Reportable Segments

3 Months Ended

Mar. 31, 2018

Reportable Segments

Reportable Segments

11. 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 and airframe 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):

	Leasing and
Three months ended March 31, 2018	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	39,644	$	—	$	—	$	39,644
Maintenance reserve revenue		15,440		—		—		15,440
Spare parts and equipment sales		—		6,286		—		6,286
Gain on sale of leased equipment		640		—		—		640
Other revenue		1,851		1,113		(1,082)		1,882
Total revenue		57,575		7,399		(1,082)		63,892
Expenses:
Depreciation and amortization expense		17,269		86		—		17,355
Cost of spare parts and equipment sales		—		4,783		—		4,783
Write-down of equipment		—		—		—		—
General and administrative		14,495		1,116		—		15,611
Technical expense		3,677		—		—		3,677
Interest expense		13,595		—		—		13,595
Total expenses		49,036		5,985		—		55,021
Earnings from operations	$	8,539	$	1,414	$	(1,082)	$	8,871
	Leasing and
Three months ended March 31, 2017	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	30,233	$	—	$	—	$	30,233
Maintenance reserve revenue		31,961		—		—		31,961
Spare parts sales and equipment sales		6,425		6,171		—		12,596
Gain on sale of leased equipment		983		—		—		983
Other revenue		2,125		175		(127)		2,173
Total revenue		71,727		6,346		(127)		77,946
Expenses:
Depreciation and amortization expense		16,540		88		—		16,628
Cost of spare parts and equipment sales (2)		4,705		5,613		—		10,318
Write-down of equipment (2)		12,091		—		—		12,091
General and administrative		12,414		787		—		13,201
Technical expense		2,292		—				2,292
Interest expense		10,865		—		—		10,865
Total expenses		58,907		6,488		—		65,395
Earnings (loss) from operations	$	12,820	$	(142)	$	(127)	$	12,551
(1) Represents revenue generated between our operating segments.
(2) The amounts herein include reclassifications of scrap inventory write-offs and lower of cost or market write-downs that were previously presented within Write-down of equipment to the Costs of spare parts and equipment sales expense line item. The three months ended March 31, 2017 was impacted by a $0.9 million reclassification, reflected as an increase to Cost of spare parts and equipment sales and a decrease to Write-down of equipment.
Total assets as of March 31, 2018	$	1,693,802	$	30,703	$	—	$	1,724,505
Total assets as of December 31, 2017	$	1,580,094	$	23,337	$	—	$	1,603,431