Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 31, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | CAI International, Inc. | |
Entity Filer Category | Accelerated Filer | |
Entity Central Index Key | 1,388,430 | |
Amendment Flag | false | |
Document Type | 10-Q | |
Document Fiscal Period Focus | Q3 | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 19,057,453 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Current assets | |||
Accounts receivable, net of allowance for doubtful accounts of $805 and $548 at September 30, 2016 and December 31, 2015, respectively | $ 67,199 | $ 55,284 | |
Current portion of direct finance leases | 31,129 | 21,158 | |
Prepaid expenses and other current assets | 2,183 | 2,155 | |
Total current assets | 137,977 | 131,150 | |
Restricted cash | 6,447 | 7,212 | |
Rental equipment, net of accumulated depreciation of $406,081 and $349,810 at September 30, 2016 and December 31, 2015, respectively | 1,786,374 | 1,748,211 | |
Net investment in direct finance leases | 69,705 | 82,210 | |
Goodwill | 15,579 | 2,905 | |
Intangible assets, net of accumulated amortization of $1,919 and $1,237 at September 30, 2016 and December 31, 2015, respectively | 10,453 | 1,223 | |
Furniture, fixtures and equipment, net of accumulated depreciation of $2,876 and $2,027 at September 30, 2016 and December 31, 2015, respectively | 667 | 674 | |
Total assets | [1] | 2,027,202 | 1,973,585 |
Current liabilities | |||
Accounts payable | 13,237 | 11,962 | |
Accrued expenses and other current liabilities | 12,623 | 4,813 | |
Due to container investors | 5,769 | 5,801 | |
Unearned revenue | 13,011 | 11,990 | |
Current portion of debt | 99,751 | 169,596 | |
Rental equipment payable | 24,435 | 10,901 | |
Total current liabilities | 168,826 | 215,063 | |
Debt | 1,343,276 | 1,249,057 | |
Deferred income tax liability | 52,581 | 48,204 | |
Other long term liabilities | 3,500 | ||
Total liabilities | [2] | 1,568,183 | 1,512,324 |
Stockholders' equity | |||
Common stock: par value $.0001 per share; authorized 84,000,000 shares; issued and outstanding 19,057,453 and 20,132,706 shares at September 30, 2016 and December 31, 2015, respectively | 2 | 2 | |
Additional paid-in capital | 140,649 | 148,523 | |
Accumulated other comprehensive loss | (6,875) | (7,922) | |
Retained earnings | 325,243 | 319,735 | |
Total CAI stockholders' equity | 459,019 | 460,338 | |
Non-controlling interest | 923 | ||
Total stockholders' equity | 459,019 | 461,261 | |
Total liabilities and stockholders' equity | 2,027,202 | 1,973,585 | |
Consolidated Entity Excluding Variable Interest Entities (VIE) [Member] | |||
Current assets | |||
Cash | 15,450 | 17,447 | |
Variable Interest Entity, Primary Beneficiary [Member] | |||
Current assets | |||
Cash | 22,016 | 35,106 | |
Rental equipment, net of accumulated depreciation of $406,081 and $349,810 at September 30, 2016 and December 31, 2015, respectively | 63,939 | 85,101 | |
Net investment in direct finance leases | 5,705 | 1,915 | |
Current liabilities | |||
Current portion of debt | 31,056 | 60,382 | |
Debt | $ 66,347 | $ 59,445 | |
[1] | Total assets at September 30, 2016 and December 31, 2015 include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash, $22,016 and $35,106; Net investment in direct finance leases, $5,705 and $1,915; and Rental equipment, net of accumulated depreciation, $63,939 and $85,101, respectively. | ||
[2] | Total liabilities at September 30, 2016 and December 31, 2015 include the following VIE liabilities for which the VIE creditors do not have recourse to CAI International, Inc.: Current portion of debt, $31,056 and $60,382; Debt, $66,347 and $59,445, respectively. |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets | ||
Accounts receivable, allowance for doubtful accounts | $ 805 | $ 548 |
Rental equipment net of accumulated depreciation | 1,786,374 | 1,748,211 |
Rental equipment, accumulated depreciation | 406,081 | 349,810 |
Net investment in direct finance leases | 69,705 | 82,210 |
Intangible assets, accumulated amortization | 1,919 | 1,237 |
Furniture, fixtures and equipment, accumulated depreciation | 2,876 | 2,027 |
Current liabilities | ||
Current portion of debt | 99,751 | 169,596 |
Debt | $ 1,343,276 | $ 1,249,057 |
Stockholders' equity | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 84,000,000 | 84,000,000 |
Common stock, shares issued | 19,057,453 | 20,132,706 |
Common stock, shares outstanding | 19,057,453 | 20,132,706 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Current assets | ||
Cash | $ 22,016 | $ 35,106 |
Rental equipment net of accumulated depreciation | 63,939 | 85,101 |
Net investment in direct finance leases | 5,705 | 1,915 |
Current liabilities | ||
Current portion of debt | 31,056 | 60,382 |
Debt | $ 66,347 | $ 59,445 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue | ||||
Container lease income | $ 49,196 | $ 54,696 | $ 151,270 | $ 164,274 |
Rail lease income | 7,614 | 5,102 | 22,462 | 11,770 |
Logistics revenue | 21,197 | 5,406 | 41,743 | 5,474 |
Management fee revenue | 465 | 913 | 1,605 | 2,457 |
Total revenue | 78,472 | 66,117 | 217,080 | 183,975 |
Operating expenses | ||||
Depreciation of rental equipment | 29,873 | 22,655 | 77,401 | 65,907 |
Storage, handling and other expenses | 8,802 | 8,148 | 27,176 | 21,837 |
Logistics transportation costs | 18,045 | 4,818 | 35,127 | 4,888 |
Loss (gain) on sale of used rental equipment | 3,323 | (72) | 7,950 | (237) |
Administrative expenses | 11,067 | 7,312 | 28,750 | 21,540 |
Total operating expenses | 71,110 | 42,861 | 176,404 | 113,935 |
Operating income | 7,362 | 23,256 | 40,676 | 70,040 |
Other expenses | ||||
Net interest expense | 10,866 | 8,967 | 31,404 | 26,792 |
Other expense | 85 | 2 | 407 | 61 |
Total other expenses | 10,951 | 8,969 | 31,811 | 26,853 |
Net (loss) income before income taxes and non-controlling interest | (3,589) | 14,287 | 8,865 | 43,187 |
Income tax expense | 1,826 | 1,272 | 3,320 | 3,671 |
Net (loss) income | (5,415) | 13,015 | 5,545 | 39,516 |
Net income attributable to non-controlling interest | 26 | 37 | 96 | |
Net (loss) income attributable to CAI common stockholders | $ (5,415) | $ 12,989 | $ 5,508 | $ 39,420 |
Net (loss) income per share attributable to CAI common stockholders | ||||
Basic | $ (0.28) | $ 0.62 | $ 0.28 | $ 1.88 |
Diluted | $ (0.28) | $ 0.62 | $ 0.28 | $ 1.86 |
Weighted average shares outstanding | ||||
Basic | 19,130 | 20,920 | 19,427 | 20,973 |
Diluted | 19,130 | 21,059 | 19,498 | 21,236 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ (5,415) | $ 13,015 | $ 5,545 | $ 39,516 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustments | 137 | 224 | 1,047 | (1,737) |
Comprehensive (loss) income | (5,278) | 13,239 | 6,592 | 37,779 |
Comprehensive income attributable to non-controlling interest | 26 | 37 | 96 | |
Comprehensive (loss) income attributable to CAI common stockholders | $ (5,278) | $ 13,213 | $ 6,555 | $ 37,683 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | ||
Cash flows from operating activities | |||
Net income | $ 5,545 | $ 39,516 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 77,636 | 66,228 | |
Amortization of debt issuance costs | 2,086 | 1,983 | |
Amortization of intangible assets | 682 | 157 | |
Stock-based compensation expense | 1,320 | 1,436 | |
Reduction in contingent consideration | (1,000) | ||
Unrealized loss on foreign exchange | 82 | 185 | |
Loss (gain) on sale of used rental equipment | 7,950 | (237) | |
Loss on disposal of subsidiary | 146 | ||
Deferred income taxes | 2,193 | 458 | |
Bad debt expense | 2,458 | 326 | |
Changes in other operating assets and liabilities: | |||
Accounts receivable | (7,560) | 2,692 | |
Prepaid expenses and other assets | (191) | 822 | |
Accounts payable, accrued expenses and other current liabilities | 1,540 | (594) | |
Due to container investors | (32) | (5,369) | |
Unearned revenue | 1,013 | 2,263 | |
Net cash provided by operating activities | 93,868 | 109,866 | |
Cash flows from investing activities | |||
Purchase of rental equipment | [1] | (170,582) | (304,588) |
Acquisitions, net of cash acquired | (15,620) | (4,100) | |
Net proceeds from sale of used rental equipment | 46,137 | 51,188 | |
Disposal of subsidiary, net of cash disposed of | (460) | ||
Purchase of furniture, fixtures and equipment | (92) | (73) | |
Receipt of principal payments from direct financing leases | 17,368 | 16,071 | |
Net cash used in investing activities | (123,249) | (241,502) | |
Cash flows from financing activities | |||
Proceeds from debt | 432,540 | 450,731 | |
Principal payments on debt | (408,375) | (301,234) | |
Debt issuance costs | (1,461) | (1,662) | |
Decrease in restricted cash | 765 | 765 | |
Repurchase of stock | (9,176) | (12,158) | |
Exercise of stock options | 4,744 | ||
Excess tax benefit from share-based compensation awards | 1,006 | ||
Net cash provided by financing activities | 14,293 | 142,192 | |
Effect on cash of foreign currency translation | 1 | (209) | |
Net (decrease) increase in cash | (15,087) | 10,347 | |
Cash at beginning of the period | 52,553 | 53,821 | |
Cash at end of the period | 37,466 | 64,168 | |
Cash paid during the period for: | |||
Income taxes | 752 | 2,114 | |
Interest | 29,617 | 25,840 | |
Supplemental disclosure of non-cash investing and financing activity | |||
Transfer of rental equipment to direct finance lease | $ 14,816 | $ 24,505 | |
[1] | Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated. |
The Company And Nature Of Opera
The Company And Nature Of Operations | 9 Months Ended |
Sep. 30, 2016 | |
The Company And Nature Of Operations [Abstract] | |
The Company And Nature Of Operations | CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (1) The Company and Nature of Operations Organization CAI International, Inc. , together with its subsidiaries (collectively, CAI or the Company) , is a transportation finance and logistics company. The Company purchases equipment, primarily intermodal shipping containers and railcars, which it leases to its customers . The Company also manages equipment for third-party investors. In operating its fleet, the Company leases, re-leases and disposes of equipment and contracts for the repair, repositioning and storage of equipment. The Company also provides domestic and international logistics services . In July 2015, the Company purchased ClearPointt Logistics LLC (ClearPointt) , a n intermodal logistics company focused on the domestic intermodal market, for approximately $4.1 million. ClearPointt is headquartered in Everett, Washington. In February 2016, the Company purchased Challenger Overseas LLC (Challenger), a Non-Vessel Operating Common Carrier (NVOCC), for approximately $10.8 million (see Note 5). Challenger is headquartered in Eatontown, New Jersey. In June 2016, the Company purchased Hybrid Logistics, Inc. and its affiliate, General Transportation Services, Inc. (collectively, Hybrid), asset light truck brokers, for approximately $12.0 million (see Note 5). Hybrid is headquartered in Portland, Oregon. The Company’s common stock is traded on the New York Stock Exchange under the symbol “CAI.” The Company’s corporate headquarters are located in San Francisco, California. Basis of Presentation The accompanying unaudited consolidated financial statements include the financial statements of CAI International, Inc. , its wholly-owned subsidiaries, and its previously 80% -owned subsidiary, CAIJ, Inc. (CAIJ) , up to its date of disposal in April 2016 . All significant intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the Company’s financial position as of September 30, 2016 and December 31, 201 5 , the Company’s results of operations for the three and nine months ended September 30, 2016 and 2015, and the Company’s cash flows for the nine months ended September 30, 2016 and 2015. The results of operations and cash flows for the periods presented are not necessarily indicative of the results of operations or cash flows which may be reported for the remainder of 201 6 or in any future period. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) h ave been condensed or omitted. The accompanying unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 201 5 , included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC) on March 3, 2016 . |
Accounting Policies And Recent
Accounting Policies And Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies And Recent Accounting Pronouncements [Abstract] | |
Accounting Policies And Recent Accounting Pronouncements | (2) Accounting Policies and Recent Accounting Pronouncements (a) Accounting Policies Container rental equipment is recorded at original cost and depreciated to an estimated residual value on a straight-line basis over its estimated useful life. The estimated useful lives and residual values of the Company’s container equipment are based on historical disposal experience and the Company’s expectations for future used container sale prices. Depreciation estimates are reviewed on a regular basis to determine whether changes have taken place that would suggest that a change in depreciation estimates , useful lives of its equipment or the assigned residual values, is warranted. After the Company conducted its regular depreciation policy review, it concluded that a change in the estimated residual value for 40-foot high cube dry van containers from $1,650 to $1,400 per container , effective July 1, 2016 , was appropriate . The change increased the Company’s d epreciation expense by $3.4 million , decreased net income by $3.2 million, and decreased diluted earnings per share by $0.17 for the three and nine months ended September 30, 2016. Depreciation estimates were last changed for 40-foot high cube dry van containers (and other container types within the Company’s fleet) during 2012. Since that time, disposal prices for 40-foot high cube dry van containers have declined and the Company experienced losses when selling certain of these assets during 2015 and 2016. The change in residual value estimate was made to better align residual value with expectations for future used container sale prices. In considering changes to residual values for the three major dry van categories, the Company reviewed 3-year, 5-year, 7-year, and 11-year average disposition pricings trends. As with all estimates, particularly related to long-lived assets, current market performance may not necessarily be indicative of long-term residual values, so the Company does not adjust residual values to point-in-time prices. Rather, the Company considers the mix of data shown in the following table and uses the average over time to either confirm residual value estimates or support revisions to those estimates. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The sale-related unit proceeds by dry van container category that we considered as of September 30, 2016 are shown below: Category 3-year Avg. 5-year Avg. 7-year Avg. 11-year Avg. 20-ft. standard dry van containers $ 989 $ 1,112 $ 1,158 $ 1,133 40-ft. standard dry van containers 1,229 1,399 1,458 1,394 40-ft. high cube dry van containers 1,262 1,440 1,532 1,529 The Company’s residual value estimates ( $1,050 for a 20-ft. dry van, $1,300 for a 40-ft. dry van, and $1,400 for a 40-ft. high cube dry van) are lower in each instance than the historical averages, with the exception of the 3-year average. While the Company experienced losses when selling certain of these assets during 2015 and 2016, the Company does not adjust long-term residual value estimates based on short-term data points, such as current year sale results and the 3-year average shown above, as the Company does not believe they are indicative of a change in the long-term market value for these containers. The Company does regularly review this data and updates the analysis, and will make further revisions to residual value estimates as and when conditions warrant. The largest segment of the Company’s non-dry van container fleet consists of 20-ft. refrigerated containers and 40-ft. high cube refrigerated containers. The Company regularly reviews the residual value estimates associated with its refrigerated containers. Given the specific nature of these assets and the lower volumes of containers that are sold each year in the secondary market, there is less variability in asset pricing. Similar to the Company’s dry van containers, the Company evaluates the relationship between sales prices and residual values over a long-term horizon. When measured at September 30, 2016, sales proceeds for 20-ft. refrigerated and 40-ft. high cube refrigerated containers averaged $3,180 and $4,065 , respectively, over the prior 3-year period, and $3,219 and $4,111 , respectively, over the prior 5-year period. The Company excluded 7-year and 11-year historical averages from its analysis as it does not have a long enough history of sales for refrigerated containers. The current residual values for 20-ft. refrigerated and 40-ft. high cube refrigerated containers are set at $2,750 and $3,500 , respectively. Based on the data trends, the Company believes that the residual value estimates for its refrigerated containers are appropriate and do not warrant revision. The Company continuously monitors disposal prices across its entire portfolio for indications of a deeper, more sustained market downturn. If necessary, the Company will adjust its estimates if there are indicators that the current weak market for containers will be sustained over a longer time horizon. There were no other changes to the Company’s accounting policies during the nine months ended September 30, 2016. See Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 3, 2016, for a description of the Company’s significant accounting policies. (b) Recent Accounting Pronouncements In May 2014, the Financial Account in g Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU No. 2014-09). This new standard will replace all current U.S. GAAP guidance on this topic and eliminates industry-specific guidance. Leasing revenue recognition is specifically excluded from this ASU, and therefore, the new standard will only apply to management fee revenue, sales of equipment portfolios, sales of used equipment and the provision of logistics services. The guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. Adoption of the guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendment to the Consolidation Analysis (ASU No. 2015-02). The new guidance changes (1) the identification of variable interests (fees paid to a decision maker or service provider), (2) the variable interest entity (VIE) characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-02 effective January 1, 2016, and adoption had no impact on the Company’s consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU No. 2015-03) . The new guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU No. 2015-03 effective January 1, 2016. Adoption of the guidance resulted in the reclassification of unamortized debt issuance costs of $12.7 million and $13.0 million as of September 30, 2016 and December 31, 2015, respectively, from prepaid expenses and other current assets to a reduction of debt on the Company’s consolidated balance sheets. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes (ASU No. 2015-17). The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, with early adoption permitted. The new guidance may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively. The Company early adopted ASU No. 2015-07 effective December 31, 2015 on a prospective basis. No prior periods were retrospectively adjusted, and adoption did not have an impact on the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU No. 2016-02). The new standard will replace all current U.S. GAAP guidance on this topic. The new guidance will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases, with the exception of leases that meet the definition of a short-term lease. Lessor accounting will remain similar to the current model. The guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The new guidance must be adopted using a modified retrospective transition and is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU No. 2016-09), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The guidance is effective beginning in the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the impact that the new guidance will have on the Company’s consolidated financial statements and related disclosures. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flow (Topic 230) (ASU No. 2016-15). The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, and proceeds from the settlement of insurance claims, among others. The guidance is effective for financial statements issued for fiscal years beginning after December 31, 2017, and interim periods within those fiscal years. Early adoption is permitted, provided that all of the amendments are adopted in the same period, and must be applied using a retrospective transition method. Adoption of the guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Insurance Receivable and Impair
Insurance Receivable and Impairment | 9 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Insurance Receivable and Impairment | (3) Insurance Receivable and Impairment In August 2016, Hanjin Shipping Co., Ltd. filed for court protection from its creditors. Based on prior experience, the Company believes that most of its containers will be recovered. The Company maintains insurance to cover the value of containers that are unlikely to be recovered from its customers, the cost to recover containers and up to 180 days of lost lease rental income. Accordingly, during the three months ended September 30, 2016, an impairment charge was recorded to write off containers with a book value of $3.2 million, which the Company does not expect to recover . An insurance receivable of $1.4 million was recorded for $1.2 million of estimated proceeds for irrecoverable containers and $0.2 million of recovery costs recorded as a reduction to storage, handling and other expenses. The impairment, net of estimated insurance proceeds of $2.0 million, was recorded in depreciation expense in the consolidated statements of income for the three and nine months ended September 30, 2016. In addition, bad debt expense of $2.5 million was recorded in the consolidated statements of income for the three and nine months ended September 30, 2016, to fully reserve for the customer’s outstanding accounts receivable. |
Consolidation Of Variable Inter
Consolidation Of Variable Interest Entities As A Non-Controlling Interest | 9 Months Ended |
Sep. 30, 2016 | |
Consolidation Of Variable Interest Entities As A Non-Controlling Interest [Abstract] | |
Consolidation Of Variable Interest Entities As A Non-Controlling Interest | (4 ) Consolidation of Variable Interest Entities as a Non-Controlling Interest The Company regularly performs a review of its container fund arrangements with investors to determine whether or not it has a variable interest in the fund and if the fund is a variable interest entity ( VIE ). If it is determined that the Company does not have a variable interest in the fund, further analysis is not required and the Company does not consolidate the fund. If it is determined that the Company does have a variable interest in the fund and the fund is a VIE, a further analysis is performed to determine if the Company is a primary beneficiary of the VIE and meets both of the following criteria under ASC Topic 810: · It has power to direct the activities of a VIE that most significantly impact the VIE ’s economic performance; and · It has the obligation to absorb losses of the VIE that could be potentially significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. If in the Company’s judgment both of the above criteria are met, the VIE’s financial statements are included in the Company’s consolidated financial statements as required under ASC Topic 810, Consolidation . CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Company currently enters into two types of container fund arrangements with investors which are reviewed under ASC Topic 810, Consolidation . These arrangements include container funds that the Company manages for investors and container funds that have entered into financing arrangements with investors . Several of the funds that the Company manages and funds under financing arrangements are Japanese container funds that were established under separate investment agreements allowed under Japan ese commercial laws (see Note 14 ). Each of the funds is financed by unrelated Japanese third party investors. Managed Container Funds The fees earned by the Company for arranging, managing and establishing container funds are commensurate with the level of effort required to provide those services, and are at or above the same level of seniority as other operating liabilities of the funds that are incurred in the normal course of business. As such, the Company does not have a variable interest in the managed containers funds , and does not consolidate those funds. The Company recognizes gain on sale of containers to the unconsolidated funds as sales in the ordinary course of business. No container portfolios were sold to the Japanese funds in the three and nine months ended September 30, 2016 and 2015. Collateralized Financing Obligations As of September 30, 2016 , the Company has transferred containers , with a total net book value o f $ 191.8 million at the time of transfer , to Japanese investor funds while concurrently entering into lease agreements for the same containers, un der which the Company leases the containers back from the Japanese investors. In accordance with ASC Topic 840, Sale-Leaseback Transactions, the Company concluded these were financing transactions under which sale-leaseback accounting was not applicable. The terms of the transactions with container funds under financing arrangements include options for the Company to purchase the containers from the funds at a fixed price. As a result of the residual interest resulting from the fixed price call option, the Company concluded that it may absorb a significant amount of the variability associated with the funds’ anticipated economic performance and, as a result, the Company has a variable interest in the funds. The funds are considered VIEs under ASC Topic 810, Consolidation , because, as lessee of the funds, the Company has the power to direct the activities that most significantly impact each entity’s economic performance , including the leasing and managing of containers owned by the funds. As the Company has the power to direct the activities that most significantly impact the economic performance of the VIEs and the variable interest provides the Company with the right to receive benefits from the entity that could potentially be significant to the funds, the Company determined that it is the primary beneficiary of these VIEs and included the VIEs’ assets and liabilities as of September 30, 2016, and December 31, 201 5 , and the results of the VIEs’ operations and cash flows for the three and nine months ended September 30, 2016 and 2015 , in the Company’s consolidated financial statements. The containers that were transferred to the Japanese investor fund s had a net book value of $69.6 million as of September 30, 2016. The container equipment, together with $22.0 million of cash held by the investor funds, has been included on the Company’s consolidated balance sheets with the offsetting liability related to the funds presented in the debt section of the Company’s consolidated balance sheets as collateralized financing obligations of $91.6 million and term loans held by VIE of $5.8 million. See Note 9 (e) and 9 (f) for additional information. No gain or loss was recognized by the Company on the initial consolidation of the VIEs. Containers sold to the Japanese investor funds during the three months ended September 30, 2016 and 2015 , had book values of $9.2 million and $6.8 million, respectively. Containers sold to the Japanese investor funds during the nine months ended September 30, 2016 and 2015 , had book values of $26.1 million and $21.6 million, respectivel y. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | ( 5 ) Acquisition s During the nine months ended September 30, 2016, the Company completed the acquisitions of C hallenger and Hybrid, for total consideration of $22.8 million, $6.0 million of which was contingent and based on their future performance. During the three months ended September 30, 2016, the Company decreased its estimate of the acquired companies’ future performance, and as a result reduced the contingent consideration by $1.0 million. Expected future payments of $3.5 million and $1.5 million are recorded in Other long-term liabilities and Accrued expenses and Other current liabilities, respectively, in the Company’s consolidated balance sheet at September 30, 2016. The acquisitions were not material to the Company’s consolidated financial statements, either individually or in the aggregate. Accordingly, pro forma results of operations related to these business acquisitions during the nine months ended September 30, 2016 have not been presented. The Company has included the financial results of these business acquisitions in its consolidated financial statements from their respective date of acquisition. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table summarizes the allocation of the total consideration transferred (in thousands): Cash $ 1,186 Accounts receivable 5,840 Property and equipment 145 Goodwill 12,674 Intangible assets 9,912 Other assets 276 Total assets 30,033 Accounts payable 4,437 Deferred tax liability 2,184 Other liabilities 605 Total liabilities 7,226 Purchase price $ 22,807 Adjustments to record the assets acquired and liabilities assumed at fair value include the recognition of $ 9.9 million of intangible assets as follows: Amount Estimated Life Tradenames $ 1,188 5 years Customer relationships 8,724 8 years |
Rental Equipment
Rental Equipment | 9 Months Ended |
Sep. 30, 2016 | |
Rental Equipment [Abstract] | |
Rental Equipment | (6 ) Rental Equipment The following table provides a summary of the Company’s rental equipment (in thousands): September 30, December 31, 2016 2015 Dry containers $ 1,348,207 $ 1,392,825 Refrigerated containers 327,116 308,374 Other specialized equipment 164,212 152,310 Railcars 352,920 244,512 2,192,455 2,098,021 Accumulated depreciation (406,081) (349,810) Rental equipment, net of accumulated depreciation $ 1,786,374 $ 1,748,211 |
Net Investment In Direct Financ
Net Investment In Direct Finance Leases | 9 Months Ended |
Sep. 30, 2016 | |
Net Investment In Direct Finance Leases [Abstract] | |
