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Operating Segments | 9 Months Ended
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Sep. 30, 2017
Operating Segments |
Operating Segments | 9. Operating Segments The Company operates in two business segments: (i) Leasing and Related Operations which involves acquiring and leasing, primarily pursuant to operating leases, commercial aircraft, aircraft engines and other aircraft equipment and the selective purchase and resale of commercial aircraft engines and other aircraft equipment and (ii) Spare Parts Sales which involves the purchase and resale of after-market engine and airframe parts, whole engines, engine modules and portable aircraft components and leasing of engines destined for disassembly and sale of parts. The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses and inter-company allocation of interest expense. While the Company believes there are synergies between the two business segments, the segments are managed separately because each requires different business strategies. The following tables present a summary of the operating segments (amounts in thousands):
|  | Leasing and |  |  |  |  |  |  |  |
For the three months ended September 30, 2017 |  | Related Operations |  | Spare Parts Sales |  | Eliminations (1) |  | Total
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 33,474 |  | $ | — |  | $ | — |  | $ | 33,474
Maintenance reserve revenue |  |  | 20,370 |  |  | — |  |  | — |  |  | 20,370
Spare parts and equipment sales |  |  | — |  |  | 9,294 |  |  | — |  |  | 9,294
Gain on sale of leased equipment |  |  | 174 |  |  | — |  |  | — |  | s | 174
Other revenue |  |  | 2,538 |  |  | 247 |  |  | (236) |  |  | 2,549
Total revenue |  |  | 56,556 |  |  | 9,541 |  |  | (236) |  |  | 65,861
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 16,056 |  |  | 86 |  |  | — |  |  | 16,142
Cost of spare parts and equipment sales |  |  | — |  |  | 6,416 |  |  | — |  |  | 6,416
Write-down of equipment |  |  | 6,226 |  |  | 732 |  |  | — |  |  | 6,958
General and administrative |  |  | 13,387 |  |  | 921 |  |  | — |  |  | 14,308
Technical expense |  |  | 2,605 |  |  | — |  |  | — |  |  | 2,605
Net finance costs |  |  | 14,220 |  |  | — |  |  | — |  |  | 14,220
Total expenses |  |  | 52,494 |  |  | 8,155 |  |  | — |  |  | 60,649
Earnings (loss) from operations |  | $ | 4,062 |  | $ | 1,386 |  | $ | (236) |  | $ | 5,212
|  | Leasing and |  |  |  |  |  |  |  |
For the nine months ended September 30, 2017 |  | Related Operations |  | Spare Parts Sales |  | Eliminations (1) |  | Total
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 95,045 |  | $ | — |  | $ | — |  | $ | 95,045
Maintenance reserve revenue |  |  | 64,212 |  |  | — |  |  | — |  |  | 64,212
Spare parts and equipment sales |  |  | 19,300 |  |  | 21,973 |  |  | — |  |  | 41,273
Gain on sale of leased equipment |  |  | 4,684 |  |  | — |  |  | — |  |  | 4,684
Other revenue |  |  | 6,314 |  |  | 697 |  |  | (572) |  |  | 6,439
Total revenue |  |  | 189,555 |  |  | 22,670 |  |  | (572) |  |  | 211,653
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 48,526 |  |  | 260 |  |  | — |  |  | 48,786
Cost of spare parts and equipment sales |  |  | 14,623 |  |  | 14,923 |  |  | — |  |  | 29,546
Write-down of equipment |  |  | 19,668 |  |  | 2,575 |  |  | — |  |  | 22,243
