| 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. Additionally, in accordance with ASC 280, we assessed our reportable segments. We determined that our retained investment of the railroad business no longer met the requirement as a reportable segment. Accordingly, we have presented this operating segment, along with Corporate results, within Corporate and Other effective in 2019. All prior periods have been restated for historical comparison across segments. Corporate and Other primarily consists of debt, unallocated corporate 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 activities and are typically subject to long-term operating leases, (ii) an investment in an unconsolidated entity engaged in the leasing of shipping containers and (iii) railroad assets retained after the December 2019 sale, which consist of equipment that support a railcar cleaning business. Aviation Leasing Organizational Restructuring In early 2020, we completed an organizational restructuring of the Aviation Leasing segment. Previously, Aviation Leasing’s employees were employed by the Manager and compensation and related costs associated with these employees were reimbursed to the Manager, per the Management Agreement (see Note 16). These costs were reported within Corporate and Other. Effective in the first quarter of 2020, Aviation Leasing’s employees are employed by one of our subsidiaries. Compensation and related costs incurred by this subsidiary are reported within the Aviation Leasing segment. Prior periods have been restated for historical comparison. The following table presents our adjustments for the year ended December 31, 2019: As Previously Reported Adjustments As Reported Aviation Leasing Corporate and Other Aviation Leasing Corporate and Other Aviation Leasing Corporate and Other Operating expenses $ 14,132 $ 17,544 $ 3,536 $ — $ 17,668 $ 17,544 General and administrative — 20,441 — (3,536) — 16,905 Acquisition and transaction expenses 518 12,097 8,123 (8,123) 8,641 3,974 The following table presents our adjustments for the year ended December 31, 2018: As Previously Reported Adjustments As Reported Aviation Leasing Corporate and Other Aviation Leasing Corporate and Other Aviation Leasing Corporate and Other Operating expenses $ 9,149 $ 14,487 $ 1,836 $ — $ 10,985 $ 14,487 General and administrative — 17,126 — (1,836) — 15,290 Acquisition and transaction expenses 315 6,653 3,715 (3,715) 4,030 2,938 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. 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, 2020 Year Ended December 31, 2020 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Revenues Equipment leasing revenues $ 281,211 $ — $ — $ 16,723 $ 297,934 Infrastructure revenues — 60,283 3,855 4,424 68,562 Total revenues 281,211 60,283 3,855 21,147 366,496 Expenses Operating expenses 20,667 53,072 10,327 25,446 109,512 General and administrative — — — 18,159 18,159 Acquisition and transaction expenses 6,687 — 907 2,274 9,868 Management fees and incentive allocation to affiliate — — — 18,519 18,519 Depreciation and amortization 133,904 29,034 1,497 7,965 172,400 Asset impairment 33,978 — — — 33,978 Interest expense — 9,426 1,335 87,445 98,206 Total expenses 195,236 91,532 14,066 159,808 460,642 Other (expense) income Equity in (losses) earnings of unconsolidated entities (1,932) — (3,222) 115 (5,039) Loss on sale of assets, net (300) (8) — — (308) Loss on extinguishment of debt — (4,724) — (6,943) (11,667) Interest income 94 22 — 46 162 Other income — 70 — — 70 Total other (expense) income (2,138) (4,640) (3,222) (6,782) (16,782) Income (loss) from continuing operations before income taxes 83,837 (35,889) (13,433) (145,443) (110,928) (Benefit from) provision for income taxes (4,812) 278 (1,791) 420 (5,905) Net income (loss) from continuing operations 88,649 (36,167) (11,642) (145,863) (105,023) Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries — (16,483) (39) — (16,522) Less: Dividends on preferred shares — — — 17,869 17,869 Net income (loss) attributable to shareholders from continuing operations $ 88,649 $ (19,684) $ (11,603) $ (163,732) $ (106,370) The following table sets forth a reconciliation of Adjusted EBITDA to net loss attributable to shareholders from continuing operations: Year Ended December 31, 2020 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Adjusted EBITDA $ 288,752 $ 16,118 $ (2,600) $ (58,964) $ 243,306 Add: Non-controlling share of Adjusted EBITDA 9,637 Add: Equity in losses of unconsolidated entities (5,039) Less: Pro-rata share of Adjusted EBITDA from unconsolidated entities (1,208) Less: Interest expense (98,206) Less: Depreciation and amortization expense (202,746) Less: Incentive allocations — Less: Asset impairment charges (33,978) Less: Changes in fair value of non-hedge derivative instruments (181) Less: Losses on the modification or extinguishment of debt and capital lease obligations (11,667) Less: Acquisition and transaction expenses (9,868) Less: Equity-based compensation expense (2,325) Less: Benefit from income taxes 5,905 Net loss attributable to shareholders from continuing operations $ (106,370) Summary information with respect to our geographic sources of revenue, based on location of customer, is as follows: Year Ended December 31, 2020 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Revenues Africa $ 10,259 $ — $ — $ — $ 10,259 Asia 110,057 — — 16,637 126,694 Europe 124,670 — — — 124,670 North America 32,961 60,283 3,855 4,510 101,609 South America 3,264 — — — 3,264 Total revenues $ 281,211 $ 60,283 $ 3,855 $ 21,147 $ 366,496 II. 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 17,668 231,506 24,854 17,544 291,572 General and administrative — — — 16,905 16,905 Acquisition and transaction expenses 8,641 — 5,008 3,974 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 Asset impairment — — 4,726 — 4,726 Interest expense — 16,189 1,712 77,684 95,585 Total expenses 155,299 270,568 46,149 159,477 631,493 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 Interest income 104 118 289 20 531 Other income — 634 1,809 1,002 3,445 Total other income 80,229 5,096 118,566 960 204,851 Income (loss) from continuing operations before income taxes 261,605 (61,124) 94,604 (142,953) 152,132 Provision for income taxes 2,826 284 14,700 — 17,810 Net income (loss) from continuing operations 258,779 (61,408) 79,904 (142,953) 134,322 Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries — (17,356) (215) — (17,571) Less: Dividends on preferred shares — — — 1,838 1,838 Net income (loss) attributable to shareholders from continuing operations $ 258,779 $ (44,052) $ 80,119 $ (144,791) $ 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 $ 429,398 $ (6,160) $ 114,760 $ (34,590) $ 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 III. 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 10,985 94,622 18,312 14,487 138,406 General and administrative — — — 15,290 15,290 Acquisition and transaction expenses 4,030 — — 2,938 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 117,434 129,880 24,100 95,729 367,143 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 130,206 (55,216) (6,656) (85,991) (17,657) Provision for (benefit from) income taxes 2,280 261 1 (93) 2,449 Net income (loss) from continuing operations 127,926 (55,477) (6,657) (85,898) (20,106) Less: Net loss from continuing operations attributable to non-controlling interests in consolidated subsidiaries (24) (21,801) (100) — (21,925) Net income (loss) attributable to shareholders from continuing operations $ 127,950 $ (33,676) $ (6,557) $ (85,898) $ 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 $ 263,166 $ (11,645) $ (615) $ (35,034) $ 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 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, 2020 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Total assets $ 1,704,205 $ 989,928 $ 400,217 $ 293,627 $ 3,387,977 Debt, net — 253,473 25,000 1,626,289 1,904,762 Total liabilities 219,692 365,629 38,242 1,665,093 2,288,656 Non-controlling interests in equity of consolidated subsidiaries — 20,785 1,354 524 22,663 Total equity 1,484,513 624,299 361,975 (1,371,466) 1,099,321 Total liabilities and equity $ 1,704,205 $ 989,928 $ 400,217 $ 293,627 $ 3,387,977 December 31, 2020 Equipment Leasing Infrastructure Aviation Leasing Jefferson Terminal Ports and Terminals Corporate and Other Total Property, plant and equipment and leasing equipment, net Africa $ — $ — $ — $ — $ — Asia 445,566 — — 56,702 502,268 Europe 774,300 — — — 774,300 North America 208,190 702,393 269,680 117,782 1,298,045 South America 25,009 — — — 25,009 Total property, plant and equipment and leasing equipment, net $ 1,453,065 $ 702,393 $ 269,680 $ 174,484 $ 2,599,622 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 |
