| SEGMENT INFORMATION | SEGMENT INFORMATION The Company’s reportable segments represent strategic business units comprised of investments in different types of transportation and infrastructure assets. The Company has 6 reportable segments which operate in the Equipment Leasing and Infrastructure businesses across several market sectors. The Company’s reportable segments are (i) Aviation Leasing, (ii) Offshore Energy, (iii) Shipping Containers, (iv) Jefferson Terminal, (v) Railroad and (vi) Ports and Terminals. Aviation Leasing consists of aircraft and aircraft engines held for lease and are typically held long-term. Offshore Energy consists of vessels and equipment that support offshore oil and gas drilling and production which are typically subject to operating leases. Shipping Containers consists of an investment in an unconsolidated entity engaged in the leasing of shipping containers (on both an operating lease and finance lease basis). Jefferson Terminal consists of a multi-modal crude oil and refined products terminal and other related assets. Railroad consists of our CMQR railroad operations. Ports and Terminals consists of Repauno, a 1,630 acre deep-water port located along the Delaware River with an underground storage cavern and multiple industrial development opportunities, and Long Ridge, a 1,660 acre multi-modal port located along the Ohio River with rail, dock and multiple industrial development opportunities. During the year ended December 31, 2017, the Company created the aforementioned Ports and Terminals segment. This updated segment has been reflected in the results for the year ended December 31, 2017 and accordingly, the segment results for the years ended December 31, 2016 and 2015 have been reclassified to conform to the new presentation. Corporate consists primarily of unallocated Company level general and administrative expenses and management fees. The accounting policies of the segments are the same as those described in the summary of significant accounting policies; however, financial information presented by segment includes the impact of intercompany eliminations. The Company evaluates investment performance for each reportable segment primarily based on net income attributable to shareholders and Adjusted Net Income. Adjusted Net Income is defined as net income attributable to shareholders, adjusted (a) to exclude the impact of provision for income taxes, equity-based compensation expense, acquisition and transaction expenses, losses on the modification or extinguishment of debt and capital lease obligations, changes in fair value of non-hedge derivative instruments, asset impairment charges, incentive allocations, and equity in earnings of unconsolidated entities; (b) to include the impact of cash income tax payments, the Company’s pro-rata share of the Adjusted Net Income from unconsolidated entities (collectively “Adjusted Net Income”), and (c) to exclude the impact of the non-controlling share of Adjusted Net Income. The Company believes that net income attributable to shareholders, as defined by GAAP, is the most appropriate earnings measurement with which to reconcile Adjusted Net Income. Adjusted Net Income should not be considered as an alternative to net income attributable to shareholders as determined in accordance with GAAP. The following tables set forth certain information for each reportable segment of the Company: I. For the Year Ended December 31, 2017 Year ended December 31, 2017 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Revenues Equipment leasing revenues $ 156,793 $ 13,107 $ 100 $ — $ — $ — $ — $ 170,000 Infrastructure revenues — — — 10,229 32,607 4,823 — 47,659 Total revenues 156,793 13,107 100 10,229 32,607 4,823 — 217,659 Expenses Operating expenses 6,247 15,833 9 31,213 29,966 9,117 — 92,385 General and administrative — — — — — — 14,570 14,570 Acquisition and transaction expenses 441 — — — — — 6,865 7,306 Management fees and incentive allocation to affiliate — — — — — — 15,732 15,732 Depreciation and amortization 61,795 6,427 — 16,193 2,037 1,658 — 88,110 Interest expense — 3,670 — 13,568 1,029 1,088 19,472 38,827 Total expenses 68,483 25,930 9 60,974 33,032 11,863 56,639 256,930 Other income (expense) Equity in losses of unconsolidated entities (1,276 ) — (4 ) (321 ) — — — (1,601 ) Gain (loss) on sale of assets 7,188 11,405 — — (312 ) — — 18,281 Loss on extinguishment of debt — — — — — — (2,456 ) (2,456 ) Interest income 297 15 — 376 — — — 688 Other income — 1,093 — 1,980 — — — 3,073 Total other income (expense) 6,209 12,513 (4 ) 2,035 (312 ) — (2,456 ) 17,985 Income (loss) before income taxes 94,519 (310 ) 87 (48,710 ) (737 ) (7,040 ) (59,095 ) (21,286 ) Provision for (benefit from) income taxes 1,966 11 (65 ) 42 — — — 1,954 Net income (loss) 92,553 (321 ) 152 (48,752 ) (737 ) (7,040 ) (59,095 ) (23,240 ) Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries 697 (526 ) — (22,991 ) (70 ) (484 ) — (23,374 ) Net income (loss) attributable to shareholders $ 91,856 $ 205 $ 152 $ (25,761 ) $ (667 ) $ (6,556 ) $ (59,095 ) $ 134 The following table sets forth a reconciliation of Adjusted Net Income (Loss) to net loss attributable to shareholders: Year ended December 31, 2017 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Adjusted Net Income (Loss) $ 92,637 $ 216 $ 87 $ (27,016 ) $ 19 $ (6,257 ) $ (49,285 ) $ 10,401 Add: Non-controlling share of adjustments to Adjusted Net Income 558 Add: Equity in losses of unconsolidated entities (1,601 ) Add: Cash payments for income taxes 1,726 Less: Incentive allocations (514 ) Less: Pro-rata share of Adjusted Net Income from investments in unconsolidated entities 1,601 Less: Asset impairment charges — Less: Changes in fair value of non-hedge derivative instruments 1,022 Less: Losses on the modification or extinguishment of debt and capital lease obligations (2,456 ) Less: Acquisition and transaction expenses (7,306 ) Less: Equity-based compensation (1,343 ) Less: Provision for income taxes (1,954 ) Net loss attributable to shareholders $ 134 Summary information with respect to the Company’s geographic sources of revenue, based on location of customer, is as follows: Year ended December 31, 2017 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Revenues Africa $ 9,993 $ — $ — $ — $ — $ — $ — $ 9,993 Asia 45,794 5,974 100 — — — — 51,868 Europe 84,023 5,597 — — — — — 89,620 North America 16,278 1,536 — 10,229 32,607 4,823 — 65,473 South America 705 — — — — — — 705 Total revenues $ 156,793 $ 13,107 $ 100 $ 10,229 $ 32,607 $ 4,823 $ — $ 217,659 II. For the Year Ended December 31, 2016 Year Ended December 31, 2016 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Revenues Equipment leasing revenues $ 95,408 $ 5,328 $ 1,213 $ — $ — $ — $ — $ 101,949 Infrastructure revenues — — — 15,902 30,837 32 — 46,771 Total revenues 95,408 5,328 1,213 15,902 30,837 32 — 148,720 Expenses Operating expenses 4,609 11,014 43 21,886 27,975 628 14 66,169 General and administrative — — — — — — 12,314 12,314 Acquisition and transaction expenses 80 — — 400 — — 5,836 6,316 Management fees and incentive allocation to affiliate — — — — — — 16,742 16,742 Depreciation and amortization 36,369 6,411 — 15,500 1,926 4 — 60,210 Interest expense — 3,747 410 13,501 754 545 — 18,957 Total expenses 41,058 21,172 453 51,287 30,655 1,177 34,906 180,708 Other income (expense) Equity in losses of unconsolidated entities — — (5,974 ) (18 ) — — — (5,992 ) Gain on sale of assets 5,214 — 304 — 423 — — 5,941 Loss on extinguishment of debt — — — (1,579 ) — — — (1,579 ) Asset impairment — (7,450 ) — — — — — (7,450 ) Interest income (expense) 142 13 — (19 ) — — — 136 Other income — — — 602 — — — 602 Total other income (expense) 5,356 (7,437 ) (5,670 ) (1,014 ) 423 — — (8,342 ) Income (loss) before income taxes 59,706 (23,281 ) (4,910 ) (36,399 ) 605 (1,145 ) (34,906 ) (40,330 ) Provision (benefit) for income taxes 267 — (86 ) 74 — 13 — 268 Net income (loss) 59,439 (23,281 ) (4,824 ) (36,473 ) 605 (1,158 ) (34,906 ) (40,598 ) Less: Net income (loss) attributable to non-controlling interests in consolidated subsidiaries 435 (4,368 ) — (16,456 ) 23 (157 ) (11 ) (20,534 ) Net income (loss) attributable to shareholders $ 59,004 $ (18,913 ) $ (4,824 ) $ (20,017 ) $ 582 $ (1,001 ) $ (34,895 ) $ (20,064 ) The following table sets forth a reconciliation of Adjusted Net Income (Loss) to net loss attributable to shareholders: Year Ended December 31, 2016 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Adjusted Net Income (Loss) $ 58,768 $ (15,188 ) $ (1,838 ) $ (21,249 ) $ 941 $ (993 ) $ (29,073 ) $ (8,632 ) Add: Non-controlling share of adjustments to Adjusted Net Income 2,945 Add: Equity in losses of unconsolidated entities (5,992 ) Add: Cash payments for income taxes 654 Less: Incentive allocations — Less: Pro-rata share of Adjusted Net Income from investments