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SEGMENT INFORMATION
9 Months Ended
Sep. 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 voyage revenue from external (third party) customers for the Company’s two operating segments to total consolidated voyage revenue from external customers for the Company for the three and nine months ended September 30, 2011 and 2010.

 

 

 

For the three months ended
September 30,

 

For the nine months ended
September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Voyage Revenue from External Customers

 

 

 

 

 

 

 

 

 

GS&T

 

$

82,586

 

$

107,151

 

$

262,259

 

$

300,179

 

Baltic Trading

 

10,898

 

10,407

 

30,355

 

17,397

 

Total operating segments

 

93,484

 

117,558

 

292,614

 

317,576

 

Eliminating revenue

 

—

 

—

 

—

 

—

 

Total consolidated voyage revenue from external customers

 

$

93,484

 

$

117,558

 

$

292,614

 

$

317,576

 

 

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 nine months ended September 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
September 30,

 

For the nine months ended
September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Intersegment revenue

 

 

 

 

 

 

 

 

 

GS&T

 

$

760

 

$

1,221

 

$

2,232

 

$

3,650

 

Baltic Trading

 

—

 

—

 

—

 

—

 

Total operating segments

 

760

 

1,221

 

2,232

 

3,650

 

Eliminating revenue

 

(760

)

(1,221

)

(2,232

)

(3,650

)

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 nine months ended September 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
September 30,

 

For the nine months ended
September 30,

 

 

 

2011

 

2010

 

2011

 

2010

 

Net income (loss)

 

 

 

 

 

 

 

 

 

GS&T

 

$

2,144

 

$

37,122

 

$

27,422

 

$

108,904

 

Baltic Trading

 

(195

)

2,535

 

(2,241

)

4,627

 

Total operating segments

 

1,949

 

39,657

 

25,181

 

113,531

 

Eliminating net income

 

(532

)

(1,552

)

(1,763

)

(3,668

)

Total consolidated net income

 

$

1,417

 

$

38,105

 

$

23,418

 

$

109,863

 

 

The following table presents a reconciliation of total assets for the Company’s two operating segments to total consolidated net assets as of September 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 September 30, 2011 and December 31, 2010.

 

 

 

September 30,
2011

 

December 31,
2010

 

Total assets

 

 

 

 

 

GS&T

 

$

2,797,874

 

$

2,792,056

 

Baltic Trading

 

385,416

 

396,154

 

Total operating segments

 

3,183,290

 

3,188,210

 

Eliminating assets

 

(3,917

)

(5,502

)

Total consolidated assets

 

$

3,179,373

 

$

3,182,708