XML 40 R23.htm IDEA: XBRL DOCUMENT v3.24.0.1
Business Segments and Customer Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Business Segments and Customer Information Business Segments and Customer Information
Segment Information

The sale of the Federal and Defense segment is intended to allow us to focus on a long-term strategic growth strategy focused on higher margin and higher growth aftermarket parts distribution and MRO businesses. Following the completion of the Federal and Defense segment sale transaction, management of our business operations is conducted under two reportable operating segments:

Aviation
Our Aviation segment provides aftermarket MRO and distribution services to commercial, business and general aviation, cargo, military and defense, and rotorcraft customers globally. Core services include parts distribution, MRO services including fuel controls, avionics, pneumatics, hydraulics, wheel and brake, and rotable exchange and supply chain services.

Fleet
Our Fleet segment provides parts, inventory management, e-commerce fulfillment, logistics, supply chain support and other services to support the commercial aftermarket medium- and heavy-duty truck market, and the United States Postal Service ("USPS"). Core services include vehicle parts distribution, sourcing, IT solutions, customized fleet logistics, warehousing, kitting, just-in-time supply chain management, alternative product sourcing, and engineering and technical support.

The operating segments reported below are our segments for which separate financial information is available and for which segment results are evaluated regularly by our Chief Executive Officer in deciding how to allocate resources and in assessing performance. We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude inter-segment sales as these activities are eliminated in consolidation. Corporate expenses are primarily selling, general and administrative expenses not allocated to segments. Corporate assets are primarily cash, property and equipment and investments held in separate trust.

Our segment information is as follows (in thousands):
For the years ended December 31,
 202320222021
Revenues:
Aviation $544,020 $408,112 $247,852 
Fleet316,468 261,336 233,532 
Total revenues$860,488 $669,448 $481,384 
Operating income (loss):   
Aviation$71,168 $36,416 $(14,373)
Fleet31,257 23,911 20,426 
Corporate/unallocated expenses (a)
(14,429)(6,723)(8,758)
Total operating income (loss)
$87,996 $53,604 $(2,705)
Depreciation and amortization expense:   
Aviation$16,080 $13,174 $11,374 
Fleet5,300 8,783 9,679 
Total depreciation and amortization$21,380 $21,957 $21,053 
Capital expenditures:   
Aviation$16,467 $5,961 $7,468 
Fleet2,198 5,502 1,669 
Corporate269 861 843 
Total capital expenditures$18,934 $12,324 $9,980 
(a) Certain corporate costs previously allocated to the Federal and Defense business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations.
December 31,
 20232022
Total assets:
Aviation$950,143 $637,615 
Fleet274,382 218,138 
Corporate32,811 33,097 
Assets held-for-sale
93,002 110,939 
Total assets$1,350,338 $999,789 

Customer Information

Our revenues are derived from the delivery of products and services performed for commercial and government customers. Revenues from the USPS, reported within our Fleet segment, represented 19%, 23%, and 30% of consolidated revenues for 2023, 2022 and 2021, respectively. Our customers also include various other commercial entities and government agencies. See Note (4) "Revenue Recognition" for revenue by customer.
We do not measure revenue or profit by product or service lines, either for internal management or external financial reporting purposes, because it would be impractical to do so. Products offered and services performed are determined by contract requirements and the types of products and services provided for one contract bear no relation to similar products and services provided on another contract. Products and services provided vary when new contracts begin, or current contracts expire. In many cases, more than one product or service is provided under a contract. Accordingly, cost and revenue tracking are designed to best serve contract requirements and segregating costs and revenues by product or service lines in situations for which it is not required would be difficult and costly to both us and our customers.

Geographical Information

Revenue by geography is based on the billing address of the customer. Our revenue by geographic area is as follows (in thousands):
 Years ended December 31,
 202320222021
United States$656,767 $557,615 $399,423 
Other Countries (a)
203,721 111,833 81,961 
Total revenue$860,488 $669,448 $481,384 
(a) No individual country, other than disclosed above, exceeded 10% of our total revenue for any period presented.