Segment Information

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company operates in two reportable segments, as described below. The CAM segment consists of the Company's aircraft leasing operations and its segment earnings includes an allocation of interest expense. The ACMI Services segment consists of the Company's airline operations including the CMI agreement with DHL, as well as ACMI and charter service agreements that the Company provides to other customers. Due to the similarities among

the Company's airline operations, the airline operations are aggregated into a single reportable segment, ACMI Services. The Company's other activities, which include contracts with the USPS, the sale of aircraft parts and maintenance services, management services for workers' compensation and logistics services, do not constitute reportable segments and are combined in “All other” with inter-segment profit eliminations. Inter-segment revenues are valued at arms-length, market rates. Cash, cash equivalents and deferred tax assets are reflected in Assets - All other below. The Company's segment information from continuing operations is presented below (in thousands):

	Three Months Ending						Nine Months Ending
	September 30,						September 30,
	2012			2011			2012			2011
Total revenues:
CAM	$	39,155		$	37,045		$	115,073		$	101,935
ACMI Services	123,317			163,036			358,142			474,450
All other	26,773			26,335			81,876			77,242
Eliminate inter-segment revenues	(35,419		)	(30,936		)	(102,205		)	(89,959		)
Total	$	153,826		$	195,480		$	452,886		$	563,668
Customer revenues:
CAM	$	18,638		$	17,815		$	56,663		$	47,710
ACMI Services	122,526			162,921			357,110			473,952
All other	12,662			14,744			39,113			42,006
Total	$	153,826		$	195,480		$	452,886		$	563,668
Depreciation and amortization expense:
CAM	$	15,187		$	14,320		$	44,288		$	40,246
ACMI Services	5,685			8,259			18,244			28,660
All other	185			37			339			(41		)
Total	$	21,057		$	22,616		$	62,871		$	68,865
Impairment Charges
CAM - aircraft impairment	$	—		$	6,761		$	—		$	6,761
ACMI Services - aircraft impairment	—			15,304			—			15,304
ACMI Services - customer relationship impairment	—			2,282			—			2,282
ACMI Services - goodwill impairment	—			2,797			—			2,797
Total	$	—		$	27,144		$	—		$	27,144
Segment earnings (loss):
CAM	$	17,334		$	9,395		$	50,819		$	36,495
ACMI Services	(1,746		)	(17,625		)	(11,543		)	(15,575		)
All other	3,373			3,672			8,602			7,001
Net unallocated interest expense	(296		)	(227		)	(961		)	(2,017		)
Net gain (loss) on derivative instruments	294			(1,881		)	956			(5,437		)
Write-off of unamortized debt issuance costs	—			—			—			(2,886		)
Pre-tax earnings (loss) from continuing operations	$	18,959		$	(6,666	)	$	47,873		$	17,581

The Company's assets are presented below by segment (in thousands):

	September 30,		December 31,
	2012		2011
Assets:
CAM	$	798,035	$	760,588
ACMI Services	157,010		137,640
All other	70,460		95,491
Total	$	1,025,505	$	993,719

Interest expense of $0.2 million and $0.7 million for the three and nine month periods ending September 30, 2012, respectively, compared to $0.3 million and $0.9 million for the corresponding periods in 2011, respectively, was included in the ACMI Services segment earnings above. Interest expense allocated to CAM was $3.1 million and $9.1 million for the three and nine month periods ending September 30, 2012, respectively, compared to $2.8 million and $7.9 million for the corresponding periods of 2011.