Operating Segments

12 Months Ended

Dec. 31, 2013

Operating Segments

Operating Segments

(16) Operating Segments

The Company operates in two 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 (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 and leasing of engines destined for disassembly and sale of parts.

The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses and inter-company allocation of interest expense. 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 operating segments (amounts in thousands):

For the year ended December 31, 2013	Leasing and Related Operations		Spare Parts Sales		Total
Revenue:
Lease rent revenue	$	101,737	$	—	$	101,737
Maintenance reserve revenue	46,694		—		46,694
Spare parts sales	—		88		88
Gain on sale of leased equipment	5,675		—		5,675
Other revenue	3,365		853		4,218
Total revenue	157,471		941		158,412
Expenses:
Depreciation and amortization expense	58,684		43		58,727
General and administrative	33,490		378		33,868
Interest expense	38,719		—		38,719
Other expense	19,312		12		19,324
Total expenses	150,205		433		150,638
Earnings from operations	$	7,266	$	508	$	7,774
Total assets as of December 31, 2013	$	1,194,800	$	4,429	$	1,199,229