Revenue Recognition

6 Months Ended

Sep. 30, 2019

Revenue from Contract with Customer [Abstract]

Substantially all of the Company’s revenue is derived from contracts with an initial expected duration of one year or less, as a result, the Company has applied the practical expedient to exclude consideration of significant financing components from the determination of transaction price, to expense costs incurred to obtain a contract, and to not disclose the value of unsatisfied performance obligations.

The following is a description of the Company’s performance obligations:


Type of Revenue			Nature, Timing of Satisfaction of Performance Obligations, and Significant Payment Terms
Product Sales			The Company generates revenue from sales of various distinct products such as parts, aircraft equipment, printing equipment, jet engines, airframes, and scrap metal to its customers. A performance obligation is created when the Company accepts an order from a customer to provide a specified product. Each product ordered by a customer represents a performance obligation. The Company recognizes revenue when obligations under the terms of the contract are satisfied; generally, this occurs at a point-in-time upon shipment or when control is transferred to the customer. Transaction prices are based on contracted terms, which are at fixed amounts based on standalone selling prices. While the majority of the Company's contracts do not have variable consideration, for the limited number of contracts that do, the Company records revenue based on the standalone selling price less an estimate of variable consideration (such as rebates, discounts or prompt payment discounts). The Company estimates these amounts based on the expected incentive amount to be provided to customers and reduces revenue accordingly. Performance obligations are short-term in nature and customers are typically billed upon transfer of control. The Company records all shipping and handling fees billed to customers as revenue. The terms and conditions of the customer purchase orders or contracts are dictated by either the Company’s standard terms and conditions or by a master service agreement or by the contract.
Support Services			The Company provides a variety of support services such as aircraft maintenance, printer maintenance, and short-term repair services to its customers. Additionally, the Company operates certain aircraft routes on behalf of FedEx. A performance obligation is created when the Company agrees to provide a particular service to a customer. For each service, the Company recognizes revenues over time as the customer simultaneously receives the benefits provided by the Company's performance. This revenue recognition can vary from when the Company has a right to invoice to the output or input method depending on the structure of the contract and management’s analysis. For repair-type services, the Company records revenue over-time based on an input method of costs incurred to total estimated costs. The Company believes this is appropriate as the Company is enhancing an asset that the customer controls as repair work, such as labor hours are incurred, and parts installed, is being performed. The vast majority of repair-services are short term in nature and are typically billed upon completion of the service. Some of the Company’s contracts contain a promise to stand ready as the Company is obligated to perform certain maintenance or administrative services. For most of these contracts, the Company applies the 'as invoiced' practical expedient as the Company has a right to consideration from the customer in an amount that corresponds directly with the value of the entity's performance completed to date. A small number of contracts are accounted for as a series and recognized equal to the amount of consideration the Company is entitled to less an estimate of variable consideration (typically rebates). These services are typically ongoing and are generally billed on a monthly basis.

In addition to the above type of revenues, the Company also has Leasing Revenue, which is in scope under Topic 842 (Leases) and out of scope under Topic 606 and Other Revenues (Freight, Management Fees, etc.) which are immaterial for disclosure under Topic 606.

The following table summarizes disaggregated revenues by type (in thousands):


	Three Months Ended September 30,						Six Months Ended September 30,
	2019		2018		2019		2018
Product Sales
Air Cargo	$	6,680	$	5,003	$	12,094	$	10,523
Ground equipment sales	12,489		12,447		24,492		18,617
Commercial jet engines and parts	13,218		7,380		24,388		32,409
Printing equipment and maintenance	20		122		68		409
Corporate and other	—		—		—		—
Support Services
Air Cargo	13,033		11,985		25,927		24,082
Ground equipment sales	105		148		210		249
Commercial jet engines and parts	1,597		1,327		3,007		2,293
Printing equipment and maintenance	225		12		236		20
Corporate and other	(8)		16		33		16
Leasing Revenue
Air Cargo	—		—		—		—
Ground equipment sales	33		15		53		46
Commercial jet engines and parts	2,941		1,826		6,655		3,027
Printing equipment and maintenance	—		—		—		—
Corporate and other	36		32		81		72
Other
Air Cargo	32		76		43		100
Ground equipment sales	114		228		236		312
Commercial jet engines and parts	45		110		78		234
Printing equipment and maintenance	4		5		9		10
Corporate and other	129		135		271		268

Total	$	50,693	$	40,867	$	97,881	$	92,687

The following table summarizes total revenues by segment (in thousands):


	Three Months Ended September 30,						Six Months Ended September 30,
	2019		2018		2019		2018
Air cargo	$	19,745	$	17,064	$	38,064	$	34,705
Ground equipment sales	12,741		12,838		24,991		19,224
Commercial jet engines and parts	17,801		10,643		34,128		37,963
Printing equipment and maintenance	249		139		313		439
Corporate and other	157		183		385		356

Total	$	50,693	$	40,867	$	97,881	$	92,687

See Note 1 4 for the Company's disaggregated revenues by geographic region and Note 1 5 for the Company’s disaggregated revenues by segment. These notes disaggregate revenue recognized from contracts with customers into categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors.

Contract Balances and Costs

Contract liabilities relate to deferred income and advanced customer deposits with respect to product sales. The following table presents outstanding contract liabilities as of April 1, 2019 and September 30, 2019 and the amount of contract liabilities that were recognized as revenue during the six-month period ended September 30, 2019 (in thousands):


	Outstanding contract liabilities		Outstanding contract liabilities as of April 1, 2019 Recognized as Revenue
As of September 30, 2019	$	10,291
As of April 1, 2019	1,867
For the six months ended September 30, 2019			1,781

Contract assets primarily relate to deposits paid to vendors. The following table presents the amount of contract assets as of April 1, 2019 and September 30, 2019 (in thousands):


			Contract assets
As of September 30, 2019			$5,174
As of April 1, 2019			1,743