Segment And Geographic Information

9 Months Ended

Sep. 30, 2015

Segment And Geographic Information [Abstract]

Segment And Geographic Information

(14)Segment and Geographic Information

The Company organizes itself by the nature of the services it provides which includes equipment leasing, equipment management and logistics. The equipment leasing segment derives its revenue from the ownership and leasing of equipment, the equipment management segment derives its revenue from fees earned for managing equipment portfolios on behalf of third party investors and the logistics segment derives its revenue from provision of logistics services.

The equipment leasing segment, which comprised 96% of the Company’s total revenue and 100% of its net income before income taxes and non-controlling interest for the nine months ended September 30, 2015, is disclosed below as a reportable segment. The equipment management and logistics segments have been combined and reflected below as ‘Other.’

The following tables show condensed segment information for the three and nine months ended September 30, 2015 and 2014, reconciled to the Company’s net income before income taxes and non-controlling interest as shown in its consolidated statements of income (in thousands):

	Three Months Ended September 30, 2015
	Equipment Leasing		Other		Total
Total revenue	$	59,798	$	6,319	$	66,117
Total operating expenses		36,502		6,361		42,863
Operating income		23,296		(42)		23,254
Net interest expense		8,967		-		8,967
Net income before income taxes and non-controlling interest	$	14,329	$	(42)	$	14,287
Total assets	$	1,978,216	$	13,802	$	1,992,018
	Three Months Ended September 30, 2014
	Equipment Leasing		Other		Total
Total revenue	$	57,642	$	1,561	$	59,203
Total operating expenses		31,350		674		32,024
Operating income		26,292		887		27,179
Net interest expense		9,264		-		9,264
Net income before income taxes and non-controlling interest	$	17,028	$	887	$	17,915
Total assets	$	1,784,305	$	8,670	$	1,792,975

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

	Nine Months Ended September 30, 2015
	Equipment Leasing		Other		Total
Total revenue	$	176,044	$	7,931	$	183,975
Total operating expenses		105,647		8,349		113,996
Operating income		70,397		(418)		69,979
Net interest expense		26,792		-		26,792
Net income before income taxes and non-controlling interest	$	43,605	$	(418)	$	43,187
	Nine Months Ended September 30, 2014
	Equipment Leasing		Other		Total
Total revenue	$	164,098	$	4,681	$	168,779
Total operating expenses		90,827		2,000		92,827
Operating income		73,271		2,681		75,952
Net interest expense		26,937		-		26,937
Net income before income taxes and non-controlling interest	$	46,334	$	2,681	$	49,015

Geographic Data

The Company earns its revenue primarily from international containers which are deployed by its customers in a wide variety of global trade routes. Virtually 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. As such, substantially all of the Company’s long-lived assets are considered to be international, with no single country of use.

The Company’s railcars, with a net book value of $176.6 million as of September 30, 2015, are used primarily to transport cargo within North America.

The following table represents the geographic allocation of revenue for the periods indicated based on customers’ primary domicile (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
United States	$	15,726	$	6,132	$	27,184	$	17,643
France		6,436		6,636		19,430		18,450
Japan		6,119		6,704		19,079		18,706
Korea		4,449		5,329		13,886		15,771
Switzerland		4,887		5,332		14,100		15,364
Other Asia		15,665		16,489		51,714		46,018
Other Europe		9,447		8,568		27,527		24,138
Other International		3,388		4,013		11,055		12,689
Total revenue	$	66,117	$	59,203	$	183,975	$	168,779