FTAI Aviation Ltd. - 10-K filing on 2016-03-10

SEGMENT INFORMATION (Tables)

12 Months Ended

Dec. 31, 2015

Schedule of Segment Reporting Information, by Segment

The following tables set forth certain information for each reportable segment of the Company:

I. For the Year Ended December 31, 2015



	Year Ended December 31, 2015
	Equipment Leasing							Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers			Jefferson Terminal			Railroad			Corporate			Total
Revenues
Equipment leasing	$	61,330	$	24,231	$	7,182		$	—		$	—		$	—		$	92,743
Infrastructure	—		—		—			18,275			25,550			—			43,825
Total revenues	61,330		24,231		7,182			18,275			25,550			—			136,568

Expenses
Operating expenses	2,820		4,650		350			33,154			27,819			—			68,793
General and administrative	—		—		—			—			—			7,568			7,568
Acquisition and transaction expense	—		—		—			—			—			5,683			5,683
Management fees and incentive allocation to affiliate	—		—		—			—			—			15,018			15,018
Depreciation and amortization	23,549		5,967		—			13,897			1,895			—			45,308
Interest expense	—		3,794		2,393			12,546			578			—			19,311
Total expenses	26,369		14,411		2,743			59,597			30,292			28,269			161,681

Other income (expense)
Equity in losses of unconsolidated entities	—		—		(6,956		)	—			—			—			(6,956		)
Gain (loss) on sale of equipment	3,053		—		—			(199		)	565			—			3,419
Interest income	11		483		—			85			—			—			579
Other income (expense)	—		—		(14		)	40			—			—			26
Total other income (expense)	3,064		483		(6,970		)	(74		)	565			—			(2,932		)
Income (loss) before income taxes	38,025		10,303		(2,531		)	(41,396		)	(4,177		)	(28,269		)	(28,045		)
Provision (benefit) for income taxes	668		—		(127		)	41			—			4			586
Net income (loss)	37,357		10,303		(2,404		)	(41,437		)	(4,177		)	(28,273		)	(28,631		)
Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries	21		676		—			(17,376		)	(121		)	(5		)	(16,805		)
Net income (loss) attributable to shareholders	$	37,336	$	9,627	$	(2,404	)	$	(24,061	)	$	(4,056	)	$	(28,268	)	$	(11,826	)

II. For the Year Ended December 31, 2014



	Year Ended December 31, 2014
	Equipment Leasing							Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers			Jefferson Terminal			Railroad			Corporate			Total
Revenues
Equipment leasing	$	20,958	$	14,630	$	8,396		$	—		$	—					$	43,984
Infrastructure	—		—		—			3,977			9,969						13,946
Total revenues	20,958		14,630		8,396			3,977			9,969			—			57,930

Expenses
Operating expenses	1,713		1,054		257			9,095			15,104			—			27,223
General and administrative	—		—		—			—			—			2,007			2,007
Acquisition and transaction expense	—		—		—			5,494			5,646			310			11,450
Management fees and incentive allocation to affiliate	—		—		—			—			—			5,463			5,463
Depreciation and amortization	9,445		2,801		—			2,763			989			—			15,998
Interest expense	—		1,248		2,840			1,552			187			45			5,872
Total expenses	11,158		5,103		3,097			18,904			21,926			7,825			68,013

Other income (expense)
Equity in earnings of unconsolidated entities	—		—		6,093			—			—			—			6,093
Gain on sale of equipment	7,576		—		—			—			—			—			7,576
Interest income	26		160		—			—			—			—			186
Other income (expense)	—		—		(26		)	46			—			—			20
Total other income	7,602		160		6,067			46			—			—			13,875
Income (loss) before income taxes	17,402		9,687		11,366			(14,881		)	(11,957		)	(7,825		)	3,792
Provision for income taxes	490		—		100			284			—			—			874
Net income (loss)	16,912		9,687		11,266			(15,165		)	(11,957		)	(7,825		)	2,918
Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries	—		704		—			(5,566		)	—			—			(4,862		)
Net income (loss) attributable to shareholders	$	16,912	$	8,983	$	11,266		$	(9,599	)	$	(11,957	)	$	(7,825	)	$	7,780

III. For the Year Ended December 31, 2013



	Year Ended December 31, 2013
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate			Total
Revenues
Equipment leasing	$	6,645	$	5,264	$	7,621	$	—	$	—	$	—		$	19,530
Infrastructure	—		—		—		—		—		—			—
Total revenues	6,645		5,264		7,621		—		—		—			19,530