Net Investment In Direct Finance Leases | (7 ) Net Investment in Direct Finance Leases The following table represents the components of the Company’s net investment in direct finance leases (in thousands): September 30, December 31, 2016 2015 Gross finance lease receivables (1) $ 121,103 $ 124,747 Unearned income (2) (20,269) (21,379) Net investment in direct finance leases $ 100,834 $ 103,368 (1) At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received. There was no unguaranteed residual value at September 30, 2016 and December 31, 2015 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of September 30, 2016 and December 31, 2015. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (2) The difference between the gross finance lease receivables and the cost of the equipment or carrying amount at the lease inception is recorded as unearned income. Unearned income, together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of September 30, 2016 and December 31, 2015. In order to estimate the allowance for losses contained in gross finance lease receivables, the Company reviews the credit worthiness of its customers on an ongoing basis. The review includes monitoring credit quality indicators, the aging of customer receivables and general economic conditions. 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 that 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 the Company 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 moderate. Tier 2 — These customers are typically either smaller shipping lines or freight forwarders with less operating scale or 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. Based on the above categories, the Company's gross finance lease receivables were as follows (in thousands): September 30, December 31, 2016 2015 Tier 1 $ 76,535 $ 86,981 Tier 2 44,568 37,766 Tier 3 - - $ 121,103 $ 124,747 Contractual maturities of the Company's gross finance lease receivables subsequent to and as of September 30, 2016 for the years ending September 30 were as follows (in thousands): 2017 $ 39,070 2018 30,819 2019 20,222 2020 11,697 2021 9,594 2022 and thereafter 9,701 $ 121,103 |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2016 | |
Intangible Assets [Abstract] | |
Intangible Assets | ( 8 ) Intangible Assets The Company amortizes intangible assets on a straight line basis over their estimated useful lives as follows: Trademarks and tradenames 1 - 10 years Customer relationships 8 years Total amortization expense was $0.4 million and less than $0.1 million for the three months ended September 30, 2016 and 2015, respectively, and $0.7 m illion and $0.2 million for the nine months ended September 30, 2016 and 2015, respectively . CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Intangible assets as of September 30, 2016 and December 31, 201 5 were as follows (in thousands): Gross Carrying Amount Accumulated Amortization Net Carrying Amount September 30, 2016 Trademarks and tradenames $ 3,028 $ (1,470) $ 1,558 Customer relationships 9,344 (449) 8,895 $ 12,372 $ (1,919) $ 10,453 December 31, 2015 Trademarks and tradenames $ 1,840 $ (1,218) $ 622 Customer relationships 620 (19) 601 $ 2,460 $ (1,237) $ 1,223 As of September 30, 2016, estimated future amortization expenses are as follows (in thousands): 2017 $ 1,519 2018 1,519 2019 1,519 2020 1,517 2021 1,318 2022 and thereafter 3,061 $ 10,453 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt [Abstract] | |
Debt | ( 9 ) Debt Details of the Company’s debt as of September 30, 2016 and December 31, 201 5 were as follows (dollars in thousands): September 30, 2016 December 31, 2015 Outstanding Average Outstanding Average Reference Current Long-term Interest Current Long-term Interest Maturity (a)(i) Revolving credit facility $ 4,500 $ 504,000 2.3% $ 8,500 $ 488,000 1.8% March 2020 (a)(ii) Revolving credit facility - Rail - 202,500 2.0% 34,500 126,000 1.9% October 2020 (b)(i) Term loan 1,800 22,350 2.6% 1,800 23,700 2.3% April 2018 (b)(ii) Term loan 9,000 123,000 2.2% 9,000 129,750 2.2% October 2019 (b)(iii) Term loan 7,000 91,250 2.4% 9,940 99,440 1.9% June 2021 (b)(iv) Term loan 1,148 18,016 3.4% 1,119 18,881 3.4% December 2020 (b)(v) Term loan 2,681 47,050 3.6% - - - August 2021 (c) Senior secured notes 6,110 64,995 4.9% 7,175 71,105 4.9% September 2022 (d) Asset backed notes 40,000 212,875 3.4% 40,000 242,875 3.4% March 2028 (e) Collateralized financing obligations 29,227 62,349 1.0% 58,553 53,697 0.7% June 2019 (f) Term loans held by VIE 1,829 3,998 2.7% 1,829 5,748 2.6% June 2019 103,295 1,352,383 172,416 1,259,196 Debt issuance costs (3,544) (9,107) (2,820) (10,139) Total Debt $ 99,751 $ 1,343,276 $ 169,596 $ 1,249,057 CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (a) Revolving Credit Facilities Revolving credit facilities consist of the following: (i) On March 15, 2013, the Company entered into the Third Amended and Restated Revolving Credit Agreement, as amended, with a consortium of banks to finance the acquisition of container rental equipment and for general working capital purposes. On January 30, 2015, the Company entered into an amendment to the Third Amended and Restated Revolving Credit Agreement, pursuant to which the revolving credit facility was amended to extend the maturity date to March 15, 2020 , reduce the interest rate, increase the commitment level from $760.0 million to $775.0 million, and revise certain of the covenants and restrictions to provide the Company with additional flexibility. As of September 30, 2016 , the maximum commitment under the revolving credit facility was $775.0 million. The revolving credit facility may be increased up to a maximum of $960.0 million, in accordance with the terms of the agreement, so long as no default or event of default exists either before or immediately after giving effect to the increase. There is a commitment fee on the unused amount of the total commitment, payable quarterly in arrears. The revolving credit facility provides that swing line loans (short-term borrowings of up to $25.0 million in the aggregate that are payable within 10 business days or at maturity date, whichever comes earlier) and standby letters of credit (up to $30.0 million in the aggregate) will be available to the Company. These credit commitments are part of, and not in addition to, the total commitment provided under the revolving credit facility. The interest rates vary depending upon whether the loans are characterized as Base Rate loans or Eurodollar rate loans, as defined in t he revolving credit agreement. Interest rates are based on LIBOR for Eurodollar loans and Base Rate for Base Rate loans. In addition to various financial and other covenants, the Company’s revolving credit facility also includes certain restrictions on the Company’s ability to incur other indebtedness or pay dividends to stockholders. As of September 30, 2016 , the Company was in compliance with the terms of the revolving credit facility. As of September 30, 2016 , the Compan y had $266.4 million in availability under the revolving credit facility (net of $0.1 million in letters of credit) subject to its ability to meet the coll ateral requirements under the agreement governing the facility. Based on the borrowing base and collateral requirements at September 30, 2016, the borrowing availability under the revolving credit facility was $74.9 million, assuming no additional contribution of assets. The entire amount of the facility drawn at any time plus accrued interest and fees is callable on demand in the event of certain specified events of default. The Company’s revolving credit facility, including any amounts drawn on the facility, is secured by substantially all of the assets of the Company (not otherwise used as security for its other credit facilities) including equipment owned by the Company, which had a net book value of $704.9 million as of September 30, 2016, the underlying leases and the Company’s interest in any money received under such contracts. (ii) On October 22, 2015, the Company and CAI Rail Inc. (CAI Rail), a wholly-owned subsidiary of the Company, entered into the Second Amended and Restated Revolving Credit Agreement with a consortium of banks, pursuant to which the prior revolving credit facility was amended to extend the maturity date to October 22, 2020 , reduce the interest rate, increase the commitment level from $250.0 million to $500.0 million, which may be increased up to a maximum of $700.0 million subject to certain conditions, and revise certain of the covenants and restrictions under the prior facility to provide the Company with additional flexibility. As of September 30, 2016 , the maximum credit commitment under the revolving credit facility was $500.0 million. Borrowings under this revolving credit facility bear interest at a variable rate. The interest rates vary depending upon whether the loans are characterized as Base Rate loans or Eurodollar rate loans, as defined in the revolving credit agreement. Interest rates are based on LIBOR for Eurodollar loans and Base Rate for Base Rate loans. As of September 30, 2016, CAI Rail ha d $297.5 million in availability under the revolving credit facility, subject to its ability to meet the collateral requirements under the agreement governing the facility. Based on the borrowing base and collateral requirements at September 30, 2016, the borrowing availability under the revolving credit facility was $2.0 m illion, assuming no additional contribution of assets. The entire amount of the facility drawn at any time plus accrued interest and fees is callable on demand in the event of certain specified events of default. The agreement governing CAI Rail’s revolving credit facility contains various financial and other covenants. As of September 30, 2016, CAI Rail was in compliance with the terms of the revolving credit facility. CAI Rail’s revolving credit facility, including any amounts drawn on the facility, is secured by all of the assets of CAI Rail, which had a net book value o f $254.5 million as of September 30, 2016, and is guaranteed by the Company. (iii) On September 23, 2016, the Company and CAI International GmbH, a wholly-owned subsidiary of the Company, entered into a Revolving Credit Agreement with a financial institution to finance the acquisition of rental equipment. As of September 30, 2016, the maximum credit commitment under the revolving credit facility was EUR 25.0 million. Borrowings under this revolving credit facility bear interest at a variable rate. Interest rates are based on EURIBOR. As of September 30, 2016, the Company had not drawn on the facility. The entire amount of the facility drawn at any time plus accrued interest and fees is callable on demand in the event of certain specified events of default. The revolving credit facility matures in September 2020 . CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (b) Term Loans Term loans consist of the following: (i ) On March 22, 2013, the Company entered into a $30.0 million five -year term loan agreement with Development Bank of Japan (DBJ). The loan is payable in 19 quarterly installments of $0.5 million starting July 31, 2013 and a final payment of $21.5 million on April 30, 2018 . The loan bears interest at a variable rate based on LIBOR. As of September 30, 2016 , the loan had a balance o f $24.2 millio n. (ii) On December 20, 2010, the Company entered into a term loan agreement with a consortium of banks. Under this loan agreement, the Company was eligible to borrow up to $300.0 million, subject to certain borrowing conditions, which amount is secured by certain assets of the Company’s whol ly-owned foreign subsidiaries. The loan agreement is an amortizing facility with a term of six years. The interest rates vary depending upon whether the loans are characterized as Base Rate loans or Eurodollar rate loans, as defined in the term loan agreement. The loan bears a variable interest rate based on LIBOR for Eurodollar loans, and Base Rate for base rate loans. On March 28, 2013, the term loan was amended which reduced the principal balance of the loan from $249.4 million to $125.0 million through payment of $124.4 million from the proceeds of the $229.0 million fixed-rate asset-backed notes issued by the Company’s indirect wholly-owned subsidiary, CAL Funding II Limited (see Note 9 (d) below). On October 1, 2014, the Company entered into an amended and restated term loan agreement, pursuant to which the prior loan agreement was refinanced. The amended and restated term loan agreement, which contains similar terms to the prior loan agreement, was amended to, among other things: (a) reduce borrowing rates from LIBOR plus 2.25% to LIBOR plus 1.6% (per annum) for Eurodollar loans, (b) increase the loan commitment from $115.0 million to $150.0 million, (c) extend the maturity date to October 1, 2019 , and (d) revise certain of the covenants and restrictions under the prior loan agreement to provide the Company with additional flexibility. As of September 30, 2016 , the term loan had a balance o f $132.0 m illion. (iii) On April 11, 2012, the Company entered into a term loan agreement with a consortium of banks. The agreement, as amended, provide d for a five -year term loan of up to $142.0 million, subject to certain borrowing conditions, which amount is secured by certain assets of the Company. On June 30, 2016, the Company entered into an amended and restated term loan agreement, pursuant to which the prior loan agreement was refinanced. The amended and restated term loan agreement, which contains similar terms to the prior loan agreement, was amended to, among other things: (a) provide the Company with the ability to increase the commitments under the facility to a maximum of $100.0 million, subject to certain conditions, (2) extend the maturity date to June 30, 2021 , and (c) revise certain of the covenants and restrictions under the prior agreement to provide the Company with additional flexibility. The term loan’s outstanding principal is amortized quarterly, with quarterly payments equal to 1.75% multiplied by the original outstanding principal. The amended and restated term loan agreement bears a variable interest rate based on LIBOR for Eurodollar loans, and Base Rate for base rate loans. As of September 30, 2016 , the loan had a balance of $98.3 mi llion. (i v ) On December 22, 2015, the Company and CAI Rail entered into a $20.0 million five -year term loan agreement with a financial institution. The term loan’s outstanding principal bears interest at a fixed rate of 3.4% per annum and is amortized quarterly. Any unpaid principal and interest is due and payable on December 22, 2020 . The proceeds from the term loan were primarily used to repay outstanding amounts under CAI Rail’s revolving credit facility. As of September 30, 2016, the loan had a balance o f $19.2 m illion. (v ) On August 30, 2016, CAI Rail entered into a term loan agreement of up to $100.0 million with a consortium of banks for the acquisition of railcars, subject to certain borrowing conditions, which is secured by certain railcars and other assets of CAI Rail. The loan agreement is an amortizing facility with a term of five years. Borrowings under the loan bear interest at a fixed rate as specified in the applicable term note entered into at the time a draw is made under the loan agreement. Principal and interest on the borrowings are payable monthly during the five-year term of the note. At closing of the loan agreement, CAI Rail made a draw of $50.0 million on the facility at a fixed interest rate of 3.6% per annum. Any unpaid principal and interest is due on August 30, 2021 . As of September 30, 2016, the loan had a balance of $49.7 million. The Company’s term loans are secured by rental equipment owned by the Company, which had a net book value of $383.1 million as of September 30, 2016. (c) Senior Secured Notes On September 13, 2012, Container Applications Limited (CAL), a wholly-owned subsidiary of the Company, entered into a Note Purchase Agreement with certain institutional investors, pursuant to which CAL issued $103.0 million of its 4.90% Senior Secured Notes due September 13, 2022 (the Notes) to the investors. The Notes are guaranteed by the Company and secured by certain assets of CAL and the Company. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The Notes bear interest at 4.9% per annum, due and payable semiannually on March 13 and September 13 of each year, commencing on March 13, 2013. In addition, CAL is required to make certain principal payments on March 13 and September 13 of each year, commencing on March 13, 2013. Any unpaid principal and interest is due and payable on September 13, 2022. The Note Purchase Agreement provides that CAL may prepay at any time all or any part of the Notes in an amount not less than 10% of the aggregate principal amount of the Notes then outstanding. As of September 30, 2016 , the Notes had a balance o f $71.1 million. The Notes are secured by certain rental equipment owned by the Company, which had a net book value of $95.8 mil lion as of September 30, 2016. (d) Asset-Backed Notes On October 18, 2012, CAL Funding II Limited (CAL II), a wholly-owned indirect subsidiary of CAI, issued $171.0 million of 3.47% fixed rate asset-backed notes (Series 2012-1 Asset-Backed Notes). Principal and interest on the Series 2012-1 Asset-Backed Notes is payable monthly commencing on November 26, 2012, and the Series 2012-1 Asset-Backed Notes mature in October 2027 . The proceeds from the Series 2012-1 Asset-Backed Notes were used to repay part of the Company’s borrowings under its senior revolving credit facility. As of September 30, 2016, the Series 2012-1 Asset-Backed Notes had a balance of $104.0 million. On March 28, 2013, CAL II issued $229.0 million of 3.35% fixed rate asset-backed notes (Series 2013-1 Asset-Backed Notes). Principal and interest on the Series 2013-1 Asset-Backed Notes is payable monthly commencing on April 25, 2013, and the Series 2013-1 Asset-Backed Notes mature in March 2028 . The proceeds from the Series 2013-1 Asset-Backed Notes were used partly to reduce the balance of the Company’s term loan as described in Note 9 (b)(ii) above, and to partially pay down the Company’s senior revolving credit facility. The Series 2013-1 Asset-Backed Notes had a balance of $148.9 million as of September 30, 2016. The Company’s asset-backed notes are secured by certain rental equipment owned by the Company, which had a net book value of $333.7 million as of September 30, 20 16. The agreements under each of the asset-backed notes described above require the Company to maintain a restricted cash account to cover p ayment of the obligations. As of September 30, 2016 , the restricted cash account had a balance of $6.4 m illion. (e) Collateralized Financing Obligations As of September 30, 2016 , the Company had collateralized financing obligations of $91.6 million (see Note 4 ). The obligations had an average interest rate of 1.0% as of September 30, 2016 with maturity dates between November 2016 and September 2019 . The debt is secured by a pool of containers covered under the financing arrangements. (f) Term Loans Held by VIE On June 25, 2014, one of the Japanese investor funds that is consolidated by the Company as a VIE (see Note 4 ) entered into a term loan agreement with a bank. Under the terms of the agreement, the Japanese investor fund entered into two loans; a five -year, amortizing loan of $9.2 million at a fixed interest rate of 2.7% , and a five -year, non-amortizing loan of $1.6 million at a variable interest rate based on LIBOR. The debt is secured by assets of the Japanese investor fund, and is subject to certain borrowing conditions set out in the loan agreem ent. As of September 30, 2016, the term loans held by the Japanese investor fund totaled $5.8 million and had an average interest rate o f 2.7% . The C ompany’s term loans held by VIE are secured by rental equipment owned by the Japanese investor fund, which had a net book value of $13.9 m illion as of September 30, 2016 . The agreements relating to all of the Company’s debt contain various financial and other covenants. As of September 30, 2016 , the Company was in compliance with all of its debt covenants. |
Stock-Based Compensation Plan
Stock-Based Compensation Plan | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation Plan [Abstract] | |
Stock-Based Compensation Plan | ( 10 ) Stock–Based Compensation Plan Stock Options The Company grants stock options to certain employees and independent directors pursuant t o its 2007 Equity Incentive Plan (Plan), as amended, which was originally adopted on April 23, 2007. Under the Plan, a maximum of 2,671,980 share awards may be granted. Stock options granted to employees have a vesting period of four years from grant date, with 25% vesting after one year, and 1/48th vesting each month thereafter until fully vested. Stock options granted to independent directors vest in one year. All of the stock options have a contractual term of ten years. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table summarizes the Company’s stock option activities for the nine months ended September 30, 2016 and 201 5 : Nine Months Ended September 30, 2016 2015 Weighted Weighted Average Average Number of Exercise Number of Exercise Shares Price Shares Price Options outstanding at January 1 1,189,255 $ 18.08 1,420,749 $ 15.67 Options granted 245,000 $ 7.87 183,000 $ 21.72 Options exercised - $ - (414,494) $ 11.45 Options forfeited/cancelled (6,000) $ 21.99 - $ - Options outstanding at September 30 1,428,255 $ 16.31 1,189,255 $ 18.08 Options exercisable 1,033,518 $ 17.47 884,817 $ 16.76 Weighted average remaining term 4.7 years 5.1 years The aggregate i ntrinsic value of stock options exercised during the nine months ended September 30, 2015 was $4.9 m illion. The aggregate intrinsic value of all options outstanding as of September 30, 2016 w as $0.7 mi llion based on the closing price of the Company’s common stock of $8.27 per s hare on September 30, 2016 , the last trading day of the quarter. The Company recorded stock-based compensation expense of $0.3 million and $0.4 million for the three months ended September 30, 2016 and 201 5, respectively, and $1.0 million and $1.2 million for the nine months ended September 30, 2016 and 2015, respectively . As of September 30, 2016 , the remaining unamortized stock-based compensation cost relating to stock options granted to the Company’s employees and independent directors was appro ximately $2.3 million which is to be recognized over the remaining weighted average vesting period of approximately 2.5 years. The fair value of stock options granted to the Company’s employees and independent directors was estimated using the Black-Scholes-Merton pricing model using the following weighted average assumptions: Nine Months Ended September 30, 2016 2015 Stock price $ 7.87 $ 21.72 Exercise price $ 7.87 $ 21.72 Expected term (years) 5.5 - 6.25 5.5 - 6.25 Expected volatility 45.4% - 46.7% 39.5% - 41.8% Risk-free interest rate 1.30% - 1.40% 1.85% - 2.00% Dividend yield - % - % The expected option term is calculated using the simplified method in accordance with SEC guidance. The expected volatility was derived from the average volatility of the Company’s stock over a period approximating the expected term of the options. The risk-free rate is based on the daily U.S. Treasury yield curve with a term approximating the expected term of the options. No forfeiture rate was estimated on all options granted during the nine months ended September 30, 2016 and 2015, as management believes that none of the grantees will leave the Company within the option vesting period. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Restricted Stock The Company grants restricted stock to certain employees pursuant to the Plan. The restricted stock is valued based on the closing price of the Company’s stock on the date of grant and has a vesting period of four years. The following table summarizes the activity of restricted stock under the Plan: Number of Weighted Shares of Average Restricted Grant Date Stock Fair Value Restricted stock outstanding, December 31, 2015 48,025 $ 22.70 Restricted stock granted 34,500 $ 7.87 Restricted stock vested (13,955) $ 23.52 Restricted stock forfeited (2,344) $ 21.96 Restricted stock outstanding, September 30, 2016 66,226 $ 14.83 The Company recognized $0.1 m illion of stock-based compensation expense relating to restricted stock for both the three months ended September 30, 2016 and 201 5, and $0.3 million for both the nine months ended September 30, 2016 and 2015 . As of September 30, 2016 , unamortized stock-based compen sation expense relating to restricted stock was $0.8 million, which will be recognized over the remaining average vesting period of 2.4 year s. Stock-based compensation expense is recorded as a component of administrative expense s in the Company’s consolidated statements of income with a corresponding credit to additional paid-in capital in the Company’s consolidated balance sheets. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | (11 ) Income Taxes The consolidated income tax expense for the three and nine months ended September 30, 2016 and 201 5, was determined based upon estimates of the Company’s consolidated effective income tax rates for the years ending December 31, 201 6 and 201 5 , respectively. The difference between the consolidated effective income tax rate and the U.S. federal statutory rate is primarily attributable to foreign income taxes, state income taxes and the effect of certain permanent differences. The Company’s estimated full year effective tax rate, before certain non-recurring discrete items, wa s 37.1% a t September 30, 2016 , compared to 8.8% at September 30, 2015 . The higher estimated full year effective tax rate at September 30, 2016 was due to the increase in the proportion of the railcar fleet’s pretax income, combined with a decrease of pretax income in lower tax jurisdictions that has led to a corresponding increase in the proportion of pretax income generated in higher tax jurisdictions. Income tax expense was also impacted by the Company’s determination that foreign tax credits arising from the sale of a subsidiary could not be utilized, resulting in a non-cash tax charge of $1.4 million during the three months ended September 30, 2016. The Company accounts for uncertain tax positions based on an evaluation as to whether it is more likely than not that a position will be sustained on audit, including resolution of any related appeals or litigation processes. This evaluation is based on all available evidence and assumes that the appropriate tax authorities have full knowledge of all relevant information concerning the tax position. Once it has been determined that a tax position is more likely than not to be sustained on its technical merits, the tax benefit recognized is based on the largest amount that is grea ter than 50% likely of being realized upon ultimate settlement. As of September 30, 2016, the Company had unrecognized tax benefits of $0.2 million, which if recognized, would reduce the Company’s effective tax rate. Total accrued interest relating to unrecognized tax benefits was less than $0.1 mi llion as of September 30, 2016. The Company does not believe the total amount of unrecognized tax benefits as of September 30, 2016 will change for th e remainder of 201 6 . |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Of Financial Instruments [Abstract] | |
Fair Value Of Financial Instruments | (12 ) Fair Value of Financial Instruments T he carrying amounts reported in the consolidated balance sheets for cash, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. The Company’s senior secured notes of $71.1 million, asset-backed notes of $252.9 million, and collateralized financing obligations of $91.6 million as of September 30, 2016 were estimated to have a fair value of approximately $72.3 million, $244.7 million, and $90.5 million, respectively, based on the fair value of estimated future payments calculated using prevailing interest rates. The fair value of these financial instruments would be categorized as Level 3 in the fair value hierarchy. Management believes that the balances of the Company’s revolving credit facilities of $711.0 million, term loans totaling $323.3 million, term loans held by VIE of $5.8 million, net inves tment in direct finance leases of $100.8 and liabilities relating to the expected future payments for its acquisitions (see Note 5) of $5.0 million approximate their fair values as of September 30, 201 6 . The fair value of these financial instruments would be categorized as Level 3 in the fair value hierarchy. |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (13) Commitments and Contingencies In addition to its debt obligations described in Note 9 above, the Company had commitments to purchase approximately $204. 7 million of rental equipment as of September 30, 2016; $159.2 million in the twelve months ending September 30, 2017, $32.1 million in the twelve months ending September 30, 2018, and $13.4 million in the twelve months ending September 30, 2019. The Company also utilizes certain office facilities and equipment under long-term non-cancellable operating lease agreements with total future minimum lease payments of approximately $2.3 million as of September 30, 2016. On October 21, 2016, the Company entered into an amendment to its m ulti- y ear r ail c ar o rder dated June 2 9, 2015, by which it modified the types of railcars yet to be delivered as of the effective date of the amendment, reduced the overall baseline pricing and revised the amounts and delivery dates for various car types. These changes are estimated to reduce the commitments noted above by approximately $10.0 million. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | ( 14 ) Related Party Transactions The Company transferred legal ownership of certain containers to Japanese container funds that were established by Japan Investment Adviser Co., Ltd. (JIA) and CAIJ, Inc. (CAIJ). Prior to April 2016, CAIJ was an 80% -owned subsidiary of CAI with the remaining 20% owned by JIA. Prior to the transfer of containers from the Company, the container funds received contributions from unrelated Japanese investors, under separate Japanese investment agreements allowed under Japanese commercial laws. The contributions were used to purchase container equipment from the Company. Under the terms of the agreements, the CAI-related Japanese entities manage the activities of certain Japanese entities but may outsource the whole or part of each operation to a third party. Pursuant to its services agreements with investors, the Japanese container funds outsourced the general management of their operations to CAIJ. The Japanese container funds also entered into equipment management service agreements and financing arrangements whereby the Company managed the leasing activity of containers owned by the Japanese container funds. As described in Note 4 , the Japanese managed container funds and financing arrangements are considered VIEs. However, with the exception of the financing arrangements described in Note 3, the Company does not consider its interest in the managed Japanese container funds to be a variable interest. As such, the Company did not consolidate the assets and liabilities, results of operations or cash flows of these funds in its consolidated financial statements. As described in Note 4 , the Company has included in its consolidated financial statements, the assets and liabilities, results of operations, and cash flows of the financing arrangements, in accordance with ASC Topic 810, Consolidation . |
