##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2009
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION
13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
 For the transition period from  to
 Commission file number 0-27496
 CRONOS GLOBAL INCOME FUND XVI, L.P.
  California
    
    94-3230380(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)
 
 
 þ o
 o o
  Large accelerated filer oAccelerated filer oNon-accelerated filer o(Do not check if a smaller reporting company)Smaller reporting company þ o þ




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Report on Form 10-Q for the Quarterly Period
Ended June 30, 2009
 TABLE OF CONTENTS
 PAGEPART I  FINANCIAL INFORMATION
    
    
    1Item 1. Financial Statements
    
    
    1Unaudited Condensed Balance Sheets as of June 30, 2009 and December 31, 2008
    
    
    2Unaudited Condensed Statements of Income for the three and six months ended June 30, 2009 and 2008
    
    
    3Unaudited Condensed Statements of Cash Flows for the six months ended June 30, 2009 and 2008
    
    
    4Unaudited Notes to the Condensed Financial Statements
    
    
    5Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    11Item 3. Quantitative and Qualitative Disclosures About Market Risk
    
    
    16Item 4. Controls and Procedures
    
    
    16Item 4T. Controls and Procedures
    
    
    16PART II  OTHER INFORMATION
    
    
    17Item 1. Legal Proceedings
    
    
    17Item 1A. Risk Factors
    
    
    17Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    17Item 3. Defaults Upon Senior Securities
    
    
    17Item 4. Submissions of Matters to a Vote of Security Holders
    
    
    17Item 5. Other Information
    
    
    17Item 6. Exhibits
    
    
    17EX-31.1EX-31.2EX-32




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PART I  FINANCIAL INFORMATION
 
 Financial Statements
   1




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Condensed Balance Sheets
 (Unaudited)
 June 30,
    
    
    December 31,2009
    
    
    2008AssetsCurrent assets:Cash
    
    $
    748,624
    
    
    $
    886,181Net lease receivables due from Leasing Agent
    
    
    270,402
    
    
    
    396,009Direct finance lease receivable, due from Leasing Agent within one year, net
    
    
    23,515
    
    
    
    22,382Total current assets
    
    
    1,042,541
    
    
    
    1,304,572Direct finance lease receivable, due from Leasing Agent after one year, net
    
    
    37,767
    
    
    
    21,091Container rental equipment, at cost
    
    
    15,973,569
    
    
    
    18,016,216Less accumulated depreciation
    
    
    (11,465,013
    )
    
    
    (12,517,613
    )Net container rental equipment
    
    
    4,508,556
    
    
    
    5,498,603Total assets
    
    $
    5,588,864
    
    
    $
    6,824,266Partners CapitalPartners capital:General partner
    
    
    467
    
    
    
    607Limited partners
    
    
    5,588,397
    
    
    
    6,823,659Total partners capital
    
    $
    5,588,864
    
    
    $
    6,824,266
  2




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Condensed Statements of Operations
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Net lease revenue from Leasing Agent
    
    $
    228,620
    
    
    $
    370,093
    
    
    $
    523,384
    
    
    $
    814,203Other operating (expenses) income:Depreciation
    
    
    (247,771
    )
    
    
    (340,984
    )
    
    
    (505,485
    )
    
    
    (674,087
    )Other general and administrative expenses
    
    
    (27,467
    )
    
    
    (39,091
    )
    
    
    (53,309
    )
    
    
    (77,166
    )Net gain on disposal of equipment
    
    
    38,136
    
    
    
    30,667
    
    
    
    87,636
    
    
    
    41,845(237,102
    )
    
    
    (349,408
    )
    
    
    (471,158
    )
    
    
    (709,408
    )(Loss) income from operations
    
    
    (8,482
    )
    
    
    20,685
    
    
    
    52,226
    
    
    
    104,795Other income:Interest income
    
    
    
    
    
    
    1,103
    
    
    
    
    
    
    
    4,137Net (loss) income
    
    $
    (8,482
    )
    
    $
    21,788
    
    
    $
    52,226
    
    
    $
    108,932Allocation of net (loss) income:General partner
    
    $
    19,454
    
    
    $
    41,947
    
    
    $
    41,080
    
    
    $
    70,834Limited partners
    
    
    (27,936
    )
    
    
    (20,159
    )
    
    
    11,146
    
    
    
