Summary of Financial Statement Preparation and Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property, Plant and Equipment

Property and equipment, to be held and used, is summarized as follows (in thousands):

	September 30, 2022		December 31, 2021
Flight equipment	$	3,440,294	$	3,301,113
Ground equipment	$	68,762	64,641
Leasehold improvements, facilities and office equipment	$	39,714	38,769
Aircraft modifications and projects in progress	$	383,590	206,917
	$	3,932,360	3,611,440
Accumulated depreciation	$	(1,593,082)	(1,481,506)
Property and equipment, net	$	2,339,278	$	2,129,934

Accounting Standards Update and Change in Accounting Principle

The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective approach which resulted in the following adjustments:

(in thousands)	December 31, 2021		Adoption of ASU 2020-06		January 1, 2022
Balance Sheet line item:
Principal value	$	(258,750)	$	—	$	(258,750)
Unamortized issuance cost	$	2,889	$	—	$	2,889
Unamortized discount	$	24,215	$	(24,215)	$	—
Convertible Debt	$	(231,646)	$	(24,215)	$	(255,861)
Net deferred tax liability	$	(217,291)	$	5,527	$	(211,764)
Additional paid-in capital	$	(1,074,286)	$	39,559	$	(1,034,727)
Retained earnings	$	(309,430)	$	(20,871)	$	(330,301)