TAL International 10-Q 10 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 04, 2016
Document and Entity Information
Entity Registrant Name	TAL International Group, Inc.
Entity Central Index Key	1,331,745
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		33,395,291
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS:
Leasing equipment, net of accumulated depreciation and allowances of $1,249,506 and $1,218,826	$ 3,899,376	$ 3,908,292
Net investment in finance leases, net of allowances of $710 and $805	169,241	177,737
Equipment held for sale	84,971	74,899
Revenue earning assets	4,153,588	4,160,928
Unrestricted cash and cash equivalents	73,680	58,907
Restricted cash	28,987	30,302
Accounts receivable, net of allowances of $1,062 and $1,314	91,228	95,709
Goodwill	74,523	74,523
Other assets	19,513	13,620
Fair value of derivative instruments	0	87
Total assets	4,441,519	4,434,076
LIABILITIES AND STOCKHOLDERS' EQUITY:
Equipment purchases payable	40,210	20,009
Fair value of derivative instruments	52,921	20,348
Accounts payable and other accrued expenses	53,006	56,096
Net deferred income tax liability	450,176	456,123
Debt, net of unamortized deferred financing costs of $24,437 and $25,245	3,208,409	3,216,488
Total liabilities	3,804,722	3,769,064
Stockholders' equity:
Preferred stock, $0.001 par value, 500,000 shares authorized, none issued	0	0
Common stock, $0.001 par value, 100,000,000 shares authorized, 37,307,134 and 37,167,134 shares issued respectively	37	37
Treasury stock, at cost, 3,911,843 shares	(75,310)	(75,310)
Additional paid-in capital	512,052	511,297
Accumulated earnings	239,594	248,183
Accumulated other comprehensive (loss)	(39,576)	(19,195)
Total stockholders' equity	636,797	665,012
Total liabilities and stockholders' equity	$ 4,441,519	$ 4,434,076

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Leasing equipment, accumulated depreciation and allowances	$ 1,249,506	$ 1,218,826
Net investment in finance leases, allowances	710	805
Accounts receivable, allowances	1,062	1,314
Deferred financing costs	$ 24,437	$ 25,245
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	500,000	500,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	37,307,134	37,167,134
Treasury stock, shares (in shares)	3,911,843	3,911,843

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Leasing revenues:
Operating leases	$ 144,898	$ 144,568
Finance leases	3,107	4,024
Other Revenue	1,218	383
Total leasing revenues	149,223	148,975
Equipment trading revenues	11,292	16,845
Equipment trading expenses	(11,265)	(15,431)
Trading margin	27	1,414
Net (loss) on sale of leasing equipment	(13,930)	(1,449)
Operating expenses:
Depreciation and amortization	63,226	58,384
Direct operating expenses	17,959	8,822
Administrative expenses	12,952	11,982
(Reversal) for doubtful accounts	(309)	(23)
Total operating expenses	93,828	79,165
Operating income	41,492	69,775
Other expenses:
Interest and debt expense	29,151	29,243
Write-off of deferred financing costs	363	0
Net loss on interest rate swaps	813	716
Total other expenses	30,327	29,959
Income before income taxes	11,165	39,816
Income tax expense	4,743	14,059
Net income	$ 6,422	$ 25,757
Net income per common share—Basic (in dollars per share)	$ 0.19	$ 0.78
Net income per common share—Diluted (in dollars per share)	0.19	0.78
Cash dividends paid per common share (in dollars per share)	$ 0.45	$ 0.72
Weighted average number of common shares outstanding—Basic (in shares)	32,987	32,861
Dilutive stock options and restricted stock (in shares)	22	149
Weighted average number of common shares outstanding—Diluted (in shares)	33,009	33,010

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 6,422	$ 25,757
Other comprehensive income (loss):
Change in fair value of derivative instruments designated as cash flow hedges (net of income tax effect of $(12,984) and $(8,611))	(23,040)	(15,838)
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges (net of income tax effect of $1,775 and $1,719)	2,403	3,152
Amortization of net loss on terminated derivative instruments designated as cash flow hedges (net of income tax effect of $206 and $242)	379	445
Foreign currency translation adjustment	(123)	(157)
Other comprehensive (loss), net of tax	(20,381)	(12,398)
Comprehensive (loss) income	$ (13,959)	$ 13,359

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Comprehensive Income [Abstract]
Change in fair value derivative instruments designated as cash flow hedges, income tax effect	$ (12,984)	$ (8,611)
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges, income tax effect	1,775	1,719
Amortization of loss on terminated derivative instruments designated as cash flow hedges, income tax effect	$ 206	$ 242

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income		$ 6,422	$ 25,757
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		63,226	58,384
Amortization of deferred financing costs		1,709	1,979
Amortization of net loss on terminated derivative instruments designated as cash flow hedges		585	687
Amortization of lease intangibles		1,567	240
Net loss on sale of leasing equipment		13,930	1,449
Net loss on interest rate swaps		813	716
Write-off of deferred financing costs		363	0
Deferred income taxes		4,743	14,059
Stock compensation charge		1,067	2,002
Changes in operating assets and liabilities:
Net equipment sold (purchased) for resale activity		597	(10,554)
Other changes in operating assets and liabilities		514	(3,471)
Net cash provided by operating activities		95,536	91,248
Cash flows from investing activities:
Purchases of leasing equipment and investments in finance leases	[1]	(97,141)	(258,552)
Proceeds from sale of equipment, net of selling costs		29,686	37,661
Cash collections on finance lease receivables, net of income earned		10,463	10,474
Other		(73)	(74)
Net cash (used in) investing activities		(57,065)	(210,491)
Cash flows from financing activities:
Purchases of treasury stock		0	(4,446)
Financing fees paid under debt facilities		(1,264)	(624)
Borrowings under debt facilities		140,000	230,000
Payments under debt facilities and capital lease obligations		(148,905)	(90,061)
Decrease in restricted cash		1,315	607
Common stock dividends paid		(14,844)	(23,656)
Net cash (used in) provided by financing activities		(23,698)	111,820
Net increase (decrease) in unrestricted cash and cash equivalents		14,773	(7,423)
Unrestricted cash and cash equivalents, beginning of period		58,907	79,132
Unrestricted cash and cash equivalents, end of period		73,680	71,709
Supplemental non-cash investing activities:
Equipment purchases payable		$ 40,210	$ 67,380
[1]	Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale.