    38,098$
    (8,482
    )
    
    $
    21,788
    
    
    $
    52,226
    
    
    $
    108,932Limited partners per unit share of net
(loss) income
    
    $
    (0.02
    )
    
    $
    (0.01
    )
    
    $
    0.01
    
    
    $
    0.02
  3




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Condensed Statements of Cash Flows
 (Unaudited)
 Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008Net cash provided by operating activities
    
    $
    528,935
    
    
    $
    806,519Cash flows from investing activities:Proceeds from sale of container rental equipment
    
    
    621,135
    
    
    
    576,799Cash flows from financing activities:Distributions to general partner
    
    
    (41,220
    )
    
    
    (46,190
    )Distributions to limited partners
    
    
    (1,246,407
    )
    
    
    (1,233,077
    )Net cash used in financing activities
    
    
    (1,287,627
    )
    
    
    (1,279,267
    )Net (decrease) increase in cash
    
    
    (137,557
    )
    
    
    104,051Cash at the beginning of the period
    
    
    886,181
    
    
    
    831,160Cash at the end of the period
    
    $
    748,624
    
    
    $
    935,211
  4




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (1)
    
    Summary of Significant Accounting Policies
 (a)
    
    Nature of OperationsCronos Global Income Fund XVI, L.P. (the Partnership) is a limited partnership that was
organized under the laws of the State of California on September 1, 1995, for the purpose
of owning and leasing dry and specialized marine cargo containers to ocean carriers. The
Partnership commenced operations on March 29, 1996, when the minimum subscription proceeds
of $2,000,000 were received from over 100 subscribers (excluding from such count,
Pennsylvania residents, Cronos Capital Corp. (CCC), the general partner, and all
affiliates of CCC). On February 3, 1997, CCC suspended the offer and sale of units in the
Partnership. The offering terminated on December 27, 1997, at which time 1,599,667 limited
partnership units had been sold.CCC and its affiliate, Cronos Containers Limited (the Leasing Agent), manage the business
of the Partnership. CCC and the Leasing Agent also manage the container leasing business
for other partnerships affiliated with CCC.In April 2009, the Partnership commenced its 14th year of operations and continued its
liquidation phase, wherein CCC focuses its attention on the retirement of the remaining
equipment in the Partnerships container fleet. At June 30, 2009, approximately 63% of the
original equipment remained in the Partnerships fleet. CCC will take several factors into
consideration when examining options for the timing of the disposal of the containers.
These factors include the level of gross lease revenue generated by the diminishing fleet,
the level of costs relative to this revenue, projected disposal proceeds on the disposition
of the Partnerships containers, overall market conditions and any foreseeable changes in
other general and administrative expenses.The Partnerships operations are subject to economic, political and business risks inherent
in a business environment. The Partnership believes that the profitability of, and risks
associated with, leases to foreign customers is generally the same as those of domestic
customers. The Partnerships leases generally require all payments to be made in United
States dollars.(b)
    
    Leasing AgentThe Partnership and the Leasing Agent have entered into an agreement (the Leasing Agent
Agreement) whereby the Leasing Agent manages the leasing operations for all equipment
owned by the Partnership. In addition to responsibility for leasing and re-leasing the
equipment to ocean carriers, the Leasing Agent disposes of the containers at the end of
their useful economic life and has full discretion over which ocean carriers and suppliers
of goods and services it may deal with. The Leasing Agent Agreement permits the Leasing
Agent to use the containers owned by the Partnership, together with other containers owned
or managed by the Leasing Agent and its affiliates, as part of a single fleet operated
without regard to ownership. The Leasing Agent Agreement generally provides that the
Leasing Agent will make payments to the Partnership based upon rentals collected from ocean
carriers after deducting direct operating expenses and management fees due both to CCC and
the Leasing Agent.The Leasing Agent leases containers to ocean carriers, generally under operating leases
which are either master leases or term leases (mostly one to five years) and periodically
under direct finance leases.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 Master leases do not specify the exact number of containers to be leased or the term that
each container will remain on hire but allow the ocean carrier to pick up and drop off
containers at various locations. Rentals are charged and recognized based upon the number
of containers used and the applicable per-diem rate. Accordingly, rentals under master
leases are variable and contingent upon the number of containers used.Term leases are for a fixed quantity of containers for a fixed period of time, typically
varying from three to five years. In most cases, containers cannot be returned prior to
the expiration of the lease. Term lease agreements may contain early termination penalties
that apply in the event of early redelivery. Term leases provide greater revenue stability
to the lessor, usually at lower lease rates than master leases. Ocean carriers use term
leases to lower their operating costs when they have a need for an identified number of
containers for a specified term. Rentals under term leases are charged and recognized
based upon the number of containers leased, the applicable per-diem rate and the length of
the lease, irrespective of the number of days which the customer actually uses the
containers.Direct finance leases are long-term in nature, usually ranging from three to seven years,
and require relatively low levels of customer service. They ordinarily require fixed
payments over a defined period and provide customers with an option to purchase the subject
containers at the end of the lease term. Per-diem rates include an element of repayment of
capital and therefore are usually higher than rates charged under either term or master
leases.(c)
    
