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Reportable Segments | 6 Months Ended
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Jun. 30, 2019
Segment Reporting [Abstract] |
Reportable Segments | Reportable Segments The Company has two reportable 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 other related businesses and (ii) Spare Parts Sales which involves the purchase and resale of after-market engine parts, whole engines, engine modules and portable aircraft components. The Company evaluates the performance of each of the segments based on profit or loss after general and administrative expenses. 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 reportable segments (in thousands):
Three Months Ended June 30, 2019 |  | Leasing and Related Operations |  | Spare Parts Sales |  | Eliminations (1) |  | Total
Revenue: |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 45,025 |  |  | $ | — |  |  | $ | — |  |  | $ | 45,025 |
Maintenance reserve revenue |  | 26,475 |  |  | — |  |  | — |  |  | 26,475 |
Spare parts and equipment sales |  | 266 |  |  | 14,320 |  |  | — |  |  | 14,586 |
Gain on sale of leased equipment |  | 5,120 |  |  | — |  |  | — |  |  | 5,120 |
Other revenue |  | 4,583 |  |  | 31 |  |  | (23 | ) |  | 4,591 |
Total revenue |  | 81,469 |  |  | 14,351 |  |  | (23 | ) |  | 95,797 |
Expenses: |  |  |  |  |  |  |  |
Depreciation and amortization expense |  | 20,023 |  |  | 20 |  |  | — |  |  | 20,043 |
Cost of spare parts and equipment sales |  | 252 |  |  | 12,333 |  |  | — |  |  | 12,585 |
Write-down of equipment |  | 3,262 |  |  | — |  |  | — |  |  | 3,262 |
General and administrative |  | 19,919 |  |  | 1,470 |  |  | — |  |  | 21,389 |
Technical expense |  | 1,407 |  |  | — |  |  | — |  |  | 1,407 |
Net finance costs: |  |  |  |  |  |  |  |
Interest expense |  | 16,781 |  |  | — |  |  | — |  |  | 16,781 |
Loss on debt extinguishment |  | 220 |  |  | — |  |  | — |  |  | 220 |
Total finance costs |  | 17,001 |  |  | — |  |  | — |  |  | 17,001 |
Total expenses |  | 61,864 |  |  | 13,823 |  |  | — |  |  | 75,687 |
Earnings from operations |  | $ | 19,605 |  |  | $ | 528 |  |  | $ | (23 | ) |  | $ | 20,110 |
Three Months Ended June 30, 2018 |  | Leasing and Related Operations |  | Spare Parts Sales |  | Eliminations (1) |  | Total
Revenue: |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 43,081 |  |  | $ | — |  |  | $ | — |  |  | $ | 43,081 |
Maintenance reserve revenue |  | 22,045 |  |  | — |  |  | — |  |  | 22,045 |
Spare parts and equipment sales (2) |  | — |  |  | 11,653 |  |  | — |  |  | 11,653 |
Gain on sale of leased equipment (2) |  | 52 |  |  | — |  |  | — |  |  | 52 |
Other revenue |  | 1,856 |  |  | 210 |  |  | (195 | ) |  | 1,871 |
Total revenue |  | 67,034 |  |  | 11,863 |  |  | (195 | ) |  | 78,702 |
Expenses: |  |  |  |  |  |  |  |
Depreciation and amortization expense |  | 18,297 |  |  | 87 |  |  | — |  |  | 18,384 |
Cost of spare parts and equipment sales (2) |  | — |  |  | 10,305 |  |  | — |  |  | 10,305 |
Write-down of equipment |  | 3,578 |  |  | — |  |  | — |  |  | 3,578 |
General and administrative |  | 15,683 |  |  | 1,099 |  |  | — |  |  | 16,782 |
Technical expense |  | 3,232 |  |  | — |  |  | — |  |  | 3,232 |
Net finance costs: |  |  |  |  |  |  |  |
Interest expense |  | 15,138 |  |  | — |  |  | — |  |  | 15,138 |
Loss on debt extinguishment |  | — |  |  | — |  |  | — |  |  | — |
Total finance costs |  | 15,138 |  |  | — |  |  | — |  |  | 15,138 |
Total expenses |  | 55,928 |  |  | 11,491 |  |  | — |  |  | 67,419 |
Earnings from operations |  | $ | 11,106 |  |  | $ | 372 |  |  | $ | (195 | ) |  | $ | 11,283 |
Six Months Ended June 30, 2019 |  | Leasing and Related Operations |  | Spare Parts Sales |  | Eliminations (1) |  | Total
Revenue: |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 93,394 |  |  | $ | — |  |  | $ | — |  |  | $ | 93,394 |
