Property and Equipment

12 Months Ended

Dec. 31, 2013

Property, Plant and Equipment [Abstract]

Property and Equipment

PROPERTY AND EQUIPMENT

The Company's property and equipment consists primarily of cargo aircraft, aircraft engines and flight equipment. Property and equipment, to be held and used, is summarized as follows (in thousands):

	December 31, 2013			December 31, 2012
Aircraft and flight equipment	$	1,236,225		$	1,148,781
Support equipment	51,179			52,209
Vehicles and other equipment	1,771			1,597
Leasehold improvements	1,154			814
	1,290,329			1,203,401
Accumulated depreciation	(452,157		)	(384,477		)
Property and equipment, net	$	838,172		$	818,924

CAM owned aircraft with a carrying value of $250.9 million and $273.4 million that were under leases to external customers as of December 31, 2013 and 2012, respectively. Minimum future lease payments for aircraft and equipment leased to external customers as of December 31, 2013 is scheduled to be $54.8 million, $54.8 million, $48.2 million, $23.1 million and $4.2 million for each of the next five years ending December 31, 2018.

Stagnant economic growth and higher fuel prices precipitated BAX/Schenker's decision to phase-out its North American air network in 2011 and diminished the demand for the Company's Boeing 727 and DC-8 freighter aircraft. These aircraft are less fuel efficient and generally require higher maintenance costs to maintain acceptable levels of reliability compared to more modern aircraft. As a result of these conditions and BAX/Schenker's decision in July 2011 to phase-out its North American air network, the Company decided to retire the Boeing 727 and DC-8 freighter fleets. During the third quarter of 2011, the Company recorded a pre-tax impairment charge totaling $22.1 million to reduce the carrying values of its Boeing 727 and DC-8 freighters, engines and related parts to their estimated fair value. The Company determined the fair values of these aircraft with the assistance of an independent appraiser using comparable market sales (level 2 fair value inputs).

The carrying value of Boeing 727 and DC-8 freighter aircraft and engines available for sale totaled $3.0 million and $3.4 million as of December 31, 2013 and 2012, respectively. Cash flows generated from sales of aircraft and engines totaled $1.5 million, $5.8 million and $11.1 million for the years ended December 31, 2013, 2012 and 2011, respectively. During the fourth quarter of 2011, the Company received $10.7 million from BAX/Schenker for the reimbursement of capitalized maintenance costs for aircraft removed from service.