    Basis of PresentationThe accompanying unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States of America
(US GAAP) for interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the information and
footnotes required US GAAP for annual financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the interim period are not
necessarily indicative of the results that may be expected for the fiscal year ending
December 31, 2009. For further information, refer to the financial statements and
footnotes thereto included in the Partnerships Annual Report on Form 10-K for the year
ended December 31, 2008.(d)
    
    Use of Estimates in Interim Financial StatementsThe preparation of interim financial statements, in conformity with US GAAP and the
Securities and Exchange Commission (SEC) regulations for interim reporting, requires the
Partnership to make estimates and assumptions that affect the reported amounts of assets
and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reported
period. The most significant estimates are those relating to the carrying value of
equipment, including estimates relating to depreciable lives, residual values and asset
impairments, and those relating to the allowance for doubtful accounts. Actual results
could differ from those estimates.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (e)
    
    Container Rental EquipmentContainer rental equipment is depreciated over a 15-year life using the straight-line basis
to its residual value of 10% of original equipment cost. CCC evaluates the period of
depreciation and residual values to determine whether subsequent events and circumstances
warrant revised estimates of useful lives.In accordance with Statement of Financial Accounting Standards (SFAS) No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets, container rental
equipment is considered to be impaired if the carrying value of the asset exceeds the
expected future cash flows from related operations (undiscounted and without interest
charges). If impairment is deemed to exist, the assets are written down to fair value. An
analysis of projected future cash flows from container rental equipment operations is
prepared annually, or upon material changes in market conditions. Indicators of a
potential impairment include a sustained decrease in utilization or operating
profitability, or indications of technological obsolescence. The primary variables
utilized in the analysis are current and projected utilization rates, per-diem rental
rates, direct operating expenses, fleet size, container disposal proceeds and the timing of
container disposals. Additionally, the Partnership evaluates future cash flows and
potential impairment for its entire container fleet rather than for container type or each
individual container. As a result, future losses could result for individual container
dispositions due to various factors, including age, condition, suitability for continued
leasing, as well as the geographical location of containers when disposed. There were no
impairment charges recorded against the carrying value of container rental equipment for
the six-month periods ended June 30, 2009 and 2008.(f)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners CapitalNet income or loss has been allocated between the general and limited partners in
accordance with the Partnership Agreement. The Partnership Agreement generally provides
that CCC shall at all times maintain at least a 1% interest in each item of income or loss,
including the gain arising from the sale of containers. The Partnership Agreement further
provides that the gain arising from the sale of containers be allocated first to the
partners with capital account deficit balances in an amount sufficient to eliminate any
deficit capital account balance. Thereafter, the Partnerships gains arising from the sale
of containers are allocated to the partners in accordance with their share of sale proceeds
distributed. The Partnership Agreement also provides for income (excluding the gain
arising from the sale of containers) for any period, be allocated to CCC in an amount equal
to that portion of CCCs distributions in excess of 1% of the total distributions made to
both CCC and the limited partners of the Partnership for such period, as well as other
allocation adjustments.Actual cash distributions differ from the allocations of net income or loss between the
general and limited partners as presented in these financial statements. Partnership
distributions are paid to its partners (general and limited) from distributable cash from
operations, allocated 95% to the limited partners and 5% to CCC. Distributions of sales
proceeds are allocated 99% to the limited partners and 1% to CCC. The allocations remain
in effect until such time as the limited partners have received from the Partnership
aggregate distributions in an amount equal to their capital contributions plus an 8%
cumulative, compounded (daily), annual return on their adjusted capital contributions.
Thereafter, all Partnership distributions will be allocated 85% to the limited partners and
15% to CCC. Cash distributions from operations to CCC in excess of 5% of distributable
cash will be considered an incentive fee and will be recorded as compensation to CCC, with
the remaining distributions from operations charged to partners capital.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 Upon dissolution, the assets of the Partnership will be sold and the proceeds thereof
distributed as follows: (i) all of the Partnerships debts and liabilities to persons other
than CCC or the limited partners shall be paid and discharged; (ii) all of the
Partnerships debts and liabilities to CCC and the limited partners shall be paid and
discharged; and (iii) the balance of such proceeds shall be distributed to CCC and the
limited partners in accordance with the positive balances of CCC and the limited partners
capital accounts. CCC shall contribute to the Partnership an amount equal to the lesser of
the deficit balance in its capital account at the time of such liquidation, or 1.01% of the
excess of the Limited Partners capital contribution to the Partnership over the capital
contributions previously made to the Partnership by CCC, after giving effect to the
allocation of income or loss arising from the liquidation of the Partnerships assets.
 (2)
    
