non-European Union member subsidiaries
|
(16,170
|
)
|
(17,952
|
)
|
||||
Total deferred tax liability
|
(188,165
|
)
|
(226,305
|
)
|
||||
Deferred tax liability, net
|
$
|
(20,741
|
)
|
$
|
(15,306
|
)
|
Year ended December 31, 2015
|
Year ended December 31, 2014
|
Year ended December 31, 2013
|
||||||||||
As restated
|
As restated
|
|||||||||||
Irish statutory corporate tax rate on trading income
|
12.5
|
%
|
12.5
|
%
|
12.5
|
%
|
||||||
Valuation allowances
|
12.0
|
%
|
3.6
|
%
|
0.8
|
%
|
||||||
Equity earnings from Fly-Z/C LP
|
(0.5
|
)%
|
(0.4
|
)%
|
(0.3
|
)%
|
||||||
Tax impact of repurchased and resold Notes
|
(3.2
|
)%
|
(0.6
|
)%
|
(0.8
|
)%
|
||||||
Share-based compensation
|
0.1
|
%
|
—
|
0.7
|
%
|
|||||||
Foreign tax rate differentials
|
(9.7
|
)%
|
(3.9
|
)%
|
(1.4
|
)%
|
||||||
True-up of prior year tax provision
|
1.4
|
%
|
0.2
|
%
|
(1.7
|
)%
|
||||||
Non-taxable gain on debt extinguishment
|
—
|
(1.2
|
)%
|
(5.2
|
)%
|
|||||||
Non-deductible interest expense, transaction fees and expenses
|
6.1
|
%
|
2.4
|
%
|
0.9
|
%
|
||||||
Other
|
0.4
|
%
|
0.0
|
%
|
(0.0
|
)%
|
||||||
Income tax expense
|
19.1
|
%
|
12.6
|
%
|
5.5
|
%
|
14.
|
OTHER LIABILITIES
|
|
December 31, 2015
|
December 31, 2014
|
||||||
|
(Dollars in thousands)
|
|||||||
Net current tax provision
|
$
|
645
|
$
|
581
|
||||
Lease incentive obligation
|
21,217
|
25,503
|
||||||
Deferred rent payable
|
11,974
|
11,461
|
||||||
Refundable deposits
|
4,240
|
4,079
|
||||||
Other
|
14,050
|
266
|
||||||
Total other liabilities
|
$
|
52,126
|
$
|
41,890
|
15. | SHAREHOLDERS' EQUITY |
16. | SHARE-BASED COMPENSATION |
|
Number of
shares
|
Weighted average
exercise price
|
Weighted average
remaining
contractual
life (in years)
|
|||||||||
Outstanding at December 31, 2012
|
892,004
|
$
|
12.74
|
8.1
|
||||||||
SARs granted
|
—
|
—
|
—
|
|||||||||
SARs exercised
|
(3,370
|
)
|
12.42
|
—
|
||||||||
SARs canceled or forfeited
|
—
|
—
|
—
|
|||||||||
Outstanding at December 31, 2013
|
888,634
|
$
|
12.74
|
7.1
|
||||||||
SARs granted
|
—
|
—
|
—
|
|||||||||
SARs exercised
|
(58,519
|
)
|
12.80
|
—
|
||||||||
SARs canceled or forfeited
|
(8,998
|
)
|
12.28
|
—
|
||||||||
Outstanding at December 31, 2014
|
821,117
|
12.74
|
6.1
|
|||||||||
SARs granted
|
—
|
—
|
—
|
|||||||||
SARs exercised
|
—
|
—
|
—
|
|||||||||
SARs canceled or forfeited
|
—
|
—
|
—
|
|||||||||
Outstanding at December 31, 2015
|
821,117
|
12.74
|
5.1
|
|||||||||
Exercisable at December 31, 2015
|
821,117
|
$
|
12.74
|
|
Number of
shares
|
Weighted average
grant date
fair value
|
||||||
Outstanding and unvested at December 31, 2012
|
284,014
|
12.88
|
||||||
RSUs granted
|
—
|
—
|
||||||
RSUs vested
|
(122,534
|
)
|
12.98
|
|||||
RSUs canceled or forfeited
|
—
|
—
|
||||||
Outstanding and unvested at December 31, 2013
|
161,480
|
$
|
12.81
|
|||||
RSUs granted
|
—
|
—
|
||||||
RSUs vested
|
(119,666
|
)
|
12.99
|
|||||
RSUs canceled or forfeited
|
(5,739
|
)
|
12.28
|
|||||
Outstanding and unvested at December 31, 2014
|
36,075
|
$
|
12.28
|
|||||
RSUs granted
|
—
|
—
|
||||||
RSUs vested
|
(36,075
|
)
|
12.28
|
|||||
RSUs canceled or forfeited
|
—
|
—
|
||||||
Outstanding and unvested at December 31, 2015
|
—
|
$
|
—
|
|
Year Ended December 31, 2015
|
|
Year Ended
December 31, 2014
|
|
Year Ended
December 31, 2013
|
|||
Risk-free interest rate
|
|
0.90% – 1.76%
|
|
|
0.90% –2.32%
|
|
|
0.90% – 2.51%
|
Volatility
|
|
47% – 57%
|
|
|
48% – 57%
|
|
|
51% – 63%
|
Expected life
|
|
6 – 7 years
|
|
|
6 – 8 years
|
|
|
6 – 8 years
|
17.
|
EARNINGS PER SHARE
|
|
Year ended December 31, 2015
|
Year ended December 31, 2014
|
Year ended December 31, 2013
|
|||||||||
|
(Dollars in thousands, except share and per share data)
|
|||||||||||
As restated
|
As restated
|
|||||||||||
Numerator
|
||||||||||||
Net income
|
$
|
22,798
|
$
|
60,184
|
$
|
53,940
|
||||||
Less:
|
||||||||||||
Dividends declared and paid to shareholders
|
(41,388
|
)
|
(41,392
|
)
|
(30,531
|
)
|
||||||
Dividend equivalents paid to vested RSUs and SARs
|
(1,054
|
)
|
(1,426
|
)
|
(940
|
)
|
||||||
Net income attributable to common shareholders
|
$
|
(19,644
|
)
|
$
|
17,366
|
$
|
22,469
|
|||||
Denominator
|
||||||||||||
Weighted average shares outstanding-Basic
|
41,222,690
|
41,405,211
|
34,129,880
|
|||||||||
Dilutive common equivalent shares:
|
||||||||||||
RSUs
|
7,950
|
48,674
|
102,914
|
|||||||||
SARs
|
84,509
|
73,699
|
10,662
|
|||||||||
Weighted average shares outstanding-Diluted
|
41,315,149
|
41,527,584
|
34,243,456
|
|||||||||
Earnings per share:
|
||||||||||||
Basic
|
||||||||||||
Distributed earnings
|
$
|
1.00
|
$
|
1.00
|
$
|
0.89
|
||||||
Undistributed income (excess distribution)
|
$
|
(0.48
|
)
|
$
|
0.42
|
$
|
0.66
|
|||||
Basic earnings per share
|
$
|
0.52
|
$
|
1.42
|
$
|
1.55
|
||||||
Diluted
|
||||||||||||
Distributed earnings
|
$
|
1.00
|
$
|
1.00
|
$
|
0.89
|
||||||
Undistributed income (excess distribution)
|
$
|
(0.48
|
)
|
$
|
0.42
|
$
|
0.66
|
|||||
Diluted earnings per share
|
$
|
0.52
|
$
|
1.42
|
$
|
1.55
|
|
2016
|
2017
|
2018
|
2019
|
2020
|
Thereafter
|
Total
|
|||||||||||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||||||||||||||
Fixed base fee payments (1)
|
$
|
2,043
|
$
|
2,043
|
$
|
2,043
|
$
|
2,043
|
$
|
2,043
|
$
|
14,391
|
$
|
24,606
|
||||||||||||||
Fixed administrative agency fee payments due by B&B Air Funding (1)
|
851
|
851
|
851
|
851
|
851
|
5,997
|
10,252
|
|||||||||||||||||||||
Fixed administrative services fee due under the Term Loan (2)
|
381
|
348
|
295
|
228
|
114
|
240
|
1,606
|
|||||||||||||||||||||
Fixed administrative agency fee payments due by other subsidiaries (2)
|
504
|
482
|
424
|
350
|
335
|
928
|
3,023
|
|||||||||||||||||||||
Fixed payments for Management Expenses (1)
|
5,722
|
5,722
|
5,722
|
5,722
|
5,722
|
25,752
|
54,362
|
|||||||||||||||||||||
Total
|
$
|
9,501
|
$
|
9,446
|
$
|
9,335
|
$
|
9,194
|
$
|
9,065
|
$
|
47,308
|
$
|
93,849
|
(1) | Amounts in the table assume Consumer Price Index ("CPI") rates in effect as of December 31, 2015 remain constant in future periods. |
(2) | Assumes number of aircraft at December 31, 2015 remains the same for future periods. |
20.
|
FAIR VALUE MEASUREMENTS
|
|
As of December 31, 2015
|
As of December 31, 2014
|
||||||||||||||
|
Carrying
Amount
|
Fair Value
|
Carrying
Amount
|
Fair Value
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
As restated
|
||||||||||||||||
Securitization Notes
|
$
|
288,869
|
$
|
252,897
|
$
|
532,035
|
$
|
467,228
|
||||||||
Nord LB Facility
|
251,849
|
251,849
|
408,484
|
408,484
|
||||||||||||
CBA Facility
|
87,070
|
87,070
|
113,208
|
113,208
|
||||||||||||
Term Loan
|
421,975
|
421,921
|
443,383
|
449,289
|
||||||||||||
Fly Acquisition II Facility
|
—
|
—
|
121,589
|
128,080
|
||||||||||||
Other Aircraft Secured Borrowings
|
655,548
|
653,992
|
713,970
|
716,063
|
||||||||||||
2020 Notes
|
370,790
|
375,000
|
369,942
|
380,625
|
||||||||||||
2021 Notes
|
320,319
|
333,125
|
319,510
|
321,750
|
||||||||||||
Derivative asset
|
241
|
241
|
2,067
|
2,067
|
||||||||||||
Derivative liabilities
|
19,327
|
19,327
|
23,311
|
23,311
|
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
|
(Dollars in thousands)
|
|||||||||||||||
December 31, 2015:
|
||||||||||||||||
Derivative asset
|
—
|
$
|
241
|
—
|
$
|
241
|
||||||||||
Derivative liabilities
|
—
|
19,327
|
—
|
19,327
|
||||||||||||
December 31, 2014:
|
||||||||||||||||
Derivative asset
|
—
|
$
|
2,067
|
—
|
$
|
2,067
|
||||||||||
Derivative liabilities
|
—
|
23,311
|
—
|
23,311
|
21. | UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION |
(Dollars in thousands, except per share data)
|
March 31,
2015
|
June 30,
2015
|
September 30,
2015
|
December 31,
2015
|
||||||||||||
As restated
|
As restated
|
As restated
|
||||||||||||||
Total revenues
|
$
|
123,286
|
$
|
102,822
|
$
|
112,655
|
$
|
123,634
|
||||||||
Net income
|
$
|
19,865
|
$
|
(43,695
|
)
|
$
|
27,483
|
$
|
19,145
|
|||||||
Earnings per share — Basic
|
$
|
0.47
|
$
|
(1.06
|
)
|
$
|
0.66
|
$
|
0.47
|
|||||||
Earnings per share — Diluted
|
$
|
0.47
|
$
|
(1.06
|
)
|
$
|
0.66
|
$
|
0.47
|
(Dollars in thousands, except per share data)
|
March 31,
2014
|
June 30,
2014
|
September 30,
2014
|
December 31,
2014
|
||||||||||||
As restated
|
As restated
|
As restated
|
As restated
|
|||||||||||||
Total revenues
|
$
|
94,320
|
$
|
108,566
|
$
|
102,374
|
$
|
120,288
|
||||||||
Net income
|
$
|
7,653
|
$
|
21,746
|
$
|
13,471
|
$
|
17,314
|
||||||||
Earnings per share — Basic
|
$
|
0.17
|
$
|
0.52
|
$
|
0.32
|
$
|
0.41
|
||||||||
Earnings per share — Diluted
|
$
|
0.17
|
$
|
0.52
|
$
|
0.32
|
$
|
0.41
|
22.
|
SUBSEQUENT EVENTS
|
|
/s/ Ernst & Young LLP
|
|
|
San Francisco, California
|
|
December 31,
|
||||||||
|
2015
|
2014
|
||||||
As restated
|
||||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
139,339
|
$
|
218,538
|
||||
Notes receivable from subsidiaries
|
735,835
|
591,025
|
||||||
Investments in subsidiaries
|
778,080
|
796,389
|
||||||
Investment in unconsolidated subsidiary
|
7,170
|
4,002
|
||||||
Other assets, net
|
2,712
|
4,097
|
||||||
Total assets
|
1,663,136
|
1,614,051
|
||||||
Liabilities
|
||||||||
Payable to related parties
|
50
|
917
|
||||||
Payable to subsidiaries
|
289,961
|
140,583
|
||||||
Unsecured borrowings, net
|
691,109
|
689,452
|
||||||
Deferred tax liability, net
|
13,675
|
15,951
|
||||||
Accrued and other liabilities
|
11,377
|
10,894
|
||||||
Total liabilities
|
1,006,172
|
857,797
|
||||||
Shareholders' equity
|
656,964
|
756,254
|
||||||
Total liabilities and shareholders' equity
|
$
|
1,663,136
|
$
|
1,614,051
|
Years ended
|
||||||||||||
|
2015
|
2014
|
2013
|
|||||||||
As restated
|
As restated
|
|||||||||||
Revenues
|
||||||||||||
Equity in earnings of subsidiaries
|
$
|
17,065
|
$
|
59,447
|
$
|
52,980
|
||||||
Equity in earnings from unconsolidated subsidiary
|
1,159
|
3,562
|
1,491
|
|||||||||
Intercompany management fee income
|
15,053
|
16,921
|
15,780
|
|||||||||
Intercompany interest income
|
48,077
|
22,394
|
1,407
|
|||||||||
Interest and other income
|
224
|
215
|
185
|
|||||||||
Total revenues
|
81,578
|
102,539
|
71,843
|
|||||||||
Expense
|
||||||||||||
Interest expense
|
48,013
|
28,089
|
1,887
|
|||||||||
Selling, general and administrative
|
12,987
|
15,520
|
17,644
|
|||||||||
Total expenses
|
61,000
|
43,609
|
19,531
|
|||||||||
Net income before provision for income taxes
|
20,578
|
58,930
|
52,312
|
|||||||||
Income tax benefit
|
(2,220
|
)
|
(1,254
|
)
|
(1,628
|
)
|
||||||
Net income
|
$
|
22,798
|
$
|
60,184
|
$
|
53,940
|
||||||
Weighted average number of shares:
|
||||||||||||
Basic
|
41,222,690
|
41,405,211
|
34,129,880
|
|||||||||
Diluted
|
41,315,149
|
41,527,584
|
34,243,456
|
|||||||||
Earnings per share:
|
||||||||||||
Basic
|
$
|
0.52
|
$
|
1.42
|
$
|
1.55
|
||||||
Diluted
|
$
|
0.52
|
$
|
1.42
|
$
|
1.55
|
Years ended
|
||||||||||||
|
2015
|
2014
|
2013
|
|||||||||
As restated
|
As restated
|
|||||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net Income
|
$
|
22,798
|
$
|
60,184
|
$
|
53,940
|
||||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||||||
Equity in earnings of subsidiaries
|
(17,065
|
)
|
(59,447
|
)
|
(52,980
|
)
|
||||||
Equity in earnings of unconsolidated subsidiary
|
(1,159
|
)
|
(3,562
|
)
|
(1,491
|
)
|
||||||
Deferred income taxes
|
(2,276
|
)
|
(2,004
|
)
|
(1,654
|
)
|
||||||
Share-based compensation
|
195
|
30
|
3,177
|
|||||||||
Amortization of debt discount and others
|
1,982
|
1,537
|
76
|
|||||||||
Distributions from unconsolidated subsidiary
|
—
|
5,501
|
—
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Receivable from subsidiaries
|
132,843
|
117,806
|
12,797
|
|||||||||
Other assets
|
1,060
|
(1,672
|
)
|
45
|
||||||||
Payable to related parties
|
(867
|
)
|
(48
|
)
|
(1,435
|
)
|
||||||
Accrued and other liabilities
|
483
|
7,211
|
670
|
|||||||||
Net cash flows provided by operating activities
|
137,994
|
125,536
|
13,145
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Capital contributions to subsidiaries
|
—
|
(5,058
|
)
|
(256,515
|
)
|
|||||||
Distributions received from subsidiaries
|
53,500
|
1,925
|
6,000
|
|||||||||
Capital contributions to unconsolidated subsidiary
|
(2,009
|
)
|
—
|
—
|
||||||||
Distributions received from unconsolidated subsidiary
|
—
|
1,132
|
—
|
|||||||||
Notes receivable from subsidiaries
|
(650,083
|
)
|
(628,994
|
)
|
—
|
|||||||
Notes payable to subsidiaries
|
505,273
|
94,101
|
—
|
|||||||||
Net cash flows used in investing activities
|
(93,319
|
)
|
(536,894
|
)
|
(250,515
|
)
|
||||||
Cash Flows from Financing Activities
|
||||||||||||
Proceeds from issuance of shares, net of fees paid
|
—
|
—
|
172,595
|
|||||||||
Proceeds from issuance of unsecured borrowings
|
—
|
396,563
|
291,389
|
|||||||||
Debt issuance costs
|
—
|
(1,116
|
)
|
—
|
||||||||
Shares repurchased
|
(81,432
|
)
|
—
|
—
|
||||||||
Dividends paid
|
(41,388
|
)
|
(41,392
|
)
|
(30,531
|
)
|
||||||
Dividend equivalents
|
(1,054
|
)
|
(1,426
|
)
|
(940
|
)
|
||||||
Net cash flows (used in) provided by financing activities
|
(123,874
|
)
|
352,629
|
432,513
|
||||||||
Net (decrease) increase in cash and cash equivalents
|
(79,199
|
)
|
(58,729
|
)
|
195,143
|
|||||||
Cash and cash equivalents at beginning of year
|
218,538
|
277,267
|
82,124
|
|||||||||
Cash and cash equivalents at end of year
|
$
|
139,339
|
$
|
218,538
|
$
|
277,267
|
||||||
Supplemental Disclosure:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
46,723
|
$
|
21,488
|
$
|
—
|
||||||
Taxes
|
—
|
—
|
—
|
|||||||||
Noncash Activities:
|
||||||||||||
Noncash investing activities:
|
||||||||||||
Capital contribution to subsidiaries
|
17,246
|
—
|
—
|
|||||||||
Distributions paid to subsidiaries
|
711
|
—
|
—
|
1.
|
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS
|
December 31, 2014
|
||||||||||||||||
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
218,538
|
$
|
—
|
$
|
—
|
$
|
218,538
|
||||||||
Notes receivable from subsidiaries
|
591,025
|
—
|
—
|
591,025
|
||||||||||||
Investments in subsidiaries
|
799,009
|
1,290
|
(3,910
|
)
|
796,389
|
|||||||||||
Investment in unconsolidated subsidiary
|
4,002
|
—
|
—
|
4,002
|
||||||||||||
Other assets, net
|
4,097
|
—
|
—
|
4,097
|
||||||||||||
Total assets
|
$
|
1,616,671
|
$
|
1,290
|
$
|
(3,910
|
)
|
$
|
1,614,051
|
|||||||
Liabilities
|
||||||||||||||||
Payable to related parties
|
$
|
917
|
$
|
—
|
$
|
—
|
$
|
917
|
||||||||
Payable to subsidiaries
|
140,583
|
—
|
—
|
140,583
|
||||||||||||
Unsecured borrowings, net
|
689,452
|
—
|
—
|
689,452
|
||||||||||||
Deferred tax liability, net
|
15,951
|
—
|
—
|
15,951
|
||||||||||||
Accrued and other liabilities
|
10,894
|
—
|
—
|
10,894
|
||||||||||||
Total liabilities
|
857,797
|
—
|
—
|
857,797
|
||||||||||||
Shareholders' equity
|
758,874
|
1,290
|
(3,910
|
)
|
756,254
|
|||||||||||
Total liabilities and shareholders' equity
|
$
|
1,616,671
|
$
|
1,290
|
$
|
(3,910
|
)
|
$
|
1,614,051
|
Year Ended December 31, 2014
|
||||||||||||||||
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Revenues
|
||||||||||||||||
Equity in earnings of subsidiaries
|
$
|
56,446
|
$
|
3,157
|
$
|
(156
|
)
|
$
|
59,447
|
|||||||
Equity in earnings from unconsolidated subsidiary
|
2,456
|
—
|
1,106
|
3,562
|
||||||||||||
Intercompany management fee income
|
16,921
|
—
|
—
|
16,921
|
||||||||||||
Intercompany interest income
|
22,394
|
—
|
—
|
22,394
|
||||||||||||
Interest and other income
|
215
|
—
|
—
|
215
|
||||||||||||
Total revenues
|
98,432
|
3,157
|
950
|
102,539
|
||||||||||||
Expenses
|
||||||||||||||||
Interest expense
|
28,089
|
—
|
—
|
28,089
|
||||||||||||
Selling, general and administrative
|
15,520
|
—
|
—
|
15,520
|
||||||||||||
Total expenses
|
43,609
|
—
|
—
|
43,609
|
||||||||||||
Net income before provision for income taxes
|
54,823
|
3,157
|
950
|
58,930
|
||||||||||||
Income tax benefit
|
(1,254
|
)
|
—
|
—
|
(1,254
|
)
|
||||||||||
Net income
|
$
|
56,077
|
$
|
3,157
|
$
|
950
|
$
|
60,184
|
||||||||
Weighted average number of shares:
|
||||||||||||||||
Basic
|
41,405,211
|
—
|
—
|
41,405,211
|
||||||||||||
Diluted
|
41,527,584
|
—
|
—
|
41,527,584
|
||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.32
|
—
|
—
|
$
|
1.42
|
||||||||||
Diluted
|
$
|
1.32
|
—
|
—
|
$
|
1.42
|
Year Ended December 31, 2013
|
||||||||||||||||
|
As previously reported
|
Maintenance rights adjustments
|
Other adjustments
|
As restated
|
||||||||||||
Revenues
|
||||||||||||||||
Equity in earnings of subsidiaries
|
$
|
51,136
|
$
|
1,477
|
$
|
367
|
$
|
52,980
|
||||||||
Equity in earnings from unconsolidated subsidiary
|
1,871
|
—
|
(380
|
)
|
1,491
|
|||||||||||
Intercompany management fee income
|
15,780
|
—
|
—
|
15,780
|
||||||||||||
Intercompany interest income
|
1,407
|
—
|
—
|
1,407
|
||||||||||||
Interest and other income
|
185
|
—
|
—
|
185
|
||||||||||||
Total revenues
|
70,379
|
1,477
|
(13
|
)
|
71,843
|
|||||||||||
Expenses
|
||||||||||||||||
Interest expense
|
1,887
|
—
|
—
|
1,887
|
||||||||||||
Selling, general and administrative
|
17,644
|
—
|
—
|
17,644
|
||||||||||||
Total expenses
|
19,531
|
—
|
—
|
19,531
|
||||||||||||
Net income before provision for income taxes
|
50,848
|
1,477
|
(13
|
) |
52,312
|
|||||||||||
Income tax benefit
|
(1,628
|
)
|
—
|
—
|
(1,628
|
)
|
||||||||||
Net income
|
$
|
52,476
|
$
|
1,477
|
$
|
(13
|
) |
$
|
53,940
|
|||||||
Weighted average number of shares:
|
||||||||||||||||
Basic
|
34,129,880
|
—
|
—
|
34,129,880
|
||||||||||||
Diluted
|
34,243,456
|
—
|
—
|
34,243,456
|
||||||||||||
Earnings per share:
|
||||||||||||||||
Basic
|
$
|
1.51
|
—
|
—
|
$
|
1.55
|
||||||||||
Diluted
|
$
|
1.50
|
—
|
—
|
$
|
1.55
|
Year Ended December 31, 2014
|
||||||||||||
|
As previously reported
|
Adjustments
|
As restated
|
|||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net Income
|
$
|
56,077
|
$
|
4,107
|
$
|
60,184
|
||||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||||||
Equity in earnings of subsidiaries
|
(56,446
|
)
|
(3,001
|
)
|
(59,447
|
)
|
||||||
Equity in earnings of unconsolidated subsidiary
|
(2,456
|
)
|
(1,106
|
)
|
(3,562
|
)
|
||||||
Deferred income taxes
|
(2,004
|
)
|
—
|
(2,004
|
)
|
|||||||
Share-based compensation
|
30
|
—
|
30
|
|||||||||
Amortization of debt discount and others
|
1,537
|
—
|
1,537
|
|||||||||
Distributions from unconsolidated subsidiary
|
5,501
|
—
|
5,501
|
|||||||||
Changes in operating assets and liabilities:
|
—
|
|||||||||||
Receivable from subsidiaries
|
117,806
|
—
|
117,806
|
|||||||||
Other assets
|
(1,672
|
)
|
—
|
(1,672
|
)
|
|||||||
Payable to related parties
|
(48
|
)
|
—
|
(48
|
)
|
|||||||
Accrued and other liabilities
|
7,211
|
—
|
7,211
|
|||||||||
Net cash flows provided by operating activities
|
125,536
|
—
|
125,536
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Capital contributions to subsidiaries
|
(5,058
|
)
|
—
|
(5,058
|
)
|
|||||||
Distributions received from subsidiaries
|
1,925
|
—
|
1,925
|
|||||||||
Capital contributions to unconsolidated subsidiaries
|
—
|
—
|
—
|
|||||||||
Distributions received from unconsolidated subsidiaries
|
1,132
|
—
|
1,132
|
|||||||||
Notes receivable from subsidiaries
|
(628,994
|
)
|
—
|
(628,994
|
)
|
|||||||
Notes payable to subsidiaries
|
94,101
|
—
|
94,101
|
|||||||||
Net cash flows used in investing activities
|
(536,894
|
)
|
—
|
(536,894
|
)
|
|||||||
Cash Flows from Financing Activities
|
||||||||||||
Proceeds from issuance of shares, net of fees paid
|
—
|
—
|
—
|
|||||||||
Proceeds from issuance of unsecured borrowings
|
396,563
|
—
|
396,563
|
|||||||||
Debt issuance costs
|
(1,116
|
)
|
—
|
(1,116
|
)
|
|||||||
Shares repurchased
|
—
|
—
|
—
|
|||||||||
Dividends paid
|
(41,392
|
)
|
—
|
(41,392
|
)
|
|||||||
Dividend equivalents
|
(1,426
|
)
|
—
|
(1,426
|
)
|
|||||||
Net cash flows provided by financing activities
|
352,629
|
—
|
352,629
|
|||||||||
Net decrease in cash
|
(58,729
|
)
|
—
|
(58,729
|
)
|
|||||||
Cash at beginning of period
|
277,267
|
—
|
277,267
|
|||||||||
Cash at end of period
|
$
|
218,538
|
$
|
—
|
$
|
218,538
|
||||||
Supplemental Disclosure:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
21,488
|
$
|
—
|
$
|
21,488
|
||||||
Taxes
|
—
|
—
|
—
|
Year Ended December 31, 2013
|
||||||||||||
|
As previously reported
|
Adjustments
|
As restated
|
|||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net Income
|
$
|
52,476
|
$
|
1,464
|
$
|
53,940
|
||||||
Adjustments to reconcile net income to net cash flows provided by operating activities:
|
||||||||||||
Equity in earnings of subsidiaries
|
(51,136
|
)
|
(1,844
|
)
|
(52,980
|
)
|
||||||
Equity in earnings of unconsolidated subsidiary
|
(1,871
|
)
|
380
|
(1,491
|
)
|
|||||||
Deferred income taxes
|
(1,654
|
)
|
—
|
(1,654
|
)
|
|||||||
Share-based compensation
|
3,177
|
—
|
3,177
|
|||||||||
Amortization of debt discount and others
|
76
|
—
|
76
|
|||||||||
Distributions from unconsolidated subsidiary
|
—
|
—
|
—
|
|||||||||
Changes in operating assets and liabilities:
|
—
|
|||||||||||
Receivable from subsidiaries
|
12,797
|
—
|
12,797
|
|||||||||
Other assets
|
45
|
—
|
45
|
|||||||||
Payable to related parties
|
(1,435
|
)
|
—
|
(1,435
|
)
|
|||||||
Accrued and other liabilities
|
670
|
—
|
670
|
|||||||||
Net cash flows provided by operating activities
|
13,145
|
—
|
13,145
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Capital contributions to subsidiaries
|
(256,515
|
)
|
—
|
(256,515
|
)
|
|||||||
Distributions received from subsidiaries
|
6,000
|
—
|
6,000
|
|||||||||
Capital contributions to unconsolidated subsidiaries
|
—
|
—
|
—
|
|||||||||
Distributions received from unconsolidated subsidiaries
|
—
|
—
|
—
|
|||||||||
Notes receivable from subsidiaries
|
—
|
—
|
—
|
|||||||||
Notes payable to subsidiaries
|
—
|
—
|
—
|
|||||||||
Net cash flows used in investing activities
|
(250,515
|
)
|
—
|
(250,515
|
)
|
|||||||
Cash Flows from Financing Activities
|
||||||||||||
Proceeds from issuance of shares, net of fees paid
|
172,595
|
—
|
172,595
|
|||||||||
Proceeds from issuance of unsecured borrowings
|
291,389
|
—
|
291,389
|
|||||||||
Debt issuance costs
|
—
|
—
|
—
|
|||||||||
Shares repurchased
|
—
|
—
|
—
|
|||||||||
Dividends paid
|
(30,531
|
)
|
—
|
(30,531
|
)
|
|||||||
Dividend equivalents
|
(940
|
)
|
—
|
(940
|
)
|
|||||||
Net cash flows provided by financing activities
|
432,513
|
—
|
432,513
|
|||||||||
Net increase in cash
|
195,143
|
—
|
195,143
|
|||||||||
Cash at beginning of period
|
82,124
|
—
|
82,124
|
|||||||||
Cash at end of period
|
$
|
277,267
|
$
|
—
|
$
|
277,267
|
||||||
Supplemental Disclosure:
|
||||||||||||
Cash paid during the year for:
|
||||||||||||
Interest
|
$
|
—
|
$
|
—
|
$
|
—
|
||||||
Taxes
|
—
|
—
|
—
|
Exhibit
Number
|
|
Description of Exhibit
|
1.1
|
|
Memorandum of Association(1)
|
|
|
|
1.2
|
|
Amended and Restated Bye-Laws of Fly Leasing Ltd.(2)
|
|
|
|
2.1
|
|
Deposit Agreement between Deutsche Bank Trust Company Americas and Babcock & Brown Air Limited.(1)
|
|
|
|
4.1
|
|
Servicing Agreement, dated as of October 2, 2007, among Babcock & Brown Aircraft Management LLC, Babcock & Brown Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation.(1)
|
|
|
|
4.2
|
|
Administrative Services Agreement, dated as of October 2, 2007, among Deutsche Bank Trust Company Americas, AMBAC Assurance Corporation, Babcock & Brown Air Management Co. Limited and Babcock & Brown Air Funding I Limited.(1)
|
|
|
|
4.3
|
|
Trust Indenture, dated as of October 2, 2007, among Deutsche Bank Trust Company Americas, BNP Paribas, AMBAC Assurance Corporation and Babcock & Brown Air Funding I Limited.(1)
|
|
|
|
4.4
|
|
Security Trust Agreement, dated as of October 2, 2007, between Deutsche Bank Trust Company Americas, and Babcock & Brown Air Funding I Limited.(1)
|
|
|
|
4.5
|
|
Cash Management Agreement between Deutsche Bank Trust Company Americas and Babcock & Brown Air Funding I Limited.(1)
|
|
|
|
4.6
|
|
Form of Director Service Agreement between Babcock & Brown Air Limited and each director thereof.(1)
|
|
|
|
4.7
|
|
Amendment No. 1 to Servicing Agreement, dated as of April 29, 2010, among Babcock & Brown Aircraft Management LLC, Babcock & Brown Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation.(3)
|
|
|
|
4.8
|
|
Fly Leasing Limited Omnibus Incentive Plan.(3)
|
|
|
|
4.9
|
|
Form of Stock Appreciation Right Award Agreement.(3)
|
|
|
|
4.10
|
|
Form of Restricted Stock Unit Award Agreement.(3)
|
|
|
|
4.11
|
|
Loan Agreement dated as of November 14, 2007, among Global Aviation Holdings Fund Limited, GAHF (Ireland) Limited, Caledonian Aviation Holdings Limited and Norddeutsche Landesbank Girozentrale.(4)
|
|
|
|
4.12
|
|
Form of Loan Agreement among Hobart Aviation Holdings Limited, Norddeutsche Landesbank Girozentrale and each borrower thereof.(4)
|
|
|
|
4.13
|
|
Form of Servicing Agreement among BBAM LLC, BBAM Aviation Services Limited and each company thereof.(4)
|
|
|
|
4.14
|
|
Securities Purchase Agreement dated November 30, 2012, by and among Fly Leasing Limited, Summit Aviation Partners LLC and such persons identified therein.(8)
|
|
|
|
4.15
|
|
Purchase Agreement dated November 30, 2012 by and among BBAM Limited Partnership, Summit Aviation Partners LLC, Fly-BBAM Holdings Ltd., Summit Aviation Management Co., Ltd. and such persons identified therein.(6)
|
4.16
|
|
First Amendment to Purchase Amendment dated December 28, 2012 by and among Fly Leasing Limited, Summit Aviation Partners LLC and such persons identified therein.(8)
|
|
|
|
4.17
|
|
Amended and Restated Fly Leasing Limited Management Agreement dated as of December 28, 2012, between Fly Leasing Limited and Fly Leasing Management Co. Limited.(8)
|
Exhibit
Number
|
Description of Exhibit
|
|
4.18
|
|
Registration Rights Agreement dated as of December 28, 2012, by and among Fly Leasing Limited and each shareholder identified therein.(8)
|
|
|
|
4.19
|
|
Amended and Restated Servicing Agreement dated as of January 24, 2013, by and among BBAM US LP, BBAM Aviation Services Limited and Fly Leasing Limited.(8)
|
|
|
|
4.20
|
|
Indenture dated December 11, 2013 between Fly Leasing Limited and Wells Fargo Bank, National Association.(7)
|
|
|
|
4.21
|
|
First Supplemental Indenture dated December 11, 2013 between Fly Leasing Limited and Wells Fargo Bank, Nation Association.(7)
|
|
|
|
4.22
|
|
Second Supplemental Indenture dated as of October 3, 2014, between Fly Leasing Limited and Wells Fargo Bank, National Association.(10)
|
|
|
|
4.23
|
|
Amendment No. 1 to Trust Indenture, dated as of October 24, 2014, by and among Babcock & Brown Air Funding I Limited, Deutsche Bank Trust Company Americas, BNP Paribas and AMBAC Assurance Corporation. (12)
|
|
|
|
4.24
|
|
Amendment No. 2 to Servicing Agreement, dated as of October 24, 2014, by and among BBAM Aircraft Management LP, BBAM Aircraft Management (Europe) Limited, Babcock & Brown Air Funding I Limited and AMBAC Assurance Corporation. (12)
|
|
|
|
|
List of the Company's subsidiaries.
|
|
|
|
|
10.1
|
|
Aircraft Mortgage and Security Agreement dated as of August 9, 2012, among Fly Funding II S.A.R.L., Fly Leasing Limited, Fly Peridot Holdings Limited, Babcock & Brown Air Acquisition I Limited, The Initial Intermediate Lessees, The Initial Lessor Subsidiaries, The Additional Grantors Referred to Therein and Wells Fargo Bank Northwest, National Association.(5)
|
|
|
|
10.2
|
|
Amended and Restated Senior Secured Credit Agreement dated July 3, 2013 among Fly Acquisition II Limited, the Subsidiary Guarantors party thereto, the Lenders party thereto, and Deutsche Bank Trust Company Americas, as Security Trustee and as Administrative Agent.(9)
|
|
|
|
10.3
|
|
Amended and Restated Term Loan Credit Agreement dated as of November 21, 2013 among Fly Funding II S.A.R.L., Fly Leasing Limited, Fly Peridot Holdings Limited, Babcock & Brown Air Acquisition I Limited, each other Guarantor Party referred to therein, the Lenders identified therein, Citibank, N.A., and Well Fargo Bank Northwest, National Association. (11)
|
|
|
|
|
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.
|
|
|
|
|
|
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes Oxley Act of 2002.
|
|
|
|
|
|
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002.
|
|
|
|
|
|
Consent of Ernst & Young LLP.
|
|
|
Consent of Deloitte & Touche LLP.
|
|
101
|
|
The following materials from the Company's Annual Report on Form 20-F for the year ended December 31, 2015, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2015 and 2014, (ii) Consolidated Statements of Income for the years ended December 31, 2015, 2014 and 2013, (iii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2015, 2014 and 2013, (iv) Consolidated Statement of Shareholders' Equity for the years ended December 31, 2013, 2014 and 2015, (v) Consolidated Statements of Cash Flows for the years ended December 31, 2015, 2014 and 2013, and (vi) Notes to Consolidated Financial Statements for the year ended December 31, 2015.
|
(1)
|
Previously filed with the Registration Statement on Form F-1, File No. 333-145994.
|
(2)
|
Previously filed as an exhibit on Form 6-K dated June 30, 2010.
|
(3)
|
Previously filed as an exhibit on Form 6-K dated May 7, 2010.
|
(4)
|
Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2011.
|
(5)
|
Previously filed as an exhibit on Form 6-K dated November 13, 2012.
|
(6)
|
Confidential treatment has been requested with certain portions of this exhibit. This exhibit omits the information subject to this confidential treatment request. The omitted information has been filed separately with the Securities and Exchange Commission.
|
(7)
|
Previously filed as an exhibit on Form 6-K dated December 11, 2013.
|
(8)
|
Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2012.
|
(9)
|
Previously filed as an exhibit on Form 6-K dated August 6, 2013.
|
(10)
|
Previously filed as an exhibit on Form 6-K dated October 3, 2014.
|
(11)
|
Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2013.
|
(12)
|
Previously filed with the Annual Report on Form 20-F for the year ended December 31, 2014.
|
|
Fly Leasing Limited
|
|
|
|
|
|
By:
|
/s/ Colm Barrington
|
|
|
Colm Barrington
|
|
|
Chief Executive Officer and Director
|
Subsidiaries of Fly Leasing Limited
|
|
|
Name of Subsidiary
|
|
Jurisdiction of Incorporation
|
Amber Aircraft Leasing Limited
|
|
Ireland
|
Amethyst Aircraft Leasing Limited
|
|
Ireland
|
Aphrodite Aviation Limited
|
|
Ireland
|
Aquamarine Aircraft Leasing Limited
|
|
Ireland
|
Arden Aviation Australia Pty Limited
|
|
Australia
|
Artemis Aviation Limited
|
|
Ireland
|
B&B Air Acquisition 3151 Leasing Limited
|
|
Ireland
|
B&B Air Acquisition 3237 Leasing Limited
|
|
Ireland
|
B&B Air Acquisition 34953 Leasing Limited
|
|
Ireland
|
B&B Air Acquisition 34956 Leasing Limited
|
|
Ireland
|
B&B Air Acquisition 403 Leasing Limited
|
|
Ireland
|
B&B Air Funding 27974 Leasing Limited
|
|
Ireland
|
B&B Air Funding 27974 Mezzanine Leasing Limited
|
|
Bermuda
|
B&B Air Funding 28042 Mezzanine Leasing Limited
|
|
Bermuda
|
B&B Air Funding 28595 Leasing Limited
|
|
Ireland
|
B&B Air Funding 29052 Leasing Limited
|
|
Ireland
|
B&B Air Funding 29330 Leasing Limited
|
|
Ireland
|
B&B Air Funding 29330 Mezzanine Leasing Limited
|
|
Bermuda
|
B&B Air Funding 30785 Leasing Limited
|
|
Ireland
|
B&B Air Funding 733 Leasing SARL
|
|
France
|
B&B Air Funding 747 Leasing SARL
|
|
France
|
B&B Air Funding 888 Leasing Limited
|
|
Ireland
|
Babcock & Brown Air Acquisition I Limited
|
|
Bermuda
|
Babcock & Brown Air Finance (Cayman) Limited
|
|
Cayman Islands
|
Babcock & Brown Air Finance II (Cayman) Limited
|
|
Cayman Islands
|
Babcock & Brown Air Funding I Limited
|
|
Bermuda
|
Baker & Spice Aviation Limited
|
|
Ireland
|
Balfour Aviation Limited
|
|
Ireland
|
BBAM Aircraft Holdings 139 (Labuan) Ltd.
|
|
Malaysia
|
BBAM Aircraft Holdings 140 (Labuan) Ltd.
|
|
Malaysia
|
Brookdell Limited
|
|
Ireland
|
Caledonian Aviation Holdings Limited
|
|
Ireland
|
Callista Aviation Limited
|
|
Ireland
|
Cardamom Aircraft Leasing Pte. Ltd.
|
|
Singapore
|
Carnelian Aircraft Leasing Limited
|
|
Ireland
|
Central Aviation Australia Pty Limited
|
|
Australia
|
Churchill Aviation Limited
|
|
Ireland
|
Citrine Aircraft Leasing Limited
|
|
Ireland
|
Clementine Aviation Limited
|
|
Ireland
|
Commercial Aviation Solutions Australia Pty Limited
|
|
Australia
|
Coral Aircraft Holdings Limited
|
|
Cayman Islands
|
Coral Aircraft One Limited
|
|
Ireland
|
Coral Aircraft Three Limited
|
|
Ireland
|
Coral Aircraft Two Limited
|
|
Ireland
|
Coriander Aircraft Leasing Pte Ltd
|
Singapore
|
|
Coronet Aviation Australia Pty Limited
|
|
Australia
|
Drake Aviation Limited
|
|
Ireland
|
Eternity Aviation Limited
|
|
Ireland
|
Fairydell Limited
|
|
Ireland
|
Fly 28071 Leasing SARL
|
|
France
|
Name of Subsidiary
|
|
Jurisdiction of Incorporation
|
Fly 30144 Leasing SARL
|
|
France
|
Fly 30145 Leasing SARL
|
|
France
|
Fly Acquisition 37774 Leasing Pte. Ltd.