Description of the Business, Ba

Description of the Business, Basis of Presentation and Recently Adopted Accounting Pronouncements	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of the Business, Basis of Presentation and Recently Adopted Accounting Pronouncements	Description of the Business, Basis of Presentation and Recently Adopted Accounting Pronouncements A. Description of the Business TAL International Group, Inc. ("TAL" or the "Company") leases intermodal transportation equipment, primarily maritime containers, and provides maritime container management services, through a worldwide network of offices, third party depots and other facilities. The Company operates in both international and domestic markets. The majority of the Company's business is derived from leasing its containers to shipping line customers through a variety of long-term and short-term contractual lease arrangements. The Company also sells its own containers and containers purchased from third parties for resale. TAL also enters into management agreements with third party container owners under which the Company manages the leasing and selling of containers on behalf of the third party owners. On November 9, 2015, TAL and Triton Container International Limited ("Triton") announced that they have entered into a definitive agreement under which the companies will combine in an all-stock merger. Under the terms of the Transaction Agreement, TAL and Triton will combine under a newly-formed holding company, Triton International Limited (“Triton International”), which will be domiciled in Bermuda and is expected to be listed on the New York Stock Exchange. TAL International shareholders will receive one common share of Triton International for each share of TAL International stock owned. The transaction is subject to the approval of TAL's shareholders and a special meeting of shareholders has been scheduled for June 14, 2016. B. Basis of Presentation The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the accompanying prior period financial statements and notes to conform to the current year's presentation. C. New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-08 ("ASU No. 2016-08"), Revenue from Contracts with Customers (Topic 606), amending previous updates regarding this topic. The effective date is interim periods beginning after December 15, 2017. Earlier application is permitted. The Company is evaluating the transition method that will be elected and the potential effects of adopting the provisions of ASU No. 2016-08. In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-15 ("ASU No. 2014-15"), Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . This standard requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued and to disclose those conditions if management has concluded that substantial doubt exists. Subsequent to adoption, this guidance will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the Consolidated Financial Statements in a given reporting period. These changes become effective for the Company for the 2016 annual period. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements as this standard is disclosure only. In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03 ("ASU No. 2015-03"), Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs , which was updated in August 2015 by Accounting Standards Update No. 2015-15 ("ASU No. 2015-15"), Imputation of Interest (Topic 835): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Agreements. These standards change the presentation of debt issuance costs in the financial statements but do not affect the recognition and measurement of debt issuance costs. The ASU specifies that debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of that note and that amortization of debt issuance costs also shall be reported Note 1—Description of the Business, Basis of Presentation and Recently Adopted Accounting Pronouncements (Continued) as interest expense. In addition, for debt issuance costs related to line-of-credit arrangements, the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These changes became effective for the Company as of December 31, 2015. The Company adopted ASU No. 2015-15 in conjunction with ASU No. 2015-03, which have no impact on its income or cash flows and no material impact on its financial position. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 ("ASU No. 2016-02"), Leases (Topic 842) that replaces existing lease guidance. The accounting applied by lessors under Topic 842 is largely unchanged from previous GAAP. Some changes to the lessor accounting guidance were made to align both of the following: i) the lessor accounting guidance with certain changes made to the lessee accounting guidance and ii) key aspects of the lessor accounting model with revenue recognition guidance. These changes will become effective for the Company for periods beginning after December 15, 2018. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements, but does not expect any material impact to its financial statements. In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-09 ("ASU No. 2016-09"), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update to the standard is effective for the Company for periods beginning after December 15, 2016. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company believes that the carrying amounts of its cash and cash equivalents, accounts receivable, equipment purchases payable, and accounts payable approximated their fair value as of March 31, 2016 and December 31, 2015 . Fair value represents the price that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company utilizes the following fair value hierarchy when selecting inputs for its valuation techniques, with the highest priority given to Level 1: • Level 1—Financial assets and liabilities whose values are based on observable inputs such as quoted prices for identical instruments in active markets (unadjusted). • Level 2—Financial assets and liabilities whose values are based on observable inputs such as (i) quoted prices for similar instruments in active markets; (ii) quoted prices for identical or similar instruments in markets that are not active; or (iii) model-derived valuations in which all significant inputs are observable in active markets. • Level 3—Financial assets and liabilities whose values are derived from valuation techniques based on one or more significant unobservable inputs. The Company does not measure net investment in finance leases or debt at fair value in its consolidated balance sheets. The fair value, which was measured using Level 2 inputs, and the carrying value of the Company's net investment in finance leases and debt are listed in the table below as of the dates indicated (in thousands): March 31, December 31, Assets Net investment in finance leases, net of allowances - carrying value $ 169,241 $ 177,737 Net investment in finance leases, net of allowances - estimated fair value $ 173,472 $ 180,565 Liabilities Total debt(1) - carrying value $ 3,232,846 $ 3,241,733 Total debt(1) - estimated fair value $ 3,135,417 $ 3,210,722 ______________________________________________________________________________ (1) Excludes unamortized deferred financing costs of $24.4 million and $25.2 million as of March 31, 2016 and December 31, 2015 , respectively. Note 2—Fair Value of Financial Instruments (Continued) The Company estimated the fair value of its net investment in finance leases and debt instruments based on the net present value of its future receipts or payments, using a discount rate which reflects the Company's estimate of current market interest rates and spreads as of the balance sheet date. For the fair value of derivatives, please refer to Note 7 - "Derivative Instruments".

Dividends and Treasury Stock

Dividends and Treasury Stock	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity Note [Abstract]
Dividends	Dividends and Treasury Stock Dividends The Company paid the following quarterly dividends during the three months ended March 31, 2016 and 2015 on its issued and outstanding common stock: Record Date Payment Date Aggregate Payment Per Share Payment March 10, 2016 March 24, 2016 $14.8 Million $0.45 March 3, 2015 March 24, 2015 $23.7 Million $0.72 Treasury Stock & Stock Repurchase Program In the first quarter of 2016 , TAL had no repurchases of shares. TAL repurchased 81,915 shares in the first quarter of 2015 , at an average price of $41.40 per share. As part of the joint announcement of the TAL and Triton transaction on November 9, 2015, a share repurchase program of up to $250 million was announced, which supplants all prior stock repurchase programs.

