Operating Segments

12 Months Ended

Dec. 31, 2015

Operating Segments

Operating Segments

(18) 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 year ended December 31, 2015	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	107,866	$	—	$	—	$	107,866
Maintenance reserve revenue		55,064		—		—		55,064
Spare parts and equipment sales		9,975		15,633		—		25,608
Gain on sale of leased equipment		8,354		—		—		8,354
Other revenue		2,517		659		(458)		2,718
Total revenue		183,776		16,292		(458)		199,610
Expenses:
Depreciation and amortization expense		69,299		287		—		69,586
Cost of spare parts and equipment sales		5,734		12,132		—		17,866
General and administrative		39,974		2,770		—		42,744
Net finance costs		37,474		387		—		37,861
Other expense		18,584		—		—		18,584
Total expenses		171,065		15,576		—		186,641
Earnings from operations	$	12,711	$	716	$	(458)	$	12,969
	Leasing and
For the year ended December 31, 2014	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	101,748	$	—	$	—	$	101,748
Maintenance reserve revenue		53,363		—		—		53,363
Spare parts and equipment sales		—		8,917		—		8,917
Gain on sale of leased equipment		5,753		—		—		5,753
Other revenue		3,581		1,661		(736)		4,506
Total revenue		164,445		10,578		(736)		174,287
Expenses:
Depreciation and amortization expense		65,152		289		—		65,441
Cost of spare parts and equipment sales		—		7,474		—		7,474
General and administrative		33,211		2,648		—		35,859
Net finance costs		36,779		283		—		37,062
Other expense		17,830		108		—		17,938
Total expenses		152,972		10,802		—		163,774
Earnings (loss) from operations	$	11,473	$	(224)	$	(736)	$	10,513
(1) Represents revenue generated between our operating segments
Total assets as of December 31, 2015	$	1,281,991	$	26,586	$	—	$	1,308,577
Total assets as of December 31, 2014	$	1,239,227	$	22,399	$	—	$	1,261,626