Operating Segment and Sales/Credit Concentrations

6 Months Ended

Jun. 30, 2011

Operating Segment and Sales/Credit Concentrations [Abstract]

Operating Segment and Sales/Credit Concentrations

Note 18 — Operating Segment and Sales/Credit Concentrations

ARI operates in two reportable segments: manufacturing operations and railcar services. Performance is evaluated based on revenue and operating profit. Intersegment sales and transfers are accounted for as if sales or transfers were to third parties. The information in the following tables is derived from the segments’ internal financial reports used for corporate management purposes:

For the Three Months Ended	Manufacturing			Railcar			Corporate &
June 30, 2011	Operations			Services			all other			Eliminations			Totals
	(in thousands)
Revenues from external customers	$	94,597		$	17,316		$	—		$	—		$	111,913
Intersegment revenues		276			48			—			(324	)		—
Cost of revenue — external customers		(86,100	)		(12,557	)		—			—			(98,657	)
Cost of intersegment revenue		(300	)		(45	)		—			345			—
Gross profit		8,473			4,762			—			21			13,256
Selling, administrative and other		(1,339	)		(498	)		(3,225	)		—			(5,062	)
Earnings (loss) from operations	$	7,134		$	4,264		$	(3,225	)	$	21		$	8,194

For the Three Months Ended	Manufacturing			Railcar			Corporate &
June 30, 2010	Operations			Services			all other			Eliminations			Totals
	(in thousands)
Revenues from external customers	$	43,223		$	17,942		$	—		$	—		$	61,165
Intersegment revenues		192			90			—			(282	)		—
Cost of revenue — external customers		(44,890	)		(13,705	)		—			—			(58,595	)
Cost of intersegment revenue		(134	)		(83	)		—			217			—
Gross profit (loss)		(1,609	)		4,244			—			(65	)		2,570
Selling, administrative and other		(1,304	)		(518	)		(3,784	)		—			(5,606	)
Earnings (loss) from operations	$	(2,913	)	$	3,726		$	(3,784	)	$	(65	)	$	(3,036	)

For the Six Months Ended	Manufacturing			Railcar			Corporate &
June 30, 2011	Operations			Services			all other			Eliminations			Totals
	(in thousands)
Revenues from external customers	$	163,293		$	33,463		$	—		$	—		$	196,756
Intersegment revenues		499			167			—			(666	)		—
Cost of revenue — external customers		(152,681	)		(25,875	)		—			—			(178,556	)
Cost of intersegment revenue		(446	)		(168	)		—			614			—
Gross profit (loss)		10,665			7,587			—			(52	)		18,200
Selling, administrative and other		(2,725	)		(974	)		(8,245	)		—			(11,944	)
Earnings (loss) from operations	$	7,940		$	6,613		$	(8,245	)	$	(52	)	$	6,256

For the Six Months Ended	Manufacturing			Railcar			Corporate &
June 30, 2010	Operations			Services			all other			Eliminations			Totals
	(in thousands)
Revenues from external customers	$	78,858		$	34,618		$	—		$	—		$	113,476
Intersegment revenues		384			217			—			(601	)		—
Cost of revenue — external customers		(82,277	)		(27,673	)		—			—			(109,950	)
Cost of intersegment revenue		(284	)		(194	)		—			478			—
Gross profit (loss)		(3,319	)		6,968			—			(123	)		3,526
Selling, administrative and other		(2,738	)		(1,084	)		(7,871	)		—			(11,693	)
Earnings (loss) from operations	$	(6,057	)	$	5,884		$	(7,871	)	$	(123	)	$	(8,167	)

	Manufacturing		Railcar		Corporate &
As of	Operations		Services		all other		Eliminations		Totals
	(in thousands)
June 30, 2011
Total assets	$	308,850	$	50,143	$	303,369	$	—	$	662,362
December 31, 2010
Total assets	$	281,779	$	49,133	$	323,455	$	—	$	654,367

Manufacturing operations

Manufacturing revenues from affiliates were zero and 54.9% of total consolidated revenues for the three months ended June 30, 2011 and 2010, respectively. Manufacturing revenues from affiliates were 0.6% and 40.6% of total consolidated revenues for the six months ended June 30, 2011 and 2010, respectively.

Manufacturing revenues from the most significant customer totaled 20.9% of total consolidated revenues for the three months ended June 30, 2011. Manufacturing revenues from the most significant customer, an affiliate, totaled 54.9% of total consolidated revenues for the three months ended June 30, 2010. Manufacturing revenues from the most significant customer totaled 16.3% of total consolidated revenues for the six months ended June 30, 2011. Manufacturing revenues from the most significant customer, an affiliate, totaled 40.6% of total consolidated revenues for the six months ended June 30, 2010.

Manufacturing revenues from the two most significant customers were 38.1% of total consolidated revenues for the three months ended June 30, 2011. Manufacturing revenues from the two most significant customers (including an affiliate) were 56.5% of total consolidated revenues for the three months ended June 30, 2010. Manufacturing revenues from the two most significant customers were 30.9% of total consolidated revenues for the six months ended June 30, 2011. Manufacturing revenues from the two most significant customers (including an affiliate) were 54.8% of total consolidated revenues for the six months ended June 30, 2010.

Manufacturing receivables from the most significant customer were 35.3% of total consolidated accounts receivable including due from related parties at June 30, 2011. Manufacturing receivables from the most significant customer were 12.0% of total consolidated accounts receivable including due from related parties at December 31, 2010. No other customer accounted for more than 10.0% of total consolidated accounts receivable as of June 30, 2011 and December 31, 2010.

Railcar services

Railcar services revenues from affiliates were 5.9% and 5.2% of total consolidated revenues for the three months ended June 30, 2011 and 2010, respectively. Railcar services revenues from affiliates were 6.2% and 5.3% of total consolidated revenues for the six months ended June 30, 2011 and 2010, respectively.

No single railcar services customer accounted for more than 10.0% of total consolidated revenues for the three and six months ended June 30, 2011 and 2010. No single railcar services customer accounted for more than 10.0% of total consolidated accounts receivable as of June 30, 2011 and December 31, 2010.