Segment And Geographic Information

3 Months Ended

Mar. 31, 2017

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.

CAI INTERNATIONAL, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

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 months ended March 31, 2017 and 2016, 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 March 31, 2017
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	52,954	$	8,053	$	20,499	$	81,506
Total operating expenses		37,284		5,129		21,142		63,555
Operating income		15,670		2,924		(643)		17,951
Total other expenses		9,414		2,571		1		11,986
Net income before income taxes and non-controlling interest	$	6,256	$	353	$	(644)	$	5,965
Goodwill	$	-	$	-	$	15,794	$	15,794
Total assets	$	1,643,211	$	385,958	$	39,141	$	2,068,310
Purchase of rental equipment (1)	$	37,494	$	10,622	$	-	$	48,116

	Three Months Ended March 31, 2016
	Container Leasing		Rail Leasing		Logistics		Total
Total revenue	$	51,545	$	7,257	$	8,164	$	66,966
Total operating expenses		36,287		3,794		8,429		48,510
Operating income		15,258		3,463		(265)		18,456
Total other expenses		8,770		1,402		-		10,172
Net income before income taxes and non-controlling interest	$	6,488	$	2,061	$	(265)	$	8,284
Goodwill	$	-	$	-	$	8,994	$	8,994
Total assets	$	1,710,858	$	265,122	$	18,822	$	1,994,802
Purchase of rental equipment (1)	$	20,218	$	25,626	$	-	$	45,844

(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 intermodal 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 $379.5 million as of March 31, 2017, 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
	March 31,
	2017		2016
United States	$	35,443	$	21,051
France		7,544		6,345
Switzerland		4,939		4,531
Japan		4,514		5,641
Korea		3,375		3,500
Other Asia		13,490		11,331
Other Europe		9,445		8,856
Other International		2,756		5,711
Total revenue	$	81,506	$	66,966