Segment And Geographic Informat
Segment And Geographic Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment And Geographic Information [Abstract] | |
Segment And Geographic Information | (15 ) Segment and Geographic Information The Company organizes itself by the nature of the services it provides which includes equipment leasing, equipment management and logistics. The container leasing segment is aggregated with equipment management and derives its revenue from the ownership and leasing of containers and fees earned for managing container portfolios on behalf of third party investors . The rail leasing segment derives its revenue from the ownership and leasing of railcars. The logistics segment derives its revenue from the provision of logistics services. There are no inter-segment revenues. With the exception of administrative expenses, operating expenses are directly attributable to each segment. Administrative expenses that are not directly attributable to a segment are allocated to container or rail leasing based on the net book value of equipment in each segment. The following tables show condensed segment information for the three and nine months ended September 30, 2016 and 201 5 , reconciled to the Company’s net income before income taxes and non-controlling interest as shown in its consolidated statements of income for such periods (in thousands): Three Months Ended September 30, 2016 Container Leasing Rail Leasing Logistics Total Total revenue $ 49,661 $ 7,614 $ 21,197 $ 78,472 Total operating expenses 45,184 4,367 21,559 71,110 Operating income (loss) 4,477 3,247 (362) 7,362 Total other expenses 9,123 1,827 1 10,951 Net (loss) income before income taxes and non-controlling interest $ (4,646) $ 1,420 $ (363) $ (3,589) Goodwill $ - $ - $ 15,579 $ 15,579 Total assets $ 1,643,929 $ 343,214 $ 40,059 $ 2,027,202 Purchase of rental equipment (1) $ 19,730 $ 20,613 $ - $ 40,343 CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Three Months Ended September 30, 2015 Container Leasing Rail Leasing Logistics Total Total revenue $ 55,609 $ 5,102 $ 5,406 $ 66,117 Total operating expenses 35,554 1,589 5,718 42,861 Operating income (loss) 20,055 3,513 (312) 23,256 Total other expenses 8,114 855 - 8,969 Net income (loss) before income taxes and non-controlling interest $ 11,941 $ 2,658 $ (312) $ 14,287 Goodwill $ - $ - $ 2,905 $ 2,905 Total assets $ 1,788,760 $ 180,322 $ 7,510 $ 1,976,592 Purchase of rental equipment (1) $ 48,575 $ 19,135 $ - $ 67,710 Nine Months Ended September 30, 2016 Container Leasing Rail Leasing Logistics Total Total revenue $ 152,875 $ 22,462 $ 41,743 $ 217,080 Total operating expenses 121,519 12,363 42,522 176,404 Operating income (loss) 31,356 10,099 (779) 40,676 Total other expenses 27,072 4,738 1 31,811 Net income (loss) before income taxes and non-controlling interest $ 4,284 $ 5,361 $ (780) $ 8,865 Purchase of rental equipment (1) $ 68,183 $ 102,399 $ - $ 170,582 Nine Months Ended September 30, 2015 Container Leasing Rail Leasing Logistics Total Total revenue $ 166,731 $ 11,770 $ 5,474 $ 183,975 Total operating expenses 101,556 6,040 6,339 113,935 Operating income (loss) 65,175 5,730 (865) 70,040 Total other expenses 24,817 2,030 6 26,853 Net income (loss) before income taxes and non-controlling interest $ 40,358 $ 3,700 $ (871) $ 43,187 Purchase of rental equipment (1) $ 203,378 $ 101,210 $ - $ 304,588 (1 ) Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated. Geographic Data The Company earns its revenue primarily from international containers which are deployed by its customers in a wide variety of global trade routes. Virtually all of the Company’s containers are used internationally and typically no container is domiciled in one particular place for a prolonged period of time. As such, substantially all of the Company’s long-lived assets are considered to be international, with no single country of use. The Company’s railcars, with a net book value of $336.3 million as of September 30, 2016, are used primarily to transport cargo within North America. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The following table represents the geographic allocation of revenue for the periods indicated based on customers’ primary domicile (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 United States $ 35,290 $ 15,726 $ 82,444 $ 27,184 France 6,389 6,436 19,417 19,430 Japan 4,809 6,119 15,250 19,079 Switzerland 4,382 4,887 13,536 14,100 Korea 3,235 4,449 10,102 13,886 Other Asia 12,663 15,665 40,225 51,714 Other Europe 8,812 9,447 26,915 27,527 Other International 2,892 3,388 9,191 11,055 Total revenue $ 78,472 $ 66,117 $ 217,080 $ 183,975 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | ( 16 ) Earnings Per Share Basic earnings per share is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock; however, potential common equivalent shares are excluded if their effect is anti-dilutive. The following table sets forth the reconciliation of basic and diluted net income per share for the three and nine months ended September 30, 2016 and 2015 (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator Net (loss) income attributable to CAI common stockholders used in the calculation of basic and diluted (loss) earnings per share $ (5,415) $ 12,989 $ 5,508 $ 39,420 Denominator Weighted-average shares used in the calculation of basic (loss) earnings per share 19,130 20,920 19,427 20,973 Effect of dilutive securities: Stock options and restricted stock - 139 71 263 Weighted-average shares used in the calculation of diluted (loss) earnings per share 19,130 21,059 19,498 21,236 Net (loss) income per share attributable to CAI common stockholders: Basic $ (0.28) $ 0.62 $ 0.28 $ 1.88 Diluted $ (0.28) $ 0.62 $ 0.28 $ 1.86 The calculation of diluted earnings per share for the three months ended September 30, 2016 and 201 5, excluded from the denominat or 1,231,455 and 972,992 shares, respectively, of common stock options because their effect would have been anti-dilutive. The calculation of diluted earnings per share for the nine months ended September 30, 2016 and 2015 , excluded from the denominator 1,103,495 and 670,850 shares, respectively, of common stock option because their effect would have been anti-dilutive. |
Accounting Policies And Recen23
Accounting Policies And Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies And Recent Accounting Pronouncements [Abstract] | |
Accounting Policies | (a) Accounting Policies Container rental equipment is recorded at original cost and depreciated to an estimated residual value on a straight-line basis over its estimated useful life. The estimated useful lives and residual values of the Company’s container equipment are based on historical disposal experience and the Company’s expectations for future used container sale prices. Depreciation estimates are reviewed on a regular basis to determine whether changes have taken place that would suggest that a change in depreciation estimates , useful lives of its equipment or the assigned residual values, is warranted. After the Company conducted its regular depreciation policy review, it concluded that a change in the estimated residual value for 40-foot high cube dry van containers from $1,650 to $1,400 per container , effective July 1, 2016 , was appropriate . The change increased the Company’s d epreciation expense by $3.4 million , decreased net income by $3.2 million, and decreased diluted earnings per share by $0.17 for the three and nine months ended September 30, 2016. Depreciation estimates were last changed for 40-foot high cube dry van containers (and other container types within the Company’s fleet) during 2012. Since that time, disposal prices for 40-foot high cube dry van containers have declined and the Company experienced losses when selling certain of these assets during 2015 and 2016. The change in residual value estimate was made to better align residual value with expectations for future used container sale prices. In considering changes to residual values for the three major dry van categories, the Company reviewed 3-year, 5-year, 7-year, and 11-year average disposition pricings trends. As with all estimates, particularly related to long-lived assets, current market performance may not necessarily be indicative of long-term residual values, so the Company does not adjust residual values to point-in-time prices. Rather, the Company considers the mix of data shown in the following table and uses the average over time to either confirm residual value estimates or support revisions to those estimates. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) The sale-related unit proceeds by dry van container category that we considered as of September 30, 2016 are shown below: Category 3-year Avg. 5-year Avg. 7-year Avg. 11-year Avg. 20-ft. standard dry van containers $ 989 $ 1,112 $ 1,158 $ 1,133 40-ft. standard dry van containers 1,229 1,399 1,458 1,394 40-ft. high cube dry van containers 1,262 1,440 1,532 1,529 The Company’s residual value estimates ( $1,050 for a 20-ft. dry van, $1,300 for a 40-ft. dry van, and $1,400 for a 40-ft. high cube dry van) are lower in each instance than the historical averages, with the exception of the 3-year average. While the Company experienced losses when selling certain of these assets during 2015 and 2016, the Company does not adjust long-term residual value estimates based on short-term data points, such as current year sale results and the 3-year average shown above, as the Company does not believe they are indicative of a change in the long-term market value for these containers. The Company does regularly review this data and updates the analysis, and will make further revisions to residual value estimates as and when conditions warrant. The largest segment of the Company’s non-dry van container fleet consists of 20-ft. refrigerated containers and 40-ft. high cube refrigerated containers. The Company regularly reviews the residual value estimates associated with its refrigerated containers. Given the specific nature of these assets and the lower volumes of containers that are sold each year in the secondary market, there is less variability in asset pricing. Similar to the Company’s dry van containers, the Company evaluates the relationship between sales prices and residual values over a long-term horizon. When measured at September 30, 2016, sales proceeds for 20-ft. refrigerated and 40-ft. high cube refrigerated containers averaged $3,180 and $4,065 , respectively, over the prior 3-year period, and $3,219 and $4,111 , respectively, over the prior 5-year period. The Company excluded 7-year and 11-year historical averages from its analysis as it does not have a long enough history of sales for refrigerated containers. The current residual values for 20-ft. refrigerated and 40-ft. high cube refrigerated containers are set at $2,750 and $3,500 , respectively. Based on the data trends, the Company believes that the residual value estimates for its refrigerated containers are appropriate and do not warrant revision. The Company continuously monitors disposal prices across its entire portfolio for indications of a deeper, more sustained market downturn. If necessary, the Company will adjust its estimates if there are indicators that the current weak market for containers will be sustained over a longer time horizon. There were no other changes to the Company’s accounting policies during the nine months ended September 30, 2016. See Note 2 to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC on March 3, 2016, for a description of the Company’s significant accounting policies. |
Recent Accounting Pronouncements | (b) Recent Accounting Pronouncements In May 2014, the Financial Account in g Standards Board (FASB) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU No. 2014-09). This new standard will replace all current U.S. GAAP guidance on this topic and eliminates industry-specific guidance. Leasing revenue recognition is specifically excluded from this ASU, and therefore, the new standard will only apply to management fee revenue, sales of equipment portfolios, sales of used equipment and the provision of logistics services. The guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. Adoption of the guidance is not expected to have a material impact on the Company’s consolidated financial statements. In February 2015, the FASB issued Accounting Standards Update No. 2015-02, Consolidation (Topic 810): Amendment to the Consolidation Analysis (ASU No. 2015-02). The new guidance changes (1) the identification of variable interests (fees paid to a decision maker or service provider), (2) the variable interest entity (VIE) characteristics for a limited partnership or similar entity and (3) the primary beneficiary determination. The guidance is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-02 effective January 1, 2016, and adoption had no impact on the Company’s consolidated financial statements. In April 2015, the FASB issued Accounting Standards Update No. 2015-03, Simplifying the Presentation of Debt Issuance Costs (ASU No. 2015-03) . The new guidance requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The guidance is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption permitted. The Company adopted ASU No. 2015-03 effective January 1, 2016. Adoption of the guidance resulted in the reclassification of unamortized debt issuance costs of $12.7 million and $13.0 million as of September 30, 2016 and December 31, 2015, respectively, from prepaid expenses and other current assets to a reduction of debt on the Company’s consolidated balance sheets. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) In November 2015, the FASB issued Accounting Standards Update No. 2015-17, Balance Sheet Classification of Deferred Taxes (ASU No. 2015-17). The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. The guidance is effective for fiscal years beginning after December 15, 2016, including interim periods within those years, with early adoption permitted. The new guidance may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively. The Company early adopted ASU No. 2015-07 effective December 31, 2015 on a prospective basis. No prior periods were retrospectively adjusted, and adoption did not have an impact on the Company’s consolidated financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (ASU No. 2016-02). The new standard will replace all current U.S. GAAP guidance on this topic. The new guidance will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases, with the exception of leases that meet the definition of a short-term lease. Lessor accounting will remain similar to the current model. The guidance is effective for interim and annual periods beginning after December 15, 2018, with early adoption permitted. The new guidance must be adopted using a modified retrospective transition and is not expected to have a material impact on the Company’s consolidated financial statements. In March 2016, the FASB issued Accounting Standards Update No. 2016-09, Improvements to Employee Share-Based Payment Accounting (ASU No. 2016-09), which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification of related amounts within the statement of cash flows. The guidance is effective beginning in the first quarter of 2017, with early adoption permitted. The Company is currently evaluating the impact that the new guidance will have on the Company’s consolidated financial statements and related disclosures. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flow (Topic 230) (ASU No. 2016-15). The new guidance is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, and proceeds from the settlement of insurance claims, among others. The guidance is effective for financial statements issued for fiscal years beginning after December 31, 2017, and interim periods within those fiscal years. Early adoption is permitted, provided that all of the amendments are adopted in the same period, and must be applied using a retrospective transition method. Adoption of the guidance is not expected to have a material impact on the Company’s consolidated financial statements. |
