12.	Segment Information

December 31, 2016,

the Company had

six

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. Delphax designs, manufactures and sells advanced digital print production equipment, maintenance contracts, spare parts, supplies and consumable items for these systems. See Note

for a discussion of 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.

The commercial jet engines segment, comprised of Contrail Aviation and Jet Yard, engages in the business of acquiring surplus commercial jet engines and components and supplying surplus and aftermarket commercial jet engine components, as well as offering aircraft storage, parking and disassembly services. The segment commenced operations in

July 2016

upon Contrail Aviation’s acquisition of substantially all of the assets of Contrail Aviation Support, Inc.

Each business segment has separate management teams and infrastructures. We evaluate the performance of our business segments based on operating income.

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 were allocated to the segments based on the relative benefit of those expenses to each segment. Amounts previously presented for the quarter and

nine

months ended

December 31, 2015

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

Segment data is summarized as follows:

	Three Months Ended December 31,						Nine Months Ended December 31,
	2016			2015			2016			2015
Operating Revenues:
Overnight Air Cargo	$	17,099,640		$	18,674,458		$	50,888,019		$	48,949,401
Ground Equipment Sales:
Domestic		781,519			19,120,611			16,472,690			41,261,674
International		1,960,841			1,320,235			4,029,235			4,501,549
Total Ground Equipment Sales		2,742,360			20,440,846			20,501,925			45,763,223
Ground Support Services		7,579,661			6,559,110			21,417,854			17,974,239
Printing Equipment and Maintenance
Domestic		2,151,030			789,000			5,400,433			789,000
International		538,868			246,000			2,248,291			246,000
Total Printing Equipment and Maintenance		2,689,898			1,035,000			7,648,724			1,035,000
Commercial Jet Engines:
Domestic		1,558,983			-			2,009,171			-
International		1,439,182			-			2,284,101			-
Total Commercial Jet Engines		2,998,165			-			4,293,272			-
Leasing		37,547			5,718			501,062			5,718
Corporate		281,926			265,837			845,778			796,884
Intercompany		2,339,973			(362,396	)		(1,311,221	)		(893,443	)
Total	$	35,769,170		$	46,618,573		$	104,785,413		$	113,631,022

Operating Income (Loss):
Overnight Air Cargo	$	716,356		$	1,099,335		$	2,136,337		$	2,484,097
Ground Equipment Sales		(912,893	)		3,841,378			672,464			7,685,291
Ground Support Services		(41,199	)		(69,620	)		(391,968	)		(675,813	)
Printing Equipment and Maintenance		1,056,972			(883,000	)		(5,890,238	)		(883,000	)
Commercial Jet Engines		491,479			-			534,285			-
Leasing		226,011			(194	)		405,426			(194	)
Corporate		(453,577	)		(2,686	)		(1,917,110	)		(169,617	)
Intercompany		556,268			(95,096	)		38,478			(95,096	)
Total	$	1,639,417		$	3,890,117		$	(4,412,326	)	$	8,345,668

Capital Expenditures:
Overnight Air Cargo	$	43,542		$	6,618		$	79,582		$	82,607
Ground Equipment Sales		-			119,455			19,596			338,194
Ground Support Services		119,381			220,816			331,520			429,588
Printing Equipment and Maintenance		-			-			9,927			-
Commercial Jet Engines		50,154			-			50,154			-
Leasing		-			241,398			3,066,500			241,398
Corporate		393,890			190,733			1,027,228			200,666
Intercompany		-			(241,398	)		(3,066,500	)		(241,398	)
Total	$	606,967		$	537,622		$	1,518,007		$	1,051,055

Depreciation and Amortization:
Overnight Air Cargo	$	31,866		$	37,068		$	91,175		$	106,161
Ground Equipment Sales		359,021			165,401			453,941			364,465
Ground Support Services		103,600			60,993			274,309			149,560
Printing Equipment and Maintenance		(13,082	)		17,000			1,713,322			17,000
Commercial Jet Engines		38,221			-			66,627			-
Leasing		14,516			3,658			232,806			3,658
Corporate		49,390			13,817			116,175			28,214
Intercompany		(171,734	)		(1,463	)		(193,284	)		(1,463	)
Total	$	411,798		$	296,474		$	2,755,071		$	667,595

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

three

months ended

December 31, 2016

ten

commercial deicing units and a glycol recovery vehicle by ATGL to GGS and the sale of

two

élan printers by Delphax to ATGL during the

nine

months period ended

December 31, 2016,

along with the 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.