Segment and Geographic Information

9 Months Ended

Sep. 30, 2011

Segment and Geographic Information [Abstract]

Segment and Geographic Information

(14) Segment and Geographic 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 (MG&A) expenses, 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.

MG&A expenses are allocated to each segment 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 expenses relating to Consent and CAIJ subsidiaries to the container leasing and container management segments, respectively.

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 nine months ended September 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 September 30, 2011
	Container Leasing		Container Management		Unallocated			Total
Total revenue	$	29,215	$	3,747	$	-		$	32,962
Operating expenses		8,999		2,275		-			11,274
Operating income		20,216		1,472		-			21,688
Net interest expense		4,300		-		(2	)		4,298
Net income before income taxes and non-controlling interest	$	15,916	$	1,472	$	2		$	17,390
Total assets	$	879,443	$	21,206	$	-		$	900,649

	Three Months Ended September 30, 2010
	Container Leasing		Container Management		Unallocated			Total
Total revenue	$	17,875	$	2,244	$	-		$	20,119
Operating expenses		8,565		1,422		-			9,987
Operating income		9,310		822		-			10,132
Net interest expense		1,442		-		(1	)		1,441
Net income before income taxes and non-controlling interest	$	7,868	$	822	$	1		$	8,691
Total assets	$	481,503	$	21,659	$	-		$	503,162

	Nine Months Ended September 30, 2011
	Container Leasing		Container Management		Unallocated			Total
Total revenue	$	77,263	$	12,200	$	-		$	89,463
Operating expenses		25,722		6,617		-			32,339
Operating income		51,541		5,583		-			57,124
Net interest expense		10,803		-		(6	)		10,797
Net income before income taxes and non-controlling interest	$	40,738	$	5,583	$	6		$	46,327

	Nine Months Ended September 30, 2010
	Container Leasing		Container  Management		Unallocated			Total
Total revenue	$	45,100	$	7,575	$	-		$	52,675
Operating expenses		25,897		4,414		-			30,311
Operating income		19,203		3,161		-			22,364
Net interest expense		3,262		-		(121	)		3,141
Net income before income taxes and non-controlling interest	$	15,941	$	3,161	$	121		$	19,223

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.