<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10 - Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended............September 30, 2000......
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ............ to ..............
Commission file number ....... 0-11350
INTERNATIONAL LEASE FINANCE CORPORATION
(Exact name of registrant as specified in its charter)
CALIFORNIA 22-3059110
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1999 AVENUE OF THE STARS LOS ANGELES, CALIFORNIA 90067
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
(310) 788-1999
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at November 1, 2000
COMMON STOCK, NO PAR VALUE 35,818,122
<PAGE> 2
INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
INDEX
Part I. Financial Information: Page No.
Item 1. Financial Statements (Unaudited)
Condensed Consolidated Balance Sheets
September 30, 2000 and December 31, 1999.....................3
Condensed Consolidated Statements of Income
Three Months Ended September 30, 2000 and 1999...............4
Condensed Consolidated Statements of Income
Nine Months Ended September 30, 2000 and 1999................5
Condensed Consolidated Statements of Cash Flows
Nine Months Ended September 30, 2000 and 1999................6
Notes to Condensed Consolidated Financial Statements..................8
Item 2. Management's Discussion and Analysis of the
Financial Condition and Results of Operations......................9
Item 3. Quantitative and Qualitative Disclosures About
Market Risk ......................................................13
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K..................................14
Signatures...........................................................15
Index to Exhibits....................................................16
<PAGE> 3
PART I FINANCIAL INFORMATION
ITEM 1 INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN THOUSANDS, EXCEPT SHARE AND PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
----------- -----------
<S> <C> <C>
(Unaudited)
ASSETS
Cash, including interest bearing accounts
of $94,730(2000) and $112,372(1999) $ 96,110 $ 123,109
Current income taxes receivable 41,309 --
Notes receivable and net investment in
finance and sales-type leases 362,435 326,991
Flight equipment under operating leases 20,670,452 18,246,253
Less accumulated depreciation 2,622,502 2,150,200
----------- -----------
18,047,950 16,096,053
Deposits on flight equipment purchases 874,293 848,730
Accrued interest, other receivables
and other assets 87,970 77,825
Investments 48,627 6,067
Deferred debt issue costs-less
accumulated amortization of $79,248
(2000) and $70,375(1999) 23,385 28,349
----------- -----------
$19,582,079 $17,507,124
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Accrued interest and other payables $ 300,894 $ 280,933
Current income taxes payable -- 14,370
Debt financing, net of deferred debt
discount of $58,241(2000) and $28,001
1999 12,955,910 11,192,220
Capital lease obligations 571,541 669,576
Security & other deposits on flight
equipment 865,433 801,313
Rentals received in advance 125,881 110,435
Deferred income taxes payable 1,446,303 1,228,085
SHAREHOLDERS' EQUITY
Preferred stock--no par value; 20,000,000
authorized shares
Market Auction Preferred Stock, $100,000 per
share liquidation value; Series A,B,C,D,E
F,G and H (2000 and 1999) each having 500
shares issued and outstanding 400,000 400,000
Common stock--no par value; 100,000,000
authorized shares, 35,818,122 (2000
and 1999) issued and outstanding 3,582 3,582
Additional paid-in capital 579,955 579,955
Retained earnings 2,332,580 2,226,655
----------- -----------
3,316,117 3,210,192
----------- -----------
$19,582,079 $17,507,124
=========== ===========
</TABLE>
SEE NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
-3-
<PAGE> 4
INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
2000 1999
-------- --------
<S> <C> <C>
(Unaudited)
REVENUES:
Rental of flight equipment $603,136 $533,178
Flight equipment marketing 21,744 83,789
Interest and other 12,761 13,358
-------- --------
637,641 630,325
-------- --------
EXPENSES:
Interest 206,557 177,493
Depreciation of flight equipment 181,377 163,982
Flight equipment rent 36,009 32,726
Provision for overhaul 32,492 27,609
Selling, general & administrative 11,404 11,251
-------- --------
467,839 413,061
-------- --------
INCOME BEFORE INCOME TAXES 169,802 217,264
Provision for income taxes 58,803 76,591
-------- --------
NET INCOME $110,999 $140,673
======== ========
</TABLE>
SEE NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
-4-
<PAGE> 5
INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
2000 1999
---------- ----------
<S> <C> <C>
(Unaudited)
REVENUES:
Rental of flight equipment $1,715,973 $1,556,851
Flight equipment marketing 43,319 111,616
Interest and other 37,909 48,662
---------- ----------
1,797,201 1,717,129
---------- ----------
EXPENSES:
Interest 565,880 512,964
Depreciation of flight equipment 522,466 477,661
Flight equipment rent 105,341 96,036
Provision for overhaul 80,235 71,836
Selling, general & administrative 35,198 35,471
---------- ----------
1,309,120 1,193,968
---------- ----------
INCOME BEFORE INCOME TAXES 488,081 523,161
