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SEGMENT INFORMATION (Tables)

9 Months Ended

Sep. 30, 2024

Schedule of Segment Reporting Information, by Segment

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

I. For the Three Months Ended September 30, 2024


	Three Months Ended September 30, 2024
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Revenues
Lease income	$	57,322	$	—	$	8,128	$	65,450
Maintenance revenue	59,917		—		—		59,917
Asset sales revenue	34,953		—		—		34,953
Aerospace products revenue	—		303,469		—		303,469
Other revenue	74		—		1,931		2,005
Total revenues	$	152,266	$	303,469	$	10,059	$	465,794

Expenses
Cost of sales	20,684		198,812		—		219,496
Operating expenses	9,995		2,617		14,246		26,858
General and administrative	—		—		4,045		4,045
Acquisition and transaction expenses	2,620		2,100		4,621		9,341


Depreciation and amortization	52,455		1,306		3,014		56,775

Total expenses	85,754		204,835		25,926		316,515

Other income (expense)
Equity in losses of unconsolidated entities	—		(438)		—		(438)


Interest expense	—		—		(57,937)		(57,937)
Other income	1,982		—		927		2,909
Total other income (expense)	1,982		(438)		(57,010)		(55,466)
Income (loss) before income taxes	68,494		98,196		(72,877)		93,813
Provision for (benefit from) income taxes	8,898		4,408		(5,975)		7,331
Net income (loss)	59,596		93,788		(66,902)		86,482
Less: Dividends on preferred shares	—		—		8,335		8,335
Net income (loss) attributable to shareholders	$	59,596	$	93,788	$	(75,237)	$	78,147

II. For the Nine Months Ended September 30, 2024


	Nine Months Ended September 30, 2024
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Revenues
Lease income	$	168,927	$	—	$	20,438	$	189,365
Maintenance revenue	156,894		—		—		156,894
Asset sales revenue	145,993		—		—		145,993
Aerospace products revenue	—		737,726		—		737,726
Other revenue	199		—		5,905		6,104
Total revenues	$	472,013	$	737,726	$	26,343	$	1,236,082

Expenses
Cost of sales	111,542		456,615		—		568,157
Operating expenses	26,984		16,510		37,780		81,274
General and administrative	—		—		10,697		10,697
Acquisition and transaction expenses	7,350		2,871		13,318		23,539
Management fees and incentive allocation to affiliate	—		—		8,449		8,449
Internalization fee to affiliate	—		—		300,000		300,000
Depreciation and amortization	151,211		3,177		8,998		163,386
Asset impairment	962		—		—		962
Total expenses	298,049		479,173		379,242		1,156,464

Other income (expense)
Equity in losses of unconsolidated entities	(207)		(1,592)		—		(1,799)

Interest expense	—		—		(160,840)		(160,840)
Loss on extinguishment of debt	—		—		(13,920)		(13,920)
Other income	1,440		—		1,605		3,045
Total other income (expense)	1,233		(1,592)		(173,155)		(173,514)
Income (loss) before income taxes	175,197		256,961		(526,054)		(93,896)
Provision for (benefit from) income taxes	20,224		11,865		(32,219)		(130)
Net income (loss)	154,973		245,096		(493,835)		(93,766)
Less: Dividends on preferred shares	—		—		25,005		25,005
Net income (loss) attributable to shareholders	$	154,973	$	245,096	$	(518,840)	$	(118,771)

III. For the Three Months Ended September 30, 2023


	Three Months Ended September 30, 2023
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Revenues
Lease income	$	35,981	$	—	$	9,641	$	45,622
Maintenance revenue	63,925		—		—		63,925
Asset sales revenue	61,400		—		—		61,400
Aerospace products revenue	—		118,675		—		118,675
Other revenue	82		—		1,392		1,474
Total revenues	$	161,388	$	118,675	$	11,033	$	291,096

Expenses
Cost of sales	46,511		70,196		—		116,707
Operating expenses	13,944		5,947		13,996		33,887
General and administrative	—		—		3,015		3,015
Acquisition and transaction expenses	2,329		110		1,822		4,261
Management fees and incentive allocation to affiliate	—		—		4,577		4,577
Depreciation and amortization	41,141		115		2,703		43,959
Total expenses	103,925		76,368		26,113		206,406

