Operating Segments

9 Months Ended

Sep. 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. As a result of this change, 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, foreign exchange loss, gain on Dry Bulk transaction, derivative loss 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 September 30, 2011 and 2010:

(All Amounts in Thousands)	Time Charter Contracts- U.S. Flag		Time Charter Contracts- International Flag		COA		Rail-Ferry Service			Other			Total
2011
Revenues from External Customers	$	38,069	$	14,609	$	4,766	$	9,121		$	522		$	67,087
Intersegment Revenues (Eliminated)		-		-		-		-			(4,664	)		(4,664	)
Intersegment Expenses (Eliminated)		-		-		-		-			4,664			4,664
Voyage Expenses		27,233		7,173		4,685		7,685			135			46,911
Vessel Depreciation		2,707		3,151		-		915			2			6,775
Gross Voyage Profit		8,129		4,285		81		521			385			13,401
Interest Expense		913		1,688		-		155			94			2,850
Segment Profit		7,216		2,597		81		366			291			10,551
2010
Revenues from External Customers	$	49,250	$	10,716	$	4,200	$	9,668		$	566		$	74,400
Intersegment Revenues (Eliminated)		-		-		-		-			(6,458	)		(6,458	)
Intersegment Expenses (Eliminated)		-		-		-		-			6,458			6,458
Voyage Expenses		32,835		6,704		4,127		6,035			224			49,925
Vessel Depreciation		2,458		990		-		1,472			3			4,923
Impairment Loss		-		-		-		25,430			-			25,430
Gross Voyage Profit (Loss)		13,957		3,022		73		(23,269	)		339			(5,878	)
Interest Expense		700		602		-		328			115			1,745
Segment Profit (Loss)		13,257		2,420		73		(23,597	)		224			(7,623	)

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

(All Amounts in Thousands)	Time Charter Contracts- U.S. Flag		Time Charter Contracts-International Flag		COA			Rail-Ferry Service			Other			Total
2011
Revenues from External Customers	$	116,381	$	41,777	$	13,497		$	27,894		$	1,833		$	201,382
Intersegment Revenues (Eliminated)		-		-		-			-			(13,995	)		(13,995	)
Intersegment Expenses (Eliminated)		-		-		-			-			13,995			13,995
Voyage Expenses		87,190		22,516		13,597			23,973			439			147,715
Vessel Depreciation		7,712		7,837		-			2,687			8			18,244
Gross Voyage Profit (Loss)		21,479		11,424		(100	)		1,234			1,386			35,423
Interest Expense		2,267		4,326		-			541			336			7,470
Segment Profit (Loss)		19,212		7,098		(100	)		693			1,050			27,953
2010
Revenues from External Customers	$	159,093	$	37,744	$	12,672		$	21,017		$	1,872		$	232,398
Intersegment Revenues (Eliminated)		-		-		-			-			(13,899	)		(13,899	)
Intersegment Expenses (Eliminated)		-		-		-			-			13,899			13,899
Voyage Expenses		111,003		24,245		12,495			17,801			837			166,381
Vessel Depreciation		7,369		1,984		-			4,310			8			13,671
Impairment Loss		-		-		-			25,430			-			25,430
Gross Voyage Profit (Loss)		40,721		11,515		177			(26,524	)		1,027			26,916
Interest Expense		2,241		1,895		-			1,036			378			5,549
Segment Profit (Loss)		38,480		9,620		177			(27,560	)		649			21,367

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)	Nine Months Ended September 30,						Three Months Ended September 30,
Profit or Loss:	2011			2010			2011			2010
Total Profit (Loss) for Reportable Segments	$	27,953		$	21,367		$	10,551		$	(7,623	)
Unallocated Amounts:
Administrative and General Expenses		(16,053	)		(16,278	)		(4,769	)		(4,844	)
Gain (Loss) on Sale of Other Assets		-			46			-			(29	)
Derivative Loss		(109	)		(400	)		(124	)		(172	)
Gain on Sale of Investment		181			16			67			-
Other Income from Vessel Financing		2,014			1,771			654			577
Investment Income		522			1,469			137			303
Foreign Exchange Loss		(3,075	)		(6,544	)		(2,664	)		(3,396	)
Gain on Dry Bulk Acquisition		18,844			-			-			-
Income Before Provision (Benefit) for Net Income (Loss)
Taxes and Equity in Net Income of Unconsolidated Entities	$	30,277		$	1,447		$	3,852		$	(15,184	)