Reportable Segments

12 Months Ended

Dec. 31, 2019

The Company has two reportable business 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 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):



For the year ended December 31, 2019	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	190,690	$	—	$	—		$	190,690
Maintenance reserve revenue	108,998		—		—			108,998
Spare parts and equipment sales	18,684		55,967		—			74,651
Gain on sale of leased equipment	20,044		—		—			20,044
Other revenue	14,738		277		(238		)	14,777
Total revenue	353,154		56,244		(238		)	409,160

Expenses:
Depreciation and amortization expense	86,159		77		—			86,236
Cost of spare parts and equipment sales	15,241		47,406		—			62,647
Write-down of equipment	18,220		—		—			18,220
General and administrative	81,302		5,221		—			86,523
Technical expense	8,122		—		—			8,122
Net finance costs:
Interest expense	66,889		—		—			66,889
Loss on debt extinguishment	220		—		—			220
Total finance costs	67,109		—		—			67,109
Total expenses	276,153		52,704		—			328,857
Earnings from operations	$	77,001	$	3,540	$	(238	)	$	80,303



For the Year ended December 31, 2018	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	175,609	$	—	$	—		$	175,609
Maintenance reserve revenue	87,009		—		—			87,009
Spare parts and equipment sales	30,122		41,019		—			71,141
Gain on sale of leased equipment	6,944		—		—			6,944
Other revenue	7,579		1,727		(1,662		)	7,644
Total revenue	307,263		42,746		(1,662		)	348,347

Expenses:
Depreciation and amortization expense	76,502		312		—			76,814
Cost of spare parts and equipment sales	28,290		32,735		—			61,025
Write-down of equipment	10,651		—		—			10,651
General and administrative	67,608		4,413		—			72,021
Technical expense	11,142		—		—			11,142
Interest expense	64,220		—		—			64,220
Total expenses	258,413		37,460		—			295,873
Earnings from operations	$	48,850	$	5,286	$	(1,662	)	$	52,474

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(1)	Represents revenue generated between our operating segments.



	Leasing and Related Operations		Spare Parts Sales		Eliminations		Total
Total assets as of December 31, 2019	$	1,898,313	$	42,295	$	—	$	1,940,608
Total assets as of December 31, 2018	$	1,882,860	$	52,083	$	—	$	1,934,943