| SEGMENT INFORMATION | SEGMENT INFORMATION Our reportable segments represent strategic business units comprised of investments in different types of transportation and infrastructure assets. We have three reportable segments which operate in the Equipment Leasing and Infrastructure businesses across several market sectors. Our reportable segments are (i) Aviation Leasing, (ii) Jefferson Terminal and (iii) Ports and Terminals. The Aviation Leasing segment consists of aircraft and aircraft engines held for lease and are typically held long-term. The Jefferson Terminal segment consists of a multi-modal crude oil and refined products terminal and other related assets. The Ports and Terminals segment consists of Repauno, which is a 1,630 acre deep-water port located along the Delaware River with an underground storage cavern and multiple industrial development opportunities, and an equity method investment in Long Ridge, which is a 1,660 acre multi-modal port located along the Ohio River with rail, dock, and multiple industrial development opportunities, including a power plant under construction. In December 2019, we completed the sale of substantially all of our railroad business, which was formerly reported as our Railroad segment. Under ASC 205-20, this disposition met the criteria to be reported as discontinued operations and the assets, liabilities and results of operations have been presented as discontinued operations for all periods presented. Corporate and Other primarily consists of debt, unallocated company level general and administrative expenses, and management fees. Additionally, Corporate and Other includes (i) offshore energy related assets, which consist of vessels and equipment that support offshore oil and gas drilling and production which are typically subject to long-term operating leases, (ii) an investment in an unconsolidated entity engaged in the acquisition and leasing of shipping containers (on both an operating lease and finance lease basis) and (iii) railroad assets retained after the December 2019 sale, which consists of equipment that support a railcar cleaning business. During 2019, we updated our segment performance measure from Adjusted Net Income to Adjusted EBITDA (see definition below) as this is the primary performance measure that our Chief Operating Decision Maker (“CODM”) utilizes to assess operational performance, as well as make resource and allocation decisions. In connection with the change in our performance measure, in accordance with ASC 280, we also assessed our reportable segments. We determined that our Offshore Energy and Shipping Containers segments no longer met the requirement as reportable segments. In addition, with the December 2019 sale of substantially all of our railroad business, the Railroad segment no longer met the requirement as a reportable segment. Accordingly, we have presented these operating segments, along with Corporate results, within Corporate and Other effective in 2019. All prior periods have been restated for historical comparison across segments. The accounting policies of the segments are the same as those described in the summary of significant accounting policies (Note 2); however, financial information presented by segment includes the impact of intercompany eliminations. We evaluate investment performance for each reportable segment primarily based on net income attributable to shareholders and Adjusted EBITDA. Adjusted EBITDA is defined as net income (loss) attributable to shareholders from continuing operations, adjusted (a) to exclude the impact of provision for (benefit from) 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, depreciation and amortization expense, and interest expense, (b) to include the impact of our pro-rata share of Adjusted EBITDA from unconsolidated entities and (c) to exclude the impact of equity in earnings (losses) of unconsolidated entities and the non-controlling share of Adjusted EBITDA. We believe that net income (loss) attributable to shareholders, as defined by GAAP, is the most appropriate earnings measurement with which to reconcile Adjusted EBITDA. Adjusted EBITDA should not be considered as an alternative to net income (loss) attributable to shareholders as determined in accordance with GAAP. The following tables set forth certain information for each reportable segment: I. For the Year Ended December 31, 2019 Year Ended December 31, 2019 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Revenues Equipment leasing revenues $ 336,675 $ — $ — $ 12,647 $ 349,322 Infrastructure revenues — 204,348 22,187 2,917 229,452 Total revenues 336,675 204,348 22,187 15,564 578,774 Expenses Operating expenses 14,132 231,506 24,854 17,544 288,036 General and administrative — — — 20,441 20,441 Acquisition and transaction expenses 518 — 5,008 12,097 17,623 Management fees and incentive allocation to affiliate — — — 36,059 