Reportable Segments

6 Months Ended

Jun. 30, 2020

The Company has two reportable segments: (i) Leasing and Related Operations which involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and other related businesses and (ii) Spare Parts Sales which involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components.

The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies.

The following tables present a summary of the reportable segments (in thousands):



Three Months Ended June 30, 2020	Leasing and Related Operations			Spare Parts Sales			Eliminations (1)			Total
Revenue:
Lease rent revenue	$	38,454		$	—		$	—		$	38,454
Maintenance reserve revenue	29,986			—			—			29,986
Spare parts and equipment sales	102			2,753			—			2,855
Loss on sale of leased equipment	(700		)	—			—			(700		)
Other revenue	4,387			28			(27		)	4,388
Total revenue	72,229			2,781			(27		)	74,983

Expenses:
Depreciation and amortization expense	23,739			25			—			23,764
Cost of spare parts and equipment sales	4			2,644			—			2,648
Write-down of equipment	6,997			—			—			6,997
General and administrative	14,808			420			—			15,228
Technical expense	1,468			—			—			1,468
Net finance costs:
Interest expense	16,089			—			—			16,089
Loss on debt extinguishment	—			—			—			—
Total finance costs	16,089			—			—			16,089
Total expenses	63,105			3,089			—			66,194
Earnings from operations	$	9,124		$	(308	)	$	(27	)	$	8,789



Three Months Ended June 30, 2019	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	45,025	$	—	$	—		$	45,025
Maintenance reserve revenue	26,475		—		—			26,475
Spare parts and equipment sales	266		14,320		—			14,586
Gain on sale of leased equipment	5,120		—		—			5,120
Other revenue	4,583		31		(23		)	4,591
Total revenue	81,469		14,351		(23		)	95,797

Expenses:
Depreciation and amortization expense	20,023		20		—			20,043
Cost of spare parts and equipment sales	252		12,333		—			12,585
Write-down of equipment	3,262		—		—			3,262
General and administrative	19,919		1,470		—			21,389
Technical expense	1,407		—		—			1,407
Net finance costs:
Interest expense	16,781		—		—			16,781
Loss on debt extinguishment	220		—		—			220
Total finance costs	17,001		—		—			17,001
Total expenses	61,864		13,823		—			75,687
Earnings from operations	$	19,605	$	528	$	(23	)	$	20,110



Six Months Ended June 30, 2020	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	84,849	$	—	$	—		$	84,849
Maintenance reserve revenue	50,514		—		—			50,514
Spare parts and equipment sales	1,327		10,633		—			11,960
Gain on sale of leased equipment	1,367		—		—			1,367
Other revenue	7,896		267		(261		)	7,902
Total revenue	145,953		10,900		(261		)	156,592

Expenses:
Depreciation and amortization expense	47,114		40		—			47,154
Cost of spare parts and equipment sales	152		9,184		—			9,336
Write-down of equipment	9,126		—		—			9,126
General and administrative	33,350		1,445		—			34,795
Technical expense	2,595		—		—			2,595
Net finance costs:
Interest expense	31,785		—		—			31,785
Loss on debt extinguishment	4,688		—		—			4,688
Total finance costs	36,473		—		—			36,473
Total expenses	128,810		10,669		—			139,479
Earnings from operations	$	17,143	$	231	$	(261	)	$	17,113



Six Months Ended June 30, 2019	Leasing and Related Operations		Spare Parts Sales		Eliminations (1)			Total
Revenue:
Lease rent revenue	$	93,394	$	—	$	—		$	93,394
Maintenance reserve revenue	51,825		—		—			51,825
Spare parts and equipment sales	2,751		29,337		—			32,088
Gain on sale of leased equipment	14,690		—		—			14,690
Other revenue	7,561		125		(117		)	7,569
Total revenue	170,221		29,462		(117		)	199,566

Expenses:
Depreciation and amortization expense	40,259		42		—			40,301
Cost of spare parts and equipment sales	2,088		24,909		—			26,997
Write-down of equipment	4,367		—		—			4,367
General and administrative	39,893		2,936		—			42,829
Technical expense	3,194		1		—			3,195
Net finance costs:
Interest expense	34,660		—		—			34,660
Loss on debt extinguishment	220		—		—			220
Total finance costs	34,880		—		—			34,880
Total expenses	124,681		27,888		—			152,569
Earnings from operations	$	45,540	$	1,574	$	(117	)	$	46,997

______________________________

(1) Represents revenue generated between our operating segments.



	Leasing and Related Operations		Spare Parts Sales		Eliminations		Total
Total assets as of June 30, 2020	$	2,163,689	$	45,882	$	—	$	2,209,571
Total assets as of December 31, 2019	$	1,898,313	$	42,295	$	—	$	1,940,608