Insurance Receivable And Impairment

12 Months Ended

Dec. 31, 2017

Insurance Receivable And Impairment [Abstract]

Insurance Receivable and Impairment

(3)Insurance Receivable and Impairment

In August 2016, Hanjin Shipping Co., Ltd. (Hanjin) filed for court 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 December 31, 2017, the Company has recovered approximately 92% 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 and repair containers, and up to 180 days of lost lease rental income, subject to deductibles of $0.5 million and $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 irrecoverable 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.  During the year ended December 31, 2017, the Company recorded an additional insurance receivable of $7.6 million for $2.2 million of lost lease rental income, recognized as container lease revenue, and $1.5 million of repair costs and $3.9 million of recovery costs, recorded as a reduction to storage, handling and other expenses. The Company also received insurance proceeds of $9.5 million, which were recorded as a reduction to the insurance receivable. As of December 31, 2017, the insurance receivable related to this claim was $1.9 million.