36,059 Depreciation and amortization 128,990 22,873 9,849 7,311 169,023 Interest expense — 16,189 1,712 77,684 95,585 Total expenses 143,640 270,568 41,423 171,136 626,767 Other income (expense) Equity in losses of unconsolidated entities (1,829) (292) (192) (62) (2,375) Gain on sale of assets, net 81,954 4,636 116,660 — 203,250 Asset impairment — — (4,726) — (4,726) Interest income 104 118 289 20 531 Other income — 634 1,809 1,002 3,445 Total other income 80,229 5,096 113,840 960 200,125 Income (loss) from continuing operations before income taxes 273,264 (61,124) 94,604 (154,612) 152,132 Provision for income taxes 2,826 284 14,700 — 17,810 Net income (loss) from continuing operations 270,438 (61,408) 79,904 (154,612) 134,322 Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries — (17,356) (215) — (17,571) Dividends on preferred shares — — — 1,838 1,838 Net income (loss) attributable to shareholders from continuing operations $ 270,438 $ (44,052) $ 80,119 $ (156,450) $ 150,055 The following table sets forth a reconciliation of Adjusted EBITDA to net income attributable to shareholders from continuing operations: Year Ended December 31, 2019 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Adjusted EBITDA $ 432,934 $ (6,160) $ 114,760 $ (38,126) $ 503,408 Add: Non-controlling share of Adjusted EBITDA 9,859 Add: Equity in losses of unconsolidated entities (2,375) Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities 1,387 Less: Interest expense (95,585) Less: Depreciation and amortization expense (199,185) Less: Incentive allocations (21,231) Less: Asset impairment charges (4,726) Less: Changes in fair value of non-hedge derivative instruments (4,555) Less: Losses on the modification or extinguishment of debt and capital lease obligations — Less: Acquisition and transaction expenses (17,623) Less: Equity-based compensation expense (1,509) Less: Provision for income taxes (17,810) Net income attributable to shareholders from continuing operations $ 150,055 Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows: Year Ended December 31, 2019 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Revenues Africa $ 14,542 $ — $ — $ — $ 14,542 Asia 119,289 — — 12,647 131,936 Europe 157,942 — — — 157,942 North America 36,391 204,348 22,187 2,917 265,843 South America 8,511 — — — 8,511 Total revenues $ 336,675 $ 204,348 $ 22,187 $ 15,564 $ 578,774 II. For the Year Ended December 31, 2018 Year Ended December 31, 2018 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Revenues Equipment leasing revenues $ 244,270 $ — $ — $ 8,769 $ 253,039 Infrastructure revenues — 70,985 17,444 644 89,073 Total revenues 244,270 70,985 17,444 9,413 342,112 Expenses Operating expenses 9,149 94,622 18,312 14,487 136,570 General and administrative — — — 17,126 17,126 Acquisition and transaction expenses 315 — — 6,653 6,968 Management fees and incentive allocation to affiliate — — — 15,726 15,726 Depreciation and amortization 102,419 19,745 5,139 6,605 133,908 Interest expense — 15,513 649 40,683 56,845 Total expenses 111,883 129,880 24,100 101,280 367,143 Other income (expense) Equity in (losses) earnings of unconsolidated entities (743) (574) — 309 (1,008) Gain on sale of assets, net 3,911 — — — 3,911 Interest income 202 270 — 16 488 Other income — 3,983 — — 3,983 Total other income 3,370 3,679 — 325 7,374 Income (loss) from continuing operations before income taxes 135,757 (55,216) (6,656) (91,542) (17,657) Provision for (benefit from) income taxes 2,280 261 1 (93) 2,449 Net income (loss) from continuing operations 133,477 (55,477) (6,657) (91,449) (20,106) Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries (24) (21,801) (100) — (21,925) Dividends on preferred shares — — — — — Net income (loss) attributable to shareholders from continuing operations $ 133,501 $ (33,676) $ (6,557) $ (91,449) $ 1,819 The following table sets forth a reconciliation of Adjusted EBITDA to net income attributable to shareholders from continuing operations: Year Ended December 31, 2018 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Adjusted EBITDA $ 265,002 $ (11,645) $ (615) $ (36,870) $ 215,872 Add: Non-controlling share of Adjusted EBITDA 9,744 Add: Equity in losses of unconsolidated entities (1,008) Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities (359) Less: Interest expense (56,845) Less: Depreciation and amortization expense (160,567) Less: Incentive allocations (407) Less: Asset impairment charges — Less: Changes in fair value of non-hedge derivative instruments 5,523 Less: Losses on the modification or extinguishment of debt and capital lease obligations — Less: Acquisition and transaction expenses (6,968) Less: Equity-based compensation expense (717) Less: Provision for income taxes (2,449) Net income attributable to shareholders from continuing operations $ 1,819 Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows: Year Ended