##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-K
 þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2010
 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 
incorporation or organization)
    
    (I.R.S. Employer Identification No.)
  (Address of principal executive offices)
    
    (Zip Code)
   Name of each exchange onTitle of each class
    
    which registeredNot Applicable
  UNITS OF LIMITED PARTNERSHIP INTERESTS
  o þ
 o þ
 þ o
 o o
 þ
   Large accelerated filer o   
    Accelerated filer o
    Non-accelerated filer o
    Smaller reporting company þ(Do not check if a smaller reporting company)
 o þ




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##### 



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Report on Form 10-K for the Fiscal Year
Ended December 31, 2010
 TABLE OF CONTENTS
 PAGEPART I
    
    
    3Item 1  Business
    
    
    3Item 1A  Risk Factors
    
    
    10Item 1B  Unresolved Staff Comments
    
    
    14Item 2  Properties
    
    
    14Item 3  Legal Proceedings
    
    
    14Item 4  Removed and Reserved
    
    
    14PART II
    
    
    15Item 5  Market for the Partnerships Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
    
    
    15Item 6  Selected Financial Data
    
    
    16Item 7  Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    17Item 7A Quantitative and Qualitative Disclosures About Market Risk
    
    
    23Item 8  Financial Statements and Supplementary Data
    
    
    23Item 9  Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    37Item 9A  Controls and Procedures
    
    
    37Item 9A(T)  Controls and Procedures
    
    
    37Item 9B  Other Information
    
    
    37PART III
    
    
    38Item 10  Directors, Executive Officers and Corporate Governance
    
    
    38Item 11  Executive Compensation
    
    
    41Item 12  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
    
    
    42Item 13  Certain Relationships and Related Transactions, and Director Independence
    
    
    42Item 14  Principal Accountant Fees and Services
    
    
    43PART IV
    
    
    44Item 15  Exhibits and Financial Statement Schedules
    
    
    44EX-31.1EX-31.2EX-32
  2




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##### Table of Contents



PART I
 
 Item 1. Business
    Percentage ofAmount
    
    
    Gross ProceedsGross subscription proceeds
    
    $
    31,993,340
    
    
    
    100.0
    %Public offering expenses:Underwriting commissions
    
    $
    3,199,334
    
    
    
    10.0
    %Offering and organization expenses
    
    $
    1,482,466
    
    
    
    4.6
    %Total public offering expenses
    
    $
    4,681,800
    
    
    
    14.6
    %Net proceeds
    
    $
    27,311,540
    
    
    
    85.4
    %Acquisition fees
    
    $
    1,276,220
    
    
    
    4.0
    %Working capital reserve
    
    $
    319,933
    
    
    
    1.0
    %Unexpended proceeds
    
    $
    190,993
    
    
    
    0.6
    %Gross proceeds invested in equipment
    
    $
    25,524,394
    
    
    
    79.8
    %
    3




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Benefits of Leasing
  
    
    Leasing provides shipping lines with the flexibility to respond to rapidly changing
market opportunities as they arise without relying exclusively on their own containers;
    
    Leasing allows shipping lines to respond to changing seasonal and trade route demands,
thereby optimizing their capital investment and minimizing storage costs;
    
    Leasing enables shipping lines to expand their trade routes and market shares at a
relatively low cost without making a permanent commitment to support their new structure;
 4




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
    
    Leasing allows the shipping lines to utilize the equipment they need without having to
make large capital expenditures;
    
    Leasing offers a shipping line an alternative source of financing in a traditionally
capital-intensive industry; and
    
    Leasing allows shipping lines to benefit from the relationships between container
manufacturers and leasing companies.
 Fleet Profile
  Ò Ò
    Dry Cargo
    
    
    RefrigeratedContainers
    
    
    Containers
    
    
    Tank Containers
    
    
    TotalContainer on lease:Master lease
    
    
    4,065
    
    
    
    35
    
    
    
    14
    
    
    
    4,114Term leaseShort term1
    
    
    154
    
    
    
    1
    
    
    
    17
    
    
    
    172Long term2
    
    
    1,240
    
    
    
    14
    
    
    
    8
    
    
    
    1,2621,394
    
    
    
    15
    
    
    
    25
    
    
    
    1,434Subtotal
    
    
    5,459
    
    
    
    50
    
    
    
    39
    
    
    
    5,548Containers off-hire
    
    
    155
    
    
    
    6
    
    
    
    4
    
    
    
    165Total container fleet
    
    
    5,614
    
    
    
    56
    
    
    
    43
    
    
    
    5,713
 
 1.
    
    Short term leases represent term leases that are either scheduled for renegotiation or
that may expire in 2011.2.
    
    Long term leases represent term leases that will expire after 2011.  5




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Types of Leases
  
    
    Master leases.Master leases provide customers with flexibility by allowing them to
pick up containers where and when required on pre-agreed terms, subject to restrictions
and availability. Master leases also define the number of containers that may be
returned within each calendar month, the permitted return locations and applicable
drop-off charges. Due to the increased flexibility they offer, master leases usually
command higher per-diem rates and generate more ancillary revenue (including pick-up,
drop-off, handling and off-hire revenue) than term leases. The commercial terms of
master leases are usually negotiated or renewed annually.
    
    Term leases.Term leases are for a fixed quantity of containers for a fixed period
of time, typically ranging from three to seven years. In most cases, containers cannot
be returned prior to the expiration of the lease. Some term lease agreements contain
early termination penalties that apply in the event of early redelivery. Term leases
provide greater revenue stability to the lessor, but 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.
    
