Quarterly report pursuant to Section 13 or 15(d)

Business Segments and Customer Information

v3.21.1
Business Segments and Customer Information
 3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Business Segments and Customer Information Business Segments and Customer Information
Business Segments

Management of our business operations is conducted under three reportable operating segments:

Aviation – Distribution and MRO Services
Our Aviation segment provides aftermarket repair and distribution services to commercial, cargo, business and general aviation, military and defense, and rotorcraft customers globally. Core services include parts distribution, engine accessory maintenance, MRO services, rotable exchange and supply chain services.

Fleet – Distribution and Fleet Services
Our Fleet segment provides parts, inventory management, e-commerce fulfillment, logistics, supply chain support and other services to support the commercial aftermarket medium- and heavy-duty truck market, the United States Postal Service ("USPS"), and the DoD. Core services include vehicle parts distribution, sourcing, IT solutions, customized fleet logistics, warehousing, kitting, just-in-time supply chain management, alternative product sourcing, and engineering and technical support.

Federal and Defense – Logistics and Sustainment Services
Our Federal and Defense segment provides aftermarket MRO and logistics services to improve operational readiness and extend the life cycle of military vehicles, ships and aircraft for the DoD, federal agencies and international defense customers. Core services include base operations support; procurement; supply chain management; vehicle, maritime and aircraft sustainment services; IT services and energy consulting.
The operating segments reported below are our segments for which separate financial information is available and for which segment results are evaluated regularly by our Chief Executive Officer in deciding how to allocate resources and in assessing performance. We evaluate segment performance based on consolidated revenues and operating income. Net sales of our business segments exclude intersegment sales as these activities are eliminated in consolidation. Corporate expenses are primarily selling, general and administrative expenses not allocated to segments. Our segment information is as follows (in thousands):
  Three months ended March 31,
  2021 2020
Revenues:
Aviation $ 44,371  $ 58,080 
Fleet 54,747  53,204 
Federal and Defense 65,863  66,134 
Total revenues $ 164,981  $ 177,418 
Operating income (loss):    
Aviation $ (332) $ (1,880)
Fleet 5,741  6,906 
Federal and Defense 5,025  4,924 
Corporate/unallocated expenses (831) (216)
Operating income $ 9,603  $ 9,734 


Customer Information

The USPS, U.S. Army and Army Reserve, and U.S. Navy are our largest customers. Our customers also include various other government agencies and commercial entities. Our revenue by customer is as follows (in thousands):
  Three months ended March 31,
Customer 2021 % 2020 %
Commercial $ 59,101  36  $ 67,294  38 
DoD 45,888  28  64,134  36 
Other government 59,992  36  45,990  26 
Total $ 164,981  100  $ 177,418  100