Delaware | 26-1631624 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Large accelerated filer o | Accelerated filer x | |
Non-accelerated filer o (Do not check if a smaller reporting company) | Smaller reporting company o |
Page | |||
PART I | |||
Item 1. | |||
Item 1A. | |||
Item 1B. | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
PART II | |||
Item 5. | |||
Item 6. | |||
Item 7. | |||
Item 7A. | |||
Item 8. | |||
Item 9. | |||
Item 9A. | |||
Item 9B. | |||
PART III | |||
Item 10. | |||
Item 11. | |||
Item 12. | |||
Item 13. | |||
Item 14. | |||
PART IV | |||
Item 15. | |||
• | ABX provides flight crew training, flight simulator rental and aircraft line maintenance services. |
• | Airborne Maintenance and Engineering Services, Inc. (“AMES”) is an aircraft maintenance, repair and overhaul business. AMES provides airframe maintenance, component repairs, engineering services and aircraft line maintenance. |
• | Pemco World Air Services, Inc. ("Pemco") provides aircraft maintenance, modifications, and engineering services. |
• | AMES Material Services, Inc. ("AMS") resells and brokers aircraft parts. |
• | LGSTX Services, Inc. (“LGSTX”) provides material handling and ground equipment maintenance and ground equipment rentals for aircraft support; LGSTX also sells aviation fuel. |
• | LGSTX Distribution Services, Inc. ("LDS") operates mail and parcel sorting centers. |
CAM | ACMI Services | Support services | |||||
External revenues (in thousands) | $117,642 | $492,859 | $158,369 | ||||
Subsidiaries and businesses | CAM | ABX, ATI | ABX, AMES, AMS, GFS, LDS, LGSTX | ||||
Airline | Labor Agreement Unit | Contract Amendable Date | Percentage of the Company’s Employees | |||
ABX | International Brotherhood of Teamsters | 12/31/2014 | 8.8% | |||
ATI | Air Line Pilots Association | 5/28/2014 | 5.1% |
• | The labor relations of our airline subsidiaries are generally regulated under the Railway Labor Act, which vests in the National Mediation Board certain regulatory powers with respect to disputes between airlines and labor unions arising under collective bargaining agreements; |
• | The Federal Communications Commission regulates our airline subsidiaries’ use of radio facilities pursuant to the Federal Communications Act of 1934, as amended; |
• | U.S. Customs and Border Protection inspects cargo imported from our subsidiaries’ international operations; |
• | Our airlines must comply with U.S. Citizenship and Immigration Services regulations regarding the citizenship of our employees; |
• | The Company and its subsidiaries must comply with wage, work conditions and other regulations of the Department of Labor regarding our employees. |
• | The Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury administers and enforces economic and trade sanctions based on U.S. foreign policy, which may limit our business activities in and for certain areas. |
In-service Aircraft as of December 31, 2016 | ||||||||||
Aircraft Type | Total | Owned | Year of Manufacture | Gross Payload (Lbs.) | Still Air Range (Nautical Miles) | |||||
767-200 SF (1) | 36 | 36 | 1982 - 1987 | 85,000 - 100,000 | 1,700 - 5,300 | |||||
767-300 SF (1) | 16 | 16 | 1988 - 1997 | 121,000 - 129,000 | 3,200 - 7,100 | |||||
757-200 PCF (1) | 4 | 4 | 1984 - 1991 | 68,000 | 2,100 - 4,800 | |||||
757-200 Combi (2) | 4 | 4 | 1989 - 1992 | 58,000 | 2,600 - 4,300 | |||||
Total in-service | 60 | 60 |
(1) | These aircraft are configured for standard cargo containers loaded through large standard main deck cargo doors. |
(2) | These aircraft are configured as “combi” aircraft capable of carrying passenger and cargo containers on the main flight deck. |
2016 Quarter Ended: | Low | High | |||||
December 31, 2016 | $ | 12.94 | $ | 17.29 | |||
September 30, 2016 | $ | 12.73 | $ | 14.91 | |||
June 30, 2016 | $ | 12.36 | $ | 15.43 | |||
March 31, 2016 | $ | 9.05 | $ | 15.53 | |||
2015 Quarter Ended: | Low | High | |||||
December 31, 2015 | $ | 8.42 | $ | 10.39 | |||
September 30, 2015 | $ | 7.60 | $ | 10.96 | |||
June 30, 2015 | $ | 9.04 | $ | 10.96 | |||
March 31, 2015 | $ | 7.80 | $ | 9.72 |
Period | Total Number of Shares Purchased | Average Price paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Maximum Dollar Value of Shares That May Yet Be Purchased Under the Program | ||||||||||
October 1, 2016 through October 31, 2016 | 30,000 | $ | 14.15 | 30,000 | $ | 27,076,017 | ||||||||
November 1, 2016 through November 30, 2016 | 30,000 | $ | 16.33 | 30,000 | $ | 26,586,207 | ||||||||
December 1, 2016 through December 31, 2016 | 30,000 | $ | 16.71 | 30,000 | $ | 26,084,868 | ||||||||
Total for the quarter | 90,000 | $ | 15.73 | 90,000 | $ | 26,084,868 |
12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | ||||||||||||
Air Transport Services Group, Inc. | 100.00 | 84.96 | 171.40 | 181.36 | 213.56 | 338.14 | |||||||||||
NASDAQ Composite Index | 100.00 | 116.41 | 165.47 | 188.69 | 200.32 | 216.54 | |||||||||||
NASDAQ Transportation Index | 100.00 | 106.01 | 143.98 | 202.99 | 173.16 | 207.87 |
As of and for the Years Ended December 31 | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
(In thousands, except per share data) | |||||||||||||||||||
OPERATING RESULTS: | |||||||||||||||||||
Continuing revenues | $ | 768,870 | $ | 619,264 | $ | 589,592 | $ | 580,023 | $ | 607,438 | |||||||||
Operating expenses (1) (3) | 705,122 | 546,474 | 525,067 | 566,838 | 528,750 | ||||||||||||||
Net interest expense and other non operating charges | 11,187 | 11,147 | 13,845 | 14,175 | 14,247 | ||||||||||||||
Financial instrument (gain) loss (2) | 18,107 | (920 | ) | (1,096 | ) | (631 | ) | (1,879 | ) | ||||||||||
Earnings (loss) from continuing operations before income taxes | 34,454 | 62,563 | 51,776 | (359 | ) | 66,320 | |||||||||||||
Income tax expense | (13,394 | ) | (23,408 | ) | (19,702 | ) | (19,266 | ) | (24,672 | ) | |||||||||
Earnings (loss) from continuing operations | 21,060 | 39,155 | 32,074 | (19,625 | ) | 41,648 | |||||||||||||
Earnings (loss) from discontinued operations, net of taxes (3) | 2,428 | 2,067 | (2,214 | ) | (3 | ) | (774 | ) | |||||||||||
Net earnings (loss) (1) (2) | $ | 23,488 | $ | 41,222 | $ | 29,860 | $ | (19,628 | ) | $ | 40,874 | ||||||||
EARNINGS (LOSS) PER SHARE FROM CONTINUING OPERATIONS: | |||||||||||||||||||
Basic | $ | 0.34 | $ | 0.61 | $ | 0.50 | $ | (0.31 | ) | $ | 0.66 | ||||||||
Diluted | $ | 0.33 | $ | 0.60 | $ | 0.49 | $ | (0.31 | ) | $ | 0.65 | ||||||||
WEIGHTED AVERAGE SHARES: | |||||||||||||||||||
Basic | 61,330 | 64,242 | 64,253 | 63,992 | 63,461 | ||||||||||||||
Diluted | 62,994 | 65,127 | 65,211 | 63,992 | 64,420 | ||||||||||||||
SELECTED CONSOLIDATED | |||||||||||||||||||
FINANCIAL DATA: | |||||||||||||||||||
Cash and cash equivalents | $ | 16,358 | $ | 17,697 | $ | 30,560 | $ | 31,699 | $ | 15,442 | |||||||||
Property and equipment, net | 1,000,992 | 875,401 | 847,268 | 838,172 | 818,924 | ||||||||||||||
Goodwill and intangible assets (1) | 45,586 | 38,729 | 39,010 | 39,291 | 92,126 | ||||||||||||||
Total assets | 1,259,330 | 1,041,721 | 1,011,203 | 1,018,613 | 1,015,808 | ||||||||||||||
Post-retirement liabilities (3) | 79,528 | 110,166 | 94,368 | 32,865 | 187,533 | ||||||||||||||
Long term debt and current maturities, other than leases | 458,721 | 318,200 | 344,094 | 384,515 | 364,481 | ||||||||||||||
Deferred income tax liability | 122,532 | 96,858 | 83,223 | 95,912 | 27,268 | ||||||||||||||
Stockholders’ equity | 331,902 | 364,157 | 347,489 | 368,968 | 299,256 |
(1) | In 2013, the Company recorded an impairment charge of $52.6 million on goodwill. |
(2) | During 2016, the re-measurement of financial instrument fair values, primarily for warrants granted to a customer resulted in a loss of $18.1 million before income taxes. (See note B to the accompanying consolidated financial statements.) |
(3) | During 2014, ABX offered vested, former employee participants of the qualified pension plan and vested employee participants of the crewmembers qualified pension plan a one-time option to settle their pension benefit with the Company through a single payment or a nonparticipating annuity contract. As a result, ABX settled $98.7 million of pension obligation in December of 2014 from the pension plans assets. The settlement resulted in pre-tax charges of $6.7 million to continued operations and $5.0 million to discontinued operations for 2014. As a result of fluctuating interest rates and investment returns, the funded status of the Company's defined benefit pension and retiree medical plans vary from year to year. (See notes H and K to the accompanying consolidated financial statements.) Effective December 31, 2016, ABX modified its unfunded, non-pilot retiree medical plan to terminate benefits to all participants. As a result, ABX settled $0.6 million of retiree medical obligations and recorded a pre-tax gain of $2.0 million to continued operations. |
2016 | 2015 | 2014 | ||||||||||||||||||
ACMI Services | CAM | Total | ACMI Services | CAM | Total | ACMI Services | CAM | Total | ||||||||||||
In-service aircraft | ||||||||||||||||||||
Aircraft owned | ||||||||||||||||||||
Boeing 767-200 | 6 | 29 | 35 | 13 | 23 | 36 | 14 | 22 | 36 | |||||||||||
Boeing 767-300 | 4 | 12 | 16 | 4 | 7 | 11 | 6 | 2 | 8 | |||||||||||
Boeing 757-200 | 4 | — | 4 | 4 | — | 4 | 4 | — | 4 | |||||||||||
Boeing 757-200 Combi | 4 | — | 4 | 4 | — | 4 | 4 | — | 4 | |||||||||||
Total | 18 | 41 | 59 | 25 | 30 | 55 | 28 | 24 | 52 | |||||||||||
Operating lease | ||||||||||||||||||||
Boeing 767-200 | — | — | — | — | — | — | 2 | — | 2 | |||||||||||
Boeing 767-300 | — | — | — | — | — | — | 1 | — | 1 | |||||||||||
Boeing 757-200 | — | — | — | 1 | — | 1 | — | — | — | |||||||||||
Total | — | — | — | 1 | — | 1 | 3 | — | 3 | |||||||||||
Other aircraft | ||||||||||||||||||||
Owned Boeing 767-300 under modification | — | 7 | 7 | — | 2 | 2 | — | — | — | |||||||||||
Owned Boeing 767 available or staging for lease | — | 1 | 1 | — | — | — | — | 1 | 1 |
Years Ending December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenues from Continuing Operations: | |||||||||||
CAM | |||||||||||
Aircraft leasing and related services | $ | 199,598 | $ | 177,789 | $ | 166,303 | |||||
Lease amortization against revenue | (4,506 | ) | — | — | |||||||
Total CAM | 195,092 | 177,789 | 166,303 | ||||||||
ACMI Services | |||||||||||
Airline services | 410,598 | 395,486 | 399,376 | ||||||||
Reimbursable | 82,261 | 37,623 | 40,543 | ||||||||
Total ACMI Services | 492,859 | 433,109 | 439,919 | ||||||||
Other Activities | 262,539 | 161,995 | 142,294 | ||||||||
Total Revenues | 950,490 | 772,893 | 748,516 | ||||||||
Eliminate internal revenues | (181,620 | ) | (153,629 | ) | (158,924 | ) | |||||
Customer Revenues | $ | 768,870 | $ | 619,264 | $ | 589,592 | |||||
Pre-Tax Earnings from Continuing Operations: | |||||||||||
CAM, inclusive of interest expense | $ | 68,608 | $ | 57,457 | $ | 53,159 | |||||
ACMI Services | |||||||||||
Airline services | (33,719 | ) | (2,654 | ) | (5,381 | ) | |||||
Retiree benefit curtailments and settlements | 1,594 | — | (6,700 | ) | |||||||
Total ACMI Services | (32,125 | ) | (2,654 | ) | (12,081 | ) | |||||
Other Activities | 16,623 | 8,561 | 11,363 | ||||||||
Net unallocated interest expense | (545 | ) | (1,721 | ) | (1,761 | ) | |||||
Net financial instrument re-measurement (loss) gain | (18,107 | ) | 920 | 1,096 | |||||||
Pre-Tax Earnings from Continuing Operations | 34,454 | 62,563 | 51,776 | ||||||||
Add other non-service components of retiree benefit costs, net | 8,812 | (1,040 | ) | (8,152 | ) | ||||||
Add retiree benefit curtailments and settlements | (1,997 | ) | — | 6,700 | |||||||
Add debt issuance costs from non-consolidating affiliate | 1,229 | — | — | ||||||||
Add lease incentive amortization | 4,506 | — | — | ||||||||
Add net loss (gain) on financial instruments | 18,107 | (920 | ) | (1,096 | ) | ||||||
Adjusted Pre-Tax Earnings from Continuing Operations | $ | 65,111 | $ | 60,603 | $ | 49,228 |
Payments Due By Period | |||||||||||||||||||
Contractual Obligations | Total | Less Than 1 Year | 2-3 Years | 4-5 Years | After 5 Years | ||||||||||||||
Long term debt, including interest payments | $ | 509,402 | $ | 42,014 | $ | 56,166 | $ | 411,222 | $ | — | |||||||||
Facility leases | 36,602 | 8,321 | 10,887 | 3,629 | 13,765 | ||||||||||||||
Aircraft and modification obligations | 237,722 | 197,325 | 40,397 | — | — | ||||||||||||||
Other leases | 525 | 233 | 242 | 50 | — | ||||||||||||||
Total contractual cash obligations | $ | 784,251 | $ | 247,893 | $ | 107,692 | $ | 414,901 | $ | 13,765 |
Effect of change | |||||||||||
December 31, 2016 | |||||||||||
Change in assumption | 2016 Pension expense | Pension obligation | Accumulated other comprehensive income (pre-tax) | ||||||||
100 basis point decrease in rate of return | $ | 6,995 | $ | — | $ | — | |||||
50 basis point decrease in discount rate | 6,464 | (49,724 | ) | 49,724 | |||||||
Aggregate effect of all the above changes | 13,459 | (49,724 | ) | 49,724 |
Page | |
December 31, | December 31, | ||||||
2016 | 2015 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 16,358 | $ | 17,697 | |||
Accounts receivable, net of allowance of $1,264 in 2016 and $415 in 2015 | 77,247 | 57,986 | |||||
Inventory | 19,925 | 12,963 | |||||
Prepaid supplies and other | 19,123 | 12,660 | |||||
TOTAL CURRENT ASSETS | 132,653 | 101,306 | |||||
Property and equipment, net | 1,000,992 | 875,401 | |||||
Other assets | 80,099 | 26,285 | |||||
Goodwill and acquired intangibles | 45,586 | 38,729 | |||||
TOTAL ASSETS | $ | 1,259,330 | $ | 1,041,721 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Accounts payable | $ | 60,704 | $ | 44,417 | |||
Accrued salaries, wages and benefits | 37,044 | 27,454 | |||||
Accrued expenses | 10,324 | 8,107 | |||||
Current portion of debt obligations | 29,306 | 33,740 | |||||
Unearned revenue | 18,407 | 12,963 | |||||
TOTAL CURRENT LIABILITIES | 155,785 | 126,681 | |||||
Long term debt | 429,415 | 283,918 | |||||
Post-retirement obligations | 77,713 | 108,194 | |||||
Other liabilities | 52,542 | 61,913 | |||||
Stock Warrants | 89,441 | — | |||||
Deferred income taxes | 122,532 | 96,858 | |||||
TOTAL LIABILITIES | 927,428 | 677,564 | |||||
Commitments and contingencies (Note G) | |||||||
STOCKHOLDERS’ EQUITY: | |||||||
Preferred stock, 20,000,000 shares authorized, including 75,000 Series A Junior Participating Preferred Stock | — | — | |||||
Common stock, par value $0.01 per share; 85,000,000 shares authorized; 59,461,291 and 64,077,140 shares issued and outstanding in 2016 and 2015, respectively | 595 | 641 | |||||
Additional paid-in capital | 443,416 | 518,259 | |||||
Accumulated deficit | (32,243 | ) | (55,731 | ) | |||
Accumulated other comprehensive loss | (79,866 | ) | (99,012 | ) | |||
TOTAL STOCKHOLDERS’ EQUITY | 331,902 | 364,157 | |||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,259,330 | $ | 1,041,721 | |||
Year Ended December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
REVENUES | $ | 768,870 | $ | 619,264 | $ | 589,592 | |||||
OPERATING EXPENSES | |||||||||||
Salaries, wages and benefits | 231,667 | 181,785 | 173,226 | ||||||||
Depreciation and amortization | 135,496 | 125,443 | 108,254 | ||||||||
Maintenance, materials and repairs | 105,735 | 96,044 | 91,528 | ||||||||
Fuel | 87,134 | 52,615 | 53,521 | ||||||||
Travel | 20,048 | 18,007 | 17,662 | ||||||||
Contracted ground and aviation services | 57,491 | 18,983 | 13,245 | ||||||||
Rent | 11,625 | 11,677 | 26,650 | ||||||||
Landing and ramp | 13,455 | 9,727 | 10,305 | ||||||||
Insurance | 4,456 | 3,645 | 5,304 | ||||||||
Other operating expenses | 38,015 | 28,548 | 25,372 | ||||||||
705,122 | 546,474 | 525,067 | |||||||||
OPERATING INCOME | 63,748 | 72,790 | 64,525 | ||||||||
OTHER INCOME (EXPENSE) | |||||||||||
Interest income | 131 | 85 | 92 | ||||||||
Net gain (loss) on financial instruments | (18,107 | ) | 920 | 1,096 | |||||||
Interest expense | (11,318 | ) | (11,232 | ) | (13,937 | ) | |||||
(29,294 | ) | (10,227 | ) | (12,749 | ) | ||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 34,454 | 62,563 | 51,776 | ||||||||
INCOME TAX EXPENSE | (13,394 | ) | (23,408 | ) | (19,702 | ) | |||||
EARNINGS FROM CONTINUING OPERATIONS | 21,060 | 39,155 | 32,074 | ||||||||
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES | 2,428 | 2,067 | (2,214 | ) | |||||||
NET EARNINGS | $ | 23,488 | $ | 41,222 | $ | 29,860 | |||||
BASIC EARNINGS (LOSS) PER SHARE | |||||||||||
Continuing operations | $ | 0.34 | $ | 0.61 | $ | 0.50 | |||||
Discontinued operations | 0.04 | 0.03 | (0.04 | ) | |||||||
TOTAL BASIC EARNINGS PER SHARE | $ | 0.38 | $ | 0.64 | $ | 0.46 | |||||
DILUTED EARNINGS (LOSS) PER SHARE | |||||||||||
Continuing operations | $ | 0.33 | $ | 0.60 | $ | 0.49 | |||||
Discontinued operations | 0.04 | 0.03 | (0.03 | ) | |||||||
TOTAL DILUTED EARNINGS PER SHARE | $ | 0.37 | $ | 0.63 | $ | 0.46 | |||||
WEIGHTED AVERAGE SHARES | |||||||||||
Basic | 61,330 | 64,242 | 64,253 | ||||||||
Diluted | 62,994 | 65,127 | 65,211 |
Years Ended December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
NET EARNINGS | $ | 23,488 | $ | 41,222 | $ | 29,860 | |||||
OTHER COMPREHENSIVE INCOME (LOSS): | |||||||||||
Defined Benefit Pension | 20,214 | (16,111 | ) | (50,119 | ) | ||||||
Defined Benefit Post-Retirement | (986 | ) | 315 | (1,875 | ) | ||||||
Gains and Losses on Derivatives | — | (4 | ) | (5 | ) | ||||||
Foreign Currency Translation | (82 | ) | (336 | ) | (1,059 | ) | |||||
TOTAL COMPREHENSIVE INCOME (LOSS), net of tax | $ | 42,634 | $ | 25,086 | $ | (23,198 | ) |
Years Ended December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
OPERATING ACTIVITIES: | |||||||||||
Net earnings from continuing operations | $ | 21,060 | $ | 39,155 | $ | 32,074 | |||||
Net earnings (loss) from discontinued operations | 2,428 | 2,067 | (2,214 | ) | |||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 140,002 | 125,443 | 108,254 | ||||||||
Pension and post-retirement | 11,532 | 6,920 | 8,492 | ||||||||
Deferred income taxes | 13,807 | 23,691 | 17,757 | ||||||||
Amortization of stock-based compensation | 3,165 | 2,454 | 2,924 | ||||||||
Amortization of DHL promissory note | — | (1,550 | ) | (6,200 | ) | ||||||
Net (gain) loss on financial instruments | 18,107 | (920 | ) | (1,096 | ) | ||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | (9,597 | ) | (14,410 | ) | 9,582 | ||||||
Inventory and prepaid supplies | (5,269 | ) | (3,896 | ) | (4,164 | ) | |||||
Accounts payable | 5,603 | 4,424 | (803 | ) | |||||||
Unearned revenue | (3,216 | ) | (1,116 | ) | 1,148 | ||||||
Accrued expenses, salaries, wages, benefits and other liabilities | 5,678 | 8,375 | 344 | ||||||||
Pension and post-retirement assets | (11,819 | ) | (16,098 | ) | (14,662 | ) | |||||
Other | 1,611 | 470 | (1,711 | ) | |||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 193,092 | 175,009 | 149,725 | ||||||||
INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | (264,477 | ) | (158,714 | ) | (112,184 | ) | |||||
Proceeds from property and equipment | 12,380 | 6,841 | 3,602 | ||||||||
Acquisitions and investments in businesses | (17,395 | ) | — | (15,000 | ) | ||||||
NET CASH (USED IN) INVESTING ACTIVITIES | (269,492 | ) | (151,873 | ) | (123,582 | ) | |||||
FINANCING ACTIVITIES: | |||||||||||
Principal payments on long term obligations | (44,069 | ) | (69,344 | ) | (79,221 | ) | |||||
Proceeds from borrowings | 185,000 | 45,000 | 45,000 | ||||||||
Purchase of common stock | (63,570 | ) | (10,345 | ) | — | ||||||
Withholding taxes paid for conversion of employee stock awards | (2,300 | ) | (1,310 | ) | (940 | ) | |||||
Funding for hangar construction | — | — | 7,879 | ||||||||
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 75,061 | (35,999 | ) | (27,282 | ) | ||||||
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (1,339 | ) | (12,863 | ) | (1,139 | ) | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 17,697 | 30,560 | 31,699 | ||||||||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ | 16,358 | $ | 17,697 | $ | 30,560 | |||||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||||
Interest paid, net of amount capitalized | $ | 10,738 | $ | 10,748 | $ | 13,576 | |||||
Federal alternative minimum and state income taxes paid | $ | 923 | $ | 870 | $ | 604 | |||||
SUPPLEMENTAL NON-CASH INFORMATION: | |||||||||||
Debt extinguished | $ | — | $ | 1,550 | $ | 6,200 | |||||
Accrued capital expenditures | $ | 9,118 | $ | 7,033 | $ | 7,648 |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||
Number | Amount | |||||||||||||||||||||
BALANCE AT JANUARY 1, 2014 | 64,618,305 | $ | 646 | $ | 524,953 | $ | (126,813 | ) | $ | (29,818 | ) | $ | 368,968 | |||||||||
Stock-based compensation plans | ||||||||||||||||||||||
Grant of restricted stock | 196,000 | 2 | (2 | ) | — | |||||||||||||||||
