ERICKSON INC. - 10-K filing on 2016-03-10

Reportable Segments (Tables)

12 Months Ended

Dec. 31, 2015

Reconciliation of Segment Operating Income (Loss) to Consolidated Operating Income (Loss)

Information about the Company’s revenues and gross profit by its three reportable segments, as well as a reconciliation of the Company’s reportable segment gross profit to operating income (loss) is as follows (in thousands):



	Years Ended December 31,
	2015			2014		2013
Revenues:
Commercial Aviation Services	$	160,885		$	177,261	$	179,955
Global Defense and Security	105,158			154,057		125,558
Manufacturing and MRO	31,477			15,291		12,708
Total revenues	$	297,520		$	346,609	$	318,221
Gross profit:
Commercial Aviation Services	$	31,867		$	47,283	$	56,964
Global Defense and Security	8,123			29,483		33,198
Manufacturing and MRO	7,285			4,128		4,028
Total gross profit	47,275			80,894		94,190
Less: operating expenses	102,074			58,564		47,198
Operating income (loss)	$	(54,799	)	$	22,330	$	46,992

Schedules of Segment Revenue Concentration by Customer

Customers representing 10% or more of the total trade accounts receivable were as follows:



	As of December 31,
	2015		2014
Customer A	14.0	%	14.4	%
Customer B	11.9		11.8
Customer C	11.2		—
	37.1	%	26.2	%

Customers that accounted for at least 10% of the Company’s net revenues were as follows:



		Years Ended December 31,
	Segment	2015		2014		2013
Customer D	Global Defense and Security	17.6	%	17.4	%	14.8	%
Customer E	Commercial Aviation Services	15.8		13.0		14.7
		33.4	%	30.4	%	29.5	%

Schedule of Revenue by Geographic Area

Revenues are attributed to geographic area based on the country where the services were performed, with Manufacturing and MRO segment revenues attributed to a geographic area based on the country in which the customer is located and were as follows:



	Years Ended December 31,
	2015		2014		2013
Revenues:
North America	$	132,420	$	131,690	$	136,100
Middle East	57,468		77,760		67,315
Europe	34,863		26,924		24,096
Africa	28,390		26,459		20,598
Asia	17,154		26,036		25,410
South America	14,380		43,458		24,809
Australia	12,845		14,282		19,893
Total revenues	$	297,520	$	346,609	$	318,221

Reconciliation of Segment Assets to Consolidated Assets

Assets by Reportable Segment (in thousands):



	As of December 31,
	2015		2014
Assets:
Commercial Aviation Services	$	41,857	$	56,456
Global Defense and Security	173,882		232,775
Manufacturing and MRO	25,623		16,207
Corporate⁽¹⁾	3,917		1,332
Aircraft held for sale	12,348		—
Fixed assets⁽²⁾	344,026		386,450
Total assets	$	601,653	$	693,220

(1)

Comprised primarily of cash, prepaid expenses and other current assets, and deferred tax assets. Amount presented for 2014 has been restated for the reclassification of debt issuance costs of $11.4 million from other noncurrent assets to credit facility and long-term debt and noncurrent deferred tax liability of $0.9 million from other liabilities to noncurrent deferred tax asset on the Company’s consolidated balance sheet.


(2)	Comprised of the aircraft fleet and fleet support assets including: aircraft, net; certain aircraft support parts, net; and property, plant, and equipment, net, which are primarily used to support the aircraft fleet, with minimal amounts allocated to the corporate function.