Capital Stock and Stock Options

Capital Stock and Stock Options	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Capital Stock and Stock Options	Capital Stock and Stock Options Stock Based Compensation Plans The Company records compensation cost relating to stock based payment transactions in accordance with ASC 718. The cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense over the employee's requisite service period (generally the vesting period of the equity award) on a straight-line basis. The Company recognized compensation costs in administrative expenses related to restricted shares granted in 2013, 2014 , 2015 and 2016 under the Company's stock-based compensation plans of $1.1 million and $2.0 million during the three months ended March 31, 2016 and 2015 , respectively. Total unrecognized compensation costs of approximately $6.3 million as of March 31, 2016 related to restricted shares granted during 2014 , 2015 and 2016 will be recognized over the remaining weighted average vesting period of approximately 1.8 years. The Company's stock based compensation plans consist of the 2014 Equity Incentive Plan and the 2005 Management Omnibus Incentive Plan. Following the approval by the Company's shareholders of the 2014 Equity Incentive Plan, no further options have been granted. Under the 2014 Equity Incentive Plan, 140,000 shares and 158,750 shares have been issued during the quarters ended March 31, 2016 and 2015 , respectively. Note 4—Capital Stock and Stock Options (Continued) Accumulated Other Comprehensive (Loss) Accumulated other comprehensive (loss) consisted of the following as of the dates indicated (in thousands and net of tax effects): Cash Flow Hedges Foreign Currency Translation Accumulated Other Comprehensive (Loss) Income Balance as of December 31, 2015 $ (17,898 ) $ (1,297 ) $ (19,195 ) Change in fair value of derivative instruments designated as cash flow hedges (23,040 ) — (23,040 ) Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges 2,403 — 2,403 Amortization of net loss on derivative instruments previously designated as cash flow hedges 379 — 379 Foreign currency translation adjustment — (123 ) (123 ) Other comprehensive (loss) (20,258 ) (123 ) (20,381 ) Balance as of March 31, 2016 $ (38,156 ) $ (1,420 ) $ (39,576 ) Cash Flow Foreign Accumulated Other Comprehensive (Loss) Income Balance as of December 31, 2014 $ (12,145 ) $ (1,104 ) $ (13,249 ) Change in fair value of derivative instruments designated as cash flow hedges (15,838 ) — (15,838 ) Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges 3,152 — 3,152 Amortization of net loss on derivative instruments previously designated as cash flow hedges 445 — 445 Foreign currency translation adjustment — (157 ) (157 ) Other comprehensive (loss) (12,241 ) (157 ) (12,398 ) Balance as of March 31, 2015 $ (24,386 ) $ (1,261 ) $ (25,647 ) The following table presents reclassifications out of Accumulated other comprehensive (loss) for the period indicated (in thousands): Amounts Reclassified From Accumulated Other Comprehensive (Loss) Affected Line Item in the Consolidated Statements of Income Three Months Ended 2016 2015 Realized loss on interest rate swap agreements, designated as cash flow hedges $ 4,178 $ 4,871 Interest and debt expense Amortization of net loss on derivative instruments previously designated as cash flow hedges 585 687 Interest and debt expense Amounts reclassified from Accumulated other comprehensive (loss) 4,763 5,558 Income before income taxes Income tax (benefit) (1,981 ) (1,961 ) Income tax expense Amounts reclassified from Accumulated other comprehensive (loss) $ 2,782 $ 3,597 Net income

Net Investment in Finance Lease

Net Investment in Finance Leases	3 Months Ended
	Mar. 31, 2016
Leases, Capital [Abstract]
Net Investment in Finance Leases	Net Investment in Finance Leases The following table represents the components of the net investment in finance leases (in thousands): March 31, December 31, Gross finance lease receivables $ 200,302 $ 211,530 Allowance on gross finance lease receivables (710 ) (805 ) Gross finance lease receivables, net of allowance 199,592 210,725 Unearned income (30,351 ) (32,988 ) Net investment in finance leases $ 169,241 $ 177,737 The Company evaluates potential losses in its finance lease portfolio by regularly reviewing the specific receivables in the portfolio and analyzing historical loss experience. The Company's historical loss experience on its gross finance lease receivables, after considering equipment recoveries, was less than 1% . Net investment in finance lease receivables is generally charged off after an analysis is completed which indicates that collection of the full balance is remote. In order to estimate its allowance for losses contained in the gross finance lease receivables, the Company categorizes the credit worthiness of the receivables in the portfolio based on internal customer credit ratings, which are reviewed and updated, as appropriate, on an ongoing basis. The internal customer credit ratings are developed based on a review of the financial performance and condition, operating environment, geographical location and trade routes of our customers. The categories of gross finance lease receivables based on the Company's internal customer credit ratings can be described as follows: Tier 1— These customers are typically large international shipping lines who have been in business for many years and have world class operating capabilities and significant financial resources. In most cases, the Company has had a long commercial relationship with these customers and currently maintains regular communication with them at several levels of management, which provides TAL with insight into the customer's current operating and financial performance. In the Company's view, these customers have the greatest ability to withstand cyclical down turns and would likely have greater access to needed capital than lower rated customers. The Company views the risk of default for Tier 1 customers to range from minimal to modest. Tier 2— These customers are typically either smaller shipping lines with less operating scale or shipping lines with a high degree of financial leverage, and accordingly the Company views these customers as subject to higher volatility in financial performance over the business cycle. The Company generally expects these customers to have less access to capital markets or other sources of financing during cyclical down turns. The Company views the risk of default for Tier 2 customers as moderate. Tier 3— Customers in this category exhibit volatility in payments on a regular basis, thus they are considered non-performing. The Company has initiated or implemented plans to recover equipment on lease to these customers and believes that default is likely, or has already occurred. Based on the above categories, the Company's gross finance lease receivables are as follows (in thousands): March 31, December 31, Tier 1 $ 169,167 $ 179,909 Tier 2 31,135 31,621 Tier 3 — — Gross finance lease receivables $ 200,302 $ 211,530 The Company considers an account past due when a payment has not been received in accordance with the terms of the related lease agreement. As of March 31, 2016 , approximately $1.7 million of the Company's Tier 1 and $0.2 million of the Company's Tier 2 gross finance lease receivables were past due, substantially all of which were aged approximately 31 days. As of March 31, 2016 , $0.1 million of the Company's gross finance lease receivables were in non-accrual status. The Company categorizes customers as non-accrual based on the credit ratings described above and recognizes income on gross finance lease receivables in non-accrual status as collections are made. Note 5—Net Investment in Finance Leases (Continued) The following table represents the activity of the Company's allowance on gross finance lease receivables for the periods presented (in thousands): Beginning Balance Additions/ (Reversals) Ending Balance Finance Lease—Allowance for doubtful accounts: For the three months ended March 31, 2016 $ 805 $ (95 ) $ 710

Debt

Debt	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt	Debt Debt consisted of the following (amounts in thousands): March 31, December 31, Asset backed securitization (ABS) term notes $ 1,038,891 $ 1,151,497 Term loan facilities 1,071,718 973,130 Asset backed warehouse facility 620,000 610,000 Revolving credit facilities 445,000 445,000 Capital lease obligations 57,237 62,106 Total Debt $ 3,232,846 $ 3,241,733 Deferred financing costs (24,437 ) (25,245 ) Debt, net of unamortized deferred financing costs $ 3,208,409 $ 3,216,488 As of March 31, 2016 , the Company had $1,273.8 million of debt outstanding on facilities with fixed interest rates and $1,959.0 million of debt outstanding on facilities with interest rates based on floating rate indices (primarily LIBOR). The Company economically hedges the risks associated with fluctuations in interest rates on a portion of its floating rate borrowings by entering into interest rate swap agreements that convert a portion of its floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. As of March 31, 2016 , the Company had interest rate swaps in place with a notional amount of $1,123.0 million to fix the floating interest rates on a portion of its floating rate debt obligations. The Company is subject to certain financial covenants under its debt facilities, and as of March 31, 2016 , was in compliance with all such covenants. Asset Backed Warehouse Facility On January 20, 2016 , TAL Advantage III LLC, an indirect wholly owned subsidiary of TAL International Group, Inc., increased the credit limit on its asset backed warehouse credit facility from $650 million to $750 million . All other terms and conditions of the facility remain the same. Term Loan Facilities On February 5, 2016 , TAL International Container Corporation, a wholly owned subsidiary of TAL International Group, Inc., as Borrower, entered into a Modification of Term Loan Agreement with SunTrust Bank, as Administrative Agent and Collateral Agent, and the lenders thereto to modify the Term Loan Agreement dated April 2, 2014 (“Term Loan Agreement”) to make incremental loans in the aggregate amount of $100 million . The incremental loans have the same maturity date and interest rate as the outstanding term loans and all other terms and conditions of the Term Loan Agreement remain the same. TAL Advantage I LLC, an indirect wholly owned subsidiary of TAL International Group, Inc., repaid in full the TAL Advantage I LLC Series 2005-1 Notes on February 11, 2016 and the TAL Advantage I LLC Series 2006-1 Notes on February 22, 2016 for a total of $69.2 million .

