SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

17. SEGMENT INFORMATION

Our reportable segments represent strategic business units comprised of investments in different types of transportation and infrastructure assets. We have three reportable segments which operate in the Equipment Leasing and Infrastructure businesses across several market sectors. Our reportable segments are (i) Aviation Leasing, (ii) Jefferson Terminal and (iii) Ports and Terminals. The Aviation Leasing segment consists of aircraft and aircraft engines held for lease and are typically held long-term. The Jefferson Terminal segment consists of a multi-modal crude oil and refined products terminal and other related assets. The Ports and Terminals segment consists of Repauno, which is a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern and multiple industrial development opportunities, and an equity method investment in Long Ridge, which is a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction.

In December 2019, we completed the sale of substantially all of our railroad business, which was formerly reported as our Railroad segment. Under ASC 205-20, this disposition met the criteria to be reported as discontinued operations and the assets, liabilities and results of operations have been presented as discontinued operations for all periods presented. Additionally, in accordance with ASC 280, we assessed our reportable segments. We determined that our retained investment of the railroad business no longer met the requirement as a reportable segment. Accordingly, we have presented this operating segment, along with Corporate results, within Corporate and Other effective in 2019. All prior periods have been restated for historical comparison across segments.

Corporate and Other primarily consists of debt, unallocated company level general and administrative expenses, and management fees. Additionally, Corporate and Other includes (i) offshore energy related assets, which consist of vessels and equipment that support offshore oil and gas drilling and production which are typically subject to long-term operating leases, (ii) an investment in an unconsolidated entity engaged in the acquisition and leasing of shipping containers and (iii) railroad assets retained after the December 2019 sale, which consist of equipment that support a railcar cleaning business.

Aviation Leasing Organizational Restructuring

We recently completed an organizational restructuring of the Aviation Leasing segment. Previously, Aviation Leasing’s employees were employed by the Manager and compensation and related costs associated with these employees were reimbursed to the Manager, per the Management Agreement (see Note 16). These costs were reported within Corporate and Other.

Effective in the first quarter of 2020, Aviation Leasing’s employees are employed by one of our subsidiaries. Compensation and related costs incurred by this subsidiary will be reported within the Aviation Leasing segment. Prior periods have been restated for historical comparison.

The following table presents our adjustments for the three months ended September 30, 2019.

	As Previously Reported				Adjustments				As Reported
	Aviation Leasing		Corporate and Other		Aviation Leasing		Corporate and Other		Aviation Leasing		Corporate and Other
Operating expenses	$	2,473	$	4,381	$	749	$	—	$	3,222	$	4,381
General and administrative	—		6,284		—		(749)		—		5,535
Acquisition and transaction expenses	65		5,278		993		(993)		1,058		4,285

The following table presents our adjustments for the nine months ended September 30, 2019.

	As Previously Reported				Adjustments				As Reported
	Aviation Leasing		Corporate and Other		Aviation Leasing		Corporate and Other		Aviation Leasing		Corporate and Other
Operating expenses	$	11,272	$	11,088	$	2,043	$	—	$	13,315	$	11,088
General and administrative	—		15,313		—		(2,043)		—		13,270
Acquisition and transaction expenses	78		9,047		2,928		(2,928)		3,006		6,119

The accounting policies of the segments are the same as those described in the summary of significant accounting policies; however, financial information presented by segment includes the impact of intercompany eliminations. We evaluate investment performance for each reportable segment primarily based on net income attributable to shareholders and Adjusted EBITDA.

Adjusted EBITDA is defined as net income (loss) attributable to shareholders from continuing operations, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, and interest expense, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities, and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA.

We believe that net income (loss) attributable to shareholders, as defined by GAAP, is the most appropriate earnings measurement with which to reconcile Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income (loss) attributable to shareholders as determined in accordance with GAAP.

