21.	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 designs, manufactures and 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. A significant portion of Delphax’s net sales is related to service and support provided after the sale. Delphax has a significant presence in the check production marketplace in North America, Europe, Latin America, Asia and the Middle East. 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. At

March 31, 2017,

Contrail Aviation and Jet Yard comprised 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 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. Air T Global Leasing, LLC commenced operations during the quarter ended

December 31, 2015.

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 operating income.

For the fiscal year ended

March 31, 2017,

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:

	Year Ended March 31,
	2017			2016
Operating Revenues:
Overnight Air Cargo	$	69,558,334		$	68,226,891
Ground Equipment Sales:
Domestic		26,922,009			45,417,216
International		4,284,000			6,000,000
Total Ground Equipment Sales		31,206,009			51,417,216
Ground Support Services		30,453,246			24,834,616
Printing Equipment and Maintenance
Domestic		5,653,997			2,753,138
International		4,156,000			1,201,659
Total Printing Equipment and Maintenance		9,809,997			3,954,797
Commercial Jet Engines and Parts:
Domestic		2,688,902			-
International		4,774,000			-
Total Commercial Jet Engines		7,462,902			-
Leasing		537,719			19,816
Corporate		1,136,311			1,068,240
Intercompany		(1,692,859	)		(1,309,638	)
Total	$	148,471,659		$	148,211,938

Operating Income (Loss):
Overnight Air Cargo	$	2,723,933		$	3,283,495
Ground Equipment Sales		2,378,812			6,486,846
Ground Support Services		(500,712	)		(1,035,929	)
Printing Equipment and Maintenance		(5,937,522	)		(1,966,626	)
Commercial Jet Engines and Parts		534,762			-
Leasing		422,913			2,192
Corporate		(2,787,760	)		(647,888	)
Intercompany		64,801			(90,427	)
Total	$	(3,100,773	)	$	6,031,663

Capital Expenditures:
Overnight Air Cargo	$	95,270		$	92,707
Ground Equipment Sales		21,766			341,124
Ground Support Services		465,718			520,243
Printing Equipment and Maintenance		9,927			16,438
Commercial Jet Engines and Parts		60,104			-
Leasing		3,070,037			241,398
Corporate		1,690,109			275,559
Intercompany		(3,066,500	)		(241,398	)
Total	$	2,346,431		$	1,246,071

Depreciation, Amortization and Impairment:
Overnight Air Cargo	$	124,793		$	138,639
Ground Equipment Sales		597,240			518,013
Ground Support Services		383,963			224,878
Printing Equipment and Maintenance		1,738,819			313,893
Commercial Jet Engines and Parts		109,807			-
Leasing		247,323			8,724
Corporate		174,510			53,060
Intercompany		(194,610	)		-
Total	$	3,181,845		$	1,257,207

The elimination of intercompany revenues is related to the sale of

two

élan printers by Delphax to ATGL during the

fiscal year

2017,

along with the 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.