(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated filer | ☐ | Smaller reporting company | ||||||||||||||
Non-accelerated filer | ☐ | Emerging growth company |
Page | |||||||||||
PART I. FINANCIAL INFORMATION | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
PART II. OTHER INFORMATION | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
September 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash, cash equivalents and restricted cash | $ | $ | |||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Inventory | |||||||||||
Prepaid supplies and other | |||||||||||
TOTAL CURRENT ASSETS | |||||||||||
Property and equipment, net | |||||||||||
Customer incentive | |||||||||||
Goodwill and acquired intangibles | |||||||||||
Operating lease assets | |||||||||||
Other assets | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued salaries, wages and benefits | |||||||||||
Accrued expenses | |||||||||||
Current portion of debt obligations | |||||||||||
Current portion of lease obligations | |||||||||||
Unearned revenue and grants | |||||||||||
TOTAL CURRENT LIABILITIES | |||||||||||
Long term debt | |||||||||||
Stock obligations | |||||||||||
Post-retirement obligations | |||||||||||
Long term lease obligations | |||||||||||
Other liabilities | |||||||||||
Deferred income taxes | |||||||||||
TOTAL LIABILITIES | |||||||||||
Commitments and contingencies (Note H) | |||||||||||
STOCKHOLDERS’ EQUITY: | |||||||||||
Preferred stock, | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
TOTAL STOCKHOLDERS’ EQUITY | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | $ | |||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
REVENUES | $ | $ | $ | $ | |||||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||||
Salaries, wages and benefits | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Maintenance, materials and repairs | |||||||||||||||||||||||
Fuel | |||||||||||||||||||||||
Contracted ground and aviation services | |||||||||||||||||||||||
Travel | |||||||||||||||||||||||
Landing and ramp | |||||||||||||||||||||||
Rent | |||||||||||||||||||||||
Insurance | |||||||||||||||||||||||
Other operating expenses | |||||||||||||||||||||||
OPERATING INCOME | |||||||||||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Non-service component of retiree benefit (loss) gains | ( | ( | |||||||||||||||||||||
Net gain on financial instruments | |||||||||||||||||||||||
Loss from non-consolidated affiliate | ( | ( | ( | ( | |||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
( | ( | ( | ( | ||||||||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | |||||||||||||||||||||||
INCOME TAX EXPENSE | ( | ( | ( | ( | |||||||||||||||||||
EARNINGS FROM CONTINUING OPERATIONS | |||||||||||||||||||||||
EARNINGS FROM DISCONTINUED OPERATIONS, NET OF TAXES | |||||||||||||||||||||||
NET EARNINGS | $ | $ | $ | $ | |||||||||||||||||||
BASIC EARNINGS PER SHARE | |||||||||||||||||||||||
Continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||
TOTAL BASIC EARNINGS PER SHARE | $ | $ | $ | $ | |||||||||||||||||||
DILUTED EARNINGS PER SHARE | |||||||||||||||||||||||
Continuing operations | $ | $ | |||||||||||||||||||||
Discontinued operations | |||||||||||||||||||||||
TOTAL DILUTED EARNINGS PER SHARE | $ | $ | $ | ||||||||||||||||||||
WEIGHTED AVERAGE SHARES | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
NET EARNINGS | $ | $ | $ | $ | |||||||||||||||||||
OTHER COMPREHENSIVE INCOME: | |||||||||||||||||||||||
Defined Benefit Pension | |||||||||||||||||||||||
Defined Benefit Post-Retirement | |||||||||||||||||||||||
Foreign Currency Translation | |||||||||||||||||||||||
TOTAL COMPREHENSIVE INCOME, net of tax | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||
Number | Amount | ||||||||||||||||||||||||||||||||||
BALANCE AT JUNE 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation plans | |||||||||||||||||||||||||||||||||||
Issuance of common shares, net of withholdings | ( | ( | ( | ||||||||||||||||||||||||||||||||
Forfeited restricted stock | ( | ||||||||||||||||||||||||||||||||||
Amortization of stock awards and restricted stock | |||||||||||||||||||||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation plans | |||||||||||||||||||||||||||||||||||
Grant of restricted stock | ( | ||||||||||||||||||||||||||||||||||
Issuance of common shares, net of withholdings | ( | ( | |||||||||||||||||||||||||||||||||
Forfeited restricted stock | ( | ||||||||||||||||||||||||||||||||||
Cumulative effect in change in accounting principle | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of stock awards and restricted stock | |||||||||||||||||||||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||||||||||
BALANCE AT SEPTEMBER 30, 2022 | $ | $ | ( | $ |
Common Stock | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||||||||||||
Number | Amount | ||||||||||||||||||||||||||||||||||
BALANCE AT June 30, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation plans | |||||||||||||||||||||||||||||||||||
Grant of restricted stock | |||||||||||||||||||||||||||||||||||
Issuance of common shares, net of withholdings | |||||||||||||||||||||||||||||||||||
Forfeited restricted stock | ( | ( | ( | ||||||||||||||||||||||||||||||||
Purchase of common stock | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Settlement of convertible note hedges and warrants | |||||||||||||||||||||||||||||||||||
Amortization of stock awards and restricted stock | |||||||||||||||||||||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||||||||||
BALANCE AT September 30, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
BALANCE AT DECEMBER 31, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock-based compensation plans | |||||||||||||||||||||||||||||||||||
Grant of restricted stock | ( | ||||||||||||||||||||||||||||||||||
Issuance of common shares, net of withholdings | ( | ( | |||||||||||||||||||||||||||||||||
Forfeited restricted stock | ( | ( | ( | ||||||||||||||||||||||||||||||||
Purchase of common stock | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Settlement of convertible note hedges and warrants | |||||||||||||||||||||||||||||||||||
Amortization of stock awards and restricted stock | |||||||||||||||||||||||||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||||||||||
BALANCE AT September 30, 2023 | $ | $ | ( | $ |
Nine Months Ended | |||||||||||
September 30, | |||||||||||
2023 | 2022 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net earnings from continuing operations | $ | $ | |||||||||
Net earnings from discontinued operations | |||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Pension and post-retirement | |||||||||||
Deferred income taxes | |||||||||||
Amortization of stock-based compensation | |||||||||||
Loss from non-consolidated affiliates | |||||||||||
Net (gain) loss on financial instruments | ( | ( | |||||||||
Changes in assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventory and prepaid supplies | ( | ||||||||||
Accounts payable | |||||||||||
Unearned revenue | ( | ||||||||||
Accrued expenses, salaries, wages, benefits and other liabilities | ( | ||||||||||
Pension and post-retirement balances | ( | ( | |||||||||
Other | ( | ||||||||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | |||||||||||
INVESTING ACTIVITIES: | |||||||||||
Expenditures for property and equipment | ( | ( | |||||||||
Proceeds from property and equipment | |||||||||||
Acquisitions and investments in businesses | ( | ( | |||||||||
NET CASH (USED IN) INVESTING ACTIVITIES | ( | ( | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Principal payments on secured debt | ( | ( | |||||||||
Proceeds from revolving credit facilities | |||||||||||
Payments for financing costs | ( | ||||||||||
Proceeds from convertible note issuance | |||||||||||
Repurchase of senior unsecured notes | ( | ||||||||||
Repurchase of convertible notes | ( | ||||||||||
Purchase of common stock | ( | ||||||||||
Withholding taxes paid for conversion of employee stock awards | ( | ( | |||||||||
Other financing related proceeds | |||||||||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | |||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | ( | ||||||||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | |||||||||||
CASH AND CASH EQUIVALENTS AT END OF YEAR | $ | $ | |||||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | |||||||||||
Interest paid, net of amount capitalized | $ | $ | |||||||||
Federal and state income taxes paid | $ | $ | |||||||||
SUPPLEMENTAL NON-CASH INFORMATION: | |||||||||||
Accrued expenditures for property and equipment | $ | $ | |||||||||
Page | |||||
(in thousands) | December 31, 2021 | Adoption of ASU 2020-06 | January 1, 2022 | |||||||||||||||||
Balance Sheet line item: | ||||||||||||||||||||
Principal value | $ | ( | $ | $ | ( | |||||||||||||||
Unamortized issuance cost | $ | $ | $ | |||||||||||||||||
Unamortized discount | $ | $ | ( | $ | ||||||||||||||||
Convertible Debt | $ | ( | $ | ( | $ | ( | ||||||||||||||
Net deferred tax liability | $ | ( | $ | $ | ( | |||||||||||||||
Additional paid-in capital | $ | ( | $ | $ | ( | |||||||||||||||
Retained earnings | $ | ( | $ | ( | $ | ( |
CAM | ACMI Services | All Other | Total | |||||||||||||||||||||||
Carrying value as of December 31, 2022 | $ | $ | $ | $ | ||||||||||||||||||||||
Carrying value as of September 30, 2023 | $ | $ | $ | $ |
Airline | Amortizing | |||||||||||||||||||
Certificates | Intangibles | Total | ||||||||||||||||||
Carrying value as of December 31, 2022 | $ | $ | $ | |||||||||||||||||
Amortization | — | ( | ( | |||||||||||||||||
Carrying value as of September 30, 2023 | $ | $ | $ |
Lease | ||||||||
Incentive | ||||||||
Carrying value as of December 31, 2022 | $ | |||||||
Amortization | ( | |||||||
Carrying value as of September 30, 2023 | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Customer | Percentage of Revenue | Percentage of Revenue | ||||||||||||||||||||||||
U.S. Department of Defense ("DoD") | ||||||||||||||||||||||||||
Amazon | ||||||||||||||||||||||||||
DHL |
September 30, 2023 | December 31, 2022 | |||||||||||||
Customer | Accounts Receivable | |||||||||||||
DoD | $ | $ | ||||||||||||
Amazon | ||||||||||||||
DHL |
Common Shares in millions | ||||||||||||||||||||||||||
Exercise price | Vested | Non-Vested | Expiration | |||||||||||||||||||||||
2018 Investment Agreement | $ | December 20, 2025 | ||||||||||||||||||||||||
2018 Investment Agreement | $ | December 20, 2025 | ||||||||||||||||||||||||
