Segment Information

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

SEGMENT AND REVENUE INFORMATIONThe Company operates in two reportable segments - CAM and ACMI Services. The CAM segment consists of the Company's aircraft and engine leasing operations. The ACMI Services segment consists of the Company's airline operations, including CMI agreements as well as ACMI, charter service and passenger service agreements that the Company has with its customers. The Company's aircraft maintenance services, aircraft modification services, ground services and other support services, are not large enough to constitute separate reportable segments and are combined in All other. Intersegment revenues are valued at arms-length market rates.

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

	Three Months Ending
	March 31,
	2022		2021
Total revenues:
CAM	$	106,905	$	83,277
ACMI Services	330,090		247,131
All other	102,535		93,698
Eliminate inter-segment revenues	(53,670)		(48,018)
Total	$	485,860	$	376,088
Customer revenues:
CAM	$	76,691	$	60,800
ACMI Services	330,084		247,126
All other	79,085		68,162
Total	$	485,860	$	376,088

The Company's external customer revenues from other activities for the three month periods ending March 31, 2022 and 2021 are presented below (in thousands):

	Three Months Ending
	March 31,
	2022		2021
Aircraft maintenance, modifications and part sales	$	37,540	$	34,048
Ground services	25,101		23,460
Other, including aviation fuel sales	16,444		10,654
Total customer revenues	$	79,085	$	68,162

During the three month periods ending March 31, 2022 and 2021, the Company recognized $3.5 million and $2.7 million of non lease revenue that was reported as deferred revenue at the beginning of the respective year. Current deferred revenue of $10.0 million and $8.3 million as of March 31, 2022 and December 31, 2021, respectively, for contracts with customers is derived from other activities as described above. Revenue related to deferred revenue will be recognized based on percentage of completion. Customers are required to pay deposits and may be required to make milestone payments for these services resulting in deferred revenue. Long-term contract assets were $0.0 million and $0.8 million as of March 31, 2022 and December 31, 2021, respectively.

CAM's leases do not contain residual guarantees. Approximately 13% of CAM's leases to external customers contain purchase options at projected market values. As of March 31, 2022, minimum future payments from external customers for leased aircraft and equipment were scheduled to be $200.8 million for the remainder of 2022, $229.6 million, $179.6 million, $167.7 million and $149.6 million for the next 4 years ending December 31, 2026, respectively, and $343.3 million thereafter. CAM's external customer revenues for non-lease activities were $9.9 million and $2.4 million during the first three months of 2022 and 2021 respectively for engine services and the sale of spare engine parts.

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

	Three Months Ending
	March 31,
	2022		2021
Depreciation and amortization expense:
CAM	$	56,291	$	46,995
ACMI Services	25,190		22,981
All other	590		1,075
Total	$	82,071	$	71,051
Interest expense
CAM	7,705		9,226
ACMI Services	3,378		4,523
Segment earnings (loss):
CAM	$	34,995	$	21,462
ACMI Services	22,165		21,259
All other	1,551		389
Net unallocated interest expense	(307)		(754)
Net gain (loss) on financial instruments	2,696		9,472
Other non-service components of retiree benefit costs, net	5,388		4,457
Loss from non-consolidated affiliate	(1,403)		(1,183)
Pre-tax earnings from continuing operations	$	65,085	$	55,102

The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other.

	March 31,		December 31,
	2022		2021
Assets:
CAM	$	2,260,674	$	2,218,012
ACMI Services	849,478		872,311
All other	176,777		177,012
Total	$	3,286,929	$	3,267,335

During the first three months of 2022, the Company had capital expenditures for property and equipment of $22.4 million and $85.0 million for the ACMI Services and CAM, respectively.