Reportable Segments (Tables)

9 Months Ended

Sep. 30, 2019

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



Three Months Ended September 30, 2019	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	49,090	$	—	$	—		$	49,090
Maintenance reserve revenue	39,173		—		—			39,173
Spare parts and equipment sales	9,583		14,826		—			24,409
Gain on sale of leased equipment	4,589		—		—			4,589
Other revenue	3,098		72		(65		)	3,105
Total revenue	105,533		14,898		(65		)	120,366

Expenses:
Depreciation and amortization expense	22,716		20		—			22,736
Cost of spare parts and equipment sales	7,825		12,370		—			20,195
Write-down of equipment	6,954		—		—			6,954
General and administrative	22,081		1,176		—			23,257
Technical expense	1,739		—		—			1,739
Interest expense	16,572		—		—			16,572
Total expenses	77,887		13,566		—			91,453
Earnings from operations	$	27,646	$	1,332	$	(65	)	$	28,913

Three Months Ended September 30, 2018	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	46,984	$	—	$	—		$	46,984
Maintenance reserve revenue	19,370		—		—			19,370
Spare parts and equipment sales (2)	—		11,529		—			11,529
Gain on sale of leased equipment (2)	1,065		—		—			1,065
Other revenue	2,010		274		(274		)	2,010
Total revenue	69,429		11,803		(274		)	80,958

Expenses:
Depreciation and amortization expense	19,771		90		—			19,861
Cost of spare parts and equipment sales (2)	—		8,832		—			8,832
Write-down of equipment	1,215		—		—			1,215
General and administrative	17,003		1,121		—			18,124
Technical expense	2,290		—		—			2,290
Interest expense	17,885		—		—			17,885
Total expenses	58,164		10,043		—			68,207
Earnings from operations	$	11,265	$	1,760	$	(274	)	$	12,751



Nine Months Ended September 30, 2019	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	142,484	$	—	$	—		$	142,484
Maintenance reserve revenue	90,998		—		—			90,998
Spare parts and equipment sales	12,334		44,163		—			56,497
Gain on sale of leased equipment	19,279		—		—			19,279
Other revenue	10,659		197		(182		)	10,674
Total revenue	275,754		44,360		(182		)	319,932

Expenses:
Depreciation and amortization expense	62,975		62		—			63,037
Cost of spare parts and equipment sales	9,913		37,279		—			47,192
Write-down of equipment	11,321		—		—			11,321
General and administrative	61,974		4,112		—			66,086
Technical expense	4,933		1		—			4,934
Net finance costs:
Interest expense	51,232		—		—			51,232
Loss on debt extinguishment	220		—		—			220
Total finance costs	51,452		—		—			51,452
Total expenses	202,568		41,454		—			244,022
Earnings from operations	$	73,186	$	2,906	$	(182	)	$	75,910

Nine Months Ended September 30, 2018	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	129,710	$	—	$	—		$	129,710
Maintenance reserve revenue	56,855		—		—			56,855
Spare parts and equipment sales (2)	—		36,168		—			36,168
Gain on sale of leased equipment (2)	1,662		—		—			1,662
Other revenue	5,716		1,596		(1,550		)	5,762
Total revenue	193,943		37,764		(1,550		)	230,157

Expenses:
Depreciation and amortization expense	55,336		264		—			55,600
Cost of spare parts and equipment sales (2)	—		30,524		—			30,524
Write-down of equipment	4,793		—		—			4,793
General and administrative	47,181		3,336		—			50,517
Technical expense	9,199		—		—			9,199
Interest expense	46,617		—		—			46,617
Total expenses	163,126		34,124		—			197,250
Earnings from operations	$	30,817	$	3,640	$	(1,550	)	$	32,907

______________________________


(1)	Represents revenue generated between our operating segments.

(2)

Effective January 1, 2018, the Company adopted ASC 606 and has identified the sale of parts from engines previously transferred from the lease portfolio to the Spare Parts segment as sales to customers of the reporting entity. As such, the Company presents the sale of these assets on a gross basis and have reclassified the three and nine months ended September 30, 2018 gross revenue and costs of 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 September 30, 2019	$	1,884,127	$	46,308	$	—	$	1,930,435
Total assets as of December 31, 2018	$	1,882,860	$	52,083	$	—	$	1,934,943