XML 51 R16.htm IDEA: XBRL DOCUMENT v3.20.4
Lease (Notes)
 12 Months Ended
Dec. 31, 2020
Leases [Abstract]  
Lessee, Operating Leases [Text Block] Leases
Total rental expense for operating leases for the years ended December 31, 2020, 2019 and 2018 was $24.6 million, $15.0 million and $12.7 million, respectively.

The Company had six aircraft under finance leases as of December 31, 2020 with remaining terms through 2029.

Lease Costs
The components of lease costs recognized on the statements of income were as follows:
Year Ended December 31,
(in thousands)Classification on the Statements of Income20202019
Finance lease costs:
Amortization of assetsDepreciation and amortization$6,631 $6,517 
Interest on lease liabilitiesInterest expense5,335 5,264 
Operating lease costAircraft lease rentals; Station operations; Maintenance and repairs; Other operating expense12,616 3,541 
Variable lease costStation operations; Maintenance and repairs; Other operating expense3,560 2,274 
Total lease cost$28,142 $17,596 

Lease position as of December 31, 2020

The table below presents the lease-related assets and liabilities recorded on the balance sheet.
As of December 31,
(in thousands)Classification on the Balance Sheet20202019
Assets
Operating lease assetsOperating lease right-of-use assets, net$115,911 $22,081 
Finance lease assetsProperty and equipment, net133,175 111,665 
Total lease assets$249,086 $133,746 
Liabilities
Current
OperatingCurrent operating lease liabilities$14,313 $2,662 
FinanceCurrent maturities of long-term debt and finance lease obligations9,767 7,666 
Noncurrent
OperatingNoncurrent operating lease liabilities102,289 21,290 
FinanceLong-term debt and finance lease obligations117,060 107,930 
Total lease liabilities$243,429 $139,548 
Weighted-average remaining lease term
Operating leases8.3 years9.1 years
Finance leases7.6 years9.9 years
Weighted-average discount rate
Operating leases5.4 %4.3 %
Finance leases5.0 %4.4 %
Sale-Leaseback Transactions

During the year ended December 31, 2020, the Company entered into sale-leaseback transactions involving eight total aircraft. The transactions qualified as sales, and generated $87.6 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 $53.2 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-19. 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.

Other Information

The table below presents supplemental cash flow information related to leases during the year ended December 31.
Year Ended December 31,
(in thousands)20202019
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows for operating leases$13,102 $2,927 
Operating cash flows for finance leases$5,335 5,264 
Financing cash flows for finance leases15,908 7,336 

Maturities of Lease Liabilities

The table below indicates the future minimum payments of lease liabilities as of December 31, 2020.

(in thousands)Operating LeasesFinance Leases
2021$20,055 $15,871 
202220,313 14,366 
202320,160 26,045 
202419,853 10,500 
202517,723 10,500 
Thereafter44,486 82,458 
Total lease payments142,590 159,740 
Less imputed interest(25,988)(32,913)
Total lease obligations116,602 126,827 
Less current obligations(14,313)(9,767)
Long-term lease obligations$102,289 $117,060 
Sale Leaseback Transactions
Sale-Leaseback Transactions

During the year ended December 31, 2020, the Company entered into sale-leaseback transactions involving eight total aircraft. The transactions qualified as sales, and generated $87.6 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 $53.2 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-19. 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.