    Net Lease Receivables Due from Leasing AgentNet lease receivables due from Leasing Agent at June 30, 2009 and December 31, 2008
comprised:
 June 30,
    
    
    December 31,2009
    
    
    2008Gross lease receivables
    
    $
    496,643
    
    
    $
    607,309Less:Direct operating expenses payable
    
    
    158,333
    
    
    
    131,180Base management fees payable
    
    
    21,928
    
    
    
    30,874Reimbursed administrative expenses payable
    
    
    6,548
    
    
    
    6,421Allowance for doubtful accounts
    
    
    39,432
    
    
    
    42,825Net lease receivables due from Leasing Agent
    
    $
    270,402
    
    
    $
    396,009
 Included within the amount of gross lease receivables are $101,674 and $183,061 in respect of
amounts owed by the Leasing Agent in relation to the disposal of containers for the six months
ended June 30, 2009, and the year ended December 31, 2008, respectively.
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (3)
    
    Net Lease RevenueNet lease revenue for the three and six-month periods ended June 30, 2009 and 2008
comprised:
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Gross lease revenue
    
    $
    378,207
    
    
    $
    550,827
    
    
    $
    833,494
    
    
    $
    1,134,531Interest income (loss) from direct finance lease
    
    
    2,705
    
    
    
    (5,540
    )
    
    
    5,182
    
    
    
    (5,540
    )Less:Direct operating expenses
    
    
    105,079
    
    
    
    108,113
    
    
    
    216,642
    
    
    
    179,987Base management fees
    
    
    26,472
    
    
    
    37,484
    
    
    
    57,616
    
    
    
    77,682Reimbursed administrative expensesSalaries
    
    
    15,899
    
    
    
    22,750
    
    
    
    30,785
    
    
    
    43,275Other payroll related expenses
    
    
    1,310
    
    
    
    2,234
    
    
    
    3,065
    
    
    
    4,753General and administrative expenses
    
    
    3,532
    
    
    
    4,613
    
    
    
    7,184
    
    
    
    9,091152,292
    
    
    
    175,194
    
    
    
    315,292
    
    
    
    314,788Net lease revenue
    
    $
    228,620
    
    
    $
    370,093
    
    
    $
    523,384
    
    
    $
    814,203
 (4)
    
    Operating SegmentAn operating segment is a component of an enterprise that engages in business activities from
which it may earn revenues and incur expenses, whose operating results are regularly reviewed
by the enterprises chief operating decision maker to make decisions about resources to be
allocated to the segment and to assess its performance, and about which separate financial
information is available. CCC and the Leasing Agent operate the Partnerships container fleet
as a homogenous unit and have determined that as such, it has a single reportable operating
segment.A summary of gross lease revenue earned by each Partnership container type for the periods
ended June 30, 2009 and 2008 follows:
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,
    
    
    June 30,
    
    
    June 30,2009
    
    
    2008
    
    
    2009
    
    
    2008Dry cargo containers
    
    $
    288,667
    
    
    $
    420,345
    
    
    $
    643,271
    
    
    $
    847,441Refrigerated containers
    
    
    51,518
    
    
    
    83,483
    
    
    
    113,483
    
    
    
    200,518Tank containers
    
    
    38,022
    
    
    
    46,999
    
    
    
    76,740
    
    
    
    86,572Total
    
    $
    378,207
    
    
    $
    550,827
    
    
    $
    833,494
    
    
    $
    1,134,531
 Due to the Partnerships lack of information regarding the physical location of its fleet
of containers when on lease in the global shipping trade, the Partnership believes that it does
not possess discernible geographic reporting segments as defined in SFAS No. 131 Disclosures
about Segments of an Enterprise and Related Information.
  