Other income (expense)
Equity in (losses) earnings of unconsolidated entities	(108)		154		—		46
Interest expense	—		—		(40,185)		(40,185)
Other income	444		—		17		461
Total other income (expense)	336		154		(40,168)		(39,678)
Income (loss) before income taxes	57,799		42,461		(55,248)		45,012
Provision for income taxes	2,332		1,131		242		3,705
Net income (loss)	55,467		41,330		(55,490)		41,307

Less: Dividends on preferred shares	—		—		8,334		8,334
Net income (loss) attributable to shareholders	$	55,467	$	41,330	$	(63,824)	$	32,973

III. For the Nine Months Ended September 30, 2023


	Nine Months Ended September 30, 2023
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Revenues
Lease income	$	132,978	$	—	$	28,163	$	161,141
Maintenance revenue	141,131		—		—		141,131
Asset sales revenue	246,927		—		—		246,927
Aerospace products revenue	—		296,513		—		296,513
Other revenue	6,773		—		5,674		12,447
Total revenues	$	527,809	$	296,513	$	33,837	$	858,159

Expenses
Cost of sales	188,343		178,566		—		366,909
Operating expenses	28,610		12,838		39,770		81,218
General and administrative	—		—		10,270		10,270
Acquisition and transaction expenses	4,960		1,137		4,098		10,195
Management fees and incentive allocation to affiliate	—		—		13,137		13,137
Depreciation and amortization	114,994		298		8,107		123,399
Asset impairment	1,220		—		—		1,220
Total expenses	338,127		192,839		75,382		606,348

Other income (expense)
Equity in losses of unconsolidated entities	(242)		(1,427)		—		(1,669)
Interest expense	—		—		(117,976)		(117,976)
Other income	860		—		17		877
Total other income (expense)	618		(1,427)		(117,959)		(118,768)
Income (loss) before income taxes	190,300		102,247		(159,504)		133,043
Provision for income taxes	4,414		2,631		541		7,586
Net income (loss)	185,886		99,616		(160,045)		125,457

Less: Dividends on preferred shares	—		—		23,460		23,460
Net income (loss) attributable to shareholders	$	185,886	$	99,616	$	(183,505)	$	101,997

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

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


	Three Months Ended September 30, 2024
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Adjusted EBITDA	$	136,423	$	101,814	$	(6,207)	$	232,030
Add: Non-controlling share of Adjusted EBITDA							—
Add: Equity in losses of unconsolidated entities							(438)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities							382

Less: Interest expense and dividends on preferred shares							(66,272)
Less: Depreciation and amortization expense							(69,453)
Less: Incentive allocations							—
Less: Asset impairment charges							—
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							(9,341)
Less: Equity-based compensation expense							(1,430)
Less: Provision for income taxes							(7,331)
Net income attributable to shareholders							$	78,147

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


	Nine Months Ended September 30, 2024
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Adjusted EBITDA	$	366,211	$	263,331	$	(19,507)	$	610,035
Add: Non-controlling share of Adjusted EBITDA							—
Add: Equity in losses of unconsolidated entities							(1,799)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities							1,547
Less: Internalization fee to affiliate							(300,000)
Less: Interest expense and dividends on preferred shares							(185,845)
Less: Depreciation and amortization expense							(194,384)
Less: Incentive allocations							(7,456)
Less: Asset impairment charges							(962)
Less: Changes in fair value of non-hedge derivative instruments							—
Less: Losses on the modification or extinguishment of debt and capital lease obligations							(13,920)
Less: Acquisition and transaction expenses							(23,539)
Less: Equity-based compensation expense							(2,578)
Less: Benefit from income taxes							130
Net loss attributable to shareholders							$	(118,771)

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


	Three Months Ended September 30, 2023
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Adjusted EBITDA	$	116,858	$	43,289	$	(5,929)	$	154,218
Add: Non-controlling share of Adjusted EBITDA							—
Add: Equity in earnings of unconsolidated entities							46
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities							(642)
Less: Interest expense and dividends on preferred shares							(48,519)
Less: Depreciation and amortization expense							(59,380)
Less: Incentive allocations							(4,274)
Less: Asset impairment charges							—
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							(4,261)
Less: Equity-based compensation expense							(510)
Less: Provision for income taxes							(3,705)
Net income attributable to shareholders							$	32,973