Provision for income taxes 171,060 185,413
---------- ----------
NET INCOME $ 317,021 $ 337,748
========== ==========
</TABLE>
SEE NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
-5-
<PAGE> 6
INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
2000 1999
----------- -----------
<S> <C> <C>
(Unaudited)
OPERATING ACTIVITIES:
Net Income $ 317,021 $ 337,748
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation of flight equipment 522,466 477,661
Deferred income taxes 218,218 32,187
Amortization of deferred debt issue costs 8,873 8,836
Gain on sale of flight equipment included
in amount financed -- (7,820)
Equity in net (income) loss of affiliates (1,329) 716
Change in unamortized debt discount (30,240) (4,537)
Changes in operating assets and liabilities:
Increase in notes receivable (47,737) (38,803)
Increase in accrued interest, other
receivables and other assets (10,145) (18,878)
Change in current income taxes (55,679) 145,295
Increase in accrued interest and
other payables 15,690 67,193
Increase (decrease) in rentals received in
advance 15,446 (7,895)
----------- -----------
Net cash provided by operating activities 952,584 991,703
----------- -----------
INVESTING ACTIVITIES:
Acquisition of flight equipment for
operating leases (2,551,133) (2,952,286)
Acquisition of flight equipment for finance-type
leases (44,051) --
(Increase) decrease in deposits and progress
payments (25,563) 97,027
Proceeds from disposal of flight equipment-net
of gain 118,199 1,191,725
Advance of notes receivable (20,703) --
Collections on notes receivable and sales-type
leases 39,889 243,335
Increase in investments (41,231) --
Dividends from unconsolidated subsidiary -- 5,000
----------- -----------
Net cash used in investing activities (2,524,593) (1,415,199)
----------- -----------
FINANCING ACTIVITIES:
Proceeds from debt financing 7,110,535 6,310,600
Payments in reduction of debt financing (5,414,640) (5,708,283)
Debt issue costs (3,909) (9,832)
Increase (Decrease) in customer deposits 64,120 (35,350)
Payment of common and preferred dividends (211,096) (73,574)
------------------------------------------------ ----------- -----------
Net cash provided by financing activities 1,545,010 483,561
----------- -----------
(Decrease) Increase in cash (26,999) 60,065
Cash at beginning of period 123,109 52,723
----------- -----------
Cash at end of period $ 96,110 $ 112,788
=========== ===========
</TABLE>
-6-
<PAGE> 7
INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(DOLLARS IN THOUSANDS)
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
<TABLE>
<CAPTION>
2000 1999
-------- --------
<S> <C> <C>
(Dollars in thousands)
(Unaudited)
Cash paid during the period for:
Interest (net of amount capitalized
$35,583(2000) and $34,051(1999)) $494,736 $419,235
Income taxes (net of refunds) 8,521 7,930
</TABLE>
2000:
Two aircraft were received in exchange for notes receivable and other
assets in the amount of $41,429.
1999:
Notes in the amount of $77,970 were received as partial payment in
exchange for flight equipment sold with a book value of $70,150.
SEE NOTE TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
-7-
<PAGE> 8
INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(UNAUDITED)
A. The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles
for interim financial information and in accordance with the instructions
to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by generally accepted
accounting principles for complete financial statements. In the opinion of
management, all adjustments (consisting only of normal recurring accruals)
considered necessary for a fair presentation have been included. Certain
reclassifications have been made to the 1999 unaudited condensed
consolidated financial statements to conform to the 2000 presentation.
Operating results for the nine months ended September 30, 2000 are not
necessarily indicative of the results that may be expected for the year
ended December 31, 2000. These statements should be read in conjunction
with the consolidated financial statements and footnotes thereto included
in the Company's annual report on Form 10-K for the year ended December 31,
1999.
B. New Accounting Pronouncements, Issued But Not Yet Effective
ILFC has reviewed and continues to review the effect of the implementation
of SFAS 133 - Accounting for Certain Derivative Instruments and Certain
Hedging Activities, as amended by SFAS 138 and related implementation
guidance ("SFAS 133"). SFAS 133 is effective for all fiscal years beginning
after June 15, 2000 (January 1, 2001 for the Company). SFAS 133 requires
that all derivative instruments be recorded on the balance sheet at their
fair value. Changes in the fair value of derivatives are recorded each
period in Current Earnings or Other Comprehensive Income, depending on
whether or not a derivative is designated as a hedge and to the extent it
is effective as part of a hedge transaction. As a result of the complexity
of implementing SFAS 133 and issues related to the Company's hedging
activities and changing hedged position, the Company has not yet determined
the impact that adopting SFAS 133 will have on its results of operations or
statement of financial position.