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Unaudited Condensed Financial Statements
 (5)
    
    Limited Partners CapitalCash distributions made to the limited partners for the six-month periods ended June 30, 2009
and 2008 were as follows:
 Six Months EndedJune 30,
    
    
    June 30,2009
    
    
    2008Cash Distribution from Operations
    
    $
    673,192
    
    
    $
    793,168Cash Distribution from Sales Proceeds
    
    
    573,215
    
    
    
    439,909Total Cash Distributions
    
    $
    1,246,407
    
    
    $
    1,233,077
 These distributions are used in determining Adjusted Capital Contributions as defined by the
Partnership Agreement.The limited partners per unit share of capital at June 30, 2009, and December 31, 2008, was
$3.49 and $4.27, respectively. This is calculated by dividing the limited partners capital at
the end of June 30, 2009, and December 31, 2008, by 1,599,667, the total number of outstanding
limited partnership units.
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Managements Discussion and Analysis of Financial Condition and Results of
Operations
  Results of Operations
 Partnership Overview
   
    
    Activity-related expenses, including agent costs and depot costs such as repairs,
maintenance and handling;
    
    Inventory-related expenses for off-hire containers, comprising storage and
repositioning costs. These costs are sensitive to the quantity of off-hire containers
as well as the frequency at which containers are re-delivered and the frequency and size
of repositioning moves undertaken; and
    
    Legal and other expenses, including legal costs related to the recovery of containers
and doubtful accounts, insurance and provisions for doubtful accounts.
  Dry Cargo
    
    Refrigerated
    
    TankContainers
    
    Containers
    
    Containers
    
    TotalContainer on lease:Master lease
    
    
    4,264
    
    
    
    90
    
    
    
    19
    
    
    
    4,373Term leaseShort term1
    
    
    338
    
    
    
    2
    
    
    
    11
    
    
    
    351Long term2
    
    
    1,139
    
    
    
    37
    
    
    
    12
    
    
    
    1,1881,477
    
    
    
    39
    
    
    
    23
    
    
    
    1,539Subtotal
    
    
    5,741
    
    
    
    129
    
    
    
    42
    
    
    
    5,912Containers off-hire
    
    
    1,467
    
    
    
    20
    
    
    
    9
    
    
    
    1,496Total container fleet
    
    
    7,208
    
    
    
    149
    
    
    
    51
    
    
    
    7,408
 
 1.
    
    Short term leases represent term leases that are either scheduled for renegotiation or that
may expire on or before June 2010.2.
    
    Long term leases represent term leases, the majority of which will expire between July 2010
and December 2021. 11




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Dry Cargo
    
    Refrigerated
    
    TankContainers
    
    Containers
    
    Containers
    
    TotalTEU
    
    %
    
    TEU
    
    %
    
    TEU
    
    %
    
    TEU
    
    %Total purchases
    
    
    11,053
    
    
    
    100
    %
    
    
    690
    
    
    
    100
    %
    
    
    52
    
    
    
    100
    %
    
    
    11,795
    
    
    
    100
    %Less disposals
    
    
    3,845
    
    
    
    35
    %
    
    
    541
    
    
    
    78
    %
    
    
    1
    
    
    
    2
    %
    
    
    4,387
    
    
    
    37
    %Remaining fleet at June 30, 2009
    
    
    7,208
    
    
    
    65
    %
    
    
    149
    
    
    
    22
    %
    
    
    51
    
    
    
    98
    %
    
    
    7,408
    
    
    
    63
    %
 Market & Industry Overview
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Six Months EndedJune 30,
    
    June 30,2009
    
    2008Fleet size (measured in twenty foot equivalent units)Dry cargo containers
    
    
    7,484
    
    
    
    8,371Refrigerated containers
    
    
    187
    
    
    
    356Tank containers
    
    
    51
    
    
    