Issuance of common shares, net of withholdings | 49,545 | 1 | (939 | ) | (938 | ) | ||||||||||||||||
Forfeited restricted stock | (8,900 | ) | — | — | — | |||||||||||||||||
Tax benefit from common stock compensation | (267 | ) | (267 | ) | ||||||||||||||||||
Amortization of stock awards and restricted stock | 2,924 | 2,924 | ||||||||||||||||||||
Total comprehensive income (loss) | 29,860 | (53,058 | ) | (23,198 | ) | |||||||||||||||||
BALANCE AT DECEMBER 31, 2014 | 64,854,950 | $ | 649 | $ | 526,669 | $ | (96,953 | ) | $ | (82,876 | ) | $ | 347,489 | |||||||||
Stock-based compensation plans | ||||||||||||||||||||||
Grant of restricted stock | 170,800 | 2 | (2 | ) | — | |||||||||||||||||
Issuance of common shares, net of withholdings | 137,457 | 1 | (1,311 | ) | (1,310 | ) | ||||||||||||||||
Forfeited restricted stock | (6,900 | ) | — | — | — | |||||||||||||||||
Purchase of common stock | (1,079,167 | ) | (11 | ) | (10,334 | ) | (10,345 | ) | ||||||||||||||
Tax benefit from common stock compensation | 783 | 783 | ||||||||||||||||||||
Amortization of stock awards and restricted stock | 2,454 | 2,454 | ||||||||||||||||||||
Total comprehensive income (loss) | 41,222 | (16,136 | ) | 25,086 | ||||||||||||||||||
BALANCE AT DECEMBER 31, 2015 | 64,077,140 | $ | 641 | $ | 518,259 | $ | (55,731 | ) | $ | (99,012 | ) | $ | 364,157 | |||||||||
Stock-based compensation plans | ||||||||||||||||||||||
Grant of restricted stock | 171,500 | 2 | (2 | ) | — | |||||||||||||||||
Issuance of common shares, net of withholdings | 42,796 | — | (2,300 | ) | (2,300 | ) | ||||||||||||||||
Forfeited restricted stock | (4,600 | ) | — | — | — | |||||||||||||||||
Purchase of common stock | (4,825,545 | ) | (48 | ) | (63,522 | ) | (63,570 | ) | ||||||||||||||
Tax benefit from common stock compensation | 1,087 | 1,087 | ||||||||||||||||||||
Warrants granted to customer | (13,271 | ) | (13,271 | ) | ||||||||||||||||||
Amortization of stock awards and restricted stock | 3,165 | 3,165 | ||||||||||||||||||||
Total comprehensive income | 23,488 | 19,146 | 42,634 | |||||||||||||||||||
BALANCE AT DECEMBER 31, 2016 | 59,461,291 | $ | 595 | $ | 443,416 | $ | (32,243 | ) | $ | (79,866 | ) | $ | 331,902 |
Boeing 767 and 757 aircraft and flight equipment | 10 to 18 years |
Ground equipment | 3 to 10 years |
Leasehold improvements, facilities and office equipment | 3 to 25 years |
• | Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
• | Level 2: Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. |
• | Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include items where the determination of fair value requires significant management judgment or estimation. |
CAM | All Other | Total | ||||||||||
Carrying value as of December 31, 2014 | $ | 34,395 | $ | — | $ | 34,395 | ||||||
Carrying value as of December 31, 2015 | $ | 34,395 | $ | — | $ | 34,395 | ||||||
Acquisition of Pemco | — | 2,738 | 2,738 | |||||||||
Carrying value as of December 31, 2016 | $ | 34,395 | $ | 2,738 | $ | 37,133 |
Airline | Amortizing | |||||||||||
Certificates | Intangibles | Total | ||||||||||
Carrying value as of December 31, 2014 | $ | 3,000 | $ | 1,615 | $ | 4,615 | ||||||
Amortization | — | (281 | ) | (281 | ) | |||||||
Carrying value as of December 31, 2015 | $ | 3,000 | $ | 1,334 | $ | 4,334 | ||||||
Acquisition of Pemco | — | 4,400 | 4,400 | |||||||||
Amortization | — | (281 | ) | (281 | ) | |||||||
Carrying value as of December 31, 2016 | $ | 3,000 | $ | 5,453 | $ | 8,453 |
Lease | ||||
Incentive | ||||
Carrying value as of December 31, 2015 | $ | — | ||
Warrants granted | 59,236 | |||
Amortization | (4,506 | ) | ||
Carrying value as of December 31, 2016 | $ | 54,730 |
As of December 31, 2016 | Fair Value Measurement Using | Total | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | |||||||||||||||
Cash equivalents—money market | $ | — | $ | 482 | $ | — | $ | 482 | |||||||
Interest rate swap | — | 547 | — | 547 | |||||||||||
Total Assets | $ | — | $ | 1,029 | $ | — | $ | 1,029 | |||||||
Liabilities | |||||||||||||||
Interest rate swap | $ | — | $ | (77 | ) | $ | — | $ | (77 | ) | |||||
Stock warrant obligation | — | (89,441 | ) | — | (89,441 | ) | |||||||||
Total Liabilities | $ | — | $ | (89,518 | ) | $ | — | $ | (89,518 | ) |
As of December 31, 2015 | Fair Value Measurement Using | Total | |||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets | |||||||||||||||
Cash equivalents—money market | $ | — | $ | 8,711 | $ | — | $ | 8,711 | |||||||
Total Assets | $ | — | $ | 8,711 | $ | — | $ | 8,711 | |||||||
Liabilities | |||||||||||||||
Interest rate swap | $ | — | $ | (499 | ) | $ | — | $ | (499 | ) | |||||
Total Liabilities | $ | — | $ | (499 | ) | $ | — | $ | (499 | ) |
December 31, 2016 | December 31, 2015 | ||||||
Flight equipment | $ | 1,541,872 | $ | 1,372,099 | |||
Ground equipment | 49,229 | 36,593 | |||||
Leasehold improvements, facilities and office equipment | 27,364 | 25,327 | |||||
Aircraft modifications and projects in progress | 113,518 | 52,717 | |||||
1,731,983 | 1,486,736 | ||||||
Accumulated depreciation | (730,991 | ) | (611,335 | ) | |||
Property and equipment, net | $ | 1,000,992 | $ | 875,401 |
December 31, | December 31, | ||||||
2016 | 2015 | ||||||
Unsubordinated term loan | $ | 85,636 | $ | 100,708 | |||
Revolving credit facility | 355,000 | 180,000 | |||||
Aircraft loans | 18,085 | 36,950 | |||||
Total long term obligations | 458,721 | 317,658 | |||||
Less: current portion | (29,306 | ) | (33,740 | ) | |||
Total long term obligations, net | $ | 429,415 | $ | 283,918 |
Principal Payments | |||
2017 | $ | 29,306 | |
2018 | 18,501 | ||
2019 | 14,861 | ||
2020 | 14,861 | ||
2021 | 381,192 | ||
2022 and beyond | — | ||
$ | 458,721 |
Facility Leases | Other Leases | ||||||
2017 | $ | 8,321 | $ | 233 | |||
2018 | 7,237 | 167 | |||||
2019 | 3,650 | 75 | |||||
2020 | 1,895 | 50 | |||||
2021 | 1,734 | — | |||||
2022 and beyond | 13,765 | — | |||||
Total minimum lease payments | $ | 36,602 | $ | 525 |
Airline | Labor Agreement Unit | Percentage of the Company’s Employees |
ABX | International Brotherhood of Teamsters | 8.8% |
ATI | Air Line Pilots Association | 5.1% |
Pension Plans | Post-retirement Healthcare Plans | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Accumulated benefit obligation | $ | 791,182 | $ | 777,320 | $ | 4,231 | $ | 4,999 | |||||||
Change in benefit obligation | |||||||||||||||
Obligation as of January 1 | $ | 777,320 | $ | 807,992 | $ | 4,999 | $ | 6,163 | |||||||
Service cost | — | — | 123 | 177 | |||||||||||
Interest cost | 35,872 | 34,584 | 170 | 192 | |||||||||||
Plan transfers | 1,226 | 2,558 | — | — | |||||||||||
Benefits paid | (33,593 | ) | (32,696 | ) | (667 | ) | (788 | ) | |||||||
Curtailments and settlement | — | — | (560 | ) | — | ||||||||||
Actuarial (gain) loss | 10,357 | (35,118 | ) | 166 | (745 | ) | |||||||||
Obligation as of December 31 | $ | 791,182 | $ | 777,320 | $ | 4,231 | $ | 4,999 | |||||||
Change in plan assets | |||||||||||||||
Fair value as of January 1 | $ | 672,153 | $ | 719,787 | $ | — | $ | — | |||||||
Actual gain on plan assets | 69,836 | (23,677 | ) | — | — | ||||||||||
Plan transfers | 1,226 | 2,558 | — | — | |||||||||||
Employer contributions | 6,263 | 6,181 | 667 | 788 | |||||||||||
Benefits paid | (33,593 | ) | (32,696 | ) | (667 | ) | (788 | ) | |||||||
Fair value as of December 31 | $ | 715,885 | $ | 672,153 | $ | — | $ | — | |||||||
Funded status | |||||||||||||||
Underfunded plans | |||||||||||||||
Current liabilities | $ | (1,357 | ) | $ | (1,346 | ) | $ | (458 | ) | $ | (626 | ) | |||
Non-current liabilities | $ | (73,940 | ) | $ | (103,821 | ) | $ | (3,773 | ) | $ | (4,373 | ) |
Pension Plans | Post-Retirement Healthcare Plan | ||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Service cost | $ | — | $ | — | $ | — | $ | 123 | $ | 177 | 239 | ||||||||||||
Interest cost | 35,872 | 34,584 | 39,517 | 170 | 192 | 286 | |||||||||||||||||
Expected return on plan assets | (41,056 | ) | (44,082 | ) | (46,111 | ) | — | — | — | ||||||||||||||
Curtailments and settlements | — | — | 11,660 | (1,997 | ) | — | — | ||||||||||||||||
Amortization of prior service cost | — | — | — | (103 | ) | (542 | ) | (3,487 | ) | ||||||||||||||
Amortization of net (gain) loss | 13,472 | 7,170 | (2 | ) | 160 | 292 | 321 | ||||||||||||||||
Net periodic benefit cost (income) | $ | 8,288 | $ | (2,328 | ) | $ | 5,064 | $ | (1,647 | ) | $ | 119 | $ | (2,641 | ) |
Pension Plans | Post-Retirement Healthcare Plans | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Unrecognized prior service cost | $ | — | $ | — | $ | (51 | ) | $ | (153 | ) | |||||
Unrecognized net actuarial loss | 112,506 | 144,402 | 1,893 | 449 | |||||||||||
Accumulated other comprehensive loss | $ | 112,506 | $ | 144,402 | $ | 1,842 | $ | 296 |
Pension Plans | Post- Retirement Healthcare Plans | ||||||
Amortization of actuarial loss | $ | 7,746 | $ | 283 | |||
Prior Service Cost | — | (51 | ) |
Pension Plans | |||||
2016 | 2015 | 2014 | |||
Discount rate - crewmembers | 4.50% | 4.70% | 4.35% | ||
Discount rate - non-crewmembers | 4.60% | 4.75% | 4.40% | ||
Expected return on plan assets | 6.25% | 6.25% | 6.25% |
Composition of Plan Assets as of December 31 | |||||
Asset category | 2016 | 2015 | |||
Cash | 1 | % | 1 | % | |
Equity securities | 30 | % | 28 | % | |
Fixed income securities | 64 | % | 67 | % | |
Real estate | 5 | % | 4 | % | |
100 | % | 100 | % |
Pension Benefits | Post-retirement Healthcare Benefits | ||||||
2017 | $ | 36,417 | $ | 458 | |||
2018 | 42,206 | 476 | |||||
2019 | 41,937 | 509 | |||||
2020 | 44,190 | 523 | |||||
2021 | 46,201 | 536 | |||||
Years 2022 to 2026 | 253,444 | 2,128 |
As of December 31, 2016 | Fair Value Measurement Using | Total | |||||||||
Level 1 | Level 2 | ||||||||||
Plan assets | |||||||||||
Common trust funds | $ | — | $ | 3,469 | $ | 3,469 | |||||
Corporate stock | 20,818 | — | 20,818 | ||||||||
Mutual funds | 59,370 | 114,940 | 174,310 | ||||||||
Fixed income investments | 777 | 457,237 | 458,014 | ||||||||
Benefit Plan Assets | $ | 80,965 | $ | 575,646 | $ | 656,611 | |||||
Investments measured at net asset value ("NAV") | 59,273 | ||||||||||
Total benefit plan assets | $ | 715,884 |
As of December 31, 2015 | Fair Value Measurement Using | Total | |||||||||
Level 1 | Level 2 | ||||||||||
Plan assets | |||||||||||
Common trust funds | $ | — | $ | 4,354 | $ | 4,354 | |||||
Corporate stock | 14,832 | — | 14,832 | ||||||||
Mutual funds | 46,991 | 99,056 | 146,047 | ||||||||
Fixed income investments | 4,954 | 443,600 | 448,554 | ||||||||
Benefit Plan Assets | $ | 66,777 | $ | 547,010 | $ | 613,787 | |||||
Investments measured at net asset value ("NAV") | 58,366 | ||||||||||
Total benefit plan assets | $ | 672,153 |
Fair Value | Redemption Frequency | Redemption Notice Period | Unfunded Commitments | ||||||||
As of December 31, 2016 | |||||||||||
Hedge Funds & Private Equity | $ | 25,831 | (1) (2) | 90 days | $ | — | |||||
Real Estate | 33,442 | (3) | 90 days | — | |||||||
Total investments measured at NAV | $ | 59,273 | $ | — | |||||||
As of December 31, 2015 | |||||||||||
Hedge Funds & Private Equity | $ | 28,649 | (1) (2) | 90 days | $ | — | |||||
Real Estate | 29,717 | (3) | 90 days | — | |||||||
Total investments measured at NAV | $ | 58,366 | $ | — |
December 31 | |||||||
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Net operating loss carryforward and federal credits | $ | 20,596 | $ | 30,981 | |||
Warrants | 4,746 | — | |||||
Post-retirement employee benefits | 27,060 | 36,589 | |||||
Employee benefits other than post-retirement | 13,785 | 13,773 | |||||
Inventory reserve | 2,727 | 2,924 | |||||
Deferred revenue | 7,728 | 8,650 | |||||
Other | 4,411 | 2,344 | |||||
Deferred tax assets | 81,053 | 95,261 | |||||
Deferred tax liabilities: | |||||||
Accelerated depreciation | (186,015 | ) | (175,572 | ) | |||
Partnership items | (8,777 | ) | (9,489 | ) | |||
State taxes | (8,564 | ) | (6,830 | ) | |||
Valuation allowance against deferred tax assets | (229 | ) | (229 | ) | |||
Deferred tax liabilities | (203,585 | ) | (192,120 | ) | |||
Net deferred tax (liability) | $ | (122,532 | ) | $ | (96,859 | ) |
Years Ended December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current taxes: | |||||||||||
Federal | $ | 820 | $ | 524 | $ | 338 | |||||
Foreign | — | — | — | ||||||||
State | 151 | 371 | 345 | ||||||||
Deferred taxes: | |||||||||||
Federal | 11,338 | 21,073 | 17,411 | ||||||||
Foreign | — | — | — | ||||||||
State | 1,085 | 1,440 | 1,608 | ||||||||
Total deferred tax expense | 12,423 | 22,513 | 19,019 | ||||||||
Total income tax expense from continuing operations | $ | 13,394 | $ | 23,408 | $ | 19,702 | |||||
Income tax expense (benefit) from discontinued operations | $ | 1,384 | $ | 1,178 | $ | (1,262 | ) |
Years Ended December 31 | ||||||||
2016 | 2015 | 2014 | ||||||
Statutory federal tax rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes, net of federal tax benefit | 2.3 | % | 1.9 | % | 2.5 | % | ||
Tax effect of non-deductible warrant expense | 4.0 | % | — | % | — | % | ||
Tax effect of stock compensation | (3.4 | )% | — | % | — | % | ||
Tax effect of other non-deductible expenses | 1.6 | % | 0.9 | % | 0.8 | % | ||
Other | (0.6 | )% | (0.4 | )% | (0.2 | )% | ||
Effective income tax rate | 38.9 | % | 37.4 | % | 38.1 | % |
Years Ended December 31 | ||||||||
2016 | 2015 | 2014 | ||||||
Statutory federal tax rate | 35.0 | % | 35.0 | % | (35.0 | )% | ||
State income taxes, net of federal tax benefit | 1.3 | % | 1.3 | % | (1.3 | )% | ||
Effective income tax rate | 36.3 | % | 36.3 | % | (36.3 | )% |
December 31, 2016 | December 31, 2015 | |||||||||||||
Expiration Date | Stated Interest Rate | Notional Amount | Market Value (Liability) | Notional Amount | Market Value (Liability) | |||||||||
May 9, 2016 | 2.020 | % | — | — | 50,625 | (247 | ) | |||||||
June 30, 2017 | 1.183 | % | 43,125 | (77 | ) | 50,625 | (252 | ) | ||||||
May 5, 2021 | 1.090 | % | 43,125 | 547 | — | — |
Defined Benefit Pension | Defined Benefit Post-Retirement | Gains and Losses on Derivative | Foreign Currency Translation | Total | |||||||||||
Balance as of January 1, 2014 | (31,072 | ) | 1,245 | 9 | — | (29,818 | ) | ||||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||
Actuarial gain (loss) for retiree liabilities | (90,400 | ) | 220 | — | — | (90,180 | ) | ||||||||
Foreign currency translation adjustment | — | — | — | (1,629 | ) | (1,629 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||
Pension settlement | 11,660 | — | — | — | 11,660 | ||||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | (2 | ) | 321 | — | — | 319 | |||||||||
Negative prior service cost (reclassified to salaries, wages and benefits) | — | (3,487 | ) | — | — | (3,487 | ) | ||||||||
Hedging gain (reclassified to interest expense) | — | — | (42 | ) | — | (42 | ) | ||||||||
Income Tax (Expense) or Benefit | 28,623 | 1,071 | 37 | 570 | 30,301 | ||||||||||
Other comprehensive income (loss), net of tax | (50,119 | ) | (1,875 | ) | (5 | ) | (1,059 | ) | (53,058 | ) | |||||
Balance as of December 31, 2014 | (81,191 | ) | (630 | ) | 4 | (1,059 | ) | (82,876 | ) | ||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||
Actuarial gain (loss) for retiree liabilities | (32,640 | ) | 745 | — | — | (31,895 | ) | ||||||||
Foreign currency translation adjustment | — | — | — | (517 | ) | (517 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | 7,170 | 292 | — | — | 7,462 | ||||||||||
Negative prior service cost (reclassified to salaries, wages and benefits) | — | (542 | ) | — | — | (542 | ) | ||||||||
Hedging gain (reclassified to interest expense) | — | — | (50 | ) | — | (50 | ) | ||||||||
Income Tax (Expense) or Benefit | 9,359 | (180 | ) | 46 | 181 | 9,406 | |||||||||
Other comprehensive income (loss), net of tax | (16,111 | ) | 315 | (4 | ) | (336 | ) | (16,136 | ) | ||||||
Balance as of December 31, 2015 | (97,302 | ) | (315 | ) | — | (1,395 | ) | (99,012 | ) | ||||||
Other comprehensive income (loss) before reclassifications: | |||||||||||||||
Actuarial gain (loss) for retiree liabilities | 18,424 | 394 | — | — | 18,818 | ||||||||||
Foreign currency translation adjustment | — | — | — | (126 | ) | (126 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income: | |||||||||||||||
Plan curtailment and settlement | — | (1,997 | ) | — | — | (1,997 | ) | ||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | 13,472 | 160 | — | — | 13,632 | ||||||||||
Negative prior service cost (reclassified to salaries, wages and benefits) | — | (103 | ) | — | — | (103 | ) | ||||||||
Income Tax (Expense) or Benefit | (11,682 | ) | 560 | — | 44 | (11,078 | ) | ||||||||
Other comprehensive income (loss), net of tax | 20,214 | (986 | ) | — | (82 | ) | 19,146 | ||||||||
Balance as of December 31, 2016 | (77,088 | ) | (1,301 | ) | — | (1,477 | ) | (79,866 | ) |
Year Ended December 31 | ||||||||||||||||||||
2016 | 2015 | 2014 | ||||||||||||||||||
Number of Awards | Weighted average grant-date fair value | Number of Awards | Weighted average grant-date fair value | Number of Awards | Weighted average grant-date fair value | |||||||||||||||
Outstanding at beginning of period | 1,157,659 | $ | 7.52 | 1,406,550 | $ | 6.21 | 1,477,762 | $ | 5.83 | |||||||||||
Granted | 314,060 | 15.47 | 390,200 | 9.61 | 467,567 | 7.52 | ||||||||||||||
Converted | (329,200 | ) | 7.32 | (498,491 | ) | 5.97 | (404,179 | ) | 6.49 | |||||||||||
Expired | (92,750 | ) | 7.44 | (126,800 | ) | 5.52 | (116,800 | ) | 5.70 | |||||||||||
Forfeited | (9,200 | ) | 10.23 | (13,800 | ) | 7.36 | (17,800 | ) | 6.26 | |||||||||||
Outstanding at end of period | 1,040,569 | $ | 9.97 | 1,157,659 | $ | 7.52 | 1,406,550 | $ | 6.21 | |||||||||||
Vested | 472,294 | $ | 6.60 | 511,109 | $ | 6.03 | 555,927 | $ | 5.73 |
2016 | 2015 | 2014 | |||
Risk-free interest rate | 1.1% | 0.9% | 0.8% | ||
Volatility | 36.9% | 41.5% | 48.9% |
December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
Earnings from continuing operations | $ | 21,060 | $ | 39,155 | $ | 32,074 | |||||
Weighted-average shares outstanding for basic earnings per share | 61,330 | 64,242 | 64,253 | ||||||||
Common equivalent shares: | |||||||||||
Effect of stock-based compensation awards | 1,664 | 885 | 958 | ||||||||
Weighted-average shares outstanding assuming dilution | 62,994 | 65,127 | 65,211 | ||||||||
Basic earnings per share from continuing operations | $ | 0.34 | $ | 0.61 | $ | 0.50 | |||||
Diluted earnings per share from continuing operations | $ | 0.33 | $ | 0.60 | $ | 0.49 |
Year Ended December 31 | |||||||||||
2016 | 2015 | 2014 | |||||||||
Total revenues: | |||||||||||
CAM | $ | 195,092 | $ | 177,789 | $ | 166,303 | |||||
ACMI Services | 492,859 | 433,109 | 439,919 | ||||||||
All other | 262,539 | 161,995 | 142,294 | ||||||||
Eliminate inter-segment revenues | (181,620 | ) | (153,629 | ) | (158,924 | ) | |||||
Total | $ | 768,870 | $ | 619,264 | $ | 589,592 | |||||
Customer revenues: | |||||||||||
CAM | $ | 117,642 | $ | 93,395 | $ | 77,668 | |||||
ACMI Services | 492,859 | 431,989 | 439,919 | ||||||||
All other | 158,369 | 93,880 | 72,005 | ||||||||
Total | $ | 768,870 | $ | 619,264 | $ | 589,592 | |||||
Depreciation and amortization expense: | |||||||||||
CAM | $ | 92,396 | $ | 87,765 | $ | 78,866 | |||||
ACMI Services | 41,487 | 37,526 | 29,929 | ||||||||
All other | 1,613 | 152 | (541 | ) | |||||||
Total | $ | 135,496 | $ | 125,443 | $ | 108,254 | |||||
Segment earnings (loss): | |||||||||||
CAM | $ | 68,608 | $ | 57,457 | $ | 53,159 | |||||
ACMI Services | (32,125 | ) | (2,654 | ) | (12,081 | ) | |||||
All other | 16,623 | 8,561 | 11,363 | ||||||||
Net unallocated interest expense | (545 | ) | (1,721 | ) | (1,761 | ) | |||||
Net gain (loss) on financial instruments | (18,107 | ) | 920 | 1,096 | |||||||
Pre-tax earnings from continuing operations | $ | 34,454 | $ | 62,563 | $ | 51,776 |
December 31, | December 31, | December 31, | |||||||||
2016 | 2015 | 2014 | |||||||||
Assets: | |||||||||||
CAM | $ | 971,986 | $ | 804,776 | $ | 798,508 | |||||
ACMI Services | 164,489 | 154,852 | 133,861 | ||||||||
All other | 122,855 | 82,093 | 78,834 | ||||||||
Total | $ | 1,259,330 | $ | 1,041,721 | $ | 1,011,203 |
December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Mail and package handling services | $ | 103,191 | $ | 47,307 | $ | 34,025 | ||||||
Aircraft maintenance, modifications and part sales | 40,754 | 33,687 | 26,393 | |||||||||
Facility and ground equipment services | 12,709 | 11,490 | 11,119 | |||||||||
Other | 1,715 | 1,396 | 468 | |||||||||
Total customer revenues | $ | 158,369 | $ | 93,880 | $ | 72,005 |
December 31 | |||||||
2016 | 2015 | ||||||
Liabilities | |||||||
Employee compensation and benefits | $ | 19,885 | $ | 23,400 | |||
Post-retirement | 5,663 | 10,929 | |||||
Total Liabilities | $ | 25,548 | $ | 34,329 |
December 31 | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Pre-tax earnings (loss) | $ | 3,813 | $ | 3,245 | $ | (3,477 | ) |
