SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

|    |  |                                                                                                                                     
|--- |  | ------------------------------------------------------------------------------------------------------------------------------------
|[X] |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2001

OR

|      |  |                                                                                                                                                          
|----- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------
|[   ] |  | 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 0-18982

IEA INCOME FUND X, L.P.
(Exact name of registrant as specified in its charter)

|                                                                          |  |                                                
|------------------------------------------------------------------------- |  | -----------------------------------------------
|California
(State or other jurisdiction of
incorporation or organization) |  | 94-3098648
(I.R.S. Employer
Identification No.)

One Front Street, 15th Floor, San Francisco, California 94111
(Address of principal executive offices) (Zip Code)

(415) 677-8990
(Registrants telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.   Yes [X].    No [   ].





---



IEA INCOME FUND X, L.P.

Report on Form 10-Q for the Quarterly Period
Ended June 30, 2001

TABLE OF CONTENTS

|                                |  |                                                                                                |  |     
|------------------------------- |  | ---------------------------------------------------------------------------------------------- |  | ----
|                                |  |                                                                                                |  | PAGE
|                                |  |                                                                                                |  |     
|PART I  FINANCIAL INFORMATION  |  |                                                                                               
|                               
|                               
|                               
|                               
|Item 1.                         |  | Financial Statements                                                                           |  |     
|                               
|                               
|                               
|                               
|                                |  | Balance Sheets  June 30, 2001 (unaudited) and December 31, 2000                               |  | 4   
|                               
|                               
|                               
|                               
|                                |  | Statements of Operations for the three and six months ended June 30, 2001 and 2000 (unaudited) |  | 5   
|                               
|                               
|                               
|                               
|                                |  | Statements of Cash Flows for the six months ended June 30, 2001 and 2000 (unaudited)           |  | 6   
|                               
|                               
|                               
|                               
|                                |  | Notes to Financial Statements (unaudited)                                                      |  | 7   
|                               
|                               
|                               
|                               
|Item 2.                         |  | Managements Discussion and Analysis of Financial Condition and Results of Operations          |  | 11  
|                               
|                               
|                               
|                               
|Item 3.                         |  | Quantitative and Qualitative Disclosures About Market Risk                                     |  | 13  
|                               
|                               
|                               
|                               
|PART II  FINANCIAL INFORMATION |  |                                                                                               
|                               
|                               
|                               
|                               
|Item 6.                         |  | Exhibits and Reports on Form 8-K                                                               |  | 14  



2



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PART I  FINANCIAL INFORMATION

Item 1.    Financial Statements



| |                                                                                                                                                                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Presented herein are the Registrants balance sheets as of June 30, 2001
and December 31, 2000, statements of operations for the three and six
months ended June 30, 2001 and 2000, and statements of cash flows for the
six months ended June 30, 2001 and 2000.

3



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IEA INCOME FUND X, L.P.

Balance Sheets

|                                    |                                                                                                                            |                                |                         |           |             |           |            |              |           |           | 
|----------------------------------- | -------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ----------------------- | --------- | ----------- | --------- | ---------- | ------------ | --------- | --------- | 
|                                    |                                                                                                                            |                                |                         |           | June 30,    |           |            | December 31, |          
|                                    |                                                                                                                            |                                |                         |           | 2001        |           |            | 2000         |          
|                                    |                                                                                                                            |                                |                         |           |             |           |            |              |          
|                                    |                                                                                                                            |                                |                         |           | (Unaudited) |           |            |              |           |          
|Assets                              |                                                                                                                            |                                |                         |           |             |           |            |             
|                                   
|                                   
|                                   
|                                   
|Current assets:                     |                                                                                                                            |                                |                         |           |             |           |            |             
|                                   
|                                   
|                                   
|                                   
|                                    | Cash and cash equivalents, includes $1,405 at June 30, 2001 and
$649,454 at December 31, 2000 in interest-bearing accounts |                                | $                       | 690,499   |             |           | $          | 777,520      |          
|                                   
|                                   
|                                   
|                                   
|                                    | Net lease receivables due from Leasing Company
(notes 1 and 2)                                                             |                                |                         | 113,327   |             |           |            | 178,684      |          
|                                    |                                                                                                                            |                                |                         |           |             |          
|                                    |                                                                                                                            |                                | Total current assets    |           |             | 803,826   |            |              |           | 956,204   | 
|                                    |                                                                                                                            |                                |                         |           |             |          
|Container rental equipment, at cost |                                                                                                                            |                                | 11,024,437              |           |             |           | 12,711,732 |             
|                                   
|                                   
|                                   
|                                   
|                                    | Less accumulated depreciation                                                                                              |                                |                         | 6,925,303 |             |           |            | 7,630,730    |          
|                                    |                                                                                                                            |                                |                         |           |             |          
|                                    |                                                                                                                            | Net container rental equipment |                         |           | 4,099,134   |           |            |              | 5,081,002 |          
|                                    |                                                                                                                            |                                |                         |           |             |          
|                                    |                                                                                                                            |                                | Total assets            |           | $           | 4,902,960 |            |              | $         | 6,037,206 | 
|                                    |                                                                                                                            |                                |                         |           |             |          
|Partners Capital                   |                                                                                                                            |                                |                         |           |             |           |            |             
|                                   
|                                   
|                                   
|                                   
|Partners capital (deficit):        |                                                                                                                            |                                |                         |           |             |           |            |             
|                                   
|                                   
|                                   
|                                   
|                                    | General partner                                                                                                            |                                | $                       | (71,969   | )           |           | $          | (60,627      | )        
|                                   
|                                   
|                                   
|                                   
|                                    | Limited partners                                                                                                           |                                |                         | 4,974,929 |             |           |            | 6,097,833    |          
|                                    |                                                                                                                            |                                |                         |           |             |          
|                                    |                                                                                                                            |                                | Total partners capital |           | $           | 4,902,960 |            |              | $         | 6,037,206 | 
|                                    |                                                                                                                            |                                |                         |           |             |          