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


	Nine Months Ended September 30, 2023
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Adjusted EBITDA	$	345,580	$	105,413	$	(16,042)	$	434,951
Add: Non-controlling share of Adjusted EBITDA							—
Add: Equity in losses of unconsolidated entities							(1,669)
Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities							(96)
Less: Interest expense and dividends on preferred shares							(141,436)
Less: Depreciation and amortization expense							(157,084)
Less: Incentive allocations							(12,540)
Less: Asset impairment charges							(1,220)
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							(10,195)
Less: Equity-based compensation expense							(1,128)
Less: Provision for income taxes							(7,586)
Net income attributable to shareholders							$	101,997

Revenue from External Customers by Geographic Areas

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


	Three Months Ended September 30, 2024
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Revenues
Africa	$	1,266	$	—	$	—	$	1,266
Asia	46,459		65,714		10,059		$	122,232
Europe	56,750		84,136		—		$	140,886
North America	34,700		149,530		—		$	184,230
South America	13,091		4,089		—		$	17,180
Total revenues (1)	$	152,266	$	303,469	$	10,059	$	465,794

_______________________________________________________

(1) The United States, included in North America, and Ireland, included in Europe, represent 35% and 15% of total revenues, respectively, based on the location of our customers and lessees. No other country represents more than 10% of total revenues.

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


	Nine Months Ended September 30, 2024
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Revenues
Africa	$	3,389	$	8,271	$	—	$	11,660
Asia	105,220		122,744		26,343		$	254,307
Europe	235,367		256,752		—		$	492,119
North America	81,709		336,672		—		$	418,381
South America	46,328		13,287		—		$	59,615
Total revenues (1)	$	472,013	$	737,726	$	26,343	$	1,236,082

________________________________________________________

(1) The United States, included in North America, and Ireland, included in Europe, represent 32% and 18% of total revenues, respectively, based on the location of our customers and lessees. No other country represents more than 10% of total revenues.

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


	Three Months Ended September 30, 2023
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Revenues
Africa	$	154	$	—	$	—	$	154
Asia	48,267		952		11,033		60,252
Europe	56,679		34,961		—		91,640
North America	44,369		77,213		—		121,582
South America	11,919		5,549		—		17,468
Total revenues (1)	$	161,388	$	118,675	$	11,033	$	291,096

________________________________________________________

(1) The United States, included in North America, and Ireland, included in Europe, represent 35% and 10% of total revenues, respectively, based on the location of our customers and lessees. No other country represents more than 10% of total revenues.

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


	Nine Months Ended September 30, 2023
	Aviation Leasing		Aerospace Products		Corporate and Other		Total
Revenues
Africa	$	154	$	875	$	—	$	1,029
Asia	81,285		2,737		33,837		117,859
Europe	188,498		84,547		—		273,045
North America	225,769		198,359		—		424,128
South America	32,103		9,995		—		42,098
Total revenues (1)	$	527,809	$	296,513	$	33,837	$	858,159

________________________________________________________

(1) The United States, included in North America, represents 46% of total revenues based on the location of our customers and lessees. No other country represents more than 10% of total revenues.

Summary of Contracted Minimum Future Annual Revenues

Presented below are the contracted minimum future annual revenues to be received under existing operating leases as of September 30, 2024:


	Operating Leases
Remainder of 2024	$	73,112
2025	203,217
2026	148,127
2027	111,158
2028	101,250
Thereafter	108,318
Total	$	745,182

Long-lived Assets by Geographic Areas

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


	September 30, 2024		December 31, 2023
Property, plant and equipment and leasing equipment, net
Africa	$	35,419	$	18,380
Asia	446,744		478,120
Europe	939,380		934,817
North America	559,433		416,811
South America	188,966		229,460
Total property, plant and equipment and leasing equipment, net (1)	$	2,169,942	$	2,077,588

________________________________________________________

(1) The United States, included in North America, and Italy, included in Europe, represent 21% and 14% of property, plant and equipment and leasing equipment, net as of September 30, 2024, and 17% as of December 31, 2023, respectively. No other country represents more than 10% of property, plant and equipment and leasing equipment, net.