11.	Segment Information

The Company has

six

business segments. The overnight air cargo segment, composed of the Company

’s Mountain Air Cargo, Inc. (“MAC”) and CSA Air, Inc. (“CSA”) subsidiaries, operates in the air express delivery services industry. The ground equipment sales segment, composed of the Company’s Global Ground Support, LLC (“GGS”) subsidiary, manufactures and provides mobile deicers and other specialized equipment products to passenger and cargo airlines, airports, the U.S. military and industrial customers. The ground support services segment, composed of the Company’s Global Aviation Services, LLC (“GAS”) subsidiary, provides ground support equipment maintenance and facilities maintenance services to domestic airlines and aviation service providers. The printing equipment and maintenance segment is composed of Delphax and its subsidiaries, which was consolidated for financial accounting purposes beginning

November 24, 2015.

Delphax sells advanced digital print production equipment, maintenance contracts, spare parts, supplies and consumable items for these systems. The equipment is sold through Delphax and its subsidiaries located in the United Kingdom and France. In

July 2016,

the Company’s majority owned subsidiary, Contrail Aviation Support, LLC (“Contrail Aviation”), acquired the principal assets of a business based in Verona, Wisconsin engaged in acquiring surplus commercial jet engines or components and supplying surplus and aftermarket commercial jet engine component. In

October 2016,

the Company, through a wholly-owned subsidiary, acquired

100%

of the outstanding equity interests of Jet Yard, LLC (“Jet Yard”) to provide commercial aircraft storage, storage maintenance and aircraft disassembly/part-out services at facilities leased at the Pinal Air Park in Marana, Arizona. In

May 2017,

our newly formed subsidiaries AirCo, LLC and AirCo Services, LLC (collectively “AirCo”), acquired the inventory and principal assets of a business based in Wichita, Kansas that distributes and sells airplane and aviation parts. Contrail Aviation, Jet Yard and AirCo comprise the commercial jet engines and parts segment of the Company’s operations. This segment, formerly referred to as the commercial jet engines segment, was renamed to reflect its broader product and service offerings. The Company’s leasing segment, comprised of the Company’s Air T Global Leasing, LLC (“ATGL”) subsidiary, provides funding for equipment leasing transactions, which

may

include transactions for the leasing of equipment manufactured by GGS and Delphax and transactions initiated by

third

parties unrelated to equipment manufactured by the Company or any of its subsidiaries. ATGL commenced operations during the quarter ended

December 31, 2015.

March 2014,

the Company formed Space Age Insurance Company (“SAIC”), a captive insurance company licensed in Utah. SAIC insures risks of the Company and its subsidiaries that were

not

previously insured by the various Company insurance programs (including the risk of loss of key customers and contacts, administrative actions and regulatory changes); and

may

from time to time underwrite

third

-party risk through certain reinsurance arrangements.

Each business segment has separate management teams and infrastructures that offer different products and services. We evaluate the performance of our business segments based on opera

ting income. For the quarters ended

September 30, 2017

and

2016,

the premiums paid to SAIC by the Company were allocated among the operating segments based on segment revenue and certain identified corporate expense were allocated to the segments based on the relative benefit of those expenses to each segment.

Segment data is summarized as follows:

	Three Months Ended September 30,						Six Months Ended September 30,
	2017			2016			2017			2016
Operating Revenues:
Overnight Air Cargo	$	18,081,073		$	17,151,214		$	34,823,248		$	33,788,379
Ground Equipment Sales:
Domestic		15,046,892			10,305,102			20,323,258			15,691,171
International		469,217			783,775			1,142,507			2,068,394
Total Ground Equipment Sales		15,516,109			11,088,877			21,465,765			17,759,565
Ground Support Services		8,801,326			7,038,151			17,914,399			13,838,193
Printing Equipment and Maintenance:
Domestic		280,328			1,016,697			1,724,310			3,249,403
International		1,022,594			732,041			2,709,993			1,709,423
Total Printing Equipment and Maintenance		1,302,922			1,748,738			4,434,303			4,958,826
Commercial Jet Engines and Parts:
Domestic		2,275,190			450,188			10,466,075			450,188
International		2,851,729			844,919			7,387,185			844,919
Total Commercial Jet Engines and Parts		5,126,919			1,295,107			17,853,260			1,295,107
Leasing		34,816			221,745			70,563			463,515
Corporate		290,533			281,926			581,065			563,852
Intercompany		(292,208	)		(302,768	)		(583,740	)		(3,651,194	)
Total	$	48,861,490		$	38,522,990		$	96,558,863		$	69,016,243

Operating Income (Loss):
Overnight Air Cargo	$	896,506		$	440,804		$	1,713,172		$	1,419,981
Ground Equipment Sales		1,165,430			1,243,037			1,331,224			1,585,357
Ground Support Services		276,113			(240,717	)		632,937			(350,769	)
Printing Equipment and Maintenance		(482,222	)		(11,851	)		441,814			(6,947,210	)
Commercial Jet Engines and Parts		(48,760	)		42,806			762,180			42,806
Leasing		4,671			72,157			11,569			179,415
Corporate		(1,385,863	)		(531,696	)		(2,255,779	)		(1,463,533	)
Intercompany		49,783			7,199			51,109			(517,790	)
Total	$	475,658		$	1,021,739		$	2,688,226		$	(6,051,743	)

Capital Expenditures:
Overnight Air Cargo	$	20,346		$	36,040		$	20,346		$	36,040
Ground Equipment Sales		2,258			-			2,258			19,596
Ground Support Services		117,919			110,728			143,284			212,139
Printing Equipment and Maintenance		8,491			-			8,491			9,927
Commercial Jet Engines and Parts		7,078,004			-			7,082,981			-
Corporate		542,202			244,703			1,001,855			633,338
Leasing		-			-			-			3,066,500
Intercompany		-			-			-			(3,066,500	)
Total	$	7,769,220		$	391,471		$	8,259,215		$	911,040

Depreciation, amortization and impairment:
Overnight Air Cargo	$	30,128		$	30,100		$	61,144		$	59,309
Ground Equipment Sales		117,499			47,326			250,379			94,920
Ground Support Services		113,625			87,273			225,256			170,709
Printing Equipment and Maintenance		3,316			45,803			8,007			1,726,404
Commercial Jet Engines and Parts		151,338			28,406			197,114			28,406
Leasing		14,810			85,921			29,622			218,290
Corporate		100,146			36,042			159,493			66,785
Intercompany		(1,324	)		(7,199	)		(2,650	)		(21,550	)
Total	$	529,538		$	353,672		$	928,365		$	2,343,273

The elimination of intercompany revenues is related t

o the sale during the

six

months ended

September 30, 2016

ten

commercial deicing units by GGS to ATGL and

two

élan printers by Delphax to ATGL and premiums paid to SAIC, and the elimination of intercompany operating income for such period reflects the margins on the sales of those assets, elimination of excess depreciation and amortization related to the margin on those assets, and the premiums paid to SAIC. The sales of the deicing units and élan printers did

not

reoccur during the

six

months ended

September 30, 2017.