    Direct financing leases.Direct financing 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.
      Customers
  6




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Credit Controls
   Repair and Maintenance
   Disposition of Used Containers
  Operations
    7




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Insurance
  Competition
     8




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Environmental Matters
  Employees
     2010
    
    
    2009
    
    
    2008Dry cargo containers
    
    $
    1,000,105
    
    
    $
    1,150,647
    
    
    $
    1,663,728Refrigerated containers
    
    
    92,012
    
    
    
    190,501
    
    
    
    356,450Tank containers
    
    
    142,901
    
    
    
    149,150
    
    
    
    165,428Total
    
    $
    1,235,018
    
    
    $
    1,490,298
    
    
    $
    2,185,606
     9




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##### Table of Contents



Item 1A. Risk Factors
  Risks Related to the Container Leasing Industry and to the Partnership
 Demand for leased containers depends on economic and political factors beyond the control of
the Leasing Agent, CCC and the Partnership.
  
    
    prices of new and used containers;
    
    economic conditions, competitive pressures and consolidation in the container shipping
industry;
    
    shifting trends and patterns of cargo traffic;
    
    the availability and terms of container financing;
    
    fluctuations in inflation rates, interest rates and foreign currency values;
    
    overcapacity, undercapacity and consolidation of container manufacturers;
    
    the lead times required to purchase containers;
    
    the number of containers purchased by competitors and container lessees;
    
    container ship fleet overcapacity or undercapacity;
    
    increased repositioning by container shipping lines of their own empty containers to
higher demand locations instead of leasing containers;
    
    consolidation or withdrawal of individual container lessees in the container leasing
industry;
    
    import / export tariffs and restrictions;
    
    customs procedures, foreign exchange controls and other governmental regulations;
    
    natural disasters that are severe enough to affect local and global economies or
interfere with trade; and
    
    other political and economic factors.
 Lease rates may decrease, which could harm the results of operations and financial condition
of the Partnership.
  
    
    the supply of containers available;
    
    the price of new containers (which is positively correlated with the price of steel);
    
    the type and length of the lease;
    
    interest rates;
    
    embedded residual assumptions;
    
    the type and age of the container;
    
    the location of the container being leased;
    
    the number of containers available for lease by competitors; and
    
    the lease rates offered by competitors.
 Customer defaults could have an adverse effect on the profitability and financial condition of
the Leasing Agent and the Partnership.
   10




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Fluctuations in the residual value of containers may impact profitability and the long-term
returns generated by leased equipment.
  The Leasing Agent operates in a highly competitive industry.
  Increases in the cost of insurance or the lack of availability of insurance could increase the
risk exposure of the Partnership and reduce its profitability. Potential losses could exceed
maximum insurance coverage limits
  The Leasing Agent relies on its information technology systems to conduct its business. Any
failure or interruption in these systems could have an adverse effect on the profitability and
financial condition of the Leasing Agent and the Partnership.
   The Leasing Agent and Partnership are reliant on electronic banking systems to receive and
make payments. Any failure or interruption in banking systems could have an adverse effect on the
profitability and financial condition of the Leasing Agent and the Partnership.
  Specialized containers could experience potential mechanical, obsolescence and other risks.
  11




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Environmental liability may adversely affect the Partnerships business and financial
situation.
  Affiliates of the Leasing Company may not have adequate resources to pay container
manufacturers for equipment purchased for resale.
  There are political, economic and business risks inherent in the global business environment.
  
    
    Political and economic instability;
    
    Increases in maintenance expenses, taxes, third party fees and other expenses
attributable to the operation and the maintenance of the containers that cannot be offset
by increased lease revenues from the containers;
    
    Fluctuations in supply and demand for containers resulting from, among other things,
obsolescence, changes in the methods or economics of a particular mode of transportation or
changes in governmental regulations or safety standards;
    
    Restrictions on the movement of capital;
    
    The imposition of new direct and indirect taxes in jurisdictions in which the Leasing
Agent trades;
    
    The effects of strikes and labor disputes; and
    
    Terrorist acts, conflicts and wars.
 Risk Associated with the Operations of an Equipment Leasing Business in Partnership Form
 There is no assurance of successful operations.
  The Partnership has a high degree of reliance on CCC and the Leasing Agent.
  The Partnership is dependent on key personnel in CCC and the Leasing Agent.
  12




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There is a lack of liquidity for Partnership units.
  The Limited Partners have limited voting rights.
  Limited liability is not clearly established.
  13




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Item 1B. Unresolved Staff Comments
  
 Item 2. Properties
  Containers
    
    Quantity (Units)Dry Cargo - 20-Foot
    
    1,510Dry Cargo - 40-Foot
    
    723Dry Cargo - 40-Foot High-Cube
    
    1,329Refrigerated - 20-Foot
    
    6Refrigerated - 40-Foot High-Cube
    
    25Tanks
    
    43
   Containers
    
    Quantity (Units)Dry Cargo - 20-Foot
    
    538Dry Cargo - 40-Foot
    
    81Dry Cargo - 40-Foot High-Cube
    
    112Refrigerated - 20-Foot
    
    8Refrigerated - 40-Foot High-Cube
    
    25Tanks
    
    7
 
 Item 3. Legal Proceedings
  
 Item 4. Removed and Reserved
 14




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PART II
 
 Item 5. Market for the Partnerships Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
 (a)
    