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||
2016 (1) | |||||||||||||||
Revenues from continuing operations | $ | 177,385 | $ | 176,549 | $ | 193,261 | $ | 221,675 | |||||||
Operating income from continuing operations | 15,351 | 15,801 | 14,456 | 18,140 | |||||||||||
Net earnings (loss) from continuing operations | 8,171 | 11,528 | 2,116 | (755 | ) | ||||||||||
Net earnings from discontinued operations | 47 | 47 | 47 | 2,287 | |||||||||||
Weighted average shares: | |||||||||||||||
Basic | 63,636 | 63,267 | 59,379 | 59,083 | |||||||||||
Diluted | 65,057 | 66,763 | 60,283 | 59,083 | |||||||||||
Earnings per share from continuing operations | |||||||||||||||
Basic | $ | 0.13 | $ | 0.18 | $ | 0.04 | $ | (0.01 | ) | ||||||
Diluted | $ | 0.13 | $ | 0.12 | $ | 0.04 | $ | (0.01 | ) | ||||||
2015 | |||||||||||||||
Revenues from continuing operations | $ | 147,025 | $ | 148,353 | $ | 142,305 | $ | 181,581 | |||||||
Operating income from continuing operations | 17,529 | 19,794 | 12,917 | 22,550 | |||||||||||
Net earnings from continuing operations | 8,895 | 10,570 | 6,347 | 13,343 | |||||||||||
Net earnings from discontinued operations | 214 | 214 | 214 | 1,425 | |||||||||||
Weighted average shares: | |||||||||||||||
Basic | 64,454 | 64,541 | 64,239 | 63,742 | |||||||||||
Diluted | 65,337 | 65,471 | 65,171 | 64,536 | |||||||||||
Earnings per share from continuing operations | |||||||||||||||
Basic | $ | 0.14 | $ | 0.16 | $ | 0.10 | $ | 0.21 | |||||||
Diluted | $ | 0.14 | $ | 0.16 | $ | 0.10 | $ | 0.21 |
1. | During 2016, the Company recorded a $0.4 million loss, a $5.8 million gain, a $8.8 million loss and a $15.6 million loss on the remeasurement of financial instruments related to the warrants issued to Amazon for the quarters ended March 31, 2016, June 30, 2016, September 30, 2016 and December 31, 2016, respectively. |
Name | Age | Information | ||
Joseph C. Hete | 62 | President and Chief Executive Officer, Air Transport Services Group, Inc., since December 2007 and Chief Executive Officer, ABX Air, Inc., since August 2003. Mr. Hete was President of ABX Air, Inc. from January 2000 to February 2008. Mr. Hete was Chief Operating Officer of ABX Air, Inc. from January 2000 to August 2003. From 1997 until January 2000, Mr. Hete held the position of Senior Vice President and Chief Operating Officer of ABX Air, Inc. Mr. Hete served as Senior Vice President, Administration of ABX Air, Inc. from 1991 to 1997 and Vice President, Administration of ABX Air, Inc. from 1986 to 1991. Mr. Hete joined ABX Air, Inc. in 1980. | ||
Quint O. Turner | 54 | Chief Financial Officer, Air Transport Services Group, Inc., since February 2008 and Chief Financial Officer, ABX Air, Inc. since December 2004. Mr. Turner was Vice President of Administration of ABX Air, Inc. from February 2002 to December 2004. Mr. Turner was Corporate Director of Financial Planning and Accounting of ABX Air, Inc. from 1997 to 2002. Prior to 1997, Mr. Turner held positions of Manager of Planning and Director of Financial Planning of ABX Air, Inc. Mr. Turner joined ABX Air, Inc. in 1988. | ||
Richard F. Corrado | 57 | Chief Commercial Officer, Air Transport Services Group, Inc., and President of Cargo Aircraft Management, Inc. since April 2010. President of Airborne Global Solutions, Inc. since July 2010. | ||
Before joining ATSG, Mr. Corrado was President of Transform Consulting Group from July 2006 through March 2010 and Chief Operating Officer of AFMS Logistics Management from February 2008 through March 2010. He was Executive Vice President of Air Services and Business Development for DHL Express from September 2003 through June of 2006; and Senior Vice President of Marketing for Airborne Express from August 2000 through August 2003. | ||||
W. Joseph Payne | 53 | Chief Legal Officer & Secretary, Air Transport Services Group, Inc., since May 2016; Senior Vice President, Corporate General Counsel and Secretary, Air Transport Services Group, Inc., since February 2008; and Vice President, General Counsel and Secretary, ABX Air, Inc. since January 2004. Mr. Payne was Corporate Secretary/Counsel of ABX Air, Inc. from January 1999 to January 2004, and Assistant Corporate Secretary from July 1996 to January 1999. Mr. Payne joined ABX Air, Inc. in April 1995. |
(a) | List of Documents filed as part of this report: |
(1) | Consolidated Financial Statements |
(2) | Financial Statement Schedules |
Description | Balance at beginning of period | Additions charged to cost and expenses | Deductions | Balance at end of period | |||||||||||
Accounts receivable reserve: | |||||||||||||||
Year ended: | |||||||||||||||
December 31, 2016 | $ | 415,336 | $ | 1,006,307 | $ | 157,432 | $ | 1,264,211 | |||||||
December 31, 2015 | 811,875 | 138,310 | 534,849 | 415,336 | |||||||||||
December 31, 2014 | 716,913 | 137,555 | 42,593 | 811,875 |
(3) | Exhibits |
Exhibit No. | Description of Exhibit |
Articles of Incorporation | |
3.1 | Amended and Restated Certificate of Incorporation of Air Transport Services Group, Inc. reflecting corrections and amendments through August 16, 2013, filed herewith. [This document represents the Amended and Restated Certificate of Incorporation of Air Transport Services Group, Inc. in compiled form, incorporating all corrections and amendments. This compiled document has not been filed with the Delaware Secretary of State.] |
3.2 | Amended and Restated Bylaws of Air Transport Services Group, Inc., reflecting amendments through May 10, 2013. (16) |
Material Contracts | |
10.1 | Director compensation fee summary. (8) |
10.2 | Aircraft Loan and Security Agreement and related promissory note, dated August 24, 2006, by and among ABX Air, Inc. and Chase Equipment Leasing, Inc. (2) |
10.3 | Aircraft Loan and Security Agreement and related promissory note, dated October 10, 2006, by and among ABX Air, Inc. and Chase Equipment Leasing, Inc. (3) |
10.4 | Aircraft Loan and Security Agreement and related promissory note, dated February 16, 2007, by and among ABX Air, Inc. and Chase Equipment Leasing, Inc. (4) |
10.5 | Aircraft Loan and Security Agreement and related promissory note, dated April 25, 2007, by and among ABX Air, Inc. and Chase Equipment Leasing, Inc. (5) |
10.6 | Aircraft Loan and Security Agreement and related promissory note, dated October 26, 2007, by and among ABX Air, Inc. and Chase Equipment Leasing, Inc. (7) |
10.7 | Aircraft Loan and Security Agreement and related promissory note, dated December 19, 2007, by and among ABX Air, Inc. and Chase Equipment Leasing, Inc. (7) |
10.8 | Guaranty by Air Transport Services Group, Inc. in favor of DHL Express (USA), Inc., dated May 8, 2009 (6), as amended by Amendment to the Guaranty dated as of January 14, 2015 (20) |
10.9 | Form of Time-Based Restricted Stock Award Agreement under Air Transport Services Group, Inc. 2005 Amended and Restated Long-Term Incentive Plan. (9) |
10.10 | Form of Performance-Based Stock Unit Award Agreement under Air Transport Services Group, Inc. 2005 Amended and Restated Long-Term Incentive Plan. (9) |
10.11 | Form of Restricted Stock Unit Award Agreement under Air Transport Services Group, Inc. 2005 Amended and Restated Long-Term Incentive Plan. (18) |
10.12 | Conversion Agreement dated August 3, 2010, between Cargo Aircraft Management, Inc., M&B Conversions Limited and Israel Aerospace Industries Ltd. (10) |
10.13 | Credit Agreement, dated as of May 9, 2011, among Cargo Aircraft Management, Inc., as Borrower, Air Transport Services Group, Inc., the Lenders from time to time party thereto, SunTrust Bank, as Administrative Agent, Regions Bank and JPMorgan Chase Bank, N.A., as Syndication Agents, and Bank of America, N.A., as Documentation Agent. (11) |
10.14 | Guarantee and Collateral Agreement, dated as of May 9, 2011, made by Cargo Aircraft Management, Inc. and certain of its Affiliates in favor of SunTrust Bank, as Administrative Agent. (11) |
10.15 | Amendment to Confidentiality and Standstill Agreement, dated as of June 11, 2012, between Air Transport Services Group, Inc. and Red Mountain Capital Partners LLC. (12) |
10.16 | Form of amended and restated change-in-control agreement in effect between Air Transport Services Group, Inc. and its executive officers. (14) |
10.17 | Amendment to the Credit Agreement, dated July 20, 2012, among Cargo Aircraft Management, Inc., as Borrower, Air Transport Services Group, Inc., the Lenders from time to time party thereto, SunTrust Bank, as Administrative Agent, Regions Bank and JPMorgan Chase Bank, N.A., as Syndication Agents, and Bank of America, N.A., as Documentation Agent. (13) |
10.18 | Amended and Restated Lease Agreement, dated December 27, 2012, between Clinton County Port Authority and Air Transport Services Group, Inc. (15) |
10.19 | Loan Agreement, Chapter 166, Ohio Revised Code, dated December 1, 2012, between the Director of Development Services Agency of Ohio and Clinton County Port Authority. (15) |
10.20 | Guaranty Agreement, dated December 1, 2012, among Air Transport Services Group, Inc., Airborne Maintenance and Engineering Services, Inc., Air Transport International, LLC, Clinton County Port Authority, the Directory of Development Services Agency of Ohio, and the Huntington National Bank. (15) |
10.21 | Lease Agreement for the Jump Hangar Facility, dated December 1, 2012, between Clinton County Port Authority and Air Transport International, LLC. (15) |
10.22 | Leasehold Mortgage, Assignment of Leases and Rents, Security Agreement and Financing Statement, dated December 1, 2012, among Air Transport International, LLC and the Director of Development Services Agency of Ohio. (15) |
10.23 | Bond Purchase Agreement, dated December 13, 2012, among the State of Ohio, acting by and through its Treasurer of State, the Development Services Agency of Ohio, acting by and through a duly authorized representative, Clinton County Port Authority, Air Transport International, LLC and Stifel, Niolaus & Company, Inc. (15) |
10.24 | Air Transport Services Group, Inc. Nonqualified Deferred Compensation Plan, dated October 31, 2013. (17) |
10.25 | Second Amendment to the Credit Agreement, dated October 22, 2013, among Cargo Aircraft Management, Inc., as Borrower, Air Transport Services Group, Inc., the Lenders from time to time party thereto, SunTrust Bank, as Administrative Agent, Regions Bank and JPMorgan Chase Bank, N.A., as Syndication Agents, and Bank of America, N.A., as Documentation Agents. (17) |
10.26 | Third Amendment to Credit Agreement and First Amendment to Guarantee and Collateral Agreement, dated May 6, 2014, by and among Cargo Aircraft Management, Inc., as Borrower, Air Transport Services Group, Inc., each of the Guarantors party thereto, each of the financial institutions party thereto as "Lenders", and SunTrust Bank as Administrative Agent. (19) |
10.27 | Amended and Restated Air Transportation Services Agreement between DHL Network Operations (USA), Inc., ABX Air, Inc. and Cargo Aircraft Management, Inc., dated January 14, 2015. Those portions of the Agreement marked with an [*] have been omitted pursuant to a request for confidential treatment and have been filed separately with the SEC. (20) |
10.28 | Fifth Amendment to Credit Agreement, dated May 8, 2015, by and among Cargo Aircraft Management, Inc., as Borrower, Air Transport Services Group, Inc., each of the Guarantors party thereto, each of the financial institutions party thereto as "Lenders" and SunTrust Bank, in its capacity as Administrative Agent. (21) |
10.29 | Air Transportation Services Agreement, dated as of March 8, 2016, by and between Airborne Global Solutions, Inc. and Amazon Fulfillment Services Inc. Those portions of the Agreement marked with an [*] have been omitted pursuant to a request for confidential treatment and have been filed separately with the SEC. (22) |
10.30 | Investment Agreement, dated as of March 8, 2016, by and between Air Transport Services Group, Inc., and Amazon.com, Inc. Those portions of the Agreement marked with an [*] have been omitted pursuant to a request for confidential treatment and have been filed separately with the SEC. (22) |
10.31 | Warrant to Purchase Common Stock, issued March 8, 2016, by and between Air Transport Services Group, Inc. and Amazon.com. Those portions of the Warrant marked with an [*] have been omitted pursuant to a request for confidential treatment and have been filed separately with the SEC. (22) |
10.32 | Stockholders Agreement, dated as of March 8, 2016, by and between Air Transport Services Group, Inc., and Amazon.com, Inc. Those portions of the Agreement marked with an [*] have been omitted pursuant to a request for confidential treatment and have been filed separately with the SEC. (22) |
10.33 | Amended and Restated Credit Agreement, dated as of May 31, 2016, among Cargo Aircraft Management, Inc., as Borrower, Air Transport Services Group, Inc., the Lenders from time to time party hereto, SunTrust Bank, as Administrative Agent, Regions Bank and JPMorgan Chase Bank, N.A., as Syndication Agents and Bank of America, N.A., as Documentation Agent. (23) |
10.34 | Guarantee and Collateral Agreement made by Cargo Aircraft Management, Inc. and certain of its Affiliates in favor of SunTrust Bank, as Administrative Agent, dated as of May 31, 2016. (23) |
10.35 | Air Transport Services Group, Inc. Executive Incentive Compensation Plan, last modified August 5, 2016. (23) |
10.36 | Form of Time-Based Restricted Stock Award Agreement under Air Transport Services Group, Inc. 2015 Amended and Restated Long-Term Incentive Plan. (24) |
10.37 | Form of Performance-Based Stock Unit Award Agreement under Air Transport Services Group, Inc. 2015 Amended and Restated Long-Term Incentive Plan. (24) |
10.38 | Form of Restricted Stock Unit Award Agreement under Air Transport Services Group, Inc. 2015 Amended and Restated Long-Term Incentive Plan. (24) |
10.39 | Stock Purchase Agreement, dated June 21, 2016, between Air Transport Services Group, Inc. and Red Mountain Partners, L.P. (25) |
Code of Ethics | |
14.1 | Code of Ethics—CEO and CFO. (1) |
List of Significant Subsidiaries | |
21.1 | List of Significant Subsidiaries of Air Transport Services Group, Inc., filed within. |
Consent of experts and counsel | |
23.1 | Consent of independent registered public accounting firm, filed herewith. |
Certifications | |
31.1 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. |
31.2 | Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herewith. |
32.1 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith. |
32.2 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith. |
101.INS | XBRL Instance Document |
101.SCH | XBRL Taxonomy Extension Schema Document |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document |
(1) | The Company's Code of Ethics can be accessed from the Company's Internet website at www.atsginc.com. |
(2) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 9, 2006. |
(3) | Incorporated by reference to the Company’s Annual Report on Form 10-K/A filed on August 14, 2007 with the Securities and Exchange Commission. |
(4) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q/A, filed with the Securities and Exchange Commission on August 14, 2007. |
(5) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 14, 2007. |
(6) | Incorporated by reference to the Company’s Quarterly Report on Form 10-Q, filed with the Securities and Exchange Commission on August 10, 2009. |
(7) | Incorporated by reference to the Company’s Annual Report on Form 10-K filed on March 17, 2008 with the Securities and Exchange Commission. |
(8) | Incorporated by reference to the Company's Proxy Statement for the 2016 Annual Meeting of Stockholders, Corporate Governance and Board Matters, filed April 1, 2016 with the Securities and Exchange Commission. |
(9) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2010. |
(10) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 3, 2010. Those portions of the Agreement marked with an [*] have been omitted pursuant to a request for confidential treatment and have been filed separately with the SEC. |
(11) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 3, 2011. |
(12) | Incorporated by reference to the Company's Form 8-K filed with the Securities and Exchange Commission on June 18, 2012. |
(13) | Incorporated by reference to the Company's Form 8-K filed with the Securities and Exchange Commission on July 24, 2012. |
(14) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 2, 2012. |
(15) | Incorporated by reference to the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 4, 2013. Those portions of the Agreement marked with an [*] have been omitted pursuant to a request for confidential treatment and have been filed separately with the SEC. |
(16) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 8, 2013. |
(17) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on November 6, 2013. |
(18) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 12, 2014. |
(19) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 5, 2014. |
(20) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 8, 2015, as amended by the Company's Quarterly Report on Form 10-Q/A filed with the Securities and Exchange Commission on August 7, 2015. |
(21) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 7, 2015. |
(22) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2016. |
(23) | Incorporated by reference to the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 8, 2016. |
(24) | Incorporated by reference to the Company's Form 8-K filed with the Securities and Exchange Commission on March 15, 2016. |
(25) | Incorporated by reference to the Company's Form 8-K filed with the Securities and Exchange Commission on June 27, 2016. |
Signature | Title | Date | ||
/S/ JOSEPH C. HETE | President and Chief Executive Officer (Principal Executive Officer) | March 8, 2017 | ||
Joseph C. Hete |
Signature | Title | Date | ||
/S/ RANDY D. RADEMACHER | Director and Chairman of the Board | March 8, 2017 | ||
Randy D. Rademacher | ||||
/S/ RICHARD M. BAUDOUIN | Director | March 8, 2017 | ||
Richard M. Baudouin | ||||
/S/ JOSEPH C. HETE | Director, President and Chief Executive Officer (Principal Executive Officer) | March 8, 2017 | ||
Joseph C. Hete | ||||
/S/ J. CHRISTOPHER TEETS | Director | March 8, 2017 | ||
J. Christopher Teets | ||||
/S/ JEFFREY J. VORHOLT | Director | March 8, 2017 | ||
Jeffrey J. Vorholt | ||||
/S/ QUINT O. TURNER | Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | March 8, 2017 | ||
Quint O. Turner |
1. | ABX Air, Inc., a Delaware Corporation |
2. | Airborne Global Solutions, Inc., a Delaware Corporation |
3. | Airborne Maintenance and Engineering Services, Inc., a Delaware Corporation |
4. | Air Transport International, Inc., a Delaware Corporation |
5. | Air Transport International Limited Liability Company, a Nevada Limited Liability Company |
6. | AMES Material Services, Inc., an Ohio Corporation |
7. | Cargo Aircraft Management, Inc., a Florida Corporation |
8. | LGSTX Distribution Services, Inc., an Ohio Corporation |
9. | LGSTX Services, Inc., a Delaware Corporation |
10. | Pemco World Air Services Inc., a Delaware Corporation |
1. | I have reviewed this report on Form 10-K of Air Transport Services Group, Inc.; |
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 registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers 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 registrant 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 registrant, 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 registrant'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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant'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 registrant'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 registrant's internal control over financial reporting. |
/s/ JOSEPH C. HETE |
Joseph C. Hete |
Chief Executive Officer |
1. | I have reviewed this report on Form 10-K of Air Transport Services Group, Inc.; |
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 registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers 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 registrant 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 registrant, 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 registrant'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 registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant'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 registrant'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 registrant's internal control over financial reporting. |
/s/ QUINT O. TURNER |
Quint O. Turner |
Chief Financial Officer (Principal Financial and Accounting Officer) |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/S/ JOSEPH C. HETE |