As of September 30, 2023 | Fair Value Measurement Using | Total | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents—money market | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swap | |||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Sale option | — | — | ( | $ | ( | ||||||||||||||||||
Stock warrant obligations | ( | ( | |||||||||||||||||||||
Total Liabilities | $ | $ | $ | ( | $ | ( |
As of December 31, 2022 | Fair Value Measurement Using | Total | |||||||||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Assets | |||||||||||||||||||||||
Cash equivalents—money market | $ | $ | $ | $ | |||||||||||||||||||
Interest rate swap | |||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Stock warrant obligations | ( | ( | |||||||||||||||||||||
Total Liabilities | $ | $ | $ | ( | $ | ( |
September 30, 2023 | December 31, 2022 | ||||||||||
Flight equipment | $ | $ | |||||||||
Ground equipment | |||||||||||
Leasehold improvements, facilities and office equipment | |||||||||||
Aircraft modifications and projects in progress | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
Property and equipment, net | $ | $ |
September 30, 2023 | December 31, 2022 | ||||||||||
Revolving credit facility | |||||||||||
Senior notes | |||||||||||
Convertible notes | |||||||||||
Other financing arrangements | |||||||||||
Total debt obligations | |||||||||||
Less: current portion | ( | ( | |||||||||
Total long term obligations, net | $ | $ |
2017 Convertible Notes | 2023 Convertible Notes | Total Convertible Notes | |||||||||||||||
Principal Value December 31, 2022 | |||||||||||||||||
Issuance of convertible debt | |||||||||||||||||
Repurchase of convertible debt | ( | ( | |||||||||||||||
Unamortized issuance cost | ( | ( | ( | ||||||||||||||
Convertible Debt September 30, 2023 |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||||||||
Expiration Date | Stated Interest Rate | Notional Amount | Market Value (Liability) | Notional Amount | Market Value (Liability) | ||||||||||||||||||||||||
March 31, 2023 | % | ||||||||||||||||||||||||||||
March 31, 2026 | % | ||||||||||||||||||||||||||||
March 31, 2026 | % | ||||||||||||||||||||||||||||
June 30, 2026 | % | ||||||||||||||||||||||||||||
June 30, 2026 | % |
Operating Leases | ||||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
2028 and beyond | ||||||||
Total undiscounted cash payments | ||||||||
Less: amount representing interest | ( | |||||||
Present value of future minimum lease payments | ||||||||
Less: current obligations under leases | ||||||||
Long-term lease obligation | $ |
Airline | Labor Agreement Unit | Percentage of the Company’s Employees | ||||||
ABX | International Brotherhood of Teamsters | |||||||
ATI | Air Line Pilots Association | |||||||
OAI | International Brotherhood of Teamsters | |||||||
ATI | Association of Flight Attendants | |||||||
OAI | Association of Flight Attendants |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans | Post-Retirement Healthcare Plan | Pension Plans | Post-Retirement Healthcare Plan | ||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||
Service cost | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Interest cost | |||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Amortization of net loss | |||||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost (income) | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ |
Defined Benefit Pension | Defined Benefit Post-Retirement | Foreign Currency Translation | Total | |||||||||||||||||||||||
Balance as of June 30, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||||||||||||||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | ||||||||||||||||||||||||||
Income Tax (Expense) or Benefit | ( | ( | ( | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Balance as of January 1, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||||||||||||||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | ||||||||||||||||||||||||||
Income Tax (Expense) or Benefit | ( | ( | ( | |||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Balance as of June 30, 2023 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||||||||||||||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | ||||||||||||||||||||||||||
Income Tax (Expense) or Benefit | ( | ( | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
Balance as of January 1, 2023 | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications: | ||||||||||||||||||||||||||
Foreign currency translation adjustment | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income: | ||||||||||||||||||||||||||
Actuarial costs (reclassified to salaries, wages and benefits) | ||||||||||||||||||||||||||
Income Tax (Expense) or Benefit | ( | ( | ||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||||||||||||
Balance as of September 30, 2023 | $ | ( | $ | $ | $ | ( |
Nine Months Ended | |||||||||||||||||||||||
September 30, 2023 | September 30, 2022 | ||||||||||||||||||||||
Number of Awards | Weighted average grant-date fair value | Number of Awards | Weighted average grant-date fair value | ||||||||||||||||||||
Outstanding at beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Converted | ( | ( | |||||||||||||||||||||
Expired | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Outstanding at end of period | $ | $ | |||||||||||||||||||||
Vested | $ | $ |
2023 | |||||
Risk-free interest rate | |||||
Volatility |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Earnings from continuing operations - basic | $ | $ | $ | $ | |||||||||||||||||||
Gain from stock warrants revaluation, net of tax | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Convertible debt interest charge, net of tax | $ | $ | $ | $ | |||||||||||||||||||
Earnings from continuing operations - diluted | $ | $ | $ | $ | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Weighted-average shares outstanding for basic earnings per share | |||||||||||||||||||||||
Common equivalent shares: | |||||||||||||||||||||||
Effect of stock-based compensation awards and warrants | |||||||||||||||||||||||
Effect of convertible debt | |||||||||||||||||||||||
Weighted-average shares outstanding assuming dilution | |||||||||||||||||||||||
Basic earnings per share from continuing operations | $ | $ | $ | $ | |||||||||||||||||||
Diluted earnings per share from continuing operations | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Total revenues: | |||||||||||||||||||||||
CAM | $ | $ | $ | $ | |||||||||||||||||||
ACMI Services | |||||||||||||||||||||||
All other | |||||||||||||||||||||||
Eliminate inter-segment revenues | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Customer revenues: | |||||||||||||||||||||||
CAM | $ | $ | $ | $ | |||||||||||||||||||
ACMI Services | |||||||||||||||||||||||
All other | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Aircraft maintenance, modifications and part sales | $ | $ | $ | $ | |||||||||||||||||||
Ground services | |||||||||||||||||||||||
Other, including aviation fuel sales | |||||||||||||||||||||||
Total customer revenues | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Depreciation and amortization expense: | |||||||||||||||||||||||
CAM | $ | $ | $ | $ | |||||||||||||||||||
ACMI Services | |||||||||||||||||||||||
All other | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Interest expense | |||||||||||||||||||||||
CAM | |||||||||||||||||||||||
ACMI Services | |||||||||||||||||||||||
Segment earnings (loss): | |||||||||||||||||||||||
CAM | $ | $ | $ | $ | |||||||||||||||||||
ACMI Services | |||||||||||||||||||||||
All other | ( | ( | ( | ||||||||||||||||||||
Net unallocated interest expense | ( | ( | ( | ( | |||||||||||||||||||
Net gain (loss) on financial instruments | |||||||||||||||||||||||
Other non-service components of retiree benefit costs, net | ( | ( | |||||||||||||||||||||
Loss from non-consolidated affiliate | ( | ( | ( | ( | |||||||||||||||||||
Pre-tax earnings from continuing operations | $ | $ | $ | $ |
September 30, | December 31, | ||||||||||
2023 | 2022 | ||||||||||
Assets: | |||||||||||
CAM | $ | $ | |||||||||
ACMI Services | |||||||||||
All other | |||||||||||
Total | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Revenues from Continuing Operations: | |||||||||||||||||||||||
CAM | |||||||||||||||||||||||
Aircraft leasing and related services | $ | 113,145 | $ | 114,526 | $ | 345,500 | $ | 341,164 | |||||||||||||||
Lease incentive amortization | (3,420) | (5,030) | (12,353) | (15,089) | |||||||||||||||||||
Total CAM | 109,725 | 109,496 | 333,147 | 326,075 | |||||||||||||||||||
ACMI Services | 365,248 | 357,375 | 1,065,562 | 1,034,963 | |||||||||||||||||||
Other Activities | 112,841 | 108,423 | 334,218 | 318,837 | |||||||||||||||||||
Total Revenues | 587,814 | 575,294 | 1,732,927 | 1,679,875 | |||||||||||||||||||
Eliminate internal revenues | (64,677) | (58,378) | (179,356) | (167,431) | |||||||||||||||||||
Customer Revenues | $ | 523,137 | $ | 516,916 | $ | 1,553,571 | $ | 1,512,444 | |||||||||||||||
Pre-Tax Earnings from Continuing Operations: | |||||||||||||||||||||||
CAM, inclusive of interest expense | $ | 23,306 | $ | 36,975 | $ | 88,526 | $ | 111,587 | |||||||||||||||
ACMI Services, interest expense | 12,414 | 25,265 | 34,057 | 69,267 | |||||||||||||||||||
Other Activities | (7,968) | (1,182) | (8,613) | 560 | |||||||||||||||||||
Net unallocated interest expense | (908) | (510) | (1,944) | (1,391) | |||||||||||||||||||
Net financial instrument re-measurement (loss) gain | 1,778 | 695 | 1,856 | 9,402 | |||||||||||||||||||
Other non-service components of retiree benefits costs, net | (3,218) | 4,635 | (9,654) | 15,411 | |||||||||||||||||||
Loss from non-consolidated affiliate | (1,885) | (954) | (4,398) | (5,577) | |||||||||||||||||||
Pre-Tax Earnings from Continuing Operations | 23,519 | 64,924 | 99,830 | 199,259 | |||||||||||||||||||
Add other non-service components of retiree benefit costs, net | 3,218 | (4,635) | 9,654 | (15,411) | |||||||||||||||||||
Add charges for non-consolidated affiliates | 1,885 | 954 | 4,398 | 5,577 | |||||||||||||||||||
Add lease incentive amortization | 4,236 | 5,822 | 14,777 | 17,442 | |||||||||||||||||||
Add net loss (gain) on financial instruments | (1,778) | (695) | (1,856) | (9,402) | |||||||||||||||||||
Add net charges for hangar foam incident | 58 | 960 | 71 | 960 | |||||||||||||||||||
Adjusted Pre-Tax Earnings from Continuing Operations (non-GAAP) | $ | 31,138 | $ | 67,330 | $ | 126,874 | $ | 198,425 |
September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
ACMI Services | CAM | Total | ACMI Services | CAM | Total | ||||||||||||||||||
