Reportable Segments

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Reportable Segments

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 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 June 30, 2022	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	36,704	$	—	$	—	$	36,704
Maintenance reserve revenue	24,245		—		—		24,245
Spare parts and equipment sales	49		6,743		—		6,792
Gain on sale of leased equipment	498		—		—		498
Gain on sale of financial assets	3,116		—		—		3,116
Other revenue	6,691		58		(29)		6,720
Total revenue	71,303		6,801		(29)		78,075
Expenses:
Depreciation and amortization expense	21,585		27		—		21,612
Cost of spare parts and equipment sales	4		7,010		—		7,014
Write-down of equipment	78		—		—		78
General and administrative	19,581		846		—		20,427
Technical expense	3,436		—		—		3,436
Net finance costs:
Interest expense	16,023		—		—		16,023
Total finance costs	16,023		—		—		16,023
Total expenses	60,707		7,883		—		68,590
Earnings (loss) from operations	$	10,596	$	(1,082)	$	(29)	$	9,485

Three Months Ended June 30, 2021	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	32,431	$	—	$	—	$	32,431
Maintenance reserve revenue	17,278		—		—		17,278
Spare parts and equipment sales	84		3,375		110		3,569
Asset transition fee (1)	6,256		—		—		6,256
Other revenue	6,916		41		(19)		6,938
Total revenue	62,965		3,416		91		66,472
Expenses:
Depreciation and amortization expense	23,311		29		—		23,340
Cost of spare parts and equipment sales	2		3,276		—		3,278
Write-down of equipment	2,246		—		—		2,246
General and administrative	19,143		466		(110)		19,499
Technical expense	2,296		—		—		2,296
Net finance costs:
Interest expense	16,987		—		—		16,987
Total finance costs	16,987		—		—		16,987
Total expenses	63,985		3,771		(110)		67,646
(Loss) earnings from operations	$	(1,020)	$	(355)	$	201	$	(1,174)

_____________________________

(1)Asset transition fee reflects the settlement received from the close out of an engine transition program.

Six Months Ended June 30, 2022	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	74,829	$	—	$	—	$	74,829
Maintenance reserve revenue	39,079		—		—		39,079
Spare parts and equipment sales	251		13,171		—		13,422
Gain on sale of leased equipment	2,796		—		—		2,796
Gain on sale of financial assets	3,116		—		—		3,116
Other revenue	13,503		234		(87)		13,650
Total revenue	133,574		13,405		(87)		146,892
Expenses:
Depreciation and amortization expense	43,367		54		—		43,421
Cost of spare parts and equipment sales	10		11,866		—		11,876
Write-down of equipment	21,195		—		—		21,195
General and administrative	42,387		1,645		—		44,032
Technical expense	9,082		—		—		9,082
Net finance costs:
Interest expense	32,906		—		—		32,906
Total finance costs	32,906		—		—		32,906
Total expenses	148,947		13,565		—		162,512
Loss from operations	$	(15,373)	$	(160)	$	(87)	$	(15,620)

Six Months Ended June 30, 2021	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	63,951	$	—	$	—	$	63,951
Maintenance reserve revenue	37,090		—		—		37,090
Spare parts and equipment sales	169		7,966		—		8,135
Asset transition fee (1)	6,256		—		—		6,256
Other revenue	12,122		97		(54)		12,165
Total revenue	119,588		8,063		(54)		127,597
Expenses:
Depreciation and amortization expense	47,423		58		—		47,481
Cost of spare parts and equipment sales	8		7,093		(14)		7,087
Write-down of equipment	4,113		—		—		4,113
General and administrative	34,700		950		—		35,650
Technical expense	3,606		—		—		3,606
Net finance costs:
Interest expense	32,006		—		—		32,006
Total finance costs	32,006		—		—		32,006
Total expenses	121,856		8,101		(14)		129,943
Loss from operations	$	(2,268)	$	(38)	$	(40)	$	(2,346)

_____________________________

(1)Asset transition fee reflects the settlement received from the close out of an engine transition program.

	Leasing and  Related Operations		Spare Parts Sales		Eliminations		Total
Total assets as of June 30, 2022	$	2,345,586	$	50,797	$	—	$	2,396,383
Total assets as of December 31, 2021	$	2,415,635	$	47,292	$	—	$	2,462,927