    Market Information; Recent Sales of Unregistered SecuritiesThe Partnerships outstanding units of limited partnership interests are not traded on
any market nor does an established public trading market exist for such purposes.The Partnership sold no equity securities during 2010 that were not registered under the
Securities Act of 1933, as amended.(b)
    
    HoldersAs of December 31, 2010, there were 1,615 holders of record of the Partnerships limited
partnership interests.(c)
    
    Dividends
 Inapplicable. For the distributions made by the Partnership to its limited partners, see
Item 6  Selected Financial Data.
 (d)
    
    Securities authorized for issuance under equity compensation plans
 Inapplicable.
 (e)
    
    Performance Graph
 Inapplicable.
 (f)
    
    Use of Proceeds
 Inapplicable.
 (g)
    
    Purchases of equity securities by the issuer and affiliated purchasers
 Inapplicable.
 15




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Item 6. Selected Financial Data
    Year Ended December 31,2010
    
    
    2009
    
    
    2008
    
    
    2007
    
    
    2006Net lease revenue
    
    $
    897,304
    
    
    $
    900,588
    
    
    $
    1,603,384
    
    
    $
    1,808,075
    
    
    $
    2,316,295Net income
    
    $
    534,328
    
    
    $
    84,523
    
    
    $
    303,588
    
    
    $
    308,275
    
    
    $
    196,435Limited partners share of net
income (per unit basis)
    
    $
    0.31
    
    
    $
    0.01
    
    
    $
    0.12
    
    
    $
    0.12
    
    
    $
    0.06Cash distributions per unit of
limited partnership
interest
    
    $
    0.96
    
    
    $
    1.42
    
    
    $
    1.63
    
    
    $
    1.88
    
    
    $
    2.08At year-end:Total assets
    
    $
    3,537,788
    
    
    $
    4,573,500
    
    
    $
    6,824,266
    
    
    $
    9,218,045
    
    
    $
    12,013,715Partners capital
    
    $
    3,537,788
    
    
    $
    4,573,500
    
    
    $
    6,824,266
    
    
    $
    9,218,045
    
    
    $
    12,013,715
 16




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Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations
  Forward-Looking Statements
    Primary Revenue Items
  
    
    Activity-related expenses, include agents costs and depot costs such as repairs,
maintenance and handling;
    
    Inventory-related expenses for off-hire containers, comprise of 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, include legal costs related to the recovery of containers and
doubtful accounts, insurance and provisions for doubtful accounts.
 Partnership Overview
  17




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th
   Dry Cargo
    
    
    RefrigeratedContainers
    
    
    Containers
    
    
    Tank Containers
    
    
    TotalTEU
    
    
    %
    
    
    TEU
    
    
    %
    
    
    TEU
    
    
    %
    
    
    TEU
    
    
    %Total purchases
    
    
    11,053
    
    
    
    100
    %
    
    
    690
    
    
    
    100
    %
    
    
    52
    
    
    
    100
    %
    
    
    11,795
    
    
    
    100
    %Less disposals
    
    
    5,439
    
    
    
    49
    %
    
    
    634
    
    
    
    92
    %
    
    
    9
    
    
    
    17
    %
    
    
    6,082
    
    
    
    52
    %Remaining fleet at December 31, 2010
    
    
    5,614
    
    
    
    51
    %
    
    
    56
    
    
    
    8
    %
    
    
    43
    
    
    
    83
    %
    
    
    5,713
    
    
    
    48
    %
  Market & Industry Overview
    18




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2010
    
    
    2009
    
    
    2008Fleet size (measured in TEUs)Dry cargo containers
    
    
    5,982
    
    
    
    7,191
    
    
    
    8,181Refrigerated containers
    
    
    74
    
    
    
    161
    
    
    
    310Tank containers
    
    
    48
    
    
    
    51
    
    
    
    51Utilization rates for combined fleetAverage for the period
    
    
    92
    %
    
    
    81
    %
    
    
    94
    %At end of period
    
    
    97
    %
    
    
    81
    %
    
    
    91
    %
 Year Ended December 31, 2010 Compared to the Year Ended December 31, 2009
 Overview
  
    
    The Partnership experienced stronger market conditions for leased containers;
    
    Depreciation expense declined in line with the reduction in fleet size as the
Partnership continued to sell equipment that had reached the end of its useful economic
life for maritime leasing; and
    
    The gain recorded upon the sale of container equipment increased 104% when compared
to the prior year due to lower net book values at the time of disposal and higher
proceeds per container as a result of the more favorable secondary market conditions in
2010.
 Analysis & Discussion
 Net lease revenue
 
    
    a $225,280, or 17%, reduction in gross lease revenue as a direct result of the
reduction in fleet size. This is particularly attributable to the Partnerships dry
cargo container fleet which declined by 16% year on year;
 This was partially offset by:
 
    
    a $206,051, or 49%, decrease in direct operating expenses as a result of the increase
in utilization and corresponding decline in inventories of off-hire equipment, which
resulted in a reduction in both activity-related and inventory-related expenses.
 Depreciation expense
 Other general and administrative expenses
 19




