SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

17. SEGMENT INFORMATION

Our reportable segments represent strategic business units comprised of investments in different types of transportation and infrastructure assets. We have three reportable segments which operate in the Equipment Leasing and Infrastructure businesses across several market sectors. Our reportable segments are (i) Aviation Leasing, (ii) Jefferson Terminal and (iii) Ports and Terminals. The Aviation Leasing segment consists of aircraft and aircraft engines held for lease and are typically held long-term. The Jefferson Terminal segment consists of a multi-modal crude oil and refined products terminal and other related assets. The Ports and Terminals segment consists of Repauno, which is a 1,630-acre deep-water port located along the Delaware River with an underground storage cavern and multiple industrial development opportunities, and an equity method investment in Long Ridge, which is a 1,660-acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction.

In December 2019, we completed the sale of substantially all of our railroad business, which was formerly reported as our Railroad segment. Under ASC 205-20, this disposition met the criteria to be reported as discontinued operations and the assets, liabilities and results of operations have been presented as discontinued operations for all periods presented. Additionally, in accordance with ASC 280, we assessed our reportable segments. We determined that our retained investment of the railroad business no longer met the requirement as a reportable segment. Accordingly, we have presented this operating segment, along with Corporate results, within Corporate and Other effective in 2019. All prior periods have been restated for historical comparison across segments.

Corporate and Other primarily consists of debt, unallocated company level general and administrative expenses, and management fees. Additionally, Corporate and Other includes (i) offshore energy related assets, which consist of vessels and equipment that support offshore oil and gas drilling and production which are typically subject to long-term operating leases, (ii) an investment in an unconsolidated entity engaged in the acquisition and leasing of shipping containers and (iii) railroad assets retained after the December 2019 sale, which consist of equipment that support a railcar cleaning business.

Aviation Leasing Organizational Restructuring

We recently completed an organizational restructuring of the Aviation Leasing segment. Previously, Aviation Leasing’s employees were employed by the Manager and compensation and related costs associated with these employees were reimbursed to the Manager, per the Management Agreement (see Note 16). These costs were reported within Corporate and Other.

Effective in the first quarter of 2020, Aviation Leasing’s employees are employed by one of our subsidiaries. Compensation and related costs incurred by this subsidiary will be reported within the Aviation Leasing segment. Prior periods have been restated for historical comparison.

The following table presents our adjustments for the three months ended June 30, 2019.

	As Previously Reported				Adjustments				As Reported
	Aviation Leasing		Corporate and Other		Aviation Leasing		Corporate and Other		Aviation Leasing		Corporate and Other
Operating expenses	$	2,721	$	3,166	$	746	$	—	$	3,467	$	3,166
General and administrative	—		4,297		—		(746)		—		3,551
Acquisition and transaction expenses	—		2,308		970		(970)		970		1,338

The following table presents our adjustments for the six months ended June 30, 2019.

	As Previously Reported				Adjustments				As Reported
	Aviation Leasing		Corporate and Other		Aviation Leasing		Corporate and Other		Aviation Leasing		Corporate and Other
Operating expenses	$	8,799	$	6,707	$	1,294	$	—	$	10,093	$	6,707
General and administrative	—		9,029		—		(1,294)		—		7,735
Acquisition and transaction expenses	13		3,769		1,935		(1,935)		1,948		1,834

The accounting policies of the segments are the same as those described in the summary of significant accounting policies; however, financial information presented by segment includes the impact of intercompany eliminations. We evaluate investment performance for each reportable segment primarily based on net income attributable to shareholders and Adjusted EBITDA.

Adjusted EBITDA is defined as net income (loss) attributable to shareholders from continuing operations, adjusted (a) to exclude the impact of provision for (benefit from) income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, depreciation and amortization expense, and interest expense, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities, and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA.

We believe that net income (loss) attributable to shareholders, as defined by GAAP, is the most appropriate earnings measurement with which to reconcile Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income (loss) attributable to shareholders as determined in accordance with GAAP.