Derivative Instruments

Derivative Instruments	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments	Derivative Instruments Interest Rate Swaps The Company has entered into interest rate swap agreements to manage interest rate risk exposure. Interest rate swap agreements utilized by TAL effectively modify the Company's exposure to interest rate risk by converting a portion of its floating rate debt to a fixed rate basis, thus reducing the impact of interest rate changes on future interest expense. Such agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the lives of the agreements without an exchange of the underlying principal amounts. The counterparties to the Company's interest rate swap agreements are highly rated financial institutions. In the unlikely event that the counterparties fail to meet the terms of the interest rate swap agreements, the Company's exposure is limited to the interest rate differential on the notional amount at each monthly settlement period over the life of the agreements. The Company does not anticipate any non-performance by the counterparties. Substantially all of the assets of certain indirect, wholly owned subsidiaries of the Company have been pledged as collateral for the underlying indebtedness and the amounts payable under the interest rate swap agreements for each of these entities. In addition, certain assets of TAL International Container Corporation, a direct wholly owned subsidiary of the Company, are pledged as collateral for various credit facilities and the amounts payable under certain interest rate swap agreements. As of March 31, 2016 , the Company had interest rate swap agreements in place to fix the floating interest rates on a portion of the borrowings under its debt facilities as summarized below: Notional Amount Weighted Average Fixed Leg (Pay) Interest Rate Weighted Average $1,123 Million 2.00% 6.4 years The following table represents pre-tax amounts in accumulated other comprehensive (loss) related to interest rate swap agreements (in millions) expected to be recognized in income over the next 12 months: Three Months Ended March 31, 2016 Loss on derivative instruments designated as cash flow hedges ($15.0 ) Net loss on terminated derivative instruments designated as cash flow hedges ($2.1 ) Note 7—Derivative Instruments (Continued) Amounts recorded in accumulated other comprehensive (loss) attributable to these terminated interest rate swap agreements may be recognized in earnings immediately in conjunction with a termination of the related debt balances. Fair Value of Derivative Instruments Under the criteria established by ASC 820, the Company has elected to use the income approach to value its interest rate swap agreements, using observable Level 2 market expectations at the measurement date and standard valuation techniques to convert future amounts to a single present amount (discounted) assuming that participants are motivated, but not compelled to transact. The Level 2 inputs for the interest rate swap and forward valuations are limited to quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for the asset or liability (specifically LIBOR cash and swap rates, basis swap adjustments and credit risk at commonly quoted intervals). Location of Derivative Instruments in Financial Statements Fair Value of Derivative Instruments (In Millions) Asset Derivatives Liability Derivatives March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Derivative Instrument Balance Sheet Location Fair Value Fair Value Fair Value Fair Value Interest rate swap contracts, designated as cash flow hedges Fair value of derivative instruments $ — $ 0.1 $ 51.0 $ 19.2 Interest rate swap contracts, not designated Fair value of derivative instruments — — 1.9 1.1 Total derivatives $ — $ 0.1 $ 52.9 $ 20.3 Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Three Months Ended Location of Loss (Gain) on 2016 2015 Realized loss on interest rate swap agreements Interest and debt expense $ 4.4 $ 5.2 Amortization of realized net loss on terminated derivative instruments, designated as cash flow hedges Interest and debt expense 0.6 0.7 Change in fair value of derivatives, designated as cash flow hedges Other comprehensive income 36.0 24.4 Net loss on interest rate swaps, not designated Net loss on interest rate swaps 0.8 0.7

Segment and Geographic Informat

Segment and Geographic Information	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Segment and Geographic Information	Segment and Geographic Information Industry Segment Information The Company conducts its business activities in one industry, intermodal transportation equipment, and has two reporting segments: • Equipment leasing—the Company owns, leases and ultimately disposes of containers and chassis from its lease fleet, as well as manages leasing activities for containers owned by third parties. • Equipment trading—the Company purchases containers from shipping line customers, and other sellers of containers, and resells these containers to container retailers and users of containers for storage or one-way shipment. Included in the Equipment trading segment revenues are leasing revenues from equipment purchased for resale that is currently on lease until the containers are dropped off. The following table show segment information for the periods indicated and the consolidated totals reported (in thousands): Three Months Ended March 31, 2016 2015 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 147,269 $ 1,954 $ 149,223 $ 146,553 $ 2,422 $ 148,975 Trading margin — 27 27 — 1,414 1,414 Net (loss) on sale of leasing equipment (13,930 ) — (13,930 ) (1,449 ) — (1,449 ) Depreciation and amortization expense 62,856 370 63,226 58,157 227 58,384 Interest and debt expense 28,718 433 29,151 28,690 553 29,243 Income before income taxes(1) 11,408 933 12,341 37,807 2,725 40,532 Equipment held for sale at March 31 64,848 20,123 84,971 30,316 27,879 58,195 Goodwill at March 31 73,523 1,000 74,523 73,523 1,000 74,523 Total assets at March 31 4,392,625 48,894 4,441,519 4,303,132 67,496 4,370,628 Purchases of leasing equipment and investments in finance leases(2) 97,141 — 97,141 250,968 7,584 258,552 _______________________________________________________________________________ (1) Segment income before income taxes excludes net losses on interest rate swaps of $0.8 million and $0.7 million for the three months ended March 31, 2016 and 2015 , respectively, and the write-off of deferred financing costs of $0.4 million for the three months ended March 31, 2016 . There was no write-off of deferred financing costs for the three months ended March 31, 2015 . (2) Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale. There are no intercompany revenues or expenses between segments. Additionally, certain administrative expenses have been allocated between segments based on an estimate of services provided to each segment. A portion of the Company's equipment purchased for resale was purchased through certain sale-leaseback transactions with our shipping line customers. Due to the expected longer term nature of these transactions, these purchases are reflected as leasing equipment as opposed to equipment held for sale and the cash flows associated with these transactions are reflected as purchases of leasing equipment and proceeds from the sale of equipment in investing activities in the Company's consolidated statements of cash flows. Geographic Segment Information The Company earns most of its leasing revenues from international containers which are deployed by its customers in a wide variety of global trade routes. Substantially all of the Company's leasing related revenue is denominated in U.S. dollars. Note 8—Segment and Geographic Information (Continued) The following table represents the geographic allocation of equipment leasing revenues for the periods indicated based on customers' primary domicile (in thousands): Three Months Ended 2016 2015 Total leasing revenues: United States of America $ 10,889 $ 10,455 Asia 68,715 68,848 Europe 66,160 65,866 Other International 3,459 3,806 Total $ 149,223 $ 148,975 As most of the Company's containers are used internationally, where no one container is domiciled in one particular place for a prolonged period of time, substantially all of the Company's long-lived assets are considered to be international. The following table represents the geographic allocation of equipment trading revenues for the periods indicated based on the location of sale (in thousands): Three Months Ended 2016 2015 Total equipment trading revenues: United States of America $ 1,410 $ 2,514 Asia 4,264 6,555 Europe 4,679 6,803 Other International 939 973 Total $ 11,292 $ 16,845