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Net gain on disposal of equipment
 Year Ended December 31, 2009 Compared to the Year Ended December 31, 2008
 Overview
  
    
    a 16% reduction in the size of the container fleet (measured in TEUs) as equipment
that was off-hired was sold;
    
    a decline in the levels of net lease revenues, resulting from the combined effect of
the reduction in the size of the fleet, lower utilization and lease per-diem levels,
and increased direct operating expenses; and
    
    a decrease in depreciation expense as a result of the declining fleet size.
 Analysis & Discussion
 Net lease revenue
 
    
    a $695,308 reduction in gross lease revenue, of which approximately 47% was
attributable to a reduction in the size of the Partnerships fleet and 53% was
attributable to the combined effect of both lower utilization rates and dry cargo
container per-diem rental rates; and
    
    a $92,368 increase in direct operating expenses as both activity-related and
inventory-related expenses increased in line with the level of containers off-hired by
the shipping lines.
 Depreciation expense
 Other general and administrative expenses
 Net gain on disposal of equipment
 Liquidity and Capital Resources
    20




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Cash from Operating Activities:
 Cash from Investing Activities:
 Cash from Financing Activities
 Off-Balance Sheet Arrangements
  Contractual Obligations
  Critical Accounting Policies
 Container equipment  depreciable lives
 Container equipment  valuation:
 Allowance for doubtful accounts:
 21




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Accounting Pronouncements Adopted During the Period
 Credit Quality of Financing Receivables and the
Allowance for Credit Losses Receivables Credit Quality of Financing Receivables and the Allowance for Credit Losses
 Inflation
  22




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Item 7A. Quantitative and Qualitative Disclosures About Market Risk
 Exchange rate risk:
   Credit risk:
 
 Item 8. Financial Statements and Supplementary Data
 23




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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
  24




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Balance Sheets
 December 31, 2010 and 2009
 2010
    
    
    2009AssetsCurrent assets:Cash
    
    $
    849,761
    
    
    $
    650,666Net lease receivables due from Leasing Agent
    
    
    242,963
    
    
    
    182,324Direct financing lease receivable, due from Leasing Agent within one
year, net
    
    
    23,477
    
    
    
    26,485Total current assets
    
    
    1,116,201
    
    
    
    859,475Direct financing lease receivable, due from Leasing Agent after one year, net
    
    
    46,100
    
    
    
    67,711Container rental equipment, at cost
    
    
    10,954,532
    
    
    
    13,976,467Less accumulated depreciation
    
    
    (8,579,045
    )
    
    
    (10,330,153
    )Net container rental equipment
    
    
    2,375,487
    
    
    
    3,646,314Total assets
    
    $
    3,537,788
    
    
    $
    4,573,500Partners CapitalPartners capital:General partner
    
    
    4,757
    
    
    
    1,697Limited partners
    
    
    3,533,031
    
    
    
    4,571,803Total partners capital
    
    $
    3,537,788
    
    
    $
    4,573,500
  25




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Operations
 For the years ended December 31, 2010, 2009 and 2008
 2010
    
    
    2009
    
    
    2008Net lease revenue from Leasing Agent
    
    $
    897,304
    
    
    $
    900,588
    
    
    $
    1,603,384Other operating (expenses) income:Depreciation
    
    
    (727,497
    )
    
    
    (944,375
    )
    
    
    (1,273,694
    )Other general and administrative expenses
    
    
    (124,910
    )
    
    
    (111,452
    )
    
    
    (142,368
    )Net gain on disposal of equipment
    
    
    489,431
    
    
    
    239,762
    
    
    
    111,011(362,976
    )
    
    
    (816,065
    )
    
    
    (1,305,051
    )Income from operations
    
    
    534,328
    
    
    
    84,523
    
    
    
    298,333Other income:Interest income
    
    
    
    
    
    
    
    
    
    
    5,255Net income
    
    $
    534,328
    
    
    $
    84,523
    
    
    $
    303,588Allocation of net income:General partner
    
    $
    40,089
    
    
    $
    70,186
    
    
    $
    116,447Limited partners
    
    
    494,239
    
    
    
    14,337
    
    
    
    187,141$
    534,328
    
    
    $
    84,523
    
    
    $
    303,588Limited partners per unit share of net income
    
    $
    0.31
    
    
    $
    0.01
    
    
    $
    0.12
  26




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Partners Capital
 For the years ended December 31, 2010, 2009 and 2008
 Limited
    
    
    GeneralPartners
    
    
    Partner
    
    
    TotalBalances at January 1, 2008
    
    $
    9,242,641
    
    
    $
    (24,596
    )
    
    $
    9,218,045Net income
    
    
    187,141
    
    
    
    116,447
    
    
    
    303,588Cash distributions
    
    
    (2,606,123
    )
    
    
    (91,244
    )
    
    
    (2,697,367
    )Balances at December 31, 2008
    
    $
    6,823,659
    
    
    $
    607
    
    
    $
    6,824,266Net income
    
    
    14,337
    
    
    
    70,186
    
    
    
    84,523Cash distributions
    
    
    (2,266,193
    )
    
    
    (69,096
    )
    
    
    (2,335,289
    )Balances at December 31, 2009
    
    $
    4,571,803
    
    
    $
    1,697
    
    
    $
    4,573,500Net income
    
    
    494,239
    
    
    
    40,089
    
    
    
    534,328Cash distributions
    
    
    (1,533,011
    )
    
    
    (37,029
    )
    
    
    (1,570,040
    )Balances at December 31, 2010
    
    $
    3,533,031
    
    
    $
    4,757
    
    
    $
    3,537,788
  27




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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Statements of Cash Flows
 For the years ended December 31, 2010, 2009 and 2008
 2010
    
    
    2009
    
    
    2008Cash flows from operating activities:Net income
    
    $
    534,328
    
    
    $
    84,523
    
    
    $
    303,588Adjustments to reconcile net income to net cash from
operating activities:Depreciation
    