    51Utilization rates for combined fleetAverage for the period
    
    
    84
    %
    
    
    92
    %Position at end of period
    
    
    80
    %
    
    
    94
    %
 Three Months Ended June 30, 2009 Compared to the Three Months Ended June 30, 2008
 Overview
 Net loss
 
    
    a 15% reduction in the size of the container fleet as equipment that was redelivered by
customers was sold;
    
    a decline in the levels of net lease revenues, resulting from the combined effect of a
reduction in the size of the fleet, lower utilization and lease per-diem levels; and
    
    a decrease in depreciation expense as a result of the declining fleet size.
 Analysis and discussion
 Net lease revenue was
 Depreciation expense
 Other general and administrative expenses
 Net gains on disposal of equipment
 13




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##### Table of Contents



Six Months Ended June 30, 2009 Compared to the Six Months Ended June 30, 2008
 Overview
 Net income
 
    
    a 14% reduction in the size of the container fleet as equipment that was redelivered by
customers was sold;
    
    a decline in the levels of net lease revenues, resulting from the combined effect of a
reduction in the size of the fleet, lower utilization, lease per-diem levels and increased
direct operating expenses; and
    
    a decrease in depreciation expense as a result of the declining fleet size.
 Analysis and discussion
 Net lease revenue
 Depreciation expense
 Other general and administrative expenses
 Net gains on disposal of equipment
 Liquidity and Capital Resources
   14




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##### Table of Contents



Cash from Operating Activities
 Cash from Investing Activities
 Cash from Financing Activities
 Critical Accounting Policies
  
    
    Container equipment  depreciable lives and residual values.
    
    Container equipment  recoverability and valuation in accordance with SFAS 144
Accounting for the Impairment or Disposal of Long Lived Assets.
    
    Allowance for doubtful accounts.
  Inflation
  15




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##### Table of Contents



Quantitative and Qualitative Disclosures About Market Risk
 Exchange rate risk
 Credit risk
 
 Controls and Procedures
  
 Controls and Procedures
  16




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##### Table of Contents



PART II  OTHER INFORMATION
 
 Legal Proceedings
  
 Risk Factors
  
 Unregistered Sales of Equity Securities and Use of Proceeds
  
 Defaults Upon Senior Securities
  
 Submissions of Matters to a Vote of Security Holders
  
 Other Information
  
 Exhibits
  ExhibitNo.
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement, amended
and restated as of December 28, 1995
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document
****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
28, 1995, included as part of Registration Statement on Form S-1 (No. 33-98290)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not to be deemed filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act. 
 17




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##### Table of Contents



SIGNATURES
  CRONOS GLOBAL INCOME FUND XVI, L.P.By
    Cronos Capital Corp.
The General PartnerBy
    /s/ Dennis J. TietzDennis J. TietzPresident and Director of
Cronos Capital Corp. (CCC)
Principal Executive Officer of CCCBy
    /s/ Frank P. VaughanFrank P. VaughanChief Financial Officer and
Director of Cronos Capital Corp. (CCC)
Principal Financial and Accounting Officer of CCC  18




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##### Table of Contents



EXHIBIT INDEX
 ExhibitNo.
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement, amended
and restated as of December 28, 1995
    
    *3(b)
    
    Certificate of Limited Partnership
    
    **10
    
    Form of Leasing Agent Agreement with
Cronos Containers Limited
    
    ***31.1
    
    Rule 13a-14 Certification
    
    Filed with this document31.2
    
    Rule 13a-14 Certification
    
    Filed with this document32
    
    Section 1350 Certification
    
    Filed with this document
****
 
 *
    
    Incorporated by reference to Exhibit A to the Prospectus of the Partnership dated December
28, 1995, included as part of Registration Statement on Form S-1 (No. 33-98290)**
    
    Incorporated by reference to Exhibit 3.2 to the Registration Statement on Form S-1 (No.
33-98290)***
    
    Incorporated by reference to Exhibit 10.2 to the Registration Statement on Form S-1 (No.
33-98290)****
    
    This certification, required by Section 906 of the Sarbanes-Oxley Act of 2002, other than as
required by Section 906, is not deemed to be filed with the Commission or subject to the
rules and regulations promulgated by the Commission under the Securities Exchange Act of 1934,
as amended, or to the liabilities of Section 18 of said Act.