-8-
<PAGE> 9
ITEM 2 INTERNATIONAL LEASE FINANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD LOOKING STATEMENTS
Certain of the statements in this discussion, as well as other
forward-looking statements within this document, contain estimates and
projections of cash flows and debt financing to support future capital
requirements. While these forward-looking statements are made in good faith;
future, operating, market, competitive, economic and other conditions and events
could cause actual results to differ materially from those in the
forward-looking statements. The Company undertakes no obligation to release
publicly any revisions to these forward-looking statements to reflect events or
circumstances after the date hereof or to reflect the occurrence of anticipated
or unanticipated events.
FINANCIAL CONDITION
The Company borrows funds for the purchase of flight equipment,
including funds for progress payments during the construction phase from various
sources, principally on an unsecured basis. The Company's debt financing and
capital lease obligations was comprised of the following at the following dates:
<TABLE>
<CAPTION>
September 30, December 31,
2000 1999
------------ ------------
<S> <C> <C>
(Dollars in thousands)
Public term debt with single
maturities $ 3,321,330 $ 3,721,330
Public medium-term notes with
varying maturities 2,979,000 3,225,500
Capital lease obligations 571,541 669,576
Bank and other term debt 2,310,489 1,295,038
------------ ------------
Total term debt and capital lease
obligations 9,182,360 8,911,444
Commercial paper 4,403,332 2,978,353
Less: Deferred debt discount (58,241) (28,001)
------------ ------------
Total debt financing and capital lease
obligations $ 13,527,451 $ 11,861,796
============ ============
Composite interest rate 6.38% 6.14%
Percentage of total debt at fixed rates 60.31% 69.28%
Composite interest rate on fixed rate
debt 6.15% 6.06%
Bank prime rate 9.50% 8.50%
</TABLE>
The interest on substantially all of the public debt (exclusive of the
Commercial Paper) is fixed for the terms of the notes. The Company has committed
revolving loans and lines of credit with 53 banks aggregating $2.9 billion and
an uncommitted line of credit with one bank for $30.0 million. These revolving
loans and lines of credit principally provide for interest rates that vary
according to the pricing option in effect at the time of borrowing. Pricing
options include prime, a range from .22% over LIBOR to .32% over LIBOR based
upon utilization, or a rate determined by a competitive bid process with the
banks. The revolving loans and lines of credit are subject to
-9-
<PAGE> 10
facility fees of up to .08% of amounts available. Such financing is used
primarily as backup for the Company's Commercial Paper Program.
The Company has an effective shelf registration with respect to $2.0
billion of debt securities, under which $675.0 million of notes were sold
through September 30, 2000. Additionally, a $1,075.0 million Medium-Term Note
Program has been designated under the shelf registration, under which $700.0
million of notes have been sold through September 30, 2000.
The Company has a Euro denominated Medium-Term Note Program for $2.0
billion, under which $771.0 million in notes were sold as of September 30, 2000.
The Company has hedged the foreign currency risk of the notes through operating
lease payments or through swaps.
The Company has an Export Credit Facility, for up to a maximum of $4.3
billion, for approximately 75 aircraft to be delivered through 2001. The Company
has the right, but is not required, to use the facility to fund 85% of each
aircraft's purchase price. This facility is guaranteed by various European
Export Credit Agencies. The interest rate varies from 5.753% to 5.898% depending
on the delivery date of the aircraft. Through September 30, 2000, the Company
had borrowed $1.9 billion under this facility.
The Company believes that the combination of internally generated funds
and debt financing currently available to the Company will allow the Company to
meet its capital requirements for at least the next 12 months.
-10-
<PAGE> 11
INTERNATIONAL LEASE FINANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS-Three months ended September 30, 2000 versus 1999.
The 13.1% increase in revenues, from the rentals of flight equipment from
$533.2 million in 1999 to $603.1 million in 2000, is due to an increase in the
number of aircraft available for operating lease and an increase in the number
of wide bodies, for which higher lease payments are typically received. At
September 30, 2000 the Company's leased fleet consisted of 408 aircraft, 33.7%
of which were wide bodies compared to a fleet of 360 aircraft, 29.2% of which
were wide bodies, at September 30, 1999. Additionally, the quarterly average
cost of the leased fleet, which includes aircraft subject to sale-lease back
transactions from which rental income is earned, increased 14.0% from $19.3
billion in 1999 to $22.0 billion in 2000.