Expenses
Operating expenses	2,191		450		516		—		—		—			3,157
General and administrative	—		—		—		—		—		805			805
Acquisition and transaction expense	—		—		—		—		—		260			260
Management fees and incentive allocation to affiliate	—		—		—		—		—		2,211			2,211
Depreciation and amortization	2,972		937		—		—		—		—			3,909
Interest expense	—		104		2,699		—		—		13			2,816
Total expenses	5,163		1,491		3,215		—		—		3,289			13,158

Other income
Equity in earnings of unconsolidated entities	—		2,700		7,625		—		—		—			10,325
Gain on sale of equipment	2,415		—		—		—		—		—			2,415
Gain on sale of unconsolidated entity	—		6,144		—		—		—		—			6,144
Interest income	23		—		—		—		—		—			23
Total other income	2,438		8,844		7,625		—		—		—			18,907
Income (loss) before income taxes	3,920		12,617		12,031		—		—		(3,289		)	25,279
Provision for income taxes	—		—		—		—		—		—			—
Net income (loss)	3,920		12,617		12,031		—		—		(3,289		)	25,279
Less: Net income attributable to non-controlling interests in consolidated subsidiaries	—		458		—		—		—		—			458
Net income (loss) attributable to shareholders	$	3,920	$	12,159	$	12,031	$	—	$	—	$	(3,289	)	$	24,821

Reconciliation of Operating Profit (Loss) from Segments to Consolidated

The following table sets forth a reconciliation of Adjusted Net Income to Net Income (Loss) attributable to shareholders:



	Year Ended December 31, 2015
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal			Railroad			Corporate			Total
Adjusted Net Income (Loss)	$	37,777	$	9,627	$	7,991	$	(22,153	)	$	(2,898	)	$	(22,557	)	$	7,787
Add: Non-controlling share of adjustments to Adjusted Net Income																1,333
Add: Equity in (losses) earnings of unconsolidated entities																(6,956		)
Add: Cash payments for income taxes																507
Less: Incentive allocations																—
Less: Pro-rata share of Adjusted Net Income from investments in unconsolidated entities																(3,552		)
Less: Asset impairment charges																—
Less: Changes in fair value of non-hedge derivative instruments																(14		)
Less: Losses on the modification or extinguishment of debt and capital lease obligations																—
Less: Acquisition and transaction expenses																(5,683		)
Less: Equity-based compensation expense																(4,662		)
Less: Provision for income taxes																(586		)
Net Loss attributable to shareholders																$	(11,826	)

The following table sets forth a reconciliation of Adjusted Net Income to Net Income attributable to shareholders:



	Year Ended December 31, 2014
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal			Railroad			Corporate			Total
Adjusted Net Income (Loss)	$	17,136	$	8,976	$	11,453	$	(3,209	)	$	(6,183	)	$	(7,516	)	$	20,657
Add: Non-controlling share of adjustments to Adjusted Net Income																525
Add: Equity in earnings of unconsolidated entities																6,093
Add: Cash payments for income taxes																274
Less: Incentive allocations																—
Less: Pro-rata share of Adjusted Net Income from investments in unconsolidated entities																(6,155		)
Less: Asset impairment charges																—
Less: Changes in fair value of non-hedge derivative instruments																(25		)
Less: Losses on the modification or extinguishment of debt and capital lease obligations																—
Less: Acquisition and transaction expenses																(11,450		)
Less: Equity-based compensation expense																(1,265		)
Less: Provision for income taxes																(874		)
Net Income attributable to shareholders																$	7,780

The following table sets forth a reconciliation of Adjusted Net Income to Net Income attributable to shareholders:



	Year Ended December 31, 2013
	Equipment Leasing
	Aviation Leasing		Offshore Energy		Shipping Containers		Corporate			Total
Adjusted Net Income (Loss)	$	3,920	$	12,159	$	12,031	$	(3,029	)	$	25,081
Add: Non-controlling share of adjustments to Adjusted Net Income										—
Add: Equity in earnings of unconsolidated entities										10,325
Add: Cash payments for income taxes										—
Less: Incentive allocations										—
Less: Pro-rata share of Adjusted Net Income from investments in unconsolidated entities										(10,325		)
Less: Asset impairment charges										—
Less: Changes in fair value of non-hedge derivative instruments										—
Less: Losses on the modification or extinguishment of debt and capital lease obligations										—
Less: Acquisition and transaction expenses										(260		)
Less: Equity-based compensation expense										—
Less: Provision for income taxes										—
Net Income attributable to shareholders										$	24,821

Revenue from External Customers by Geographic Areas

Summary information with respect to the Company’s geographic sources of revenue, based on location of customer, is as follows:



	Year Ended December 31, 2015
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate		Total
Revenues
Africa	$	10,969	$	—	$	—	$	—	$	—	$	—	$	10,969
Asia	27,168		7,483		5,309		—		—		—		39,960
Europe	20,008		15,071		—		—		—		—		35,079
North America	2,304		1,677		1,873		18,275		25,550		—		49,679
South America	881		—		—		—		—		—		881
Total revenues	$	61,330	$	24,231	$	7,182	$	18,275	$	25,550	$	—	$	136,568