The following tables set forth certain information for each reportable segment:

I. For the Three Months Ended June 30, 2020

	Three Months Ended June 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Equipment leasing revenues	$	75,259	$	—	$	—	$	4,575	$	79,834
Infrastructure revenues	—		13,081		—		1,394		14,475
Total revenues	75,259		13,081		—		5,969		94,309
Expenses
Operating expenses	4,577		12,290		1,875		5,830		24,572
General and administrative	—		—		—		4,388		4,388
Acquisition and transaction expenses	2,061		—		19		1,581		3,661
Management fees and incentive allocation to affiliate	—		—		—		4,756		4,756
Depreciation and amortization	32,203		7,160		378		1,979		41,720
Asset impairment	10,476		—		—		—		10,476
Interest expense	—		2,310		354		19,130		21,794
Total expenses	49,317		21,760		2,626		37,664		111,367
Other (expense) income
Equity in losses of unconsolidated entities	(594)		—		(2,582)		(33)		(3,209)
Gain (loss) on sale of assets, net	775		(7)		—		—		768
Interest income	17		—		—		5		22
Other expense	—		(1)		—		—		(1)
Total other income (expense)	198		(8)		(2,582)		(28)		(2,420)
Income (loss) from continuing operations before income taxes	26,140		(8,687)		(5,208)		(31,723)		(19,478)
(Benefit from) provision for income taxes	(3,427)		74		(597)		200		(3,750)
Net income (loss) from continuing operations	29,567		(8,761)		(4,611)		(31,923)		(15,728)
Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries	—		(4,020)		(92)		—		(4,112)
Dividends on preferred shares	—		—		—		4,079		4,079
Net income (loss) from continuing operations attributable to shareholders	$	29,567	$	(4,741)	$	(4,519)	$	(36,002)	$	(15,695)

The following table sets forth a reconciliation of Adjusted EBITDA to net loss attributable to shareholders from continuing operations:

	Three Months Ended June 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Adjusted EBITDA	$	77,501	$	2,968	$	(885)	$	(13,112)	$	66,472
Add: Non-controlling share of Adjusted EBITDA									2,101
Add: Equity in losses of unconsolidated entities									(3,209)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities									(126)
Less: Interest expense									(21,794)
Less: Depreciation and amortization expense									(48,341)
Less: Incentive allocations									—
Less: Asset impairment charges									(10,476)
Less: Changes in fair value of non-hedge derivative instruments									—
Less: Losses on the modification or extinguishment of debt and capital lease obligations									—
Less: Acquisition and transaction expenses									(3,661)
Less: Equity-based compensation expense									(411)
Less: Benefit from income taxes									3,750
Net loss attributable to shareholders from continuing operations									$	(15,695)

Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows:

	Three Months Ended June 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Africa	$	1,319	$	—	$	—	$	—	$	1,319
Asia	31,732		—		—		4,575		36,307
Europe	31,287		—		—		—		31,287
North America	9,931		13,081		—		1,394		24,406
South America	990		—		—		—		990
Total	$	75,259	$	13,081	$	—	$	5,969	$	94,309

II. For the Six Months Ended June 30, 2020

	Six Months Ended June 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Equipment leasing revenues	$	158,251	$	—	$	—	$	8,032	$	166,283
Infrastructure revenues	—		37,822		314		2,730		40,866
Total revenues	158,251		37,822		314		10,762		207,149
Expenses
Operating expenses	8,648		34,233		3,875		11,260		58,016
General and administrative	—		—		—		9,051		9,051
Acquisition and transaction expenses	4,785		—		801		1,269		6,855
Management fees and incentive allocation to affiliate	—		—		—		9,522		9,522
Depreciation and amortization	64,834		14,386		754		3,943		83,917
Asset impairment	10,476		—		—		—		10,476
Interest expense	—		5,738		747		38,170		44,655
Total expenses	88,743		54,357		6,177		73,215		222,492
Other (expense) income
Equity in losses of unconsolidated entities	(1,185)		—		(1,676)		(83)		(2,944)
Loss on sale of assets, net	(1,044)		(7)		—		—		(1,051)
Loss on extinguishment of debt	—		(4,724)		—		—		(4,724)
Interest income	29		22		—		12		63
Other income	—		32		—		—		32
Total other expense	(2,200)		(4,677)		(1,676)		(71)		(8,624)
Income (loss) from continuing operations before income taxes	67,308		(21,212)		(7,539)		(62,524)		(23,967)
(Benefit from) provision for income taxes	(3,382)		209		(878)		203		(3,848)
Net income (loss) from continuing operations	70,690		(21,421)		(6,661)		(62,727)		(20,119)
Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries	—		(8,681)		(167)				(8,848)
Dividends on preferred shares	—		—		—		8,618		8,618
Net income (loss) from continuing operations attributable to shareholders	$	70,690	$	(12,740)	$	(6,494)	$	(71,345)	$	(19,889)