    
    727,497
    
    
    
    944,375
    
    
    
    1,273,694Net gain on disposal of equipment
    
    
    (489,431
    )
    
    
    (239,762
    )
    
    
    (111,011
    )Decrease in net lease and other receivables
due from Leasing Agent
    
    
    11,063
    
    
    
    134,757
    
    
    
    104,269Total adjustments
    
    
    249,129
    
    
    
    839,370
    
    
    
    1,266,952Net cash provided by operating activities
    
    
    783,457
    
    
    
    923,893
    
    
    
    1,570,540Cash flows from investing activities:Proceeds from sale of container rental equipment
    
    
    985,678
    
    
    
    1,175,881
    
    
    
    1,181,848Cash flows from financing activities:Distributions to general partner
    
    
    (37,029
    )
    
    
    (69,096
    )
    
    
    (91,244
    )Distributions to limited partners
    
    
    (1,533,011
    )
    
    
    (2,266,193
    )
    
    
    (2,606,123
    )Net cash used in financing activities
    
    
    (1,570,040
    )
    
    
    (2,335,289
    )
    
    
    (2,697,367
    )Net increase (decrease) in cash
    
    
    199,095
    
    
    
    (235,515
    )
    
    
    55,021Cash at beginning of year
    
    
    650,666
    
    
    
    886,181
    
    
    
    831,160Cash at end of year
    
    $
    849,761
    
    
    $
    650,666
    
    
    $
    886,181
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 
 Notes to Financial Statements
 December 31, 2010, 2009 and 2008
 (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 or 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. The Partnership shall continue until December
31, 2015, unless terminated sooner upon the occurrence of certain events.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.The Partnership has entered into its 16th year of operations and in is the
liquidation phase, wherein CCC focuses its attention on the retirement of the remaining
equipment in the Partnerships container fleet. At December 31, 2010, approximately 48% 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. During the first
half of 2011, CCC may distribute a request for proposal (RFP) to prospective third-party
container buyers. A RFP would seek to determine any interest such parties may have in
purchasing the remaining containers owned by the Partnership. CCC will not make a
decision relating to the final liquidation of the Partnership until any such proposals
have been received and fully evaluated. If a decision is made to liquidate the
Partnership, the distribution of cash from operations or sales proceeds may be suspended
while the liquidation of the remaining containers in the fleet is evaluated. This is to
ensure that sufficient cash reserves will be available for expenses relating to the final
liquidation and subsequent dissolution of the Partnership. CCC would make one or more
liquidating distributions to the Limited Partners on or before the termination of the
Partnership, or reinstate the monthly cash distributions should no decision be made to
liquidate the fleet in 2011.The Partnerships operations depend on global economic and political conditions. The
Partnership believes that the profitability and risk profile of leases with foreign
customers are generally the same as those with domestic customers. The majority of the
Partnerships leases generally require all payments to be made in US dollars.(b)
    
    Cronos Ltd.Cronos Ltd. (the Parent Company), a Bermuda exempted company, is the parent of CCC, the
General Partner of the Partnership. On July 28, 2010, Cronos consummated several
transactions with investment funds affiliated with Kelso & Company, L.P. (collectively
Kelso), a private equity firm based in New York. Pursuant to these transactions, Kelso
acquired a majority interest in Cronos through a newly-organized holding company, Cronos
Holding Company Ltd. (Cronos or the Ultimate Holding Company), also a Bermuda exempted
company.In connection with the transactions with Kelso, Dennis J. Tietz retired as a director of
CCC. Messrs. Younger, Vaughan, and Kallas remain as directors of CCC.
 
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (c)
    
    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. 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, and
rentals are charged and recognized based upon the number of containers used and the
applicable per-diem rate. Accordingly, rentals under master leases are all 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 seven 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 financing 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.(d)
    
    Concentrations of Credit RiskThe Partnerships financial instruments that are exposed to concentrations of credit risk
consist primarily of cash, cash equivalents and net lease receivables due from the Leasing
Agent.Net lease receivables due from the Leasing Agent (see notes 1(c) and 4 for discussion
regarding net lease receivables) subject the Partnership to a significant concentration of
credit risk. The net lease receipts, represent rentals collected from ocean carriers
after deducting payments for direct operating expenses and management fees, are remitted
by the Leasing Agent to the Partnership on a weekly basis.(e)
    
    Basis of AccountingThe Partnerships accounting records are maintained in US dollars and the financial
statements are prepared in accordance with accounting principles generally accepted in the
United States of America (US GAAP).
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CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (f)
    
    Use of EstimatesThe preparation of financial statements in conformity with US GAAP 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 relate to the carrying value of equipment
including estimates relating to depreciable lives, residual values and asset impairments.
Actual results could differ from those estimates.(g)
    
    Allocation of Net Income or Loss, Partnership Distributions and Partners CapitalNet income or loss has been allocated between 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 net 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 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.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, if necessary, 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 contributions 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.(h)
    
    Acquisition FeesPursuant to the Partnership Agreement, acquisition fees paid to CCC were based on 5% of
the equipment purchase price. These fees were capitalized and included in the cost of the
container rental equipment.
 