The following tables set forth certain information for each reportable segment:

I. For the Three Months Ended September 30, 2020

	Three Months Ended September 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Equipment leasing revenues	$	66,491	$	—	$	—	$	3,308	$	69,799
Infrastructure revenues	—		11,697		1,242		971		13,910
Total revenues	66,491		11,697		1,242		4,279		83,709
Expenses
Operating expenses	4,515		9,661		2,704		6,248		23,128
General and administrative	—		—		—		4,241		4,241
Acquisition and transaction expenses	2,060		—		20		362		2,442
Management fees and incentive allocation to affiliate	—		—		—		4,591		4,591
Depreciation and amortization	33,014		7,250		368		1,994		42,626
Asset impairment	3,915		—		—		—		3,915
Interest expense	—		1,487		298		25,119		26,904
Total expenses	43,504		18,398		3,390		42,555		107,847
Other (expense) income
Equity in (losses) income of unconsolidated entities	(247)		—		(2,285)		31		(2,501)
Loss on sale of assets, net	(1,114)		—		—		—		(1,114)
Interest income	41		—		—		17		58
Total other (expense) income	(1,320)		—		(2,285)		48		(3,557)
Income (loss) from continuing operations before income taxes	21,667		(6,701)		(4,433)		(38,228)		(27,695)
(Benefit from) provision for income taxes	(1,873)		3		(656)		40		(2,486)
Net income (loss) from continuing operations	23,540		(6,704)		(3,777)		(38,268)		(25,209)
Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries	—		(3,809)		(67)		—		(3,876)
Dividends on preferred shares	—		—		—		4,625		4,625
Net income (loss) from continuing operations attributable to shareholders	$	23,540	$	(2,895)	$	(3,710)	$	(42,893)	$	(25,958)

The following table sets forth a reconciliation of Adjusted EBITDA to net loss attributable to shareholders from continuing operations:

	Three Months Ended September 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Adjusted EBITDA	$	70,562	$	4,348	$	(837)	$	(15,437)	$	58,636
Add: Non-controlling share of Adjusted EBITDA									1,955
Add: Equity in losses of unconsolidated entities									(2,501)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities									(120)
Less: Interest expense									(26,904)
Less: Depreciation and amortization expense									(52,532)
Less: Incentive allocations									—
Less: Asset impairment charges									(3,915)
Less: Changes in fair value of non-hedge derivative instruments									—
Less: Losses on the modification or extinguishment of debt and capital lease obligations									—
Less: Acquisition and transaction expenses									(2,442)
Less: Equity-based compensation expense									(621)
Less: Benefit from income taxes									2,486
Net loss attributable to shareholders from continuing operations									$	(25,958)

Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows:

	Three Months Ended September 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Africa	$	1,781	$	—	$	—	$	—	$	1,781
Asia	28,522		—		—		3,308		31,830
Europe	29,011		—		—		—		29,011
North America	6,911		11,697		1,242		971		20,821
South America	266		—		—		—		266
Total	$	66,491	$	11,697	$	1,242	$	4,279	$	83,709

II. For the Nine Months Ended September 30, 2020

	Nine Months Ended September 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Equipment leasing revenues	$	224,742	$	—	$	—	$	11,340	$	236,082
Infrastructure revenues	—		49,519		1,556		3,701		54,776
Total revenues	224,742		49,519		1,556		15,041		290,858
Expenses
Operating expenses	13,163		43,894		6,579		17,508		81,144
General and administrative	—		—		—		13,292		13,292
Acquisition and transaction expenses	6,845		—		821		1,631		9,297
Management fees and incentive allocation to affiliate	—		—		—		14,113		14,113
Depreciation and amortization	97,848		21,636		1,122		5,937		126,543
Asset impairment	14,391		—		—		—		14,391
Interest expense	—		7,225		1,045		63,289		71,559
Total expenses	132,247		72,755		9,567		115,770		330,339
Other (expense) income
Equity in losses of unconsolidated entities	(1,432)		—		(3,961)		(52)		(5,445)
Loss on sale of assets, net	(2,158)		(7)		—		—		(2,165)
Loss on extinguishment of debt	—		(4,724)		—		—		(4,724)
Interest income	70		22		—		29		121
Other income	—		32		—		—		32
Total other expense	(3,520)		(4,677)		(3,961)		(23)		(12,181)
Income (loss) from continuing operations before income taxes	88,975		(27,913)		(11,972)		(100,752)		(51,662)
(Benefit from) provision for income taxes	(5,255)		212		(1,534)		243		(6,334)
Net income (loss) from continuing operations	94,230		(28,125)		(10,438)		(100,995)		(45,328)
Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries	—		(12,490)		(234)		—		(12,724)
Dividends on preferred shares	—		—		—		13,243		13,243
Net income (loss) from continuing operations attributable to shareholders	$	94,230	$	(15,635)	$	(10,204)	$	(114,238)	$	(45,847)