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Residual Value Guarantees During 2008, the Company entered into commitments for equipment residual value guarantees in connection with certain finance leases that were sold or brokered to financial institutions. The guarantees represent the Company's commitment that these assets will be worth a specified amount at the end of certain lease terms (if the lessee does not default on the lease) which expire in 2016. As of March 31, 2016 , the notification period requiring the Company to perform under the terms of the guarantees expired. Therefore, the carrying value of the guarantees of the $1.1 million previously deferred were recognized in Other Revenues for the three months ended March 31, 2016 . Purchase Commitments At March 31, 2016 , commitments for capital expenditures totaled approximately $25.4 million .

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The consolidated income tax expense for the three months ended March 31, 2016 and 2015 was determined primarily based upon estimates of the Company's consolidated effective income tax rates for the year ending December 31, 2016 and the year ended December 31, 2015 . The effective tax rate was 42.5% and 35.3% for the quarters ended March 31, 2016 and 2015 , respectively. The increase in effective tax rate reported for the three months ended March 31, 2016 compared to the same period in 2015 was attributable to additional tax expense recorded in the first quarter 2016 related to stock compensation on restricted stock that vested on January 1, 2016. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate is primarily attributable to state income taxes, foreign income taxes and the effect of certain permanent differences.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Quarterly Dividend On April 27, 2016 , the Company's Board of Directors approved and declared a $0.45 per share quarterly cash dividend on its issued and outstanding common stock, payable on May 26, 2016 to shareholders of record at the close of business on May 12, 2016 .

Description of the Business, 19

Description of the Business, Basis of Presentation and Recently Adopted Accounting Pronouncements Description of the Business, Basis of Presentation and Recently Adopted Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the reported amounts of revenues and expenses during the reporting period and disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Certain reclassifications have been made to the accompanying prior period financial statements and notes to conform to the current year's presentation.
Recently Adopted Accounting Pronouncements	New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-08 ("ASU No. 2016-08"), Revenue from Contracts with Customers (Topic 606), amending previous updates regarding this topic. The effective date is interim periods beginning after December 15, 2017. Earlier application is permitted. The Company is evaluating the transition method that will be elected and the potential effects of adopting the provisions of ASU No. 2016-08. In August 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-15 ("ASU No. 2014-15"), Presentation of Financial Statements (Topic 205): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern . This standard requires management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that financial statements are issued and to disclose those conditions if management has concluded that substantial doubt exists. Subsequent to adoption, this guidance will need to be applied by management at the end of each annual period and interim period therein to determine what, if any, impact there will be on the Consolidated Financial Statements in a given reporting period. These changes become effective for the Company for the 2016 annual period. Management has determined that the adoption of these changes will not have an impact on the Consolidated Financial Statements as this standard is disclosure only. In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2015-03 ("ASU No. 2015-03"), Imputation of Interest (Topic 835): Simplifying the Presentation of Debt Issuance Costs , which was updated in August 2015 by Accounting Standards Update No. 2015-15 ("ASU No. 2015-15"), Imputation of Interest (Topic 835): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Agreements. These standards change the presentation of debt issuance costs in the financial statements but do not affect the recognition and measurement of debt issuance costs. The ASU specifies that debt issuance costs related to a note shall be reported in the balance sheet as a direct deduction from the face amount of that note and that amortization of debt issuance costs also shall be reported Note 1—Description of the Business, Basis of Presentation and Recently Adopted Accounting Pronouncements (Continued) as interest expense. In addition, for debt issuance costs related to line-of-credit arrangements, the SEC would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. These changes became effective for the Company as of December 31, 2015. The Company adopted ASU No. 2015-15 in conjunction with ASU No. 2015-03, which have no impact on its income or cash flows and no material impact on its financial position. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-02 ("ASU No. 2016-02"), Leases (Topic 842) that replaces existing lease guidance. The accounting applied by lessors under Topic 842 is largely unchanged from previous GAAP. Some changes to the lessor accounting guidance were made to align both of the following: i) the lessor accounting guidance with certain changes made to the lessee accounting guidance and ii) key aspects of the lessor accounting model with revenue recognition guidance. These changes will become effective for the Company for periods beginning after December 15, 2018. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements, but does not expect any material impact to its financial statements. In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2016-09 ("ASU No. 2016-09"), Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The updated guidance changes how companies account for certain aspects of share-based payment awards to employees, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update to the standard is effective for the Company for periods beginning after December 15, 2016. The Company is currently evaluating the effect the guidance will have on the Consolidated Financial Statements.

Fair Value of Financial Instr20

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Schedule of fair value, which was measured using Level 2 inputs, and the carrying value of the entity's debt	The fair value, which was measured using Level 2 inputs, and the carrying value of the Company's net investment in finance leases and debt are listed in the table below as of the dates indicated (in thousands): March 31, December 31, Assets Net investment in finance leases, net of allowances - carrying value $ 169,241 $ 177,737 Net investment in finance leases, net of allowances - estimated fair value $ 173,472 $ 180,565 Liabilities Total debt(1) - carrying value $ 3,232,846 $ 3,241,733 Total debt(1) - estimated fair value $ 3,135,417 $ 3,210,722 ______________________________________________________________________________ (1) Excludes unamortized deferred financing costs of $24.4 million and $25.2 million as of March 31, 2016 and December 31, 2015 , respectively.

Dividends and Treasury Stock (T

Dividends and Treasury Stock (Tables)	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity Note [Abstract]
Schedule of quarterly dividends paid	The Company paid the following quarterly dividends during the three months ended March 31, 2016 and 2015 on its issued and outstanding common stock: Record Date Payment Date Aggregate Payment Per Share Payment March 10, 2016 March 24, 2016 $14.8 Million $0.45 March 3, 2015 March 24, 2015 $23.7 Million $0.72