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (1)
    
    Summary of Significant Accounting Policies (continued)
 (i)
    
    Container Rental EquipmentContainer rental equipment is depreciated over a 15-year life using the straight-line
basis to a residual value of 10% of the original equipment cost. The Partnership and CCC
evaluate the period of depreciation and residual values to determine whether subsequent
events and circumstances warrant revised estimates of useful lives.In accordance with ASC 360-10-35  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
operations is prepared annually or upon material changes in market conditions. The
primary variables utilized by 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 fleet rather than for each container type or 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.(j)
    
    Income TaxesThe Partnership is not subject to income taxes, consequently no provision for income taxes
has been made. The Partnership files federal and state annual information tax returns,
prepared on the accrual basis of accounting. Taxable income or loss is reportable by the
partners individually.(k)
    
    New Accounting Pronouncements Adopted During the PeriodOn July 21, 2010, the Financial Accounting Standards Board (FASB) issued Accounting
Standards Update (ASU) No. 2010-20, disclosures about the Credit Quality of Financing
Receivables and the Allowance for Credit Losses. This ASU amends Accounting Standards
Codification Topic 310, Receivables, and requires expanded disclosures about the credit
quality of an entitys loan, lease and other financing receivables and its related
allowance for credit losses. The purpose of the Credit Quality of Financing Receivables
and the Allowance for Credit Lossesis to provide financial statement users more
information to understand an entitys exposure to credit losses and how the allowance
relates to that exposure. The disclosures will help investors assess credit risk in a
companys receivables portfolios and the adequacy of its allowance for credit losses. The
disclosures are effective as of the end of a reporting period for interim and annual
reporting periods ending on or after December 15, 2010. The Partnership adopted FASB ASU
No. 2010-20 on December 1, 2010, and the adoption did not have impact the Partnerships
financial position, result of operations or cash flows.
 
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (2)
    
    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 assess its performance, and about which separate financial
information is available. CCC and the Leasing Agent operate the Partnerships container fleet
as a homogeneous unit and have determined that as such, it has a single reportable operating
segment.The Partnership derives revenues from dry cargo containers, refrigerated containers and tank
containers that are used by its customers in global trade routes. As of December 31, 2010, the
Partnership owned dry cargo and specialized container equipment, comprising:
 Containers
    
    Quantity (Units)Dry Cargo  20-Foot
    
    
    1,510Dry Cargo  40-Foot
    
    
    723Dry Cargo  40-Foot High-Cube
    
    
    1,329Refrigerated  20-Foot
    
    
    6Refrigerated  40-Foot High-Cube
    
    
    25Tanks
    
    
    43
 A summary of gross lease revenue earned by each Partnership container type for the years ended
December 31, 2010, 2009 and 2008 follows:
 2010
    
    
    2009
    
    
    2008Dry cargo containers
    
    $
    1,000,105
    
    
    $
    1,150,647
    
    
    $
    1,663,728Refrigerated containers
    
    
    92,012
    
    
    
    190,501
    
    
    
    356,450Tank containers
    
    
    142,901
    
    
    
    149,150
    
    
    
    165,428Total
    
    $
    1,235,018
    
    
    $
    1,490,298
    
    
    $
    2,185,606
 Due to the Partnerships lack of information regarding the physical location of its container
fleet while on lease in the global shipping trade, the Partnership believes that it does not
possess discernible geographic reporting segments.The Partnership does not believe that its ongoing business is dependent upon a single customer
of the Leasing Agent, although the loss of one or more of the Leasing Agents customers could
have an adverse effect upon its business.
 The following lessees of the Leasing Agent each generated 10% or more of the gross lease
revenue earned on the Partnerships equipment during 2010. Mediterranean Shipping Company S.A.
(MSC) generated approximately 20%, or $243,771 of gross lease revenue, and Hapag-Lloyd AG
generated approximately 13%, or $157,417 of gross lease revenue. During 2009, MSC generated
approximately 16%, or $236,007 of gross lease revenue, and Hapag-Lloyd AG generated
approximately 14%, or $201,975 of gross lease revenue. During 2008, MSC generated
approximately 12%, or $252,228 of gross lease revenue, and Hapag-Lloyd AG generated
approximately 11%, or $235,336 of gross lease revenue.
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (3)
    
    CashAt December 31, 2010, the Partnership held its cash on deposit in an operating bank account.
The Partnership will review its investment strategy for cash balances on a periodic basis.
Cash at December 31, 2010 and 2009 was $849,761 and $650,666, respectively.(4)
    
    Net Lease Receivables Due from Leasing AgentNet lease receivables at December 31, 2010 and 2009 comprised:
 December 31,
    
    
    December 31,2010
    
    
    2009Gross lease receivables
    
    $
    367,051
    
    
    $
    391,120Less:Direct operating payables and accrued expenses
    
    
    77,823
    
    
    
    155,879Base management fees payable
    
    
    18,309
    
    
    
    18,860Reimbursable administrative expenses
    
    
    5,072
    
    
    
    6,873Allowance for doubtful accounts
    
    
    22,884
    
    
    
    27,184Net lease receivables due from Leasing Agent
    
    $
    242,963
    
    
    $
    182,324
 Included within the amount of gross lease receivables are $44,997 and $115,220 in respect of
amounts owed by the Leasing Agent in relation to the disposal of containers for the years ended
December 31, 2010 and 2009, respectively.For the years ended December 31, 2010 and 2009, respectively, $2,001 and $1,761 were recorded
as doubtful debt expense in relation to trade receivables. In addition, $6,301 and $17,402
were written-off for the years ended December 31, 2010 and 2009, respectively.(5)
    
