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Insurance Receivable and Impairment
9 Months Ended
Sep. 30, 2016
Receivables [Abstract]  
Insurance Receivable and Impairment

(3)Insurance Receivable and Impairment

In August 2016, Hanjin Shipping Co., Ltd. filed for court protection from its creditors. Based on prior experience, the Company believes that most of its containers will be recovered. The Company maintains insurance to cover the value of containers that are unlikely to be recovered from its customers, the cost to recover containers and up to 180 days of lost lease rental income. Accordingly, during the three months ended September 30, 2016, an impairment charge was recorded to write off containers with a book value of $3.2 million, which the Company does not expect to recover. An insurance receivable of $1.4 million was recorded for $1.2 million of estimated proceeds for irrecoverable containers and $0.2 million of recovery costs recorded as a reduction to storage, handling and other expenses. The impairment, net of estimated insurance proceeds of $2.0 million, was recorded in depreciation expense in the consolidated statements of income for the three and nine months ended September 30, 2016. In addition, bad debt expense of $2.5 million was recorded in the consolidated statements of income for the three and nine months ended September 30, 2016, to fully reserve for the customer’s outstanding accounts receivable.