Annual report pursuant to Section 13 and 15(d)

Business Segments and Customer Information

v3.22.0.1
Business Segments and Customer Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]  
Business Segments and Customer Information Business Segments and Customer Information
Segment Information

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

Aviation
Our Aviation segment provides aftermarket repair and distribution services to commercial, business and general aviation, cargo, military and defense, and rotorcraft customers globally. Core services include parts distribution, engine accessory maintenance, MRO services, 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, 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
Our Federal and Defense segment provides aftermarket MRO and logistics and sustainment 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 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):
For the years ended December 31,
  2021 2020 2019
Revenues
Aviation $ 247,852  $ 165,070  $ 224,546 
Fleet 233,532  242,170  214,520 
Federal and Defense 269,469  254,419  313,561 
Total revenues $ 750,853  $ 661,659  $ 752,627 
Operating income (loss):      
Aviation $ (14,373) $ (35,513) $ 17,901 
Fleet 20,426  26,659  29,819 
Federal and Defense 19,897  26,309  18,144 
Corporate expenses (4,430) (3,532) (5,607)
Operating income $ 21,520  $ 13,923  $ 60,257 
Depreciation and amortization expense:      
Aviation $ 11,374  $ 10,874  $ 12,546 
Fleet 9,679  10,260  11,085 
Federal and Defense 4,547  3,001  3,296 
Total depreciation and amortization $ 25,600  $ 24,135  $ 26,927 
Capital expenditures:      
Aviation $ 7,468  $ 3,445  $ 8,396 
Fleet 1,669  675  1,076 
Federal and Defense 124  148  58 
Corporate 1,259  159  130 
Total capital expenditures $ 10,520  $ 4,427  $ 9,660 

  December 31,
  2021 2020
Total assets:
Aviation $ 580,156  $ 478,861 
Fleet 182,089  161,088 
Federal and Defense 92,571  66,808 
Corporate 63,742  73,324 
Total assets $ 918,558  $ 780,081 
Customer Information

Our revenues are derived from the delivery of products and services performed for commercial clients, DoD agencies or federal civilian agencies. The USPS and U.S. Navy are our largest customers. Our customers also include various other commercial entities and government agencies. Our revenue by customer is as follows (in thousands):
Years ended December 31,
Source of Revenues 2021 % 2020 % 2019 %
Commercial $ 322,318  43  $ 208,305  31  $ 242,518  32 
DoD 233,422  31  236,397  36  304,334  41 
Other government 195,113  26  216,957  33  205,775  27 
Total Revenues $ 750,853  100  $ 661,659  100  $ 752,627  100 

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 or contract task order. 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):
  Years ended December 31,
  2021 2020 2019
United States $ 668,892  $ 598,142  $ 659,451 
Other Countries(a)
81,961  63,517  93,176 
Total revenue $ 750,853  $ 661,659  $ 752,627 
(a) No individual country, other than disclosed above, exceeded 10% of our total revenue for any period presented.