Operating Segments

6 Months Ended

Jun. 30, 2012

Operating Segments [Abstract]

Operating Segments

Note 2.  Operating Segments

Our five operating segments, Time Charter Contracts - U.S. Flag, Time Charter Contracts - International Flag,Contracts of Affreightment ("COA"), Rail-Ferry Service and Other, are identified primarily by the characteristics of the contracts and terms under which our vessels are operated.  We report in the Other category the results of several of our subsidiaries that provide ship charter brokerage, ship management services and agency services.  Also included in the Other category are corporate related items, results of insignificant operations, and income and expense items not allocated to the other reportable segments. We manage each reportable segment separately, as each requires different resources depending on the nature of the contract or terms under which the vessels within the segment operate.

We allocate interest expense to the segments in proportion to the fixed assets (defined as the carrying value of vessels, property, and other equipment) within each segment.  We do not allocate to our segments administrative and general expenses, gain on Dry Bulk transaction, gain on sale/purchase of other assets, derivative (income) loss,  income taxes, gain on sale of investment, other income from vessel financing, investment income, foreign exchange loss (gain) and equity in net (loss) income of unconsolidated entities.  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, 2012 and 2011:

(Amounts in Thousands)	Time  Charter  Contracts- U.S. Flag			Time  Charter  Contracts-  International  Flag			COA			Rail-Ferry  Service			Other			Total
Three months ended June 30, 2012
Revenues from External Customers	$	34,488		$	11,931		$	4,207		$	9,396		$	298		$	60,320
Intersegment Revenues (Eliminated)		-			-			-			-			(5,250	)		(5,250	)
Intersegment Expenses (Eliminated)		-			-			-			-			5,250			5,250
Voyage Expenses (Income)		27,858			7,252			4,081			7,948			(113	)		47,026
Add back:
Operating Lease Expense		900			-			910			-			-			1,810
Direct Finance Lease Amortization		760			-			-			-			-			760
Gross Voyage Profit *		8,290			4,679			1,036			1,448			411			15,864
Gross Voyage Profit Percentage		24	%		39	%		25	%		15	%		138	%		26	%
Less:
Operating Lease Expense		900			-			910			-			-			1,810
Direct Finance Lease Amortization		760			-			-			-			-			760
Vessel Depreciation		2,310			2,702			-			701			10			5,723
Gross Profit *		4,320			1,977			126			747			401			7,571
Interest Expense		550			1,213			259			161			98			2,281
Segment Profit (Loss)		3,770			764			(133	)		586			303			5,290
Three months ended June 30, 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
Add Back:
Operating Lease Expense		1,060			2,195			898			-			-			4,153
Direct Finance Lease Amortization		662			718			-			-			-			1,380
Gross Voyage Profit *		11,060			10,432			797			1,060			331			23,680
Gross Voyage Profit Percentage		28	%		66	%		18	%		11	%		67	%		34	%
Less:
Operating Lease Expense		1,060			2,195			898			-			-			4,153
Direct Finance Lease Amortization		662			718			-			-			-			1,380
Vessel Depreciation		2,495			2,699			-			899			2			6,095
Gross  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

*Information used by Chief Decision Makers.

The following table presents information about segment profit and loss for the six months ended June 30, 2012 and 2011:

(Amounts in Thousands)	Time  Charter  Contracts- U.S. Flag			Time  Charter  Contracts- International Flag			COA			Rail-Ferry  Service			Other			Total
Six months ended June 30, 2012
Revenues from External Customers	$	73,506		$	25,234		$	7,600		$	18,597		$	587		$	125,524
Intersegment Revenues (Eliminated)		-			-			-			-			(10,311	)		(10,311	)
Intersegment Expenses (Eliminated)		-			-			-			-			10,311			10,311
Voyage Expenses (Income)		58,952			14,394			8,367			16,316			(177	)		97,852
Add back:
Operating Lease Expense		1,364			-			1,808			-			-			3,172
Direct Finance Lease Amortization		1,499			780			-			-			-			2,279
Gross Voyage Profit *		17,417			11,620			1,041			2,281			764			33,123
Gross Voyage Profit Percentage		24	%		46	%		14	%		12	%		130	%		26	%
Less:
Operating Lease Expense		1,364			-			1,808			-			-			3,172
Direct Finance Lease Amortization		1,499			780			-			-			-			2,279
Vessel Depreciation		4,876			5,792			-			1,399			13			12,080
Gross Profit (Loss) *		9,678			5,048			(767	)		882			751			15,592
Interest Expense		1,308			2,828			259			383			230			5,008
Segment Profit (Loss)		8,370			2,220			(1,026	)		499			521			10,584
Six Months ended June 30, 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
Add Back:
Operating Lease Expense		2,119			3,746			1,797			-			-			7,662
Direct Finance Lease Amortization		1,305			1,406			-			-			-			2,711
Gross Voyage Profit *		21,780			16,996			1,616			2,483			989			43,864
Gross Voyage Profit Percentage		28	%		63	%		19	%		13	%		75	%		33	%
Less:
Operating Lease Expense		2,119			3,746			1,797			-			-			7,662
Direct Finance Lease Amortization		1,305			1,406			-			-			-			2,711
Vessel Depreciation		5,004			4,689			-			1,771			5			11,469
Gross  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

*Information used by Chief Decision Makers.

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:	2012			2011			2012			2011
Total Profit for Reportable Segments	$	10,584		$	17,402		$	5,290		$	9,722
Unallocated Amounts:
Administrative and General Expenses		(10,228	)		(11,284	)		(4,720	)		(5,455	)
Gain on Sale/Purchase of Other Assets		4,466			-			667			-
Derivative Income (Loss)		32			15			(117	)		(106	)
Gain on Sale of Investment		66			114			24			114
Other Income from Vessel Financing		1,227			1,360			605			672
Investment Income		274			385			146			185
Foreign Exchange Gain (Loss)		1,914			(411	)		(1,734	)		(1,900	)
Gain on Dry Bulk Transaction		-			18,844			-			130
Income Before Provision for    Income Taxes and Equity in Net Income of Unconsolidated Entities	$	8,335		$	26,425		$	161		$	3,362