|
|
Singapore
|
Fly Acquisition 37774 Owner Limited
|
|
Ireland
|
Fly Acquisition 39330 Leasing Limited
|
|
Ireland
|
Fly Acquisition II Limited
|
|
Bermuda
|
Fly Aircraft Holdings Eight Limited
|
|
Ireland
|
Fly Aircraft Holdings Eighteen Limited
|
|
Ireland
|
Fly Aircraft Holdings Eleven Limited
|
|
Ireland
|
Fly Aircraft Holdings Fifteen Limited
|
|
Ireland
|
Fly Aircraft Holdings Five Limited
|
|
Ireland
|
Fly Aircraft Holdings Four Limited
|
|
Ireland
|
Fly Aircraft Holdings Fourteen Limited
|
|
Ireland
|
Fly Aircraft Holdings Nine Limited
|
|
Ireland
|
Fly Aircraft Holdings Nineteen Limited
|
|
Ireland
|
Fly Aircraft Holdings One Limited
|
|
Ireland
|
Fly Aircraft Holdings Seven Limited
|
|
Ireland
|
Fly Aircraft Holdings Seventeen Limited
|
|
Ireland
|
Fly Aircraft Holdings Six Limited
|
|
Ireland
|
Fly Aircraft Holdings Sixteen Limited
|
|
Ireland
|
Fly Aircraft Holdings Ten Limited
|
|
Ireland
|
Fly Aircraft Holdings Thirteen Limited
|
|
Ireland
|
Fly Aircraft Holdings Thirty Limited
|
Ireland
|
|
Fly Aircraft Holdings Thirty-Five Limited
|
Ireland
|
|
Fly Aircraft Holdings Thirty-Four Limited
|
Ireland
|
|
Fly Aircraft Holdings Thirty-One Limited
|
Ireland
|
|
Fly Aircraft Holdings Thirty-Three Limited
|
Ireland
|
|
Fly Aircraft Holdings Thirty-Two Limited
|
Ireland
|
|
Fly Aircraft Holdings Three Limited
|
|
Ireland
|
Fly Aircraft Holdings Twelve Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-Eight Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-Five Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-Four Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-Nine Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-One Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-Seven Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-Six Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-Three Limited
|
|
Ireland
|
Fly Aircraft Holdings Twenty-Two Limited
|
|
Ireland
|
Fly Aircraft Holdings Two Limited
|
|
Ireland
|
Fly Funding II SARL
|
|
Luxembourg
|
Fly Peridot Holdings Limited
|
|
Cayman Islands
|
Fly-BBAM Holdings, Ltd
|
|
Cayman Islands
|
GAAM China No. 1 Limited
|
|
Ireland
|
GAHF (Ireland) Limited
|
|
Ireland
|
Garnet Aircraft Leasing Limited
|
|
Ireland
|
Global Aviation Holdings Fund Limited
|
|
Cayman Islands
|
Goa Aviation Limited
|
|
Ireland
|
Grace Aviation Limited
|
|
Ireland
|
Great Wall Aviation Limited
|
|
Ireland
|
Hermes Aviation Limited
|
|
Ireland
|
Hobart Aviation Holdings Limited
|
|
Ireland
|
JET-i 2522 Leasing Limited
|
|
Ireland
|
JET-i 25232 Leasing Limited
|
|
Ireland
|
JET-i 25233 Leasing Limited
|
|
Ireland
|
JET-i 2670 Leasing Limited
|
|
Ireland
|
JET-i 2728 Holdings Limited
|
|
Ireland
|
Name of Subsidiary
|
|
Jurisdiction of Incorporation
|
JET-i 2728 Leasing SARL
|
|
France
|
JET-i 28042 Leasing Limited
|
|
Ireland
|
JET-i 2849 Leasing Limited
|
|
Ireland
|
JET-i 34293 Leasing Limited
|
|
Ireland
|
JET-i 34295 Leasing Limited
|
|
Ireland
|
JET-i 34898 Leasing Limited
|
|
Ireland
|
JET-i 34899 Leasing Limited
|
|
Ireland
|
JET-i 35089 Leasing Limited
|
|
Ireland
|
JET-i 35211 Leasing Limited
|
|
Ireland
|
Judbury Investments Pty Limited
|
|
Australia
|
Kimolos Limited
|
|
Ireland
|
Lapis Aircraft Leasing Limited
|
|
Ireland
|
Lemongrass Aircraft Leasing Pte. Ltd.
|
|
Singapore
|
Malachite Aircraft Leasing Limited
|
|
Ireland
|
Marlborough Aviation Limited
|
|
Ireland
|
Montgomery Aviation Limited
|
|
Ireland
|
Mumbai Aviation Limited
|
|
Ireland
|
Nelson Aviation Limited
|
|
Ireland
|
Opal Holdings Australia Pty Limited
|
|
Australia
|
Opal Holdings II Australia Pty Limited
|
|
Australia
|
Opal Holdings Lux SARL
|
|
Luxembourg
|
Padoukios Limited
|
|
Ireland
|
Palma Aviation Limited
|
|
Ireland
|
Panda Aviation Limited
|
|
Ireland
|
Pyrite Aircraft Leasing Limited
|
|
Ireland
|
Quartz Leasing Pty Limited
|
|
Australia
|
Quilldell Limited
|
|
Ireland
|
Richoux Aviation Limited
|
|
Ireland
|
Roosevelt Holdings Limited
|
|
Ireland
|
Rushcutters Aviation Australia Pty Limited
|
|
Australia
|
Sage Aircraft Leasing Pte. Ltd.
|
|
Singapore
|
Sapphire Leasing Pty Limited
|
|
Australia
|
Somerset Aviation Limited
|
|
Ireland
|
Suffolk Aviation Limited
|
|
Ireland
|
Surrey Aviation Limited
|
|
Ireland
|
Sussex Aviation Limited
|
|
Ireland
|
Temple Aviation Holdings Limited
|
|
Ireland
|
The Aviation Solutions Unit Trust
|
|
Australia
|
The Barcom Aviation Unit Trust
|
|
Australia
|
The Cecil Aviation Unit Trust
|
|
Australia
|
The Wellington Aviation Unit Trust
|
|
Australia
|
The Wentworth Aviation Unit Trust
|
|
Australia
|
Topaz Aircraft Leasing Limited
|
|
Ireland
|
Tourmaline Aircraft Leasing Limited
|
|
Ireland
|
Victoria Peak Aviation Limited
|
|
Ireland
|
Wingate Aviation Limited
|
|
Ireland
|
Zircon Aircraft Leasing Limited
|
|
Ireland
|
1. | I have reviewed this annual report on Form 20-F of Fly Leasing Limited; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
4. | The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and |
5. | The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting. |
Date: May 2, 2016
|
|
/s/ Colm Barrington
|
|
Colm Barrington
|
|
Chief Executive Officer
|
|
Fly Leasing Limited
|
1. | I have reviewed this annual report on Form 20-F of Fly Leasing Limited; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report; |
4. | The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and |
5. | The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting. |
Date: May 2, 2016
|
|
/s/ Gary Dales
|
|
Gary Dales
|
|
Chief Financial Officer
|
|
Fly Leasing Limited
|
1. | the accompanying annual report on Form 20-F of the Company for the year ended December 31, 2015 (the “Report”), furnished to the U.S. Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: May 2, 2016
|
|
/s/ Colm Barrington
|
|
Colm Barrington
|
|
Chief Executive Officer
|
|
Fly Leasing Limited
|
|
Date: May 2, 2016
|
|
/s/ Gary Dales
|
|
Gary Dales
|
|
Chief Financial Officer
|
|
Fly Leasing Limited
|
(1)
|
Registration Statement on Form F-3 (No. 333-157817) and the related prospectus of Fly Leasing Limited (the “Company”),
|
(2)
|
Registration Statement on Form F-3 (No. 333-187305) and the related prospectus of the Company,
|
(3)
|
Registration Statement on Form S-8 (No. 333- 166667), pertaining to the Company’s 2010 Omnibus Incentive Plan, and
|
(4)
|
Registration Statement on Form F-3 (No. 333–197912) and the related prospectus of the Company;
|
Document and Entity Information |
12 Months Ended |
---|---|
Dec. 31, 2015
shares
| |
Document and Entity Information [Abstract] | |
Entity Registrant Name | Fly Leasing Ltd |
Entity Central Index Key | 0001407298 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2015 |
Amendment Flag | false |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 35,671,400 |
Manager Shares Outstanding | 100 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Shareholders' equity | ||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, shares authorized (in shares) | 499,999,900 | 499,999,900 |
Common shares, shares issued (in shares) | 35,671,400 | 41,432,998 |
Common shares, shares outstanding (in shares) | 35,671,400 | 41,432,998 |
Manager shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Manager shares, shares authorized (in shares) | 100 | 100 |
Manager shares, shares issued (in shares) | 100 | 100 |
Manager shares, shares outstanding (in shares) | 100 | 100 |
Consolidated Statements of Income - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
[1] | Dec. 31, 2014 |
[1] | Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
[1] | Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
Revenues | ||||||||||||||||||||||
Operating lease revenue | $ 429,691 | $ 406,563 | $ 351,792 | |||||||||||||||||||
Finance lease income | 299 | 0 | 0 | |||||||||||||||||||
Equity earnings from unconsolidated subsidiary | 1,159 | 3,562 | 1,491 | |||||||||||||||||||
Gain on sale of aircraft | 28,959 | 14,761 | 5,421 | |||||||||||||||||||
Interest and other income | 2,289 | 662 | 1,930 | |||||||||||||||||||
Total revenues | $ 123,634 | $ 112,655 | $ 102,822 | $ 123,286 | $ 120,288 | $ 102,374 | $ 108,566 | $ 94,320 | 462,397 | 425,548 | 360,634 | |||||||||||
Expenses | ||||||||||||||||||||||
Depreciation | 159,732 | 166,983 | 138,336 | |||||||||||||||||||
Aircraft impairment | 66,093 | 1,200 | 6,166 | |||||||||||||||||||
Interest expense | 145,448 | 142,519 | 120,399 | |||||||||||||||||||
Selling, general and administrative | 33,674 | 41,033 | 39,593 | |||||||||||||||||||
Ineffective, dedesignated and terminated derivatives | 4,134 | 72 | (1,263) | |||||||||||||||||||
Net (gain) loss on extinguishment of debt | 17,491 | (2,194) | (15,147) | |||||||||||||||||||
Maintenance and other costs | 7,628 | 7,060 | 15,476 | |||||||||||||||||||
Total expenses | 434,200 | 356,673 | 303,560 | |||||||||||||||||||
Net income before provision for income taxes | 28,197 | 68,875 | 57,074 | |||||||||||||||||||
Provision for income taxes | 5,399 | 8,691 | 3,134 | |||||||||||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ 17,314 | $ 13,471 | $ 21,746 | $ 7,653 | $ 22,798 | $ 60,184 | $ 53,940 | |||||||||||
Weighted average number of shares: | ||||||||||||||||||||||
Basic (in shares) | 41,222,690 | 41,405,211 | 34,129,880 | |||||||||||||||||||
Diluted (in shares) | 41,315,149 | 41,527,584 | 34,243,456 | |||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | $ 1.55 | |||||||||||
Diluted (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | 0.52 | 1.42 | 1.55 | |||||||||||
Dividends declared and paid per share (in dollars per shares) | $ 1.00 | $ 1.00 | $ 0.88 | |||||||||||||||||||
|
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||||||||||||
Consolidated Statements of Comprehensive Income [Abstract] | |||||||||||||||||
Net income | $ 22,798 | $ 60,184 | $ 53,940 | ||||||||||||||
Other components of comprehensive income, net of tax: | |||||||||||||||||
Change in fair value of derivatives, net of deferred tax | [2],[3] | 158 | (3,238) | 22,093 | |||||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [4] | (130) | [3] | 0 | (1,302) | [3] | |||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [5] | 1,563 | [3] | 0 | 0 | ||||||||||||
Comprehensive income | $ 24,389 | $ 56,946 | $ 74,731 | ||||||||||||||
|
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Other components of comprehensive income, net of tax: | |||
Change in fair value of derivatives, deferred tax expense (benefit) | $ 300,000 | $ (600,000) | $ 3,500,000 |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | (19,000) | $ (200,000) | |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 200,000 |
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands |
Manager Shares [Member] |
Common Shares [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings (Deficit) [Member] |
Other Comprehensive Loss, Net [Member] |
Total |
||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (As Previously Reported [Member]) at Dec. 31, 2012 | $ 0 | $ 28 | $ 482,733 | $ 83,138 | $ (33,897) | $ 532,002 | ||||||||||||
Beginning balance (Adjustments [Member]) | 0 | 0 | 0 | (8,191) | 0 | (8,191) | ||||||||||||
Beginning balance at Dec. 31, 2012 | [1] | $ 0 | $ 28 | 482,733 | 74,947 | (33,897) | 523,811 | |||||||||||
Beginning balance (in shares) (As Previously Reported [Member]) at Dec. 31, 2012 | 100 | 28,040,305 | ||||||||||||||||
Beginning balance (in shares) at Dec. 31, 2012 | [1] | 100 | 28,040,305 | |||||||||||||||
Dividends to shareholders | $ 0 | $ 0 | 0 | (30,531) | 0 | (30,531) | ||||||||||||
Dividend equivalents | 0 | 0 | 0 | (940) | 0 | (940) | ||||||||||||
Shares issued in connection with public offering, net of expenses | $ 0 | $ 13 | 172,582 | 0 | 0 | 172,595 | ||||||||||||
Shares issued in connection with public offering, net of expenses (in shares) | 0 | 13,142,856 | ||||||||||||||||
Shares issued in connection with vested share grants | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||||||||||||
Shares issued in connection with vested share grants (in shares) | 0 | 122,534 | ||||||||||||||||
Shares issued in connection with SARs exercised | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||||||||||||
Shares issued in connection with SARs exercised (in shares) | 0 | 643 | ||||||||||||||||
Share-based compensation | $ 0 | $ 0 | 3,177 | 0 | 0 | 3,177 | ||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset | [2] | 0 | 0 | 0 | 0 | (747) | (747) | |||||||||||
Net income | As Previously Reported [Member] | 52,476 | |||||||||||||||||
Net income | Adjustments [Member] | 1,464 | |||||||||||||||||
Net income | [1] | 0 | 0 | 0 | 53,940 | 0 | 53,940 | |||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2] | 0 | 0 | 0 | 0 | 22,093 | 22,093 | [1],[3] | ||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [2] | 0 | 0 | 0 | 0 | (1,302) | (1,302) | [1],[4] | ||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1],[5] | 0 | ||||||||||||||||
Ending balance at Dec. 31, 2013 | [1] | $ 0 | $ 41 | 658,492 | 97,416 | (13,853) | 742,096 | |||||||||||
Ending balance (in shares) at Dec. 31, 2013 | [1] | 100 | 41,306,338 | |||||||||||||||
Dividends to shareholders | $ 0 | $ 0 | 0 | (41,392) | 0 | (41,392) | ||||||||||||
Dividend equivalents | 0 | 0 | 0 | (1,426) | (1,426) | |||||||||||||
Shares issued in connection with vested share grants | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||||||||||||
Shares issued in connection with vested share grants (in shares) | 0 | 119,666 | ||||||||||||||||
Shares issued in connection with SARs exercised | $ 0 | $ 0 | 0 | 0 | 0 | $ 0 | ||||||||||||
Shares issued in connection with SARs exercised (in shares) | 0 | 6,994 | ||||||||||||||||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | |||||||||||||||||
Share-based compensation | $ 0 | $ 0 | 30 | 0 | 0 | $ 30 | ||||||||||||
Net income | As Previously Reported [Member] | 56,077 | |||||||||||||||||
Net income | Adjustments [Member] | 4,107 | |||||||||||||||||
Net income | [1] | 0 | 0 | 0 | 60,184 | 0 | 60,184 | |||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2] | 0 | 0 | 0 | 0 | (3,238) | (3,238) | [1],[3] | ||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [1],[4] | 0 | ||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [1],[5] | 0 | ||||||||||||||||
Ending balance (As Previously Reported [Member]) at Dec. 31, 2014 | 758,874 | |||||||||||||||||
Ending balance at Dec. 31, 2014 | [1] | $ 0 | $ 41 | 658,522 | 114,782 | (17,091) | 756,254 | |||||||||||
Ending balance (in shares) at Dec. 31, 2014 | [1] | 100 | 41,432,998 | |||||||||||||||
Dividends to shareholders | $ 0 | $ 0 | 0 | (41,388) | 0 | (41,388) | ||||||||||||
Dividend equivalents | 0 | 0 | 0 | (1,054) | (1,054) | |||||||||||||
Shares issued in connection with vested share grants | $ 0 | $ 0 | 0 | 0 | 0 | 0 | ||||||||||||
Shares issued in connection with vested share grants (in shares) | 0 | 36,075 | ||||||||||||||||
Shares repurchased pursuant to share repurchase program | $ 0 | $ 0 | (5,529) | 0 | 0 | $ (5,529) | ||||||||||||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | (421,329) | (421,329) | |||||||||||||||
Shares repurchased pursuant to tender offer | $ 0 | $ (5) | (75,898) | 0 | 0 | $ (75,903) | ||||||||||||
Shares repurchased pursuant to tender offer (in shares) | 0 | (5,376,344) | ||||||||||||||||
Share-based compensation | $ 0 | $ 0 | 195 | 0 | 0 | 195 | ||||||||||||
Net income | 0 | 0 | 0 | 22,798 | 0 | 22,798 | ||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2] | 0 | 0 | 0 | 0 | 158 | 158 | [3] | ||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [2] | 0 | 0 | 0 | 0 | (130) | (130) | [4] | ||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [2] | 0 | 0 | 0 | 0 | 1,563 | 1,563 | [5] | ||||||||||
Ending balance at Dec. 31, 2015 | $ 0 | $ 36 | $ 577,290 | $ 95,138 | $ (15,500) | $ 656,964 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2015 | 100 | 35,671,400 | ||||||||||||||||
|
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Consolidated Statement of Shareholders' Equity [Abstract] | |||
Derivative instruments terminated in connection with aircraft sale, tax | $ (300,000) | ||
Change in fair value of derivatives, deferred tax expense (benefit) | $ 300,000 | $ (600,000) | 3,500,000 |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | (19,000) | $ (200,000) | |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 200,000 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Cash Flows from Operating Activities | |||||||
Net Income | $ 22,798 | $ 60,184 | [1] | $ 53,940 | [1] | ||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||
Equity in earnings from unconsolidated subsidiary | (1,159) | (3,562) | [1] | (1,491) | [1] | ||
Direct finance lease income | (299) | 0 | [1] | 0 | [1] | ||
Gain on sale of aircraft | (28,959) | (14,761) | [1] | (5,421) | [1] | ||
Depreciation | 159,732 | 166,983 | [1] | 138,336 | [1] | ||
Aircraft impairment | 66,093 | 1,200 | [1] | 6,166 | [1] | ||
Amortization of debt discounts and debt issuance costs | 11,922 | 12,516 | [1] | 11,680 | [1] | ||
Amortization of lease incentives | 20,527 | 18,934 | [1] | 9,019 | [1] | ||
Amortization of lease discounts/premiums and other items | 2,046 | 2,841 | [1] | 2,228 | [1] | ||
Amortization of GAAM acquisition date fair value adjustments | 3,650 | 6,260 | [1] | 12,602 | [1] | ||
Net loss (gain) on debt modification and extinguishment | 13,868 | (2,247) | [1] | (15,881) | [1] | ||
Share-based compensation | 195 | 30 | [1] | 3,177 | [1] | ||
Unrealized foreign exchange gain | (1,247) | 0 | [1] | 0 | [1] | ||
Provision for deferred income taxes | 4,919 | 5,733 | [1] | 4,534 | [1] | ||
Unrealized loss (gain) on derivative instruments | 4,134 | 38 | [1] | (1,263) | [1] | ||
Security deposits and maintenance payment liability recognized into earnings | (48,658) | (32,271) | [1] | (23,298) | [1] | ||
Security deposits and maintenance payment claims applied towards operating lease revenues | 0 | 0 | [1] | (2,596) | [1] | ||
Distributions from unconsolidated subsidiary | 0 | 5,501 | [1] | 0 | [1] | ||
Changes in operating assets and liabilities: | |||||||
Rent receivables | 6,814 | (4,767) | [1] | (4,982) | [1] | ||
Other assets | 137 | (1,589) | [1] | (1,969) | [1] | ||
Payable to related parties | (19,407) | (12,848) | [1] | (7,613) | [1] | ||
Accounts payable, accrued liabilities and other liabilities | (2,183) | 18,990 | [1] | 4,306 | [1] | ||
Net cash flows provided by operating activities | 214,923 | 227,165 | [1] | 181,474 | [1] | ||
Cash Flows from Investing Activities | |||||||
Distributions from (investment in) unconsolidated subsidiary | (2,009) | 1,132 | [1] | 0 | [1] | ||
Rent received from direct finance lease | 424 | 0 | [1] | 0 | [1] | ||
Investment in direct finance lease | (33,596) | 0 | [1] | 0 | [1] | ||
Purchase of flight equipment | (567,523) | (915,450) | [1] | (632,944) | [1] | ||
Proceeds from sale of aircraft, net | 1,110,046 | 88,617 | [1] | 48,539 | [1] | ||
Payments for aircraft improvement | (8,196) | (9,841) | [1] | 0 | [1] | ||
Payments for maintenance | (18,609) | (5,017) | [1] | (24,185) | [1] | ||
Net cash flows provided by (used in) investing activities | 480,537 | (840,559) | [1] | (608,590) | [1] | ||
Cash Flows from Financing Activities | |||||||
Restricted cash and cash equivalents | (35,794) | 35,690 | [1] | (39,731) | [1] | ||
Security deposits received | 13,914 | 18,134 | [1] | 13,910 | [1] | ||
Security deposits returned | (7,788) | (4,728) | [1] | (7,271) | [1] | ||
Maintenance payment liability receipts | 84,491 | 85,172 | [1] | 56,968 | [1] | ||
Maintenance payment liability disbursements | (38,768) | (45,412) | [1] | (16,612) | [1] | ||
Net swap termination payments | (3,737) | 0 | [1] | 0 | [1] | ||
Debt extinguishment costs | 0 | 0 | [1] | (3,856) | [1] | ||
Debt issuance costs | (933) | (1,803) | [1] | (11,825) | [1] | ||
Proceeds from unsecured borrowings | 0 | 396,563 | [1] | 291,389 | [1] | ||
Proceeds from secured borrowings | 147,276 | 298,658 | [1] | 688,975 | [1] | ||
Repayment of secured borrowings | (791,385) | (192,974) | [1] | (444,607) | [1] | ||
Proceeds from issuance of shares, net of fees paid | 0 | 0 | [1] | 172,595 | [1] | ||
Shares repurchased | (81,432) | 0 | [1] | 0 | [1] | ||
Dividends paid | (41,388) | (41,392) | [1] | (30,531) | [1] | ||
Dividend equivalents | (1,054) | (1,426) | [1] | (940) | [1] | ||
Net cash flows (used in) provided by financing activities | (756,598) | 546,482 | [1] | 668,464 | [1] | ||
Effect of exchange rate changes on cash and cash equivalents | (424) | 0 | [1] | 0 | [1] | ||
Net increase (decrease) in cash and cash equivalents | (61,562) | (66,912) | [1] | 241,348 | [1] | ||
Cash and cash equivalents at beginning of year | [1] | 337,560 | 404,472 | 163,124 | |||
Cash and cash equivalents at end of year | 275,998 | 337,560 | [1] | 404,472 | [1] | ||
Cash paid during the year for: | |||||||
Interest | 132,780 | 119,745 | [1] | 97,481 | [1] | ||
Taxes | 384 | 188 | [1] | 84 | [1] | ||
Noncash Activities: | |||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 3,292 | 1,938 | [1] | 1,414 | [1] | ||
Maintenance payment liability applied to rent receivables and rentals received in advance | 2,523 | 0 | [1] | 4,446 | [1] | ||
Other liabilities applied to maintenance payment liability and rent receivables | 240 | 979 | [1] | 0 | [1] | ||
Noncash investing activities: | |||||||
Aircraft improvement | 1,587 | 2,882 | [1] | 2,334 | [1] | ||
Noncash activities in connection with purchase of aircraft | 19,382 | 26,002 | [1] | 1,774 | [1] | ||
Noncash activities in connection with sale of aircraft | $ 93,819 | $ 12,479 | [1] | $ 43,500 | [1] | ||
|
ORGANIZATION |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 | |||
ORGANIZATION [Abstract] | |||
ORGANIZATION |
Fly Leasing Limited (the "Company" or "Fly") is a Bermuda exempted company that was incorporated on May 3, 2007, under the provisions of Section 14 of the Companies Act 1981 of Bermuda. The Company was formed to acquire, finance, lease and sell commercial jet aircraft directly or indirectly through its subsidiaries. Although the Company is organized under the laws of Bermuda, it is a resident of Ireland for tax purposes and is subject to Irish corporation tax on its income in the same way, and to the same extent, as if the Company were organized under the laws of Ireland. In accordance with the Company's amended and restated bye-laws, Fly issued 100 shares ("Manager Shares") with a par value of $0.001 to Fly Leasing Management Co. Limited (the "Manager") for no consideration. Subject to the provisions of the Company's amended and restated bye-laws, the Manager Shares have the right to appoint the nearest whole number of directors to the Company which is not more than 3/7th of the number of directors comprising the board of directors. The Manager Shares are not entitled to receive any dividends, are not convertible into common shares and, except as provided for in the Company's amended and restated bye-laws, have no voting rights. |
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS |
The Company has determined that its financial statements for the years ended December 31, 2014 and 2013 and for prior years contained errors resulting from the incorrect accounting for aircraft purchased with in-place leases. The Company previously did not identify, measure and account for maintenance rights acquired. The Company has restated the accompanying 2014 and 2013 financial statements to make the necessary accounting adjustments to recognize maintenance rights. Accordingly, the Company has restated its consolidated balance sheet as of December 31, 2014 and the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for the years ended December 31, 2014 and 2013, including the cumulative impact of the adjustments for periods prior to January 1, 2013. The cumulative adjustments to correct the errors in the consolidated financial statements for all periods prior to January 1, 2013 are recorded as adjustments to retained earnings at January 1, 2013 as shown in the consolidated statements of shareholders' equity. The cumulative effect of those adjustments decreased previously reported retained earnings by $8.2 million at January 1, 2013 (dollars in thousands).
The Company now identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft with in-place leases. A maintenance right asset represents the fair value of the Company's contractual right under a lease to receive an aircraft in an improved maintenance condition as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company's obligation to pay the lessee for the difference between the lease end contractual maintenance condition of the aircraft and the actual maintenance condition of the aircraft on the acquisition date. The Company's aircraft are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in the Company's leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases). EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft into a specified maintenance condition. Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft in an improved maintenance condition as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft is greater than the contractual return condition in the lease and the Company is required to pay the lessee in cash for the improved maintenance condition. Maintenance right assets, net are recorded as a separate line item on the Company's balance sheet. When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company's capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income consistent with the Company's existing policy; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company's capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with the Company's policy with respect to major maintenance. When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement. MR Leases Under MR Leases, the lessee is required to make periodic payments to the Company for maintenance based upon usage of the aircraft. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee. Maintenance right assets in MR Leases represent the right to receive an aircraft in an improved condition relative to the actual condition on the acquisition date. The aircraft is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives. Maintenance right assets, net will be recorded as a separate line item on the Company's balance sheet. When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income, which is consistent with the Company's existing policy; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded. Under MR Leases, the Company does not record a maintenance right liability because it has no obligation to make payments to the lessee, beyond reimbursement of maintenance payment liabilities or payment of lease incentive obligations, which are already recorded in the Company's financial statements. Effects of Restatement As a result of the accounting adjustments in the Company's financial statements for the years ended December 31, 2014 and 2013, the net book values of the Company's aircraft as previously reported have been restated, and a net maintenance right asset recorded, which has impacted the amount of end of lease income, gains on sale of aircraft, depreciation expense, impairment, debt extinguishment and provision for income taxes recorded in prior years. These amounts have also been restated. The Company has also made other adjustments related to immaterial errors including certain corrections that had been previously identified but not recorded because they were immaterial, individually and in the aggregate, to the Company's consolidated financial statements. These corrections included reclassification of loan fees to unamortized debt discounts and adjustments to (i) expense acquisition fees related to aircraft purchased with in-place leases, (ii) record an impairment charge on one aircraft, (iii) recognize rental income previously deferred, (iv) defer equity in earnings from the Company's unconsolidated subsidiary, (v) record the associated income tax effect of items (i) through (iv) and (vi) record deferred tax asset valuation allowance. While none of these other adjustments were individually material, they have been made as part of the restatement process. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. Such reclassification has had no impact on consolidated net income or shareholders' equity. The following tables set forth the correction to each of the individual affected line items in the consolidated balance sheet as of December 31, 2014 and the related consolidated statements of income for the years ended December 31, 2014 and 2013. The restated amounts presented below reflect the impact of these corrections. The Company did not present tables for the adjustments for the Consolidated Statements of Cash Flows since all of the adjustments were within the operating section of the Consolidated Statements of Cash Flows. The above adjustments did not affect total cash flows from operating activities, financing activities or investing activities for any period presented. Consolidated Balance Sheet AT DECEMBER 31, 2014 (Dollars in thousands, except par value data)
Consolidated Statements of Income FOR THE YEAR ENDED DECEMBER 31, 2014 (Dollars in thousands, except per share data)
FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in thousands, except per share data)
Consolidated Statements of Shareholders' Equity FOR THE YEARS ENDED DECEMBER 31, 2013, 2014 AND 2015 (Dollars in thousands)
Consolidated Statements of Cash Flows FOR THE YEAR ENDED DECEMBER 31, 2014 (Dollars in thousands)
FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in thousands)
The financial information included in the accompanying financial statements and notes thereto reflects the effect of the corrections described in the preceding discussion and tables. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | |||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PREPARATION Fly is a holding company that conducts its business through its subsidiaries. The Company directly or indirectly owns all of the common shares of its consolidated subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of Fly and all of its subsidiaries. In instances where it is the primary beneficiary, Fly will consolidate a Variable Interest Entity ("VIE"). Fly is deemed the primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the economic performance of such VIE, and it bears the significant risk of loss and participates in gains of the VIE. All intercompany transactions and balances have been eliminated. The consolidated financial statements are stated in U.S. Dollars, which is the principal operating currency of the Company. The Company has one operating and reportable segment which is aircraft leasing. Certain amounts in prior period consolidated financial statements have been reclassified to conform to the current period presentation. Such reclassification has had no impact on consolidated net income or shareholders' equity. RESTATEMENT OF PRIOR FINANCIAL STATEMENTS The Company has restated its previously reported consolidated financial statements as of and for the years ended December 31, 2014 and 2013, including the opening shareholders' equity balance, in order to reflect the accounting adjustments made as a result of the recognition of maintenance rights associated with the acquisition of aircraft with in-place leases. The Company has also made other adjustments related to immaterial errors including certain corrections that had been previously identified but not recorded because they were immaterial, individually and in the aggregate, to the Company's consolidated financial statements. These corrections included reclassification of loan fees to unamortized debt discounts and adjustments to (i) expense acquisition fees related to aircraft purchased with in-place leases, (ii) record an impairment charge on one aircraft, (iii) recognize rental income previously deferred, (iv) defer equity in earnings from the Company's unconsolidated subsidiary, (v) record the associated income tax effect of items (i) through (iv) and (vi) record deferred tax asset valuation allowance. While none of these other adjustments were individually material, they have been made as part of the restatement process. Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. Such reclassification has had no impact on consolidated net income or shareholders' equity. USE OF ESTIMATES The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The use of estimates is or could be a significant factor affecting the reported carrying values of flight equipment, deferred tax assets, liabilities, accruals and reserves. To the extent available, the Company utilizes industry specific resources, third-party appraisers and other materials to support management's estimates, particularly with respect to flight equipment. Despite management's best efforts to accurately estimate such amounts, actual results could differ from those estimates. RISKS AND UNCERTAINTIES The Company encounters several types of risk during the course of its business, including credit and market risks. Credit risk addresses a lessee's or derivative counterparty's inability or unwillingness to make contractually required payments. Market risk reflects the change in the value of derivatives and credit facilities due to changes in interest rate spreads or other market factors, including the value of collateral underlying the Company's credit facilities. Other types of risk encountered by the Company include the following:
CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. RESTRICTED CASH AND CASH EQUIVALENTS The Company's restricted cash and cash equivalents consist primarily of (i) security deposits and certain maintenance payments received from lessees under the terms of various lease agreements, (ii) a portion of rents collected which may be required to be held as cash collateral under certain of the Company's debt facilities and (iii) other cash, which may be subject to withdrawal restrictions pursuant to the Company's credit agreements or its deferred tax arrangements. All restricted cash is held by major financial institutions in segregated accounts. RENT RECEIVABLES Rent receivables represent unpaid lessee obligations under existing lease contracts. Any allowance for doubtful accounts is established on a specific identification basis and is maintained at a level believed by management to be adequate to absorb probable losses associated with rent receivables. The assessment of credit risk is primarily based on the extent to which amounts outstanding exceed the value of security held, the financial strength and condition of a debtor and the current economic and regulatory conditions of the debtor's operating environment. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows and consideration of current factors and economic trends impacting the lessees and their credit worthiness, all of which may be susceptible to significant change. Uncollectible rent receivables are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is recorded based on management's periodic evaluation of the factors previously mentioned, as well as other pertinent factors. As of December 31, 2015 and 2014, the Company had no allowance for doubtful accounts. In addition, the Company places a lessee on non-accrual status once it determines that it is no longer probable that the Company will receive the economic benefits of the lease. The Company recognizes revenue from a lessee on non-accrual status only as cash is received. INVESTMENT IN UNCONSOLIDATED SUBSIDIARY Fly has a 57.4% interest in Fly-Z/C Aircraft Holdings LP ("Fly-Z/C LP"). Fly accounts for its interest in the unconsolidated subsidiary using the equity method as the Company does not control the entity. Under the equity method, the Company's investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated subsidiary's undistributed earnings and losses, and distributions of dividends and capital. The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiary, or whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification. INVESTMENT IN DIRECT FINANCE LEASE The Company has recorded one lease as an investment in direct finance lease. The investment in the direct finance lease equals the sum of amounts to be received under the lease, plus the estimated residual value of the equipment at the lease termination date, less unearned income. Residual value reflects management's estimate of the amounts to be received at lease termination from the re-lease or disposition of the leased equipment. Initial unearned income represents the amount by which the original sum of the lease receivable and the estimated residual value exceeds the original cost of the leased equipment. Unearned income is recognized as finance lease income over the lease term in a manner that produces a constant rate of return on the net investment in the lease based on an implicit interest rate. Initial direct costs and fees related to lease originations are deferred as part of the investment and amortized over the lease term. FLIGHT EQUIPMENT HELD FOR SALE In accordance with guidance provided by the Financial Accounting Standards Board ("FASB"), flight equipment is classified as held for sale when the Company commits to and commences a plan of sale that is reasonably expected to be completed within one year and satisfies certain other held for sale criteria. Flight equipment held for sale is recorded at the lesser of carrying value or fair value, less estimated cost to sell. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. Rent collected from the sale contract date through the aircraft disposition date reduces the sale proceeds and gain on sale of aircraft. Imputed interest earned from the sale contract date through the aircraft disposition date increases the selling price of an aircraft. In addition, depreciation ceases once an aircraft is classified as held for sale. An impairment loss is recorded for an asset or asset group held for sale when the carrying value of the asset or asset group exceeds its fair value, less estimated cost to sell. An aircraft classified as held for sale is not depreciated. Subsequent changes to the asset's fair value are recorded as adjustments to the carrying value of the flight equipment. However, any such adjustment will not cause the asset's fair value to exceed its original carrying value. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. FLIGHT EQUIPMENT HELD FOR OPERATING LEASE Flight equipment held for operating lease are recorded at cost and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of the original manufacturer's estimated realized price for the flight equipment when new. Management may, at its discretion, make exceptions to this policy on a case by case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of residual values. Examples of such situations include, but are not limited to:
Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, during each reporting period. Major aircraft improvements or lessee-specific modifications to the aircraft to be performed by the Company pursuant to any lease agreement are accounted for as lease incentives and amortized against revenue over the term of the lease, assuming no lease renewals. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination. Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the remaining life of the flight equipment. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. At the time of an aircraft acquisition, the Company evaluates the fair value of the aircraft, maintenance right and lease acquired. The Company evaluates whether the lease acquired with the aircraft is at fair value by comparing the contractual lease rates to the range of current lease rates of like aircraft. A lease premium is recognized when it is determined that the acquired lease's terms are above market value; lease discounts are recognized when it is determined that the acquired lease's terms are below fair value. Lease discounts are recorded in other liabilities and accreted as additional rental revenue on a straight-line basis over the lease term. Lease premiums are recorded in other assets and amortized against rental revenue on a straight-line basis over the lease term. IMPAIRMENT OF FLIGHT EQUIPMENT The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company's evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft, adverse changes in market conditions for specific aircraft types, third party appraisals of aircraft, published values for similar aircraft, any occurrence of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of the Company's aircraft. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value. Future cash flows are assumed to occur under current market conditions and assume adequate time for a sale between a willing and able buyer and a willing seller. Expected future lease rates are based on all relevant information available, including the existing lease, current contracted rates for similar aircraft, appraisal data and industry trends. Residual value assumptions generally reflect an aircraft's salvage value, except where more recent industry information indicates a different value is appropriate. The preparation of these impairment analyses requires the use of assumptions and estimates, including the level of future rents, the residual value of the flight equipment to be realized upon sale at some date in the future, estimated downtime between re-leasing events and the amount of re-leasing costs. MAINTENANCE RIGHTS The Company identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft with in-place leases. A maintenance right asset represents the fair value of its contractual right under a lease to receive an aircraft in an improved maintenance condition as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company's obligation to pay the lessee for the difference between the lease end contractual maintenance condition of the aircraft and the actual maintenance condition of the aircraft on the acquisition date. The Company's aircraft are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in its leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases). EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft into a specified maintenance condition. Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft in an improved maintenance condition as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft is greater than the contractual return condition in the lease and the Company is required to pay the lessee in cash for the improved maintenance condition. Maintenance right assets, net are recorded as a separate line item on the Company's balance sheet. When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company's capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income consistent with our existing policy; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company's capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with our policy with respect to major maintenance. When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement. MR Leases Under MR Leases, the lessee is required to make periodic payments to us for maintenance based upon usage of the aircraft. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee. Maintenance right assets in MR Leases represent the right to receive an aircraft in an improved condition relative to the actual condition on the acquisition date. The aircraft is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives. Maintenance right assets, net will be recorded as a separate line item on the Company's balance sheet. When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income, which is consistent with the Company's existing policy; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded. There are no maintenance right liabilities for MR Leases. When flight equipment is sold, maintenance rights are released from the balance sheet as part of the disposition gain or loss. DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to manage its exposure to interest rate and foreign currency risks. All derivatives are recognized on the balance sheet at their fair values. Pursuant to hedge accounting provisions, changes in the fair value of the item being hedged are recognized into earnings in the same period and in the same income statement line as the change in the fair value of the derivative instrument. On the date that the Company enters into a derivative contract, the Company formally documents all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for undertaking each hedge transaction. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability. Changes in the fair value of a derivative that is designated and qualifies as an effective cash flow hedge are recorded in accumulated other comprehensive income, net of tax, until earnings are affected by the variability of cash flows of the hedged item. Any derivative gains and losses that are not effective in hedging the variability of expected cash flows of the hedged item or that do not qualify for hedge accounting treatment are recognized directly into income. At the hedge's inception and at least every reporting period thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair market value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction. OTHER ASSETS Other assets consist primarily of debt issuance costs, unamortized lease premiums, initial direct lease costs and other miscellaneous receivables. The Company records costs incurred in arranging financing as debt issuance costs. Debt issuance costs are amortized to interest expense using the effective interest method over the terms of the credit facilities. Lease premiums are amortized into operating lease income over the lease term. SECURITY DEPOSITS In the normal course of leasing aircraft to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease. MAINTENANCE PAYMENT LIABILITY The Company's flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly's operating leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration and airworthiness directives. Under the terms of the lease agreements, cash collected from lessees for future maintenance of the aircraft is recorded as maintenance payment liabilities. The Company does not recognize such maintenance payments as revenue during the lease. Maintenance payment liabilities are attributable to specific aircraft and are typically based on hours or cycles of utilization, depending upon the component. Upon the occurrence of qualified maintenance events, the lessee submits a request for reimbursement and upon disbursement of the funds, the liability is relieved. In some leases, the lessor may be obligated to contribute to maintenance related expenses on an aircraft during the term of the lease. In other instances, the lessee or lessor may be obligated to make a payment to the other party at lease termination based on a computation stipulated in the lease agreement. The calculation is based on utilization and condition of the airframe, engines and other major life-limited components as determined at lease termination. The Company may also incur maintenance expenses on off-lease aircraft. Scheduled major maintenance or overhaul activities and costs for certain high-value components that are paid by the Company are capitalized and depreciated over the period until the next overhaul is required. Such payments made by the Company for minor maintenance, repairs and re-leasing of aircraft are expensed as incurred. Maintenance payment liability balances at the end of a lease or any amount received as part of a redelivery adjustment are recorded as lease revenue at lease termination, including early termination upon a default. When flight equipment is sold, the maintenance payment liability amounts may be remitted to the buyer in accordance with the terms of the related agreements and are released from the balance sheet as part of the disposition gain or loss. REVENUE RECOGNITION Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Where revenue amounts do not meet these recognition criteria, recognition is delayed until the criteria are met.
