Reportable Segments

The Company has two reportable segments: (i) Leasing and Related Operations which involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses and (ii) Spare Parts Sales which involves the purchase and resale of after-market engine and airframe parts, whole engines, engine modules and portable aircraft components.

The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies.

The following tables present a summary of the reportable segments (in thousands):



Three Months Ended March 31, 2019	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	48,369	$	—	$	—		$	48,369
Maintenance reserve revenue	25,350		—		—			25,350
Spare parts and equipment sales	2,485		15,017		—			17,502
Gain on sale of leased equipment	9,570		—		—			9,570
Other revenue	2,978		94		(94		)	2,978
Total revenue	88,752		15,111		(94		)	103,769

Expenses:
Depreciation and amortization expense	20,236		22		—			20,258
Cost of spare parts and equipment sales	1,836		12,576		—			14,412
Write-down of equipment	1,105		—		—			1,105
General and administrative	19,974		1,466		—			21,440
Technical expense	1,787		1		—			1,788
Interest expense	17,879		—		—			17,879
Total expenses	62,817		14,065		—			76,882
Earnings from operations	$	25,935	$	1,046	$	(94	)	$	26,887



Three months ended March 31, 2018	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	39,644	$	—	$	—		$	39,644
Maintenance reserve revenue	15,440		—		—			15,440
Spare parts and equipment sales (2)	—		12,986		—			12,986
Gain on sale of leased equipment (2)	545		—		—			545
Other revenue	1,851		1,113		(1,082		)	1,882
Total revenue	57,480		14,099		(1,082		)	70,497

Expenses:
Depreciation and amortization expense	17,269		86		—			17,355
Cost of spare parts and equipment sales (2)	—		11,388		—			11,388
Write-down of equipment	—		—		—			—
General and administrative	14,495		1,116		—			15,611
Technical expense	3,677		—		—			3,677
Interest expense	13,595		—		—			13,595
Total expenses	49,036		12,590		—			61,626
Earnings from operations	$	8,444	$	1,509	$	(1,082	)	$	8,871

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(1)	Represents revenue generated between our operating segments.

(2)

Effective January 1, 2018, the Company adopted ASC 606 – Revenue from Contracts with Customers and has identified the transfer of engines and airframes from the lease portfolio to the Spare Parts segment for part out as sales to customers in accordance with the ordinary operations of our Spare Parts reportable segment. As such, the Company presents the sale of these assets on a gross basis and have reclassified the gross revenue and costs on sale to the Spare parts and equipment sales and Cost of spare parts and equipment sales line items from the net gain (loss) presentation within the Gain on sale of leased equipment line item.



	Leasing and Related Operations		Spare Parts Sales		Eliminations		Total
Total assets as of March 31, 2019	$	1,851,884	$	53,618	$	—	$	1,905,502
Total assets as of December 31, 2018	$	1,882,860	$	52,083	$	—	$	1,934,943