Accounting Policies And Recen24
Accounting Policies And Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies And Recent Accounting Pronouncements [Abstract] | |
Schedule of Sales Proceeds | Category 3-year Avg. 5-year Avg. 7-year Avg. 11-year Avg. 20-ft. standard dry van containers $ 989 $ 1,112 $ 1,158 $ 1,133 40-ft. standard dry van containers 1,229 1,399 1,458 1,394 40-ft. high cube dry van containers 1,262 1,440 1,532 1,529 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Acquisitions [Abstract] | |
Schedule Of Allocation Of Total Consideration Transferred | Cash $ 1,186 Accounts receivable 5,840 Property and equipment 145 Goodwill 12,674 Intangible assets 9,912 Other assets 276 Total assets 30,033 Accounts payable 4,437 Deferred tax liability 2,184 Other liabilities 605 Total liabilities 7,226 Purchase price $ 22,807 |
Schedule Of Intangible Assets Acquired | Amount Estimated Life Tradenames $ 1,188 5 years Customer relationships 8,724 8 years |
Rental Equipment (Tables)
Rental Equipment (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Rental Equipment [Abstract] | |
Schedule Of Rental Equipment | September 30, December 31, 2016 2015 Dry containers $ 1,348,207 $ 1,392,825 Refrigerated containers 327,116 308,374 Other specialized equipment 164,212 152,310 Railcars 352,920 244,512 2,192,455 2,098,021 Accumulated depreciation (406,081) (349,810) Rental equipment, net of accumulated depreciation $ 1,786,374 $ 1,748,211 |
Net Investment In Direct Fina27
Net Investment In Direct Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Net Investment In Direct Finance Leases [Abstract] | |
Components Of Net Investment In Direct Finance Leases | September 30, December 31, 2016 2015 Gross finance lease receivables (1) $ 121,103 $ 124,747 Unearned income (2) (20,269) (21,379) Net investment in direct finance leases $ 100,834 $ 103,368 (1) At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received. There was no unguaranteed residual value at September 30, 2016 and December 31, 2015 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of September 30, 2016 and December 31, 2015. CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) (2) The difference between the gross finance lease receivables and the cost of the equipment or carrying amount at the lease inception is recorded as unearned income. Unearned income, together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of September 30, 2016 and December 31, 2015. |
Gross Finance Lease Receivables By Customer Categories | September 30, December 31, 2016 2015 Tier 1 $ 76,535 $ 86,981 Tier 2 44,568 37,766 Tier 3 - - $ 121,103 $ 124,747 |
Contractual Maturities Of Gross Finance Lease Receivables | 2017 $ 39,070 2018 30,819 2019 20,222 2020 11,697 2021 9,594 2022 and thereafter 9,701 $ 121,103 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Intangible Assets [Abstract] | |
Schedule Of Estimated Useful Lives | Trademarks and tradenames 1 - 10 years Customer relationships 8 years |
Schedule Of Intangible Assets | Gross Carrying Amount Accumulated Amortization Net Carrying Amount September 30, 2016 Trademarks and tradenames $ 3,028 $ (1,470) $ 1,558 Customer relationships 9,344 (449) 8,895 $ 12,372 $ (1,919) $ 10,453 December 31, 2015 Trademarks and tradenames $ 1,840 $ (1,218) $ 622 Customer relationships 620 (19) 601 $ 2,460 $ (1,237) $ 1,223 |
Schedule Of Estimated Future Amortization Expenses | 2017 $ 1,519 2018 1,519 2019 1,519 2020 1,517 2021 1,318 2022 and thereafter 3,061 $ 10,453 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt [Abstract] | |
Schedule Of Debt | September 30, 2016 December 31, 2015 Outstanding Average Outstanding Average Reference Current Long-term Interest Current Long-term Interest Maturity (a)(i) Revolving credit facility $ 4,500 $ 504,000 2.3% $ 8,500 $ 488,000 1.8% March 2020 (a)(ii) Revolving credit facility - Rail - 202,500 2.0% 34,500 126,000 1.9% October 2020 (b)(i) Term loan 1,800 22,350 2.6% 1,800 23,700 2.3% April 2018 (b)(ii) Term loan 9,000 123,000 2.2% 9,000 129,750 2.2% October 2019 (b)(iii) Term loan 7,000 91,250 2.4% 9,940 99,440 1.9% June 2021 (b)(iv) Term loan 1,148 18,016 3.4% 1,119 18,881 3.4% December 2020 (b)(v) Term loan 2,681 47,050 3.6% - - - August 2021 (c) Senior secured notes 6,110 64,995 4.9% 7,175 71,105 4.9% September 2022 (d) Asset backed notes 40,000 212,875 3.4% 40,000 242,875 3.4% March 2028 (e) Collateralized financing obligations 29,227 62,349 1.0% 58,553 53,697 0.7% June 2019 (f) Term loans held by VIE 1,829 3,998 2.7% 1,829 5,748 2.6% June 2019 103,295 1,352,383 172,416 1,259,196 Debt issuance costs (3,544) (9,107) (2,820) (10,139) Total Debt $ 99,751 $ 1,343,276 $ 169,596 $ 1,249,057 |
Stock-Based Compensation Plan (
Stock-Based Compensation Plan (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stock-Based Compensation Plan [Abstract] | |
Summary Of Stock Option Activities | Nine Months Ended September 30, 2016 2015 Weighted Weighted Average Average Number of Exercise Number of Exercise Shares Price Shares Price Options outstanding at January 1 1,189,255 $ 18.08 1,420,749 $ 15.67 Options granted 245,000 $ 7.87 183,000 $ 21.72 Options exercised - $ - (414,494) $ 11.45 Options forfeited/cancelled (6,000) $ 21.99 - $ - Options outstanding at September 30 1,428,255 $ 16.31 1,189,255 $ 18.08 Options exercisable 1,033,518 $ 17.47 884,817 $ 16.76 Weighted average remaining term 4.7 years 5.1 years |
Summary Of Fair Value Weighted Average Assumptions | Nine Months Ended September 30, 2016 2015 Stock price $ 7.87 $ 21.72 Exercise price $ 7.87 $ 21.72 Expected term (years) 5.5 - 6.25 5.5 - 6.25 Expected volatility 45.4% - 46.7% 39.5% - 41.8% Risk-free interest rate 1.30% - 1.40% 1.85% - 2.00% Dividend yield - % - % |
Summary Of Restricted Stock Activity | Number of Weighted Shares of Average Restricted Grant Date Stock Fair Value Restricted stock outstanding, December 31, 2015 48,025 $ 22.70 Restricted stock granted 34,500 $ 7.87 Restricted stock vested (13,955) $ 23.52 Restricted stock forfeited (2,344) $ 21.96 Restricted stock outstanding, September 30, 2016 66,226 $ 14.83 |
Segment And Geographic Inform31
Segment And Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment And Geographic Information [Abstract] | |
Schedule Of Segment Information | Three Months Ended September 30, 2016 Container Leasing Rail Leasing Logistics Total Total revenue $ 49,661 $ 7,614 $ 21,197 $ 78,472 Total operating expenses 45,184 4,367 21,559 71,110 Operating income (loss) 4,477 3,247 (362) 7,362 Total other expenses 9,123 1,827 1 10,951 Net (loss) income before income taxes and non-controlling interest $ (4,646) $ 1,420 $ (363) $ (3,589) Goodwill $ - $ - $ 15,579 $ 15,579 Total assets $ 1,643,929 $ 343,214 $ 40,059 $ 2,027,202 Purchase of rental equipment (1) $ 19,730 $ 20,613 $ - $ 40,343 CAI INTERNATIONAL, INC. NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED) Three Months Ended September 30, 2015 Container Leasing Rail Leasing Logistics Total Total revenue $ 55,609 $ 5,102 $ 5,406 $ 66,117 Total operating expenses 35,554 1,589 5,718 42,861 Operating income (loss) 20,055 3,513 (312) 23,256 Total other expenses 8,114 855 - 8,969 Net income (loss) before income taxes and non-controlling interest $ 11,941 $ 2,658 $ (312) $ 14,287 Goodwill $ - $ - $ 2,905 $ 2,905 Total assets $ 1,788,760 $ 180,322 $ 7,510 $ 1,976,592 Purchase of rental equipment (1) $ 48,575 $ 19,135 $ - $ 67,710 Nine Months Ended September 30, 2016 Container Leasing Rail Leasing Logistics Total Total revenue $ 152,875 $ 22,462 $ 41,743 $ 217,080 Total operating expenses 121,519 12,363 42,522 176,404 Operating income (loss) 31,356 10,099 (779) 40,676 Total other expenses 27,072 4,738 1 31,811 Net income (loss) before income taxes and non-controlling interest $ 4,284 $ 5,361 $ (780) $ 8,865 Purchase of rental equipment (1) $ 68,183 $ 102,399 $ - $ 170,582 Nine Months Ended September 30, 2015 Container Leasing Rail Leasing Logistics Total Total revenue $ 166,731 $ 11,770 $ 5,474 $ 183,975 Total operating expenses 101,556 6,040 6,339 113,935 Operating income (loss) 65,175 5,730 (865) 70,040 Total other expenses 24,817 2,030 6 26,853 Net income (loss) before income taxes and non-controlling interest $ 40,358 $ 3,700 $ (871) $ 43,187 Purchase of rental equipment (1) $ 203,378 $ 101,210 $ - $ 304,588 (1 ) Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated. |
Schedule Of Geographic Allocation Of Revenue | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 United States $ 35,290 $ 15,726 $ 82,444 $ 27,184 France 6,389 6,436 19,417 19,430 Japan 4,809 6,119 15,250 19,079 Switzerland 4,382 4,887 13,536 14,100 Korea 3,235 4,449 10,102 13,886 Other Asia 12,663 15,665 40,225 51,714 Other Europe 8,812 9,447 26,915 27,527 Other International 2,892 3,388 9,191 11,055 Total revenue $ 78,472 $ 66,117 $ 217,080 $ 183,975 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation Of Basic And Diluted Net Income Per Share | Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 Numerator Net (loss) income attributable to CAI common stockholders used in the calculation of basic and diluted (loss) earnings per share $ (5,415) $ 12,989 $ 5,508 $ 39,420 Denominator Weighted-average shares used in the calculation of basic (loss) earnings per share 19,130 20,920 19,427 20,973 Effect of dilutive securities: Stock options and restricted stock - 139 71 263 Weighted-average shares used in the calculation of diluted (loss) earnings per share 19,130 21,059 19,498 21,236 Net (loss) income per share attributable to CAI common stockholders: Basic $ (0.28) $ 0.62 $ 0.28 $ 1.88 Diluted $ (0.28) $ 0.62 $ 0.28 $ 1.86 |
The Company And Nature Of Ope33
The Company And Nature Of Operations (Details) - USD ($) $ in Millions | Jun. 30, 2016 | Mar. 31, 2016 | Feb. 29, 2016 | Jul. 31, 2015 |
ClearPointt [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition purchase price | $ 4.1 | |||
Challenger [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition purchase price | $ 10.8 | |||
Hybrid [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition purchase price | $ 12 | |||
CAIJ [Member] | ||||
Business Acquisition [Line Items] | ||||
Ownership percentage by parent | 80.00% |
Accounting Policies And Recen34
Accounting Policies And Recent Accounting Pronouncements (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | Dec. 31, 2015 | |
Depreciation expense | $ 29,873,000 | $ 22,655,000 | $ 77,401,000 | $ 65,907,000 | ||
Net income | $ (5,415,000) | $ 13,015,000 | $ 5,545,000 | $ 39,516,000 | ||
Earnings Per Share, Diluted | $ (0.28) | $ 0.62 | $ 0.28 | $ 1.86 | ||
Sales proceeds | $ 46,137,000 | $ 51,188,000 | ||||
20-ft. Standard Dry Van Container [Member] | ||||||
Residual value | $ 1,050 | 1,050 | ||||
40-ft. Standard Dry Van Container [Member] | ||||||
Residual value | 1,300 | 1,300 | ||||
40-ft. High Cube Dry Van Container [Member] | ||||||
Residual value | 1,400 | 1,400 | $ 1,650 | |||
20-ft. Refrigerated Container [Member] | ||||||
Residual value | 2,750 | 2,750 | ||||
40-ft. High Cube Refrigerated Container [Member] | ||||||
Residual value | 3,500 | 3,500 | ||||
Reclassification [Member] | ||||||
Unamortized debt issuance costs | 12,700,000 | 12,700,000 | $ 13,000,000 | |||
Reclassification [Member] | 40-ft. High Cube Dry Van Container [Member] | ||||||
Depreciation expense | 3,400,000 | 3,400,000 | ||||
Net income | $ 3,200,000 | $ 3,200,000 | ||||
Earnings Per Share, Diluted | $ 0.17 | $ 0.17 | ||||
3-year Avg. [Member] | 20-ft. Standard Dry Van Container [Member] | ||||||
Sales proceeds | $ 989 | |||||
3-year Avg. [Member] | 40-ft. Standard Dry Van Container [Member] | ||||||
Sales proceeds | 1,229 | |||||
3-year Avg. [Member] | 40-ft. High Cube Dry Van Container [Member] | ||||||
Sales proceeds | 1,262 | |||||
3-year Avg. [Member] | 20-ft. Refrigerated Container [Member] | ||||||
Sales proceeds | 3,180 | |||||
3-year Avg. [Member] | 40-ft. High Cube Refrigerated Container [Member] | ||||||
Sales proceeds | 4,065 | |||||
5-year Avg. [Member] | 20-ft. Standard Dry Van Container [Member] | ||||||
Sales proceeds | 1,112 | |||||
5-year Avg. [Member] | 40-ft. Standard Dry Van Container [Member] | ||||||
Sales proceeds | 1,399 | |||||
5-year Avg. [Member] | 40-ft. High Cube Dry Van Container [Member] | ||||||
Sales proceeds | 1,440 | |||||
5-year Avg. [Member] | 20-ft. Refrigerated Container [Member] | ||||||
Sales proceeds | 3,219 | |||||
5-year Avg. [Member] | 40-ft. High Cube Refrigerated Container [Member] | ||||||
Sales proceeds | $ 4,111 |
Accounting Policies And Recen35
Accounting Policies And Recent Accounting Pronouncements (Schedule of Sales Proceeds) (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Sales proceeds | $ 46,137,000 | $ 51,188,000 |
3-year Avg. [Member] | 20-ft. Standard Dry Van Container [Member] | ||
Sales proceeds | 989 | |
3-year Avg. [Member] | 40-ft. Standard Dry Van Container [Member] | ||
Sales proceeds | 1,229 | |
3-year Avg. [Member] | 40-ft. High Cube Dry Van Container [Member] | ||
Sales proceeds | 1,262 | |
5-year Avg. [Member] | 20-ft. Standard Dry Van Container [Member] | ||
Sales proceeds | 1,112 | |
5-year Avg. [Member] | 40-ft. Standard Dry Van Container [Member] | ||
Sales proceeds | 1,399 | |
5-year Avg. [Member] | 40-ft. High Cube Dry Van Container [Member] | ||
Sales proceeds | 1,440 | |
7-year Avg. [Member] | 20-ft. Standard Dry Van Container [Member] | ||
Sales proceeds | 1,158 | |
7-year Avg. [Member] | 40-ft. Standard Dry Van Container [Member] | ||
Sales proceeds | 1,458 | |
7-year Avg. [Member] | 40-ft. High Cube Dry Van Container [Member] | ||
Sales proceeds | 1,532 | |
11-year Avg. [Member] | 20-ft. Standard Dry Van Container [Member] | ||
Sales proceeds | 1,133 | |
11-year Avg. [Member] | 40-ft. Standard Dry Van Container [Member] | ||
Sales proceeds | 1,394 | |
11-year Avg. [Member] | 40-ft. High Cube Dry Van Container [Member] | ||
Sales proceeds | $ 1,529 |
Insurance Receivable and Impa36
Insurance Receivable and Impairment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net book value | $ 1,786,374 | $ 1,786,374 | $ 1,748,211 | ||
Depreciation expense | 29,873 | $ 22,655 | 77,401 | $ 65,907 | |
Bad debt expense | $ 2,458 | $ 326 | |||
Customer One, Filed For Court Protection [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Days covered of lost lease rental income | 180 days | ||||
