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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
SEGMENT INFORMATION | 12. SEGMENT INFORMATION The key factors used to identify the reportable segments are the organization and alignment of our internal operations and the nature of our products and services. Our two reportable segments are (i) Aviation Leasing and (ii) Aerospace Products. The Aviation Leasing segment owns and manages aviation assets, including aircraft and aircraft engines, which it leases and sells to lessees, directly and also through its equity method investment. The Aerospace Products segment, through our maintenance facilities, equity method investment and exclusivity arrangements, develops and manufactures, repairs/refurbishes and sells aircraft engines and aftermarket components for the CFM56-5B, CFM56-7B and V2500 commercial aircraft engines. During the fourth quarter of 2023, the Company changed the composition of its operating segments to include V2500 engines within the Aerospace Products segment. Prior periods have been restated to reflect the change in accordance with the requirements of ASC 280, Segment Reporting. See Note 2 for additional information. Corporate and Other primarily consists of debt, unallocated corporate general and administrative expenses, internalization fee and management fees and incentive compensation pursuant to the Management Agreement prior to the Internalization effective May 28, 2024. Additionally, Corporate and Other also includes results from an offshore energy business, which consists of vessels and equipment that support offshore oil and gas activities and production which are typically subject to operating leases. We sold the two offshore vessels in 2024. 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. Our Chief Executive Officer is our Chief Operating Decision Maker (“CODM”). Segment information is presented in the same manner that our CODM reviews the operating results in assessing performance and allocating resources. The CODM evaluates performance for each reportable segment based on net income (loss) attributable to shareholders and is used to monitor budget vs. actual results. The CODM determined that segment asset information is not a key factor in measuring performance or allocating resources. Therefore, segment asset information is not included in the tables below as it is not provided to or reviewed by our CODM. The following tables set forth certain information, which include all significant expenses reviewed by the CODM, for each reportable segment (unaudited): I. For the Three Months Ended March 31, 2025
| Three Months Ended March 31, 2025
| Aviation Leasing |  | Aerospace Products |  | Corporate and Other |  | Eliminations |  | Total
Revenues |  |  |  |  |  |  |  |  |
Aerospace products revenue (1) | $ | — |  |  | $ | 365,063 |  |  | $ | — |  |  | $ | — |  |  | $ | 365,063 |
Lease income | 68,467 |  |  | — |  |  | 4 |  |  | — |  |  | 68,471 |
Maintenance revenue | 49,607 |  |  | — |  |  | — |  |  | — |  |  | 49,607 |
Asset sales revenue | 18,939 |  |  | — |  |  | — |  |  | — |  |  | 18,939 |
Total revenues | $ | 137,013 |  |  | $ | 365,063 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 502,080 |
Expenses |  |  |  |  |  |  |  |  |
Cost of sales | 19,959 |  |  | 228,755 |  |  | — |  |  | — |  |  | 248,714 |
Operating expenses | 7,426 |  |  | 5,687 |  |  | 19,325 |  |  | — |  |  | 32,438 |
General and administrative | — |  |  | — |  |  | 3,116 |  |  | — |  |  | 3,116 |
Acquisition and transaction expenses | 2,905 |  |  | 1,132 |  |  | 3,255 |  |  | — |  |  | 7,292 |
Depreciation and amortization | 55,061 |  |  | 3,584 |  |  | 917 |  |  | — |  |  | 59,562 |
