Operating Segments

12 Months Ended

Dec. 31, 2016

Operating Segments

Operating Segments

(15) 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):

	Leasing and
For the year ended December 31, 2016	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	119,895	$	—	$	—	$	119,895
Maintenance reserve revenue		57,091		—		—		57,091
Spare parts and equipment sales		3,335		14,448		—		17,783
Gain on sale of leased equipment		3,482		—		—		3,482
Other revenue		8,711		1,947		(1,635)		9,023
Total revenue		192,514		16,395		(1,635)		207,274
Expenses:
Depreciation and amortization expense		65,939		341		—		66,280
Cost of spare parts and equipment sales		2,394		10,899		—		13,293
General and administrative		44,703		3,077		—		47,780
Net finance costs		40,813		468		—		41,281
Other expense		16,507		—		—		16,507
Total expenses		170,356		14,785		—		185,141
Earnings from operations	$	22,158	$	1,610	$	(1,635)	$	22,133
	Leasing and
For the year ended December 31, 2015	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	108,046	$	—	$	—	$	108,046
Maintenance reserve revenue		53,396		—		—		53,396
Spare parts and equipment sales		9,975		15,607		—		25,582
Gain on sale of leased equipment		8,320		—		—		8,320
Other revenue		2,517		659		(458)		2,718
Total revenue		182,254		16,266		(458)		198,062
Expenses:
Depreciation and amortization expense		69,135		289		—		69,424
Cost of spare parts and equipment sales		5,734		12,115		—		17,849
General and administrative		39,974		2,770		—		42,744
Net finance costs		37,474		387		—		37,861
Other expense		18,584		—		—		18,584
Total expenses		170,901		15,561		—		186,462
Earnings (loss) from operations	$	11,353	$	705	$	(458)	$	11,600

	Leasing and
For the year ended December 31, 2014	Related Operations		Spare Parts Sales		Eliminations (1)		Total
Revenue:
Lease rent revenue	$	101,431	$	—	$	—	$	101,431
Maintenance reserve revenue		53,322		—		—		53,322
Spare parts and equipment sales		—		8,917		—		8,917
Gain on sale of leased equipment		5,882		—		—		5,882
Other revenue		3,581		1,661		(736)		4,506
Total revenue		164,216		10,578		(736)		174,058
Expenses:
Depreciation and amortization expense		65,025		289		—		65,314
Cost of spare parts and equipment sales		—		7,474		—		7,474
General and administrative		33,211		2,648		—		35,859
Interest expense		36,779		283		—		37,062
Other expense		17,830		108		—		17,938
Total expenses		152,845		10,802		—		163,647
Earnings from operations	$	11,371	$	(224)	$	(736)	$	10,411
(1) Represents revenue generated between our operating segments
Total assets as of December 31, 2016	$	1,307,460	$	30,427	$	—	$	1,337,887
Total assets as of December 31, 2015	$	1,267,414	$	26,871	$	—	$	1,294,285
Total assets as of December 31, 2014	$	1,226,701	$	19,140	$	—	$	1,245,841