Operating Segments

6 Months Ended

Jun. 30, 2011

Operating Segments [Abstract]

Operating Segments

Note 3.  Operating Segments

Our four operating segments, Time Charter Contracts – U.S. Flag, Time Charter Contracts – International Flag,Contracts of Affreightment (“COA”), and Rail-Ferry Service, are identified primarily by the characteristics of the contracts and terms under which our vessels are operated.  Beginning with the second quarter 2010 Form 10-Q report, we split Time Charter Contracts into two different operating segments, Time Charter Contracts – U.S. Flag and Time Charter Contracts – International Flag. We recast all prior period data for the previous Time Charter Contracts Segment based on the new operating segments.  We report in the Other category the results of several of our subsidiaries that provide ship and cargo charter brokerage and agency services.  We manage each reportable segment separately, as each requires different resources depending on the nature of the contract or terms under which each vessel within the segment operates.

We allocate interest expense to the segments in proportion to the book values of the vessels owned within each segment.  We do not allocate to our segments administrative and general expenses, investment income, gain on sale of investment, equity in net income of unconsolidated entities, or income taxes.  Intersegment revenues are based on market prices and include revenues earned by our subsidiaries that provide specialized services to our operating companies.

The following table presents information about segment profit and loss for the three months ended June 30, 2011 and 2010:

			Time Charter
(All Amounts in Thousands)	Time Charter Contracts- U.S. Flag		Contracts- International Flag		COA			Rail-Ferry Service			Other			Total
2011
Revenues from External Customers	$	39,290	$	15,813	$	4,500		$	9,867		$	491		$	69,961
Intersegment Revenues (Eliminated)		-		-		-			-			(5,554	)		(5,554	)
Intersegment Expenses (Eliminated)		-		-		-			-			5,554			5,554
Voyage Expenses		29,952		8,294		4,601			8,807			160			51,814
Vessel Depreciation		2,495		2,699		-			899			2			6,095
Gross Voyage Profit (Loss)		6,843		4,820		(101	)		161			329			12,052
Interest Expense		678		1,337		-			193			122			2,330
Segment Profit (Loss)		6,165		3,483		(101	)		(32	)		207			9,722
2010
Revenues from External Customers	$	58,399	$	15,157	$	4,513		$	6,268		$	747		$	85,084
Intersegment Revenues (Eliminated)		-		-		-			-			(3,708	)		(3,708	)
Intersegment Expenses (Eliminated)		-		-		-			-			3,708			3,708
Voyage Expenses		41,471		9,357		4,205			6,162			318			61,513
Vessel Depreciation		2,530		994		-			1,457			3			4,984
Gross Voyage Profit (Loss)		14,398		4806		308			(1,351	)		426			18,587
Interest Expense		793		1,139		-			365			136			2,433
Segment Profit (Loss)		13,605		3,667		308			(1,716	)		290			16,154

The following table presents information about segment profit and loss for the six months ended June 30, 2011 and 2010:

			Time Charter
(All Amounts in Thousands)	Time Charter Contracts- U.S. Flag		Contracts- International Flag		COA			Rail-Ferry Service			Other			Total
2011
Revenues from External Customers	$	78,307	$	27,023	$	8,731		$	18,921		$	1,313		$	134,295
Intersegment Revenues (Eliminated)		-		-		-			-			(9,331	)		(9,331	)
Intersegment Expenses (Eliminated)		-		-		-			-			9,331			9,331
Voyage Expenses		59,951		15,179		8,912			16,438			324			100,804
Vessel Depreciation		5,004		4,689		-			1,771			5			11,469
Gross Voyage Profit (Loss)		13,352		7,155		(181	)		712			984			22,022
Interest Expense		1,353		2,638		-			386			243			4,620
Segment Profit (Loss)		11,999		4,517		(181	)		326			741			17,402
2010
Revenues from External Customers	$	109,855	$	26,961	$	8,472		$	11,404		$	1,306		$	157,998
Intersegment Revenues (Eliminated)		-		-		-			-			(7,441	)		(7,441	)
Intersegment Expenses (Eliminated)		-		-		-			-			7,441			7,441
Voyage Expenses		78,167		17,542		8,368			11,756			623			116,456
Vessel Depreciation		4,909		994		-			2,839			6			8,748
Gross Voyage Profit (Loss)		26,779		8,425		104			(3,191	)		677			32,794
Interest Expense		1,633		1,370		-			751			278			4,032
Segment Profit (Loss)		25,146		7,055		104			(3,942	)		399			28,762

The following table is a reconciliation of the totals reported for the operating segments to the applicable line items in the consolidated financial statements:

(All Amounts in Thousands)	Six Months Ended June 30,						Three Months Ended June 30,
Profit or Loss:	2011			2010			2011			2010
Total Profit for Reportable Segments	$	17,402		$	28,762		$	9,722		$	16,154
Unallocated Amounts:
Administrative and General Expenses		(11,284	)		(11,434	)		(5,455	)		(5,415	)
Gain (Loss) on Sale of Other Assets		-			75			-			(46	)
Ineffective Portion on Derivative Instrument		15						(106	)		-
Gain on Sale of Investment		114			16			114			16
Other Income from Vessel Financing		1,360			1,194			672			590
Investment Income		385			1,166			185			987
Foreign Exchange Loss		(411	)		(3,148	)		(1,900	)		(3,148	)
Gain on DBCH Acquisition		18,844						130			-
Income Before (Benefit) Provision for
Income Taxes and Equity in Net Income of Unconsolidated Entities	$	26,425		$	16,631		$	3,362		$	9,138