Operating Segments

3 Months Ended

Mar. 31, 2015

Operating Segments

Operating Segments

10. 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):

	Leasing and
For the three months ended March 31, 2015	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	25,097	$	—	$	—	$	25,097
Maintenance reserve revenue		14,148		—		—		14,148
Spare parts sales		—		2,151		—		2,151
Gain on sale of leased equipment		662		—		—		662
Other revenue		617		295		(156)		756
Total revenue		40,524		2,446		(156)		42,814
Expenses:
Depreciation and amortization expense		17,633		72		—		17,705
Cost of spare parts sales		—		1,480		—		1,480
General and administrative		9,337		635		—		9,972
Net finance costs		8,326		90		—		8,416
Other expense		1,856		—		—		1,856
Total expenses		37,152		2,277		—		39,429
Earnings from operations	$	3,372	$	169	$	(156)	$	3,385
(1) Represents revenue generated between our        operating segments
	Leasing and
For the three months ended March 31, 2014	Related Operations		Spare Parts Sales		Eliminations		Total
Revenue:
Lease rent revenue	$	26,900	$	—	$	—	$	26,900
Maintenance reserve revenue		14,030		—		—		14,030
Spare parts sales		—		418		—		418
Gain on sale of leased equipment		231		—		—		231
Other revenue		1,046		715		—		1,761
Total revenue		42,207		1,133		—		43,340
Expenses:
Depreciation and amortization expense		15,638		72		—		15,710
Cost of spare parts sales		—		340		—		340
General and administrative		9,021		664		—		9,685
Net finance costs		9,359		—		—		9,359
Other expense		1,815		—		—		1,815
Total expenses		35,833		1,076		—		36,909
Earnings from operations	$	6,374	$	57	$	—	$	6,431
Total assets as of March 31, 2015	$	1,240,865	$	18,861	$	—	$	1,259,726
Total assets as of December 31, 2014	$	1,241,837	$	19,789	$	—	$	1,261,626