In-service aircraft | |||||||||||||||||||||||
Aircraft owned | |||||||||||||||||||||||
Boeing 767-200 Freighter | 4 | 16 | 20 | 4 | 26 | 30 | |||||||||||||||||
Boeing 767-200 Passenger | 2 | — | 2 | 2 | — | 2 | |||||||||||||||||
Boeing 767-300 Freighter | 2 | 73 | 75 | 2 | 65 | 67 | |||||||||||||||||
Boeing 767-300 Passenger | 5 | — | 5 | 5 | — | 5 | |||||||||||||||||
Boeing 777-200 Passenger | 3 | — | 3 | 3 | — | 3 | |||||||||||||||||
Boeing 757-200 Combi | 4 | — | 4 | 4 | — | 4 | |||||||||||||||||
Airbus A321-200 Freighter | — | 2 | 2 | — | — | — | |||||||||||||||||
20 | 91 | 111 | 20 | 91 | 111 | ||||||||||||||||||
Operating lease | |||||||||||||||||||||||
Boeing 767-200 Passenger | 1 | — | 1 | 1 | — | 1 | |||||||||||||||||
Boeing 767-300 Passenger | 3 | — | 3 | 3 | — | 3 | |||||||||||||||||
Boeing 767-200 Freighter | 2 | — | 2 | 2 | — | 2 | |||||||||||||||||
Boeing 767-300 Freighter | 13 | — | 13 | 11 | — | 11 | |||||||||||||||||
Total | 19 | — | 19 | 17 | — | 17 | |||||||||||||||||
Other aircraft | |||||||||||||||||||||||
Owned Boeing 767-300 under modification | — | 13 | 13 | — | 15 | 15 | |||||||||||||||||
Owned Airbus A321-200 under modification | — | 7 | 7 | — | 7 | 7 | |||||||||||||||||
Owned Boeing 767 staging for lease | — | 1 | 1 | — | — | — |
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 | ||||||||||||||||||||||
August 1, 2023 through August 31, 2023 | 5,435,777 | $ | 21.80 | 5,435,777 | $ | 1,524,132 | ||||||||||||||||||||
Total for the quarter | 5,435,777 | 5,435,777 | $ | 1,524,132 |
Exhibit No. | Description of Exhibit | ||||
Instruments defining the rights of security holders | |||||
4.1 | |||||
4.2 | |||||
Material Contracts | |||||
10.1 | |||||
10.2 | |||||
10.3 | |||||
10.4 | |||||
10.5 | |||||
10.6 | |||||
10.7 | |||||
10.8 |
Certifications | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 |
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 | ||||
104 | Cover Page Interactive Date File (formatted as inline XBRL and contained in Exhibit 101). |
AIR TRANSPORT SERVICES GROUP, INC., | ||||||||||||||
a Delaware Corporation | ||||||||||||||
Registrant | ||||||||||||||
/S/ JOSEPH C. HETE | ||||||||||||||
Joseph C. Hete | ||||||||||||||
Chief Executive Officer (Principal Executive Officer) | ||||||||||||||
Date: | November 9, 2023 | |||||||||||||
/S/ QUINT O. TURNER | ||||||||||||||
Quint O. Turner | ||||||||||||||
Chief Financial Officer (Principal Financial Officer | ||||||||||||||
Date: | November 9, 2023 | and Principal Accounting Officer) |
/s/ JOSEPH C. HETE | ||
Joseph C. Hete | ||
Chief Executive Officer |
/s/ QUINT O. TURNER | ||
Quint O. Turner | ||
Chief Financial Officer (Principal Financial and Accounting Officer) |
/S/ JOSEPH C. HETE | ||
Joseph C. Hete Chief Executive Officer |
/s/ QUINT O. TURNER | ||
Quint O. Turner Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
---|---|---|---|
Assets, Current [Abstract] | |||
Accounts receivable, net of allowance | $ (1,228) | $ (939) | |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | |
Common stock, shares outstanding (in shares) | 65,315,066 | 72,327,758 | |
Preferred Stock | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 | |
Series A Junior Participating Preferred Stock | |||
Stockholders' Equity Attributable to Parent [Abstract] | |||
Preferred stock, shares authorized (in shares) | 75,000 | 75,000 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
NET EARNINGS | $ 17,172 | $ 51,042 | $ 75,335 | $ 155,930 |
NET EARNINGS | 17,172 | 51,042 | 75,335 | 155,930 |
Foreign Currency Translation | 0 | 0 | 20 | 0 |
Total comprehensive income | 20,857 | 51,824 | 86,410 | 157,213 |
Foreign Currency Translation | 0 | 0 | 20 | 0 |
Total comprehensive income | 20,857 | 51,824 | 86,410 | 157,213 |
Defined Benefit Post-Retirement | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 0 | 9 | 0 | 27 |
Defined Benefit Pension | ||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | $ 3,685 | $ 773 | $ 11,055 | $ 1,256 |
Summary of Financial Statement Preparation and Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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 ATSG is a holding company whose subsidiaries lease aircraft and provide contracted airline operations as well as other support services mainly to the air transportation, e-commerce and package delivery industries. 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 Company's airlines, ABX Air, Inc. (“ABX”), Air Transport International, Inc. (“ATI”) and Omni Air International, LLC ("OAI") each have the authority, through their separate U.S. Department of Transportation ("DOT") and Federal Aviation Administration ("FAA") certificates, to transport cargo worldwide. The Company provides a combination of aircraft, crews, maintenance and insurance services for its customers' transportation network through crew, maintenance and insurance ("CMI") agreements and aircraft, crew, maintenance and insurance ("ACMI") agreements and through charter contracts in which aircraft fuel is also included. The Company's subsidiary, LGSTX Services, Inc. ("LGSTX") provides for the management of aircraft ground services. In addition to its aircraft leasing and airline services, the Company offers a range of complementary services to delivery companies, freight forwarders, airlines and government customers. These include aircraft maintenance and modification services, aircraft parts supply, equipment maintenance services and load transfer and package sorting services. Basis of Presentation The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with GAAP and such principles are applied on a basis consistent with the financial statements reflected in our 2022 Form 10-K. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the accompanying financial statements contain all adjustments, including normal recurring adjustments, necessary for the fair presentation of the Company's results of operations and financial position for the periods presented. Due to seasonal fluctuations, among other factors common to the air cargo industry, the results of operations for the periods presented are not necessarily indicative of the results of operations to be expected for the entire year or any interim period. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. The accounting estimates reflect the best judgment of the management, but actual results could differ materially from those estimates. The accompanying unaudited condensed consolidated financial statements include the accounts of ATSG and its wholly-owned subsidiaries. Inter-company balances and transactions are eliminated. Investments in affiliates in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Under the equity method, the Company's share of the non-consolidated 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. Accounting Standards Updates In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" ("ASU 2020-06"). This new standard removes the separation models for convertible debt with cash conversion or beneficial conversion features. It eliminates the "treasury stock" method for convertible instruments and requires application of the “if-converted” method for certain agreements. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective approach which resulted in the following adjustments:
After adopting ASU 2020-06, the Company's Convertible Notes due 2024 (as defined and discussed in Note F) are reflected entirely as a liability as the embedded conversion feature is no longer separately presented within stockholders' equity, which also eliminated the non-cash discount. Accordingly, earnings no longer reflect the discount amortization expense which was $6.4 million of interest expense, net of income taxes during 2021. After giving effect for the adoption, the effective interest rate on the Convertible Notes is 1.5%. ASU 2020-06 requires the application of the more dilutive if-converted method when calculating the impact of the Convertible Notes on earnings per diluted share. The adoption of ASU 2020-06 does not change the accounting treatment of shares to be delivered by the convertible note hedges (see Note F) purchased by the Company that are designed to offset the shares issued to settle its Convertible Notes, which are anti-dilutive and not reflected in earnings per diluted share.
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Goodwill, Intangibles and Equity Investments |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill, Intangibles and Equity Investments | GOODWILL, INTANGIBLES AND EQUITY INVESTMENTS The carrying amounts of goodwill by reportable segment 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 amortizes finite-lived intangibles assets, including customer relationship and Supplemental Type Certificates ("STC") intangibles, over 4 to 17 remaining years. Stock warrants issued to Amazon.com, Inc. (“Amazon”) (see Note C) as an incentive for a subsidiary of Amazon to lease aircraft from the Company are recorded as a lease incentive asset using their fair value at the time that the lessee has met its performance obligations 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 Company has a 49% ownership in a joint-venture agreement with Precision Aircraft Solutions, LLC, to develop a passenger-to-freighter conversion program for Airbus A321-200 aircraft. In April of 2022, the Company acquired a 40% ownership interest in the joint-venture company GA Telesis Engine Services, LLC to provide engine tear-down services to harvest and sell engine parts. The Company accounts for its investment in these joint ventures under the equity method of accounting, in which the carrying value of each investment is reduced for the Company's share of the non-consolidated affiliates' operating results. The carrying value of the joint ventures totaled $21.9 million and $18.9 million at September 30, 2023 and December 31, 2022, respectively, and are reflected in “Other Assets” in the Company’s consolidated balance sheets. The Company monitors its investments in affiliates for indicators of other-than-temporary declines in value on an ongoing basis in accordance with GAAP. If the Company determines that an other-than-temporary decline in value has occurred, it recognizes an impairment loss, which is measured as the difference between the recorded carrying value and the fair value of the investment. The fair value is generally determined using an income approach based on discounted cash flows or using negotiated transaction values.