SHARE-BASED COMPENSATION The Company has a 2010 Omnibus Incentive Plan ("2010 Plan") permitting the issuance of up to 1,500,000 share grants in the form of (i) stock appreciation rights ("SARs"); (ii) restricted stock units ("RSUs"); (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. Compensation expense associated with grants to employees were valued at the grant date and amortized on a straight-line basis over the service period. Grants to non-employees were initially measured at grant date, and then re-measured at each interim reporting period until the awards vested. Determining the appropriate fair value model and calculation of the fair value of stock-based awards required judgment, including estimating stock price volatility, forfeitures and expected grant life. TAXES The Company provides for income taxes by tax jurisdiction. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statements and tax basis of existing assets and liabilities at the enacted tax rates expected to apply when the assets are recovered or liabilities are settled. A valuation allowance is used to reduce deferred tax assets to the amount which management ultimately expects to be more-likely-than-not realized. The Company applies a recognition threshold of more-likely-than-not to be sustained in the examination of income tax on uncertainties. The Company has elected to classify any interest on unpaid income taxes and penalties as a component of the provision for income taxes. No interest on unpaid income taxes and penalties were incurred during the years ended December 31, 2015, 2014 and 2013. NEW ACCOUNTING PRONOUNCEMENTS In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. The guidance specifically notes that lease contracts with customers are a scope exception. In August 2015, FASB issued ASU 2015-14, deferring the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606), by one year for all entities and permitting early adoption on a limited basis. Specifically, for public business entities, the standard will be effective for annual reporting periods (including interim periods) beginning after December 15, 2017. Early adoption will be permitted as of the annual reporting period (including interim periods) beginning after December 15, 2016. The Company will adopt the guidance effective January 1, 2018. The Company anticipates that the adoption of the standard will not have a material effect on the Company's consolidated financial condition, results of operations or cash flows. In August 2014, FASB issued ASU 2014-15, update to Accounting Standards Codification (ASC) subtopic 250-40, Presentation of Financial Statements-Going Concern. The amendments require management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in the U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term "substantial doubt", (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management's plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 will be effective for annual reporting periods (including interim periods) ending after December 15, 2016, and early adoption is permitted. The Company will adopt the guidance effective January 1, 2017. The Company is currently assessing the impact of the guidance. In January 2015, FASB issued ASU 2015-01, Extraordinary and Unusual Items, which eliminates the concept of an extraordinary item from U.S. GAAP. As a result, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, the ASU does not affect the reporting and disclosure requirements for an event that is unusual in nature or that occurs infrequently. ASU 2015-01 is effective for annual reporting periods (including interim periods), beginning after December 15, 2015, and early adoption is permitted. The Company adopted the guidance effective January 1, 2016. The Company anticipates that the adoption of the standard will not have a material effect on the Company's consolidated financial condition, results of operations or cash flows. In February 2015, FASB issued ASU 2015-02, which amends ASC 810, Consolidation. The amendment changes the consolidation analysis required under U.S. GAAP and could have an impact on the consolidation conclusions of the reporting entity. Specifically, the amendment affects the consolidation analysis of reporting entities that are involved with Variable Interest Entities, particularly those that have fee arrangements and related party transactions. ASU 2015-02 is effective for annual reporting periods (including interim periods), beginning after December 15, 2015, and early adoption is permitted. The Company adopted the guidance effective January 1, 2016. The Company anticipates that the adoption of the standard will not have a material effect on the Company's consolidated financial condition, results of operations or cash flows. In April 2015, FASB issued ASU 2015-03, Interest - Imputation of Interest, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the accounting treatment for debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by this update. The Company adopted the guidance effective January 1, 2016. The Company anticipates that the adoption of the standard will not have an effect on the Company's consolidated financial condition, results of operations or cash flows. In February 2016, FASB issued its new lease standard, ASU 2016-02, Leases. Under the new standard, the accounting for leases by lessors would basically remain unchanged from the existing concepts in ASC 840, Leases. In addition, FASB has decided that lessors would be precluded from recognizing selling profit and revenue at lease commencement for any sales-type or direct finance lease that does not transfer control of the underlying asset to the lessee. The standard will be effective for public business entities for annual periods (including interim periods), beginning after December 15, 2018, and early adoption will be permitted. The Company is currently evaluating the potential impact the adoption of the standard will have on its consolidated financial condition, results of operations or cash flows. |
INVESTMENT IN DIRECT FINANCE LEASE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT IN DIRECT FINANCE LEASE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT IN DIRECT FINANCE LEASE |
At December 31, 2015, the Company's investment in direct finance lease is attributable to one aircraft which is on lease to a European lessee with a remaining lease term of approximately ten years. During the year ended December 31, 2015, the Company recognized finance lease income totaling $0.3 million. The implicit interest rate in the finance lease is 10%. The Company's net investment in direct finance lease consisted of the following:
Presented below are the contracted future minimum rental payments due under non-cancellable finance lease, as of December 31, 2015.
|
FLIGHT EQUIPMENT HELD FOR SALE |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 | |||
FLIGHT EQUIPMENT HELD FOR SALE [Abstract] | |||
FLIGHT EQUIPMENT HELD FOR SALE |
In 2015, the Company agreed to sell 45 aircraft in two portfolio sales (the "Sale Transactions"). As of December 31, 2015, the Company had delivered 32 of these aircraft to the purchasers and recognized a gain on sale of aircraft of $33.0 million. One aircraft was removed from the Sale Transactions and was sold to an independent purchaser in 2016. As of December 31, 2015, the Company had 13 aircraft held for sale with a total net book value of $237.3 million. There was no flight equipment held for sale as of December 31, 2014. |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FLIGHT EQUIPMENT HELD FOR OPERATING LEASES |
As of December 31, 2015, the Company had 79 aircraft held for operating lease. Of these aircraft, 77 were on lease to 43 lessees in 27 countries, and two aircraft were off-lease. As of December 31, 2014, the Company had 127 aircraft held for operating lease. Of these aircraft, 124 were on lease to 64 lessees in 36 countries, and three aircraft were off-lease. During the year ended December 31, 2015, the Company purchased nine aircraft held for operating lease, and capitalized $585.4 million. During the year ended December 31, 2014, the Company purchased 22 aircraft and capitalized $906.4 million. During the year ended December 31, 2015, the Company sold 12 aircraft held for operating lease and recognized a loss on sale of aircraft of $4.0 million. During the year ended December 31, 2014, the Company sold eight aircraft held for operating lease, six of which generated a gain on sale of aircraft of $14.8 million. The Company recorded a gain on debt extinguishment of $2.3 million in connection with the sale of the other two aircraft. The sale proceeds were paid to the lenders as full and final discharge of the loans secured by these two aircraft. During the year ended December 31, 2013, the Company sold ten aircraft and recognized a gain on sale of aircraft of $5.4 million. The buyer of six of the aircraft sold in 2013 also assumed the underlying debt financing and derivative instruments associated with the aircraft. The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amount of such asset may not be recoverable. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying value of the flight equipment exceeds the fair value and an impairment loss is required. The undiscounted cash flows is the sum of the current contracted lease rates, future projected lease rates, transition costs, estimated down time and estimated residual or scrap value for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount over the fair value of the impaired asset. During the year ended December 31, 2015, the Company recognized aircraft impairment of $66.1 million. The impairment charge related to three wide-body aircraft nearing the end of their economic lives and 11 narrow-body aircraft, five of which were classified as flight equipment held for sale. During the year ended December 31, 2014, the Company recognized aircraft impairment of $1.2 million in respect of a wide-body aircraft. This aircraft was sold during the first quarter of 2016. For the year ended December 31, 2013, the Company recognized an impairment loss of $6.2 million in respect of a narrow-body aircraft. This aircraft was sold during the third quarter of 2014. Flight equipment held for operating lease consists of the following:
The Company capitalized $26.1 million and $4.6 million of major maintenance expenditures for the years ended December 31, 2015 and 2014, respectively. Of the amount capitalized in 2015, $16.6 million was included in flight equipment held for operating lease, and $9.5 million was included in flight equipment held for sale. In 2015, the Company terminated the leases in respect of two aircraft on lease to a Russian lessee and repossessed the aircraft pursuant to an order granted by the English court. The aircraft were redelivered to the Company and were subsequently sold in 2015. In 2015, the Company terminated the lease in respect of one aircraft on lease to an Indian lessee. The aircraft continued to be in possession of and flown by such lessee after the termination of the lease. In July 2015, the Indian lessee was recapitalized. The Company now leases two aircraft to this airline. The classification of the net book value of flight equipment held for operating lease, net and operating lease revenues by geographic region in the tables and discussion below is based on the principal operating location of the lessees. The distribution of the net book value of flight equipment held for operating lease by geographic region is as follows:
The distribution of operating lease revenue by geographic region for the years ended December 31, 2015, 2014 and 2013 is as follows:
The Company had no customer that accounted for 10% or more of total operating lease revenue for any of the years ended December 31, 2015, 2014 and 2013. At December 31, 2015, the Company had two lessees, which leased three aircraft, on non-accrual status, as the Company had determined that it was not probable that the economic benefits of the lease would be received by the Company, principally due to (i) the lessee's failure to pay rent and overhaul payments and (ii) the Company's evaluation of the lessee's payment history. At December 31, 2014 and 2013, the Company had two lessees and one lessee, respectively, on non-accrual status. For the years ended December 31, 2015, 2014 and 2013, the Company recognized end of lease revenues totaling $53.8 million, $41.7 million and $39.5 million, respectively. The amortization of lease premiums, net of lease discounts which have been included as a component of operating lease revenue, was $1.4 million, $3.0 million and $3.4 million for the years ended December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015 and 2014, the weighted average remaining lease term of the Company's aircraft held for operating lease was 6.6 years and 5.4 years, respectively. Presented below are the contracted future minimum rental payments due under non-cancellable operating leases, as of December 31, 2015. For leases that have floating rental rates based on either the one, three or six-month LIBOR, the future minimum rental payments due assume that the rental payment due as of December 31, 2015 is held constant for the duration of the lease.
For the years ended December 31, 2015, 2014 and 2013, amortization of lease incentives recorded as a reduction of operating lease revenue totaled $20.5 million, $18.9 million and $9.0 million, respectively. At December 31, 2015, lease incentive amortization for the next five years and thereafter is as follows:
|
MAINTENANCE RIGHTS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAINTENANCE RIGHTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAINTENANCE RIGHTS |
Changes in maintenance right assets, net of maintenance right liabilities, during the years ended December 31, 2015 and 2014 were as follows:
|
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 | |||
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY [Abstract] | |||
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY |
The Company has a 57.4% limited partnership interest in Fly-Z/C LP. Summit Aviation Partners LLC ("Summit") has a 10.2% interest in the joint venture and the limited partners appointed a subsidiary of BBAM Limited Partnership ("BBAM LP") as the general partner of the joint venture. For the years ended December 31, 2015, 2014 and 2013, the Company recognized $1.2 million, $3.6 million and $1.5 million, respectively, in equity earnings from its investment in Fly-Z/C LP. During the year ended December 31, 2015, the Company contributed $2.0 million into Fly-Z/C LP and received no distributions. The Company received distributions totaling $6.6 million during the year ended December 31, 2014. The Company did not receive any distributions during the year ended December 31, 2013. |
OTHER ASSETS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS |
The principal components of the Company's other assets are as follows:
For the years ended December 31, 2015, 2014 and 2013, the Company amortized $3.5 million, $4.5 million (restated) and $4.1 million (restated), respectively, of loan issuance cost into interest expense. |
UNSECURED BORROWINGS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNSECURED BORROWINGS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNSECURED BORROWINGS |
On December 11, 2013, the Company sold $300.0 million aggregate principal amount of unsecured 6.75% Senior Notes due 2020 (together with the Additional 2020 Notes (as defined below), the "2020 Notes"). In connection with the issuance, the Company paid an underwriting discount totaling $8.5 million. On October 3, 2014, the Company sold $75.0 million aggregate principal amount of unsecured 6.75% Senior Notes due 2020 (the "Additional 2020 Notes") and $325.0 million aggregate principal amount of 6.375% Senior Notes due 2021 (the "2021 Notes"). The Additional 2020 Notes were issued as additional notes under the 2020 Notes indenture, and were sold at a price equal to 104.75% of the principal amount thereof. The 2021 Notes were issued under an indenture containing substantially similar terms as the indenture governing the 2020 Notes and were sold at par. The Company received net cash proceeds of $396.6 million after deducting the underwriting discounts. The 2020 Notes and 2021 Notes are unsecured obligations of the Company and rank pari passu in right of payment with any existing and future senior indebtedness of the Company. The 2020 Notes have a maturity date of December 15, 2020 and the 2021 Notes have a maturity date of October 15, 2021. Interest on the 2020 Notes is payable semi-annually on June 15 and December 15 of each year. As of each of December 31, 2015 and 2014, accrued interest on the 2020 Notes totaled $1.1 million. Interest on the 2021 Notes is payable semi-annually on April 15 and October 15 of each year. As of December 31, 2015 and 2014, accrued interest on the 2021 Notes totaled $4.4 million and $5.1 million, respectively. Pursuant to the indentures governing the 2020 Notes and 2021 Notes, the Company is subject to restrictive covenants which relate to dividend payments, incurrence of debt and issuance of guarantees, incurrence of liens, repurchases of common shares, investments, disposition of aircraft, consolidation, merger or sale of the Company and transactions with affiliates. The Company is also subject to certain operating covenants, including reporting requirements. The Company's failure to comply with any of the covenants under the indentures governing the 2020 Notes or 2021 Notes could result in an event of default which, if not cured or waived, may result in the acceleration of the indebtedness thereunder and other indebtedness containing cross-default or cross-acceleration provisions. Certain of these covenants will be suspended if the 2020 Notes or 2021 Notes obtain an investment grade rating. At any time prior to December 15, 2016, the Company may redeem up to 35% of the original principal amount of the 2020 Notes with the proceeds of certain equity offerings at a redemption price of 106.75% of the principal amount thereof, together with accrued and unpaid interest to, but not including, the date of redemption. On and after December 15, 2016, the Company may redeem the 2020 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date.
At any time prior to December 15, 2016, the Company may also redeem all or a portion of the 2020 Notes at par, plus accrued and unpaid interest to the redemption date and a "make-whole premium" equal to the present value of all future interest payments called for under the indenture. At any time prior to October 15, 2017, the Company may redeem up to 35% of the original principal amount of the 2021 Notes with the proceeds of certain equity offerings at a redemption price of 106.375% of the principal amount thereof, together with accrued and unpaid interest to, but not including, the date of redemption. On and after October 15, 2017, the Company may redeem the 2021 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date.
At any time prior to October 15, 2017, the Company may also redeem all or a portion of the 2021 Notes at par, plus accrued and unpaid interest to the redemption date and a "make-whole premium" equal to the present value of all future interest payments called for under the indenture. Should the Company experience a change of control (as defined in the indenture), holders of the 2020 Notes and the 2021 Notes have the right to require the Company to repurchase all or any part of their 2020 Notes and 2021 Notes for payment in cash equal to 101% of the aggregate principal amount of the 2020 Notes and 2021 Notes repurchased plus accrued and unpaid interest. The indentures governing the 2020 Notes and the 2021 Notes contain customary events of default with respect to the notes of each series, including (i) default in payment when due and payable of principal or premium, (ii) default for 30 days or more in payment when due of interest, (iii) failure by us or any restricted subsidiary for 60 days after receipt of written notice given by the trustee or the holders of at least 25% in aggregate principal amount of the notes of such series then issued and outstanding to comply with any of the other agreements under the indenture, (iv) default in any of the aircraft owning entities in respect of obligations in excess of $50.0 million, which holders of such obligation accelerate or demand repayment of amounts due thereunder, (v) failure by us or any significant subsidiary to pay final judgments aggregating in excess of $50.0 million for 60 days after such judgment becomes final, subject to certain non-recourse exceptions, and (vi) certain events of bankruptcy or insolvency with respect to us or a significant subsidiary. As of December 31, 2015, the Company was not in default under the indentures governing the 2020 Notes or the 2021 Notes. |
SECURED BORROWINGS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURED BORROWINGS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURED BORROWINGS |
The Company's secured borrowings balance, net of unamortized debt discounts, as of December 31, 2015 is presented below:
The Company is subject to restrictive covenants under its secured borrowings including, among other things:
The Company's failure to comply with any of these restrictive covenants, or any other financial or operating covenants, may trigger an event of default under the relevant loan or facility agreement. Certain of the Company's loan agreements also contain cross-acceleration or cross-default provisions that could be triggered by an acceleration or a default under another loan agreement. Generally, events of default under the Company's loan or facility agreements include, among other things:
As of December 31, 2015, the Company was not in default under any of its secured borrowings. Securitization Notes
On October 2, 2007, concurrently with the Company's initial public offering, B&B Air Funding issued $853.0 million of aircraft lease-backed Class G-1 notes (the "Securitization Notes") at an offering price of 99.71282%. The Securitization Notes are direct obligations of B&B Air Funding and are not obligations of, or guaranteed by, Fly. At December 31, 2015, 18 aircraft were financed by the Securitization Notes, four of which were held for sale. The final maturity date of the Securitization Notes is November 14, 2033. The Securitization Notes bear interest at an adjustable interest rate equal to the current one-month LIBOR plus 0.77%. Interest expense also includes amounts payable to the provider of a financial guaranty insurance policy and the liquidity facility provider thereunder, as well as accretion on the Securitization Notes re-issued at a discount. Interest and any principal payments due are payable monthly. The Company has entered into interest rate swap contracts to mitigate the interest rate fluctuation risk associated with a portion of the Securitization Notes. As of December 31, 2015 and 2014, accrued interest on the Securitization Notes totaled $0.1 million and $0.2 million, respectively. All cash collected, including sale proceeds from the aircraft financed by the Securitization Notes, is applied to service the outstanding balance of the Securitization Notes, after the payment of certain expenses and other costs, including interest, interest rate swap payments, and the fees to the policy provider in accordance with those agreements. During the year ended December 31, 2015, the Company sold 17 aircraft financed by the Securitization Notes and wrote off $5.1 million of unamortized debt discount and debt issuance costs. The Company did not sell any aircraft financed by the Securitization Notes during the year ended December 31, 2014. Principal payments made during the years ended December 31, 2015 and 2014 totaled $250.7 million and $46.4 million, respectively. The Company may, on any future payment date, redeem the Securitization Notes in whole or from time to time in part for an amount equal to 100% of the outstanding principal amount, together with accrued and unpaid interest to, but excluding, the date fixed for redemption. Redemption prior to acceleration of the Securitization Notes may be of all or any part of the Securitization Notes. Redemption after acceleration of the Securitization Notes upon default may only be for all of the Securitization Notes. The Securitization Notes are secured by (i) first priority, perfected security interests in and pledges or assignments of equity ownership and beneficial interests in the subsidiaries of B&B Air Funding; (ii) interests in the leases of the associated aircraft; (iii) cash held by the subsidiaries of B&B Air Funding; and (iv) rights under agreements with BBAM, the initial liquidity facility provider, hedge counterparties and the policy provider. Rentals paid under leases are placed in the collections account and paid out according to a priority of payments set forth in the indenture. The Securitization Notes are also secured by a lien or similar interest in any of the aircraft B&B Air Funding currently owns that are registered in the United States or Ireland. B&B Air Funding may not encumber the aircraft it currently owns or incur additional indebtedness except as permitted under the securitization-related documents. The Company may, on a payment date, redeem the Securitization Notes in whole or in part, at the outstanding principal amount, together with accrued and unpaid interest. B&B Air Funding is subject to financial and operating covenants which relate to, among other things, its operations, disposition of aircraft, lease concentration limits, restrictions on the acquisition of additional aircraft, and restrictions on the modification of aircraft and capital expenditures. A breach of the covenants could result in the acceleration of the Securitization Notes and exercise of remedies available in relation to the collateral, including the sale of aircraft at public or private sale. In addition, the servicing agreement for B&B Air Funding includes the following servicer termination events:
On October 24, 2014, the indenture governing the Securitization Notes was amended. Among other modifications, the amended indenture provides B&B Air Funding with greater flexibility in managing its aircraft portfolio, facilitates future aircraft sales and expands the scope of information reported to holders of the Securitization Notes on a monthly basis. In connection with the amendment to the indenture, the servicing agreement for B&B Air Funding was amended to clarify the calculation of the sales fee payable to the servicer upon disposition of an aircraft, and to conform its insurance requirements and concentration limits to the same terms in the amended indenture. In connection with the issuance of the Securitization Notes, B&B Air Funding entered into a revolving credit facility ("Securitization Note Liquidity Facility") that provides additional liquidity of up to $60.0 million. Subject to the terms and conditions of the Securitization Note Liquidity Facility, advances may be drawn for the benefit of the Securitization Note holders to cover certain expenses of B&B Air Funding, including maintenance expenses, interest rate swap payments and interest on the Securitization Notes. Advances shall bear interest at one-month LIBOR plus a spread of 1.20%. A commitment fee of 0.40% per annum is due and payable on each payment date based on the unused portion of the Securitization Note Liquidity Facility. As of each of December 31, 2015 and 2014, B&B Air Funding had not drawn on the Securitization Note Liquidity Facility. The financial guaranty insurance policy (the "Policy") issued by the Policy Provider supports the payment of interest due on the Notes and the payment of the outstanding principal balance of the Securitization Notes on the final maturity date and, under certain circumstances, prior thereto. A downgrade of the policy provider's credit rating or its failure to meet its obligations under the Policy will not have a direct impact on B&B Air Funding's obligations or rights under the Securitization Notes. Nord LB Facility
The Company assumed a debt facility (the "Nord LB Facility") provided by Norddeutsche Landesbank Gironzentrale ("Nord LB") in connection with the acquisition of the GAAM Portfolio. The Nord LB Facility is structured as individual loans with each aircraft owning subsidiary acting as the borrower of its respective loan. Borrowings are secured by Fly's equity interest in the subsidiaries which own the financed aircraft, the related leases, maintenance reserves and other deposits. The loans are cross-collateralized and contain cross-default provisions. As of December 31, 2015, the Nord LB Facility provided financing for 10 aircraft, four of which were subject to sale agreements. The loans under the Nord LB Facility bear interest at one month LIBOR plus 3.30% until the final maturity date of November 14, 2018. As of December 31, 2015 and 2014, the blended weighted average interest rate for the facility was 4.04% and 4.15%, respectively, excluding the amortization of debt discount and debt issuance costs. As of December 31, 2015 and 2014, interest accrued on the facility totaled $0.4 million and $0.7 million, respectively. Under the terms of the Nord LB Facility, the Company applies 95% of lease rentals collected towards interest and principal. If no lease rental payments are collected in the applicable period for any financed aircraft, no payment is due under the loan associated with that aircraft during such period. Any unpaid interest increases the principal amount. Upon termination or expiration of a lease other than by sale, no payments are due with respect to the outstanding loan associated with that aircraft until the earlier of (i) six months from such termination or expiration and (ii) the date on which the aircraft is re-leased. Interest during this period increases the outstanding balance under the facility. The Company must pay interest with respect to any aircraft that remains off-lease after six months, and if such aircraft continues to be off-lease after twelve months, the Company must pay debt service equal to 85% of the lease rate under the prior lease agreement. The lenders may require payment in full or foreclose on an aircraft that remains off-lease after 24 months, but may not foreclose on any other aircraft in the facility. In the event the Company sells any of the financed aircraft, substantially all sale proceeds (after payment of certain expenses) must first be used to repay the debt associated with such aircraft and second to repay the outstanding amounts which finance the remaining aircraft. In addition, any security deposit and maintenance reserve amounts retained by the Company after termination of a lease will be used to prepay the Nord LB Facility, provided such reserves are not required for future maintenance of such aircraft. In connection with the sale of certain aircraft, if any portion of debt remains after application of sale proceeds, the outstanding principal amount allocable to the remaining aircraft in the facility will increase. If the Company earns a 10% return on its equity investment after full repayment of the facility, the Company will pay Nord LB a fee equal to 10% of returns in excess of 10%, up to a maximum of $5.0 million. During the year ended December 31, 2015, the Company sold seven aircraft financed by the Nord LB Facility and wrote off $2.1 million of unamortized debt discount and debt issuance costs. The Company did not sell any aircraft financed by the facility during the year ended December 31, 2014. Principal payments made during the year ended December 31, 2015 and 2014 totaled $161.0 million and $36.1 million, respectively. An event of default with respect to the loan on any aircraft will trigger an event of default on the loans with respect to every other financed aircraft. A default by any of the aircraft owning entities in respect of obligations in excess of $10.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder would constitute an event of default. The Nord LB Facility does not contain any financial covenants. CBA Facility
The Company assumed a debt facility provided by Bank of Scotland plc, Commonwealth Bank of Australia and CommBank Europe Limited (together, "CBA") (the "CBA Facility") in connection with acquisition of the GAAM Portfolio. As of December 31, 2015, the CBA Facility provided for individual loans on six aircraft, one of which was subject to a sale agreement. These loans are cross-collateralized and contain cross-default provisions. At December 31, 2015, one loan matures in 2018, and the remaining five loans mature in 2020. Fly has guaranteed all payments under the CBA Facility. During the year ended December 31, 2015, the Company sold one aircraft financed under the CBA Facility and wrote off unamortized debt issuance costs of $0.9 million. During the year ended December 31, 2014, the Company sold two aircraft financed under the CBA Facility and recorded a gain on debt extinguishment of $2.3 million. The Company makes scheduled monthly payments of principal and interest on each loan in accordance with a fixed amortization schedule. In 2015 and 2014, the Company made total principal payments of $26.6 million and $47.0 million, respectively. Borrowings under the CBA Facility accrue interest at either a fixed or variable interest rate. Variable borrowings bear interest based on one-month LIBOR plus an applicable composite margin of 2.50%. As of December 31, 2015 and 2014, the weighted average interest rates on the tranche loans, excluding the debt discount amortization, are presented below:
As of December 31, 2015 and 2014, interest accrued on the facility totaled $37,000 and $44,000, respectively. Borrowings under the CBA Facility are secured by the Company's equity interest in the subsidiaries which own the aircraft and the related leases. If, upon the repayment of any loan, the ratio of the total principal amount outstanding under the CBA Facility to the aggregate appraised value of the aircraft is equal to or greater than 80%, the Company will be required to pay into a collateral account an amount that is necessary to reduce this ratio to less than 80%. There are no financial covenants in the CBA Facility. However, the CBA Facility includes certain operating covenants, including reporting requirements. Term Loan
On August 9, 2012, the Company entered into a $395.0 million senior secured term loan (the "Term Loan") with a consortium of lenders. On May 21, 2013, the Company re-priced the Term Loan, reducing the interest rate margin from 4.50% to 3.50% and the LIBOR floor from 1.25% to 1.00%. On November 21, 2013, the Company amended and upsized the Term Loan by $105.0 million. On April 22, 2015, the Company again re-priced the Term Loan, further reducing the interest rate margin from 3.50% to 2.75% and the LIBOR floor from 1.00% to 0.75%. In connection with the May 2013 re-pricing, the Company paid the lenders a prepayment penalty of 1.00% of the outstanding principal amount which totaled $3.8 million. In connection with the April 2015 re-pricing, the Company wrote off approximately $2.1 million of unamortized loan costs and debt discounts as debt extinguishment costs. There was no prepayment penalty associated with the re-pricing. Until April 2016, the Term Loan can be prepaid in whole or in part for an amount equal to 101% of the outstanding principal amount being repaid. Thereafter, the Term Loan can be repaid in whole or in part at par. The Term Loan matures in August 2019. Under the Term Loan, we must maintain a maximum Loan-to-Value ratio("LTV") of 70.0% based on the lower of the mean or median of half-life adjusted base value of the financed aircraft as determined by three independent appraisers Upon the sale of an aircraft under the Term Loan, we may, in any combination (i) prepay a portion of the outstanding principal amount of the loans, (ii) substitute an aircraft as collateral or (iii) provide additional cash collateral (not to exceed $25 million) to maintain a maximum LTV of 70.0%. During the year ended December 31, 2015, the Company sold six aircraft financed under the Term Loan and substituted four aircraft as collateral. During the year ended December 31, 2014, the Company sold four aircraft financed under the Term Loan, and substituted three aircraft as collateral. At December 31, 2015, the Term Loan was secured by 28 aircraft, four of which were subject to sale agreements. The Term Loan is guaranteed by the Company. Borrowings are also secured by the Company's equity interests in the aircraft owning and/or leasing subsidiaries, the aircraft and related leases and other deposits. The Term Loan contains certain concentration limits with respect to types of aircraft which can be financed in the Term Loan, as well as geographic and single lessee concentration limits. These concentration limits apply upon the acquisition, sale, removal or substitution of an aircraft. The Term Loan also includes certain customary covenants, including reporting requirements and maintenance of public ratings. An event of default under the Term Loan includes any of the aircraft owning entities defaulting in respect of obligations in excess of $50.0 million and holders of such obligation accelerate or demand repayment of amounts due thereunder. As of December 31, 2015 and 2014, interest accrued on the Term Loan totaled $2.2 million and $2.9 million, respectively. The Term Loan requires quarterly principal payments of $5.9 million. Fly Acquisition II Facility
On November 7, 2012, the Company entered into a revolving credit facility with a consortium of lenders ("Fly Acquisition II Facility") providing loans in an aggregate amount of up to $450.0 million with an availability period which would have expired on July 3, 2015. The final maturity date would have been July 3, 2018. The Company paid a commitment fee of 0.75% per annum on a monthly basis to each lender on the undrawn amount of its commitment until January 2015 when the Company exercised its right to terminate the availability period. The interest rate under the facility was based on one-month LIBOR plus an applicable margin. Following termination of the availability period, the applicable margin was increased from 3.25% to 3.75%. During the first quarter of 2015, the Company terminated the Fly Acquisition II Facility and repaid the then outstanding balance with proceeds from the sale of three aircraft and the refinancing of one aircraft. The Company wrote off approximately $4.0 million of unamortized debt issuance costs as debt extinguishment costs. There was no prepayment penalty in connection with the termination of the Fly Acquisition II Facility. As of December 31, 2014, interest accrued on the Fly Acquisition II Facility totaled $0.2 million. Other Aircraft Secured Borrowings
The Company has entered into other aircraft secured borrowings to finance the acquisition of aircraft. These borrowings may finance the acquisition of one or more aircraft and are usually structured as individual loans which are secured by pledges of the Company's rights, title and interest in the financed aircraft and leases. The maturity date on each loan generally matches the corresponding lease expiration date, with maturity dates ranging from February 2016 to January 2027. The Company makes scheduled monthly payments of principal and interest on each loan in accordance with a fixed amortization schedule. In 2015, the Company made principal payments, including repayment of five loans, totaling $207.8 million. In 2014, the Company made principal payments, including repayment of three loans, totaling $70.1 million. During the year ended December 31, 2015, the Company sold five aircraft financed by these borrowings and wrote off $3.2 million of unamortized debt discounts and debt issuance costs. During the year ended December 31, 2014, the Company sold one aircraft. As of December 31, 2015, 21 aircraft were financed by these borrowings, one of which was subject to a sale agreement. At December 31, 2015 and, 2014, $422.9 million and $425.0 million of the principal amount of these borrowings, respectively, were recourse to the Company. As of December 31, 2015 and 2014, interest accrued on these loans totaled $0.9 million and $1.1 million, respectively. During the year ended December 31, 2015, the Company acquired one aircraft with a combination of unrestricted cash and proceeds from secured, recourse debt financing of $36.0 million. In addition, the Company refinanced four aircraft with new secured, recourse debt of $113.4 million. The Company has one loan that is denominated in Euros. During the year ended December 31, 2015, the Company recorded an unrealized foreign currency exchange gain of $1.6 million resulting from an increase of the U.S. Dollar value relative to the Euro. In 2014, the Company acquired five aircraft with a combination of unrestricted cash and proceeds from secured, recourse debt financing of $274.5 million. In addition, the Company financed one aircraft with secured, recourse debt of $28.5 million. Future Minimum Principal Payments on Borrowings During the year ended December 31, 2015, the Company made scheduled principal payments on its secured borrowings totaling $791.4 million. The anticipated future minimum principal payments due for its borrowings are as follows:
|
DERIVATIVES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES |
Derivatives are used by the Company to manage its exposure to interest rate fluctuations. The Company uses interest rate swap contracts to hedge variable interest payments due on loans associated with aircraft with fixed rate rentals. As of December 31, 2015, the Company's total unsecured and secured debt balance, excluding unamortized debt discount, was $2.4 billion. Debt with floating interest rates totaled $1.5 billion, of which $1.1 billion was associated with aircraft with fixed rate rentals. Interest rate swap contracts allow the Company to pay fixed interest rates and receive variable interest rates with the swap counterparty based on the one-month and three-month LIBOR on the notional amounts over the life of the contracts. As of December 31, 2015 and 2014, the Company had interest rate swap contracts with notional amounts aggregating $1.0 billion and $1.4 billion, respectively. The unrealized fair value gain on the interest rate swap contracts, reflected as derivative assets, was $0.2 million and $2.1 million as of December 31, 2015 and 2014, respectively. The unrealized fair value loss on the interest rate swap contracts, reflected as derivative liabilities, was $19.3 million and $23.3 million as of December 31, 2015 and 2014, respectively. The Company determines the fair value of derivative instruments using a discounted cash flow model. The model incorporates an assessment of the risk of non-performance by the swap counterparty in valuing derivative assets and an evaluation of the Company's credit risk in valuing derivative liabilities. The Company considers in its assessment of non-performance risk, if applicable, netting arrangements under master netting agreements, any collateral requirement, and the derivative payment priority in the Company's debt agreements. The valuation model uses various inputs including contractual terms, interest rate curves, credit spreads and measures of volatility. Designated Derivatives The Company's interest rate derivatives have been designated as cash flow hedges. The effective portion of changes in fair value of these derivatives are recorded as a component of accumulated other comprehensive income, net of a provision for income taxes. Changes in the fair value of these derivatives are subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. For the year ended December 31, 2015, the Company recorded a net unrealized gain of $0.2 million, after the applicable net tax expense of $0.3 million. For the year ended December 31, 2014, the Company recorded an unrealized loss of $3.2 million, net of the applicable net tax benefit of $0.6 million. For the year ended December 31, 2013, the Company recorded an unrealized gain of $22.1 million, net of the applicable net tax expense of $3.5 million. As of December 31, 2015, the Company had the following designated derivative instruments classified as derivative assets on the balance sheet (dollars in thousands):
As of December 31, 2015, the Company had the following designated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands):
Dedesignated Derivatives In 2015, certain of the Company's interest rate derivatives no longer qualified for cash flow hedge accounting. The accumulated other comprehensive loss of $1.6 million associated with the dedesignated interest rate derivatives as of the dedesignation date was reclassified into earnings. As of December 31, 2015, the Company had the following dedesignated derivative instruments classified as derivative assets on the balance sheet (dollar amount in thousands):
As of December 31, 2015, the Company had the following dedesignated derivative instruments classified as derivative liabilities on the balance sheet (dollar amount in thousands):
Terminated Derivatives In 2015, the Company terminated 14 interest rate swap contracts and recognized a loss into earnings associated with the terminated interest rate swap contracts totaling $2.4 million. In addition, the Company recognized a net loss of $1.1 million on swap ineffectiveness. In connection with the sale of six aircraft by the Company during the first quarter of 2013, the buyer assumed the underlying debt financing and derivative contracts associated with the aircraft. As of the disposal date, the derivative contracts were classified as derivative liabilities and had a negative fair market value of $5.0 million. |
INCOME TAXES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
Fly is a tax resident of Ireland and has wholly-owned subsidiaries in Ireland, France, Luxembourg, Australia, Singapore and Labuan that are tax residents in those jurisdictions. In general, Irish resident companies pay corporation tax at the rate of 12.5% on trading income and 25.0% on non-trading income. Under current tax rules in Ireland, the Company is allowed to carry forward its net operating losses for an indefinite period to offset any future income. Fly's Australian resident subsidiaries pay a corporation tax of 30.0% and Fly's French resident subsidiaries pay a corporation tax of 33.33% on their net taxable income. Repatriated earnings and any undistributed earnings from the Company's Cayman and Australian subsidiaries will be taxed at the 25.0% and 12.5% tax rate, respectively. As of December 31, 2015, the Company had undistributed earnings from its Australian subsidiary of approximately $19.3 million. The Company has the ability and intends to indefinitely reinvest these undistributed earnings. An Australian withholding tax of 15% could be applied to distributions which have yet to be taxed in Australia. The amount to which the withholding tax would be applied is not practical to estimate because of complexities in the computation. Accordingly, the Company has not recorded such withholding tax liability in its financial statements. Income tax expense (benefit) by jurisdiction is shown below:
In 2013, the Company recognized a tax benefit of $1.1 million related to 2012 U.S. Federal and State taxes primarily resulting from the re-allocation of BBAM LP's U.S. sourced income among its partners. The Company had no unrecognized tax benefits as of December 31, 2015 and 2014. The principal components of the Company's net deferred tax asset (liability) were as follows:
The Company records valuation allowances to reduce deferred tax assets to the extent it believes it is more likely than not that a portion of such assets will not be realized. In making such determinations, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies, and its ability to carry back losses to prior years. The Company is required to make assumptions and judgments about potential outcomes that may be outside its control. Critical factors include the projection, source, and character of future taxable income. Although realization is not assured, the Company believes it is more likely than not that deferred tax assets, net of the valuation allowance, will be realized. The amount of deferred tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carryforward periods are reduced or current tax planning strategies are not implemented. At December 31, 2015 and 2014, the Company had a valuation allowance of $23.0 million and $22.4 million, respectively. The Company had recorded valuation allowances against a deferred tax asset in connection with basis differences on the acquisition of GAAM's Australian assets. In connection with the sale of aircraft owned by a wholly-owned Australian subsidiary in 2013, the Company generated capital gains and has utilized approximately $2.3 million of the deferred tax asset. Under current tax rules in Ireland, the Company is allowed to carry forward its net operating losses for an indefinite period to offset any future income. However, the Company has recorded net valuation allowances of $3.4 million and $2.5 million for the years ended December 31, 2015 and 2014, respectively. The table below is a reconciliation of the Irish statutory corporation tax rate of 12.5% on trading income to the Company's recorded income tax expense (benefit):
Under Irish tax legislation, the Irish Revenue are entitled to make enquiries and/or raise an assessment of any corporation tax return submitted up to a period of four years from the end of the year in which the return is submitted. As such, Irish Revenue are currently entitled to make enquiries and/or raise an assessment in respect of the corporation tax returns submitted by the Company's Irish subsidiaries in respect of the years ended December 31, 2011 to 2015. |
OTHER LIABILITIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES |
The following table describes the principal components of the Company's other liabilities:
|
SHAREHOLDERS' EQUITY |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 | |||
SHAREHOLDERS' EQUITY [Abstract] | |||
SHAREHOLDERS' EQUITY |
On May 6, 2015, the Company's board of directors approved a $30.0 million share repurchase program expiring in May 2016. Under this program, the Company may make share repurchases from time to time in the open market or in privately negotiated transactions. During the year ended December 31, 2015, the Company repurchased 421,329 shares at an average price of $13.08 per share. The Company terminated this program in the fourth quarter of 2015. On November 12, 2015, the Company announced that its board of directors approved the elimination of dividend payments on its shares and authorized a new program to repurchase up to $100.0 million of its shares, including a modified Dutch auction tender offer for up to $75.0 million. On December 22, 2015, the Company repurchased 5,376,344 shares at $13.95 per share for a total cost of approximately $75.0 million, excluding fees and expenses related to the tender offer. In 2016, the Company completed its $25.0 million share repurchase program through open market or in privately negotiated transactions. As of December 31, 2015, there were 35,671,400 shares outstanding. No shares were repurchased during the year ended December 31, 2014. In July 2013, the Company sold 13,142,856 common shares in the form of ADSs at a price of $14.00 per ADS in an underwritten public offering generating net proceeds of approximately $172.6 million. During the year ended December 31, 2014, the Company issued 126,660 shares in connection with RSUs that vested and SARs that were exercised. As of December 31, 2014, there were 41,432,998 shares outstanding. During the year ended December 31, 2015, the Company declared and paid dividends of $1.00 per share or $42.4 million. During the year ended December 31, 2014, the Company declared and paid dividends of $1.00 per share or $42.8 million. During the year ended December 31, 2013, the Company declared and paid dividends of $0.88 per share or $31.5 million. |
SHARE-BASED COMPENSATION |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION |
Description of Plan On April 29, 2010, the Company adopted the 2010 Omnibus Incentive Plan ("2010 Plan") permitting the issuance of up to 1,500,000 share grants in the form of (i) SARs; (ii) RSUs; (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. SARs entitle the holder to receive any increase in value between the grant date price of Fly's ADSs and their value on the exercise date. RSUs entitle the holder to receive a number of Fly's ADSs equal to the number of RSUs awarded upon vesting. The granted SARs and RSUs vest in three equal installments and expire on the tenth anniversary of the grant date. The Company settles SARs and RSUs with newly issued ADSs. The holder of a SAR or RSU is also entitled to dividend equivalent rights ("Dividend Equivalent") on each SAR and RSU. For each Dividend Equivalent, the holder shall have the non-forfeitable right to receive a cash amount equal to the per share dividend paid by the Company during the period between the grant date and the earlier of the (i) award exercise or vesting date, (ii) termination date or (iii) expiration date. Dividend Equivalents expire at the same time and in the same proportion that the SARs and RSUs are exercised, cancelled, forfeited or expired. Grant Activity A summary of the Company's SAR activity for the year ended December 31, 2015, 2014 and 2013 are presented as follows:
The aggregate intrinsic value of the SARs is calculated as the difference between the exercise price of the underlying awards and the Company's closing ADS price of $13.65, $13.15 and $16.07 as of December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, all SARs have vested. The unvested SARs had an intrinsic value of $49,000 and $0.8 million as of December 31, 2014 and 2013, respectively. A summary of the Company's RSU activity for the year ended December 31, 2015, 2014 and 2013 is as follows:
The weighted average grant date fair value of the RSUs was determined based on the closing market price of the Company's closing ADS price of $13.65, $13.15 and $16.07 as of December 31, 2015, 2014 and 2013, respectively. As of December 31, 2015, all RSUs have vested. The unvested RSUs had an intrinsic value of $0.5 million and $2.6 million as of December 31, 2014 and 2013, respectively. Valuation Assumptions The Company accounts for grants to the CEO and CFO as grants to employees and grants to other BBAM LP employees as grants to non-employees. Grants to employees are valued at the grant date and amortized on a straight-line basis into share-based compensation expense over the service period. Grants to non-employees are initially measured at grant date, and then re-measured at each interim reporting period until the awards are vested. The Company uses the Black-Scholes option pricing model to determine the fair value of SARs. The fair value of SARs expected to vest was estimated on the date of grant, or if applicable, on the measurement date using the following assumptions:
The expected stock price volatility was determined based on the historical volatility of the Company's common shares as well as other companies operating in similar businesses. The risk-free interest rate is based on the US Treasury yield curve in effect at the time of grant, or as applicable as of the measurement date, for the period corresponding with the expected life of the SAR. The dividend yield assumption was not factored into the valuation model as the SAR grant holder is entitled to dividends. Share-based compensation expense related to SARs and RSUs is recorded as a component of selling, general and administrative expenses, and totaled $0.2 million, $30,000 and $3.2 million for the years ended December 31, 2015, 2014 and 2013, respectively. At December 31, 2015, all RSUs and SARs granted under the 2010 Plan had vested. There was no unamortized share-based compensation expense at December 31, 2015. Unamortized share-based compensation expense totaled $0.1 million and $0.9 million at December 31, 2014 and 2013, respectively. |
EARNINGS PER SHARE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
The following table sets forth the calculation of basic and diluted earnings per common share using the two-class method:
Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income available to common shareholders by the sum of the weighted average number of common shares outstanding and the potential number of dilutive common shares outstanding during the period, excluding the effect of any anti-dilutive securities. SARs and RSUs granted by the Company that contain non-forfeitable rights to receive dividend equivalents are deemed participating securities (see Note 16). Net income available to common shareholders is determined by reducing the Company's net income for the period by dividend equivalents paid on vested RSUs and SARs during the period. |
COMMITMENTS AND CONTINGENCIES |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 18. COMMITMENTS AND CONTINGENCIES From time to time, the Company contracts with third-party service providers to perform maintenance or overhaul activities on its off-lease aircraft. As of December 31, 2015, the Company had a commitment to sell 12 aircraft. |
RELATED PARTY TRANSACTIONS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS | 19. RELATED PARTY TRANSACTIONS Fly has no employees and has outsourced the daily operations of the Company by entering into management, servicing and administrative agreements (the "Agreements") with BBAM. Services to be rendered under the Agreements include acquiring and disposing of aircraft; marketing of aircraft for lease and re-lease; collecting rent and other payments from the lessees; monitoring maintenance, insurance and other obligations under the leases; enforcing the Company's rights under the lease terms; and maintaining the books and records of the Company and its subsidiaries. The Manager manages the Company under the direction of its chief executive officer and chief financial officer. Pursuant to the terms of the Agreements, certain fees and expenses that may be payable to the Manager may be reduced for any like payments made to other BBAM affiliates. In connection with its services, the Manager may also incur expenses such as travel, insurance and other professional fees on behalf of the Company. The Company reimburses the Manager for these expenses. The Company had $0.3 million of reimbursable expenses due to the Manager at each of December 31, 2015 and 2014, respectively. Pursuant to the Agreements, BBAM is entitled to receive servicing fees. On October 24, 2014, in connection with the amendment to the indenture governing the Securitization Notes, the servicing agreement for B&B Air Funding was also amended to clarify the calculation of the sales fee payable to the servicer upon disposition of an aircraft, and to conform its insurance requirements and concentration limits to the same terms in the amended indenture. With respect to aircraft financed by the Securitization Notes, BBAM is entitled to receive a base fee of $150,000 per month, subject to certain adjustments, and a rent fee equal to 1.0% of the aggregate amount of aircraft rent due and 1.0% of rent actually collected. With respect to all other aircraft, BBAM is entitled to receive a servicing fee equal to 3.5% of the aggregate amount of rent actually received for such aircraft. BBAM received base and rent fees pursuant to the Agreements totaling $15.2 million, $14.4 million, and $12.1 million for the years ended December 31, 2015, 2014 and 2013, respectively. BBAM is entitled to an administrative agency fee from B&B Air Funding equal to $750,000 per annum, subject to an annual CPI adjustment. For all other aircraft, BBAM is entitled to an administrative fee of $1,000 per month per aircraft. In addition, BBAM is entitled to a servicer administrative fee of $10,000 per month under the Term Loan. Prior to the termination of the Fly Acquisition II Facility, BBAM was entitled to a servicer administrative fee of $10,000 per month. BBAM received administrative fees from aircraft owning subsidiaries of the Company totaling $2.1 million during each of the years ended December 31, 2015 and 2014. During the year ended December 31, 2013, BBAM received administrative fees from aircraft owning subsidiaries of the Company totaling $1.9 million. During the year ended December 31, 2015, the Company purchased two aircraft from an unrelated third party, which continues to be serviced by BBAM. During the year ended December 31, 2015, the Company incurred $9.2 million of origination fees, of which $1.0 million was expensed. With respect to aircraft acquired in the first quarter of 2014, the Manager waived the origination fees that it was entitled to receive from the Company. For the year ended December 31, 2014, the Company incurred $12.8 million of origination fees, of which $3.1 million was expensed. For the year ended December 31, 2013, the Company incurred $9.5 million of origination fees, of which $2.5 million was expensed. On June 19, 2015, in connection with the agreement to sell a portfolio of aircraft to ECAF I Ltd. (the "ECAF-I Transaction"), the Company and the Manager agreed to amend the Company's management agreement (the "Management Agreement"). Prior to the amendment, the Company made quarterly payments of $2.5 million, subject to an annual adjustment tied to the Consumer Price Index applicable to the prior calendar year, to the Manager as compensation for providing the services of the chief executive officer, the chief financial officer and other personnel, and for certain corporate overhead costs related to the Company ("Management Expenses"). For the years ended December 31, 2015, 2014 and 2013, the Company incurred Management Expenses of $8.2 million, $10.6 million and $10.5 million, respectively. Pursuant to the amendment, the annual management fee that the Company pays to the Manager was reduced from $10.7 million to $5.7 million, effective as of July 1, 2015. The management fee will be adjusted each calendar year by (i) 0.3% of the change in the book value of the Company's aircraft portfolio during the preceding year, up to a $2.0 billion increase over the book value of the post-ECAF-I Transaction portfolio and (ii) 0.25% of the change in the book value of the Company's aircraft portfolio in excess of $2.0 billion, with a minimum annual management fee of $5.0 million. The management fee also will be subject to an annual adjustment tied to the Consumer Price Index. The term of the Management Agreement has been extended from December 28, 2022 to July 1, 2025, and shall be automatically extended for one additional term of five years unless terminated by either party upon 12 months' notice or terminated earlier as set forth below. If the Management Agreement is not renewed after the termination of the initial ten-year term, the Company will pay the Manager a non-renewal fee on the termination date in an amount equal to (i) $6.0 million plus (ii) so long as the Management Expense Amount does not exceed $12.0 million, 50% of the excess (if any) of the Management Expense Amount over $6.0 million. Also, pursuant to the amendment, the Company and the Manager agreed to reduce the disposition fee that the Company will pay to the Manager in connection with the ECAF-I Transaction. Whereas the Company generally pays a disposition fee of 1.5% of the aggregate gross proceeds, the amendment provides for an aggregate disposition fee in respect of the aircraft in the ECAF-I Transaction equal to 1.2% of the aggregate gross proceeds. During the years ended December 31, 2015, 2014 and 2013, the Company incurred $15.6 million, $2.2 million and $2.0 million of fees, respectively, in connection with the sale of aircraft. In connection with the Company's underwritten public offering in July 2013, the Company sold 142,857 common shares in the form of ADSs to certain officers and directors of Fly and BBAM LP at the public offering price of $14.00 per ADS, generating proceeds of $2.0 million. The Company's minimum long-term contractual obligations with BBAM LP as of December 31, 2015, excluding rent fees, consisted of the following:
|
FAIR VALUE MEASUREMENTS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
Assets and liabilities recorded at fair value on a recurring basis in the consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. The hierarchy levels give the highest priority to quoted prices in active markets and the lowest priority to unobservable data. Fair value measurements are disclosed by level within the following fair value hierarchy: Level 1 — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level 2 — Inputs (other than quoted prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument's anticipated life. Level 3 — Inputs reflect management's best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. The Company's financial instruments consist principally of cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, derivative instruments, accounts payable and borrowings. Fair value of an asset is defined as the price a seller would receive in a current transaction between knowledgeable, willing and able parties. A liability's fair value is defined as the amount that an obligor would pay to transfer the liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. The fair value of the Company's cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, and accounts payable approximate their carrying value. (The fair values of cash, restricted cash and cash equivalents are a Level 1 hierarchy. The fair values of accounts receivable and accounts payable are Level 2 hierarchy.) Where available, the fair value of the Company's notes payable and debt facilities are based on observable market prices or parameters or derived from such prices or parameters (Level 2). Where observable prices or inputs are not available, valuation models are applied, using the net present value of cash flow streams over the term using estimated market rates for similar instruments and remaining terms (Level 3). These valuation techniques involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments' complexity. The Company determines the fair value of its derivative instruments using a discounted cash flow model which incorporates an assessment of the risk of non-performance by the swap counterparty and an evaluation of Fly's credit risk in valuing derivative liabilities. The valuation model uses various inputs including contractual terms, interest rate curves, credit spreads and measures of volatility. The Company also measures the fair value for certain assets and liabilities on a non-recurring basis, when GAAP requires the application of fair value, including events or changes in circumstances that indicate that the carrying amounts of assets may not be recoverable. Assets subject to these measurements include Fly's investment in an unconsolidated subsidiary and flight equipment held for operating lease, net. Fly accounts for its investment in an unconsolidated subsidiary under the equity method and records impairment when its fair value is less than its carrying value (Level 3). The Company records flight equipment at fair value when the carrying value may not be recoverable. Such fair value measurements are based on management's best estimates and judgment, and uses Level 3 inputs which include assumptions as to future cash flows associated with the use of an aircraft and eventual disposition of such aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. For the years ended December 31, 2015, 2014 and 2013, the Company wrote down aircraft to their net realizable value and recognized a charge of $66.1 million, $1.2 million and $6.2 million, respectively (See Note 5). The carrying amounts and fair values of the Company's financial instruments are as follows:
As of December 31, 2015 and 2014, the categorized asset and liabilities measured at fair value on a recurring basis, based upon the lowest level of significant inputs to the valuations are as follows:
|
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION |
The unaudited quarterly financial information for each of the quarters in the year ended December 31, 2015 is presented below:
The unaudited quarterly financial information for each of the quarters in the year ended December 31, 2014 is presented below:
|
SUBSEQUENT EVENTS |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 | |||
SUBSEQUENT EVENTS [Abstract] | |||
SUBSEQUENT EVENTS |
Subsequent to December 31, 2015, the Company repurchased 2,071,910 shares at an average price of $12.04 per share, or $24.9 million. On February 26, 2016, the Company, through a wholly-owned subsidiary, entered into a revolving credit facility with a consortium of lenders (the "Fly Acquisition III Facility") providing loans and notes in an aggregate amount of up to $385.0 million with an availability period expiring on February 26, 2019 and a final maturity date of February 26, 2022. The lender syndicate includes Commonwealth Bank of Australia and several other lenders. The interest rate under the facility is based on one-month LIBOR plus an applicable margin. The applicable margin will be 2.00% through the expiration of the availability period, and will increase to 2.50% from February 27, 2019 through February 26, 2020 and 3.00% from February 27, 2020 through the maturity date of the facility. The Company provides a full recourse guaranty of all of the borrower's obligations under the facility. Subsequent to December 31, 2015, the Company sold 13 narrow-body aircraft and one wide-body aircraft. In March 2016, the Company's board of directors approved a new $30.0 million share repurchase program expiring in March 2017. Under this program, the Company may make share repurchases from time to time in the open market or in privately negotiated transactions. On March 25, 2016, Gerald Margolis filed a putative class action lawsuit in the United States District Court for the Southern District of New York, asserting that the Company, its Chief Executive Officer and Chief Financial Officer violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by making materially false and misleading statements regarding the Company's business, operational and compliance policies, particularly concerning our accounting with respect to intangible assets and liabilities for aircraft acquired with in-place leases. The complaint seeks an unspecified amount of monetary damages on behalf of the putative class and an award of attorney's fees, expert fees and other costs. The Company believes this lawsuit is without merit, and will defend it. |
Schedule I - Condensed Financial Information of Parent |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated Financial Information of Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent | Schedule I — Condensed financial information of parent Fly Leasing Limited Condensed Balance Sheets AS OF DECEMBER 31, 2015 AND 2014 (Dollars in thousands)
The accompanying note is an integral part of these consolidated financial statements. Fly Leasing Limited Condensed Statements of Income FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 (Dollars in thousands, except per share data)
The accompanying note is an integral part of these consolidated financial statements. Schedule I — Condensed financial information of parent Fly Leasing Limited Condensed Statements of Cash Flows FOR THE YEARS ENDED DECEMBER 31, 2015, 2014 AND 2013 (Dollars in thousands)
The accompanying note is an integral part of these consolidated financial statements.