The following table sets forth a reconciliation of Adjusted EBITDA to net loss attributable to shareholders from continuing operations:

	Nine Months Ended September 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Adjusted EBITDA	$	231,453	$	11,885	$	(3,038)	$	(43,197)	$	197,103
Add: Non-controlling share of Adjusted EBITDA									7,406
Add: Equity in losses of unconsolidated entities									(5,445)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities									167
Less: Interest expense									(71,559)
Less: Depreciation and amortization expense									(149,937)
Less: Incentive allocations									—
Less: Asset impairment charges									(14,391)
Less: Changes in fair value of non-hedge derivative instruments									(181)
Less: Losses on the modification or extinguishment of debt and capital lease obligations									(4,724)
Less: Acquisition and transaction expenses									(9,297)
Less: Equity-based compensation expense									(1,323)
Less: Benefit from income taxes									6,334
Net loss attributable to shareholders from continuing operations									$	(45,847)

Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows:

	Nine Months Ended September 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Africa	$	10,254	$	—	$	—	$	—	$	10,254
Asia	86,799		—		—		11,340		98,139
Europe	99,870		—		—		—		99,870
North America	24,980		49,519		1,556		3,701		79,756
South America	2,839		—		—		—		2,839
Total	$	224,742	$	49,519	$	1,556	$	15,041	$	290,858

III. For the Three Months Ended September 30, 2019

	Three Months Ended September 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Equipment leasing revenues	$	86,305	$	—	$	—	$	954	$	87,259
Infrastructure revenues	—		60,537		4,174		730		65,441
Total revenues	86,305		60,537		4,174		1,684		152,700
Expenses
Operating expenses	3,222		69,712		5,404		4,381		82,719
General and administrative	—		—		—		5,535		5,535
Acquisition and transaction expenses	1,058		—		—		4,285		5,343
Management fees and incentive allocation to affiliate	—		—		—		7,378		7,378
Depreciation and amortization	33,911		5,717		1,687		1,950		43,265
Interest expense	—		3,927		469		20,794		25,190
Total expenses	38,191		79,356		7,560		44,323		169,430
Other income (expense)
Equity in (losses) earnings of unconsolidated entities	(885)		(162)		—		73		(974)
Gain on sale of assets, net	37,060		—		—		—		37,060
Interest income	31		26		47		17		121
Other income (expense)	—		772		(644)		1,003		1,131
Total other income (expense)	36,206		636		(597)		1,093		37,338
Income (loss) from continuing operations before income taxes	84,320		(18,183)		(3,983)		(41,546)		20,608
Provision for income taxes	816		56		—		—		872
Net income (loss) from continuing operations	83,504		(18,239)		(3,983)		(41,546)		19,736
Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries	—		(5,031)		(80)		—		(5,111)
Net income (loss) from continuing operations attributable to shareholders	$	83,504	$	(13,208)	$	(3,903)	$	(41,546)	$	24,847

The following table sets forth a reconciliation of Adjusted EBITDA to net income attributable to shareholders from continuing operations:

	Three Months Ended September 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Adjusted EBITDA	$	126,009	$	(2,112)	$	(927)	$	(10,967)	$	112,003
Add: Non-controlling share of Adjusted EBITDA									2,928
Add: Equity in losses of unconsolidated entities									(974)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities									801
Less: Interest expense									(25,190)
Less: Depreciation and amortization expense									(49,985)
Less: Incentive allocations									(3,736)
Less: Asset impairment charges									—
Less: Changes in fair value of non-hedge derivative instruments									(4,380)
Less: Losses on the modification or extinguishment of debt and capital lease obligations									—
Less: Acquisition and transaction expenses									(5,343)
Less: Equity-based compensation expense									(405)
Less: Benefit from income taxes									(872)
Net income attributable to shareholders from continuing operations									$	24,847

Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows:

	Three Months Ended September 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Africa	$	4,470	$	—	$	—	$	—	$	4,470
Asia	28,777		—		—		954		29,731
Europe	43,217		—		—		—		43,217
North America	8,278		60,537		4,174		730		73,719
South America	1,563		—		—		—		1,563
Total	$	86,305	$	60,537	$	4,174	$	1,684	$	152,700