The accompanying notes are an integral part of these financial statements.

4



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IEA INCOME FUND X, L.P.

Statements of Operations

(Unaudited)

|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |          |          |   |         |          |         |  
|-------------------------------------------- | ----------------------------------------- | ---------------------- | ------- | ------------------ | ------- | - | ---------------- | ------- | ------- | -------- | -------- | -------- | -------- | - | ------- | -------- | ------- | -
|                                             |                                           |                        |         | Three Months Ended |         |   | Six Months Ended |        
|                                             |                                           |                        |         |                    |         |   |                  |        
|                                             |                                           |                        |         | June 30,           |         |   | June 30,         |         |         | June 30, |          |          | June 30, |  
|                                             |                                           |                        |         | 2001               |         |   | 2000             |         |         | 2001     |          |          | 2000     |  
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |          |          |  
|Net lease revenue (notes 1 and 3)            |                                           | $                      | 196,814 |                    |         | $ | 263,594          |         |         | $        | 428,012  |          |          | $ | 507,130 |         
|                                            
|                                            
|                                            
|                                            
|Other operating expenses:                    |                                           |                        |         |                    |         |   |                  |         |         |          |          |          |          |   |         |         
|                                            
|                                            
|                                            
|                                            
|                                             | Depreciation                              |                        |         | 170,791            |         |   |                  | 216,105 |         |          |          | 348,859  |          |   |         | 437,909  |        
|                                            
|                                            
|                                            
|                                            
|                                             | Other general and administrative expenses |                        |         | 19,537             |         |   |                  | 18,184  |         |          |          | 35,750   |          |   |         | 31,708   |        
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |         
|                                             |                                           |                        | 190,328 |                    |         |   | 234,289          |         |         |          | 384,609  |          |          |   | 469,617 |         
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |         
|                                             |                                           | Income from operations |         |                    | 6,486   |   |                  |         | 29,305  |          |          |          | 43,403   |   |         |          | 37,513  |  
|                                            
|                                            
|                                            
|                                            
|Other income (loss):                         |                                           |                        |         |                    |         |   |                  |         |         |          |          |          |          |   |         |         
|                                            
|                                            
|                                            
|                                            
|                                             | Interest income                           |                        |         | 6,618              |         |   |                  | 5,311   |         |          |          | 15,203   |          |   |         | 9,164    |        
|                                            
|                                            
|                                            
|                                            
|                                             | Net loss on disposal of equipment         |                        |         | (91,431            | )       |   |                  | (56,581 | )       |          |          | (179,087 | )        |   |         | (107,167 | )      
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |         
|                                             |                                           |                        | (84,813 | )                  |         |   | (51,270          | )       |         |          | (163,884 | )        |          |   | (98,003 | )       
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |         
|                                             |                                           | Net loss               |         | $                  | (78,327 | ) |                  | $       | (21,965 | )        |          | $        | (120,481 | ) |         | $        | (60,490 | )
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |         
|Allocation of net loss:                      |                                           |                        |         |                    |         |   |                  |         |         |          |          |          |          |   |         |         
|                                            
|                                            
|                                            
|                                            
|                                             | General partner                           |                        | $       | 8,504              |         |   | $                | 8,500   |         |          | $        | 17,368   |          |   | $       | 17,410   |        
|                                            
|                                            
|                                            
|                                            
|                                             | Limited partners                          |                        |         | (86,831            | )       |   |                  | (30,465 | )       |          |          | (137,849 | )        |   |         | (77,900  | )      
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |         
|                                             |                                           | $                      | (78,327 | )                  |         | $ | (21,965          | )       |         | $        | (120,481 | )        |          | $ | (60,490 | )       
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |         
|Limited partners per unit share of net loss |                                           | $                      | (2.21   | )                  |         | $ | (0.78            | )       |         | $        | (3.52    | )        |          | $ | (1.99   | )       
|                                             |                                           |                        |         |                    |         |   |                  |         |         |          |          |         

The accompanying notes are an integral part of these financial statements.

