Segment And Geographic Information

9 Months Ended

Sep. 30, 2016

Segment And Geographic Information [Abstract]

Segment And Geographic Information

(15)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 container leasing segment is aggregated with equipment management and derives its revenue from the ownership and leasing of containers and fees earned for managing container portfolios on behalf of third party investors. The rail leasing segment derives its revenue from the ownership and leasing of railcars. The logistics segment derives its revenue from the provision of logistics services. There are no inter-segment revenues.

With the exception of administrative expenses, operating expenses are directly attributable to each segment. Administrative expenses that are not directly attributable to a segment are allocated to container or rail leasing based on the net book value of equipment in each segment.

The following tables show condensed segment information for the three and nine months ended September 30, 2016 and 2015, 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, 2016
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	49,661	$	7,614	$	21,197	$	78,472
Total operating expenses		45,184		4,367		21,559		71,110
Operating income (loss)		4,477		3,247		(362)		7,362
Total other expenses		9,123		1,827		1		10,951
Net (loss) income before income taxes and
non-controlling interest	$	(4,646)	$	1,420	$	(363)	$	(3,589)
Goodwill	$	-	$	-	$	15,579	$	15,579
Total assets	$	1,643,929	$	343,214	$	40,059	$	2,027,202
Purchase of rental equipment (1)	$	19,730	$	20,613	$	-	$	40,343

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

	Three Months Ended September 30, 2015
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	55,609	$	5,102	$	5,406	$	66,117
Total operating expenses		35,554		1,589		5,718		42,861
Operating income (loss)		20,055		3,513		(312)		23,256
Total other expenses		8,114		855		-		8,969
Net income (loss) before income taxes and
non-controlling interest	$	11,941	$	2,658	$	(312)	$	14,287
Goodwill	$	-	$	-	$	2,905	$	2,905
Total assets	$	1,788,760	$	180,322	$	7,510	$	1,976,592
Purchase of rental equipment (1)	$	48,575	$	19,135	$	-	$	67,710

	Nine Months Ended September 30, 2016
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	152,875	$	22,462	$	41,743	$	217,080
Total operating expenses		121,519		12,363		42,522		176,404
Operating income (loss)		31,356		10,099		(779)		40,676
Total other expenses		27,072		4,738		1		31,811
Net income (loss) before income taxes and
non-controlling interest	$	4,284	$	5,361	$	(780)	$	8,865
Purchase of rental equipment (1)	$	68,183	$	102,399	$	-	$	170,582

	Nine Months Ended September 30, 2015
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	166,731	$	11,770	$	5,474	$	183,975
Total operating expenses		101,556		6,040		6,339		113,935
Operating income (loss)		65,175		5,730		(865)		70,040
Total other expenses		24,817		2,030		6		26,853
Net income (loss) before income taxes and
non-controlling interest	$	40,358	$	3,700	$	(871)	$	43,187
Purchase of rental equipment (1)	$	203,378	$	101,210	$	-	$	304,588

(1)  Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated.

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 $336.3 million as of September 30, 2016, are used primarily to transport cargo within North America.

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
United States	$	35,290	$	15,726	$	82,444	$	27,184
France		6,389		6,436		19,417		19,430
Japan		4,809		6,119		15,250		19,079
Switzerland		4,382		4,887		13,536		14,100
Korea		3,235		4,449		10,102		13,886
Other Asia		12,663		15,665		40,225		51,714
Other Europe		8,812		9,447		26,915		27,527
Other International		2,892		3,388		9,191		11,055
Total revenue	$	78,472	$	66,117	$	217,080	$	183,975