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Insurance Receivable And Impairment
3 Months Ended
Mar. 31, 2017
Insurance Receivable And Impairment [Abstract]  
Insurance Receivable and Impairment

(3Insurance Receivable and Impairment

In August 2016, Hanjin Shipping Co., Ltd. (Hanjin) filed for bankruptcy protection from its creditors. Based on the recovery of Hanjin containers to date and prior experience, the Company believes that most of its containers will be recovered. As of March 31, 2017, the Company has recovered approximately 84% of the containers that were on lease to Hanjin. 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, subject to a deductible of $2.0 million.

During the year ended December 31, 2016, the Company recorded an impairment of $3.2 million representing the book value of containers the Company estimated would not be recovered from Hanjin. As of December 31, 2016, an insurance receivable of $3.8 million was recorded for $1.2 million of estimated unrecoverable containers in excess of the insurance deductible, which was recorded in depreciation expense, and $2.6 million of recovery costs, which was recorded as a reduction to storage, handling and other expenses for the year ended December 31, 2016. An additional insurance receivable of $4.1 million was recorded for $2.2 million of lost lease rental income, recognized as container lease income and $1.9 million of recovery costs, recorded as a reduction to storage, handling and other expenses, during the three months ended March 31, 2017. As of March 31, 2017, the insurance receivable related to this customer was $7.9 million.