Revenue Recognition

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:



	Three Months Ended June 30, 2019		Three Months Ended June 30, 2018
Product Sales
Air cargo	$	5,414,377	$	5,519,611
Ground equipment sales	12,002,366		6,169,103
Ground support services	2,266,859		2,422,581
Commercial jet engines and parts	11,170,632		25,029,114
Printing equipment and maintenance	48,440		286,642
Corporate and other	—		—
Support Services
Air cargo	12,894,182		12,096,874
Ground equipment sales	104,545		100,592
Ground support services	6,213,354		6,605,265
Commercial jet engines and parts	1,410,027		965,826
Printing equipment and maintenance	10,745		7,658
Corporate and other	40,552		—
Leasing Revenue
Air cargo	—		—
Ground equipment sales	20,357		31,002
Ground support services	—		—
Commercial jet engines and parts	3,714,048		1,201,510
Printing equipment and maintenance	—		—
Corporate and other	45,418		40,067
Other
Air cargo	11,123		24,174
Ground equipment sales	121,623		84,084
Ground support services	36,588		19,795
Commercial jet engines and parts	32,197		123,724
Printing equipment and maintenance	5,085		4,523
Corporate and other	142,017		135,324

Total	$	55,704,535	$	60,867,469

The following table summarizes total revenues by segment:



	Three Months Ended June 30, 2019		Three Months Ended June 30, 2018
Air cargo	$	18,319,682	$	17,640,658
Ground equipment sales	12,248,891		6,384,781
Ground support services	8,516,800		9,047,640
Commercial jet engines and parts	16,326,905		27,320,175
Printing equipment and maintenance	64,270		298,823
Corporate and other	227,987		175,392

Total	$	55,704,535	$	60,867,469

See Note 15 for the Company's disaggregated revenues by geographic region and Note 16 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 and the amount of outstanding April 1, 2019 contract liabilities that were recognized as revenue during the quarter June 30, 2019:



	Outstanding contract liabilities		Outstanding contract liabilities as of April 1, 2019 Recognized as Revenue
As of June 30, 2019	$	8,393,700
As of April 1, 2019	$	1,866,843
For the quarter ended June 30, 2019			$	447,341

Contract assets primarily relate to deposits paid to customers. The following table presents the amount of contract assets as of April 1, 2019 and June 30, 2019:



	Contract assets
As of June 30, 2019	$	4,621,096
As of April 1, 2019	$	1,743,460