The Company has determined that its financial statements for the years ended December 31, 2014 and 2013, and for prior years contained errors resulting from the incorrect accounting for aircraft purchased with in-place leases. It has restated those financial statements to make the necessary accounting adjustments. When purchasing an aircraft with an in-place lease, the Company's subsidiaries previously did not identify, measure and account for maintenance rights acquired. The Company's subsidiaries now identify, measure and account for maintenance right assets and liabilities associated with their acquisitions of aircraft with in-place leases. A maintenance right asset represents the fair value of its contractual right under a lease to receive an aircraft in an improved maintenance condition as compared to the maintenance condition on the acquisition date. A maintenance right liability represents its obligation to pay the lessee for the difference between the lease end contractual maintenance condition of the aircraft and the actual maintenance condition of the aircraft on the acquisition date. The Company and its subsidiaries have also made other adjustments related to immaterial errors including certain corrections that had been previously identified but not recorded because they were immaterial, individually and in the aggregate, to its consolidated financial statements. These corrections included adjustments to (i) expense acquisition fees related to aircraft purchased with in-place leases, (ii) record an impairment charge on one aircraft, (iii) recognize rental income previously deferred, (iv) defer equity in earnings from our unconsolidated subsidiary, (v) record the associated income tax effect of items (i) through (iv) and (vi) record deferred tax asset valuation allowance. While none of these other adjustments were individually material, they have been made as part of the restatement process. (See "Note 2. Restatement of Prior Financial Statements" to the Company's notes to consolidated financial statements.) Condensed Balance Sheet AT DECEMBER 31, 2014 (Dollars in thousands)
Condensed Statements of Income FOR THE YEAR ENDED DECEMBER 31, 2014 (Dollars in thousands, except per share data)
FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in thousands, except per share data)
Condensed Statements of Cash Flows FOR THE YEAR ENDED DECEMBER 31, 2014 (Dollars in thousands)
FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in thousands)
|
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS (Policies) |
12 Months Ended |
---|---|
Dec. 31, 2015 | |
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS [Abstract] | |
EOL Leases | EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft into a specified maintenance condition. Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft in an improved maintenance condition as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft is greater than the contractual return condition in the lease and the Company is required to pay the lessee in cash for the improved maintenance condition. Maintenance right assets, net are recorded as a separate line item on the Company's balance sheet. When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company's capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income consistent with the Company's existing policy; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company's capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with the Company's policy with respect to major maintenance. When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement. |
MR Leases | MR Leases Under MR Leases, the lessee is required to make periodic payments to the Company for maintenance based upon usage of the aircraft. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee. Maintenance right assets in MR Leases represent the right to receive an aircraft in an improved condition relative to the actual condition on the acquisition date. The aircraft is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives. Maintenance right assets, net will be recorded as a separate line item on the Company's balance sheet. When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income, which is consistent with the Company's existing policy; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded. Under MR Leases, the Company does not record a maintenance right liability because it has no obligation to make payments to the lessee, beyond reimbursement of maintenance payment liabilities or payment of lease incentive obligations, which are already recorded in the Company's financial statements. |
Reclassifications | Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. Such reclassification has had no impact on consolidated net income or shareholders' equity. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
Basis of Preparation | BASIS OF PREPARATION Fly is a holding company that conducts its business through its subsidiaries. The Company directly or indirectly owns all of the common shares of its consolidated subsidiaries. The consolidated financial statements presented are prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). The consolidated financial statements include the accounts of Fly and all of its subsidiaries. In instances where it is the primary beneficiary, Fly will consolidate a Variable Interest Entity ("VIE"). Fly is deemed the primary beneficiary when it has both the power to direct the activities of the VIE that most significantly impact the economic performance of such VIE, and it bears the significant risk of loss and participates in gains of the VIE. All intercompany transactions and balances have been eliminated. The consolidated financial statements are stated in U.S. Dollars, which is the principal operating currency of the Company. The Company has one operating and reportable segment which is aircraft leasing. Certain amounts in prior period consolidated financial statements have been reclassified to conform to the current period presentation. Such reclassification has had no impact on consolidated net income or shareholders' equity. |
||||||||||||
Restatement of Prior Financial Statements | RESTATEMENT OF PRIOR FINANCIAL STATEMENTS The Company has restated its previously reported consolidated financial statements as of and for the years ended December 31, 2014 and 2013, including the opening shareholders' equity balance, in order to reflect the accounting adjustments made as a result of the recognition of maintenance rights associated with the acquisition of aircraft with in-place leases. The Company has also made other adjustments related to immaterial errors including certain corrections that had been previously identified but not recorded because they were immaterial, individually and in the aggregate, to the Company's consolidated financial statements. These corrections included reclassification of loan fees to unamortized debt discounts and adjustments to (i) expense acquisition fees related to aircraft purchased with in-place leases, (ii) record an impairment charge on one aircraft, (iii) recognize rental income previously deferred, (iv) defer equity in earnings from the Company's unconsolidated subsidiary, (v) record the associated income tax effect of items (i) through (iv) and (vi) record deferred tax asset valuation allowance. While none of these other adjustments were individually material, they have been made as part of the restatement process. |
||||||||||||
Reclassifications | Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current period presentation. Such reclassification has had no impact on consolidated net income or shareholders' equity. |
||||||||||||
Use of Estimates | USE OF ESTIMATES The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The use of estimates is or could be a significant factor affecting the reported carrying values of flight equipment, deferred tax assets, liabilities, accruals and reserves. To the extent available, the Company utilizes industry specific resources, third-party appraisers and other materials to support management's estimates, particularly with respect to flight equipment. Despite management's best efforts to accurately estimate such amounts, actual results could differ from those estimates. |
||||||||||||
Risk and Uncertainties | RISKS AND UNCERTAINTIES The Company encounters several types of risk during the course of its business, including credit and market risks. Credit risk addresses a lessee's or derivative counterparty's inability or unwillingness to make contractually required payments. Market risk reflects the change in the value of derivatives and credit facilities due to changes in interest rate spreads or other market factors, including the value of collateral underlying the Company's credit facilities. Other types of risk encountered by the Company include the following:
|
||||||||||||
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. |
||||||||||||
Restricted Cash and Cash Equivalents | RESTRICTED CASH AND CASH EQUIVALENTS The Company's restricted cash and cash equivalents consist primarily of (i) security deposits and certain maintenance payments received from lessees under the terms of various lease agreements, (ii) a portion of rents collected which may be required to be held as cash collateral under certain of the Company's debt facilities and (iii) other cash, which may be subject to withdrawal restrictions pursuant to the Company's credit agreements or its deferred tax arrangements. All restricted cash is held by major financial institutions in segregated accounts. |
||||||||||||
Rent Receivables | RENT RECEIVABLES Rent receivables represent unpaid lessee obligations under existing lease contracts. Any allowance for doubtful accounts is established on a specific identification basis and is maintained at a level believed by management to be adequate to absorb probable losses associated with rent receivables. The assessment of credit risk is primarily based on the extent to which amounts outstanding exceed the value of security held, the financial strength and condition of a debtor and the current economic and regulatory conditions of the debtor's operating environment. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows and consideration of current factors and economic trends impacting the lessees and their credit worthiness, all of which may be susceptible to significant change. Uncollectible rent receivables are charged off against the allowance, while recoveries of amounts previously charged off are credited to the allowance. A provision for credit losses is recorded based on management's periodic evaluation of the factors previously mentioned, as well as other pertinent factors. As of December 31, 2015 and 2014, the Company had no allowance for doubtful accounts. In addition, the Company places a lessee on non-accrual status once it determines that it is no longer probable that the Company will receive the economic benefits of the lease. The Company recognizes revenue from a lessee on non-accrual status only as cash is received. |
||||||||||||
Investment in Unconsolidated Subsidiary | INVESTMENT IN UNCONSOLIDATED SUBSIDIARY Fly has a 57.4% interest in Fly-Z/C Aircraft Holdings LP ("Fly-Z/C LP"). Fly accounts for its interest in the unconsolidated subsidiary using the equity method as the Company does not control the entity. Under the equity method, the Company's investment is initially recorded at cost and the carrying amount is affected by its share of the unconsolidated subsidiary's undistributed earnings and losses, and distributions of dividends and capital. The Company periodically reviews the carrying amount of its investment in the unconsolidated subsidiary, or whenever events or changes in circumstances indicate that a decline in value may have occurred. If its investment is determined to be impaired on an other-than-temporary basis, a loss equal to the difference between the fair value of the investment and its carrying value is recorded in the period of identification. |
||||||||||||
Investment in Direct Finance Lease | INVESTMENT IN DIRECT FINANCE LEASE The Company has recorded one lease as an investment in direct finance lease. The investment in the direct finance lease equals the sum of amounts to be received under the lease, plus the estimated residual value of the equipment at the lease termination date, less unearned income. Residual value reflects management's estimate of the amounts to be received at lease termination from the re-lease or disposition of the leased equipment. Initial unearned income represents the amount by which the original sum of the lease receivable and the estimated residual value exceeds the original cost of the leased equipment. Unearned income is recognized as finance lease income over the lease term in a manner that produces a constant rate of return on the net investment in the lease based on an implicit interest rate. Initial direct costs and fees related to lease originations are deferred as part of the investment and amortized over the lease term. |
||||||||||||
Flight Equipment Held for Sale | FLIGHT EQUIPMENT HELD FOR SALE In accordance with guidance provided by the Financial Accounting Standards Board ("FASB"), flight equipment is classified as held for sale when the Company commits to and commences a plan of sale that is reasonably expected to be completed within one year and satisfies certain other held for sale criteria. Flight equipment held for sale is recorded at the lesser of carrying value or fair value, less estimated cost to sell. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. Rent collected from the sale contract date through the aircraft disposition date reduces the sale proceeds and gain on sale of aircraft. Imputed interest earned from the sale contract date through the aircraft disposition date increases the selling price of an aircraft. In addition, depreciation ceases once an aircraft is classified as held for sale. An impairment loss is recorded for an asset or asset group held for sale when the carrying value of the asset or asset group exceeds its fair value, less estimated cost to sell. An aircraft classified as held for sale is not depreciated. Subsequent changes to the asset's fair value are recorded as adjustments to the carrying value of the flight equipment. However, any such adjustment will not cause the asset's fair value to exceed its original carrying value. The Company continues to recognize rent from aircraft held for sale until the date the aircraft is sold. |
||||||||||||
Flight Equipment Held for Operating Lease | FLIGHT EQUIPMENT HELD FOR OPERATING LEASE Flight equipment held for operating lease are recorded at cost and depreciated to estimated residual values on a straight-line basis over their estimated remaining useful lives. Useful life is generally 25 years from the date of manufacture. Residual values are generally estimated to be 15% of the original manufacturer's estimated realized price for the flight equipment when new. Management may, at its discretion, make exceptions to this policy on a case by case basis when, in its judgment, the residual value calculated pursuant to this policy does not appear to reflect current expectations of residual values. Examples of such situations include, but are not limited to:
Estimated residual values and useful lives of flight equipment are reviewed and adjusted, if appropriate, during each reporting period. Major aircraft improvements or lessee-specific modifications to the aircraft to be performed by the Company pursuant to any lease agreement are accounted for as lease incentives and amortized against revenue over the term of the lease, assuming no lease renewals. Generally, lessees are responsible for repairs, scheduled maintenance and overhauls during the lease term and compliance with return conditions of flight equipment at lease termination. Major aircraft improvements and modifications incurred during an off-lease period are capitalized and depreciated over the remaining life of the flight equipment. In addition, costs paid by the Company for scheduled maintenance and overhauls are also capitalized and depreciated over a period to the next scheduled maintenance or overhaul event. Miscellaneous repairs are expensed when incurred. At the time of an aircraft acquisition, the Company evaluates the fair value of the aircraft, maintenance right and lease acquired. The Company evaluates whether the lease acquired with the aircraft is at fair value by comparing the contractual lease rates to the range of current lease rates of like aircraft. A lease premium is recognized when it is determined that the acquired lease's terms are above market value; lease discounts are recognized when it is determined that the acquired lease's terms are below fair value. Lease discounts are recorded in other liabilities and accreted as additional rental revenue on a straight-line basis over the lease term. Lease premiums are recorded in other assets and amortized against rental revenue on a straight-line basis over the lease term. |
||||||||||||
Impairment of Flight Equipment | IMPAIRMENT OF FLIGHT EQUIPMENT The Company evaluates flight equipment for impairment when circumstances indicate that the carrying amounts of such assets may not be recoverable. The Company's evaluation of impairment indicators include, but are not limited to, recent transactions for similar aircraft, adverse changes in market conditions for specific aircraft types, third party appraisals of aircraft, published values for similar aircraft, any occurrence of adverse changes in the aviation industry and the overall market conditions that could impact the fair value of the Company's aircraft. The review for recoverability includes an assessment of the estimated future cash flows associated with the use of an asset and its eventual disposition. If the sum of the expected future cash flows (undiscounted and without interest charges) is less than the carrying amount of the asset, the Company will assess whether the carrying values of the flight equipment exceed the fair values and an impairment loss is required. The undiscounted cash flows consist of cash flows from currently contracted leases, future projected lease rates, transition costs, estimated down time and estimated residual or scrap values for an aircraft. The Company will also record an impairment charge if the expected sale proceeds of an aircraft are less than its carrying value. The impairment loss is measured as the excess of the carrying amount of the impaired asset over its fair value. Future cash flows are assumed to occur under current market conditions and assume adequate time for a sale between a willing and able buyer and a willing seller. Expected future lease rates are based on all relevant information available, including the existing lease, current contracted rates for similar aircraft, appraisal data and industry trends. Residual value assumptions generally reflect an aircraft's salvage value, except where more recent industry information indicates a different value is appropriate. The preparation of these impairment analyses requires the use of assumptions and estimates, including the level of future rents, the residual value of the flight equipment to be realized upon sale at some date in the future, estimated downtime between re-leasing events and the amount of re-leasing costs. |
||||||||||||
Maintenance Rights | MAINTENANCE RIGHTS The Company identifies, measures and accounts for maintenance right assets and liabilities associated with its acquisitions of aircraft with in-place leases. A maintenance right asset represents the fair value of its contractual right under a lease to receive an aircraft in an improved maintenance condition as compared to the maintenance condition on the acquisition date. A maintenance right liability represents the Company's obligation to pay the lessee for the difference between the lease end contractual maintenance condition of the aircraft and the actual maintenance condition of the aircraft on the acquisition date. The Company's aircraft are typically subject to triple-net leases pursuant to which the lessee is responsible for maintenance, which is accomplished through one of two types of provisions in its leases: (i) end of lease return conditions (EOL Leases) or (ii) periodic maintenance payments (MR Leases). EOL Leases Under EOL Leases, the lessee is obligated to comply with certain return conditions which require the lessee to perform lease end maintenance work or make cash compensation payments at the end of the lease to bring the aircraft into a specified maintenance condition. Maintenance right assets in EOL Leases represent the difference in value between the contractual right to receive an aircraft in an improved maintenance condition as compared to the maintenance condition on the acquisition date. Maintenance right liabilities exist in EOL Leases if, on the acquisition date, the maintenance condition of the aircraft is greater than the contractual return condition in the lease and the Company is required to pay the lessee in cash for the improved maintenance condition. Maintenance right assets, net are recorded as a separate line item on the Company's balance sheet. When the Company has recorded maintenance right assets with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment to the Company by the lessee, the maintenance right asset is relieved and an aircraft improvement is recorded to the extent the improvement is substantiated and deemed to meet the Company's capitalization policy; (ii) the lessee pays the Company cash compensation at lease expiry in excess of the value of the maintenance right asset, the maintenance right asset is relieved and any excess is recognized as end of lease income consistent with our existing policy; or (iii) the lessee pays the Company cash compensation at lease expiry that is less than the value of the maintenance right asset, the cash is applied to the maintenance right asset and the balance of such asset is relieved and recorded as an aircraft improvement to the extent the improvement is substantiated and meets the Company's capitalization policy. Any aircraft improvement will be depreciated over a period to the next scheduled maintenance event in accordance with our policy with respect to major maintenance. When the Company has recorded maintenance right liabilities with respect to EOL Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry in the contractually specified maintenance condition without any cash payment by the Company to the lessee, the maintenance right liability is relieved and end of lease income is recognized; (ii) the Company pays the lessee cash compensation at lease expiry of less than the value of the maintenance right liability, the maintenance right liability is relieved and any difference is recognized as end of lease income; or (iii) the Company pays the lessee cash compensation at lease expiry in excess of the value of the maintenance right liability, the maintenance right liability is relieved and the excess amount is recorded as an aircraft improvement. MR Leases Under MR Leases, the lessee is required to make periodic payments to us for maintenance based upon usage of the aircraft. When qualified major maintenance is performed during the lease term, the Company is required to reimburse the lessee for the costs associated with such maintenance. At the end of lease, the Company is entitled to retain any cash receipts in excess of the required reimbursements to the lessee. Maintenance right assets in MR Leases represent the right to receive an aircraft in an improved condition relative to the actual condition on the acquisition date. The aircraft is improved by the performance of qualified major maintenance paid for by the lessee who is reimbursed by the Company from the periodic maintenance payments that it receives. Maintenance right assets, net will be recorded as a separate line item on the Company's balance sheet. When the Company has recorded maintenance right assets with respect to MR Leases, the following accounting scenarios exist: (i) the aircraft is returned at lease expiry and no qualified major maintenance has been performed by the lessee since the acquisition date, the maintenance right asset is offset by the amount of the associated maintenance payment liability and any excess is recorded as end of lease income, which is consistent with the Company's existing policy; or (ii) the Company has reimbursed the lessee for the performance of qualified major maintenance, the maintenance right asset is relieved and an aircraft improvement is recorded. There are no maintenance right liabilities for MR Leases. When flight equipment is sold, maintenance rights are released from the balance sheet as part of the disposition gain or loss. |
||||||||||||
Derivative Financial Instruments | DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative financial instruments to manage its exposure to interest rate and foreign currency risks. All derivatives are recognized on the balance sheet at their fair values. Pursuant to hedge accounting provisions, changes in the fair value of the item being hedged are recognized into earnings in the same period and in the same income statement line as the change in the fair value of the derivative instrument. On the date that the Company enters into a derivative contract, the Company formally documents all relationships between the hedging instruments and the hedged items, as well as its risk management objective and strategy for undertaking each hedge transaction. Derivative instruments designated in a hedge relationship to mitigate exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Cash flow hedges are accounted for by recording the fair value of the derivative instrument on the balance sheet as either a freestanding asset or liability. Changes in the fair value of a derivative that is designated and qualifies as an effective cash flow hedge are recorded in accumulated other comprehensive income, net of tax, until earnings are affected by the variability of cash flows of the hedged item. Any derivative gains and losses that are not effective in hedging the variability of expected cash flows of the hedged item or that do not qualify for hedge accounting treatment are recognized directly into income. At the hedge's inception and at least every reporting period thereafter, a formal assessment is performed to determine whether changes in cash flows of the derivative instrument have been highly effective in offsetting changes in the cash flows of the hedged items and whether they are expected to be highly effective in the future. The Company discontinues hedge accounting prospectively when (i) it determines that the derivative is no longer effective in offsetting changes in the cash flows of a hedged item; (ii) the derivative expires or is sold, terminated, or exercised; or (iii) management determines that designating the derivative as a hedging instrument is no longer appropriate. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the derivative instrument is carried at its fair market value on the balance sheet with changes in fair value recognized into current-period earnings. The remaining balance in accumulated other comprehensive income associated with the derivative that has been discontinued is not recognized in the income statement unless it is probable that the forecasted transaction will not occur. Such amounts are recognized in earnings when earnings are affected by the hedged transaction. |
||||||||||||
Other Assets | OTHER ASSETS Other assets consist primarily of debt issuance costs, unamortized lease premiums, initial direct lease costs and other miscellaneous receivables. The Company records costs incurred in arranging financing as debt issuance costs. Debt issuance costs are amortized to interest expense using the effective interest method over the terms of the credit facilities. Lease premiums are amortized into operating lease income over the lease term. |
||||||||||||
Security Deposits | SECURITY DEPOSITS In the normal course of leasing aircraft to third parties under its lease agreements, the Company receives cash or letters of credit as security for certain contractual obligations, which are held on deposit until termination of the lease. Security deposits are returned to the lessee at lease termination or taken into income if the lessee fails to perform under its lease. |
||||||||||||
Maintenance Payment Liability | MAINTENANCE PAYMENT LIABILITY The Company's flight equipment is typically subject to triple-net leases under which the lessee is responsible for maintenance, insurance and taxes. Fly's operating leases also obligate the lessees to comply with all governmental requirements applicable to the flight equipment, including without limitation, operational, maintenance, registration and airworthiness directives. Under the terms of the lease agreements, cash collected from lessees for future maintenance of the aircraft is recorded as maintenance payment liabilities. The Company does not recognize such maintenance payments as revenue during the lease. Maintenance payment liabilities are attributable to specific aircraft and are typically based on hours or cycles of utilization, depending upon the component. Upon the occurrence of qualified maintenance events, the lessee submits a request for reimbursement and upon disbursement of the funds, the liability is relieved. In some leases, the lessor may be obligated to contribute to maintenance related expenses on an aircraft during the term of the lease. In other instances, the lessee or lessor may be obligated to make a payment to the other party at lease termination based on a computation stipulated in the lease agreement. The calculation is based on utilization and condition of the airframe, engines and other major life-limited components as determined at lease termination. The Company may also incur maintenance expenses on off-lease aircraft. Scheduled major maintenance or overhaul activities and costs for certain high-value components that are paid by the Company are capitalized and depreciated over the period until the next overhaul is required. Such payments made by the Company for minor maintenance, repairs and re-leasing of aircraft are expensed as incurred. Maintenance payment liability balances at the end of a lease or any amount received as part of a redelivery adjustment are recorded as lease revenue at lease termination, including early termination upon a default. When flight equipment is sold, the maintenance payment liability amounts may be remitted to the buyer in accordance with the terms of the related agreements and are released from the balance sheet as part of the disposition gain or loss. |
||||||||||||
Revenue Recognition | REVENUE RECOGNITION Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Where revenue amounts do not meet these recognition criteria, recognition is delayed until the criteria are met.
|
||||||||||||
Share-Based Compensation | SHARE-BASED COMPENSATION The Company has a 2010 Omnibus Incentive Plan ("2010 Plan") permitting the issuance of up to 1,500,000 share grants in the form of (i) stock appreciation rights ("SARs"); (ii) restricted stock units ("RSUs"); (iii) nonqualified stock options; and (iv) other stock-based awards. The Company has issued all shares available under the 2010 Plan. Compensation expense associated with grants to employees were valued at the grant date and amortized on a straight-line basis over the service period. Grants to non-employees were initially measured at grant date, and then re-measured at each interim reporting period until the awards vested. Determining the appropriate fair value model and calculation of the fair value of stock-based awards required judgment, including estimating stock price volatility, forfeitures and expected grant life. |
||||||||||||
Taxes | TAXES The Company provides for income taxes by tax jurisdiction. Deferred income tax assets and liabilities are recognized for the future tax consequences of temporary differences between the financial statements and tax basis of existing assets and liabilities at the enacted tax rates expected to apply when the assets are recovered or liabilities are settled. A valuation allowance is used to reduce deferred tax assets to the amount which management ultimately expects to be more-likely-than-not realized. The Company applies a recognition threshold of more-likely-than-not to be sustained in the examination of income tax on uncertainties. The Company has elected to classify any interest on unpaid income taxes and penalties as a component of the provision for income taxes. No interest on unpaid income taxes and penalties were incurred during the years ended December 31, 2015, 2014 and 2013. |
||||||||||||
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenues arising from contracts with customers. The guidance specifically notes that lease contracts with customers are a scope exception. In August 2015, FASB issued ASU 2015-14, deferring the effective date of ASU 2014-09, Revenue from Contracts with Customers (Topic 606), by one year for all entities and permitting early adoption on a limited basis. Specifically, for public business entities, the standard will be effective for annual reporting periods (including interim periods) beginning after December 15, 2017. Early adoption will be permitted as of the annual reporting period (including interim periods) beginning after December 15, 2016. The Company will adopt the guidance effective January 1, 2018. The Company anticipates that the adoption of the standard will not have a material effect on the Company's consolidated financial condition, results of operations or cash flows. In August 2014, FASB issued ASU 2014-15, update to Accounting Standards Codification (ASC) subtopic 250-40, Presentation of Financial Statements-Going Concern. The amendments require management to assess an entity's ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in the U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term "substantial doubt", (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of management's plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). ASU 2014-15 will be effective for annual reporting periods (including interim periods) ending after December 15, 2016, and early adoption is permitted. The Company will adopt the guidance effective January 1, 2017. The Company is currently assessing the impact of the guidance. In January 2015, FASB issued ASU 2015-01, Extraordinary and Unusual Items, which eliminates the concept of an extraordinary item from U.S. GAAP. As a result, an entity will no longer (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; or (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. However, the ASU does not affect the reporting and disclosure requirements for an event that is unusual in nature or that occurs infrequently. ASU 2015-01 is effective for annual reporting periods (including interim periods), beginning after December 15, 2015, and early adoption is permitted. The Company adopted the guidance effective January 1, 2016. The Company anticipates that the adoption of the standard will not have a material effect on the Company's consolidated financial condition, results of operations or cash flows. In February 2015, FASB issued ASU 2015-02, which amends ASC 810, Consolidation. The amendment changes the consolidation analysis required under U.S. GAAP and could have an impact on the consolidation conclusions of the reporting entity. Specifically, the amendment affects the consolidation analysis of reporting entities that are involved with Variable Interest Entities, particularly those that have fee arrangements and related party transactions. ASU 2015-02 is effective for annual reporting periods (including interim periods), beginning after December 15, 2015, and early adoption is permitted. The Company adopted the guidance effective January 1, 2016. The Company anticipates that the adoption of the standard will not have a material effect on the Company's consolidated financial condition, results of operations or cash flows. In April 2015, FASB issued ASU 2015-03, Interest - Imputation of Interest, which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the accounting treatment for debt discounts. The recognition and measurement guidance of debt issuance costs are not affected by this update. The Company adopted the guidance effective January 1, 2016. The Company anticipates that the adoption of the standard will not have an effect on the Company's consolidated financial condition, results of operations or cash flows. In February 2016, FASB issued its new lease standard, ASU 2016-02, Leases. Under the new standard, the accounting for leases by lessors would basically remain unchanged from the existing concepts in ASC 840, Leases. In addition, FASB has decided that lessors would be precluded from recognizing selling profit and revenue at lease commencement for any sales-type or direct finance lease that does not transfer control of the underlying asset to the lessee. The standard will be effective for public business entities for annual periods (including interim periods), beginning after December 15, 2018, and early adoption will be permitted. The Company is currently evaluating the potential impact the adoption of the standard will have on its consolidated financial condition, results of operations or cash flows. |
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restatement of Prior Financial Statements | The cumulative adjustments to correct the errors in the consolidated financial statements for all periods prior to January 1, 2013 are recorded as adjustments to retained earnings at January 1, 2013 as shown in the consolidated statements of shareholders' equity. The cumulative effect of those adjustments decreased previously reported retained earnings by $8.2 million at January 1, 2013 (dollars in thousands).