5



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IEA INCOME FUND X, L.P.

Statements of Cash Flows

(Unaudited)

|                                                     |                                                  |   |                  |            |   |          |         |          |  
|---------------------------------------------------- | ------------------------------------------------ | - | ---------------- | ---------- | - | -------- | ------- | -------- | -
|                                                     |                                                  |   | Six Months Ended |           
|                                                     |                                                  |   |                  |           
|                                                     |                                                  |   | June 30,         |            |   | June 30, |        
|                                                     |                                                  |   | 2001             |            |   | 2000     |        
|                                                     |                                                  |   |                  |            |   |          |        
|Net cash provided by operating activities            |                                                  | $ | 445,735          |            |   | $        | 553,948 |         
|                                                    
|                                                    
|                                                    
|                                                    
|Cash flows provided by investing activities:         |                                                  |   |                  |            |   |          |         |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from sale of container rental equipment |   |                  | 481,009    |   |          |         | 225,141  |  
|                                                    
|                                                    
|                                                    
|                                                    
|Cash flows used in financing activities:             |                                                  |   |                  |            |   |          |         |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Distribution to partners                         |   |                  | (1,013,765 | ) |          |         | (662,815 | )
|                                                     |                                                  |   |                  |            |   |         
|Net (decrease) increase in cash and cash equivalents |                                                  |   | (87,021          | )          |   |          | 116,274 |         
|                                                    
|                                                    
|                                                    
|                                                    
|Cash and cash equivalents at January 1               |                                                  |   | 777,520          |            |   |          | 356,306 |         
|                                                     |                                                  |   |                  |            |   |         
|Cash and cash equivalents at June 30                 |                                                  | $ | 690,499          |            |   | $        | 472,580 |         
|                                                     |                                                  |   |                  |            |   |         

The accompanying notes are an integral part of these financial statements.

6



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IEA INCOME FUND X, L.P.

Notes to Unaudited Financial Statements



|(1) |  | Summary of Significant Accounting Policies
|--- |  | ------------------------------------------



| | (a) |  | Nature of Operations
| | --- |  | --------------------



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | IEA Income Fund X, L.P. (the Partnership) is a limited partnership
organized under the laws of the State of California on July 18, 1989 for
the purpose of owning and leasing marine cargo containers worldwide to
ocean carriers. To this extent, the Partnerships operations are subject
to the fluctuations of world economic and political conditions. Such
factors may affect the pattern and levels of world trade. The
Partnership believes that the profitability of, and risks associated
with, leases to foreign customers is generally the same as those of
leases to domestic customers. The Partnerships leases generally require
all payments to be made in United States currency.
|
| | Cronos Capital Corp. (CCC) is the general partner and, with its
affiliate Cronos Containers Limited (the Leasing Company), manages
the business of the Partnership. CCC and the Leasing Company also
manage the container leasing business for other partnerships
affiliated with the general partner. The Partnership shall continue
until December 31, 2010, unless sooner terminated upon the
occurrence of certain events.                                                                                                                                                                                                                                                                   
|
| | The Partnership commenced operations on January 17, 1990, when the
minimum subscription proceeds of $1,000,000 were obtained. The
Partnership offered 40,000 units of limited partnership interest at $500
per unit, or $20,000,000. The offering terminated on October 30, 1990,
at which time 39,206 limited partnership units had been sold.                                                                                                                                                                                                                                                                                                                                                      



| | (b) |  | Leasing Company and Leasing Agent Agreement
| | --- |  | -------------------------------------------