Capital Stock and Stock Optio22

Capital Stock and Stock Options (Tables)	3 Months Ended
	Mar. 31, 2016
Equity [Abstract]
Schedule of accumulated other comprehensive (loss)	Accumulated other comprehensive (loss) consisted of the following as of the dates indicated (in thousands and net of tax effects): Cash Flow Hedges Foreign Currency Translation Accumulated Other Comprehensive (Loss) Income Balance as of December 31, 2015 $ (17,898 ) $ (1,297 ) $ (19,195 ) Change in fair value of derivative instruments designated as cash flow hedges (23,040 ) — (23,040 ) Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges 2,403 — 2,403 Amortization of net loss on derivative instruments previously designated as cash flow hedges 379 — 379 Foreign currency translation adjustment — (123 ) (123 ) Other comprehensive (loss) (20,258 ) (123 ) (20,381 ) Balance as of March 31, 2016 $ (38,156 ) $ (1,420 ) $ (39,576 ) Cash Flow Foreign Accumulated Other Comprehensive (Loss) Income Balance as of December 31, 2014 $ (12,145 ) $ (1,104 ) $ (13,249 ) Change in fair value of derivative instruments designated as cash flow hedges (15,838 ) — (15,838 ) Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges 3,152 — 3,152 Amortization of net loss on derivative instruments previously designated as cash flow hedges 445 — 445 Foreign currency translation adjustment — (157 ) (157 ) Other comprehensive (loss) (12,241 ) (157 ) (12,398 ) Balance as of March 31, 2015 $ (24,386 ) $ (1,261 ) $ (25,647 )
Schedule of reclassifications out of accumulated other comprehensive (loss)	The following table presents reclassifications out of Accumulated other comprehensive (loss) for the period indicated (in thousands): Amounts Reclassified From Accumulated Other Comprehensive (Loss) Affected Line Item in the Consolidated Statements of Income Three Months Ended 2016 2015 Realized loss on interest rate swap agreements, designated as cash flow hedges $ 4,178 $ 4,871 Interest and debt expense Amortization of net loss on derivative instruments previously designated as cash flow hedges 585 687 Interest and debt expense Amounts reclassified from Accumulated other comprehensive (loss) 4,763 5,558 Income before income taxes Income tax (benefit) (1,981 ) (1,961 ) Income tax expense Amounts reclassified from Accumulated other comprehensive (loss) $ 2,782 $ 3,597 Net income

Net Investment in Finance Lea23

Net Investment in Finance Leases (Tables)	3 Months Ended
	Mar. 31, 2016
Leases, Capital [Abstract]
Schedule of components of the net investment in finance leases	The following table represents the components of the net investment in finance leases (in thousands): March 31, December 31, Gross finance lease receivables $ 200,302 $ 211,530 Allowance on gross finance lease receivables (710 ) (805 ) Gross finance lease receivables, net of allowance 199,592 210,725 Unearned income (30,351 ) (32,988 ) Net investment in finance leases $ 169,241 $ 177,737
Schedule of categories of gross finance lease receivables based on the Company's internal customer credit ratings	Based on the above categories, the Company's gross finance lease receivables are as follows (in thousands): March 31, December 31, Tier 1 $ 169,167 $ 179,909 Tier 2 31,135 31,621 Tier 3 — — Gross finance lease receivables $ 200,302 $ 211,530
Schedule of activity of allowance on gross finance lease receivables	The following table represents the activity of the Company's allowance on gross finance lease receivables for the periods presented (in thousands): Beginning Balance Additions/ (Reversals) Ending Balance Finance Lease—Allowance for doubtful accounts: For the three months ended March 31, 2016 $ 805 $ (95 ) $ 710

Debt (Tables)

Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Schedule of debt instruments	Debt consisted of the following (amounts in thousands): March 31, December 31, Asset backed securitization (ABS) term notes $ 1,038,891 $ 1,151,497 Term loan facilities 1,071,718 973,130 Asset backed warehouse facility 620,000 610,000 Revolving credit facilities 445,000 445,000 Capital lease obligations 57,237 62,106 Total Debt $ 3,232,846 $ 3,241,733 Deferred financing costs (24,437 ) (25,245 ) Debt, net of unamortized deferred financing costs $ 3,208,409 $ 3,216,488

Derivative Instruments (Tables)

Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of interest rate swap contracts	As of March 31, 2016 , the Company had interest rate swap agreements in place to fix the floating interest rates on a portion of the borrowings under its debt facilities as summarized below: Notional Amount Weighted Average Fixed Leg (Pay) Interest Rate Weighted Average $1,123 Million 2.00% 6.4 years
Schedule of pre-tax amounts in accumulated other comprehensive (loss) income related to interest rate swap agreements	The following table represents pre-tax amounts in accumulated other comprehensive (loss) related to interest rate swap agreements (in millions) expected to be recognized in income over the next 12 months: Three Months Ended March 31, 2016 Loss on derivative instruments designated as cash flow hedges ($15.0 ) Net loss on terminated derivative instruments designated as cash flow hedges ($2.1 )
Schedule of fair value of derivative instruments	Fair Value of Derivative Instruments (In Millions) Asset Derivatives Liability Derivatives March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Derivative Instrument Balance Sheet Location Fair Value Fair Value Fair Value Fair Value Interest rate swap contracts, designated as cash flow hedges Fair value of derivative instruments $ — $ 0.1 $ 51.0 $ 19.2 Interest rate swap contracts, not designated Fair value of derivative instruments — — 1.9 1.1 Total derivatives $ — $ 0.1 $ 52.9 $ 20.3
Schedule of derivatives instruments and their effect on consolidated statements of operations and consolidated statements of comprehensive income	Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Three Months Ended Location of Loss (Gain) on 2016 2015 Realized loss on interest rate swap agreements Interest and debt expense $ 4.4 $ 5.2 Amortization of realized net loss on terminated derivative instruments, designated as cash flow hedges Interest and debt expense 0.6 0.7 Change in fair value of derivatives, designated as cash flow hedges Other comprehensive income 36.0 24.4 Net loss on interest rate swaps, not designated Net loss on interest rate swaps 0.8 0.7

Segment and Geographic Inform26

Segment and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2016
Segment Reporting [Abstract]
Schedule of segment information	The following table show segment information for the periods indicated and the consolidated totals reported (in thousands): Three Months Ended March 31, 2016 2015 Equipment Equipment Totals Equipment Equipment Totals Total leasing revenues $ 147,269 $ 1,954 $ 149,223 $ 146,553 $ 2,422 $ 148,975 Trading margin — 27 27 — 1,414 1,414 Net (loss) on sale of leasing equipment (13,930 ) — (13,930 ) (1,449 ) — (1,449 ) Depreciation and amortization expense 62,856 370 63,226 58,157 227 58,384 Interest and debt expense 28,718 433 29,151 28,690 553 29,243 Income before income taxes(1) 11,408 933 12,341 37,807 2,725 40,532 Equipment held for sale at March 31 64,848 20,123 84,971 30,316 27,879 58,195 Goodwill at March 31 73,523 1,000 74,523 73,523 1,000 74,523 Total assets at March 31 4,392,625 48,894 4,441,519 4,303,132 67,496 4,370,628 Purchases of leasing equipment and investments in finance leases(2) 97,141 — 97,141 250,968 7,584 258,552 _______________________________________________________________________________ (1) Segment income before income taxes excludes net losses on interest rate swaps of $0.8 million and $0.7 million for the three months ended March 31, 2016 and 2015 , respectively, and the write-off of deferred financing costs of $0.4 million for the three months ended March 31, 2016 . There was no write-off of deferred financing costs for the three months ended March 31, 2015 . (2) Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale.
Schedule of revenues by geographic location	The following table represents the geographic allocation of equipment trading revenues for the periods indicated based on the location of sale (in thousands): Three Months Ended 2016 2015 Total equipment trading revenues: United States of America $ 1,410 $ 2,514 Asia 4,264 6,555 Europe 4,679 6,803 Other International 939 973 Total $ 11,292 $ 16,845 The following table represents the geographic allocation of equipment leasing revenues for the periods indicated based on customers' primary domicile (in thousands): Three Months Ended 2016 2015 Total leasing revenues: United States of America $ 10,889 $ 10,455 Asia 68,715 68,848 Europe 66,160 65,866 Other International 3,459 3,806 Total $ 149,223 $ 148,975