In addition to its leasing operations, the Company engages in the
marketing of flight equipment at the end of, or during, the lease term, as well
as the sales of flight equipment on a principal and commission basis. Revenue
from flight equipment marketing decreased from $83.8 million in 1999 to $21.7
million in 2000 as a result of the type and the number of flight equipment
marketed in each period. Thirty-two aircraft were sold in the third quarter of
1999 compared to three aircraft in the third quarter of 2000. In addition, the
Company sold no engines in the third quarter of 1999 compared to one engine in
the third quarter of 2000.
Interest expense increased from $177.5 million in 1999 to $206.6 million
in 2000 as a result of an increase in the average composite borrowing rate from
5.94% in 1999 to 6.36% in 2000 and an increase in debt outstanding, excluding
the effect of debt discount, from $11.8 billion in 1999 to $13.6 billion in
2000. The Company's composite borrowing rate fluctuated as follows:
<TABLE>
<CAPTION>
2000 1999 Increase
----- ----- -----
<S> <C> <C> <C>
Beginning of Quarter 6.33% 5.85% 0.48%
End of Quarter 6.38% 6.03% 0.35%
Average 6.36% 5.94% 0.42%
</TABLE>
Depreciation of flight equipment increased from $164.0 million in 1999 to
$181.4 million in 2000 due to the increased cost of the fleet.
Rent expense increased from $32.7 million in 1999 to $36.0 million in 2000
due to an increase in the lease rates resulting from an increase in interest
rates affecting the floating rate component of the lease rates, partially offset
by principal amortization.
Provision for overhauls increased from $27.6 million in 1999 to $32.5
million in 2000 due to an increase in the number of aircraft and aggregate
number of hours flown, on which the Company collects overhaul reserves. A change
in the number of aircraft on which the Company collects overhaul payments may
result in a corresponding change in the aggregate number of hours flown, for
which overhaul reserves are provided.
-11-
<PAGE> 12
INTERNATIONAL LEASE FINANCE CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS-Nine months ended September 30, 2000 versus 1999.
The 10.2% increase in revenues, from the rentals of flight equipment from
$1,556.9 million in 1999 to $1,716.0 million in 2000, is due to an increase in
the number of aircraft available for operating lease and an increase in the
number of wide bodies, for which higher lease payments are typically received.
At September 30, 2000 the Company's leased fleet consisted of 408 aircraft,
33.7% of which were wide bodies, compared to a fleet of 360 aircraft, 29.2% of
which were wide bodies, at September 30, 1999. Additionally, the average cost of
the leased fleet, which includes aircraft subject to sale-lease back
transactions from which rental income is earned, increased 10.4% from $19.1
billion in 1999 to $21.1 billion in 2000.
In addition to its leasing operations, the Company engages in the
marketing of flight equipment at the end of, or during, the lease term, as well
as the sales of flight equipment on a principal and commission basis. Revenue
from flight equipment marketing decreased from $111.6 million in 1999 to $43.3
million in 2000 as a result of the type and the number of the flight equipment
marketed in each period. Forty aircraft were sold in the first nine months of
1999 compared to five aircraft in the first nine months of 2000. In addition,
the Company sold 12 engines in the first nine months of 1999 compared to six
engines in the first nine months of 2000.
Interest expense increased from $513.0 million in 1999 to $565.9 million
in 2000 as a result of an increase in the average composite borrowing rate from
6.03% in 1999 to 6.26% in 2000 and an increase in debt outstanding, excluding
the effect of debt discount, from $11.8 billion in 1999 to $13.6 billion in
2000. The Company's composite borrowing rate fluctuated as follows:
<TABLE>
<CAPTION>
2000 1999 Increase
----- ----- -----
<S> <C> <C> <C>
Beginning of nine months 6.14% 6.03% .11%
End of nine months 6.38% 6.03% .35%
Average 6.26% 6.03% .23%
</TABLE>
Depreciation of flight equipment increased from $477.7 million in 1999 to
$522.5 million in 2000 due to the increased cost of the fleet.
Rent expense increased from $96.0 million in 1999 to $105.3 million in 2000
due to an increase in the lease rates resulting from an increase in interest
rates affecting the floating rate component of the lease rates, partially offset
by principal amortization.
Provision for overhauls increased from $71.8 million in 1999 to $80.2
million in 2000 due to an increase in the number of aircraft and aggregate
number of hours flown, on which the Company collects overhaul reserves. An
increase or decrease in the number of aircraft on which the Company collects
overhaul payments may result in a corresponding change in the aggregate number
of hours flown, for which overhaul reserves are provided.
