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SEGMENT INFORMATION
 12 Months Ended
Dec. 31, 2012
SEGMENT INFORMATION  
SEGMENT INFORMATION

3 - SEGMENT INFORMATION

 

The Company determines its reportable segments based on the information utilized by the chief operating decision maker to assess performance.  Based on this information, the Company has reportable 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 consolidated financial statements.  Information about the Company’s reportable segments for the years ended December 31, 2012, 2011 and 2010 are as follows:

 

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 years ended December 31, 2012, 2011 and 2010.

 

 

 

For the years ended December 31,

 

 

 

2012

 

2011

 

2010

 

Voyage Revenue from External Customers

 

 

 

 

 

 

 

GS&T

 

$

195,855

 

$

345,437

 

$

414,879

 

Baltic Trading

 

27,304

 

43,492

 

32,559

 

Total operating segments

 

223,159

 

388,929

 

447,438

 

Eliminating revenue

 

—

 

—

 

—

 

Total consolidated voyage revenue from external customers

 

$

223,159

 

$

388,929

 

$

447,438

 

 

The following table presents a reconciliation of total intersegment revenue, which eliminates upon consolidation, for the Company’s two operating segments for the years ended December 31, 2012, 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 years ended December 31,

 

 

 

2012

 

2011

 

2010

 

Intersegment revenue

 

 

 

 

 

 

 

GS&T

 

$

2,816

 

$

3,024

 

$

5,490

 

Baltic Trading

 

—

 

—

 

—

 

Total operating segments

 

2,816

 

3,024

 

5,490

 

Eliminating revenue

 

(2,816

)

(3,024

)

(5,490

)

Total consolidated intersegment revenue

 

$

—

 

$

—

 

$

—

 

 

The following table presents a reconciliation of total depreciation and amortization expense for the Company’s two operating segments to total consolidated depreciation and amortization expense for the years ended December 31, 2012, 2011 and 2010.  The eliminating depreciation and amortization expense noted in the following table consists of the elimination of intercompany transactions resulting from the depreciation expense associated with the 1% purchase fee due to GS&T from Baltic Trading pursuant to the Management Agreement.  The 1% purchase fee is capitalized as part of vessel assets by Baltic Trading and is depreciated over the remaining life of the vessel and therefore, the associated depreciation expense is eliminated upon consolidation.

 

 

 

For the years ended December 31,

 

 

 

2012

 

2011

 

2010

 

Depreciation and amortization

 

 

 

 

 

 

 

GS&T

 

$

124,405

 

$

121,590

 

$

108,381

 

Baltic Trading

 

14,814

 

14,769

 

7,359

 

Total operating segments

 

139,219

 

136,359

 

115,740

 

Eliminating depreciation and amortization

 

(156

)

(156

)

(77

)

Total consolidated depreciation and amortization

 

$

139,063

 

$

136,203

 

$

115,663

 

 

The following table presents a reconciliation of total interest expense for the Company’s two operating segments to total consolidated interest expense for the years ended December 31, 2012, 2011 and 2010.  There is no eliminating interest expense as the interest incurred by each operating segment is related to each operating segment’s own debt facilities.

 

 

 

For the years ended December 31,

 

 

 

2012

 

2011

 

2010

 

Interest expense

 

 

 

 

 

 

 

GS&T

 

$

83,306

 

$

82,300

 

$

70,495

 

Baltic Trading

 

4,252

 

4,422

 

2,155

 

Total operating segments

 

87,558

 

86,722

 

72,650

 

Eliminating interest expense

 

—

 

—

 

—

 

Total consolidated interest expense

 

$

87,558

 

$

86,722

 

$

72,650

 

 

The following table presents a reconciliation of total net (loss) income for the Company’s two operating segments to total consolidated net (loss) income for the years ended December 31, 2012, 2011 and 2010.  The eliminating net (loss) 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 years ended December 31,

 

 

 

2012

 

2011

 

2010

 

Net (loss) income

 

 

 

 

 

 

 

GS&T

 

$

(139,295

)

$

27,908

 

$

144,679

 

Baltic Trading

 

(17,270

)

(430

)

8,322

 

Total operating segments

 

(156,565

)

27,478

 

153,001

 

Eliminating net income

 

1,211

 

2,410

 

5,592

 

Total consolidated net (loss) income

 

$

(157,776

)

$

25,068

 

$

147,409

 

 

The following table presents a reconciliation of total assets for the Company’s two operating segments to total consolidated net assets as of December 31, 2012 and December 31, 2011. 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 December 31, 2012 and 2011.

 

 

 

December 31,
2012

 

December 31,
2011

 

Total assets

 

 

 

 

 

GS&T

 

$

2,482,486

 

$

2,737,988

 

Baltic Trading

 

364,370

 

384,955

 

Total operating segments

 

2,846,856

 

3,122,943

 

Eliminating assets

 

(3,485

)

(3,666

)

Total consolidated assets

 

$

2,843,371

 

$

3,119,277

 

 

The following table presents a reconciliation of total expenditures for vessel purchases, including vessel deposits, for the Company’s two operating segments to total consolidated expenditures for vessel purchases, including vessel deposits, for the years ended December 31, 2012, 2011 and 2010.  The eliminating expenditures for vessels noted in the following table consists primarily of the elimination of the 1% purchase fees due to GS&T from Baltic Trading pursuant to the Management Agreement which were paid by Baltic Trading to GS&T during the years ended December 31, 2011 and 2010.

 

 

 

For the years ended December 31,

 

 

 

2012

 

2011

 

2010

 

Expenditures for vessels

 

 

 

 

 

 

 

GS&T

 

$

1,155

 

$

128,836

 

$

597,908

 

Baltic Trading

 

—

 

2,570

 

389,758

 

Total operating segments

 

1,155

 

131,406

 

987,666

 

Eliminating expenditures for vessels

 

—

 

(1,078

)

(2,761

)

Total consolidated expenditures for vessels

 

$

1,155

 

$

130,328

 

$

984,905