Dry Containers [Member] | Customer One, Filed For Court Protection [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Net book value | 3,200 | $ 3,200 | |||
Insurance receivable | 1,400 | 1,400 | |||
Estimated proceeds | 1,200 | ||||
Recovery costs | 200 | ||||
Depreciation expense | 2,000 | 2,000 | |||
Bad debt expense | $ 2,500 | $ 2,500 |
Consolidation Of Variable Int37
Consolidation Of Variable Interest Entities As A Non-Controlling Interest (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($)item | Sep. 30, 2016USD ($)item | Sep. 30, 2015USD ($)item | Dec. 31, 2015USD ($) | |
Variable Interest Entity [Line Items] | |||||
Total net book value | $ 667,000 | $ 667,000 | $ 674,000 | ||
Net book value | 1,786,374,000 | 1,786,374,000 | 1,748,211,000 | ||
Proceeds from containers sold | 46,137,000 | $ 51,188,000 | |||
Collateralized Financing Obligations [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Long-term debt | 91,600,000 | 91,600,000 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Net book value | 63,939,000 | 63,939,000 | 85,101,000 | ||
Cash | 22,016,000 | 22,016,000 | $ 35,106,000 | ||
Variable Interest Entity, Primary Beneficiary [Member] | Loan [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Long-term debt | $ 5,800,000 | $ 5,800,000 | |||
Variable Interest Entity, Primary Beneficiary [Member] | Containers [Member] | |||||
Variable Interest Entity [Line Items] | |||||
Number of types of container fund arrangements | item | 2 | ||||
Number of container portfolios sold | item | 0 | 0 | 0 | 0 | |
Total net book value | $ 191,800,000 | $ 191,800,000 | |||
Net book value | 69,600,000 | 69,600,000 | |||
Gain (loss) recognized on initial consolidation of VIEs | 0 | ||||
Proceeds from containers sold | $ 9,200,000 | $ 6,800,000 | $ 26,100,000 | $ 21,600,000 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Business Acquisition [Line Items] | |
Reduction in contingent consideration | $ 1,000 |
Challenger And Hybrid [Member] | |
Business Acquisition [Line Items] | |
Acquisition purchase price | 22,807 |
Acquisition purchase price based on future performance | 6,000 |
Reduction in contingent consideration | 1,000 |
Challenger And Hybrid [Member] | Other Long-Term Liabilities [Member] | |
Business Acquisition [Line Items] | |
Acquisition purchase price based on future performance | 3,500 |
Challenger And Hybrid [Member] | Accrued Expenses And Other Current Liabilities [Member] | |
Business Acquisition [Line Items] | |
Acquisition purchase price based on future performance | $ 1,500 |
Acquisitions (Schedule Of Alloc
Acquisitions (Schedule Of Allocation Of Total Consideration Transferred) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 15,579 | $ 2,905 | $ 2,905 |
Challenger And Hybrid [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 1,186 | ||
Accounts receivable | 5,840 | ||
Property and equipment | 145 | ||
Goodwill | 12,674 | ||
Intangible assets | 9,912 | ||
Other assets | 276 | ||
Total assets | 30,033 | ||
Accounts payable | 4,437 | ||
Deferred tax liability | 2,184 | ||
Other liabilities | 605 | ||
Total liabilities | 7,226 | ||
Purchase price | $ 22,807 |
Acquisitions (Schedule Of Intan
Acquisitions (Schedule Of Intangible Assets Acquired) (Details) - Challenger And Hybrid [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 9,912 |
Tradenames [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 1,188 |
Estimated Life | 5 years |
Customer Relationships [Member] | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Amount | $ 8,724 |
Estimated Life | 8 years |
Rental Equipment (Details)
Rental Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | $ 2,192,455 | $ 2,098,021 |
Accumulated depreciation | (406,081) | (349,810) |
Rental equipment, net of accumulated depreciation | 1,786,374 | 1,748,211 |
Dry Containers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 1,348,207 | 1,392,825 |
Refrigerated Containers [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 327,116 | 308,374 |
Other Specialized Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 164,212 | 152,310 |
Railcars [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental equipment, gross | 352,920 | $ 244,512 |
Rental equipment, net of accumulated depreciation | $ 336,300 |
Net Investment In Direct Fina42
Net Investment In Direct Finance Leases (Components Of Net Investment In Direct Finance Leases) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Net Investment In Direct Finance Leases [Abstract] | |||
Gross finance lease receivables | [1] | $ 121,103 | $ 124,747 |
Unearned income | [2] | (20,269) | (21,379) |
Net investment in direct finance leases | 100,834 | 103,368 | |
Unguaranteed residual value | 0 | 0 | |
Executory costs | 0 | 0 | |
Unamortized initial direct costs | $ 0 | $ 0 | |
[1] | At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received. There was no unguaranteed residual value at September 30, 2016 and December 31, 2015 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of September 30, 2016 and December 31, 2015. | ||
[2] | The difference between the gross finance lease receivables and the cost of the equipment or carrying amount at the lease inception is recorded as unearned income. Unearned income, together with initial direct costs, are amortized to income over the lease term so as to produce a constant periodic rate of return. There were no unamortized initial direct costs as of September 30, 2016 and December 31, 2015. |
Net Investment In Direct Fina43
Net Investment In Direct Finance Leases (Gross Finance Lease Receivables By Customer Categories) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Gross finance lease receivables | [1] | $ 121,103 | $ 124,747 |
Tier 1 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross finance lease receivables | 76,535 | 86,981 | |
Tier 2 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross finance lease receivables | 44,568 | 37,766 | |
Tier 3 [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Gross finance lease receivables | |||
[1] | At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received. There was no unguaranteed residual value at September 30, 2016 and December 31, 2015 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of September 30, 2016 and December 31, 2015. |
Net Investment In Direct Fina44
Net Investment In Direct Finance Leases (Contractual Maturities Of Gross Finance Lease Receivables) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | |
Net Investment In Direct Finance Leases [Abstract] | |||
2,017 | $ 39,070 | ||
2,018 | 30,819 | ||
2,019 | 20,222 | ||
2,020 | 11,697 | ||
2,021 | 9,594 | ||
2022 and thereafter | 9,701 | ||
Gross finance lease receivables | [1] | $ 121,103 | $ 124,747 |
[1] | At the inception of the lease, the Company records the total minimum lease payments, executory costs, if any, and unguaranteed residual value as gross finance lease receivables. The gross finance lease receivables are reduced as customer payments are received. There was no unguaranteed residual value at September 30, 2016 and December 31, 2015 included in gross finance lease receivables. There were no executory costs included in gross finance lease receivables as of September 30, 2016 and December 31, 2015. |
Intangible Assets (Narrative) (
Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Intangible Assets [Abstract] | ||||
Amortization expense | $ 400 | $ 100 | $ 682 | $ 157 |
Intangible Assets (Schedule Of
Intangible Assets (Schedule Of Estimated Useful Lives) (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Trademarks And Tradenames [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year |
Trademarks And Tradenames [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 10 years |
Customer Relationships [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 8 years |
Intangible Assets (Schedule O47
Intangible Assets (Schedule Of Intangible Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 12,372 | $ 2,460 |
Accumulated Amortization | (1,919) | (1,237) |
Net Carrying Amount | 10,453 | 1,223 |
Trademarks And Tradenames [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,028 | 1,840 |
Accumulated Amortization | (1,470) | (1,218) |
Net Carrying Amount | 1,558 | 622 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 9,344 | 620 |
Accumulated Amortization | (449) | (19) |
Net Carrying Amount | $ 8,895 | $ 601 |
Intangible Assets (Schedule O48
Intangible Assets (Schedule Of Estimated Future Amortization Expenses) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Intangible Assets [Abstract] | ||
2,017 | $ 1,519 | |
2,018 | 1,519 | |
2,019 | 1,519 | |
2,020 | 1,517 | |
2,021 | 1,318 | |
2022 and thereafter | 3,061 | |
Net Carrying Amount | $ 10,453 | $ 1,223 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Oct. 01, 2014USD ($) | Mar. 28, 2013USD ($) | Sep. 30, 2016USD ($)itemloan | Dec. 31, 2015USD ($) | Oct. 22, 2015USD ($) | Jan. 30, 2015USD ($) | Mar. 27, 2013USD ($) | Sep. 13, 2012USD ($) |
Debt Instrument [Line Items] | ||||||||
Net book value | $ 1,786,374,000 | $ 1,748,211,000 | ||||||
Restricted cash | 6,447,000 | 7,212,000 | ||||||
Railcars [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net book value | 336,300,000 | |||||||
Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net book value | 63,939,000 | $ 85,101,000 | ||||||
Variable Interest Entity, Primary Beneficiary [Member] | Containers [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net book value | $ 69,600,000 | |||||||
Revolving Credit Facility [Member] | CAI Rail [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Oct. 22, 2020 | |||||||
Maximum credit commitment | $ 500,000,000 | $ 250,000,000 | ||||||
Maximum credit commitment increase amount | 700,000,000 | |||||||
Available borrowing capacity | 297,500,000 | |||||||
Available borrowing capacity based on borrowing base and collateral requirements | 2,000,000 | |||||||
Net book value | $ 254,500,000 | |||||||
Average interest rate | 2.00% | 1.90% | ||||||
Revolving Credit Facility [Member] | Consortium of Banks [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Mar. 15, 2020 | |||||||
Maximum credit commitment | $ 775,000,000 | $ 760,000,000 | ||||||
Maximum credit commitment increase amount | 960,000,000 | |||||||
Available borrowing capacity | 266,400,000 | |||||||
Available borrowing capacity based on borrowing base and collateral requirements | $ 74,900,000 | |||||||
Average interest rate | 2.30% | 1.80% | ||||||
Revolving Credit Facility [Member] | Consortium of Banks [Member] | Equipment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net book value | $ 704,900,000 | |||||||
Revolving Credit Facility [Member] | CAI International GmbH [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Sep. 1, 2020 | |||||||
Maximum credit commitment | $ 25,000,000 | |||||||
Loan [Member] | Consortium of Banks [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum credit commitment | $ 25,000,000 | |||||||
Maximum number of business days short term borrowings payable | 10 days | |||||||
Loan [Member] | Consortium Of Banks Note Dated August 30 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum credit commitment | $ 100,000,000 | |||||||
Term of loan | 5 years | |||||||
Standby Letters Of Credit [Member] | Consortium of Banks [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum credit commitment | $ 30,000,000 | |||||||
Letters of credit outstanding | $ 100,000 | |||||||
Series 2012-1 Asset-Backed Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Oct. 1, 2027 | |||||||
Principal amount of loan | $ 171,000,000 | |||||||
Long-term debt | $ 104,000,000 | |||||||
Fixed interest rate | 3.47% | |||||||
Series 2013-1 Asset-Backed Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Mar. 1, 2028 | |||||||
Principal amount of loan | $ 229,000,000 | |||||||
Long-term debt | $ 148,900,000 | |||||||
Fixed interest rate | 3.35% | |||||||
Loan [Member] | CAI Rail [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Dec. 22, 2020 | |||||||
Principal amount of loan | $ 20,000,000 | |||||||
Term of loan | 5 years | |||||||
Long-term debt | $ 19,200,000 | |||||||
Average interest rate | 3.40% | 3.40% | ||||||
Loan [Member] | Development Bank of Japan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Apr. 30, 2018 | |||||||
Principal amount of loan | $ 30,000,000 | |||||||
Term of loan | 5 years | |||||||
Number of quarterly installments | item | 19 | |||||||
Proceeds used to repay loan | $ 500,000 | |||||||
Debt instrument final payment | 21,500,000 | |||||||
Long-term debt | $ 24,200,000 | |||||||
Average interest rate | 2.60% | 2.30% | ||||||
Loan [Member] | Consortium of Banks [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Proceeds used to repay loan | $ 124,400,000 | |||||||
Long-term debt | 125,000,000 | $ 249,400,000 | ||||||
Loan [Member] | Consortium of Banks [Member] | Rental Equipment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net book value | $ 383,100,000 | |||||||
Loan [Member] | Consortium of Banks, Note Dated October 1, 2014 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Oct. 1, 2019 | |||||||
Maximum credit commitment | $ 115,000,000 | $ 150,000,000 | ||||||
Long-term debt | $ 132,000,000 | |||||||
Average interest rate | 2.20% | 2.20% | ||||||
Loan [Member] | Consortium of Banks, Note Dated April 11, 2012 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Jun. 30, 2021 | |||||||
Maximum credit commitment | $ 142,000,000 | |||||||
Maximum credit commitment increase amount | $ 100,000,000 | |||||||
Term of loan | 5 years | |||||||
Long-term debt | $ 98,300,000 | |||||||
Quarterly payments specified as percentage of drawn amount | 1.75% | |||||||
Average interest rate | 2.40% | 1.90% | ||||||
Loan [Member] | Consortium Of Banks Note Dated August 30 2016 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Aug. 1, 2021 | |||||||
Long-term debt balance | $ 49,700,000 | |||||||
Long-term debt | $ 50,000,000 | |||||||
Average interest rate | 3.60% | |||||||
Loan [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Jun. 1, 2019 | |||||||
Long-term debt | $ 5,800,000 | |||||||
Number of loans | loan | 2 | |||||||
Average interest rate | 2.70% | 2.60% | ||||||
Loan [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Rental Equipment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net book value | $ 13,900,000 | |||||||
Loan [Member] | LIBOR [Member] | Consortium of Banks, Note Dated October 1, 2014 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.25% | 1.60% | ||||||
Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Sep. 13, 2022 | |||||||
Long-term debt | $ 71,100,000 | $ 103,000,000 | ||||||
Average interest rate | 4.90% | 4.90% | ||||||
Senior Secured Notes [Member] | Rental Equipment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net book value | $ 95,800,000 | |||||||
Asset Backed Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Mar. 1, 2028 | |||||||
Proceeds used for working capital purposes | $ 229,000,000 | |||||||
Average interest rate | 3.40% | 3.40% | ||||||
Asset Backed Notes [Member] | Rental Equipment [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net book value | $ 333,700,000 | |||||||
Collateralized Financing Obligations [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity date | Jun. 1, 2019 | |||||||
Long-term debt | $ 91,600,000 | |||||||
Average interest rate | 1.00% | 0.70% | ||||||
Average fixed and floating interest rates | 1.00% | |||||||
Maturity date range start | Nov. 1, 2016 | |||||||
