Lease Rental Revenues and Flight Equipment Held for Lease

6 Months Ended

Jun. 30, 2011

Lease Rental Revenues and Flight Equipment Held for Lease [Abstract]

Lease Rental Revenues and Flight Equipment Held for Lease

Note 3. Lease Rental Revenues and Flight Equipment Held for Lease

Minimum future annual lease rentals contracted to be received under our existing operating leases of flight equipment at June 30, 2011 were as follows:


Year Ending December 31,	Amount
Remainder of 2011	$	278,490
2012		503,146
2013		401,683
2014		315,740
2015		263,791
2016		233,962
Thereafter		409,988

Total	$	2,406,800

Geographic concentration of lease rental revenue earned from flight equipment held for lease was as follows:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
Region	2010			2011			2010			2011
Europe		45	%		45	%		45	%		46	%
Asia		19	%		23	%		20	%		23	%
North America		16	%		13	%		16	%		13	%
Latin America		10	%		9	%		9	%		9	%
Middle East and Africa		10	%		10	%		10	%		9	%

Total		100	%		100	%		100	%		100	%

The classification of regions in the tables above and the table and discussion below is determined based on the principal location of the lessee of each aircraft.

For the three months ended June 30, 2010, one customer accounted for 11% of lease rental revenue and three additional customers accounted for a combined 22% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. For the three months ended June 30, 2011, one customer accounted for 10% of lease rental revenue and three additional customers accounted for a combined 18% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue.

For the six months ended June 30, 2010, one customer accounted for 11% of lease rental revenue and three additional customers accounted for a combined 21% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. For the six months ended June 30, 2011, one customer accounted for 10% of lease rental revenue and three additional customers accounted for a combined 18% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue.

The following tables set forth revenue attributable to individual countries representing at least 10% of total revenue based on each lessee’s principal place of business:


	Three Months Ended June 30,
	2010							2011
			Percent of			Number								Number
			Total			of					Percent of Total			of
Country	Revenue		Revenue			Lessees			Revenue		Revenue			Lessees
United States	$	16,754		13	%		4		$	16,683		11	%		4
China		14,037		11	%		5			16,128		11	%		4
Netherlands⁽¹⁾		14,015		11	%		3			—		—	%		—


(1) Total revenue attributable to the Netherlands was less than 10% for the three months ended June 30, 2011.

	Six Months Ended June 30,
	2010								2011
			Percent of			Number								Number
			Total			of					Percent of Total			of
Country	Revenue		Revenue			Lessees			Revenue		Revenue			Lessees
United States	$	33,399		13	%		4		$	33,418		11	%		4
China		27,843		11	%		5			32,401		11	%		5
Netherlands⁽¹⁾		28,027		11	%		3			—		—	%		—


(1)		Total revenue attributable to the Netherlands was less than 10% for the six months ended June 30, 2011.

Geographic concentration of net book value of flight equipment held for lease was as follows:


	December 31, 2010					June 30, 2011
	Number					Number
	of		Net Book			of			Net Book
Region	Aircraft		Value %			Aircraft			Value %
Europe		66		46	%		64			44	%
Asia		35		26	%		32			24	%
North America		14		10	%		14			10	%
Latin America		11		8	%		10			6	%
Middle East and Africa		10		10	%		8			14	%
Off-lease		—		—	%		8	⁽¹⁾		2	%

Total		136		100	%		136			100	%


(1)		Includes one Boeing Model 747-400 aircraft being converted from passenger to freighter configuration and for which we have a letter of intent for lease upon completion of the conversion with a customer in North America; four Airbus Model A320-200 aircraft, three of which we have leased or are subject to lease commitments with customers in Asia and Europe and one of which is being marketed for lease or sale; and three Boeing Model 737 classic aircraft, one of which we have leased to a customer in Asia, one of which was sold in August 2011 and one of which is being marketed for lease or sale.

The following table sets forth net book value of flight equipment attributable to individual countries representing at least 10% of total assets based on each lessee’s principal place of business as of:


	December 31, 2010							June 30, 2011
			Net Book			Number of				Net Book			Number of
Country	Net Book Value		Value %			Lessees		Net Book Value		Value %			Lessees
China		$518,545		13	%		5		$457,017		11	%		4
Netherlands		410,086		10	%		3		397,307		10	%		3

At December 31, 2010 and June 30, 2011, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $26,536 and $27,828, respectively.

At December 31, 2010 and June 30, 2011, the amounts of prepaid lease incentives and lease premiums, net of amortization, recorded in other assets on the consolidated balance sheets were $9,115 and $11,087 respectively.