Segment And Geographic Information

6 Months Ended

Jun. 30, 2020

Segment And Geographic Information [Abstract]

Segment And Geographic Information

(13) Segment and Geographic Information

The Company organizes itself by the nature of the services it provides which includes equipment leasing (consisting of container leasing and rail leasing) and logistics.

As disclosed in Note 2, the net assets of the Company’s logistics business have been reclassified as held for sale in the accompanying unaudited consolidated balance sheets and the operations of the logistics business have been reclassified as discontinued operations in the accompanying unaudited consolidated statements of operations. As a result, the Company will no longer report Logistics as a segment. The Company revised prior period information to conform to current period presentation.

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. There are no material 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 the segments based upon relative asset values or revenue.

The following tables show condensed segment information for the three and six months ended June 30, 2020 and 2019, reconciled to the Company’s income before income taxes as shown in its consolidated statements of operations for such periods (in thousands):

	Three Months Ended June 30, 2020
	Container Leasing		Rail Leasing		Total
Total revenue	$	69,443	$	6,282	$	75,725
Total operating expenses		36,757		4,401		41,158
Operating income		32,686		1,881		34,567
Net interest and other expenses		16,037		1,461		17,498
Income before income taxes	$	16,649	$	420	$	17,069
Purchase of rental equipment (1)	$	5,120	$	-	$	5,120

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	Three Months Ended June 30, 2019
	Container Leasing		Rail Leasing		Total
Total revenue	$	74,286	$	6,462	$	80,748
Total operating expenses		40,026		10,096		50,122
Operating income (loss)		34,260		(3,634)		30,626
Net interest and other expenses		20,144		3,184		23,328
Income (loss) before income taxes	$	14,116	$	(6,818)	$	7,298
Purchase of rental equipment (1)	$	59,352	$	31,031	$	90,383

	Six Months Ended June 30, 2020
	Container Leasing		Rail Leasing		Total
Total revenue	$	138,556	$	12,085	$	150,641
Total operating expenses		73,396		25,775		99,171
Operating income (loss)		65,160		(13,690)		51,470
Net interest and other expenses		34,557		3,566		38,123
Income (loss) before income taxes	$	30,603	$	(17,256)	$	13,347
Purchase of rental equipment (1)	$	32,620		-	$	32,620

	Six Months Ended June 30, 2019
	Container Leasing		Rail Leasing		Total
Total revenue	$	149,797	$	14,343	$	164,140
Total operating expenses		78,740		8,627		87,367
Operating income		71,057		5,716		76,773
Net interest and other expenses		40,091		7,129		47,220
Income (loss) before income taxes	$	30,966	$	(1,413)	$	29,553
Purchase of rental equipment (1)	$	167,442	$	64,153	$	231,595

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

The summary below presents total assets for the Company's segments as of the dates indicated (in thousands):

	June 30, ‎2020		December 31, 2019
Container leasing	$	2,465,139	$	2,565,828
Rail		261,874		293,459
Logistics (2)		18,920		42,478
Total assets	$	2,745,933	$	2,901,765

(2) Represents total assets related to discontinued operations, including assets held for sale of $13.1 million and $37.8 million as of June 30, 2020 and December 31, 2019, respectively.

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.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Switzerland	$	12,472	$	12,339	$	24,988	$	26,387
Singapore		10,098		10,316		19,948		20,350
Korea		9,899		10,684		19,138		20,554
France		7,730		8,881		15,360		17,814
United States		7,439		8,128		14,478		17,778
Other Europe		13,593		15,324		28,833		30,523
Other Asia		13,676		14,667		26,263		29,975
Other International		818		409		1,633		759
Total revenue	$	75,725	$	80,748	$	150,641	$	164,140