Joseph C. Hete Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ QUINT O. TURNER |
Quint O. Turner Chief Financial Officer |
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Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Mar. 07, 2017 |
Jun. 30, 2016 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Air Transport Services Group, Inc. | ||
Entity Central Index Key | 0000894081 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 59,485,903 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 660,069,868 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets, Current [Abstract] | ||
Allowance for doubtful accounts | $ 1,264 | $ 415 |
Stockholders' Equity Attributable to Parent [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 85,000,000 | 75,000,000 |
Common stock, shares issued (in shares) | 59,461,291 | 64,077,140 |
Common stock, shares outstanding (in shares) | 59,461,291 | 64,077,140 |
Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Series A Junior Participating Preferred Stock [Member] | ||
Stockholders' Equity Attributable to Parent [Abstract] | ||
Preferred stock, shares authorized (in shares) | 75,000 | 75,000 |
Summary of Financial Statement Preparation and Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||
Summary of Financial Statement Preparation and Significant Accounting Policies | SUMMARY OF FINANCIAL STATEMENT PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Air Transport Services Group, Inc. is a holding company whose principal subsidiaries include an aircraft leasing company and two U.S. certificated airlines. The Company provides airline operations, aircraft leases, aircraft maintenance and other support services primarily to the cargo transportation and package delivery industries. Through the Company's subsidiaries, it offers a range of complementary services to delivery companies, freight forwarders, airlines and government customers. The Company's leasing subsidiary, Cargo Aircraft Management, Inc. (“CAM”), leases aircraft to each of the Company's airlines as well as to non-affiliated airlines and other lessees. The airlines, ABX Air, Inc. (“ABX”) and Air Transport International, Inc. (“ATI”), each have the authority, through their separate U.S. Department of Transportation ("DOT") and Federal Aviation Administration ("FAA") certificates, to transport cargo worldwide. ATI provides passenger transportation, primarily to the U.S. Military, using "combi" aircraft, which are certified to carry passengers as well as cargo on the main deck. The Company serves a base of concentrated customers who typically have a diverse line of international cargo traffic. The Company provides aircraft and airline operations to its customers, typically under contracts providing for a combination of aircraft, crews, maintenance and insurance ("ACMI") services. In addition to its airline operations and aircraft leasing services, the Company sells aircraft parts, provides aircraft maintenance and modification services, equipment maintenance services, and operates mail and package sorting facilities. Basis of Presentation The accompanying consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Investments in an affiliate in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Using the equity method, the Company’s share of a nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Inter-company balances and transactions are eliminated. The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Estimates and assumptions are used to record allowances for uncollectible amounts, self-insurance reserves, spare parts inventory, depreciation and impairments of property, equipment, goodwill and intangibles, stock warrants, post-retirement obligations, income taxes, contingencies and litigation. Changes in estimates and assumptions may have a material impact on the consolidated financial statements. Cash and Cash Equivalents The Company classifies short-term, highly liquid investments with maturities of three months or less at the time of purchase as cash and cash equivalents. These investments, consisting of money market funds, are recorded at cost, which approximates fair value. Substantially all deposits of the Company’s cash are held in accounts that exceed federally insured limits. The Company deposits cash in common financial institutions which management believes are financially sound. Accounts Receivable and Allowance for Uncollectible Accounts The Company's accounts receivable is primarily due from its significant customers (see Note B), other airlines, the U.S. Postal Services ("USPS"), delivery companies and freight forwarders. The Company performs a quarterly evaluation of the accounts receivable and the allowance for uncollectible accounts by reviewing specific customers' recent payment history, growth prospects, financial condition and other factors that may impact a customer's ability to pay. The Company establishes an allowance for uncollectible accounts for probable losses due to a customer's potential inability or unwillingness to make contractual payments. Account balances are written off against the allowance when the Company ceases collection efforts. Inventory The Company’s inventory is comprised primarily of expendable aircraft parts and supplies used for aircraft maintenance. Inventory is generally charged to expense when issued for use on a Company aircraft. The Company values its inventory of aircraft parts and supplies at weighted-average cost and maintains a related obsolescence reserve. The Company records an obsolescence reserve on a base stock of inventory for each fleet type. The amortization of base stock for the obsolescence reserve corresponds to the expected life of each fleet type. Additionally, the Company monitors the usage rates of inventory parts and segregates parts that are technologically outdated or no longer used in its fleet types. Slow moving and segregated items are actively marketed and written down to their estimated net realizable values based on market conditions. Management analyzes the inventory reserve for reasonableness at the end of each quarter. That analysis includes consideration of the expected fleet life, amounts expected to be on hand at the end of a fleet life, and recent events and conditions that may impact the usability or value of inventory. Events or conditions that may impact the expected life, usability or net realizable value of inventory include additional aircraft maintenance directives from the FAA, changes in DOT regulations, new environmental laws and technological advances. Goodwill and Intangible Assets The Company assesses, during the fourth quarter of each year, the carrying value of goodwill. The first step of the assessment is the estimation of fair value of each reporting unit, which is compared to the carrying value. If step one indicates that impairment potentially exists, a second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the implied fair value of goodwill is less than its carrying value. The Company also conducts impairment assessments of goodwill, indefinite-lived intangible assets and finite-lived intangible assets whenever events or changes in circumstance indicate an impairment may have occurred. Finite-lived intangible assets are amortized over their estimated useful economic lives. Property and Equipment Property and equipment held for use is stated at cost, net of any impairment recorded. The cost and accumulated depreciation of disposed property and equipment are removed from the accounts with any related gain or loss reflected in earnings from operations. Depreciation of property and equipment is provided on a straight-line basis over the lesser of the asset’s useful life or lease term. Depreciable lives are summarized as follows:
The Company periodically evaluates the useful lives, salvage values and fair values of property and equipment. Acceleration of depreciation expense or the recording of significant impairment losses could result from changes in the estimated useful lives of assets due to a number of reasons, such as excess aircraft capacity or changes in regulations governing the use of aircraft. Aircraft and other long-lived assets are tested for impairment when circumstances indicate the carrying value of the assets may not be recoverable. To conduct impairment testing, the Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset group is less than the carrying value. If impairment exists, an adjustment is made to write the assets down to fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined considering quoted market values, discounted cash flows or internal and external appraisals, as applicable. For assets held for sale, impairment is recognized when the fair value less the cost to sell the asset is less than the carrying value. The Company’s accounting policy for major airframe and engine maintenance varies by subsidiary and aircraft type. The costs for ABX's Boeing 767-200 airframe maintenance, which is the majority of the Company's aircraft fleet, are expensed as they are incurred. The costs of major airframe maintenance for the Company's other aircraft are capitalized and amortized over the useful life of the overhaul. Many of the Company's General Electric CF6 engines that power the Boeing 767-200 aircraft are maintained under “power by the hour” and "power by the cycle" agreements with an engine maintenance provider. Under these agreements, the engines are maintained by the service provider for a fixed fee per flight hour and cycle; accordingly, the cost of engine maintenance is generally expensed as flights occur. Maintenance for the airlines’ other aircraft engines, including Boeing 767-300 and Boeing 757 aircraft, are typically contracted to service providers on a time and material basis and the costs of those engine overhauls are capitalized and amortized over the useful life of the overhaul. In the event the Company leases aircraft from external lessors, the Company may be required to make periodic payments to the lessor under certain aircraft leases for future maintenance events such as engine overhauls and major airframe maintenance. Such payments are recorded as deposits until drawn for qualifying maintenance costs. The maintenance costs are expensed or capitalized in accordance with the airline's accounting policy for major airframe and engine maintenance. The Company evaluates at the balance sheet date, whether it is probable that an amount on deposit will be returned by the lessor to reimburse the costs of the maintenance activities. When an amount on deposit is less than probable of being returned, it is recognized as additional maintenance expense. Capitalized Interest Interest costs incurred while aircraft are being modified are capitalized as an additional cost of the aircraft until the date the asset is placed in service. Capitalized interest was $1.3 million, $0.2 million and $0.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. Discontinued Operations A business component whose operations are discontinued is reported as discontinued operations if the cash flows of the component have been eliminated from the ongoing operations of the Company and represents a strategic shift that had a major impact on the Company. The results of discontinued operations are aggregated and presented separately in the consolidated statements of operations. Self-Insurance The Company is self-insured for certain workers’ compensation, employee healthcare, automobile, aircraft, and general liability claims. The Company maintains excess claim coverage with common insurance carriers to mitigate its exposure to large claim losses. The Company records a liability for reported claims and an estimate for incurred claims that have not yet been reported. Accruals for these claims are estimated utilizing historical paid claims data and recent claims trends. Other liabilities included $18.7 million and $23.3 million at December 31, 2016 and December 31, 2015, respectively, for self-insured reserves. Changes in claim severity and frequency could result in actual claims being materially different than the costs accrued. Pension and Post-Retirement Benefits The funded status of the Company's defined benefits pension or post-retirement health care plan is the difference between the fair value of plan assets and the accumulated benefit obligations to plan participants. The over funded or underfunded status of a plan is reflected in the consolidated balance sheet as an asset for over funded plans, or as a liability for underfunded plans. The funded status is ordinarily remeasured annually at year end using the fair value of plans assets, market based discount rates and actuarial assumptions. Changes in the funded status of the plans as a result of remeasuring plan assets and benefit obligations, are recorded to accumulated comprehensive loss and amortized into operating expense using a corridor approach. The Company's corridor approach amortizes variances in plan assets and benefit obligations that are a result of the previous measurement assumptions into earnings when the net deferred variances exceed 10% of the greater of the market value of plan assets or the benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining service period to retirement date of active plan participants. Costs adjustments for plan amendments are also deferred and amortized over the expected working life or the life expectancy of plan participants. Security and Maintenance Deposits The Company's customer leases typically obligate the lessee to maintain the Company's aircraft in compliance with regulatory standards for flight and aircraft maintenance. The Company may require an aircraft lessee to pay a security deposit or provide a letter of credit until the expiration of the lease. Additionally, the Company's leases may require a lessee to make monthly payments toward future expenditures for scheduled heavy maintenance events. The Company records security and maintenance deposits in other liabilities. If a lease requires monthly maintenance payments, the Company is typically required to reimburse the lessee for costs they incur for scheduled heavy maintenance events after completion of the work and receipt of qualifying documentation. Reimbursements to the lessee are recorded against the previously paid maintenance deposits. Income Taxes Income taxes have been computed using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against net deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. All deferred income taxes are classified as noncurrent in the statement of financial position. The Company recognizes the benefit of a tax position taken on a tax return, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. An uncertain income tax position is not recognized if it has a less than a 50% likelihood of being sustained. The Company recognizes interest and penalties accrued related to uncertain tax positions in operating expense. Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. Stock Warrants The Company’s accounting for warrants issued to a lessee is determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments. The warrants issued to lessee are recorded as a lease incentive asset using their fair value at the time that the lessee has met its performance obligation. The lease incentive is amortized against revenues over the duration of related aircraft leases. The unexercised warrants are classified in liabilities and remeasured to fair value at the end of each reporting period, resulting in a non-operating gain or loss. Comprehensive Income Comprehensive income includes net earnings and other comprehensive income or loss. Other comprehensive income or loss results from certain changes in the Company’s liabilities for pension and other post retirement benefits, gains and losses associated with interest rate hedging instruments and fluctuations in currency exchange rates related to the foreign affiliate. Fair Value Information Assets or liabilities that are required to be measured at fair value are reported using the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820-10 Fair Value Measurements and Disclosures establishes three levels of input that may be used to measure fair value:
Revenue Recognition Aircraft lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Revenues generated from airline service agreements are typically recognized based on hours flown or the amount of aircraft and crew resources provided during a reporting period. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are typically measured on a monthly basis and recorded to revenue in the corresponding month earned. Revenues for operating expenses that are reimbursed through airline service agreements, including consumption of aircraft fuel, are generally recognized as the costs are incurred. Revenues from charter service agreements are recognized on scheduled and non-scheduled flights when the specific flight has been completed. Revenues from the sale of aircraft parts and engines are recognized when the parts are delivered. Revenues earned and expenses incurred in providing aircraft-related maintenance, repair or technical services are recognized in the period in which the services are completed and delivered to the customer. Revenues derived from sorting parcels are recognized in the reporting period in which the services are performed. Revenue is not recognized until collectibility is reasonably assured. New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, "Improvements to Employee Share-Based Payment Accounting," (“ASU 2016-09”) which addresses several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-9 is effective for annual reporting periods beginning after December 15, 2016 and earlier adoption is permitted. The new standard requires that an entity recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Under the previous standard, excess tax benefits are recognized in additional paid-in capital and tax deficiencies are recognized either as an offset to accumulated excess tax benefits, or in the income statement. The Company elected to early adopt this standard in the quarter ended March 31, 2016. The impact of the early adoption resulted in the Company recording a tax benefit of $0.7 million within income tax expense for the three months ended March 31, 2016 related to the excess tax benefit on stock incentive awards that settled during the quarter ended March 31, 2016. The tax benefit for the year ended December 31, 2016 was $1.2 million. Prior to adoption of ASU 2016-09, this amount would have been recorded as an increase of additional paid-in capital. The tax benefit for the year ended December 31, 2015 would have been $0.8 million. The Company accounts for forfeitures as they occur. Under ASU 2016-09, excess tax benefits related to employee share-based payments are not reclassified from operating activities to financing activities in the statement of cash flows. The Company applied the effect of ASU 2016-09 to the presentation of excess tax benefits in the statement of cash flows, prospectively. Under ASU 2016-09, cash paid when withholding shares for tax withholding purposes are classified as a financing activity in the statement of cash flows. The Company has applied the effect of this change on prior period statements of cash flows retrospectively. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the year ended December 31, 2016. This increased the diluted weighted average common shares outstanding by 141,364 shares. In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). In April 2016, the FASB issued ASU No. 2016-10, "Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing" clarify the accounting under ASU 2014-09 for licenses of intellectual property and for identifying distinct performance obligations in a contract. ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 with earlier adoption permitted for reporting periods beginning after December 15, 2016. ASU 2014-09 may be applied using either a full retrospective approach, under which all years included in the financial statements will be presented under the revised guidance, or a modified retrospective approach, under which financial statements will be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities would recognize a cumulative catch-up adjustment to the opening balance of retained earnings at the effective date for contracts that still require performance by the entity, and disclose all line items in the year of adoption as if they were prepared under the old revenue guidance. