Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company operates in two reportable segments. 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
	2013			2012			2011
Total revenues:
CAM	$	160,342		$	154,565		$	140,469
ACMI Services	444,504			478,993			604,951
All other	117,292			112,343			105,284
Eliminate inter-segment revenues	(142,115		)	(138,463		)	(120,571		)
Total	$	580,023		$	607,438		$	730,133
Customer revenues:
CAM	$	71,604		$	74,599		$	67,791
ACMI Services	444,504			477,722			604,951
All other	63,915			55,117			57,391
Total	$	580,023		$	607,438		$	730,133
Depreciation and amortization expense:
CAM	$	64,096		$	59,351		$	54,897
ACMI Services	27,546			24,599			36,136
All other	107			527			30
Total	$	91,749		$	84,477		$	91,063
Impairment Charges
CAM - aircraft impairment	—			—			6,761
ACMI Services - aircraft impairment	—			—			15,304
ACMI Services - customer relationship impairment	—			—			2,282
ACMI Services - goodwill impairment	52,585			—			2,797
Total	$	52,585		$	—		$	27,144
Segment earnings (loss):
CAM	$	66,208		$	68,499		$	53,221
ACMI Services	(78,186		)	(14,503		)	(13,807		)
All other	12,200			11,650			11,331
Net unallocated interest expense	(1,212		)	(1,205		)	(2,118		)
Net gain (loss) on derivative instruments	631			1,879			(4,881		)
Write-off of unamortized debt issuance costs	—			—			(2,886		)
Pre-tax earnings from continuing operations	$	(359	)	$	66,320		$	40,860

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

	December 31,		December 31,		December 31,
	2013		2012		2011
Assets:
CAM	$	808,987	$	810,664	$	760,588
ACMI Services	141,664		161,650		137,640
Discontinued operations	294		—		—
All other	82,194		63,297		95,491
Total	$	1,033,139	$	1,035,611	$	993,719

Interest expense of $0.6 million, $0.9 million and $1.2 million for 2013, 2012 and 2011, respectively, was reimbursed through the commercial agreements with DHL and included in the ACMI Services segment earnings above. Interest expense allocated to CAM was $12.4 million, $12.2 million and $10.7 million for the years ending December 31, 2013, 2012 and 2011, respectively.

During 2013, the Company had capital expenditures of $30.9 million and $74.1 million for the ACMI Services and CAM segments, respectively. The ACMI Services segment reflects a goodwill impairment charge of $52.6 million recorded in the fourth quarter of 2013. Additionally, the ACMI Services segment reflects impairment charges of $2.8 million on the goodwill, $2.3 million on its acquired intangibles and $15.3 million on its aircraft which were recorded in the third quarter of 2011. The CAM segment reflects 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 $235.1 million, $314.2 million and $291.3 million for 2013, 2012 and 2011, 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, 2013, 2012 and 2011 are presented below (in thousands):

	December 31,
	2013		2012		2011
Aircraft maintenance and part sales	$	23,175	$	21,669	$	25,845
Mail handling services	30,117		23,671		21,613
Facility and ground equipment maintenance	10,030		8,304		8,465
Other	593		1,473		1,468
Total customer revenues	$	63,915	$	55,117	$	57,391