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Significant Customers |
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Significant Customers [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customers | SIGNIFICANT CUSTOMERS Three customers each account for a significant portion of the Company's consolidated revenues. The percentage of the Company's revenues for the Company's three largest customers, for the three and nine month periods ending September 30, 2023 and 2022 are as follows:
The accounts receivable from the Company's three largest customers as of September 30, 2023 and December 31, 2022 are as follows (in thousands):
DoD The Company is a provider of cargo and passenger airlift services to the DoD. The Company's airlines are eligible to bid for military charter operations for passenger and cargo transportation through contracts awarded by the DoD. The airlines draw from the Company's fleet of Boeing 757 combi, Boeing 777 passenger, Boeing 767 passenger and Boeing 767 freighter aircraft for the DoD operations. The DoD awards flights to U.S. certificated airlines through annual contracts and through temporary "expansion" routes. DHL The Company has had long-term contracts with DHL Network Operations (USA), Inc. and its affiliates ("DHL") since August 2003. The Company leases Boeing 767 aircraft to DHL under both long-term and short-term lease agreements. Under a separate 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 additional air cargo transportation services for DHL through ACMI agreements in which the Company provides the aircraft, crews, maintenance and insurance under a single contract. As of September 30, 2023, the Company leased 12 Boeing 767 freighter aircraft to DHL comprised of one Boeing 767-200 aircraft and eleven Boeing 767-300 aircraft, with expirations between 2023 and 2029. Further, beginning in third quarter of 2022, the Company began to operate four Boeing 767 aircraft provided by DHL under an additional CMI agreement which currently runs through August of 2027. Amazon The Company has been providing freighter aircraft, airline operations and services for cargo handling and logistical support for Amazon.com Services, LLC, ("ASI") a subsidiary of Amazon, since September 2015. On March 8, 2016, the Company entered into an Air Transportation Services Agreement (the “ATSA”) with ASI, pursuant to which CAM leases Boeing 767 freighter aircraft to ASI. The ATSA also provides for the operation of aircraft by the Company’s airline subsidiaries, and the management of ground services by LGSTX. As of September 30, 2023, the Company leased 37 Boeing 767 freighter aircraft to ASI with lease expirations between 2024 and 2031. Amazon Investment Agreement In conjunction with the execution of the ATSA, the Company and Amazon entered into an Investment Agreement on March 8, 2016 (as amended, the “2016 Investment Agreement”) and a Stockholders Agreement on March 8, 2016. The 2016 Investment Agreement called for the Company to issue warrants in three tranches granting 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 the execution of the 2016 Investment Agreement granted Amazon the right to purchase approximately 12.81 million ATSG common shares, with the first 7.69 million common shares vesting upon issuance on March 8, 2016, and the remaining 5.12 million common shares vesting as the Company delivered additional aircraft leased under the ATSA. The second tranche of warrants, which were issued and vested on March 8, 2018, granted Amazon the right to purchase approximately 1.59 million ATSG common shares. The third tranche of warrants vested on September 8, 2020, and granted Amazon the right to purchase an additional 0.5 million ATSG common shares to bring Amazon’s ownership, after the exercise in full of the three tranches of warrants, 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 2016 Investment Agreement and after giving effect to the warrants granted. The exercise price of the 14.9 million warrants issued under the 2016 Investment Agreement was $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 were exercisable in accordance with their terms through March 8, 2021 (subject to extension if regulatory approvals, exemptions, authorizations, consents or clearances have not been obtained by such date). On March 5, 2021, Amazon exercised warrants from the 2016 Investment Agreement for 865,548 shares of ATSG's common stock through a cashless exercise by forfeiting 480,047 warrants from the 2016 Investment Agreement as payment. For the cashless exchange, ATSG shares were valued at $27.27 per share, its volume-weighted average price for the previous 30 trading days immediately preceding March 5, 2021. Also on March 5, 2021, Amazon notified the Company of its intent to exercise warrants from the 2016 Investment Agreement for 13,562,897 shares of ATSG's common stock by paying $132.0 million of cash to the Company. This exercise was contingent upon the approval of the DOT, and the expiration or termination of any applicable waiting period pursuant to the Hart-Scott-Rodino Antitrust Improvements Act of 1976. After receiving all required regulatory approvals and clearances, Amazon remitted the funds to the Company on May 7, 2021, and the Company issued the corresponding shares of ATSG's common stock, completing the warrant exercise. On December 22, 2018, the Company announced agreements with Amazon to 1) lease and operate ten additional Boeing 767-300 aircraft for ASI, 2) extend the term of the 12 Boeing 767-200 aircraft currently leased to ASI by two years to 2023 with an option for more years, 3) extend the term of the eight Boeing 767-300 aircraft currently leased to ASI by three years to 2026 and 2027 with an option for more years, and 4) extend the ATSA by five years through March 2026, with an option to extend for an additional three years. The Company leased all ten of the 767-300 aircraft in 2020. In conjunction with the commitment for ten additional 767 aircraft leases, extensions of twenty existing Boeing 767 aircraft leases and the ATSA described above, Amazon and the Company entered into another Investment Agreement on December 20, 2018 (the "2018 Investment Agreement"). Pursuant to the 2018 Investment Agreement, the Company issued to Amazon warrants for 14.8 million common shares of ATSG. This group of warrants will expire if not exercised within seven years from their issuance date, in December of 2025 (subject to extension if regulatory approvals, exemptions, authorizations, consents or clearances have not been obtained by such date). The warrants have an exercise price of $21.53 per share. On May 29, 2020, ASI agreed to lease twelve more Boeing 767-300 aircraft from the Company. The first of these leases began in the second quarter of 2020 with the remaining eleven delivered in 2021. All twelve of these aircraft leases were for ten-year terms. Pursuant to the 2018 Investment Agreement, as a result of leasing 12 aircraft, Amazon was issued warrants for 7.0 million common shares, all of which have vested. These warrants will expire if not exercised by December 20, 2025 (subject to extension if regulatory approvals, exemptions, authorizations, consents or clearances have not been obtained by such date). The exercise price of these warrants is $20.40 per share. Issued and outstanding warrants are summarized below as of September 30, 2023:
Additionally, Amazon can earn additional warrants for up to 2.9 million common shares under the 2018 Investment Agreement by leasing up to five more cargo aircraft from the Company before January 2026. Incremental warrants granted for ASI’s commitment to any such future aircraft leases will have an exercise price based on the volume-weighted average price of the Company's shares during the 30 trading days immediately preceding the contractual commitment for each lease. For all outstanding warrants vested, Amazon may select a cashless conversion option. Assuming ATSG's stock price at the time of conversion is above the warrant exercise price, Amazon would receive fewer shares in exchange for any warrants exercised under the cashless option by surrendering the number of shares with a market value equal to the exercise price. The Company resumed repurchases of its own shares during October 2022 in conjunction with the expiration of certain government restrictions stemming from the Coronavirus Aid, Relief and Economic Security Act. As the Company repurchases its own shares, Amazon has the option to sell shares of ATSG's common stock to the Company to maintain its ownership percentage of less than 19.9% of the Company's outstanding shares pursuant to the terms of the 2016 Investment Agreement, as amended. On October 7, 2022, Amazon sold 250,000 shares of ATSG's common stock back to the Company for cash of $5.9 million, pursuant to the terms of the 2016 Investment Agreement, as amended on March 5, 2021. Also on December 16, 2022, Amazon sold 260,000 shares of ATSG's common stock back to the Company for cash of $7.0 million. On August 14, 2023 Amazon sold 1,177,000 shares of ATSG common stock back to the Company for cash of $22.9 million. These transactions resulted in Amazon maintaining its ownership percentage of less than 19.9% of ATSG's outstanding common shares at the time. The Company’s accounting for the warrants and the sale option have been determined in accordance with the financial reporting guidance for financial instruments. Warrants and the sale option are classified as liabilities and are marked to fair value at the end of each reporting period. The value of warrants is recorded as a customer incentive asset if it is probable of vesting at the time of grant and further changes in the fair value of warrant obligations are recorded to earnings. Upon a warrant vesting event, the customer incentive asset is amortized as a reduction of revenue over the duration of the related revenue contract. As of September 30, 2023 and December 31, 2022, the Company's liabilities reflected warrants and Amazon sale options from the 2018 Amazon agreements having a fair value of $1.8 million and $0.7 million, respectively. During the three month and nine month periods ended September 30, 2023, the re-measurements of warrants and sale options to fair value resulted in net non-operating losses of $0.1 million and $1.1 million before the effect of income taxes, respectively, compared to net non-operating gains of $0.1 million and $0.2 million in the corresponding periods in 2022. The Company's earnings in future periods will be impacted by the re-measurements of warrant fair value, sale option 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.
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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 comparable transactions. The fair value of the Company’s money market funds, Convertible Notes (as defined in Note F), convertible note hedges and interest rate swaps are based on observable inputs (Level 2) from comparable market transactions. The fair values of the stock warrant obligations to Amazon resulting from aircraft leased to ASI were determined using a Black-Scholes pricing model which considers various assumptions, including ATSG's common stock price, the volatility of ATSG's common stock, the expected dividend yield, exercise price and the risk-free interest rate (Level 2 inputs). The fair value of the stock warrant obligations for unvested stock warrants, conditionally granted to Amazon for the execution of incremental, future aircraft leases, include additional assumptions including the expected exercise prices and the probabilities that future leases will occur (Level 3 inputs). The fair value of the sale option for Amazon to sell back shares to the Company under certain conditions was determined based on future share repurchase scenarios. Judgement was applied to determine the number of shares that would be repurchased by the Company at a certain price and the probability of each scenario. There is uncertainty regarding the future stock price at the time of repurchase which affects the magnitude of the gain or loss recognized (Level 3 inputs). The following table reflects assets and liabilities that are measured at fair value on a recurring basis (in thousands):
As a result of higher market interest rates compared to the stated interest rates of the Company’s fixed rate debt obligations, the fair value of the Company’s debt obligations, based on Level 2 observable inputs, was approximately $69.6 million less than the carrying value, which was $1,691.8 million at September 30, 2023. As of December 31, 2022, the fair value of the Company’s debt obligations was approximately $48.3 million less than the carrying value, which was $1,464.9 million. The non-financial assets, including goodwill, intangible assets and property and equipment are measured at fair value on a non-recurring basis.
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Property and Equipment |
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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 $1,649.8 million and $1,474.6 million that were under lease to external customers as of September 30, 2023 and December 31, 2022, respectively.