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the standard is expected to have on the Company's consolidated financial position, results of operations or cash flows and related disclosures. The evaluation includes each of the five steps identified in the ASU 2014-09 revenue recognition model, which are as follows: 1) identify the contract with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when (or as) performance obligations are satisfied. The Company's lease contracts within the scope of ASC 840, Leases, are specifically excluded from ASU 2014-09. As the Company completes its evaluation of this new standard, new information may arise that could change the Company's current understanding of the impact to revenue and expense recognized. Additionally, industry activities and other guidance provided by regulators, standards setters, and the accounting profession may affect the Company’s assessment and implementation plans. In April 2015, the FASB issued ASU, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. As a result of the adoption of ASU 2015-03, the amounts of debt issuance costs were reclassified on the Company's balance sheets from other assets to long term debt and were not significant. In July 2015, FASB issued ASU "Inventory (Topic 330): Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 more closely aligns the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards ("IFRS"). The amendment in ASU 2015-11 is for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect the impact of adopting ASU 2015-11 to be material to the Company's financial statements and related disclosures. In January 2016, the FASB issued an Exposure Draft of a proposed ASU, "Compensation - Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The proposed ASU would require an employer to report the service cost component of retiree benefits in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost would be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If adopted, the proposed standard would impact the Operating Income subtotal as reported in the Company's Consolidated Statement of Operations by excluding interest expense and investment returns components of retiree benefit expenses. In February 2016, the FASB issued ASU "Leases (Topic 842)" ("ASU 2016-02"), which will require the recognition of right to-use-assets and lease liabilities for leases previously classified as operating leases by lessees. The standard will take effect for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early application will be permitted for all entities. In addition, the FASB has decided to require a lessee to apply a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements (the date of initial application). The modified retrospective approach would not require any transition accounting for leases that expired before the date of initial application. The FASB decided to not permit a full retrospective transition approach. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 clarifies how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The update requires retrospective application to all periods presented but may be applied prospectively if retrospective application is impracticable. The Company is currently evaluating the impact of the adoption of the standard on the its financial statements and disclosures. In November 2016, the FASB issued ASU "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). ASU 2016-18 requires that the statement of cash flows explain the changes in the combined total of restricted and unrestricted cash balance. Amounts generally described as restricted cash or restricted cash equivalents will be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Further, the ASU requires a reconciliation of balances from the statement of cash flows to the balance sheet in situations in which the balance sheet includes more than one line item of cash, cash equivalents, and restricted cash. Companies will also be disclosing the nature of the restrictions. ASU 2016-18 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In January 2017, the FASB issued ASU "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 will simplify the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. ASU 2017-04 would require applying a one-step quantitative test and recording the amount of goodwill impairment as the excess of the reporting unit's carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. The amendments in ASU 2017-04 are effective for annual or any interim goodwill impairment tests for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. |
Significant Customers |
12 Months Ended |
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Dec. 31, 2016 | |
Significant Customers [Abstract] | |
Significant Customers | SIGNIFICANT CUSTOMERS DHL The Company's largest customer is DHL Network Operations (USA), Inc. and its affiliates ("DHL"). The Company has had long term contracts with DHL since August 2003. Revenues from continuing operations performed for DHL were approximately 34%, 46% and 55% of the Company's consolidated revenues from continuing operations for the years ended December 31, 2016, 2015 and 2014, respectively. The Company’s balance sheets include accounts receivable with DHL of $7.3 million and $9.8 million as of December 31, 2016 and December 31, 2015, respectively. The Company leases Boeing 767 aircraft to DHL under both long-term and short-term lease agreements. Under a separate crew, maintenance and insurance (“CMI”) agreement, the Company operates Boeing 767 aircraft that DHL leases from the Company. Pricing for services provided through the CMI agreement is based on pre-defined fees, scaled for the number of aircraft operated and the number of flight crews provided to DHL for its U.S. network. The Company provides DHL with scheduled maintenance services for aircraft that DHL leases. The Company also provides Boeing 767 and Boeing 757 air cargo transportation services for DHL through additional ACMI agreements in which the Company provides the aircraft, crews, maintenance and insurance under a single contract. Revenues generated from the ACMI agreements are typically based on hours flown. The Company also provides ground equipment, such as power units, air starts and related maintenance services to DHL under separate agreements. Amazon During September 2015, the Company began to operate a trial air network for Amazon Fulfillment Services, Inc. (“AFS”), a subsidiary of Amazon.com, Inc. (“Amazon”). The network grew to five freighter aircraft through first quarter of 2016 and included services for cargo handling and logistical support. On March 8, 2016, the Company entered into an Air Transportation Services Agreement (the “ATSA”) with AFS pursuant to which CAM will lease 20 Boeing 767 freighter aircraft to AFS, including 12 Boeing 767-200 freighter aircraft for a term of five years and eight Boeing 767-300 freighter aircraft for a term of seven years. The ATSA, which has a term of five years, also provides for the operation of those aircraft by the Company’s airline subsidiaries, and the performance of hub and gateway services by the Company's subsidiary LGSTX Services Inc. ("LGSTX"). CAM owns all of the Boeing 767 aircraft that are or will be leased and operated under the ATSA. The ATSA became effective on April 1, 2016. As of December 31, 2016, the Company has leased 14 aircraft to AFS and is obligated to lease six more Boeing 767-300 aircraft to AFS during 2017 to meets its 20 aircraft commitment. Revenues from continuing operations performed for AFS comprised approximately 29% and 5% of the Company's consolidated revenues from continuing operations for the years ending December 31, 2016 and 2015, respectively. The Company’s balance sheets include accounts receivable with AFS of $24.6 million and $10.5 million as of December 31, 2016 and December 31, 2015, respectively. In conjunction with the execution of the ATSA, the Company and Amazon entered into an Investment Agreement and a Stockholders Agreement on March 8, 2016. The Investment Agreement calls for the Company to issue warrants in three tranches which will grant Amazon the right to acquire up to 19.9% of the Company’s outstanding common shares as described below. The first tranche of warrants, issued upon execution of the Investment Agreement, grants Amazon the right to purchase approximately 12.81 million ATSG common shares, with the right to purchase 7.69 million common shares which vested upon issuance on March 8, 2016 and the right to purchase the remaining 5.12 million common shares, vesting as the Company delivers additional aircraft leased under the ATSA, or as the Company achieves specified revenue targets in connection with the ATSA. The second tranche of warrants grants Amazon a right to purchase approximately 1.59 million ATSG common shares, and will be issued on March 8, 2018. The third tranche of warrants will be issued on September 8, 2020. The third tranche of warrants will grant Amazon the right to purchase such additional number of ATSG common shares as is necessary to bring Amazon’s ownership to 19.9% of the Company’s pre-transaction outstanding common shares measured on a GAAP-diluted basis, adjusted for share issuances and repurchases by the Company following the date of the Investment Agreement and after giving effect to the warrants granted. The exercise price of the warrants will be $9.73 per share, which represents the closing price of ATSG’s common shares on February 9, 2016. Each of the three tranches of warrants will be exercisable in accordance with its terms through March 8, 2021. The Company anticipates making available the common shares required for the underlying warrants through a combination of share repurchases and the issuance of additional shares. The Company’s accounting for the warrants has been determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments. The warrants issued to Amazon as of March 8, 2016, were recorded to stockholders equity, having a fair value of $4.89 per share. At that time, the fair value of the 7.69 million vested warrants issued to Amazon was recorded as a lease incentive asset and is being amortized against revenues over the duration of the aircraft leases. On May 12, 2016, the Company’s stockholders approved an amendment to the Certificate of Incorporation of the Company at the annual meeting of stockholders to increase the number of authorized common shares and to approve the warrants in full as required under the rules of the Nasdaq Global Select Market. The stockholders' approval enabled features of the warrants that required the vested warrants of the first tranche and the warrants of the second and third tranches to be classified as financial instruments as of May 12, 2016. Accordingly, the fair value of those warrants was measured and classified in liabilities on that date. Since May 12, 2016, 1.3 million additional warrants vested in conjunction with the execution of two aircraft leases. As of December 31, 2016, the Company's liabilities reflected 11.06 million warrants having a fair value of $8.09 per share. During 2016, the re-measurements of the warrants to fair value resulted in a non-operating loss of $19.1 million before the effect of income taxes. As of December 31, 2016, an additional 3.8 million warrants are expected to vest as AFS leases additional aircraft from the Company. The Company's earnings in future periods will be impacted by the number of warrants granted, the re-measurements of warrant fair value, amortizations of the lease incentive asset and the related income tax effects. For income tax calculations, the value and timing of related tax deductions will differ from the guidance described above for financial reporting. U.S. Military A substantial portion of the Company's revenues are also derived from the U.S. Military. The U.S. Military awards flights to U.S. certificated airlines through annual contracts and through temporary "expansion" routes. Revenues from services performed for the U.S. Military were approximately 12%, 16% and 16% of the Company's total revenues from continuing operations for the years ended December 31, 2016, 2015 and 2014, respectively. The Company's balance sheets included accounts receivable with the U.S. Military of $7.0 million and $9.7 million as of December 31, 2016 and December 31, 2015, respectively. |
Goodwill and Other Intangibles |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangibles | GOODWILL, INTANGIBLES AND EQUITY INVESTMENTS As of December 31, 2016, 2015 and 2014, the goodwill amount for CAM was retested for impairment. To perform the first step of the goodwill impairment test, the Company determined the fair value of CAM using industry market multiples and discounted cash flows utilizing a market-derived rate of return (level 3 fair value inputs). The goodwill included in the CAM segment was not impaired. On December 30, 2016, the Company purchased 100% of the outstanding stock of Pemco World Air Inc., ("Pemco") for cash consideration in a debt-free acquisition. Pemco offers aircraft maintenance, repair, and overhaul services as well as aircraft modification services to airlines. The Company intends to operate Pemco as a division of its existing aircraft maintenance businesses and it is expected to help grow the Company's revenues. The purchase price has been allocated to tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. The excess purchase price over the estimated fair value of net assets acquired was recorded as goodwill and reflects the strategic value of marketing Pemco's aircraft conversion capabilities and current aircraft hangar operations with the Company's air transportation solutions. Identified intangible assets include Supplemental Type Certificates ("STCs") granting approval by FAA for Pemco to market and complete certain aircraft modifications. The Company is in process of refining its estimates of certain assets including goodwill and intangible assets, therefore the allocation of purchase price is preliminary at this time. The carrying amounts of goodwill are as follows (in thousands):
The Company's acquired intangible assets are as follows (in thousands):
The airline certificates have an indefinite life and therefore are not amortized. The Company recorded intangible amortization expense of $0.3 million, $0.3 million and $0.3 million for the years ending December 31, 2016, 2015 and 2014, respectively. The Company amortizes finite-lived intangibles assets, including customer relationship and STC intangibles, over 4 to 7 years. Estimated amortization expense for the next five years is $1.2 million, $1.2 million, $1.2 million, $1.1 million and $0.3 million. In January 2014, the Company acquired a 25 percent equity interest in West Atlantic AB of Gothenburg, Sweden ("West"). West, through its two airlines, Atlantic Airlines Ltd. and West Air Sweden AB, operates a fleet of aircraft on behalf of European regional mail carriers and express logistics providers. The airlines operate a combined fleet of British Aerospace ATPs, Bombardier CRJ-200-PFs, and Boeing 767 and 737 aircraft. West leases three Boeing 767 aircraft from the Company. The Company’s carrying value of West was $9.9 million and $13.1 million at December 31, 2016 and 2015, respectively, including $5.5 million of excess purchase price over the Company's fair value of West's nets assets in January of 2014. The carrying value is reflected in “Other Assets” in the Company’s consolidated balance sheets as of December 31, 2016 and 2015. Stock warrants issued to a lessee (see Note B) as an incentive are recorded as a lease incentive asset using their fair value at the time that the lessee has met its performance obligation and amortized against revenues over the duration of related aircraft leases. The Company's lease incentive granted to the lessee was as follows (in thousands):
The lease incentive began to amortize in April 2016, with the commencement of certain aircraft leases. Based on vested warrants as of December 31, 2016, the Company expects to record amortization, as a reduction to the lease revenue, of $9.1 million, $9.9 million, $9.9 million, $9.9 million and $6.9 million for each of the next five years ending December 31, 2021. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s money market funds and interest rate swaps are reported on the Company’s consolidated balance sheets at fair values based on market values from identical or comparable transactions. The fair value of the Company’s money market funds and interest rate swaps are based on observable inputs (Level 2) from comparable market transactions. The use of significant unobservable inputs (Level 3) was not necessary in determining the fair value of the Company’s financial assets and liabilities as of December 31, 2016 and 2015. The fair value of the stock warrant obligation was determined using a Black-Scholes pricing model which considers the Company’s common stock price and various assumptions, such as the volatility of the Company’s common stock, the expected dividend yield, and the risk-free interest rate. At December 31, 2016 each warrant was valued at $8.09 using a risk-free interest rate of 1.7% and a stock volatility of 37.5%, based on the time period corresponding with the expiration period of the warrants (see Note B). The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands):
As a result of lower market interest rates compared to the stated interest rates of the Company’s fixed and variable rate debt obligations, the fair value of the Company’s debt obligations, based on Level 2 observable inputs, was approximately $0.2 million more than the carrying value, which was $458.7 million at December 31, 2016. As of December 31, 2015, the fair value of the Company’s debt obligations was approximately $1.3 million more than the carrying value, which was $317.7 million. The non-financial assets, including goodwill, intangible assets and property and equipment are measured at fair value on a non-recurring basis. |
Property and Equipment |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | PROPERTY AND EQUIPMENT The Company's property and equipment consists primarily of cargo aircraft, aircraft engines and other flight equipment. Property and equipment, to be held and used, is summarized as follows (in thousands):
CAM owned aircraft with a carrying value of $524.3 million and $369.2 million that were under leases to external customers as of December 31, 2016 and 2015, respectively. Minimum future lease payments for aircraft and equipment leased to external customers as of December 31, 2016 is scheduled to be $80.2 million, $77.6 million, $45.2 million, $28.5 million and $17.1 million for each of the next five years ending December 31, 2021. |
Debt Obligations |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | DEBT OBLIGATIONS Long term obligations consisted of the following (in thousands):
The Company executed a syndicated credit agreement ("Senior Credit Agreement") in May 2011 which includes an unsubordinated term loan and a revolving credit facility. On May 31, 2016, the Company executed an amendment to the Senior Credit Agreement (the "Sixth Credit Amendment"). The Sixth Credit Amendment extended the maturity of the term loan and revolving credit facility to May 30, 2021, increased the capacity of the Revolving credit facility by $100.0 million to $425.0 million and increased the accordion feature such that the Company can now draw up to an additional $100.0 million subject to the lenders' consent. Under the terms of the Senior Credit Agreement, the Company is required to maintain collateral coverage equal to 150% of the outstanding balances of the term loan and the maximum capacity of revolving credit facility or 175% of the outstanding balance of the term loan and the total funded revolving credit facility, whichever is less. The minimum collateral coverage which must be maintained is 50% of the outstanding balance of the term loan plus the revolving credit facility commitment which was $425.0 million. The revolving credit facility has permitted additional indebtedness of $150.0 million. Each year, through May 6, 2019, the Company may request a one year extension of the final maturity date, subject to the lenders' consent. The balances of the unsubordinated term loan are net of debt issuance costs of $0.6 million and $0.5 million for the years ended December 31, 2016 and 2015, respectively. Under the terms of the Senior Credit Agreement, interest rates are adjusted quarterly based on the Company's earnings before interest, taxes, depreciation and amortization expenses ("EBITDA"), its outstanding debt level and prevailing LIBOR or prime rates. At the Company's current debt-to-EBITDA ratio, the LIBOR based financing for the unsubordinated term loan and revolving credit facility bear a variable interest rate of 2.77% and 2.77%, respectively. The Senior Credit Agreement provides for the issuance of letters of credit on the Company's behalf. As of December 31, 2016, the unused revolving credit facility totaled $61.5 million, net of draws of $355.0 million and outstanding letters of credit of $8.5 million. The aircraft loans are collateralized by four aircraft, and amortize monthly with a balloon payment of approximately 20% with maturities between 2017 and early 2018. Interest rates range from 6.74% to 7.06% per annum payable monthly. The scheduled annual principal payments on long term debt, as of December 31, 2016, for the next five years are as follows (in thousands):