The following tables set forth the correction to each of the individual affected line items in the consolidated balance sheet as of December 31, 2014 and the related consolidated statements of income for the years ended December 31, 2014 and 2013. The restated amounts presented below reflect the impact of these corrections. The Company did not present tables for the adjustments for the Consolidated Statements of Cash Flows since all of the adjustments were within the operating section of the Consolidated Statements of Cash Flows. The above adjustments did not affect total cash flows from operating activities, financing activities or investing activities for any period presented. Consolidated Balance Sheet AT DECEMBER 31, 2014 (Dollars in thousands, except par value data)
Consolidated Statements of Income FOR THE YEAR ENDED DECEMBER 31, 2014 (Dollars in thousands, except per share data)
FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in thousands, except per share data)
Consolidated Statements of Shareholders' Equity FOR THE YEARS ENDED DECEMBER 31, 2013, 2014 AND 2015 (Dollars in thousands)
Consolidated Statements of Cash Flows FOR THE YEAR ENDED DECEMBER 31, 2014 (Dollars in thousands)
FOR THE YEAR ENDED DECEMBER 31, 2013 (Dollars in thousands)
|
INVESTMENT IN DIRECT FINANCE LEASE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENT IN DIRECT FINANCE LEASE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Investment in Direct Finance Lease | The Company's net investment in direct finance lease consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease | Presented below are the contracted future minimum rental payments due under non-cancellable finance lease, as of December 31, 2015.
|
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Flight Equipment Held for Operating Lease | Flight equipment held for operating lease consists of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Flight Equipment Held for Operating Lease by Geographic Region | The distribution of the net book value of flight equipment held for operating lease by geographic region is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Lease Revenue by Geographic Region | The distribution of operating lease revenue by geographic region for the years ended December 31, 2015, 2014 and 2013 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases | Presented below are the contracted future minimum rental payments due under non-cancellable operating leases, as of December 31, 2015. For leases that have floating rental rates based on either the one, three or six-month LIBOR, the future minimum rental payments due assume that the rental payment due as of December 31, 2015 is held constant for the duration of the lease.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Lease Incentives | At December 31, 2015, lease incentive amortization for the next five years and thereafter is as follows:
|
MAINTENANCE RIGHTS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MAINTENANCE RIGHTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Maintenance Rights, Net | Changes in maintenance right assets, net of maintenance right liabilities, during the years ended December 31, 2015 and 2014 were as follows:
|
OTHER ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | The principal components of the Company's other assets are as follows:
|
UNSECURED BORROWINGS (Tables) - Unsecured Borrowings [Member] |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2020 Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Debt Redemption Prices | At any time prior to December 15, 2016, the Company may redeem up to 35% of the original principal amount of the 2020 Notes with the proceeds of certain equity offerings at a redemption price of 106.75% of the principal amount thereof, together with accrued and unpaid interest to, but not including, the date of redemption. On and after December 15, 2016, the Company may redeem the 2020 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unsecured Debt Redemption Prices | At any time prior to October 15, 2017, the Company may redeem up to 35% of the original principal amount of the 2021 Notes with the proceeds of certain equity offerings at a redemption price of 106.375% of the principal amount thereof, together with accrued and unpaid interest to, but not including, the date of redemption. On and after October 15, 2017, the Company may redeem the 2021 Notes, in whole or in part, at the redemption prices listed below, plus accrued and unpaid interest to the redemption date.
|
SECURED BORROWINGS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings | The Company's secured borrowings balance, net of unamortized debt discounts, as of December 31, 2015 is presented below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted Average Interest Rates on Tranche Loans |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Principal Payments on Borrowings | The anticipated future minimum principal payments due for its borrowings are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Member] | Securitization Notes [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Securitization Notes
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Member] | Nord LB Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Nord LB Facility
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Member] | CBA Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | CBA Facility
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Member] | Term Loan [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Term Loan
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Member] | Fly Acquisition II Facility [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Fly Acquisition II Facility
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings | Other Aircraft Secured Borrowings
|
DERIVATIVES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Designated Derivative Assets | As of December 31, 2015, the Company had the following designated derivative instruments classified as derivative assets on the balance sheet (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Designated Derivative Liabilities | As of December 31, 2015, the Company had the following designated derivative instruments classified as derivative liabilities on the balance sheet (dollars in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dedesignated Derivatives | As of December 31, 2015, the Company had the following dedesignated derivative instruments classified as derivative assets on the balance sheet (dollar amount in thousands):
As of December 31, 2015, the Company had the following dedesignated derivative instruments classified as derivative liabilities on the balance sheet (dollar amount in thousands):
|
INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Expense (Benefit) by Jurisdiction | Income tax expense (benefit) by jurisdiction is shown below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Deferred Tax Asset (Liability) | The principal components of the Company's net deferred tax asset (liability) were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Statutory to Effective Tax Rate | The table below is a reconciliation of the Irish statutory corporation tax rate of 12.5% on trading income to the Company's recorded income tax expense (benefit):
|
OTHER LIABILITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER LIABILITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | The following table describes the principal components of the Company's other liabilities:
|
SHARE-BASED COMPENSATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARE-BASED COMPENSATION [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SAR Activity | A summary of the Company's SAR activity for the year ended December 31, 2015, 2014 and 2013 are presented as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RSU Activity | A summary of the Company's RSU activity for the year ended December 31, 2015, 2014 and 2013 is as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Assumptions | The Company uses the Black-Scholes option pricing model to determine the fair value of SARs. The fair value of SARs expected to vest was estimated on the date of grant, or if applicable, on the measurement date using the following assumptions:
|
EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per common share using the two-class method:
|
RELATED PARTY TRANSACTIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RELATED PARTY TRANSACTIONS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum Long-Term Contractual Obligations With BBAM LP, Excluding Rent Fees | The Company's minimum long-term contractual obligations with BBAM LP as of December 31, 2015, excluding rent fees, consisted of the following:
|
FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments | The carrying amounts and fair values of the Company's financial instruments are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset and Liabilities Measured at Fair Value on Recurring Basis | As of December 31, 2015 and 2014, the categorized asset and liabilities measured at fair value on a recurring basis, based upon the lowest level of significant inputs to the valuations are as follows:
|
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unaudited Quarterly Financial Statements | The unaudited quarterly financial information for each of the quarters in the year ended December 31, 2015 is presented below:
The unaudited quarterly financial information for each of the quarters in the year ended December 31, 2014 is presented below:
|
ORGANIZATION (Details) |
12 Months Ended | |
---|---|---|
Dec. 31, 2015
Director
$ / shares
shares
|
Dec. 31, 2014
$ / shares
shares
|
|
Organization [Abstract] | ||
Manager shares, issued (in shares) | shares | 100 | 100 |
Manager shares, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 |
Maximum [Member] | ||
Organization [Abstract] | ||
Number of directors that can be appointed by Manager Shares | Director | 0.43 |
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS, Cumulative Adjustments (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
[1] |
Jun. 30, 2015
USD ($)
|
[1] |
Mar. 31, 2015
USD ($)
|
[1] |
Dec. 31, 2014
USD ($)
|
Sep. 30, 2014
USD ($)
|
[1] |
Jun. 30, 2014
USD ($)
|
[1] |
Mar. 31, 2014
USD ($)
|
[1] |
Dec. 31, 2015
USD ($)
Provision
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
Aircraft
|
Dec. 31, 2012
USD ($)
|
|||||||
Prior Period Adjustments [Abstract] | ||||||||||||||||||||||||
Retained earnings | $ 95,138 | $ 114,782 | [1] | $ 95,138 | $ 114,782 | [1] | $ 74,947 | [1] | ||||||||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | 17,314 | [1] | $ 13,471 | $ 21,746 | $ 7,653 | $ 22,798 | 60,184 | [1] | $ 53,940 | [1] | ||||||||||
Number of impaired aircraft | Aircraft | 1 | |||||||||||||||||||||||
Minimum [Member] | ||||||||||||||||||||||||
Prior Period Adjustments [Abstract] | ||||||||||||||||||||||||
Number of types of maintenance provisions in leases | Provision | 1 | |||||||||||||||||||||||
Maximum [Member] | ||||||||||||||||||||||||
Prior Period Adjustments [Abstract] | ||||||||||||||||||||||||
Number of types of maintenance provisions in leases | Provision | 2 | |||||||||||||||||||||||
As Previously Reported [Member] | ||||||||||||||||||||||||
Prior Period Adjustments [Abstract] | ||||||||||||||||||||||||
Retained earnings | $ 117,402 | 117,402 | 83,138 | |||||||||||||||||||||
Net income | 56,077 | $ 52,476 | ||||||||||||||||||||||
Adjustments [Member] | ||||||||||||||||||||||||
Prior Period Adjustments [Abstract] | ||||||||||||||||||||||||
Retained earnings | $ (8,191) | |||||||||||||||||||||||
Net income | $ 4,107 | $ 1,464 | ||||||||||||||||||||||
|
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS, Consolidated Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|||||
---|---|---|---|---|---|---|---|---|---|
Assets | |||||||||
Cash and cash equivalents | $ 275,998 | $ 337,560 | [1] | $ 404,472 | [1] | $ 163,124 | [1] | ||
Restricted cash and cash equivalents | 174,933 | 139,139 | [1] | ||||||
Rent receivables | 124 | 4,887 | [1] | ||||||
Investment in unconsolidated subsidiary | 7,170 | 4,002 | [1] | ||||||
Investment in direct finance lease, net | 34,878 | 0 | [1] | ||||||
Flight equipment held for sale, net | 237,262 | 0 | [1] | ||||||
Flight equipment held for operating lease, net | 2,585,426 | 3,556,884 | [1] | ||||||
Maintenance rights, net | 94,493 | 144,920 | [1] | 122,721 | |||||
Fair value of derivative assets | 241 | 2,067 | [1] | ||||||
Other assets, net | 17,750 | 28,949 | [1] | ||||||
Total assets | 3,428,275 | 4,218,408 | [1] | ||||||
Liabilities | |||||||||
Accounts payable and accrued liabilities | 17,548 | 18,431 | [1] | ||||||
Rentals received in advance | 14,560 | 19,751 | [1] | ||||||
Payable to related parties | 7,170 | 2,772 | [1] | ||||||
Security deposits | 48,876 | 64,058 | [1] | ||||||
Maintenance payment liability | 194,543 | 254,514 | [1] | ||||||
Unsecured borrowings, net | 691,109 | 689,452 | [1] | ||||||
Secured borrowings, net | 1,705,311 | 2,332,669 | [1] | ||||||
Deferred tax liability, net | 20,741 | 15,306 | [1] | ||||||
Fair value of derivative liabilities | 19,327 | 23,311 | [1] | ||||||
Other liabilities | 52,126 | 41,890 | [1] | ||||||
Total liabilities | 2,771,311 | 3,462,154 | [1] | ||||||
Shareholders' equity | |||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 41,432,998 shares issued and outstanding at December 31, 2014 | 36 | 41 | [1] | ||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | 0 | 0 | [1] | ||||||
Additional paid-in capital | 577,290 | 658,522 | [1] | ||||||
Retained earnings | 95,138 | 114,782 | [1] | 74,947 | [1] | ||||
Accumulated other comprehensive loss, net | (15,500) | (17,091) | [1] | ||||||
Total shareholders' equity | 656,964 | 756,254 | [1] | 742,096 | [1] | 523,811 | [1] | ||
Total liabilities and shareholders' equity | $ 3,428,275 | 4,218,408 | [1] | ||||||
As Previously Reported [Member] | |||||||||
Assets | |||||||||
Cash and cash equivalents | 337,560 | 404,472 | 163,124 | ||||||
Restricted cash and cash equivalents | 139,139 | ||||||||
Rent receivables | 4,887 | ||||||||
Investment in unconsolidated subsidiary | 4,002 | ||||||||
Investment in direct finance lease, net | 0 | ||||||||
Flight equipment held for sale, net | 0 | ||||||||
Flight equipment held for operating lease, net | 3,705,407 | ||||||||
Maintenance rights, net | 0 | ||||||||
Fair value of derivative assets | 2,067 | ||||||||
Other assets, net | 31,608 | ||||||||
Total assets | 4,224,670 | ||||||||
Liabilities | |||||||||
Accounts payable and accrued liabilities | 18,431 | ||||||||
Rentals received in advance | 19,751 | ||||||||
Payable to related parties | 2,772 | ||||||||
Security deposits | 64,058 | ||||||||
Maintenance payment liability | 254,514 | ||||||||
Unsecured borrowings, net | 689,452 | ||||||||
Secured borrowings, net | 2,335,328 | ||||||||
Deferred tax liability, net | 16,289 | ||||||||
Fair value of derivative liabilities | 23,311 | ||||||||
Other liabilities | 41,890 | ||||||||
Total liabilities | 3,465,796 | ||||||||
Shareholders' equity | |||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 41,432,998 shares issued and outstanding at December 31, 2014 | 41 | ||||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | 0 | ||||||||
Additional paid-in capital | 658,522 | ||||||||
Retained earnings | 117,402 | 83,138 | |||||||
Accumulated other comprehensive loss, net | (17,091) | ||||||||
Total shareholders' equity | 758,874 | 532,002 | |||||||
Total liabilities and shareholders' equity | 4,224,670 | ||||||||
Adjustments [Member] | |||||||||
Assets | |||||||||
Cash and cash equivalents | 0 | $ 0 | 0 | ||||||
Shareholders' equity | |||||||||
Retained earnings | (8,191) | ||||||||
Total shareholders' equity | $ (8,191) | ||||||||
Maintenance Rights Adjustments [Member] | Adjustments [Member] | |||||||||
Assets | |||||||||
Cash and cash equivalents | 0 | ||||||||
Restricted cash and cash equivalents | 0 | ||||||||
Rent receivables | 0 | ||||||||
Investment in unconsolidated subsidiary | 0 | ||||||||
Investment in direct finance lease, net | 0 | ||||||||
Flight equipment held for sale, net | 0 | ||||||||
Flight equipment held for operating lease, net | (143,336) | ||||||||
Maintenance rights, net | 144,920 | ||||||||
Fair value of derivative assets | 0 | ||||||||
Other assets, net | 0 | ||||||||
Total assets | 1,584 | ||||||||
Liabilities | |||||||||
Accounts payable and accrued liabilities | 0 | ||||||||
Rentals received in advance | 0 | ||||||||
Payable to related parties | 0 | ||||||||
Security deposits | 0 | ||||||||
Maintenance payment liability | 0 | ||||||||
Unsecured borrowings, net | 0 | ||||||||
Secured borrowings, net | 0 | ||||||||
Deferred tax liability, net | 294 | ||||||||
Fair value of derivative liabilities | 0 | ||||||||
Other liabilities | 0 | ||||||||
Total liabilities | 294 | ||||||||
Shareholders' equity | |||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 41,432,998 shares issued and outstanding at December 31, 2014 | 0 | ||||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | 0 | ||||||||
Additional paid-in capital | 0 | ||||||||
Retained earnings | 1,290 | ||||||||
Accumulated other comprehensive loss, net | 0 | ||||||||
Total shareholders' equity | 1,290 | ||||||||
Total liabilities and shareholders' equity | 1,584 | ||||||||
Other Adjustments [Member] | Adjustments [Member] | |||||||||
Assets | |||||||||
Cash and cash equivalents | 0 | ||||||||
Restricted cash and cash equivalents | 0 | ||||||||
Rent receivables | 0 | ||||||||
Investment in unconsolidated subsidiary | 0 | ||||||||
Investment in direct finance lease, net | 0 | ||||||||
Flight equipment held for sale, net | 0 | ||||||||
Flight equipment held for operating lease, net | (5,187) | ||||||||
Maintenance rights, net | 0 | ||||||||
Fair value of derivative assets | 0 | ||||||||
Other assets, net | (2,659) | ||||||||
Total assets | (7,846) | ||||||||
Liabilities | |||||||||
Accounts payable and accrued liabilities | 0 | ||||||||
Rentals received in advance | 0 | ||||||||
Payable to related parties | 0 | ||||||||
Security deposits | 0 | ||||||||
Maintenance payment liability | 0 | ||||||||
Unsecured borrowings, net | 0 | ||||||||
Secured borrowings, net | (2,659) | ||||||||
Deferred tax liability, net | (1,277) | ||||||||
Fair value of derivative liabilities | 0 | ||||||||
Other liabilities | 0 | ||||||||
Total liabilities | (3,936) | ||||||||
Shareholders' equity | |||||||||
Common shares, $0.001 par value; 499,999,900 shares authorized; 41,432,998 shares issued and outstanding at December 31, 2014 | 0 | ||||||||
Manager shares, $0.001 par value; 100 shares authorized, issued and outstanding | 0 | ||||||||
Additional paid-in capital | 0 | ||||||||
Retained earnings | (3,910) | ||||||||
Accumulated other comprehensive loss, net | 0 | ||||||||
Total shareholders' equity | (3,910) | ||||||||
Total liabilities and shareholders' equity | $ (7,846) | ||||||||
|
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS, Consolidated Balance Sheets Parenthetical (Details) - $ / shares |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|
Shareholders' equity | ||
Common shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common shares, shares authorized (in shares) | 499,999,900 | 499,999,900 |
Common shares, shares issued (in shares) | 35,671,400 | 41,432,998 |
Common shares, shares outstanding (in shares) | 35,671,400 | 41,432,998 |
Manager shares, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Manager shares, shares authorized (in shares) | 100 | 100 |
Manager shares, shares issued (in shares) | 100 | 100 |
Manager shares, shares outstanding (in shares) | 100 | 100 |
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS, Consolidated Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
[1] | Dec. 31, 2014 |
[1] | Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
[1] | Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Revenues | ||||||||||||||||||||||
Operating lease revenue | $ 429,691 | $ 406,563 | [1] | $ 351,792 | [1] | |||||||||||||||||
Finance lease income | 299 | 0 | [1] | 0 | [1] | |||||||||||||||||
Equity earnings from unconsolidated subsidiary | 1,159 | 3,562 | [1] | 1,491 | [1] | |||||||||||||||||
Gain on sale of aircraft | 28,959 | 14,761 | [1] | 5,421 | [1] | |||||||||||||||||
Interest and other income | 2,289 | 662 | [1] | 1,930 | [1] | |||||||||||||||||
Total revenues | $ 123,634 | $ 112,655 | $ 102,822 | $ 123,286 | $ 120,288 | $ 102,374 | $ 108,566 | $ 94,320 | 462,397 | 425,548 | [1] | 360,634 | [1] | |||||||||
Expenses | ||||||||||||||||||||||
Depreciation | 159,732 | 166,983 | [1] | 138,336 | [1] | |||||||||||||||||
Aircraft impairment | 66,093 | 1,200 | [1] | 6,166 | [1] | |||||||||||||||||
Interest expense | 145,448 | 142,519 | [1] | 120,399 | [1] | |||||||||||||||||
Selling, general and administrative | 33,674 | 41,033 | [1] | 39,593 | [1] | |||||||||||||||||
Ineffective, dedesignated and terminated derivatives | 4,134 | 72 | [1] | (1,263) | [1] | |||||||||||||||||
Net (gain) loss on extinguishment of debt | 17,491 | (2,194) | [1] | (15,147) | [1] | |||||||||||||||||
Maintenance and other costs | 7,628 | 7,060 | [1] | 15,476 | [1] | |||||||||||||||||
Total expenses | 434,200 | 356,673 | [1] | 303,560 | [1] | |||||||||||||||||
Net income before provision for income taxes | 28,197 | 68,875 | [1] | 57,074 | [1] | |||||||||||||||||
Provision for income taxes | 5,399 | 8,691 | [1] | 3,134 | [1] | |||||||||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ 17,314 | $ 13,471 | $ 21,746 | $ 7,653 | $ 22,798 | $ 60,184 | [1] | $ 53,940 | [1] | |||||||||
Earnings per share: | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | [1] | $ 1.55 | [1] | |||||||||
Diluted (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | [1] | $ 1.55 | [1] | |||||||||
As Previously Reported [Member] | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Operating lease revenue | $ 404,668 | $ 359,409 | ||||||||||||||||||||
Finance lease income | 0 | 0 | ||||||||||||||||||||
Equity earnings from unconsolidated subsidiary | 2,456 | 1,871 | ||||||||||||||||||||
Gain on sale of aircraft | 18,878 | 6,277 | ||||||||||||||||||||
Interest and other income | 662 | 1,930 | ||||||||||||||||||||
Total revenues | 426,664 | 369,487 | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||
Depreciation | 175,547 | 146,400 | ||||||||||||||||||||
Aircraft impairment | 0 | 8,825 | ||||||||||||||||||||
Interest expense | 142,519 | 120,399 | ||||||||||||||||||||
Selling, general and administrative | 41,148 | 37,418 | ||||||||||||||||||||
Ineffective, dedesignated and terminated derivatives | 72 | (1,263) | ||||||||||||||||||||
Net (gain) loss on extinguishment of debt | (3,922) | (15,881) | ||||||||||||||||||||
Maintenance and other costs | 6,960 | 15,454 | ||||||||||||||||||||
Total expenses | 362,324 | 311,352 | ||||||||||||||||||||
Net income before provision for income taxes | 64,340 | 58,135 | ||||||||||||||||||||
Provision for income taxes | 8,263 | 5,659 | ||||||||||||||||||||
Net income | $ 56,077 | $ 52,476 | ||||||||||||||||||||
Earnings per share: | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 1.32 | $ 1.51 | ||||||||||||||||||||
Diluted (in dollars per shares) | $ 1.32 | $ 1.50 | ||||||||||||||||||||
Adjustments [Member] | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Finance lease income | $ 0 | $ 0 | ||||||||||||||||||||
Equity earnings from unconsolidated subsidiary | 1,106 | (380) | ||||||||||||||||||||
Gain on sale of aircraft | (4,117) | (856) | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||
Depreciation | (8,564) | (8,064) | ||||||||||||||||||||
Aircraft impairment | 1,200 | (2,659) | ||||||||||||||||||||
Net income | 4,107 | 1,464 | ||||||||||||||||||||
Maintenance Rights Adjustments [Member] | Adjustments [Member] | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Operating lease revenue | 1,895 | (8,062) | ||||||||||||||||||||
Finance lease income | 0 | 0 | ||||||||||||||||||||
Equity earnings from unconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||
Gain on sale of aircraft | (4,564) | (856) | ||||||||||||||||||||
Interest and other income | 0 | 0 | ||||||||||||||||||||
Total revenues | (2,669) | (8,918) | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||
Depreciation | (8,290) | (7,854) | ||||||||||||||||||||
Aircraft impairment | 0 | (2,659) | ||||||||||||||||||||
Interest expense | 0 | 0 | ||||||||||||||||||||
Selling, general and administrative | 0 | 0 | ||||||||||||||||||||
Ineffective, dedesignated and terminated derivatives | 0 | 0 | ||||||||||||||||||||
Net (gain) loss on extinguishment of debt | 1,713 | 0 | ||||||||||||||||||||
Maintenance and other costs | 0 | 0 | ||||||||||||||||||||
Total expenses | (6,577) | (10,513) | ||||||||||||||||||||
Net income before provision for income taxes | 3,908 | 1,595 | ||||||||||||||||||||
Provision for income taxes | 751 | 118 | ||||||||||||||||||||
Net income | 3,157 | 1,477 | ||||||||||||||||||||
Other Adjustments [Member] | Adjustments [Member] | ||||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Operating lease revenue | 0 | 445 | ||||||||||||||||||||
Finance lease income | 0 | 0 | ||||||||||||||||||||
Equity earnings from unconsolidated subsidiary | 1,106 | (380) | ||||||||||||||||||||
Gain on sale of aircraft | 447 | 0 | ||||||||||||||||||||
Interest and other income | 0 | 0 | ||||||||||||||||||||
Total revenues | 1,553 | 65 | ||||||||||||||||||||
Expenses | ||||||||||||||||||||||
Depreciation | (274) | (210) | ||||||||||||||||||||
Aircraft impairment | 1,200 | 0 | ||||||||||||||||||||
Interest expense | 0 | 0 | ||||||||||||||||||||
Selling, general and administrative | (115) | 2,175 | ||||||||||||||||||||
Ineffective, dedesignated and terminated derivatives | 0 | 0 | ||||||||||||||||||||
Net (gain) loss on extinguishment of debt | 15 | 734 | ||||||||||||||||||||
Maintenance and other costs | 100 | 22 | ||||||||||||||||||||
Total expenses | 926 | 2,721 | ||||||||||||||||||||
Net income before provision for income taxes | 627 | (2,656) | ||||||||||||||||||||
Provision for income taxes | (323) | (2,643) | ||||||||||||||||||||
Net income | $ 950 | $ (13) | ||||||||||||||||||||
|
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS, Consolidated Statements of Shareholders' Equity (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 22, 2015 |
Jul. 31, 2013 |
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||||||||||||
Manager Shares [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | [1] | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||||||||||||||||
Beginning balance (in shares) | [1] | 100 | 100 | 100 | 100 | 100 | ||||||||||||||||||||||||||||
Dividends to shareholders | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||||||
Dividend equivalents | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses | $ 0 | |||||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses (in shares) | 0 | |||||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants (in shares) | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised | $ 0 | $ 0 | ||||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised (in shares) | 0 | 0 | ||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program | $ 0 | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program (in shares) | 0 | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer | $ 0 | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer (in shares) | 0 | |||||||||||||||||||||||||||||||||
Share-based compensation | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset | [2] | 0 | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | [1] | 0 | [1] | |||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [2] | 0 | 0 | |||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [2] | 0 | ||||||||||||||||||||||||||||||||
Ending balance | $ 0 | $ 0 | [1] | $ 0 | $ 0 | [1] | $ 0 | [1] | ||||||||||||||||||||||||||
Ending balance (in shares) | 100 | 100 | [1] | 100 | 100 | [1] | 100 | [1] | ||||||||||||||||||||||||||
Common Shares [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | [1] | $ 41 | $ 41 | $ 41 | $ 41 | $ 28 | ||||||||||||||||||||||||||||
Beginning balance (in shares) | [1] | 41,432,998 | 41,306,338 | 41,432,998 | 41,306,338 | 28,040,305 | ||||||||||||||||||||||||||||
Dividends to shareholders | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||||||
Dividend equivalents | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses | $ 13 | |||||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses (in shares) | 13,142,856 | |||||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants (in shares) | 36,075 | 119,666 | 122,534 | |||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised | $ 0 | $ 0 | ||||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised (in shares) | 6,994 | 643 | ||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program | $ 0 | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program (in shares) | (421,329) | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer | $ (5) | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer (in shares) | (5,376,344) | |||||||||||||||||||||||||||||||||
Share-based compensation | $ 0 | $ 0 | $ 0 | |||||||||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset | [2] | 0 | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | [1] | 0 | [1] | |||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [2] | 0 | 0 | |||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [2] | 0 | ||||||||||||||||||||||||||||||||
Ending balance | $ 36 | $ 41 | [1] | $ 36 | $ 41 | [1] | $ 41 | [1] | ||||||||||||||||||||||||||
Ending balance (in shares) | 35,671,400 | 41,432,998 | [1] | 35,671,400 | 41,432,998 | [1] | 41,306,338 | [1] | ||||||||||||||||||||||||||
Additional Paid-in Capital [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | [1] | $ 658,522 | $ 658,492 | $ 658,522 | $ 658,492 | $ 482,733 | ||||||||||||||||||||||||||||
Dividends to shareholders | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Dividend equivalents | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses | 172,582 | |||||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised | 0 | 0 | ||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program | (5,529) | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer | (75,898) | |||||||||||||||||||||||||||||||||
Share-based compensation | 195 | 30 | 3,177 | |||||||||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset | [2] | 0 | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | [1] | 0 | [1] | |||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [2] | 0 | 0 | |||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [2] | 0 | ||||||||||||||||||||||||||||||||
Ending balance | $ 577,290 | $ 658,522 | [1] | 577,290 | 658,522 | [1] | 658,492 | [1] | ||||||||||||||||||||||||||
Retained Earnings (Deficit) [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | [1] | 114,782 | 97,416 | 114,782 | 97,416 | 74,947 | ||||||||||||||||||||||||||||
Dividends to shareholders | (41,388) | (41,392) | (30,531) | |||||||||||||||||||||||||||||||
Dividend equivalents | (1,054) | (1,426) | (940) | |||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses | 0 | |||||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised | 0 | 0 | ||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program | 0 | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer | 0 | |||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset | [2] | 0 | ||||||||||||||||||||||||||||||||
Net income | 22,798 | 60,184 | [1] | 53,940 | [1] | |||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2] | 0 | 0 | 0 | ||||||||||||||||||||||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [2] | 0 | 0 | |||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [2] | 0 | ||||||||||||||||||||||||||||||||
Ending balance | 95,138 | 114,782 | [1] | 95,138 | 114,782 | [1] | 97,416 | [1] | ||||||||||||||||||||||||||
Other Comprehensive Loss, Net [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | [1] | (17,091) | (13,853) | (17,091) | (13,853) | (33,897) | ||||||||||||||||||||||||||||
Dividends to shareholders | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Dividend equivalents | 0 | |||||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses | 0 | |||||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised | 0 | 0 | ||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program | 0 | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer | 0 | |||||||||||||||||||||||||||||||||
Share-based compensation | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset | [2] | (747) | ||||||||||||||||||||||||||||||||
Net income | 0 | 0 | [1] | 0 | [1] | |||||||||||||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2] | 158 | (3,238) | 22,093 | ||||||||||||||||||||||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [2] | (130) | (1,302) | |||||||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [2] | 1,563 | ||||||||||||||||||||||||||||||||
Ending balance | (15,500) | (17,091) | [1] | (15,500) | (17,091) | [1] | (13,853) | [1] | ||||||||||||||||||||||||||
Beginning balance | [1] | 756,254 | 742,096 | 756,254 | 742,096 | 523,811 | ||||||||||||||||||||||||||||
Dividends to shareholders | (41,388) | (41,392) | (30,531) | |||||||||||||||||||||||||||||||
Dividend equivalents | (1,054) | (1,426) | (940) | |||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses | 172,595 | |||||||||||||||||||||||||||||||||
Shares issued in connection with public offering, net of expenses (in shares) | 13,142,856 | |||||||||||||||||||||||||||||||||
Shares issued in connection with vested share grants | 0 | 0 | 0 | |||||||||||||||||||||||||||||||
Shares issued in connection with SARs exercised | $ 0 | 0 | ||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program | $ (5,529) | |||||||||||||||||||||||||||||||||
Shares repurchased pursuant to share repurchase program (in shares) | (5,376,344) | (421,329) | 0 | |||||||||||||||||||||||||||||||
Shares repurchased pursuant to tender offer | $ (75,903) | |||||||||||||||||||||||||||||||||
Share-based compensation | 195 | $ 30 | 3,177 | |||||||||||||||||||||||||||||||
Derivative instruments terminated in connection with aircraft sale, net of deferred tax asset | [2] | (747) | ||||||||||||||||||||||||||||||||
Net income | 19,145 | $ 27,483 | $ (43,695) | 19,865 | [1] | 17,314 | [1] | $ 13,471 | $ 21,746 | $ 7,653 | [1] | 22,798 | 60,184 | [1] | 53,940 | [1] | ||||||||||||||||||
Net change in the fair value of derivatives, net of deferred tax asset/liability | [2],[3] | 158 | (3,238) | [1] | 22,093 | [1] | ||||||||||||||||||||||||||||
Reclassification from other comprehensive income (loss) into earnings due to termination of derivative liabilities, net of deferred tax | [4] | (130) | [2] | 0 | [1] | (1,302) | [1],[2] | |||||||||||||||||||||||||||
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, net of deferred tax | [5] | 1,563 | [2] | 0 | [1] | 0 | [1] | |||||||||||||||||||||||||||
Ending balance | $ 656,964 | 756,254 | [1] | 656,964 | 756,254 | [1] | 742,096 | [1] | ||||||||||||||||||||||||||
As Previously Reported [Member] | Manager Shares [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | $ 0 | |||||||||||||||||||||||||||||||||
Beginning balance (in shares) | 100 | |||||||||||||||||||||||||||||||||
As Previously Reported [Member] | Common Shares [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | $ 28 | |||||||||||||||||||||||||||||||||
Beginning balance (in shares) | 28,040,305 | |||||||||||||||||||||||||||||||||
As Previously Reported [Member] | Additional Paid-in Capital [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | $ 482,733 | |||||||||||||||||||||||||||||||||
As Previously Reported [Member] | Retained Earnings (Deficit) [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | 83,138 | |||||||||||||||||||||||||||||||||
As Previously Reported [Member] | Other Comprehensive Loss, Net [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | (33,897) | |||||||||||||||||||||||||||||||||
As Previously Reported [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | $ 758,874 | $ 758,874 | 532,002 | |||||||||||||||||||||||||||||||
Net income | 56,077 | 52,476 | ||||||||||||||||||||||||||||||||
Ending balance | $ 758,874 | 758,874 | ||||||||||||||||||||||||||||||||
Adjustments [Member] | Manager Shares [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | 0 | |||||||||||||||||||||||||||||||||
Adjustments [Member] | Common Shares [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | 0 | |||||||||||||||||||||||||||||||||
Adjustments [Member] | Additional Paid-in Capital [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | 0 | |||||||||||||||||||||||||||||||||
Adjustments [Member] | Retained Earnings (Deficit) [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | (8,191) | |||||||||||||||||||||||||||||||||
Adjustments [Member] | Other Comprehensive Loss, Net [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | 0 | |||||||||||||||||||||||||||||||||
Adjustments [Member] | ||||||||||||||||||||||||||||||||||
Consolidated Statement of Shareholders' Equity [Abstract] | ||||||||||||||||||||||||||||||||||
Beginning balance | (8,191) | |||||||||||||||||||||||||||||||||
Net income | $ 4,107 | $ 1,464 | ||||||||||||||||||||||||||||||||
|
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS, Consolidated Statements of Shareholders' Equity Parenthetical (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS [Abstract] | |||
Derivative instruments terminated in connection with aircraft sale, tax | $ (300,000) | ||
Change in fair value of derivatives, deferred tax expense (benefit) | $ 300,000 | $ (600,000) | 3,500,000 |
Reclassification from other comprehensive income into earnings due to termination of derivative liabilities, deferred tax expense (benefit) | (19,000) | $ (200,000) | |
Reclassification from other comprehensive loss into earnings due to derivatives that no longer qualified for hedge accounting treatment, deferred tax expense (benefit) | $ 200,000 |
RESTATEMENT OF PRIOR FINANCIAL STATEMENTS, Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2013 |
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||||
Net Income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | [1] | $ 17,314 | [1] | $ 13,471 | $ 21,746 | $ 7,653 | [1] | $ 22,798 | $ 60,184 | [1] | $ 53,940 | [1] | |||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (1,159) | (3,562) | [1] | (1,491) | [1] | ||||||||||||||||||
Direct finance lease income | (299) | 0 | [1] | 0 | [1] | ||||||||||||||||||
Gain on sale of aircraft | (28,959) | (14,761) | [1] | (5,421) | [1] | ||||||||||||||||||
Depreciation | 159,732 | 166,983 | [1] | 138,336 | [1] | ||||||||||||||||||
Aircraft impairment | 66,093 | 1,200 | [1] | 6,166 | [1] | ||||||||||||||||||
Amortization of debt discounts and debt issuance costs | 11,922 | 12,516 | [1] | 11,680 | [1] | ||||||||||||||||||
Amortization of lease incentives | 20,527 | 18,934 | [1] | 9,019 | [1] | ||||||||||||||||||
Amortization of lease discounts/premiums and other items | 2,046 | 2,841 | [1] | 2,228 | [1] | ||||||||||||||||||
Amortization of GAAM acquisition date fair value adjustments | 3,650 | 6,260 | [1] | 12,602 | [1] | ||||||||||||||||||
Net gain on debt modification and extinguishment | 13,868 | (2,247) | [1] | (15,881) | [1] | ||||||||||||||||||
Share-based compensation | 195 | 30 | [1] | 3,177 | [1] | ||||||||||||||||||
Unrealized foreign exchange gain | (1,247) | 0 | [1] | 0 | [1] | ||||||||||||||||||
Provision for deferred income taxes | 4,919 | 5,733 | [1] | 4,534 | [1] | ||||||||||||||||||
Unrealized gain on derivative instruments | 4,134 | 38 | [1] | (1,263) | [1] | ||||||||||||||||||
Security deposits and maintenance payment liability recognized into earnings | (48,658) | (32,271) | [1] | (23,298) | [1] | ||||||||||||||||||
Security deposits and maintenance payment claims applied towards operating lease revenues | 0 | 0 | [1] | (2,596) | [1] | ||||||||||||||||||
Distributions from unconsolidated subsidiary | 0 | 5,501 | [1] | 0 | [1] | ||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Rent receivables | 6,814 | (4,767) | [1] | (4,982) | [1] | ||||||||||||||||||
Other assets | 137 | (1,589) | [1] | (1,969) | [1] | ||||||||||||||||||
Payable to related parties | (19,407) | (12,848) | [1] | (7,613) | [1] | ||||||||||||||||||
Accounts payable, accrued liabilities and other liabilities | (2,183) | 18,990 | [1] | 4,306 | [1] | ||||||||||||||||||
Net cash flows provided by operating activities | 214,923 | 227,165 | [1] | 181,474 | [1] | ||||||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||||
Distributions from (investment in) unconsolidated subsidiary | (2,009) | 1,132 | [1] | 0 | [1] | ||||||||||||||||||
Rent received from direct finance lease | 424 | 0 | [1] | 0 | [1] | ||||||||||||||||||
Investment in direct finance lease | (33,596) | 0 | [1] | 0 | [1] | ||||||||||||||||||
Purchase of flight equipment | (567,523) | (915,450) | [1] | (632,944) | [1] | ||||||||||||||||||
Proceeds from sale of aircraft, net | 1,110,046 | 88,617 | [1] | 48,539 | [1] | ||||||||||||||||||
Payments for aircraft improvement | (8,196) | (9,841) | [1] | 0 | [1] | ||||||||||||||||||
Payments for maintenance | (18,609) | (5,017) | [1] | (24,185) | [1] | ||||||||||||||||||
Net cash flows provided by (used in) investing activities | 480,537 | (840,559) | [1] | (608,590) | [1] | ||||||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||||
Restricted cash and cash equivalents | (35,794) | 35,690 | [1] | (39,731) | [1] | ||||||||||||||||||
Security deposits received | 13,914 | 18,134 | [1] | 13,910 | [1] | ||||||||||||||||||
Security deposits returned | (7,788) | (4,728) | [1] | (7,271) | [1] | ||||||||||||||||||
Maintenance payment liability receipts | 84,491 | 85,172 | [1] | 56,968 | [1] | ||||||||||||||||||
Maintenance payment liability disbursements | (38,768) | (45,412) | [1] | (16,612) | [1] | ||||||||||||||||||
Net swap termination payments | (3,737) | 0 | [1] | 0 | [1] | ||||||||||||||||||
Debt extinguishment costs | 0 | 0 | [1] | (3,856) | [1] | ||||||||||||||||||
Debt issuance costs | (933) | (1,803) | [1] | (11,825) | [1] | ||||||||||||||||||
Proceeds from unsecured borrowings | 0 | 396,563 | [1] | 291,389 | [1] | ||||||||||||||||||
Proceeds from secured borrowings | 147,276 | 298,658 | [1] | 688,975 | [1] | ||||||||||||||||||
Repayment of secured borrowings | (791,385) | (192,974) | [1] | (444,607) | [1] | ||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | $ 172,600 | 0 | 0 | [1] | 172,595 | [1] | |||||||||||||||||
Shares repurchased | (81,432) | 0 | [1] | 0 | [1] | ||||||||||||||||||
Dividends paid | (41,388) | (41,392) | [1] | (30,531) | [1] | ||||||||||||||||||
Dividend equivalents | (1,054) | (1,426) | [1] | (940) | [1] | ||||||||||||||||||
Net cash flows (used in) provided by financing activities | (756,598) | 546,482 | [1] | 668,464 | [1] | ||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | (424) | 0 | [1] | 0 | [1] | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (61,562) | (66,912) | [1] | 241,348 | [1] | ||||||||||||||||||
Cash and cash equivalents at beginning of year | [1] | 337,560 | 404,472 | 337,560 | 404,472 | 163,124 | |||||||||||||||||
