Quarterly report pursuant to Section 13 or 15(d)

Business Segments

v3.23.2
Business Segments
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Business Segments Business Segments
The sale of the Federal and Defense segment is intended to allow us to advance our focus on long-term strategic growth areas. Following the completion of the sale transaction, management of our business operations is conducted under two 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, and the United States Postal Service ("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.

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. Our segment information is as follows (in thousands):

  Three months ended June 30, Six months ended June 30,
  2023 2022 2023 2022
Revenues:
Aviation $ 124,729  $ 105,019  $ 237,964  $ 198,309 
Fleet 80,494  64,742  155,846  131,772 
Total revenues $ 205,223  $ 169,761  $ 393,810  $ 330,081 
Operating income (loss):        
Aviation $ 15,783  $ 6,450  $ 31,447  $ 14,072 
Fleet 7,854  5,366  13,753  11,747 
Corporate/unallocated expenses(a)
(3,000) (1,281) (7,785) (3,267)
Operating income $ 20,637  $ 10,535  $ 37,415  $ 22,552 
(a) 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.