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Debt Obligations |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Obligations | DEBT OBLIGATIONS Debt obligations consisted of the following (in thousands):
On August 14, 2023 the Company issued $400.0 million aggregate principal amount of Convertible Senior Notes due 2029 ("2023 Convertible Notes"). These notes were issued in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "1933 Act"). The 2023 Convertible Notes bear interest at a rate of 3.875% per year payable semi-annually in arrears on February 15 and August 15 each year, beginning February 15, 2024. The 2023 Convertible Notes mature on August 15, 2029, unless repurchased or converted in accordance with their terms prior to such date. The 2023 Convertible Notes are unsecured indebtedness, subordinated to the Company's existing and future secured indebtedness and other liabilities, including trade payables. Conversion of the 2023 Convertible Notes can only occur upon satisfaction of certain conditions and during certain periods, beginning any calendar quarter commencing after December 31, 2023 and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date. The Company will settle the principal value of the notes in cash. The initial conversion rate is $31.2864 common shares per $1,000 principal amount of 2023 Convertible Notes (equivalent to an initial conversion price of approximately $31.28 per common share). If a “make-whole fundamental change” (as defined in the offering circular with the 2023 Convertible Notes) occurs, ATSG will, in certain circumstances, increase the conversion rate for a specified period of time. Upon the occurrence of certain fundamental changes, holders of the Convertible Notes can require the Company to repurchase their notes for a cash repurchase price equal to the principal amount of the notes, plus any accrued and unpaid interest. The Company used a portion of the proceeds from the 2023 Convertible Notes to repurchase 5,435,777 shares of its common stock concurrently with offering of the 2023 Convertible Notes. Additionally, the Company used a portion of the proceeds to repurchase $204.5 million principal amount of its outstanding 1.125% Convertible Senior Notes issued in 2017 (the “2017 Convertible Notes”). The Company used the remainder of the proceeds from the offering to satisfy fees and expenses associated with the offering, to repay a portion of the outstanding borrowings under its revolving credit facility and for general corporate purposes. In addition, the Company is a party to a syndicated credit agreement (as amended, the "Senior Credit Agreement") which includes the ability to execute term loans and a revolving credit facility. On October 19, 2022, the Company amended the Senior Credit Agreement. This amendment i) increased the aggregate amount of the revolving credit facility from $800 million to $1 billion, ii) extended the maturity date of the agreement from April 6, 2026 to October 19, 2027, iii) replaced LIBOR with SOFR as an interest rate benchmark, iv) reduced the collateral to outstanding loan ratio to 1.15:1.00 from 1.25:1:00, v) permits cash dividends and share repurchases provided the secured leverage ratio is less than 3.00 to 1.00 and the total leverage ratio is less than 3.50 to 1.00, and removed the annual limitation on cash dividends and share repurchases which was $100 million. The interest rate is a pricing premium added to SOFR based upon the ratio of the Company's debt to its earnings before interest, taxes, depreciation and amortization expenses ("EBITDA") as defined under the Senior Credit Agreement. As of September 30, 2023, the unused revolving credit facility available to the Company at the trailing twelve-month EBITDA level was $427.6 million, and additional permitted indebtedness under the Senior Credit Agreement subject to compliance with other covenants. On March 1, 2023, the Company entered into an additional revolving credit facility domiciled in Ireland (the "Irish Facility"). The terms and conditions of the Irish Facility are similar to the Senior Credit Agreement in the U.S. The Irish Facility has a maximum capacity of $100.0 million, including a $7.5 million letter of credit sub-facility, and has the ability to be upsized using the same accordion feature that is present in the Senior Credit Agreement. The maturity date of the Irish Facility is the same as the Senior Credit Agreement. On January 28, 2020, CAM completed a debt offering of $500.0 million in senior unsecured notes (the “Senior Notes”) that were guaranteed by ATSG and certain of its other subsidiaries. The Senior Notes were sold only to qualified institutional buyers in the United States pursuant to Rule 144A under the the 1933 Act, and certain investors pursuant to Regulation S under the 1933 Act. The Senior Notes are senior unsecured obligations that bear interest at a fixed rate of 4.75% per year, payable semiannually in arrears on February 1 and August 1 of each year, beginning on August 1, 2020. The Senior Notes will mature on February 1, 2028. The Senior Notes contain customary events of default and certain covenants which are generally no more restrictive than those set forth in the Senior Credit Agreement. On April 13, 2021, the Company, through a subsidiary, completed its offering of $200.0 million of additional notes ("Additional Senior Notes") under the existing Senior Notes. The Additional Senior Notes are fully fungible with the Senior Notes, treated as a single class for all purposes under the indenture governing the existing notes with the same terms as those of the existing notes (other than issue date and issue price). During 2022, the Company repurchased Senior Notes having a principal value of $120.0 million in the open market at a 5.5% reducing the Senior Notes carrying value to $578.0 million. The Company recognized a net pre-tax gain of $4.5 million, net of fees, which was recorded under net gain of financial instruments on the income statement during the corresponding period. The balance of the Senior Notes is net of debt issuance costs of $4.6 million and $5.4 million as of September 30, 2023 and December 31, 2022, respectively. Under the terms of the Senior Credit Agreement, interest rates are adjusted at least quarterly based on the Company's EBITDA, its outstanding debt level and prevailing SOFR or prime rates. At the Company's debt-to-EBITDA ratio as of September 30, 2023, the SOFR-based financing for the revolving credit facility bears a variable interest rate of 6.68%. The Senior Notes do not require principal payments until maturity but prepayments are allowed without penalty beginning February 1, 2025. The Senior Credit Agreement is collateralized by certain of the Company's Boeing 777, 767 and 757 aircraft. Under the terms of the Senior Credit Agreement, the Company is required to maintain certain collateral coverage ratios set forth in 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 $100.0 million during any calendar year, provided the Company's total debt to EBITDA ratio is under 3.50 times and the secured debt to EBITDA ratio is under 3.0 times, after giving effect to the dividend or repurchase. The Senior Credit Agreement contains covenants, including a maximum permitted total EBITDA to debt ratio, a fixed charge covenant ratio requirement, and limitations on certain additional indebtedness and on guarantees of indebtedness. 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. In September 2017, ATSG issued $258.8 million aggregate principal amount of 1.125% Convertible Senior Notes due 2024 (the 2017 Convertible Notes) in a private offering to qualified institutional buyers pursuant to Rule 144A under the 1933 Act. The 2017 Convertible Notes bear interest at a rate of 1.125% per year payable semi-annually in arrears on April 15 and October 15 each year, beginning April 15, 2018. The 2017 Convertible Notes mature on October 15, 2024, unless repurchased or converted in accordance with their terms prior to such date. The 2017 Convertible Notes are unsecured indebtedness, subordinated to the Company's existing and future secured indebtedness and other liabilities, including trade payables. Conversion of the 2017 Convertible Notes can only occur upon satisfaction of certain conditions and during certain periods, beginning any calendar quarter commencing after December 31, 2017 and thereafter, until the close of business on the second scheduled trading day immediately preceding the maturity date. Upon the occurrence of certain fundamental changes, holders of the 2017 Convertible Notes can require the Company to repurchase their notes for a cash repurchase price equal to the principal amount of the notes, plus any accrued and unpaid interest. ATSG has the right to settle the 2017 Convertible Notes in cash, ATSG common shares or a combination of cash and ATSG common shares. The initial conversion rate is 31.3475 common shares per $1,000 principal amount of 2017 Convertible Notes (equivalent to an initial conversion price of approximately $31.90 per common share). If a “make-whole fundamental change” (as defined in the offering circular with the Convertible Notes) occurs, ATSG will, in certain circumstances, increase the conversion rate for a specified period of time. In conjunction with the 2017 Convertible Notes, the Company purchased convertible note hedges under privately negotiated transactions for $56.1 million, having the same number of ATSG common shares (8.1 million shares at that time) and same strike price ($31.90) that underlie the 2017 Convertible Notes. The convertible note hedges are expected to reduce the potential equity dilution with respect to ATSG's common shares, and/or offset any cash payments in excess of the principal amount due, as the case may be, upon conversion of the 2017 Convertible Notes. The Company's current intent and policy is to settle all Note conversions through a combination settlement which satisfies the principal amount of the 2017 Convertible Notes outstanding with cash. The conversion feature of the 2017 Convertible Notes required bifurcation from the principal amount under the applicable accounting guidance. On January 1, 2022 the Company adopted ASU 2020-06 using the modified retrospective approach as discussed in Note A which recombined the value of the previously bifurcated embedded feature with the convertible note and eliminated the discount. The carrying value of the Company's convertible debt is shown below (in thousands):
In conjunction with the offering of the 2017 Convertible Notes, the Company also sold warrants to the convertible note hedge counterparties in separate, privately negotiated warrant transactions at a higher strike price and for the same number of the Company’s common shares, subject to customary anti-dilution adjustments. The amount received for these warrants and recorded in Stockholders' Equity in the Company’s consolidated balance sheets was $38.5 million. These warrants could have resulted in 8.1 million additional shares of ATSG's common stock at that time if the Company's traded market price exceeds the strike price, which is $41.35 per share and is subject to certain adjustments under the terms of the warrant transactions. The warrants could have a dilutive effect on the computation of earnings per share to the extent the average traded market price of the Company's common shares for reporting periods exceeds the strike price. On August 14, 2023, the Company repurchased outstanding 2017 Convertible Notes having a principal value of $204.5 million in the open market, reducing the 2017 Convertible Notes carrying value to $54.2 million. The Company recognized a net pre-tax gain of $1.3 million, net of fees, which was recorded under net gain of financial instruments on the income statement during the corresponding period. In conjunction with the repurchase of the 2017 Convertible Notes the Company settled a pro-rata portion of the related warrants and note hedges and received $1.3 million in net cash proceeds. The share quantity of the convertible note hedges and warrants were 1.7 million shares, respectively at September 30, 2023.