The Senior Credit Agreement is collateralized by certain of the Company's Boeing 767 and 757 aircraft that are not collateralized under aircraft loans. The Senior Credit Agreement contains covenants including, among other things, limitations on certain additional indebtedness, guarantees of indebtedness, as well as a total debt to EBITDA ratio and a fixed charge coverage ratio. The Senior Credit Agreement stipulates events of default, including unspecified events that may have material adverse effects on the Company. If an event of default occurs, the Company may be forced to repay, renegotiate or replace the Senior Credit Agreement. The Senior Credit Agreement limits the amount of dividends the Company can pay and the amount of common stock it can repurchase to $75.0 million during any calendar year, provided the Company's total debt to EBITDA ratio is under 2.75 times, after giving effect to the dividend or repurchase. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases portions of the air park in Wilmington, Ohio, under lease agreements with a regional port authority, the terms of which expire in May of 2019 and June of 2036 with options to extend the leases. The leased facilities include corporate offices, 310,000 square feet of maintenance hangars and a 100,000 square foot component repair shop at the air park. ABX also has the non-exclusive right to use the airport, which includes one active runway, taxi ways and ramp space. The Company also leases and operates a 311,500 square foot, two hangar aircraft maintenance complex in Tampa, Florida. Additionally, the Company leases certain equipment and airport facilities, office space, maintenance facilities at locations outside of the airpark in Wilmington. The future minimum lease payments of the Company as of December 31, 2016 are scheduled below (in thousands):
Purchase Commitments The Company has agreements with Israel Aerospace Industries Ltd. ("IAI") for the conversion of Boeing 767 passenger aircraft into a standard configured freighter aircraft. The conversions primarily consist of the installation of a standard cargo door and loading system. At December 31, 2016, the Company was committed to acquire and modify additional Boeing 767-300 passenger aircraft into standard freighter aircraft. In addition to five aircraft that were in the modification process at December 31, 2016, the Company is committed to induct 12 more aircraft into the freighter modification process through 2018. As of December 31, 2016, the Company's commitments to complete the conversions of aircraft it owns or has the contracts to purchase totaled $237.7 million. Additionally, the Company could incur a cancellation fee for part kits for any aircraft that is not inducted into conversion at IAI. Guarantees and Indemnifications Certain leases and agreements of the Company contain guarantees and indemnification obligations to the lessor, or one or more other parties that are considered reasonable and customary (e.g. use, tax and environmental indemnifications), the terms of which range in duration and are often limited. Such indemnification obligations may continue after expiration of the respective lease or agreement. Other In September 2015, the Company entered into a joint venture agreement to establish an express cargo airline serving multiple destinations within the People's Republic of China (including Hong Kong, Macau and Taiwan) and surrounding countries. The airline will be based in mainland China with registered capital of 400 million RMB (US$63 million). It will be established pending the receipt of required governmental approvals and plans to commence flight operations in 2017. The Company may offer the new airline aircraft leases to build its fleet. The Company expects to contribute $15 million to the joint venture over the next twelve months. In addition to the foregoing matters, the Company is also currently a party to legal proceedings, including FAA enforcement actions, in various federal and state jurisdictions arising out of the operation of the Company's business. The amount of alleged liability, if any, from these proceedings cannot be determined with certainty; however, the Company believes that its ultimate liability, if any, arising from the pending legal proceedings, as well as from asserted legal claims and known potential legal claims which are probable of assertion, taking into account established accruals for estimated liabilities, should not be material to our financial condition or results of operations. Employees Under Collective Bargaining Agreements As of December 31, 2016, the flight crewmember employees of ABX and ATI and flight attendant employees of ATI were represented by the labor unions listed below:
In addition, the Company has approximately 30 flight attendants that are represented by a recognized labor unit and are beginning to negotiate a collective bargaining agreement. |
Pension and Other Post-Retirement Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Post-Retirement Benefit Plans | PENSION AND OTHER POST-RETIREMENT BENEFIT PLANS Defined Benefit and Post-retirement Healthcare Plans ABX sponsors a qualified defined benefit pension plan for ABX crewmembers and a qualified defined benefit pension plan for a major portion of its other ABX employees that meet minimum eligibility requirements. ABX also sponsors non-qualified defined benefit pension plans for certain employees. These non-qualified plans are unfunded. Employees are no longer accruing benefits under any of the defined benefit pension plans. ABX also sponsors a post-retirement healthcare plan for its ABX employees, which is unfunded. Benefits for covered individuals terminate upon reaching age 65 under the post-retirement healthcare plans. The accounting and valuation for these post-retirement obligations are determined by prescribed accounting and actuarial methods that consider a number of assumptions and estimates. The selection of appropriate assumptions and estimates is significant due to the long time period over which benefits will be accrued and paid. The long term nature of these benefit payouts increases the sensitivity of certain estimates of our post-retirement costs. The assumptions considered most sensitive in actuarially valuing ABX’s pension obligations and determining related expense amounts are discount rates and expected long term investment returns on plan assets. Additionally, other assumptions concerning retirement ages, mortality and employee turnover also affect the valuations. Actual results and future changes in these assumptions could result in future costs significantly higher than those recorded in our results of operations. ABX measures plan assets and benefit obligations as of December 31 of each year. Information regarding ABX’s sponsored defined benefit pension plans and post-retirement healthcare plans follow below. The accumulated benefit obligation reflects pension benefit obligations based on the actual earnings and service to-date of current employees. Effective December 31, 2016, ABX modified its unfunded, non-pilot retiree medical plan to terminate benefits to all participants. Retired participants were directed to public healthcare exchanges for more flexible and lower cost alternatives. As a result, ABX settled $0.6 million of retiree medical obligations. Funded Status (in thousands):
Components of Net Periodic Benefit Cost ABX’s net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for the years ended December 31, 2016, 2015 and 2014, are as follows (in thousands):
During 2014, ABX offered vested, former employee participants of the qualified pension plan and vested employee participants of the crewmembers qualified pension plan a one-time option to settle their pension benefit with the Company through a single payment or a nonparticipating annuity contract. As a result, ABX settled $98.7 million of pension obligations in December of 2014 from the pension plans assets. The settlement resulted in pre tax charges of $6.7 million to continued operations and $5.0 million to discontinued operations for 2014 due to the reclassification of $11.7 million of pre-tax losses from accumulated other comprehensive loss. Unrecognized Net Periodic Benefit Expense The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense at December 31 are as follows (in thousands):
The following table sets forth the amounts of unrecognized net actuarial loss and (gain) recorded in accumulated other comprehensive loss that is expected to be recognized as components of net periodic benefit expense during 2017 (in thousands):
Assumptions Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows:
Net periodic benefit cost was based on the discount rate assumptions at the end of the previous year. The discount rate used to determine post-retirement healthcare obligations was 3.55% for pilots at December 31, 2016. The discount rate used to determine post-retirement healthcare obligations was 3.65% for pilots and 3.35% for non-pilots at December 31, 2015. The discount rate used to determine post-retirement healthcare obligations was 3.35% for pilots and 3.30% for non-pilots at December 31, 2014. Post-retirement healthcare plan obligations have not been funded. The Company's retiree healthcare contributions have been fixed for each participant, accordingly, healthcare cost trend rates do not effect the post-retirement healthcare obligations. Plan Assets The weighted-average asset allocations by asset category are as shown below:
ABX uses an investment management firm to advise it in developing and executing an investment policy. The portfolio is managed with consideration for diversification, quality and marketability. The investment policy permits the following ranges of asset allocation: equities – 15% to 35%; fixed income securities – 60% to 80%; real estate – 0% to 5%; cash – 0% to 5%. Except for U.S. Treasuries, no more than 10% of the fixed income portfolio and no more than 5% of the equity portfolio can be invested in securities of any single issuer. The overall expected long term rate of return was developed using various market assumptions in conjunction with the plans’ targeted asset allocation. The assumptions were based on historical market returns. Cash Flows In 2016 and 2015, the Company made contributions to its defined benefit plans of $6.3 million and $6.2 million, respectively. The Company estimates that its contributions in 2017 will be approximately $4.5 million for its defined benefit pension plans and $0.5 million for its post-retirement healthcare plans. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the respective plans as follows (in thousands):
Fair Value Measurements The pension plan assets are valued at fair value. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy. Common Trust Funds—Common trust funds are composed of shares or units in non-publicly traded funds whereby the underlying assets in these funds (cash, cash equivalents, fixed income securities and equity securities) are publicly traded on exchanges and price quotes for the assets held by these funds are readily available. Holdings of common trust funds are classified as Level 2 investments. Corporate Stock—This investment category consists of common and preferred stock issued by domestic and international corporations that are regularly traded on exchanges and price quotes for these shares are readily available. These investments are classified as Level 1 investments. Mutual Funds—Investments in this category include shares in registered mutual funds, unit trust and commingled funds. These funds consist of domestic equity, international equity and fixed income strategies. Investments in this category that are publicly traded on an exchange and have a share price published at the close of each business day are classified as Level 1 investments and holdings in the other mutual funds are classified as Level 2 investments. Fixed Income Investments—Securities in this category consist of U.S. Government or Agency securities, state and local government securities, corporate fixed income securities or pooled fixed income securities. Securities in this category that are valued utilizing published prices at the close of each business day are classified as Level 1 investments. Those investments valued by bid data prices provided by independent pricing sources are classified as Level 2 investments. The pension plan assets measured at fair value on a recurring basis were as follows (in thousands):
Investments that were measured at NAV per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. These investments include hedge funds, private equity and real estate funds. Management’s estimates are based on information provided by the fund managers or general partners of those funds. Real Estate—The real estate investment in a commingled trust account consists of publicly traded real estate investment trusts and collateralized mortgage backed securities as well as private market direct property investments. The valuations for the holdings in these investments are not based on readily observable inputs. These assets have been valued using NAV as a practical expedient. Hedge Funds and Private Equity—These investments are not readily tradeable and have valuations that are not based on readily observable data inputs. The fair value of these assets is estimated based on information provided by the fund managers or the general partners. These assets have been valued using NAV as a practical expedient. The following table presents investments measured at fair value based on NAV per share as a practical expedient:
(1) Quarterly - hedge funds (2) None - private equity (3) Monthly Defined Contribution Plans The Company sponsors defined contribution capital accumulation plans (401k) that are funded by both voluntary employee salary deferrals and by employer contributions. Expenses for defined contribution retirement plans were $7.1 million, $5.7 million and $5.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES At December 31, 2016, the Company had cumulative net operating loss carryforwards (“NOL CFs”) for federal income tax purposes of approximately $40.2 million, which begin to expire in 2031 if not utilized before then. The deferred tax asset balance includes $1.8 million net of a $0.2 million valuation allowance related to state NOL CFs, which have remaining lives ranging from one to twenty years. These NOL CFs are attributable to excess tax deductions related primarily to the accelerated tax depreciation of fixed assets. At December 31, 2016 and 2015, the Company determined that, based upon projections of taxable income, it was more likely than not that the NOL CF’s will be realized prior to their expiration, accordingly, no allowance against these deferred tax assets was recorded. The significant components of the deferred income tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):
The following summarizes the Company’s income tax provisions (benefits) (in thousands):
The reconciliation of income tax from continuing operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows:
The reconciliation of income tax from discontinued operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows:
The Company files income tax returns in the U.S. federal jurisdiction and various international, state and local jurisdictions. The returns may be subject to audit by the Internal Revenue Service (“IRS”) and other jurisdictional authorities. International returns consist primarily of disclosure returns where the Company is covered by the sourcing rules of U.S. international treaties. The Company recognizes the impact of an uncertain income tax position in the financial statements if that position is more likely than not of being sustained on audit, based on the technical merits of the position. At December 31, 2016, 2015 and 2014, the Company's unrecognized tax benefits were $0.0 million, $0.0 million and $0.0 million respectively. Accrued interest and penalties on tax positions are recorded as a component of interest expense. Interest and penalties expense was immaterial for 2016, 2015 and 2014. The Company began to file, effective in 2008, federal tax returns under a common parent of the consolidated group that includes ABX and all the wholly-owned subsidiaries, except for Pemco which was acquired on December 30, 2016. The returns for 2015, 2014 and 2013 related to the consolidated group remain open to examination. The consolidated federal tax returns prior to 2013 remain open to federal examination only to the extent of net operating loss carryforwards carried over from or utilized in those years. Pemco filed returns on its own behalf prior to its acquisition by the Company. State and local returns filed for 2005 through 2015 are generally also open to examination by their respective jurisdictions, either in full or limited to net operating losses. |
Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company's Senior Credit Agreement requires the Company to maintain derivative instruments for protection from fluctuating interest rates, for at least fifty percent of the outstanding balance of the term loan. Accordingly, the Company entered into an interest rate swaps. The Company entered into a new interest rate swap in February 2016 having an initial value of $48.8 million and a forward start date of May 9, 2016. Under this swap, the Company pays a fixed rate of 1.09% and receives a floating rate that resets monthly based on LIBOR. Under the swap expiring in 2017, the Company pays a fixed rate of 1.1825% and receives a floating rate that resets monthly based on LIBOR. The outstanding interest rate swaps are not designated as hedges for accounting purposes. The effects of future fluctuations in LIBOR interest rates on derivatives held by the Company will result in the recording of unrealized gains and losses into the statement of operations. The Company recorded net gains on derivatives of $1.0 million, $0.9 million and $1.1 million for the years ending December 31, 2016, 2015 and 2014, respectively. The liability for outstanding derivatives is recorded in other liabilities and in accrued expenses. The table below provides information about the Company’s interest rate swaps (in thousands):
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Accumulated Other Comprehensive Income (Loss) |
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Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) includes the following items by components for the years ended December 31, 2016, 2015 and 2014 (in thousands):
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Stock-Based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company's Board of Directors has granted stock incentive awards to certain employees and board members pursuant to a long term incentive plan which was approved by the Company's stockholders in May 2005 and in May 2015. Employees have been awarded non-vested stock units with performance conditions, non-vested stock units with market conditions and non-vested restricted stock. The restrictions on the non-vested restricted stock awards lapse at the end of a specified service period, which is typically approximately three years from the date of grant. Restrictions could lapse sooner upon a business combination, death, disability or after an employee qualifies for retirement. The non-vested stock units will be converted into a number of shares of Company stock depending on performance and market conditions at the end of a specified service period, lasting approximately three years. The performance condition awards will be converted into a number of shares of Company stock based on the Company's average return on invested capital during the service period. Similarly, the market condition awards will be converted into a number of shares depending on the appreciation of the Company's stock compared to the NASDAQ Transportation Index. Board members were granted time-based awards with vesting periods of approximately six or twelve months. The Company expects to settle all of the stock unit awards by issuing new shares of stock. The table below summarizes award activity.