The following table sets forth a reconciliation of Adjusted EBITDA to net loss attributable to shareholders from continuing operations:

	Six Months Ended June 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Adjusted EBITDA	$	160,891	$	7,537	$	(2,201)	$	(27,760)	$	138,467
Add: Non-controlling share of Adjusted EBITDA									5,451
Add: Equity in losses of unconsolidated entities									(2,944)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities									287
Less: Interest expense									(44,655)
Less: Depreciation and amortization expense									(97,405)
Less: Incentive allocations									—
Less: Asset impairment charges									(10,476)
Less: Changes in fair value of non-hedge derivative instruments									(181)
Less: Losses on the modification or extinguishment of debt and capital lease obligations									(4,724)
Less: Acquisition and transaction expenses									(6,855)
Less: Equity-based compensation expense									(702)
Less: Benefit from income taxes									3,848
Net loss attributable to shareholders from continuing operations									$	(19,889)

Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows:

	Six Months Ended June 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Africa	$	8,473	$	—	$	—	$	—	$	8,473
Asia	58,277		—		—		8,032		66,309
Europe	70,859		—		—		—		70,859
North America	18,069		37,822		314		2,730		58,935
South America	2,573		—		—		—		2,573
Total	$	158,251	$	37,822	$	314	$	10,762	$	207,149

III. For the Three Months Ended June 30, 2019

	Three Months Ended June 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Equipment leasing revenues	$	74,981	$	—	$	—	$	4,219	$	79,200
Infrastructure revenues	—		67,562		2,266		820		70,648
Total revenues	74,981		67,562		2,266		5,039		149,848
Expenses
Operating expenses	3,467		74,393		4,757		3,166		85,783
General and administrative	—		—		—		3,551		3,551
Acquisition and transaction expenses	970		—		—		1,338		2,308
Management fees and incentive allocation to affiliate	—		—		—		5,710		5,710
Depreciation and amortization	33,267		5,519		1,560		1,706		42,052
Interest expense	—		4,524		348		20,522		25,394
Total expenses	37,704		84,436		6,665		35,993		164,798
Other income (expense)
Equity in (losses) earnings of unconsolidated entities	(242)		92		—		(19)		(169)
Gain on sale of assets, net	22,610		12		—		—		22,622
Interest income	28		33		173		6		240
Other income	—		50		4,887		—		4,937
Total other income (expense)	22,396		187		5,060		(13)		27,630
Income (loss) from continuing operations before income taxes	59,673		(16,687)		661		(30,967)		12,680
(Benefit from) provision for income taxes	(2,369)		38		—		3		(2,328)
Net income (loss) from continuing operations	62,042		(16,725)		661		(30,970)		15,008
Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries	—		(4,558)		(22)		—		(4,580)
Net income (loss) from continuing operations attributable to shareholders	$	62,042	$	(12,167)	$	683	$	(30,970)	$	19,588

The following table sets forth a reconciliation of Adjusted EBITDA to net income attributable to shareholders from continuing operations:

	Three Months Ended June 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Adjusted EBITDA	$	102,864	$	(2,563)	$	(2,241)	$	(5,364)	$	92,696
Add: Non-controlling share of Adjusted EBITDA									2,785
Add: Equity in losses of unconsolidated entities									(169)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities									(24)
Less: Interest expense									(25,394)
Less: Depreciation and amortization expense									(51,006)
Less: Incentive allocations									(2,211)
Less: Asset impairment charges									—
Less: Changes in fair value of non-hedge derivative instruments									3,470
Less: Losses on the modification or extinguishment of debt and capital lease obligations									—
Less: Acquisition and transaction expenses									(2,308)
Less: Equity-based compensation expense									(579)
Less: Benefit from income taxes									2,328
Net income attributable to shareholders from continuing operations									$	19,588

Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows:

	Three Months Ended June 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Africa	$	2,208	$	—	$	—	$	—	$	2,208
Asia	25,410		—		—		4,219		29,629
Europe	35,413		—		—		—		35,413
North America	9,604		67,562		2,266		820		80,252
South America	2,346		—		—		—		2,346
Total	$	74,981	$	67,562	$	2,266	$	5,039	$	149,848