Fair Value of Financial Instr27

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value
Deferred financing costs	$ (24,437)	$ (25,245)
Capital Leases, Net Investment in Direct Financing and Sales Type Leases	169,241	177,737
Carrying Value
Fair Value
Capital Leases, Net Investment in Direct Financing and Sales Type Leases	169,241	177,737
Liabilities
Total Debt	3,232,846	3,241,733
Estimate of Fair Value | Level 2
Assets
Investment In Financing Leases, Net Of Deferred Income	173,472	180,565
Liabilities
Total Debt	$ 3,135,417	$ 3,210,722

Dividends and Treasury Stock (D

Dividends and Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 24, 2016	Mar. 24, 2015	Mar. 31, 2016	Mar. 31, 2015	Nov. 09, 2015
Aggregate dividend payment	$ 14,844	$ 23,700	$ 14,844	$ 23,656
Per share dividend payment (in dollars per share)	$ 0.45	$ 0.72	$ 0.45	$ 0.72
Shares repurchased (in shares)			0	81,915
Shares repurchased (in dollars per share)				$ 41.40
Stock Repurchase Program, Authorized Amount					$ 250,000

Capital Stock and Stock Optio29

Capital Stock and Stock Options (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Stock based compensation plans
Stock compensation charge	$ 1,067	$ 2,002
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	140,000	158,750
Restricted stock
Stock based compensation plans
Total unrecognized compensation cost	$ 6,300
Weighted-average vesting period over which unrecognized compensation is expected to be recognized	1 year 9 months

Capital Stock and Stock Optio30

Capital Stock and Stock Options (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Balance at the beginning of the period	$ (19,195)
Change in fair value of derivative instruments designated as cash flow hedges	(23,040)	$ (15,838)
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges	2,403	3,152
Amortization of net loss on derivative instruments previously designated as cash flow hedges	379	445
Foreign currency translation adjustment	(123)	(157)
Other comprehensive (loss), net of tax	(20,381)	(12,398)
Balance at the end of the period	(39,576)
Cash Flow Hedges
Balance at the beginning of the period	(17,898)	(12,145)
Change in fair value of derivative instruments designated as cash flow hedges	(23,040)	(15,838)
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges	2,403	3,152
Amortization of net loss on derivative instruments previously designated as cash flow hedges	379	445
Foreign currency translation adjustment	0	0
Other comprehensive (loss), net of tax	(20,258)	(12,241)
Balance at the end of the period	(38,156)	(24,386)
Foreign Currency Translation
Balance at the beginning of the period	(1,297)	(1,104)
Change in fair value of derivative instruments designated as cash flow hedges	0	0
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges	0	0
Amortization of net loss on derivative instruments previously designated as cash flow hedges	0	0
Foreign currency translation adjustment	(123)	(157)
Other comprehensive (loss), net of tax	(123)	(157)
Balance at the end of the period	(1,420)	(1,261)
Accumulated Other Comprehensive Income (Loss)
Balance at the beginning of the period	(19,195)	(13,249)
Change in fair value of derivative instruments designated as cash flow hedges	(23,040)	(15,838)
Reclassification of realized loss on interest rate swap agreements designated as cash flow hedges	2,403	3,152
Amortization of net loss on derivative instruments previously designated as cash flow hedges	379	445
Foreign currency translation adjustment	(123)	(157)
Other comprehensive (loss), net of tax	(20,381)	(12,398)
Balance at the end of the period	$ (39,576)	$ (25,647)

Capital Stock and Stock Optio31

Capital Stock and Stock Options (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Amounts Reclassified from AOCI
Realized loss on interest rate swap agreements, designated as cash flow hedges	$ 29,151	$ 29,243
Amortization of net loss on derivative instruments previously designated as cash flow hedges	585	687
Income tax (benefit)	4,743	14,059
Amounts reclassified from Accumulated other comprehensive (loss)	(6,422)	(25,757)
Cash Flow Hedges | Amounts Reclassified From Accumulated Other Comprehensive Income
Amounts Reclassified from AOCI
Realized loss on interest rate swap agreements, designated as cash flow hedges	4,178	4,871
Amortization of net loss on derivative instruments previously designated as cash flow hedges	585	687
Amounts reclassified from Accumulated other comprehensive (loss)	4,763	5,558
Income tax (benefit)	(1,981)	(1,961)
Amounts reclassified from Accumulated other comprehensive (loss)	$ 2,782	$ 3,597

Net Investment in Finance Lea32

Net Investment in Finance Leases (Details) - USD ($) $ in Thousands	144 Months Ended
	Dec. 31, 2015	Mar. 31, 2016
Components of the net investment in finance leases
Gross finance lease receivables	$ 211,530	$ 200,302
Allowance on gross finance lease receivables	(805)	(710)
Gross finance lease receivables, net of allowance	210,725	199,592
Unearned income	(32,988)	(30,351)
Net investment in finance leases	$ 177,737	$ 169,241
Company's historical loss experience on its gross finance lease receivables, after considering equipment recoveries, maximum	1.00%

Net Investment in Finance Lea33

Net Investment in Finance Leases (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Gross finance lease receivables based on the company's internal customer credit rating
Gross finance lease receivables	$ 200,302	$ 211,530
Number of days gross finance lease were past due	31 days
Impaired Financing Receivable, with Related Allowance, Recorded Investment	$ 100
Tier 1
Gross finance lease receivables based on the company's internal customer credit rating
Gross finance lease receivables	169,167	179,909
Gross finance lease receivables past due	1,700
Tier 2
Gross finance lease receivables based on the company's internal customer credit rating
Gross finance lease receivables	31,135	31,621
Gross finance lease receivables past due	200
Tier 3
Gross finance lease receivables based on the company's internal customer credit rating
Gross finance lease receivables	$ 0	$ 0

Net Investment in Finance Lea34

Net Investment in Finance Leases (Details 3) - Finance Lease - Allowance for doubtful accounts $ in Thousands	3 Months Ended
	Mar. 31, 2016USD ($)
Changes in valuation and qualifying accounts
Beginning Balance	$ 805
Additions/ (Reversals)	(95)
Ending Balance	$ 710

Debt (Details)