-12-
<PAGE> 13
ITEM 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
VALUE AT RISK
Measuring potential losses in fair values has recently become the focus of
risk management efforts by many companies. Such measurements are performed
through the application of various statistical techniques. One such technique is
Value at Risk (VaR), a summary statistical measure that uses historical interest
rates, foreign currency exchange rates and equity prices which estimates the
volatility and correlation of these rates and prices to calculate the maximum
loss that could occur over a defined period of time given a certain probability.
ILFC believes that statistical models alone do not provide a reliable
method of monitoring and controlling market risk. While VaR models are
relatively sophisticated, the quantitative market risk information generated is
limited by the assumptions and parameters established in creating the related
models. Therefore, such models are tools and do not substitute for the
experience or judgement of senior management.
ILFC is exposed to market risk and the risk of loss of fair value
resulting from adverse fluctuations in interest rates and exchange prices. ILFC
statistically measured the loss of fair value through the application of a VaR
model at December 31, 1999 and September 30, 2000. In this analysis the net fair
value of ILFC was determined using the financial instrument assets, which
included the tax adjusted future flight equipment lease revenue in the VaR
calculation at December 31, 1999 and the aircraft book value at the end of
maturity in the VaR calculation at September 30, 2000 and the financial
instrument liabilities, which included the future servicing of the current debt.
The estimated impact of the current derivative positions was also taken into
account.
ILFC calculated the VaR with respect to the net fair value using the
variance-covariance (delta-normal) methodology. This calculation also used daily
historical interest rates for the two years ended December 31, 1999 and monthly
historical interest rates for the twenty years ending September 30, 2000. The
VaR model estimated the volatility of each of these interest rates and the
correlation among them. The yield curve was constructed using eleven key points
on the curve to model possible curve movements. Thus, the VaR measured the
sensitivity of the assets and liabilities to the calculated interest rate
exposures. These sensitivities were then applied to a grand covariance matrix,
which contained the historical movement of all risk factors. The results were
aggregated to provide a single amount that depicts the maximum potential loss in
fair value at a confidence level of 95 percent for a time period of one month.
As of December 31, 1999 and September 30, 2000, the VaR of ILFC with respect to
its aforementioned net fair value was $50 million and $16 million respectively.
-13-
<PAGE> 14
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits:
12. Computation of Ratios of Earnings to Fixed Charges
and Preferred Stock Dividends
27. Financial Data Schedule
b) Reports on Form 8-K:
Form 8-K, event date September 20, 2000 (Item 7)
Form 8-K, event date September 25, 2000 (Item 7)
-14-
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
INTERNATIONAL LEASE FINANCE CORPORATION
November 7, 2000 /S/ Leslie L. Gonda
LESLIE L. GONDA
Chairman of the Board
November 7, 2000 /S/ Alan H. Lund
ALAN H. LUND
Executive Vice President
Co-Chief Operating Officer
and Chief Financial Officer
-15-
<PAGE> 16
INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
INDEX TO EXHIBITS
Exhibit No.
12. Computation of Ratios of Earnings to Fixed Charges and Preferred Stock
Dividends
27. Financial Data Schedule
-16-
<PAGE> 17
INTERNATIONAL LEASE FINANCE CORPORATION AND SUBSIDIARIES
COMPUTATION OF RATIOS OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
2000 1999
---------- ----------
<S> <C> <C>
(Unaudited)
Earnings:
Net Income $ 317,021 $ 337,748
Add:
Provision for income taxes 171,060 185,413
Fixed charges 663,891 602,407
Less:
Capitalized interest 35,583 34,051
---------- ----------
Earnings as adjusted (A) $1,116,389 $1,091,517
========== ==========
Preferred dividend requirements $ 13,596 $ 13,074
Ratio of income before provision
for income taxes to net income 154% 155%
---------- ----------
Preferred dividend factor on pretax
basis 20,938 20,265
---------- ----------
Fixed Charges:
Interest expense 565,880 512,964
Capitalized interest 35,583 34,051
Interest factor of rents 62,428 55,392
---------- ----------
Fixed charges as adjusted (B) 663,891 602,407
---------- ----------
Fixed charges and preferred stock
dividends (C) $ 684,829 $ 622,672
========== ==========
Ratio of earnings to fixed charges
(A) divided by (B) 1.68x 1.81x
========== ==========
Ratio of earnings to fixed charges
and preferred stock dividends
(A) divided by (C) 1.63x 1.75x
========== ==========
</TABLE>
-17-