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Derivative Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | DERIVATIVE INSTRUMENTS The Company maintains derivative instruments for protection from fluctuating interest rates. The table below provides information about the Company’s interest rate swaps (in thousands):
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES Lease Commitments The Company leases property, aircraft, aircraft engines and other types of equipment under operating leases. The Company's airlines operate fifteen freighter aircraft provided by customers and four passenger aircraft leased from external companies. Property leases include hangars, warehouses, offices and other space at certain airports with fixed rent payments and lease terms ranging from one month to nine years. The Company is obligated to pay the lessor for maintenance, real estate taxes, insurance and other operating expenses on certain property leases. These expenses are variable and are not included in the measurement of the lease asset or lease liability. These expenses are recognized as variable lease expense when incurred and are not material. Equipment leases include ground support and industrial equipment as well as computer hardware with fixed rent payments and terms of one month to five years. The Company records the initial right-to-use asset and lease liability at the present value of lease payments scheduled during the lease term. For the nine months ended September 30, 2023 and 2022, non-cash transactions to recognize right-to-use assets and corresponding liabilities for new leases were $6.1 million and $15.9 million, respectively. Unless the rate implicit in the lease is readily determinable, the Company discounts the lease payments using an estimated incremental borrowing rate at the time of lease commencement. The Company estimates the incremental borrowing rate based on the information available at the lease commencement date, including the rate the Company could borrow for a similar amount, over a similar lease term with similar collateral. The Company's weighted-average discount rate for operating leases at September 30, 2023 and December 31, 2022 was 3.8% and 3.2%, respectively. Leases often include rental escalation clauses, renewal options and/or termination options that are factored into the determination of lease payments when appropriate. Although not material, the amount of such options is reflected below in the maturity of operating lease liabilities table. Lease expense is recognized on a straight-line basis over the lease term. Our weighted-average remaining lease term is 3.9 years and 4.3 years as of September 30, 2023 and December 31, 2022, respectively. For the nine months ended September 30, 2023 and 2022, cash payments against operating lease liabilities were $19.7 million and $16.9 million, respectively. As of September 30, 2023, the maturities of operating lease liabilities are as follows (in thousands):
Purchase Commitments The Company has agreements with vendors for the conversion of Boeing 767-300, Airbus A321 and Airbus A330 passenger aircraft into a standard configured freighter aircraft. The conversions primarily consist of the installation of a standard cargo door and loading system. As of September 30, 2023, the Company owned thirteen Boeing 767-300 aircraft and seven Airbus A321-200 aircraft that were in or awaiting the modification process. As of September 30, 2023, the Company has agreements to purchase nine more Boeing 767-300 passenger aircraft and ten Airbus A330-300 passenger aircraft through 2024. As of September 30, 2023, the Company's commitments to acquire aircraft, convert those aircraft and complete the conversions of aircraft currently in or awaiting the modification process totaled $596.7 million, including estimated payments of $95.0 million through the remainder of 2023, with the remaining payments due from 2024 through 2026. Actual conversion payments will be based on the achievement of progress milestones. Hangar Foam Discharge On August 7, 2022 the fire suppression system at one of the Company's aircraft maintenance hangars in Wilmington, Ohio malfunctioned and discharged a significant amount of expansive foam. The event impacted employees, three aircraft and equipment in and around the hangar at the time of discharge. The hangar resumed operations after approximately three weeks while the cause of the incident was investigated and the hangar was cleaned and restored. While one aircraft was returned to service, the timeframes needed to return two of the aircraft and related engines to operating condition are not known at this time. The Company maintains insurance for employee claims, remediation expenses, property and equipment damage, customer claims and business interruption subject to customary deductibles and policy limits. The anticipated insurance recoveries related to clean-up expenses, remediation, part repairs and property damages are recorded when receipt is probable. Insurance recoveries in excess of the net book value of the damaged operating assets and for business interruption claims are recorded when all contingencies related to the claim have been resolved. For the three and nine month period ended September 30, 2023 the Company recognized charges in operating income for property damages and repairs, net of recorded insurance recoveries of less than $0.1 million. Through September 30, 2022 the Company had recognized charges in operating income, net of recorded insurance recoveries, of $1.0 million. Through September 30, 2023, the Company has incurred $6.8 million for losses resulting from the incident and recorded $5.8 million for insurance recoveries. Insurance receivables were $0.1 million and $2.8 million as of September 30, 2023 and December 31, 2022, respectively. 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 addition to the foregoing matters, the Company is also a party to legal proceedings in various federal and state jurisdictions from time to time 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 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 its financial condition or results of operations. Employees Under Collective Bargaining Agreements As of September 30, 2023, the flight crewmember employees of ABX, ATI and OAI and flight attendant employees of ATI and OAI were represented by the labor unions listed below:
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Pension and Other Post-Retirement Benefit Plans |
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Retirement Benefits [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 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 crewmembers, 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 obligations. 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-sponsored defined benefit pension plans and post-retirement healthcare plans follows below. The accumulated benefit obligation reflects pension benefit obligations based on the actual earnings and service to-date of current employees. ABX’s net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for the three and nine month periods ended September 30, 2023 and 2022, are as follows (in thousands):
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Income Taxes |
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Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes for interim periods is based on management's best estimate of the effective income tax rate expected to be applicable for the current year, plus any adjustments arising from changes in the estimated amount of taxable income related to prior periods. Income taxes recorded through September 30, 2023 have been estimated utilizing a rate of 24.6% based upon year-to-date income and projected results for the full year. The recognition of discrete tax items, such as the conversion of employee stock awards, the issuance of stock warrants and other items, have an impact on the effective rate during a period. As a result of these differences in which expenses and benefits for tax purposes are different than required by GAAP, the Company's effective tax rate for the nine months ended September 30, 2023 was 24.5%. The final effective tax rate for the year 2023 will depend on the actual amount of pre-tax book results by the Company for the full year, the additional conversions of employee stock awards, stock warrant valuations, executive compensation and other items. The Company has operating loss carryforwards for U.S. federal income tax purposes. Management expects to utilize the loss carryforwards to offset federal income tax liabilities in the future. Due to the Company's deferred tax assets, including its loss carryforwards, cash payments for income taxes will be limited through 2025. The Company is required to pay some federal tax due to loss carryforward usage limitations and certain state and local income taxes.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Accumulated other comprehensive income (loss) includes the following items by components for the three and nine month periods ended September 30, 2023 and 2022 (in thousands):
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Stock-Based Compensation |
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Stock-Based Compensation | STOCK-BASED COMPENSATIONATSG's Board of Directors has granted stock-based incentive awards to certain employees and directors 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 restricted stock, non-vested stock units with performance conditions, and non-vested stock units with market conditions. The restrictions on the non-vested restricted stock awards lapse at the end of a specified service period, which is typically three years from the grant date. The non-vested stock units will be converted into a number of ATSG common shares depending on the satisfaction of the performance conditions or market conditions at the end of a specified service period, which is typically three years from the grant date. The performance condition awards will be converted into a number of ATSG common shares 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 common shares depending on the appreciation of ATSG common shares compared to the Nasdaq Transportation Index. Directors have been granted time-based awards that vest after a period of twelve months. Under each of the stock-based incentive awards, the restrictions may lapse sooner than the stated settlement period upon (1) the participant's death or disability, (2) an employee participant's qualification for retirement or (3) a change in control, in the case of an employee participant under the 2015 long-term incentive plan, or a business combination, in the case of a director participant under the 2005 or 2015 long-term incentive plan. The Company expects to settle all of the stock unit awards by issuing new ATSG common shares. The table below summarizes award activity for the nine months ended September 30, 2023 and 2022:
The average grant-date fair value of each performance condition award, non-vested restricted stock award and time-based award granted by the Company in 2023 was $20.78, 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 in 2023 was $23.28. The market condition awards granted in 2023 were valued using a Monte Carlo simulation technique based on daily stock prices over three years and using the following variables:
For the nine months ended September 30, 2023 and 2022, the Company recorded expense of $6.5 million and $6.1 million respectively, for stock-based incentive awards. At September 30, 2023, there was $13.5 million of unrecognized expense related to the stock-based incentive awards that is expected to be recognized over a weighted-average period of 1.3 years. As of September 30, 2023, none of the awards were convertible, 346,565 units of the directors' time-based awards had vested and none of the outstanding shares of the restricted stock had vested. These awards could result in the issuance of a maximum number of 1,631,925 additional outstanding shares of ATSG's common stock depending on service, performance and market results through December 31, 2025.
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Common Stock and Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock and Earnings Per Share | COMMON STOCK AND EARNINGS PER SHARE Earnings per Share The calculation of basic and diluted earnings per common share is 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 471,610 shares and 367,339 shares of restricted stock for 2023 and 2022, 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 C), if such warrants have an anti-dilutive effect on earnings per share. The dilutive effect of the weighted-average diluted shares outstanding is calculated using the treasury method for periods in which equivalent shares have a dilutive effect on earnings per share. Under this method, the number of diluted shares is determined by dividing the assumed proceeds of the warrants recorded as a liability by the average stock price during the period and comparing that amount with the number of corresponding warrants outstanding. In conjunction with the offering of the 2017 Convertible Notes (see note F), the Company also sold warrants for ATSG common stock, subject to customary anti-dilution adjustments. These warrants may result in 1.7 million additional shares of common stock, as of September 30, 2023 if ATSG's traded market price exceeds the strike price which is $41.35 per share and is subject to certain adjustments under the terms of the warrant transactions.
