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Note 11 - Segment Information | 3 Months Ended
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Jun. 30, 2017
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] |
11. | 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. 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. In May 2017, our newly formed subsidiaries AirCo, LLC and AirCo Services, LLC (collectively “AirCo”), acquired the inventory and principal assets of a business based in Wichita, Kansas that distributes and sells airplane and aviation parts. Contrail Aviation, Jet Yard and AirCo comprise 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 (“ATGL”) 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. ATGL commenced operations during the quarter ended December 31, 2015. In March 2014, the Company formed Space Age Insurance Company (“SAIC”), a captive insurance company licensed in Utah. SAIC insures risks of the Company and its subsidiaries that were not previously insured by the various Company insurance programs (including the risk of loss of key customers and contacts, administrative actions and regulatory changes); and may from time to time underwrite third -party risk through certain reinsurance arrangements. 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 opera ting income. For the quarters ended June 30, 2017 and 2016, 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:
|  | Three Months Ended June 30, |
|  | 2017 |  |  | 2016 |
Operating Revenues: |  |  |  |  |  |  |  |
Overnight Air Cargo |  | $ | 16,742,175 |  |  | $ | 16,637,165 |
Ground Equipment Sales: |  |  |  |  |  |  |  |
Domestic |  |  | 5,276,366 |  |  |  | 5,386,069 |
International |  |  | 673,290 |  |  |  | 1,284,619 |
Total Ground Equipment Sales |  |  | 5,949,656 |  |  |  | 6,670,688 |
Ground Support Services |  |  | 9,113,073 |  |  |  | 6,800,042 |
Printing Equipment and Maintenance |  |  |  |  |  |  |  |
Domestic |  |  | 1,443,982 |  |  |  | 2,232,706 |
International |  |  | 1,687,399 |  |  |  | 977,382 |
Total Printing Equipment and Maintenance |  |  | 3,131,381 |  |  |  | 3,210,088 |
Commercial Jet Engines and Parts: |  |  |  |  |  |  |  |
Domestic |  |  | 8,190,885 |  |  |  | - |
International |  |  | 4,535,456 |  |  |  | - |
Total Commercial Jet Engines |  |  | 12,726,341 |  |  |  | - |
Leasing |  |  | 35,747 |  |  |  | 241,770 |
Corporate |  |  | 290,532 |  |  |  | 281,926 |
Intercompany |  |  | (291,532 | ) |  |  | (3,348,426 | )
Total |  | $ | 47,697,373 |  |  | $ | 30,493,253 |
Operating Income (Loss): |  |  |  |  |  |  |  |
Overnight Air Cargo |  | $ | 816,666 |  |  | $ | 979,177 |
Ground Equipment Sales |  |  | 165,794 |  |  |  | 342,320 |
Ground Support Services |  |  | 356,824 |  |  |  | (110,052 | )
Printing Equipment and Maintenance |  |  | 924,036 |  |  |  | (6,935,359 | )
Commercial Jet Engines and Parts |  |  | 810,940 |  |  |  | - |
Leasing |  |  | 6,898 |  |  |  | 107,258 |
Corporate |  |  | (869,916 | ) |  |  | (931,837 | )
Intercompany |  |  | 1,326 |  |  |  | (524,989 | )
Total |  | $ | 2,212,568 |  |  | $ | (7,073,482 | )
Capital Expenditures: |  |  |  |  |  |  |  |
Overnight Air Cargo |  | $ | - |  |  | $ | - |
Ground Equipment Sales |  |  | - |  |  |  | 19,596 |
Ground Support Services |  |  | 25,365 |  |  |  | 101,411 |
Printing Equipment and Maintenance |  |  | - |  |  |  | 9,927 |
Commercial Jet Engines and Parts |  |  | 4,977 |  |  |  | - |
Corporate |  |  | 459,653 |  |  |  | 388,635 |
Leasing |  |  | - |  |  |  | 3,066,500 |
Intercompany |  |  | - |  |  |  | (3,066,500 | )
Total |  | $ | 489,995 |  |  | $ | 519,569 |
Depreciation, Amortization and Impairment: |  |  |  |  |  |  |  |
Overnight Air Cargo |  | $ | 31,016 |  |  | $ | 29,209 |
Ground Equipment Sales |  |  | 132,880 |  |  |  | 47,594 |
Ground Support Services |  |  | 111,631 |  |  |  | 83,436 |
Printing Equipment and Maintenance |  |  | 4,691 |  |  |  | 296,081 |
Commercial Jet Engines and Parts |  |  | 45,776 |  |  |  | - |
Leasing |  |  | 14,812 |  |  |  | 132,369 |
Corporate |  |  | 59,347 |  |  |  | 30,743 |
Intercompany |  |  | (1,326 | ) |  |  | (14,351 | )
Total |  | $ | 398,827 |  |  | $ | 605,081 |
The elimination of intercompany revenues is related to the sale during the three months ended June 30, 2016 of ten commercial deicing units by GGS to ATGL and two élan printers by Delphax to ATGL and 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. The sales of the deicing units and élan printers did not reoccur during the three months ended June 30, 2017.

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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