Revenue Recognition

9 Months Ended

Dec. 31, 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 December 31,						Nine Months Ended December 31,
	2019		2018		2019		2018
Product Sales
Air Cargo	$	6,014	$	5,694	$	18,108	$	16,217
Ground equipment sales	15,640		15,902		40,132		34,519
Commercial jet engines and parts	35,463		15,957		59,851		48,366
Printing equipment and maintenance	3		88		72		497
Corporate and other	—		—		—		—
Support Services
Air Cargo	12,644		12,164		38,572		36,245
Ground equipment sales	161		260		370		509
Commercial jet engines and parts	797		1,309		3,804		3,602
Printing equipment and maintenance	79		13		314		33
Corporate and other	37		45		69		61
Leasing Revenue
Air Cargo	—		—		—		—
Ground equipment sales	58		16		111		62
Commercial jet engines and parts	2,245		3,663		8,901		6,691
Printing equipment and maintenance	—		—		—		—
Corporate and other	36		49		117		121
Other
Air Cargo	48		10		91		111
Ground equipment sales	90		100		326		412
Commercial jet engines and parts	31		61		109		294
Printing equipment and maintenance	—		4		10		14
Corporate and other	(46)		151		224		419

Total	$	73,300	$	55,486	$	171,181	$	148,173

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


	Three Months Ended December 31,						Nine Months Ended December 31,
	2019		2018		2019		2018
Air cargo	$	18,706	$	17,868	$	56,771	$	52,573
Ground equipment sales	15,949		16,278		40,939		35,502
Commercial jet engines and parts	38,536		20,990		72,665		58,953
Printing equipment and maintenance	82		105		396		544
Corporate and other	27		245		410		601

Total	$	73,300	$	55,486	$	171,181	$	148,173

See Note 13 for the Company's disaggregated revenues by geographic region and Note 1 4 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 December 31, 2019 and the amount of contract liabilities that were recognized as revenue during the nine months ended December 31, 2019 (in thousands):


	Outstanding contract liabilities		Outstanding contract liabilities as of April 1, 2019 Recognized as Revenue
As of December 31, 2019	$	2,741
As of April 1, 2019	1,867
For the nine months ended December 31, 2019			1,744

Contract assets primarily relate to deposits paid to vendors. The following table presents the amount of contract assets as of April 1, 2019 and December 31, 2019 (in thousands):


			Contract assets
As of December 31, 2019			$3,155
As of April 1, 2019			1,743