    Direct Financing Lease Receivables Due from Leasing AgentThe Leasing Agent, on behalf of the Partnership, entered into direct financing lease
agreements that included bargain purchase options. The Partnership classified the agreements
as direct financing leases and has recorded direct financing lease receivables. The underlying
equipment had previously been classified as container rental equipment. At December 31, 2010,
the minimum future lease rentals under these direct financing leases, net of unearned income
were:
 Gross Direct
    
    
    Unearned Direct

    
    
    Net Minimum FutureFinancing Lease
    
    
    Financing
    
    
    Direct FinancingReceivable
    
    
    Lease Income
    
    
    Lease Rentals2011
    
    $
    46,668
    
    
    $
    23,191
    
    
    $
    23,4772012
    
    
    35,540
    
    
    
    12,939
    
    
    
    21,6012013
    
    
    24,203
    
    
    
    4,510
    
    
    
    19,6932014
    
    
    5,163
    
    
    
    357
    
    
    
    4,806Total
    
    $
    111,574
    
    
    $
    40,997
    
    
    $
    69,577
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (5)
    
    Direct Financing Lease Receivables Due from Leasing Agent (continued)
 Ageing of past due amounts for finance lease receivables at December 31, 2010 and 2009
comprised:
 December 31,
    
    
    December 31,2010
    
    
    2009Current  30 days
    
    $
    11,118
    
    
    $
    12,05431  60 days
    
    
    422
    
    
    
    83261  120 days
    
    
    25
    
    
    
    18,479Total
    
    $
    11,562
    
    
    $
    31,365
 (6)
    
    Damage Protection PlanThe Leasing Agent offers a service to several customers of the Partnership, whereby the
customer pays an additional rental fee, and in return the Partnership undertakes to cover the
cost of certain damage repairs which may be required when the container is redelivered. The
level of damage cover provided will vary according to the terms of each lease agreement.(7)
    
    Net Lease RevenueNet lease revenue for 2010, 2009 and 2008 comprised:
 2010
    
    
    2009
    
    
    2008Gross lease revenue
    
    $
    1,235,018
    
    
    $
    1,490,298
    
    
    $
    2,185,606Interest income from direct financing lease
    
    
    32,727
    
    
    
    18,716
    
    
    
    1041,267,745
    
    
    
    1,509,014
    
    
    
    2,185,710Less:Direct operating expenses
    
    
    217,394
    
    
    
    423,445
    
    
    
    331,077Base management fees (note 8)
    
    
    87,602
    
    
    
    104,163
    
    
    
    152,007Reimbursable administrative expenses (note 8):Salaries
    
    
    47,440
    
    
    
    60,015
    
    
    
    73,300Other payroll related expenses
    
    
    6,024
    
    
    
    6,316
    
    
    
    9,226General administrative expenses
    
    
    11,981
    
    
    
    14,487
    
    
    
    16,716370,441
    
    
    
    608,426
    
    
    
    582,326Net lease revenue
    
    $
    897,304
    
    
    $
    900,588
    
    
    $
    1,603,384
 Contingent master lease rentals earned on the Partnerships equipment approximated $912,048,
$1,094,028, and $1,697,641 of gross lease revenue, respectively, in the years ended December
31, 2010, 2009 and 2008, respectively.As of December 31, 2010, the minimum lease rentals receivable on the Partnerships equipment in
future years under non-cancelable term operating leases were:
 2011
    
    $
    188,0612012
    
    
    155,1232013
    
    
    143,0252014
    
    
    118,6882015
    
    
    110,218Thereafter
    
    
    302,184Total
    
    $
    1,017,299
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##### Table of Contents



CRONOS GLOBAL INCOME FUND XVI, L.P.
 Notes to Financial Statements
 (8)
    
    Related Party TransactionsCCC and the Leasing Agent are related parties of the Partnership.Base management fees are equal to 7% of the gross lease revenue earned on the Partnerships
equipment. Reimbursable administrative expenses are equal to the costs expended by CCC and its
affiliates for services necessary for the prudent operation of the Partnership pursuant to the
Partnership Agreement. The following compensation was earned by CCC and the Leasing Agent for
the years indicated:
 2010
    
    
    2009
    
    
    2008Base management feesLeasing Agent
    
    $
    87,602
    
    
    $
    104,163
    
    
    $
    152,007Reimbursable administrative expensesCCC
    
    
    9,756
    
    
    
    10,321
    
    
    
    10,308Leasing Agent
    
    
    55,689
    
    
    
    70,497
    
    
    
    88,93465,445
    
    
    
    80,818
    
    
    
    99,242$
    153,047
    
    
    $
    184,981
    
    
    $
    251,249
 The following compensation was payable to CCC and the Leasing Agent at December 31, 2010
and 2009:
 2010
    
    
    2009CCC
    
    $
    1,064
    
    
    $
    938Leasing Agent
    
    
    22,317
    
    
    
    24,795$
    23,381
    
    
    $
    25,733
 (9)
    
    Limited Partners Capital
 Cash distributions made to the limited partners during 2010, 2009 and 2008 were as follows:
 2010
    
    
    2009
    
    
    2008Cash Distribution from Operations
    
    $
    506,557
    
    
    $
    1,086,439
    
    
    $
    1,526,346Cash Distribution from Sales Proceeds
    
    
    1,026,454
    
    
    
    1,179,754
    
    
    
    1,079,777Total Cash Distributions
    
    $
    1,533,011
    
    
    $
    2,266,193
    
    
    $
    2,606,123
 These distributions are used in determining Adjusted Capital Contributions as defined by the
Partnership Agreement.
 The limited partners per unit share of capital at December 31, 2010, 2009 and 2008 was $2.21,
$2.86 and $4.27, respectively. This is calculated by dividing the limited partners capital at
the end of each year by 1,599,667, the total number of outstanding limited partnership units.
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##### Table of Contents



Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure
  
 Item 9A. Controls and Procedures
  
 Item 9A(T). Controls and Procedures
 Evaluation of Disclosure Controls and Procedures
   Report of Management on Internal Control Over Financial Reporting
    
 Item 9B. Other Information
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##### Table of Contents



PART III
 
 Item 10. Directors, Executive Officers and Corporate Governance
  Name
    
    OfficePeter J. Younger
    
    President and Chairman of the Board of Directors of
CCC, and Chief Executive Officer of CCC and Cronos
Holding Company Ltd.Frank P. Vaughan
    
    Executive Vice President, Treasurer, Director of CCC
and Chief Financial Officer of CCC and Cronos Holding
Company Ltd.John Kallas
    
    Vice President, Secretary and Director of CCCTimothy D. May
    
    Vice President and Director of CCCMatthew L. Dowling
    
    Vice President and Director of CCC
 Peter J. Younger
  Frank P. Vaughan
 John Kallas
 Timothy D. May
 Matthew L. Dowling
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##### Table of Contents



Name
    
    TitleFrank P. Vaughan
    
    Director of the Leasing Agent and Executive Vice
President, Chief Financial Officer of Cronos Holding
Company Ltd.John C. Kirby
    
    Director of the Leasing Agent and Executive Vice
President of Cronos Ltd. for the Atlantic RegionTimothy D. May
    
    Director of the Leasing Agent and Vice President of
Cronos Ltd. for the Pacific RegionTimothy W. Courtenay
    
    Director of the Leasing Agent
 Frank P. Vaughan
  John C. Kirby
 Timothy D. May
 Timothy W. Courtenay
 39




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##### Table of Contents



Audit Committee
  Audit Committee Financial Expert
  Code of Ethics
  ir@cronos.com
 Section 16(a) Beneficial Ownership Reporting Compliance
  40




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##### Table of Contents



Item 11. Executive Compensation
    Cash Fees andName
    
    
    Description
    
    Distributions1
    )
    
    CCL
    
    Base management fees  equal to 7% of
gross lease revenue from the leasing of
containers subject to leases whereby the
aggregate rental payments due during the
initial term of the lease are less than
the purchase price of the equipment
subject to the lease pursuant to Section
4.3 of the Limited Partnership Agreement
    
    $
    88,1532
    )
    
    CCC
    
    Reimbursable administrative expenses
equal to the costs expended by CCC and
its affiliates for services necessary to the prudent operation of the Partnership
pursuant to Section 4.4 of the Limited
Partnership Agreement
    
    $
    9,630CCL
    
    
    
    $
    57,6163
    )
    
    CCC
    
    Interest in Fund - 5% of distributions of
distributable cash for any quarter
pursuant to Section 6.1 of the Limited
Partnership Agreement
    
    $
    37,029
 41




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##### Table of Contents



Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder
Matters
         
 Item 13. Certain Relationships and Related Transactions, and Director Independence
             42




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##### Table of Contents



Item 14. Principal Accountant Fees and Services
  Audit Fees
  Audit-Related Fees
  Tax Fees
  All Other Fees
  43




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##### Table of Contents



PART IV
 
 Item 15. Exhibits and Financial Statement Schedules
 Page(1)
    
    Financial StatementsReport of Independent Registered Public Accounting Firm
    
    
    24(2)
    
    The following financial statements of the Partnership are included in Part II, Item 8:Balance Sheets
 as of December 31, 2010 and 2009
    
    
    25Statements of Operations  for the years ended December 31, 2010, 2009 and 2008
    
    
    26Statements of Partners Capital  for the years ended December 31, 2010, 2009 and 2008
    
    
    27Statements of Cash Flows  for the years ended December 31, 2010, 2009 and 2008
    
    
    28Notes to Financial Statements
    
    
    29
  (3)
    
    Exhibits
 ExhibitNo.
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement of the Partnership, 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. 44




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##### Table of Contents



SIGNATURES
  CRONOS GLOBAL INCOME FUND XVI, L.P.By
    Cronos Capital Corp.The General PartnerBy
    /s/ Peter J. YoungerPeter J. YoungerPresident and Chief Executive Officer of
Cronos Capital Corp. (CCC)
Principal Executive Officer of CCC   Signature
    
    Title
    
    Date/s/ Peter J. Younger

Peter J. Younger
    
    President and Chairman of the Board of Directors of
Cronos Capital Corp. (CCC)
(Principal Executive Officer of CCC)
    
    March 16, 2011/s/ Frank P. Vaughan

Frank P. Vaughan
    
    Executive Vice President, Treasurer,
Chief Financial Officer and Director of CCC
(Principal Financial and Accounting Officer of CCC)
    
    March 16, 2011/s/ John Kallas

John Kallas
    
    Vice President, Secretary and Director of CCC
    
    March 16, 2011/s/ Timothy D. May

Timothy D. May
    
    Vice President and Director of CCC
    
    March 16, 2011/s/ Matthew L.
Dowling

Matthew L. Dowling
    
    Vice President and Director of CCC
    
    March 16, 2011




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##### Table of Contents



Exhibit Index
 ExhibitNo.
    
    Description
    
    Method of Filing3(a)
    
    Limited Partnership Agreement of the Partnership, 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.