IV. For the Six Months Ended June 30, 2019

	Six Months Ended June 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Equipment leasing revenues	$	145,392	$	—	$	—	$	6,260	$	151,652
Infrastructure revenues	—		103,516		7,980		1,594		113,090
Total revenues	145,392		103,516		7,980		7,854		264,742
Expenses
Operating expenses	10,093		113,634		9,659		6,707		140,093
General and administrative	—		—		—		7,735		7,735
Acquisition and transaction expenses	1,948		—		—		1,834		3,782
Management fees and incentive allocation to affiliate	—		—		—		9,548		9,548
Depreciation and amortization	63,272		10,675		3,553		3,415		80,915
Interest expense	—		8,448		644		37,036		46,128
Total expenses	75,313		132,757		13,856		66,275		288,201
Other income (expense)
Equity in (losses) earnings of unconsolidated entities	(443)		(128)		—		18		(553)
Gain on sale of assets, net	24,328		12		—		—		24,340
Interest income	54		71		194		12		331
Other (expense) income	—		(183)		2,517		—		2,334
Total other income (expense)	23,939		(228)		2,711		30		26,452
Income (loss) from continuing operations before income taxes	94,018		(29,469)		(3,165)		(58,391)		2,993
(Benefit from) provision for income taxes	(2,189)		124		—		4		(2,061)
Net income (loss) from continuing operations	96,207		(29,593)		(3,165)		(58,395)		5,054
Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries	—		(7,854)		(86)		—		(7,940)
Net income (loss) from continuing operations attributable to shareholders	$	96,207	$	(21,739)	$	(3,079)	$	(58,395)	$	12,994

The following table sets forth a reconciliation of Adjusted EBITDA to net income attributable to shareholders from continuing operations:

	Six Months Ended June 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Adjusted EBITDA	$	176,526	$	(3,853)	$	(1,315)	$	(13,907)	$	157,451
Add: Non-controlling share of Adjusted EBITDA									4,938
Add: Equity in losses of unconsolidated entities									(553)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities									94
Less: Interest expense									(46,128)
Less: Depreciation and amortization expense									(98,203)
Less: Incentive allocations									(2,373)
Less: Asset impairment charges									—
Less: Changes in fair value of non-hedge derivative instruments									250
Less: Losses on the modification or extinguishment of debt and capital lease obligations									—
Less: Acquisition and transaction expenses									(3,782)
Less: Equity-based compensation expense									(761)
Less: Benefit from income taxes									2,061
Net income attributable to shareholders from continuing operations									$	12,994

Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows:

	Six Months Ended June 30, 2019
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Revenues
Africa	$	5,685	$	—	$	—	$	—	$	5,685
Asia	47,524		—		—		6,260		53,784
Europe	67,298		—		—		—		67,298
North America	20,430		103,516		7,980		1,594		133,520
South America	4,455		—		—		—		4,455
Total	$	145,392	$	103,516	$	7,980	$	7,854	$	264,742

V. Balance Sheet and Location of Long-Lived Assets

The following tables sets forth summarized balance sheet information and the geographic location of property, plant and equipment and leasing equipment, net:

	June 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Total assets	$	1,758,972	$	890,770	$	414,490	$	223,262	$	3,287,494
Debt, net	—		252,754		25,000		1,324,550		1,602,304
Total liabilities	271,548		363,894		49,749		1,350,812		2,036,003
Non-controlling interests in equity of consolidated subsidiaries	—		27,419		849		524		28,792
Total equity	1,487,424		526,876		364,741		(1,127,550)		1,251,491
Total liabilities and equity	$	1,758,972	$	890,770	$	414,490	$	223,262	$	3,287,494

	June 30, 2020
	Equipment Leasing		Infrastructure
	Aviation Leasing		Jefferson Terminal		Ports and Terminals		Corporate and Other		Total
Property, plant and equipment and leasing equipment, net
Africa	$	37,049	$	—	$	—	$	—	$	37,049
Asia	392,135		—		—		45,969		438,104
Europe	849,642		—		—		—		849,642
North America	300,524		612,115		254,757		120,775		1,288,171
South America	5,962		—		—		—		5,962
Total	$	1,585,312	$	612,115	$	254,757	$	166,744	$	2,618,928