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Segment and Revenue Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Revenue Information | SEGMENT AND REVENUE INFORMATION The Company operates in two reportable segments: CAM and ACMI Services. The CAM segment consists of the Company's aircraft and engine leasing operations. The ACMI Services segment consists of the Company's airline operations, including CMI agreements as well as ACMI, charter service and passenger service agreements that the Company has with its customers. The Company's aircraft maintenance services, aircraft modification services, ground services and other support services, are not large enough to constitute reportable segments and are combined in All other. Intersegment revenues are valued at arms-length market rates. The Company's segment information from continuing operations is presented below (in thousands):
The Company's external customer revenues from other activities for the three and nine month periods ended September 30, 2023, and 2022 are presented below (in thousands):
During the three and nine month periods ending September 30, 2023, the Company recognized $1.6 million and $13.3 million, respectively, of non-lease revenue that was reported as deferred revenue at the beginning of the applicable period, compared to $5.8 million and $4.8 million, respectively, for the comparable periods in the prior year. Current deferred revenue of $8.8 million and $17.0 million as of September 30, 2023 and December 31, 2022, respectively, for contracts with customers is derived from other activities as described above. Revenue related to deferred revenue will be recognized based on percentage of completion. Customers are required to pay deposits and may be required to make milestone payments for these services resulting in deferred revenue. Long-term contract assets were $2.0 million as of September 30, 2023 compared to $0.0 million as of December 31, 2022. Cash will be collected over the term of the multi-year agreement based on number cycles per period while revenue is recognized as parts are provided for engine maintenance services. This may result in a contract asset or liability based on the timing of engine maintenance services. CAM's leases do not contain residual guarantees. Approximately 11% of CAM's leases to external customers contain purchase options at projected market values. As of September 30, 2023, minimum future payments from external customers for leased aircraft and equipment were scheduled to be $75.7 million for the remainder of 2023, and $272.5 million, $252.3 million, $228.7 million and $197.5 million, respectively, for each of the next four years ending December 31, 2027 and $383.8 million thereafter. CAM's external customer revenues for non-lease activities were $8.1 million and $23.6 million for the three and nine month period ended September 30, 2023 for engine services and the sale of spare engine parts compared to $9.8 million and $27.1 million, respectively, during the comparable periods in the prior year. The Company's other segment information from continuing operations is presented below (in thousands):
The amortization of customer incentives included in revenue for CAM was $3.4 million and $12.4 million for the three and nine month periods ended September 30, 2023, respectively, compared to $5.0 million and $15.1 million, respectively, for the corresponding periods in 2022. The amortization of customer incentives included in revenue for ACMI Services was $0.8 million and $2.4 million for the three and nine month periods ended September 30, 2023, respectively, compared to $0.8 million and $2.4 million in the corresponding periods of 2022. The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other.
During the nine months ended September 30, 2023, the Company had capital expenditures for property and equipment of $67.8 million and $510.7 million for the ACMI Services and CAM, respectively.
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Summary of Financial Statement Preparation and Significant Accounting Policies (Policies) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The accompanying unaudited condensed interim consolidated financial statements are prepared in conformity with GAAP and such principles are applied on a basis consistent with the financial statements reflected in our 2022 Form 10-K. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to the rules and regulations promulgated by the SEC related to interim financial statements. In the opinion of management, the accompanying financial statements contain all adjustments, including normal recurring adjustments, necessary for the fair presentation of the Company's results of operations and financial position for the periods presented. Due to seasonal fluctuations, among other factors common to the air cargo industry, the results of operations for the periods presented are not necessarily indicative of the results of operations to be expected for the entire year or any interim period. The preparation of consolidated financial statements requires management to make estimates and assumptions that affect amounts reported in the consolidated financial statements. The accounting estimates reflect the best judgment of the management, but actual results could differ materially from those estimates. The accompanying unaudited condensed consolidated financial statements include the accounts of ATSG and its wholly-owned subsidiaries. Inter-company balances and transactions are eliminated. Investments in affiliates in which the Company has significant influence but does not exercise control are accounted for using the equity method of accounting. Under the equity method, the Company's share of the non-consolidated 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.
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Accounting Standards Updates | Accounting Standards Updates In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update (“ASU”) 2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" ("ASU 2020-06"). This new standard removes the separation models for convertible debt with cash conversion or beneficial conversion features. It eliminates the "treasury stock" method for convertible instruments and requires application of the “if-converted” method for certain agreements. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective approach which resulted in the following adjustments:
After adopting ASU 2020-06, the Company's Convertible Notes due 2024 (as defined and discussed in Note F) are reflected entirely as a liability as the embedded conversion feature is no longer separately presented within stockholders' equity, which also eliminated the non-cash discount. Accordingly, earnings no longer reflect the discount amortization expense which was $6.4 million of interest expense, net of income taxes during 2021. After giving effect for the adoption, the effective interest rate on the Convertible Notes is 1.5%. ASU 2020-06 requires the application of the more dilutive if-converted method when calculating the impact of the Convertible Notes on earnings per diluted share. The adoption of ASU 2020-06 does not change the accounting treatment of shares to be delivered by the convertible note hedges (see Note F) purchased by the Company that are designed to offset the shares issued to settle its Convertible Notes, which are anti-dilutive and not reflected in earnings per diluted share.
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Summary of Financial Statement Preparation and Significant Accounting Policies (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Depreciable Lives | Property and equipment, to be held and used, is summarized as follows (in thousands):
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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:
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Goodwill, Intangibles and Equity Investments (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The carrying amounts of goodwill by reportable segment are as follows (in thousands):
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Schedule of Acquired Intangible Assets | The Company's acquired intangible assets are as follows (in thousands):
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Schedule of Lease Incentive | The Company's lease incentive granted to the lessee was as follows (in thousands):
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Significant Customers (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Significant Customers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments | The percentage of the Company's revenues for the Company's three largest customers, for the three and nine month periods ending September 30, 2023 and 2022 are as follows:
The accounts receivable from the Company's three largest customers as of September 30, 2023 and December 31, 2022 are as follows (in thousands):
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Schedule of Stockholders' Equity Note, Warrants or Rights | Issued and outstanding warrants are summarized below as of September 30, 2023:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
Property and Equipment (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment, to be held and used, is summarized as follows (in thousands):
|
Debt Obligations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Debt obligations consisted of the following (in thousands):
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Convertible Debt | The carrying value of the Company's convertible debt is shown below (in thousands):
|
Derivative Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
Commitments and Contingencies (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Operating Lease Maturities | As of September 30, 2023, the maturities of operating lease liabilities are as follows (in thousands):
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Schedule of Employees Under Collective Bargaining Agreements | As of September 30, 2023, the flight crewmember employees of ABX, ATI and OAI and flight attendant employees of ATI and OAI were represented by the labor unions listed below:
|
Pension and Other Post-Retirement Benefit Plans (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | ABX’s net periodic benefit costs for its defined benefit pension plans and post-retirement healthcare plans for the three and nine month periods ended September 30, 2023 and 2022, are as follows (in thousands):
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) includes the following items by components for the three and nine month periods ended September 30, 2023 and 2022 (in thousands):
|
Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Equity Instruments Other Than Options, Activity | The table below summarizes award activity for the nine months ended September 30, 2023 and 2022:
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Schedule of Share-Based Payment Award, Stock Options, Valuation Assumptions | The market condition awards granted in 2023 were valued using a Monte Carlo simulation technique based on daily stock prices over three years and using the following variables:
|
Common Stock and Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The calculation of basic and diluted earnings per common share is as follows (in thousands, except per share amounts):
|
Segment and Revenue Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | The Company's segment information from continuing operations is presented below (in thousands):
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Revenue from External Customers from Other Activities | The Company's external customer revenues from other activities for the three and nine month periods ended September 30, 2023, and 2022 are presented below (in thousands):
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Other Segment Information From Continuing Operations | The Company's other segment information from continuing operations is presented below (in thousands):
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Schedule of Assets by Segment | The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other.
|
Summary of Financial Statement Preparation and Significant Accounting Policies - Additional Information (Details) - Convertible Notes - Convertible Debt $ in Millions |
Jan. 01, 2022
USD ($)
|
---|---|
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |
Discount amortization expense | $ 6.4 |
Debt instrument, effective interest rate | 1.50% |
Goodwill, Intangibles and Equity Investments - Schedule of Goodwill (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Goodwill [Line Items] | ||
Carrying value | $ 395,974 | $ 395,974 |
CAM | ||
Goodwill [Line Items] | ||
Carrying value | 153,290 | 153,290 |
ACMI Services | ||
Goodwill [Line Items] | ||