Total expenses | 85,351 |  |  | 239,158 |  |  | 26,613 |  |  | — |  |  | 351,122 |
Other income (expense) |  |  |  |  |  |  |  |  |
Interest expense | — |  |  | — |  |  | (62,040) |  |  | — |  |  | (62,040) |
Equity in (losses) earnings of unconsolidated entities (2) | (777) |  |  | 113 |  |  | — |  |  | (6,950) |  |  | (7,614) |
Other income (3) | 43,489 |  |  | — |  |  | 452 |  |  | — |  |  | 43,941 |
Total other income (expense) | 42,712 |  |  | 113 |  |  | (61,588) |  |  | (6,950) |  |  | (25,713) |
Income (loss) before income taxes | 94,374 |  |  | 126,018 |  |  | (88,197) |  |  | (6,950) |  |  | 125,245 |
Provision for (benefit from) income taxes | 17,348 |  |  | 19,375 |  |  | (13,864) |  |  | — |  |  | 22,859 |
Net income (loss) | 77,026 |  |  | 106,643 |  |  | (74,333) |  |  | (6,950) |  |  | 102,386 |
Less: Dividends on preferred shares | — |  |  | — |  |  | 6,115 |  |  | — |  |  | 6,115 |
Less: Loss on redemption of preferred shares | — |  |  | — |  |  | 6,327 |  |  | — |  |  | 6,327 |
Net income (loss) attributable to shareholders | $ | 77,026 |  |  | $ | 106,643 |  |  | $ | (86,775) |  |  | $ | (6,950) |  |  | $ | 89,944 |
______________________________________________________ (1) Includes revenue of $100,638 for the three months ended March 31, 2025 for sales to the 2025 Partnership. See Note 11 for additional information. (2) Includes the profit elimination of $(6,950) for the three months ended March 31, 2025 for sales to the 2025 Partnership within the Aerospace Products segment. (3) Includes gain on sale of $10,870 for the three months ended March 31, 2025 for sales to the 2025 Partnership within the Aviation Leasing segment. Summary information with respect to our geographic sources of revenue, based on location of customer and lessee, is as follows:
| Three Months Ended March 31, 2025
| Aviation Leasing |  | Aerospace Products |  |  |  |  |  | Corporate and Other |  | Total
Revenues |  |  |  |  |  |  |  |  |  |  |
Africa | $ | 2,199 |  |  | $ | 9,482 |  |  |  |  |  |  | $ | — |  |  | $ | 11,681 |
Asia | 32,141 |  |  | 42,959 |  |  |  |  |  |  | 4 |  |  | 75,104 |
Europe | 74,044 |  |  | 96,872 |  |  |  |  |  |  | — |  |  | 170,916 |
North America | 18,263 |  |  | 207,432 |  |  |  |  |  |  | — |  |  | 225,695 |
South America | 10,366 |  |  | 8,318 |  |  |  |  |  |  | — |  |  | 18,684 |
Total revenues (1) | $ | 137,013 |  |  | $ | 365,063 |  |  |  |  |  |  | $ | 4 |  |  | $ | 502,080 |
______________________________________________________ (1) The United States, included in North America, Ireland, included in Europe, and Bermuda, included in North America, represent 26%, 19% and 11% of total revenues, respectively, based on the location of our lessees. No other country represents more than 10% of total revenues. Presented below are the contracted minimum future annual revenues to be received under existing operating leases as of March 31, 2025:
| March 31, 2025 |  |
Remainder of 2025 | $ | 130,220 |  |  |
2026 | 119,499 |  |  |
2027 | 99,075 |  |  |
2028 | 85,577 |  |  |
2029 | 54,851 |  |  |
Thereafter | 62,270 |  |  |
Total | $ | 551,492 |  |  |
II. For the Three Months Ended March 31, 2024
| Three Months Ended March 31, 2024
| Aviation Leasing |  | Aerospace Products |  | Corporate and Other |  | Total
Revenues |  |  |  |  |  |  |
Aerospace products revenue | $ | — |  |  | $ | 189,057 |  |  | $ | — |  |  | $ | 189,057 |
Lease income | 50,913 |  |  | — |  |  | 2,327 |  |  | 53,240 |
Maintenance revenue | 45,790 |  |  | — |  |  | — |  |  | 45,790 |
Asset sales revenue | 38,607 |  |  | — |  |  | — |  |  | 38,607 |
Total revenues | $ | 135,310 |  |  | $ | 189,057 |  |  | $ | 2,327 |  |  | $ | 326,694 |
