XML 31 R21.htm IDEA: XBRL DOCUMENT v3.23.3
Segment and Revenue Information
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment and Revenue Information SEGMENT AND REVENUE INFORMATION
The 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 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 EndedNine Months Ended
 September 30,September 30,
 2023202220232022
Total revenues:
CAM$109,725 $109,496 $333,147 $326,075 
ACMI Services365,248 357,375 1,065,562 1,034,963 
All other112,841 108,423 334,218 318,837 
Eliminate inter-segment revenues(64,677)(58,378)(179,356)(167,431)
Total$523,137 $516,916 $1,553,571 $1,512,444 
Customer revenues:
CAM$83,930 $79,975 $251,282 $237,466 
ACMI Services365,127 357,319 1,065,419 1,034,881 
All other74,080 79,622 236,870 240,097 
Total$523,137 $516,916 $1,553,571 $1,512,444 
The Company's external customer revenues from other activities for the three and nine month periods ended September 30, 2023, and 2022 are presented below (in thousands):
Three Months EndedNine Months Ended
September 30,September 30,
2023202220232022
Aircraft maintenance, modifications and part sales$31,443 $34,604 $112,681 $106,766 
Ground services22,733 28,204 71,385 80,275 
Other, including aviation fuel sales19,904 16,814 52,804 53,056 
Total customer revenues$74,080 $79,622 $236,870 $240,097 
During the three and nine month periods ending September 30, 2023, the Company recognized $1.6 million and $13.3 million, respectively, of non-lease revenue that was reported as deferred revenue at the beginning of the applicable period, compared to $5.8 million and $4.8 million, respectively, for the comparable periods in the prior year. Current deferred revenue of $8.8 million and $17.0 million as of September 30, 2023 and December 31, 2022, 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 $2.0 million as of September 30, 2023 compared to $0.0 million as of December 31, 2022. Cash will be collected over the term of the multi-year agreement based on number cycles per period while revenue is recognized as parts are provided for engine maintenance services. This may result in a contract asset or liability based on the timing of engine maintenance services.
CAM's leases do not contain residual guarantees. Approximately 11% of CAM's leases to external customers contain purchase options at projected market values. As of September 30, 2023, minimum future payments from external customers for leased aircraft and equipment were scheduled to be $75.7 million for the remainder of 2023,
and $272.5 million, $252.3 million, $228.7 million and $197.5 million, respectively, for each of the next four years ending December 31, 2027 and $383.8 million thereafter. CAM's external customer revenues for non-lease activities were $8.1 million and $23.6 million for the three and nine month period ended September 30, 2023 for engine services and the sale of spare engine parts compared to $9.8 million and $27.1 million, respectively, during the comparable periods in the prior year.
The Company's other segment information from continuing operations is presented below (in thousands):
Three Months EndedNine Months Ended
 September 30,September 30,
 2023202220232022
Depreciation and amortization expense:
CAM$60,751 $59,231 $179,239 $171,943 
ACMI Services24,907 23,447 72,363 72,885 
All other594 605 2,069 1,898 
Total$86,252 $83,283 $253,671 $246,726 
Interest expense
CAM12,616 7,908 33,546 21,837 
ACMI Services5,662 3,693 15,678 9,719 
Segment earnings (loss):
CAM$23,306 $36,975 $88,526 $111,587 
ACMI Services12,414 25,265 34,057 69,267 
     All other(7,968)(1,182)(8,613)560 
Net unallocated interest expense(908)(510)(1,944)(1,391)
Net gain (loss) on financial instruments1,778 695 1,856 9,402 
Other non-service components of retiree benefit costs, net(3,218)4,635 (9,654)15,411 
Loss from non-consolidated affiliate(1,885)(954)(4,398)(5,577)
Pre-tax earnings from continuing operations$23,519 $64,924 $99,830 $199,259 
The amortization of customer incentives included in revenue for CAM was $3.4 million and $12.4 million for the three and nine month periods ended September 30, 2023, respectively, compared to $5.0 million and $15.1 million, respectively, for the corresponding periods in 2022. The amortization of customer incentives included in revenue for ACMI Services was $0.8 million and $2.4 million for the three and nine month periods ended September 30, 2023, respectively, compared to $0.8 million and $2.4 million in the corresponding periods of 2022.
The Company's assets are presented below by segment (in thousands). Cash and cash equivalents are reflected in Assets - All other.
September 30,December 31,
 20232022
Assets:
CAM$2,836,032 $2,510,559 
ACMI Services860,199 921,522 
All other149,884 157,812 
Total$3,846,115 $3,589,893 
During the nine months ended September 30, 2023, the Company had capital expenditures for property and equipment of $67.8 million and $510.7 million for the ACMI Services and CAM, respectively.