Maturity date range end | Sep. 1, 2019 | |||||||
Amortizing Term Loan [Member] | Consortium of Banks [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum credit commitment | $ 300,000,000 | |||||||
Term of loan | 6 years | |||||||
Amortizing Term Loan [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of loan | 5 years | |||||||
Long-term debt | $ 9,200,000 | |||||||
Fixed interest rate | 2.70% | |||||||
Non-Amortizing Term Loan [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Term of loan | 5 years | |||||||
Long-term debt | $ 1,600,000 | |||||||
Minimum [Member] | Senior Secured Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of aggregate principal to prepay | 10.00% |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 103,295 | $ 172,416 |
Gross Debt, Long-term Outstanding | 1,352,383 | 1,259,196 |
Debt issuance costs, Current Outstanding | (3,544) | (2,820) |
Debt issuance costs, Long-term Outstanding | (9,107) | (10,139) |
Total Debt, Current Outstanding | 99,751 | 169,596 |
Total Debt, Long-term Outstanding | 1,343,276 | 1,249,057 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt, Current Outstanding | 31,056 | 60,382 |
Total Debt, Long-term Outstanding | 66,347 | 59,445 |
Revolving Credit Facility [Member] | CAI Rail [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | 34,500 | |
Gross Debt, Long-term Outstanding | $ 202,500 | $ 126,000 |
Average Interest | 2.00% | 1.90% |
Maturity | Oct. 22, 2020 | |
Revolving Credit Facility [Member] | Consortium of Banks [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 4,500 | $ 8,500 |
Gross Debt, Long-term Outstanding | $ 504,000 | $ 488,000 |
Average Interest | 2.30% | 1.80% |
Maturity | Mar. 15, 2020 | |
Loan [Member] | CAI Rail [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 1,148 | $ 1,119 |
Gross Debt, Long-term Outstanding | $ 18,016 | $ 18,881 |
Average Interest | 3.40% | 3.40% |
Maturity | Dec. 22, 2020 | |
Loan [Member] | Development Bank of Japan [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 1,800 | $ 1,800 |
Gross Debt, Long-term Outstanding | $ 22,350 | $ 23,700 |
Average Interest | 2.60% | 2.30% |
Maturity | Apr. 30, 2018 | |
Loan [Member] | Consortium of Banks, Note Dated October 1, 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 9,000 | $ 9,000 |
Gross Debt, Long-term Outstanding | $ 123,000 | $ 129,750 |
Average Interest | 2.20% | 2.20% |
Maturity | Oct. 1, 2019 | |
Loan [Member] | Consortium of Banks, Note Dated April 11, 2012 [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 7,000 | $ 9,940 |
Gross Debt, Long-term Outstanding | $ 91,250 | $ 99,440 |
Average Interest | 2.40% | 1.90% |
Maturity | Jun. 30, 2021 | |
Loan [Member] | Consortium Of Banks Note Dated August 30 2016 [Member] | ||
Debt Instrument [Line Items] | ||
Total Debt, Current Outstanding | $ 2,681 | |
Total Debt, Long-term Outstanding | $ 47,050 | |
Average Interest | 3.60% | |
Maturity | Aug. 1, 2021 | |
Loan [Member] | Variable Interest Entity, Primary Beneficiary [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 1,829 | $ 1,829 |
Gross Debt, Long-term Outstanding | $ 3,998 | $ 5,748 |
Average Interest | 2.70% | 2.60% |
Maturity | Jun. 1, 2019 | |
Senior Secured Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 6,110 | $ 7,175 |
Gross Debt, Long-term Outstanding | $ 64,995 | $ 71,105 |
Average Interest | 4.90% | 4.90% |
Maturity | Sep. 13, 2022 | |
Asset Backed Notes [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 40,000 | $ 40,000 |
Gross Debt, Long-term Outstanding | $ 212,875 | $ 242,875 |
Average Interest | 3.40% | 3.40% |
Maturity | Mar. 1, 2028 | |
Collateralized Financing Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Gross Debt, Current Outstanding | $ 29,227 | $ 58,553 |
Gross Debt, Long-term Outstanding | $ 62,349 | $ 53,697 |
Average Interest | 1.00% | 0.70% |
Maturity | Jun. 1, 2019 |
Stock-Based Compensation Plan51
Stock-Based Compensation Plan (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options available for grant | 2,671,980 | 2,671,980 | ||
Vesting period of awards | 4 years | |||
Contractual term | 10 years | |||
Aggregate intrinsic value of options exercised | $ 4,900 | |||
Aggregate intrinsic value of options outstanding | $ 700 | $ 700 | ||
Closing price per share | $ 8.27 | $ 8.27 | ||
Stock-based compensation expense recorded | $ 300 | $ 400 | $ 1,000 | 1,200 |
Remaining unamortized stock-based compensation cost | 2,300 | $ 2,300 | ||
Stock-based compensation cost recognition period | 2 years 6 months | |||
Stock Options [Member] | Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 25.00% | |||
Stock Options [Member] | Tranche Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 2.083% | |||
Stock Options [Member] | Directors [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards | 1 year | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of awards | 4 years | |||
Stock-based compensation expense recorded | 100 | $ 100 | $ 300 | $ 300 |
Remaining unamortized stock-based compensation cost | $ 800 | $ 800 | ||
Stock-based compensation cost recognition period | 2 years 4 months 24 days |
Stock-Based Compensation Plan52
Stock-Based Compensation Plan (Summary Of Stock Option Activities) (Details) - Stock Options [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options outstanding at beginning of period, Number of Shares | 1,189,255 | 1,420,749 |
Options granted, Number of Shares | 245,000 | 183,000 |
Options exercised, Number of Shares | (414,494) | |
Options forfeited/cancelled, Number of Shares | (6,000) | |
Options outstanding at end of period, Number of Shares | 1,428,255 | 1,189,255 |
Options exercisable, Number of Shares | 1,033,518 | 884,817 |
Options outstanding at beginning of period, Weighted Average Exercise Price | $ 18.08 | $ 15.67 |
Options granted, Weighted Average Exercise Price | 7.87 | 21.72 |
Options exercised, Weighted Average Exercise Price | 11.45 | |
Options forfeited/cancelled, Weighted Average Exercise Price | 21.99 | |
Options outstanding at end of period, Weighted Average Exercise Price | 16.31 | 18.08 |
Options exercisable, Weighted Average Exercise Price | $ 17.47 | $ 16.76 |
Weighted average remaining term | 4 years 8 months 12 days | 5 years 1 month 6 days |
Stock-Based Compensation Plan53
Stock-Based Compensation Plan (Summary Of Fair Value Weighted Average Assumptions) (Details) - Stock Options [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price | $ 7.87 | $ 21.72 |
Exercise price | $ 7.87 | $ 21.72 |
Minimum expected volatility | 45.40% | 39.50% |
Maximum expected volatility | 46.70% | 41.80% |
Minimum risk-free interest rate | 1.30% | 1.85% |
Maximum risk-free interest rate | 1.40% | 2.00% |
Dividend yield | ||
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 5 years 6 months | 5 years 6 months |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected term (years) | 6 years 3 months | 6 years 3 months |
Stock-Based Compensation Plan54
Stock-Based Compensation Plan (Summary Of Restricted Stock Activity) (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Restricted stock outstanding, Beginning balance, Number of Shares of Restricted Stock | shares | 48,025 |
Restricted stock granted, Number of Shares of Restricted Stock | shares | 34,500 |
Restricted stock vested, Number of Shares of Restricted Stock | shares | (13,955) |
Restricted stock forfeited, Number of Shares of Restricted Stock | shares | (2,344) |
Restricted stock outstanding, Ending balance, Number of Shares of Restricted Stock | shares | 66,226 |
Restricted stock outstanding, Beginning balance, Weighted Average Grant Date Fair Value | $ / shares | $ 22.70 |
Restricted stock granted, Weighted Average Grant Date Fair Value | $ / shares | 7.87 |
Restricted stock vested, Weighted Average Grant Date Fair Value | $ / shares | 23.52 |
Restricted stock forfeited, Weighted Average Grant Date Fair Value | $ / shares | 21.96 |
Restricted stock outstanding, Ending balance, Weighted Average Grant Date Fair Value | $ / shares | $ 14.83 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Taxes [Abstract] | |||
Effective tax rate | 37.10% | 8.80% | |
Non-cash tax charge | $ 1.4 | ||
Minimum percentage realization for recognition of income tax position | 50.00% | ||
Unrecognized tax benefits | 0.2 | $ 0.2 | |
Total accrued interest relating to unrecognized tax benefits | $ 0.1 | $ 0.1 |
Fair Value Of Financial Instr56
Fair Value Of Financial Instruments (Details) $ in Millions | Sep. 30, 2016USD ($) |
Carrying Amount [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Net investment in direct finance leases | $ 100.8 |
Expected future payments for acquisition | 5 |
Carrying Amount [Member] | Collateralized Financing Obligations [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | 91.6 |
Carrying Amount [Member] | Revolving Credit Facility [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | 711 |
Carrying Amount [Member] | Loan [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | 323.3 |
Carrying Amount [Member] | Senior Secured Notes [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | 71.1 |
Carrying Amount [Member] | Asset Backed Notes [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | 252.9 |
Carrying Amount [Member] | Variable Interest Entity, Primary Beneficiary [Member] | Loan [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | 5.8 |
Fair Value [Member] | Collateralized Financing Obligations [Member] | Level 3 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | 90.5 |
Fair Value [Member] | Senior Secured Notes [Member] | Level 3 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | 72.3 |
Fair Value [Member] | Asset Backed Notes [Member] | Level 3 [Member] | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Long-term debt | $ 244.7 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | Oct. 21, 2016 | Sep. 30, 2016 |
Commitments to purchase rental equipment | $ 204.7 | |
Commitments to purchase rental equipment, year one | 159.2 | |
Commitments to purchase rental equipment, year two | 32.1 | |
Commitments to purchase rental equipment, year three | 13.4 | |
Future minimum lease payments under operating lease agreements | $ 2.3 | |
Subsequent Event [Member] | ||
Reduction of commitment to purchase | $ 10 |
Related Party Transactions (Det
Related Party Transactions (Details) - CAIJ [Member] | Mar. 31, 2016 |
Related Party Transaction [Line Items] | |
Ownership percentage by parent | 80.00% |
Ownership percentage by noncontrolling interest | 20.00% |
Segment And Geographic Inform59
Segment And Geographic Information (Schedule Of Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |||||
Segment Reporting Information [Line Items] | |||||||||
Total revenue | $ 78,472 | $ 66,117 | $ 217,080 | $ 183,975 | |||||
Total operating expenses | 71,110 | 42,861 | 176,404 | 113,935 | |||||
Operating income | 7,362 | 23,256 | 40,676 | 70,040 | |||||
Total other expenses | 10,951 | 8,969 | 31,811 | 26,853 | |||||
Net (loss) income before income taxes and non-controlling interest | (3,589) | 14,287 | 8,865 | 43,187 | |||||
Goodwill | 15,579 | 2,905 | 15,579 | 2,905 | $ 2,905 | ||||
Total assets | 2,027,202 | [1] | 1,976,592 | 2,027,202 | [1] | 1,976,592 | 1,973,585 | [1] | |
Purchase of rental equipment | [2] | 40,343 | 67,710 | 170,582 | 304,588 | ||||
Net book value | 1,786,374 | 1,786,374 | $ 1,748,211 | ||||||
Inter-Segment [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenue | 0 | ||||||||
Operating Segments [Member] | Container Leasing [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenue | 49,661 | 55,609 | 152,875 | 166,731 | |||||
Total operating expenses | 45,184 | 35,554 | 121,519 | 101,556 | |||||
Operating income | 4,477 | 20,055 | 31,356 | 65,175 | |||||
Total other expenses | 9,123 | 8,114 | 27,072 | 24,817 | |||||
Net (loss) income before income taxes and non-controlling interest | (4,646) | 11,941 | 4,284 | 40,358 | |||||
Total assets | 1,643,929 | 1,788,760 | 1,643,929 | 1,788,760 | |||||
Purchase of rental equipment | [2] | 19,730 | 48,575 | 68,183 | 203,378 | ||||
Operating Segments [Member] | Rail Leasing [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenue | 7,614 | 5,102 | 22,462 | 11,770 | |||||
Total operating expenses | 4,367 | 1,589 | 12,363 | 6,040 | |||||
Operating income | 3,247 | 3,513 | 10,099 | 5,730 | |||||
Total other expenses | 1,827 | 855 | 4,738 | 2,030 | |||||
Net (loss) income before income taxes and non-controlling interest | 1,420 | 2,658 | 5,361 | 3,700 | |||||
Total assets | 343,214 | 180,322 | 343,214 | 180,322 | |||||
Purchase of rental equipment | [2] | 20,613 | 19,135 | 102,399 | 101,210 | ||||
Operating Segments [Member] | Logistics [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Total revenue | 21,197 | 5,406 | 41,743 | 5,474 | |||||
Total operating expenses | 21,559 | 5,718 | 42,522 | 6,339 | |||||
Operating income | (362) | (312) | (779) | (865) | |||||
Total other expenses | 1 | 1 | 6 | ||||||
Net (loss) income before income taxes and non-controlling interest | (363) | (312) | (780) | (871) | |||||
Goodwill | 15,579 | 2,905 | 15,579 | 2,905 | |||||
Total assets | 40,059 | 7,510 | 40,059 | 7,510 | |||||
Purchase of rental equipment | [2] | ||||||||
Railcars [Member] | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Net book value | $ 336,300 | $ 336,300 | |||||||
[1] | Total assets at September 30, 2016 and December 31, 2015 include the following assets of certain variable interest entities (VIEs) that can only be used to settle the liabilities of those VIEs: Cash, $22,016 and $35,106; Net investment in direct finance leases, $5,705 and $1,915; and Rental equipment, net of accumulated depreciation, $63,939 and $85,101, respectively. | ||||||||
[2] | Represents cash disbursements for purchasing of rental equipment as reflected in the consolidated statements of cash flows for the periods indicated. |
Segment And Geographic Inform60
Segment And Geographic Information (Schedule Of Geographic Allocation Of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Total revenue | $ 78,472 | $ 66,117 | $ 217,080 | $ 183,975 |
United States [Member] | ||||
Total revenue | 35,290 | 15,726 | 82,444 | 27,184 |
France [Member] | ||||
Total revenue | 6,389 | 6,436 | 19,417 | 19,430 |
Japan [Member] | ||||
Total revenue | 4,809 | 6,119 | 15,250 | 19,079 |
Switzerland [Member] | ||||
Total revenue | 4,382 | 4,887 | 13,536 | 14,100 |
Korea [Member] | ||||
Total revenue | 3,235 | 4,449 | 10,102 | 13,886 |
Other Asia [Member] | ||||
Total revenue | 12,663 | 15,665 | 40,225 | 51,714 |
Other Europe [Member] | ||||
Total revenue | 8,812 | 9,447 | 26,915 | 27,527 |
Other International [Member] | ||||
Total revenue | $ 2,892 | $ 3,388 | $ 9,191 | $ 11,055 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities having antidilutive effect | 1,231,455 | 972,992 | 1,103,495 | 670,850 |
Earnings Per Share (Reconciliat
Earnings Per Share (Reconciliation Of Basic And Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to CAI common stockholders used in the calculation of basic and diluted (loss) earnings per share | $ (5,415) | $ 12,989 | $ 5,508 | $ 39,420 |
Weighted-average shares used in the calculation of basic (loss) earnings per share | 19,130 | 20,920 | 19,427 | 20,973 |
Effect of dilutive securities: Stock options and restricted stock | 139 | 71 | 263 | |
Weighted-average shares used in the calculation of diluted (loss) earnings per share | 19,130 | 21,059 | 19,498 | 21,236 |
Basic | $ (0.28) | $ 0.62 | $ 0.28 | $ 1.88 |
Diluted | $ (0.28) | $ 0.62 | $ 0.28 | $ 1.86 |