Segment Information

12 Months Ended

Dec. 31, 2016

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 CMI agreements 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 mail and parcel handling services, as well as hub managements services for the USPS and AFS, the sale of aircraft parts, aircraft maintenance services, aircraft modifications, facility and ground equipment services, the sales of aviation fuel and other services, are not large enough to 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 and cash equivalents are reflected in Assets - All other below.

The Company's segment information from continuing operations is presented below (in thousands):

	Year Ended December 31
	2016			2015			2014
Total revenues:
CAM	$	195,092		$	177,789		$	166,303
ACMI Services	492,859			433,109			439,919
All other	262,539			161,995			142,294
Eliminate inter-segment revenues	(181,620		)	(153,629		)	(158,924		)
Total	$	768,870		$	619,264		$	589,592
Customer revenues:
CAM	$	117,642		$	93,395		$	77,668
ACMI Services	492,859			431,989			439,919
All other	158,369			93,880			72,005
Total	$	768,870		$	619,264		$	589,592
Depreciation and amortization expense:
CAM	$	92,396		$	87,765		$	78,866
ACMI Services	41,487			37,526			29,929
All other	1,613			152			(541		)
Total	$	135,496		$	125,443		$	108,254
Segment earnings (loss):
CAM	$	68,608		$	57,457		$	53,159
ACMI Services	(32,125		)	(2,654		)	(12,081		)
All other	16,623			8,561			11,363
Net unallocated interest expense	(545		)	(1,721		)	(1,761		)
Net gain (loss) on financial instruments	(18,107		)	920			1,096
Pre-tax earnings from continuing operations	$	34,454		$	62,563		$	51,776

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

	December 31,		December 31,		December 31,
	2016		2015		2014
Assets:
CAM	$	971,986	$	804,776	$	798,508
ACMI Services	164,489		154,852		133,861
All other	122,855		82,093		78,834
Total	$	1,259,330	$	1,041,721	$	1,011,203

Interest expense allocated to CAM was $10.6 million, $9.4 million and $11.8 million for the years ending December 31, 2016, 2015 and 2014, respectively.

During 2016, the Company had capital expenditures of $30.8 million and $227.9 million for the ACMI Services and CAM segments, respectively.

Entity-Wide Disclosures

The Company had revenues of approximately $168.2 million, $206.5 million and $205.0 million for 2016, 2015 and 2014, respectively, derived from aircraft leases in foreign countries or routes with flights departing from or arriving in foreign countries. All revenues from the CMI agreement with DHL and the ATSA agreement with AFS are attributed to U.S. operations. As of December 31, 2016 and 2015, the Company had 12 and 17 aircraft, respectively, deployed outside of the United States.

CAM's revenues include $17.4 million, $12.6 million and $11.5 million for 2016, 2015 and 2014, respectively, for engine and other maintenance related payments from customers. The Company's external customers revenues from other activities for the years ended December 31, 2016, 2015 and 2014 are presented below (in thousands):

	December 31,
	2016		2015		2014
Mail and package handling services	$	103,191	$	47,307	$	34,025
Aircraft maintenance, modifications and part sales	40,754		33,687		26,393
Facility and ground equipment services	12,709		11,490		11,119
Other	1,715		1,396		468
Total customer revenues	$	158,369	$	93,880	$	72,005

Mail and package handling services include mail sorting, parcel handling and logistical support to the USPS at five facilities and similar services at certain AFS hub and gateway locations in the U.S. None of these operations are large enough to constitute a reportable segment.