Segment Information

9 Months Ended

Sep. 30, 2017

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 include 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 management 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):

	Three Months Ending September 30,						Nine Months Ending September 30,
	2017			2016			2017			2016
Total revenues:
CAM	$	58,465		$	46,346		$	155,973		$	145,511
ACMI Services	146,943			128,702			436,391			357,803
All other	94,470			65,328			300,184			177,592
Eliminate inter-segment revenues	(45,777		)	(47,115		)	(147,319		)	(133,711		)
Total	$	254,101		$	193,261		$	745,229		$	547,195
Customer revenues:
CAM	$	40,940		$	27,920		$	104,102		$	86,068
ACMI Services	146,938			128,702			436,386			357,803
All other	66,223			36,639			204,741			103,324
Total	$	254,101		$	193,261		$	745,229		$	547,195
Depreciation and amortization expense:
CAM	$	26,829		$	22,958		$	31,368		$	68,295
ACMI Services	9,805			10,528			77,383			30,300
All other	971			453			3,077			1,010
Total	$	37,605		$	33,939		$	111,828		$	99,605
Segment earnings (loss):
CAM	$	19,445		$	16,110		$	45,570		$	51,849
ACMI Services	(5,223		)	(9,686		)	(8,841		)	(27,172		)
All other	655			5,089			11,977			13,087
Net unallocated interest expense	(268		)	83			(655		)	(287		)
Net loss on financial instruments	(34,433		)	(8,473		)	(100,213		)	(3,443		)
Charges for non-consolidating affiliates	(945		)	—			(945		)	—
Pre-tax earnings (loss) from continuing operations	$	(20,769	)	$	3,123		$	(53,107	)	$	34,034

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

	September 30,		December 31,
	2017		2016
Assets:
CAM	$	1,140,559	$	971,986
ACMI Services	175,963		164,489
All other	170,381		122,855
Total	$	1,486,903	$	1,259,330

Interest expense allocated to CAM was $4.0 million and $10.9 million for the three and nine month periods ending September 30, 2017, respectively, compared to $2.9 million and $7.8 million for the corresponding periods of 2016, respectively.

The Company's external customers revenues from other activities for the three and nine month periods ended September 30, 2017 and 2016 are presented below (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
Mail and package handling services	$	48,283	$	23,502	$	123,564	$	62,553
Aircraft maintenance, modifications and part sales	13,915		8,958		70,492		30,217
Facility and ground equipment services	3,625		3,780		9,528		9,281
Other	400		399		1,157		1,273
Total customer revenues	$	66,223	$	36,639	$	204,741	$	103,324