General and administrative |  |  | 38,008 |  |  | 2,566 |  |  | — |  |  | 40,574
Technical expense |  |  | 7,345 |  |  | — |  |  | — |  |  | 7,345
Net finance costs |  |  | 36,398 |  |  | — |  |  | — |  |  | 36,398
Total expenses |  |  | 164,568 |  |  | 20,324 |  |  | — |  |  | 184,892
Earnings (loss) from operations |  | $ | 24,987 |  | $ | 2,346 |  | $ | (572) |  | $ | 26,761
|  | Leasing and |  |  |  |  |  |  |  |
For the three months ended September 30, 2016 |  | Related Operations |  | Spare Parts Sales |  | Eliminations (1) |  | Total
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 31,270 |  | $ | — |  | $ | — |  | $ | 31,270
Maintenance reserve revenue |  |  | 14,229 |  |  | — |  |  | — |  |  | 14,229
Spare parts sales |  |  | 900 |  |  | 3,260 |  |  | — |  |  | 4,160
Gain on sale of leased equipment |  |  | 180 |  |  | — |  |  | — |  |  | 180
Other revenue |  |  | 1,487 |  |  | 786 |  |  | (651) |  |  | 1,622
Total revenue |  |  | 48,066 |  |  | 4,046 |  |  | (651) |  |  | 51,461
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 16,541 |  |  | 87 |  |  | — |  |  | 16,628
Cost of spare parts and equipment sales |  |  | 640 |  |  | 2,426 |  |  | — |  |  | 3,066
Write-down of equipment |  |  | — |  |  | — |  |  | — |  |  | —
General and administrative |  |  | 11,500 |  |  | 757 |  |  | — |  |  | 12,257
Technical expense |  |  | — |  |  | — |  |  |  |  |  | —
Net finance costs |  |  | 10,116 |  |  | 114 |  |  | — |  |  | 10,230
Other expense |  |  | 2,934 |  |  | 475 |  |  | — |  |  | 3,409
Total expenses |  |  | 41,731 |  |  | 3,859 |  |  | — |  |  | 45,590
Earnings from operations |  | $ | 6,335 |  | $ | 187 |  | $ | (651) |  | $ | 5,871
|  | Leasing and |  |  |  |  |  |  |  |
For the nine months ended September 30, 2016 |  | Related Operations |  | Spare Parts Sales |  | Eliminations (1) |  | Total
Revenue: |  |  |  |  |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 88,727 |  | $ | — |  | $ | — |  | $ | 88,727
Maintenance reserve revenue |  |  | 45,562 |  |  | — |  |  | — |  |  | 45,562
Spare parts sales |  |  | 1,800 |  |  | 8,665 |  |  | — |  |  | 10,465
Gain on sale of leased equipment |  |  | 3,430 |  |  | — |  |  | — |  |  | 3,430
Other revenue |  |  | 3,392 |  |  | 1,734 |  |  | (1,512) |  |  | 3,614
Total revenue |  |  | 142,911 |  |  | 10,399 |  |  | (1,512) |  |  | 151,798
Expenses: |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization expense |  |  | 48,981 |  |  | 254 |  |  | — |  |  | 49,235
Cost of spare parts sales |  |  | 1,288 |  |  | 6,497 |  |  | — |  |  | 7,785
Write-down of equipment |  |  | — |  |  | — |  |  | — |  |  | —
General and administrative |  |  | 32,438 |  |  | 2,256 |  |  | — |  |  | 34,694
Technical expense |  |  | — |  |  | — |  |  | — |  |  | —
Net finance costs |  |  | 30,443 |  |  | 329 |  |  |  |  |  | 30,772
Other expense |  |  | 10,362 |  |  | 475 |  |  | — |  |  | 10,837
Total expenses |  |  | 123,512 |  |  | 9,811 |  |  | — |  |  | 133,323
Earnings from operations |  | $ | 19,399 |  | $ | 588 |  | $ | (1,512) |  | $ | 18,475
(1) Represents revenue generated between our operating segments
Total assets as of September 30, 2017 |  | $ | 1,417,166 |  | $ | 18,733 |  | $ | — |  | $ | 1,435,899
Total assets as of December 31, 2016 |  | $ | 1,307,460 |  | $ | 30,427 |  | $ | — |  | $ | 1,337,887

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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