Expenses |  |  |  |  |  |  |
Cost of sales | 31,889 |  |  | 110,915 |  |  | — |  |  | 142,804 |
Operating expenses | 8,207 |  |  | 7,470 |  |  | 9,640 |  |  | 25,317 |
General and administrative | — |  |  | — |  |  | 3,683 |  |  | 3,683 |
Acquisition and transaction expenses | 2,761 |  |  | 246 |  |  | 3,172 |  |  | 6,179 |
Management fees and incentive allocation to affiliate | — |  |  | — |  |  | 4,895 |  |  | 4,895 |
Depreciation and amortization | 46,084 |  |  | 933 |  |  | 2,903 |  |  | 49,920 |
Asset impairment | 962 |  |  | — |  |  | — |  |  | 962 |
Total expenses | 89,903 |  |  | 119,564 |  |  | 24,293 |  |  | 233,760 |
Other income (expense) |  |  |  |  |  |  |
Interest expense | — |  |  | — |  |  | (47,707) |  |  | (47,707) |
Equity in losses of unconsolidated entities | (146) |  |  | (521) |  |  | — |  |  | (667) |
Other income | 369 |  |  | — |  |  | 265 |  |  | 634 |
Total other income (expense) | 223 |  |  | (521) |  |  | (47,442) |  |  | (47,740) |
Income (loss) before income taxes | 45,630 |  |  | 68,972 |  |  | (69,408) |  |  | 45,194 |
Provision for income taxes | 3,033 |  |  | 2,539 |  |  | — |  |  | 5,572 |
Net income (loss) | 42,597 |  |  | 66,433 |  |  | (69,408) |  |  | 39,622 |
Less: Dividends on preferred shares | — |  |  | — |  |  | 8,335 |  |  | 8,335 |
Net income (loss) attributable to shareholders | $ | 42,597 |  |  | $ | 66,433 |  |  | $ | (77,743) |  |  | $ | 31,287 |
Summary information with respect to our geographic sources of revenue, based on location of customer and lessee, is as follows:
| Three Months Ended March 31, 2024
| Aviation Leasing |  | Aerospace Products |  | Corporate and Other |  | Total
Revenues |  |  |  |  |  |  |
Africa | $ | 868 |  |  | $ | 5,686 |  |  | $ | — |  |  | $ | 6,554 |
Asia | 25,119 |  |  | 28,500 |  |  | 2,327 |  |  | 55,946 |
Europe | 71,044 |  |  | 67,716 |  |  | — |  |  | 138,760 |
North America | 20,847 |  |  | 81,372 |  |  | — |  |  | 102,219 |
South America | 17,432 |  |  | 5,783 |  |  | — |  |  | 23,215 |
Total revenues (1) | $ | 135,310 |  |  | $ | 189,057 |  |  | $ | 2,327 |  |  | $ | 326,694 |
______________________________________________________ (1) The United States, included in North America, and Ireland, included in Europe, represent 30% and 13% of total revenues, respectively, based on the location of our lessees. No other country represents more than 10% of total revenues. III. Location of Long-Lived Assets The following tables sets forth the geographic location of property, plant and equipment and leasing equipment, net:
|  |  |  |  |  |  | March 31, 2025 (unaudited) |  | December 31, 2024
Property, plant and equipment and leasing equipment, net |  |  |  |  |  |  |
Africa |  |  |  |  |  |  | $ | 23,571 |  |  | $ | 37,369 |
Asia |  |  |  |  |  |  | 449,632 |  |  | 596,547 |
Europe |  |  |  |  |  |  | 860,284 |  |  | 1,038,176 |
North America |  |  |  |  |  |  | 544,316 |  |  | 592,675 |
South America |  |  |  |  |  |  | 219,618 |  |  | 216,414 |
Total property, plant and equipment and leasing equipment, net |  |  |  |  |  |  | $ | 2,097,421 |  |  | $ | 2,481,181 |
________________________________________________________ (1) The United States, included in North America represents 19% of property, plant and equipment and leasing equipment, net as of March 31, 2025. The United States, included in North America, and Italy, included in Europe, represent 17% and 12% of property, plant and equipment and leasing equipment, net as of December 31, 2024, respectively. No other country represents more than 10% of property, plant and equipment and leasing equipment, net.

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