Cash and cash equivalents at end of year | $ 275,998 | 337,560 | [1] | 275,998 | 337,560 | [1] | 404,472 | [1] | |||||||||||||||
Cash paid during the year for: | |||||||||||||||||||||||
Interest | 132,780 | 119,745 | [1] | 97,481 | [1] | ||||||||||||||||||
Taxes | 384 | 188 | [1] | 84 | [1] | ||||||||||||||||||
Noncash Activities: | |||||||||||||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 3,292 | 1,938 | [1] | 1,414 | [1] | ||||||||||||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance | 2,523 | 0 | [1] | 4,446 | [1] | ||||||||||||||||||
Other liabilities applied to maintenance payment liability and rent receivables | 240 | 979 | [1] | 0 | [1] | ||||||||||||||||||
Noncash investing activities: | |||||||||||||||||||||||
Aircraft improvement | 1,587 | 2,882 | [1] | 2,334 | [1] | ||||||||||||||||||
Noncash activities in connection with purchase of aircraft | 19,382 | 26,002 | [1] | 1,774 | [1] | ||||||||||||||||||
Noncash activities in connection with sale of aircraft | 93,819 | 12,479 | [1] | 43,500 | [1] | ||||||||||||||||||
As Previously Reported [Member] | |||||||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||||
Net Income | 56,077 | 52,476 | |||||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (2,456) | (1,871) | |||||||||||||||||||||
Direct finance lease income | 0 | 0 | |||||||||||||||||||||
Gain on sale of aircraft | (18,878) | (6,277) | |||||||||||||||||||||
Depreciation | 175,547 | 146,400 | |||||||||||||||||||||
Aircraft impairment | 0 | 8,825 | |||||||||||||||||||||
Amortization of debt discounts and debt issuance costs | 5,380 | 5,735 | |||||||||||||||||||||
Amortization of lease incentives | 18,934 | 9,019 | |||||||||||||||||||||
Amortization of lease discounts/premiums and other items | 9,977 | 8,173 | |||||||||||||||||||||
Amortization of GAAM acquisition date fair value adjustments | 6,260 | 12,602 | |||||||||||||||||||||
Net gain on debt modification and extinguishment | (3,960) | (15,881) | |||||||||||||||||||||
Share-based compensation | 30 | 3,177 | |||||||||||||||||||||
Unrealized foreign exchange gain | 0 | 0 | |||||||||||||||||||||
Provision for deferred income taxes | 6,169 | 6,195 | |||||||||||||||||||||
Unrealized gain on derivative instruments | 38 | (1,263) | |||||||||||||||||||||
Security deposits and maintenance payment liability recognized into earnings | (30,376) | (31,360) | |||||||||||||||||||||
Security deposits and maintenance payment claims applied towards operating lease revenues | 0 | (2,596) | |||||||||||||||||||||
Distributions from unconsolidated subsidiary | 5,501 | 0 | |||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Rent receivables | (4,767) | (4,982) | |||||||||||||||||||||
Other assets | (1,589) | (1,969) | |||||||||||||||||||||
Payable to related parties | (12,848) | (10,544) | |||||||||||||||||||||
Accounts payable, accrued liabilities and other liabilities | 18,126 | 5,615 | |||||||||||||||||||||
Net cash flows provided by operating activities | 227,165 | 181,474 | |||||||||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||||
Distributions from (investment in) unconsolidated subsidiary | 1,132 | 0 | |||||||||||||||||||||
Rent received from direct finance lease | 0 | 0 | |||||||||||||||||||||
Investment in direct finance lease | 0 | 0 | |||||||||||||||||||||
Purchase of flight equipment | (915,450) | (632,944) | |||||||||||||||||||||
Proceeds from sale of aircraft, net | 88,617 | 48,539 | |||||||||||||||||||||
Payments for aircraft improvement | (9,841) | 0 | |||||||||||||||||||||
Payments for maintenance | (5,017) | (24,185) | |||||||||||||||||||||
Net cash flows provided by (used in) investing activities | (840,559) | (608,590) | |||||||||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||||
Restricted cash and cash equivalents | 35,690 | (39,731) | |||||||||||||||||||||
Security deposits received | 18,134 | 13,910 | |||||||||||||||||||||
Security deposits returned | (4,728) | (7,271) | |||||||||||||||||||||
Maintenance payment liability receipts | 85,172 | 56,968 | |||||||||||||||||||||
Maintenance payment liability disbursements | (45,412) | (16,612) | |||||||||||||||||||||
Net swap termination payments | 0 | 0 | |||||||||||||||||||||
Debt extinguishment costs | 0 | (3,856) | |||||||||||||||||||||
Debt issuance costs | (1,803) | (11,825) | |||||||||||||||||||||
Proceeds from unsecured borrowings | 396,563 | 291,389 | |||||||||||||||||||||
Proceeds from secured borrowings | 298,658 | 688,975 | |||||||||||||||||||||
Repayment of secured borrowings | (192,974) | (444,607) | |||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | 0 | 172,595 | |||||||||||||||||||||
Shares repurchased | 0 | 0 | |||||||||||||||||||||
Dividends paid | (41,392) | (30,531) | |||||||||||||||||||||
Dividend equivalents | (1,426) | (940) | |||||||||||||||||||||
Net cash flows (used in) provided by financing activities | 546,482 | 668,464 | |||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (66,912) | 241,348 | |||||||||||||||||||||
Cash and cash equivalents at beginning of year | 337,560 | 404,472 | 337,560 | 404,472 | 163,124 | ||||||||||||||||||
Cash and cash equivalents at end of year | 337,560 | 337,560 | 404,472 | ||||||||||||||||||||
Cash paid during the year for: | |||||||||||||||||||||||
Interest | 119,745 | 97,481 | [1] | ||||||||||||||||||||
Taxes | 188 | 84 | [1] | ||||||||||||||||||||
Noncash Activities: | |||||||||||||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 1,938 | 1,414 | [1] | ||||||||||||||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance | 0 | 4,446 | [1] | ||||||||||||||||||||
Other liabilities applied to maintenance payment liability and rent receivables | 979 | 0 | [1] | ||||||||||||||||||||
Noncash investing activities: | |||||||||||||||||||||||
Aircraft improvement | 2,882 | 2,334 | [1] | ||||||||||||||||||||
Noncash activities in connection with purchase of aircraft | 26,002 | 1,774 | [1] | ||||||||||||||||||||
Noncash activities in connection with sale of aircraft | 12,479 | 43,500 | [1] | ||||||||||||||||||||
Adjustments [Member] | |||||||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||||
Net Income | 4,107 | 1,464 | |||||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities: | |||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (1,106) | 380 | |||||||||||||||||||||
Direct finance lease income | 0 | 0 | |||||||||||||||||||||
Gain on sale of aircraft | 4,117 | 856 | |||||||||||||||||||||
Depreciation | (8,564) | (8,064) | |||||||||||||||||||||
Aircraft impairment | 1,200 | (2,659) | |||||||||||||||||||||
Amortization of debt discounts and debt issuance costs | 7,136 | 5,945 | |||||||||||||||||||||
Amortization of lease incentives | 0 | 0 | |||||||||||||||||||||
Amortization of lease discounts/premiums and other items | (7,136) | (5,945) | |||||||||||||||||||||
Amortization of GAAM acquisition date fair value adjustments | 0 | 0 | |||||||||||||||||||||
Net gain on debt modification and extinguishment | 1,713 | 0 | |||||||||||||||||||||
Share-based compensation | 0 | 0 | |||||||||||||||||||||
Unrealized foreign exchange gain | 0 | 0 | |||||||||||||||||||||
Provision for deferred income taxes | (436) | (1,661) | |||||||||||||||||||||
Unrealized gain on derivative instruments | 0 | 0 | |||||||||||||||||||||
Security deposits and maintenance payment liability recognized into earnings | (1,895) | 8,062 | |||||||||||||||||||||
Security deposits and maintenance payment claims applied towards operating lease revenues | 0 | 0 | |||||||||||||||||||||
Distributions from unconsolidated subsidiary | 0 | 0 | |||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Rent receivables | 0 | 0 | |||||||||||||||||||||
Other assets | 0 | 0 | |||||||||||||||||||||
Payable to related parties | 0 | 2,931 | |||||||||||||||||||||
Accounts payable, accrued liabilities and other liabilities | 864 | (1,309) | |||||||||||||||||||||
Net cash flows provided by operating activities | 0 | 0 | |||||||||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||||
Distributions from (investment in) unconsolidated subsidiary | 0 | 0 | |||||||||||||||||||||
Rent received from direct finance lease | 0 | 0 | |||||||||||||||||||||
Investment in direct finance lease | 0 | 0 | |||||||||||||||||||||
Purchase of flight equipment | 0 | 0 | |||||||||||||||||||||
Proceeds from sale of aircraft, net | 0 | 0 | |||||||||||||||||||||
Payments for aircraft improvement | 0 | 0 | |||||||||||||||||||||
Payments for maintenance | 0 | 0 | |||||||||||||||||||||
Net cash flows provided by (used in) investing activities | 0 | 0 | |||||||||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||||
Restricted cash and cash equivalents | 0 | 0 | |||||||||||||||||||||
Security deposits received | 0 | 0 | |||||||||||||||||||||
Security deposits returned | 0 | 0 | |||||||||||||||||||||
Maintenance payment liability receipts | 0 | 0 | |||||||||||||||||||||
Maintenance payment liability disbursements | 0 | 0 | |||||||||||||||||||||
Net swap termination payments | 0 | 0 | |||||||||||||||||||||
Debt extinguishment costs | 0 | 0 | |||||||||||||||||||||
Debt issuance costs | 0 | 0 | |||||||||||||||||||||
Proceeds from unsecured borrowings | 0 | 0 | |||||||||||||||||||||
Proceeds from secured borrowings | 0 | 0 | |||||||||||||||||||||
Repayment of secured borrowings | 0 | 0 | |||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | 0 | 0 | |||||||||||||||||||||
Shares repurchased | 0 | 0 | |||||||||||||||||||||
Dividends paid | 0 | 0 | |||||||||||||||||||||
Dividend equivalents | 0 | 0 | |||||||||||||||||||||
Net cash flows (used in) provided by financing activities | 0 | 0 | |||||||||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | |||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |||||||||||||||||||||
Cash and cash equivalents at beginning of year | $ 0 | $ 0 | $ 0 | 0 | 0 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ 0 | 0 | 0 | ||||||||||||||||||||
Cash paid during the year for: | |||||||||||||||||||||||
Interest | 0 | 0 | |||||||||||||||||||||
Taxes | 0 | 0 | |||||||||||||||||||||
Noncash Activities: | |||||||||||||||||||||||
Security deposits applied to maintenance payment liability, rent receivables, other assets and rentals received in advance | 0 | 0 | |||||||||||||||||||||
Maintenance payment liability applied to rent receivables and rentals received in advance | 0 | 0 | |||||||||||||||||||||
Other liabilities applied to maintenance payment liability and rent receivables | 0 | 0 | |||||||||||||||||||||
Noncash investing activities: | |||||||||||||||||||||||
Aircraft improvement | 0 | 0 | |||||||||||||||||||||
Noncash activities in connection with purchase of aircraft | 0 | 0 | |||||||||||||||||||||
Noncash activities in connection with sale of aircraft | $ 0 | $ 0 | |||||||||||||||||||||
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Segment
shares
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
Aircraft
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2015
Aircraft
|
Dec. 31, 2015 |
Dec. 31, 2015
Lessee
|
Apr. 29, 2010
shares
|
|
Basis of Preparation [Abstract] | ||||||||
Number of operating segments | Segment | 1 | |||||||
Number of reportable segments | Segment | 1 | |||||||
Restatement of Prior Financial Statements [Abstract] | ||||||||
Number of impaired aircraft | Aircraft | 1 | |||||||
Rent Receivables [Abstract] | ||||||||
Allowance for doubtful accounts | $ | $ 0 | $ 0 | ||||||
Investment in Direct Finance Lease [Abstract] | ||||||||
Number of leases recorded as investment in direct finance lease | 1 | 1 | ||||||
Flight Equipment Held for Operating Lease [Abstract] | ||||||||
Useful life of flight equipment | 25 years | |||||||
Residual value percentage | 15.00% | |||||||
Taxes [Abstract] | ||||||||
Interest on unpaid income taxes and penalties | $ | $ 0 | $ 0 | $ 0 | |||||
2010 Omnibus Incentive Plan [Member] | ||||||||
Share-Based Compensation [Abstract] | ||||||||
Number of share grants authorized (in shares) | shares | 1,500,000 | 1,500,000 | ||||||
Fly-Z/C Aircraft Holdings LP [Member] | ||||||||
Investment in Unconsolidated Subsidiary [Abstract] | ||||||||
Limited partnership interest percentage | 57.40% |
INVESTMENT IN DIRECT FINANCE LEASE (Details) $ in Thousands |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2013
USD ($)
|
[1] |
Dec. 31, 2015
Aircraft
|
Dec. 31, 2015
Lessee
|
||||
INVESTMENT IN DIRECT FINANCE LEASE [Abstract] | |||||||||
Number of aircraft held | 1 | 1 | |||||||
Weighted average remaining lease term | 10 years | ||||||||
Finance lease income | $ 299 | $ 0 | [1] | $ 0 | |||||
Implicit interest rate | 10.00% | ||||||||
Net Investment in Direct Finance Lease [Abstract] | |||||||||
Total minimum lease payments receivable | $ 45,901 | 0 | |||||||
Estimated unguaranteed residual value of leased asset | 15,000 | 0 | |||||||
Unearned finance income | (26,023) | 0 | |||||||
Net Investment in Direct Finance Lease | 34,878 | 0 | [1] | ||||||
Future Minimum Rental Payments Due Under Non-Cancellable Finance Lease [Abstract] | |||||||||
2016 | 4,920 | ||||||||
2017 | 4,920 | ||||||||
2018 | 4,920 | ||||||||
2019 | 4,920 | ||||||||
2020 | 4,810 | ||||||||
Thereafter | 21,411 | ||||||||
Future minimum rental payments under finance lease | $ 45,901 | $ 0 | |||||||
|
FLIGHT EQUIPMENT HELD FOR SALE (Details) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Aircraft
Portfolio
|
Dec. 31, 2014
USD ($)
Aircraft
|
Dec. 31, 2013
USD ($)
|
[1] | ||||
Flight Equipment Held for Sale [Abstract] | |||||||
Number of aircraft agreed to be sold | 45 | ||||||
Number of portfolio sales | Portfolio | 2 | ||||||
Number of aircraft delivered to purchaser | 32 | ||||||
Gain on sale of aircraft | $ | $ 28,959 | $ 14,761 | [1] | $ 5,421 | |||
Number of aircraft removed from Sale Transactions | 1 | ||||||
Flight equipment held for sale, net | $ | $ 237,262 | $ 0 | [1] | ||||
Flight Equipment Held For Sale [Member] | |||||||
Flight Equipment Held for Sale [Abstract] | |||||||
Gain on sale of aircraft | $ | $ 33,000 | ||||||
Number of aircraft held for sale | 13 | 0 | |||||
|
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Flight Equipment Held for Operating Lease (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2014
Aircraft
|
Mar. 31, 2013
Aircraft
|
Dec. 31, 2015
USD ($)
Aircraft
Lessee
Country
|
Dec. 31, 2014
USD ($)
Aircraft
Lessee
Country
|
Dec. 31, 2013
USD ($)
Aircraft
|
|||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||||
Number of aircraft held | 79 | 127 | |||||||
Number of aircraft on lease | 77 | 124 | |||||||
Number of lessees | Lessee | 43 | 64 | |||||||
Number of countries in which lessees operate | Country | 27 | 36 | |||||||
Number of aircraft off lease | 2 | 3 | |||||||
Number of aircraft purchased | 9 | 22 | |||||||
Gain (loss) on sale of aircraft | $ | $ 28,959 | $ 14,761 | [1] | $ 5,421 | [1] | ||||
Number of aircraft sold for gain | 6 | ||||||||
Gain on extinguishment of debt | $ | (17,491) | $ 2,194 | [1] | $ 15,147 | [1] | ||||
Number of aircraft sold with gain on debt extinguishment | 2 | ||||||||
Number of aircraft sold where buyer assumed underlying debt financing and derivative instruments | 6 | ||||||||
Aircraft impairment | $ | 66,093 | $ 1,200 | [1] | $ 6,166 | [1] | ||||
Number of impaired aircraft | 1 | ||||||||
Number of impaired aircraft sold | 1 | ||||||||
Cost | $ | 3,059,974 | 4,257,114 | [1] | ||||||
Accumulated depreciation | $ | (474,548) | (700,230) | [1] | ||||||
Flight equipment held for operating lease, net | $ | 2,585,426 | 3,556,884 | [1] | ||||||
Major maintenance expenditures capitalized | $ | $ 26,100 | 4,600 | |||||||
Russia [Member] | |||||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||||
Number of aircraft associated with terminated leases | 2 | ||||||||
India [Member] | |||||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||||
Number of aircraft on lease | 2 | ||||||||
Number of aircraft associated with terminated leases | 1 | ||||||||
Flight Equipment Held For Operating Lease [Member] | |||||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||||
Capitalized cost of aircraft purchased | $ | $ 585,400 | $ 906,400 | |||||||
Number of aircraft sold | 6 | 12 | 8 | 10 | |||||
Gain (loss) on sale of aircraft | $ | $ (4,000) | $ 14,761 | $ 5,421 | ||||||
Gain on extinguishment of debt | $ | 2,300 | ||||||||
Aircraft impairment | $ | 66,093 | $ 1,200 | $ 6,166 | ||||||
Major maintenance expenditures capitalized | $ | 16,600 | ||||||||
Flight Equipment Held For Sale [Member] | |||||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||||
Gain (loss) on sale of aircraft | $ | 33,000 | ||||||||
Major maintenance expenditures capitalized | $ | $ 9,500 | ||||||||
Wide-Body Aircraft [Member] | |||||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||||
Number of impaired aircraft | 3 | ||||||||
Narrow-Body Aircraft [Member] | |||||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||||
Number of impaired aircraft | 11 | 1 | |||||||
Narrow-Body Aircraft [Member] | Flight Equipment Held For Sale [Member] | |||||||||
Flight Equipment Held for Operating Leases [Abstract] | |||||||||
Number of impaired aircraft | 5 | ||||||||
|
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Flight Equipment Held for Operating Lease by Geographic Region (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | |||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 2,585,426 | $ 3,556,884 | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Off-Lease [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 19,271 | $ 84,616 | |||
Concentration percentage | 1.00% | 2.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 2,585,426 | $ 3,556,884 | |||
Concentration percentage | 100.00% | 100.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Europe [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 775,969 | $ 1,255,841 | |||
Concentration percentage | 30.00% | 35.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | United Kingdom [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 244,179 | $ 375,178 | |||
Concentration percentage | 9.00% | 10.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Turkey [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 171,861 | $ 270,037 | |||
Concentration percentage | 7.00% | 8.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 359,929 | $ 610,626 | |||
Concentration percentage | 14.00% | 17.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Asia and South Pacific [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 943,158 | $ 1,332,236 | |||
Concentration percentage | 36.00% | 38.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Philippines [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 289,558 | $ 450,090 | |||
Concentration percentage | 11.00% | 13.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | China [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 221,576 | $ 287,374 | |||
Concentration percentage | 9.00% | 8.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | India [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 208,009 | $ 148,283 | |||
Concentration percentage | 8.00% | 4.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 224,015 | $ 446,489 | |||
Concentration percentage | 8.00% | 13.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Mexico, South And Central America [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 176,967 | $ 413,023 | |||
Concentration percentage | 7.00% | 12.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Chile [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 89,406 | $ 247,165 | |||
Concentration percentage | 4.00% | 7.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 87,561 | $ 165,858 | |||
Concentration percentage | 3.00% | 5.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | North America [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 276,269 | $ 361,181 | |||
Concentration percentage | 11.00% | 10.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | United States [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 218,363 | $ 300,401 | |||
Concentration percentage | 9.00% | 8.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 57,906 | $ 60,780 | |||
Concentration percentage | 2.00% | 2.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Middle East and Africa [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 393,792 | $ 109,987 | |||
Concentration percentage | 15.00% | 3.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Ethiopia [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 342,736 | $ 25,471 | |||
Concentration percentage | 13.00% | 1.00% | |||
Net Flight Equipment Held for Operating Lease by Geographic Region [Member] | Geographic Concentration [Member] | Other [Member] | |||||
Net Book Value of Flight Equipment Held for Operating Lease [Abstract] | |||||
Flight equipment held for operating lease, net | $ 51,056 | $ 84,516 | |||
Concentration percentage | 2.00% | 2.00% | |||
|
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Operating Lease Revenue by Geographic Region (Details) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Aircraft
Lessee
Customer
|
Dec. 31, 2014
USD ($)
Lessee
Customer
|
Dec. 31, 2013
USD ($)
Lessee
Customer
|
|||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 429,691 | $ 406,563 | [1] | $ 351,792 | [1] | ||
Number of major customers | Customer | 0 | 0 | 0 | ||||
Number of lessees leasing aircraft on non-accrual status | Lessee | 2 | 2 | 1 | ||||
Number of aircraft leased by lessees on non-accrual status | Aircraft | 3 | ||||||
End of lease revenues | $ 53,800 | $ 41,700 | $ 39,500 | ||||
Amortization of lease premiums, net of lease discounts | 1,400 | 3,000 | 3,400 | ||||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 429,691 | $ 406,563 | [1] | $ 351,792 | [1] | ||
Concentration percentage | 100.00% | 100.00% | [1] | 100.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Europe [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 178,556 | $ 156,027 | [1] | $ 152,017 | [1] | ||
Concentration percentage | 42.00% | 39.00% | [1] | 43.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United Kingdom [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 50,742 | $ 46,281 | [1] | $ 48,668 | [1] | ||
Concentration percentage | 12.00% | 11.00% | [1] | 14.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Turkey [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 29,847 | $ 27,069 | [1] | $ 13,702 | [1] | ||
Concentration percentage | 7.00% | 7.00% | [1] | 4.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Russia [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 24,095 | $ 9,017 | [1] | $ 10,288 | [1] | ||
Concentration percentage | 6.00% | 2.00% | [1] | 3.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 73,872 | $ 73,660 | [1] | $ 79,359 | [1] | ||
Concentration percentage | 17.00% | 19.00% | [1] | 22.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Asia and South Pacific [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 135,248 | $ 138,526 | [1] | $ 94,026 | [1] | ||
Concentration percentage | 31.00% | 34.00% | [1] | 27.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Philippines [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 38,677 | $ 12,947 | [1] | $ 0 | [1] | ||
Concentration percentage | 9.00% | 3.00% | [1] | 0.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | China [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 37,943 | $ 47,049 | [1] | $ 41,332 | [1] | ||
Concentration percentage | 9.00% | 12.00% | [1] | 12.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | India [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 19,572 | $ 32,675 | [1] | $ 19,854 | [1] | ||
Concentration percentage | 4.00% | 8.00% | [1] | 6.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 39,056 | $ 45,855 | [1] | $ 32,840 | [1] | ||
Concentration percentage | 9.00% | 11.00% | [1] | 9.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Mexico, South And Central America [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 41,068 | $ 49,849 | [1] | $ 43,068 | [1] | ||
Concentration percentage | 10.00% | 12.00% | [1] | 12.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Chile [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 24,336 | $ 28,116 | [1] | $ 10,055 | [1] | ||
Concentration percentage | 6.00% | 7.00% | [1] | 3.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 16,732 | $ 21,733 | [1] | $ 33,013 | [1] | ||
Concentration percentage | 4.00% | 5.00% | [1] | 9.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | North America [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 43,696 | $ 44,960 | [1] | $ 44,373 | [1] | ||
Concentration percentage | 10.00% | 11.00% | [1] | 13.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | United States [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 37,316 | $ 41,531 | [1] | $ 40,482 | [1] | ||
Concentration percentage | 9.00% | 10.00% | [1] | 12.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 6,380 | $ 3,429 | [1] | $ 3,891 | [1] | ||
Concentration percentage | 1.00% | 1.00% | [1] | 1.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Middle East and Africa [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 31,123 | $ 17,201 | [1] | $ 18,308 | [1] | ||
Concentration percentage | 7.00% | 4.00% | [1] | 5.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Ethiopia [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 22,808 | $ 4,501 | [1] | $ 4,416 | [1] | ||
Concentration percentage | 5.00% | 1.00% | [1] | 1.00% | [1] | ||
Operating Lease Revenue [Member] | Geographic Concentration [Member] | Other [Member] | |||||||
Revenues [Abstract] | |||||||
Operating lease revenue | $ 8,315 | $ 12,700 | [1] | $ 13,892 | [1] | ||
Concentration percentage | 2.00% | 3.00% | [1] | 4.00% | [1] | ||
|
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Contracted Future Minimum Rental Payments Due Under Non-Cancellable Operating Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | ||
Weighted average remaining lease term | 6 years 7 months 6 days | 5 years 4 months 24 days |
Contracted Future Minimum Rental Payments Due [Abstract] | ||
2016 | $ 281,051 | |
2017 | 262,705 | |
2018 | 229,243 | |
2019 | 191,089 | |
2020 | 168,381 | |
Thereafter | 602,852 | |
Future minimum rental payments under operating leases | $ 1,735,321 |
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE, Amortization of Lease Incentives (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
FLIGHT EQUIPMENT HELD FOR OPERATING LEASE [Abstract] | |||||||
Amortization of lease incentives | $ 20,527 | $ 18,934 | $ 9,019 | ||||
Amortization of Lease Incentives [Abstract] | |||||||
2016 | 13,803 | ||||||
2017 | 13,484 | ||||||
2018 | 10,716 | ||||||
2019 | 7,351 | ||||||
2020 | 4,324 | ||||||
Thereafter | 2,672 | ||||||
Future amortization of lease incentives | $ 52,350 | ||||||
|
MAINTENANCE RIGHTS (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||
MAINTENANCE RIGHTS [Abstract] | ||||||
Maintenance rights, net beginning balance | $ 144,920 | [1] | $ 122,721 | |||
Acquisition | 8,606 | 45,086 | ||||
Capitalized to aircraft improvements | (6,591) | (48) | ||||
Maintenance rights written off as end of lease income | (5,781) | 1,895 | ||||
Cash (receipts) payments in settlement of maintenance rights | (5,253) | 2,453 | ||||
Maintenance rights written off due to sale of aircraft | (41,408) | (27,187) | ||||
Maintenance rights, net at end of period | $ 94,493 | $ 144,920 | [1] | |||
|
INVESTMENT IN UNCONSOLIDATED SUBSIDIARY (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Investment in Unconsolidated Subsidiary [Abstract] | |||||||
Equity earnings from unconsolidated subsidiary | $ 1,159 | $ 3,562 | [1] | $ 1,491 | [1] | ||
Distributions from unconsolidated subsidiary | $ 0 | 5,501 | [1] | 0 | [1] | ||
Fly-Z/C LP [Member] | |||||||
Investment in Unconsolidated Subsidiary [Abstract] | |||||||
Limited partnership interest percentage | 57.40% | ||||||
Equity earnings from unconsolidated subsidiary | $ 1,200 | 3,600 | 1,500 | ||||
Contributions to unconsolidated subsidiary | 2,000 | ||||||
Distributions from unconsolidated subsidiary | $ 0 | $ 6,600 | $ 0 | ||||
Summit Aviation Partners LLC [Member] | Fly-Z/C LP [Member] | |||||||
Investment in Unconsolidated Subsidiary [Abstract] | |||||||
Limited partnership interest percentage | 10.20% | ||||||
|
OTHER ASSETS (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
Other Assets [Abstract] | |||||||
Loan issuance costs, net | $ 11,300 | $ 19,269 | |||||
Lease costs, net | 2,176 | 3,289 | |||||
Unamortized lease premiums | 0 | 1,861 | |||||
Other assets | 4,274 | 4,530 | |||||
Total other assets | 17,750 | 28,949 | |||||
Amortization of loan issuance cost | $ 3,500 | $ 4,500 | $ 4,100 | ||||
|
UNSECURED BORROWINGS, Unsecured Debt (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Oct. 03, 2014 |
Dec. 11, 2013 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
[1] | ||||
Unsecured Borrowings [Abstract] | |||||||||
Unsecured borrowings, net | $ 691,109 | $ 689,452 | [1] | ||||||
Underwriting debt discount paid | 933 | 1,803 | [1] | $ 11,825 | |||||
Proceeds from unsecured borrowings | 0 | 396,563 | [1] | $ 291,389 | |||||
Unsecured Borrowings [Member] | |||||||||
Unsecured Borrowings [Abstract] | |||||||||
Outstanding principal balance | 700,000 | 700,000 | |||||||
Unamortized discount | (8,891) | (10,548) | |||||||
Unsecured borrowings, net | 691,109 | 689,452 | |||||||
Unsecured Borrowings [Member] | 2020 Notes [Member] | |||||||||
Unsecured Borrowings [Abstract] | |||||||||
Outstanding principal balance | $ 375,000 | 375,000 | |||||||
Notes issued | $ 75,000 | $ 300,000 | |||||||
Interest rate | 6.75% | ||||||||
Underwriting debt discount paid | $ 8,500 | ||||||||
Percentage of principal paid as premium at time of issuance | 104.75% | ||||||||
Maturity date | Dec. 15, 2020 | ||||||||
Accrued interest | $ 1,100 | 1,100 | |||||||
Unsecured Borrowings [Member] | 2021 Notes [Member] | |||||||||
Unsecured Borrowings [Abstract] | |||||||||
Outstanding principal balance | $ 325,000 | 325,000 | |||||||
Notes issued | $ 325,000 | ||||||||
Interest rate | 6.375% | ||||||||
Maturity date | Oct. 15, 2021 | ||||||||
Accrued interest | $ 4,400 | $ 5,100 | |||||||
Unsecured Borrowings [Member] | Additional 2020 Notes and 2021 Notes [Member] | |||||||||
Unsecured Borrowings [Abstract] | |||||||||
Proceeds from unsecured borrowings | $ 396,600 | ||||||||
|
UNSECURED BORROWINGS, Redemption Price (Details) - Unsecured Borrowings [Member] $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
2020 Notes [Member] | Any Time Prior to December 15, 2016 [Member] | |
Unsecured Borrowings [Abstract] | |
End date of redemption period | Dec. 14, 2016 |
Redemption percentage of principal amount | 35.00% |
Redemption price percentage | 106.75% |
2020 Notes [Member] | Twelve Month Period Commencing December 15, 2016 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Dec. 15, 2016 |
Redemption price percentage | 105.063% |
2020 Notes [Member] | Twelve Month Period Commencing December 15, 2017 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Dec. 15, 2017 |
Redemption price percentage | 103.375% |
2020 Notes [Member] | Twelve Month Period Commencing December 15, 2018 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Dec. 15, 2018 |
Redemption price percentage | 101.688% |
2020 Notes [Member] | Twelve Month Period Commencing December 15, 2019 and Thereafter [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Dec. 15, 2019 |
Redemption price percentage | 100.00% |
2021 Notes [Member] | Any Time Prior to October 15, 2017 [Member] | |
Unsecured Borrowings [Abstract] | |
End date of redemption period | Oct. 14, 2017 |
Redemption percentage of principal amount | 35.00% |
Redemption price percentage | 106.375% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2017 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2017 |
Redemption price percentage | 104.781% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2018 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2018 |
Redemption price percentage | 103.188% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2019 [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2019 |
Redemption price percentage | 101.594% |
2021 Notes [Member] | Twelve Month Period Commencing October 15, 2020 and Thereafter [Member] | |
Unsecured Borrowings [Abstract] | |
Start date of redemption period | Oct. 15, 2020 |
Redemption price percentage | 100.00% |
2020 Notes and 2021 Notes [Member] | |
Unsecured Borrowings [Abstract] | |
Percentage of principal to be paid upon change in control | 101.00% |
Period of default for payment of interest | 30 days |
Period of default after receipt of written notice to comply with agreements under indenture | 60 days |
Percentage of aggregate principal amount held by holders | 25.00% |
Obligations in default constituting event of default | $ 50.0 |
Period to pay final judgments after judgment becomes final | 60 days |
SECURED BORROWINGS, Secured Borrowings (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | |||||||||
Secured Borrowings [Abstract] | |||||||||||
Net carrying value | $ 1,705,311 | $ 2,332,669 | |||||||||
Secured Borrowings [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Net carrying value | 1,705,311 | 2,332,669 | |||||||||
Secured Borrowings [Member] | Securitization Notes [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Net carrying value | $ 288,869 | $ 532,035 | |||||||||
Weighted average interest rate | [2] | 3.38% | 3.04% | ||||||||
Maturity date | Nov. 14, 2033 | ||||||||||
Secured Borrowings [Member] | Nord LB Facility [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Net carrying value | $ 251,849 | $ 408,484 | |||||||||
Weighted average interest rate | [2] | 4.04% | 4.15% | ||||||||
Maturity date | Nov. 14, 2018 | ||||||||||
Secured Borrowings [Member] | CBA Facility [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Net carrying value | $ 87,070 | $ 113,208 | |||||||||
Weighted average interest rate | [2] | 5.02% | 4.63% | ||||||||
Maturity date, range start date | Jun. 30, 2018 | ||||||||||
Maturity date, range end date | Oct. 31, 2020 | ||||||||||
Secured Borrowings [Member] | Term Loan [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Net carrying value | $ 421,975 | $ 443,383 | |||||||||
Weighted average interest rate | [2] | 4.39% | 5.19% | ||||||||
Maturity date | Aug. 31, 2019 | ||||||||||
Secured Borrowings [Member] | Fly Acquisition II Facility [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Net carrying value | $ 0 | $ 121,589 | |||||||||
Weighted average interest rate | [2] | 0.00% | 4.15% | ||||||||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | |||||||||||
Secured Borrowings [Abstract] | |||||||||||
Net carrying value | $ 655,548 | $ 713,970 | |||||||||
Weighted average interest rate | [2] | 3.63% | [3] | 3.89% | |||||||
Maturity date, range start date | Feb. 29, 2016 | ||||||||||
Maturity date, range end date | Jan. 31, 2027 | ||||||||||
|
SECURED BORROWINGS, Securitization Notes (Details) |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Oct. 02, 2007
USD ($)
|
Dec. 31, 2015
USD ($)
Aircraft
|
Dec. 31, 2014
USD ($)
Aircraft
|
Dec. 31, 2013
USD ($)
|
[1] | ||||
Secured Borrowings [Abstract] | ||||||||
Secured borrowings, net | $ 1,705,311,000 | $ 2,332,669,000 | [1] | |||||
Loss on extinguishment of debt | (17,491,000) | 2,194,000 | [1] | $ 15,147,000 | ||||
Repayment of debt | $ 791,385,000 | 192,974,000 | [1] | $ 444,607,000 | ||||
Revolving Credit Facility [Member] | Securitization Note Liquidity Facility [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Term of variable rate | 1 month | |||||||
Maximum borrowing capacity | $ 60,000,000 | |||||||
Commitment fee percentage | 0.40% | |||||||
Balance | $ 0 | 0 | ||||||
Revolving Credit Facility [Member] | Securitization Note Liquidity Facility [Member] | LIBOR [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Basis spread on variable rate | 1.20% | |||||||
Secured Borrowings [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Outstanding principal balance | $ 1,730,104,000 | |||||||
Secured borrowings, net | 1,705,311,000 | 2,332,669,000 | [1] | |||||
Repayment of debt | 791,385,000 | |||||||
Secured Borrowings [Member] | Securitization Notes [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Outstanding principal balance | 295,786,000 | 546,465,000 | ||||||
Unamortized debt discount | (6,917,000) | (14,430,000) | ||||||
Secured borrowings, net | $ 288,869,000 | 532,035,000 | [1] | |||||
Number of aircraft financed by borrowing | Aircraft | 18 | |||||||
Number of aircraft held for sale | Aircraft | 4 | |||||||
Maturity date | Nov. 14, 2033 | |||||||
Loss on extinguishment of debt | $ 5,100,000 | |||||||
Accrued interest | $ 100,000 | $ 200,000 | ||||||
Number of aircraft sold | Aircraft | 17 | 0 | ||||||
Repayment of debt | $ 250,700,000 | $ 46,400,000 | ||||||
Redemption price percentage | 100.00% | |||||||
B&B Air Funding [Member] | Secured Borrowings [Member] | Securitization Notes [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Notes issued | $ 853,000,000 | |||||||
Offering price percentage | 99.71282% | |||||||
Maturity date | Nov. 14, 2033 | |||||||
B&B Air Funding [Member] | Secured Borrowings [Member] | Securitization Notes [Member] | LIBOR [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Term of variable rate | 1 month | |||||||
Basis spread on variable rate | 0.77% | |||||||
BBAM LP [Member] | Secured Borrowings [Member] | Securitization Notes [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Minimum percentage ownership interest required under servicing agreement | 50.00% | |||||||
Minimum percentage of key finance and legal team or technical and marketing team required under servicing agreement | 50.00% | |||||||
Maximum period to hire replacements for finance and legal team or technical and marketing team under servicing agreement | 90 days | |||||||
Summit [Member] | Secured Borrowings [Member] | Securitization Notes [Member] | ||||||||
Secured Borrowings [Abstract] | ||||||||
Minimum percentage ownership interest required under servicing agreement | 33.33% | |||||||
Minimum net worth of purchaser required under servicing agreement | $ 100,000,000 | |||||||
|
SECURED BORROWINGS, Nord LB Facility (Details) $ in Thousands |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Aircraft
|
Dec. 31, 2014
USD ($)
Aircraft
|
Dec. 31, 2013
USD ($)
|
[1] | ||||||
Secured Borrowings [Abstract] | |||||||||
Secured borrowings, net | $ 1,705,311 | $ 2,332,669 | [1] | ||||||
Loss on extinguishment of debt | (17,491) | 2,194 | [1] | $ 15,147 | |||||
Repayment of debt | 791,385 | 192,974 | [1] | $ 444,607 | |||||
Secured Borrowings [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Outstanding principal balance | 1,730,104 | ||||||||
Secured borrowings, net | 1,705,311 | 2,332,669 | [1] | ||||||
Repayment of debt | 791,385 | ||||||||
Secured Borrowings [Member] | Nord LB Facility [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Outstanding principal balance | 255,278 | 416,249 | |||||||
Unamortized debt discount | (3,429) | (7,765) | |||||||
Secured borrowings, net | $ 251,849 | $ 408,484 | [1] | ||||||
Number of aircraft financed by borrowing | Aircraft | 10 | ||||||||
Number of aircraft subject to sales agreements | Aircraft | 4 | ||||||||
Maturity date | Nov. 14, 2018 | ||||||||
Weighted average interest rate | [2] | 4.04% | 4.15% | [1] | |||||
Accrued interest | $ 400 | $ 700 | |||||||
Percentage of lease rentals collected applied to interest and principal | 95.00% | ||||||||
Period after termination or expiration of lease when payments become due | 6 months | ||||||||
Period aircraft remains off-lease before interest is charged | 6 months | ||||||||
Percentage of lease rate paid as debt service fee | 85.00% | ||||||||
Period aircraft remains off-lease before payment in full is required or foreclosure on aircraft occurs | 24 months | ||||||||
Percentage return on equity investment after full repayment of facility | 10.00% | ||||||||
Fee percentage payable after full repayment of facility | 10.00% | ||||||||
Number of aircraft sold | Aircraft | 7 | 0 | |||||||
Loss on extinguishment of debt | $ 2,100 | ||||||||
Repayment of debt | $ 161,000 | $ 36,100 | |||||||
Secured Borrowings [Member] | Nord LB Facility [Member] | Maximum [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Period aircraft remains off-lease before debt service is charged | 12 months | ||||||||
Fee payable after full repayment of facility | $ 5,000 | ||||||||
Obligations in default constituting event of default | $ 10,000 | ||||||||
Secured Borrowings [Member] | Nord LB Facility [Member] | LIBOR [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Term of variable rate | 1 month | ||||||||
Basis spread on variable rate | 3.30% | ||||||||
|
SECURED BORROWINGS, CBA Facility (Details) |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Aircraft
Loan
|
Dec. 31, 2014
USD ($)
Aircraft
|
Dec. 31, 2013
USD ($)
|
[1] | ||||||
Secured Borrowings [Abstract] | |||||||||
Secured borrowings, net | $ 1,705,311,000 | $ 2,332,669,000 | [1] | ||||||
Gain on extinguishment of debt | (17,491,000) | 2,194,000 | [1] | $ 15,147,000 | |||||
Repayment of debt | 791,385,000 | 192,974,000 | [1] | $ 444,607,000 | |||||
Secured Borrowings [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Outstanding principal balance | 1,730,104,000 | ||||||||
Secured borrowings, net | 1,705,311,000 | 2,332,669,000 | [1] | ||||||
Repayment of debt | 791,385,000 | ||||||||
Secured Borrowings [Member] | CBA Facility [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Outstanding principal balance | 88,190,000 | 114,812,000 | |||||||
Unamortized debt discount | (1,120,000) | (1,604,000) | |||||||
Secured borrowings, net | $ 87,070,000 | $ 113,208,000 | [1] | ||||||
Number of aircraft financed by borrowing | Aircraft | 6 | ||||||||
Number of aircraft subject to sales agreements | Aircraft | 1 | ||||||||
Number of loans maturing in 2018 | Loan | 1 | ||||||||
Number of loans maturing in 2020 | Loan | 5 | ||||||||
Number of aircraft sold | Aircraft | 1 | 2 | |||||||
Unamortized debt issuance costs written off | $ 900,000 | ||||||||
Gain on extinguishment of debt | $ 2,300,000 | ||||||||
Repayment of debt | $ 26,600,000 | $ 47,000,000 | |||||||
Facility weighted average interest rate | [2] | 5.02% | 4.63% | [1] | |||||
Accrued interest | $ 37,000 | $ 44,000 | |||||||
Debt ratio used to determine payment into collateral account | 80.00% | ||||||||
Secured Borrowings [Member] | CBA Facility [Member] | LIBOR [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Term of variable rate | 1 month | ||||||||
Basis spread on variable rate | 2.50% | ||||||||
Secured Borrowings [Member] | Tranche A [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Outstanding principal balance | $ 44,235,000 | $ 65,462,000 | |||||||
Fixed interest rate | 5.57% | 5.52% | |||||||
Variable interest rate | 2.66% | ||||||||
Secured Borrowings [Member] | Tranche B [Member] | |||||||||
Secured Borrowings [Abstract] | |||||||||
Outstanding principal balance | $ 43,955,000 | $ 49,350,000 | |||||||
Fixed interest rate | 4.47% | 4.47% | |||||||
|
SECURED BORROWINGS, Term Loan (Details) |
1 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | 23 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 21, 2013
USD ($)
|
Apr. 30, 2015
USD ($)
|
May. 31, 2013
USD ($)
|
Dec. 31, 2015