Maintenance reserve revenue |  | 51,825 |  |  | — |  |  | — |  |  | 51,825 |
Spare parts and equipment sales |  | 2,751 |  |  | 29,337 |  |  | — |  |  | 32,088 |
Gain on sale of leased equipment |  | 14,690 |  |  | — |  |  | — |  |  | 14,690 |
Other revenue |  | 7,561 |  |  | 125 |  |  | (117 | ) |  | 7,569 |
Total revenue |  | 170,221 |  |  | 29,462 |  |  | (117 | ) |  | 199,566 |
Expenses: |  |  |  |  |  |  |  |
Depreciation and amortization expense |  | 40,259 |  |  | 42 |  |  | — |  |  | 40,301 |
Cost of spare parts and equipment sales |  | 2,088 |  |  | 24,909 |  |  | — |  |  | 26,997 |
Write-down of equipment |  | 4,367 |  |  | — |  |  | — |  |  | 4,367 |
General and administrative |  | 39,893 |  |  | 2,936 |  |  | — |  |  | 42,829 |
Technical expense |  | 3,194 |  |  | 1 |  |  | — |  |  | 3,195 |
Net finance costs: |  |  |  |  |  |  |  |
Interest expense |  | 34,660 |  |  | — |  |  | — |  |  | 34,660 |
Loss on debt extinguishment |  | 220 |  |  | — |  |  | — |  |  | 220 |
Total finance costs |  | 34,880 |  |  | — |  |  | — |  |  | 34,880 |
Total expenses |  | 124,681 |  |  | 27,888 |  |  | — |  |  | 152,569 |
Earnings from operations |  | $ | 45,540 |  |  | $ | 1,574 |  |  | $ | (117 | ) |  | $ | 46,997 |
Six Months Ended June 30, 2018 |  | Leasing and Related Operations |  | Spare Parts Sales |  | Eliminations (1) |  | Total
Revenue: |  |  |  |  |  |  |  |
Lease rent revenue |  | $ | 82,726 |  |  | $ | — |  |  | $ | — |  |  | $ | 82,726 |
Maintenance reserve revenue |  | 37,485 |  |  | — |  |  | — |  |  | 37,485 |
Spare parts and equipment sales (2) |  | — |  |  | 24,639 |  |  | — |  |  | 24,639 |
Gain on sale of leased equipment (2) |  | 597 |  |  | — |  |  | — |  |  | 597 |
Other revenue |  | 3,706 |  |  | 1,323 |  |  | (1,277 | ) |  | 3,752 |
Total revenue |  | 124,514 |  |  | 25,962 |  |  | (1,277 | ) |  | 149,199 |
Expenses: |  |  |  |  |  |  |  |
Depreciation and amortization expense |  | 35,565 |  |  | 174 |  |  | — |  |  | 35,739 |
Cost of spare parts and equipment sales (2) |  | — |  |  | 21,692 |  |  | — |  |  | 21,692 |
Write-down of equipment |  | 3,578 |  |  | — |  |  | — |  |  | 3,578 |
General and administrative |  | 30,178 |  |  | 2,215 |  |  | — |  |  | 32,393 |
Technical expense |  | 6,909 |  |  | — |  |  | — |  |  | 6,909 |
Net finance costs: |  |  |  |  |  |  |  |
Interest expense |  | 28,732 |  |  | — |  |  | — |  |  | 28,732 |
Loss on debt extinguishment |  | — |  |  | — |  |  | — |  |  | — |
Total finance costs |  | 28,732 |  |  | — |  |  | — |  |  | 28,732 |
Total expenses |  | 104,962 |  |  | 24,081 |  |  | — |  |  | 129,043 |
Earnings from operations |  | $ | 19,552 |  |  | $ | 1,881 |  |  | $ | (1,277 | ) |  | $ | 20,156 |
______________________________
(1) | Represents revenue generated between our operating segments.
(2) | Effective January 1, 2018, the Company adopted ASC 606 and has identified the sale of parts from engines previously transferred from the lease portfolio to the Spare Parts segment as sales to customers of the reporting entity. As such, the Company presents the sale of these assets on a gross basis and have reclassified the three and six months ended June 30, 2018 gross revenue and costs on sale to the Spare parts and equipment sales and Cost of spare parts and equipment sales line items from the net gain (loss) presentation within the Gain on sale of leased equipment line item.
|  | Leasing and Related Operations |  | Spare Parts Sales |  | Eliminations |  | Total
Total assets as of June 30, 2019 |  | $ | 1,874,523 |  |  | $ | 56,260 |  |  | $ | — |  |  | $ | 1,930,783 |
Total assets as of December 31, 2018 |  | $ | 1,882,860 |  |  | $ | 52,083 |  |  | $ | — |  |  | $ | 1,934,943 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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