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Pursuant to the Limited Partnership Agreement of the Partnership,
all authority to administer the business of the Partnership is vested in
CCC. CCC has entered into a Leasing Agent Agreement whereby the Leasing
Company has the responsibility to manage the leasing operations of all
equipment owned by the Partnership. Pursuant to the Agreement, the
Leasing Company is responsible for leasing, managing and re-leasing the
Partnerships containers to ocean carriers, 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 Company to use the
containers owned by the Partnership, together with other containers owned
or managed by the Leasing Company and its affiliates, as part of a single
fleet operated without regard to ownership. Since the Leasing Agent
Agreement meets the definition of an operating lease in Statement of
Financial Accounting Standards (SFAS) No. 13, it is accounted for as a
lease under which the Partnership is lessor and the Leasing Company is
lessee.                     
|
| | The Leasing Agent Agreement generally provides that the Leasing
Company will make payments to the Partnership based upon rentals
collected from ocean carriers after deducting direct operating expenses
and management fees to CCC. The Leasing Company leases containers to
ocean carriers, generally under operating leases which are either master
leases or term leases (mostly one to five years). 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 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. Most containers are leased to ocean carriers
under master leases; leasing agreements with fixed payment terms are not
material to the financial statements. Since there are no material
minimum lease rentals, no disclosure of minimum lease rentals is provided
in these financial statements.

(Continued)

7



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IEA INCOME FUND X, L.P.

Notes to Unaudited Financial Statements



| | (c) |  | Basis of Accounting
| | --- |  | -------------------



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Partnership utilizes the accrual method of accounting. Net
lease revenue is recorded by the Partnership in each period based upon
its leasing agent agreement with the Leasing Company. Net lease revenue
is generally dependent upon operating lease rentals from operating lease
agreements between the Leasing Company and its various lessees, less
direct operating expenses and management fees due in respect of the
containers specified in each operating lease agreement.



| | (d) |  | Depreciation of Rental Equipment
| | --- |  | --------------------------------



| |                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Effective June 1, 2001, the estimated depreciable life has been
changed from a twelve-year life to a fifteen-year life and the estimated
salvage value has been changed from 30% to 10% of the original equipment
cost. The effect of these depreciation changes is a decrease to net
income of approximately $4,700 from June 1 to June 30, 2001.



| | (e) |  | Financial Statement Presentation
| | --- |  | --------------------------------



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | These financial statements have been prepared without audit.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting procedures have been omitted. It is suggested that these
financial statements be read in conjunction with the financial statements
and accompanying notes in the Partnerships latest annual report on Form 10-K.                                                       
|
| | The financial statements are prepared in conformity with accounting
principles generally accepted in the United States (GAAP), which 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.
Actual results could differ from those estimates.
|
| | The interim financial statements presented herewith reflect all
adjustments of a normal recurring nature which are, in the opinion of
management, necessary to a fair statement of the financial condition and
results of operations for the interim periods presented. The results of
operations for such interim periods are not necessarily indicative of the
results to be expected for the full year.                                                                            

(Continued)

8



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IEA INCOME FUND X, L.P.

Notes to Unaudited Financial Statements



| | (2) |  | Net Lease Receivables Due from Leasing Company
| | --- |  | ----------------------------------------------



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Net lease receivables due from the Leasing Company are determined by
deducting direct operating payables and accrued expenses, base management
fees payable, and reimbursed administrative expenses payable to CCC and its
affiliates from the rental billings earned by the Leasing Company under
operating leases to ocean carriers for the containers owned by the
Partnership. Net lease receivables at June 30, 2001 and December 31, 2000
were as follows:

|                                                |  |          |         |  |              |   |         | 
|----------------------------------------------- |  | -------- | ------- |  | ------------ | - | ------- | 
|                                                |  | June 30, |         |  | December 31, |  
|                                                |  | 2001     |         |  | 2000         |  
|                                                |  |          |         |  |              |  
|Gross lease receivables                         |  | $        | 389,628 |  |              | $ | 517,745 | 
|                                               
|                                               
|                                               
|                                               
|Less:                                           |  |          |         |  |              |   |         | 
|                                               
|                                               
|                                               
|                                               
|Direct: operating payables and accrued expenses |  |          | 174,689 |  |              |   | 165,239 | 
|                                               
|                                               
|                                               
|                                               
|Damage protection reserve                       |  |          | 24,344  |  |              |   | 47,396  | 
|                                               
|                                               
|                                               
|                                               
|Base management fees payable                    |  |          | 26,769  |  |              |   | 45,166  | 
|                                               
|                                               
|                                               
|                                               
|Reimbursed administrative expenses              |  |          | 12,065  |  |              |   | 18,447  | 
|                                               
|                                               
|                                               
|                                               
|Allowance for doubtful accounts                 |  |          | 38,434  |  |              |   | 62,813  | 
|                                                |  |          |         |  |              |  
|Net lease receivables                           |  | $        | 113,327 |  |              | $ | 178,684 | 
|                                                |  |          |         |  |              |  



| | (3) |  | Net Lease Revenue
| | --- |  | -----------------



| |                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Net lease revenue is determined by deducting direct operating expenses,
base management fees and reimbursed administrative expenses to CCC from the
rental revenue earned by the Leasing Company under operating leases to ocean
carriers for the containers owned by the Partnership. Net lease revenue for
each of the three and six-month periods ended June 30, 2001 and 2000 was as
follows:

|                                    |  |                    |         |  |                  |   |         |          |  |   |          |  |  |   |         | 
|----------------------------------- |  | ------------------ | ------- |  | ---------------- | - | ------- | -------- |  | - | -------- |  |  | - | ------- | 
|                                    |  | Three Months Ended |         |  | Six Months Ended |  
|                                    |  |                    |         |  |                  |  
|                                    |  | June 30,           |         |  | June 30,         |   |         | June 30, |  |   | June 30, | 
|                                    |  | 2001               |         |  | 2000             |   |         | 2001     |  |   | 2000     | 
|                                    |  |                    |         |  |                  |   |         |          |  |   |          | 
|Rental revenue (note 4)             |  | $                  | 284,410 |  |                  | $ | 433,998 |          |  | $ | 612,817  |  |  | $ | 871,756 | 
|                                   
|                                   
|                                   
|                                   
|Less:                               |  |                    |         |  |                  |   |         |          |  |   |          |  |  |   |         | 
|                                   
|                                   
|                                   
|                                   
|Rental equipment operating expenses |  |                    | 54,247  |  |                  |   | 113,650 |          |  |   | 112,402  |  |  |   | 249,147 | 
|                                   
|                                   
|                                   
|                                   
|Base management fees                |  |                    | 19,608  |  |                  |   | 28,767  |          |  |   | 42,562   |  |  |   | 56,802  | 
|                                   
|                                   
|                                   
|                                   
|Reimbursed administrative expenses  |  |                    | 13,741  |  |                  |   | 27,987  |          |  |   | 29,841   |  |  |   | 58,677  | 
|                                    |  |                    |         |  |                  |   |         |          |  |   |          | 
|                                    |  | $                  | 196,814 |  |                  | $ | 263,594 |          |  | $ | 428,012  |  |  | $ | 507,130 | 
|                                    |  |                    |         |  |                  |   |         |          |  |   |          | 



| | (4) |  | Operating Segment
| | --- |  | -----------------



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Financial Accounting Standards Board has issued SFAS No. 131,
Disclosures about Segments of an Enterprise and Related Information, which
changes the way public business enterprises report financial and descriptive
information about reportable operating segments. An 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.

(Continued)

9



---



IEA INCOME FUND X, L.P.

Notes to Unaudited Financial Statements



| | (4) |  | Operating Segment (Continued)
| | --- |  | -----------------------------



| |                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Management operates the Partnerships container fleet as a homogenous unit
and has determined, after considering the requirements of SFAS No. 131, that
as such it has a single reportable operating segment. The Partnership
derives its revenues from leasing marine dry cargo containers. As of June
30, 2001, the Partnership operated 2,537 twenty-foot, 722 forty-foot and 69
forty-foot high-cube marine dry cargo containers.
|
| | 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, it is
impracticable to provide the geographic area information required by SFAS
No. 131.                                                                                                                                                                                         

******

10



---



Item 2.    Managements Discussion and Analysis of Financial Condition and Results of Operations

It is suggested that the following discussion be read in conjunction with the
Registrants most recent annual report on Form 10-K.

General

Pursuant to the Limited Partnership Agreement of the Registrant, all authority
to administer the business of the Registrant is vested in CCC. CCC has entered
into a Leasing Agent Agreement whereby the Leasing Company has the
responsibility to manage the leasing operations of all equipment owned by the
Registrant. Pursuant to the Agreement, the Leasing Company is responsible for
leasing, managing and re-leasing the Registrants containers to ocean carriers,
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
Company to use the containers owned by the Registrant, together with other
containers owned or managed by the Leasing Company and its affiliates, as part
of a single fleet operated without regard to ownership. The following chart
summarizes the composition of the Registrants fleet (based on container type)
at June 30, 2001. At June 30, 2001, 63% of the original equipment remained in
the Registrants fleet, as compared to 73% at December 31, 2000.

|                     |                       |          |     |         |       |  |         |     |     |           |    |         |    | 
|-------------------- | --------------------- | -------- | --- | ------- | ----- |  | ------- | --- | --- | --------- | -- | ------- | -- | 
|                     |                       |          |     |         |       |  |         |     |     |           |    | 40-Foot |   
|                     |                       |          |     | 20-Foot |       |  | 40-Foot |     |     | High-Cube |   
|                     |                       |          |     |         |       |  |         |     |     |           |   
|Containers on lease: |                       |          |     |         |       |  |         |     |     |           |    |        
|                    
|                    
|                    
|                    
|                     | Term leases           |          |     | 358     |       |  |         | 181 |     |           |    | 4       |   
|                    
|                    
|                    
|                    
|                     | Master leases         |          |     | 1,606   |       |  |         | 328 |     |           |    | 50      |   
|                     |                       |          |     |         |       |  |         |     |    
|                     |                       | Subtotal |     |         | 1,964 |  |         |     | 509 |           |    |         | 54 | 
|                    
|                    
|                    
|                    
|Containers off lease |                       |          | 573 |         |       |  | 213     |     |     |           | 15 |        
|                     |                       |          |     |         |       |  |         |     |    
|                     | Total container fleet |          |     | 2,537   |       |  |         | 722 |     |           |    | 69      |   
|                     |                       |          |     |         |       |  |         |     |    