USD ($)
Aircraft
|
May. 20, 2013 |
Dec. 31, 2015
USD ($)
Aircraft
Appraiser
|
Dec. 31, 2014
USD ($)
Aircraft
|
Dec. 31, 2013
USD ($)
|
[1] | Apr. 21, 2015 |
Aug. 09, 2012
USD ($)
|
||||
Secured Borrowings [Abstract] | ||||||||||||||
Secured borrowings, net | $ 1,705,311,000 | $ 1,705,311,000 | $ 2,332,669,000 | [1] | ||||||||||
Increase in secured borrowings | 147,276,000 | 298,658,000 | [1] | $ 688,975,000 | ||||||||||
Loss on extinguishment of debt | (17,491,000) | 2,194,000 | [1] | $ 15,147,000 | ||||||||||
Secured Borrowings [Member] | ||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||
Outstanding principal balance | 1,730,104,000 | 1,730,104,000 | ||||||||||||
Secured borrowings, net | 1,705,311,000 | 1,705,311,000 | 2,332,669,000 | [1] | ||||||||||
Secured Borrowings [Member] | Term Loan [Member] | ||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||
Outstanding principal balance | 427,781,000 | 427,781,000 | 451,547,000 | |||||||||||
Unamortized debt discount | (5,806,000) | (5,806,000) | (8,164,000) | |||||||||||
Secured borrowings, net | $ 421,975,000 | $ 421,975,000 | $ 443,383,000 | [1] | ||||||||||
Notes issued | $ 395,000,000 | |||||||||||||
Increase in secured borrowings | $ 105,000,000 | |||||||||||||
Prepayment penalty percentage | 1.00% | |||||||||||||
Prepayment penalty | $ 0 | $ 3,800,000 | ||||||||||||
Loss on extinguishment of debt | $ 2,100,000 | |||||||||||||
Redemption price percentage | 101.00% | |||||||||||||
Number of independent appraisers | Appraiser | 3 | |||||||||||||
Number of aircraft sold | Aircraft | 6 | 4 | ||||||||||||
Number of aircraft substituted as collateral | Aircraft | 4 | 3 | ||||||||||||
Number of aircraft serving as security | Aircraft | 28 | |||||||||||||
Number of aircraft subject to sales agreements | Aircraft | 4 | 4 | ||||||||||||
Obligations in default constituting event of default | $ 50,000,000 | |||||||||||||
Accrued interest | $ 2,200,000 | $ 2,200,000 | $ 2,900,000 | |||||||||||
Frequency of principal payments | Quarterly | |||||||||||||
Principal payments | $ 5,900,000 | |||||||||||||
Secured Borrowings [Member] | Term Loan [Member] | Maximum [Member] | ||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||
Loan-to-Value Ratio | 70.00% | |||||||||||||
Additional cash collateral to maintain maximum LTV ratio | $ 25,000,000 | $ 25,000,000 | ||||||||||||
Secured Borrowings [Member] | Term Loan [Member] | LIBOR [Member] | ||||||||||||||
Secured Borrowings [Abstract] | ||||||||||||||
Basis spread on variable rate | 2.75% | 4.50% | 3.50% | |||||||||||
Floor interest rate | 0.75% | 1.25% | 1.00% | |||||||||||
|
SECURED BORROWINGS, Fly Acquisition II Facility (Details) |
2 Months Ended | 3 Months Ended | 12 Months Ended | 27 Months Ended | ||
---|---|---|---|---|---|---|
Mar. 31, 2015 |
Mar. 31, 2015
USD ($)
Aircraft
|
Dec. 31, 2015
USD ($)
|
Jan. 31, 2015 |
Dec. 31, 2014
USD ($)
|
Nov. 07, 2012
USD ($)
|
|
Fly Acquisition II Facility [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Outstanding principal balance | $ 0 | $ 121,589,000 | ||||
Fly Acquisition II Facility [Member] | Revolving Credit Facility [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Maximum borrowing capacity | $ 450,000,000 | |||||
Maturity date | Jul. 03, 2018 | |||||
Commitment fee percentage | 0.75% | |||||
Number of aircraft sold | Aircraft | 3 | |||||
Number of aircraft refinanced | Aircraft | 1 | |||||
Unamortized debt issuance costs written off | $ 4,000,000 | |||||
Prepayment penalty | $ 0 | |||||
Accrued interest | $ 200,000 | |||||
Fly Acquisition II Facility [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Term of variable rate | 1 month | |||||
Basis spread on variable rate | 3.75% | 3.25% | ||||
Secured Borrowings [Member] | ||||||
Secured Borrowings [Abstract] | ||||||
Outstanding principal balance | $ 1,730,104,000 |
SECURED BORROWINGS, Other Aircraft Secured Borrowings (Details) $ in Thousands |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Aircraft
Loan
|
Dec. 31, 2014
USD ($)
Aircraft
Loan
|
Dec. 31, 2013
USD ($)
|
[1] | |||||||||
Secured Borrowings [Abstract] | ||||||||||||
Secured borrowings, net | $ 1,705,311 | $ 2,332,669 | [1] | |||||||||
Repayment of debt | 791,385 | 192,974 | [1] | $ 444,607 | ||||||||
Loss on extinguishment of debt | $ (17,491) | $ 2,194 | [1] | 15,147 | ||||||||
Number of aircraft purchased | Aircraft | 9 | 22 | ||||||||||
Proceeds from secured borrowings | $ 147,276 | $ 298,658 | [1] | 688,975 | ||||||||
Unrealized foreign exchange gain | 1,247 | 0 | [1] | $ 0 | ||||||||
Secured Borrowings [Member] | ||||||||||||
Secured Borrowings [Abstract] | ||||||||||||
Outstanding principal balance | 1,730,104 | |||||||||||
Secured borrowings, net | 1,705,311 | 2,332,669 | [1] | |||||||||
Repayment of debt | 791,385 | |||||||||||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | ||||||||||||
Secured Borrowings [Abstract] | ||||||||||||
Outstanding principal balance | 663,069 | 723,023 | [1] | |||||||||
Unamortized debt discount | (7,521) | (9,053) | [1] | |||||||||
Secured borrowings, net | $ 655,548 | $ 713,970 | [1] | |||||||||
Weighted average interest rate | [2] | 3.63% | [3] | 3.89% | [1] | |||||||
Maturity date, range start date | Feb. 29, 2016 | |||||||||||
Maturity date, range end date | Jan. 31, 2027 | |||||||||||
Number of loans repaid | Loan | 5 | 3 | ||||||||||
Repayment of debt | $ 207,800 | $ 70,100 | ||||||||||
Number of aircraft sold | Aircraft | 5 | 1 | ||||||||||
Loss on extinguishment of debt | $ 3,200 | |||||||||||
Number of aircraft financed by borrowing | Aircraft | 21 | |||||||||||
Number of aircraft subject to sales agreements | Aircraft | 1 | |||||||||||
Recourse debt | $ 422,900 | $ 425,000 | ||||||||||
Accrued interest | $ 900 | $ 1,100 | ||||||||||
Number of aircraft purchased | Aircraft | 1 | 5 | ||||||||||
Number of aircraft refinanced | Aircraft | 4 | |||||||||||
Number of loans denominated in Euros | Loan | 1 | |||||||||||
Unrealized foreign exchange gain | $ 1,600 | |||||||||||
Number of aircraft financed with borrowings | Aircraft | 1 | |||||||||||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | One Aircraft Acquired [Member] | ||||||||||||
Secured Borrowings [Abstract] | ||||||||||||
Proceeds from secured borrowings | 36,000 | $ 28,500 | ||||||||||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | Four Aircraft Refinanced [Member] | ||||||||||||
Secured Borrowings [Abstract] | ||||||||||||
Proceeds from secured borrowings | $ 113,400 | |||||||||||
Secured Borrowings [Member] | Other Aircraft Secured Borrowings [Member] | Five Aircraft Acquired [Member] | ||||||||||||
Secured Borrowings [Abstract] | ||||||||||||
Proceeds from secured borrowings | $ 274,500 | |||||||||||
|
SECURED BORROWINGS, Future Minimum Principal Payments on Borrowings (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
Secured Borrowings [Abstract] | |||||||
Repayment of debt | $ 791,385 | $ 192,974 | $ 444,607 | ||||
Secured Borrowings [Member] | |||||||
Secured Borrowings [Abstract] | |||||||
Repayment of debt | 791,385 | ||||||
Future Minimum Principal Payments [Abstract] | |||||||
2016 | 291,988 | ||||||
2017 | 125,950 | ||||||
2018 | 314,554 | ||||||
2019 | 459,122 | ||||||
2020 | 93,932 | ||||||
Thereafter | 444,558 | ||||||
Future minimum principal payments due | $ 1,730,104 | ||||||
|
DERIVATIVES, Derivatives (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Mar. 31, 2013 |
|||||||||
Derivatives [Abstract] | ||||||||||||
Debt | $ 2,400,000 | |||||||||||
Fair value of derivative assets | 241 | $ 2,067 | [1] | |||||||||
Fair value of derivative liabilities | 19,327 | 23,311 | [1] | |||||||||
Net unrealized gain (loss) on derivatives | [2],[3] | 158 | (3,238) | [1] | $ 22,093 | [1] | ||||||
Net tax expense (benefit) on derivatives | 300 | (600) | $ 3,500 | |||||||||
Debt with Floating Interest Rates [Member] | ||||||||||||
Derivatives [Abstract] | ||||||||||||
Debt | 1,500,000 | |||||||||||
Debt with Floating Interest Rates Associated with Aircraft with Fixed Rate Rentals [Member] | ||||||||||||
Derivatives [Abstract] | ||||||||||||
Debt | 1,100,000 | |||||||||||
Interest Rate Swap Contracts [Member] | ||||||||||||
Derivatives [Abstract] | ||||||||||||
Notional amounts | 1,000,000 | 1,400,000 | ||||||||||
Fair value of derivative assets | 200 | 2,100 | ||||||||||
Fair value of derivative liabilities | $ 19,300 | $ 23,300 | $ 5,000 | |||||||||
|
DERIVATIVES, Derivative Assets (Details) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Instrument
|
Dec. 31, 2014
USD ($)
|
||||
Derivatives [Abstract] | |||||
Adjusted fair value of derivative asset | $ 241 | $ 2,067 | [1] | ||
Interest Rate Swap Contracts [Member] | |||||
Derivatives [Abstract] | |||||
Adjusted fair value of derivative asset | 200 | $ 2,100 | |||
Loss recognized into earnings | (1,100) | ||||
Designated Derivatives [Member] | |||||
Derivatives [Abstract] | |||||
Gain recognized in accumulated comprehensive loss | $ (16,243) | ||||
Designated Derivatives [Member] | Derivative Assets [Member] | |||||
Derivatives [Abstract] | |||||
Quantity | Instrument | 3 | ||||
Swap contract notional amount | $ 57,447 | ||||
Fair value of derivative asset | 192 | ||||
Credit risk adjustment | 3 | ||||
Accrued interest | (18) | ||||
Adjusted fair value of derivative asset | 195 | ||||
Gain recognized in accumulated comprehensive loss | 186 | ||||
Loss recognized into earnings | (9) | ||||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | |||||
Derivatives [Abstract] | |||||
Gain recognized in accumulated comprehensive loss | $ (16,243) | ||||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | |||||
Derivatives [Abstract] | |||||
Quantity | Instrument | 3 | ||||
Maturity dates | Nov. 14, 2018 | ||||
Swap contract notional amount | $ 57,447 | ||||
Fair value of derivative asset | 210 | ||||
Credit risk adjustment | 3 | ||||
Adjusted fair value of derivative asset | 213 | ||||
Gain recognized in accumulated comprehensive loss | 186 | ||||
Loss recognized into earnings | $ (9) | ||||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | Minimum [Member] | |||||
Derivatives [Abstract] | |||||
Hedge interest rates | 0.90% | ||||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | Maximum [Member] | |||||
Derivatives [Abstract] | |||||
Hedge interest rates | 1.03% | ||||
Dedesignated Derivatives [Member] | Derivative Assets [Member] | |||||
Derivatives [Abstract] | |||||
Quantity | Instrument | 1 | ||||
Swap contract notional amount | $ 20,219 | ||||
Fair value of derivative asset | 44 | ||||
Credit risk adjustment | 2 | ||||
Accrued interest | (7) | ||||
Adjusted fair value of derivative asset | 46 | ||||
Loss recognized into earnings | $ (53) | ||||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Assets [Member] | |||||
Derivatives [Abstract] | |||||
Quantity | Instrument | 1 | ||||
Maturity dates | Nov. 14, 2018 | ||||
Hedge interest rates | 1.10% | ||||
Swap contract notional amount | $ 20,219 | ||||
Fair value of derivative asset | 51 | ||||
Credit risk adjustment | 2 | ||||
Adjusted fair value of derivative asset | 53 | ||||
Loss recognized into earnings | $ (53) | ||||
|
DERIVATIVES, Derivative Liabilities (Details) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015
USD ($)
Instrument
|
Dec. 31, 2014
USD ($)
|
Mar. 31, 2013
USD ($)
|
||||
Derivatives [Abstract] | ||||||
Adjusted fair value of derivative liability | $ (19,327) | $ (23,311) | [1] | |||
Interest Rate Swap Contracts [Member] | ||||||
Derivatives [Abstract] | ||||||
Adjusted fair value of derivative liability | (19,300) | $ (23,300) | $ (5,000) | |||
Loss recognized into earnings | (1,100) | |||||
Designated Derivatives [Member] | ||||||
Derivatives [Abstract] | ||||||
Loss recognized in accumulated comprehensive loss | $ (16,243) | |||||
Designated Derivatives [Member] | Derivative Liabilities [Member] | ||||||
Derivatives [Abstract] | ||||||
Quantity | Instrument | 14 | |||||
Swap contract notional amount | $ 839,999 | |||||
Fair value of derivative liability | (19,964) | |||||
Credit risk adjustment | 666 | |||||
Accrued interest | (823) | |||||
Adjusted fair value of derivative liability | (19,298) | |||||
Loss recognized into earnings | (368) | |||||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | ||||||
Derivatives [Abstract] | ||||||
Loss recognized in accumulated comprehensive loss | $ (16,243) | |||||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | ||||||
Derivatives [Abstract] | ||||||
Quantity | Instrument | 14 | |||||
Swap contract notional amount | $ 839,999 | |||||
Fair value of derivative liability | (19,141) | |||||
Credit risk adjustment | 666 | |||||
Adjusted fair value of derivative liability | (18,475) | |||||
Loss recognized into earnings | $ (368) | |||||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Minimum [Member] | ||||||
Derivatives [Abstract] | ||||||
Maturity dates | Feb. 09, 2018 | |||||
Hedge interest rates | 1.18% | |||||
Designated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Maximum [Member] | ||||||
Derivatives [Abstract] | ||||||
Maturity dates | Sep. 27, 2025 | |||||
Hedge interest rates | 6.22% | |||||
Dedesignated Derivatives [Member] | Derivative Liabilities [Member] | ||||||
Derivatives [Abstract] | ||||||
Quantity | Instrument | 2 | |||||
Swap contract notional amount | $ 42,224 | |||||
Fair value of derivative liability | (33) | |||||
Credit risk adjustment | 4 | |||||
Accrued interest | (17) | |||||
Adjusted fair value of derivative liability | (29) | |||||
Loss recognized into earnings | $ (263) | |||||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | ||||||
Derivatives [Abstract] | ||||||
Quantity | Instrument | 2 | |||||
Maturity dates | Nov. 14, 2018 | |||||
Swap contract notional amount | $ 42,224 | |||||
Fair value of derivative liability | (16) | |||||
Credit risk adjustment | 4 | |||||
Adjusted fair value of derivative liability | (12) | |||||
Loss recognized into earnings | $ (263) | |||||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Minimum [Member] | ||||||
Derivatives [Abstract] | ||||||
Hedge interest rates | 1.18% | |||||
Dedesignated Derivatives [Member] | Interest Rate Swap Contracts [Member] | Derivative Liabilities [Member] | Maximum [Member] | ||||||
Derivatives [Abstract] | ||||||
Hedge interest rates | 1.22% | |||||
|
DERIVATIVES, Terminated Derivatives (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 31, 2013
USD ($)
Aircraft
|
Dec. 31, 2015
USD ($)
Aircraft
Contract
|
Dec. 31, 2014
USD ($)
Aircraft
|
Dec. 31, 2013
Aircraft
|
||||
Derivatives [Abstract] | |||||||
Derivative liabilities | $ 19,327 | $ 23,311 | [1] | ||||
Flight Equipment Held For Operating Lease [Member] | |||||||
Derivatives [Abstract] | |||||||
Number of aircraft sold | Aircraft | 6 | 12 | 8 | 10 | |||
Interest Rate Swap Contracts [Member] | |||||||
Derivatives [Abstract] | |||||||
Number of contracts terminated | Contract | 14 | ||||||
Loss associated with terminated contracts | $ (2,400) | ||||||
Loss recognized into earnings | (1,100) | ||||||
Derivative liabilities | $ 5,000 | $ 19,300 | $ 23,300 | ||||
|
INCOME TAXES, Income Tax Expense (Benefits) by Jurisdiction (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
||||
Income Taxes [Abstract] | |||||||
Corporation tax rate on trading income | 12.50% | 12.50% | 12.50% | [1] | |||
Undistributed earnings of foreign subsidiary | $ 19,300 | ||||||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||||||
Current tax expense (benefit) | 480 | $ 260 | $ (536) | [1] | |||
Deferred tax expense (benefit) | 4,919 | 8,431 | 3,670 | [1] | |||
Total income tax expense | $ 5,399 | 8,691 | 3,134 | [1] | |||
Federal and state income tax benefit | 1,100 | ||||||
Ireland [Member] | |||||||
Income Taxes [Abstract] | |||||||
Corporation tax rate on trading income | 12.50% | ||||||
Corporation tax rate on non-trading income | 25.00% | ||||||
Australia [Member] | |||||||
Income Taxes [Abstract] | |||||||
Corporation tax rate on trading income | 30.00% | ||||||
Withholding tax rate | 15.00% | ||||||
France [Member] | |||||||
Income Taxes [Abstract] | |||||||
Corporation tax rate on trading income | 33.33% | ||||||
Ireland [Member] | |||||||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||||||
Current tax expense (benefit) | $ 33 | 0 | 400 | [1] | |||
Deferred tax expense (benefit) | 4,558 | 8,208 | 1,082 | [1] | |||
Luxembourg [Member] | |||||||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||||||
Current tax expense (benefit) | 252 | 210 | 175 | [1] | |||
United States [Member] | |||||||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||||||
Current tax expense (benefit) | 0 | 2 | (1,131) | [1] | |||
Australia [Member] | |||||||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||||||
Current tax expense (benefit) | 138 | 0 | 0 | [1] | |||
Deferred tax expense (benefit) | 334 | 241 | 2,601 | [1] | |||
Other [Member] | |||||||
Income Tax Expense (Benefit) by Jurisdiction [Abstract] | |||||||
Current tax expense (benefit) | 57 | 48 | 20 | [1] | |||
Deferred tax expense (benefit) | $ 27 | $ (18) | $ (13) | [1] | |||
|
INCOME TAXES, Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||
Income Taxes [Abstract] | ||||||
Unrecognized tax benefits | $ 0 | $ 0 | ||||
Deferred Tax Asset [Abstract] | ||||||
Net operating loss carry forwards | 181,370 | 221,026 | [1] | |||
Net unrealized losses on derivative instruments | 1,999 | 2,483 | [1] | |||
Basis difference on acquisition of GAAM Australian assets | 6,844 | 9,597 | [1] | |||
Other | 240 | 311 | [1] | |||
Valuation allowance | (23,029) | (22,418) | [1] | |||
Total deferred tax asset | 167,424 | 210,999 | [1] | |||
Deferred Tax Liability [Abstract] | ||||||
Excess of tax depreciation over book depreciation | (171,084) | (206,719) | [1] | |||
Book/tax differences identified in connection with GAAM Portfolio acquisition | (911) | (1,634) | [1] | |||
Net earnings of non-European Union member subsidiaries | (16,170) | (17,952) | [1] | |||
Total deferred tax liability | (188,165) | (226,305) | [1] | |||
Deferred tax liability, net | (20,741) | (15,306) | [1] | |||
Deferred tax asset utilized in connection with sale of aircraft | $ 2,300 | |||||
Net valuation allowance recorded for net operating losses | $ 3,400 | $ 2,500 | ||||
|
INCOME TAXES, Reconciliation of Statutory to Effective Tax Rate (Details) - yr |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
Reconciliation of income tax expense (benefit) [Abstract] | |||||||
Irish statutory corporate tax rate on trading income | 12.50% | 12.50% | 12.50% | ||||
Valuation allowances | 12.00% | 3.60% | 0.80% | ||||
Equity earnings from FLY-Z/C LP | (0.50%) | (0.40%) | (0.30%) | ||||
Tax impact of repurchased and resold Notes | (3.20%) | (0.60%) | (0.80%) | ||||
Share-based compensation | 0.10% | 0.00% | 0.70% | ||||
Foreign tax rate differentials | (9.70%) | (3.90%) | (1.40%) | ||||
True-up of prior year tax provision | 1.40% | 0.20% | (1.70%) | ||||
Non-taxable gain on debt extinguishment | 0.00% | (1.20%) | (5.20%) | ||||
Non-deductible interest expense, transaction fees and expenses | 6.10% | 2.40% | 0.90% | ||||
Other | 0.40% | 0.00% | 0.00% | ||||
Income tax expense | 19.10% | 12.60% | 5.50% | ||||
Revenue Commissioners, Ireland [Member] | |||||||
Reconciliation of income tax expense (benefit) [Abstract] | |||||||
Irish statutory corporate tax rate on trading income | 12.50% | ||||||
Foreign Tax Authority [Member] | Revenue Commissioners, Ireland [Member] | |||||||
Income Taxes [Abstract] | |||||||
Number of open tax years | 4 | ||||||
Foreign Tax Authority [Member] | Revenue Commissioners, Ireland [Member] | Minimum [Member] | |||||||
Income Taxes [Abstract] | |||||||
Open tax year | 2011 | ||||||
Foreign Tax Authority [Member] | Revenue Commissioners, Ireland [Member] | Maximum [Member] | |||||||
Income Taxes [Abstract] | |||||||
Open tax year | 2015 | ||||||
|
OTHER LIABILITIES (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|
OTHER LIABILITIES [Abstract] | |||||
Net current tax provision | $ 645 | $ 581 | |||
Lease incentive obligation | 21,217 | 25,503 | |||
Deferred rent payable | 11,974 | 11,461 | |||
Refundable deposits | 4,240 | 4,079 | |||
Other | 14,050 | 266 | |||
Total other liabilities | $ 52,126 | $ 41,890 | [1] | ||
|
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands |
1 Months Ended | 2 Months Ended | 4 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 22, 2015 |
Jul. 31, 2013 |
Mar. 11, 2016 |
Apr. 29, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Mar. 31, 2016 |
Nov. 12, 2015 |
May. 06, 2015 |
|||||
Shareholders' Equity [Abstract] | ||||||||||||||
Approved share repurchase program | $ 100,000 | $ 30,000 | ||||||||||||
Shares repurchased (in shares) | 5,376,344 | 421,329 | 0 | |||||||||||
Average price per share repurchased (in dollars per share) | $ 13.95 | $ 13.08 | ||||||||||||
Shares repurchased | $ 81,432 | $ 0 | [1] | $ 0 | [1] | |||||||||
Shares outstanding (in shares) | 35,671,400 | 41,432,998 | ||||||||||||
New shares issued (in shares) | 13,142,856 | |||||||||||||
Share price (in dollars per share) | $ 14.00 | |||||||||||||
Proceeds from issuance of shares | $ 172,600 | $ 0 | $ 0 | [1] | $ 172,595 | [1] | ||||||||
Shares issued in connection with RSUs that vested and SARs that were exercised (in shares) | 126,660 | |||||||||||||
Dividends declared and paid per share (in dollars per shares) | $ 1.00 | $ 1.00 | [1] | $ 0.88 | [1] | |||||||||
Dividends declared and paid | $ 42,400 | $ 42,800 | $ 31,500 | |||||||||||
Subsequent Event [Member] | ||||||||||||||
Shareholders' Equity [Abstract] | ||||||||||||||
Approved share repurchase program | $ 30,000 | |||||||||||||
Shares repurchased (in shares) | 2,071,910 | |||||||||||||
Average price per share repurchased (in dollars per share) | $ 12.04 | |||||||||||||
Shares repurchased | $ 25,000 | |||||||||||||
Modified Dutch Auction Tender Offer [Member] | ||||||||||||||
Shareholders' Equity [Abstract] | ||||||||||||||
Approved share repurchase program | $ 75,000 | |||||||||||||
Shares repurchased | $ 75,000 | |||||||||||||
|
SHARE-BASED COMPENSATION, SAR Activity (Details) |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2015
Installment
$ / shares
shares
|
Dec. 31, 2014
USD ($)
$ / shares
shares
|
Dec. 31, 2013
USD ($)
$ / shares
shares
|
Dec. 31, 2012
$ / shares
shares
|
Apr. 29, 2010
shares
|
|
SARs [Member] | |||||
Number of Shares [Roll Forward] | |||||
Outstanding, beginning balance (in shares) | shares | 821,117 | 888,634 | 892,004 | ||
Granted (in shares) | shares | 0 | 0 | 0 | ||
Exercised (in shares) | shares | 0 | (58,519) | (3,370) | ||
Canceled or forfeited (in shares) | shares | 0 | (8,998) | 0 | ||
Outstanding, ending balance (in shares) | shares | 821,117 | 821,117 | 888,634 | 892,004 | |
Exercisable, ending balance (in shares) | shares | 821,117 | ||||
Weighted Average Exercise Price [Abstract] | |||||
Outstanding, beginning balance (in dollars per share) | $ 12.74 | $ 12.74 | $ 12.74 | ||
Granted (in dollars per share) | 0 | 0 | 0 | ||
Exercised (in dollars per share) | 0 | 12.80 | 12.42 | ||
Canceled or forfeited (in dollars per share) | 0 | 12.28 | 0 | ||
Outstanding, ending balance (in dollars per share) | 12.74 | $ 12.74 | $ 12.74 | $ 12.74 | |
Exercisable, ending balance (in dollars per share) | $ 12.74 | ||||
Weighted Average Remaining Contractual Life and Intrinsic Value [Abstract] | |||||
Weighted average remaining contractual life | 5 years 1 month 6 days | 6 years 1 month 6 days | 7 years 1 month 6 days | 8 years 1 month 6 days | |
RSUs [Member] | |||||
Weighted Average Remaining Contractual Life and Intrinsic Value [Abstract] | |||||
Closing price per share (in dollars per share) | $ 13.65 | $ 13.15 | $ 16.07 | ||
Intrinsic value of unvested shares | $ | $ 500,000 | $ 2,600,000 | |||
2010 Omnibus Incentive Plan [Member] | |||||
Description of Plan [Abstract] | |||||
Number of shares authorized (in shares) | shares | 1,500,000 | 1,500,000 | |||
2010 Omnibus Incentive Plan [Member] | SARs [Member] | |||||
Description of Plan [Abstract] | |||||
Number of equal installments for awards to vest | Installment | 3 | ||||
Expiration period | 10 years | ||||
Weighted Average Remaining Contractual Life and Intrinsic Value [Abstract] | |||||
Closing price per share (in dollars per share) | $ 13.65 | $ 13.15 | $ 16.07 | ||
Intrinsic value of unvested shares | $ | $ 49,000 | $ 800,000 | |||
2010 Omnibus Incentive Plan [Member] | RSUs [Member] | |||||
Description of Plan [Abstract] | |||||
Number of equal installments for awards to vest | Installment | 3 | ||||
Expiration period | 10 years |
SHARE-BASED COMPENSATION, RSU Activity (Details) - RSUs [Member] - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Number of Shares [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 36,075 | 161,480 | 284,014 |
Granted (in shares) | 0 | 0 | 0 |
Vested (in shares) | (36,075) | (119,666) | (122,534) |
Canceled or forfeited (in shares) | 0 | (5,739) | 0 |
Outstanding, ending balance (in shares) | 0 | 36,075 | 161,480 |
Weighted Average Grant Date Fair Value [Abstract] | |||
Outstanding and unvested, beginning balance (in dollars per share) | $ 12.28 | $ 12.81 | $ 12.88 |
Granted (in dollars per share) | 0 | 0 | 0 |
Vested (in dollars per share) | 12.28 | 12.99 | 12.98 |
Canceled or forfeited (in dollars per share) | 0 | 12.28 | 0 |
Outstanding and unvested, ending balance (in dollars per share) | 0 | 12.28 | 12.81 |
Weighted Average Remaining Contractual Life and Intrinsic Value [Abstract] | |||
Closing price per share (in dollars per share) | $ 13.65 | $ 13.15 | $ 16.07 |
Intrinsic value of unvested shares | $ 0.5 | $ 2.6 |
SHARE-BASED COMPENSATION, Valuation Assumptions (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Share-based Compensation Expense [Abstract] | |||
Unamortized share-based compensation expense | $ 0 | $ 100,000 | $ 900,000 |
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Expense [Abstract] | |||
Share-based compensation expense | $ 200,000 | $ 30,000 | $ 3,200,000 |
SARs [Member] | Minimum [Member] | |||
Valuation Assumptions [Abstract] | |||
Risk free interest rate | 0.90% | 0.90% | 0.90% |
Volatility | 47.00% | 48.00% | 51.00% |
Expected life | 6 years | 6 years | 6 years |
SARs [Member] | Maximum [Member] | |||
Valuation Assumptions [Abstract] | |||
Risk free interest rate | 1.76% | 2.32% | 2.51% |
Volatility | 57.00% | 57.00% | 63.00% |
Expected life | 7 years | 8 years | 8 years |
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
[1] | Dec. 31, 2014 |
[1] | Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
[1] | Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
Numerator [Abstract] | ||||||||||||||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ 17,314 | $ 13,471 | $ 21,746 | $ 7,653 | $ 22,798 | $ 60,184 | $ 53,940 | |||||||||||
Dividends declared and paid to shareholders | (41,388) | (41,392) | (30,531) | |||||||||||||||||||
Dividend equivalents paid to vested RSUs and SARs | (1,054) | (1,426) | (940) | |||||||||||||||||||
Net income available to common shareholders | $ (19,644) | $ 17,366 | $ 22,469 | |||||||||||||||||||
Denominator [Abstract] | ||||||||||||||||||||||
Weighted average shares outstanding-Basic (in shares) | 41,222,690 | 41,405,211 | 34,129,880 | |||||||||||||||||||
Weighted average shares outstanding-Diluted (in shares) | 41,315,149 | 41,527,584 | 34,243,456 | |||||||||||||||||||
Earnings per Share - Basic [Abstract] | ||||||||||||||||||||||
Distributed earnings (in dollars per shares) | $ 1.00 | $ 1.00 | $ 0.89 | |||||||||||||||||||
Undistributed income (excess distribution) (in dollars per shares) | (0.48) | 0.42 | 0.66 | |||||||||||||||||||
Basic earnings per share (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | 0.52 | 1.42 | 1.55 | |||||||||||
Earnings per Share - Diluted [Abstract] | ||||||||||||||||||||||
Distributed earnings (in dollars per shares) | 1.00 | 1.00 | 0.89 | |||||||||||||||||||
Undistributed income (excess distribution) (in dollars per shares) | (0.48) | 0.42 | 0.66 | |||||||||||||||||||
Diluted earnings per share (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | $ 1.55 | |||||||||||
RSUs [Member] | ||||||||||||||||||||||
Denominator [Abstract] | ||||||||||||||||||||||
Dilutive common equivalent shares (in shares) | 7,950 | 48,674 | 102,914 | |||||||||||||||||||
SARs [Member] | ||||||||||||||||||||||
Denominator [Abstract] | ||||||||||||||||||||||
Dilutive common equivalent shares (in shares) | 84,509 | 73,699 | 10,662 | |||||||||||||||||||
|
COMMITMENTS AND CONTINGENCIES (Details) |
12 Months Ended |
---|---|
Dec. 31, 2015
Aircraft
| |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
Number of aircraft committed to sell | 12 |
RELATED PARTY TRANSACTIONS (Details) |
1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2013
USD ($)
$ / shares
shares
|
Dec. 31, 2015
USD ($)
Employee
|
Jun. 30, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
Employee
Aircraft
Extension
|
Dec. 31, 2014
USD ($)
Aircraft
|
Dec. 31, 2013
USD ($)
|
||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Number of employees | Employee | 0 | 0 | |||||||||||||
Number of aircraft purchased | Aircraft | 9 | 22 | |||||||||||||
New shares issued (in shares) | shares | 13,142,856 | ||||||||||||||
Public offering price (in dollars per share) | $ / shares | $ 14.00 | ||||||||||||||
Proceeds from issuance of shares | $ 172,600,000 | $ 0 | $ 0 | [1] | $ 172,595,000 | [1] | |||||||||
Fixed Management Expenses [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Annual fee with related party | $ 5,700,000 | $ 10,700,000 | |||||||||||||
Disposition Fees for ECAF-I Transaction [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Number of aircraft purchased | Aircraft | 2 | ||||||||||||||
Manager [Member] | Reimbursable Expenses Under Agreements [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Expenses with related party | $ 300,000 | 300,000 | |||||||||||||
Manager [Member] | Origination Fees [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Expenses with related party | 1,000,000 | 3,100,000 | 2,500,000 | ||||||||||||
Charges from related party | 9,200,000 | 12,800,000 | 9,500,000 | ||||||||||||
Manager [Member] | Fixed Management Expenses [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Expenses with related party | 8,200,000 | 10,600,000 | 10,500,000 | ||||||||||||
Quarterly fee with related party | $ 2,500,000 | ||||||||||||||
Manager [Member] | Disposition Fees [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Expenses with related party | $ 15,600,000 | 2,200,000 | 2,000,000 | ||||||||||||
Percentage of aggregate gross proceeds from disposition of aircraft | 1.50% | ||||||||||||||
Manager [Member] | Fixed Management Fee [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Adjustment for percentage change in book value of aircraft portfolio during preceding year | 0.30% | ||||||||||||||
Adjustment for percentage change in book value of aircraft portfolio in excess of $2.0 billion | 0.25% | ||||||||||||||
Number of automatic extensions | Extension | 1 | ||||||||||||||
Term of extension | 5 years | ||||||||||||||
Termination notice period | 12 months | ||||||||||||||
Initial term of agreement | 10 years | ||||||||||||||
Manager [Member] | Fixed Management Fee [Member] | Minimum [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Charges from related party | $ 5,000,000 | ||||||||||||||
Manager [Member] | Fixed Management Fee [Member] | Maximum [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Charges from related party | 12,000,000 | ||||||||||||||
Adjustment increase over book value of post ECAF-I Transaction portfolio | 2,000,000,000 | ||||||||||||||
Manager [Member] | Non-Renewal Fee [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Charges from related party | $ 6,000,000 | ||||||||||||||
Adjustment percentage of excess Management Expenses over threshold | 50.00% | ||||||||||||||
Manager [Member] | Disposition Fees for ECAF-I Transaction [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Percentage of aggregate gross proceeds from disposition of aircraft | 1.20% | ||||||||||||||
BBAM [Member] | |||||||||||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||||||||||
2016 | 9,501,000 | $ 9,501,000 | |||||||||||||
2017 | 9,446,000 | 9,446,000 | |||||||||||||
2018 | 9,335,000 | 9,335,000 | |||||||||||||
2019 | 9,194,000 | 9,194,000 | |||||||||||||
2020 | 9,065,000 | 9,065,000 | |||||||||||||
Thereafter | 47,308,000 | 47,308,000 | |||||||||||||
Total | 93,849,000 | 93,849,000 | |||||||||||||
BBAM [Member] | Base and Rent Fees Under Agreements [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Expenses with related party | 15,200,000 | 14,400,000 | 12,100,000 | ||||||||||||
BBAM [Member] | Fixed Administrative Services Fees [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Expenses with related party | 2,100,000 | $ 2,100,000 | $ 1,900,000 | ||||||||||||
BBAM [Member] | Fixed Administrative Services Fees [Member] | B&B Air Funding [Member] | |||||||||||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||||||||||
2016 | [2] | 851,000 | 851,000 | ||||||||||||
2017 | [2] | 851,000 | 851,000 | ||||||||||||
2018 | [2] | 851,000 | 851,000 | ||||||||||||
2019 | [2] | 851,000 | 851,000 | ||||||||||||
2020 | [2] | 851,000 | 851,000 | ||||||||||||
Thereafter | [2] | 5,997,000 | 5,997,000 | ||||||||||||
Total | [2] | 10,252,000 | 10,252,000 | ||||||||||||
BBAM [Member] | Fixed Management Expenses [Member] | |||||||||||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||||||||||
2016 | [2] | 5,722,000 | 5,722,000 | ||||||||||||
2017 | [2] | 5,722,000 | 5,722,000 | ||||||||||||
2018 | [2] | 5,722,000 | 5,722,000 | ||||||||||||
2019 | [2] | 5,722,000 | 5,722,000 | ||||||||||||
2020 | [2] | 5,722,000 | 5,722,000 | ||||||||||||
Thereafter | [2] | 25,752,000 | 25,752,000 | ||||||||||||
Total | [2] | 54,362,000 | 54,362,000 | ||||||||||||
BBAM [Member] | Fixed Base Fees [Member] | |||||||||||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||||||||||
2016 | [2] | 2,043,000 | 2,043,000 | ||||||||||||
2017 | [2] | 2,043,000 | 2,043,000 | ||||||||||||
2018 | [2] | 2,043,000 | 2,043,000 | ||||||||||||
2019 | [2] | 2,043,000 | 2,043,000 | ||||||||||||
2020 | [2] | 2,043,000 | 2,043,000 | ||||||||||||
Thereafter | [2] | 14,391,000 | 14,391,000 | ||||||||||||
Total | [2] | 24,606,000 | 24,606,000 | ||||||||||||
BBAM [Member] | Fixed Base Fees [Member] | B&B Air Funding [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Monthly fee with related party | 150,000 | ||||||||||||||
BBAM [Member] | Fixed Administrative Services Fee Under Term Loan [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Monthly fee with related party | 10,000 | ||||||||||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||||||||||
2016 | [3] | 381,000 | 381,000 | ||||||||||||
2017 | [3] | 348,000 | 348,000 | ||||||||||||
2018 | [3] | 295,000 | 295,000 | ||||||||||||
2019 | [3] | 228,000 | 228,000 | ||||||||||||
2020 | [3] | 114,000 | 114,000 | ||||||||||||
Thereafter | [3] | 240,000 | 240,000 | ||||||||||||
Total | [3] | 1,606,000 | 1,606,000 | ||||||||||||
BBAM [Member] | Fixed Administrative Services Fee Under Fly Acquisition II Facility [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Monthly fee with related party | $ 10,000 | ||||||||||||||
BBAM [Member] | Rent Fee for Aircraft Financed by Securitization Notes [Member] | B&B Air Funding [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Percentage of aircraft rent due | 1.00% | ||||||||||||||
Percentage of aircraft rent collected | 1.00% | ||||||||||||||
BBAM [Member] | Servicing Fee for All Other Aircraft [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Percentage of aircraft rent collected | 3.50% | ||||||||||||||
BBAM [Member] | Fixed Administrative Agency Fee [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Monthly fee per aircraft with related party | $ 1,000 | ||||||||||||||
Minimum Long-Term Contractual Obligations [Abstract] | |||||||||||||||
2016 | [3] | 504,000 | 504,000 | ||||||||||||
2017 | [3] | 482,000 | 482,000 | ||||||||||||
2018 | [3] | 424,000 | 424,000 | ||||||||||||
2019 | [3] | 350,000 | 350,000 | ||||||||||||
2020 | [3] | 335,000 | 335,000 | ||||||||||||
Thereafter | [3] | 928,000 | 928,000 | ||||||||||||
Total | [3] | $ 3,023,000 | 3,023,000 | ||||||||||||
BBAM [Member] | Fixed Administrative Agency Fee [Member] | B&B Air Funding [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
Charges from related party | $ 750,000 | ||||||||||||||
Certain Officers and Directors [Member] | |||||||||||||||
Related Party Transactions [Abstract] | |||||||||||||||
New shares issued (in shares) | shares | 142,857 | ||||||||||||||
Public offering price (in dollars per share) | $ / shares | $ 14.00 | ||||||||||||||
Proceeds from issuance of shares | $ 2,000,000 | ||||||||||||||
|
FAIR VALUE MEASUREMENTS, Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
[1] | ||||
FAIR VALUE MEASUREMENTS [Abstract] | |||||||
Aircraft impairment | $ 66,093 | $ 1,200 | [1] | $ 6,166 | |||
Financial Instruments [Abstract] | |||||||
Derivative asset | 241 | 2,067 | [1] | ||||
Derivative liabilities | 19,327 | 23,311 | [1] | ||||
Carrying Amount [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Derivative asset | 241 | 2,067 | |||||
Derivative liabilities | 19,327 | 23,311 | |||||
Carrying Amount [Member] | Securitization Notes [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 288,869 | 532,035 | |||||
Carrying Amount [Member] | Nord LB Facility [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 251,849 | 408,484 | |||||
Carrying Amount [Member] | CBA Facility [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 87,070 | 113,208 | |||||
Carrying Amount [Member] | Term Loan [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 421,975 | 443,383 | |||||
Carrying Amount [Member] | Fly Acquisition II Facility [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 0 | 121,589 | |||||
Carrying Amount [Member] | Other Aircraft Secured Borrowings [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 655,548 | 713,970 | |||||
Carrying Amount [Member] | 2020 Notes [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 370,790 | 369,942 | |||||
Carrying Amount [Member] | 2021 Notes [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 320,319 | 319,510 | |||||
Fair Value [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Derivative asset | 241 | 2,067 | [1] | ||||
Derivative liabilities | 19,327 | 23,311 | [1] | ||||
Fair Value [Member] | Securitization Notes [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 252,897 | 467,228 | [1] | ||||
Fair Value [Member] | Nord LB Facility [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 251,849 | 408,484 | [1] | ||||
Fair Value [Member] | CBA Facility [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 87,070 | 113,208 | [1] | ||||
Fair Value [Member] | Term Loan [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 421,921 | 449,289 | [1] | ||||
Fair Value [Member] | Fly Acquisition II Facility [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 0 | 128,080 | [1] | ||||
Fair Value [Member] | Other Aircraft Secured Borrowings [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 653,992 | 716,063 | [1] | ||||
Fair Value [Member] | 2020 Notes [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | 375,000 | 380,625 | [1] | ||||
Fair Value [Member] | 2021 Notes [Member] | |||||||
Financial Instruments [Abstract] | |||||||
Debt | $ 333,125 | $ 321,750 | [1] | ||||
|
FAIR VALUE MEASUREMENTS, Asset and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||
---|---|---|---|---|---|
Derivative Assets and Liabilities [Abstract] | |||||
Derivative asset | $ 241 | $ 2,067 | [1] | ||
Derivative liabilities | 19,327 | 23,311 | [1] | ||
Level 1 [Member] | |||||
Derivative Assets and Liabilities [Abstract] | |||||
Derivative asset | 0 | 0 | |||
Derivative liabilities | 0 | 0 | |||
Level 2 [Member] | |||||
Derivative Assets and Liabilities [Abstract] | |||||
Derivative asset | 241 | 2,067 | |||
Derivative liabilities | 19,327 | 23,311 | |||
Level 3 [Member] | |||||
Derivative Assets and Liabilities [Abstract] | |||||
Derivative asset | 0 | 0 | |||
Derivative liabilities | $ 0 | $ 0 | |||
|
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
[1] | Dec. 31, 2014 |
[1] | Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
[1] | Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
UNAUDITED QUARTERLY CONDENSED CONSOLIDATED FINANCIAL INFORMATION [Abstract] | ||||||||||||||||||||||
Total revenues | $ 123,634 | $ 112,655 | $ 102,822 | $ 123,286 | $ 120,288 | $ 102,374 | $ 108,566 | $ 94,320 | $ 462,397 | $ 425,548 | $ 360,634 | |||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ 17,314 | $ 13,471 | $ 21,746 | $ 7,653 | $ 22,798 | $ 60,184 | $ 53,940 | |||||||||||
Earnings per share - Basic (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | $ 1.55 | |||||||||||
Earnings per share - Diluted (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | $ 1.55 | |||||||||||
|
SUBSEQUENT EVENTS (Details) |
2 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Feb. 26, 2016
USD ($)
|
Dec. 22, 2015
$ / shares
shares
|
Mar. 11, 2016
USD ($)
Aircraft
$ / shares
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Dec. 31, 2014
shares
|
Mar. 31, 2016
USD ($)
|
Nov. 12, 2015
USD ($)
|
May. 06, 2015
USD ($)
|
|
Repurchase of Stock [Abstract] | ||||||||
Shares repurchased (in shares) | shares | 5,376,344 | 421,329 | 0 | |||||
Average price per share repurchased (in dollars per share) | $ / shares | $ 13.95 | $ 13.08 | ||||||
Shares repurchased | $ (5,529,000) | |||||||
Stock repurchase program amount | $ 100,000,000 | $ 30,000,000 | ||||||
Subsequent Event [Member] | ||||||||
Repurchase of Stock [Abstract] | ||||||||
Shares repurchased (in shares) | shares | 2,071,910 | |||||||
Average price per share repurchased (in dollars per share) | $ / shares | $ 12.04 | |||||||
Shares repurchased | $ 24,900,000 | |||||||
Stock repurchase program amount | $ 30,000,000 | |||||||
Subsequent Event [Member] | Wide-Body Aircraft [Member] | ||||||||
Aircraft Sales [Abstract] | ||||||||
Number of aircraft sold | Aircraft | 1 | |||||||
Subsequent Event [Member] | Narrow-Body Aircraft [Member] | ||||||||
Aircraft Sales [Abstract] | ||||||||
Number of aircraft sold | Aircraft | 13 | |||||||
Subsequent Event [Member] | Servicing Agreement Under Fly Acquisition III Facility [Member] | ||||||||
Revolving Credit Facility [Abstract] | ||||||||
Monthly fee with related party | $ 10,000 | |||||||
Percentage of aircraft rent collected | 3.50% | |||||||
Monthly fee per aircraft with related party | $ 1,000 | |||||||
Subsequent Event [Member] | Fly Acquisition III Facility [Member] | Revolving Credit Facility [Member] | ||||||||
Revolving Credit Facility [Abstract] | ||||||||
Maximum borrowing capacity | $ 385,000,000 | |||||||
Maturity date | Feb. 26, 2022 | |||||||
Upfront fee paid | $ 3,700,000 | |||||||
Subsequent Event [Member] | Fly Acquisition III Facility [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||||
Revolving Credit Facility [Abstract] | ||||||||
Term of variable rate | 1 month | |||||||
Basis spread on variable rate | 2.00% | |||||||
Basis spread on variable rate from February 27, 2019 through February 26, 2020 | 2.50% | |||||||
Basis spread on variable rate from February 27, 2020 through maturity date of facility | 3.00% |
