Operating Segments

3 Months Ended

Mar. 31, 2016

Operating Segments

Operating Segments

8. 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, 2016	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	28,139	$	—	$	—	$	28,139
Maintenance reserve revenue		15,819		—		—		15,819
Spare parts sales		—		2,609		—		2,609
Gain on sale of leased equipment		2,989		—		—		2,989
Other revenue		933		358		(291)		1,000
Total revenue		47,880		2,967		(291)		50,556
Expenses:
Depreciation and amortization expense		16,562		82		—		16,644
Cost of spare parts sales		—		1,915		—		1,915
General and administrative		10,980		772		—		11,752
Net finance costs		9,913		95		—		10,008
Other expense		3,732		—		—		3,732
Total expenses		41,187		2,864		—		44,051
Earnings from operations	$	6,693	$	103	$	(291)	$	6,505
	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
Total assets as of March 31, 2016	$	1,252,992	$	24,468	$	—	$	1,277,460
Total assets as of December 31, 2015	$	1,269,396	$	26,586	$	—	$	1,295,982