Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Segment Information

(13) Segment Information

The Company operates in one industry segment, container leasing, but has two reportable business segments: container leasing and container management. The container leasing segment derives its revenue from the ownership and leasing of containers to container shipping lines and freight forwarders. The container management segment derives its revenue from management fees earned from portfolios of containers and associated leases which are managed on behalf of container investors. It also derives revenue from the sale of containers, previously owned by the Company, to container investors who in turn enter into management agreements with the Company. There are no inter-segment revenues.

With the exception of amortization of intangible assets and marketing, general and administrative expenses (MG&A), operating expenses are directly attributable to the container leasing segment. Amortization of intangible assets relating to owned and third party contracts is charged directly to the container leasing segment and container management segment, respectively. The amortization of remaining intangible assets relating to the trademark is allocated to the segments based on their average twenty-foot equivalent units (TEUs) of containers during the year.

During the year ended December 31, 2010, the Company refined its methodology for allocating MG&A expense to each segment based on a study which analyzed the departmental composition of MG&A expense. The expense allocation was based on either revenue or TEUs in each segment, depending on the function of the department which incurred the expense, after directly assigning MG&A expense relating to Consent and CAIJ subsidiaries to the container leasing and container management segments, respectively. Management believes that this allocation method results in a more representative distribution of MG&A expense between the two segments.  The Company applied this allocation method to MG&A expenses for the three and six months ended June 30, 2011 and adjusted the MG&A expense included in each segment's operating expense previously reported for the same three and six month periods in 2010.  Prior to the adoption of this method, the Company had been allocating MG&A expense to each segment based solely on the ratio of owned and managed TEUs to its total fleet of TEUs after directly assigning MG&A expense relating to Consent to the container leasing segment.

The Company does not allocate interest income and income tax expense/benefit to its segments.

Total assets of the container management segment consist of managed accounts receivable, the net carrying value of the intangible asset relating to third party contracts and a portion of the intangible asset relating to trademarks (determined based on the percentage of average TEUs of managed containers to total average TEUs). The remaining balance of total assets is allocated to the container leasing business.

The following tables show condensed segment information for the Company's container leasing and container management segments for the three and six months ended June 30, 2011 and 2010, reconciled to the Company's net income before income taxes and non-controlling interest as shown in its consolidated statements of income for such periods (in thousands):

	Three Months Ended June 30, 2011
	Container Leasing		Container Management		Unallocated			Total
Total revenue	$	25,231	$	3,528	$	-		$	28,759
Operating expenses		9,487		2,352		-			11,839
Operating income		15,744		1,176		-			16,920
Net interest expense		3,529		-		(1	)		3,528
Net income before income taxes and non-controlling interest	$	12,215	$	1,176	$	1		$	13,392
Total assets	$	799,188	$	21,371	$	-		$	820,559

	Three Months Ended June 30, 2010
	Container Leasing		Container Management		Unallocated			Total
Total revenue	$	14,479	$	2,884	$	-		$	17,363
Operating expenses		8,279		1,566		-			9,845
Operating income		6,200		1,318		-			7,518
Net interest expense		963		-		(88	)		875
Net income before income taxes and non-controlling interest	$	5,237	$	1,318	$	88		$	6,643
Total assets	$	366,605	$	23,177	$	-		$	389,782

	Six Months Ended June 30, 2011
	Container Leasing		Container Management		Unallocated			Total
Total revenue	$	48,048	$	8,453	$	-		$	56,501
Operating expenses		16,722		4,343		-			21,065
Operating income		31,326		4,110		-			35,436
Net interest expense		6,503		-		(4	)		6,499
Net income before income taxes and non-controlling interest	$	24,823	$	4,110	$	4		$	28,937
Total assets	$	799,188	$	21,371	$	-		$	820,559

	Six Months Ended June 30, 2010
	Container Leasing		Container  Management		Unallocated			Total
Total revenue	$	27,225	$	5,331	$	-		$	32,556
Operating expenses		17,333		2,991		-			20,324
Operating income		9,892		2,340		-			12,232
Net interest expense		1,820		-		(120	)		1,700
Net income before income taxes and non-controlling interest	$	8,072	$	2,340	$	120		$	10,532
Total assets	$	366,605	$	23,177	$	-		$	389,782

Using an expense allocation methodology based solely on container fleet ownership, the Company had previously reported operating expenses for the container leasing segment of $6.4 million and $13.6 million, and pre-tax income of $7.1 million and $11.8 million for the three and six months ended June 30, 2010, respectively. The Company had previously reported operating expenses for the container management segment of $3.4 million and $6.7 million, and pre-tax losses of $0.5 million and $1.4 million for the three and six months ended June 30, 2010, respectively.

Geographic Data

The Company's container lessees use containers for their global trade utilizing many worldwide trade routes. The Company earns its revenue from international carriers when the containers are in use and carrying cargo around the world. Most of the Company's leasing related revenue is denominated in U.S. dollars. Since all of the Company's containers are used internationally and typically no container is domiciled in one particular place for a prolonged period of time, all of the Company's long-lived assets are considered to be international with no single country of use.