Schedule I - Condensed Financial Information of Parent, Condensed Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | Dec. 31, 2012 |
[1] | ||
---|---|---|---|---|---|---|---|---|---|
Assets [Abstract] | |||||||||
Cash and cash equivalents | $ 275,998 | $ 337,560 | $ 404,472 | $ 163,124 | |||||
Investment in unconsolidated subsidiary | 7,170 | 4,002 | |||||||
Other assets, net | 17,750 | 28,949 | |||||||
Total assets | 3,428,275 | 4,218,408 | |||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 7,170 | 2,772 | |||||||
Unsecured borrowings, net | 691,109 | 689,452 | |||||||
Deferred tax liability, net | 20,741 | 15,306 | |||||||
Total liabilities | 2,771,311 | 3,462,154 | |||||||
Shareholders' equity | 656,964 | 756,254 | 742,096 | 523,811 | |||||
Total liabilities and shareholders' equity | 3,428,275 | 4,218,408 | |||||||
Fly Leasing Limited [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 139,339 | 218,538 | $ 277,267 | $ 82,124 | |||||
Notes receivable from subsidiaries | 735,835 | 591,025 | |||||||
Investments in subsidiaries | 778,080 | 796,389 | |||||||
Investment in unconsolidated subsidiary | 7,170 | 4,002 | |||||||
Other assets, net | 2,712 | 4,097 | |||||||
Total assets | 1,663,136 | 1,614,051 | |||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 50 | 917 | |||||||
Payable to subsidiaries | 289,961 | 140,583 | |||||||
Unsecured borrowings, net | 691,109 | 689,452 | |||||||
Deferred tax liability, net | 13,675 | 15,951 | |||||||
Accrued and other liabilities | 11,377 | 10,894 | |||||||
Total liabilities | 1,006,172 | 857,797 | |||||||
Shareholders' equity | 656,964 | 756,254 | |||||||
Total liabilities and shareholders' equity | $ 1,663,136 | $ 1,614,051 | |||||||
|
Schedule I - Condensed Financial Information of Parent, Condensed Statements of Income (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
[1] | Dec. 31, 2014 |
[1] | Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
[1] | Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
[1] | |||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | $ 1,159 | $ 3,562 | $ 1,491 | |||||||||||||||||||
Interest and other income | 2,289 | 662 | 1,930 | |||||||||||||||||||
Total revenues | $ 123,634 | $ 112,655 | $ 102,822 | $ 123,286 | $ 120,288 | $ 102,374 | $ 108,566 | $ 94,320 | 462,397 | 425,548 | 360,634 | |||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 145,448 | 142,519 | 120,399 | |||||||||||||||||||
Selling, general and administrative | 33,674 | 41,033 | 39,593 | |||||||||||||||||||
Total expenses | 434,200 | 356,673 | 303,560 | |||||||||||||||||||
Net income before provision for income taxes | 28,197 | 68,875 | 57,074 | |||||||||||||||||||
Income tax benefit | 5,399 | 8,691 | 3,134 | |||||||||||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ 17,314 | $ 13,471 | $ 21,746 | $ 7,653 | $ 22,798 | $ 60,184 | $ 53,940 | |||||||||||
Weighted average number of shares [Abstract] | ||||||||||||||||||||||
Basic (in shares) | 41,222,690 | 41,405,211 | 34,129,880 | |||||||||||||||||||
Diluted (in shares) | 41,315,149 | 41,527,584 | 34,243,456 | |||||||||||||||||||
Earnings per share [Abstract] | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | $ 1.55 | |||||||||||
Diluted (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | $ 1.55 | |||||||||||
Fly Leasing Limited [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings of subsidiaries | $ 17,065 | $ 59,447 | $ 52,980 | |||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 1,159 | 3,562 | 1,491 | |||||||||||||||||||
Intercompany management fee income | 15,053 | 16,921 | 15,780 | |||||||||||||||||||
Intercompany interest income | 48,077 | 22,394 | 1,407 | |||||||||||||||||||
Interest and other income | 224 | 215 | 185 | |||||||||||||||||||
Total revenues | 81,578 | 102,539 | 71,843 | |||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 48,013 | 28,089 | 1,887 | |||||||||||||||||||
Selling, general and administrative | 12,987 | 15,520 | 17,644 | |||||||||||||||||||
Total expenses | 61,000 | 43,609 | 19,531 | |||||||||||||||||||
Net income before provision for income taxes | 20,578 | 58,930 | 52,312 | |||||||||||||||||||
Income tax benefit | (2,220) | (1,254) | (1,628) | |||||||||||||||||||
Net income | $ 22,798 | $ 60,184 | $ 53,940 | |||||||||||||||||||
Weighted average number of shares [Abstract] | ||||||||||||||||||||||
Basic (in shares) | 41,222,690 | 41,405,211 | 34,129,880 | |||||||||||||||||||
Diluted (in shares) | 41,315,149 | 41,527,584 | 34,243,456 | |||||||||||||||||||
Earnings per share [Abstract] | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 0.52 | $ 1.42 | $ 1.55 | |||||||||||||||||||
Diluted (in dollars per shares) | $ 0.52 | $ 1.42 | $ 1.55 | |||||||||||||||||||
|
Schedule I - Condensed Financial Information of Parent, Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2013 |
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
Dec. 31, 2014 |
[1] | Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||||||
Cash Flows from Operating Activities [Abstract] | ||||||||||||||||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | [1] | $ 17,314 | $ 13,471 | $ 21,746 | $ 7,653 | [1] | $ 22,798 | $ 60,184 | [1] | $ 53,940 | [1] | |||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | ||||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (1,159) | (3,562) | [1] | (1,491) | [1] | |||||||||||||||||||
Deferred income taxes | 4,919 | 8,431 | [1] | 3,670 | [1] | |||||||||||||||||||
Share-based compensation | 195 | 30 | [1] | 3,177 | [1] | |||||||||||||||||||
Distributions from unconsolidated subsidiary | 0 | 5,501 | [1] | 0 | [1] | |||||||||||||||||||
Changes in operating assets and liabilities [Abstract] | ||||||||||||||||||||||||
Other assets | 137 | (1,589) | [1] | (1,969) | [1] | |||||||||||||||||||
Payable to related parties | (19,407) | (12,848) | [1] | (7,613) | [1] | |||||||||||||||||||
Net cash flows provided by operating activities | 214,923 | 227,165 | [1] | 181,474 | [1] | |||||||||||||||||||
Cash Flows from Investing Activities [Abstract] | ||||||||||||||||||||||||
Net cash flows provided by (used in) investing activities | 480,537 | (840,559) | [1] | (608,590) | [1] | |||||||||||||||||||
Cash Flows from Financing Activities [Abstract] | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | $ 172,600 | 0 | 0 | [1] | 172,595 | [1] | ||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 396,563 | [1] | 291,389 | [1] | |||||||||||||||||||
Debt issuance costs | (933) | (1,803) | [1] | (11,825) | [1] | |||||||||||||||||||
Shares repurchased | (81,432) | 0 | [1] | 0 | [1] | |||||||||||||||||||
Dividends paid | (41,388) | (41,392) | [1] | (30,531) | [1] | |||||||||||||||||||
Dividend equivalents | (1,054) | (1,426) | [1] | (940) | [1] | |||||||||||||||||||
Net cash flows (used in) provided by financing activities | (756,598) | 546,482 | [1] | 668,464 | [1] | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (61,562) | (66,912) | [1] | 241,348 | [1] | |||||||||||||||||||
Cash and cash equivalents at beginning of year | [1] | 337,560 | 404,472 | 337,560 | 404,472 | 163,124 | ||||||||||||||||||
Cash and cash equivalents at end of year | 275,998 | 337,560 | 275,998 | 337,560 | [1] | 404,472 | [1] | |||||||||||||||||
Cash paid during the year for [Abstract] | ||||||||||||||||||||||||
Interest | 132,780 | 119,745 | [1] | 97,481 | [1] | |||||||||||||||||||
Taxes | 384 | 188 | [1] | 84 | [1] | |||||||||||||||||||
Fly Leasing Limited [Member] | ||||||||||||||||||||||||
Cash Flows from Operating Activities [Abstract] | ||||||||||||||||||||||||
Net income | 22,798 | 60,184 | [1] | 53,940 | [1] | |||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | (17,065) | (59,447) | [1] | (52,980) | [1] | |||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (1,159) | (3,562) | [1] | (1,491) | [1] | |||||||||||||||||||
Deferred income taxes | (2,276) | (2,004) | [1] | (1,654) | [1] | |||||||||||||||||||
Share-based compensation | 195 | 30 | [1] | 3,177 | [1] | |||||||||||||||||||
Amortization of debt discount and others | 1,982 | 1,537 | [1] | 76 | [1] | |||||||||||||||||||
Distributions from unconsolidated subsidiary | 0 | 5,501 | [1] | 0 | [1] | |||||||||||||||||||
Changes in operating assets and liabilities [Abstract] | ||||||||||||||||||||||||
Receivable from subsidiaries | 132,843 | 117,806 | [1] | 12,797 | [1] | |||||||||||||||||||
Other assets | 1,060 | (1,672) | [1] | 45 | [1] | |||||||||||||||||||
Payable to related parties | (867) | (48) | [1] | (1,435) | [1] | |||||||||||||||||||
Accrued and other liabilities | 483 | 7,211 | [1] | 670 | [1] | |||||||||||||||||||
Net cash flows provided by operating activities | 137,994 | 125,536 | [1] | 13,145 | [1] | |||||||||||||||||||
Cash Flows from Investing Activities [Abstract] | ||||||||||||||||||||||||
Capital contributions to subsidiaries | 0 | (5,058) | [1] | (256,515) | [1] | |||||||||||||||||||
Distributions received from subsidiaries | 53,500 | 1,925 | [1] | 6,000 | [1] | |||||||||||||||||||
Capital contributions to unconsolidated subsidiary | (2,009) | 0 | [1] | 0 | [1] | |||||||||||||||||||
Distributions received from unconsolidated subsidiary | 0 | 1,132 | [1] | 0 | [1] | |||||||||||||||||||
Notes receivable from subsidiaries | (650,083) | (628,994) | [1] | 0 | [1] | |||||||||||||||||||
Notes payable to subsidiaries | 505,273 | 94,101 | [1] | 0 | [1] | |||||||||||||||||||
Net cash flows provided by (used in) investing activities | (93,319) | (536,894) | [1] | (250,515) | [1] | |||||||||||||||||||
Cash Flows from Financing Activities [Abstract] | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | 0 | 0 | [1] | 172,595 | [1] | |||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 396,563 | [1] | 291,389 | [1] | |||||||||||||||||||
Debt issuance costs | 0 | (1,116) | [1] | 0 | [1] | |||||||||||||||||||
Shares repurchased | (81,432) | 0 | [1] | 0 | [1] | |||||||||||||||||||
Dividends paid | (41,388) | (41,392) | [1] | (30,531) | [1] | |||||||||||||||||||
Dividend equivalents | (1,054) | (1,426) | [1] | (940) | [1] | |||||||||||||||||||
Net cash flows (used in) provided by financing activities | (123,874) | 352,629 | [1] | 432,513 | [1] | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (79,199) | (58,729) | [1] | 195,143 | [1] | |||||||||||||||||||
Cash and cash equivalents at beginning of year | [1] | $ 218,538 | $ 277,267 | 218,538 | 277,267 | 82,124 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ 139,339 | $ 218,538 | 139,339 | 218,538 | [1] | 277,267 | [1] | |||||||||||||||||
Cash paid during the year for [Abstract] | ||||||||||||||||||||||||
Interest | 46,723 | 21,488 | [1] | 0 | [1] | |||||||||||||||||||
Taxes | 0 | 0 | [1] | 0 | [1] | |||||||||||||||||||
Noncash investing activities [Abstract] | ||||||||||||||||||||||||
Capital contribution to subsidiaries | 17,246 | 0 | [1] | 0 | [1] | |||||||||||||||||||
Distributions paid to subsidiaries | $ 711 | $ 0 | [1] | $ 0 | [1] | |||||||||||||||||||
|
Schedule I - Condensed Financial Information of Parent, Restatement of Prior Financial Statements (Details) |
12 Months Ended |
---|---|
Dec. 31, 2013
Aircraft
| |
Consolidated Financial Information of Parent [Abstract] | |
Number of impaired aircraft | 1 |
Schedule I - Condensed Financial Information of Parent, Restatement of Condensed Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2012 |
|||||
---|---|---|---|---|---|---|---|---|---|
Assets [Abstract] | |||||||||
Cash and cash equivalents | $ 275,998 | $ 337,560 | [1] | $ 404,472 | [1] | $ 163,124 | [1] | ||
Investment in unconsolidated subsidiary | 7,170 | 4,002 | [1] | ||||||
Other assets, net | 17,750 | 28,949 | [1] | ||||||
Total assets | 3,428,275 | 4,218,408 | [1] | ||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 7,170 | 2,772 | [1] | ||||||
Unsecured borrowings, net | 691,109 | 689,452 | [1] | ||||||
Deferred tax liability, net | 20,741 | 15,306 | [1] | ||||||
Total liabilities | 2,771,311 | 3,462,154 | [1] | ||||||
Shareholders' equity | 656,964 | 756,254 | [1] | 742,096 | [1] | 523,811 | [1] | ||
Total liabilities and shareholders' equity | 3,428,275 | 4,218,408 | [1] | ||||||
As Previously Reported [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 337,560 | 404,472 | 163,124 | ||||||
Investment in unconsolidated subsidiary | 4,002 | ||||||||
Other assets, net | 31,608 | ||||||||
Total assets | 4,224,670 | ||||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 2,772 | ||||||||
Unsecured borrowings, net | 689,452 | ||||||||
Deferred tax liability, net | 16,289 | ||||||||
Total liabilities | 3,465,796 | ||||||||
Shareholders' equity | 758,874 | 532,002 | |||||||
Total liabilities and shareholders' equity | 4,224,670 | ||||||||
Adjustments [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 0 | 0 | 0 | ||||||
Liabilities [Abstract] | |||||||||
Shareholders' equity | (8,191) | ||||||||
Maintenance Rights Adjustments [Member] | Adjustments [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 0 | ||||||||
Investment in unconsolidated subsidiary | 0 | ||||||||
Other assets, net | 0 | ||||||||
Total assets | 1,584 | ||||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 0 | ||||||||
Unsecured borrowings, net | 0 | ||||||||
Deferred tax liability, net | 294 | ||||||||
Total liabilities | 294 | ||||||||
Shareholders' equity | 1,290 | ||||||||
Total liabilities and shareholders' equity | 1,584 | ||||||||
Other Adjustments [Member] | Adjustments [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 0 | ||||||||
Investment in unconsolidated subsidiary | 0 | ||||||||
Other assets, net | (2,659) | ||||||||
Total assets | (7,846) | ||||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 0 | ||||||||
Unsecured borrowings, net | 0 | ||||||||
Deferred tax liability, net | (1,277) | ||||||||
Total liabilities | (3,936) | ||||||||
Shareholders' equity | (3,910) | ||||||||
Total liabilities and shareholders' equity | (7,846) | ||||||||
Fly Leasing Limited [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 139,339 | 218,538 | [1] | 277,267 | [1] | 82,124 | [1] | ||
Notes receivable from subsidiaries | 735,835 | 591,025 | [1] | ||||||
Investments in subsidiaries | 778,080 | 796,389 | [1] | ||||||
Investment in unconsolidated subsidiary | 7,170 | 4,002 | [1] | ||||||
Other assets, net | 2,712 | 4,097 | [1] | ||||||
Total assets | 1,663,136 | 1,614,051 | [1] | ||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 50 | 917 | [1] | ||||||
Payable to subsidiaries | 289,961 | 140,583 | [1] | ||||||
Unsecured borrowings, net | 691,109 | 689,452 | [1] | ||||||
Deferred tax liability, net | 13,675 | 15,951 | [1] | ||||||
Accrued and other liabilities | 11,377 | 10,894 | [1] | ||||||
Total liabilities | 1,006,172 | 857,797 | [1] | ||||||
Shareholders' equity | 656,964 | 756,254 | [1] | ||||||
Total liabilities and shareholders' equity | $ 1,663,136 | 1,614,051 | [1] | ||||||
Fly Leasing Limited [Member] | As Previously Reported [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 218,538 | 277,267 | 82,124 | ||||||
Notes receivable from subsidiaries | 591,025 | ||||||||
Investments in subsidiaries | 799,009 | ||||||||
Investment in unconsolidated subsidiary | 4,002 | ||||||||
Other assets, net | 4,097 | ||||||||
Total assets | 1,616,671 | ||||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 917 | ||||||||
Payable to subsidiaries | 140,583 | ||||||||
Unsecured borrowings, net | 689,452 | ||||||||
Deferred tax liability, net | 15,951 | ||||||||
Accrued and other liabilities | 10,894 | ||||||||
Total liabilities | 857,797 | ||||||||
Shareholders' equity | 758,874 | ||||||||
Total liabilities and shareholders' equity | 1,616,671 | ||||||||
Fly Leasing Limited [Member] | Adjustments [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 0 | $ 0 | $ 0 | ||||||
Fly Leasing Limited [Member] | Maintenance Rights Adjustments [Member] | Adjustments [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 0 | ||||||||
Notes receivable from subsidiaries | 0 | ||||||||
Investments in subsidiaries | 1,290 | ||||||||
Investment in unconsolidated subsidiary | 0 | ||||||||
Other assets, net | 0 | ||||||||
Total assets | 1,290 | ||||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 0 | ||||||||
Payable to subsidiaries | 0 | ||||||||
Unsecured borrowings, net | 0 | ||||||||
Deferred tax liability, net | 0 | ||||||||
Accrued and other liabilities | 0 | ||||||||
Total liabilities | 0 | ||||||||
Shareholders' equity | 1,290 | ||||||||
Total liabilities and shareholders' equity | 1,290 | ||||||||
Fly Leasing Limited [Member] | Other Adjustments [Member] | As Previously Reported [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 218,538 | ||||||||
Fly Leasing Limited [Member] | Other Adjustments [Member] | Adjustments [Member] | |||||||||
Assets [Abstract] | |||||||||
Cash and cash equivalents | 0 | ||||||||
Notes receivable from subsidiaries | 0 | ||||||||
Investments in subsidiaries | (3,910) | ||||||||
Investment in unconsolidated subsidiary | 0 | ||||||||
Other assets, net | 0 | ||||||||
Total assets | (3,910) | ||||||||
Liabilities [Abstract] | |||||||||
Payable to related parties | 0 | ||||||||
Payable to subsidiaries | 0 | ||||||||
Unsecured borrowings, net | 0 | ||||||||
Deferred tax liability, net | 0 | ||||||||
Accrued and other liabilities | 0 | ||||||||
Total liabilities | 0 | ||||||||
Shareholders' equity | (3,910) | ||||||||
Total liabilities and shareholders' equity | $ (3,910) | ||||||||
|
Schedule I - Condensed Financial Information of Parent, Restatement of Condensed Statements of Income (Details) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
[1] | Dec. 31, 2014 |
[1] | Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
[1] | Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | $ 1,159 | $ 3,562 | [1] | $ 1,491 | [1] | |||||||||||||||||
Interest and other income | 2,289 | 662 | [1] | 1,930 | [1] | |||||||||||||||||
Total revenues | $ 123,634 | $ 112,655 | $ 102,822 | $ 123,286 | $ 120,288 | $ 102,374 | $ 108,566 | $ 94,320 | 462,397 | 425,548 | [1] | 360,634 | [1] | |||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 145,448 | 142,519 | [1] | 120,399 | [1] | |||||||||||||||||
Selling, general and administrative | 33,674 | 41,033 | [1] | 39,593 | [1] | |||||||||||||||||
Total expenses | 434,200 | 356,673 | [1] | 303,560 | [1] | |||||||||||||||||
Net income before provision for income taxes | 28,197 | 68,875 | [1] | 57,074 | [1] | |||||||||||||||||
Income tax benefit | 5,399 | 8,691 | [1] | 3,134 | [1] | |||||||||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | $ 17,314 | $ 13,471 | $ 21,746 | $ 7,653 | $ 22,798 | $ 60,184 | [1] | $ 53,940 | [1] | |||||||||
Weighted average number of shares [Abstract] | ||||||||||||||||||||||
Basic (in shares) | 41,222,690 | 41,405,211 | [1] | 34,129,880 | [1] | |||||||||||||||||
Diluted (in shares) | 41,315,149 | 41,527,584 | [1] | 34,243,456 | [1] | |||||||||||||||||
Earnings per share [Abstract] | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | [1] | $ 1.55 | [1] | |||||||||
Diluted (in dollars per shares) | $ 0.47 | $ 0.66 | $ (1.06) | $ 0.47 | $ 0.41 | $ 0.32 | $ 0.52 | $ 0.17 | $ 0.52 | $ 1.42 | [1] | $ 1.55 | [1] | |||||||||
As Previously Reported [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | $ 2,456 | $ 1,871 | ||||||||||||||||||||
Interest and other income | 662 | 1,930 | ||||||||||||||||||||
Total revenues | 426,664 | 369,487 | ||||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 142,519 | 120,399 | ||||||||||||||||||||
Selling, general and administrative | 41,148 | 37,418 | ||||||||||||||||||||
Total expenses | 362,324 | 311,352 | ||||||||||||||||||||
Net income before provision for income taxes | 64,340 | 58,135 | ||||||||||||||||||||
Income tax benefit | 8,263 | 5,659 | ||||||||||||||||||||
Net income | $ 56,077 | $ 52,476 | ||||||||||||||||||||
Earnings per share [Abstract] | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 1.32 | $ 1.51 | ||||||||||||||||||||
Diluted (in dollars per shares) | $ 1.32 | $ 1.50 | ||||||||||||||||||||
Adjustments [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | $ 1,106 | $ (380) | ||||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Net income | 4,107 | 1,464 | ||||||||||||||||||||
Maintenance Rights Adjustments [Member] | Adjustments [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||
Interest and other income | 0 | 0 | ||||||||||||||||||||
Total revenues | (2,669) | (8,918) | ||||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 0 | 0 | ||||||||||||||||||||
Selling, general and administrative | 0 | 0 | ||||||||||||||||||||
Total expenses | (6,577) | (10,513) | ||||||||||||||||||||
Net income before provision for income taxes | 3,908 | 1,595 | ||||||||||||||||||||
Income tax benefit | 751 | 118 | ||||||||||||||||||||
Net income | 3,157 | 1,477 | ||||||||||||||||||||
Other Adjustments [Member] | Adjustments [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 1,106 | (380) | ||||||||||||||||||||
Interest and other income | 0 | 0 | ||||||||||||||||||||
Total revenues | 1,553 | 65 | ||||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 0 | 0 | ||||||||||||||||||||
Selling, general and administrative | (115) | 2,175 | ||||||||||||||||||||
Total expenses | 926 | 2,721 | ||||||||||||||||||||
Net income before provision for income taxes | 627 | (2,656) | ||||||||||||||||||||
Income tax benefit | (323) | (2,643) | ||||||||||||||||||||
Net income | 950 | (13) | ||||||||||||||||||||
Fly Leasing Limited [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings of subsidiaries | $ 17,065 | 59,447 | [1] | 52,980 | [1] | |||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 1,159 | 3,562 | [1] | 1,491 | [1] | |||||||||||||||||
Intercompany management fee income | 15,053 | 16,921 | [1] | 15,780 | [1] | |||||||||||||||||
Intercompany interest income | 48,077 | 22,394 | [1] | 1,407 | [1] | |||||||||||||||||
Interest and other income | 224 | 215 | [1] | 185 | [1] | |||||||||||||||||
Total revenues | 81,578 | 102,539 | [1] | 71,843 | [1] | |||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 48,013 | 28,089 | [1] | 1,887 | [1] | |||||||||||||||||
Selling, general and administrative | 12,987 | 15,520 | [1] | 17,644 | [1] | |||||||||||||||||
Total expenses | 61,000 | 43,609 | [1] | 19,531 | [1] | |||||||||||||||||
Net income before provision for income taxes | 20,578 | 58,930 | [1] | 52,312 | [1] | |||||||||||||||||
Income tax benefit | (2,220) | (1,254) | [1] | (1,628) | [1] | |||||||||||||||||
Net income | $ 22,798 | $ 60,184 | [1] | $ 53,940 | [1] | |||||||||||||||||
Weighted average number of shares [Abstract] | ||||||||||||||||||||||
Basic (in shares) | 41,222,690 | 41,405,211 | [1] | 34,129,880 | [1] | |||||||||||||||||
Diluted (in shares) | 41,315,149 | 41,527,584 | [1] | 34,243,456 | [1] | |||||||||||||||||
Earnings per share [Abstract] | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 0.52 | $ 1.42 | [1] | $ 1.55 | [1] | |||||||||||||||||
Diluted (in dollars per shares) | $ 0.52 | $ 1.42 | [1] | $ 1.55 | [1] | |||||||||||||||||
Fly Leasing Limited [Member] | As Previously Reported [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings of subsidiaries | $ 56,446 | $ 51,136 | ||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 2,456 | 1,871 | ||||||||||||||||||||
Intercompany management fee income | 16,921 | 15,780 | ||||||||||||||||||||
Intercompany interest income | 22,394 | 1,407 | ||||||||||||||||||||
Interest and other income | 215 | 185 | ||||||||||||||||||||
Total revenues | 98,432 | 70,379 | ||||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 28,089 | 1,887 | ||||||||||||||||||||
Selling, general and administrative | 15,520 | 17,644 | ||||||||||||||||||||
Total expenses | 43,609 | 19,531 | ||||||||||||||||||||
Net income before provision for income taxes | 54,823 | 50,848 | ||||||||||||||||||||
Income tax benefit | (1,254) | (1,628) | ||||||||||||||||||||
Net income | $ 56,077 | $ 52,476 | ||||||||||||||||||||
Weighted average number of shares [Abstract] | ||||||||||||||||||||||
Basic (in shares) | 41,405,211 | 34,129,880 | ||||||||||||||||||||
Diluted (in shares) | 41,527,584 | 34,243,456 | ||||||||||||||||||||
Earnings per share [Abstract] | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 1.32 | $ 1.51 | ||||||||||||||||||||
Diluted (in dollars per shares) | $ 1.32 | $ 1.50 | ||||||||||||||||||||
Fly Leasing Limited [Member] | Adjustments [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings of subsidiaries | $ 3,001 | $ 1,844 | ||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 1,106 | (380) | ||||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Net income | 4,107 | 1,464 | ||||||||||||||||||||
Fly Leasing Limited [Member] | Maintenance Rights Adjustments [Member] | Adjustments [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings of subsidiaries | 3,157 | 1,477 | ||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||
Intercompany management fee income | 0 | 0 | ||||||||||||||||||||
Intercompany interest income | 0 | 0 | ||||||||||||||||||||
Interest and other income | 0 | 0 | ||||||||||||||||||||
Total revenues | 3,157 | 1,477 | ||||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 0 | 0 | ||||||||||||||||||||
Selling, general and administrative | 0 | 0 | ||||||||||||||||||||
Total expenses | 0 | 0 | ||||||||||||||||||||
Net income before provision for income taxes | 3,157 | 1,477 | ||||||||||||||||||||
Income tax benefit | 0 | 0 | ||||||||||||||||||||
Net income | $ 3,157 | $ 1,477 | ||||||||||||||||||||
Weighted average number of shares [Abstract] | ||||||||||||||||||||||
Basic (in shares) | 0 | 0 | ||||||||||||||||||||
Diluted (in shares) | 0 | 0 | ||||||||||||||||||||
Earnings per share [Abstract] | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 0 | $ 0 | ||||||||||||||||||||
Diluted (in dollars per shares) | $ 0 | $ 0 | ||||||||||||||||||||
Fly Leasing Limited [Member] | Other Adjustments [Member] | Adjustments [Member] | ||||||||||||||||||||||
Revenues [Abstract] | ||||||||||||||||||||||
Equity in earnings of subsidiaries | $ (156) | $ 367 | ||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | 1,106 | (380) | ||||||||||||||||||||
Intercompany management fee income | 0 | 0 | ||||||||||||||||||||
Intercompany interest income | 0 | 0 | ||||||||||||||||||||
Interest and other income | 0 | 0 | ||||||||||||||||||||
Total revenues | 950 | (13) | ||||||||||||||||||||
Expense [Abstract] | ||||||||||||||||||||||
Interest expense | 0 | 0 | ||||||||||||||||||||
Selling, general and administrative | 0 | 0 | ||||||||||||||||||||
Total expenses | 0 | 0 | ||||||||||||||||||||
Net income before provision for income taxes | 950 | (13) | ||||||||||||||||||||
Income tax benefit | 0 | 0 | ||||||||||||||||||||
Net income | $ 950 | $ (13) | ||||||||||||||||||||
Weighted average number of shares [Abstract] | ||||||||||||||||||||||
Basic (in shares) | 0 | 0 | ||||||||||||||||||||
Diluted (in shares) | 0 | 0 | ||||||||||||||||||||
Earnings per share [Abstract] | ||||||||||||||||||||||
Basic (in dollars per shares) | $ 0 | $ 0 | ||||||||||||||||||||
Diluted (in dollars per shares) | $ 0 | $ 0 | ||||||||||||||||||||
|
Schedule I - Condensed Financial Information of Parent, Restatement of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 31, 2013 |
Dec. 31, 2015 |
Sep. 30, 2015 |
[1] | Jun. 30, 2015 |
[1] | Mar. 31, 2015 |
Dec. 31, 2014 |
Sep. 30, 2014 |
[1] | Jun. 30, 2014 |
[1] | Mar. 31, 2014 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||||
Cash Flows from Operating Activities [Abstract] | ||||||||||||||||||||||||
Net income | $ 19,145 | $ 27,483 | $ (43,695) | $ 19,865 | [1] | $ 17,314 | [1] | $ 13,471 | $ 21,746 | $ 7,653 | [1] | $ 22,798 | $ 60,184 | [1] | $ 53,940 | [1] | ||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | ||||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (1,159) | (3,562) | [1] | (1,491) | [1] | |||||||||||||||||||
Deferred income taxes | 4,919 | 8,431 | [1] | 3,670 | [1] | |||||||||||||||||||
Share-based compensation | 195 | 30 | [1] | 3,177 | [1] | |||||||||||||||||||
Distributions from unconsolidated subsidiary | 0 | 5,501 | [1] | 0 | [1] | |||||||||||||||||||
Changes in operating assets and liabilities [Abstract] | ||||||||||||||||||||||||
Other assets | 137 | (1,589) | [1] | (1,969) | [1] | |||||||||||||||||||
Payable to related parties | (19,407) | (12,848) | [1] | (7,613) | [1] | |||||||||||||||||||
Net cash flows provided by operating activities | 214,923 | 227,165 | [1] | 181,474 | [1] | |||||||||||||||||||
Cash Flows from Investing Activities [Abstract] | ||||||||||||||||||||||||
Net cash flows provided by (used in) investing activities | 480,537 | (840,559) | [1] | (608,590) | [1] | |||||||||||||||||||
Cash Flows from Financing Activities [Abstract] | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | $ 172,600 | 0 | 0 | [1] | 172,595 | [1] | ||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 396,563 | [1] | 291,389 | [1] | |||||||||||||||||||
Debt issuance costs | (933) | (1,803) | [1] | (11,825) | [1] | |||||||||||||||||||
Shares repurchased | (81,432) | 0 | [1] | 0 | [1] | |||||||||||||||||||
Dividends paid | (41,388) | (41,392) | [1] | (30,531) | [1] | |||||||||||||||||||
Dividend equivalents | (1,054) | (1,426) | [1] | (940) | [1] | |||||||||||||||||||
Net cash flows (used in) provided by financing activities | (756,598) | 546,482 | [1] | 668,464 | [1] | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (61,562) | (66,912) | [1] | 241,348 | [1] | |||||||||||||||||||
Cash and cash equivalents at beginning of year | [1] | 337,560 | 404,472 | 337,560 | 404,472 | 163,124 | ||||||||||||||||||
Cash and cash equivalents at end of year | 275,998 | 337,560 | [1] | 275,998 | 337,560 | [1] | 404,472 | [1] | ||||||||||||||||
Cash paid during the year for [Abstract] | ||||||||||||||||||||||||
Interest | 132,780 | 119,745 | [1] | 97,481 | [1] | |||||||||||||||||||
Taxes | 384 | 188 | [1] | 84 | [1] | |||||||||||||||||||
As Previously Reported [Member] | ||||||||||||||||||||||||
Cash Flows from Operating Activities [Abstract] | ||||||||||||||||||||||||
Net income | 56,077 | 52,476 | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | ||||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (2,456) | (1,871) | ||||||||||||||||||||||
Share-based compensation | 30 | 3,177 | ||||||||||||||||||||||
Distributions from unconsolidated subsidiary | 5,501 | 0 | ||||||||||||||||||||||
Changes in operating assets and liabilities [Abstract] | ||||||||||||||||||||||||
Other assets | (1,589) | (1,969) | ||||||||||||||||||||||
Payable to related parties | (12,848) | (10,544) | ||||||||||||||||||||||
Net cash flows provided by operating activities | 227,165 | 181,474 | ||||||||||||||||||||||
Cash Flows from Investing Activities [Abstract] | ||||||||||||||||||||||||
Net cash flows provided by (used in) investing activities | (840,559) | (608,590) | ||||||||||||||||||||||
Cash Flows from Financing Activities [Abstract] | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | 0 | 172,595 | ||||||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 396,563 | 291,389 | ||||||||||||||||||||||
Debt issuance costs | (1,803) | (11,825) | ||||||||||||||||||||||
Shares repurchased | 0 | 0 | ||||||||||||||||||||||
Dividends paid | (41,392) | (30,531) | ||||||||||||||||||||||
Dividend equivalents | (1,426) | (940) | ||||||||||||||||||||||
Net cash flows (used in) provided by financing activities | 546,482 | 668,464 | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (66,912) | 241,348 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 337,560 | 404,472 | 337,560 | 404,472 | 163,124 | |||||||||||||||||||
Cash and cash equivalents at end of year | 337,560 | 337,560 | 404,472 | |||||||||||||||||||||
Cash paid during the year for [Abstract] | ||||||||||||||||||||||||
Interest | 119,745 | 97,481 | [1] | |||||||||||||||||||||
Taxes | 188 | 84 | [1] | |||||||||||||||||||||
Adjustments [Member] | ||||||||||||||||||||||||
Cash Flows from Operating Activities [Abstract] | ||||||||||||||||||||||||
Net income | 4,107 | 1,464 | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | ||||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (1,106) | 380 | ||||||||||||||||||||||
Share-based compensation | 0 | 0 | ||||||||||||||||||||||
Distributions from unconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||||
Changes in operating assets and liabilities [Abstract] | ||||||||||||||||||||||||
Other assets | 0 | 0 | ||||||||||||||||||||||
Payable to related parties | 0 | 2,931 | ||||||||||||||||||||||
Net cash flows provided by operating activities | 0 | 0 | ||||||||||||||||||||||
Cash Flows from Investing Activities [Abstract] | ||||||||||||||||||||||||
Net cash flows provided by (used in) investing activities | 0 | 0 | ||||||||||||||||||||||
Cash Flows from Financing Activities [Abstract] | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | 0 | 0 | ||||||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 0 | ||||||||||||||||||||||
Debt issuance costs | 0 | 0 | ||||||||||||||||||||||
Shares repurchased | 0 | 0 | ||||||||||||||||||||||
Dividends paid | 0 | 0 | ||||||||||||||||||||||
Dividend equivalents | 0 | 0 | ||||||||||||||||||||||
Net cash flows (used in) provided by financing activities | 0 | 0 | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Cash and cash equivalents at end of year | 0 | 0 | 0 | |||||||||||||||||||||
Cash paid during the year for [Abstract] | ||||||||||||||||||||||||
Interest | 0 | 0 | ||||||||||||||||||||||
Taxes | 0 | 0 | ||||||||||||||||||||||
Fly Leasing Limited [Member] | ||||||||||||||||||||||||
Cash Flows from Operating Activities [Abstract] | ||||||||||||||||||||||||
Net income | 22,798 | 60,184 | [1] | 53,940 | [1] | |||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | (17,065) | (59,447) | [1] | (52,980) | [1] | |||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (1,159) | (3,562) | [1] | (1,491) | [1] | |||||||||||||||||||
Deferred income taxes | (2,276) | (2,004) | [1] | (1,654) | [1] | |||||||||||||||||||
Share-based compensation | 195 | 30 | [1] | 3,177 | [1] | |||||||||||||||||||
Amortization of debt discount and others | 1,982 | 1,537 | [1] | 76 | [1] | |||||||||||||||||||
Distributions from unconsolidated subsidiary | 0 | 5,501 | [1] | 0 | [1] | |||||||||||||||||||
Changes in operating assets and liabilities [Abstract] | ||||||||||||||||||||||||
Receivable from subsidiaries | 132,843 | 117,806 | [1] | 12,797 | [1] | |||||||||||||||||||
Other assets | 1,060 | (1,672) | [1] | 45 | [1] | |||||||||||||||||||
Payable to related parties | (867) | (48) | [1] | (1,435) | [1] | |||||||||||||||||||
Accrued and other liabilities | 483 | 7,211 | [1] | 670 | [1] | |||||||||||||||||||
Net cash flows provided by operating activities | 137,994 | 125,536 | [1] | 13,145 | [1] | |||||||||||||||||||
Cash Flows from Investing Activities [Abstract] | ||||||||||||||||||||||||
Capital contributions to subsidiaries | 0 | (5,058) | [1] | (256,515) | [1] | |||||||||||||||||||
Distributions received from subsidiaries | 53,500 | 1,925 | [1] | 6,000 | [1] | |||||||||||||||||||
Capital contributions to unconsolidated subsidiary | (2,009) | 0 | [1] | 0 | [1] | |||||||||||||||||||
Distributions received from unconsolidated subsidiary | 0 | 1,132 | [1] | 0 | [1] | |||||||||||||||||||
Notes receivable from subsidiaries | (650,083) | (628,994) | [1] | 0 | [1] | |||||||||||||||||||
Notes payable to subsidiaries | 505,273 | 94,101 | [1] | 0 | [1] | |||||||||||||||||||
Net cash flows provided by (used in) investing activities | (93,319) | (536,894) | [1] | (250,515) | [1] | |||||||||||||||||||
Cash Flows from Financing Activities [Abstract] | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | 0 | 0 | [1] | 172,595 | [1] | |||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 396,563 | [1] | 291,389 | [1] | |||||||||||||||||||
Debt issuance costs | 0 | (1,116) | [1] | 0 | [1] | |||||||||||||||||||
Shares repurchased | (81,432) | 0 | [1] | 0 | [1] | |||||||||||||||||||
Dividends paid | (41,388) | (41,392) | [1] | (30,531) | [1] | |||||||||||||||||||
Dividend equivalents | (1,054) | (1,426) | [1] | (940) | [1] | |||||||||||||||||||
Net cash flows (used in) provided by financing activities | (123,874) | 352,629 | [1] | 432,513 | [1] | |||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (79,199) | (58,729) | [1] | 195,143 | [1] | |||||||||||||||||||
Cash and cash equivalents at beginning of year | [1] | 218,538 | 277,267 | 218,538 | 277,267 | 82,124 | ||||||||||||||||||
Cash and cash equivalents at end of year | $ 139,339 | 218,538 | [1] | 139,339 | 218,538 | [1] | 277,267 | [1] | ||||||||||||||||
Cash paid during the year for [Abstract] | ||||||||||||||||||||||||
Interest | 46,723 | 21,488 | [1] | 0 | [1] | |||||||||||||||||||
Taxes | 0 | 0 | [1] | 0 | [1] | |||||||||||||||||||
Fly Leasing Limited [Member] | As Previously Reported [Member] | ||||||||||||||||||||||||
Cash Flows from Operating Activities [Abstract] | ||||||||||||||||||||||||
Net income | 56,077 | 52,476 | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | (56,446) | (51,136) | ||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (2,456) | (1,871) | ||||||||||||||||||||||
Deferred income taxes | (2,004) | (1,654) | ||||||||||||||||||||||
Share-based compensation | 30 | 3,177 | ||||||||||||||||||||||
Amortization of debt discount and others | 1,537 | 76 | ||||||||||||||||||||||
Distributions from unconsolidated subsidiary | 5,501 | 0 | ||||||||||||||||||||||
Changes in operating assets and liabilities [Abstract] | ||||||||||||||||||||||||
Receivable from subsidiaries | 117,806 | 12,797 | ||||||||||||||||||||||
Other assets | (1,672) | 45 | ||||||||||||||||||||||
Payable to related parties | (48) | (1,435) | ||||||||||||||||||||||
Accrued and other liabilities | 7,211 | 670 | ||||||||||||||||||||||
Net cash flows provided by operating activities | 125,536 | 13,145 | ||||||||||||||||||||||
Cash Flows from Investing Activities [Abstract] | ||||||||||||||||||||||||
Capital contributions to subsidiaries | (5,058) | (256,515) | ||||||||||||||||||||||
Distributions received from subsidiaries | 1,925 | 6,000 | ||||||||||||||||||||||
Capital contributions to unconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||||
Distributions received from unconsolidated subsidiary | 1,132 | 0 | ||||||||||||||||||||||
Notes receivable from subsidiaries | (628,994) | 0 | ||||||||||||||||||||||
Notes payable to subsidiaries | 94,101 | 0 | ||||||||||||||||||||||
Net cash flows provided by (used in) investing activities | (536,894) | (250,515) | ||||||||||||||||||||||
Cash Flows from Financing Activities [Abstract] | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | 0 | 172,595 | ||||||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 396,563 | 291,389 | ||||||||||||||||||||||
Debt issuance costs | (1,116) | 0 | ||||||||||||||||||||||
Shares repurchased | 0 | 0 | ||||||||||||||||||||||
Dividends paid | (41,392) | (30,531) | ||||||||||||||||||||||
Dividend equivalents | (1,426) | (940) | ||||||||||||||||||||||
Net cash flows (used in) provided by financing activities | 352,629 | 432,513 | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (58,729) | 195,143 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of year | 218,538 | 277,267 | 218,538 | 277,267 | 82,124 | |||||||||||||||||||
Cash and cash equivalents at end of year | 218,538 | 218,538 | 277,267 | |||||||||||||||||||||
Cash paid during the year for [Abstract] | ||||||||||||||||||||||||
Interest | 21,488 | 0 | ||||||||||||||||||||||
Taxes | 0 | 0 | ||||||||||||||||||||||
Fly Leasing Limited [Member] | Adjustments [Member] | ||||||||||||||||||||||||
Cash Flows from Operating Activities [Abstract] | ||||||||||||||||||||||||
Net income | 4,107 | 1,464 | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash flows provided by operating activities [Abstract] | ||||||||||||||||||||||||
Equity in earnings of subsidiaries | (3,001) | (1,844) | ||||||||||||||||||||||
Equity in earnings from unconsolidated subsidiary | (1,106) | 380 | ||||||||||||||||||||||
Deferred income taxes | 0 | 0 | ||||||||||||||||||||||
Share-based compensation | 0 | 0 | ||||||||||||||||||||||
Amortization of debt discount and others | 0 | 0 | ||||||||||||||||||||||
Distributions from unconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||||
Changes in operating assets and liabilities [Abstract] | ||||||||||||||||||||||||
Receivable from subsidiaries | 0 | 0 | ||||||||||||||||||||||
Other assets | 0 | 0 | ||||||||||||||||||||||
Payable to related parties | 0 | 0 | ||||||||||||||||||||||
Accrued and other liabilities | 0 | 0 | ||||||||||||||||||||||
Net cash flows provided by operating activities | 0 | 0 | ||||||||||||||||||||||
Cash Flows from Investing Activities [Abstract] | ||||||||||||||||||||||||
Capital contributions to subsidiaries | 0 | 0 | ||||||||||||||||||||||
Distributions received from subsidiaries | 0 | 0 | ||||||||||||||||||||||
Capital contributions to unconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||||
Distributions received from unconsolidated subsidiary | 0 | 0 | ||||||||||||||||||||||
Notes receivable from subsidiaries | 0 | 0 | ||||||||||||||||||||||
Notes payable to subsidiaries | 0 | 0 | ||||||||||||||||||||||
Net cash flows provided by (used in) investing activities | 0 | 0 | ||||||||||||||||||||||
Cash Flows from Financing Activities [Abstract] | ||||||||||||||||||||||||
Proceeds from issuance of shares, net of fees paid | 0 | 0 | ||||||||||||||||||||||
Proceeds from issuance of unsecured borrowings | 0 | 0 | ||||||||||||||||||||||
Debt issuance costs | 0 | 0 | ||||||||||||||||||||||
Shares repurchased | 0 | 0 | ||||||||||||||||||||||
Dividends paid | 0 | 0 | ||||||||||||||||||||||
Dividend equivalents | 0 | 0 | ||||||||||||||||||||||
Net cash flows (used in) provided by financing activities | 0 | 0 | ||||||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | ||||||||||||||||||||||
Cash and cash equivalents at beginning of year | $ 0 | $ 0 | $ 0 | 0 | 0 | |||||||||||||||||||
Cash and cash equivalents at end of year | $ 0 | 0 | 0 | |||||||||||||||||||||
Cash paid during the year for [Abstract] | ||||||||||||||||||||||||
Interest | 0 | 0 | ||||||||||||||||||||||
Taxes | $ 0 | $ 0 | ||||||||||||||||||||||
|
"(&LIM1&MHVA13^F ^P1_Y
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M#6>D9C=60?_"CG\#4$L#!!0 ( !.,HD@M$?ED3P< -0? / >&PO
M=V]R:V)O;VLN>&ULE9E= ALVCE #+1F9>9?3,\PE^(2U9-I_43UJ
M(_F)$B%.OD)+A6^GL+))9MHZ(9T)Z4*XBWWP8.1C/A)#JE+)":FPM0-Q)YAL
M4[L1-;+9=.26?/4.497'*BNR$A^=T 5F'S"IQR0+ EOUQ2+]W6*?GM'3NW5^
M=B5BYOE9X.>_!,BO".1>()]KS%=KO,04ZR;%%9/B0N!VU>02L_EA@L].CH/J
M_ 75J):C,.&(EMGE#=RG_N2_X54YD Y>B>JHT.@@C;T__@:T4AJP(>(;FZ*W
MKW09,&B-ZVYL7X6+&P9J=GN/P+JO]02P,$% @ %(RB2(\JGH7; 0
M1@4 !D !X;"]W;W)K :LJ?=A4W/:U/>XJ3EOZGW@U)PX]3UR:LZ@[=['XPJ#EU(&:!)Q0S19&)&:'(Q8S2%F F:4DR%IA8S0].(F:-)
ME!0N"BL7,0,TJ9@AFDS,"$TN9HRF$#-!4XJIT-1B9F@:,7,TB9)21F$M(V:
M)A4S1).)&:')Q8S1%&(F:$HQ%9I:S Q-(V:.)E%2W"BL;L0,T*1BAF@R,2,T
MN9@QFD+,!$TIID)3BYFA:<3,T21*RAV%]8Z8 9I4S!!-)F:$)AW/Q??E\7B[?O3Z_KJC]5FLWK9
M_7_JWU:KS?+MT[7ST;^^^K%#W]\+S\MME^&\KW;_L_B+'_8;/Z>?S['J<_
M,G+W?U!+ P04 " 3C*)(=2EXCT4# !;#0 & 'AL+W=O Z4;#X)+ZK2XD1L+NT@8@<76QX*49/@S=%X
ME;*/B*H\5GS]M63'*/0)L\\8GC"+&<&"^AR"_S_$GE_0^?UU_O*&Q67B+S-_
M4UP76-T06"6!U
P#HJZ.=5'F%3L&H0^8
M?<+PB+D@F%=?0_#_A]CS*SJ_O\TO/K%81'Z1^$5Y6V#SB< F"FQ2CCF_F>,'
M3,G_"<*NBJK!]/'M6-+@/+I4O?5T?9X//#;E J^K2?3P4YA>CI8
X-O E92J'"?PM[@VX 5'RK