Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company operates in two reportable segments, as described below. The CAM segment consists of the Company's aircraft leasing operations and its segment earnings includes an allocation of interest expense. The ACMI Services segment consists of the Company's airline operations, including the CMI agreement with DHL as well as ACMI and charter service agreements that the Company has with other customers. Due to the similarities among the Company's airline operations, the airline operations are aggregated into a single reportable segment, ACMI Services. The Company's other activities, which include contracts with the USPS, the sale of aircraft parts and maintenance services, facility and ground equipment maintenance services and management services for workers' compensation do not constitute reportable segments and are combined in “All other” with inter-segment profit eliminations. Inter-segment revenues are valued at arms-length, market rates. Cash, cash equivalents and deferred tax assets are reflected in Assets - All other below. The Company's segment information from continuing operations is presented below (in thousands):

	Year Ended December 31
	2012			2011			2010
Total revenues:
CAM	$	154,565		$	140,469		$	101,375
ACMI Services	478,993			605,461			579,412
All other	112,343			105,284			87,660
Eliminate inter-segment revenues	(138,463		)	(121,081		)	(101,065		)
Total	$	607,438		$	730,133		$	667,382
Customer revenues:
CAM	$	74,599		$	67,791		$	43,294
ACMI Services	477,722			604,951			578,198
All other	55,117			57,391			45,890
Total	$	607,438		$	730,133		$	667,382
Depreciation and amortization expense:
CAM	$	59,351		$	54,897		$	40,215
ACMI Services	24,599			36,136			47,176
All other	527			30			203
Total	$	84,477		$	91,063		$	87,594
Impairment Charges
CAM - aircraft impairment	—			6,761			—
ACMI Services - aircraft impairment	—			15,304			—
ACMI Services - customer relationship impairment	—			2,282			—
ACMI Services - goodwill impairment	—			2,797			—
Total	$	—		$	27,144		$	—
Segment earnings (loss):
CAM	$	68,499		$	53,221		$	41,586
ACMI Services	(14,503		)	(13,807		)	20,888
All other	11,650			11,331			8,017
Net unallocated interest expense	(1,205		)	(2,118		)	(7,174		)
Net gain (loss) on derivative instruments	1,879			(4,881		)	—
Write-off of unamortized debt issuance costs	—			(2,886		)	—
Pre-tax earnings from continuing operations	$	66,320		$	40,860		$	63,317

The Company's assets are presented below by segment (in thousands):

	December 31,		December 31,		December 31,
	2012		2011		2010
Assets:
CAM	$	810,664	$	760,588	$	600,245
ACMI Services	161,650		137,640		198,024
Discontinued operations	—		—		5,015
All other	63,297		95,491		97,370
Total	$	1,035,611	$	993,719	$	900,654

Interest expense of $0.9 million, $1.2 million and $1.9 million for 2012, 2011 and 2010, respectively, was reimbursed through the commercial agreements with DHL and included in the ACMI Services segment earnings above. Interest expense allocated to CAM was $12.2 million, $10.7 million and $9.3 million for the years ending December 31, 2012, 2011 and 2010, respectively.

During 2012, the Company had capital expenditures of $20.4 million and $126.5 million for the ACMI Services and CAM segments, respectively. The ACMI Services segment also includes impairment charges of $2.8 million on the goodwill, $2.3 million on its acquired intangibles and $15.3 million on its aircraft recorded in the third quarter of 2011. The CAM segment includes an impairment charge of $6.8 million on its aircraft recorded in the third quarter of 2011.

Entity-Wide Disclosures

The Company's international revenues were approximately $314.2 million, $291.3 million and $234.5 million for 2012, 2011 and 2010, respectively, derived primarily from international flights departing from or arriving in foreign countries. All revenues from the CMI agreement with DHL are attributed to U.S. operations.

The Company's external customers revenues from other activities for the years ended December 31, 2012, 2011 and 2010 are presented below (in thousands):

	December 31,
	2012		2011		2010
Aircraft maintenance and part sales	$	21,669	$	25,845	$	15,963
Mail handling services	23,671		21,613		19,386
Facility and ground equipment maintenance	8,304		8,465		8,868
Other	1,473		1,468		1,673
Total customer revenues	$	55,117	$	57,391	$	45,890