in unconsolidated entities 2,905 Less: Asset impairment charges (7,450 ) Less: Changes in fair value of non-hedge derivative instruments (3 ) Less: Losses on the modification or extinguishment of debt and capital lease obligations (1,579 ) Less: Acquisition and transaction expenses (6,316 ) Less: Equity-based compensation income 3,672 Less: Provision for income taxes (268 ) Net loss attributable to shareholders $ (20,064 ) Summary information with respect to the Company’s geographic sources of revenue, based on location of customer, is as follows: Year Ended December 31, 2016 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Revenues Africa $ 12,344 $ — $ — $ — $ — $ — $ — $ 12,344 Asia 42,999 3,470 885 — — — — 47,354 Europe 30,508 248 — — — — — 30,756 North America 8,184 1,610 328 15,902 30,837 32 — 56,893 South America 1,373 — — — — — — 1,373 Total revenues $ 95,408 $ 5,328 $ 1,213 $ 15,902 $ 30,837 $ 32 $ — $ 148,720 III. For the Year Ended December 31, 2015 Year Ended December 31, 2015 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Revenues Equipment leasing revenues $ 61,330 $ 24,231 $ 7,182 $ — $ — $ — $ — $ 92,743 Infrastructure revenues — — — 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 expenses — — — — — — 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 assets 3,053 — — (199 ) 565 — — 3,419 Loss on extinguishment of debt — — — — — — — — Asset impairment — — — — — — — — Interest income 11 483 — 85 — — — 579 Other (expense) income — — (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 ) The following table sets forth a reconciliation of Adjusted Net Income (Loss) to net loss attributable to shareholders: Year Ended December 31, 2015 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals 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 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 ) 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 Ports and Terminals 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 IV. Balance Sheet and location of long-lived assets The following tables sets forth summarized balance sheet information and the geographic location of property, plant and equipment and leasing equipment, net as of December 31, 2017 and December 31, 2016 : December 31, 2017 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Total assets $ 952,543 $ 195,101 $ 4,429 $ 579,329 $ 51,989 $ 123,693 $ 48,722 $ 1,955,806 Debt, net — 53,590 — 184,942 22,513 — 442,219 703,264 Total liabilities 145,882 56,853 100 210,159 36,560 14,229 456,948 920,731 Non-controlling interests in equity of consolidated subsidiaries 3,037 — — 81,414 2,737 295 524 88,007 Total equity 806,661 138,248 4,329 369,170 15,429 109,464 (408,226 ) 1,035,075 Total liabilities and equity $ 952,543 $ 195,101 $ 4,429 $ 579,329 $ 51,989 $ 123,693 $ 48,722 $ 1,955,806 December 31, 2017 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Property, plant and equipment and leasing equipment, net Africa $ 36,648 $ — $ — $ — $ — $ — $ — $ 36,648 Asia 210,152 163,072 — — — — — 373,224 Europe 527,166 — — — — — — 527,166 North America 96,525 — — 371,687 40,512 118,317 — 627,041 South America — — — — — — — — Total property, plant and equipment and leasing equipment, net $ 870,491 $ 163,072 $ — $ 371,687 $ 40,512 $ 118,317 $ — $ 1,564,079 December 31, 2016 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Total assets $ 625,680 $ 220,544 $ 4,333 $ 534,638 $ 40,428 $ 63,331 $ 58,358 $ 1,547,312 Debt, net — 62,655 — 184,702 12,155 — — 259,512 Total liabilities 74,989 66,002 — 205,536 24,971 6,287 3,847 381,632 Non-controlling interests in equity of consolidated subsidiaries 1,334 3,325 — 104,087 2,114 483 525 111,868 Total equity 550,691 154,542 4,333 329,102 15,457 57,044 54,511 1,165,680 Total liabilities and equity $ 625,680 $ 220,544 $ 4,333 $ 534,638 $ 40,428 $ 63,331 $ 58,358 $ 1,547,312 December 31, 2016 Equipment Leasing Infrastructure Aviation Leasing Offshore Energy Shipping Containers Jefferson Terminal Railroad Ports and Terminals Corporate Total Property, plant and equipment and leasing equipment, net Africa $ 51,136 $ — $ — $ — $ — $ — $ — $ 51,136 Asia 212,635 169,499 — — — — — 382,134 Europe 225,934 — — — — — — 225,934 North America 56,456 — — 319,503 29,866 44,486 — 450,311 South America 8,121 — — — — — — 8,121 Total property, plant and equipment and leasing equipment, net $ 554,282 $ 169,499 $ — $ 319,503 $ 29,866 $ 44,486 $ — $ 1,117,636 |