Carrying value | 234,571 | 234,571 |
All Other | ||
Goodwill [Line Items] | ||
Carrying value | $ 8,113 | $ 8,113 |
Goodwill, Intangibles and Equity Investments - Schedule of Acquired Intangible Assets (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |
Carrying value at beginning of period, airline certificates | $ 96,668 |
Carrying value at beginning of period, amortizing intangibles | 87,668 |
Amortization of Intangible Assets | (7,661) |
Carrying value at end of period, airline certificates | 89,007 |
Carrying value at end of period, amortizing intangibles | 80,007 |
Airline Certificates | |
Finite and Indefinite-lived Intangible Assets [Roll Forward] | |
Carrying value at beginning of period, airline certificates | 9,000 |
Carrying value at end of period, airline certificates | $ 9,000 |
Goodwill, Intangibles and Equity Investments - Narrative (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2023 |
Dec. 31, 2022 |
|
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||
Amortization of intangible assets | $ 7,661 | |
Carrying value of joint ventures | $ 21,900 | $ 18,900 |
321 Precision Conversions, LLC | ||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||
Equity method investment, ownership percentage | 49.00% | |
GA Telesis Engine Services, LLC | ||
Finite and Indefinite-lived Intangible Assets [Roll Forward] | ||
Equity method investment, ownership percentage | 40.00% |
Goodwill, Intangibles and Equity Investments - Schedule of Lease Incentive (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying value at beginning of period | $ 79,650 |
Incentive To Lessee, Amortization | (14,777) |
Carrying value at end of period | $ 64,873 |
Significant Customers - Narrative (Details) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Aug. 14, 2023
USD ($)
shares
|
Dec. 16, 2022
USD ($)
shares
|
Oct. 07, 2022
USD ($)
shares
|
Jun. 30, 2022
aircraft
|
Sep. 30, 2023
aircraft
|
|
Amended 2016 Investment Agreement | |||||
Concentration Risk [Line Items] | |||||
Stock repurchased during period (in shares) | shares | 1,177,000 | 260,000 | 250,000 | ||
Stock repurchased during period, value | $ | $ 22.9 | $ 7.0 | $ 5.9 | ||
DHL | |||||
Concentration Risk [Line Items] | |||||
Lessor, number of leased aircraft | 12 | ||||
Amazon | |||||
Concentration Risk [Line Items] | |||||
Lessor, number of leased aircraft | 37 | ||||
B-767-200 | DHL | |||||
Concentration Risk [Line Items] | |||||
Lessor, number of leased aircraft | 1 | ||||
B-767-300 | DHL | |||||
Concentration Risk [Line Items] | |||||
Lessor, number of leased aircraft | 11 | ||||
B-767 | Maximum | DHL | |||||
Concentration Risk [Line Items] | |||||
Number of aircraft | 4 |
Significant Customers - Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - USD ($) $ / shares in Units, $ in Millions |
Aug. 14, 2023 |
Dec. 16, 2022 |
Oct. 07, 2022 |
Sep. 30, 2023 |
Mar. 05, 2021 |
---|---|---|---|---|---|
Amended 2016 Investment Agreement | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price (in dollars per share) | $ 27.27 | ||||
Stock repurchased during period (in shares) | 1,177,000 | 260,000 | 250,000 | ||
Stock repurchased during period, value | $ 22.9 | $ 7.0 | $ 5.9 | ||
Class of warrant or right, ownership percentage, maximum | 19.90% | ||||
2018 Investment Agreement, Exercise Price $21.53 | Common Stock | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price (in dollars per share) | $ 21.53 | ||||
Common shares, vested (in shares) | 14,800,000 | ||||
Common stock, non-vested (in shares) | 0.0 | ||||
2018 Investment Agreement, Exercise Price $20.40 | Common Stock | |||||
Class of Warrant or Right [Line Items] | |||||
Exercise price (in dollars per share) | $ 20.40 | ||||
Common shares, vested (in shares) | 7,000,000.0 | ||||
Common stock, non-vested (in shares) | 0.0 |
Fair Value Measurements - Narrative (Details) - Fair Value, Recurring - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carrying value, debt | $ 1,691.8 | $ 1,464.9 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Difference between fair value and carrying value, debt | $ (69.6) | $ (48.3) |
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 4,567,408 | $ 4,062,042 |
Accumulated depreciation | (1,817,902) | (1,659,634) |
Property and equipment, net | 2,749,506 | 2,402,408 |
Flight equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 3,866,140 | 3,506,134 |
Ground equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 71,419 | 70,092 |
Leasehold improvements, facilities and office equipment | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | 41,417 | 40,183 |
Aircraft modifications and projects in progress | ||
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Property and equipment, gross | $ 588,432 | $ 445,633 |
Property and Equipment - Narrative (Details) - USD ($) $ in Millions |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
CAM | Flight equipment | ||
Property, Plant and Equipment [Line Items] | ||
Leased aircraft, carrying value | $ 1,649.8 | $ 1,474.6 |
Debt Obligations - Schedule of Long Term Obligations (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Other financing arrangements | ||
Total debt obligations | $ 1,691,789 | $ 1,464,924 |
Less: current portion | (648) | (639) |
Total long term obligations, net | 1,691,141 | 1,464,285 |
Revolving credit facility | ||
Other financing arrangements | ||
Total debt obligations | 660,000 | 620,000 |
Senior notes | ||
Other financing arrangements | ||
Total debt obligations | 578,454 | 578,094 |
Convertible Debt | ||
Other financing arrangements | ||
Total debt obligations | 443,942 | 256,903 |
Other financing arrangements | ||
Other financing arrangements | ||
Total debt obligations | $ 9,393 | $ 9,927 |
Debt Obligations - Schedule of Long Term Debt Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Long-Term Debt, Fiscal Year Maturity [Abstract] | ||
Total debt obligations | $ 1,691,789 | $ 1,464,924 |
Derivative Instruments - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Interest Rate Swap 2.425 Stated Interest | ||
Derivative [Line Items] | ||
Stated Interest Rate | 2.425% | |
Notional Amount | $ 0 | $ 125,625 |
Interest rate swap | $ 0 | 677 |
us-gaap_InterestRateSwapMember | ||
Derivative [Line Items] | ||
Stated Interest Rate | 3.793% | |
Notional Amount | $ 50,000 | 0 |
Interest rate swap | $ (1,170) | 0 |
us-gaap_InterestRateSwapMember 3.836% | ||
Derivative [Line Items] | ||
Stated Interest Rate | 3.836% | |
Notional Amount | $ 50,000 | 0 |
Interest rate swap | $ (1,126) | 0 |
Interestrateswapmember4.257% | ||
Derivative [Line Items] | ||
Stated Interest Rate | 4.257% | |
Notional Amount | $ 50,000 | 0 |
Interest rate swap | $ (463) | 0 |
Interestrateswapmember4.185% | ||
Derivative [Line Items] | ||
Stated Interest Rate | 4.185% | |
Notional Amount | $ 50,000 | 0 |
Interest rate swap | $ (554) | $ 0 |
Derivative Instruments - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Net (gain) loss on financial instruments | $ (1.5) | $ (0.6) | $ (2.6) | $ (4.7) |
Commitments and Contingencies - Schedule of Operating Lease Maturities (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2023 | $ 6,290 | |
2024 | 21,997 | |
2025 | 15,374 | |
2026 | 8,730 | |
2027 | 4,332 | |
2028 and beyond | 8,711 | |
Total undiscounted cash payments | 65,434 | |
Less: amount representing interest | (5,163) | |
Present value of future minimum lease payments | 60,271 | |
Less: current obligations under leases | 21,534 | $ 23,316 |
Long-term lease obligation | $ 38,737 | $ 51,575 |
Commitments and Contingencies - Schedule of Employees Under Collective Bargaining Employees (Details) - Workforce Subject to Collective Bargaining Arrangements - Unionized Employees Concentration Risk |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
ABX | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 5.00% |
ATI | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 10.70% |
OAI | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 6.10% |
ATI | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 0.80% |
OAI | |
Other Commitments [Line Items] | |
Percentage of the Company’s Employees | 6.70% |
Pension and Other Post-Retirement Benefit Plans - Net Funded Status (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Pension Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 8,631 | 6,075 | 25,893 | 18,098 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | 1,500 | |||
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Service cost | 13 | 19 | 39 | 57 |
Interest cost | $ 33 | $ 15 | $ 99 | $ 44 |
Pension and Other Post-Retirement Benefit Plans - Net Periodic Benefit Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Pension Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | $ 0 | $ 0 | $ 0 | $ 0 |
Interest cost | 8,631 | 6,075 | 25,893 | 18,098 |
Expected return on plan assets | (10,192) | (11,738) | (30,576) | (35,215) |
Amortization of net loss | 4,745 | 1,002 | 14,235 | 1,628 |
Net periodic benefit cost (income) | 3,184 | (4,661) | 9,552 | (15,489) |
Other Postretirement Benefits Plan [Member] | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | ||||
Service cost | 13 | 19 | 39 | 57 |
Interest cost | 33 | 15 | 99 | 44 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net loss | 0 | 11 | 0 | 34 |
Net periodic benefit cost (income) | $ 46 | $ 45 | $ 138 | $ 135 |
Pension and Other Post-Retirement Benefit Plans - Cash Flows (Details) $ in Millions |
9 Months Ended |
---|---|
Sep. 30, 2023
USD ($)
| |
Defined Benefit Pension | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1.5 |
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Thousands |
Jan. 01, 2022 |
Dec. 31, 2021 |
---|---|---|
Deferred Tax Liabilities, Gross [Abstract] | ||
Deferred Tax Liabilities, Net | $ (211,764) | $ (217,291) |
Income Taxes - Income Tax Provision (Benefit) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||||
Income Tax Expense (Benefit) | $ 6,347 | $ 14,736 | $ 24,495 | $ 45,065 |
Income Taxes - Tax Rate Reconciliation (Details) |
9 Months Ended |
---|---|
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent, Total | 24.50% |
Income Tax Disclosure [Line Items] | |
Effective Income Tax Rate Reconciliation, Percent | 24.50% |
Forecast | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Percent, Total | 24.60% |
Income Tax Disclosure [Line Items] | |
Effective Income Tax Rate Reconciliation, Percent | 24.60% |
Common Stock and Earnings Per Share - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
9 Months Ended | ||
---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
May 10, 2018 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Restricted stock (in shares) | 471,610 | 367,339 | |
Convertible Senior Notes Due 2024 | Convertible Debt | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Warrants and rights outstanding | $ 38.5 | ||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 1,700,000 | 8,100,000 | |
Exercise price (in dollars per share) | $ 41.35 | $ 41.35 |
Segment and Revenue Information - Revenue from External Customers from Other Activities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2023 |
Sep. 30, 2022 |
Sep. 30, 2023 |
Sep. 30, 2022 |
|
Segment Reporting Information [Line Items] | ||||
Total customer revenues | $ 523,137 | $ 516,916 | $ 1,553,571 | $ 1,512,444 |
External Customer Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total customer revenues | 74,080 | 79,622 | 236,870 | 240,097 |
Aircraft maintenance, modifications and part sales | External Customer Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total customer revenues | 31,443 | 34,604 | 112,681 | 106,766 |
Ground services | External Customer Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total customer revenues | 22,733 | 28,204 | 71,385 | 80,275 |
Other, including aviation fuel sales | External Customer Revenue | ||||
Segment Reporting Information [Line Items] | ||||
Total customer revenues | $ 19,904 | $ 16,814 | $ 52,804 | $ 53,056 |
Segment and Revenue Information - Schedule of Assets by Segment (Details) - USD ($) $ in Thousands |
Sep. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Segment Reporting Information [Line Items] | ||
Assets | $ 3,846,115 | $ 3,589,893 |
CAM | ||
Segment Reporting Information [Line Items] | ||
Assets | 2,836,032 | 2,510,559 |
ACMI Services | ||
Segment Reporting Information [Line Items] | ||
Assets | 860,199 | 921,522 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 149,884 | $ 157,812 |
Label | Element | Value |
---|---|---|
Senior Notes [Member] | ||
Repayments of Unsecured Debt | us-gaap_RepaymentsOfUnsecuredDebt | $ 0 |
Repayments of Unsecured Debt | us-gaap_RepaymentsOfUnsecuredDebt | 115,204,000 |
Convertible Debt [Member] | ||
Repayments of Unsecured Debt | us-gaap_RepaymentsOfUnsecuredDebt | (203,247,000) |
Repayments of Unsecured Debt | us-gaap_RepaymentsOfUnsecuredDebt | $ 0 |
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