|                                 |                |  |         |       |  |         |     |    |           |  |       |     |  |  |       |    |   |   |         |    |  |  |     |    |  
|-------------------------------- | -------------- |  | ------- | ----- |  | ------- | --- | -- | --------- |  | ----- | --- |  |  | ----- | -- | - | - | ------- | -- |  |  | --- | -- | -
|                                 |                |  |         |       |  |         |     |    |           |  |       |     |  |  |       |    |   |   | 40-Foot |   
|                                 |                |  | 20-Foot |       |  | 40-Foot |     |    | High-Cube | 
|                                 |                |  |         |       |  |         |     |    |           | 
|                                 |                |  | Units   |       |  | %       |     |    | Units     |  |       | %   |  |  | Units |    |   | % |        
|                                 |                |  |         |       |  |         |     |    |           |  |       |     |  |  |       |    |   |   |        
|Total purchases                  |                |  | 4,000   |       |  |         | 100 | %  |           |  | 1,150 |     |  |  | 100   | %  |   |   | 100     |    |  |  | 100 | % 
|                                
|                                
|                                
|                                
|                                 | Less disposals |  |         | 1,463 |  |         |     | 37 | %         |  |       | 428 |  |  |       | 37 | % |   |         | 31 |  |  |     | 31 | %
|                                 |                |  |         |       |  |         |     |    |           |  |       |     |  |  |       |    |   |  
|Remaining fleet at June 30, 2001 |                |  | 2,537   |       |  |         | 63  | %  |           |  | 722   |     |  |  | 63    | %  |   |   | 69      |    |  |  | 69  | % 
|                                 |                |  |         |       |  |         |     |    |           |  |       |     |  |  |       |    |   |  

In line with the slowdown in worldwide economic growth, demand for dry cargo
containers decreased in the first six months of 2001, resulting in a decline of
the container leasing industrys utilization rates to 1999 levels.
Transpacific trade, of which a large proportion of the cargo consists of
technology related goods, has been largely affected by the slowdown of the US
economy. The strength of the US dollar continues to make US goods more
expensive and uncompetitive within Asia. For the first time in many years, the
aggregate GDP growth rates of the United States, Europe, and Japan have
decelerated, contributing to lower utilization rates and higher container
inventories throughout the world. Container imbalances for all trade routes
involving Asia are expected to continue throughout the remainder of the year.
As a result of these increasing world-wide container inventories, the
production of new containers has slowed. Although a slowdown of new container
production could have both positive short and long term effects for the
container leasing industry, a reduction in new containers will not have a
significant impact without an easing of current market constraints and a
strengthening of the worlds economies. In response to the foregoing, the
Leasing Company continues to implement a number of marketing initiatives which
are designed to target identified leasing opportunities and enhance inventory
management of the Registrants fleet.

(Continued)

11



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The Registrants average fleet size and utilization rates for the three and
six-month periods ended June 30, 2001 and June 30, 2000 were as follows:

|                                                                    |  |                    |       |   |                  |  |       |          |  |  |          |   |  |  |       |  
|------------------------------------------------------------------- |  | ------------------ | ----- | - | ---------------- |  | ----- | -------- |  |  | -------- | - |  |  | ----- | -
|                                                                    |  | Three Months Ended |       |   | Six Months Ended | 
|                                                                    |  |                    |       |   |                  | 
|                                                                    |  | June 30,           |       |   | June 30,         |  |       | June 30, |  |  | June 30, |  
|                                                                    |  | 2001               |       |   | 2000             |  |       | 2001     |  |  | 2000     |  
|                                                                    |  |                    |       |   |                  |  |       |          |  |  |          |  
|Average fleet size
(measured in
twenty-foot
equivalent units
(TEU)) |  |                    | 4,279 |   |                  |  | 5,491 |          |  |  | 4,436    |   |  |  | 5,602 |  
|                                                                   
|                                                                   
|                                                                   
|                                                                   
|Average Utilization                                                 |  |                    | 77    | % |                  |  | 81    | %        |  |  | 78       | % |  |  | 80    | %

Average per-diem rental rates decreased approximately 10% and 7%, when compared
to the same three and six-month periods in the prior year, respectively.