The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company was $14.39, $9.22 and $7.44 for 2016, 2015 and 2014, respectively, the fair value of the Company’s stock on the date of grant. The average grant-date fair value of each market condition award granted was $19.65, $10.99 and $7.83 for 2016, 2015 and 2014, respectively. The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2016, 2015 and 2014 using daily stock prices and using the following variables:
For the years ended December 31, 2016, 2015 and 2014, the Company recorded expense of $3.2 million, $2.5 million and $2.9 million, respectively, for stock incentive awards. At December 31, 2016, there was $3.3 million of unrecognized expense related to the stock incentive awards that is expected to be recognized over a weighted-average period of 1.4 years. As of December 31, 2016, none of the awards were convertible, 338,919 units of the Board members time-based awards had vested and none of the outstanding shares of the restricted stock had vested. These awards could result in a maximum number of 1,256,394 additional outstanding shares of the Company’s common stock depending on service, performance and market results through December 31, 2018. |
Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE Earnings per Share The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts):
Basic weighted average shares outstanding for purposes of basic earnings per share are less than the shares outstanding due to 327,700 shares, 348,600 shares and 435,600 shares of restricted stock for 2016, 2015 and 2014, respectively, which are accounted for as part of diluted weighted average shares outstanding in diluted earnings per share. The determination of diluted earnings per share requires the exclusion of the fair value re-measurement of the stock warrants recorded as a liability (see Note B), if such warrants have a anti-dilutive effect on earnings per share. The dilutive effect of the weighted-average shares outstanding was calculated using the treasury method. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants by the average stock price during the period and comparing that amount with the number of warrants outstanding. The number of equivalent shares that were not included in weighted average shares outstanding assuming dilution, because their effect would have been anti-dilutive, was 1.9 million, eleven thousand and none at December 31, 2016, 2015 and 2014, respectively. The underlying warrants as of December 31, 2016, could result in 11.1 million additional shares of the Company's common stock if the warrants are settled by tendering cash. Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. On July 5, 2016 the Company purchased 3,825,554 shares of the Company's common stock from its largest shareholder, Red Mountain Partners, L.P., a fund that is affiliated with Red Mountain Capital Partners, LLC (“Red Mountain”), a related party, for an aggregate purchase price of $50.0 million. The purchase price was previously negotiated based on the closing price of the shares on June 20, 2016. The purchase price of $13.07 per share represents a large block discount of 2.5% and 6.2%, respectively, from the volume-weighted average prices of $13.41 for the 10 trading days and $13.93 for the 60 trading days prior to June 20, 2016. |
Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | SEGMENT INFORMATION The Company operates in two reportable segments. The CAM segment consists of the Company's aircraft leasing operations and its segment earnings includes an allocation of interest expense. The ACMI Services segment consists of the Company's airline operations, including CMI agreements as well as ACMI and charter service agreements that the Company has with other customers. Due to the similarities among the Company's airline operations, the airline operations are aggregated into a single reportable segment, ACMI Services. The Company's other activities, which include mail and parcel handling services, as well as hub managements services for the USPS and AFS, the sale of aircraft parts, aircraft maintenance services, aircraft modifications, facility and ground equipment services, the sales of aviation fuel and other services, are not large enough to constitute reportable segments and are combined in “All other” with inter-segment profit eliminations. Inter-segment revenues are valued at arms-length market rates. Cash and cash equivalents are reflected in Assets - All other below. The Company's segment information from continuing operations is presented below (in thousands):
The Company's assets are presented below by segment (in thousands):
Interest expense allocated to CAM was $10.6 million, $9.4 million and $11.8 million for the years ending December 31, 2016, 2015 and 2014, respectively. During 2016, the Company had capital expenditures of $30.8 million and $227.9 million for the ACMI Services and CAM segments, respectively. Entity-Wide Disclosures The Company had revenues of approximately $168.2 million, $206.5 million and $205.0 million for 2016, 2015 and 2014, respectively, derived from aircraft leases in foreign countries or routes with flights departing from or arriving in foreign countries. All revenues from the CMI agreement with DHL and the ATSA agreement with AFS are attributed to U.S. operations. As of December 31, 2016 and 2015, the Company had 12 and 17 aircraft, respectively, deployed outside of the United States. CAM's revenues include $17.4 million, $12.6 million and $11.5 million for 2016, 2015 and 2014, respectively, for engine and other maintenance related payments from customers. The Company's external customers revenues from other activities for the years ended December 31, 2016, 2015 and 2014 are presented below (in thousands):
Mail and package handling services include mail sorting, parcel handling and logistical support to the USPS at five facilities and similar services at certain AFS hub and gateway locations in the U.S. None of these operations are large enough to constitute a reportable segment. |
Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS The Company's results of discontinued operations consist primarily of pension benefits, adjustments to workers compensation liabilities and other benefits for former employees previously associated with ABX's former freight sorting and aircraft fueling services provided to DHL through 2009. ABX sponsors defined benefit plans for retirees that include the former employees of the hub operations. Additionally, ABX is self-insured for medical coverage and workers' compensation. The Company may incur expenses and cash outlays in the future related to pension obligations, reserves for medical expenses and wage loss for former employees. Carrying amounts of significant assets and liabilities of the discontinued operations are below (in thousands):
The revenues and pre-tax earnings of the discontinued operations are below (in thousands):
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Quarterly Results (Unaudited) |
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Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Results | QUARTERLY RESULTS (Unaudited) The following is a summary of quarterly results of operations (in thousands, except per share amounts):
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Summary of Financial Statement Preparation and Significant Accounting Policies (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||
Pension and Other Postretirement Plans, Policy [Policy Text Block] | Pension and Post-Retirement Benefits The funded status of the Company's defined benefits pension or post-retirement health care plan is the difference between the fair value of plan assets and the accumulated benefit obligations to plan participants. The over funded or underfunded status of a plan is reflected in the consolidated balance sheet as an asset for over funded plans, or as a liability for underfunded plans. The funded status is ordinarily remeasured annually at year end using the fair value of plans assets, market based discount rates and actuarial assumptions. Changes in the funded status of the plans as a result of remeasuring plan assets and benefit obligations, are recorded to accumulated comprehensive loss and amortized into operating expense using a corridor approach. The Company's corridor approach amortizes variances in plan assets and benefit obligations that are a result of the previous measurement assumptions into earnings when the net deferred variances exceed 10% of the greater of the market value of plan assets or the benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining service period to retirement date of active plan participants. Costs adjustments for plan amendments are also deferred and amortized over the expected working life or the life expectancy of plan participants. |
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Security and Maintenance Deposits [Table Text Block] | Security and Maintenance Deposits The Company's customer leases typically obligate the lessee to maintain the Company's aircraft in compliance with regulatory standards for flight and aircraft maintenance. The Company may require an aircraft lessee to pay a security deposit or provide a letter of credit until the expiration of the lease. Additionally, the Company's leases may require a lessee to make monthly payments toward future expenditures for scheduled heavy maintenance events. The Company records security and maintenance deposits in other liabilities. If a lease requires monthly maintenance payments, the Company is typically required to reimburse the lessee for costs they incur for scheduled heavy maintenance events after completion of the work and receipt of qualifying documentation. Reimbursements to the lessee are recorded against the previously paid maintenance deposits. |
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Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements include the accounts of Air Transport Services Group, Inc. and its wholly-owned subsidiaries. Investments in an affiliate in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Using the equity method, the Company’s share of a nonconsolidated affiliate's income or loss is recognized in the consolidated statement of earnings and cumulative post-acquisition changes in the investment are adjusted against the carrying amount of the investment. Inter-company balances and transactions are eliminated. The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. Estimates and assumptions are used to record allowances for uncollectible amounts, self-insurance reserves, spare parts inventory, depreciation and impairments of property, equipment, goodwill and intangibles, stock warrants, post-retirement obligations, income taxes, contingencies and litigation. Changes in estimates and assumptions may have a material impact on the consolidated financial statements. |
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Cash and Cash Equivalents | Cash and Cash Equivalents The Company classifies short-term, highly liquid investments with maturities of three months or less at the time of purchase as cash and cash equivalents. These investments, consisting of money market funds, are recorded at cost, which approximates fair value. Substantially all deposits of the Company’s cash are held in accounts that exceed federally insured limits. The Company deposits cash in common financial institutions which management believes are financially sound. |
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Accounts Receivable and Allowance for Uncollectible Accounts | Accounts Receivable and Allowance for Uncollectible Accounts The Company's accounts receivable is primarily due from its significant customers (see Note B), other airlines, the U.S. Postal Services ("USPS"), delivery companies and freight forwarders. The Company performs a quarterly evaluation of the accounts receivable and the allowance for uncollectible accounts by reviewing specific customers' recent payment history, growth prospects, financial condition and other factors that may impact a customer's ability to pay. The Company establishes an allowance for uncollectible accounts for probable losses due to a customer's potential inability or unwillingness to make contractual payments. Account balances are written off against the allowance when the Company ceases collection efforts. |
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Inventory | Inventory The Company’s inventory is comprised primarily of expendable aircraft parts and supplies used for aircraft maintenance. Inventory is generally charged to expense when issued for use on a Company aircraft. The Company values its inventory of aircraft parts and supplies at weighted-average cost and maintains a related obsolescence reserve. The Company records an obsolescence reserve on a base stock of inventory for each fleet type. The amortization of base stock for the obsolescence reserve corresponds to the expected life of each fleet type. Additionally, the Company monitors the usage rates of inventory parts and segregates parts that are technologically outdated or no longer used in its fleet types. Slow moving and segregated items are actively marketed and written down to their estimated net realizable values based on market conditions. Management analyzes the inventory reserve for reasonableness at the end of each quarter. That analysis includes consideration of the expected fleet life, amounts expected to be on hand at the end of a fleet life, and recent events and conditions that may impact the usability or value of inventory. Events or conditions that may impact the expected life, usability or net realizable value of inventory include additional aircraft maintenance directives from the FAA, changes in DOT regulations, new environmental laws and technological advances. |
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Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company assesses, during the fourth quarter of each year, the carrying value of goodwill. The first step of the assessment is the estimation of fair value of each reporting unit, which is compared to the carrying value. If step one indicates that impairment potentially exists, a second step is performed to measure the amount of impairment, if any. Goodwill impairment exists when the implied fair value of goodwill is less than its carrying value. The Company also conducts impairment assessments of goodwill, indefinite-lived intangible assets and finite-lived intangible assets whenever events or changes in circumstance indicate an impairment may have occurred. Finite-lived intangible assets are amortized over their estimated useful economic lives. |
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Property and Equipment | Property and Equipment Property and equipment held for use is stated at cost, net of any impairment recorded. The cost and accumulated depreciation of disposed property and equipment are removed from the accounts with any related gain or loss reflected in earnings from operations. Depreciation of property and equipment is provided on a straight-line basis over the lesser of the asset’s useful life or lease term. Depreciable lives are summarized as follows:
The Company periodically evaluates the useful lives, salvage values and fair values of property and equipment. Acceleration of depreciation expense or the recording of significant impairment losses could result from changes in the estimated useful lives of assets due to a number of reasons, such as excess aircraft capacity or changes in regulations governing the use of aircraft. Aircraft and other long-lived assets are tested for impairment when circumstances indicate the carrying value of the assets may not be recoverable. To conduct impairment testing, the Company groups assets and liabilities at the lowest level for which identifiable cash flows are largely independent of cash flows of other assets and liabilities. For assets that are to be held and used, impairment is recognized when the estimated undiscounted cash flows associated with the asset group is less than the carrying value. If impairment exists, an adjustment is made to write the assets down to fair value, and a loss is recorded as the difference between the carrying value and fair value. Fair values are determined considering quoted market values, discounted cash flows or internal and external appraisals, as applicable. For assets held for sale, impairment is recognized when the fair value less the cost to sell the asset is less than the carrying value. The Company’s accounting policy for major airframe and engine maintenance varies by subsidiary and aircraft type. The costs for ABX's Boeing 767-200 airframe maintenance, which is the majority of the Company's aircraft fleet, are expensed as they are incurred. The costs of major airframe maintenance for the Company's other aircraft are capitalized and amortized over the useful life of the overhaul. Many of the Company's General Electric CF6 engines that power the Boeing 767-200 aircraft are maintained under “power by the hour” and "power by the cycle" agreements with an engine maintenance provider. Under these agreements, the engines are maintained by the service provider for a fixed fee per flight hour and cycle; accordingly, the cost of engine maintenance is generally expensed as flights occur. Maintenance for the airlines’ other aircraft engines, including Boeing 767-300 and Boeing 757 aircraft, are typically contracted to service providers on a time and material basis and the costs of those engine overhauls are capitalized and amortized over the useful life of the overhaul. In the event the Company leases aircraft from external lessors, the Company may be required to make periodic payments to the lessor under certain aircraft leases for future maintenance events such as engine overhauls and major airframe maintenance. Such payments are recorded as deposits until drawn for qualifying maintenance costs. The maintenance costs are expensed or capitalized in accordance with the airline's accounting policy for major airframe and engine maintenance. The Company evaluates at the balance sheet date, whether it is probable that an amount on deposit will be returned by the lessor to reimburse the costs of the maintenance activities. When an amount on deposit is less than probable of being returned, it is recognized as additional maintenance expense. |
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Capitalized Interest | Capitalized Interest Interest costs incurred while aircraft are being modified are capitalized as an additional cost of the aircraft until the date the asset is placed in service. |
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Discontinued Operations | Discontinued Operations A business component whose operations are discontinued is reported as discontinued operations if the cash flows of the component have been eliminated from the ongoing operations of the Company and represents a strategic shift that had a major impact on the Company. The results of discontinued operations are aggregated and presented separately in the consolidated statements of operations. |
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Self-Insurance | Self-Insurance The Company is self-insured for certain workers’ compensation, employee healthcare, automobile, aircraft, and general liability claims. The Company maintains excess claim coverage with common insurance carriers to mitigate its exposure to large claim losses. The Company records a liability for reported claims and an estimate for incurred claims that have not yet been reported. Accruals for these claims are estimated utilizing historical paid claims data and recent claims trends. Other liabilities included $18.7 million and $23.3 million at December 31, 2016 and December 31, 2015, respectively, for self-insured reserves. Changes in claim severity and frequency could result in actual claims being materially different than the costs accrued. |
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Income Taxes | Income Taxes Income taxes have been computed using the asset and liability method, under which deferred income taxes are provided for the temporary differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities. Deferred taxes are measured using provisions of currently enacted tax laws. A valuation allowance against net deferred tax assets is recorded when it is more likely than not that such assets will not be fully realized. Tax credits are accounted for as a reduction of income taxes in the year in which the credit originates. All deferred income taxes are classified as noncurrent in the statement of financial position. The Company recognizes the benefit of a tax position taken on a tax return, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. An uncertain income tax position is not recognized if it has a less than a 50% likelihood of being sustained. The Company recognizes interest and penalties accrued related to uncertain tax positions in operating expense. |
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Purchase of Common Stock [Policy Text Block] | Purchase of Common Stock The Company's Board of Directors has authorized management to repurchase outstanding common stock of the Company from time to time on the open market or in privately negotiated transactions. The authorization does not require the Company to repurchase a specific number of shares and the Company may terminate the repurchase program at any time. Upon the retirement of common stock repurchased, the excess purchase price over the par value for retired shares of common stock is recorded to additional paid-in-capital. |
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Issuance of Stock Warrants [Policy Text Block] | Stock Warrants The Company’s accounting for warrants issued to a lessee is determined in accordance with the financial reporting guidance for equity-based payments to non-employees and for financial instruments. The warrants issued to lessee are recorded as a lease incentive asset using their fair value at the time that the lessee has met its performance obligation. The lease incentive is amortized against revenues over the duration of related aircraft leases. The unexercised warrants are classified in liabilities and remeasured to fair value at the end of each reporting period, resulting in a non-operating gain or loss. |
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Comprehensive Income | Comprehensive Income Comprehensive income includes net earnings and other comprehensive income or loss. Other comprehensive income or loss results from certain changes in the Company’s liabilities for pension and other post retirement benefits, gains and losses associated with interest rate hedging instruments and fluctuations in currency exchange rates related to the foreign affiliate. |
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Fair Value Information | Fair Value Information Assets or liabilities that are required to be measured at fair value are reported using the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. FASB ASC Topic 820-10 Fair Value Measurements and Disclosures establishes three levels of input that may be used to measure fair value:
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Revenue Recognition | Revenue Recognition Aircraft lease revenues are recognized as operating lease revenues on a straight-line basis over the term of the applicable lease agreements. Revenues generated from airline service agreements are typically recognized based on hours flown or the amount of aircraft and crew resources provided during a reporting period. Certain agreements include provisions for incentive payments based upon on-time reliability. These incentives are typically measured on a monthly basis and recorded to revenue in the corresponding month earned. Revenues for operating expenses that are reimbursed through airline service agreements, including consumption of aircraft fuel, are generally recognized as the costs are incurred. Revenues from charter service agreements are recognized on scheduled and non-scheduled flights when the specific flight has been completed. Revenues from the sale of aircraft parts and engines are recognized when the parts are delivered. Revenues earned and expenses incurred in providing aircraft-related maintenance, repair or technical services are recognized in the period in which the services are completed and delivered to the customer. Revenues derived from sorting parcels are recognized in the reporting period in which the services are performed. Revenue is not recognized until collectibility is reasonably assured. |
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New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, "Improvements to Employee Share-Based Payment Accounting," (“ASU 2016-09”) which addresses several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU 2016-9 is effective for annual reporting periods beginning after December 15, 2016 and earlier adoption is permitted. The new standard requires that an entity recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Under the previous standard, excess tax benefits are recognized in additional paid-in capital and tax deficiencies are recognized either as an offset to accumulated excess tax benefits, or in the income statement. The Company elected to early adopt this standard in the quarter ended March 31, 2016. The impact of the early adoption resulted in the Company recording a tax benefit of $0.7 million within income tax expense for the three months ended March 31, 2016 related to the excess tax benefit on stock incentive awards that settled during the quarter ended March 31, 2016. The tax benefit for the year ended December 31, 2016 was $1.2 million. Prior to adoption of ASU 2016-09, this amount would have been recorded as an increase of additional paid-in capital. The tax benefit for the year ended December 31, 2015 would have been $0.8 million. The Company accounts for forfeitures as they occur. Under ASU 2016-09, excess tax benefits related to employee share-based payments are not reclassified from operating activities to financing activities in the statement of cash flows. The Company applied the effect of ASU 2016-09 to the presentation of excess tax benefits in the statement of cash flows, prospectively. Under ASU 2016-09, cash paid when withholding shares for tax withholding purposes are classified as a financing activity in the statement of cash flows. The Company has applied the effect of this change on prior period statements of cash flows retrospectively. The Company excluded the excess tax benefits from the assumed proceeds available to repurchase shares in the computation of our diluted earnings per share for the year ended December 31, 2016. This increased the diluted weighted average common shares outstanding by 141,364 shares. In May 2014, FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). In April 2016, the FASB issued ASU No. 2016-10, "Revenue from Contracts with Customers, Identifying Performance Obligations and Licensing" clarify the accounting under ASU 2014-09 for licenses of intellectual property and for identifying distinct performance obligations in a contract. ASU 2014-09 is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. ASU 2014-09 also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017 with earlier adoption permitted for reporting periods beginning after December 15, 2016. ASU 2014-09 may be applied using either a full retrospective approach, under which all years included in the financial statements will be presented under the revised guidance, or a modified retrospective approach, under which financial statements will be prepared under the revised guidance for the year of adoption, but not for prior years. Under the latter method, entities would recognize a cumulative catch-up adjustment to the opening balance of retained earnings at the effective date for contracts that still require performance by the entity, and disclose all line items in the year of adoption as if they were prepared under the old revenue guidance. The Company is currently evaluating the methods of adoption allowed by the new standard and the effect the standard is expected to have on the Company's consolidated financial position, results of operations or cash flows and related disclosures. The evaluation includes each of the five steps identified in the ASU 2014-09 revenue recognition model, which are as follows: 1) identify the contract with the customer; 2) identify the performance obligations in the contract; 3) determine the transaction price; 4) allocate the transaction price to the performance obligations; and 5) recognize revenue when (or as) performance obligations are satisfied. The Company's lease contracts within the scope of ASC 840, Leases, are specifically excluded from ASU 2014-09. As the Company completes its evaluation of this new standard, new information may arise that could change the Company's current understanding of the impact to revenue and expense recognized. Additionally, industry activities and other guidance provided by regulators, standards setters, and the accounting profession may affect the Company’s assessment and implementation plans. In April 2015, the FASB issued ASU, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" ("ASU 2015-03"). ASU 2015-03 requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying value of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by ASU 2015-03. The amendments in ASU 2015-03 are effective retrospectively for fiscal years, and interim periods within those years, beginning after December 15, 2015. As a result of the adoption of ASU 2015-03, the amounts of debt issuance costs were reclassified on the Company's balance sheets from other assets to long term debt and were not significant. In July 2015, FASB issued ASU "Inventory (Topic 330): Simplifying the Measurement of Inventory" ("ASU 2015-11"). ASU 2015-11 more closely aligns the measurement of inventory in GAAP with the measurement of inventory in International Financial Reporting Standards ("IFRS"). The amendment in ASU 2015-11 is for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendment should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company does not expect the impact of adopting ASU 2015-11 to be material to the Company's financial statements and related disclosures. In January 2016, the FASB issued an Exposure Draft of a proposed ASU, "Compensation - Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The proposed ASU would require an employer to report the service cost component of retiree benefits in the same line item or items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost would be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. If adopted, the proposed standard would impact the Operating Income subtotal as reported in the Company's Consolidated Statement of Operations by excluding interest expense and investment returns components of retiree benefit expenses. In February 2016, the FASB issued ASU "Leases (Topic 842)" ("ASU 2016-02"), which will require the recognition of right to-use-assets and lease liabilities for leases previously classified as operating leases by lessees. The standard will take effect for annual reporting periods beginning after December 15, 2018, including interim reporting periods. Early application will be permitted for all entities. In addition, the FASB has decided to require a lessee to apply a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements (the date of initial application). The modified retrospective approach would not require any transition accounting for leases that expired before the date of initial application. The FASB decided to not permit a full retrospective transition approach. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15"). ASU 2016-15 clarifies how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The update requires retrospective application to all periods presented but may be applied prospectively if retrospective application is impracticable. The Company is currently evaluating the impact of the adoption of the standard on the its financial statements and disclosures. In November 2016, the FASB issued ASU "Statement of Cash Flows (Topic 230): Restricted Cash" ("ASU 2016-18"). ASU 2016-18 requires that the statement of cash flows explain the changes in the combined total of restricted and unrestricted cash balance. Amounts generally described as restricted cash or restricted cash equivalents will be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Further, the ASU requires a reconciliation of balances from the statement of cash flows to the balance sheet in situations in which the balance sheet includes more than one line item of cash, cash equivalents, and restricted cash. Companies will also be disclosing the nature of the restrictions. ASU 2016-18 is effective for financial statements issued for fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. In January 2017, the FASB issued ASU "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 will simplify the subsequent measurement of goodwill by eliminating the second step from the goodwill impairment test. ASU 2017-04 would require applying a one-step quantitative test and recording the amount of goodwill impairment as the excess of the reporting unit's carrying value over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ASU 2017-04 does not amend the optional qualitative assessment of goodwill impairment. The amendments in ASU 2017-04 are effective for annual or any interim goodwill impairment tests for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of the standard on its financial statements and disclosures. |
Summary of Financial Statement Preparation and Significant Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Depreciable lives are summarized as follows:
Property and equipment, to be held and used, is summarized as follows (in thousands):
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Goodwill and Other Intangibles (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Incentive Intangible [Table Text Block] | The Company's lease incentive granted to the lessee was as follows (in thousands):
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Schedule of Goodwill | The carrying amounts of goodwill are as follows (in thousands):
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Schedule Intangible Assets by Major Class | The Company's acquired intangible assets are as follows (in thousands):
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Fair Value Measurements (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands):
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Property and Equipment (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment | Depreciable lives are summarized as follows:
Property and equipment, to be held and used, is summarized as follows (in thousands):
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Debt Obligations (Tables) |
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Schedule of Long-term Debt Instruments | Long term obligations consisted of the following (in thousands):
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Schedule of Maturities of Long-term Debt | The scheduled annual principal payments on long term debt, as of December 31, 2016, for the next five years are as follows (in thousands):
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Commitments and Contingencies (Tables) |
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Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments of the Company as of December 31, 2016 are scheduled below (in thousands):
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Schedules of Concentration of Risk, by Risk Factor | As of December 31, 2016, the flight crewmember employees of ABX and ATI and flight attendant employees of ATI were represented by the labor unions listed below:
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Pension and Other Post-Retirement Benefit Plans (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Funded Status | Funded Status (in thousands):
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Schedule of Net Benefit Costs | ABX’s net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for the years ended December 31, 2016, 2015 and 2014, are as follows (in thousands):
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Schedule of Net Periodic Benefit Cost Not yet Recognized | The pre-tax amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit expense at December 31 are as follows (in thousands):
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Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year | The following table sets forth the amounts of unrecognized net actuarial loss and (gain) recorded in accumulated other comprehensive loss that is expected to be recognized as components of net periodic benefit expense during 2017 (in thousands):
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Schedule of Assumptions Used | Assumptions used in determining the funded status of ABX’s pension plans at December 31 were as follows:
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Schedule of Allocation of Plan Assets | The pension plan assets measured at fair value on a recurring basis were as follows (in thousands):
The weighted-average asset allocations by asset category are as shown below:
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Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the respective plans as follows (in thousands):
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Schedule of Level Three Defined Benefit Plan Assets Roll Forward | The following table presents investments measured at fair value based on NAV per share as a practical expedient:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The significant components of the deferred income tax assets and liabilities as of December 31, 2016 and 2015 are as follows (in thousands):
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Schedule of Components of Income Tax Expense (Benefit) | The following summarizes the Company’s income tax provisions (benefits) (in thousands):
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Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of income tax from continuing operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows:
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Schedule of Effective Income Tax Rate Reconciliation, Discontinued Operations | The reconciliation of income tax from discontinued operations computed at the U.S. statutory federal income tax rates to effective income tax rates is as follows:
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Derivative Instruments (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | The table below provides information about the Company’s interest rate swaps (in thousands):
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Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) includes the following items by components for the years ended December 31, 2016, 2015 and 2014 (in thousands):
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Stock-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Equity Instruments Other Than Options, Activity | The table below summarizes award activity.
