Annual report [Section 13 and 15(d), not S-K Item 405]

Business Segments and Customer Information

v3.25.0.1
Business Segments and Customer Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Business Segments and Customer Information Business Segments and Customer Information
Segment Information

The sale of the Federal and Defense segment allows us to focus on a long-term strategic growth strategy focused on higher margin and higher growth aftermarket parts distribution and MRO businesses. Following the sale of the Federal and Defense segment, management of our business operations is conducted under two reportable operating segments:

Aviation: Our Aviation segment provides aftermarket MRO and distribution services to commercial, business and general aviation, cargo, military and defense, and rotorcraft customers globally. Core services include parts distribution, MRO services including fuel controls, avionics, pneumatics, hydraulics, wheel and brake, and rotable exchange and supply chain services.

Fleet: 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, and the USPS. 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.

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 President and Chief Executive Officer, who is our Chief Operating Decision Maker ("CODM"), in deciding how to allocate resources and in assessing performance. Our CODM evaluates segment performance based on consolidated revenues and operating income and considers budget-to-actual, sequential period and prior period variances on a monthly basis when making decisions about allocating capital and personnel to the segments. Segment costs, depreciation and amortization, and allocated corporate costs are viewed as significant segment expenses as part of the CODM’s evaluation.

Net sales of our business segments exclude inter-segment sales as these activities are eliminated in consolidation. Corporate expenses are primarily selling, general and administrative expenses not allocated to segments. Corporate assets are primarily cash, property and equipment and investments held in separate trust.

Our segment information is as follows (in thousands):

Year Ended December 31, 2024
Aviation Fleet Corporate /
unallocated expenses		 Consolidated
Revenues $ 786,256  $ 293,876  $ —  $ 1,080,132 
Costs and operating expenses:
Segment costs (a)
640,895  266,689  36,831  944,415 
Depreciation and amortization 25,500  2,957  155  28,612 
Allocated corporate cost (b)
18,474  7,212  —  25,686 
Total costs and operating expenses 684,869  276,858  36,986  998,713 
Operating income (loss) (c)
$ 101,387  $ 17,018  $ (36,986) $ 81,419 
Capital Expenditures (d)
$ 19,030  $ 2,386  $ 215  $ 21,631 
Total Assets $ 1,409,426  $ 282,820  $ 42,374  $ 1,734,620 
Year Ended December 31, 2023
Aviation Fleet Corporate /
unallocated expenses		 Consolidated
Revenues $ 544,020  $ 316,468  $ —  $ 860,488 
Costs and operating expenses:
Segment costs (a)
443,909  272,084  14,682  730,675 
Depreciation and amortization 16,080  5,300  (253) 21,127 
Allocated corporate cost (b)
12,863  7,827  —  20,690 
Total costs and operating expenses 472,852  285,211  14,429  772,492 
Operating income (loss) (c)
$ 71,168  $ 31,257  $ (14,429) $ 87,996 
Capital Expenditures (d)
$ 16,467  $ 2,198  $ 269  $ 18,934 
Total Assets (e)
$ 950,143  $ 274,382  $ 125,813  $ 1,350,338 
For the Year Ended December 31, 2022
Aviation Fleet Corporate /
unallocated expenses		 Consolidated
Revenues $ 408,112  $ 261,336  $ —  $ 669,448 
Costs and operating expenses:
Segment costs (a)
345,614  221,137  7,654  574,405 
Depreciation and amortization 13,174  8,783  (931) 21,026 
Allocated corporate cost (b)
12,908  7,505  —  20,413 
Total costs and operating expenses 371,696  237,425  6,723  615,844 
Operating income (loss) (c)
$ 36,416  $ 23,911  $ (6,723) $ 53,604 
Capital Expenditures (d)
$ 5,961  $ 5,502  $ 861  $ 12,324 
(a) Segment costs consist of material, labor, overhead, and selling, general, and administrative costs not separately disclosed within this footnote.
(b) Primarily includes costs for information technology, human resources, accounting, and legal support services.
(c) Certain corporate costs previously allocated to the Federal and Defense business for segment reporting purposes did not qualify for classification within discontinued operations and have been reallocated to continuing operations.
(d) Amounts differ from consolidated statements of cash flows due to inclusion of capital expenditures for which payment has not yet been remitted.
(e) Corporate assets in 2023 include $93,002 of assets held-for-sale.

Customer Information

Our revenues are derived from the delivery of products and services performed for commercial and government customers. Revenues from the USPS, reported within our Fleet segment, represented 11%, 19%, and 23% of consolidated revenues for 2024, 2023 and 2022, respectively. Our customers also include various other commercial entities and government agencies. See Note (4) "Revenue Recognition" for revenue by customer.
We do not measure revenue or profit by product or service lines, either for internal management or external financial reporting purposes, because it would be impractical to do so. Products offered and services performed are determined by contract requirements and the types of products and services provided for one contract bear no relation to similar products and services provided on another contract. Products and services provided vary when new contracts begin, or current contracts expire. In many cases, more than one product or service is provided under a contract. Accordingly, cost and revenue tracking are designed to best serve contract requirements and segregating costs and revenues by product or service lines in situations for which it is not required would be difficult and costly to both us and our customers.
Geographical Information

Revenue by geography is based on the billing address of the customer. Our revenue by geographic area is as follows (in thousands):
  For the years ended December 31,
  2024 2023 2022
United States $ 785,599  $ 656,767  $ 557,615 
Other Countries (a)
294,533  203,721  111,833 
Total revenue $ 1,080,132  $ 860,488  $ 669,448 
(a) No individual country, other than disclosed above, exceeded 10% of our total revenue for any period presented.