Three Months Ended June 30, 2001 Compared to the Three Months Ended June 30,
2000

Income from operationsfor the three months ended June 30, 2001 was $6,486,
compared to $29,305 during the corresponding period of 2000. The decrease was
primarily due to a $66,780 decrease in net lease revenue, partially offset by a
$45,314 decline in depreciation expense.

Net lease revenueof $196,814 for the three months ended June 30, 2001 was
$66,780, or 25% lower than in the corresponding period of 2000. The decrease
was due to a $149,588, or 35% decline in gross rental revenue (a component of
net lease revenue) from the same period in 2000. Gross rental revenue was
impacted by the Registrants smaller fleet size, lower per-diem rental rates,
and lower utilization rates. Other components of net lease revenue, including
rental equipment operating expenses, management fees, and reimbursed
administrative expenses were lower by a combined $82,808 when compared to the
corresponding period in 2000, and partially offset the decline in gross lease
revenue. Contributing to the decline in direct operating expenses were
declines in handling, repair and maintenance expenses, and the provision for
doubtful accounts.

Depreciation expenseof $170,791 for the three months ending June 30, 2001, was
$45,314 lower than the same period in 2000. Effective June 1, 2001, the
Registrant changed the estimated life of its rental container equipment from as
estimated 12 year life to a 15 year life, and its estimated salvage value from
30% to 10% of original equipment cost. The effect of these changes was an
increase to depreciation expense of approximately $4,700, since June 1, 2001.

Other general and administrative expensesincreased to $19,537 in the second
quarter of 2001, from $18,184 in the corresponding period of 2000, representing
an increase of $1,353. Contributing to this increase were professional fees
and costs related to investor communications.

Net loss on disposal of equipmentwas a result of the Registrant disposing of
264 containers during the three-month period ended June 30, 2001 as compared to
138 containers during the same period in 2000. These disposals resulted in a
loss of $91,431 for the three-month period ended June 30, 2001, as compared to
a loss of $56,581 for the three-month period ended June 30, 2000. The
Registrant believes that the net loss on container disposals in the three-month
period ended June 30, 2001 was a result of various factors including the age,
condition, suitability for continued leasing, as well as the geographical
location of the containers when disposed. These factors will continue to
influence the decision to repair or dispose of a container when it is returned
by a lessee, as well as the amount of sales proceeds received and the related
gain or loss on container disposals. The level of the Registrants container
disposals in subsequent periods will also contribute to fluctuations in the net
gain or loss on disposals. As a result of current market conditions, the
Registrant will monitor the carrying value of its containers to determine if
they have been permanently impaired.

Six Months Ended June 30, 2001 Compared to the Six Months Ended June 30, 2000

Income from operationsfor the six-month period ended June 30, 2001 was
$43,403, compared to $37,513 during the corresponding period of 2000. The
increase was primarily due to a $89,050 decline in depreciation expense,
partially offset by the decrease in net lease revenue.

(Continued)

12



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Net lease revenueof $428,012 for the six-month period ended June 30, 2001 was
$79,118, or 16% lower than in the corresponding period of 2000. The decrease
was due to a $258,939, or 30% decline in gross rental revenue (a component of
net lease revenue) from the same period in 2000. Gross rental revenue was
impacted by the Registrants smaller fleet size, lower per-diem rental rates,
and lower utilization rates. Other components of net lease revenue, including
rental equipment operating expenses, management fees, and reimbursed
administrative expenses were lower by a combined $179,821 when compared to the
corresponding period in 2000, and partially offset the decline in gross lease
revenue. Contributing to the decline in direct operating expenses were
declines in repair and maintenance expenses and the provision for doubtful
accounts.

Depreciation expenseof $348,859 for the six-month period ending June 30, 2001
was $89,050 lower than the same period in 2000.

Other general and administrative expensesincreased to $35,750 during the
six-month period ended June 30, 2001, from $31,708 in the corresponding period
of 2000, representing an increase of $4,042. Contributing to this increase
were professional fees and costs related to investor communications.

Net loss on disposal of equipmentwas a result of the Registrant disposing of
523 containers during the first six months of 2001, as compared to 269
containers during the first six months of 2000. These disposals resulted in a
loss of $179,087 for the six-month period ended June 30, 2001, as compared to a
loss of $107,167 for the six-month period ended June 30, 2000.

Liquidity and Capital Resources

Cash from Operating Activities:Net cash provided by operating activities was
$445,735 and $553,948 during the first six months of 2001 and 2000,
respectively. The net cash generated in 2001 included earnings from operations,
and $75,416 in net lease receivables due from the Leasing Company. The net
cash generated in 2000 primarily reflected earnings from operations.

