Operating Segments

3 Months Ended

Mar. 31, 2014

Operating Segments

Operating Segments

10. Operating Segments

The Company operates in two business 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 (ii) Spare Parts Sales which involves the purchase and resale of after-market engine and airframe parts, whole engines, engine modules and portable aircraft components and leasing of engines destined for disassembly and sale of parts.

The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses and inter-company allocation of interest expense. 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 operating segments (amounts in thousands):

For the three months ended March 31, 2014	Leasing and  Related Operations		Spare Parts Sales		Total
Revenue:
Lease rent revenue	$	26,900	$	—	$	26,900
Maintenance reserve revenue	14,030		—		14,030
Spare parts sales	—		79		79
Gain on sale of leased equipment	309		—		309
Other revenue	967		715		1,682
Total revenue	42,206		794		43,000
Expenses:
Depreciation and amortization expense	15,638		72		15,710
General and administrative	9,021		664		9,685
Net finance costs	9,359		—		9,359
Other expense	1,815		—		1,815
Total expenses	35,833		736		36,569
Earnings from operations	$	6,373	$	58	$	6,431
Total assets as of March 31, 2014	$	1,185,812	$	6,805	$	1,192,617
Total assets as of December 31, 2013	$	1,194,800	$	4,429	$	1,199,229

The Spare Parts Sales segment began operation during the fourth quarter of 2013.  No activity occurred in this segment during the three months ended March 31, 2013.