Navios Maritime Holdings Inc. - 20-F filing on 2018-04-13

Segment Information

12 Months Ended

Dec. 31, 2017

NOTE 18: SEGMENT INFORMATION

The Company currently has two reportable segments from which it derives its revenues: Dry Bulk Vessel Operations and Logistics Business. The reportable segments reflect the internal organization of the Company and are strategic businesses that offer different products and services. The Dry Bulk Vessel Operations consists of the transportation and handling of bulk cargoes through the ownership, operation, and trading of vessels, freight and FFAs. The Logistics Business consists of operating ports and transfer station terminals, handling of vessels, barges and pushboats as well as upriver transport facilities in the Hidrovia region.

The Company measures segment performance based on net income/ (loss) attributable to Navios Holdings common stockholders. Inter-segment sales and transfers are not significant and have been eliminated and are not included in the following tables. Summarized financial information concerning each of the Company’s reportable segments is as follows:


	Dry Bulk Vessel Operations for the Year Ended December 31, 2017		Logistics Business for the Year Ended December 31, 2017		Total for the Year Ended December 31, 2017
Revenue	$	250,433	$	212,616	$	463,049
Administrative fee revenue from affiliates		23,667		—		23,667
Interest income		6,593		238		6,831
Interest expense and finance cost		(93,264)		(28,347)		(121,611)
Depreciation and amortization		(77,245)		(26,867)		(104,112)
Equity/ (Loss) in net earnings of affiliated companies		4,399		—		4,399
Net (loss)/ income attributable to Navios Holdings common stockholders		(167,892)		1,982		(165,910)
Total assets		1,947,777		682,204		2,629,981
Goodwill		56,240		104,096		160,336
Capital expenditures		(347)		(46,521)		(46,868)
Investment in affiliates		183,160		—		183,160
Cash and cash equivalents		47,744		79,888		127,632
Restricted cash		6,558		—		6,558
Long-term debt, net (including current and noncurrent portion)	$	1,149,742	$	532,746	$	1,682,488


	Dry Bulk Vessel Operations for the Year Ended December 31, 2016		Logistics Business for the Year Ended December 31, 2016		Total for the Year Ended December 31, 2016
Revenue	$	199,446	$	220,336	$	419,782
Administrative fee revenue from affiliates		21,799		—		21,799
Interest income		4,132		815		4,947
Interest expense and finance cost		(89,399)		(24,240)		(113,639)
Depreciation and amortization		(87,197)		(26,628)		(113,825)
Equity/ (Loss) in net earnings of affiliated companies		(202,779)		—		(202,779)
Net (loss)/ income attributable to Navios Holdings common stockholders		(310,306)		6,483		(303,823)
Total assets		2,083,526		669,369		2,752,895
Goodwill		56,240		104,096		160,336
Capital expenditures		(60,420)		(91,173)		(151,593)
Investment in affiliates		160,071		—		160,071
Cash and cash equivalents		70,810		65,182		135,992
Restricted cash		2,486		2,900		5,386
Long-term debt, net (including current and noncurrent portion)	$	1,223,146	$	427,949	$	1,651,095


	Dry Bulk Vessel Operations for the Year Ended December 31, 2015		Logistics Business for the Year Ended December 31, 2015		Total for the Year Ended December 31, 2015
Revenue	$	229,772	$	251,048	$	480,820
Administrative fee revenue from affiliates		16,177		—		16,177
Interest income		1,801		569		2,370
Interest expense and finance cost		(86,069)		(27,082)		(113,151)
Depreciation and amortization		(92,341)		(27,969)		(120,310)
Equity in net earnings of affiliated companies		61,484		—		61,484
Net (loss)/ income attributable to Navios Holdings common stockholders		(148,306)		14,194		(134,112)
Total assets		2,359,299		599,514		2,958,813
Goodwill		56,240		104,096		160,336
Capital expenditures		(7,882)		(27,039)		(34,921)
Investment in affiliates		381,746		—		381,746
Cash and cash equivalents		81,905		81,507		163,412
Restricted cash		13,480		—		13,480
Long-term debt, net (including current and noncurrent portion)	$	1,213,740	$	367,568	$	1,581,308

The following table sets out the Company’s revenue by geographic region. Dry bulk Vessel Operations (excluding administrative fee revenue from affiliates) and Logistics Business revenue are allocated on the basis of the geographic region in which the customer is located. Dry bulk vessels operate worldwide. Logistics business operates different types of tanker vessels, pushboats, and wet and dry barges for delivering a wide range of products between ports in the Paraná, Paraguay and Uruguay River systems in South America (commonly known as the “Hidrovia” or the “waterway”).

Revenues from specific geographic regions which contribute over 10% of revenue are disclosed separately.

Revenue by Geographic Region


	Year ended December 31, 2017		Year ended December 31, 2016		Year ended December 31, 2015
North America	$	5,513	$	6,218	$	22,317
Europe		124,857		109,267		109,347
Asia		91,552		73,073		87,658
South America		212,616		220,336		253,746
Other		28,511		10,888		7,752
Total	$	463,049	$	419,782	$	480,820

Vessels operate on a worldwide basis and are not restricted to specific locations. Accordingly, it is not possible to allocate the assets of these operations to specific countries. The total net book value of long-lived assets for dry bulk vessels amounted to $1,278,447 and $1,409,415 at December 31, 2017 and 2016, respectively. For Logistics Business, all long-lived assets are located in South America. The total net book value of long-lived assets for the Logistics Business amounted to $563,887 and $544,065 at December 31, 2017 and 2016, respectively.