11.	Segment Information

June 30, 2016,

the Company had

five

business segments. The overnight air cargo segment, comprised of the Company

’s Mountain Air Cargo, Inc. (“MAC”) and CSA Air, Inc. (“CSA”) subsidiaries, operates in the air express delivery services industry. The ground equipment sales segment, comprised of the Company’s Global Ground Support, LLC (“GGS”) subsidiary, manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the U.S. military and industrial customers. The ground support services segment, comprised of the Company’s Global Aviation Services, LLC (“GAS”) subsidiary, provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers. The printing equipment and maintenance segment is comprised of Delphax and its subsidiaries, which was consolidated for financial accounting purposes beginning

November 24, 2015.

Delphax designs, manufactures and sells advanced digital print production equipment, maintenance contracts, spare parts, supplies and consumable items for these systems. The equipment is sold through Delphax and its subsidiaries located in Canada, the United Kingdom and France. A significant portion of Delphax’s net sales is related to service and support provided after the sale. Delphax has a significant presence in the check production marketplace in North America, Europe, Latin America, Asia and the Middle East. See Note

for a discussion of recent market and business developments impacting Delphax. The Company’s leasing segment, comprised of the Company’s Air T Global Leasing, LLC subsidiary (“ATGL”), provides funding for equipment leasing transactions, which includes transactions for the leasing of equipment manufactured by GGS and Delphax and transactions initiated by

third

parties unrelated to equipment manufactured by the Company or any of its subsidiaries. ATGL commenced operations during the quarter ended

December 31, 2015.

Each business segment has separate management teams and infrastructures that offer different products and services.

The Company evaluates the performance of its business segments based on operating income. In

March 2014,

the Company formed Space Age Insurance Company (“SAIC”), a captive insurance company licensed in Utah, and initially capitalized with

$250,000.

SAIC insures risks of the Company and its subsidiaries that were

not

previously insured by the Company’s insurance programs and underwrites

third

-party risk through certain reinsurance arrangements. Beginning with the

fourth

quarter of fiscal year

2016,

premiums paid to SAIC by the Company are allocated among the operating segments based on segment revenue and certain identified corporate expenses was allocated to the segments based on the relative benefit of those expenses to each segment. Amounts previously presented for the

June

quarter of

2015

have been reclassified to conform to the current period allocation of these expenses.

Segment data is summarized as follows:

	Three Months Ended June 30,
	2016			2015
Operating Revenues:
Overnight Air Cargo	$	16,637,165		$	12,889,190
Ground Equipment Sales:
Domestic		5,386,069			1,978,029
International		1,284,619			2,061,208
Total Ground Equipment Sales		6,670,688			4,039,237
Ground Support Services		6,800,042			5,430,093
Printing Equipment and Maintenance
Domestic		2,232,706			-
International		977,382			-
Total Printing Equipment and Maintenance		3,210,088			-
Leasing		241,770			-
Corporate		281,926			265,209
Intercompany		(3,348,426	)		(265,209	)
Total	$	30,493,253		$	22,358,520

Operating Income (Loss):
Overnight Air Cargo	$	979,177		$	(94,443	)
Ground Equipment Sales		342,320			(519,171	)
Ground Support Services		(110,052	)		(335,456	)
Printing Equipment and Maintenance		(6,935,359	)		-
Leasing		107,258			-
Corporate		(931,837	)		(100,029	)
Intercompany		(524,989	)		-
Total	$	(7,073,482	)	$	(1,049,099	)

Capital Expenditures:
Overnight Air Cargo	$	-		$	24,325
Ground Equipment Sales		19,596			125,770
Ground Support Services		101,411			69,401
Printing Equipment and Maintenance		9,927			-
Corporate		388,635			-
Leasing		3,066,500			-
Intercompany		(3,066,500	)		-
Total	$	519,569		$	219,496

Depreciation and Amortization:
Overnight Air Cargo	$	29,209		$	34,472
Ground Equipment Sales		47,594			95,440
Ground Support Services		83,436			41,232
Printing Equipment and Maintenance		296,081			-
Leasing		132,369			-
Corporate		30,743			7,473
Intercompany		(14,351	)		-
Total	$	605,081		$	178,617

The elimination of intercompany revenues is related to the sale during the

three

months ended

June 30, 2016

ten

commercial deicing units by GGS to ATGL and

two

élan printers by Delphax to ATGL and premiums paid to SAIC, and the elimination of intercompany operating income for such period reflects the margins on the sales of those assets, elimination of excess depreciation and amortization related to the margin on those assets, and the premiums paid to SAIC. The assets are held for lease by ATGL.