Summary information with respect to the Company’s geographic sources of revenue, based on location of customer, is as follows:



	Year Ended December 31, 2013
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate		Total
Revenues
Africa	$	654	$	—	$	—	$	—	$	—	$	—	$	654
Asia	1,714		5,002		6,665		—		—		—		13,381
Europe	3,319		—		—		—		—		—		3,319
North America	958		262		956		—		—		—		2,176
Total revenues	$	6,645	$	5,264	$	7,621	$	—	$	—	$	—	$	19,530

Summary information with respect to the Company’s geographic sources of revenue, based on location of customer, is as follows:



	Year Ended December 31, 2014
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate		Total
Revenues
Africa	$	7,818	$	—	$	—	$	—	$	—	$	—	$	7,818
Asia	3,246		7,483		6,024		—		—		—		16,753
Europe	8,240		5,432		—		—		—		—		13,672
North America	1,561		1,715		2,372		3,977		9,969		—		19,594
South America	93		—		—		—		—		—		93
Total revenues	$	20,958	$	14,630	$	8,396	$	3,977	$	9,969	$	—	$	57,930

Reconciliation of Other Significant Reconciling Items from Segments to Consolidated

The following tables sets forth summarized balance sheet information and the geographic location of property, plant and equipment, net and leasing equipment, net as of December 31, 2015 and December 31, 2014:



	December 31, 2015
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate		Total
Total assets	$	443,532	$	214,811	$	86,237	$	486,522	$	34,411	$	384,128	$	1,649,641

Debt	—		69,540		46,099		146,011		9,407		—		271,057

Total liabilities	50,873		75,093		46,223		162,746		19,938		4,082		358,955

Non-controlling interests in equity of consolidated subsidiaries	899		7,692		—		113,514		1,714		584		124,403

Total equity	392,659		139,718		40,014		323,776		14,473		380,046		1,290,686

Total liabilities and equity	$	443,532	$	214,811	$	86,237	$	486,522	$	34,411	$	384,128	$	1,649,641



	December 31, 2014
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate		Total
Total assets	$	308,957	$	212,699	$	117,298	$	721,266	$	30,605	$	13,915	$	1,404,740

Debt	—		76,024		61,154		446,272		9,417		—		592,867

Total liabilities	50,282		81,903		61,434		470,710		19,499		7,415		691,243

Non-controlling interests in equity of consolidated subsidiaries	—		7,319		—		91,118		628		—		99,065

Total equity	258,675		130,796		55,864		250,556		11,106		6,500		713,497

Total liabilities and equity	$	308,957	$	212,699	$	117,298	$	721,266	$	30,605	$	13,915	$	1,404,740



	December 31, 2014
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate		Total
Property, plant and equipment and leasing equipment, net
Africa	$	47,945	$	—	$	—	$	—	$	—	$	—	$	47,945
Asia	119,232		40,637		—		—		—		—		159,869
Europe	105,762		137,981		—		—		—		—		243,743
North America	13,335		—		—		251,407		19,862		—		284,604
South America	599		—		—		—		—		—		599
Total property, plant and equipment and leasing equipment, net	$	286,873	$	178,618	$	—	$	251,407	$	19,862	$	—	$	736,760

Long-lived Assets by Geographic Areas



	December 31, 2014
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate		Total
Property, plant and equipment and leasing equipment, net
Africa	$	47,945	$	—	$	—	$	—	$	—	$	—	$	47,945
Asia	119,232		40,637		—		—		—		—		159,869
Europe	105,762		137,981		—		—		—		—		243,743
North America	13,335		—		—		251,407		19,862		—		284,604
South America	599		—		—		—		—		—		599
Total property, plant and equipment and leasing equipment, net	$	286,873	$	178,618	$	—	$	251,407	$	19,862	$	—	$	736,760



	December 31, 2015
	Equipment Leasing						Infrastructure
	Aviation Leasing		Offshore Energy		Shipping Containers		Jefferson Terminal		Railroad		Corporate		Total
Property, plant and equipment and leasing equipment, net
Africa	$	56,927	$	—	$	—	$	—	$	—	$	—	$	56,927
Asia	189,364		39,138		—		—		—		—		228,502
Europe	130,632		135,442		—		—		—		—		266,074
North America	37,950		—		—		317,766		24,692		—		380,408
South America	4,448		—		—		—		—		—		4,448
Total property, plant and equipment and leasing equipment, net	$	419,321	$	174,580	$	—	$	317,766	$	24,692	$	—	$	936,359