Lease Rental Revenues and Flight Equipment Held for Lease

9 Months Ended

Sep. 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 September 30, 2011 were as follows:


Year Ending December 31,	Amount
Remainder of 2011	$	143,559
2012		533,378
2013		459,816
2014		368,326
2015		312,461
2016		282,378
Thereafter		533,376

Total	$	2,633,294

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


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
Region	2010			2011			2010			2011
Europe		46	%		44	%		46	%		45	%
Asia		21	%		25	%		20	%		24	%
North America		14	%		12	%		15	%		13	%
Latin America		9	%		7	%		9	%		8	%
Middle East and Africa		10	%		12	%		10	%		10	%

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 September 30, 2010, one customer accounted for 10% of lease rental revenue and three additional customers accounted for a combined 20% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. For the three months ended September 30, 2011, one customer accounted for 10% of lease rental revenue and three additional customers accounted for a combined 19% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue.

For the nine months ended September 30, 2010, one customer accounted for 11% of lease rental revenue and three additional customers accounted for a combined 20% of lease rental revenue. No other customer accounted for more than 5% of lease rental revenue. For the nine months ended September 30, 2011, one customer accounted for 11% 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 September 30,
	2010							2011
						Number							Number
			Percent of Total			of				Percent of Total			of
Country	Revenue		Revenue			Lessees		Revenue		Revenue			Lessees
China	$	14,714		11	%		5	$	18,431		13	%		4
United States		16,980		13	%		4		14,844		10	%		4
Netherlands⁽¹⁾		14,015		11	%		3		—		—	%		—


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


	Nine Months Ended September 30,
	2010							2011
						Number							Number
			Percent of Total			of				Percent of Total			of
Country	Revenue		Revenue			Lessees		Revenue		Revenue			Lessees
United States	$	50,379		13	%		4	$	48,261		11	%		4
China		42,557		11	%		5		50,832		11	%		5
Netherlands⁽¹⁾		42,042		11	%		3		—		—	%		—


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

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


	December 31, 2010					September 30, 2011
	Number					Number
	of		Net Book			of			Net Book
Region	Aircraft		Value %			Aircraft			Value %
Europe		66		46	%		65			43	%
Asia		35		26	%		35			24	%
North America		14		10	%		14			9	%
Latin America		11		8	%		10			6	%
Middle East and Africa		10		10	%		9			16	%
Off-lease		—		—	%		5	⁽¹⁾		2	%

Total		136		100	%		138			100	%


(1)		Includes two Boeing Model 747-400 aircraft being converted from passenger to freighter configuration and for which we have commitments for lease post-conversion with a customer in North America; two Airbus Model A320-200 aircraft, one of which is subject to a lease commitment with a customer in Asia and the other of which is subject to a lease commitment with a customer in Europe; and one Boeing Model 737-400 aircraft that is being marketed for 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							September 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	$	532,352		13	%		4
Russia⁽¹⁾		—		—			—		400,441		10	%		7
Netherlands⁽²⁾		410,086		10	%		3		—		—	%		—


(1)		Net book value attributable to Russia was less than 10% at December 31, 2010.

(2)		Net book value attributable to the Netherlands was less than 10% at September 30, 2011.

At December 31, 2010 and September 30, 2011, the amounts of lease incentive liabilities recorded in maintenance payments on the consolidated balance sheets were $26,536 and $24,103, respectively.

At December 31, 2010 and September 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 $16,003, respectively.