December 31, 2018 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Revenues Africa $ 10,053 $ — $ — $ — $ 10,053 Asia 78,374 — — 7,315 85,689 Europe 121,546 — — — 121,546 North America 30,701 70,985 17,444 2,098 121,228 South America 3,596 — — — 3,596 Total revenues $ 244,270 $ 70,985 $ 17,444 $ 9,413 $ 342,112 III. For the Year Ended December 31, 2017 Year Ended December 31, 2017 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Revenues Equipment leasing revenues $ 156,793 $ — $ — $ 13,207 $ 170,000 Infrastructure revenues — 10,229 4,823 — 15,052 Total revenues 156,793 10,229 4,823 13,207 185,052 Expenses Operating expenses 6,247 31,213 9,117 15,842 62,419 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 16,193 1,658 6,427 86,073 Interest expense — 13,568 1,088 23,142 37,798 Total expenses 68,483 60,974 11,863 82,578 223,898 Other income (expense) Equity in losses of unconsolidated entities (1,276) (321) — (4) (1,601) Gain on sale of assets, net 7,188 — — 11,405 18,593 Loss on extinguishment of debt — — — (2,456) (2,456) Interest income 297 376 — 15 688 Other income — 1,980 — 1,093 3,073 Total other income 6,209 2,035 — 10,053 18,297 Income (loss) from continuing operations before income taxes 94,519 (48,710) (7,040) (59,318) (20,549) Provision for (benefit from) income taxes 1,966 42 — (54) 1,954 Net income (loss) from continuing operations 92,553 (48,752) (7,040) (59,264) (22,503) Less: Net income (loss) from continuing operations attributable to non-controlling interests in consolidated subsidiaries 697 (22,991) (484) (526) (23,304) Dividends on preferred shares — — — — — Net income (loss) attributable to shareholders from continuing operations $ 91,856 $ (25,761) $ (6,556) $ (58,738) $ 801 The following table sets forth a reconciliation of Adjusted EBITDA to net income attributable to shareholders from continuing operations: Year Ended December 31, 2017 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Adjusted EBITDA $ 163,828 $ (8,413) $ (3,515) $ (18,277) $ 133,623 Add: Non-controlling share of Adjusted EBITDA 12,535 Add: Equity in losses of unconsolidated entities (1,601) Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities 243 Less: Interest expense (37,798) Less: Depreciation and amortization expense (94,380) Less: Incentive allocations (514) 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 expense (613) Less: Provision for income taxes (1,954) Net income attributable to shareholders from continuing operations $ 801 Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows: Year Ended December 31, 2017 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Revenues Africa $ 9,993 $ — $ — $ — $ 9,993 Asia 45,794 — — 6,074 51,868 Europe 84,023 — — 5,597 89,620 North America 16,278 10,229 4,823 1,536 32,866 South America 705 — — — 705 Total revenues $ 156,793 $ 10,229 $ 4,823 $ 13,207 $ 185,052 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: December 31, 2019 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Total assets $ 1,694,837 $ 781,422 $ 366,402 $ 394,261 $ 3,236,922 Debt, net — 233,077 25,000 1,162,851 1,420,928 Total liabilities 285,099 324,509 63,930 1,224,527 1,898,065 Non-controlling interests in equity of consolidated subsidiaries — 35,671 785 524 36,980 Total equity 1,409,738 456,913 302,472 (830,266) 1,338,857 Total liabilities and equity $ 1,694,837 $ 781,422 $ 366,402 $ 394,261 $ 3,236,922 December 31, 2019 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Property, plant and equipment and leasing equipment, net Africa $ 43,348 $ — $ — $ — $ 43,348 Asia 487,913 — — 37,548 525,461 Europe 647,029 — — — 647,029 North America 311,185 560,059 200,319 123,067 1,194,630 South America 28,700 — — — 28,700 Total property, plant and equipment and leasing equipment, net $ 1,518,175 $ 560,059 $ 200,319 $ 160,615 $ 2,439,168 December 31, 2018 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total (1) Total assets $ 1,367,074 $ 670,682 $ 277,160 $ 267,118 $ 2,582,034 Debt, net — 234,862 — 980,246 1,215,108 Total liabilities 234,449 288,256 16,615 1,010,213 1,549,533 Non-controlling interests in equity of consolidated subsidiaries — 52,058 544 523 53,125 Total equity 1,132,625 382,426 260,545 (743,095) 1,032,501 Total liabilities and equity $ 1,367,074 $ 670,682 $ 277,160 $ 267,118 $ 2,582,034 ______________________________________________________________________________________ (1) Excludes assets, liabilities and equity from discontinued operations. December 31, 2018 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Property, plant and equipment and leasing equipment, net Africa $ 47,353 $ — $ — $ — $ 47,353 Asia 383,648 — — 34,667 418,315 Europe 592,670 — — 121,950 714,620 North America 177,962 433,404 263,747 4,323 879,436 South America 34,505 — — — 34,505 Total property, plant and equipment and leasing equipment, net $ 1,236,138 $ 433,404 $ 263,747 $ 160,940 $ 2,094,229 |