Debt (Details) - USD ($) $ in Thousands	Mar. 31, 2016	Feb. 22, 2016	Feb. 05, 2016	Jan. 20, 2016	Dec. 31, 2015
Debt
Deferred financing costs	$ (24,437)				$ (25,245)
Debt and Capital Lease Obligations, net of deferred financing costs	3,208,409				3,216,488
Debt outstanding on facilities with fixed interest rates	1,273,800
Debt outstanding on facilities with interest rates based on floating rate indices	1,959,000
Interest rate swaps
Debt
Net notional amount	1,123,000
Asset backed securitization (ABS) term notes
Debt
Total Debt	1,038,891				1,151,497
Term loan facilities
Debt
Total Debt	1,071,718				973,130
Asset backed warehouse facility
Debt
Total Debt	620,000				610,000
Line of Credit Facility, Maximum Borrowing Capacity				$ 750,000	650,000
Revolving credit facilities
Debt
Total Debt	445,000				445,000
Capital lease obligations
Debt
Total Debt	57,237				62,106
Incremental Borrowing on SunTrust Term Loan [Member] | Term loan facilities
Debt
Total Debt			$ 100,000
TALA1Paydown [Member] | Term loan facilities
Debt
Total Debt		$ 69,200
Carrying Value
Debt
Total Debt	$ 3,232,846				$ 3,241,733

Derivative Instruments (Details

Derivative Instruments (Details) - Interest rate swaps $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Derivative Instruments
Net notional amount	$ 1,123
Weighted average fixed leg (Pay) interest rate (as a percent)	2.00%
Weighted Average Remaining Term	6 years 5 months

Derivative Instruments (Detai37

Derivative Instruments (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value of Derivative Instruments
Fair value of derivative instruments (assets)	$ 0	$ 87
Fair value of derivative instruments (liabilities)	52,921	20,348
Interest rate swaps | Derivatives designated as hedging instruments
Fair Value of Derivative Instruments
Fair value of derivative instruments (assets)	0	100
Fair value of derivative instruments (liabilities)	51,000	19,200
Interest rate swaps | Derivatives not designated as hedging instruments
Fair Value of Derivative Instruments
Fair value of derivative instruments (assets)	0	0
Fair value of derivative instruments (liabilities)	1,900	$ 1,100
Fair Value Hedging [Member] | Interest rate swaps
Fair Value of Derivative Instruments
Cash flow hedge gain (loss) to be reclassified within twelve months	(15,000)
Amortization of Loss on Terminated Derivative Instruments Designated as Cashflow Hedges [Member] | Interest rate swaps
Fair Value of Derivative Instruments
Cash flow hedge gain (loss) to be reclassified within twelve months	$ (2,100)

Derivative Instruments (Detai38

Derivative Instruments (Details 3) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Amortization of net loss on terminated derivative instruments designated as cash flow hedges	$ 585	$ 687
Net loss on interest rate swaps, not designated	813	716
Interest rate swaps | Derivatives not designated as hedging instruments | Net loss (gain) on interest rate swaps
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Net loss on interest rate swaps, not designated	800	700
Interest rate swaps | Derivatives designated as hedging instruments | Other comprehensive income
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Change in fair value of derivatives, designated as cash flow hedges	36,000	24,400
Interest rate swaps | Derivatives designated as hedging instruments | Interest expense
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Realized loss on interest rate swap agreements	4,400	5,200
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Amortization of net loss on terminated derivative instruments designated as cash flow hedges	585	687
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Interest expense
Effect of Derivative Instruments on Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Amortization of net loss on terminated derivative instruments designated as cash flow hedges	$ 585	$ 687

Segment and Geographic Inform39

Segment and Geographic Information (Details) $ in Thousands		3 Months Ended
		Mar. 31, 2016USD ($)industrysegment	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Industry Segment Information
Number of industries | industry		1
Number of reportable segments | segment		2
Total leasing revenues		$ 149,223	$ 148,975
Trading margin		27	1,414
Net (loss) on sale of leasing equipment		(13,930)	(1,449)
Depreciation and amortization expense		63,226	58,384
Interest and debt expense		29,151	29,243
Income before income taxes	[1]	12,341	40,532
Equipment held for sale		84,971	58,195	$ 74,899
Goodwill at the end of the period		74,523	74,523	74,523
Total assets at the end of the period		4,441,519	4,370,628	$ 4,434,076
Purchases of leasing equipment and investments in finance leases	[2]	97,141	258,552
Net loss on interest rate swaps		813	716
Write-off of deferred financing costs		363	0
Costs and Expenses		93,828	79,165
Equipment leasing
Industry Segment Information
Total leasing revenues		147,269	146,553
Trading margin		0	0
Depreciation and amortization expense		62,856	58,157
Interest and debt expense		28,718	28,690
Income before income taxes	[1]	11,408	37,807
Equipment held for sale		64,848	30,316
Goodwill at the end of the period		73,523	73,523
Total assets at the end of the period		4,392,625	4,303,132
Purchases of leasing equipment and investments in finance leases	[2]	97,141	250,968
Equipment trading
Industry Segment Information
Total leasing revenues		1,954	2,422
Net (loss) on sale of leasing equipment		0	0
Depreciation and amortization expense		370	227
Interest and debt expense		433	553
Income before income taxes	[1]	933	2,725
Equipment held for sale		20,123	27,879
Goodwill at the end of the period		1,000	1,000
Total assets at the end of the period		48,894	67,496
Purchases of leasing equipment and investments in finance leases	[2]	0	7,584
Intersegment Eliminations
Industry Segment Information
Revenues		0	0
Costs and Expenses		$ 0	$ 0
[1]	Segment income before income taxes excludes net losses on interest rate swaps of $0.8 million and $0.7 million for the three months ended March 31, 2016 and 2015, respectively, and the write-off of deferred financing costs of $0.4 million for the three months ended March 31, 2016. There was no write-off of deferred financing costs for the three months ended March 31, 2015.
[2]	Represents cash disbursements for purchases of leasing equipment and investments in finance lease as reflected in the consolidated statements of cash flows for the periods indicated, but excludes cash flows associated with the purchase of equipment held for resale.

Segment and Geographic Inform40

Segment and Geographic Information (Details 2) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Geographic Segment Information
Total leasing revenues	$ 149,223	$ 148,975
Equipment trading revenues	11,292	16,845
United States of America
Geographic Segment Information
Total leasing revenues	10,889	10,455
Equipment trading revenues	1,410	2,514
Asia
Geographic Segment Information
Total leasing revenues	68,715	68,848
Equipment trading revenues	4,264	6,555
Europe
Geographic Segment Information
Total leasing revenues	66,160	65,866
Equipment trading revenues	4,679	6,803
Other international
Geographic Segment Information
Total leasing revenues	3,459	3,806
Equipment trading revenues	$ 939	$ 973

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	3 Months Ended
	Mar. 31, 2016USD ($)
Guarantee obligations
Expired Guarantor Obligation, Carrying Value	$ 1.1

Commitments and Contingencies42

Commitments and Contingencies (Details 2) $ in Millions	Mar. 31, 2016USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase commitment payable in 2016	$ 25.4

Income Taxes Tax Detail (Detail

Income Taxes Tax Detail (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, Percent	42.50%	35.30%

Subsequent Events (Details)

Subsequent Events (Details)	Apr. 27, 2016$ / shares
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividend approved and declared (in dollars per share)	$ 0.45