XML 30 R14.htm IDEA: XBRL DOCUMENT v3.20.2
Leases (Notes)
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Lessee, Leases [Policy Text Block] Leases
The Company evaluates all operating leases and they are measured on the balance sheet with a lease liability and right-of-use asset (“ROU”) at inception. ROU assets represent the Company’s right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make scheduled lease payments. Airport terminal leases mostly include variable lease payments outside of those based on a fixed index, and are therefore not recorded as ROU assets.

The following table summarizes the Company's total assets and liabilities related to leases as of the dates indicated:
(in thousands)Classification on the Balance SheetSeptember 30, 2020December 31, 2019
Assets
Operating lease assets(1)
Operating lease right-of-use assets$114,573 $22,081 
Finance lease assets(2)
Property and equipment, net106,777 111,665 
Total lease assets$221,350 $133,746 
Liabilities
Current
Operating(1)
Current operating lease liabilities$13,814 $2,662 
Finance(2)
Current maturities of long-term debt and finance lease obligations7,922 7,666 
Noncurrent
Operating(1)
Noncurrent operating lease liabilities101,864 21,290 
Finance(2)
Long-term debt and finance lease obligations101,955 107,930 
Total lease liabilities$225,555 $139,548 
(1) Represents assets and liabilities of ten aircraft, office equipment, certain airport and terminal facilities, and other assets under operating leases
(2) Represents assets and liabilities of five aircraft under finance leases

Sale-Leaseback Transaction

During the nine months ended September 30, 2020, the Company entered into two separate sale-leaseback transactions involving seven total aircraft. The transactions qualified as sales, and generated $78.2 million of proceeds. As a result of the sales, the aircraft were removed from property and equipment in the Company's balance sheet, resulting in a $49.8 million loss on the sales. The loss is reflected within operating special charges on the statement of income since the Company would not likely have completed the transactions absent cash conservation efforts as a result of COVID. The leased aircraft were subsequently recorded within operating lease right-of-use assets, with the related lease liabilities recorded within current and noncurrent operating lease liabilities on the balance sheet. The proceeds from the sales of aircraft in these transactions are treated as cash inflows from investing activities on the statement of cash flows.
Sale Leaseback Transactions [Text Block]
Sale-Leaseback Transaction

During the nine months ended September 30, 2020, the Company entered into two separate sale-leaseback transactions involving seven total aircraft. The transactions qualified as sales, and generated $78.2 million of proceeds. As a result of the sales, the aircraft were removed from property and equipment in the Company's balance sheet, resulting in a $49.8 million loss on the sales. The loss is reflected within operating special charges on the statement of income since the Company would not likely have completed the transactions absent cash conservation efforts as a result of COVID. The leased aircraft were subsequently recorded within operating lease right-of-use assets, with the related lease liabilities recorded within current and noncurrent operating lease liabilities on the balance sheet. The proceeds from the sales of aircraft in these transactions are treated as cash inflows from investing activities on the statement of cash flows.