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Schedule of Share-based Payment Award, Equity Instruments Other Than Options, Valuation Assumptions | The market condition awards were valued using a Monte Carlo simulation technique based on volatility over three years for the awards granted in 2016, 2015 and 2014 using daily stock prices and using the following variables:
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per common share are as follows (in thousands, except per share amounts):
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The Company's segment information from continuing operations is presented below (in thousands):
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Reconciliation of Assets from Segment to Consolidated | The Company's assets are presented below by segment (in thousands):
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Revenue from External Customers by Products and Services | The Company's external customers revenues from other activities for the years ended December 31, 2016, 2015 and 2014 are presented below (in thousands):
Mail and package handling services include mail sorting, parcel handling and logistical support to the USPS at five facilities and similar services at certain AFS hub and gateway locations in the U.S. None of these operations are large enough to constitute a reportable segment. |
Discontinued Operations (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | Carrying amounts of significant assets and liabilities of the discontinued operations are below (in thousands):
The revenues and pre-tax earnings of the discontinued operations are below (in thousands):
|
Quarterly Results (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | The following is a summary of quarterly results of operations (in thousands, except per share amounts):
|
Goodwill and Other Intangibles (Schedule of Goodwill) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 30, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | $ 2,738 | $ 34,395 | $ 34,395 |
Carrying value, ending balance | 37,133 | 2,738 | 34,395 |
CAM [Member] | |||
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 34,395 | 34,395 | |
Carrying value, ending balance | 34,395 | $ 34,395 | |
Pemco [Member] | |||
Goodwill [Roll Forward] | |||
Carrying value, beginning balance | 2,738 | ||
Carrying value, ending balance | $ 2,738 | $ 2,738 |
Goodwill and Other Intangibles Investment in West Atlantic (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 30, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investments | $ 9,900 | $ 13,100 | ||
Goodwill | 37,133 | $ 2,738 | $ 34,395 | $ 34,395 |
Investment in West Atlantic [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Goodwill | $ 5,500 |
Property and Equipment (Narrative) (Details) - Flight Equipment [Member] - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Operating Leases, Future Minimum Payments Receivable [Abstract] | ||
Minimum future lease payments, Due within next 12 months | $ 80.2 | |
Minimum future lease payments, Due within next 2 years | 77.6 | |
Minimum future lease payments, Due within next 3 years | 45.2 | |
Minimum future lease payments, Due within next 4 years | 28.5 | |
Minimum future lease payments, Due within next 5 years | 17.1 | |
CAM [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Leased aircraft, carrying value | $ 524.3 | $ 369.2 |
Debt Obligations (Schedule of Long Term Obligations) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
May 30, 2016 |
Dec. 31, 2015 |
|
Debt Instrument [Line Items] | |||
Total long term obligations | $ 458,721 | $ 317,658 | |
Less: current portion | (29,306) | (33,740) | |
Total long term obligations, net | $ 429,415 | 283,918 | |
Unsubordinated term loan and Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Collateral, Coverage Percentage | 150.00% | ||
Unsubordinated term loan [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | $ 85,636 | 100,708 | |
Revolving credit facility [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit Facility, Accordion Feature Amount | $ 100,000 | ||
Total long term obligations | 355,000 | 180,000 | |
Aircraft loans [Member] | |||
Debt Instrument [Line Items] | |||
Total long term obligations | $ 18,085 | $ 36,950 |
Debt Obligations (Schedule of Long Term Debt Maturities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2017 | $ 29,306 | |
2018 | 18,501 | |
2019 | 14,861 | |
2020 | 14,861 | |
2021 | 381,192 | |
2022 and beyond | 0 | |
Total long term obligations | $ 458,721 | $ 317,658 |
Commitments and Contingencies (Operating Lease Payments) (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Property Subject to Operating Lease [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2017 | $ 8,321 |
2018 | 7,237 |
2019 | 3,650 |
2020 | 1,895 |
2021 | 1,734 |
2022 and beyond | 13,765 |
Total minimum lease payments | 36,602 |
Other Leases [Member] | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2017 | 233 |
2018 | 167 |
2019 | 75 |
2020 | 50 |
2021 | 0 |
2022 and beyond | 0 |
Total minimum lease payments | $ 525 |
Commitments and Contingencies (Commitments) (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Long-term Purchase Commitment [Line Items] | |
costs to complete aircraft modification | $ 237.7 |
Commitments and Contingencies (Labor Unions) (Details) - Workforce Subject to Collective Bargaining Arrangements [Member] - Labor Unions [Member] |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
ABX [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 8.80% |
ATI [Member] | |
Concentration Risk [Line Items] | |
Percentage of the Company's Employees | 5.10% |
Pension and Other Post-Retirement Benefit Plans (Unrecognized Net Periodic Benefit Expense) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | $ 0 | $ 0 |
Unrecognized net actuarial loss | 112,506 | 144,402 |
Accumulated other comprehensive loss | 112,506 | 144,402 |
Post-Retirement Healthcare Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | (51) | (153) |
Unrecognized net actuarial loss | 1,893 | 449 |
Accumulated other comprehensive loss | $ 1,842 | $ 296 |
Pension and Other Post-Retirement Benefit Plans (Accumulated Other Comprehensive Income (Loss) to be Recognized within 12 Months) (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
| |
Pension Plans [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of actuarial loss | $ 7,746 |
Prior Service Cost | 0 |
Post-Retirement Healthcare Plans [Member] | |
Pension and Other Postretirement Benefit Plans, Amounts that Will be Amortized from Accumulated Other Comprehensive Income (Loss) in Next Fiscal Year [Abstract] | |
Amortization of actuarial loss | 283 |
Prior Service Cost | $ (51) |
Pension and Other Post-Retirement Benefit Plans (Cash Flows) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 6,263 | $ 6,181 | |
Defined Benefit Plan, Settlements, Benefit Obligation | 0 | 0 | $ (98,700) |
Estimated future employer contributions | 4,500 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2017 | 36,417 | ||
2018 | 42,206 | ||
2019 | 41,937 | ||
2020 | 44,190 | ||
2021 | 46,201 | ||
Years 2022 to 2026 | 253,444 | ||
Post-Retirement Healthcare Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | 667 | 788 | |
Defined Benefit Plan, Settlements, Benefit Obligation | 560 | $ 0 | |
Estimated future employer contributions | 500 | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |||
2017 | 458 | ||
2018 | 476 | ||
2019 | 509 | ||
2020 | 523 | ||
2021 | 536 | ||
Years 2022 to 2026 | $ 2,128 |
Pension and Other Post-Retirement Benefit Plans (Defined Contribution Plan Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Capital accumulation plans [Member] | |||
Schedule of Defined Contribution Plans [Line Items] | |||
Defined contribution plan expense | $ 7,130 | $ 5,700 | $ 5,425 |
Income Taxes (Deferred Taxes) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
deferred tax asset, warrant remeasurement | $ 4,746 | $ 0 |
Deferred tax assets: | ||
Net operating loss carryforward and federal credits | 20,596 | 30,981 |
Post-retirement employee benefits | 27,060 | 36,589 |
Employee benefits other than post-retirement | 13,785 | 13,773 |
Inventory reserve | 2,727 | 2,924 |
Deferred revenue | 7,728 | 8,650 |
Other | 4,411 | 2,344 |
Deferred tax assets | 81,053 | 95,261 |
Deferred tax liabilities: | ||
Accelerated depreciation | (186,015) | (175,572) |
Partnership items | (8,777) | (9,489) |
State taxes | (8,564) | (6,830) |
Valuation allowance against deferred tax assets | (229) | (229) |
Deferred tax liabilities | 203,585 | 192,120 |
Net deferred tax (liability) | $ (122,532) | $ (96,859) |
Income Taxes (Income Tax Provision (Benefit)) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Current taxes: | |||
Federal | $ 820 | $ 524 | $ 338 |
Foreign | 0 | 0 | 0 |
State | 151 | 371 | 345 |
Deferred taxes: | |||
Federal | 11,338 | 21,073 | 17,411 |
Foreign | 0 | 0 | 0 |
State | 1,085 | 1,440 | 1,608 |
Total deferred tax expense | 12,423 | 22,513 | 19,019 |
Total income tax expense from continuing operations | 13,394 | 23,408 | 19,702 |
Income tax expense (benefit) from discontinued operations | $ 1,384 | $ 1,178 | $ (1,262) |
Income Taxes (Tax Rate Reconciliation) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | |||
Statutory federal tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal tax benefit | 2.30% | 1.90% | 2.50% |
effective tax rate reconciliation, non-deductible expense, warrant remeasurement, percent | 4.00% | 0.00% | 0.00% |
Effective Income Tax Rate Reconciliation, Deduction, Employee Stock Ownership Plan Dividend, Percent | (3.40%) | 0.00% | 0.00% |
Tax effect of other non-deductible expenses | 1.60% | 0.90% | 0.80% |
Other | (0.60%) | (0.40%) | (0.20%) |
Effective income tax rate | 38.90% | 37.40% | 38.10% |
Income Taxes (Tax Rate Reconciliation - Discontinued Operations) (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Statutory federal tax rate | 35.00% | 35.00% | (35.00%) |
State income taxes, net of federal tax benefit | 1.30% | 1.30% | (1.30%) |
Effective income tax rate | 36.30% | 36.30% | (36.30%) |
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
As of January 1 | $ 0 | $ 0 |
As of December 31 | $ 0 | $ 0 |
Derivative Instruments (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
May 09, 2016 |
|
Derivative [Line Items] | ||||
Pre-tax (charge) on derivative instruments | $ (18,107) | $ 920 | $ 1,096 | |
Net (gain) loss on financial instruments | $ (969) | (920) | $ (1,096) | |
May 9, 2016 [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 2.02% | |||
Market Value (Liability) | $ 0 | (247) | ||
Derivative Liability, Notional Amount | $ 0 | 50,625 | ||
June 30, 2017 [Member] [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 1.1825% | |||
Market Value (Liability) | $ (77) | (252) | ||
Derivative Liability, Notional Amount | $ 43,125 | 50,625 | ||
May 5, 2021 [Member] [Member] [Member] | Swap [Member] | ||||
Derivative [Line Items] | ||||
Stated Interest Rate | 0.00% | 0.00% | ||
Market Value (Liability) | $ (547) | 0 | ||
Derivative Liability, Notional Amount | $ 43,125 | $ 0 | $ 48,750 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Jul. 05, 2016 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||
Warrant shares to be issued | 3,800,000 | 3,800,000 | ||||||||||
Stock Repurchased During Period, Shares | 3,825,554 | |||||||||||
shares repurchased from related party, price paid | $ 50,000 | |||||||||||
purchase price per shares, repurchased shares | $ 13.07 | |||||||||||
Earnings Per Share Reconciliation [Abstract] | ||||||||||||
Earnings from continuing operations | $ (755) | $ 2,116 | $ 11,528 | $ 8,171 | $ 13,343 | $ 6,347 | $ 10,570 | $ 8,895 | $ 21,060 | $ 39,155 | $ 32,074 | |
Weighted-average shares outstanding for basic earnings per share (in shares) | 59,083,000 | 59,379,000 | 63,267,000 | 63,636,000 | 63,742,000 | 64,239,000 | 64,541,000 | 64,454,000 | 61,330,000 | 64,242,000 | 64,253,000 | |
Common equivalent shares: | ||||||||||||
Effect of stock-based compensation awards (in shares) | 1,664,000 | 885,000 | 958,000 | |||||||||
Weighted-average shares outstanding assuming dilution (in shares) | 59,083,000 | 60,283,000 | 66,763,000 | 65,057,000 | 64,536,000 | 65,171,000 | 65,471,000 | 65,337,000 | 62,994,000 | 65,127,000 | 65,211,000 | |
Basic earnings per share from continuing operations (in dollars per share) | $ (0.01) | $ 0.04 | $ 0.18 | $ 0.13 | $ 0.21 | $ 0.10 | $ 0.16 | $ 0.14 | $ 0.34 | $ 0.61 | $ 0.50 | |
Diluted earnings per share from continuing operations (in dollars per share) | $ (0.01) | $ 0.04 | $ 0.12 | $ 0.13 | $ 0.21 | $ 0.10 | $ 0.16 | $ 0.14 | $ 0.33 | $ 0.60 | $ 0.49 | |
Restricted stock (in shares) | 327,700 | 348,600 | 435,600 | |||||||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 1,940,329 | 11,000 | 0 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 11,100,000 | 11,100,000 |
Segment Information (Narrative) (Details) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016
USD ($)
segments
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Segment Reporting Information [Line Items] | |||
Number of reportable segments (in segments) | segments | 2 | ||
Interest expense | $ 11,318 | $ 11,232 | $ 13,937 |
Customer Revenues [Member] | |||
Segment Reporting Information [Line Items] | |||
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas [Table Text Block] | 168221 | 206484 | 205005 |
ACMI Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Property, Plant and Equipment, Additions | $ 30,800 | ||
CAM [Member] | |||
Segment Reporting Information [Line Items] | |||
Interest expense | 10,600 | $ 9,400 | $ 11,800 |
Property, Plant and Equipment, Additions | $ 227,900 |
Discontinued Operations (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Liabilities | |||
Employee compensation and benefits | $ 19,885 | $ 23,400 | |
Post-retirement | 5,663 | 10,929 | |
Total Liabilities | 25,548 | 34,329 | |
Pre-tax earnings (loss) | $ 3,813 | $ 3,245 | $ (3,477) |
Quarterly Results (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Fair Value Adjustment of Warrants | $ (15,600) | $ (8,800) | $ 5,800 | $ (400) | $ (19,100) | ||||||
REVENUES | 221,675 | 193,261 | 176,549 | 177,385 | $ 181,581 | $ 142,305 | $ 148,353 | $ 147,025 | 768,870 | $ 619,264 | $ 589,592 |
Income (Loss) from Continuing Operations before Interest Expense, Interest Income, Income Taxes, Extraordinary Items, Noncontrolling Interests, Net | 18,140 | 14,456 | 15,801 | 15,351 | 22,550 | 12,917 | 19,794 | 17,529 | |||
Net earnings from continuing operations | (755) | 2,116 | 11,528 | 8,171 | 13,343 | 6,347 | 10,570 | 8,895 | 21,060 | 39,155 | 32,074 |
EARNINGS (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAXES | $ 2,287 | $ 47 | $ 47 | $ 47 | $ 1,425 | $ 214 | $ 214 | $ 214 | $ 2,428 | $ 2,067 | $ (2,214) |
Weighted average shares: | |||||||||||
Basic (in shares) | 59,083 | 59,379 | 63,267 | 63,636 | 63,742 | 64,239 | 64,541 | 64,454 | 61,330 | 64,242 | 64,253 |
Diluted (in shares) | 59,083 | 60,283 | 66,763 | 65,057 | 64,536 | 65,171 | 65,471 | 65,337 | 62,994 | 65,127 | 65,211 |
Earnings per share from continuing operations | |||||||||||
Basic (in dollars per share) | $ (0.01) | $ 0.04 | $ 0.18 | $ 0.13 | $ 0.21 | $ 0.10 | $ 0.16 | $ 0.14 | $ 0.34 | $ 0.61 | $ 0.50 |
Diluted (in dollars per share) | $ (0.01) | $ 0.04 | $ 0.12 | $ 0.13 | $ 0.21 | $ 0.10 | $ 0.16 | $ 0.14 | $ 0.33 | $ 0.60 | $ 0.49 |
Pension Plans [Member] | |||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | $ 0 | $ 0 | $ (11,660) | ||||||||
Pension Plans [Member] | Continuing Operations [Member] | |||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 6,700 | ||||||||||
Pension Plans [Member] | Discontinued Operations [Member] | |||||||||||
Defined Benefit Plan, Recognized Net Gain (Loss) Due to Settlements | 4,960 | ||||||||||
ACMI Services [Member] | |||||||||||
REVENUES | $ 492,859 | $ 433,109 | $ 439,919 |
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