IV. For the Nine Months Ended September 30, 2019

	Nine Months Ended September 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Equipment leasing revenues	$	231,697	$	—	$	—	$	7,214	$	238,911
Infrastructure revenues	—		164,053		12,154		2,324		178,531
Total revenues	231,697		164,053		12,154		9,538		417,442
Expenses
Operating expenses	13,315		183,346		15,063		11,088		222,812
General and administrative	—		—		—		13,270		13,270
Acquisition and transaction expenses	3,006		—		—		6,119		9,125
Management fees and incentive allocation to affiliate	—		—		—		16,926		16,926
Depreciation and amortization	97,183		16,392		5,240		5,365		124,180
Interest expense	—		12,375		1,113		57,830		71,318
Total expenses	113,504		212,113		21,416		110,598		457,631
Other income (expense)
Equity in (losses) earnings of unconsolidated entities	(1,328)		(290)		—		91		(1,527)
Gain on sale of assets, net	61,388		12		—		—		61,400
Interest income	85		97		241		29		452
Other income	—		589		1,873		1,003		3,465
Total other income	60,145		408		2,114		1,123		63,790
Income (loss) from continuing operations before income taxes	178,338		(47,652)		(7,148)		(99,937)		23,601
(Benefit from) provision for income taxes	(1,373)		180		—		4		(1,189)
Net income (loss) from continuing operations	179,711		(47,832)		(7,148)		(99,941)		24,790
Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries	—		(12,885)		(166)		—		(13,051)
Net income (loss) from continuing operations attributable to shareholders	$	179,711	$	(34,947)	$	(6,982)	$	(99,941)	$	37,841

The following table sets forth a reconciliation of Adjusted EBITDA to net income attributable to shareholders from continuing operations:

	Nine Months Ended September 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Adjusted EBITDA	$	302,535	$	(5,965)	$	(2,242)	$	(24,874)	$	269,454
Add: Non-controlling share of Adjusted EBITDA									7,866
Add: Equity in losses of unconsolidated entities									(1,527)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities									895
Less: Interest expense									(71,318)
Less: Depreciation and amortization expense									(148,188)
Less: Incentive allocations									(6,109)
Less: Asset impairment charges									—
Less: Changes in fair value of non-hedge derivative instruments									(4,130)
Less: Losses on the modification or extinguishment of debt and capital lease obligations									—
Less: Acquisition and transaction expenses									(9,125)
Less: Equity-based compensation expense									(1,166)
Less: Benefit from income taxes									1,189
Net income attributable to shareholders from continuing operations									$	37,841

Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows:

	Nine Months Ended September 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Africa	$	10,155	$	—	$	—	$	—	$	10,155
Asia	76,301		—		—		7,214		83,515
Europe	110,515		—		—		—		110,515
North America	28,708		164,053		12,154		2,324		207,239
South America	6,018		—		—		—		6,018
Total	$	231,697	$	164,053	$	12,154	$	9,538	$	417,442

V. Balance Sheet and Location of Long-Lived Assets

The following tables sets forth summarized balance sheet information and the geographic location of property, plant and equipment and leasing equipment, net:

	September 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Total assets	$	1,718,772	$	949,031	$	408,046	$	299,481	$	3,375,330
Debt, net	—		253,130		25,000		1,523,443		1,801,573
Total liabilities	232,928		360,471		44,949		1,536,135		2,174,483
Non-controlling interests in equity of consolidated subsidiaries	—		23,970		975		524		25,469
Total equity	1,485,844		588,560		363,097		(1,236,654)		1,200,847
Total liabilities and equity	$	1,718,772	$	949,031	$	408,046	$	299,481	$	3,375,330

	September 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Property, plant and equipment and leasing equipment, net
Africa	$	13,466	$	—	$	—	$	—	$	13,466
Asia	484,148		—		—		49,971		534,119
Europe	777,282		—		—		—		777,282
North America	239,426		666,939		264,986		119,318		1,290,669
South America	5,834		—		—		—		5,834
Total	$	1,520,156	$	666,939	$	264,986	$	169,289	$	2,621,370