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SEGMENT INFORMATION
 6 Months Ended
Jun. 30, 2011
SEGMENT INFORMATION  
SEGMENT INFORMATION

3 - SEGMENT INFORMATION

 

The Company determines its operating segments based on the information utilized by the chief operating decision maker to assess performance.  Based on this information, the Company has two operating segments, GS&T and Baltic Trading.  Both GS&T and Baltic Trading are engaged in the ocean transportation of drybulk cargoes worldwide through the ownership and operation of drybulk carrier vessels.  GS&T seeks to deploy its vessels on time charters, spot market-related time charters or in vessel pools trading in the spot market and Baltic Trading seeks to deploy its vessel charters in the spot market, which represents immediate chartering of a vessel, usually for single voyages, or employing vessels on spot market-related time charters.  Segment results are evaluated based on net income.  The accounting policies applied to the reportable segments are the same as those used in the preparation of the Company’s condensed consolidated financial statements.

 

The following table presents a reconciliation of total revenue from external (third party) customers for the Company’s two operating segments to total consolidated revenue from external customers for the Company for the three and six months ended June 30, 2011 and 2010.

 

 

 

For the three months ended
June 30,

 

For the six months ended
June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Revenue from External Customers

 

 

 

 

 

 

 

 

 

GS&T

 

$

88,597

 

$

98,346

 

$

179,672

 

$

193,027

 

Baltic Trading

 

9,914

 

6,991

 

19,458

 

6,991

 

Total operating segments

 

98,511

 

105,337

 

199,130

 

200,018

 

Eliminating revenue

 

—

 

—

 

—

 

—

 

Total consolidated revenue from external customers

 

$

98,511

 

$

105,337

 

$

199,130

 

$

200,018

 

 

The following table presents a reconciliation of total intersegment revenue, which eliminates upon consolidation, for the Company’s two operating segments for the three and six months ended June 30, 2011 and 2010.  The intersegment revenue noted in the following table represents revenue earned by GS&T pursuant to the management agreement entered into with Baltic Trading, which includes commercial service fees, technical service fees and sale and purchase fees, if any.

 

 

 

For the three months ended
June 30,

 

For the six months ended
June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Intersegment revenue

 

 

 

 

 

 

 

 

 

GS&T

 

$

743

 

$

2,429

 

$

1,472

 

$

2,429

 

Baltic Trading

 

—

 

—

 

—

 

—

 

Total operating segments

 

743

 

2,429

 

1,472

 

2,429

 

Eliminating revenue

 

(743

)

(2,429

)

(1,472

)

(2,429

)

Total consolidated intersegment revenue

 

$

—

 

$

—

 

$

—

 

$

—

 

 

The following table presents a reconciliation of total net income for the Company’s two operating segments to total consolidated net income for the three and six months ended June 30, 2011 and 2010.  The eliminating net income noted in the following table consists of the elimination of intercompany transactions between GS&T and Baltic Trading as well as dividends received by GS&T from Baltic Trading for its Class B shares of Baltic Trading.

 

 

 

For the three months ended
June 30,

 

For the six months ended
June 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Net income

 

 

 

 

 

 

 

 

 

GS&T

 

$

10,484

 

$

38,172

 

$

25,278

 

$

71,781

 

Baltic Trading

 

(353

)

2,602

 

(2,046

)

2,092

 

Total operating segments

 

10,131

 

40,774

 

23,232

 

73,873

 

Eliminating net income

 

(303

)

(2,116

)

(1,233

)

(2,116

)

Total consolidated net income

 

$

9,828

 

$

38,658

 

$

21,999

 

$

71,757

 

 

The following table presents a reconciliation of total assets for the Company’s two operating segments to total consolidated net assets as of June 30, 2011 and December 31, 2010.  The eliminating assets noted in the following table consist of the elimination of intercompany transactions resulting from the capitalization of fees paid to GS&T by Baltic Trading as vessel assets, including related accumulated depreciation, as well as the outstanding receivable balance due to GS&T from Baltic Trading as of June 30, 2011 and December 31, 2010.

 

 

 

June 30,
2011

 

December 31,
2010

 

Total assets

 

 

 

 

 

GS&T

 

$

2,803,943

 

$

2,792,056

 

Baltic Trading

 

387,918

 

396,154

 

Total operating segments

 

3,191,861

 

3,188,210

 

Eliminating assets

 

(3,941

)

(5,502

)

Total consolidated assets

 

$

3,187,920

 

$

3,182,708