Cash from Investing Activities:Net cash provided by investing activities was
$481,009 and $225,141 in the first six months of 2001 and 2000, respectively.
These amounts represent sales proceeds generated from the sale of container
equipment.

Cash from Financing Activities:Net cash used in financing activities was
$1,013,765 during the first six months of 2001 compared to $662,815 in the
corresponding period of 2000. These amounts represent distributions to the
Registrants general and limited partners, which increased due to cash
collections and sales proceeds generated from the sale of container equipment.
The Registrants continuing container disposals, as well as current market
conditions, should produce lower operating results and, consequently, lower
distributions to its partners in subsequent periods. Sales proceeds
distributed to its partners may fluctuate in subsequent periods, reflecting the
level of container disposals.

Capital Resources

Aside from the initial working capital reserve retained from the gross
subscription proceeds (equal to approximately 1% of such proceeds), the
Registrant relied primarily on container rental receipts to generate
distributions to its general and limited partners, as well as to finance
current operating needs. No credit lines are maintained to finance working
capital.

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

Exchange rate risk:Substantially all of the Registrants revenues are billed
and paid in US dollars and a significant portion of costs are billed and paid
in US dollars. Of the remaining costs, the majority are individually small,
unpredictable and incurred in various denominations and thus are not suitable
for cost effective hedging. From time to time, the Leasing Company hedges a
portion of the expenses that are predictable and are principally in UK pounds
sterling. As exchange rates are outside of the control of the Company, there
can be no assurance that such fluctuations will not adversely effect its
results of operations and financial condition.

13



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PART II  OTHER INFORMATION

Item 6.       Exhibits and Reports on Form 8-K



| | (a) |  | Exhibits
| | --- |  | --------

|        |  |                                                                                              |  |                 
|------- |  | -------------------------------------------------------------------------------------------- |  | ----------------
|Exhibit |  |                                                                                              |  |                 
|No.     |  | Description                                                                                  |  | Method of Filing
|        |  |                                                                                              |  |                 
|3(a)    |  | Limited Partnership Agreement of the Registrant, amended
and restated as of November 7, 1989 |  | *               
|       
|       
|       
|       
|3(b)    |  | Certificate of Limited Partnership of the Registrant                                         |  | **              



| | (b) |  | Reports on Form 8-K
| | --- |  | -------------------



| |  | No reports on Form 8-K were filed by the Registrant during the quarter ended
June 30, 2001.
| |  | -------------------------------------------------------------------------------------------



---

|*  |  | Incorporated by reference to Exhibit A to the Prospectus of the
Registrant dated November 7, 1989, included as part of Registration
Statement on Form S-1 (No. 33-30245)
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|  
|  
|  
|** |  | Incorporated by reference to Exhibit 3.2 to the Registration Statement on
Form S-1 (No. 33-30245)                                                                         

14



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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Report to be signed on its behalf by the
undersigned thereunto duly authorized.

| |  |    |  |                                                                                                                                                   
| |  | -- |  | --------------------------------------------------------------------------------------------------------------------------------------------------
| |  |    |  | IEA INCOME FUND X, L.P.                                                                                                                           
|
|
|
|
| |  | By |  | Cronos Capital Corp.
The General Partner                                                                                                          
|
|
|
|
|
|
| |  | By |  | /s/ Dennis J. Tietz
Dennis J. Tietz
President and Director of Cronos Capital Corp. (CCC)
Principal Executive Officer of CCC                     
|
|
|
|
|
|
| |  | By |  | /s/ John Kallas
John Kallas
Chief Financial Officer and
Director of Cronos Capital Corp. (CCC)
Principal Financial and Accounting Officer of CCC

Date: August 14, 2001

15



---



EXHIBIT INDEX

|        |  |                                                                                              |  |                 
|------- |  | -------------------------------------------------------------------------------------------- |  | ----------------
|Exhibit |  |                                                                                              |  |                 
|No.     |  | Description                                                                                  |  | Method of Filing
|        |  |                                                                                              |  |                 
|3(a)    |  | Limited Partnership Agreement of the Registrant, amended
and restated as of November 7, 1989 |  | *               
|       
|       
|       
|       
|3(b)    |  | Certificate of Limited Partnership of the Registrant                                         |  | **              



---

|*  |  | Incorporated by reference to Exhibit A to the Prospectus of the
Registrant dated November 7, 1989, included as part of Registration
Statement on Form S-1 (No. 33-30245)
|-- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|  
|  
|  
|  
|** |  | Incorporated by reference to Exhibit 3.2 to the Registration Statement on
Form S-1 (No. 33-30245)